csc investor day - maxton presentation web.ppt [compatibility mode]

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International

Larry McWilliamsPresident International

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• An Operating Division of Campbell’s … critically linked with the Company’s overall strategies

• Manufacturer and marketer of Simple Meals, led by Soup, Baked Snacks and vegetable based beverages

– Asia Pacific

– Europe

– Latin America

– Emerging Markets

• $1.7 Billion in annual Sales

• 6,700 employees

International Division

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International Portfolio

Net Sales $1.7BCategories

Biscuits 41%

Wet Soup32%

Dry Soup7%

Sauces6%

Other 10%

Beverages 4%

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4 Operating Regions (% Sales)

• Asia Pacific 53%

• Europe 38%

• Latin America 7%

• Emerging Markets 2%

• Asia Pacific 53%

• Europe 38%

• Latin America 7%

• Emerging Markets 2%

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Asia Pacific

Australia 79%New Zealand 8%Indonesia 5%Malaysia 5%Japan 3%

% SalesMarkets

Biscuits 78%Soup 15%Beverage 2%Sauce 4%Other 1%

% SalesCategories

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In Australia, We Have a Strong Soup Business Under the Campbell’s Brand

Campbell’s 58%Next Leading Competitor 33%

Share(1)

(1) Latest 52 weeks value share

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Arnott’s Biscuits

• Largest selling food brand in the grocery store

• Household penetration of almost 100%

• Growing business in Asia/Pacific region

(1) Latest 52 weeks value share

Arnotts 60%Next Leading Competitor 6%

Share(1)

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Europe

Germany 32%France 29%Belgium 25%Nordic 11%Netherlands 3%

100%

% SalesMarkets

Wet Soup 55%Dry Soup 19%Sauce & Beverage 10%Other 16%

% SalesCategories

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We are Building Sustainable Growth in Europe

• Business focused on Western Europe (Germany, France, Belgium, Sweden, and Netherlands)

• #1 brands in wet and instant dry soup categories

• Focusing on building sustainable growth by– Leveraging brand strengths– Continuous innovation

program– Identifying new distribution

channels and occasions

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Europe Brands

France Germany

Nordic

Liebig 48.4Next Leading Competitor 33.4

Royco Instant Dry 71.0Next Leading Competitor 16.0

Share(1)

(1) Latest 52 weeks value share; Belgium ambient only

Erasco 47.5Next Leading Competitor 24.4

Heisse Tasse Instant Dry 51.1Next Leading Competitor 26.9

Share(1)Campbell Deli Soup 49.0Next Leading Competitor 38.8

D&L Sauces 40.8Next Leading Competitor 28.4

Royco Instant Dry 87.1Next Leading Competitor 12.0

Share(1)

Belgium

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Latin America Brands

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Campbell’s International will Benefit from Macro-Economic Trends Worldwide

• Population growth is the key driver of food consumption

• GDP/capita growth will bring processed food within economic reach of hundreds of millions of people in emerging markets

44%

94%

56%

6%

Growth in GDP Growth inPopulation

Emerging

Developed∼∼∼∼$30 Trillion 1.1 Billion

Source: McKinsey analysis

Share of Forecasted Growth 2003-2023

Emerging

Developed

DevelopedEmerging

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* China - Soup U&A June 2004* Russia - Soup Eating Habits March 2005

Low Commercialization Rates = A Tremendous Opportunity

Existing Markets% Commercial Soup

New Market Opportunities

80%

70

60

50

40

30

20

10

0

350

300

250

200

150

100

50

0Japan Mexico USA Germany France Canada Australia

4119 14 4 3 2 1

34

15

70

50

33

73 75

China* Russia*

320

32

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External Trends• Existing Soup Behavior

– Existing Markets/New Markets• Participate• Localize

• Health/Wellness– Soup/Broth– Vegetable based Beverages– Baked Snacks

• Rapidly improving conditions in Emerging Markets– Economic growth– Growing middle class– Infrastructure– Population

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Internal Capabilities

• Strong brands

• Consumer understanding

• R&D capabilities

• Thermal processing expertise

• Vegetable expertise

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Russia and China

% of Total World Soup Consumption

2009-2011

Russia & China 56%

% of Total World Soup Consumption

6%

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Russia is Gearing Up for Expansion• Strong product acceptance in Moscow lead market• Established local low-cost production capability• Best in class distribution through Coca-Cola Hellenic partnership• National expansion to begin in August ’09

– From 3 SKU’s in 1,500 stores – 1 city – F’09– To 14 SKU’s in 32,000 stores – 100 cities – F’10

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Coca-Cola Hellenic OverviewOverview

• Largest bottler in Europe• 2nd largest Coca-Cola bottler in world• Operates in 28 countries 16 of which are part

of the European Union• Access to 550 million consumers• $10B in sales

Soup Potential in Current Coca-Cola Hellenic Geographies

• Geography covers 11% of world population• Approximately 75B Soup servings annually• Russia and Ukraine are key consumption markets

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China Portfolio Development

• Successful Broth launch in Guangdong and Shanghai

• Local supply through co-packer

• Best in Class Distribution through Swire Beverage partnership

• Portfolio expansion work underway – F’10

– Build scale

– Broaden occasions

– Launch new portfolio in existing markets

• Expand into more regions – F’11

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Latin America

Europe

Asia Pacific

Emerging Markets

Campbell

Everywhere … Everyday