Dumex Malaysia PRODUCTION - Corporate-ir

Transcription

Dumex Malaysia
PRODUCTION
General Manager - Operations
Analyst Visit – 10 Sept03
1
Dumex Value Chain
Retail
Sales & Distribution
Marketing & Brand Ownership
Value Chain activities covered by
Dumex
Packaging
Blending
Bulk Powder Production
R&D / Quality Control
Raw material
End user
Value Chain activities not covered by
Dumex
2
Improving Production Efficiency
1999
(%)
2000
(%)
2001
(%)
2002
(%)
Can Lines Ave.
64
72
79
81
Pouch Lines Ave.
76
87
91
91
Total Weighted Ave
66
77
86
88
Production Efficiency = Actual Output in Cartons / Rated Output
in Cartons
3
Quality Certification
ISO 9001: version 2000
:
1997
HACCP
:
2000
ISO 14001 (in progress)
- Environmental Management System.
- Employee Safety.
- Certification in 15th Nov 03.
Dumex only one in the industry has ISO
9001:2000, HACCP, ISO 14001 certification.
4
Dumex Malaysia
SUPPLY CHAIN
General Manager – Supply Chain
5
Warehouse / Distribution
Meeting delivery schedule required by
Marketing/Sales and Export Markets.
Optimize warehouse space.
Stock control to minimize stock variance.
Sourcing of reliable transporters to optimize
service level and profit.
Customer satisfaction surveys every 6
months with distributors.
6
Main Export Markets 2003

Singapore
Philippines
Brunei
Vietnam
Saudi Arabia
India
Thailand (end 2003)
7
Dumex Malaysia
MALAYSIA OVERVIEW
Managing Director
8
Malaysia Overview
Since independence in 1957, Malaysia has emerged
as one of the most stable democratic countries in
Asia.
Malaysia in 1970’s – producer of raw materials.
Malaysia in 1990’s – emerging multi-sector
economy.
High growth rates almost exclusively driven by
exports – incl. electronics.
With US and Japan being top export destinations –
economy vulnerable.
Healthy foreign reserves and small external debt.
Declining foreign investments.
9
Economic Indicators - Malaysia
Economic Indicators
Economic Growth
Interest Rate (BLR)
Inflation
Unemployment
Birth Rate (per '000)
Population (in million)

1999
2000
2001
2002
2003f
5.4%
7.2%
2.8%
3.4%
25.5
22.86
8.5%
6.5%
3.0%
3.1%
24.5
23.44
0.4%
6.4%
1.5%
3.6%
23.5
24.01
3.5%
6.4%
1.8%
3.7%
23.0
24.53
4.5%
6.0%
0.9%
3.5%
21.4
25.05
Qtr2
Qtr2
Increasing growth rate.
High but declining birth rate
68% of population are Malays
Continued low unemployment and inflation
*Source: Central Bank & Department of Statistics
10
Economic Indicators - Singapore
Economic Indicators
Economic Growth
Interest Rate (BLR)
Inflation
Unemployment
Birth Rate (per '000)
Population (in million)

1999
2000
2001
2002
2003f
6.9%
3.3%
0.0%
4.6%
12.8
3.95
10.3%
2.8%
1.3%
4.4%
13.7
4.02
-2.0%
1.6%
1.0%
3.4%
11.9
4.13
2.2%
5.4%
-0.4%
4.4%
11.4
4.17
2.5%
5.2%
0.5%
4.9%
n/a
n/a
Predominantly Chinese population.
Very high income and purchasing power.
Low and declining birth rate.
*Source: Central Bank & Department of Statistics
11
Dumex Board of Directors

Mark A Wilson, Chairman

Christopher R Stratton

Bjorn Lynggaard Olesen

Chan Hua Eng

Kartini bt Haji Abdul Manaf, PNB
(20% ownership)
12
Business Philosophy
Keep it simple
(and execute well)
13
Human Resources
(Best Employers in
Malaysia 2003)
General Manager – Human Resources
14
PREMIER EMPLOYER
RECOGNITION
15
Objectives of the Study
Examines people management practices
Explores what makes an organization a
good place to work
Provide insights into how organizations can
achieve a real competitive advantage
through their people
Aims to understand and explain the linkages
between effective people practices and
better business performance
16
Participation
Regional
Malaysia
Conducted in 8 markets in 43 companies
Asia:
participated
¾ SEA: Malaysia,
¾ 56% Foreign / JV
Thailand, Singapore,
Philippines
¾ 44% Local
¾ China
95,056 employees
¾ Hong Kong
were represented
¾ Taiwan
Top 10 Company
¾ Korea
Ownership
305 companies
¾ 50% Foreign / JV
participated
¾ 50% Local
500,000 employees were
represented
17
Study Tools
Each company asked to complete three
study tools:
¾ A questionnaire completed by the
CEO
¾ A People Practices Inventory™ (PPI)
completed by Human Resources
¾ An Employee Opinion Survey (EOS)
questionnaire to be completed by a
representative sample of employees
18
Engagement Satisfaction
Satisfaction :
how much you like it here
Commitment :
how much you want to
improve business results
Engagement:
how much you want to
and actually do to
improve business results
Engaged employees are satisfied. Satisfied
employees are not necessarily engaged.
19
The Best Employers in Malaysia 2003
1.
Dumex (Malaysia) Sdn. Bhd.
1.
The Ritz-Carlton, Kuala Lumpur
3.
Telekom Malaysia Berhad
4.
Federal Express Services (M) Sdn. Bhd.
5.
Tenaga Nasional Berhad
6.
Maxis Communications Berhad
7.
Abbott Laboratories (Malaysia) Sdn. Bhd
8.
Sunrise Berhad
9.
SP Setia Berhad
10. Komag USA (Malaysia) Sdn. Bhd
20
Dumex Malaysia
Best Employers in Malaysia
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100
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Overall Results
Dumex Malaysia vs Best Employers in Malaysia and The Rest
90
80
70
60
50
40
30
20
10
0
The Rest in Malaysia
Highest
Lowest
21
Best Employers = Better Results
The compound average annual growth rate
for The Best Employers in Asia compared
to The Rest was almost 30% higher over
the two-year period from 1999 to 2001.
Value Added by Employees over the same
two-year period was also greater amongst
Best Employers with The Best
experiencing positive growth and The Rest
going backwards.
Source: Hewitt Associates
22
The Future
Where to next for Dumex?

To be among the
top 20 employers in
Asia.

Remain in the Top 10
among Best
Employers in
Malaysia.
23
BEST EMPLOYER
BEST PEOPLE
BEST PERFORMANCE
24
Finance &
IT Overview
Regional Financial Controller
25
Currency Exchange Rates
Dec
2001
Dec
2002
Sep
2003
USD
3.8005
3.8005
3.8005
DKK
0.4545
0.5079
0.5519
SGD
2.0680
2.1483
2.1615
EUR
3.3859
3.7724
4.1026
MYR is pegged to USD, hence it is currently
weakening against other major currencies.
26
Interest Rates
Dec
2001
Dec
2002
Sep
2003
Bankers Acceptance
3.30%
3.08%
3.09%
Cash Deposit
5.00%
4.80%
4.20%
Overdraft
6.65%
6.65%
6.25%
Interest rate is at an all time low, and bankers
expect it to stay low for the next 1 to 2 years.
27
Government incentives
Tax incentives includes:
¾ Capital Allowance
¾ Double deduction on export
promotion
¾ Reinvestment Allowance
Other tax incentives:
¾ Multimedia Super Corridor
¾ Pioneer status
¾ Investment tax allowance
¾ Infrastructure allowance
¾ Etc. etc. …
28
Significant Improvement : 1997 – 2002
Revenue vs Operating Profit (%)
350
13.0%
12.0%
318
300
314
313
10.0%
9.0%
8.0%
7.0%
270
6.0%
250
5.0%
Operating Profit (%)
Revenue (mMYR)
11.0%
4.0%
3.0%
227
2.0%
217
200
1.0%
1997
1998
1999
Revenue
2000
2001
2002
Operating Profit (%)
29
EP Development : 1998 – 2002
EP Index (1999 Base = 100)
250
236
200
180
186
150
100
100
50
-
1999
2000
2001
Index based on 1999
2002
30
Maximum Dividend Payout
Payout Year
Currency in kMYR
1994 2000
2001
2002
Total
GROSS
48.7
11.7
42.2
102.6
NET (70%, 72%)
34.9
8.4
37.5
80.8
EAC (60%, 80%)
20.9
6.2
30.0
57.1
30.0
30.0
30.0
30.0
PAID-UP CAPITAL
GROSS PAYOUT %
162%
39%
141%
342%
Dividends paid in 2002 exceeds paid-up capital
31
IT Investment
2002
Software Allocation
By Department
Logistics
9%
HR
13%
61% (majority) of
software
investment to
enhance sales &
marketing
activities.
Nutrition
9%
Finance
17%
Sales &
Marketing
52%
32
Useful government websites

Bank Negara (Central Bank) - http:// www.bnm.gov.my

Department of Statistics - http://
www.statistics.gov.my

The Treasury, Ministry of Finance http://www.treasury.gov.my

Malaysian Industrial Development Authority (MIDA) http://www.mida.gov.my

Malaysian Institute of Economic Research (Mier)

Economic Planning Unit - http://www.epu.jpm.my

Economic Planning Unit - http://www.parlimen.gov.my
33
Dumex Malaysia
MARKETING
General Manager - Marketing
34
Dumex Product Categories
IF/FO
=
Infant Formula/Follow on Formula
0 – 3 years
GUM
=
Growing Up Milk
1 – 10 years
FC
=
Full Cream – general use
35
Pricing Points
Index
Example
Standard
100%
Dumex
Premium
180%
Mamex/Mamil
Super
Premium
250%
Mamex/Mamil
Gold
36
GUM now Biggest Category - Malaysia
Adult
7%
Std IFFO
17%
Full
Cream
22%
Full
Cream
17%
Premium
IFFO
9%
Std GUM
40%
Volume : 55,000 tonnes
Std IFFO
16%
Premium
IFFO
17%
Premium
GUM
7%
Premium
GUM
5%
Adult
7%
Std GUM
36%
Value : RM900 million
37
Dumex is Clear No. 1
40.0%
Corp Share II – West Malaysia (Volume)
Dumex
35.5%
35.0%
33.4%
32.5%
30.0%
26.9%
Nestle
25.5%
25.0%
20.0%
24.1%
Dutch Lady
17.3%
18.2%
15.1%
15.0%
10.0%
1996
1999
2001
2002
YTD 03
* Corp Share II excludes Full Cream & Hi-Calcium/Low Fat/Specialities
38
Dumex is No. 1
35.0%
Corp Share II – Singapore (Volume)
30.0%
30.7%
Dumex
23.9%
27.5%
25.9%
Abbott
27.9%
25.0%
20.0%
20.9%
19.2%
15.0%
15.7%
10.0%
10.0%
Nestle
9.3%
5.0%
1997
1999
2001
2002
YTD 03
39
Dumex is No. 2 by Value
40.0%
Corp Share II – Singapore (Value)
Abbott
35.1%
35.0%
32.2%
30.0%
26.8%
25.0%
21.5%
21.4%
20.0%
Dumex
18.7%
20.1%
15.8%
Nestle
15.0%
10.0%
7.5%
5.0%
1997
1999
2001
2002
YTD 03
40
GUM PERFORMANCE
HIGHLIGHTS
41
GUM Market
Std and Premium GUM Combined
Company
Dumex
3
No. of
Products/
variants
9
Nestle
5
7
17.7
Dutch Lady
4
7
20.3
NZM
6
12
14.5
BMS
5
13
8.5
Others
11
19
4.1
No. of
Brands
Total Share
(Ytd MJ 03)
34.9
42
Mamex/Mamil Gold
Launch
Gondola display
at G-value
Motherhood
Exhibition
25-29 June
Display at Westmall –
Guardian Baby Fair
43
44
OTHER
HIGHLIGHTS
45
NEW PRODUCT
CONTRIBUTION
46
% New Product of Total Sales
40%
38%
35%
30%
38%
32%
25%
26%
20%
20%
15%
10%
12%
14%
5%
1997
1998
1999
2000
2001
2002
2003 LE
*New products are products launched within last 5 years
47
Nutrakids Baby Cereal
Baby Cereal business remains small but is a key
component in infant and child nutrition.
Investments and plan are in progress to build this
category:
- Nutrakids Baby Cereal relaunched with maxi –
end 2002
- Nutrakids Fine Cereal relaunched with maxi-Q +
DHA – April 2003
- Relaunch supported with TV advertising and
strong below line promotion.
48
NASA
DETAILING
49
Nutrition Advisor System Aid (NASA)
Objective:
to achieve an edge in competitive selling
to HCPs via multimedia detailing using
laptops.
Dumex, the first and only company
implementing NASA for nutrition business
in Malaysia/Singapore since 1999.
50
51
CUSTOMER
SATISFACTION
SURVEYS
52
Customer Satisfaction Survey - Medical
Dumex is No. 1 among Medical Professionals ….
1996
1999
2001
Best Infant Formula Company
3rd
2nd
1st
Overall Quality
3rd
2nd
1st
Nutrition Services Performance
4th
1st
1st
Education & Support Materials
2nd
1st
1st
Progressive Company
2nd
1st
2nd
Trusted Brand By Mothers
2nd
1st
1st
Preferred Among Doctors
2nd
1st
1st
53
Brand Equity
Represents the “added value” endowed to a
product / brand as a result of past investments in
the marketing of a brand.
The brand is said to command strong equity if it :
¾ Is a favourite brand amongst consumers
¾ Is a brand that consumers would recommend
to their friends
¾ Is a brand that consumers are willing to pay
price premium
54
Brand Equity Index
Dumex is No. 1 among Consumers….
Category
Brand
Brand Equity
Ranking
Infant
Formula
Dumex Infant
Formula
1st
GUM (1+)
D1P
1st
GUM (3+)
D3P
1st
GUM (6+)
D6P
1st
Source : AC Nielsen; Winning Brands 2002
55
AC NIELSEN
AWARD
56
Dumex is top 3 Family Brand in Malaysia
57
COMMUNITY
PROJECTS
58
DUMEX National Science Quiz3
Objective: To promote interest in Science
amongst young kids – in line with
Government policy.
Annual programme reaching out to 200
primary schools and 100,000 children.
Combination of science demonstrations
and quizzes.
12 selected schools in final.
TV broadcast of quiz final.
59
DUMEX National Science Quiz
Press coverage for launch & snapshots at the finals,
Oct 31,2002
60
Dumex Champion Award

Programme with Ministry of Education.

Annual award to best overall primary school
student from each state.

Selection is based on academic and extra
curricular activities.

The 14 champions each representing their own
state to KL for award giving ceremony.

PR campaign to highlight the Dumex Champion
Award.

Dumex champion role models for other students to
emulate.
61
Dumex Champion Award
62
Dumex Malaysia
Malaysia
Dumex
SALES
General Manager - Marketing
63
Distribution System

Closed Market System
Distributor’s area clearly defined.
Encroachment of area is strictly prohibited.
Distributor provide dedicated Van Sales team
covering lower trade outlets.
Coverage of Key Accounts by Dumex Sales
Reps.
Accounts & Credit Risk
Credit risk borne by Distributor.
64
Category Management

Growth of Key Accounts

Increasing importance of
category management
65
Fixed Shelf Allocation
Facings based on Dumex store sales with some adjustments
66
Dumex Malaysia
WRAP UP
Managing Director
67
Key Issues

Mature market.

Overall limited growth –
apart from GUM.
68
Declining Birth Rate - Singapore
51,000
Declining birth
rate
39,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
69
…But Increasing Premium GUM Sales
Sales Value
$mil
8.5
7.5
6.5
5.5
4.5
3.5
2.5
Premium/Super Premium
1.5
Standard
0.5
JF
00

MA
00
MJ
00
JA
00
SO
00
ND
00
JF
01
MA
01
MJ
01
JA
01
SO
01
ND
01
JF
02
MA
02
MJ
02
JA
02
SO
02
ND
02
JF
03
MA
03
MJ
03
In spite of overall flat market, opportunities still exist.
70
THANK YOU
Team Malaysia
71