Upload
hamidou-leila
View
224
Download
1
Embed Size (px)
Citation preview
8/2/2019 Africa Webcast Slides Diageo - FINAL
1/30
Africa Webcast14 April 2011
8/2/2019 Africa Webcast Slides Diageo - FINAL
2/30
Nick BlazquezPresident, Diageo Africa
8/2/2019 Africa Webcast Slides Diageo - FINAL
3/30
Africas potential is based on favourabledemographics. . .
Source: McKinsey strategy review 2010.
2010 Sub-Saharan AfricaSouthEast Asia
North Africa andMiddle East
MiddleAsia-Oceania
IndiaNorth and Latin AmericaChina EU-Japan 2030
Populationgrowth, CAGR
6,905
Population growth by geography, millions of people8,306
444
117
126
270(19)
108
195
160
+1,401
0.9
3
2.1 1.9 1.4 1.0 (0.1)0.41.3 0.9
8/2/2019 Africa Webcast Slides Diageo - FINAL
4/30
. . .and promising GDP prospects. . .
4
* Forecast.Source: The Economist, January 2011.
2
3
4
5
6
1970s 1980s 1990s 2000s 2011-15*
GDP growth, unweighted annual average, %
Asiancountries
Africancountries
8/2/2019 Africa Webcast Slides Diageo - FINAL
5/30
. . .that translate into consumer opportunities
5Source: McKinsey strategy review 2010.
0
400
800
1,200
1,600
2000 2008 2020e
Africa private consumption, $bn
34
2418
29
32
29
3744
53
2000 2008 2020e
Share of households in each income
bracket, % millions of households163 196 244
Basicneeds
Discretionary
income
Basic needs ($2,000-$5,000 pa)Struggling ($5,000 pa)
4.9% p.a.
8/2/2019 Africa Webcast Slides Diageo - FINAL
6/30
Diageo has the widest geographic coveragein Africa
6Source: Market interviews; Euromonitor; Plato Logic; IWSR.
Total beer and spirits volume in Africa, 2009
South Africa
Nigeria
KenyaTanzania
Uganda
Cameroon
Ghana
Other
Angola
Ethiopia
DRC
Subsidiary
License brewing
Third party distribution
Diageo operating model
8/2/2019 Africa Webcast Slides Diageo - FINAL
7/30
Our operating models are fit for purpose
7
Subsidiary
Associate
License brewing
Third party distribution
Joint Venture withInternational Brewer
Joint Venture withInternational Brewer
Listed on localstock exchange
Fully ownedsubsidiary
Joint Venture withInternational Brewer
Diageo operating model
8/2/2019 Africa Webcast Slides Diageo - FINAL
8/30
We have a track record of delivering growth
8* Year ended June 30. **6 months ended 31 December 2010.
500
750
1,000
1,250
F06 F07 F08 F09 F10
Net sales*, m
Total 16
Spirits 13
Beer 18
5 Year
CAGR, %Net sales*
Marketing spend 10
Net sales 10
Volume 9
F11 H1
Organic,%**
5 Year OP CAGR 12
8/2/2019 Africa Webcast Slides Diageo - FINAL
9/30
Africa is growing in importance to Diageo
9Year ended 30 June.
Africa beer as % of Diageo beer
2
4
6
8
10
12
14
2006 2007 2008 2009 2010
Africa as % of Diageo net sales2006
29%
2010
41%
8/2/2019 Africa Webcast Slides Diageo - FINAL
10/30
Our Africa strategy is founded on 3 principles
10
Local business with globalstrengths
Consistent investment behindour brands
Beer and spirits a keydifferentiator
8/2/2019 Africa Webcast Slides Diageo - FINAL
11/30
Beer and spirits: A key differentiator
11
Diageo Africa net sales, %
Spirits, 25%
RTD, 6%
Guinness, 26%
Lager, 43%
6 months ended 31 December 2010.
8/2/2019 Africa Webcast Slides Diageo - FINAL
12/30
Beer and spirits: Diageos unique in its range
12
Lower Higher
Spirits
Beer
Price points
8/2/2019 Africa Webcast Slides Diageo - FINAL
13/30
Beer and spirits: Accelerating growth
13
Drives efficiencies and enhances pace
Improves routes to market
Improves capabilities
8/2/2019 Africa Webcast Slides Diageo - FINAL
14/30
Beer and spirits: South Africa example
14
http://www.esnell.co.za/home.php8/2/2019 Africa Webcast Slides Diageo - FINAL
15/30
Beer and spirits: Together winning share
15Year ended 30 June.Source: AC Nielsen National Off-trade, internal estimates.
Diageo share of spiritsin South Africa, % volume share
26
27
25
26 26
28
30
31
33
20
25
30
35
F02 F03 F04 F05 F06 F07 F08 F09 F10
1.82.0 2.0 2.0
2.2
2.5
3.5
4.1
5.2
0
2
4
6
F02 F03 F04 F05 F06 F07 F08 F09 F10
Windhoek and Heineken share of beerin South Africa, % volume share
8/2/2019 Africa Webcast Slides Diageo - FINAL
16/30
Consistent investment: Building sales capabilities
16
Platform for Growth must be in
our DNA
- Kenya
Its obvious that we have not even
started to scratch the surface in termsof being a distributor, I thank GuinnessNigeria for this opportunity
- Nigeria
For the first time I foresee a clear future in
partnership with Guinness, not just buyingand selling products- Cameroon
8/2/2019 Africa Webcast Slides Diageo - FINAL
17/30
Consistent investment: In innovation
17Year ended 30 June.
Net sales, m
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010
5 YearCAGR,
39%
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010
5 YearCAGR,
31%
5 YearCAGR,
21%
8/2/2019 Africa Webcast Slides Diageo - FINAL
18/30
Consistent investment: In marketing
18
Proven growth driver,high-growth geography
Integrated digitalmarketing campaigns
8/2/2019 Africa Webcast Slides Diageo - FINAL
19/30
Consistent investment: Building capacity
19
8/2/2019 Africa Webcast Slides Diageo - FINAL
20/30
Local business: Partnering with communities
20
300k Tonnes of grain 4 Million people with water
8/2/2019 Africa Webcast Slides Diageo - FINAL
21/30
Local business: Developing people
21
8/2/2019 Africa Webcast Slides Diageo - FINAL
22/30
East Africa: Business context
22
Clear leadership position
Rapidly developing spiritsmarket
Trading bloc benefits withsome offset of taxrationalisation
8/2/2019 Africa Webcast Slides Diageo - FINAL
23/30
East Africa: Growth drivers and opportunities
23
Actively managing corporateresponsibility agenda
Leveraging proven pan-regionalmarketing
Building our spirits distributionfootprint
8/2/2019 Africa Webcast Slides Diageo - FINAL
24/30
South Africa: Business context
24
Successful joint ventureoperating model
Gaining share versus
market leader
Full brand range in Africas
most developed spiritsmarket
8/2/2019 Africa Webcast Slides Diageo - FINAL
25/30
8/2/2019 Africa Webcast Slides Diageo - FINAL
26/30
Nigeria: Business context
26
Well-placed in a highlycompetitive market
Opportunity fuelled by scale
and economic growth
Brand range, route tomarket and capacity key tofurther growth and
profitability
8/2/2019 Africa Webcast Slides Diageo - FINAL
27/30
Nigeria: Growth drivers and opportunities
27
Investing in our manufacturingstrategy
Extending the reach of our routeto market
Expanding offering of beer andspirits
8/2/2019 Africa Webcast Slides Diageo - FINAL
28/30
Summary: Well-placed to deliver continued growth
28
Diageos management team has deep experience
in growing African businesses
Diageo has the right capabilities across allsales drivers
Diageos beer and spirits range is unique
Diageo is connected to communities
Diageo has scale in the biggest African markets
8/2/2019 Africa Webcast Slides Diageo - FINAL
29/30
29
For further information on Diageo, please visit the
Investors section of: diageo.com
The Investor Relations team can becontacted on:
UK +44 (0)20 8978 4267US +1 202 715 1110
or by email at: [email protected]
8/2/2019 Africa Webcast Slides Diageo - FINAL
30/30
Cautionary statement concerning forward-looking statements
This presentation contains forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts.In particular, forward-looking statements include all statements that express forecasts, expectations, plans, outlook and projections with respect to future matters, including trendsin results of operations, margins, growth rates, overall market trends, the impact of interest or exchange rates, the availability or cost of financing to Diageo, anticipated costsavings or synergies, the completion of Diageo's strategic transactions and restructuring programmes, anticipated tax rates, expected cash payments, outcomes of litigation,anticipated deficit reductions in relation to pension schemes and general economic conditions. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differmaterially from those expressed or implied by these forward-looking statements, including factors that are outside Diageo's control.
These factors include, but are not limited to: global and regional economic downturns; increased competitive product and pricing pressures and unanticipated actions by competitors that could impact Diageos market share, increase expenses and hinder
growth potential; the effects of Diageos strategic focus on premium drinks, the effects of business combinations, partnerships, acquisitions or disposals, existing or future, and the ability to
realise expected synergies and/or costs savings; Diageos ability to complete existing or future business combinations, restructuring programmes, acquisitions and disposals; legal and regulatory developments, including changes in regulations regarding production, product liability, distribution, importation, labelling, packaging, consumption or
advertising; changes in tax law, rates or requirements (including with respect to the impact of excise tax increases) or accounting standards; and changes in environmentallaws, health regulations and the laws governing labour and pensions;
developments in any litigation or other similar proceedings (including with tax, customs and other regulatory authorities) directed at the drinks and spirits industry generallyor at Diageo in particular, or the impact of a product recall or product liability claim on Diageos profitability or reputat ion;
developments in the Colombian litigation, Turkish customs litigation, SEC investigation, Korean customs litigation or any similar proceedings; changes in consumer preferences and tastes, demographic trends or perception about health related issues, or contamination, counterfeiting or other circumstances which
could harm the integrity or sales of Diageos brands; changes in the cost or supply of raw materials, labour, energy and/or water; changes in political or economic conditions in countries and markets in which Diageo operates, including changes in levels of consumer spending, failure of customer,
supplier and financial counterparties or imposition of import, investment or currency restrictions;
levels of marketing, promotional and innovation expenditure by Diageo and its competitors; renewal of supply, distribution, manufacturing or licence agreements (or related rights) and licenses on favourable terms when they expire; termination of existing distribution or licence manufacturing rights on agency brands; disruption to production facilities or business service centres, and systems change programmes, existing or future, and the ability to derive expected benefits from such
programmes; technological developments that may affect the distribution of products or impede Diageos ability to protect its intellectua l property rights; and changes in financial and equity markets, including significant interest rate and foreign currency exchange rate fluctuations and changes in the cost of capital, which may
reduce or eliminate Diageos access to or increase the cost of financing or which may affect Diageos financial results and m ovements to the value of Diageos pensionsfunds.
All oral and written forward-looking statements made on or after the date of this presentation and attributable to Diageo are expressly qualified in their entirety by the abovefactors and the Risk factors contained in the Annual Report on Form 20-F for the year ended 30 June 2010 filed with the US Securities and Exchange Commission (SEC). Anyforward-looking statements made by or on behalf of Diageo speak only as of the date they are made. Diageo does not undertake to update forward-looking statements to reflectany changes in Diageo's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should,however, consult any additional disclosures that Diageo may make in any documents which it publishes and/or files with the SEC. All readers, wherever located, should takenote of these disclosures.
This document includes names of Diageo's products, which constitute trademarks or trade names which Diageo owns, or which others own and license to Diageo for use. Allrights reserved. Diageo plc 2011.
This presentation also includes names and images of brands and products which constitute trademarks and trade names which are not owned by Diageo and Diageo herebyacknowledges that it will not gain any right, title or interest in such trademarks and trade names.
The information in this presentation does not constitute an offer to sell or an invitation to buy shares in Diageo plc or an invitation or inducement to engage in any otherinvestment activities.
This presentation includes information about Diageos target debt rating. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revisionor withdrawal at any time by the assigning rating organisation. Each rating should be evaluated independently of any other rating.
Past performance cannot be relied upon as a guide to future performance.
The contents of the companys website (www.diageo.com) should not be considered to form a part of or be incorporated into thi s presentation.