Rb Cfa Presentation

In a changing environment companies frequently struggle due to…. in the words of Donald Sull active inertia. Strategic Frames become blinders, established processes routines, relationships shackles, and values dogmas. In 2011 RB found itself in a changing environment, like for like growth had declined significantly to 3%, from 10% in 2007, with growth in developing markets stagnating. But, a new CEO, bringing a new vison, and the above values, allowed RB to avoid stagnation. A sense of urgency… new innovations…. successful partnerships in new markets…. And ownership, allowed RB to transform itself from a company predominantly focusing on developing markets and increasingly Pharmaceuticals, to one specializing in Health, Hygiene, and Home products, with a presence in (CLICK FOR NEXT SLIDE) over 180 countries. RB has thus far remained an organically growing company.

Briefly, I want to mention that RB has a significantly fractional ownership structure, with over 50% of shares owned by investment advisory firms, and no single shareholder retaining more than 11% of shares. (CLICK FOR NEXT SLIDE)

Moving on, in 2012 RB’s new CEO embraced a new strategy resting on four pillars: Margins…. Power Brands….. Power Markets….. and Organisation. The aim of this strategy is to stimulate growth through a virtuous cycle. Higher margin brands in growing categories, and markets where revenue generation and ability to capture market share are highest, (NEED A PAUSE HERE) are promoted, whilst strict cost control is exercised (CLICK FOR NEXT SLIDE).

supply chain and non-value-adding product costs are minimized (project fuel). Furthermore, fixed costs are cut through division consolidations - tackling duplication, inefficiency and waste (forecast £100-£150 million annual savings by 2017). Meanwhile, brand equity investments are ring fenced, thus stimulating category growth further… and reigniting the cycle.

With this in mind, we begin to understand RB’s continued shift towards...