410 likes | 557 Vues
Institutional presentation Deutsche Bank Paris/ London, June 2012. . . Company’s background. Hypermarcas: Focus on high value added markets. Brazilian largest company in the health and well being markets ( P harma /HPC), with outstanding portfolio of businesses and brands.
E N D
Institutional presentationDeutsche Bank Paris/ London, June 2012 . .
Hypermarcas: Focusonhighvalueaddedmarkets Brazilian largest company in the health and well beingmarkets (Pharma/HPC), with outstanding portfolio of businesses and brands
Strong competitive position in attractive markets Market attractiveness • Well positioned to take advantage of Brazil’s consumption prospects High • Focus on profitable,high value added and growth markets Low Competitive position • Strong brands • Leading positions • Efficient operations • Strong distribution • Dynamic organization Low High
Focus on Health & Well Being markets High Attractiveness Consumption patterns • Aging of population • Unmatched needs • Untapped demand • Consumer search for better “life” • Health consciousness • Well-being • “Self-care” Development • Low levels of household penetration and consumption per capita • Development of new middle class • Economic development • Incomeper capita
Health & Well Being: highergrowththanothermarkets • Economic conditions will continue to favor the sector • Many business opportunities in several segment • Historical growth expected to continue in the next 5 years Health & Well Being * Pharmaceuticals x CT&T Source: IBGE, IMS and A.C. Nielsen
Low levels of consumption per capita 10x Source: World Health Statistics, WHO; IMS MIDAS; IMS Health* Only retail. It excludes government
Superior business portfolio: strong presence in consumer goods and pharmaceuticals Consumer Goods “Hybrid” Markets Pharmaceuticals
In consumer goods, the company is focused on HPC categories • Branded prescription • Branded generics (similars) • Traditional generics “Hybrid” Markets Consumer Goods Pharmaceuticals HPC “Hybrid” markets Pharma only • Beauty care • Personal care (Women/Men) • Infant care • Adult care • OTCs • Condoms • Nutritionals • Dermocosmetics 38% 35% 27% • % revenues
In HPC, the company has a strong position in attractive markets HPC EXAMPLE • Hypermarcas Focus: • Higher growthprospects • Higher profitability Share Relative Share Small Adult Diaper • 29% • 2,4x Size Nail polish • 31% • 1,1x Moisturizer • 42% • 1,8x Large Shaving Cream • 45% • 1,3x High Low • Household Penetration
Low penetration levels in Hypermarcas portfolio HPC Focus Source: Kantar, Consumer Book 2012/2011
Also, we have a relevant position in the attractive “hybrid” markets • Branded prescription • Branded generics (similars) • Traditional generics “Hybrid” Markets Consumer Goods Pharmaceuticals HPC “Hybrid” markets Pharma only • Beauty care • Personal care (Women/Men) • Infant care • Adult care • OTCs • Condoms • Nutritionals • Dermocosmetics 38% 35% 27% • % revenues
Leadership position in “Hybrid” segments Hybrid Greatattractiveness Very strong competition position • High entry barriers • High profitability • High growth potential • De-regulation • Increase in consumption • Channel mix Rank Share Relative Share* • OTC • #1 • 18% • 1,5x • Condom • #1 • 48% • 2,2x • Nutritional • #1 • 53% • 2,0x • Dermocosmetics • #3 • 18% • N/A Source: IMS/ A.C. Nielsen * Relatively to second largest player
In OTC, the company has an outstanding portfolio of traditional and established brands Hybrid Anti flu 1954 1958 1965 1958 1961 Analgesics 1933 1939 1958 1993 1989 Stomach ache related 1956 1965 1966 1970 1974 Other Categories 1904 1940 1956 1957 1967
Hypermarcas OTC Rank Hybrid Total Ex-Global Players Global • #19 • #3 Latam • #2 • #1 Source: Nicholas Hall
In the Pharma only market, we are focused on branded products and generics • Branded prescription • Branded generics (similars) • Traditional generics “Hybrid” Markets Consumer Goods Pharmaceuticals HPC “Hybrid” markets Pharma only • Beauty care • Personal care (Women/Men) • Infant care • Adult care • OTCs • Condoms • Nutritionals • Dermocosmetics 38% 35% 27% • % revenues
Focus on higher growth markets in Pharma Pharma • 100% Hypermarcas focus on Pharma only markets • Originals • BrandedProducts • Generics Source: PMB MAT ABRIL 2012; PPP = Pharmacy Purchase Price do PMB
Strong competitive position in both Generics and Branded Products Pharma Generics Branded Prescription • #1 Branded Generics (Similars): 20% market share • #3 Generics (fastest growing): 10% vol; 7,5% value • #2 Domestic (close up) • ~ 150.000 physicians visits/month • Strong brand portfolio • Sales ~ R$500M Source: IMS
Efficient Operations Modernandupdatedplants Largeandsizableproductioncapacity Strategic located SAP infrastructure
Sites Industrial Distribution Anápolis - GO Anápolis - GO Pharma SenadorCanedo - GO Goiânia - GO HPC
Distribution: Direct sales to mid-large retailers (1/2) Industry Distributors Retailers (mid to large) Consumer • Heavy investments in POS activity • Large merchandise teams • Retailers cooperation • Category management Sell in + merchandise (40-45% sales) Focus on Trade Marketing
Distribution: Access to Mom&Pops through distributors (2/2) Merchandise + “Pull orders” Industry Distributors Retailers (Mom & Pops) Consumer • Heavy investments in client’s sales reps incentives • “Semi-exclusive” relationships • Direct merchandise at Mom & Pops • O.L. operations: “pull” orders from retailers to distributors • Sell • Credit • Delivery Sell in (55-60% Sales) Partnership Relationship
Dynamic organization • Versatile and talented management • Pragmatic and fast decision making • Local expertise and network • Proven track record • “Ownership” culture
Company’s growth approach OrganicGrowth SynergisticAcquisitions Profitable Growth Low CostOperatingPlatform
Outstanding growth history Gross revenues Growth: 52x CAGR: 55% p.a. Source: Hypermarcas Financial Statements
Development phases Start-up Industry Consolidation Profitable Sustainable Growth 2002-2006 2007-2011 2012-2017
High organic growth rate at start-up phase Start-up Industry Consolidation Profitable Sustainable Growth • Sales from R$80 to R$510MM (6x) • Organic growth in excess of 30% p.a. • Highlight: • Well executed growth strategy in key markets 2002-2006 2007-2011 2012-2017
Very intense M&A activity during industry consolidation phase Start-up Industry Consolidation Profitable Sustainable Growth • Sales from R$510 MM to R$4,2 B (8X) • Low double digit organic growth • Highlights: • 21 companies acquired • Consistent focus on pharma/HPC targets • “Outstanding” brands & businesses (“Jewels of Crown”) • Synergistic and complementary deals • Attractive valuations 2002-2006 2007-2011 2012-2017
M&Atrackrecord ConsistentfocusonPharmaand HPC acquisitions #21 Acquisitions In 4 years 2010: NewAcquisitions round Pharma Public Offer: Fast growth Sanofi IPO: Expansion in Health & WellBeing OTC andBeauty & PersonalCare HPC / 2010 2011 2007 2008 2009
New focus on balanced growth Start-up Industry Consolidation Profitable Sustainable Growth • Target: • Growth above market • Focus on operating cash flow generation • BP highlights: • Finalize implementation of synergies • Improve execution capabilities • Explore product market/brand growth • Develop a high performance organization 2002-2006 2007-2011 2012-2017
Comprehensive business plan to achieve profitable sustainable growth Finalize implementation of synergies Improve “execution capabilities” Explore product market brand growth • Consolidation of Operations • Creation of shared service center • Implementation of highIRR investments Develophighperformingorganization
Consolidation of operations 2010 2011 2012 2013 2014 • Project Magnum (Pharma) • Project Matrix I (Cosmetics) • Project Matrix II (Diapers) • Sharedservices 2010
Comprehensive business plan to achieve profitable sustainable growth Finalize implementation of synergies Improve “execution capabilities” Explore product market brand growth • Consolidation of Operations • Creation of shared service center • Implementation of highIRR investments • Reorganize to improve focus • Restructure sales and merchandise teams • Improve productivity (across the board) • Core process redesign Develophighperformingorganization
Organization Model • Shared Service Center (backoffice) • Corporate Center • P&L ownership • Strategic planning • Operation planning • Sales • Marketing • Production • Supply chain • R&D • PharmaSBU • Sales • Marketing • Production • Supply chain • R&D • ConsumerSBU • Treasury • Corporate Finance • Legal Affairs • Business development • Corporate HR • Auditing • Financial Planning • IT • Purchasing • Finance backoffice • Accounting • Administrative • Operational HR
Sales & merchandise team structure Pharma SBU Consumer SBU • New merchandise team • New generics team • Restructured physicians team • Similars team • New merchandise team(Jul 12) • Restructured sales team (Dec 12) Restructuring to befinalizedby 2012
Comprehensive business plan to achieve profitable sustainable growth Finalize implementation of synergies Improve “execution capabilities” Explore product market brand growth • Consolidation of Operations • Creation of shared service center • Implementation of highIRR investments • Reorganize to improve focus • Restructure sales and merchandise teams • Improve productivity (across the board) • Core process redesign • Gain distribution • Increase “targeted” marketing budget • Innovation pipeline for brands • Category managementat POS Develophighperformingorganization
High performing organization • Ownership • Accountability • Focus on client and consumer • Search for excellence • Meritocracy “Leadership is the Art of Balancing the Tension between Stability and Change.” (Kaplan & Norton) *Kaplan & Norton
Demographic bonus in Brazil PopulationBonus Age 2003 2014 Source: IBGE
Ownership and Listings • Sao Paulo Stock Exchange: HYPE3 • Indexes: • ADR (HYPMY; Pink sheet): • 26,4 MM outstanding shares • Average daily trade volume: • 5,1 MM shares • R$ 59 MM • 627,4 MM Shares Ownership Structure Listings Source: Bovespa, Hypermarcas