资源描述
September 2019Winning in the packaging worldHow the most successful companies create shareholder valueManagement summaryOver the last 15 years, our extensive work in the Industrials sector has led us to take an in-depth look into how companies create value for their shareholders the main objective of publicly traded corporations in North nullerica and nullropenull nulls an analytical underpinninnullto our stratenully and operations support to the packanullnnull industry, nulloland nullrnullr renullularly monitors the financial performance of nearly null packanullnnullcompanies headnulluartered in the null or in nullropenullnulle nullnners nullalysis is both a dianullostic framework to understand historical performance and a blueprint for future corporate stratenully development and executionnull nullnners are companies that consistently deliver superior risk-adjusted profitability and nullowthnullnullese companies deliver superior shareholder returnsnullnullis tool helps companies understand their performance relative to the industrynullOur study shows that nullnners share four discrete stratenullc characteristicsnullnullrstly, nullnners possess a com-prehensive understandinnullof their core competencies, develop a uninullue business model that leveranulls these competencies, and focus their participation in market senullents where the business model is advantanulldnull nullcondly, nullnners have stratenullcally coherent portfolios, derived from a combination of clear stratenullc intent, a portfolio of businesses that enables the intent, and a parentinnulladvantanull over these businessesnullnullirdly, nullnners drive financial scale via larnullr market capitalinulltions nullinullnulland a clear risk-reward propositionnull nullastly, nullnners prove their ability to execute by clearly communicatinnull their stratenullc intent, pursuinnull a disciplined approach to achieve competitive advantanull, actively mananullnnulltheir portfolio, and systematically standardinullnnulltheir functions and processesnull2 Roland Berger Focus Winning in the packaging worldContents1. The Winners Analysis .4What are the financial metrics that drive shareholder value?2. Who wins in the packaging industry? . 7Any type of company can succeed3. The foundation of success .8The Winners in the packaging industry share four distinct strategic characteristicsCoverphoto: gerenme/iStockWinning in the packaging world Roland Berger Focus 31. The Winners AnalysisWhat are the financial metrics that drive shareholder value?nullile the packanullnnullindustry has been stronnulloverall of late, some companies have proven that they can consistently outperform the pack nulloland nullrnullr takes an in-depth look into how the most successful packanullnnull companies are creatinnullvalue for their shareholdersnull nullven the wide rannull in shareholder returns across the industry nulledian returns of 1nullnull per year for the top nulluartile vsnull-nullnull for the bottom nulluartilenull we set out to answer the followinnullthree nulluestionsnull1null nullat are the financial performance metrics that drive shareholder returnsnullnullnull nullo are the companies that consistently deliver top-tier financial performance relative to the industry nullinnersnullnull nullan we identify the key stratenullc attributes common to the nullnnersnullnullhe result of this multi-year effort is a product that we refer to as the nullnners nullalysisnullIt provides a dianullostic framework to understand historical performance as well as a blueprint for future corporate stratenully development and executionnull ASource: Roland BergerINPUTSStrategic characteristicsOUTPUTSFinancial performance and shareholder return performanceRisk-adjusted profitabilityInvested capital growthBusiness leadershipStrategic coherenceProven ability to executeFinancial scale2515-15-15 155-5-5 520-20-20 20-2510-10-10 1000PROFITLESS GROWERS5%-2%11%5%UNDERPERFORMERSWINNERSCASH GENERATORSA: The Winners Analysis A diagnostic framework to understand historical performance and a blueprint for future strategy4 Roland Berger Focus Winning in the packaging worldnulle main nullal of publicly traded companies is to create value for shareholders in the form of share price appreciation nullapital nullainsnulland dividendsnullnullccordinnullto financial theory, shareholder value is driven by investor expectations of future financial performancenull nulllthounull share prices tend to channull with earninnull announcements and one-off events in the short term, we find that they are primarily driven by the net present value of investor expectations of lonnullterm financial performance, particularly in mature exchannulls like those found in North nullerica and nullropenullnullen developinnulltheir expectations of the financial performance of a company, investors are analynullnnullits profitability and nullowth potential, and adjustinnullthese metrics for risknullnullpically, investors will develop a financial forecast to build a free cash flow modelnull nullevenue nullowth will be used as the nullowth metric, nullInullmarnulln percentanull as the profitability metric, and the cost of capital will represent the risk adjustmentnullnulle believe the best metric to analynull nullowth is the real nullowth in the invested capital of a company, which represents the capital on a companynull books that finances its assetsnullnullis is a better metric to measure nullowth than revenues, which are more commonly usednullnullevenue trends can be misleadinnulldue to price volatility, driven by cost fluctuations or supply and demand dynamicsnullInvested capital nullowth measures the nullowth in assets and represents additional investment in the enterprise and is not as affected by fluctuations in costsnullnulle believe the best metric to measure risk-adjusted profitability is the difference between the return on invested capital nullOInull and the weinullted averanull cost of capital nullnullnullnullnullnullis is better than nullInullmarnulln because it is a normalinulld metric, which measures not only profitability, but the amount of capital renulluired to nullenerate the profitabilitynull nullInull marnullins provide no perspective on the capital intensity of a company and therefore may be misleadinnull when comparinnull companies with different modelsnull nullor example, for an investor lookinnullat two companies with nullnull1,nullnullin sales and 1null nullInullmarnulln, the one renulluirinnullnullnullnullnullof investment is more attractive than the one renulluirinnull nullnullnullnullnull BThe Winners Analysis provides a diagnostic framework to understand historical performance as well as a blueprint for future corporate strategy development and execution.Winning in the packaging world Roland Berger Focus 5B: The right metrics to measure growth, profitability, and risk Definition of economic profit in Winners AnalysisNOPAT Net Operating Profit After TaxINVESTED CAPITALRISK-ADJUSTED PROFITABILITYTotal Debt Total EquityROIC WACC+ROICReturn on Invested CapitalWACCWeighted Average Cost of CapitalINVESTED CAPITAL INVESTED CAPITALCost of EquityEquity After Tax Cost of Debt Debtx x x+Source: Roland Berger6 Roland Berger Focus Winning in the packaging worldIn this study we looked at null packanullnnullprocessors and converters headnulluartered in North nullerica and nulluropenullnulle plotted the two dimensions described abovenullnullowth and risk-adjusted profitability for the past five years, creatinnullthe nullnners nulltrixnullOf the null companies analynulld, 1nullstand out with both superior nullowth in invested capital and superior risk-adjusted profitabilitynullnulledictably, these companies delivered superior shareholder returns over the periodnullnulle call these companies the nullnnersnullnullnners include well-known, larnull players such as nullckanullnnullnullorporation of nullerica, nulltarnulloup, and nullrry nullobal as well as a number of lesser-known niche companiesnullnulllf of nullnners from the most recent 5-year timeframe nullnullnullnull1null were also nullnners from the previous 5-year timeframe nullnullnullnull1null, and only nullof the 1nullnullnners were previously nullnderperformersnullnullis consistency sunullests that the nullnners did not simply nullt lucky over the past 5 yearsnullnulley are companies that have been executinnullwinninnullstratenulles for years, leadinnull to lonnullterm successnullnullowinnullthat certain companies perform better than others, by itself, is not very usefulnullnulle value comes in knowinnull what the nullinners are doinnull that is makinnull them successfulnull o this end, we examined the nullnners and compared them to the nullnderperformers nullhose companies in the lowest performance nulluadrantnull and found that there is indeed a common set of characteristics that nullnners sharenullnulle remainder of this study is dedicated to explorinnull each of these winninnullcharacteristicsnullThere is indeed a common set of characteristics that Winners share.2. Who wins in the packaging industry? Any type of company can succeed Winning in the packaging world Roland Berger Focus 73. The foundations of successThe Winners in the packaging industry share four distinct strategic characteristicsnullat are the attributes common to nullnners in the packanullnnullindustrynullnulle believe that nullnners share four distinct stratenullc characteristicsnull1 |WINNERS ARE INDUSTRY LEADERSnullnners own businesses that are leaders in their fields of playnullthey have the ability to set the anullnda across their entire portfolio of businessesnullIn each of their businesses, they possess a true competitive advantanull enablinnullthem to define the price-settinnullmechanism, and often set pricinnull, in their chosen market senullents of participationnullnullnners drive business leadership by combininnull three elementsnullnullrstly, nullnners possess a comprehensive understandinnull of the core competencies in each businessnullnullcondly, nullnners develop a uninullue business model that leveranulls these competencies to both create value for their customers and capture and defend this value for themnullnullirdly, nullnners focus their participation in customer senullents in which this business model is advantanulld, with the total sinull of the customer senullents larnull enounull to allow for business unit scale, inullnullthe business is viable even by focusinnullexclusively on these senullentsnullnullor nullnners, business leadership manifests itself in the financial performance of their reportinnullsenullents, which achieve leadinnull market shares or the hinullhest level of risk-adjusted profitability in the broadly defined markets for the products that they sellnullnullo illustrate, letnull look at nullnull Industriesnull nullnull Industries, based in nullanada, is a nullobal supplier of labels and label technolonully to businesses as well as individualsnullnullnull, whose market capitalinulltion has risen by nullnullnullsince the benullnninnullof null1null serves has a prime example of the importance of occupyinnull leadership positions in areas of participationnullOver nullnullof the companynull revenue comes from its three larnullst business unitsnullnullnull nullabel, nullvery, and nulleckpoint nullstemsnullnullch of these three businesses is a leader in its respective marketnull null nullabel is the worldnull larnullst converter of pressure sensitive and specialty extruded film materialsnullnullvery is the worldnull larnullst supplier of labels and label software for short-run printinnullby businesses and individualsnullnulleckpoint nullstems has an approximate market share of nullnullin electronic article surveillance nullnullnull label technolonullynull nullnullnull scale means that its businesses have the ability to invest in the state-of-the-art manufacturinnullfacilities and new technolonulles renulluired to stay ahead of the competitionnullnulldditionally, as a price-setter in its primary markets, nullnullnull can pass increases in raw material costs on to its customersnullnullookinnullmore closely at the nullvery business senullent, we can clearly see the effect that industry leadership has on the companynull profitabilitynull very has achieved a level of brand reconullition that is uninullue in its industry, allowinnullit to market its products directly to consumers in a way that most companies in the packanullinnullindustry cannotnullnullvery can also charnull a price premium for its branded products, which is uninullue in an otherwise commoditinulld marketnull nulls a result, nullverynull nullInullnull marnulln has hovered around nullnullover the past nullyears compared to a packanullnnullindustry averanull of about 1nullnull nulls the packanullnnull industry undernulles an era of unprecedented disruption, nullinners are findinnull it increasinnully necessary to embrace innovationnull In null1null nullnners had median nullnullspend of nullnull1nullnullm of revenue on nullnullnull compared to nullnullnull 5nullnull m for nullnderperformersnull Over the past five years, nullnners have nullown their nullnullbudnullts by a median of nullnullcompared to -null for nullnderperformersnullnullinnullat the forefront of innovation and emernullnnulltrends is essential for nullnners to maintain their ability to continue settinnullthe anullndas in their respective marketsnull8 Roland Berger Focus Winning in the packaging world2 |WINNERS HAVE STRATEGIC COHERENCEnullratenullc coherence benullns with stratenullc intentnull nullnners articulate a clear vision that describes what they want to be, supported by a distinct, overarchinnull value proposition that captures what they stand for as a companynullOnce a company has defined its stratenullc intent, it then needs to focus on buildinnull a portfolio of businesses that is coherent with this intentnull e believe a disproportionate amount of attention is nullven to the synernully potential of businesses within a portfolio rather than the coherence of these businesses to the stratenullc intentnull In our view, synernulles nullroduction assets, customers, marketsnull help maximinull the value of a stratenullcally coherent portfolio or enable a buyer to ascribe value to an acnulluisition tarnullt but should not be paramount to the stratenullc rationale behind a combination or a divestiturenullnullnners tend to promptly divest businesses that are neither coherent nor have such a cash nullneration or efficiency role to play in the transition towards
展开阅读全文