Welcome to the RB AGM. 5th May 2016

Transcription

1 Welcome to the RB AGM 5th May 2016

2 RB presentation to Shareholders 2016 AGM 5th May 2016

3 Disclaimer Cautionary note concerning forward-looking statements This presentation contains statements with respect to the financial condition, results of operations and business of RB (the Group ) and certain of the plans and objectives of the Group that are forward-looking statements. Words such as intends, targets, or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-looking statements. In particular, all statements that express forecasts, expectations and projections with respect to future matters, including targets for net revenue, operating margin and cost efficiency, are forward-looking statements. Such statements are not historical facts, nor are they guarantees of future performance. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including many factors outside the Group s control. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: the general economic, business, political and social conditions in the key markets in which the Group operates; the ability of the Group to manage regulatory, tax and legal matters, including changes thereto; the reliability of the Group s technological infrastructure or that of third parties on which the Group relies; interruptions in the Group s supply chain and disruptions to its production facilities; the reputation of the Group s global brands; and the recruitment and retention of key management. These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forwardlooking statements contained herein to reflect any change in the Group s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. 3

4 Rakesh Kapoor Chief executive officer 4

5 Our vision is a world where people are healthier and live better Our purpose is to make a difference by giving people innovative solutions for healthier lives and happier homes 5

6 Delivering value to all stakeholders bettersociety How we support our communities and develop our people betterenvironment How we reduce our environmental impact betterfinancials How we drive growth and outperformance 6

7 Better Society 7

8 Better Environment Zero hazardous & non hazardous waste to landfill by 2016 Target: > 500m NR more sustainable innovations 8

9 Better Financials Net Revenue growth +6%* Outstanding Net income growth +15%** Strong cash conversion c.100% Final dividend 88.7p * LFL growth **adjusted to exclude exceptional items at constant exchange rate 9

10 Virtuous earnings model delivers Gross margin +140bps (Mix / Project Fuel / pricing) 200bps outperformance Net Revenue growth Fixed cost -50bps (Efficiency programmes) *at constant exchange rate + 48m* (-20bps) (synergies reinvested) Reinvest drive Operating margin +210bps 10

11 Growth by Area Net revenue trend, (in m & 2015 LFL growth %) Total LFL +6% Total actual ENA DvM Food +5% +9% +4% Broad based growth significant negative fx 0% 11

12 Health & Hygiene led growth Net revenue trend, (in m & 2015 LFL growth %) Health Hygiene Home Portfolio +14% +3% +2% +1% 12

13 Project Supercharge 13

14 Project supercharge ORG / CULTURE / TALENT VIRTUOUS EARNINGS MODEL Simpler & more agile organisation 14

15 Consumer and Store at the centre of what we do Consumer Customer 15

16 Size of innovations used to decrease from conception to launch Size of Innovation Create Activate 16

17 A simpler, more agile organization connected by a common purpose CREATE SCALE ACTIVATE 17

18 CREATE: Bigger innovations Average Size of top projects* CREATE 27% increase *average size of top 10 projects

19 SCALE: As global as possible CREATE SCALE Innovations launching in more markets 18% increase *average number of countries launched per innovation

20 Size of innovations to increase from conception to launch the Power of 1! Size of Innovation Create Scale Activate 20

21 Project supercharge ORG / CULTURE / TALENT VIRTUOUS EARNINGS MODEL Simpler & more agile organisation Super efficient & cost conscious 21

22 Significant savings potential CATEGORY BENCHMARKS 15 cost categories 100M - 150m Sample is 25 companies all fmcg / hc) 22

23 Cost efficiency programme 3 Year Target ( ) 2015 Progress 150m 100m 23

24 Project Supercharge ORG / CULTURE / TALENT VIRTUOUS EARNINGS MODEL Simpler & more agile organisation Super efficient Growth & & cost conscious Outperformance 24

25 2015: Continued progress Health / Hygiene led growth Growth in both Developed and Emerging markets More connected company Supercharged operating model Supercharged earnings model Strategic progress Operational progress 25

26 Over 25bn shareholder value created since Jan Invested in RB on 1 January 2012 was worth 226 on 31 December RB TSR FTSE 100 TSR Significant outperformance of the FTSE 100 which returned 30% over the same period /12/ /06/ /12/ /06/ /12/ /06/ /12/ /06/ /12/

27 H1 innovations more detail on a selection. 27

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29 Nurofen Soft Chews for Children Nurofen Soft Chews for Children Effective relief with just the right strength medicine for kids In an innovative gummy format; they re easy to chew and no need for water. 29

30 Scholl Velvet Smooth Wet & Dry Rechargeable Foot File Scholl Velvet Smooth Wet & Dry Soft beautiful feet effortlessly on wet and dry skin 30

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32 Dettol Gold Dettol Gold Delivers 100% superior germ kill vs. other anti-bacterial soaps in the market 32

33 Finish Supercharged Powerball Finish Supercharged Powerball One supercharged solution for all your dishwashing needs 33

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35 Air Wick Pure Air Wick Pure Just fragrance, no wet spray. A water-free aerosol providing the pleasure of Pure fragrance 35

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37 2016: Targets Net revenue* +4-5% Operating margin** Moderate expansion + Supercharge * LFL at constant rates ** Adjusted to exclude the impact of exceptional items. Moderate margin expansion to be supplemented in 2016 by year 2 Project Supercharge efficiencies. 37

38 Q1 Results

39 Q1 Financials: Summary Strong start to the year: Health & Hygiene led growth: Broad based geographic growth: Like-for-like net revenue growth +5% Health & Hygiene +6% (LFL) ENA DvM +3% (LFL) +10% (LFL) Total revenue growth +4% impacted by net negative impact of M&A and fx Driven by continued excellent health performance. Stable developed markets and Variable emerging markets 39

40 Key messages Right strategy Right Culture 40

41 Q&A

42 Resolutions 42

43 Resolution 1 To receive the 2015 report and financial statements

44 Resolution 2 To receive and adopt the Directors remuneration policy

45 Resolution 3 To receive and adopt the Directors remuneration report

46 Resolution 4 To declare a final dividend

47 Resolutions 5-15 Election / re-election of Directors

48 Resolution 16 To re-appoint PwC as auditors

49 Resolution 17 To authorise Directors to determine auditors remuneration

50 Resolution 18 To authorise the Company to make political donations

51 Resolution 19 To renew Directors authority to allot shares

52 Resolution 20 To renew Directors power to dis-apply pre-emption rights

53 Resolution 21 To renew the Company s authority to purchase its own shares

54 Resolution 22 To approve the calling of General Meetings on 14 clear days notice

55 Thank you for attending RB AGM 5th May 2016