2012 Graduate Business Conference. Michael Polk President and CEO, Newell Rubbermaid

Transcription

1 2012 Graduate Business Conference Michael Polk President and CEO, Newell Rubbermaid March 30,

2 Background on Me 28 years consumer goods experience» 3 years Procter & Gamble» 16 years Kraft Foods» 8 years Unilever» 9 months at Newell Rubbermaid Operating experience in global markets» President, Asia Pacific - Kraft Foods» President, Americas and Global Customer Development - Unilever» President, Global Foods, Home, & Personal Care Unilever» Chief Executive Officer Newell Rubbermaid Functional experience» Manufacturing and R&D - Procter & Gamble» Sales, Marketing, Customer Development, R&D - Kraft and Unilever Education» Cornell 82 (Operations Research); Harvard 87 (MBA) 2

3 Great brands at PG, KFT, and UN 3 3

4 And now at NWL 4 4

5 Does size matter? No? Yes? 5

6 Bigger is Better: Number 1 or 2 6 6

7 Scale advantaged business model More marketing affordability Broader distribution reach (particularly in emerging markets) More capabilities (R&D, marketing, selling) More attractive as partner to suppliers and customers Often more profitable (fixed cost leverage) Often easier to attract talent 7 7

8 Big does not always mean better Stretching brand positioning too far for the sake of scale can be big mistake... in most categories multi-brand portfolios with narrower brand positioning usually trump the all purpose single brand approach Scale advantage does not mean sustainable competitive advantage... sometimes better to be famous for a few things better than competitive on all Scale breeds confidence... but sometimes complacency 8 8

9 Scale advantage does not mean sustainable advantage 9 9

10 Dollar share (%) David versus Goliath US Deodorant Category Value Shares P&G Unilever

11 Dollar share (%) Rethinking the conversation Efficacy Confidence to get the girl 11

12 Dollar share (%) Provoking consideration New Power - Seduction New Form Body Spray New Price +50% versus stick New Way to Use(Double Pits to Chesty) +50% Usage 12

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14 Disrupting the frame of reference undermined PGs scale advantage Deodorant Category Manufacturer Value Share Unilever 38.4 P&G Colgate 8.7 Henkel

15 Inspired by the global scale advantage? 45% 40% Global Deodorant Value Share Unilever 40% 35% 30% 25% 20% 15% 10% 5% 0% L12 10 P&G 11% Beiersdorf 10% L Oreal 3% 15

16 External forces can undermine scale 16 16

17 >100m impressions for $100k 17 17

18 Does size matter? No & Yes 18

19 Growth matters more Core Sales Growth Reinvestment in Business Productivity, Mix & Pricing Operating Income Margin Expansion Structural SG&A Leverage Gross Margin Expansion 19 19

20 Growth Game Plan 20

21 Growth opportunity: market share Global market size estimates top categories $9 $8 $5 $4 $3 $35 Market size globally $120bn+ $10 Average NWL global share $11 $20 5% $12 21

22 Growth opportunity: lead trends in our fields 22

23 Growth opportunity: fuel emerging growth Core sales emerging Core sales growth emerging developed developed 23

24 Growth opportunity: go where babies are 87% Baby & Parenting revenue among 7% of world births France Baby & Parenting revenue rest of world World births USA Japan UK Germany France Germany USA UK Japan rest of world Source: IMF and World Bank 24

25 Growth opportunity: go where education is 75% Everyday Writing revenue among 13% of enrolled students Everyday Writing revenue Enrolled students rest of world USA USA W Europe Canada Colombia Mexico Mexico Colombia Canada rest of world Source: UNESCO W Europe 25

26 Growth opportunity: go where steel is Lenox generates 6% of revenue in China - 43% of market Lenox revenue World steel consumption USA Brazil Canada Mexico China rest of world USA China Canada Brazil rest of world Mexico Source: World Steel Association Statistical Yearbook

27 Growth opportunity: reset resource algorithm Marketing & sales headcount Operating income margin % emerging developed developed emerging developed 27

28 Two fields of play CONSUMER Common capabilities PROFESSIONAL Brand led growth strategies Insights at foundation Improving product performance 28

29 Sharp portfolio choices Win bigger Win where we are Incubate for growth 29

30 Resources follow choices Win bigger Major drivers of company growth, 1 st call on resources Emerging market expansion Strengthen portfolio; potential bolt-on acquisitions Win where we are Grow ahead of markets, suspend international expansion Partner strategic customers and develop new channels Growth platforms strengthen the core Incubate for growth Develop compelling growth options Resources allocated against growth potential 30

31 Aligned around how to win Make brands really matter Build an execution powerhouse Unlock trapped capacity for growth Develop a growth team Extend our boundaries 31

32 5 WAYS TO WIN BUSINESS MODEL WHERE TO PLAY AMBITION PURPOSE Growth Game Plan Newell Rubbermaid helps people flourish every day, where they live, learn, work and play NWL is a growing brand-led business with a strong home in the United States and global ambition Our Consumer brands win at the point of decision through excellence in performance, design and innovation Our Professional brands win the loyalty of the chooser by improving the productivity and performance of the user We collaborate with our supplier and customer partners across the total enterprise in a shared commitment to growth and creating value We deliver competitive returns to our shareholders through consistent, sustainable and profitable growth WIN BIGGER WIN WHERE WE ARE INCUBATE FOR GROWTH CT&A, IP&S, LABELING, COMMERCIAL PRODUCTS FINE WRITING WRITING & CREATIVE EXPRESSION HOME ORGANIZATION & STYLE CULINARY LIFESTYLES HARDWARE BABY & PARENTING ENDICIA, MIMIO RUBBERMAID MEDICAL SOLUTIONS MAKE OUR BRANDS REALLY MATTER BUILD AN EXECUTION POWERHOUSE UNLOCK TRAPPED CAPACITY FOR GROWTH DEVELOP THE TEAM FOR GROWTH EXTEND BEYOND OUR BORDERS Sharpen brand strategies on highest impact growth levers Launch new USA customer development organization Deliver European Transformation, Project Renewal savings, and working capital reduction Drive performance culture aligned to business strategy Accelerate Latin America and Asia in Win Bigger Categories. Partner to win with customers and suppliers Develop joint business plans for new channel penetration and broader distribution Simplify everything to release costs for growth Build a more global perspective and talent base Strategic insight program in China EDGE: EVERY DAY GREAT EXECUTION 32

33 Our Future Future will be about sharper choices and bringing power of $6 billion corporation to prioritized businesses Will attack corporate cost structure and complexity in developed world to fund strategic investment in select emerging markets Will boost growth in developed world by scaling capabilities in customer development and strengthening the supply chain Expect growth to accelerate as we shift our business South and East and place bigger bets on our highest potential categories 33

34 Does size matter for NWL? category intimacy smart scale NWL Growth Formula 34

35 Questions March 30,