Office Products
Penny McIntyre Group President, Office Products
Office Products Key Brands
Markers & Everyday Writing Highlighters Fine Writing Technology
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Office Products Goal
3 Year Vision: $300 - $400 MM Net Sales Growth
¾ Streamlined, competitive portfolio
¾ Category leader within key channels/ customers
¾ 4 Mega Brands That Matter (Dymo, Parker, Paper Mate & Sharpie)
¾ Robust innovation/renovation pipeline
¾ Engaged associates with single vision, clear strategy and commitment to win in the marketplace
Strategic Framework for Growth
Accelerate Growth Through Increased Penetration and Innovation
Leverage our global reach and supply chain
Accelerate ‘search and re-apply’ and ‘new to world’ innovation
Deepen connections to our mega-brands with our consumers and customers
Our Global Reach is Our Strength and Our Opportunity
3 Global Reach Equals Competitive Advantage
Our Global Network Our Market Share Leadership
EDW M&H ¾ Global supply chain Mkt Position Mkt Position ¾ Available in 136 countries NA - #1 NA - #1 EU - #2 EU - #3 ¾ Selling organizations LA - #2 LA - #3 in 43 countries ¾ Strong regional brands Mongol Technology Fine Writing Kilometrico Mkt Position Mkt Position NA - #2 NA - #3 Reynolds EU - #1 EU - #1 LA - #2 LA - #4 Esterbrook AP - #4 AP - #2 Berol
Sources: Global Industry Analyst Report 2008, 2009 52 wk Nielsen, NPD, GfK & customer POS, 2008 Prismacolor A&U study, Region estimates
Quick and Effective Search and Re-apply
Consumer Insight 2007-2009 Launches Results & Concept
EMEA FlexGrip Elite captured Consumer insight +5% Value Share in key markets in Year 1 #1 demand of ball pen users is writing smoothness
The innovation Profile (USA) Sampling flyer Television Profile UP +48% Identified a new pen Bic Atlantis down -10% and ink combination that lays down a thicker line yielding a smoother writing experience PR campaign In-store displays
Consumer researched U.S. Top tier results Incorporated innovation into Profile pen
Sources: 2009 52 wk Nielsen, NPD, GfK & customer POS
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4 Strong & Iconic Mega Brands
Awareness: 85% Awareness: 96% NA Trial: 45% Trial: 86% NA
“Share leader in value added Ball Point pens” “More Brand than Business” “Globally consistent, consumer preferred Brand” “Huge Global Opportunity”
Awareness: 75% EMEA / 84% China Awareness: 55% Trial: 38% EMEA / 52% China Trial: 27%
“The Most Widely Recognized & Used Fine Writing “Leading Labeling Brand throughout Europe” Brand in the World” “Master Branding across portfolio yields Impact “Ranked Among Asia’s TOP Brands in 2009 – and Preference” 57th out of 1000” Source: “Media Asia”, June 2009
Exploiting Untapped Potential Globally
Everyday Writing Markers & Highlighters Global NWL Market NWL Market Region Market Size Region Market Size Share Fair Share Share
NA $1,900M 21% NA $ 900M 67%
EMEA $2,100M 7% EMEA $1,900M 3%
APAC $3,300M 1% APAC $1,400M 2%
LA $ 800M 18% LA $ 600M 16% $1.4 Billion Technology Incremental! Fine Writing NWL Market NWL Market Region Market Size Region Market Size Share Share
NA $2,050M 7% NA $350M 8%
EMEA $1,200M 11% EMEA $800M 38%
APAC $ 400M 5% APAC $500M 29%
LA $ 150M 3% LA $250M 9%
Sources: Global Industry Analyst Report 2008, 2009 52 wk Nielsen, NPD, GfK & customer POS, 2008 Prismacolor A&U study, Region estimates
5 Everyday Writing
New Paper Mate Global Identity System
¾ Greater differentiation vs. competition
¾ Easier to navigate
¾ Greater shelf impact
¾ Greater design preference
¾ More appealing and approachable
¾ More emotional connection
¾ Greater brand equity
Current New
6 Faster Innovation with Greater Business Impact
2005-2008 2009-2010
New product launches 4 New product launches 10
Average # countries 2 Average # countries 12 in launch year in launch year
Time to be in NA Time to be in 2years >75% countries >75% countries
Average Year-1 Sales Up 2.5 X Average time to market Down 50%
Portfolio Expansion at Relevant Price Point
Product Portfolio To Fit Local Consumer Needs
OPP MPP HPP Products
Baracuda Kilometrico NP10 Emerging
Pen Style Comfortmate PM300 Transition
Flexgrip Elite 1.4 Profile PM Gel Developed
Availability Focus $6mm $8mm for example… Opportunity Opportunity Thailand Italy
7 Expansion of Portfolio to Leverage Our Footprint
Opportunity : +$6M expansion into pencils, Thailand pens and markers 81% of Business
Opportunity : +$8M Italy expansion into mechanical 52% of Business pencils, pens, markers and correction
Investing in Brand Building
8 Markers & Highlighters
Faster Innovation with Greater Business Impact
2007-2008 2009-2010
New product launches 9 New product launches 18
Average Year-1 Sales Up 4 X Average time to market Down 50%
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A Consistent and Refreshed Brand ID
Fine Writing
11 DISC END ‘09 END DISC Streamlined & Simplified the Portfolio DISC END ‘10 END DISC DISC END ‘10 END DISC DISC END ‘10 END DISC DISC END ‘10 END DISC DISC END ‘09 END DISC ‘09 END DISC
NEW ‘09
$18MM in non-strategic, low margin/low volume Parker line exits
Streamlined & Simplified the Portfolio
NEW ‘09
7 Platforms will be innovation and support focus going forward
12 Upgrading to Premium Products at RRP Higher Price Points $65 - 210
RRP RRP $ 42 - 55 $26-39 RRP RRP $24 - 30 $20 - 26 RRP $250 - 570
RRP $50 - 335
RRP $23 - 39 RRP $16 - 30 RRP RRP $10 - 24 $10 - 19 Jotter Vector Parker IM Urban Sonnet Premier Duofold
Building From Recent Success in China
Improved In-Store Experience
2009: 16 Shop in Shops 2010: 77 Shop in Shops 160 POS Upgrades 200 POS Upgrades + EMEA Coming Online
13 Successful Global Product Launches
2008 – 2010 Launches Three New Platforms Premier $7.5 Million Now 35% of Total Sales
IM $35 million
Designer: Urban $16 million Beatrice Fontana
Technology
14 Dymo Labeling Reframes Opportunity
Medical Testing in Patch Panel the United States Installer in Europe Uses 4,000 labels Uses 900 tape per machine per year cassettes per year
Power Users
Facility Security Uses 750,000 labels per year
Continuing Revenue Stream Plus Source of Innovation
Dymo Industrial – Partnership with 3M
3M AND DYMO INDUSTRIAL ANNOUNCE STRATEGIC ALLIANCE TARGETING ELECTRICAL MARKETS
Co-branded industrial handheld labelers to be sold via 3M distribution in North America, and key countries in Latin America and Europe
Volume Lift of 70% Accelerated International Growth
15 Dymo Endicia Postage
Online Professional Sellers and High Volume Shippers: $1.3 Billion in Annual Postage Printed!
Classroom Of The Future
Short Throw Projectors Interactive Whiteboards
Curriculum Content
Wireless Tablets and Panels Document Cameras
Student Response Systems
Innovation Delivering Full Suite of Interactive Teaching Solutions
16 Office Products Commitment
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