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2011 – 2014 FINANCIAL UPDATE

2011 – 2014 FINANCIAL UPDATE. Mike Cazer January 2012. 2011 SUMMARY. 2011 SALES. 10.8. 9.6. Plan. 10.2. 9.0. 8.5. (in $Billions). 2008. 2009. 2010. 2011. Growth. 11%. 6%. 7%. 13%. Strong top line growth continued in 2011. 2011 SALES BY REGION. vs. Plan. vs. 2010.

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2011 – 2014 FINANCIAL UPDATE

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  1. 2011 – 2014 FINANCIAL UPDATE Mike CazerJanuary 2012

  2. 2011SUMMARY

  3. 2011 SALES 10.8 9.6 Plan 10.2 9.0 8.5 (in $Billions) 2008 2009 2010 2011 Growth 11% 6% 7% 13% Strong top line growth continued in 2011

  4. 2011 SALES BY REGION vs. Plan vs. 2010 2011 (in $Billions) Broad-based growth

  5. 2011 TOP 10 MARKET SALES 2011 Sales vs. 2010 2011 Sales vs. 2010 (in $Millions) 9 of top 10 Markets grow in 2011… led by China

  6. 2011 CATEGORY SALES MIX & MARGIN Other Home Care CMAM 7% 9% Personal Care 11% China ($447M) Nutrition 45% Durables 13% Beauty 15% • Small mix shift from Beauty towards Durables in 2011 Stable mix and margin results in 2011

  7. 2011 EARNINGS 1.8 1.6 Plan 1.6 1.3 1.2 (in $Billions) 2008 2009 2010 2011 Op Income % 14.2% 15.0% 16.5% 16.4% Earnings move higher on strong sales growth

  8. 2011 PERFORMANCE vs. PLAN 1,599 1,781 234 (32) (20) (in $Millions) Plan Markets Center ACE / Other 2011 • Greater China accounts for 80% of Market favorability Performance driven by top-line strength

  9. 2012PLAN

  10. 2012 PLANSALES 13.5 12.4 11.7 10.8 (in $Billions) 2011 2012 2013 2014 Growth 13% 8% 6% 9% Solid growth trend expected to continue

  11. 2012 SALES BY REGION vs. 2011 2012 (in $Billions) Balanced growth profile throughout the Enterprise

  12. 2012 TOP 10 MARKET SALES 2012 Sales vs. 2011 2012 Sales vs. 2011 (in $Millions) All top 10 Markets growing in 2012

  13. 2012 CATEGORY SALES MIX & MARGIN Other Home Care vs. 2011 Mix vs. 2011 % CMAM 5% 9% Personal Care 11% China ($447M) Nutrition 45% Durables 14% Beauty 16% • Artistry re-launch increases Beauty share… weighs on CMAM • China eSpring launch increases Durables share… CMAM rises Major initiatives shift sales mix

  14. 2012 PLAN EARNINGS 2.3 2.1 1.9 1.8 (in $Billions) 2011 2012 2013 2014 Op Income % 16.4% 16.4% 16.7% 16.9% Steady OI increase driven by top line growth

  15. 2012 PERFORMANCE vs. 2011 1,781 1,913 143 0 (11) (in $Millions) 2011 Markets Center ACE / Other 2012 • Higher volume/pricing drives incremental earnings • China weighs on OI growth from inflation and shop expenses Sustainable and profitable growth

  16. COST CATEGORIES: A BUSINESS VIEW

  17. 1 4 3 2 COST CATEGORIES Delivered Product Cost Our cost to make and deliver product COGS & Distribution Core Bonus Our business opportunity for distributors Core Bonus Go-to-Market Our IBO/consumer-facing investments SIP/NCA, Shop Ops, GSM, BSA, IT Adv/Trans, Ex Affairs Support Our costs to support the business All other general and administrative expense Cost categories provide a business view

  18. 2012 AMWAY PLAN Trend Note: Figures represent Alticor Consolidated less ACE Prudent allocation trends support growth story

  19. 2012 GO-TO-MARKET Trend Note: Figures represent Alticor Consolidated less ACE Focus on customer-facing initiatives

  20. 2012 MARKET HIGHLIGHTS % pts vs. 2011 % pts vs. 2011 Japan Europe 19.7% 28.3% 25.7% 25.9% 21.8% 19.5% 6.8% 7.8% 26.0% 18.5% 2012 2012 • Finding productivity savings to fund growth objectives • Delivering improved margins within LRBP window Effective steps to bolster long term COI improvement

  21. CAPITAL EXPENDITURES

  22. CAPITAL EXPENDITURES TREND 400 308 250 195 (in $Millions) 2009 2010 2011 2012 % of sales CapEx grows on large-scale strategic investments

  23. $400M 2012 CAPITAL EXPENDITURES / KEY PROJECTS Key Projects: Physical Presence • Manufacturing: $128M • Extraction/Concentration ($28M) • China expansion ($35M) • India facility ($21M) Other 19% China ($447M) Manufacturing 31% 12% • IT: $99M • ATLAS/MAGIC ($33M) • Global Web ($14M) Facilities 13% IT 25% • HQ Facilities: $50M • Thailand HQ ($16M) • Physical Presence: $48M • China ($29M) • SEA ($5M) Project slate supports planned growth objectives

  24. SUMMARY

  25. SUMMARY • 2011 Results • Sales: Continued strong top line growth • Earnings: Maintained solid margin • 2012 Plan • Sales: Top ten markets all poised for growth • Earnings: Higher on sales growth; OI margin maintained • Cost Categories • Business view highlights levers • Leverage productivity initiatives to lower delivered product and support costs… support GTM initiatives and deliver a higher COI • Capital Plan • Managing larger capital investment footprint within disciplined framework… value creation in focus Strong results… and the outlook is bright!

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