Pz Cussons Plc · LSE:PZC
Pz Cussons — Investor Day (March 2021)
54 slides from Pz Cussons's investor day presentation, Mar 25, 2021
Slide 1: A journey to sustainable value creation
A journey to sustainable value creation 25 March 2021
Slide 2: Disclaimer
DISCLAIMER This presentation contains certain forward-looking statements relating to expected or anticipated results, performance or events. Such statements are subject to normal risks associated with the uncertainties in our business, supply chain and consumer demand along with risks associated wit
Slide 3: Welcome to our new strategy
Cussons : Welcome to our new strategy
Slide 4: Our journey to sustainable value creation
Our journey to sustainable value creation We are a branded consumer goods company A clear strategy to return to sustainable, profitable revenue growth Investing in the resources we need to succeed Putting sustainability at the heart of everything we do We have already made a start 4
Slide 5: Agenda
Agenda Growing Our Our Strategy Must Win Brands Enabling Transformation ▪ Welcome and introduction ▪ Carex ▪ Sustainability Kieran Hemsworth Jonathan Myers ▪ Learning from our past ▪ St. Tropez ▪ Culture, Leadership and ▪ Our new strategy Awie Newell Capabilities Q&A Jonathan Myers Matt Stripe ▪ Pre
Slide 6: Our business today
Our business today £587m Revenue 4 Main markets United Kingdom Nigeria 3,600 Employees 4 Categories of leading brands Indonesia Australia & New Zealand Personal Care, Home Care, Food & Nutrition and Electricals 6
Slide 7: Our new and strengthened management team
Our new and strengthened management team Matt Stripe Steve Noble Jan Hodges Chief Human Resources Officer Chief Supply Chain Officer Chief Information Officer Jonathan Myers Chief Executive Officer Kevin Massie Awie Newell Kieran Hemsworth General Counsel and Company Secretary Managing Director Beau
Slide 8: Learning from our past
USSONS Learning From our past
Slide 9: Our rich heritage - more than 130 years
Our rich heritage - more than 130 years 9
Slide 10: We have declined in recent years
We have declined in recent years And underinvested in our brands Revenue* Adjusted Profit Before Tax* Media & Consumer investment £108m - 6% £72m FY13 CAGR FY19 FY13 - 6% CAGR 1/3 £883m Dividend per share* reduction £603m FY19 7.39p + 2% 8.28p FY13 FY19 FY13 CAGR FY19 * As reported 10
Slide 11: Drivers of our decline
Drivers of our decline Took our Lack of growth Diversified Internal Lost talent and eyes off the led to portfolio spread distraction of belief. We forgot consumer underinvestment resources too implementing how to win in our brands thinly large multinational model 11
Slide 12: Market concentration and brand strength in home markets
Market concentration and brand strength in home markets Informs our ‘where to play’ choices 90% of revenue 90% of brands generated generate the majority in our 4 main of revenue from only markets 1 or 2 markets 12
Slide 13: Nigeria
Nigeria Considered an attractive but challenging opportunity Strong FMCG fundamentals Volatile macro economic drivers 209m $ Population to double by 2050 13
Slide 14: Nigeria portfolio
Nigeria portfolio Strong brand positions with established route to market Personal Care Home Care Electricals Food & Nutrition #1 #1 #1 #1 #1 #1 - Premier, Morning Fresh - Nielsen Nigeria MAT value share January 2021. Other brands - PZC internal data 14
Slide 15: Macro trends help define portfolio priorities
Macro trends help define portfolio priorities Paving the way for strong growth potential 1 2 3 4 Accelerated focus on holistic Customisation and Polarisation between Sustainability is a health and wellbeing individual consumer needs premium and value key value driver for consumer brands 5 6 7 8 Emer
Slide 16: Building brands for life. Today and for future generations.
Building brands for life. Today and for future generations. 16
Slide 17: Building brands for life (video)
Strategy Building brands for life. Where to play Today and for future generations. How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Video link – click here Summary Building brands for life. Today and for future generations. 17
Slide 18: Building brands for life
Strategy Building brands for life. Where to play Today and for future generations. How to win Sustainability We build brands to serve consumers better with Hygiene, Baby and Beauty at our core Culture Leadership and Capabilities Low to mid single-digit sustainable, profitable revenue growth Reducing
Slide 19: Our transformation journey
Strategy Our transformation journey Where to play How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Turnaround Sustained Growth Unlock Full Potential Fix the core Grow the core Expand from the core Sources of growth • Expansion into • Broad
Slide 20: Focus on leading brands in priority markets
Strategy Where to play How to win Focus on leading brands Sustainability in priority markets Culture Leadership and Capabilities Reducing complexity Financial framework Summary Building brands for life. Today and for future generations. 20
Slide 21: Balanced geographic footprint
Strategy Balanced geographic footprint Where to play Combines growth potential with stability How to win Sustainability Developed Emerging Culture Leadership and Capabilities Population size and growth 55% Reducing complexity Revenue from Financial framework Developed markets GDP per capita Summary
Slide 22: Must Win Brands will be our priority
Strategy Must Win Brands will be our priority Where to play Portfolio Brands still play key roles How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Building brands for life. Today and for future generations. 22
Slide 23: Priority support for Must Win Brands
Strategy Priority support for Must Win Brands Where to play How to win Sustainability MUST WIN Culture Leadership BRANDS MUST WIN PORTFOLIO and Capabilities BRANDS BRANDS Reducing complexity Financial framework Summary • Competitive brand investment levels • Brilliant execution • Strong innovation p
Slide 24: The Must Win Brands are already making progress
Strategy The Must Win Brands are already making progress Where to play How to win Sustainability Culture Leadership and Capabilities 3/4 Reducing complexity Financial framework 1/2 2/3 Media & Consumer Summary Revenue Gross Profit investment FY21 latest view Building brands for life. Today and for f
Slide 25: PZ Cussons Growth Wheel
Strategy Where to play How to win PZ Cussons Sustainability Culture Leadership Growth Wheel and Capabilities Reducing complexity Financial framework Summary Building brands for life. Today and for future generations. 25
Slide 26: Introducing the PZ Cussons Growth Wheel
Strategy Introducing the PZ Cussons Growth Wheel Where to play How to win Sustainability Culture Leadership and Capabilities Reducing complexity PZ Financial framework Cussons Summary Growth Wheel Building brands for life. Today and for future generations. 26
Slide 27: Consumability
Strategy Consumability Where to play How to win Sustainability Assortment covers target consumers and trends Culture Leadership and Capabilities Product range delivers on usage needs and occasions Reducing complexity Innovation breaks down barriers to trial Financial framework Summary Develop produc
Slide 28: Attractiveness
Strategy Attractiveness Where to play How to win Sustainability Competitive offering for consumers Culture Leadership and Capabilities Value created with customers and distributors Reducing complexity Revenue Growth Management Financial framework Summary Good, Better, Best portfolios Deliver value f
Slide 29: Memorability
Strategy Memorability Where to play How to win Sustainability Distinctive and purpose-led Culture Leadership and Capabilities Consistent execution Reducing complexity Effective activation Financial framework Summary Digital first Competitive levels of investment Build distinctive brands and strength
Slide 30: Shoppability
Strategy Shoppability Where to play How to win Sustainability Win where the shopper shops Culture Leadership and Capabilities Multi-channel distribution Reducing complexity Market-leading execution in store Financial framework Summary Accelerate e-commerce Brilliant execution in all retail channels
Slide 31: Video link – click here
Strategy Where to play How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Video link – click here Building brands for life. Today and for future generations. 31
Slide 32: Video link – click here
Strategy Where to play How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Video link – click here Building brands for life. Today and for future generations. 32
Slide 33: Video link – click here
Strategy Where to play How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Video link – click here Building brands for life. Today and for future generations. 33
Slide 34: Sustainability
Strategy Where to play How to win Sustainability Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Building brands for life. Today and for future generations. 34
Slide 35: Sustainability is already in our DNA
Strategy Sustainability is already in our DNA Where to play How to win Protected the area of 100% NO PVC Sustainability 10,000 football pitches of palm in plastic bottles 2% oil suppliers land fill waste Culture Leadership By conserving forest made NDPE and Capabilities footprint in Indonesia commit
Slide 36: Our long term Sustainability goal
Strategy Our long term Sustainability goal Where to play Our ambition is to achieve B-Corporation How to win certified status by 31 May 2026 Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Year 1 Year 2 Year 3 Year 4 Year 5 Building brands for life.
Slide 37: What would B-Corporation certified status mean?
Strategy What would B-Corporation certified status mean? Where to play How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework B-Corp certification resonates B-Corp logo on pack can B-Corp can also attract shoppers with target consumers reassure target c
Slide 38: Delivering on our Plastic Promise
Strategy Delivering on our Plastic Promise Where to play How to win Sustainability Culture Leadership and Capabilities 85% 100% 100% 15% 100% Reducing complexity Financial framework Carex Sanctuary Spa Original Source Morning Fresh Cussons Baby Summary refills gift sets I’m Plant Based bottles wipes
Slide 39: Culture, Leadership and Capabilities
Strategy Where to play How to win Culture, Leadership and Sustainability Culture Leadership Capabilities and Capabilities Reducing complexity Financial framework Summary Building brands for life. Today and for future generations. 39
Slide 40: Culture, Leadership and Capabilities
Strategy Culture, Leadership and Capabilities Where to play How to win Sustainability Culture Leadership and Capabilities Reduce complexity Financial framework Video link – click here Summary Building brands for life. Today and for future generations. 40
Slide 41: Re-igniting our pioneering spirit
Strategy Re-igniting our pioneering spirit Where to play How to win Sustainability Culture Leadership and Capabilities Building on Driving Investing in Reduce complexity our strong leadership at the Financial framework culture all levels capabilities Summary we need Building brands for life. Today a
Slide 42: Building commercial capabilities
Strategy Building commercial capabilities Where to play How to win FY20 FY21 FY22 FY23 FY24 Sustainability Brand Building Culture Leadership Insights and Innovation and Capabilities Reducing complexity Revenue Growth Management PZ Cussons Financial framework Digital Marketing Growth Wheel Summary In
Slide 43: Dramatically reduce complexity and enable transformation
Strategy Where to play How to win Dramatically reduce complexity Sustainability Culture Leadership and enable transformation and Capabilities Reducing complexity Financial framework Summary Building brands for life. Today and for future generations. 43
Slide 44: Reducing complexity
Strategy Reducing complexity Where to play With the right operating model to support our priorities How to win Sustainability Culture Leadership Regional management layers removed and Capabilities Reducing complexity Financial framework Commercial centre of gravity in local markets, enabled by an ex
Slide 45: Nigeria’s complex footprint of operations
Strategy Nigeria’s complex footprint of operations Where to play Requires focus, discipline and smart simplification How to win Sustainability Investment in Hygiene and Baby for profitable revenue growth Culture Leadership and Capabilities Reducing complexity Focus on profitability in sizeable Elect
Slide 46: Financial framework
Strategy Where to play How to win Financial framework Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Building brands for life. Today and for future generations. 46
Slide 47: Our first half marked the start of the journey
Strategy Our first half marked the start of the journey Where to play Revenue growth, brand investment and Balance Sheet strength How to win Sustainability Revenue* Adjusted Profit Before Tax* Net Debt* Culture Leadership and Capabilities £313m £30m £35m £18m Reducing complexity H1 FY20 + 19% H1 FY2
Slide 48: Low to mid single-digit sustainable, profitable revenue growth
Strategy Low to mid single-digit sustainable, profitable Where to play revenue growth How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Sustainable Summary Profitable Revenue Growth Building brands for life. Today and for future generations. 48
Slide 49: We have built a very resilient balance sheet
Strategy We have built a very resilient balance sheet Where to play For disciplined but flexible capital allocation How to win Sustainability Culture Leadership and Capabilities Invest in Must Win Brand growth and maximise return on investment Reducing complexity Financial framework Focus on deliver
Slide 50: Summary
Strategy Where to play How to win Summary Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Building brands for life. Today and for future generations. 50
Slide 51: Building brands for life
Strategy Building brands for life. Where to play Today and for future generations. How to win Sustainability We build brands to serve consumers better with Hygiene, Baby and Beauty at our core Culture Leadership and Capabilities Low to mid single-digit sustainable, profitable revenue growth Reducing
Slide 52: Our transformation journey
Strategy Our transformation journey Where to play How to win Sustainability Culture Leadership and Capabilities Reducing complexity Financial framework Summary Turnaround Sustained Growth Unlock Full Potential Fix the core Grow the core Expand from the core Building brands for life. Today and for fu
Slide 53: Our journey to sustainable value creation
Strategy Our journey to sustainable value creation Where to play How to win We are a branded consumer goods company Sustainability Culture Leadership and Capabilities A clear strategy to return to sustainable, profitable revenue growth Reducing complexity Financial framework Summary Investing in the
Slide 54: Q&A
Q&A Building brands for life. Today and for future generations. 54