Beruflich Dokumente
Kultur Dokumente
Bethany Quam
Group President,
Europe & Australia
62
Europe & Australia Segment at a Glance
PLATFORM CONTRIBUTION
(Fiscal 2018 Net Sales by Platform)
• F18 Net Sales: $2.0 Billion
Growth
Accelerate
Platforms
63
Emerging Company in a Developed Market
HOUSEHOLD PENETRATION GEOGRAPHIC FOOTPRINT
(Europe & Australia Household Penetration %) (General Mills Europe & Australia F18 Sales by Geography)
99%
87%
75%
62% All
49% Other
29%
16% 22%
France, UK, &
Australia
Yogurt Ice Cream Snack Bars Mexican
Source: Nielsen/IRI latest 52 weeks through May 2018; current General Mills Markets 64
UPDATE ex. $1Billion
65
Drivers of Topline Growth
INTEGRATED MARKETING INNOVATION EXPANDING
CAMPAIGNS AVAILABILITY
66
Europe & Australia Fiscal 2019 Priorities
67
COMPETE EFFECTIVELY IN YOGURT
68
Competing More Effectively in F18
-HSD
United Kingdom
• Leader in Kids Segment
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
• Focused Portfolio F17 F17 F17 F17 F18 F18 F18 F18
• 7% Market Share
Source: IRI L52 Weeks through May 2018 Note: Net sales adjusted for foreign exchange and period differences. 69
Drive Our Core 7 Yogurt Brands
71
Innovate in Growing Yogurt Segments
72
ACCELERATE GROWTH IN MEXICAN
73
Category Penetration Opportunity
81%
Tortillas
& Carriers 49%
Ingredients
U.S Europe & Australia
& Sides Open to Mexican Buying Mexican
75
Expand in Growing Mexican Segments
76
ACCELERATE GROWTH IN ICE CREAM
77
Growing At Double The Category Rate
HÄAGEN-DAZS RETAIL SALES
(EUROPE & AUSTRALIA, $ IN MILLIONS)
MiniCups
Stickbars
F16 F18
Source: Nielsen 78
Launching Extraordinary Innovation
79
Activating Across Europe & Australia
80
Expanding Distribution
ITALY
81
ACCELERATE GROWTH IN SNACK BARS
82
Tremendous Snack Bar Growth Momentum
NATURE VALLEY AND FIBRE ONE
RETAIL SALES
(EUROPE & AUSTRALIA, $ IN MILLIONS)
+30% CGR
F16 F18
Source: Nielsen 83
Significant Increase in Snack Bars
Brand Investment in F19
84
Accelerate Consumer First Innovation
DRAFT PROVEN BUILD NEW
WINNERS OCCASIONS
85
Deliver Margin Expansion in F19
86
Europe & Australia Summary
87
GENERAL MILLS
FISCAL 2019 INVESTOR DAY
ASIA & LATIN AMERICA
Christina Law
Group President,
Asia & Latin America
88
Asia & Latin America Segment
OVER
150 6B 80% $1.7B
COUNTRIES PEOPLE OF WORLD’S IN NET SALES
POPULATION
89
Asia & Latin America Fiscal 2019 Priorities
90
Accelerate Häagen-Dazs
Across Asia & Latin America
ICE CREAM CATEGORY RETAIL SALES
IN ASIA & LATIN AMERICA
($ in Billions)
• Projected Category Growth of +7% Over
CGR = +6% Next 5 Years
$31
• Häagen-Dazs ~50% of Asia Net Sales
$23 • F18 Retail Sales +MSD in F18; +DD in Q4
• Investing in F19:
Extraordinary Innovation
Unified Consumer Activation Plan
Aggressive Channel Development
2012 2017
92
Accelerate Häagen-Dazs: “One Asia” Activation
#1 Share Positions
Power of Scale
93
HÄAGEN-DAZS ASIA PLANS
94
Accelerate Häagen-Dazs: Channel Development
EXPAND DISTRIBUTION GROW E-COMMERCE SHOP REFRESH
Significant Freezer Investment Joint Business Plan with Alibaba Refreshing More Than 50 Shops
to Drive Retail Distribution F18 E-commerce Growth +30%
95
Accelerate Snacking Across Asia & Latin America
PORTFOLIO EXPANSION GLOBAL IDEA SHARING GROW DISTRIBUTION
F18: Distribution in 100M+ New Stores Launched in Middle East 100% Digital Campaign
F19 Target: 130M+ New Stores Expanding to Latin America Leveraging Global Learnings
96
Compete Effectively on Key Regional Businesses
97
Actions to Drive Margin Expansion
in Fiscal 2019 and Beyond
98
Asia & Latin America Summary
99
GENERAL MILLS
FISCAL 2019 INVESTOR DAY
PET SEGMENT
Billy Bishop
Group President,
Pet Segment
100
It All Started with Our Family Dog Blue
The Great Disconnect Led Us to
Develop Blue Buffalo to Honor Him
The disconnect between pet parents’ expectations and legacy brands led us to
develop the BLUE line of pet foods and bring transparency to the industry
103
A Strong and Growing Position in a Great Category
A STRONG AND
...IN A GREAT CATEGORY… ...WITH PLENTY OF UPSIDE
GROWING POSITION…
F18 Net Sales: $1.3 Billion Humanization of Pets has Led 2017 U.S. Pet Food Retail Sales
to Premiumization, Driving
#1 Pet Food Brand in Pet LSD Category Growth Blue Buffalo: 7 %
Specialty Channels1
Large CPG Category with Low
#1 Pet Food Brand in Private Label Penetration
E-commerce2
Subscription-type Purchasing
Encouraging Early Success in Pattern Due to Low Rate of
Food, Drug, & Mass (FDM) Switching
Channels
High Lifetime Value
105
Blue Buffalo Fiscal 2019 Priorities
BLUE DISTRIBUTION
(BLUE ACV % Distribution in U.S. FDM)
30%
24%
12%
10.1%
9.4%
7.0%
6.2% 5.8% 6.0%
Launched in May 2018
4.8%
4.3% 4.2%
2.5%
1.7% 1.6% 1.6%
A B C D E F G H I J K L Total
Source: Nielsen FDM accounts excluding rawhide, chews, and RX sold in-store
Latest 4 weeks ending 06/16/2018 108
F19 FDM Go-to-Market Plan
DOMINATE IN-STORE GENERATE TRIAL AND SERVICE THE PLAN
CONVERSION
• Overhead Signage • Education & Engagement • Inventory in the Right Place
• Leverage Demo and Mobile Marketing
• Shippers teams • On-time Delivery
• Shelf Talkers • Innovation
• Tailored to support growth across
• Clip-strips channels
• End-caps • Brand Communication
• Highly effective and efficient delivering
5 Billion impressions
109
Maximize E-commerce Growth
Building Brand Awareness with Pet Parents
has Generated High Online Velocities
• Premium Brand Presence and
Placements On Site
• Advantaged Product Display
• E-retailer Ad Features
• Best-in-class Content
Creation
110
Continue to Support Pet Specialty Partners
• Exclusive Innovation
• Continued Pet Detective
Support
• Media Investment on
Pet Specialty Exclusive
Product Lines
111
Additional F19 Innovation
112
Hybrid Manufacturing Strategy
Provides Us the Best of Both Worlds
113
Leverage General Mills Capabilities to Create Value
114
Blue Buffalo Summary
• Leading the Transformation of U.S. Pet Food
• Strong F19 Plans in FDM, E-commerce, and
Pet Specialty
Targeting Double-digit Top and Bottom Line Growth
in F19*
• Leveraging General Mills Capabilities to Create Value
• Excited About the Future as Part of the
General Mills Family
*F19 operating profit growth target excludes impact of purchase accounting charges 115
GENERAL MILLS
FISCAL 2019 INVESTOR DAY
JOINT VENTURES &
FINANCIAL SUMMARY
Don Mulligan
Chief Financial Officer
116
Joint Ventures
CEREAL PARTNERS WORLDWIDE HÄAGEN-DAZS JAPAN
• Core Innovation and Renovation • Launching New Mini Cups and Stick Bars
• Portfolio Expansion in India • Actions to Offset Commodity Inflation
118
Four Levers to Drive Shareholder Returns
Long-term
Target:
+LSD +MSD ≥ 95% ≥ 90%
Organic Sales* Adj. Operating Profit* Adj. EAT to FCF* of FCF*
F15 F18
121
Investing to Accelerate Growth
in Fiscal 2019 and Beyond
KEY CAPABILITIES ACCELERATE PLATFORMS CAPACITY & EFFICIENCY
122
Margin Expectations for Fiscal 2019
FAVORABLE UNFAVORABLE
*Non-GAAP measures.
F19 targets include addition of Blue Buffalo. 123
Delivering Working Capital Improvement
($ in Billions)
49
Top Quartile
0
GIS
-35
Source: CapIQ, peer fiscal 2018/fiscal 2017/calendar year 2017.
Industry Peer Group – see 2017 proxy for full list.
125
Free Cash Flow Performance
(3-Year Rolling, $ in Billions)
$6.2 $6.3
$5.9 $6.0
$5.7
115% 115%
$5.3 108% 108%
101% 103%
$1.96 666
Dividends Share
586
Repurchases
$1.32
CapEx
129
Fiscal 2019 Plan Assumptions
Our fiscal 2019 outlook for organic net sales growth and constant-currency adjusted operating profit and adjusted diluted EPS
are non-GAAP financial measures that exclude, or have otherwise been adjusted for, items impacting comparability, including the
effect of foreign currency exchange rate fluctuations, restructuring charges and project-related costs, acquisition transaction and
integration costs and mark-to-market effects. Our fiscal 2019 outlook for organic net sales growth also excludes the effect of
acquisitions and divestitures. We are not able to reconcile these forward-looking non-GAAP financial measures to their most
directly comparable forward-looking GAAP financial measures without unreasonable efforts because we are unable to predict
with a reasonable degree of certainty the actual impact of changes in foreign currency exchange rates and commodity prices or
the timing of acquisitions, divestitures and restructuring actions throughout fiscal 2019. The unavailable information could have
a significant impact on our fiscal 2019 GAAP financial results.
For fiscal 2019, we currently expect: foreign currency exchange rates (based on blend of forward and forecasted rates and hedge
positions), acquisitions, and divestitures to increase net sales growth by high single digits; foreign currency exchange rates to
have an immaterial impact on adjusted operating profit and adjusted diluted EPS growth; and total restructuring charges and
project-related costs related to actions previously announced to total approximately $13 million.
132
Reconciliation of Fiscal 2018
Adjusted Operating Profit
(Fiscal Year)
Full Year
2018
133
Reconciliation of Fiscal 2018 Adjusted Diluted EPS
(Fiscal Year)
Full Year
Per Share Data 2018
Diluted earnings per share, as reported $ 3.64
Provisional net tax benefit (0.89)
Tax items 0.07
Mark-to-market effects* (0.04)
Acquisition transaction and integration costs* 0.10
Restructuring charges* 0.11
Project-related costs* 0.01
Intangible asset impairments* 0.11
Diluted earnings per share, excluding
certain items affecting
comparability $ 3.11
*See reconciliation of Income Tax on Adjusting Items for tax impact of individual items. 134
Reconciliation of Adjusted Operating Profit Margin
(Fiscal Years)
Full Year
% of Net Sales
2018 2017 2016 2015
135
Reconciliation of Free Cash Flow and
Free Cash Flow Conversion
(Fiscal Years, $ in Millions)
2018 2017 2016 2015 2014 2013 2012 2011
Net earnings, including earnings attributable to redeemable
and noncontrolling interests $2,163 $1,701 $1,737 $1,259 $1,861 $1,892 $1,589 $1,804
Mark-to-market effects* (22) (9) (40) 56 (30) (3) 66 (60)
Divestitures (gain) loss* - 9 (66) - (36) - - -
Tax-related items 41 - - 79 - (85) - (89)
Acquisition integration and integration costs* 58 - - 10 - 9 10 -
Venezuela currency devaluation* - - - 8 58 21 - -
Restructuring costs* 61 154 161 218 4 16 64 3
Project-related costs* 8 28 37 8 - - - -
Provisional net tax benefit (523) - - - - - - -
CPW restructuring costs, net of tax 2 - - - - - - -
Intangible asset impairments* 65 - - 177 - - - -
Adjusted net earnings, including earnings attributable to
redeemable and noncontrolling interests $1,853 $1,884 $1,829 $1,815 $1,856 $1,850 $1,729 $1,657
Net cash provided by operating activities, as reported $2,841 $2,415 $2,764 $2,648 $2,622 $3,048 $2,512 $1,678
Purchases of land, buildings, and equipment (623) (684) (729) (712) (664) (614) (676) (649)
Free cash flow $2,218 $1,731 $2,035 $1,936 $1,959 $2,434 $1,836 $1,029
Free cash flow, rolling 3-year $5,984 $5,702 $5,930 $6,329 $6,229 $5,299
Free cash flow conversion, rolling 3-years 108% 103% 108% 115% 115% 101%
*See reconciliation of Income Taxes on Adjusting Items.
Adjusted for the adoption of new accounting requirements
Table does not foot due to rounding. 136
Reconciliation of Income Taxes on Adjusting Items
(Fiscal Years, $ in Millions)
Pretax Income Pretax Income Pretax Income Pretax Income Pretax Income Pretax Income Pretax Income Pretax Income
Earnings* Tax es Earnings* Tax es Earnings* Tax es Earnings* Tax es Earnings* Tax es Earnings* Tax es Earnings* Tax es Earnings* Tax es
As reported $2,136 $57 $2,271 $655 $2,404 $755 $1,762 $587 $2,655 $883 $2,535 $741 $2,211 $710 $2,428 $721
Mark-to-market effects (32) (10) (14) (5) (63) (23) 90 33 (49) (18) (4) (2) 104 39 (95) (35)
Project-related costs 11 3 44 16 58 21 13 5 - - - - - - - -
Venezuela currency
devaluation - - - - - - 8 - 62 4 25 4 - - - -
As adjusted $2,378 $612 $2,539 $740 $2,480 $740 $2,492 $761 $2,607 $840 $2,587 $836 $2,427 $786 $2,337 $776
*Earnings before income taxes and after-tax earnings from joint ventures.
Table does not foot due to rounding. 137
Reconciliation of Fiscal 2018
Net Debt-to-Pro Forma Adjusted EBITDA Ratio
(Fiscal Year, $ in Millions)
Full Year 2018
Total Debt $15,818.6
Cash 399.0
Net Debt $15,419.6
138