A Ba la nc e d & F o c usse d Gro wth Jo urne y! Ne t De bt r - - PowerPoint PPT Presentation

A Ba la nc e d & F

• c usse d Gro wth Jo urne y!

Ne t De bt r e duc e d fr

• m $92m at 31 De c e mbe r

2015 to $41m at 31 De c e mbe r 2016. Nor malise d le ve r age r atio r e duc e d fr

• m 3.1 time s to

1.5 time s. Cor por ate Bonds r e duc e d fr

• m $60m to $25m.

Buybac ks to c ontinue . F inanc ial position has absor be d and adjuste d to AUD/ USD de pr e c iation fr

• m $US1.10 to $US0.75.

Nov 2014 HOUSE WARE S Division 51% dive ste d (Joint Ve nture e sta blishe d) Ma r 2014 Dive stme nt Ac quisition Ma r 2013 Ac quisition Ac quisition Aug 2012 Ne w Ag e nc y (F ine F ra g ra nc e s) Aug 2014 Ac quisition Jul 2014 Ac quisition Apr 2014 Ne w Ag e nc y Jun 2014 Mc Phe rson’s Printing De me rg e r F e b 2012 Ac quisition Ac quisition Ac quisition Oc t 2013 Jul 2013

4

Dive r sific atio n ac hie ve d thr

• ugh ac quisitio ns, dive stme nts and ne w age nc ie s

Ma r 2016 HOUSE WARE S Division re ma ining 49% dive ste d

5

He alth We llne ss Be auty

HAPL 22% Ag e nc y 17% H,W& B 61%

• Hig h Gro wth
• Hig h De ma nd
• Hig h Ma rg ins

Ne t Sale s Contr ibution

• Our foc us is c rysta l c le ar

= T

he He alth, We llne ss & Be auty Br

ande d stable is the #1 PRIORIT Y!

• Re va mpe d te a m with a Ne w Pulse Manage me nt Sc or

e c ar d & Busine ss Inte llige nc e (BI

) c apability

• De live r balanc e d vo l. & va l. shar

e gr

• wth ac r
• ss o ur MCP He alth, We llne ss & Be auty busine ss b y r

e - launc hing our top 5 MCP T r ade mar ks

• Inc r

e ase & inve st in o ur c omme r c ial & e xe c ution fo c us via aligne d joint c ustome r busine ss plans (JBP’s) with o ur top 6 Custome r s & e nhanc e MCP ROI by 3 points

• Cour

se c or r e c t HAPL , >De bt Mgt & r e - se t foc us to initiative s tha t fit & bolste r

• ur re vise d MCP pr
• file
• I

mple me nt the E

XPORT & Inte r national busine ss mode l – suppo rting China , UK

, E U & USA fo r A’ kin,

• Dr. L

e Winn’ s a nd po te ntia lly “Ga the r By” Ho ne y

• Re a lise the Supply c hain / K

ing sg ro ve E

BIT

• ppo rtunity (+$10m) & r

e - inve st in o ur 5 x MCP Br ands

• Re tain & se le c tive ly g ro w o ur Age nc y & r

e - inve st in o ur 5 x MCP Br ands

• F

ix the NZ & Sing a po re busine ss mo de l a nd re turn to E

BI T g ro wth via sc a le

• De live r a b a la nc e d 2018 Busine ss Pla n – so lid GROWT

H assumptions ve rsus 2017L

E :

+ Ne t Sa le s, + Gro ss Co ntrib utio n, + A&P a nd + E

BI T

• 1. Business Management
• Scorecard – The environment, volume + value share , availability, pricing

comprehension, category segments, competition  Key customers & consumer engagement  Top Project Management Dashboard

• Business Intelligence Model launch

 Risk management – range reviews, supplier constraints, currency, commodity price increases

2017

• 2. Winning plans for A'kin, Dr LeWinn’s & Multix

 Big Bet, brand priorities integrated across KAMS / Channels, Joint Business Plan calendars  Restaging: Manicare, Swisspers & Lady Jane

• 3. Course Correct HAPL + H,W & B targets

 Complete Honey JV Business Case

• 4. Capabilities Enhancement

 Innovation Model / R & D Roadmap  Sales Gap Analysis  HR Step Change Plan  IT + Data upgrade supporting the BI model & Scorecard

• 5. Execute Export Model
• 6. Geographic Step Change plan

 NZ  SG

• 7. Investment Profiles / ROI’s

 A+P to 5 MCP Trade Marks  KAM Trading Terms for top 6 customer

• 8. Kingsgrove Optimisation Plan

2018 J J A S O N D J F M A M J J A S O N D

Busine ss Manage me nt Winning Plans HAPL H, W & B T ar ge ts

Ho ne y JV

Capability E nhanc e me nts

Sa le s HR IT R & D Bra nd Re sta g ing Sc o re c a rd E ng a g e me nt Pro je c t BI Mo de l Risk

E xpor t Mode l Ge ogr aphic Plans Inve stme nt

T ra de Ma rks Custo me rs

KG Plan

L aur e nc e Mc Alliste r

Ma na g ing Dire c to r

Paul Withe r idge

CF O

David Smith

Busine ss De ve lo pme nt Dire c to r

Br e tt Owe r s

Ne w Bus. Co mme rc ia l F ina nc e Dire c to r

Sar ah T ully

HR Dire c to r

L

• r

i Pir

• zzi

Na tio na l Ac c o unts & E xpo rt Dire c to r

Byr

• n

Stone

F ie ld Sa le s Dire c to r

Donna Chan

Ma rke ting Dire c to r

Mar y Pe ar c e

R& D Dire c to r

Mar k Br ady

Supply Cha in Dire c to r

Sammy Chan

MD MCP Ho ng Ko ng

John Ce r e sa

GM HAPL

Re be c c a Wake fie ld

E xe c utive Assista nt

32% o f re ve nue

10

He alth We llne ss Be auty

HAPL 22% Ag e nc y 17% H,W& B 61%

• Hig h Gro wth
• Hig h De ma nd
• Hig h Ma rg ins

Ne t Sale s Contr ibution

11

• T

he # 1 Co sme c utic a l b ra nd

• E

xpe rts in Anti-Ag e ing

• Curre ntly la unc hing ne w pre stig e pa c ka g ing
• We a re pa ssio na te a b o ut a ddre ssing skin c o nc e rns

fo r wo me n o f a ll a g e s

• I

nc re a se d R&D inve stme nt a llo ws us to

−

Wo rk with o ur g lo b a l supplie rs o n c o ntinue d le a ding e dg e inno va tio n tha t de live rs re a l re sults

• Our Dr. L

e Winn’ s 'Ma ste rb ra nd' c a mpa ig n fe a turing Anna Ba mfo rd is a iming a t

−

ta rg e ting the yo ung e r c o nsume r 25+; a nd

−

a ttra c ting ne w use rs to Dr. L e Winn's b ra nd

• Our ne w Dr. L

e Winn’ s we b site de live rs inc re a se c o nsume r e ng a g e me nt.

Mode r n and Pr e stigious

INTRO D UC ING

ETERNA L YO UTH

FO UR N EW PRO DUC TS LA UN C HIN G M A Y 2 0 1 7

13

14

• One Glo b a l A'kin Ha irc a re a nd Skinc a re

Bra nd

• Ne w hig hly a ppe a ling na tura l, c o nte mpo ra ry

pa c ka g ing

• I

nno va to r in Na tura l with pure , a uthe ntic , e ffic a c io us pro duc ts suc h a s

– Co c o nut Wa te r & Gre e n T

e a Hydra tio n Ra ng e

– Ro se hip + Vita min C – Na tura l Dry Sha mpo o (Ba mb o o )

• T

ra nsfo rm A’ kin with a ne w po sitio ning & purpo se

• Ne w b ra nd c a mpa ig n a nd me rc ha ndising
• Ne w we b site e ng a g ing o ur c o nsume rs

Re launc h

NPD, Visua l I de ntity a nd Cre a tive

16

• Distrib utio n e xpa nsio n in supe rma rke ts
• Ma inta in lo ya lists whilst a ttra c ting

yo ung e r c o nsume rs via Gla m inno va tio n & e ng a g e me nt

• Gla m g ro wing a t +23%* with 98k

F a c e b o o k fa ns

• Ava ila b le to purc ha se o n-line
• E

xc iting inno va tio ns in hig h g ro wth se g me nts

• Ca twa lk tre nds, Ce le b rity e ndo rse me nt,

F a shio n c o lla b o ra tio ns

• Co lla b o ra tio n with L

iz K e lsh inc lude s

• nline tuto ria ls using the Ma nic a re b rush

ra ng e

17

18

• Co nve rt hig h b ra nd a wa re ne ss

into stro ng g ro wth thro ug h:

– Distrib utio n e xpa nsio n in

supe rma rke ts a nd e c o mme rc e

• Co nte mpo rise L

a dy Ja yne b ra nd thro ug h pa c ka g ing re la unc h a nd diffe re ntia te d inno va tio n

19

WI P

L ADY JAYNE RE INVE NT ION

CURRE NT PACKAGING NE W L OOK (E SSE NT IAL S RANGE ) NE W L OOK PRO RANGE

L ADY JAYNE NE W E SSE NT IAL S BRUSH PACKAGING- IMPROVE D AISL E NAVIGAT ION INT E GRAT ING SHOPPE R NE E DS

Brush Ro ta tio n Bristle a nd Be ne fit F

• c us

Be ne fit Drive n d e sc ripto r (Pro b le m/ So lutio n)

Ne w Ic onic Br and Pac kaging Ide ntity

23

24

• K

e y initia tive s b e ing :

–

Co ntinue d fo c us o n c o st e ffic ie nc ie s a nd sha re d syne rg ie s with the Austra lia n b usine ss.

–

Se c uring a g e nc y b usine ss with ta rg e t re ve nue o f $1m o r g re a te r i.e . E vo lu

–

Driving o ur c o re b usine ss thro ug h c o lla b o ra tio n with o ur ke y c usto me rs i.e . Gre e n Cro ss He a lth Jo int Busine ss Pla nning

–

Ha ving a hig h pe rfo rming a nd e ng a g e d te a m e mpo we re d to ma ke q uic k de c isio ns

King sg r

• ve Wa r

e house - T

• ta l c a pa c ity 12,500 pa lle t spa c e s

Ja n 2015 - 200 spa c e s a va ila b le 99% full – 1% spa c e a va ila b le ($43mil Sto c k ho lding s) Ja n 2017 - 6000 spa c e s a va ila b le – 48% c a pa c ity o ppo rtunity ($28mil Sto c k ho lding )

35% r e duc tion in wor king c apital ove r 2 ye ar s by Impr

• ving inve ntor

y e ffic ie nc y & Supply Chain manage me nt

Hit r ate s Jan 2015 - Ave hits pe r o pe ra to r pe r d a y – 1000 hits Jan 2017 - Ave hits pe r o pe ra to r pe r d a y – 1200 hits

20% inc r e ase in pic k e ffic ie nc y ove r 2 ye ar s by impr

• ving pic k line manage me nt

SKU Rationalisation Jan 2015 - Numb e r o f a c tive SK

Us - 1600 SK Us

Jan 2017 - Numb e r o f a c tive SK

Us - 1100 SK Us

32% r e duc tion in ac tive SKUs – e liminating the tail, e liminating non valuable wor k

25

Co untr y Par tne r T ar ge t / Sign Date

Austra lia Re ne we d De c e mb e r 2016 Sing a po re WIP Qtr 2 2017 Ne w Ze a la nd Ja nua ry 2017 Austra lia Re ne we d F e b 17 to April 18 Sing a po re T e rmina te d c urre nt distrib uto r a nd will tra nsfe r distrib utio n to MCP Ja nua ry 17 Austra lia E xpa nding ra ng ing with Austra lia ; a nd inc re a sing te rrito rie s to Sing a po re a nd Ne w Ze a la nd WIP Qtr 2 2017 Austra lia / NZ Re ne we d Qtr 1, 2017

26

27

18% o f re ve nue

28

Global Performance

1 Karen Murrell lipstick sold every 9.6 seconds 9000 lipsticks sold every day

$44M in annual RSV

Current Global Distribution Majority of Karen Murrell Lipsticks are sold through the China market

Recent Mintel research shows that lip colour remains the fastest growing colour cosmetics subcategory in China, with 3 in 4 women saying they use lip colour as part of their everyday makeup routine. 1

1. http:/ / b lo g .c hina b e a utye xpo .c o m/

3 unit Gift Se t Sta rte r Po ut Pa c k - 6 units

Gifting

K e yc ha in Gift Se t Co sme tic Ba g Gift Se t

Alpe c in is ra ng e d in Woolworths (1 Sku), Che mist Wa re house & Pric e line 3 sku’s, Inde pe nde nt Pha rma c y (ma inly via Symbion) Mc Phe rson’s ta ke ove r Groc e ry distribution from Ma y a nd Pha rma c y Cha nne l distribution from July. Ke y ta rg e ts now : pre se nta tion to Me tc a sh a nd Cole s, Ra ng e e xte nsion in Woolworths. Ke y T a rg e ts July: roll out distribution to inde pe nde nt Pha rma c ie s, e xpa nd CWH & Pric e line ra ng ing by la unc hing T uning Sha mpoo

> 3 Mill AUD

Of total media value Focus on Sport and News programs

CHANNELS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Business/Sports Male 25-54 yr old

NRL (Rugby) SUPER RUGBY (Rugby) V8 SUPER CARS (Motor Sport) BIG BASH & V8 ( Cricket & Motor Sport) FORMULA 1 RACING (Motor Sport) ONLINE (Facebook & Youtube Paid Ads) AFL (Football)

INT RODUCING Se pte mbe r 2017 L aunc h

• Wo rking to g e the r to d rive A’ kin in the

UK a nd E U

• A’ kin ha s b e e n po sitio ne d a s a

stra ig htfo rwa rd a nd simple c ho ic e to a c o nfuse d c usto me r.

• Distrib ute d thro ug h Ho lla nd & Ba rre tt,

Who le fo o d s ma rke t, Na turismo , Wa itro se , Ae r L ing us, T ho ma s Co o k.

• T

a rg e te d purc ha se s o f $1m in Ye a r 1

• Spe c ia lise in na tura l, g o o d va lue – mid tie r

skinc a re a nd he a lth b ra nds

• 5 sta r T

ma ll T P sto re o pe ra to r

• Se c ure d the o pe ning o f Akin’ s Offic ia l T

ma ll sto re .

• T

a rg e te d purc ha se s o f $1m in Ye a r 1

• Spe c ia lise in Pre mium skinc a re b ra nds
• F
• c us will b e o n L

SC a nd E Y

• E

xc lusive re pa c ka g e d ra ng e (b a se d o n K

• re a n de sig n) o f L

SC fo r China o nly.

• F
• re c a sting purc ha se s o f $2.0m in Ye a r 1
• UCO to ma rke ting a nd b uild the b ra nd in

China fro m virtua lly ze ro pre se nc e .

37

• De live r

the F

Y 2017 E BI T & ke y me tric s pe rfo rma nc e

• Build BI & Sc or

e c a r d c a pa b ilitie s to run & b uild c o urse c o rre c tio n pla ns

• L
• c k & lo a d the HR pla n – Pe rfo rma nc e Re v’ s, Suc c e ssio n pla nning & E

ng a g e me nt Surve y

• Co mple te the SL

T ne w sha pe a c r

• ss Ne w Bus / Ma r

ke ting & E xpor t / Int.

• E

xc e e d the A’kin & Dr .L e Winn’s a c q uistio ns / va lua tio n pla n

• Co urse c o rre c t HAPL

& be poise d for g r e a te r He a lth, We llne ss & Be a uty

• E

xe c ute the King sg r

• ve Pha se 1. c a pa c ity pla n . Oc t 2017.
• F

ix the NZ & Sing a po re b usine ss mo d e l a nd re turn to E

BIT g ro wth via sc a le

• Co mple te / pr

e se nt to Boa r d the ne w Hone y JV busine ss c a se .

• Alig n the 2018 Gr
• wth Busine ss Pla n – so lid a ssumptio ns ve rsus 2017L

E :

+ % Ne t Sa le s, + % Gro ss Co ntrib utio n, + % A&P a nd + % E

BIT