MCPHERSONS (ASX MCP)Presented by Laurence McAllister (CEO)
A Balanced & Focussed Growth Journey!
Net Debt reduced from $92m at 31 December 2015 to $41m at 31 December 2016.
Normalised leverage ratio reduced from 3.1 times to 1.5 times.
Corporate Bonds reduced from $60m to $25m. Buybacks to continue.
Financial position has absorbed and adjusted to AUD/USD depreciation from $US1.10 to $US0.75.
Nov2014
HOUSEWARESDivision
51% divested(Joint
Venture established)
Mar2014
Divestment
Acquisition
Mar2013
Acquisition
Acquisition
Aug2012
New Agency(Fine Fragrances)
Aug2014
Acquisition
Jul2014
Acquisition
Apr2014
New Agency
Jun2014
McPhersons Printing Demerger
Feb2012
Acquisition
Acquisition
Acquisition
Oct2013
Jul2013
5
Mar2016
HOUSEWARESDivision
remaining 49% divested
May2017
New Agency
Diversification achieved through acquisitions, divestments and new agencies
Need for building greater rigour & capability in New Business, R&D & Field Exec. with clear prioritised choices
Confidence in compelling & integrated Brand & Key Account Customer Joint Business Plans
Understanding our brands relative to the categories, segments & competitors we participate with today
Passionate to develop our comprehension of the macro playing field - Today & tomorrows landscape & drivers by category & segment, that help define rich territories to explore and participate within
A balanced view of Core BIG 6 brands & optimising our resources & investments in Health, Wellness & Beauty
2018 fiscal shape considerations, the ability to achieve & manage, the key drivers and the Risks & Opportunities of the plan
A professional close for FY 2017
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Build New Capabilities For Business Pulse Management, for Course Correction, Inv. & Growth
Define the R&D Model and rigorously manage key projects
Design a landscape model to comprehend new & future territories Innovate & Acquire
Build Management Scorecard, Business Intell. (BI) and Consumer Insight (CI) Capability
Drive Winning plans for Brand, Customer & Sales Execution Excellence
Accelerate Big 6 Core brand performance
Redesign Top 6 Customer Trading Terms (TTs) via joint customer business plans (JBPs) Implement PLEE: PriceLine Exec. Excellence, supported by HR & Field Sales gap analysis Engage & live the virtuous cycle principles of the EXPORT & International business model
Address & Deliver the Make Plan Imperatives
Land Health, Wellness and Beauty Brand as our #1 PRIORITY & Deliver the Business Plan
Execute the Supply chain / Kingsgrove EBIT optimisation to re-invest in Big 6 Core brands
Realise HAPL Commercial BU upside
Return NZ to EBIT growth
Build Tomorrows Businesses Today & realise the size of the prize!
Reset our approach to New Business & Bus. Models - Honey JV etc
Selectively Grow our Agency Portfolio to re-invest in the Big 6 Core brands
Step-change our Sustainability Agenda
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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 Akin, Dr LeWinns & Multix Multix Greener Program Dr LeWinns & Akin 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 / ROIs PLEE: PriceLine Execution Excellence BIG 6 Customer JDPs / 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
Business Management
Scorecard
DashboardProject
Operational
Big 6
Risk Management
Sustainability
Winning Plans
Multix
DLW & Akin
Restaging Brands
Landscape Agency Profile
Gather By JV
Innovate & Acquire
Capability Enhancements
R & D
Sales / KAM
Export
Export / International
PLEE
IT Step Change
Geographic Step Change Plans
NZ
SG
Investment Profiles
JBPs / TT
SC
KG Plans
Program
Laurence McAllisterManaging Director
Paul Witheridge
CFO
David Smith
Business Development
Director
Brett Owers
New Bus. Commercial
Finance Director
Sarah Tully
HR Director
Lori Pirozzi
National Accounts &
Export Director
Byron Stone
Field Sales Director
Donna Chan
Marketing Director
Mary Pearce
R& D Director
Mark Brady
Supply Chain
Director
Sammy Chan
MD MCP Hong
Kong
John Ceresa
GMHAPL
Rebecca WakefieldExecutive Assistant
32% of revenue
HAPL22%
Agency17%
H,W& B61%
High Growth
High Demand
High Margins
Net SalesContribution
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$4.6 Bill, +15% CAGR $4.0 Bill, +3% CAGR
Source: Industry Revenue Complimentary Medicines Australia 2015 (2017 Est), Cosmetics/Toiletry retailing IBISWorld 2017 Est
HEALTH WELLNESS BEAUTY
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The #1 Cosmecutical brand
Experts in Anti-Ageing
Currently launching new prestige packaging
Passionate about addressing skin concerns for women of all ages
Increased R&D investment allows us to
Work with our global suppliers on continued leading edge innovation that delivers real results
Our Dr. LeWinns 'Masterbrand' campaign featuring Anna Bamford is aiming at:
targeting the younger consumer 25+; and
attracting new users to Dr. LeWinn's brand
Our new Dr. LeWinns website delivers increase consumer engagement.
Modern & Prestigious Packaging Step-change
I N T R O D U C I N G
ETERNAL YOUTH
F O U R N E W P R O D U C T S L A U N C H I N G M A Y / J U N E 2 0 1 7
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15
One Global A'kin Haircare & Skincare Brand
New highly appealing natural, contemporary packaging
Innovator in Natural with pure, authentic, efficacious products such as
Coconut Water & Green Tea Hydration Range
Rosehip + Vitamin C
Natural Dry Shampoo (Bamboo)
Transform Akin with a new positioning & purpose
New brand campaign and merchandising
New website engaging our consumers
Relaunch
NPD, Visual Identity and Creative 16
Distribution expansion in supermarkets
Maintain loyalists whilst attracting younger consumers via Glam innovation & engagement
Glam growing at +23%* with >105k Facebookfans
Available to purchase on-line
Exciting innovations - high growth segs.
Catwalk trends, Celebrity endorsement, Fashion collaborations
Collaboration with Liz Kelsh, online tutorials using the Manicare brush range
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Convert high brand awareness into strong growth through:
Distribution expansion in supermarkets and ecommerce
Contemporise Lady Jayne brand through packaging relaunch and differentiated innovation
19
WIP
LADY JAYNE REINVENTION
CURRENT PACKAGING NEW LOOK (ESSENTIALS RANGE)
NEW LOOK PRO RANGE
New Iconic Brand Packaging Identity
22
Kingsgrove Warehouse - Total capacity 12,500 pallet spacesJan 2015 - 200 spaces available 99% full 1% space available ($43mil Stock holdings)Jan 2017 - 6000 spaces available 48% capacity opportunity ($28mil Stock holding)
35% reduction in working capital over 2 years by Improving inventory efficiency & Supply Chain management
Hit ratesJan 2015 - Ave hits per operator per day 1000 hitsJan 2017 - Ave hits per operator per day 1200 hits
20% increase in pick efficiency over 2 years by improving pick line management
SKU Rationalisation Jan 2015 - Number of active SKUs - 1600 SKUs Jan 2017 - Number of active SKUs - 1100 SKUs
32% reduction in active SKUs eliminating the tail, eliminating non valuable work
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Country Partner Target / Sign Date
Australia Renewed December 2016
Singapore WIP Qtr 2 2017
New Zealand Landed January 2017
Australia Renewed to April 18
SingaporeTerminated current distributorand will transfer distribution to MCP
Landed January 17
Australia
Expanding ranging with Australia; and increasing territories to Singapore and New Zealand
WIP Qtr 2 2017
Australia / NZ Renewed Qtr 1, 2017
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25
18% of revenue from agencies
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http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&docid=lJJ_EMKd_4TXmM&tbnid=agWJJM4xg4uvmM:&ved=0CAUQjRw&url=http://cashinmybag.com/blog/sell-gucci-handbags-accessories-shoes/&ei=y7nQU9mdHomn8AWwhoCACQ&bvm=bv.71667212,d.dGc&psig=AFQjCNEDQJxuI9rjx2OHUVUlQ8FhlZtc8g&ust=1406274350769236
3 unit Gift SetStarter Pout Pack - 6 units
Karen Murrell Natural Lipsticks
Keychain Gift Set Cosmetic Bag Gift Set
> 3 Mill AUDOf total media value
Focus on Sport and News programs
CHANNELS JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Business/SportsMale 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)
AU
Business/SportsMale 25-54 yr oldCHANNELSJANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC
BIG BASH & V8 ( Cricket & Motor Sport)
AFL (Football)
NRL (Rugby)
SUPER RUGBY (Rugby)
V8 SUPER CARS (Motor Sport)
FORMULA 1 RACING (Motor Sport)
ONLINE (Facebook & Youtube Paid Ads)
INTRODUCING
September 2017 Launch
Working together to drive Akin in the UK and EU
Akin has been positioned as a straightforward and simple choice to a confused customer.
Distributed through Holland & Barrett, Wholefoods market, Naturismo, Waitrose, Aer Lingus, Thomas Cook.
Targeted purchases of $1m in Year 1
Specialise in natural, good value mid tier skincare and health brands
5 star Tmall TP store operator
Secured the opening of Akins Official Tmall store.
Targeted purchases of $1m in Year 1
Specialise in Premium skincare brands
Focus will be on LSC and EY
Exclusive repackaged range (based on Korean design) of LSC for China only.
Forecasting purchases of $2.0m in Year 1
UCO to marketing and build the brand in China from virtually zero presence.
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Slide Number 111th Annual Rising Stars Microcap Conference27th June 2017Laurence McAllister Managing DirectorA Balanced & Focussed Growth Journey!"..... and a substantially improved financial position, well positioned for future growth. McPhersons - The Last 5 years!...Objectives Closing Year End & Planning 2018Australia - Summary Priorities To Win in 2018 Clear Focus & Discipline To Deliver The Money!Senior Leadership Team The New Look!Our #1 priority is to deliver quality growth on our top 5 power brandsWinning In Health Wellness & Beauty:Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19LADY JAYNE REINVENTIONSlide Number 21Increase commercial focus & execution capabilities by developing Strategic Joint Bus. Planning & in-store metrics across our top 6 customersSupply Chain Improvements: Kingsgrove - WarehousePartnerships UpdateWe will collaborate with selective partners that will leverage our portfolio offeringSlide Number 26Slide Number 27Slide Number 28Slide Number 29Alpecin ATL 2017Slide Number 31An Example Of A New Approach Potential Honey JV with Gather By!International / Export BusinessSlide Number 34