We Value Creation
2
1 Category value creation overview (05-08): WE only TBR = 7% Value creation in Euro¹ = €0.8bn Avg change in value share p.a. = -.2% Avg change in TM ex RDIs p.a. = +.1% Overall 2006 and 2007 lost TM and regained in 2008. 2008 was +200 bps in margin (+100 bps in GM and +100 in lower A&P) Ex VS WE TBR 06-08 was 9%. Key country losses • France with negative margin and share in all three years • UK with negative margin and share in last 2 years – already improved in 2009 Key country gains • Spain with 14% TBR due to share gains and margin improvements ) Calculated in constant money D rivers ofValue C reation in Euro m illion 32 793 825 VC from term inal value VC from cash flow Total VC P hasing ofValue C reation in Euro m illion -135 209 751 825 Yr2006 Yr2007 Yr2008 Total VC
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Transcript of We Value Creation
1
Category value creation overview (05-08): WE onlyTBR = 7%Value creation in Euro¹ = €0.8bnAvg change in value share p.a.
= -.2%Avg change in TM ex RDIs p.a.
= +.1%
Overall 2006 and 2007 lost TM and regained in 2008.
2008 was +200 bps in margin (+100 bps in GM and +100 in lower A&P)
Ex VS WE TBR 06-08 was 9%.
Key country losses• France with negative margin and share in all three years• UK with negative margin and share in last 2 years – already improved in 2009
Key country gains• Spain with 14% TBR due to share gains and margin improvements
1) Calculated in constant money
Drivers of Value Creation in Euro million
32
793 825
VC from terminalvalue
VC from cash flow Total VC
Phasing of Value Creation in Euro million
-135209
751 825
Yr 2006 Yr 2007 Yr 2008 Total VC
2
Priority activities in light of VC insights: WE only
Value Driver Key Actions 2010-2012 Timingand Geography
Profitable Growth Ahead of Market(share growth at current profitability)
Continue next generation Branded and Unbranded GOM to grow the market and our brands
Turnaround HH and restore it as growth engine
Continue FG momentum (Roots 3)
WE (2008-12)
WE (2009-10)
WE (2009-12)
Improved Profitability(increase in PBI margin)
Increase margins through lower commodity costs
Fix Margin Bleeders (FR,UK) Europe Simplification (Rubic)
and Restructuring Drive SCMM (Margin
Improvement)
Global (2009)
FR/UK (2009-10) Europe (2007-10)
Global (2011+)Asset Efficiency Europe Simplification (Rubic)
Eur Restructuring Eur Restructuring (Pearl) NOT
YET APPROVED
Europe (2007-10) Europe (2008-10) Europe (2010-11)
