MCPHERSONS (ASX MCP) Presented by Laurence McAllister (CEO) A Ba la - - PowerPoint PPT Presentation

MCPHERSON’S (ASX MCP)

Presented by Laurence McAllister (CEO)

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

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Ma r 2016 HOUSE WARE S Division re ma ining 49% dive ste d Ma y 2017 Ne w Ag e nc y

Dive r sific atio n ac hie ve d thr

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

Ne e d for building g r e a te r r ig our & c a pa bility in Ne w Busine ss, R &D & F ie ld E xe c . with c le a r pr ior itise d c hoic e s Confide nc e in c ompe lling & inte g r a te d Br a nd & Ke y Ac c ount Custome r Joint Busine ss Pla ns Unde r sta nding our br a nds r e la tive to the c a te g or ie s, se g me nts & c ompe titor s we pa r tic ipa te with toda y Pa ssiona te to de ve lop our c ompr e he nsion of the ma c r

• pla ying fie ld - T
• da y & tomor

r

• ws la ndsc a pe &

dr ive r s by c a te g or y & se g me nt, tha t he lp de fine r ic h te r r itor ie s to e xplor e a nd pa r tic ipa te within A ba la nc e d vie w of Cor e BIG 6 br a nds & optimising our r e sour c e s & inve stme nts in He a lth, We llne ss & Be a uty 2018 fisc a l sha pe c onside r a tions, the a bility to a c hie ve & ma na g e , the ke y dr ive r s a nd the R isk’s & Oppor tunitie s of the pla n A pr

• fe ssiona l c lose for

F Y 2017 6

Build Ne w Capabilitie s F

• r

Busine ss Pulse Manage me nt, for Cour se Cor r e c tion, Inv. & Gr

• wth

De fine the R&D Mo d e l a nd rig o ro usly ma na g e ke y pro je c ts De sig n a la nd sc a pe mo d e l to c o mpre he nd ne w & future te rrito rie s – Inno va te & Ac q uire Build Ma na g e me nt Sc o re c a rd , Busine ss Inte ll. (BI) a nd Co nsume r Insig ht (CI) Ca pa b ility

Dr ive Winning plans for Br and, Custome r & Sale s E xe c ution E xc e lle nc e

Ac c e le ra te Big 6 Co re b ra nd pe rfo rma nc e Re d e sig n T

• p 6 Custo me r T

ra d ing T e rms (T T ’ s) via jo int c usto me r b usine ss pla ns (JBP’ s) Imple me nt “PL E E ”: Pric e L ine E xe c . E xc e lle nc e , suppo rte d b y HR & F ie ld Sa le s g a p a na lysis E ng a g e & live the virtuo us c yc le princ iple s o f the E XPORT & Inte rna tio na l b usine ss mo d e l

Addr e ss & De live r the “Make Plan Impe r ative s”

L a nd He a lth, We llne ss a nd Be a uty Bra nd a s

• ur # 1 PRIORI

T Y & De live r the Busine ss Pla n E xe c ute the Supply c ha in / K ing sg ro ve E BIT

• ptimisa tio n to re -inve st in Big 6 Co re b ra nd s

Re a lise HAPL Co mme rc ia l BU upsid e Re turn NZ to E BIT g ro wth

Build T

• mor

r

• w’s Busine sse s T
• day & r

e alise the size

• f the pr

ize !

Re se t o ur a ppro a c h to Ne w Busine ss & Bus. Mo d e ls - Ho ne y JV e tc Se le c tive ly Gro w o ur Ag e nc y Po rtfo lio to re - inve st in the Big 6 Co re b ra nd s Ste p-c ha ng e o ur Susta ina b ility Ag e nd a

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• 1. Business Management

 Management Scorecard, BI & Consumer Insights  Top Project Management Dashboard  Big 6 Core Brand Performance  Risk Mgt– RR, supplier constraints, currency, commodity price increases  Introduce a sustainability agenda, that is real!

2017

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

 Multix Greener Program  Dr LeWinn’s & A’kin Winning Plans  Restaging: Manicare, Swisspers & Lady Jane

• 3. Selectively Grow Our Agency Profile in H, W & B Profile

 Honey JV  Landscape Model for New & Future Territories – Innovate & Acquire

• 4. Capabilities Enhancement

 R & D Model / Roadmap + Management of Key Projects  Sales / KAM Capability Gap Analysis  IT Step Change Plans

• 5. Execute Export Model

 Deliver the EXPORT & International Business Model

• 6. Geographic Step Change plan

 Return NZ to EBIT growth  SG

• 7. Investment Profiles / ROI’s

 PLEE: PriceLine Execution Excellence  BIG 6 Customer JDP’s / Trading Terms

• 8. Kingsgrove Optimisation Plan

 Supply Chain EBIT Opportunity

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

Sc o re c a rd

Da shb o a rd

Pro je c t Ope ra tio na l Big 6 Risk Ma na g e me nt

Susta ina b ility Winning Plans

Multix DL W & A’ kin Re sta g ing Bra nds

L andsc ape Age nc y Pr

• file

Ga the r By JV Inno va te & Ac q uire

Capability E nhanc e me nts

R & D Sa le s / KAM

E xpor t

E xpo rt / Inte rna tio na l PL E E IT Ste p Cha ng e

Ge ogr aphic Ste p Change Plans

NZ SG

Inve stme nt Pr

• file s

JBP’ s / T T SC

KG Plan’s Pr

• gr

am

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

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

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$4.6 Bill, +15% CAGR $4.0 Bill, +3% CAGR

So urc e : Industry Re ve nue Co mplime nta ry Me dic ine s Austra lia 2015 (2017 E st), Co sme tic s/ T

• ile try re ta iling IBI

SWo rld 2017 E st

HE AL T H WE L L NE SS BE AUT Y

12

• 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
• 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 & Pr e stigious Pac kaging Ste p- c hange

INTRO D UC ING

ETERNA L YO UTH

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

14

15

• One Glo b a l A'kin Ha irc a re & 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 >105k 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 - hig h g ro wth se g s.

• 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, o 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

Ne w Ic onic Br and Pac kaging Ide ntity

22

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

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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 L a nde d Ja nua ry 2017 Austra lia Re ne we d 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 L a nde d 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

24

25

18% o f re ve nue fro m a g e nc ie s

26

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

Karen Murrell Natural Lipsticks

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

> 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 .

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