For internal use only
Growth Against the Odds
October 2013 GMA/FMI Conference
BCG document 1
BCG document 2
Growth drives value
Sources of TSR, top-quartile S&P 500
0
10
20
30
40Change in annual TSR (%)
1990-2009
Revenue growth
Margin Free cash flow
10 years
74%
5 years
58%
3 years
50%
1 year
29%
Multiple
BCG document 3
Improbable growth
5Y revenue growth (%)
5Y TSR (%)
–20%
0%
20%
40%
–20% 0% 20% 40%
No growth
Bad growth
Good growth
BCG document 4
Tough odds for large CPG players
62.0 61.9 61.4 60.6
8.1 8.1 8.2 8.6
20
0
100
80
60
40
Midsize
Large
12.2
2009
$664B
17.8
12.1
$677B
2010
12.4
18.0
$703B
2011
12.7
18.1
$722B
2012
Extra small
Small
17.8
Change in share '09-'12
+.5 pt
+.6 pt
+.3 pt
-1.4 pt
$ sales % of total
BCG document 5
In search of 'uphill growers'
• Previously stagnant
• Growth turnaround
• Sustained growth
• Created value
BCG document 6
Porsche
BCG document 7
Earning the "right to grow"
Porsche
1992
BCG document 8
Porsche’s growth path
Maximize the core
Expand into adjacencies
Explore new frontiers
1 year
2-4
years
5+
years
911
Boxster
Cayenne
Panamera
918 Spyder hybrid
BCG document 9
Breakout, sustained, profitable growth
Consistent growth Incremental launches
0
100
200
300
400
500
600
700
1990 1995 2000 2005 2010
Revenue - indexed
7
1 2
19
0
5
10
15
20
(%)
TSR 90-08
Cash
flow
Multiple Margin Rev
11
0
20
40
60
80
100
120
New vehicle sales ('000s)
12
10
08
06
04
02
00
98
96
94
92
90
Source: Global advantage database, BCG analysis, Porsche annual reports
Growth-driven value
911
Boxster
Cayenne
Panamera
924/944/968
Porsche
Auto and comps
BCG document 10
Starting position matters
Competitive premium
Competitive stability
Low
Low
High
High
Stable low-premium
Turbulent high-premium
Stable high-premium
Turbulent low-premium
% o
f com
pani
es
48% %
of c
ompa
nies
83%
17% %
of c
ompa
nies
66%
% o
f com
pani
es
BCG document 11
Competitive premium
Competitive stability
Low
Low
High
High
Stable low-premium
Turbulent high-premium
Stable high-premium
Turbulent low-premium
Starting position matters
BCG document 12
Lessons from breakout growers
Stable low-premium
Turbulent high-
premium
Stable high-
premium
Turbulent low-
premium
• Reinvest in core and explore adjacencies
• Build a "bet portfolio" • Move quickly: kill or scale up
• Seek near
adjacencies • Maintain
core • Transplant
globally
Maintain/expand margin while growing
• Migrate
core: new frontiers
• Monetize poor portfolio
• Prioritize domestic
BCG document 13
1. Clarify your aspiration
BCG document 14
1. Clarify your aspiration
2. Know your advantage
BCG document 15
1. Clarify your aspiration 2. Know your advantage 3. Widen your perspective
BCG document 16
Wider field of vision
Where to play
Commercial initiatives
Maximize the core
Expand into adjacencies
Explore new frontiers
Organic innovation
M&A/ partnership
Business model
innovation
How to win
BCG document 17
1. Clarify your aspiration
2. Know your advantage 3. widen your perspective
4. Force tough choices
BCG document 18
1. Clarify the aspiration 2. Know your advantage 3. Widen your perspective 4. Force tough choices 5. Fund the journey
BCG document 19
1. Clarify the aspiration
2. Know your advantage 3. Widen your perspective
4. Force tough choices 5. Fund the journey
6. Align vision and action
BCG document 20
Integration of vision, choices, action
Purpose
Vision
Strategic choices
Initiatives
Enablers
Goals and metrics
Thank you
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