Accelerate Growth In and Beyond the Core

Transcription

1 Accelerate Growth In and Beyond the Core Beth Springer Executive VP International and Natural Personal Care Centennial Strategy June 2009 MISSION We make everyday life better, everyday OBJECTIVES Maximize economic profit across categories, customers and countries Be best at building big-share brands in economically-attractive midsized categories ANNUAL GOALS STRATEGIES Double-Digit Economic Profit growth 3% to 5% Sales Growth EBIT Margin Growth +75 bps to +100 bps Free Cash Flow of 10% to 12% of Sales Be a high-performance organization of enthusiastic owners Win with superior capabilities in Desire, Decide and Delight Accelerate growth both in and beyond the core Relentlessly drive out waste 102 1

2 Updated Tactics Reflect New Environment & Progress to Date STRATEGY Accelerate growth both in and beyond the core TACTICS Capitalize on trends of health & wellness, sustainability, multicultural and affordability Extend our brands into countries/categories/channels with emphasis on GreenWorks and Burt s Bees. Seek smaller acquisitions in natural personal care, away from home, and current core international categories 103 Growing In and Beyond the Core Categories Channels GROW THE CORE Away From Home Bleach Acquisition Countries 104 2

3 Growing In and Beyond the Core Categories Channels BEYOND THE CORE Countries 105 Green Works Growth powerful cleaning done naturally Jan 08 Initial Brand Launch Homecare Cleaning Enter Adjacent Categories about every months Jan 08 Expand Internationally Jan 09 Natural Wipes Aug 08 Liquid Dish Detergent 106 3

4 Exceeding Expectations To Date Natural Segment Growth Natural Segment Share Green Works +97% Green Works Method $ Millions Natural Growth Natural Base +14% Seventh Simple Green 13.4% SCJ Nature s 3.0% Source 6.0% Other 6.0% 24.0% CY08 CY08 (w/o GW) CY08 (w/gw) Over $100MM US Retail Sales FY09 #1 in every Segment Source: IRI US Scanner FDKT, Growth rates: P52 Wks, November Market Share: P4Wks FDKT data ending 2/22/ Expand Natural Cleaning Platform to Laundry $1.8B Home Cleaning $3.5B + Dish + Wipes $11.3B + Laundry Detergent + Soil & Stain Remover + Fills natural niche in broader segment Source: IRI Scanner FDKT + company estimates to all outlet, P52Wks data ending 2/22/

5 Strong Business Case Water Oil I like that the product is all natural so I don t have to worry about irritation to my family s skin. #1 Need for Natural Consumer 95% Natural, Superior Cleaning, Strong Patent Protection Strong Retailer Support: Trade-Up Behind Super Premium Positioning Strong IP Protection Source: Blind In-house Use Test, July Burt s Bees Growth Earth Friendly Natural Personal Care Expand US Distribution Expand International Build Trial and Share Innovate 110 5

6 Leading Share - 3x Nearest Competitor Remains category leader in fragmented category; opportunity to consolidate share Fastest growing Burt s lines are Face (+30%) and Skin Care (+6%) $ Market Share of NPC* Size of Pie ~$500 million 3% 4% 4% 4% 4% 5% Remaining Brands Burt s Bees 23.4% 5% 2 nd Leading Competitor 8% *Source: P52W ending 3/22/09; IRI US ((excludes Target), Natural Grocery data from SPINS which excludes Whole Foods and company estimates 111 No. 1 Share in 5 of 8 Categories Tracked Channel 100.0% 80.0% 73.0% 78.5% All Outlet Share* 26% (+1pt vs. YAGO) Market Share 60.0% 40.0% 20.0% 23.4% 31.9% 23.2% 9.8% 24.7% 25.1% 6.9% Market 0.0% Total Baby Face Hair Kits & Lip Care Skin Sun Care Skin Care Care Care Gifts Care Cleanse Position Sources: P52W ending 3/22/09; IRI US (excludes Target) and Natural Grocery data from SPINS which excludes Whole Foods All Outlet share estimate also includes company s estimates for Target, Walmart, Whole Foods and Specialty Gift

7 Strong and Growing Franchise Burt's Bees Awareness/Trial/Usage 80% 70% 60% 54% 63% 69% CY 2005 CY 2006 CY 2007 CY % 40% 30% 20% 35% 15% 26% 30% 35% 13% 18% 21% 26% 10% 0% Awareness Trial Usage Source: Novak Marketing Inc. Note: Numbers are for Burt s Bees highest among Core NPC brands Awareness & trial data based on claimed responses, awareness based on aided recall 113 Strong Growth in Distribution FY09 Distribution Gains Channel Mass Grocery Drug Doors with Full Set +90% +15% +1% Significant U.S. distribution gains particularly at Walmart and Grocery Strong gains in secondary placement for Lip products 114 7

8 Recent Slowdown and Long-Term Growth Natural Personal Care vs. All Other Personal Care Source: Nutrition Business Journal Strategies and Capabilities are Global MISSION We make everyday life better, everyday OBJECTIVES Maximize economic profit across categories, customers and countries Be best at building big-share brands in economically-attractive midsized categories ANNUAL GOALS Double-Digit Economic Profit growth 3% to 5% Sales Growth EBIT Margin Growth +75 bps to +100 bps Free Cash Flow of 10% to 12% of Sales STRATEGIES Be a high-performance organization of enthusiastic owners Win with superior capabilities in Desire, Decide and Delight Accelerate growth both in and beyond the core Relentlessly drive out waste 116 8

9 Where we play outside of U.S. S. Korea Mexico Dominican Rep. Hong Kong Costa Rica/Panama Puerto Rico China ( south) Venezuela Ecuador Colombia Philippines Key: Tier I 80 % Peru Chile Uruguay Australia Tier II 14 % Argentina S. Africa Tier III 6 % New Zealand 117 Where we play - International FY09 Estimate* Net Customer Sales by Region FY09 Estimate* Net Customer Sales by Category * Based on FY09 Outlook as of May 1, 2009 Earnings Release 118 9

10 International Outpacing North America Sales FY04 FY05 FY06 FY07 FY08 FY09 Outlook (1) Clorox North America Clorox International 4% 5% 5% 11% 14% 9% 3% 12% 8% 16% Low to Midsingle digits Total Clorox 5% 5% 6% 4% 9% 3% to 4% (1) FY09 Outlook as of May 1, 2009 Earnings Release 119 Growth Idea: Poett Growth Idea Expand fragrance usage by transforming everyday life through sensory enjoyment Embrace consumers emotionally by awakening their senses through experiential 360 communication & Endorse fragrance credentials with other relevant product categories Inspirational Copy Excel at packaging design Sensorial Experiences Expand retail presence via adjacencies entries and secondary placements Attractive packaging design Inspirational product placement Wide range of fragrance concepts and products options Enhance sensorial experience during and after product use Develop 60/40 winners in key attributes for specific segments where relevant

11 Grow In and Beyond the Core Poett dilutables Poett aerosols Mistolín 121 Grow In and Beyond the Core

12 Poett Growth FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Volume 123 Growth Idea: Clorox Disinfecting Growth Idea Increase clorox +disinfecting occasions providing consumers integrated solutions by leveraging Clorox recognized heritage Expand current bleach portfolio into adjacencies Elevate disinfecting to a family health level, showing it as an expression of love Use bleach where possible to fuel adjacencies Exploit strong emotional connection with consumers Mas Amor. Menos Enfermedades First move to increase disinfecting occasions while cleaning Expand Bathroom portfolio to all countries and bring innovation to be competitive Introduce Air and Surfaces Disinfecting Spray Educational value message on cleaning + disinfecting better than cleaning alone with innovations Expand Clorox disinfecting power to Dilutables Launch Future Platforms Partnerships with health referents to support Clorox message Materialize Brand Promise in-store Superior packaging design Align identity across portfolio and the region Educate consumers on health benefits behind disinfecting Expand retail presence via adjacencies entries and secondary placements In store RCM

13 Acquired Bleach Brands in Latin America and Canada Grew core sales behind brand investment Extended into new laundry/homecare segments Reached critical mass in several areas 125 International: Summary Increasingly global strategies and capabilities Execution remains local Slower International growth near-term; outpace North America growth over time International growth drivers Category growth Improving 3D capabilities Extend to fill in white space in current countries Expand in core categories in Latin America or possibly Asia via acquisition or partnership

14 Accelerate Growth STRATEGY Accelerate growth both in and beyond the core TACTICS Capitalize on trends of health & wellness, convenience, sustainability and affordability Extend our brands into countries/categories/channels with emphasis on GreenWorks and Burt s Bees. Seek smaller acquisitions in natural personal care, away from home, and current core international categories 127 Acquisitions and Divestitures Portfolio strategy remains the same Leading brands Accretive growth rates and margins Competitively attractive markets On trend: health and wellness, sustainability, multicultural, affordability Our 3D capabilities will create competitive advantage Now focus on smaller acquisitions Consistent with targeted Debt to EBITDA target (2 to 2.5:1) Prefer bolt-ons with significant synergies Target areas in categories, countries and channels Categories: Core Household categories, Natural Personal Care, Away from Home Health Care Countries: Americas, Australia, and potentially Asia Channels: Current retail and away from home with emphasis on health care Continue to assess divestitures of businesses where are our portfolio criteria are less well met and there may be better owners