klinepesonalcarequals (2).ppt [read-only] · most critical channel. 12 ... example: formulating an...

ABOUT KLINEOur Competencies and Experience in the Personal

Care Value Chain

Overview Presentation

1

Contents

About Kline and Company

Our Expertise in Cosmetics and Toiletries

Our Expertise in M&A

Examples of Our Experience

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Kline and Company is a leading management consulting and market research firm.

Kline Management Consulting

Kline Syndicated

Research

Working with individual clients to resolve tough

issues and help implement solutions

Generating information and insights for multiple

clients through syndicated research

Managed flow of people, ideas and data

http://www.pg.com/

http://www.corporate.basf.com/en/

http://www.mpi.co.jp/english/index.htm

http://www.kodak.com/

http://www.honeywell.com/

3

Kline Management Consulting focuses on a range of industries and consulting services.

Industry Practices

Chemicals & Materials Energy Life

SciencesConsumer Products

Con

sult

ing

Serv

ices

Strategy

Technology

Manufacturing & Supply Chain

Customer Relationships

Kline Management Consulting

4

Kline Research develops detailed information and insights, covering the same sectors as consulting.

Syndicated Research Topics

Market Size & Segmentation

Product Supply and Demand

Competitor Profiling

Scenario Forecasting

Kline Syndicated Research

Industry Practices

Energy Consumer Products

Life Sciences

Chemicals & Materials

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Our industry practices have deep expertise in their areas of focus.

Industry Practices - Overview

Consumer Products Life Sciences Chemicals and Materials Energy

Consumer products in all distribution channels Personal CareHome careHome improvementAutomotive productsFood and beverages

Agricultural productsBiotechnologyPharmaceuticals

Specialty and fine chemicalsElectronic chemicals/materialsPlastics and polymersPackagingMineralsInorganic chemicals

LubricantsPetroleum specialtiesFuelsAdditivesPowerGasNew energy sources

ManufacturersMarketersRetailersSuppliers

Agricultural product suppliers/manufacturersBiotech firmsHealthcare suppliers/manufacturers:

OTC/prescription drugsMedical devicesDiagnostic toolsManaged care

Chemicals/raw material suppliersCustomers:

Automotive/ transportationBuilding and construction ElectronicsI&I cleanersPersonal care

Lubricant blendersRefinersSuppliersAdditive manufacturersUtilitiesPower companies

Our

Exp

ertis

eO

ur C

lient

s

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Our consulting services address clients’ most pressing issues.

Consulting Services - Overview

Strategy Technology Manufacturing and Supply Chain

Customer Relationships

Corporate strategyBusiness unit strategyNew business entryMergers, acquisitionsand divestmentsStrategy process development

Technology strategyPortfolio optimizationTechnology evaluation and commercializationTechnology searchAccelerated Stage-GateR&D organization

Supply chain strategyManufacturing economicsOperational effectiveness/ cost reductionLogistics optimizationSupply chain process redesign

Sales and marketing strategyCustomer satisfactionValue-based segmentationCustomer relationship management/retentionOffer-to-cash redesign

What is the optimal mix of businesses in our portfolio to meet our financial objectives?How do we double the size of our business in five years?Does it make more sense to make an acquisition or form an alliance?

How should we balance short, medium and long term R&D investments? What is this critical technology worth and how should we commercialize it?How should Corporate Technology be organized to improve business alignment?

Should we treat our major suppliers as vendors or partners?How does our manufacturing cost structure compare with our competitors, and what are the drivers?How can we reduce costs by 5%+ without undermining morale?

Which segments and customers represent the highest value?How do we move from a product-centric to a customer-centric organization?Will improving the customers’ buying experience result in higher profitability?

Our

Exp

ertis

eTy

pica

l Iss

ues

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We are genuinely global – not just in terms of our office locations, but in the way we work.

Example of Recent Global Assignment

EuropeClient asks Ian Butcher for help to develop aggressive growth strategy

USDavid Vladyka assesses future industry environment and our client’s competitive position

South AmericaSergio Rebêlo in Brazil identifies joint venture opportunity

ChinaLi Wang in Shanghai identifies and meets potential acquisition candidates

Client Head OfficeKline team delivers presentation to CEO and shareholder representatives

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Our collaborative tools provide analytical horsepower while accelerating the workflow.

StakeholdersBenchmarking

Portfolio AssessmentScenario DevelopmentCompetitive Response

StakeholdersBenchmarking

Portfolio AssessmentScenario DevelopmentCompetitive Response

Best Practice Tools

Intuitive Framework

Objectives

Current World

Actions

Future World

Current World

Objectives

Actions

Future World

Web-enabled

The ToolboxTM

Typical Workflow

Develop Spreadsheets

Prepare Presentation

SlidesHold

Workshop

Revise Analysis/Slides

Write Up Flip Charts

Circulate and Get Feedback

Finalize Slides & Flip Charts

Distribute Results

Set UpToolbox

Hold Workshop- Carry Out Analysis

- Display Charts

- Capture Insights

Review/Download Results to

PowerPoint and Excel

Our Workflow

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Why Kline?

Kline and Company

Typical Consulting Firms

Highly experienced people at all levels…

…experienced partners, inexperienced consultants

Leveraging our experience to resolve clients’ issues…

…leveraging consulting to sell other services

Stay as long as you need…

…stay as long as they can

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Contents





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The global C&T industry is a large, growing, non-cyclical industry.

Global finished product sales of $140 billion; largest segments are skin and hair care

At least 2-3 times GDP growth in finished products over the last 15 years, driven by demographics and sector-specific trends

Increasing convergence with pharmaceutical and nutrition sectors, with similar insensitivity to economic cycles

C&T ingredients have varying levels of differentiation within personal care formulations

C&T ingredients are a $6-7 billion industry, of which 45% are specialties

There are multiple channels to market; brand owners are the most critical channel

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Kline Research has world class expertise in cosmetics and toiletries.

Extensive series of syndicated research studies through the entire value chain

Management team very well-known to the industry

Often sought after to present papers at leading industry conferences

Global network of industry experts

Commitment to the personal care industry

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Kline‘s expertise in cosmetics and toiletries spans all channels globally.

Personal Care Industry and Segmentation

Department storesDirect sales Drug outletsFood stores

Mass merchandisers Specialty stores

Pharmacies/perfumeries

Categories Marketers Retail Channels

FragrancesMakeup

Hair CareSkin CareOral CareToiletries

Prestige/LuxuryMass

SpecialtyProfessional (salons, spas)

Direct

Specialty Raw Materials for C&TSpecialty Actives and Active

Delivery SystemsGlobal C&T

Professional Skin CareOther Related Titles

Specialty Raw Materials for C&TSpecialty Actives and Active

Delivery SystemsGlobal C&T

Professional Skin CareOther Related Titles

Entry/Growth StrategyMarket Opportunities

Product/Technology AssessmentCustomer Loyalty and Retention

Business/Brand Valuations M&A Screening and Due Diligence

Entry/Growth StrategyMarket Opportunities

Product/Technology AssessmentCustomer Loyalty and Retention

Business/Brand Valuations M&A Screening and Due Diligence

Syndicated Reports Consulting Services

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Contents





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Kline Management Consulting has extensive experience at each stage of the M&A process.

Corporate Development Transaction Support Integration

Support

Closing and Integration

Plan Execution

Transaction Closing

Preparation

Ownership Transfer/Closing Documentation

Integration Planning

Growth Strategy and Role of M&A

- Acquire- Divest- JV/Alliance

Target Identification

and Screening

Deal Preparation

and Preliminary

Due Diligence

Projected Synergies

and Valuation

Structure and

Negotiate Letter of Intent

Definitive Due

Diligence

Arrange Financing/ Negotiate

Final Transaction

Complete/Submit Letter of Intent

Prepare/Submit Bid

Prepare/Submit Terms Sheet

Execute Acquisition/JV

Agreement

Board or Senior Executive Approval

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We help clients translate strategic objectives into M&A strategy, and identify execution options.

Corporate Development


Plan Execution

TransactClosing

Preparation

ion Integration Planning

M&A Strategy Development

•Acquire•Divest•JV/Alliance

Deal Preparation

and Prelimina

Due Diligence


and Screening

ry

ProjectedSynergies

and Valuatio

n

Structand

Negotiate Letter ofIntent

ure

Definitive Due

Diligence


Final Transaction

M&A Strategy Development Target Identification & Screening

• Translate business strategy/objectives into M&A strategy

• Identify and evaluate options to achieve M&A strategy (e.g., acquisition, JV, divestiture)

• Develop selection criteria (acquisition, divestiture) to guide strategy execution

• Communicate M&A strategy to deal team(s)

• Develop target candidate list and fact base

• Identify the strategic logic for candidates

• Apply selection criteria and identify best candidates

• Profile candidates and develop preliminary selling proposition and valuation

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Our depth of knowledge of industry players allows us to unlock hidden value.

Transaction Support


Plan Execution

TransactClosing

Preparation




Deal Preparation

and Prelimina

Due Diligence


and Screening

ry

ProjectedSynergies

and Valuatio

n

Structand


ure

Definitive Due

Diligence


Final Transaction

• Prepare detailed candidate profile including pro-forma combination

• Develop compelling sales proposition and approach document

• Facilitate approach to target’s senior management

• Support initial due diligence

Deal Preparation and Initial Due Diligence

• Validate growth basis and define projected revenue and operational synergies to support valuation

• Conduct valuation scenario analysis

• Prepare and support negotiating team

• Review and evaluate deal structures

Valuation and Negotiation

• Prepare detailed and business-specific due diligence check-lists

• Plan and execute due diligence activities (plant tours, data room)

• Translate findings into valuation

• Identify any complex integration issues and implications

• Support final negotiations

Definitive Due Diligence and Final Negotiations

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We then help clients capture the value of the deal.

Integration Support


Plan Execution

TransactClosing

Preparation




Deal Preparation

and Prelimina

Due Diligence


and Screening

ry

ProjectedSynergies

and Valuatio

n

Structand


ure

Definitive Due

Diligence


Final Transaction

Integration Planning Integration Plan Execution

• Define post-integration design (organization and operational impact)

• Develop preliminary integration plan including project structure, overall integration strategy and approach for capturing synergies

• Develop detailed integration plan to ensure value is captured

• Provide overall project management

• Lead/support individual integration teams

• Assist with post-transaction communications and organizational change

• Support realization and tracking of benefits

• Help establish post-transaction systems and processes

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Contents





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We have completed many relevant assignments in personal care markets...

Examples include:

Opportunities in Specialty Raw Materials for Cosmetics &Toiletries

Market Strategy for Water Soluble Polymers in Hair and Skin Care

Entry Strategy for Personal Care Ingredients

Opportunities in Sugar and Starch Base Chemicals in C&T

Growth Strategy for Specialty Surfactants in Personal Care

Opportunities for Laundry Chemicals

Acquisitions and Alliances in Personal Care

Manufacturing Cost Benchmarking

...for clients with both established andemerging positions.

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Client:

Issue:

Approach:

Result:

Leading food ingredients company at an early stage of considering entry into personal care ingredients

Does personal care represent an attractive potential growth platform and, if so, where and how to enter?

Began by providing initial overview of personal care markets, competition and key success factors. Gradually converged on primary segments, growth opportunities and entry vehicles. Worked collaboratively with internal team to develop recommendations to Board

Client entered the business initially through organic growth, leveraging adjacent technologies, but is targeting acquisitions once financial hurdles are met

A few examples of our experience.Example: Formulating an entry strategy

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Client:

Issue:

Approach:

Result:

Leading global marketer of performance polymers

How to build a sustainable position in selected polymers for personal care applications?

For key polymer and competitors, understand key success factors and elements of current market positioning. Use Kline’s industry knowledge and feedback from customers to challenge/validate current client hypotheses and business models and to identify unmet needs

We recommended a comprehensive business strategy which enabled the client to build the business and close key gaps

A few examples of our experience.Example: Building a sustainable position in personal care

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Client:

Issue:

Approach:

Result:

Niche marketer of performance chemicals to personal care markets

Which acquisitions and/or strategic partners would broaden the client’s existing technology base and shore it up for the long term?

Evaluated several growth-oriented, value-added market sectors which had significant fit with client’s current business. Performed a formal acquisition screening program and identified several targets on a global basis which fit with client criteria

We recommended several acquisition/strategic partners, several of which were subsequently by acquired or partnered by our client

A few examples of our experience.Example: Growing through acquisition/strategic partnering

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A few examples of our experience.Example: Assessing the potential of a new technology

Client: A leading specialty chemical company

Issue: How to commercialize a new rheology control technology for personal care markets?

Approach: We provided specific assessments of several categories, to determine the size of the opportunity, the interests and needs of the marketers they could supply, and the time and effort needed to reach ultimate commercialization in branded products

Result: Our client has developed a successful business both in the United States and in Europe for this performance product

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A few examples of our experience.Example: Defending a business from substitution threats

Client: Leading manufacturer of organic UV absorbers

Issue: What is the best way to respond to the global threat of substitution by microfine titanium dioxide and zinc oxide in sunscreens?

Approach: Provided an appraisal of current market structure and consumption, as well as the identification of the drivers for substitution. Jointly identified and assessed alternative strategies to defend our client’s position

Result: Developed scenarios depicting the likely evolution of the marketplace and resulting strategies. Client acquired microfine zinc oxide technology.

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The Kline Group

Neil ShawDirector of Sales, North AmericaKline & Company, Inc.150 Clove RoadLittle Falls, NJ USA [email protected]

USAKline & Company, Inc.Overlook at Great Notch150 Clove Road, #410Little Falls, NJ 07424-0410Phone: +1-973-435-6262Fax: +1-973-435-6291E-mail: [email protected]

EUROPEKline Europe, S.A.1 Avenue GribaumontB-1150 BrusselsBelgiumPhone: +32-2 770-4740Fax: +32-2 770-9440E-mail: [email protected]

JAPANKline Japan Ltd.Yurakucho Building 11F1-10-1 Yuraku-cho, Chiyoda-kuTokyo 100-0006JapanPhone: +81-3 5219-2031Fax: +81-3 5219-2021E-mail: [email protected]

BRAZILFactor de SoluçàoAv. São Gabriel, 333 - CJ. 112Itaim Bibi - São Paulo - SP01435-011 BrazilPhone: +55-11 30797843

+55-11 30790792Fax: +55-11 30796197E-mail: [email protected]

CHINAKline AsiaCentury Ba-Shi Building, Suite 9C398 Huai Hai Road (Middle)Shanghai, PC 200020ChinaPhone: +86-21 5382-6677Fax: +86-21 5383-3889E-mail: [email protected]

If you require additional information about the content of this presentation or the services that Kline provides, please contact:

www.klinegroup.com

Add Erin’s contact details

We are committed to delivering consistently high quality in all the services we provide; to building and maintaining positive and long-term relationships with our clients; and to upholding the highest standards of competence, integrity, and professionalism in our people.

THE KLINE QUALITY COMMITMENT

klinepesonalcarequals (2).ppt [read-only] · most critical channel. 12 ... example: formulating an...

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