Unilever’s Half-year results: performance reflects agility and resilience of the business

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Unilever’s Half-year results: performance reflects agility and resilience of the business

Today, Unilever announced its results for the first half of 2020, which show that overall underlying sales declined 0.1%, with developed markets up 2.4% and emerging markets down 1.9%.

  • Underlying sales declined 0.1% with volume declining 0.3% and price growth of 0.2%
  • Turnover decreased 1.6% including a positive impact of 1.1% from acquisitions net of disposals and negative impact of 2.5% from currency
  • Underlying operating profit excluding currency increased by 3.8%, before a negative impact of 3.2% from currency
  • Underlying earnings per share up 6.4%, including a negative impact of 3.7% from currency
  • Free cash flow up €1.3 billion to €2.9 billion, reflecting our objective to protect cash during the crisis
  • Quarterly shareholder dividend maintained at €0.4104 per share
  • Completed acquisitions of Horlicks brand from GSK, enhancing presence in healthy nutrition
  • Announced plans to unify the Group legal structure under a single parent company

A statement from CEO Alan Jope

“Performance during the first half has shown the true strength of Unilever. We have demonstrated the resilience of the business – in our portfolio, in a continued step-up in operational excellence, and in our financial position – and we have unlocked new levels of agility in responding to unprecedented fluctuations in demand.

We have also taken action to strengthen the strategic future of the company by announcing proposals to unify our dual-headed legal structure, progressing the strategic review of our global tea business and making new commitments to help protect the climate and regenerate nature.

From the start of the Covid-19 crisis, we have been guided by clear priorities in line with our multi-stakeholder business model to protect our people, safeguard supply, respond to new patterns of consumer demand, preserve cash and support our communities.

Our focus for the rest of 2020 will continue to be volume led to competitive growth, absolute profit and cash delivery, as this is the best way to maximise shareholder value.

I would like to thank every member of the Unilever team for the outstanding commitment they have shown in the most difficult of circumstances.”

Our markets

The spread of Covid-19, combined with the lockdowns and restrictions that have been implemented in many countries, has led to significant changes in the operating environment in our markets. Consumer demand patterns have been impacted by channel closures, more time spent in the home and the critical importance of hygiene.

China was the first of our markets to be impacted by Covid-19, entering lockdown in January. China slowed significantly during the lockdown period, with some recovery after April as the economy opened back up.

In most other major markets, sales patterns in January and February were normal and Covid-19 impacted from March onwards. In North America and parts of Europe, there was a positive impact from household stocking in March. Consumption patterns then normalised in the second quarter with heightened levels of demand for hygiene and in-home food products.

Market growth in India had already been slowing prior to the spread of Covid-19 and the market was further impacted by the introduction of the strict national lockdown at the end of March.

This national lockdown continued until early June when it was followed by further regional lockdowns. Latin America was impacted by Covid-19 later than other major markets, with the effects primarily in the second quarter, exacerbating already challenging conditions in the region.

Overall performance

Underlying sales declined 0.1% with volumes declining 0.3% and price growth of 0.2%. Developed markets grew by 2.4% whilst emerging markets declined by 1.9%.

The impact of Covid-19 on our business in the first half varied widely across our channels and categories. Channel closures as a result of lockdowns in our markets negatively impacted our food service, out-of-home ice cream and Prestige businesses.

Foodservice declined by nearly 40% and out-of-home ice cream declined by nearly 30%. Shoppers moved from offline to online channels, driving eCommerce growth of 49%.

As people spent more time in their homes, we saw growth in-home consumption of foods, ice cream and tea. It also meant that consumers had fewer personal care occasions from going to work or socialising, and we saw a decline in our personal care business, except for hygiene products.

The effectiveness of good hygiene practices against the spread of Covid-19 increased demand for our hand and home hygiene products, which each grew double digits.

Consumers eating and cleaning more at home, and focusing more on hand hygiene, led to underlying sales growth in North America of 9.5% in the second quarter, despite a negative impact of 3.7% from food solutions and Prestige channel closures.

The lockdowns introduced in our markets during the first half varied in severity, with some having a more significant impact on the supply and availability of goods, particularly those in India and China.

China entered lockdown in January and declined mid-teens during the first quarter. The market reopened from April, and China returned to mid-single-digit growth in the second quarter. Growth in India was impacted by the lockdown implemented from March.

Turnover decreased by 1.6%. There was a positive impact of 1.1% from acquisitions net of disposals and a negative impact of 2.5% from currency.

Underlying operating profit was €5.1 billion, an increase of 3.8% excluding a negative impact from currency of 3.2%. Underlying operating margin improved by 50bps.

As consumer habits and the status of lockdowns have been changing during this period, we have been quick to adapt and reallocate our brand and marketing investment week-by-week.

In response to lockdowns in our markets, we reduced spend in some channels and geographies while maintaining investment in growth opportunities. This, combined with a deflationary environment in media rates, led to a reduction in brand and marketing investment by 100bps during the period.

In the second half of the year, we expect to see higher brand and marketing investment, as lockdowns ease and we support brand campaigns and product innovations tailored to the new environment.

Gross margin reduced by 30bps driven by costs to adapt and run our supply chain in response to Covid-19, ensuring the safety and continuity of our operations, as well as an adverse mix effect. Overheads increased by 20bps, including an adverse currency mix.

We delivered free cash flow of €2.9 billion, an increase of €1.3 billion. The increase was driven by favourable working capital movements, reduced capital expenditure and lower cash tax paid, primarily a result of a higher tax on disposals in the prior year relating to the disposal of the spreads business.

Covid-19 response and support measures

We have put in place a wide-ranging set of measures to support global and national efforts to tackle the Covid-19 pandemic.

In our own operations, strict protocols for hygiene and physical distancing are in place for our sourcing units and distribution centres. Our office-based employees have been working from home since March, with some limited reopening of office workplaces in selected countries, where stringent requirements have been met.

We are supporting global efforts to tackle Covid-19, contributing €100 million through donations of soap, sanitiser, bleach and food. We are also working in partnership with others, including a programme to reach up to a billion people globally with the UK Department for International Development to urgently tackle the spread of the disease through raising hygiene awareness and changing behaviour.

We have also made available up to €500 million of cash flow relief for our most vulnerable small and medium-sized suppliers, though so far the levels of uptake have been low.

Our financial strength remains robust and we have not sought Covid-19 related financial support from any governments.

Strategic review of tea

In January, we announced a strategic review of the global tea business, which includes leading brands such as Lipton, Brooke Bond and PG Tips.

This review has assessed a full range of options. We will retain the tea businesses in India and Indonesia, and the partnership interests in the ready-to-drink tea joint ventures.

The balance of Unilever’s tea brands and geographies and all tea estates have an exciting future, and this potential can best be achieved as a separate entity. A process will now begin to implement the separation, which is expected to conclude by the end of 2021.

The tea business that will be separated generated revenues of €2 billion in 2019.

Recent acquisitions

During the second quarter, we completed the acquisitions of the health food drinks portfolio of GlaxoSmithKline in India, Bangladesh and 20 other predominantly Asian markets. Acquiring the iconic brands Horlicks and Boost are in line with Unilever’s strategy to enhance its presence in healthy nutrition.

Beauty & Personal Care

Beauty & Personal Care underlying sales declined by 0.3%, with volume growth of 0.1% and negative pricing of 0.4%.

Skin cleansing saw mid-teens volume-led growth, as we quickly responded to the critical need for hand hygiene to prevent the spread of Covid-19. We rolled out our Lifebuoy hygiene brand to over 50 markets and increased our hand sanitiser capacity by around 600 times across several brands. This helped contribute to double-digit growth for Suave.

Lockdowns in our markets and reduced personal care occasions amidst restricted living led to lower demand for skin care, deodorants and hair care, which each saw volume and price decline. The division’s largest brand Dove remained resilient, with mid-single-digit growth.

Our Prestige portfolio was impacted by health and beauty channel closures in many markets. Consumer oral care demand remained robust. However, the category saw negative volumes related to the disruption caused by lockdowns in key markets.

Home Care

Home Care underlying sales grew 3.2%, with 2.9% from volume and positive pricing of 0.3%.

We saw increased consumer demand for household cleaning products, such as Cif surface cleaners, and our home and hygiene brands delivered high-teens underlying sales growth. Working with environmental health experts, Domestos educated consumers about targeted cleaning of high-touch surfaces in the home to help prevent the spread of Covid-19 and saw strong double-digit growth.

Strict lockdowns in Asia impacted fabric solutions, which declined overall. However future formats such as capsules and liquids continued to grow. Clean and green brand Seventh Generation saw strong double-digit, volume-led growth. Fabric sensations declined low-single digit, driven by Brazil and China.

Foods & Refreshment

Foods & Refreshment underlying sales declined 1.7%, with volumes down 2.5% and positive pricing of 0.8%.

Lockdowns in most markets led to the closure of out-of-home channels. This, together with reduced tourism, led to a reduction in out-of-home ice cream sales of nearly 30%. Similarly, foodservice sales were down around 40% as hotels, restaurants, cafes and bars closed.

At the same time, we saw double-digit growth in our retail foods business with Knorr and Hellmann’s performing strongly.

Sales of ice cream for consumption in-home increased by 15% in the first half and by 26% in the second quarter, significantly offsetting the declines in out-of-home channels. Magnum and Ben and Jerry’s continued to grow strongly.

Nigeria’s VFD Targets 2022 Financial Services IPO, Says CEO

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Nigeria’s VFD Targets 2022 Financial Services IPO, Says CEO

VFD Group Plc, a proprietary investor in financial services companies, is targeting a 2022 initial public offering on the Nigerian stock exchange, CEO Nonso Okpala tells The Africa Report.

The Lagos-based company has appointed Kairos Capital to help it seek Nigerian and international investors, says Okpala, who holds about 24% of the company. He plans to keep his stake after the IPO.

VFD, which started operating in 2011, currently trades on the NASD over-the-counter (OTC) exchange, an alternative market for west African securities. It became a public company in January 2019 and pays regular dividends to its shareholder base of more than 60,000. Its investments include a stake of 35% in Abbey Mortgage Bank, a majority stake in Anchoria Asset Management, and a wholly-owned microfinance unit.

The company, which more than doubled its full-year profit in 2019, also owns Everdon Bureau de Change, Dynasty Real Estate and the Transfercorp remittances service. Receipts from the main list IPO, says Okpala, would be used to build the VFD “ecosystem” which aims to provide a full range of financial services for families and businesses.

Mortgages are a key part of the strategy. According to the Centre for Affordable Housing Finance in Africa (CAHF), the number of outstanding mortgages in Nigeria in 2019 was just 113,000.

The ratio of mortgages to GDP at 0.3% was one of the lowest in the world, held back by high-interest rates and equity requirements of 20% for mortgage loans. CAHF says that progressive use of credit bureaux by lenders is improving risk management.

Nigeria’s mortgage market remains “very untapped, with huge potential,” notes Okpala. The company’s virtual banking platform is the “key to the whole ecosphere,” he adds. VFD has no exit strategy for its investments. “We don’t buy to sell. We buy to keep the company and integrate it into our platform.” COVID-19 impact

The COVID-19 pandemic has had no impact on the company’s operating strategy or its IPO plans, Okpala says. VFD’s first-quarter profit declined by 75%. The microfinance business was negatively affected by lockdown, with some clients unable to repay their loans.

Depending on the customer’s business, VFD was able to help with logistical advice and equipment purchase, Okpala says. For businesses that weren’t able to adapt, loans were suspended and rescheduled, with moratoriums being granted for the duration of lockdown. When a company can’t pay, “it’s best to structure the business so that it continues to exist.”

The company’s V digital banking application launched at the start of March drew more users as people needed to find a way to carry out virtual banking during the lockdown, he says. VFD itself was able to save on a planned office expansion which it realised was no longer necessary. It now gives employees the option to work remotely.

“Productivity has increased” as a result meaning “a double advantage,” adds Okpala. The pandemic “has taught us a lot about the running of the company in a cost-effective manner.” The company, which has a stake in the Atiat vehicle and equipment leasing business, is considering branching out into non-core financial services businesses such as an auto purchase. It is also studying expansion into foreign markets such as Ghana.

In the process, Okpala hopes that VFD will break with what he calls Nigeria’s tradition of “one-man businesses. We want an institutional strategy. Patient capital needs an institutional process.”

Bottom Line

Homegrown companies like VFD may be better placed than foreign multinationals to tackle Nigeria’s financial services deficit.

Her Excellency Ellen Johnson Sirleaf makes impassioned speech at Hogan Lovells seventh Africa Forum

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Her Excellency Ellen Johnson Sirleaf makes impassioned speech at Hogan Lovells seventh Africa Forum

International law firm Hogan Lovells hosted its seventh annual Africa Forum recently, with Her Excellency Ellen Johnson Sirleaf, First Female President of Liberia and Nobel Peace Laureate, featuring as a keynote speaker to an online audience of business leaders.

Themed “Growth and Sustainability”, this year’s forum assembled panellists to discuss Africa’s business-critical challenges emerging from the global pandemic of COVID-19, as well as the effects of climate change, and the importance of leaders who are championing the continent towards sustainable future growth.

With over 400 online attendees, sessions covered impact financing, risk management, the role of government and public sector in delivering a positive and sustainable narrative for Africa, the continent’s energy landscape, and how to become a trailblazer as an African woman.

Addressing the global pandemic, Her Excellency comments, “The prevailing wisdom in our continent will survive this pandemic but the effects it will leave are enormous. For Africa … mitigating interventions include increasing resources from multilateral lending agencies, direct support to keep households afloat and businesses solvent, and scaling up support to the informal sector, which predominantly employs women.”

“The truth is that unless we address the issues of the pandemic and its presenting challenges … not only are we all ultimately susceptible to poor health but also we risk all other aspects of our collective existence and enduring partnerships.”

On climate change, Her Excellency adds, “It has been said climate change poses a relationship between energy and development. It has redefined the relationships and expectations between business, governments and people.

It is a fact that Africa, unlike other regions of the world, has contributed less to the climate crisis we now face. However, such is the interconnectedness of our world that despite this and the fact that many on the continent are without electricity, Africa faces a higher burden than most on changes for the climate.

Is Africa ready for sustainable values? Is Africa ready to resume full responsibility for its development? Yes. Africa is ready.”

Head of Hogan Lovells Africa Practice, Andrew Skipper, says, “I was delighted to host our seventh Africa Forum virtually and with such an exceptional array of speakers. We at Hogan Lovells were determined to remain present in Africa despite being in the midst of the global pandemic, and we did so.

To say COVID-19 has changed the world is an understatement and featured as a backdrop to our discussions. The immediate and lasting effect of the virus is still reverberating, and while it will undoubtedly have a fundamental impact on the way we do business in Africa, from Africa and across Africa, the positive and robust discussions showed a way forward brimming with hope.”

“Looking back to 2019, the adverse impact of climate change around the world had even the most hardened sceptics paying attention. The continent of Africa is one of the most vulnerable to the forces of climate change, although it contributes the least to global warming.

Nevertheless, the forum showed there is much optimism for championing Africa as a leader in sustainable future growth and hope for future generations,” concludes Skipper.

Buhari most followed Sub-Saharan African leader on Twitter – BCW study reveals

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Buhari most followed Sub-Saharan African leader on Twitter – BCW study reveals

President Muhammadu Buhari has emerged the most followed Sub-Saharan African leader on Twitter during the Covid-19 pandemic, reveals leading global communications agency Burson Cohn & Wolfe (BCW) on Tuesday, July 21.

The newly released BCW Twiplomacy study 2020, which focuses on how world leaders have tweeted during the coronavirus pandemic and how Twitter has tried to keep the chatter clean from disinformation reveals that President Buhari recorded 3.1 million followers ahead of President Paul Kagame of Rwanda’s 1.9 million followers.

PMB’s Twitter follower growth within the period when Coronavirus emerged in Mid-March until June was 51 per cent.

Commenting on the outcome of the research, Chief Innovation Officer, BCW (Burson Cohn & Wolfe), Chad Latz said “It is therefore vital for world leaders to use channels like Twitter to reach out to their followers to spread critical health warnings and keep their followers abreast of the latest COVID-19-related information.

As the pandemic abates in some countries, world leaders will find themselves with an expanded audience for future engagement.”

Group Managing Director CMC Connect BCW (the affiliate company of BCW in Nigeria); Yomi Badejo-Okusanya commended the BCW global network for the professionalism that culminated in the timely release of the study.

“This report will encourage leaders who have been lagging behind to tap into opportunities provided by social media to communicate rightly by increasing their activities on the platforms to educate and inform their people.

COVID 19 has changed many around the globe, and in Africa the need to communicate what the government is doing and saying shows some level of transparency”, he added.

The 2020 Twiplomacy edition reveals that governments and leaders of 189 countries had an official presence on the social network, representing 98 percent of the 193 UN member states. The leaders use Twitter to share critical coronavirus information and encourage their citizens to “stay home” and “stay safe.”

Many leaders have been leading by example and updating their Twitter profiles, wearing a face mask and participating in the #SafeHands challenge. World leaders and diplomats also had to adapt to working from home and have been thrust into video conferences, making diplomacy truly digital.

Globally, US President Donald Trump is still the most followed world leader with more than 81 million followers and counting, while the governments of four countries namely Laos, North Korea, Sao Tome and Principe and Turkmenistan do not have a Twitter presence.

Meristem H2:2020 Outlook – Unmasking Value in a Scourge

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Meristem H2:2020 Outlook – Unmasking Value in a Scourge

It has been a testing first half of the year, as the turn of events has differed markedly from general expectations. The emergence of COVID-19 in China, and its swift spread across the world, has significantly changed the global landscape, and its effects are expected to be worse than the Great Financial Crisis.

Already, global growth projections for the year have been cut and, for the first time, all economic regions except China are expected to slump into a recession at the same time. While recovery is expected in 2021, the effects of the virus are expected to stay with us for longer.

The domestic economy has not been immune from the economic fallout caused by the virus. Even though economic output expanded in the first quarter, the outlook for the rest of the year is less benign as the virus is set to amplify existing growth impediments.

We witnessed multiple currency depreciation in the first half, as weakness in the current account balance along with foreign capital reversals tested the ability of the CBN defends the currency.

Events in the financial markets have also mirrored the current macroeconomic backdrop, as both the equities and fixed income markets have been unable to provide a positive real return to investors. However, even amidst the uncertainty, shrewd investors have been able to unearth value and reap inflation-beating portfolio returns.

In this report, we examine some of the key themes that are set to impact the economy and financial markets in the second half of the year and, as usual, we offer our guidance on how investors can unmask value amidst the scourge.

Click on the link below to access the full report:

Meristem H2_2020 Outlook- Unmasking Value in a Scourge

Nigerian Equity Market in H2-2020: On a slow path to total recovery?

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Nigerian Equity Market in H2-2020: On a slow path to total recovery?

The Nigerian equity market performance in H1-2020 was a tale of two quarters. Notably, the market tumbled by more than 20.0% in Q1-2020 as FPIs and local investors flew to safety amid the collapse in oil prices and currency adjustments.

However, the stock market recovered by more than half the initial downturn in Q2-2020, spurred by demand from local investors with excess liquidity and few high-yielding investment outlets.

Looking ahead, our overall outlook for equities is lukewarm in H2-2020, despite the expansionary monetary policy stance in the global space and the renewed domestic interests pushing stock prices towards pre-pandemic levels.

Although the argument for continued recovery is increasingly compelling from a technical standpoint, we note that weaker company fundamentals heightened by the COVID-19 pandemic, currency movement risks and capital control at the I &E window, are key downside risks that could curtail further recovery.

As a result, we expect the market to remain highly volatile for the rest of the year and ‘short-term gain’ driven. In all, we peg our base case scenario for the YTD performance of the NSE ASI in 2020 at -4.1%. However, we believe these times provide opportunities for long term investors, as stocks that have stood the test of time are still relatively cheap.

UNITED CAPITAL RESEARCH

Poly Says Hybrid Working is the New Collaboration Imperative

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A new report reveals that astutely navigating work practices, spaces and culture will help respond to crisis, redefine the purpose and reinvent the future of work

 

SINGAPORE – Media OutReach – July 23, 2020 – Plantronics, Inc. (“Poly” — formerly Plantronics and Polycom) (NYSE: PLT), a global communications company that powers meaningful human connection and collaboration, today issued a new report that highlights a granular shift in focus from “place” to “purpose” of work as businesses respond to the COVID-19 crisis, redesign their operations and reinvent the way they work. Out of city co-working spaces, ergonomic at-home work setups and virtual water cooler moments — the effects of this pandemic will epitomize a new age of hybrid working.

 

Drawing on experts in the future of work, workspace design and psychology, the Poly report, Hybrid Working: Creating the “next normal” in work practices, spaces and culture, sets out the path to the “next normal,” where employees enjoy flexibility and choice, and businesses thrive through motivated, collaborative and productive teams.

 

“The ongoing pandemic has upended the way businesses operate in the region, with organizations forced to either adapt, or risk being left behind. Looking beyond the first phase of workplace transition to adopt Remote Working, we are now witnessing a shift towards a new way of work – Hybrid Working. Businesses that stand to thrive in this ‘next normal’ will be those who prioritize human connections and collaborations as they look to reinvent current work practices, spaces and culture for their employees,” said Pierre-Jean Châlon, Senior Vice President, Asia Pacific, Poly.

 

Post-lockdown working practices

Triggered by COVID-19, businesses have the opportunity to challenge convention and redefine what ‘work’ really means. Hybrid working will introduce:

  • New working patterns — new working policies that bring employees flexibility on when and where they work
  • Outcome-based working — taking the onus off the hours and location, to being productive and delivering results
  • Optimized investment — looking beyond the company office to create collaborative, technology-enabled personal workspaces anywhere

 

Tom Cheesewright, applied futurist and contributor to the Poly report, said: “Even before the pandemic, the nature of work was changing because the nature of business is changing. Today, few can claim that the technology is a barrier to changing practices, but the lockdown has highlighted the need for investment into the cultural and behavioral components of flexible work. The future is a flexible working environment that caters to the needs of all employees, giving them the most fulfilling work experience and in return allowing them to maximize the value they return to the organization.”

 

Hybrid working spaces

In the report, Sarah Susanka, architect and founder of Susanka Studios, also explores why creating the best environments for employees to be productive and collaborative will be vital to the new hybrid working era. Poly’s report sets out the following key global trends for hybrid working spaces that will emerge in 2020 and beyond:

  • Home offices will be given as much attention as the kitchen — ergonomically organized and crafted into places that inspire
  • A prevalence of co-working — organizations will invest in co-working spaces outside of cities to attract talent. Group collaboration and social connections with colleagues and others will lead to cross-fertilization of ideas and innovation
  • Cityscapes will change — Will we continue to see high-rise office buildings? The city as a structure will stay as apartment living means the city is integrated into people’s lives; restaurants are an extension of their kitchen and gyms their workout space.

 

Managing cultural change

Megan Reitz, professor of leadership and dialogue at Hult Ashridge Business School in CITY, believes that businesses need to ‘hardwire’ fundamental habits into their teams’ culture to bring hybrid working teams together and ensure employees can speak up. For teams to be agile, innovative, ethical and compassionate, Poly’s report says that work cultures need to be:

  • Inclusive — diverse teams do better, but you must be able to harness and appreciate difference.
  • Inquiring — ‘one-size’ management doesn’t fit all. Employees will respond differently to hybrid working and managers must learn the skills to inquire, be curious and ask questions.
  • Purpose driven — we are seeing a well-overdue widening of purpose and this focus on impact will serve as a compass in times of change and make for a more meaningful workplace.

 

Technology-enabled change

As organizations respond, redesign and reinvent their business models, technology will play a fundamental role in enabling the shift to hybrid working. “As teams become more disconnected physically and connected virtually, technology becomes the key that bridges communication between and across teams to optimize work efficiency and productivity,” says Chalon. “To stay ahead of the curve, businesses will need to respond, redesign and reinvent their practices and meet their challenges head on, adapting to whatever changes they face.”

 

The Poly report, Hybrid Working: Creating the “next normal” in work practices, spaces and culture, is available for download here. The infographic is available here. 

 

About Poly

Plantronics, Inc. (“Poly” — formerly Plantronics and Polycom) (NYSE: PLT) is a global communications company that powers meaningful human connection and collaboration. Poly combines legendary audio expertise and powerful video and conferencing capabilities to overcome the distractions, complexity and distance that make communication in and out of the workplace challenging. Poly believes in solutions that make life easier when they work together and with our partners’ services. Our headsets, software, desk phones, audio and video conferencing, analytics and services are used worldwide and are a leading choice for every kind of workspace. For more information, please visit: www.poly.com.

Poly, the propeller design, and the Poly logo are trademarks of Plantronics, Inc. All other trademarks are the property of their respective owners.

Infor and DBS Bank partner to integrate digital trade financing into global supply chains

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Digital trade platform rich with physical & financial supply chain data creates new opportunities to fund suppliers

 

NEW YORK / SINGAPORE – Media
OutReach – July 23, 2020 – Infor, a global leader in business cloud
software specialized by industry, today announced that it is partnering with DBS
Bank, Southeast
Asia’s largest bank, to integrate digital trade financing capabilities into the
Infor Nexus global network of more than 68,000 businesses. The two companies’
first joint program recently went live with one of the world’s largest global apparel
companies, providing faster and more cost-efficient digital trade financing to
suppliers in the apparel company’s supply chain ecosystem, which comprises
mostly small-to-medium-sized enterprises (SMEs).

 

“This
is an important relationship for Infor, where a common vision of data-driven
financing bonds us and presses us forward,” said Gary Schneider, Vice President
of Sales for Infor Financial Supply Chain Management. “DBS is a digital bank,
based in Asia, focused on supplier funding and liquidity. Its pursuit of digital
innovation and delivering greater value to supply chains, combined with our
cloud-based platform and local support team around the globe, makes for a
powerful partnership at a time when liquidity is a top priority for everyone.”

 

Sriram
Muthukrishnan, Group Head of Trade Product Management, DBS Bank, said, “We
continue to accelerate the deployment of our market-leading supply chain
financing and digital capabilities to ensure steady financing to SME suppliers
during these times of stress.  Data forms
the backbone of a successful digital strategy and its impact across multiple
industries globally has been growing exponentially.

 

“Our
collaboration with Infor enables greater transparency into complex supply
chains and provides insights into the transaction patterns between an anchor
and its ecosystem of suppliers,” he noted. “We leverage these insights to provide
quicker and more cost-efficient financing to suppliers much earlier in the
cycle, as compared to conventional post-shipment supplier financing programs.
This is especially relevant today, as we continue to operate in an environment
characterized by prolonged trade disruptions and tighter credit lines, where
optimal working capital management is key to survival.”

 

The
two companies’ next joint program for pre-shipment finance, expected to launch in
late 2020, will utilize supply chain data as the primary conduit to assess risk
and credit worthiness, as opposed to traditional models that result in the
majority of suppliers being under-funded or facing challenges to access
necessary capital. Infor provides extensive supply chain data, including
historic and real-time milestone information on the physical movement of goods,
to enable a data-driven representation of a supplier’s performance and credit
risk.

 

According to a research report from
Aite Group analyst Enrico Camerinelli (The Supply Chain Bank, 2018), “In
the next three years, the competitive frontier in corporate lending and supply
chain finance will be the creation of innovative credit risk models that banks
will use to leverage corporate supply chain process data. Banks will capture
and analyze events in the physical supply chain (source-to-pay, order-to-cash)
in order to generate a more comprehensive and realistic representation of a
company’s risk profile.”

Additional Resources

Watch the SCF Community’s recent webinar, “New ways to finance SMEs,” during which Infor and DBS discuss innovative
supplier financing tools to help reduce supply chain risk and friction. 

 

Media contacts:

Steve Bauer

Infor

(628) 444-5101 (office)

(650) 670-7135 (mobile)

steven.bauer@infor.com

 

Phyllis Tan

Infor

+65 9799 9133 (mobile)

phyllis.tan@infor.com

 

Michelle Tan

Group Strategic Marketing and Communications

DBS Bank

+65 9770 1886

michelletanyz@dbs.com

About DBS

DBS
is a leading financial services group in Asia with a presence in 18 markets.
Headquartered and listed in Singapore, DBS is in the three key Asian axes of
growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1”
credit ratings are among the highest in the world.

DBS provides a full range of services in consumer, SME and corporate banking.
As a bank born and bred in Asia, DBS understands the intricacies of doing
business in the region’s most dynamic markets. DBS is committed to building
lasting relationships with customers, and positively impacting communities
through supporting social enterprises, as it banks the Asian way. It has also
established a SGD 50 million foundation to strengthen its corporate social
responsibility efforts in Singapore and across Asia.

With its extensive network of operations in Asia and emphasis on engaging and
empowering its staff, DBS presents exciting career opportunities. The bank
acknowledges the passion, commitment and can-do spirit in all our 28,000 staff,
representing over 40 nationalities. For more information, please visit www.dbs.com.


About Infor

Infor is a
global leader in business cloud software specialized by industry. With 17,300
employees and over 68,000 customers in more than 170 countries, Infor software
is designed for progress. To learn more, please visit www.infor.com.

 

Infor
customers include:

  • The top 20 aerospace companies
  • 9 of the top 10 high tech companies
  • 14 of the 25 largest U.S. healthcare
    delivery networks
  • 19 of the 20 largest U.S. cities
  • 18 of the top 20 automotive suppliers
  • 14 of the top 20 industrial
    distributors
  • 13 of the top 20 global retailers
  • 4 of the top 5 brewers
  • 17 of the top 20 global banks
  • 9 of the 10 largest global hotel
    brands
  • 7 of the top 10 global luxury brands

The US, Australia and Canada lead, but no G20 country is fully prepared for the needs of ageing populations, according to new research from the Economist Intelligence Unit

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  • The US ranks the highest
    globally in creating an enabling environment supportive of longevity and
    healthy ageing with an overall score of 76.1 out of a possible 100
  • Canada (3rd) and Brazil (11th) score
    above the global average of 50.4, while Argentina (13th) and Mexico (14th) have
    further room to improve their response
  • Countries with the oldest
    populations are better positioned to address the needs of older people across
    the globe
  • Although high-income countries
    are more prepared, upper middle-income countries such as Brazil are making clear
    progress
  • Older people’s views are not
    well represented in policy consultation
  • Availability of health and
    social care remains a concern with supply of services increasingly failing to
    keep up with demand

 

HONG KONG, CHINA – Media OutReach – 22 July 2020 – More
people are living into old age than ever before. In 2018 The World Health
Organization predicted that by 2020 there would be more people aged over 60
years than there are children under 5 years. This prediction is on track to be
correct,and numbers in the older cohort continue to rise. This has
created challenges in providing health and social services for burgeoning older
populations and governments across the globe have been slow to react.
Priorities are now shifting from solely addressing the health of older people,
to how societies can maximise this opportunity and provide effective, inclusive
environments in which to age.

This report from The Economist Intelligence Unit describes
findings from the “Scaling Healthy ageing, Inclusive
environments and Financial security Today” (SHIFT) Index“, a benchmarking analysis around ageing
societies, supported by Amgen. The SHIFT
Index benchmarks against a set of national-level leading practices in
creating an enabling environment supportive of longevity and healthy ageing for
societies in the 19 countries comprising the Group of Twenty (G20). The SHIFT Index captures the multifactorial
variables that impact ageing across three domains: adaptive health and social
care systems; accessible economic opportunity; and inclusive social structures
and institutions.

The research found that no G20 country is
fully prepared to support healthy, financially secure, socially-connected older
people. The US, Australia, Canada and South Korea ranked highest in our index
with scores in the 70s out of 100 (see table below). Broadly, those countries
with a higher proportion of people aged over 50–including the three highest ranking countries plus South Korea,
Germany, France and Japan–are implementing more
leading practices to enable inclusive environments. Wealthy countries may find
it easier to respond, but wealth is not a prerequisite for providing supportive
environments. The best scoring health systems tend to be high-income countries,
but upper-middle income Brazil, and lower-middle income Indonesia are also
making strides to improve health systems.

As a whole, the G20 countries perform best
in providing adaptive healthcare systems and worst in providing inclusive
social structures and institutions, indicating that countries still have work
to do to shift the focus towards building more welcoming societies for older
adults as they age. Countries also have room to improve in providing more
accessible economic opportunities to older workers.

 

Despite clear progress made, governments
have more work to do to make sure their health systems are adaptive to the
needs of older adults as they age, while also fostering inclusion and ensuring
individual economic security. A key
barrier to addressing this is lack of robust age-disaggregated data collection
by governments in areas such as dedicated health professionals, the extent of
isolation and loneliness as well as mental health.

 

The SHIFT
Index reveals several priority areas that may form the basis of policy
responses to develop more accessible and inclusive societies for older people:

 

  1. Collect better data: Countries
    should collect and publish detailed, age-disaggregated health and economic data
    annually so policymakers can develop evidence-based programs and policies.

  2. Address poverty among older
    people: Some older adults choose to work longer, others must. Governments can
    ensure the financial health and security of older adults by creating more
    inclusive work environments. This starts with removing barriers to working
    longer that exist in some markets.

  3. Prevent a care crisis among the
    elderly: The provision of care for older adults–both formal and informal–and
    the accessibility of, or access to, long-term care is ill-defined and is an
    area for further research.

  4. Enable older people’s voices to
    be heard: The views and needs of older people are not routinely collected and
    they are not represented well in policy consultation.

  5. Address age-related
    discrimination: Few countries categorise age-discrimination as a crime outside
    of employment practices. Fighting discrimination as well as physical, emotional
    and financial abuse of older adults, will encourage greater social cohesion
    across generations.

  6. Support training and upskilling
    of older people: Supporting older people with the skills and help needed to
    navigate increasingly complex and digitised health and social care systems
    should be an area of focus.

 

Jesse Quigley Jones, managing editor at The
Economist Intelligence Unit and editor of the report, said, “The challenges
that ageing populations present for economies and health systems have long-been
understood, yet provision of inclusive, supportive environments for older
people has not been a high-profile policy priority. Although wealth has emerged
as a theme in the Index as a contributing factor towards healthy ageing
indicators, it is not necessarily a prerequisite for providing supportive
environments. Lower-income nations can take low-cost measures that improve
ageing societies, such as enacting inclusive work environment policies and
fostering inclusive and enabling social environments.

 

With older people particularly vulnerable
to the health and societal impact of the covid-19 pandemic, it is more
important than ever for older people to lead healthy, independent lives for as
long as possible and avoid the need for institutional care. While our data were
collected pre-pandemic, the priorities identified in the report are now thrown
into sharper light and may serve as a wakeup call for governments across the
globe for providing adaptable, accessible and inclusive environments in which
populations can age.”

 

For
the whitepaper, infographic and index workbook, please visit
ageingshift.economist.com

About the research

Shifting demographics: a global study on
inclusive ageing is a report by The Economist
Intelligence Unit, supported by Amgen. It considers policy efforts to address
active and inclusive ageing in 19 countries based on a first-of-its-kind index
that benchmarks each country’s performance across accessible and affordable
healthcare, social connectivity among older adults, and finance security practices
and policies.

The “Scaling Healthy ageing, Inclusive
environments and Financial security Today” (SHIFT) Index and the related
research programme whose findings form the basis for this report were informed
by extensive research and guided by an international panel of experts from
across academia, government, non-governmental organizations (NGOs) and
international financial institutions.

The following 19 countries (comprising
the G20 and excluding the EU) are included in this analysis: Argentina, Australia,
Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico,
Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK and the US.
These were selected to broadly represent the world: covering roughly 65% of the
population and 75% of global GDP.

About The Economist Intelligence Unit

The Economist
Intelligence Unit is the world leader in global business intelligence. It is
the business-to-business arm of The Economist Group, which publishes The
Economist newspaper. The Economist Intelligence Unit helps executives make
better decisions by providing timely, reliable and impartial analysis on
worldwide market trends and business strategies.

More information
can be found at www.eiu.com or www.twitter.com/theeiu

About Amgen

Amgen is committed
to unlocking the potential of biology for patients suffering from serious
illnesses, by discovering, developing, manufacturing and delivering innovative
human therapeutics. This approach begins by using tools like advanced human
genetics to unravel the complexities of disease and understand the fundamentals
of human biology.

Amgen focuses on
areas of high unmet medical need, and leverages its expertise to strive for
solutions that improve health outcomes and dramatically improve people’s lives.
A biotechnology pioneer since 1980, Amgen has grown to be one of the world’s
leading independent biotechnology companies, has reached millions of patients
around the world, and is developing a pipeline of medicines with breakaway
potential.

For more
information, visit www.amgen.com or www.twitter.com/amgen.

Suncity Group Affirmed by Liaison Office for Anti-Pandemic Efforts

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In Support of “One Country, Two Systems” Promoting the Core Values of Patriotism

 

MACAU, CHINA – Media OutReach – 22 July 2020
– Alvin Chau, Chief Executive Officer and Director of Suncity Group, together with Gina
Lei, Senior Vice President of Corporate & Community Relations of Suncity
Group and other delegates, paid a visit to the Liaison Office of the Central
People’s Government in the Macao Special Administrative Region on July 21, and
was warmly received by officials including Yao Jian, Deputy Director of the
Liaison Office of the Central People’s Government in the Macao Special
Administrative Region, Chen Guokai, Director General of Economic Affairs
Department of the Liaison Office of the Central People’s Government in the
Macao Special Administrative Region, Dai Ruming, Deputy Director General of the
Social Work Department of the Liaison Office of the Central People’s Government
in the Macao Special Administrative Region, and Zuo Xianghua, Director of
Economic Affairs Department of the Liaison Office of the Central People’s
Government in the Macao Special Administrative Region.

 

 

Alvin Chau, Chief Executive Officer and
Director of Suncity Group, together with delegates, paid a visit to the Liaison
Office of the Central People’s Government in the Macao Special Administrative
Region and was warmly received by Yao Jian, Deputy Director of the Liaison
Office of the Central People’s Government in the Macao Special Administrative
Region, with Chen Guokai, Director General of Economic Affairs Department of
the Liaison Office of the Central People’s Government in the Macao Special
Administrative Region, Dai Ruming, Deputy Director General of the Social Work
Department of the Liaison Office of the Central People’s Government in the
Macao Special Administrative Region, and Zuo Xianghua, Director of Economic
Affairs Department of the Liaison Office of the Central People’s Government in
the Macao Special Administrative Region also in the meeting.

 

 

As a token of appreciation, Alvin Chau
received the Certificate of Donation from the Liaison Office of the Central
People’s Government in the Macao Special Administrative Region for his effort
in this fight against the pandemic.

 

Deputy Director Yao expressed welcome
and, as a token of appreciation, presented a Certificate of Donation to Suncity
Group for the Group’s effort and contributions in the fight against the
pandemic. He re-affirmed the Group’s swift response as the Group dedicated its
effort through a series of donations, showing the patriotic spirit of Macao
compatriots. As the anti-pandemic measures have become a new normal, it becomes
even more important for Suncity Group to strengthen itself and contribute its
effort towards the city.

 

Alvin Chau stated
that as a Macau enterprise dedicated to charity and community affairs,
patriotism is part of Suncity Group’s core value. And in the face of the
pandemic, it is essential that the Group, adhering to President Xi’s call on
entrepreneurs, takes on its social responsibilities and support the country and
the Special Administrative Region in implementing the anti-pandemic measures.
Facing the new normal, Suncity Group is confident that together with the Macau
society, we will surely emerge victorious and, staying true to the core value
of patriotism and support for “One Country, Two Systems”, contribute to the
prosperity of Macao and the Chinese nation.

 

Since the early stages of the pandemic, under the
coordination of the Liaison Office of the Central People’s Government in
the Macao Special Administrative Region, Suncity Group donated to Hubei
Province MOP 30 million to purchase urgently needed medical resources for Wuhan
hospitals, such as medical equipment, reagents, medicines, protective
equipment, decontamination equipment, especially consumables such as masks that
a large amount are required. In addition, to relieve the scarcity of protective
masks for frontline officers on vital posts, Suncity Group purchased 20,000
surgical masks, which are donated to Immigration and Customs officers at Hong
Kong-Zhuhai-Macau Bridge checkpoints. In the name of himself, Alvin Chau
donated, through the Liaison Office of the Central People’s Government in
the Macao Special Administrative Region, another MOP 30 million and about
60,000 respirators to Hubei Province in support of the country’s anti-pandemic
measures. As a gesture of gratitude, Alvin Chau received the Certificate of
Donation from the Liaison Office of the Central People’s Government in the Macao Special
Administrative Region for his effort in this fight against the pandemic.

 

High-resolution
images can be downloaded in the gallery:

https://dropbox.suncity-group.com/url/july22

About Suncity Group

Suncity
Group was founded in 2007. Since establishment, Suncity Group has been striving
to provide the extraordinary VIP entertainment service for our guests, and we
then opened a number of VIP Clubs in various 6-star hotels and resorts
throughout Macau with the rapid growth of our business. Meanwhile, we
successively set up exclusive VIP Clubs in Manila, Seoul, Incheon, Phnom Penh
and Da Nang, etc.

 

Adhering to
the spirit of “Innovating With Diversity, Striving For Success”, Suncity Group
spared no effort to develop high-end entertainment services and products as
well as roll out global VIP loyalty program for the selected members to enjoy
entertainment, travel, catering services, luxury shopping and motion picture.
Today, the scope of our business covers most sectors, especially in the fields
of global travel, film production, concert and event planning, catering and
luxury goods.

 

As a Macau
born and bred enterprise, Suncity Group is not only devoted to develop the
Asian market, but also oriented to expand the global network. In the future, we
will surely continue to diversify our VIP entertainment services, attract more
exclusive members and make every effort to promote our business in every corner
of the world.

 

Official Website | www.suncitygroup.com.mo/en

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