Beiersdorf Focus on Skin Care. Closer to Markets

Beiersdorf – Focus on Skin Care. Closer to Markets.

Commerzbank German Investment Seminar

New York, January 10-11, 2012

Disclaimer

Commerzbank German Investment Seminar, New York

January 10-11, 2012 | 2

Some of the statements made in this presentation contain forward-

looking information that involve 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, as well

as uncertainties and contingencies that are subject to change. Actual

results can 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.

Founded in 1882.

Group sales 2010: €5,571 million*.

19,128 employees.

Beiersdorf is listed in the DAX.

NIVEA is the biggest skin care brand

worldwide.

Eucerin is a leading dermo-cosmetic brand.

La Prairie is a brand icon in the selective

anti-aging skin care market.

Beiersdorf at a Glance


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* restated for trade allowance reclassification

Global Iconic Brands in our Distribution Channels

Pharmacy Mass Selective


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Focus on skin care

Regional strategy within global framework.

Profit responsibility for each regional board member.

Regional product adaptations.

Closer to markets

Focus on core brands & categories.

Strenghtening NIVEA brand equity with new platform.

Streamlining of portfolio with focus on skin care.

Our Strategy


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Feb 2010:

Focus on Skin Care. Closer to Markets

Jul 2010:

New Board Structure

Dec 2010:

Refocusing the Business

May 2011:

New NIVEA Platform

Sep 2011:

Finalization of Operating Model

Dec 2011:

Final Phase:

Realignment of

Structures

The

World’s Best

Skin Care

Company

2010 and 2011 Were Transition Years


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Generation Change – New CEO Stefan Heidenreich

New CEO will start in April 2012 to drive growth and profitability further.

Stefan F. Heidenreich joined the Executive

Board on January 1, 2012.

Stefan F. Heidenreich will take over as CEO

from Thomas-B. Quaas following the AGM in

April 2012.

Thomas-B. Quaas shall switch to the

supervisory board at the AGM.

The strategy “Focus on Skin Care. Closer to

Markets” will be continued and enhanced.


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Focus on Skin Care


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Skin Care is Our Core Competence

More than 125 years of expertise in skin care.

Well developed brand equity.

NIVEA has always stood for trust, care and closeness.

Skin care is our

heritage…

...our present…

.. and our future

NIVEA has 150 No. 1 positions worldwide (FY 2010).

Beiersdorf is undisputed expert in skin care.

Skin care* will account for 45% of the global market growth in cosmetics.

Users are more brand loyal and less price driven in the skin care market.

Skin care is of high interest for consumers.

Skin care has an above average profit margin.

* Body, Hand and Face Care


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We will further build our market leadership in skin and personal care.

NIVEA and Labello have 166 #1 Positions WorldwideCategory

Country

Body &

HandFace Lip* Sun Men´s Deo Shower Bath Baby Hair Care

Hair

Styling

Europe West

Austria 1 1 1 1 1 1 1 5 2

Belgium 1 1 1 1 2 1 2 1 3 5 2

France 1 1 1 2 2 3 3 8 7

Germany 1 1 1 1 1 1 2 3 5 4

Greece 1 2 1 2 1 2 8

Ireland 1 2

Italy 1 1 1 1 1 2 3 6 4 5 4

Netherlands 1 1 1 1 1 2 2 4 6

Portugal 1 1 1 1 1 3

Spain 1 3 2 1 5

Switzerland 1 1 1 1 1 1 1 2 2 3 2

Turkey 2 1 1 1

United Kingdom 1 4 2 1 2 4 8

Europe North

Denmark 1 2 1 2 2

Norway 2 2 2 2 8

Sweden 1 1 2 1 2 2

Europe East

Bulgaria 1 3 1 1 1 4

Croatia 1 1 1 1 1 3

Czech Rep. 1 1 1 2 1 5 3

Estonia 1 3 2 1 7

Hungary 1 3 1 2 1 3 8 4 8 3

Latvia 1 3 2 1 7

Lithuania 1 1 1 1 5

Poland 1 2 1 5 1 1 1 1 5 3

Romania 1 1 2 1 1 4 2

Russia 2 6 1 2 2 8 7

Serbia 1 1 1 1 1 2

Slovak Rep. 1 2 1 1 1 4 3

Slovenia 1 1 1 1 2 4

Ukraine 2 5 3 2 2 9 4

* Depending on market, NIVEA Lip Care or Labello. Labello had 16 #1 positions in 2009 and 2010. Source: AC Nielsen / IRI, Status as of December 31, 2010


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Portfolio Pruning & Category Exits

Product pruning reduces complexity and improves growth opportunities.

We have completed the cross-category product pruning.

Thousands of SKUs (19% of the European assortment) have

been removed.

Without slow-moving SKUs, the quality of our sales growth has

improved.

In addition Make-Up is completely out of the portfolio and Hair

Care/Styling is exited in selected countries.

The streamlined portfolio has better profitability and will enable

faster growth.

SKU = Stock Keeping Unit


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New NIVEA Platform

NIVEA – Comprehensive 360° Presence


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Examples of the NIVEA Campaign

Germany

China South Korea

USA


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NIVEA 100 Year Anniversary Pop-Up Store in Grand Central Station in New York City.

Closer to Markets: Making a Difference in the USA

A clear and focused skin care strategy has resulted in

continued strong sales growth for our US affiliate.

Within our categories, Beiersdorf remains one of the

fastest growing skin care companies in the USA among

top competitors.

Since deployment of US strategy NIVEA has increased

penetration nearly five-fold.


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9.9%

CAGR on

focus brands

Growing nearly

3X our closest

category

competitor

2007 2011


Beiersdorf P&G Unilever L„Oreal J&J KAO ColgateSource: Nielsen Household Panel


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Beiersdorf has received multiple supplier of the

year award recognitions.

Industry recognitions and

product awards

Recognition from our top US customers

and retail partners

Award recognition among our most influential

US skin and beauty publications.



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Final Phase of the Strategy Implementation

This will strengthen our future profitability and our competitiveness.

Strengthening the regional focus through realignment of corporate structures.

Improvements to structures and processes offer potential cost savings of €90 million

per year as from 2014 (full effect).

Up to 1,000 employees may be affected worldwide.

Extraordinary one-time expenses of approximately €125 million.

Realignment of the business in China entails write-downs of intangible assets of

approximately €140 million.


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Focus on skin care

Dedicated regional board members.

Finalized and aligned operating model.

Designing the to-be organization.

Implementation of the to-be organization.

Closer to markets

Focus on core brands & categories.

Launch of NIVEA platform with 100-year campaign.

Streamlining of portfolio with focus on skin care.

Strategy Going According to Plan


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Sales Earnings Before Interest and Taxes

11.7% 12.4% 11.7% 10.2% 11.3%

EBIT marginGrowth (organic) – Group

(in mill. €)

+7.3% +9.1% +7.5% -0.7% +3.1%

EBIT 2006 – 2008 excluding special factors due to the realignment of the Consumer Supply Chain and divestments.

EBIT 2010 excluding special factors due to measures to implement the Consumer Business Strategy 2015.

597

684 696

587

699

2006 2007 2008 2009 2010

5,1205,507

5,9715,748

6,194

2006 2007 2008 2009 2010

Sales and EBIT Development – Group


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(5,571*)

(12.8% *)

* 2010 Sales and EBIT margin restated for trade allowance reclassification.

Key Figures – Group

* Excluding special factors due to the implementation of the Consumer Business Strategy 2015.

Jan. – Sept. 2010

Jan. – Sept. 2011

Changenominal / like-for-like

mill. € mill. € in %

Sales 4,228 4,275 +1.1 / +2.1

EBIT 552 491

Profit after Tax 353 336

Earnings per Share in € 1.53 1.45

EBIT * 552 492

Profit after Tax * 353 333

EBIT Margin * 13.1% 11.5%

Profit after Tax Margin * 8.4% 7.8%

Earnings per Share in € * 1.53 1.44

(restated for trade allowance reclassification)


January 10-11, 2012 | 22

Guidance 2011

* Including additional marketing investment, excluding special factors.

Consumer

Consolidate sales and maintain level of

2010.

EBIT margin level 10-11%.*

tesa

Sales growth 6–7%.

EBIT margin clearly above 11%.

Total Group

Slight sales growth vs. 2010.

EBIT margin 10-11%.*

PAT margin 7-8%.*

Sales development on a like-for-like basis

Profit development on an operative basis

(restated for reclassification, impact on EBIT margin approx. 120bps)


January 10-11, 2012 | 23

How to Contact Investor Relations

Beiersdorf Website

www.Beiersdorf.com

IR-Hotline

Tel: +49 (0) 40 4909 5000

Fax: +49 (0) 40 4909 18 5000

Email: [email protected]


January 10-11, 2012 | 24

Documents

Beiersdorf Focus on Skin Care. Closer to Markets