Beiersdorf Aktiengesellschaft (BEI) Earnings Call Transcript & Summary

Okay. I see that we can start. So good morning, and welcome to all of you to Beiersdorf's Capital Market Day. Well, that's a special day as it's actually a very long time, actually never, that we had such an event outside of the typical reporting pattern. So it's our pleasure to have you all here in the auditorium and, of course, with all of you in the webcast as well. We'll have an exciting sequence of events today. We are going to have 2 blocks of presentations. We are going to have 2 Q&As. So I'm really looking forward to that. And it will be our CEO to kick it off today. You all know Vincent, of course. Vincent has been Beiersdorf's CEO for more than a year now. Actually, he joined Beiersdorf in 2017 as a Board member in charge of the Beyond business. The Beyond business, I'm sure you know, comprises La Prairie, Derma and the plaster brands. And before joining Beiersdorf, Vincent worked for many years for L'Oréal in skin care. So let us now take a look at strategy and transformation, and I hand over to Vincent Warnery.

Thank you, Jens. Thank you so much. We are extremely happy to see you today. This is a premiere, obviously, but this will not be a [ down here ]. It will not be the last one. We are really happy to meet you. We know that you know very well the company. You've been following the companies for a long time, much longer than us in a way. But perhaps also you don't know us very well because based on a Northern German culture, we're not that transparent. We were preferring to stay alone in Hamburg. This is why today is a change. We want to create a stronger, I would even say, intimacy with you and be sure that you know our brands, that you know our company, that also you know the leader of this company. So what I'm going to do now is to take you during the next 30 minutes into 4 different points. I want to talk about our transformation because we are transforming this company, which is today is celebrating its 140 years. We are transforming the company in order to deliver an ever stronger results and even stronger performance. And this is why also I will take you through the update on C.A.R.E.+ to show you not only what we have done, but also what we are doing. We will then spend a few minutes on external growth and spoke -- speak briefly about Coppertone and Chantecaille. And then I know you're waiting for that, to give you a guidance not only for the quarter, not only for the year, but also medium-term guidance. So when I took over the Beyond brands -- Beyond Blue (sic) [ Blue & Beyond ] brands in 2017, I was able to experience pretty quickly a pretty good performance with the brand. Of course, 2020 had been -- impacted La Prairie, but being able to overperform versus the market and especially in the last 18, 24 months to really become one of the best growth driver not only of Beiersdorf, but also in comparison with the rest of the industry. And the recipe was pretty simple. I'm a strong believer in the fact that beauty brands should be globally driven, that we are not in a world that this requires to be locally driven, to be close to local consumer needs. I believe that in the beauty world, there is no consumer needs which are not fulfilled. We are creating consumer aspiration. And this is why being able to have a top-down approach on beauty no matter the retail environment of the brand is making a difference. As a consequence also, this global leadership of the brands led to having much bigger innovations not only because they were better, but also because of the fact that everybody had to launch them and put full energy behind those brands, make them also bigger. And one of the best example, and we've been repeating that again and again, is the launch of Thiamidol, which was clearly a game changing for Derma. We are also much more ambitious in terms of white spaces. While over the last 20 years there were no significant launch of derma [ oils care ] brand in the world, we decided to attack the biggest geographies. We launched Eucerin in Brazil in 2019. We launched Eucerin in China in 2020. And after 3 attempts, which were failures, we were successful. And also, this year, we are launching Eucerin Sun in the U.S., the U.S. end market being by far the biggest sun market in the world. And last but not least, digital. Even before COVID obviously facilitated the development of e-commerce, Derma was extremely strongly sold online. And you will see later that it has become the biggest growth driver of our online business and one of the best-performing brands in the market. So what do we want to do with the team on NIVEA is to, in a way, use the same recipe to build -- to regain what this brand used to be. When we were marketers a few years ago in another company, NIVEA was the brand to follow. It was the brand that was inspiring all of us. And every time NIVEA was launching a new product, we are saying, damn, there is -- they're always coming with something new. And this is something that we want to recreate on NIVEA and being sure that we overperform the market and get back to this leadership in growth that we used to have in the past. So our transformation, what it is. First, it's important to remember -- and again, it's great that we can have you here in the place where everything started 140 years ago. We are proud of our heritage. As a matter of fact, we invented modern skin care. NIVEA was the first mass market or accessible modern skin care brand, created in 1911. That's, I think, well-known. But perhaps what you don't know is Eucerin was the first ever derma cosmetic brands [ we ] created. Hansaplast, 100 years ago, we created the first plasters. And Coppertone was not belonging to Beiersdorf at this time, but Coppertone invented U.S. sun filters and was really the pioneer in sun protection in the U.S. So we are proud of this heritage, and we believe that it's important that we regain, say, what we used to be, the leader in modern skin care. We are also in a changing world. Yes, obviously, COVID, the lockdown in China, war in Ukraine, material price increase, but also the fact that there are a lot of new competitors. Of course, you know the usual suspects. You follow them also. They are there, and they are strong. But there are also some digital brands. There are also some own labels. There are some private labels. And this is obviously something which is making the competition even fiercer. And we need to react, we need to leverage any opportunity to grow in the market. We were not that good in the past, and this is something clearly that you know even better than me that I can read in each and every report. We were fragmenting our attention. Too many small launches, too many local launches, was -- objective was more to please the local country manager than to please the local consumer. And I think this is something which has meant that we launched a lot of things. They stay on shelf a few months and then disappeared and making the feeling that we were not innovative enough. This is something we want to change. Why do we want to change that? We want to become not only the leading skin care innovator, but we want also to outperform the industry by 2025. So what does it mean [ concretely ]? The first thing is very simple: make NIVEA a global brand again, to be sure that there is a top-down guidance of the brand. And this is why, together with the Supervisory Board, we created for the first time this position of President, NIVEA. Grita is not a CMO. She's a President, NIVEA. And she has the full authority on the brand not only on the launch plan, not only on the communication path, also the way we drive the brand across the world. The second element, I mentioned that already for the Beyond brands: fewer, better, bigger. Fewer, clearly, we will decrease the number of initiatives. Better because by focusing more on those initiatives and spending more time on fine-tuning them or sharpening them, they will be better. Bigger because everybody will have to launch them. We are moving away from the traditional opt-in approach of Beiersdorf where every country could decide what to do. Everybody will launch everything and maximize the support behind the brand. We are also in a world where, again, when we were marketers 20 years ago was pretty simple. We had to shoot a TV commercial, 30 seconds TV commercial, put on air 8:30 and then hoping that it will sell our products. We are in a world, and you know that better than me, where the move to digital even more and the complexity of the digital world is asking us to change the way we drive communication. We want to develop best-in-class communication. And we have this acronym, OTIF, on time in full. What does it mean? It means that we have to deliver in full to deliver all the digital assets that are required. It's, again, moving away from the one TV commercial. For the biggest campaigns, we are delivering 70 digital assets because the way you will communicate on TikTok, on Google, on Amazon, on Tmall is different. 70 digital assets, and also on time because we had also a habit of delivering the material -- the communication material a bit too late to the countries, which was, of course, a fantastic opportunity to show their own TV commercials and to increase nonworking media. That's ending. And from January 2023, we will deliver global communication package. And last but not least, being much more daring in terms of white spots. Also in the past, we did open new countries with NIVEA but often 1 or 2 categories, often deodorants and shower, often in emerging markets and not really attacking the big markets. We have an ambition for the U.S., for China, for Brazil, for India. This is where the skin care market is obviously the bigger. This is also a red ocean, but this is clearly where we will make a difference in terms of growth for the brand NIVEA. So that's our transformation. And why do we want to transform? Because there is clearly the C.A.R.E.+ strategy. I'm extremely attached to this strategy. I was member of the Board already when we designed this strategy together with my colleague. And I believe, and I hope I will also convey this message in the next few minutes, that we picked the right development pillars and that we are delivering against our promises. The first one, win with skin care. You will not be surprised. This is absolutely essential, core to Beiersdorf. We are the only company being absolutely focusing on one single category, which is skin care, and this is how we want to win in the market. We are already strong. When you look at the number of positions of NIVEA across the world in each of the categories, you see that in most of the cases, we are #1 and we are #2. There are some categories, for example, body, for example, lip, where clearly, we own the market. This is clearly most of the #1 and #2 positions are owned by NIVEA. But there are other markets and 2 particularly where we can do an even better job. Men, for example. Men, yes, we are #1, #2, but there is a huge opportunity there. And I was probably the only French guy happy with the championship final in Paris because we were having in front of us Liverpool against Real Madrid, both clubs that we are sponsoring. So we're at least sure to win. And this partnership, which started already 15 years ago, is also a fantastic opportunity to target consumers across the world: in the U.S., in Brazil, in China, and this is something we'll leverage further particularly with new digital projects. Face care. Face care is the name of the game. This is the objective -- the #1 priority for the company, the #1 priority for NIVEA, launching successful product. I will come back to that. Entering new markets and China is a good example, and being sure that we are bringing the added value that our R&D center is able to deliver. But you're seeing also is a very interesting case. Here, we are historically very strong in body, and it's mostly driven by the U.S. and by Europe where we are market leader. But also, over the last years, we invested a lot on face care in China, in Thailand, in Latin America also, and we became one of the key leading brands into this category. Sun care, also very strong in Latin America, very strong in Germany. But the new frontier for us is, obviously, the U.S., the biggest sun market in the world. And we are entering this year with Eucerin Sun, and Patrick and Oswald will give you some news. But what is the best example I can show you in terms of success story? And I know that we are a bit hammering this W630 Thiamidol in every call because this is a fantastic success story. I mean I come back to my first comment. There is no consumer need linked to hyperpigmentation. I mean nobody is waking up in the morning saying, "I have an issue of hyperpigmentation." But we created a consumer aspiration. We told the story about hyperpigmentation. We told the story on different brands, talking about luminosity of the skin with La Prairie, talking about hyperpigmentation on Eucerin, talking about luminous skin on NIVEA with more affordable positioning. And the good news is that we made a fantastic success story. We will sell this year EUR 250 million of W630-related products. And you must know that this figure is not including China Mainland because until mid of 2024, we cannot launch this product in China Mainland. But already, China cross-border e-commerce is already the #1 country for W630, and this is why we believe that these figures will continue to grow in the years to come. So a great success story started with R&D here in this office, just a few floors above. They found this molecule out of 50,000 compounds, and they made the success that we have today both on NIVEA, Eucerin and La Prairie. Second element, win in white spot. I wanted to zoom on 3 countries. The U.S., for example, we are successful, but we were small. I mean the size of the market is so huge. So yes, we have a very strong NIVEA body and men. We are a strong position there. We have a fantastic Aquaphor. For the ones who know a little bit the U.S. business, this is a jewel, a huge profitability, growth every year and a brand which is really absolutely amazing and without competition. We recently -- we launched Eucerin 3 years ago, and we are gaining market share every year. And obviously, La Prairie, but Patrick will come back to that, where we have a strong position. But we are currently transforming this brand into an extremely successful brand in the market. That was not enough. And this is why the acquisition of Coppertone was a game changer not only because we could buy a brand, an iconic brand, a brand, as I said, invented the sun care market in the U.S., but also because we just had to wake up the Sleeping Beauty and this brand had been losing market share year-after-year for 12 years. And we shuffled this brand, and Oswald will talk about the latest news. What also we got into the package was a fantastic top-of-the-art R&D center. We had a beautiful R&D center that Bayer gave us together with the brand, and we were able to transform this Coppertone R&D center into a broad sun and body research center based in New Jersey. And this is thanks to this R&D center that we were able to launch Eucerin Sun because you might know that the sun -- the U.S. sun filters are different from the one that we have in Europe. So you need to have the local know-how in order to develop a proposal which is validated by the FDA. So we launched Eucerin Sun. It would not have happened without the presence of Coppertone. And the last news, the last kid on the block is the acquisition of Chantecaille, a beautiful brand. I think you will discover that, perhaps for some of you, later in the booth. Beautiful brand in this huge space which we could call premium skin care between the derma and luxury, and we are -- clearly have a lot of hopes for this brand. So U.S., clearly, we have a multi-brand approach, which is paying off. China also. China, same story, perhaps less successful on the left side with the big and the unique exception of La Prairie, which is, as you know, extremely strong in China. We had the NIVEA business, not the most premium one, not the most online one, but we had something in face cleansing and men. And we had also Maestro that we got together with C-BONS when we bought these brands a few years ago. That was clearly not enough to succeed. So we have an interesting approach, First, we developed -- in 2020, we created in the middle of COVID a R&D center in Shanghai, and we are focusing on Asian skin care. But also, we relied on partners, and I will come back to what we are doing with Tmall with Tmall Innovation Center so in order to develop the right innovation. Because what matters, and this is the right part of the slide, is to develop a portfolio in premium skin care. It's about Eucerin. Patrick will describe that later, but we are extremely successful with Eucerin in China. We are very successful with NIVEA LUMINOUS, again, only in cross-border e-commerce. And just for your information, cross-border e-commerce, it's 8% of the total e-commerce in China. LUMINOUS is already the #1 country for NIVEA. So very successful in NIVEA LUMINOUS with the price positioning, which has nothing to do with the legacy business on the left. And also, a lot of hope with Chantecaille, currently only sold online cross-border that we want to launch in China Mainland. So what is interesting also that we were able to reinvent a little bit the operating model. Beyond the silos, La Prairie, Derma and NIVEA, here we said we are too small to divide our strengths. So we're going to put together the skin care experts of La Prairie, of Eucerin, of NIVEA and work together, of course, together with R&D, in order to develop not only the new products which will fit Chinese consumer expectations, but also to prepare the big Chinese launch of W630 when we'll get the regulatory approval. Second element also, we are also very proud to be the only global skin care company having a double captainship with Tmall. So we are a big data captain or big data for Tmall, its 900 million consumers, which are covered by Tmall. So we have access to the data. But also, we are also captain in everything, which is about innovation, agility and e-commerce effectiveness, to be sure that we have the right positioning, the right concept, the right advertising campaign. And the products you see on this page on the right part are the products we are launching right now and which were created thanks to this partnership with Tmall. There is also a country which we are very interested in. India is clearly a success story. We created the first Indian business in 2006, and it was a very smart approach launching a new category one after the other, opening a new factory. And today, what is absolutely amazing is that we are the #1 trusted skin care brand in India. So is it good? Yes. Is it enough? No. There is -- and you will not be surprised if I tell you that there is one big piece missing: the face care market. 27% of the market, the third biggest emerging market face care and we want to be there. We want to launch NIVEA. Of course, we will have to reinvent a specific offer. We cannot do a copy-paste of what we are doing in Latin America or in Europe. But this is for us a new El Dorado, and this is clearly a country in which we want to invest in the future. So a lot of opportunity in white spaces and clearly the ambition to target the places where it matters. Last thing -- the third thing, sorry, digital transformation. And I think -- and I appreciated in your -- in most of your paper that you saw the success and transformation of Beiersdorf in terms of online growth. So we are not only growing every year double digits. But also first quarter 2022, we were overperforming the market and overperforming our peers, which was the first time it was happening. Growing globally, but also growing on each and every brand: growing on NIVEA; growing on La Prairie; Eucerin, which is the biggest online business we have in terms of share of sales and growth; and even Hansaplast, growing at 48%. We are growing everywhere, and we are growing double digit in each and every geography, building on partners. I mentioned Tmall. I could mention Amazon. But also some dedicated specialist partners like shop-apotheke, for example, in Germany. But online is not only about the e-commerce. It's something also we discovered, and you may say we discovered it perhaps a bit late, but we discovered precision marketing. Again, far away from the idea of having one TV commercial for everybody. Over the last 2 years, we've been able to move dramatically on investment not only from TV to digital, but also from digital traditional to precision marketing. And precision marketing is an interesting story because we are able, thanks to the digital media and also all the data available, to deliver a targeted approach which target -- to targeted customers. I give you -- I will give you 4 examples. South Africa, W630. We became #1 face care brand with NIVEA in South Africa by delivering specific messages for mature skin, for pregnancy-related issue, for sun-exposed skin. And being able to deliver specific execution, specific campaigns with specific media, as a result, sell out plus 60%; and media efficiency, so the cost of GRP, minus 24%. That was a great example in South Africa. But also, again, if I come back to India on the more -- on the core product, which is NIVEA Soft, here, so the target audience was reduced, if I can say so, for India because we are talking about students -- college students. But here, we were able to adapt to media pressure to the importance of regional influencer. So when we had a strong regional influencer, we are putting more media but also distribution of the product. And here, we were able to increase sell out by 97% and improve the efficiency by 13%. Another example also close to here in one of the frustration -- one of the historical frustration that we were not market leader in Germany was NIVEA in sun. Last year, we developed an approach, again, building not only on very different targets: could be sport, could be family, could be festival. So I think we had up to 240 executions. And also being able to adapt our media presence to the temperature, so above 15-degree, and to the sunshine. So being really able to have something which at the end did not only improve dramatically our market share, so we gained almost 2 points; but also improving the efficiency, so the cost of delivering this message, by 50%. And last but not least, very interesting also, again, a core franchise, Q10 in the U.K. Here, a lot of execution, 300 execution, different target groups. And also here, plus 20% sell out and minus 50% in terms of cost, so plus 50% efficiency. Last but not least, sustainability. Sustainability is very close to our heart. When we developed our pledge 2 years ago, we thought we are perhaps going a bit too far. We promised to deliver minus 30% CO2 emissions '25 versus 2018, having in mind that we are also growing. And the good news is that we are delivering against this promise. We are -- last year, we delivered minus 12.7% CO2 emissions. This is 4x what you will see with our competitors, so minus 12.7%. And which means 42% of our [ engagement ] -- our commitment is already delivered in 1 year. So we will clearly deliver 30% less CO2 emissions in 2025 versus 2018. How do we do that? There's a clear simple story, which is the 3R rule. Every time we do an innovation on NIVEA, but also on Eucerin and even on La Prairie, reduce, recycle, reuse. So with reduce, for example, any shower gel you find today has 25% less plastic. When you look at recycle, we were the first big beauty manufacturer launching a 100% recycled aluminum range, so on men and on shaving and on deodorant. And also, we recently launched a very interesting eco refill on soap. You just have to put a tab in lukewarm water, you shake it and you have hand soap product. So that's what we're doing, but we're also doing some interesting thing. This is something I find extremely interesting and a bit technical. It's a new method, in fact, for making use of carbon. So we collect carbon dioxide at locations like industrial chimneys. It is then fermented, and this is processed into cosmetic ethanol. And we use this ethanol as an ingredient in a new moisturizing balm that we are launching in Germany. So this is the kind of thing we love to do with the idea, clearly, that we have also a very precise road map. We are doing everything we can to reduce the CO2 emissions, and I come back to this minus 30%. So obviously, it means that we have to measure the CO2 emissions we are doing for each and every product, each and every factory, each and every range. We reduce dramatically the CO2 emissions, coming back to the 3R. And then what is remaining, because we cannot go to 0 emissions, we are financing specific [ forestation ] projects in order to be able to offer to consumers climate-neutralized range. And you will see for example later the example of NIVEA Soft. So all of that is our strategy. This is the C.A.R.E.+ strategy. We believe that this is the right strategy for Beiersdorf. We believe also that we are delivering against this strategy, and this is why we will continue and succeed with this company. If I -- you could remember 4 big ideas. The first one is win in skin care with W630. The second one, white spot. This is the U.S. and the launch of Eucerin Sun in the U.S. Digital, you saw the use of precision marketing and the dramatic increase of digital spendings behind the brand. And sustainability, we are delivering against our pledge. Also, acquisition. It's true that we had this history of C-BONS and perhaps we overplayed it a little bit because -- and I'm sure you know the market better than me that you can quote a lot of big companies having successfully integrated and grown Chinese beauty brands. If you have some names, we'll be happy to listen to them. At the end of the day, we have a fantastic brand which is called Maestro, profitable, growing market leader. We have a fantastic factory in which we can produce tomorrow's skin care, and this is, I think, a pretty good legacy. This being said, it took us 10 years to go back and to be more daring in terms of acquisition. We bought Coppertone, filling this extremely important hole in the portfolio in the sun U.S. market. And we had recently the acquisition of Chantecaille. Together with that, we have also a venture capital, and I'm sure that in one of the next calls I will be happy to share with you a few ideas. So where are we there? I will not spend too much time because it will be presented later by Oswald and Patrick. Super happy with Coppertone. We turned around the brand in '21, first year since 2012 where we gained market share. We are launching now -- right now a fully revamped packaging. So really because there had been an addition of different renovation, but creating kind of messy look of the brand. And we are also changing our factory. It used to be produced in the U.S., moving to Mexico to benefit from a much, much better cost of goods. Chantecaille, you will also discover the brand later. We are extremely happy with the new kid on the block, and we are expecting a lot. And when I see, Patrick, the sales of May, I feel extremely optimistic about this brand. Fantastic complementarity to our portfolio between Derma and La Prairie, great opportunity in the most important skin care market: U.S., Korea and China. So a lot to do. We have the family with us, the family Chantecaille, and this is something where we have a lot of hope. So this is what I wanted to share with you, but I will not let you go without updating you on the guidance. So regarding the Q2, we have a very good performance on NIVEA with skin care being -- performing faster than personal care. And the trend is led by sun care and by face care. We have a tough second quarter on La Prairie, but Patrick will give you some already first figures of June. And we know that the model of the brand and also the history of the brand makes us optimistic not only for the semester we will be positive, but also for the Q3 and Q4. Derma is flying. This is why based on those good news, we are expecting mid-single-digit growth. But now we want to be more specific. It will be at the upper end of -- upper end for consumer in Q2. First guidance. The second element was on the guidance for 2022. Yes, there was a lot of questions in your reports about the price. It was very interesting. Grita and Oswald, we got yesterday the April market share, which is very good because this is the first market share where there is a true price effect, the true implementation of the price increase that we have put in place since the beginning of the year. The good news that we are growing strongly, but Grita will say more, in units and value. So we can clearly say that at this stage, both in emerging markets and Europe, we are not suffering from any issue linked to the price increase. That's very important. Second element, you know that Shanghai and Beijing are reopening, and we have some good news both on NIVEA, Eucerin and La Prairie. And you see also that Derma is flying. So what we are doing is we want to slightly update our guidance for the full year 2022. It means that for the Consumer segment, we will end the year with -- at the upper end of mid-single-digit organic sales growth for the full year. And I confirm loud and clear that we maintain our guidance to deliver a slight EBIT margin improvement supported by pricing, mix and efficiencies. So for the total group, this means that the sales growth will be at the upper end of mid-single digit for the full year. Last but not least, it was also the #1 promise of this Capital Markets Day, the medium-term outlook. So when we look at the situation, the success of our brands, when you look also at the ability we have to deliver -- to go beyond the price increase, we see that consumers like our product. We see that the implementation of C.A.R.E.+ initiatives works and is paying off. We want -- we will continue to grow above market with each and every brand. And we still have, as you know very well, a lot of money to invest in M&A. This is why combined with our progress in mix, pricing and efficiency, we want to increase consumer EBIT margin by at least 50 basis points per annum from 2023 onwards. On top of that, at the same time, with the set of measures, we want to lower the tax level under 28%. So this is what I wanted to share with you today. I'm sure there will be some questions here in the auditorium and later in the room, but I wanted to give you a perspective on Beiersdorf. Thank you so much.

Thank you, Vincent. So we are now moving into the brand section actually, and we will be starting with Patrick Rasquinet. Patrick had been CEO of La Prairie for more than 10 years after a number of positions in the Beiersdorf's world, including North America, Brazil, Russia, South Korea and Belgium, his home country. So now he's a Member of the Executive Board, and we will hear from Patrick about La Prairie and Derma, our very successful consumer businesses beyond NIVEA. Please go ahead.

Thank you, Jens. So good morning. Good morning, everyone. Indeed, quite a premiere for this Capital Market Day at Beiersdorf, but also a premiere for me. So very exciting moment, I have to say, for me. And also first time to meet all of you physically, so I think it's great. We had the chance to talk virtually in the first quarter report. But now it's really great to have an audience as well. It's not so common today to have an audience listening to your presentation. So allow me to bring you into 2 absolutely beautiful brands of the portfolio of Beiersdorf. I will unfold many different reasons. I will talk to you, first, about La Prairie. La Prairie, which is definitely the most desirable, the most exclusive, the most luxurious skin care brand that is out there in the world. I will bring you through maybe a few topics. The first topic I would like to bring you through is the -- to explain to you a little bit the ecosystem that we have built around La Prairie in the last 6 years. And then I would jump in and zoom in into 2 strategic markets for us, which is China and United States. Then I would like to address a specific point, which is the local clients everywhere in the world. So let me bring you into the ecosystem of La Prairie. So we started our journey back in 2015. And why these numbers are 2015, 2021? Because we started our road map 2020 back in 2015, and it took us this 5, 6 years to establish where we are today with the La Prairie brand. We started reducing our assortment. We buy around 50% on the period 2015 to 2021. In skin care, we moved from close to 100 SKUs to less than 50 SKUs. And if you go back even to 2010, we had back then around 150 SKUs in the portfolio. So you can imagine that we reduced by 2/3 the assortment over this period of 10 years. We did this also by [ accretive ] innovations. We increased prices. We trade up our clients from lower collections to the more prestigious collections. You may know some of them like Platinum, like Caviar, like Gold collection. We launched very innovative products, and here on the picture, you see 2 of them. One is the Skin Caviar Liquid Lift, which is a real icon for the La Prairie brand. And you have the latest collection that we revamped, which is the Gold collection with refillable vessels. And this allowed us to increase the average price per unit sold from around EUR 220 to EUR 420. So we increased the average price of the unit sold by 70% over the period 2015, 2021. It means that the average basket probably of a consumer is today at EUR 1,000 or more at every single purchase. This we did at the same time as cleaning the distribution and operating in a fully curated distribution today. We reduced our distribution by 60%. It means we reduced the number of doors we have from around 5,000 doors worldwide to 2,000 doors today. So you can imagine, of course, that while we were reducing this distribution, the only objective was to make sure that we provide the right environment for our clients, meaning in a store design that is really adequate in expressing the brand values. Also making sure that in every single door, we do have beauty adviser able to advise the client. But also by offering cabins, treatment cabins, and I'll come back to this treatment cabins a little bit later. And of course, obviously, and you may also say maybe better now than later, but indeed, we started really expanding our online business. It took us time to really understand how to express the brand online the same way we want to express it off-line. We found the right formula now, and now we are really expanding in this channel online. So during this period of 6 years, you see that it was all about reduction, about making sure we offer the right distribution, the right assortment and the right service -- exclusive service to our clients. But in this period of time, we multiply the sales by 2 and we multiply the EBIT by 3, showing that it was definitely the right formula. And this put us in a unique segment of the market, which is the most luxurious part, the über luxury part of the skin care market. And this we did as well by refusing to enter any promotion, refuse to enter in any special aggressive initiatives to promote the brand. And this is one of the reasons why in 2020 when the COVID arrived, that we suffered. We do not behave with the same code as the skin care industry. Our business is about luxury. It's the luxury. We are a luxury house in skin care, which is totally different. It means that in 2020, we were not scared not entering in any promotion just in order to compensate sales. We care about the brand equity, we care about the value that we give to our clients and this is all what count. We work for the long term, and it proved to be successful. So this is to set a little bit the scene for the La Prairie business. Now let's zoom into the 2 bigger strategic markets of La Prairie. You see here this is a projection. So we are not talking about the past anymore, but about the projection '19, '25 of the premium skin care market, the projected skin care market by Euromonitor. And this is the premium skin care market is around EUR 80 billion. And you see here that China will represent 40% of the total premium skin care market; while United States is still maintaining a good position, being the second largest market in the world, with a 14% share of the total premium skin care market. So I'll dive in now into China. These are the numbers of 2021. You know that in China, we operate in different channels, the first channel being the department stores, and I'll get back into more details later, where you see that La Prairie outpaced the market growth in 2021. Then we have a little bit similar to the department store but this is the stand-alone boutiques, and we have in La Prairie around 30 stand-alone boutiques in China. So these are really boutiques that are fully operated by La Prairie, not depending on the retailer. So this is typically in a big shopping mall. You may know some of them like ifc. And there as well, you see that we have grown quite dramatically with a growth of 59% in a market that is growing by 41%. And of course, the third channel of distribution extremely important in China is Tmall or the e-commerce. We started first with our own e-boutique, the La Prairie boutique. Very successful, really making sure that we were offering also the right environment for our product to be displayed online, and then we moved on to Tmall. And you know that we moved on to Tmall in late 2020, but we did this extremely carefully, carefully in the sense that they have to respect our brand guidelines. We are controlling the full brand assets. We are controlling the way it's distributed. We are controlling the service that is provided to the clients, the way we deliver to the client white-glove service, secret code service to make sure that you deliver to the right person, special packaging and so forth and so forth. And you see here that in 2021, the market is at 23%, and we outpaced the market by 209%. Finally, travel retail, and I'll also get into a little bit more detail of travel retail later. Of course, everybody knows here Hainan, a little bit the miracle that happened that could compensate the rest of the world in terms of travel retail, the market growing at 21% and we grew by 111% last year. So of course, Hainan very important, but not only Hainan. There are some other point of sales or some other doors in China that are extremely important for travel retail. I'm thinking of the airports of Shanghai, airports of Beijing, Hangzhou and so forth. So maybe let's dig in into the brick-and-mortar or department stores and boutique footprint that La Prairie has in China. Now I'm really entering into the reason why we believe there is a huge potential still for La Prairie in China. In the market in China, in the local market, we do have 84 point of sales, so 84 doors. So you can imagine that at the scale of China, 84 is extremely small. Majority of our competitors are rather on the 200 or even more doors in the market. And these 84 doors are in 37 cities. And when I say 37 cities, you can immediately connect to the classification of the tier cities. So Tier 1 city, if I'm not wrong, there are 4 cities. You have 15 new Tier 1 cities. And then you have around 30 doors -- 30 cities at Tier 2. And then you have T3, T4 and T5. So the total of Tier 1, new Tier 1 and Tier 2 cities is 49, 49 cities in total, and we are only present in 37 cities. We want to build our distribution up to 120 doors by 2025, meaning nearly increasing our footprint by 50%, and to reach out still focusing on the Tier 1, new Tier 1 and Tier 2 cities, so not yet touching the Tier 3 cities. Next to this potential, of course, I mentioned earlier, we have some online business, and we want to explore further opportunities that the online business is offering in China. We are only with our own e-boutique and Tmall, as I said earlier. And then travel retail, we believe that Hainan will continue to grow probably at a more moderate pace nevertheless, but still growing. And surprisingly for us in Q1 and Q2 of this year, we are growing low double digit in Hainan, so despite all the lockdown and the peculiar sanitary situation that China is facing today. So this is for the brick and mortar. If we move into the online world and more specifically on Tmall that we launched back in 2020, it was a very, very important tool for us to step in. Why? In fact, 66% of the clients we have on Tmall are new clients. These are clients that were never exposed or purchased -- exposed is not the right term, sorry, but never purchased the La Prairie brand. So 66% of new clients. So it's clearly a platform where La Prairie recruit. On top of this, 30% of these clients are coming from cities where we do not have a counter. So it can be Tier 2 cities. It can be T3 cities. So we are reaching out, of course, much further or farther than what we can do with our brick-and-mortar doors. And interestingly, the client profile of a Chinese client of La Prairie is 3 to 4 years younger on Tmall than on the local market -- I mean, on the brick-and-mortar business. So 3 to 4 years younger. So clearly, with the online business, we are targeting much younger consumers. And very interestingly and thanks to an incredible CRM tool that we're having but also thanks to the agreement we signed with Tmall, we are collecting all client data of our Tmall business. And when we drive these clients onto the off-line, we managed to multiply the average annual spend of every single client by 4. So this omnichannel approach is definitely a real success for La Prairie. So this is about the online opportunity that we still have. Then -- and by the way, just to give you maybe some numbers on Tmall. You know that Tmall is rather flat today in skin care in China. We are growing still by over 50 points in the period January until end of May. So let's move now to the world of Hainan. Hainan, I mean, some numbers are just incredible. You know that in 2021, we had 81 million single visitors in Hainan. So it's a huge window, I mean, for any brand to be present in Hainan. Hainan is a little bit bigger than the size of Switzerland. So sometimes people believe it's a small island. You have a few casinos and a few shops. But it's a huge territory, mainly separate in 3 cities and 2 major cities where we have today 11 doors. So we adapted very quickly and we opened 11 doors. Nevertheless, when I say we expand quite quickly, it's always, again, respecting the brand guidelines: the brand equity of La Prairie, always making sure we have our store design, that we have all beauty advisers, that we are able to provide the service in a cabin and also making sure that we are able to collect data. So what we did there is to create also kind of an ecosystem for the travelers to Hainan. We connect with them, before they travel, through several apps that are existing like, of course, WeChat, but also [ Red ], for example. We connect with them whenever they come into our stores in Hainan, and then we connect them with their local counters in their local city. So we have a loop, if you want, where we bring back this traveler from Hainan into the counter in their original cities. So it's also, of course, a very important platform for us to recruit, right, so in the same line as Tmall. So let me give you maybe some flavor on the China COVID situation. Of course, you know April, May, severely hit by COVID, especially in the big cities like Shanghai, Beijing, Hangzhou. We had around 15 doors, in average, closed, which represent 27% of our business in China. Fortunately, our warehouse could reopen quite quickly. We had incredible dedicated employees sleeping at the warehouse and still working to make sure that they were able to distribute in the [ full country ]. So Q2 definitely will be negative, no doubt about this. However, I would like to give you some signals. And you know that back in 2020 when the COVID hits the Chinese market, as soon as the COVID stops, there was this, what they call, this revenge purchase. The Q2 of 2020 showed numbers like plus 45% or plus 57% even in Q3. We expect the same in 2022. I would like to give you just one number. This is the Shanghai. This is the one week sales of the first week of June in Shanghai. Despite the fact that the footstep or the foothold, the traffic in the doors, is only at the level of 30% versus previous year's same week, we were able to generate a sales 20% higher than the same period last year. So quite impressive. A lot of shops are delivering directly to the consumer. You don't need even to go to the shops. I think it's -- the last numbers I've seen is between 50% to 60% of the business is delivery to the clients' home. So we are quite optimistic even to deliver a positive first half with La Prairie, and we expect a very strong rebound in Q3 and Q4 for La Prairie. Allow me now to move to the North American market. There, we have clearly an acceleration of the La Prairie business, and this is mainly based on 3 pillars. The first pillar, and this is unique in the skin care industry, we are able to capture client data in every single door. And when I mean every single door, it means doors from retailers like Nordstrom, Saks, Holt Renfrew, Bloomingdale's and so forth. We are the only company, the only beauty brand that managed to capture client data in the retailer's door ourselves. We do not depend on the retailer. So we have our own client data in every single door, and this is absolutely an incredible power. Just to give you 2 numbers here. The average transaction spend, so we -- after we implemented this system in Nordstrom, after a certain period of time, we noticed that the average spend increased by 61% just by establishing this relationship with the client. Same in terms of items per purchase. We increased by 47%. So this is the first pillar but the most important one. And we know this -- this is a learning from the COVID: be connected, engaged in your clients and maintain this relationship with the client whatever happens outside. Second pillar, new store design. We have now around 55% of our distribution in the United States with the new store design. We have already 30 doors equipped with treatment cabins. And this is another very interesting number. Whenever we have a client or, let's say, a prospect coming into one of our cabin, you have 65% chance that this client will buy. So this is an incredible tool to really make people buy the La Prairie brand. It's to live the experience of La Prairie. And then once you live it, you are convinced and you purchase. So we plan, of course, to expand this new store design from 55% up to 95% by 2025. The third pillar, and this you will not be surprised, this is the digital pillar. We will expand our online footprint. We are entering into an agreement with NET-A-PORTER. We will start our cooperation with NET-A-PORTER that belongs to the Richemont Group as of July 1. And we are also now implementing, and this is quite unique as well, online beauty advisers for each online retailers. So we have beauty advisers answering the questions of the clients that are buying even on nordstrom.com, bloomingdales.com and so forth. So dedicated beauty advisers. So this is about North America. What I can tell you is that year-to-date, we are growing over 30% in North America, so quite outstanding numbers. This is clearly much faster than any competitor in the distribution where we are in, and this is around probably 15 points faster. And last but not least, it's even faster than the overall premium skin care distribution in the United States. So all these learnings that I shared with you and also this potential we are showing you in North America and China is also valid for all the other markets in the world. And I would like to get to my last slide in terms of learnings for us, and this is really focused on the local clients. COVID taught us that you cannot -- it's very volatile world. You cannot rely necessarily on travelers. You cannot rely on Chinese traveling to all the countries. You cannot rely only on brick and mortar. So you need to have, of course, a very strong omnichannel approach. But what we did, by negotiating special deals with all these retailers that I just explained, like in North America or in travel retail, we do the same with the retailers in Europe. And I think there is no one in the industry that can say that they have managed to get client data capture on their own with retailers like Douglas, Marionnaud and so forth in Europe. So we focus on the local clients. We make sure we connect, we engage, we build this relationship with every single client. We know every single of them. So Europe is also now on its growth way or path, and we strongly believe that we will reduce our dependency on the Chinese consumers also by enforcing this overall approach outside China and North America. So let me summarize in a few words what I just introduced to you. We have a unique and strong brand equity. This is unparalleled. We have the most luxurious brand out there. We have an incredible ecosystem that allow us to negotiate striking deals with retailers. We have a massive growth potential in China. We only have touched a fraction of it. And when I say a fraction, I will just give you one number. We have today in China 100,000 clients. And you all know, I assume, how many high net worth individual there are in China: over 5 million. So the sky is the limit. We are accelerating our North American business, and we will leverage our client data capture, our CRM programs that are quite unique in this industry to leverage the local clients everywhere in the world. And of course, we will continue to enlarge our digital footprint, and you have seen the very successful example of Tmall. But also that we are entering in new agreement with NET-A-PORTER, for example, but even further you will see soon. So this was about La Prairie. So I think I need a little breath before moving into Derma, which is a totally different business. So Derma. When I arrived 1 year ago, I have to say I was totally astonished by the passion of the people that were animating the employees of the Derma brands of Eucerin and Aquaphor. It really surprised me, and I understood very quickly that Eucerin is not a simple cosmetic brand. It's a brand that is addressing real issues of real people in life. And everybody I've met, and I've witnessed a few testimony from customers -- consumers, a mother that was really desperate because her baby was crying all night suffering from eczema, we are able to help her, to support her to solve the issue of her baby by treating the eczema of the baby. Or another example of a person 25, 28 years old suffering from very dramatic acne. It is terrible, and we are also able to support her, to solve her issue of acne. So we feel like we have a mission with Eucerin to really solve the issues of people and to change their lives. We believe in the life-changing power of dermatological skin care. All our teams are motivated to really discover products that are able to solve people's life. And I've witnessed this and it is absolutely incredible to see all our employees, our R&D people working just to find products that can help people. I would like to focus today on 3 areas, and you know that the Derma strategy is very aligned with the C.A.R.E.+ strategy of Beiersdorf. I will focus on innovation on one side very quickly, then I will move to win in white spots and then in the digital area. You've seen in the presentation of Vincent that we really leverage this incredible innovation of Thiamidol. We started in the anti-pigment, and we became the absolute #1 leader in this market in hyperpigmentation and even skin. Then we start to leverage in other segment of the markets like antiaging, but we also start to enter in other categories like sun or like hand care. But now, lastly, end of 2021, we move -- well, we didn't move -- we added to our blue ocean strategy the red ocean by entering in the protected garden, as we say, of our largest competitor. We entered into the acne segment with Thiamidol. Leveraging this innovation of Thiamidol, they developed a product that is fighting post-inflammatory hyperpigmentation, and these are the post-acne marks. You know these marks that after having acne, you have and that stays forever. They developed a product addressing this topic. You may know as well that acne is the #1 indication in the dermatologist office. So it's really one of the biggest territory in dermocosmetics. With this revolutionary product, we were able to provide an efficacy that was unseen in this market. And you see here a very simple picture of before and after treating these post-acne marks. We are, again, changing the life of our consumers. And it pays out because immediately, you see the results. We have, in a very few period of time and I'm talking now a few months, climbed a few positions in the acne segment in Europe. But not only in Europe. I think the growth in Europe was spectacular, moving from the fifth position to the third, for example, in United Kingdom. But we had spectacular results in Latin America or even in Thailand or other Asian countries. And I'll give you the example of China in a second. I would like to move now from innovation into win in white spots. There, clearly, and Vincent also addressed it earlier in his presentation, we decided to focus on 3 huge dermocosmetics markets: Brazil, China and U.S. Let's start with Brazil. In Brazil, you know that we were present until 2017, then we exited the market. We were really unsuccessful. But we decided to come back with a totally different approach in 2019, and we decided to do in a very focused approach. Why focused? Focused because we entered only in the face care category and really focusing on Thiamidol, so on hyperpigmentation. Focused because we decided to enter only in 2 states in Brazil: the state of São Paulo and the state of Rio de Janeiro. We wanted to make sure we are successful in these states before doing anything else. And the third focus is focusing on the power of the digital distribution in Brazil. So thanks to this very focused strategy, after 1.5 years, we became the leader of the hyperpigmentation segment in Brazil. We are the #1 brand in the even skin category. We are today part of the top 3 recommended brands by dermatologists in Brazil. We are now expanding thanks to the success we are having in Rio de Janeiro and São Paulo. We expanded now in Minas Gerais. And after Minas Gerais, we will go to the [ 9 other states ] and go nationwide. In these 2 states, we managed to gain incredible number of positions and entering in the top players in the derma cosmetic arena. Next stage and go nationwide. In these 2 states, we're managing to gain incredible number of positions and entering in the top players in the dermocosmetic arena. And finally, in terms of digital leverage, already 25% of our business in Brazil is done online. We are now opening even our Eucerin boutique online in Brazil. Let's move to the Chinese example. As also Vincent said earlier, we are only on cross-border online platform. Recently, we launched the spotless brightening serum. And in a very short period of time, we became the #1 serum sold on cross-border on Tmall online. Thanks to this product, thanks to the penetration of Thiamidol, again, we are able to increase the brand awareness and the brand desirability of Eucerin and this is a very good preparation to what's come in the future for us in China. And then last but not least, you all know we entered one of the biggest sun markets in the world with Eucerin Sun. Of course, it's very early to give you numbers. But we got extremely good welcome from the trade. We built up distribution very fast with some very good planogram. We are already in CVS, in Target. But in Walmart as well, we have reached a level of weighted distribution of around 60%, moving up to 70% in the coming weeks. Of course, the investment will start now. We got very good reactions from the consumers, very high rating as well on the online rating platforms but also dermatologists starting to recommend the Eucerin brand in the sun category. So let's move to the last part of this focus area, which is digital. You know that, obviously, e-commerce is very important like for anyone else, and Eucerin is the brand having the largest share of its business online within the buyers of portfolio. We're already above 20%, 21%, 22% of our business worldwide that is done online. This is thanks to our rollout of own Eucerin boutique in many countries in Europe, to start with, but also 2 deals that -- agreements that we have signed with, as you said earlier, as well shop-apotheke. But this is one thing. This is the e-commerce. I would like to talk to you about 2 touch points that are different than the online e-commerce. This is the dermatologist and the consumer. We use digital as well to connect with the dermatologist, and you know that they're extremely important to recommend our brand to the consumers. We have what we call IQMED. IQMED is a e-detailing tool that you remember that detailers, they used to go with their books, with documentation sitting in the waiting room of the dermatologist, going into the room of the dermatologist speaking 5 minutes selling your product, then, okay, hoping that he will recommend your product to the next patient and then moving out and of course, meeting the 15 other detailers from the 15 other brands waiting in the waiting room of the dermatologist. We have changed this totally. With this tool, we are able to connect and to engage with the dermatologist. We know what kind of patient he is treating. We know what kind of skin disease he's dealing with. We know also what is his interest. We connect him with the -- with conference. We connect him with KOL. We connect him with our scientists. So there is a real relationship being established with the dermatologist. So we make sure that we are always top of mind in the mindset of the dermatologist and that he is recommending our brand whenever he is dealing with issues that we help him also in terms of information. The first numbers are spectacular. I don't want to spend too much time on this chart, but the engagement we have is by far beyond any of the standard practice or benchmarks. It's really incredible. We have really changed the way we work with the dermatologists. And the last example is the example of dermanostic. And I don't have my iPhone. I would like to show you, I think, the iPhone. Thank you, Vincent. This is an investment we did in a German start-up doing an online consulting tool in the area of dermatology. You have an app on your iPhone. You have an eczema or acne. You take a picture on this app, and it sends directly to the dermatologist that in a certain frame of time, we'll come back to you and give you advice, maybe prescription, all online. Of course, the intent of being part of this program is not to control what the dermatologist is prescribing, but it's to get to know what they prescribe, what is the regime, what are the disease that -- the skin disease that he's currently treating. So it's an incredible source of information for our marketing team. So these 2 tools, the IQMED tool and the dermanostic tool are like precision marketing, if you want, this is our CRM with the dermatologists. So it's an incredible source of information for us to drive our business in the future. So this was it for the presentation of derma. Maybe just -- sorry. You have understood that we are very ambitious with Eucerin. We want to be, by 2024, the second billion brand in the portfolio of Beiersdorf, and we want to claim this #2 position in the market by 2024, so a very ambitious program for Eucerin as well. So thank you very much for your attention. So -- and I hope you will have the chance to discover as well the La Prairie, Chantecaille brands later in the booth. Thank you.

Thank you, Patrick. So we are now opening the first round of Q&A. We have microphones in the audience. They are just arriving. And I can see the first hand. Please always just wait to have the microphone before speaking, so we have everything also on the webcast. Please go ahead.

I'll start with 2. I've got lots of questions because lots of stuff, good stuff there. The boring question, I guess, in some ways, the 50 basis points on the margin progression from '23. So 1 question is, is that '23 that you're going to have 50 basis points of increase, is that the current base case?

Yes.

Okay. And then, I guess, the time frames, so in the current base plan, is that 2 years, 3 years, 4 years, 5 years of circa 50 basis points every year? Go on. Do you want to get that one -- get the first one? And then I have a follow-up.

To comment, I'll leave it open and you also heard my comments, at least 50 basis points. So we have some room to grow. We know also what to do, working on mix, working on pricing, working also on efficiency. We just released the first-ever early retirement program of Beiersdorf ensuring also that we have new people joining company. So we are clearly willing to act also on these elements.

Okay. Great. And then I guess related in some ways, the level of A&P in '21, I think, circa 1.7 billion. And then SG&A was sort of 365 levels, both a bit of a step-up with sort of a bit of volatility around COVID. But is that the new base level? Because I guess a lot of what you talked about all seems quite expensive in many ways, lots of things you're targeting. So is there another jump to come within that framework? Or is that where you start and then we should progress from that base?

No, I think the 27% of A&P, we believe, is the right ratio. And we look at the portfolio of Beiersdorf and the size of luxury versus mass market versus dermocosmetics. We believe 27% is right. You understood also that the work we have been doing over the last year is to decrease dramatically nonworking media to the benefit of working media and also to move from a traditional TV buying into digital media into precision marketing. To your perspective, the efficiency moving from traditional TV to precision marketing is 100%. So for each euro, we have 1% more efficiency than what we used to do with TV. So this is why 27% is the right ratio. SG&A, because also we want to act SG&A while obviously growing this ratio is happening -- will decrease obviously.

Chris Pitcher from Redburn. Encouraging that your M&A is part of the growth story, and I appreciate Astrid isn't on the stage. But can you give us a sense of how much extra resource you've brought into your M&A department? Because after a 10-year hiatus in M&A, I imagine perhaps it slipped as a core competence of the group.

It's a very good question. There was a huge improvement and huge professionalization between what we did at Coppertone and what we did at Chantecaille. [ I must say ] at Coppertone, we didn't dedicate a team except, of course, the head of M&A, and we saw clearly that it was good enough. This is why we have put on Chantecaille a dedicated team. There is obviously a full-time post-merger integration manager, is a veteran of La Prairie. We have dedicated resource in legal, in finance, in tax so -- of course, working also with external partners. So we have today a team, which is able to take over any new M&A projects coming to the market.

And forgive me, but can you give us a sense of the pipeline of how -- what sort of visibility, how many sort of active engagements you're in, in terms of M&A to give a sense of whether that pipeline has picked up in the last 2 years or...

I'm absolutely unable to tell you or unwilling to tell you because, obviously, first, I want to succeed with Coppertone and Chantecaille and have really to demonstrate our ability to develop that. And then we are looking at a lot of options. One of you gave us a very interesting list of 50 options. And some of them, we know. Some of them, we are looking at. So we will -- we have the money as you know. We have now the professionalism to make it happen. We have the support of Supervisory Board. So we'll act, obviously, in the years to come, but I don't want to commit neither on percentage or timing.

Guillaume Delmas from UBS. Two questions for me, the first one on the white space initiatives. It's often a double-edged sword in that there is a short-term boost to top line, and then eventually things unravel and could end up in profit warnings. I mean, you -- Beiersdorf experienced this in 2007, 2009. So my question is what gives you confidence that this time around, this is not going to happen, that is not going to be the typical cycle of SKU expansion followed by some rationalization and that because it's quite expensive to fund these white space initiatives, you're not going to end up underfunding your core business?

No, I mean it's -- just look at the recent past, we created NIVEA Face Care in Brazil, and we financed that within the P&L of Brazil, an emerging market, and we didn't do any profit warning. Launching Eucerin Sun in the U.S. is not a walk in the park. It's a huge investment. We are financing that with the P&L of Derma, and you didn't see any profit warning. The thing we are doing, which I think is a pragmatic approach, is what we did on Derma and Patrick was alluding to that. When we are not sure of succeeding immediately because we had the track record, which was not that successful, we said, okay, in Brazil, we're going to focus on Rio de Janeiro and Sao Paulo, 50% of our market. But this is a reduced area. And we -- and if it works, we expand. In China, we don't go off-line. We go only online and we go only with Tmall and then -- because it works, then we open to JD.com and to other suppliers -- other partners. So we are doing that in a wise way, being sure that we don't burn money before being sure that we have a winning proposal. So we feel pretty secure not only in what we are doing to [ know ] but also the project I was mentioning, for example, in NIVEA Face in India.

And then my second question is on the margin guidance you provided for 2023 onwards. Why would you provide a margin guidance? Because it's -- in the last time Beiersdorf did it in 2019, you ended up withdrawing the margin target, almost regretting it. So again, why this time around is not going to curtail necessarily your P&L flexibility particularly against an incredibly volatile, unpredictable backdrop, like doesn't put Beiersdorf at a competitive disadvantage to have this ambitious margin guidance? And also internally, doesn't it confuse a little bit your employees about top line expansion, aggressive white space? Or is it about significant margin improvement?

I think it's a great question. I think we, perhaps 3 months ago, will have been not in a position to give such a guidance because there was still big question marks, one of them being the lockdown in China impacted NIVEA but even more La Prairie and also the ability of NIVEA particularly to sustain an extremely dramatic price increase. And many of you were doubtful about the ability of the value for money in NIVEA to be able to sustain the price increase. We can today say positively, and you will see also in the Q2, that we are ticking the box. We are able to compensate or to recover from the lockdown in China. And we see today in emerging markets over the last 6 months and in Europe over the last 2 months that we are able to go through a price increase, first thing. Second thing, the dynamics of the business. We are coming to a moment when Derma will be -- is profit accretive. We are coming to a moment when emerging markets are becoming also very positive in terms not only on top line but also on bottom line. We are also coming at the moment when you develop NIVEA skin care, more NIVEA skin care than NIVEA personal care, you have a big difference in terms of gross margin. We are coming at a moment when moving the factory of Coppertone from Cleveland to Mexico has also a huge effect on the profitability. Also, we are also willing, and that's a common objective of the Board, to be much more daring in terms of looking at efficiency. So I mentioned the case of digital media, but I'm also -- clearly have in mind the people, the headcount, the fact that, in some areas, we have been growing headcount without challenging really the need of having an increasing headcount in region, in Beyond, in Blue, in headquarters. So all of that is making us feeling not only safe -- or not safe but safer, but also committed to make it happen and to go to a level of profitability, which is the profitability we should reach knowing the size of Beiersdorf and the business in which we are. So this is why we feel today, this is the right moment. And this is why also we wanted to have this Capital Market Day, to make a commitment in front of you with a new Board of Beiersdorf, with also the support of the Supervisory Board to commit in front of you in this direction.

Okay. We have an early hand here also -- exactly 2 early hands here.

Bruno Monteyne from Bernstein. A bit similar going back to in history and trying to understand what went wrong before we give credibility to the new promises. You sort of admitted to being quite slow on a few different things, whether it was China, sort of e-commerce, precision marketing, premiumizing NIVEA. So there were quite a few transitions you missed. Understand you're fixing them today. There's going to be new opportunities, new things changing. What was wrong at Beiersdorf culturally or structurally? And how are you dealing with that kind of probably cultural lack of capability to give us more confidence that the next transitions you'll be ready for them?

That's a great question, Bruno. Let me give you a few answers, what I feel also being in the company since already 6 years. I think what happened in the last years was perhaps too much decentralization, too much localization, too much local choices at the expense of the global dynamics of the brand. This was clearly the case on Beyond, and I fixed that already 5 years ago, and we are fixing that on the -- on NIVEA having a much stronger drive and a much stronger also top-down approach. I think also we were not daring enough. I think the example of white spaces is a good example. We could have indeed attacked those big markets that Patrick was describing a long time ago. The competitor, you know very well, did that 20 years ago. We did it, but we didn't do it really well, and then we decided to exit before really proving that we could do a better job. I think we would have been either both more daring and also more patient because you don't enter a market like that. Coming back to your comment. We lose money when you enter a new company. You don't make money immediately. So I would say it's a mix of being too much decentralized and being not daring enough in terms of big bets. And this is something, by the way, the Supervisory Board is pushing us to bet. When I took over Beyond, I was clearly asked to invest, to put money on Derma. Europe finance, in fact, the growth of Derma because we created a full infrastructure, and you see today the results. So this is why I think today that we have proven that it was working. And we feel more stronger. We feel more daring in our ability to go to the extra -- to run the extra mile.

But sir, a follow-up on that. If it's a lack of being daring, there can be like a cultural trade. How are you thinking about your incentive schemes and the objectives of your teams to make sure they remain daring? And actually thinking back about that margin, 50 basis points a year, could be actually limiting their willingness to be daring because they got a big margin target around their head.

No, I think the -- first, the way we are incentivized as a team, there is a mix. In fact, you have 2 package. One is about the transformation of the company and the ability to deliver against these 4 big pillars I was mentioning, why we need skin care, we need white space, sustainability and digital. And if we deliver, again, this transformation objective, then you have the usual KPIs about net sales, EBIT and market share. So that's very -- that's the way we address. So profit is part of that and growth is part of that. So I think we have the good mix of being not too much short-term minded because, again, if we miss the C.A.R.E.+ transformation, we have 0 bonus after even if we triple the growth rate versus what was expected but also the fact that also we are also incentivized in growing the top line and the bottom line. And I think that's a good system. That's the LTI until 2024. Then after, we'll discuss about the years to follow. They are consistent also with the commitment I was making.

And so sorry, it's my last one, then I'm going to stick with capability. The previous person asked about -- talked about the previous margin history. I mean you had 2 margin reset, but what was remarkable for me was that the justification for the second one was identical to the first one. Nobody ever explained why you needed to do a second reset for exactly the same reasons. So that also at least show a lack of capability and finance planning, whatever it is within the company. So again, what are you changing to that capability? Because if they did a -- if they could be twice wrong, how much better the capability gives any confidence in that 50 basis points per year?

We are always smarter after, so it's also easy to criticize what was the reason why things were decided before. I clearly believe there are areas we underestimated I think we were perhaps too late, too slow understanding the fantastic dynamics of e-commerce. And I'm very happy that despite the fact that we perhaps started 6 years after the other big guy, we are now only 2 years late, so which, in a way, proved, and Grita will also share some good news in terms of recruitment that will show you also that we are willing to accelerate in this area. The other also areas where perhaps we didn't have -- needed the right capabilities in the country. I mean we mentioned Coppertone at the moment, where we integrated Coppertone. We didn't have the right capabilities in the U.S. And we learned the lesson. And I know when we integrated Chantecaille, we took the best people, not only of La Prairie but also of Beiersdorf, together with the Chantecaille family in order to succeed in the post-merger integration. So yes, it's a mix of capabilities and also perhaps in some areas, yes, a lack of flare, lack of understanding that something was happening.

Can we go to Harold down here? Sorry, sorry.

Jeremy Fialko, HSBC. So 2 questions from me. The first one is on W630. So it seems like this is the basis for really quite a lot of the innovations. You've given the data on the kind of the growth of the products behind that brand. So the question is to what extent do you think you're perhaps almost like a little bit over reliant on this sort of like wonder ingredient for a lot of your innovations. And then what sort of confidence can you give us that there are other similar sort of breakthroughs kind of coming down the pipeline so that you're -- you've got a little bit more of a sort of suite of ingredients that you can use rather than this one thing, which does seem to be the basis of a lot of your innovation at the moment? And then the second question is just a clarification on La Prairie. You spoke about reducing the weight of China within the sales. So will you -- is that implying that you think that actually the ex-China business can grow quicker than the China business over the medium term, just to clarify that, please?

I will answer the first question. Patrick will take the second one. The magic of W630, just to make it a very simple story, it's about difference of pigments. So difference of pigments, just when on the skin, you have different colors. So might be linked to the -- just yes, hyperpigmentation. This is the -- what, for example, Eucerin is claiming. Might be also age spots. Might be acne marks. So everything which has -- this different of coloration of the skin, which means that the sky is the limit. This is why also we have -- we started the story with Patrick in 2018. We have already a EUR 250 million business. We have China in 2024. So we are good for the next 5, 6 years. This is what I was telling the NIVEA team in terms of success story to build on W630. Are we working on another W630? Yes, absolutely. And this is also why we have also updated our R&D strategy. We are not only working internally here in Hamburg, just above us. But also, there is obviously the fact that we have R&D Shanghai, R&D New Jersey. Now they have the mandate also to work on that. And we are also developing much stronger. Again, Bruno, perhaps, we're a bit not enough open but open innovation. So we are working with partners in Asia, also in Germany in order to detect the next W630. So message is we have a lot to do with W630. And second, yes, there are some things coming. I mean you know also the way it works. Some of them will be -- will work. Some of them will not work, but we have some good reservoir, a good reserve of launches for the years to come. On La Prairie?

Yes. So what we really want to do is, as I explained in my last slide, is to reduce the reliance on the Chinese consumers. You know that a lot of countries in the world, be it North America or Europe mainly, we're relying on the Chinese consumers in order to do their sales. So what we want to do is to really to make sure that the local teams in Europe and North America are primarily focusing on the local clients to build a solid, stable base in their countries. And I've just shown the numbers on North America, where we grew year-to-date by 30%, which is clearly faster than the pace we are currently having in China. And we truly believe that we can replicate this in many European countries. I will not start entering in more details, but we still have a lot of white spots as well in the world. However, there is a fact, as you have seen, 40% of the global premium skin care market is China. And this -- we will definitely continue to explore the opportunities of the Chinese market, and I just gave the example as well of the high net worth individual versus the number of clients we currently have. So we will continue to explore in parallel. But clearly, we want a special focus on the local clients in Europe and North America to reduce this reliance on the Chinese clients.

Harold Thompson from Ash Park Capital. A couple of questions. The first one is on structure. I think there's an underlying current here where focus leads to better results, bigger a few ideas and so on and so forth. So if I look at, Grita, on NIVEA, it's pretty clear that you said it's all about the brand. There's a brand leader. It's not just a CMO. It's about everything. But your other brands, Eucerin, La Prairie and so on are also very important. So I wonder whether it's Vincent or Patrick, would it actually -- would make sense to have 2 separate leaders running the Derma business. I mean you said I need a pause, a breath before I go from La Prairie to Eucerin. So should -- does it make sense for those 2 to be really run together? Should it be separate? Would it not make your M&A integration and so on and so forth easier if that's going to carry on? So just a structure why is La Prairie and Eucerin still in bed together? And then the second one is on NIVEA. Clearly, you've shown the product mix. There's the skin care. There's the -- more the personal care part of the portfolio. I think it's 55, 45 or something like that, anyway. But how do you deemphasize the personal care bit? Although deemphasize might be the wrong word. Or had you not killed the personal care bit whilst putting all the efforts? Because often what happens is you do really well on the bit you're focused on, but the bit you're not focused on falls even faster than you ever thought, so net-net, you don't go anywhere. I mean it's kind of a big consumer goods company question really.

Yes. On the first question, this is clearly what we would like to do. The moment when I can kill the position of Patrick and have a big head of Derma, a big head of luxury, big head of NIVEA, that would mean that we'll have built a portfolio. I will not do that only with one brand in Derma, one brand in luxury, one brand in healthcare. Yes, absolutely. I think the concept of Beyond should disappear one day because these brands are no longer just Beyond Blue. They are their own autonomy. So yes, we are starting with La Prairie and Chantecaille. We have today 2 premium skin care brand. We have also some projects on Derma, so that -- we will go in this direction hopefully, pending also our ability to expand the portfolio. On your second point, it's a very good question, and it's very important to realize -- allow me to perhaps to make a difference within personal care. I see a difference between the order runs, which is today our #1 penetration tool, especially in emerging market, where we've been able also to develop the right industrial tool. We have huge factories in Brazil. We are also opening a huge factory in Leipzig. So we have mass, we have critical mass. We have the ability to produce to have the right ICPs, and we are winning in the market on the other hand. So here, it's a question of allocating the right amount of money, is perhaps more promotional than advertising in terms of mix, but we want to develop this business. The other businesses are much less strategic. Shower is not a strategic business for Beiersdorf. Hair care is not a strategic business for Beiersdorf. We have some positions in some countries and Germany, for example, for hair care, also for shower, but this is not something where we want. We have an ability to win. We don't have a unique innovation story. We are not big enough. So we will clearly privilege the profitability versus the growth in order to be sure that we invest on the right platforms. That's absolutely clear.

And just a tiny follow-up for Patrick. On Eucerin and Aquaphor, you talked a little about Eucerin. How does Aquaphor fit whether it's in the U.S. story or in your Derma portfolio? And how is it blurred between the 2 with Eucerin?

Right. So first, these are 2 distinctive brands. Clearly, we have the Eucerin brand and the Aquaphor brand. They both play into the dermocosmetics field, and they have their own identity, if you want, playing in slightly different segment of the market, a little bit like, I don't know, maybe you want to...

No. In fact, it's -- I tried something, and I'm not totally happy with what I did. I tried to also play Aquaphor as a sub-range of Eucerin. So when you go to a French or German or British retailer, you will see a sub-range, Aquaphor under the name Eucerin. It's okay-ish, but I think we can do much better on Aquaphor outside the U.S. So it's flying in the U.S. Great. It's okay-ish in the rest of the world. I'm sure there is a story that we can build behind Aquaphor as a unique brand also outside the U.S.

So it's a little bit confused.

Sorry?

It's a bit confused.

Yes, yes, it's a bit confusing. Yes.

This I cannot say in front of my CEO.

Yes, yes. It's just because the promise that was Aquaphor was offering could fit -- could be fitting with Eucerin. But it's not a huge success of us, so we can do better.

So I think we can still take 1 or 2 questions on what we just saw, NIVEA actually, Harold, still to come, but -- yes. But do we have any early hands we should take now? We have Celine. We have -- I see Celine. Yes.

So just a couple of questions. I mean, I guess, your share's up 7% since you started speaking. People have taken their own view on what you had to say about top line this year. But longer term, you talked about growing top line ahead of the market. Would you care to give any sort of indication as to how much outperformance we're talking here or what the medium-term expectation of your category growth is? Because we spent quite a lot of time on margin, but longer term, it ultimately tends to be top line growth that creates value. And perhaps anything more you could say on that would be useful. Secondly, Chantecaille, could you just, at a high level, tell us what would success look like. Three years from now, you're standing up on the stage. You're telling us what you've done with Chantecaille. What would you like to be able to say? And then perhaps just lastly, sticking with the M&A theme. For many years, previous Beiersdorf management teams talked up the scope for M&A to create value, but they never actually did any M&A. And after kind of over a decade of that, we've now seen 2 reasonable-sized bolt-ons in recent years. What's changed? Is it just that the asset availability wasn't there before? Or you've more able to make that strategic case to the Supervisory Board? Any insight would be welcome.

On the third point, sorry, I missed it. You're talking about M&A?

Yes. So for many years, we had Beiersdorf management say that they've got great M&A opportunities to create value, and then no M&A ever happened. And we heard that for over a decade, and you're actually doing M&A rather than talking about it. So I'd be interested to hear what's changed there.

Okay. Yes, go ahead.

Okay. Good. So the question on Chantecaille, so clearly, we were -- first of all, when we acquired Chantecaille, it's because we truly believe it has a tremendous potential. It has a beautiful positioning. It's a brand in the mainstream, if you want, also expressing a true belief in values like protection of the wild life, clean beauty, botanical ingredients and so forth. It's a brand that has been extremely well managed, I have to say, but still with very small capabilities and capacities. They expanded distribution very carefully. So they have today a very curated distribution, mainly in North America, a little bit in Asia and only 1 or 2 other markets. So the window of opportunity we have with this brand, thanks to the experience we have with the La Prairie brand or within Beiersdorf in different aspects, is enormous. So leveraging the structure, leveraging the capacity, leveraging the know-how we have in the selective market, we are convinced that we can bring this brand to a new level in the coming 2, 3 years. We will do this step by step like we did with La Prairie, and I would like to draw this parallel with La Prairie, where we build the business step by step, having in mind what we want to deliver the long term. So allow me not to disclose everything. But we only -- if you take the footprint, just take the geographical footprint. We're only in 5, 6 markets with the Chantecaille brand. But we know that people are looking for this brand. They are willing to buy this brand. So it will be a question of expanding. It will be a question of giving the capacities to structure maybe some of the functions like supply chain, like R&D and so forth and so forth. So [indiscernible]

On your first and third question. First question, I don't want to give you a guidance per brand, just the forecast today, the beauty market is growing 4%, 5%. This is on average what we have in mind what happened. You have plus and minuses depending on obviously of COVID, so we want to do more than that, simple. Then after, in the portfolio, obviously, I'm expecting more from Chantecaille and Derma than local brands in Germany. But overall, we believe that we will overperform this objective. On your third question, you're right. I mean I think we sold short ourselves because of this Chinese acquisition. In the last 3 years, we bought Coppertone. We bought Chantecaille. Just watch us. Just see if we are able to walk the talk, if we are able also as a team to convince the Supervisory Board and our shareholders that we have the capabilities. Come back to your question about the capabilities to integrate. We believe we do, but the jury's out. And the way we're going to drive the business not only of Coppertone but Chantecaille, we'll prove you but prove also to our Supervisory Board that, yes, we have the brain and the muscles to make it happen.

Let's have the last questions now on -- in this round. Celine?

Yes, Celine Pannuti from JPMorgan. So I want to come back on the first question on the top line. So you said the market is 4% to 5%. Then if I think about Beiersdorf over the past decade probably has struggled [ to even due to ] 5%. So why would -- I think you have quite a big exposure to mass market. So is it really 4% to 5%, your exposure because you're not exposed necessarily to more premium end of the beauty market? Let's say only a small part. So I just wanted to understand that and why you didn't choose to specify for your team as well internally a growth target while you choose to specify in margin target. Then on the margin, that's my second question. Is M&A included in margin? And what happened if there is a dilutive M&A? So that's a small one. But maybe more for 2022. You continue to see a slight improvement in the consumer margin. I understand that the mix is a big impact and La Prairie is not going to do well at least in Q2. So how should we think about that? Maybe is it H2 recovery that you expect? And so will there be an imbalance in the margin in the 2 halves?

On your first comment, I think it was on the slide and in my pitch also. We -- clearly, it's about growth. It's about the obvious growth that you know already, which is the growth of Derma, of La Prairie and soon, Chantecaille. It's also clearly about NIVEA. And I think one of you also in this paper mentioned the fact that was at the moment when we -- NIVEA grew, that suddenly the share price doubled. The Q1 results of NIVEA was very good. The last year results was very good. Let's see the Q2. But clearly, this brand, if we focus on the right categories on the right geographies is able to overperform their own market and -- but we have to show you that. On the -- that was the first question. The second question was? We're really sitting on an amazing brand. I mean, this brand has so much potential. I mean we keep saying the sky is the limit, but truly, I mean, think about it, NIVEA still has so many white spots. China, U.S. were very small. I mean if you think about the skin care market, and you know that most of these markets are still for us to take and -- so we will continue focusing on skin, not just on face, on skin. And of course, we want to grow our market share on face care. We know it's going to be tough, right? Because there are many people out there. But we feel, of course, that we have the equity that most skin care brands would die for. We will continue doing innovations while rejuvenating the core. That's really, really important. So we should always talk about both and make sure that both are strong, seizing some white spots, global brand leadership, increase our marketing effectiveness because I think as you can hear, we have some room in order to make our marketing more effective and more efficient. And then, of course, making NIVEA future ready. So thank you. I will now hand back over to Jens, and I'll be here, of course, for the Q&A and look forward to your questions.

Thank you, Grita. Okay. We today so far, heard about strategy. We heard about La Prairie about derma, about NIVEA. I think it's time also to take a different perspective now. And in a minute, I'm going to hand over to Oswald Barchkhahn. Oswald has previously worked in the U.S. and in Latin America and in Switzerland for JDE, for PepsiCo for P&G. He joined Beiersdorf last year. He's in charge of Europe and North America. And that's also the title of his presentation obviously. So I'm looking forward to hearing his view about the regional perspective. Thank you.

Hello, and good afternoon. I joined about 6 months ago, and my entire family already tells me that I look younger some my commitment to the company even increased in the last month since joining Beiersdorf and the team. You'll hear 2 sections from me today. I will give you a deep dive into the European business. And then I will also like to give you a little bit of perspective on North America. For Europe, it's predominantly NIVEA country. Just to give you that perspective, Europe, 90% of the European business is NIVEA when it comes to cosmetics. So I want you to keep that in mind as we go through it. And you will also see a lot of things coming back that Grita and Vincent alluded to. So as we all know, mother is the repetition of mastery. So we hope that some messages will land. But super excited to talk about Europe and why am I excited about talking about Europe because Europe, by any means, is the cradle of the company. It's where it all started. This is where the company was founded. This is where the brands were founded. This is the anchor of everything that you have seen today during the presentations. Not surprisingly, obviously, you have a business today in Europe that is phenomenal. It's not only 1 of the profit strongholds of the company, but it's also an absolute powerhouse when it comes to what it stands for. It's a brand that is penetrated in Europe with 52% penetration according to Kantar. There's only 1 brand with a higher penetration level in European households and that's Coca-Cola. That number is not much higher than that. Just to make sure I mentioned that as well. We obviously are the leading skin care brand in Europe based on market share. We have, by far, the highest purchase and loyalty data in Europe today. We have the single highest top-of-mind awareness aided and unaided, and when you think about what we call CCUs, which are country category combinations, the crossing of them, out of the 200 biggest country category combinations, we are #1 in 2 in 170 of those. And that's actually what we're ruthlessly focused on making sure that we permanently look at how do we become the #1 and/or 2 in the given categories in which we play in. When it comes to Europe, I would like to mention that we have obviously been looking at this business now since the longest of times, but we have also been making some adjustments in the course of the last few months. And this is why we call it revamped strategic priorities to accelerate profitable growth. I will take you through the numbers in the last few years. They have, by any means, not been stellar. And there's a few things that we want to course correct on the first one is face care, which is something that was already here before. We know that we have a #2 position globally. We also have a #2 position in Europe, and we do believe that based on our heritage, based on our equities and based on our innovation power, we absolutely have the right to become much better at that and aspire for more. Broader skin care is also where we need to win. I do think that it's fair to say that we have deprioritized in the recent past actually body, all-purpose creams and also face -- sorry, and also Sun to a certain extent. Some of it harmed obviously, by COVID. These things were going to be doubling down on, and we're already seeing first results of that. Not necessarily entirely unrelated to this is what we call the core, and I will talk to you about that as well. That has been something that is not working perfectly well in the past, and this is something we will focus a lot of energy on in the future. to drive the core assets, what Grita mentioned as being the icons of the company, we do think there's a significant upside potential by driving them much harder into the future. Revenue growth management and return on investment focus certainly will be right and center of everything we do, especially and most importantly, this year. I don't need to tell you how volatile the world is these days. I don't need to convince you that we need to take pricing and that we need to become much more diligent about how do we manage every single euro we put out there in the market to make sure we get the biggest return. And then one area that I will not keep that today, but just to repeat what Grita said, boosting digital and e-commerce is at the center of everything we do. It's 1 of the 4 pivotal parts of our Cares strategy, and we will make sure that gets executed across the board in every single brand in every single country. Let me take you back to the growth trajectory of NIVEA in Europe to my European business today. It's very clear that if you normalize the data of 2017 and you index them with a number of hundred, we had 2% growth in 2018. We had 3% growth in 2019. And then obviously, we suffered through the losses, mostly driven by COVID, 94 index in 2020, but also only in 96 index in '21. The refocus and the sharp strategies we have put in place very clearly, we think, are helping us to accelerate the business. If you take a look at the index of Q1 '22, which is on the right side, in the middle bar, we're seeing 5% like-for-like growth versus last year, and we're seeing a higher acceleration even for Q2 right now. And let me take you through some of the nuggets that we believe are working and give us a lot of confidence looking forward. Here again, master of the prepetition, face care. Last year, in 2021, we were the single biggest driver of growth in the retail channel in Europe. Number 1 contributor to growth, which is a great selling story to sell to the trade. So our salespeople are very, very happy these days. We grew the business of NIVEA in phase by almost 11% year-on-year. Along those lines, very logically, we have been growing penetration in the largest markets, be it Germany, France, which for the longest time, we have not matched to succeed in Italy and in Spain. And I think you heard a lot about Thiamidol, W630, LUMINOUS. This is a brilliant success story for Europe as well. It is the #1 serum in Europe today, which again proves the strength of the proposition, and we're selling this at a 5% premium versus the NIVEA anti-age average. So even within our anti-age platform, we managed to establish a price premium here as well. The second very important platform within skin care is body together with all purpose creams. And I would like to focus on the middle of the chart first. We have clearly made a conscious decision to invest significantly more in the last 6 months behind those platforms behind what we call a refreshed engagement model, leveraging everything you heard from Grita when it comes to precision marketing and also getting more and more into social channels that have even more relevance for the younger consumers like TikTok, for example. And the results have been following. In Q1 of 2022 on the left side, you will see that we have the highest ever market share in body in Q1 and the trend continues in Q2, if I may say. And we hold, by far, the #1 position in that segment, 3x the size of the next competitor. Equally on the right side of the slide, you will see that on all purpose screens, which is the classical blue team cream and our soft proposition. We're also here holding a very strong #1 position in the segment and growing a little bit more than 1.5 percentage points versus a year ago. Sun super excited to see the return and they come back after the COVID hit. You well know that this category is critical for us. We have, in 2021, had the strongest sales growth since 3 years. So we grew by 40%. The one thing that makes us even more excited though is that in 2021, we gained yet again, 2 incremental #1 positions in 2 critical markets for us. So we gained the #1 position in Spain and in France. And now if you take a look at the top 15 markets in Europe for Sun, we're leading in 13 out of the 15 biggest ones. Q1 obviously makes us equally happy. We're seeing that in Q1 2022, we're the #1 brand in the segment, 2x the size of the next competitor and expanding our share advantage by 260 basis points as well. And to close the loop on skin care, the last one, which is NIVEA Men, very, very important platform that I think is very, very close to my heart as well. We're expanding our #1 position here while also making the first entry into owning and growing the phase anti-age segment. Men are clearly lagging women in everything in life. We're lagging basically the face care development and anti-aging for decades, I would say, the time has come now for us to actually establish this segment and actually educate men that they can also look a little bit better than yesterday. You can see that we've been gaining share for the last 3 years. We grew by about 100 basis points '20, by about 50 basis points on '21, and we are 15 points ahead of the next competitor in terms of market share. I quickly alluded to the growth in anti-age, we are driving the market. We are helping to create a segment in anti-age, we grew the market by 9% last year by growing our own business by 25%, and we have a phenomenal pipeline of products that are coming to the market now, but also next year. And then obviously, we're leveraging our very strong partnerships. Vincent already talked about the Champions League final. So you saw a Real Madrid there. You saw FC Liverpool there, but we also have a collaboration active with Paris Saint-Germain which we greatly leverage, especially on social media. I would encourage you, if you go actually on the internet in Google, some of the Liverpool videos, phenomenal, great work with an incredible engagement by the teams and the players, by the way. So this is not something where we go to the clubs and we need to beat them up to make sure they do something for us. They have a passion for the brand. It's just phenomenal assets, especially on the Liverpool side. So what the other a minute to look at it. And then we have this very charming men of young men, I wanted to say because it's my age, but it's not really young. Mr. Jürgen Klopp, who obviously is a very successful soccer coach, also working by coincidence for Liverpool. He's now basically our spokesperson for NIVEA Men in Germany as well. So he has been following the old coach, Mr.Louis, very excited about the partnerships as well. This is skincare. And this is why we have so much confidence that we're on the right track that we have a lot of territory to cover in the future as well. Let me very quickly talk about what I mentioned before, which is called Core. This clearly has not been a growth platform for us in the future. Last year, this was negative. And last year, you dragged on our total results, eating up a lot of the innovation work that has been done with the new launches. This is something we need to step change. And when I talk about Core, let me tell you what we mean by that. We're talking about 50% of our net sales. And we're talking about all those SKUs that almost have iconic character, and have an incredibly high rotation per cumulative weighted distribution point and for the most part are margin accretive. What we have done differently in the last couple of months is we have significantly stepped up investment. We have done more efforts in terms of consumer engagement. And we're expanding some things that have been working phenomenally well in some of our markets, namely cross-category activations and conceptual cells in the store that works phenomenally well for many years in Germany, we are taking the European and expanding that. To make sure that we have 4 to 5 events in every single store, every single year, leveraging our cross-category presence. And we also believe that there's still ample opportunities for us to expand our cumulative weighted distribution for some of the best sellers. We're convinced of that, and that's what we need to drive with routeless sales execution as well. And the results are actually proving that we're not entirely off. So we see that actually year-to-date, we're growing the core by 8%, which, again, even underpins even more that the incrementality of innovation can have an even greater impact on our business if we keep the foundation solid. This is the slide where possibly you will have a lot of interest in, this is talking about how on earth are we going to navigate inflation. We're sitting today in a very, very difficult ship to steer. The world is uncertain. Volatility is unprecedented. And honestly, nobody even dares to say what's going to happen tomorrow. The only thing that is for sure is inflation right now. And this is why we have been advancing, and we will continue to advance some of the most aggressive price increases we have done in the recent history in the company. It's unavoidable. I would like to repeat what Vincent said, early indications after the first round of price increases are showing us that volumes are holding up fairly stable. We're getting more price materialization. And as a result, we're obviously seeing the net sales being very positive. That is clearly helping us. We're also in all transparency advancing incremental price increases for the second half. So in some markets, we're going for around 2%. In some markets, we're going for around 3%, and obviously, we'll need to see how the market reacts, but we have also been conducting in-house research to try to assess the elasticities we have on our brands. And we feel very confident that if there were elasticities to be noticed in the future, which only become relevant if nobody else takes pricing, which will not be the case to start with. We know that we're at the low end of the elasticity curves in the marketplace, which makes us very confident that we will actually go through this and come out much stronger than before. Mix, absolutely essential. Grita and Vincent also talked a lot about driving skin care. Skin care is accretive for us. It is margin accretive. So whatever we do on skin care will help our margin average. And on the right side, I really don't want to spend too much time on it, but we're going to be even more ruthless in the future in terms of driving return on investment optimization. Looking at every single budget line and really asking ourselves, are we really getting a return on that. There's 2 things we're going to protect marketing budgets and strategic investments in C.A.R.E.+. Just to be very clear, has been mentioned by Vincent, I want to reiterate that we read the line of budget austerity. We're going to focus even more time, especially today on promotional spend optimization. Today, our promotional share in Europe is about 30% of the volume is being sold on deal. That's pretty stable actually for 2021, although the entire market decreased by 0.3 percentage points. We're seeing a slight uptick in promotional activity at the beginning of this year, very clearly driven first and foremost by the return of some COIVD categories that are more promo-intensive like deodorants and shower. Those categories are recovering at a stronger pace from COVID. And secondly, you will also see that some trade partners are investing a little bit more money to make sure that they get some of the traffic they lost to e-commerce players back into their stores as the world reopens again. We do think there will be a normalization. But again, the changes are not big right now. One thing we're actually establishing for the first time in the company, and we already are through with 2 markets, with Germany and with the U.K. is the introduction of commercial mix modeling with advanced analytics in our key markets, not only including all of the marketing mix parameters, but also including the sales parameters to make sure that we can really say, where do we get the most return across our brands, across the promotional spend, across the marketing campaign on TV across the marketing campaign on digital marketing and/or precision marketing. We're also going to get a much better understanding of Halo effect between campaigns, between brands, and that certainly will give us yet one more step and one more advantage to make sure we can optimize the return on every single dollar. And I'm not going to allude more on precision marketing and inflight media optimization. I think Grita explained it very, very well. So just to summarize Europe very quickly, and I tried to make it very brief. We are reshaping the strategies. We are focusing the agenda more on skin care in the broad sense within that, obviously, face care. We are reenergizing the core, and we think there's plenty of opportunity to make sure that by executing that well. We will sit on a more stable foundation. We will drive our icons and the incrementality of innovation will be even greater on our total results. We need to be ruthless when it comes to taking pricing this year, obviously, staying very vigilant and not being stupid and going out there without thinking about it. We're going to be very observant of what happens in the marketplace. We see that the market is moving up as well. And this is why cross brand and cross price elasticities worry me a little bit less as I look at the market right now. And then we need to make sure we're very cautious about the return on investment of every single euro we invest, and then the agenda on e-commerce and digital is self-explanatory. This was a quick snapshot about Europe. And obviously, I'm going to get your questions. And now I would like to move to North America. Similar picture, so I don't want to confuse you, but it says North America. North America, it's all about accelerating profitable growth. It is 1 of the biggest skin care markets today, and we're a subscale player. It is our utmost duty to make sure that we become a dominant player in the decade to come in North America. It's a huge market. We have great assets. We have great brands. We have every right to be there and to become a scale market player. Before I do that, let me maybe explain to you the total portfolio we have in the U.S. today. It's roughly 90% U.S., 10% Canada. And when I take a look at the split by business units, you will see that it's a fairly balanced business between cosmetics, half of it, 50%. You have 40% on derma. You have roughly 9% on selective, which is La Prairie and also in the future, also the inclusion of Chantecaille , and you have 1% on health, which are basically our clusters business. Very balanced, very beautiful portfolio. And just to make sure that I don't confuse anybody, Patrick still manages the selective business. He owns the Strategies. He owns the P&L. He does everything. So I'm just showing it for completeness purposes, but he drives the selective business in the future. In the derma business, which Patrick also owns from a strategy and from a P&L perspective, we do the go-to-market for through our cosmetics organization. This is why you will see a little bit of a blend, but we're good friends. We hold hands, and we align very well. So we feel very confident that this is a great go-to market, especially because the derma and the cosmetic brands, for the most part, sit in the same stores, which is very different than in Europe. You will see actually the demo products in a pharmacy, our products more in retail. In the U.S., when you walk into a normal retail store mass, you will see both brands in the same shelves. That's why it's incredibly efficient for us to go to market together, having 1 unified strong retail sales force. When we think about the strategic priorities for North America, there's here, again, a few changes we have been making. The first one is to refocus and accelerate NIVEA. This is the brand that we need to lead to greatness in the future in the U.S. And I think we have been toying around with category placed, where we had no right to win. That will be very specific. We've been putting a lot of innovation money, a lot of investment, a lot of R&D focus to play in shower gels, which is a huge category in the U.S., but we have zero right to play there. So that's an animal that we killed at the end of last year, and we decided we're just going to manage that business absolutely technically. It's a promotion business. We're just going to play to participate, not more and not less than that. But the focus on NIVEA will be on 2 categories. It will be on body, which is skin care, and it will be on men, which is skincare There, we think we have a sufficient footprint to make sure we can accelerate. We have strong enough equities, and that's where all the power -- sorry, the firepower will go. Second priority, there was a lot of discussions today around Coppertone, absolutely critical, relevant acquisition for us. In the U.S., it's all about getting scale. Scale to make sure you can afford a better sales force, you can afford better shop in customer marketing teams to afford better key account managers to have more strategic horsepower to have a better employer proposition to make sure you get better talent from the marketplace. Coppertone was a brilliant acquisition in terms of giving us that, expanding our expertise in the Sun segment. In all transparency, the business still is dilutive to the rest of the portfolio. Our teams are working extremely hard on making sure that we turn around the profitability of the business. Vincent already alluded to some of the actions but absolutely strategic platform for us, broadening the derma footprint, critical. Patrick already alluded to that, and I will just give you 1 slide on that later as well. And then you will see a very, very similar agenda only with punctual differences when it comes to revenue growth management and our return on investment focus. If you take a look at the past, and this is just giving you a little bit of an idea of the performance over the last periods, 2017 again, normalized at the 100 index, led to a 7% growth in '18, 7% growth in '19. Then you see a jump, which is basically the inclusion of the acquisition of Coppertone. So we moved to a 121 index in 2020. Then in 13% growth in 2021. And let me also tell you, obviously, that 20 is possibly a tale of 2 stories because obviously, we had a little bit of a downturn on some of the premium propositions like La Prairie, and an over-proportional positive effect of Coppertone. So you see how actually the portfolio managed to balance out actually some of the disruption we experienced through COVID. And then a 13% growth in '21. And when we take a look at the refocused plans right now at the beginning of this year, again, Q1 '21 normalized is the 100 index. We're seeing a 23% growth year-on-year for Q1. And we're also seeing a very strong double-digit growth for Q2 in the outlook, which again gives us confidence that we are putting the right actions in place and to accelerate the business for the future in the right manner. On NIVEA, as I said it before, it's all about body and men. It's that simplistic. The portfolio is way simpler than what we have in Europe where in big markets like in Germany, we're playing up to 10 categories at scale. Two categories, 78% of the revenue and ample opportunity for us to expand our market positions. We're #3 brand in Body. We have ample of opportunities to leverage the global innovation pipeline, the global assets, all of the global learnings to make sure we can become it #2 or #1. And on men, we're the #1 across the board is the total proposition, but we do have an incredibly unique stronghold in the sensitive segment, we're the #1, and we're going to play that card much, much harder. When it comes to activation, we have reshifted the funds. We invest in the past, for example, on shower. We put all of that money on body and men. We're developing significantly more targeted campaigns, leveraging precision marketing for different subgroups of the U.S. population. We have campaigns for, I would call mainstream Americans. We have campaigns for the Hispanic community where we're over-indexed, and we are also developing tailored campaigns from Africa and American consumers where we also over-indexed. On men, we're increasing the focus on the sensitive lineup. We have a lot of relevant innovation we can leverage from Europe. And here, again, we're also leveraging the partnership with Real Madrid. As you might know, soccer in the U.S. amongst kids below 12 years is the #2 sport after American football. It surpassed baseball. It surpassed basketball. That's the future sport in the U.S. And we know that especially amongst the Hispanic community, there's a huge, huge interest in Real Madrid. So we're leveraging that and it's yielding very, very positive results. What I mentioned before, it caused about cross-category activations to drive the core, which is what we're expanding across Europe. We're doing the same in North America as well, and it's helping us Year-to-date, we're growing the business on Eve by 8% of net sales and growing by about 1.4 percentage points in market share. That's in 1 slide, the focus on NIVEA. Let me change gears and move to Coppertone right now. I don't know whether you're aware of this, but Coppertone is an iconic American classic. When you take a look at some of the things we own with that brand, we're the #1 brand with unaided brand awareness metrics, we're obviously by a long stretch, the #1 with aided awareness as well. And when you take a look at some of the equity levers on the right side, we're the most trusted brand in Sun, in America. We're also leading on providing unbeatable sun protection, excellent sound care for outdoor activities will lead the Sports segment hands down by a long stretch, and were also good for the whole family which is where we originally came from and where we're also expanding into the future with new innovation. We're also the #1 pediatrician-recommended brand as well, just in case you didn't see the logo down there. So that also helps us a lot to make sure we drive again this trust ownership with the brand in the U.S.. Vincent already alluded to this, we've basically been changing everything. We went through a very successful integration process. And now basically, we're relaunching the entire brand as we speak. There's new positioning, there's new packaging, there's new creative assets that are going to the market right now. The season started last weekend between Memorial and Labor Day, that's when the season takes place. That's where you need to win. That's all we have been preparing for. Innovation, we're entering 1 segment where we're underplaying today, the general protection segment. This is, in fact, where the brand started. And we actually shifted away for a long time, and we have a great launch called complete, it's called Coppertone Complete. And just to give you a little bit of an insight, it got 100% listings from the trade. 100% listings from the trade, hence down, we did not even discuss it for too long. So we feel very confident this will work for us as well. And though by the way, I forgot to mention 1 thing on the relaunch. On the initial like-for-like rotation numbers, it's high double digit compared to prior to the relaunch numbers. So in stores, that are like-for-like comparable. We see that the new relaunch proposition gives us a rotation. So that, again, is 1 other point that gives us confidence that running into the season will be doing well. Brilliant execution is another thing we're putting a lot of energy behind. We're getting more distribution in 10 out of the top 12 customers in the U.S., we got better shelf resets than we had before. So again, in 10 out of 12 customers, we get more shelf space. We get more displays and we had more promotions. 2021 was the turnaround year by any means. For the first time since 10 years, we managed to grow share. We grew the revenues by 23%, which is great. Year-to-date, we're growing 12% and in terms of market shares, I would like to tell you because that is something also that was mentioned in your papers that we had experienced some share losses at the back end of the year that is absolutely correct, and that was intended. As you well know, when you manage a relaunch in the U.S., you need to make sure that you destock the trade, you destock our own warehouses to make sure that you don't run into remnants and ugly write-downs and write-downs in the U.S. can be very expensive. So we have been consciously destocking on top of that. Obviously, we also experience have supply chain issues, but we know that right now, the time starts to count now. We're going into the season, we're going into the season strong. We're getting all the implementations of the trade. We have the product ready, and we have very low remnant of the old products in the stores as well. So we're very confident that this will be a very good season for us and that we're going to win in the season and in the total year. And now let me give you 1 slide on Derma, which is nothing but is meshing success. And Patrick, obviously, and the team in North America can take the credit for that. You see that we're outperforming the market across every single category. Net sales are up year-to-date 37%, and we're gaining 120 basis points of market share. The team is focusing an incredible amount of effort on driving the medical recommendation focus. They more than doubled the derma retailing team in the last 4 years. and Aquaphor, which is a uniquely strong brand in the U.S. is the #1 dermatologist recommended brand in 6 skin conditions. And Eucerin, again, the second brand in our portfolio is the #2 dermatologist recommended brand for eczema and for body moisturization. And the big play, obviously, right now on the table is to winning white spots, namely with the Sun launches as we speak. I will now talk about how do we navigate inflation in the U.S. It's the same story. We're taking very aggressive pricing there. We're driving everything else we're doing in Europe as well. The only difference on the very right side is that we're shifting part of the Coppertone sourcing to Mexico to get better cost and improve the structure of the P&L. So again, we're reshaping and refocusing the investments on NIVEA, will continue to turn around Coppertone, not only from a top line, but also from a profitability perspective. We're broadening the Derma footprint and will continue to drive revenue management, pricing and return investment. And last but not least, I would like to close with 1 slide, which is the U.S. must be our first EUR 1 billion market. That's our intention to get there in the midterm. And to do that, it's very obvious that we need to continue to drive in a very sharp manner what needs to be done to drive the core growth of NIVEA Derma. We need to deliver the full see-through of the Coppertone turnaround. We will be expanding into new white spaces, like we're doing it right now with Derma into Sun. As soon as we feel confident enough that we established a more solid base. On NIVEA, we're also going to be confronted with the question what do we do next with NIVEA, which is the next segment we go into. Is it Sun? Is it Face, we will see. So there's more news to come. Revenue management is super important. We will invest in necessary capabilities and skills. It is absolutely essential, very similar to what Grita mentioned that we need to bring in the needed digital experts into the house to make sure we can accelerate and excel. We're going to be doing the same there. And for sure, we will be looking at M&A in the future on top of what do it. Coppertone, we still have work to do. We're very focused on that. I think is just a jewel that the M&A team and Patrick brought into the house. I think that's going to be a smashing success, but there's plenty of opportunity for more once we prove that we can do those very, very well. And with that, thank you very much.

Well, thank you, Oswald. We are now again opening the floor for questions. So could you please reach in the microphones Yes, we're going to full view, please?

Yes. I've got 2, 1 in Europe and 1 for North America. In Europe, there's been -- I recognize from your presentation that the pricing environment has been very solid, no impact on volumes, but there's a rising list of questions from investors about the outlook, particularly if we do have a scenario of a recession, how could NIVEA and your European business, in particular, cope with that have you prepared for such an eventuality. And is there any sort of differences that you'd want to flag versus the last precedent quarter 2009? And then my second question is, you have some very interesting ambitions in North America. We don't have many companies that -- certainly, I can think of European companies that have been able to successfully crack the U.S. market. So maybe could you just again elaborate on what makes you confident that your strategy is unique and it's different and what underlies your confidence behind that?

Very good. Let me talk to the first one first. Yes, for sure, we're also thinking about what we do if we really go into a recessionary environment. That's our bread and butter business, so we absolutely spend time on that. Let me give you a few insights. And maybe I'll start with previous crisis first before I move into the situation today. Our global sales teams have been looking at what has happened in the last period in which we went actually some major crisis being 2009 or even prior years in emerging markets. And we do know that NIVEA with this unique stronghold in terms of what it stands for value for money, we are a fundamentally democratic brand. we cover many, many price tiers. If you think about Europe, even today, we sell most prices between EUR 3 and EUR 25. So we do have plenty and ample opportunity to make sure we can play the entire portfolio. And even when consumers trade down from a EUR 10 price back to EUR 5, we have options for them. We do know that the pricing pressure on private label will be comparatively higher than on branded goods. So let's be very clear about that. If you take a look at their strategic margin structure they will also increase over proportion of their prices, and we have seen that in some markets like, for example, ALDI in Germany as well. Going back to the last crisis, we knew, for example, that we managed actually during the last big crisis to grow our revenue by about 1.3 percentage points, if I recall the number correctly, Vincent will keep me aisle here. So we feel very confident that we're well positioned, great value for money proposition democratic brand. We play across many price partitions and price tiers. And obviously, I mean, we also have the tool of adjusting our commercial policies when we work to market to actually play with our featuring activities according to the necessities of the marketplace. When it comes to Europe specifically, again, I told you that we see no impact right now after the first price increase. We need to see what happens after the second price increase, but there is movement in the market. Most key players are taking their prices up, and that's very visible in the market data that you can read yourselves. So we feel very confident that the consumers will go with this. There might be a little bit of pickups. I'm personally more worried about the trade than I'm worried about the consumer. I do think that especially in difficult markets like Germany and France, we might face trade disruption. They just don't like price increases, and they will certainly actually take some features away, maybe discontinue some SKUs at the tail end of our lineups, but that's something we have planned for. That's something we have factored in and we just need to go through that. Does that entirely respond to your question or...

No. Very good. The second question was...

The second question was on North America, which gives us confidence First of all, Unilever, I think, has been doing a pretty good job in the U.S. So I think they are a scale player. They're very, very strong in the other end. So I think there's examples for a European company succeeding that. I think L'Oreal is also doing a pretty decent job, if I may say. I just believe that we should go 1 step after the other. For me, it's not about what have others managed to achieve. I think we're sitting on some things that are really working very well. I think we have strong hold on NIVEA. I think we also complemented our portfolio with local brands which I think will help us in the U.S. because buying Coppertone, it's not like we're trying to enforce a European brand on to American consumers. We're bringing a native American brand that is, I mean, as anchored in their hearts and minds as any other -- sorry, American brands. So I do think we're in a really good place. Chantecaille is essentially the same story. I mean it's a brand that was born in the U.S. it plays to the use of the local culture. It's proven to be very successful. So I feel very confident that we can win. But again, I mean, we're not promising the moon. We're not doing any stupid things. As Vincent said before, we need to do 1 piece of our homework after the next. We're going to turn around Coppertone's profitability. We're going to get NIVEA to #2 and 1 position some body care. We're going to be successful in Sun or Eucerin, and then we're going to go the next step. Nothing stupid. And there was a question before, I think from the UBS colleague in terms of investing too much money ahead of the curve. We're not going to do that. We're going to go then where we have a proof of concept, and we're going to invest wisely to make sure we get the returns not in 10 years, but in 1 or 2 years.

Emma Letheren from RBC. A question on NIVEA. I was wondering adapting all the products to be more sustainable, what effect does that have on the margin profile? And are you able to actually get a get better pricing from doing that, which offsets any potential extra costs?

That's a great question. And we factor that in. So yes, you're absolutely right. Some of the sustainable formulations or recycled packaging because there's a lot of demand for it puts pressure on the pricing. But that's why, as I said before, it's so important that we are able to claim up. So the NIVEA soft example being one, we are now able to do a 48-hour claim on moisturization. So we factor that in and that gets tested and evaluated before we do it.

Okay. And just -- sorry, a second one on the wider strategy. Given the growth opportunities in La Prairie and Chantecaille and your increased focus on M&A. I was just wondering if you're looking 10 years into the future, how do you see the brand portfolio at Beiersdorf and its exposure to the different categories?

I think the 2 examples that -- what we did with Coppertone and Chantecaille are good examples. Coppertone, we had a unique opportunity to buy an iconic brand in a market we know pretty well Sun care, so we bought it. So if there are other copper to allowing us to complement the portfolio, we are interested, and we are not obsessed by the idea that they should be a global brand. Obviously, when you are in the U.S., locally in the U.S. is big enough. And then there are the other kind of acquisition, like Chantecaille, where we know there is a huge space between the derma environment, USD 40, USD 50 or EUR and the luxury world of LaPrairie. I mean the value is around EUR 25 billion, where there are some brands which we could acquire. So Chantecaille is the best example, taking a lot of boxes, U.S. brand, premium skin care profitable, strong in U.S., China and Korea. This is typically the kind of things we will look at, and we are looking at already today.

David Hayes from SocGen. Grita, from the outside, it potentially looks like you've taken this role to make the key brand work better and sustain, let's say, 4% plus top line. And then Vincent telling us today that you've got no more step-up in investment to make that happen. So is that a fair summary of what's kind of gone on over the last few months? And how was that -- did that create tension? And how has that tension being resolved? And then I guess, secondly, maybe related in some ways and kind of coming back to this morning, we kind of touched on this earlier, a lot of investment plans, but the margin outlook lift is being promised is the ambition. But you kind of alluded to a lot of cost savings as well. You talked about Mexico, you talked about the pension plan, headcount reduction maybe reading between the lines on that and so forth. So the question is, some companies -- some other companies may have said, when we've got a gross cost saving plan of x, which is part of the whole algorithm, is that what's going on here as well and you're just avoiding being a headline about that because you don't see the necessary to say, I'm going to say $250 million, whatever it is? Or is that a misinterpretation of kind of the outlook for the next 2 or 3 years?

You do the first question?

So on the first question, I think, if I understood the question correctly, the tension of making sure that NIVEA is sort of outperforming and getting investing enough. Was that the question?

Yes, that is in our rule....

Yes. Okay, okay. So the first -- yes, okay. So I think the first place where I think we have maneuvering room is within the own NIVEA P&L. And I think we talked about that quite a lot, right? There's a gross margin by focusing more on skin care and then by making choiceful investments and, of course, making bigger innovation. And then the marketing mix modeling that Oswald also talked about, we really have room for improvement. But you're right. I mean, of course, we're already investing in China today, and we will continue to do so. But today, we feel we have enough room in order to make that growth.

And complementing this answer, I mean the -- are we -- just to be to put the fish on table, but are we talking a social plan No, we don't need that. Are we talking working on efficiencies? Yes, and we can. We know that it has never been high on the agenda of Beiersdorf and we know that it's about digital marketing. I mean simply moving, as I said, from traditional TV to digital to Press on Marketing, 100% efficiency with the same euro. So already, if we're doing that and doing that so far, we have done that on 30% of our investment. We want to do it on 90% of the assessment. You see the potential. Structures, yes, I think we are -- as I said, we officialized last month, the first ever early retirement program in Hamburg in headquarters never been done before. We were more challenging the regions and the countries that the headquarters, we did it, and it was well perceived, and we signed an agreement with the Beiersdorf, with the union. So we're going to do that. We also, together with Astrid, looking at other efficiencies in each and every department, each and every function. And we know also that there are some opportunities here to find a few points of net sales. And this is what we're going to do, and this is why we feel pretty confident in our ability to deliver at least 50 basis point EBIT improvement over the next years.

Could we take someone who has not asked a question yet? Move in there. You asked already?

Olivier Nicolai from Goldman Sachs. Just a question on NIVEA Men. How big it is as a percentage of sales for the NIVEA brand today? And do you see potential in Asia? Or is it just a focus on Europe and the U.S. And also, you mentioned the premiumization of the NIVEA brand with Luminus and Q2. Do you see the same potential for premiumization for NIVEA Men?

Yes. So I don't think we split out the NIVEA Men brand. So I'm not sure I can reveal the number here, but it is a very big brand. And no, it's not just in Europe. It's also actually in China, I think, as Vincent. And yes, the skin care strategy on men, we absolutely see as a huge growth driver. And there's ample of growth there that we're seeing on skin care.

To complement your question, in China, yes, we are also premiumizing NIVEA Men. We are today too cheap. We are to off-line. So we are changing also. We are launching new franchises that are much more expensive, much more varied. We are cutting also some tail business, which is pretty cheap. So we are indeed dramatically improving the premiumization of NIVEA Men in China and is part of this overall premiumization of Nivea in China.

And also focusing on skin more because, I mean, shaving is great, but we also know saving. There's some pretty heavy competitors out there. And the growth we really see is on skincare.

Jeremy Fialko, HSBC again. A couple of more questions from me. First of all, when you look at NIVEA in the core, I guess, one of the things you have was maybe quite a disappointing '21, then '22 obviously looks a lot better year-to-date. You're saying your April market shares or the sort of record ones so far. But obviously, we're looking at quite short time periods. And also a very, very sort of messy period in terms of the base I guess you were probably a little bit underweight e-commerce and so perhaps that penalized you a little bit in 20 and '21. Now bricks and mortar is coming back more perhaps that benefits you in '22. So would you want to know is like how can you disaggregate a lot of these very, I'd say, quite messy factors within the base and say, okay, we can really see the kind of the brand equities, stronger, the purchase intent stronger, the innovations hitting hard. So just maybe flesh out some of that a little bit more on if you're in the core. And then the second one on the NIVEA range is certainly, you plan to rationalize the range a bit. You've got to do all of this kind of harmonization. Is there some sort of a drag on sales you expect to have and how big it might be and when you think that process will be finished.

Take the first one.

Yes. Let me talk about the core. No, I'm not entirely capable of fully separating the 8% and tell you which are the things that are driven by they come back from after COVID from e-commerce into the real stores. We do see a slight skew on categories like deodorants and shower. They are coming back a little bit stronger post COVID. So that certainly is something that is coming as a factor into the growth rates right now. But as I said before, we're also growing share pretty significantly. So if I were only talking about the revenue, obviously, I would be more nervous, but we're also gaining share in all the critical segments and subsegments we're looking at. The other thing I would tell you is we see significant and there was the third point on the core chart we see significant opportunities to also expand our distribution. And that distribution went factored with the fact that these are some of the SKUs with the highest rotation per cumulative where distribution points, gives me a lot of confidence that moving forward, we will get more scale entire rotation. Can I promise you right now to sustain the 8? I will not do that. But do I believe there's a significant upset? Absolutely yes. The other thing I would like to underpin as well is that execution is critical. The cross-category activation ideas we took from Germany, and they're expanding into Europe and also into the U.S. have the potential to yield significantly better returns, more upside, more share gains with less structural investment into promotions and in-store activations. So I feel a lot of confidence that the underpinning drivers we're putting in place will drive growth. and market share gains, to which extent we will discuss it at the next Analyst Day here.

And then to your second question, if I understood it correctly, let me just rephrase it. You were asking whether we should expect sort of a big sale as we are putting more consistency and coherence within the brand? Was that the question? Sorry.

So more just with you. If you go through sort of a rationalization process, whether there's some sort of a drag on your sales because you're discontinuing SKU deprioritizing them, that sort of thing.

Yes. I think we will focus, of course, on the key sort of SKUs, but we're not going to stop things that are doing extremely well. And I think as we're globalizing our mixes, and that's the key point. I think we will alleviate the supply chain, the R&D teams and everybody else by having a more pruned assortment that is more global. I think what we're having at the moment is sometimes very different assortments from 1 region to the other, and I think we will evolve towards something that's more consistent. But we're not stopping any category, at least not for now.

Chris Pitcher from Redburn. You've set the target for EUR 1 billion of sales for the U.S. business. I'd imagine on an organic basis, the German and the Chinese team would be putting up a decent challenge for that? And does that reflect that the U.S. is going to be a disproportionate focus for M&A to get to that target ahead of those other 2 markets. And following on from that, if we look at profitability for the consumer business, it's lowest in the Americas. Is it purely a function of scale? Or are there some structural considerations to be mindful that would mean that margin wouldn't naturally expand as you get to that EUR 1 billion target? And just it's EUR 1 billion target, not $1 billion.

EUR 1 billion. We like euros better in this company. I think the investors as well. If I were working on China, I would possibly tell you the same story, but that's my boss or as China. But I just believe that we have every right to be a EUR 1 billion business there. we sit on very strong brand equities. We have proven that we can scale up that business in a very significant manner. So it's just continuing to do our homework 1 day after the other. I have a lot of confidence in every single brand we have. I think we have made massive investments after the post integration in terms of scaling up our capabilities and skills as well. We have been overinvesting in resources and capabilities. We have also made an investment in GE, which, by the way, relating to your second question, is absolutely scalable, but we made the choice that we need to have the right people on the ground to create the right skills, to sell things into their trade to have best-in-class marketing. The U.S., by the way, is the third market with the single highest level of investment in digital as a percent of the total marketing spend the U.S. TV environment is very, very difficult. But we are leading the pack there as well in some digital areas, too. And those are skills that we brought in because we believe in the future of that market, absolutely essential. On your second question, I think it's both. I mean very clearly, there are cost lines that are scalable. GE certainly is one. And it's absolutely essential, and we need to make sure we drive the top line to make sure we get the benefit out of that and reap the fruits, but there are also some structural challenges. And the bigger structural challenge today is very clearly Coppertone, where we took over a business that was underleveraged under managed in the past. We have been making some very positive inroads, but we have some big duties at the table right now. We need to take significant pricing. We need to become more efficient is how we invest the money, especially also on promotions. Customer deductions are a big challenge in the U.S. as well that we're getting under control, too. But we also need to work, for example, on the supply chain, and the logistics. Very clearly, this is something that is -- we're not very happy with today, shifting some of the production to Mexico will help, but there's more help needed as well. So I think it's a mix of both, and we need to -- we cannot afford to work on only 1 angle to drive the profitability in the U.S. up. And we do know that we have a true north star there. I mean the Derma business is very profitable, and that's basically the benchmark for the rest of the businesses to move to.

So we had, I think, questions from all of you. So we can just as well then go back to Ian, please.

A couple of questions from me, if I may. Firstly, I wondered if you could just say anything about Brazil. You highlighted it as an opportunity for NIVEA, but I think LatAm is a market you've made great growth in the last few years. What are the sort of lessons there? What's left to go for in Brazil? And then secondly, in terms of taking liver into new categories in the U.S., I think a few of us were sat in this room 11 years ago as you announced the sort of exit from various categories in the U.S. as NIVEA had become overextended. How do you think about ensuring that when you are entering categories in the U.S., there are places where you have the right to play and it's not stuff where a few years from now, you've actually found that you've spent a lot of money on it and you're subsequently pulling out.

You want me to take the LatAm question. I mean what can we learn from LatAm? I mean, 2 very important things. The first 1 is the production. I mean, one of the reasons why we are so successful in LatAm, we have 2 exceptional factories in 3 in Brazil and Mexico, and we are able to get absolutely good the cost of goods, which allow us to be competitive in the market. And in categories like the other ones, that every sense in the cost of goods is making a difference, and together with this local investment that we did already a long time ago, and we continue to increase. Now this year, we are increasing dramatically the size of our Mexico factory also the Brazilian factory. We were able to have a very large offer in those countries. And to finance, we were discussing that this morning. For example, the launch of Nivea in Brazil becoming in 3 years, market leader in Brazil. So this question about the production is absolutely vital. And to come back to the answer of a it's very interesting to see that in the U.S. portfolio, we do have the second most profitable brand of the portfolio here. This is Aquaphor, just after La Prairie this U.S. setup because also, a few years ago, we decided to go from the U.S. to Mexico and to produce everything in Mexico. The second element, which I think is essentially in Latin America, the fact that we've been able to develop extremely good synergies within the different businesses of the company. The fact that this is the same sales team, which is selling NIVEA, but also Eucerin and also Curitas, which is a local and plus is allowing us to have extremely good synergies to have also a share of voice vis-a-vis retailers, which is absolutely essential. And this is helping us getting the support of all the retailers, could be Walmart Mexico, could be all the drugstore chains in Brazil. So that's making a very successful ecosystem in Latin America. And this is obviously something we are also doing in the U.S., synergizing all our brands at least the mass and derma brands in order to get efficiency in the market.

On your question regarding the VA portfolio, where to play, how to win. Very clearly, if you go back at our experience of shower gels in the U.S. when we decided wrongly to focus on scaling up that business, we had a #11 position in the market. number one, comparatively, the investment in shower per case is higher in North America than in Europe. So you also need to go in there with a lot of money. I think we launched up to 10 SKUs. It's some of the strongest customers. And you might well know that in the U.S. if you don't wrote it after 4 months, Walmart just gives you out. While everybody complains about the European trade they're very tough in the annual negotiations, but when it comes to the listings, I think the U.S. is at the very forefront. They just kick you out immediately, look at you and smile and say what's next. And by the way, some of the uplisting fees as well. So I do think that it was a very good decision to actually kill their journey and just manage that as a purely tactical business. But let me turn that around. Even if I had worked, I would have questioned the strategic rightness of it because when you become a scale player in shower, what equities are you building for the long run? I really struggle with that. maybe you're a great rinsing brand, whatever you want to call that. I think it's much more strategic. What we're doing right now. We're focusing on body. We are focusing on men with again, an increased focus on phase anti-aging. We are building skincare equity. We're building things that we can leverage in the future whenever we decide that the time is right to get into the next entry. And again, we're not going to do it tomorrow. First, we need to execute Patrick's #1 priority on derma in the U.S., which is launching successfully. And the entire organization is fully buttoned up to deliver that. if we scale up our leadership positions in the U.S. on body and when we do it in men, and we move body to #2 to 1 position, and we move men while holding the #1 position on sensitive to #3. That's the moment we're going to say, you know what, this is the moment where it's sufficient scale, sufficient solidity and we go into the next venture. But at that time, we will have built stronger equities with men and with body that can help us to consider, I don't know, getting again into some question mark, should it be face care. We don't know. But I do believe that it's the right thing to do, and we are all extremely confident that it's the right strategic avenue. Does that respond to your question? I think we need one here. Otherwise, his arm will die.

Gian first and then Bernstein. I think then time should be up actually, but go ahead.

Two questions for me, please. The first one for Grita. ON NIVEA, 3 focused markets of U.S., India and China. What is NIVEA's right to win in these 3 markets? Because these 3 markets, I mean, there's probably no coincidence, but the same as Unilever's focused markets. So we're talking about large markets, incredibly competitive already, where competition is also looking at maybe not enhancing well, increasing investments, but at least enhancing execution just like you. So what's going to differentiate you from your competitors and support that success?

I think you said it right. I mean they're very, very competitive markets, all of them. I mean if you think about India, just as an example, I mean, the fact that we're already the #1 trusted skin care brand in India, I think, it is incredible. And that just shows you the strength of the NIVEA brand. And I think from there, we can ladder up into face care which we're not playing in right now, even though soft actually is used also on the face, right? So yes, I think all of these markets are very competitive and they will be tough. But again, I think with Luminus W630 anti-age skin care focus, I think we have absolutely right to win. And we're not talking about the innovation pipeline here now, but there are some other things in the pipeline that also make me very confident that NIVEA can be very successful in those 3 markets. But of course, competition is there. It's like when you play the Olympics, and you don't have China in the U.S., it's a very different Olympics. But again, time and time again, I think NIVEA can become the #1 skin care brand in the world.

And I think we have a trigger. It's -- I was mentioning China. W630 is a huge opportunity. I mean imagine if tomorrow, already, we're #1 with cross-border shipment. And again, cross-border is 8% of the total online, 8%. So if tomorrow, we go in 92% online plus offline, of course, and we come with a proposal which is talking about even skin, which is talking about brightening. I wouldn't even use the word whitening. You are in a kind of consumer world, which is absolutely fantastic for NIVEA. And we will succeed with La Prairie, we will succeed with the Eucerin, but NIVEA has obviously a much bigger opportunity to say use Chinese consumer. When you look at China, the fact that, in fact, in this country, we didn't do any mistake you see when you see the buildup of the success story. We are in the right categories. We have a factory. We are the #1 trusted brand. So the next frontier is face care. It's also an opportunity. I'm not saying we're going to launch it now. We might tranche it next year, the year after because we have to have a very precise a tailor-made approach for face care, building also what we have been successfully for example, in Brazil and other emerging countries, this is a trigger. In the U.S., it's also the fact that we are not only good in body, but we have now the top-of-the-art R&D facility was expertise is in body and sun care. So that's also something we can leverage further. We used to be more into doing new galenic and new sizes for the U.S. market. Here, we can be much more daring, much more ambitious and leverage this R&D expertise into NIVEA into Coppertone.

And quickly to follow up on this expansion. One country that has been very difficult for European companies and where Beiersdorf has been successful was Japan. And it seems thanks to a very successful partnership with CARE. Do you think this is a model that is replicable elsewhere because that would allow you to go after white spot without having a big negative effect on your margins?

So firstly, I'm flying tomorrow to Japan to have a top 2 to discussion with CARE because we are doing so well. We are celebrating this year, the 50th anniversary of the joint venture with Swiss Co. The answer to your question is yes, might be might be might be with CARE, might be mid others. I think also in mind obviously the compliance and everything which is being to antitrust. But we are very pragmatic. So the idea that we could partner with somebody in a country where it's difficult to succeed a loan, makes a lot of sense. And again, look at the success of -- look at the size of NIVEA in Japan, in comparison with our other big competitors. That's a proven successful method, not only in terms of sales, but also in terms of .

Okay. Final question.

Grita, I noticed on your first slide, you used 2 keywords with NIVEA globalizing and modernizing. Vincent talks about premiumization or valorization. Is there a conflict between the 2 of you there? Or why do you not choose premiumization, which I would have thought would be the key word for NIVEA?

It's absolutely part of it. So it's -- no, there's absolutely no contradiction. I think it's -- the burning platform is to work on NIVEA as a global brand and the modernization as well. And I think our move into skin care and face care will de facto premiumize it so.

And L'Oreal Paris sort of quantified last year that they had a 9.5% price mix benefit from premiumization alone. Could you sort of outline either what you're doing right now is sort of price mix and what your ambition is of how much price mix? Is it similar to L'Oreal Paris upgrade or...

I think I would also take my cap off ahead of Northeast Asia because I think there are 2 dynamics. One, which is overall the globalization, the modernization of the brand. And yes, we are going into more premium categories, more premium launches like, for example, Luminus. And you saw the price difference with more into in care versus personal care, more into skin care than shower. I think that's an overall movement, which is not a revolution. We will not suddenly become the most extensive brand of the brand, but will clearly perp make this brand more premium in the as of consumers. What I'm doing in Asia is more -- I'm going much further than that. I want to transform NIVEA in China is the name of the game. I want to transform NIVEA in China from accessible, I would even say cheap, offline personal care brand into premium skin care online brands. So I'm doing because of the legacy we have today, which is not good enough. So this is where the nuances are happening. Globally, we don't want to do a revolution in China and also tomorrow in Korea. I want to transform more dramatically, Nivea because I'm not happy with the way via is sold today in those countries.

Okay. Well, this, I think, now concludes the Q&A. Thank you to all of you on the webcast to start with. We are now closing the webcast. Thank you very much for joining. If there are any additional questions or comments, then please come up to me. So thank you very much for participation. For us here in the room, we're going to have our Zoom sessions outside now. We're going to have a little bit of lunch. So if you join us, we're going to move out of the auditorium and we finish this session. Thank you very much.

Thank you.