Financial Analyst Meeting
Hamburg, November 4th, 2008
2
Disclaimer
Some of the statements made in this presentation contain forward-looking information that
involves a number of risks and uncertainties. Such statements are based on a number of
assumptions, estimates, projections or plans that are inherently subject to significant risks,
uncertainties and contingencies that are subject to change. Actual results of events could
differ materially from those anticipated in the Company´s forward-looking statements, as a
result of a variety of factors, including those set forth from time to time in the Company´s
press releases and reports and those set forth from time to time in the Company´s analyst
calls and discussions. We do not assume any obligation to update the forward-looking
statements contained in this presentation.
This presentation does not constitute an offer to sell or a solicitation or offer to buy any
securities of the Company, and no part of this presentation shall form the basis of or may
be relied upon in connection with any contract or commitment. This presentation is being
presented solely for your information and is subject to change without notice.
3
Agenda
Go for World Class
Thomas-B. Quaas (CEO)
Financials
Dr. Bernhard Düttmann (CFO)
Go for World Class
Thomas-B. Quaas
CEO
5
Beiersdorf Consumer Business Strategy
6
7
NIVEA Face Care: Market Segmentation
30+
40+
50+
60+
ACCESSIBLE BEAUTY
&
FRESHNESS
SENSUALITY
&
ATTRACTIVENESS
AUTHENTICITY
&
SOPHISTICATION
BALANCE
&
SELF-PRESERVATION
ANTI-WRINKLE Q10
DNAge
EXPERT LIFT
VITAL
8
NIVEA Face Care: Market Segmentation
30+
40+
50+
60+
9
Eucerin Anti-Age: Top in the Pharmacy Channel
HYALURON-FILLER 2006
DermoDENSIFYER 2008
Most sucessful innovation 2006 in
european pharmacies
Eucerin Global Champion launch
for demanding skin
Hyaluron-Filler Day:
No. 1 product in Anti-Age
(European Pharmacies) *
* Source: IMS Europe 7; YTD 08/2008
** IMS Germany; 08/2008
DermoDENSIFYER:
No. 3 and No. 5 products in
Anti-Age behind Hyaluron-Filler Day
and Night in German pharmacies **
10
11
NIVEA Haus: Opening in Berlin and Dubai
Dubai:
Located in the Dubai Mall, opening on Nov. 24th
450m2 on one level with 28 consultants.
Berlin:
Located “Unter den Linden”, opening in spring 2009.
12
Beiersdorf Consumer Business Strategy
13
Investing in China – Current Status
Beiersdorf’s new brands Slek, Maestro, S-Dew and Hair Song have proven to be high
quality assets.
Our investments will further strengthen the brand equity of the new business.
There were no surprises after taking ownership.
All funds allocated to this business will fully support local marketing and sales activities.
Beiersdorf’s expertise in R&D and marketing will provide additional benefits to our new
hair team in China.
We have taken an uniquely attractive opportunity – winning over competitors in the
2007 auction.
14
Investing in China – Market Data (1/2)
Beiersdorf’s market positions
#3 in Chinese hair care with about 7% market share.
Undisputed #1 in Chinese hair styling with about 21% market share.
Hair care
Hair styling
FY2007 (only shampoo)
Market growth: +11%
Beiersdorf
all others
FY2007
Market growth: +2%
Beiersdorf
all others
company A
company A
company B
company C
company D
company B
company E
15
Investing in China – Market Data (2/2)
Hair Care and Styling
8,330
Volume usage in ml per capita:
World:
Market Size RSP Value in €mn
8,000
Size: €45,387m
Growth: +5.5% vs. 2006
7,000
Germany
China
1,130
682
252
8
Shampoo
Styling
6,000
4,815
5,000
Source: Euromonitor 2006
4,433
4,000
3,000
2,267
2,043
2,000
1,772
1,720
1,480
1,243
1,192
Mexico
Italy
1,000
0,0000
USA
Brazil
Japan
China
Germany
France
UK
Source: Euromonitor, Total Hair Care, 2007, RSP, mill.€ y-o-y exchange rates
Russia
16
Investing in China – Our Rationale
Organic growth and the acquisition in China fully match our
strategic criteria regarding geography, segment and brand
quality.
Based on a solid and successful experience in the Chinese
market, Beiersdorf plans to grow the new brands regarding
product portfolio, consumer perception and market share.
The NIVEA skin care business in China is already expanding at
maximum speed (+42% in 9M 2008).
The marketing investments in our new Chinese brands will build
brand equity and deliver long-term return. Projected EBIT
development is -€45m in 2008 and -€60m in 2009. After this
peak, EBIT will turn positive until 2012.
17
Beiersdorf in China – Perspectives 2012
The investments will lead to a strong sales development:
Sales in hair care and styling will double until 2012
(CAGR of 20%, based on 2008). Market growth is
currently about 11%.
In addition our NIVEA skin care business in China will
benefit from the extended distribution platform by
improved access to smaller cities.
The joined strengths of NIVEA, Slek and Maestro will turn
China into Beiersdorf’s strongest market in the emerging
world.
China will become profitable by 2012.
Financials
Dr. Bernhard Düttmann
CFO
19
Analyst statement about Beiersdorf (August 2008)
“Beiersdorf does what the company is really good at:
Building brand equity.”
20
Key Figures
Jan. – Sept.
2007
Jan. – Sept.
2008
mill. €
mill. €
4,167
4,547
EBIT
467
561
Profit after Tax
338
402
531
548
12.7%
12.1%
12.9%
380
9.1%
394
8.7%
1.68
1.72
Sales
)
EBIT (excl. special factors) *
)
Return on Sales (EBIT) *
(excl. acquisitions)
)
Profit after Tax (excl. special factors) **
)
Return on Sales (Profit after Tax) **
) ***)
Earnings per Share in € **
*)
Change
adj. for curr.
trans. effects
in %
+9.1
excluding special factors due to the realignment of the Consumer Supply Chain (€13m before tax income in 2008, Europe only)
excluding special factors due to the realignment of the Consumer Supply Chain (€8m after tax income in 2008)
***) calculated on the basis of the dividend carrying shares
**)
+11.8
21
Beiersdorf Consumer Business Strategy
22
Sales per Business Segment
Jan. – Sept.
2007
Consumer
tesa
Total
Jan. – Sept.
2008
Change
nominal
adj. for curr.
trans. effects
mill. €
mill. €
in %
in %
3,531
3,892
+10.2
+13.0
636
655
+2.9
+4.8
4,167
4,547
+9.1
+11.8
23
EBIT per Business Segment
Jan. – Sept. 2007
Jan. – Sept. 2008
mill. €
% of sales
mill. €
% of sales
Consumer
397
11.2
489
12.6
Consumer*) (excl. special factors)
461
13.0
476
12.2
tesa
70
11.0
72
11.0
Total
467
11.2
561
12.3
Total*) (excl. special factors)
531
12.7
548
12.1
*) excluding special factors due to the realignment of the Consumer Supply Chain
24
Marketing Spend 2004-2008 (9M)
(as reported)
% of sales
39.0%
37.0%
Consumer 36.8%
35.0%
33.0%
Beiersdorf group 32.1%
31.0%
29.0%
27.0%
25.0%
2004
2005
2006
2007
2008
Spending is stabilizing – now it’s about efficiency
25
Divesting BODE Chemie
Beiersdorf continues its focus on skin and
beauty care.
Bode Chemie generated sales of around
€70m in 2007.
Bode is one of Europe's leading
specialists for disinfection, hygiene and
skin protection with the core brand
Sterillium.
Signing October 20th 2008, closing
planned for year-end 2008.
Acquired by Paul Hartmann AG.
26
Beiersdorf Consumer Business Strategy
27
More efficient and flexible Supply Chain
Capacity usage in Beiersdorf’s Consumer
factories in Europe has increased from 50%
in 2005 to 81% in 2008 (based on 5 days
and 3 shifts).
Manufacturing of finished products by
contractors has increased from 12% to 27%
between 2005 and 2008.
Optimal efficiency safeguards low
production cost per piece.
More flexibility allows for fast adaptations in
line with demand.
28
Beiersdorf Consumer Business Strategy
29
Consumer Sales per Region
Jan. – Sept.
2007
Jan. – Sept.
2008
Change
(like-for-like*)
Allocation
mill. €
mill. €
in %
in %
723
738
+2.0
19.0
Western Europe
1,387
1,453
+3.8
37.3
Eastern Europe
410
497
+19.7
12.8
North America
240
221
+2.9
5.7
Latin America
263
308
+21.1
7.9
Africa, Asia, Australia
508
675
+22.7
17.3
Total Consumer
3,531
3,892
+9.2
100.0
thereof CRBI countries
230
395
+32.3
10.1
(by origin)
Germany
*) adjusted for currency translation effects and excluding acquisitions (China Hair Care, 50% Beiersdorf AG Switzerland)
30
Group EBIT per Region
Jan. – Sept. 2007
Jan. – Sept. 2008
Allocation
mill. €
% of sales
mill. €
% of sales
in %
400
13.4
518
16.3
92.2
Americas
20
3.5
16
2.8
3.0
Africa, Asia, Australia
47
7.9
27
3.5
4.8
Total
467
11.2
561
12.3
100.0
Europe*) (excl. special factors)
464
15.5
505
15.9
92.0
Total*) (excl. special factors)
531
12.7
548
12.1
100.0
Europe
*) excluding special factors due to the realignment of the Consumer Supply Chain
31
Beiersdorf Consumer Business Strategy
32
Employees per Region
Sept. 30th
2007
Sept. 30th
2008
Change
Allocation
in %
in %
11,202
11,499
+2.7
52.9
Americas
2,351
2,469
+5.0
11.4
Africa, Asia, Australia
3,732
7,764
+108.0
35.7
17,285
21,732
+25.7
100.0
Europe
Total Group
Ca
v
Guidance FY2008
33
ea
t: T
he
fin
an
cia
l
Projections for Beiersdorf Group (excl. acquisitions)
cri
si s
low
er s
Consumer
ƒ Sales growth + 8-9% *)
vi s
ib il
ity
Total Group
ƒ EBIT margin ≈ 13% **)
ƒ Sales growth > +8% *)
tesa
ƒ EBIT margin ≈ 12.5% **)
ƒ Profit after Tax margin ≈ 9% **)
ƒ Sales growth ≈ +5% *)
ƒ EBIT margin ≈ 10%
*) like-for-like
**) excluding special factors
!
34
Outlook 2009
Projections for Beiersdorf Group
Our innovation pipeline is filled …
Our business is running as planned
and in line with strategy…
Our country portfolio is balancing
sales and profits …
… but we think that in the light
of the current financial crisis it is
too early to speak about 2009.
We will provide our 2009 guidance on March 3rd
35
Achievements
Growth in Consumer more than double the market.
Sales growth according to plan - also in Germany.
Marketing spend reflects investments for growth.
EBIT margins improving despite adverse economic conditions.
Supply chain realignment fully on track.
Delivering on a successful strategy
36
How to contact Investor Relations
Beiersdorf website
www.Beiersdorf.com
IR-Hotline
Fon:
+49 (0) 40 4909 5000
Fax:
+49 (0) 40 4909 18 5000
email: [email protected]