Sam Fischer

Sam
Fischer
Managing Director,
Diageo Southeast Asia
Sam Fischer
Managing Director, Diageo Southeast Asia
Nationality:
Australian
Role description:
Appointed Managing Director, Southeast Asia
in November 2009; member of the Asia Pacific
Executive Committee
Prior experience:
Previously served as General Manager,
Diageo Vietnam. Prior to joining Diageo,
worked at Colgate Palmolive for 15 years,
culminating in my role as General Manager
Central Europe
Favourite drink:
Johnnie Walker Black Label on the Rocks
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SEA: A Region of High Growth
>
GDP growing at 6-7% in 2010, forecast to grow 7% through to 2015
>
GDP per capita doubled in almost every market from 2004 to 2010
Vietnam
Thailand
2004
2010
Malaysia
Indonesia
GDP per capita (US$)
0
2,000
4,000
6,000
8,000
>
Over 50% of population under 30 years old
>
7m new consumers every year
Source: IMA Asia Forecast Book Q1 2011, Euromonitor.
10,000
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Large TBA Market
£4bn
Others
Vodka
Other Brandy
Cognac
Scotch
Locally prod Spirits
Beer
2010
>
Overall TBA : 150m 9L cases, £4bn Sales Value
>
Scotch category > 3x size the next category and 50% of Int’l Spirits
>
Diageo No.1 in Scotch
Source: IWSR & Diageo Internal estimates
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Diageo in Southeast Asia
Others
Vodka
Other Brandy
Cognac
Scotch
Locally prod Spirits
Beer
Diageo
participation
2010
>
# 1 International Spirits Company
>
# 1 International Spirits brand - Johnnie Walker
Source: 2009 IWSR Total Retail Value and 2010 IWSR Volumes.
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Participating in high growth
categories
2010 - 2015 CAGR (%)
12%
9%
9%
8%
Includes local
Vodka in Vietnam
growing at CAGR
of 21%
7%
5%
3%
F15 net
sales (£m)
Vodka
Scotch
Beer
Others
Cognac
Other Brandy
Locally
Produced
Spirits
81
399
3604
175
107
20
1155
Source: IWSR & Diageo Internal estimates.
>
F15 estimated TBA £5.5 billion
>
Overall 5 year CAGR 7%
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Diageo strength in SEA
Vietnam
Thailand
Malaysia
Indonesia
Brand
Equity
Existing
Scale
Established
Organisations
Great momentum. . . and confident this will continue
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Vietnam: attractive demographics
Young, increasingly wealthy population
Population
87 million
< 30 years old
52%
New LDA / year
1.8 million
Real GDP growth
8% (avg annual growth to 2015)
GDP per Capita
US$1,190 (CAGR to 2015: +10%)
Sources: Euromonitor International from national statistics, IMA Asia Forecast Book Q1 2011.
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Established presence in Vietnam. . .
> Domestic route to market through Diageo Vietnam
> Strong brands supported by mentoring program
> Great relationship with trade
> Industry leading Chinese New Year gifting portfolio
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. . .driving great results
> Johnnie Walker No. 1 International Spirits;
Smirnoff No. 1 International Vodka
> Over 800,000 gift boxes delivered during Chinese
New Year, 80% growth vs last year
> No. 1 sales team amongst Consumer Packaged
Goods Companies
> High double-digit top line growth
Source: IWSR & AC Nielsen.
10
Thailand: growing urban population
Increasingly modern & wealthy urban
population
Population
65 million
< 30 years old
43%
New LDA / year
1.0 million
Real GDP growth
5% (avg annual growth to 2015)
GDP per Capita
US$4,986 (CAGR to 2015: +13%)
Sources: Euromonitor International from national statistics, IMA Asia Forecast Book Q1 2011.
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Transformational Marketing in
Thailand
> Diageo-managed JV with MH
> Premiumisation in On-Premise focuses on
fantastic brand experiences
> World-class owned media - total database
approximately 30% of universe
> Winning in gifting through at scale category
execution in modern retail channel
12
Multi-year track record continues
> Strong performance in last 4 years
> Scotch share up 13ppts since 2007
> Deluxe category decline halted by JW Black in F11
> Double-digit top-line growth in H1 this year
Source: Share from AC Nielsen.
13
Strong share performance in
Thailand
Scotch consistently gaining share in Thailand
Total Scotch Share
60
Diageo
50
Main Competitor
40
30
F 07
Source: Share from AC Nielsen.
F08
F09
F10
H1 F11
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Malaysia: relatively wealthy
population
Young population, wealth levels already
relatively high
Population
29 million
< 30 years old
58%
New LDA / year
0.5 million
Real GDP growth
5% (avg annual growth to 2015)
GDP per Capita
US$8,004 (CAGR to 2015: +10%)
Sources: Euromonitor International from national statistics, IMA Asia Forecast Book Q1 2011.
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Activation at Scale in Malaysia
> Strong partnerships with MH and Asia Pacific Breweries
> World class beer & spirits brand ranges
> Consumer programs at scale
> Festive activation
> Commercial execution & strategic outlet partnerships
16
Leadership in Beer, momentum in
Spirits
> 9 consecutive years of share gains in Beer,
strengthens No. 1 position
> Double-digit top-line growth for Johnnie
Walker in H1
Source: Share from CMBB (Confederation of Malaysian Brewers Berhad).
17
Indonesia: highly populous
Large population, significant potential
Population
232 million
< 30 years old
53%
New LDA / year
4.1 million
Real GDP growth
7% (avg annual growth to 2015)
GDP per Capita
US$3,019 (CAGR to 2015: +19%)
Sources: Euromonitor International from national statistics, IMA Asia Forecast Book Q1 2011.
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Strong Partnerships in Indonesia. . .
> Successful 40 years distribution partnership with
PT Dima
> Successful 35 years brewing partnership with MBI
> World class execution of Guinness
> Strong innovation agenda led by proven
international brands
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. . .delivering consistent share
growth
> Indonesia 6th biggest market for Guinness globally
> Gained 3ppts share over the past 3 years
> Successful launch of Smirnoff Ice driving total TM
> Sales growth last 5 years 18% CAGR
Source: Share from GIMMI (Malt Beverage Industry Body in Indonesia).
20
Winning in South East Asia
> Leverage category-leading positions to grow share
> Premiumisation – supported by leading edge marketing
> Best in class Brand innovations
> Advantaged routes to market, partnerships as leverage
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Track record of winning share
Diageo International Spirits share in SEA
21%
16%
2005
2010
… confident this will continue
Source: Estimates base on IWSR.
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To sum up. . .
Strong TBA Market
> £4bn opportunity – we participate at scale in key markets
Attractive demographics
> Young & increasingly wealthy population
Leading brand positions and track record
> Strong brand equities
> Strong organisations
> Advantaged routes to markets, strong partnerships
> Focus on premiumisation
> Winning share across markets
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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
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or cost of financing to Diageo, anticipated cost savings or synergies, the completion of Diageo's strategic transactions and restructuring programmes, whether
and when any transaction may be eps accretive or economic profit positive and its anticipated impact on margins, 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 because they 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 differ materially from those expressed or implied by these forward-looking statements, including factors that
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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 Diageo’s market share, increase expenses
and hinder growth potential;
• the effects of Diageo’s 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;
• Diageo’s ability to complete existing or future business combinations, restructuring programmes, acquisitions and disposals;
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• changes in consumer preferences and tastes, demographic trends or perception about health related issues, or contamination, counterfeiting or other
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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 above factors 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
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Diageo for use. All rights reserved. © Diageo plc 2011.
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