capital market day 2015 - market research and user experience research … · 2015-12-04 ·...

1 © GfK 2015 | Capital Market Day 2015 | January 2015

CAPITAL MARKET DAY 2015

January 2015


Friday, January 23, 2015

08:30 AM

09:00 AM

09:10 AM

09:50 AM

10:30 AM

11:00 AM

Registration and coffee

Introduction

Bernhard Wolf, Head of Investor Relations

Presentation and Q&A

Matthias Hartmann, CEO


Debra A. Pruent, COO Consumer Experiences

Coffee Break


Dr. Gerhard Hausruckinger, COO Consumer Choices


Friday, January 23, 2015

11:40 AM

12:20 PM

12:30 PM

13:40 PM

06:00 PM


Christian Diedrich, CFO

Closing remarks

Matthias Hartmann, CEO

Lunch Break

Optional: Meetings with Board Members according to personal schedule

In parallel: A look into the machine room – Presentation of GfK projects and products

End of Capital Market Day


GfK CAPITAL MARKET DAY 2015

SHAPING OUR FUTURE Matthias Hartmann, CEO

January 2015


Consumer behavior is constantly evolving

Mobile as a

catalyst for

change:

always on

Rise of digital

with growing

number of

touch points

Accelerating

speed

of innovation

Increasingly

complex

consumer

experiences


Resulting in a new and unstructured data landscape

Then Today


Consequently, our clients needs are changing

Clients want speed and fast results

Clients want insights with impact

Clients want data from all sources,

but need integration

Clients want proof of

ROI to justify investments


We have transformed GfK rapidly

Then Today

Decentral research network

with

Customized local client solutions

based on

Local operations and data collection, with duplicated systems and IT

focusing on

Local profit optimization on back of increasing investment backlog

leading to

Lack of scale and reach

Global consistent matrix organization

Globally standardized product portfolio

Global operations in centers, based on harmonized processes, systems and platforms

Optimization of global P&L and long term investment plan

Globally scaling business model

with

based on

focusing on

leading to


One GfK: Business Model for Global Scale & Results

And established our business model for the future

Consumer

Choices

(WHAT)

Consumer

Experiences

(WHY)

Retail

Measurement

Audience

Measurement

Mobile

Measurement

Cross-Media

Measurement

Brand &

Consumer

Experience

User Experience

Measurement

Communications

Measurement

Market

Opportunity

& Innovation

Digital

Market

Intelligence

Data

Partnerships

Data

Integration Platforms

Data &

Marketing Science

Delivering on clients' needs

Speed – Insights with Impact – Data from all Sources – Proven ROI


Data Integration as differentiator

A core panel and integration platform that serves

as calibration tool, as link between various data

sources and for data enrichment of external and

internal data sources

The GfK Reference Layer …

Proprietary, customer and third party data

Data Sources …

Defines the client needs that are current

or potential future opportunities for GfK

Insights that Matter

Consumer

Profiles

Measuring

Technology

Data Integration

Platform

enriched by

enabled by


Powered by an integrated and agile IT platform

Delivered

through

Integrated

within

Powered

by

Servicing GfK Clients

Infr

astr

uctu

re &

Pla

tform

as a

Serv

ice

GfK Cloud

GfK

Data Lake

Client Business

Applications Consumer

Profiles

Measuring

Technology

Data Integration

Platform

enriched by

enabled by


Working on approach for new markets

Proofpoint: Global Google partnership announced

Partnership with Google in which we provide our knowledge

and data regarding cross-media behavior to help power

research into media consumption across different screens

Now signed global framework agreement with Google

to explore an expansion into new markets

Extensions to current contract base in Netherlands & Germany


Making the scale shift in the desired direction

Less …

More!

Consumer Choices: Set up for Growth!

• Retail Tracking

• New Panels & Markets

• Audience Measurement

Consumer Experiences: Portfolio Shift!

• Standardized products

• Passive measurement

• User Experience

• Automation

Cross Sector: More synergies!

• Mobile Measurement

• Cross Media

• Data Platforms

Consumer Experiences: Portfolio shift!

• Primary data collection

• Ad Hoc

• Local Operations



CONSUMER EXPERIENCES Debra A. Pruent, COO

January 2015


Content

1. Custom research relevance and client needs

2. How have we prepared ourselves for this "new world"?

3. Business area opportunities

4. How will we continue to drive profitability?


Content






Consumer Experiences – What do we do for clients?

A lot more than survey data collection!

Our

data

assets

Other

data

assets

Your

data

assets

Unique data Innovation & expertise

Big data,

digital, real-time

analytics

Innovative

technology

platforms

Industry

expertise

Proven market

research

expertise

Smart decisions

• Winning strategies

• Business opportunities

Insights


Consumer Experience provides the “why” behind the “what” of

behavioral measurement data for client's products and services

Why …

… do customers like my competitors

new product better than mine?

… isn't my target market gaining awareness

of my product through my campaign?

… is the time spent

by consumers on

my website so short?

… are customers not repurchasing

my product/service?

… are customers

returning my product?

… isn't demand

being generated?

… should these certain product features

be included in my product?

… will "this" be the next big

innovation in my market?

… do customers like/dislike

my product, service, website?


The most significant disruption to our business model …

Then Today


Has also created multiple sources of secondary data


Consumers now have the power to quickly influence the success

or failure of brands circumventing traditional product launch and

marketing plans

Source: Altimeter Group 2013, Sprout social index, Dec 2013

72% of visitors to a

travel review site were

influenced

by a review


Client needs have evolved

Clients want speed and fast results

Clients want insights with impact

Clients want data from all sources,

but need integration

Clients want proof of

ROI to justify investments


Content






Our Transformational Focus Areas

Product

Portfolio

Commercial

Excellence

Operational

Performance


Product Portfolio

BaCE = Brand and Customer Experience | DMI = Digital Marketing Intelligence | MOI = Market Opportunity and Innovation | UX = User Experience

Global Branded Products: Blockbusters Other Global Branded Products

Established core

global product groups

Developed and launched

global modernized portfolio

Defined Product Management

& Innovation process

Interlock of Product

and Industry functions

Investment and

integration of Digital

MOI

• GfK Innovation

Roadmap

BaCE

• GfK Experience

Effects

• GfK Echo

UX

• UX Product Suite

BaCE

• GfK Brand Vivo

• GfK Customer

Harmonics

MOI

• GfK FuturePath

• GfK FutureWave

• GfK MarketBuilder DDS

9 "Blockbuster"

products

38% of sales from

Global branded products

8 products in the

Pipeline for 2015

MOI

• GfK Smart Discovery

• GfK Smart Creative

• Disease Atlas

BaCE

• GfK AD*VANTAGE/Express

• GfK Exposure Effects

• GfK Loyalty Plus

DMI

• GfK Purchase Journey

20 new products

launched

DMI

• GfK SMI Getting it done

2012 2013 2014

Key Blockbusters

only launched in late 2014


Operational Performance

2012 2013 2014

Prioritized product & process launches in

key markets: US, Germany, UK & BRICs

Global operational performance

management system and metrics

Financial performance improvement focus

for selected markets (CE Taskforce)

Targeted expansion

into new markets

Launching GfK

resource marketplace

Evaluation and preparation of non-performing

markets and non-core businesses for divestment

Ramp of offshoring hubs (ROC:

Resource Optimization Centers)

Global common process

and quality roll out

ROC end-to-end support

for new global Products

Global Online panel platform (Atlas)

and central sampling

Investment in end-to-end

Drive technology platform

Global common data-collection

platform strategy

+10% increase

in share of ROC

hours vs 2012

59% of sales covered by Global

Operational Performance

Management System resulting

in marked AOP improvement

vs. previous year (excluding Swiss

Pension effect)

16 data collection

software platforms

migrated to 2 standard

global platforms

Getting it done

Further integration of products on DRIVE behind

schedule


Commercial Excellence

Established Global

Industry Groups

Introduction of Sales Support for

key opportunities

Introduction of

Early Solution Calls

Full launch of

global CRM

Full launch of

Account Planning

Launch of Consultative

Sales Training

Strengthened Global

Marketing function

Launch of

Negotiation Training

Launch new sales force

profile and incentive structure

19 current

Global Key

accounts

60% revenue

now covered by

planned

accounts

6% reduction of

overall number

of clients

(unprofitable

“long tail”)

Global CRM + 4

new steering

systems in place

Sales and

Negotiation

training for key

account roles

Getting it done

2012 2013 2014

5% Sales decline

from Global Key

accounts in 2014

(driven by Tech

sector changes

and price

erosion)

Tracker revenue

(not profit) down

due to shift to

tech platforms


Content






Need to

understand

Consumers'

Experiences

Digital User

Experience

Our future business will be driven by three key areas


We will continue to help clients improve their performance in key

business areas while delivering on new client needs

Speed

Data Integration

Provocative Insight

Prediction/ROI

Develop strategic

opportunities

Grow

relations

Create

experiences

& forecast

Optimize in-market

experiences


Technology and Data integration will play a much bigger role

…addresses client needs but slows near-term revenue growth

Addressing Client

business questions

Leveraging Integrated

Data Sources

Powered by

Servicing GfK Clients

Infr

astr

uctu

re &

Pla

tform

as a

Serv

ice

GfK Cloud

GfK Data Lake

DRIVE-powered Consumer Experiences Products


GfK Brand Vivo delivers on new client needs

Tracks how consumers experience, connect and engage

with brands

Delivered via DRIVE platform

Unique and validated KPIs measuring

how brand experiences build relationships

Survey data + social media + sales & other client

data sources

KPIs impact on behavior and sales

Using GfK's Consumer Brand Relationships model (CBR)

• Featured in Harvard Business Review:

• Winner of ARF Great Minds Innovation Award


"Buying experiences

makes people happier,

with a greater sense of

well-being than purchas-

ing goods."

"Businesses will live or

die not by the attributes

they promise but by the

brand experiences and

value they offer."

"We need new industry

models that truly integrate

all our communications, to

make sure that consumers

engage with brands that

offer a consistent message

and brand experience." Pine and Gilmore

Welcome to the Experience Economy

Hauser and Lenderman

AdWeek

Keith Weed

Unilever CMO

Our BaCE Portfolio addresses “The Experience Economy” trend

BaCE = Brand and Customer Experience


Our Digital portfolio will continue to bring overall growth

GfK Digital

Helping clients understand how consumers use digital to gain awareness of, evaluate,

shop and purchase products and services … NOT online surveys, digital reporting (e.g. dashboards)

Key GfK Products

• GfK Purchase Journey

• GfK Social Media Intelligence (SMI)

• GfK Opinion Planet

• GfK Exposure Effects

• + joint effort with Consumer Choices:

• GXL, Mobile Insights, Location Insights, Mobile Ad Effectiveness

• Social TV Dashboard

Our Key Strengths

• Ad hoc behavioral analysis (LEOtrace metering)

• GfK Social Media Intelligence (SMI)

• GXL

Coca Cola feedback after a SMI presentation:

"… we all agree with what you are saying and

we completely agree with your POV. None of the

other BIG agencies are delivering this message"


User Experience is a new and growing area where GfK

is the only global provider

User Experience (UX)

Helping clients understand how consumers "use" products and websites to 1) improve usability and

success of early stage design and 2) optimize already launched products

Key GfK Products

• UX Design Test

• UX Measurement (UX Score, UX Tracker)

Our Key Strengths

• Unique global offering with offices in 13 markets around the world with 25+ user

research labs

• Key link to GfK’s competencies in Technology, Retail and Health sectors

• Leverages strengths in mobile and online


Our business mix will continue to change over time

“Traditional CE”

Slow/measured growth with

planned increase in share of

Branded Products vs Non Branded

Products from 38% to 75%

Doubled current business and

expect continued strong growth

High future growth potential User Experience (UX)

Digital

Branded

Products

Non-Branded

Products

Grow to consistent double-digit

(technology, operational

efficiency gains)

Grow to strong double-digit

(after investment phase)

Double digit, stable

Expect continued declines Lower but stable

(eliminate low-profitable work)

Business growth Opportunity Margin Potential


Content






Now Shape ConsumerExperiences Portfolio

Productivity Manage Cost Base Future

Continued focus on key measures driving margin growth SCHEMATIC

10+%

• Country Portfolio

• Product Portfolio

• Client Portfolio

• Utilization/

Resource/

Capacity

Management

• Procurement

• Shared Services

• Global Production

Hubs


Summary

Consumer Experience remains very relevant to clients

Speed, provocative insights, data integration and predictive

analytics are the key deliverables to drive business

Consumer Experience has significantly transformed

and is ready to seize the opportunities

Profit growth remains our key focus!



CONSUMER CHOICES Gerhard Hausruckinger, COO

January 2015


Content

1. Overview achievements Consumer Choices 2012 – 2014

2. World-class technological infrastructure: Example Audience Measurement

3. Unique industry offerings: Example GfK Supply Chain Management Insights

4. Perspectives for Consumer Choices


Content






• Consistent organic growth

of 3 – 4%

• Strong margin despite

significant investments

• New panels/businesses

• Systems

• Transformation of low-per-

forming/critical businesses

• Improvement of working

capital

• Maintained good momentum

in Retail Tracking

• Core and new panels

• Emerging markets

• New industries/client

segments

• Successfully transformed

Audience Measurement

• Achieved market readiness

for Mobile & Location Insights

• Designed and built

highly modern IT and BA

infrastructure, e.g.

• StarTrack

• Evogenius

• TV/Online meters

• Improved our quality

• Established globally

consistent processes

• Built high-performance

organization

Main achievements Consumer Choices 2012 – 2014:

Well positioned to further accelerate our growth

Financials Driving growth Securing the basis


• One CRM

• Global/local BI

• KPI Dashboard Ops

• NewBiz Tracking

• SRM

• Training Programs

• Negotiation

• Project Management

• Sales Excellence

• Succession Management

• Consistent incentive schemes

• Global Staff Metrics

• StarTrack Modernization

• Executive Dashboards

• Evogenius

• Portals/Dashboards

• Music

• GXL

• Mobile Insights

Examples for supporting initiatives:

Our prerequisites are in place

• Coding Competence Centers

• Standardized Global Processes

• 2d2w Initiative

• Sample Expansion

• Automatic Text Recognition

Levers for

enabling the

CC organi-

zation


Content






The media industry is in massive transformation:

Both challenge and opportunity for our industry

Audience fragmentation Change in technology

Future growth opportunities New business models

• Increasing media usage

• Digital natives

• Proliferation of devices and channels

• Personalization

• Explosion of digital consumer traces

• Superfast distribution of content

via IP, also wireless

• Media Servers in

the Cloud & in-home

• Large, intelligent multi-purpose screens

• Continued market need to measure

media consumption

• Neutral, objective third-party

measurement becoming even

more important

• New technologies and

methods required

• Contract expansions possible

• Synchronized content

across all screens

• TV ad servers allow targeting

and creative optimization

• Advertising on EPG

• Transactional use by micro-payments

and subscriptions


Only very few MR companies fulfill the success

factors to cope with these developments

Independency Portable and

residential

people meter

Granularity

(data integration)

Out of Home Quality

Single Source End to End

Software

Software to

measure digital

Speed

Key success factors


We have created a unique integrated package

to address the evolving market needs

GfK Value Proposition

GfK Package: Mandatory for single source and cross media measurement

Independency

Meter Technology

Able to measure second

by second covering all devices

Real Time Ratings

Continuous data delivery

IT-/Operational Infrastructure

(e.g. Mongo Database) Enabling the

management of big and different data sets

End-to-End Software

One platform for production,

reporting and advertising

Unique

GfK

Package

Key

Requirements

Granularity Speed Quality


We continue to invest in state-of-the art technology to stay

relevant for our clients and keep our competitive edge

Further enhancement and completion

of device measurement

To deliver granular and robust insights

for niche services and long tail

To assign usage information from external and

inhomogeneous data sources without individual

usage and demographic information

Router

technology

Return Path Data

Integration

Viewer

Ascription Modelling


Content






GfK Supply Chain Management Insights for the IT industry:

Navigating successfully the end-to-end value chain

Navigating the end-to-end value chain

GfK Supply Chain

Management Insights

GfK Product Catalogs

In depth "Information Management" on SKU

Level along the end-to-end Supply Chain (Vendor,

Distributor, Reseller, Retailer, End–Customer)

GfK Distribution

"Order Management & Logistics Optimization"

for driving an efficient go-to-market strategy

on SKU Level

GfK Point of Sales

"Sales Management & Marketing Optimization"

for managing margins & demand

GfK Forecasting

"Volume Management & Sales Planning"

across categories & countries for optimizing

order behavior and stock levels

31


The different players in the IT industry benefit from integrated

insights and services across the whole value chain

GfK Product

Catalogs

GfK

Distribution

GfK Point

of Sales

GfK

Forecasting 31

OEM/Vendor

Sell-through pricing POS premium Stock levels "Fiscal year effects"

B2B/Customers B2B/Large Enterprice SOHO&SME

E-

Commerce

Mass-

Merchan-

diser

CE

Stores

Telecom

Retailer

Office

Retailer

Computer

Retailer

SH

SME

Se

ll-O

ut

Se

ll-T

hro

ugh

Sell-In

Customer demand Street pricing Seasonal effects Channel structures

SH

Large

Enterprice

Assortment structures

Order behavior

Distribution & Sub-Distribution (Broadliners, Special-Distributors, Value-Added-Distributors)


The industry we are targeting with this innovative

offering is highly attractive

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3D Accessories, 3D Printing Devices, Amplifier, Analog Cameras, Audio

Conferencing Systems, Audio Home Systems, Audio Tapes, AV Mounting Solutions

and Furn, Bags and Cases, Battery Charger, Binoculars, Broadband/Voice, Cables,

Calculators, Camera Docking Station, Camcorder, Car Audio, Car Navigation, Car

Speakers, Car Vision, Cartridgespd, Cassette Decks, CD Rec Media, CD-Player, Coated

Paper, Comm. Cards, Communication Device, Copiers, CRT-TV, DATA-/Video-

Projector, Desk Computing, Dictation Systems, Digital Cameras, Digital TV

Accessories, Digital TV Sub., Disc Printers, Docking/Mini Speaker, Document

Shredders, DVD Recording Media, Electronic Flash, Energy Monitors, Ergonomic

Accessories., Facsimile, Films, Finisher, Games Software, Gaming & Leisure

Devices, GPS Receiver, Headphones, Headsets, Housings, Image Displays, Imaging

Accessories, Imaging Projector, Indoor TV Aerials, Interchangeable Lenses,

Keyboards/Piano , Keying Devices , Le isure GPS, Let ter ing Machines ,

Loudspeakers, Mainboards, M-Broadband Sticks, MD Rec Media, Media

Gateways, Mediadevices, Media Tablets, Memory Cards, Memory Modules, MFD,

Microphones, Multimedia-Devices, Mobile Computing, Mobile Enhancement,

Mobile Gaming, Mobile Tariffs, Monitors, Multidisc Drive Total, Music

Downloads, Office Paper, Personal Stereo, Phablets, Phone Device, PMP

Accessor ies , Po in t ing Dev, Portable Media Player , Por tab le -TV,

Powermanagement, Powerpacks, Printing Devices, Processor, PTV/Flat,

Radio Devices, RC Replacement, Receiver, Ringtone Downl., Scanners,

SEC-Devices, Scanners, SEC-Devices, SET-TOP-Boxes, Smart-Mobilephones,

Software, Storage, Telefonsystems, Tuner, Turntable, Universal RC, USB Memory,

VCR, Video Gaming Consoles, Video Player/Recorder, Video Tapes, Visual Cams

We were able to achieve a lot in 2014

More than 160 distributors are already

cooperating with GfK – more to come!

More than 600,000 different SKUs are processed

continuously covering 35 countries week by week

More than 400 technology categories are tracked

& available on SKU level on a weekly basis

Online & customized reporting is available

(all markets & categories) for clients & distributors

Benchmark reporting is set up for data-

providing distribution partners

Dynamic confidentiality rules guaranteeing privacy

protection following ADM & ESOMAR standards

+


These insights allow us to provide unique benefits to our

clients for marketing, sales and supply chain optimization


Content






Perspectives for Consumer Choices:

A clearly defined roadmap

Short-term Mid-term

Retail

Tracking

Audience

Measurement &

Mobile Insights

Innovate Our Core Offerings

Scale Our Growth Initiatives

Transform Processes

& Systems

• Close gaps in emerging markets

• Provide unique integrated client solutions

• Roll out new businesses globally

• Explore further attractive industries

• Automate and streamline core processes

• Leverage modern infrastructure and BA landscape

Launch new growth markets

(Brazil, KSA …)

Launch GfK Crossmedia Link

Get traction on initial MLI markets

Convert and further grow sales pipeline

Establish GXL in core markets

Secure additional markets/partnerships


Summary: We are convinced to have strong growth

perspectives in all segments of Consumer Choices

Growth levers for Consumer Choices SCHEMATIC

Today Retail Tracking AudienceMeasurement

Mobile & Locationinsights

Mid-term future

AM/

MLI

Retail

Tracking

Core Panels

• Innovation

• Gap-filling

New Panels

• Launch

• Rollout

M&A

Core Markets

• Innovation

• Digital/Mobile

New Markets

• Currency

Business

• GXL

Digital Factory

Geographic expansion

• Core markets

• Different operators

Combination of

measurement

approaches

• Network-centric

• User/device-centric

• Content-centric

Integration

with other data



SHAPE FOR GROWTH BASED ON

SOLID FINANCIALS Christian Diedrich, CFO

January 2015


Sustainable profitable growth targets supported

by solid financials

Risk management

Managing risk appetite and risk exposure

• Investment grade rating

• Maturity profile

• FX sensitivities

• Hedging strategy

Competitive cost structure Resource allocation

Drive profitable growth

• Sector CC through investment in new business

• Sector CE through shift to higher

margin global products

Portfolio management

Shape

for growth

based on solid

financials Driving profitability improvement

• Global standardization

• Supply chain

• Capacity/Utilization

• Management by affordability

• Offshoring

Shift from top line to bottom line focus

• Acquisitions

• Strategy focus on organic growth

• Asset based targets

• Divestitures

• Sale/Closure of non strategic/

underperforming units


GfK aims for a balance sheet and a finance structure

corresponding to an investment grade rating

• No official rating of GfK, but since 2010 banks are considering GfK as “investment grade”

• Equity and long-term liabilities are covering around 90-100% of the long-term assets of GfK

Guiding rules for investments, M&A and dividends

• Deviations from investment grade KPIs only acceptable for 1 year

• IFRS Net Debt/EBITDA under 2.5 (investment grade)

• Dividend payout ratio within the corridor of 25% – 35% of consolidated income

Investment grade

EBITDA interest coverage 21.5

Non-Investment grade

11.3 7.0 4.9 2.2

AA A BBB BB B

IFRS Net Debt/EBITDA 1.0 1.6 2.3 3.3 5.3

Long-term Debt – EMEA Median

3-y average 2010 – 2012

S&P – adjusted key industrial financial ratios

12.4 1.85 GfK as of 9/14 IFRS


Net debt further decreased in 2014

2009 2010 2011 2012 2013

2014 (q3

estimate)

CAPEX in € m 49 49 63 71 80 <100

M&A in € m 58 41 15 107 38 10

IFRS Net Debt EBITDA

IFRS Net Debt/EBITDA 3.14 2.19 1.63 2.40 1.90 <2.00

500 429

364 467 428

159 196 223 195 225

Net debt to EBITDA (IFRS) should not exceed 2.50 – investment grade


Maturity profile has been improved by Schuldschein transaction

and extension of Revolving Credit Facility (2019/2021)

Debt maturity schedule and total available funding

• Currently the Revolving Credit Facility of € 200m is used as backup line

• Long term funding via € 125m Schuldschein > 5 Years

• Renegotiation of Bond (€ 200m) or equivalent funding alternative will start in 2015

• Refinancing cost of Bond will be reduced due to lower interest rate and credit margin

Bond Bank loans Schuldschein floating Schuldschein fix Available lines/RCF

0

250

500

750

2014 2015 04/2016 2016 2017 2018 2019 2020


FX sensitivities: How do moving exchange rates affect

GfK‘s top line?

1 Please note that sales in a currency do not necessarily reflect sales in the respective country as contracts are not always based on local currencies

What a 10% rise of a currency means for GfK’s sales figure

2013 Sales in € m1 Influence of 10% rise

Group 1.495

EUR 697 -

USD 261 1.7%

GBP 150 1.0%

CNY 42 0.3%

CHF 39 0.3%

JPY 37 0.2%

RUB 30 0.2%

BRL 25 0.2%

• Only USD and GBP influence GfK‘s top line by 1% or more

• 75% of GfK’s sales are in EUR, USD or GBP

Update on Russia – Risk Mitigation

Around 2% of total sales are in Russia

Early 2014, local cash was transferred

to GfK SE via dividends or €- loans

Approx. 20% of the cash is kept in RUB

to cover local costs, 80% in EUR or USD,

to cover international costs (natural hedge)

International contracts should be negotiated

in EUR or USD


Policy for hedging of FX- Exposure

FX- Hedging principles in place

Natural hedges or net investment hedges whenever possible

Currency adjustment clauses to be negotiated

No speculation no Treasury transaction without an underlying business transaction

Concentration of FX- Exposure at Group level, centrally hedged

Translation risk is not hedged

Transaction risk hedged above € 100k equivalent per invoice, below € 100k no hedge

necessary

Hedging costs exceeding 5% p.a. subject to review


We reduce the complexity of our company network

End

Number of legal entities

Reduction Expansion Entities as at Dec. 31st

1

-21%

-20%

228 221 218

209

224

209 203 201

189 180

20

17 16

22 6

8 10 11

4

27 20

25 7

21

14 12

23

13

150

165

180

195

210

225

240

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

In 2015 we plan to eliminate further 12 legal entities


Big TAM contracts won in 2013 have required

significant investments

• TAM-contracts in Brazil and

KSA needed significant invest-

ment in panel build-up in 2014

• New business fields in CC

continue to trigger investment

• Continuous high level of

investment for IT-infrastructure

for ERP and CC business

• M&A placeholder at € 50m

(without "white elephants"

which are not foreseeable)

In line with strategy to focus

on organic growth

38 52

70 60

50

32 28

30 30

30

113

38 10

50 50

2012 2013 2014e 2015e 2016e

183

118 <110

~140 ~130

Business Expansion Replacement Financial (M&A)

[in €m]


Regular depreciation will continue to increase

due to investments

OT CE CC

16% 22% 35% 30% 26%

54% 54%

48% 57% 61% 30% 24%

17%

14% 13%

47 ~54

~60

~70 ~80

2012 2013 2014e 2015e 2016e

In 2015 – 2016 significantly

higher depreciation is expected

in CC due to

• Audience Measurement

projects

• StarTrack/Neo investment

of the past

• New business projects, e.g.

MI/LI

Higher depreciation in Sector

Other reflects investment in ERP

and IT-infrastructure as well as a

revised reporting logic from 2014

onwards

[in €m]


Procurement

Savings

Pipeline

Management

Utilization/

Resource/

Capacity

Management

Offshoring

Country

Portfolio

Product

Globalization

Project

Portfolio

Client

Development

Project Scope

Management

Project

Costing

&

Pricing

Management

by

Affordability

CE

Shape

Portfolio

Profes-

sionalize

Key

Practices

Manage

Cost Base

How we drive Sector performance in a challenging environment

Execution of

TAM

Projects

New

Business

RT Core

Business

Data &

Technology

Star Track

Process

Automation

and

Reengineering

Restructuring

of low

Margin

Businesses

CC

Focus

on growth

Profes-

sionalize

Key

Practices

Manage

Cost Base


Shape for growth based on a solid financial framework

– Aspiration

ONE GfK

Continuous improvement over time and relative to market and competitors

Operating profit margins

AOI margin 2016: 14 – 15%

Sectors

Growth Capital efficiency and structure Group

Outperforming organic

revenue growth

(GfK growth ≥ market growth)

Return on capital

ROCE 10 – 15%

M&A hurdle rates

payback period/IRR

Financial indebtedness

(IFRS Net Debt/EBITDA) <2.5

Dividend payout ratio

25 – 35%

Sector CC Focus on investment to drive growth

Secure high margin

Sector CE Focus on margin improvement

Stabilize top line


CLOSING REMARKS Matthias Hartmann, CEO


We support smart decisions through

unique data, innovation, expertise and insights

Our

data

assets

Other

data

assets

Your

data

assets

Unique data Innovation & expertise

Big data,

digital, real-time

analytics

Innovative

technology

platforms

Industry

expertise

Proven market

research

expertise

Smart data for

smart decisions

• Winning strategies

• Business

opportunities

Insights


CAPITAL MARKET DAY 2015

January 2015

capital market day 2015 - market research and user experience research … · 2015-12-04 ·...

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