Good morning, everyone, and welcome to our full year results analyst meeting. I'm Jens Geissler. And here with me this morning is CEO, Stefan de Luecker our CFO, Dessi Temperley and for the first time, Astrid Hermann, who joined the company at the beginning of the year and will take over from DESE. Welcome, Astrid. As you can see, due to the continued development of the COVID-nineteen situation, this year again, we're having this online setup for our full year communication.
As you know, we already pre released our results last night as part of an ad hoc announcement. So today, First on our agenda is a review of the year 2020 from Stefan. The financial figures will be presented by Dessi and Astrid. After Stefan's closing remarks, we will have question and answer with you as always. So okay, Let's get going now, and I hand over to Stephan de Luca.
Good morning, ladies and gentlemen. For the 2nd year in a row, I welcome you today to a digital annual press conference. I hope, however, we will see each other in person again next time. I would first like to give you an overview of the last fiscal year. Dessi Temperley will then present our 2020 business figures and financial performance in greater detail.
Afterwards, I will introduce our 2021 priorities and Esther Hermann and I will conclude with an outlook. But first, I want to highlight 5 points that are important to me after the year 2020. First, it was a year of exceptional challenges. In spring, the skincare markets decelerated by up to 20%. In this extremely challenging market environment, we were very successful.
We significantly gained market shares with all strategic brands in all skincare categories and in all regions. Overall, in 2020, we won more market shares than during each of the past 5 years. 2nd, This success was enabled by our early and successful crisis management and by our employees who surpassed themselves. In my 30 years in business, I've never seen consumer needs change so dramatically, so quickly. Our response to these changes was agile and fast.
For example, when we refocused our activities in March on products for hand washing and hand care. 3rd, 2020 was not an idle year for Beiersdorf. On the contrary, we continue to invest in our future and made significant progress in implementing our CARE plus strategy. I come back later on the success of our new Sirene and the achievements of our sustainability agenda to demonstrate this progress. 4th, Care plus is delivering.
The COVID-nineteen crisis has accelerated the digitalization of consumers and society As never before. And at the same time, we want to take increased responsibility on driving a more sustainable world. Therefore, we increased our investments by an additional €300,000,000 over the next 5 years. Yesterday evening, we published the details on the effects of this investment package on our expected 2021 figures. 5th, I'm confident that the skincare market will show recovery by the end of the year.
Over a longer term, the skincare market remains highly attractive, For which there are multiple reasons. The world population is still growing. People also live longer and health and well-being become even more important. I'm convinced that our focus will help us to shape the future of skincare and therefore ensure competitive and sustainable growth. Now let us first have a look at our 2020 financials.
At approximately €7,000,000,000 turnover, our Group sales With 5.7% down on the previous year. This decline was mainly due to the Q2. Business picked up again in the 3rd 4th quarters Despite the new pre Christmas lockdowns, our derma cosmetic brands, Eucerin and Aquaphor performed very well With over 8% growth, driven by double digit growth rates in North and Latin America and in Asia, With market share gains in almost every single country where we operate in. Also, Hanseplus was affected by the COVID-nineteen crisis, mainly lockdowns And by limitations in sports and fitness activities, in 2 thirds of the countries, however, the brand won market share. NIVEA further strengthened its market leadership positions.
In Latin America, Brazil, where we posted double digit growth and Mexico lead the way. Significant market shares were gained in Southeast Asia, led by Thailand, Malaysia and Indonesia and in the Africa Middle East region In South Africa and Saudi Arabia, even in Europe, which has been and still is particularly affected by lockdowns, We increased market share in key countries such as Germany, the U. K, the Benelux Northern Europe and Switzerland. This successful in market performance of NIVEA, Eucerin and HANSA plus is based on 3 main factors. First, we managed to continue to launch our innovation pipeline as planned, supported by strong marketing and R and D investments.
Secondly, we exponentially increased investments in digital media and the development of our e commerce activities. And this paid off. In the United States, Beiersdorf was one of the fastest growing body care companies in terms of e commerce. We were able to further expand our digital market share in Germany, where we are the market in e commerce, the UK, the Benelux countries, Brazil and India. All in all, our online business grew by 50% and now makes up a high digit single digit share of our total sales.
And third, we continue to serve our consumers at an almost normal service level, notwithstanding challenges in the supply chain such as closed borders. Of all the brands in our portfolio, La Prairie was most hit by the impact of COVID-nineteen on its most important channel, travel retail. Also in the crisis, our top priority was to strengthen the La Prairie brand as the provider of the world's most exclusive skincare. Therefore, we consciously continued to abstain from price promotions and brought innovations as planned to the market. This strategy is paying off as Le Paris regained growth momentum in the second half of the year, particularly driven by the Chinese domestic business, Which recorded strong double digit growth rates for 2020 as a whole.
Also, tesa is bouncing back. After a difficult 1st 6 months, Tesa sales exceeded 2019 levels in the second half of the year. This speedy recovery was mainly driven by electronics and do it yourself channels. This concludes the numbers on 2020. Caring for the health and safety of our employees It has been our highest priority throughout this COVID pandemic.
In March 2020, at a very early stage in the pandemic, We allowed almost all employees to work from home wherever possible. Extensive safety precautions were put in place for all those unable to do so. By all working together, we keep the infection numbers low and above all prevent the change of infection in the company. Our staff, both at buyers of AG and in our shared services, were willing to temporarily forego some of their salary As we were all our senior managers in the world, thanks to their solidarity we were able to mitigate some of the impacts of the crisis. This solidarity pact for employment allowed us to avoid resorting to redundancies or the German government's short time working scheme.
In fact, we continue to recruit and train young people for the future. And I'm extremely proud that we managed to match the previous year's offering of our apprenticeships and traineeships. We care for our consumers and our business by understanding and continuing to serve their needs. We significantly ramped up production of hand and body care items overnight and expanded our online presence and e commerce business. The hygiene measures we implemented allowed us to keep factories and R and D centers operational.
Finally, Care beyond skin to help vulnerable communities and society battle COVID-nineteen. At the end of March 2020, we agreed our international COVID-nineteen aid program Worth €50,000,000 it is the largest humanitarian effort in our history. The program not only provided immediate relief, But also to mitigate long term consequences for those particularly affected by the pandemic. All this was only possible Because everyone at Beiersdorf rolled up their sleeves. And for this, I want to thank our employees.
Ladies and gentlemen, 2020 was also year 2 of the implementation of our CARE plus business strategy. A wonderful example of the strength of this of our strategy It's a performance of Eucerin. We formulated Eucerin's purpose. We believe in the life changing power of dermatological skincare. I believe there's no better demonstration of this than Thierrymeidol, our patented active ingredient to reduce hyperpigmentation, Which I introduced at my first annual press conference in 2019.
It is no exaggeration to say that consumers are delighted. Ussuri's Tia Madol range is the most successful launch in the brand's history. Tia Madol has also allowed us to enter key growth markets Such as China, Brazil, Russia, this is the 2nd priority of CarePlus. We also invested in the digitalization of our Derma brands. For instance, in China, we launched U Sirene as a digital only brand.
U Sirene is benefiting from online shopping and increased the online portion of its sales
I told you nothing helped Until now. You have the confidence to not just, yeah, to just accept my skin. And today, I can say that all my spots are gone.
However, digitalization was not only the focus for Eucerin in 2020. The future of skincare is personalization. After all, we're all different, have different needs and are exposed to different external factors that influence the condition of our skin. Digital technology will allow us to unlock that opportunity. We have therefore invested heavily in recent years in gaining a better understanding of our consumers' Individual needs through our Skinly project.
Launched 3 years ago, Skinly is an in-depth international scientific project To understand people's individual skin needs. Over 12,000 women worldwide have completed more than 2,500,000 individual skin measurements And helped to create a database of over 67,000,000 images. I'm convinced we own one of the best The world's best scientific data at this scale. We make the generated insights not only available to our teams, But with the deployment of artificial intelligence also to our consumers. One example is our NIVEA SkinKite web app, which allows to compare selfies With the Skinny database and recommends the skincare routine to match.
This skincare analysis was already used Around 700,000 times in 13 European countries in 2020 alone. And we have even bigger plans based on the skinny insights in 2021. I'll come back to that later. Another priority in the IT Care plus strategy is to unlock the potential of the growth markets. We focus here in 3 regions: China and the United States, 2 countries where Beiersdorf is underrepresented and the emerging markets with their rapidly growing middle class.
La Prairie, our most important brand in China, emerged strongly from the crisis during the second half of the year. And as previously mentioned, we introduced U Sirene digitally in China last year. NIVEA had a very successful year in Taiwan, recording significant market share gains. In order to make NIVEA as successful in Mainland China, we have opened last year an innovation center in Shanghai. This is our 2nd largest development center globally after our headquarters here in Hamburg.
As in China, we need to increase local innovation and capabilities in the United States. Analog to Shanghai, we're expanding our research laboratory in New Jersey into an innovation center. This will not only serve the Coppertone brand, But also NIVEA and Eucerin Developments. The emerging markets started to recover as from the Q3. We strengthened our market position in just about all countries based on a combination of strong international and local innovation, the development of digital sales channels and executional excellence.
Since we defined our sustainability agenda, Care Beyond Skin, in 2019, We made significant progress. I'm particularly pleased with the recognition as a Climate A company by CDP, a non governmental organization that rates companies' climate protection efforts. One area where sustainability is tangible is packaging. With our innovative NIVEA Naturally Good Body Lotion bottle, we are reducing weight by 50%. We also switched 90% of our pet bottles in Europe to recycled material.
Packaging and ingredients are important components of our commitment to sustainability And obviously also have a positive impact on our ecological footprint. After the consumer business reached a target of Meeting 100% of its electricity needs from renewable resources in 2019, tesa followed last year. I have already mentioned the rapid recovery at our Tesa subsidiary in the second half of the year. Tesa considerably outperformed the overall market. It benefited in all business areas from its strong focus on innovation and specialist applications.
For example, specialist adhesives For digital devices benefited from the high demand for tablets created by homeschooling. In the automotive sector, Tesa attracted new customers With products for the insulation and mounting of battery cells playing its part in the industry's transformation towards e mobility. Meanwhile, Tejas' do it yourself business benefited from the growth of digital sales channels and the boom of DIY stores during the pandemic. Ladies and gentlemen, my colleague Desi Temperley will now give you an overview of our business figures and performance in 2020.
Thank you, Stefan, and good morning to everyone. As always, I start my presentation with our key figures at group level. Group sales decreased organically by 5.7%. Foreign exchange effects and the net impact of acquisitions and divestments Let's turn to a nominal decrease of 8.2%. In 2020, we incurred exceptional one off costs of €78,000,000 Mainly related to restructuring projects in the manufacturing area, integration costs of the Coppertone business plus the related impairment charges In Northeast Asia as well as the costs associated with the announced Care Beyond Skin program, which Stefan already talked about.
Excluding these special factors, our EBIT margin at group level decreased by 140 basis points versus 2019 to 12.9 percent with the main drivers being volume deleveraging, negative mix, Foreign exchange transactional headwinds as well as increased investments in our sustainability and digital roadmaps. Profit after tax margin decreased to 9.1 percent. That's 120 basis points below the previous year's level, With the effective tax rate, excluding special factors, at 29.2%, in line with our earlier guidance. We remain on track to achieve an effective tax rate of around 28% in 2021 As per our CARE plus commitment of 2 years ago, earnings per share decreased to €2.73 From EUR 3.40 of prior year. Now some details on our performance by segment.
Consumer sales decreased organically by 6.6% with a nominal decrease of 9.1%. Foreign exchange effects had a negative 3.8 percent impact, while net structural effects Excluding special factors, decreased to 12.3 percent driven by the impacts of the pandemic, which I mentioned earlier, As well as our ongoing investments in marketing, innovations and capabilities related to the CARE plus strategy. The sales of tesa decreased organically by only 1.5% in a challenging environment, Mainly due to the solid recovery of sectors demand in the second half of twenty twenty, Negative foreign exchange effects of 2.4 percentage points led to a nominal decrease of 3.9%. There's a strong growth performance in the second half of the year, coupled with the positive mix effect, drove the EBIT margin Up by 10 basis points to 15.4%. Turning to our consumer business and the development of growth by quarters.
After a much improved third quarter, The Q4 negative growth was driven by a weaker demand triggered by the 2nd wave of lockdowns throughout Europe and in a number of other countries, Resulting in an organic sales decrease of 3.4% in the last quarter of the year. Now some more color on the sales growth performance of our brands for the full year as well as the Q4. NIVEA closed the year with a negative growth of 6% in the mass market, which was heavily impacted by the pandemic, Especially in the skincare categories. The restrictions in traveling and the subsequent decline in tourism Led to strong sales decrease in the sun and sleep care markets. At the same time, categories such as body care and shower Increased sales in 2020, also supported by a pipeline of innovations.
With the 2nd wave of lockdowns, Market demand declined, and NIVEA reported a sales decrease of minus 5.4% in the last quarter. Our derma brands, Eucerin and Aquaphor, delivered a very strong sales growth of 8.3% in the year. We gained market shares in all of the geographies where we are present. The performance was underpinned By the double digit growth in the U. S, Latin America and Asia.
The tiamidol product line, as part of the Eucerin brand, Continued to materially outperform the market and contributed significantly to the growth of the derma business. Healthcare recorded a sales decrease of 5.9 percent for the full year. During the year, we saw a mix picture by quarter, very much driven by the high volatility in demand. The last quarter negative growth was significantly affected By the 2nd wave of the lockdowns. Despite the volatile demand, we consistently recorded strong market share gains in the countries where we Great.
The performance of La Prairie was materially impacted by the global travel restrictions, The strong growth in the Q4 is driven by the continuous growth in China as well as The domestic travel around the Hainan Island. We also need to mention here the positive one off impact of the pipeline refilling in the 4th quarter Against the weak quarter of the previous year. Due to the lockdowns and travel restrictions, 25% of the global distribution remained closed at the end of December. In 2021, we see headwinds, especially in Europe and Australia, where markets are affected by our ongoing lockdown measures. At the same time, we see strong momentum in the domestic Chinese market as well as accelerated e commerce sales globally.
We now move to our performance by region, starting with Europe. Sales in Europe decreased organically by 8%. Western European sales decreased by 8.6%, driven by negative growth in Spain, France and Italy, Which were all hit hard by the pandemic. Also important to keep in mind is that the travel retail sales of La Prairie I reported under Western Europe, and this faced a material contraction in 2020. Eastern Europe sales decreased by 5.8 percent with demand being very weak, especially in Russia and Poland.
Eucerin recorded strong growth in the categories of body and face in both Eastern and Western Europe. In the Americas, our top line grew by 3.2%. Despite the challenging market environment, the business in North America delivered The main contributors here were all our derma brands, Eucerin and Aquaphor, Both with double digit growth. The Coppertone integration has been running as planned. While we had A difficult season for the sun care market.
We managed to reverse the trend of a weakening market position Of the Coppertone brand and improved our market share situation month after month. We are looking forward Starting the 2021 sun care season with an enhanced pipeline of innovations here. In Latin America, we reported strong growth of 5.4%. Excluding the devaluation impact of the Argentinian currency, which factored in the number, the growth was at 9.1%. The performance highlights are the businesses In Brazil and Chile, both with double digit growth in the year.
From a category perspective, NIVEA Body and Universal Creams With the best performing categories, while Eucerin and Aquaphor also reported double digit growth in the region. In the Africa, Asia, Australia region, sales decreased organically by 10%. Consumer demand in India, Japan and Thailand have been materially impacted by the pandemic. The continuous restrictions in everyday life Caused significant sales decreases throughout the year. On a positive note, our user in sales had solid positive growth In the region, underpinned by the growth in the face category and the launch of Eucerin in China.
The development of our gross margin was impacted by a number of headwinds linked to the challenging environment of last year. The consumer margin was down by 110 basis points in the year compared to 2019. While overall pricing was marginally positive, we faced a material negative impact of 80 basis points from currency devaluations in emerging markets. Another important factor for the decrease in gross margin was the mix effect Minus 60 basis points driven by the lower sales in La Prairie and NIVEA San as well as consumer demand being stronger For essential personal care items where the margins are slightly dilutive. We're pleased, however, to report net positive cost effects Coming from the focused execution of our efficiency initiatives and more than offsetting The additional COVID-nineteen operational expenses we incurred in the business.
In our CARE plus strategy, we have committed to a continuous reduction Working capital on a 12 month rolling basis in Consumer decreased to 9.1% of sales in 2020. After the strong improvement in 2019, we are proud to say that we managed to further improve both our trade receivables and payables While consciously increasing our inventory levels in order to serve our customers given the volatile demand patterns, We will continue our focus on this KPI as we see further tangible improvement opportunities in the midterm. Moving now to the performance of our Tesla business, which was also strongly impacted by the pandemic in the first Half year of 2020 leading to organic sales decrease of 10% for the 1st 6 months. In the second half of the year, however, we managed to regain momentum, delivering minus 1.5 percent of Sales growth for the full year on a like for like basis. Tesda finished the last quarter with a strong growth of 8%.
The recovery in the second half of the year was mainly driven by the continuous solid demand in the electronics sector in Asia And the partial still subdued recovery of demand in the automotive sector. The trade market segment Proved to be resilient throughout the year, the positive trade trends of home improvements continued in the second half. Sales in hardware stores and online in the Consumer and Craftsman division in Europe brought the full year up to 0.8 percent in the trade market segment. We reported an improved EBIT margin, Excluding special factors, 15.4 percent despite slightly lower sales. While we continued investments behind the strategic Priorities of the business, the 10% increase versus previous year is mainly driven by cost savings initiatives, Which we already started at the end of 2019 as well as a positive gross margin mix coming from the electronics sector's growth.
With this, I conclude my comments on the full year results, and I hand back over to Stefan.
Thank you, Dessi. Ladies and gentlemen, in many parts of the world, specifically in Europe, the COVID crisis continues to impact our business in the beginning of 2021. Nevertheless, we look optimistically on this year. We will see substantial improvements by the end of the year as vaccinations gather pace in many countries. In 2021, we will further outperform the market and will continue to invest.
The additional investments of €70,000,000 to €80,000,000 a year I announced in 2019 are paying off. We'll start another front loaded investment program of €300,000,000 in the next 5 years. Today, consumers expect much more from brands and companies than products and services they provide. They expect them to take responsibility Society and for the world in which we live. In 2020, therefore, we sharpened the definition of the value our brands can create for people.
Taking care of people's skin allows them to connect with each other to build meaningful relationships. This is NIVEA's heritage, Which we further step up as we define the brand's purpose to care for human touch to inspire togetherness. Eucerin brought this brand purpose to life with a new global brand campaign in the reporting year. We believe in the life changing power of dermatological skincare. And our healthcare brands, Hansaplast, Elastoplast and Curitas also have a clear purpose.
We've got you covered For life uninterrupted. It concisely expresses the role our healthcare brands play in people's day to day lives And providing comfort and peace of mind by delivering fast and easy care for everyday cuts and scrapes. The future of skincare is personalization. We understand people's skin better and we will take this a step further in 2021. We have developed a number of pilots to explore personalized skincare offers based on our Skinly project.
A great example of is our new OWN brand. OWN stands for only what's needed. We are currently launching it as a direct to consumer business in Europe. It uses the latest technologies and findings from skin research and develops a care routine that precisely matches the consumer's personal needs. Based on artificial intelligence, we can offer the perfect product solution from more than 380,000 formula combinations, OWN is just the first example of how digital technology unlocks skincare innovation.
It goes without saying That we will also continue to leverage digital technology in marketing our brands and products. In 2021, we will enter a strategic global partnership with Google And work together to inspire consumers with innovations. 2021 will also be a year of further strategic innovations. Following a successful launch in Thailand, we launched NIVEA's cellular Luminess 630 anti dark spot care range to Europe and other important markets around the world. The innovative formula of NIVEA's Luminous 630 is the solution for all consumers who suffer from facial dark spots For an even complexion and a natural glow.
We will also continue to consistently drive forward our sustainability efforts. We continuously examine whether we can achieve product improvements and our goals such as in the area of climate neutrality even faster. We will launch the 1st completely plastic free cleanser from NIVEA, which is also EK certified, Wonder Bar. NIVEA Wonder Bars are skin and eco friendly, soap free facial cleansing bars for everything from makeup removal to deep cleansing and peeling, All with Neuvia's familiar effectiveness, the idea is to offer a plastic free solution that covers the entire facial cleansing routine. With Eucerin, we want to obviously further expand DTM and DOL's success into new categories.
With Eucerin Actinic Control With Sun Protection Factor 100, Eucerin offers clinically proven protection against sun induced skin damage. With this product, we provide protection for consumers with actinic keratosis, the most common precursor to skin cancer. Just a few weeks ago, we implemented the largest brand relaunch in the history of our healthcare brands, Hansaplast, Elasaplast and Claritas. They now offer new and improved product innovations in a more sustainable packaging. La Prairie expands the most exclusive collection of platinum rare With platinum, a rare skin rejuvenation protocol, it activates key rejuvenation processes and so reduces visible signs of skin aging.
Ladies and gentlemen, I hand over to Astrid Hermann, who will take over, as from tomorrow, the CFO responsibility from DESI Tempelli. Welcome, Astrid. She will take you talk us through the 2021 financial planning.
Thank you, Stefan. Good morning, ladies and gentlemen, also from my side. I joined Beiersdorf nearly 7 weeks ago and would like to start by thanking Dessi, Stefan, my colleagues and the Beiersdorf team for a warm welcome and for the time they invested in helping me get up to speed on the company, It's brands, the strategy and the organization. While there's still a lot more to learn, the 1st weeks have reinforced my decision to join Beiersdorf. I came here because of the iconic brands that I grew up with and continue to be a big fan of and the Care plus strategy, Which I am convinced is going to contribute to the company's continued success.
I'm looking forward to making my contributions to delivering the strategy, Making the right investments for the future, delighting the consumers, driving value through initiatives such as revenue growth management and value engineering, And developing and supporting the organization and particularly my teams. I would now like to transition to talking about our 2021 and midterm guidance. Following an unprecedented year 2020 and with the continued uncertainty we are experiencing, we have had to reconsider our midterm goals. The massive impact and particularly the long duration of the pandemic is clearly impacting the plans we made in 2019. We remain committed to the investments in innovation, digitalization and sustainability needed in the next few years in order to ensure That we come out of this crisis stronger and with a competitive edge.
At the same time, we will continue to look for ways to drive value as we
deliver our manufacturing network
and advance efficiency programs. From Network and advanced efficiency programs. From today's perspective, it is challenging to make a reliable prediction for 2021. Independent of the skincare market growth, we will continue to outperform the market. We assume the global skincare market will improve by the end of the year.
We expect sales growth in both business segments and on group level to be positive. With the significant investment Stephan outlined, Consumer and group EBIT margins are expected to be on last year's level, while tesa's margin will be below last year. We are similarly aiming to outperform the market beyond the COVID crisis and are looking to grow consumer EBIT ahead of sales After factoring in the significant investments in the strategic Care plus pillars, we also continue to pursue our other financial goals outlined previously of reducing working capital, driving value and improving our tax rate. Thank you. I look forward to working with you during this and I will now pass it back to Stefan for final remarks.
Thank you, Astrid. Although 2021 still starts with a high level of uncertainty, I'm convinced it is the year of the turnaround in the COVID-nineteen crisis. We will outperform the market and regain positive growth momentum While we significantly further step up our efforts in sustainability, digitalization and growth markets, To make Beiersdorf stronger and more competitive in a period of technological disruption, In a world of existential sustainability challenges, that was and is my ambition serving as CEO of this company. Before we take your questions, I would also like to thank Desi Temperley. I look back on a period of intense and trustful collaboration As we developed, announced and ignited the Care plus strategy together, she successfully drove many of the Care plus initiatives With great professionalism and outstanding commitment.
And she played an essential part in weathering the COVID crisis well with a solid financial pace To further increase the pace of our investments now, Dessi, thank you very much for all your hard work, and I wish you all the best for the future. And now we would like to answer your questions.
We are getting your questions over your telephone line. So when you ask a question, please turn down the volume of your video connection so you can hear you without delay. So I have the first caller here, Guillaume Delmaso of UBS. So could we have him on the line, please?
Good morning, Dessi, Stephane, and welcome Astrid. Two questions for me, please. The first question is on the incremental Investments of EUR 300,000,000 over 5 years. When I look back at the ad hoc press From 2 years ago, you were already flagging the need for more investments behind opening new markets, digitalization, sustainability. So my question is, What did you underestimate 2 years ago?
And does the new package include additional initiatives versus the €70,000,000 to 80 €1,000,000 package announced in 2019 or is it more a case of the cost of implementing CarePlus going up? And I guess, ultimately, how confident are you that the incremental EUR 300,000,000 will be enough and that you won't have to Your investments further in 1 to 2 years' time. And then my second question is on your medium term organic sales growth ambition, Because previously your goal was to reach a 4% to 6% organic sales growth range in a sustainable way by 2023, at least for the Consumer division, Today, you haven't provided any quantification on your medium term organic sales growth objectives. I understand there is a Lack of visibility for 2021, but beyond that and simply wondering why you didn't provide this Medium term organic sales growth objective, should we see this omission as a potential downgrade to the 4% to 6% range? Thank
you. Thank you for your question, Guillaume. On the additional investments compared to what we said in 2019, the fundamental reason for the Gerbrand strategy hasn't changed. It's very clear that the disruption, digital disruption and importance of sustainability has only been confirmed. What we've seen is 2 things.
The first one is the results of the CARE plus strategy and how we've been able to drive The initiatives are such. And so far the €300,000,000 is both further accelerating Of what we're doing, increasing the impact, but also attributing to new initiatives on top of that. If we take specifically with this change, and I think that links also to your second question, is The impact of the COVID-nineteen crisis. It's clear that digitalization, as we estimated 2 years ago, is important. It only Accelerated.
And therefore, I believe that the impact and the investments we need to do increase in order to further accelerate our capabilities in that area. As far as guidance on the midterm guidance on the market is Also there, we obviously mentioned that this is compared to beating the market competitive growth. We start and remain on that position. And yes, 2021 is difficult to predict. But based on 2021 and the recovery rate It's certainly not easier if you know what or if you look at 2021 and how the recovery rate will develop over the coming years.
And since the underlying market development or recovery is the base of our organic growth, that's the reason why we I will abstain at this moment to make a concrete number on that one. The fundamental Our mission remains the same.
Okay. So we go to the 2nd caller. I see here Richard Taylor of Morgan Stanley, please.
Good morning, everyone. And first of all, a very warm welcome to Astrid and best Wishes to Dessi for your future ventures. So a couple of quick ones and then a little bit more of a longer one. So and I think This was alluded to in Guillaume's question, but really I want to drill into what top line impact you were expecting from the new investment. And secondly, can I confirm that you launched your first D2C website on NIVEA this year And also your first store on TMAL for La Prairie?
Because whilst, of course, this is progress, it suggests that you're still quite a long way behind on your digital strategy. And then if I may, I'd like to go back to a question I asked at your last reset in February 2019 because I think it still holds. If we look back, you had a year of transition in 2010. You had a year of transition in 2011. We had a year of transition in 2019, of course, 2020 was impacted by the pandemic.
It looks like 2021 is going to be a year of transition And probably 2022 as well. So that's 4 in a row or 6 in 13 years. There's been no dividend growth over that period And only a small balance sheet deployment in Coppertone, which I think has been fairly mentioned today. So this is the 3rd major reset in 12 years Despite already having lower margins than peers and average growth. So my question is, do shareholders outside the major shareholder matter?
And why will it be different this time?
Accelerating growth has always been the target, and beating the market in which we operate is the ambition. We've invested this year I'm sorry, in 2020 in order to get the maximum growth. We invested more in absolute terms and marketing means we invested more in R and D and I think it pays off In the market in which we operate. And I'm convinced that with the investments we do and specifically in the elements of Accelerating growth, that impact will continue to come through in the top line. As I said, everything is relative to the underlying market recovery, but that top line impact significant top line impact Will come through and is coming through.
On your questions on direct to consumer, no, we already had, since a couple of years, Direct to consumer websites with NIVEA in a number of countries which we are rolling out and expanding in 2021. Yes, La Prairie launched in December presence on Tmall in China. And This will allow us targets to attract and recruit new and younger consumers That until now, where we believe there is a potential over and above that the recruitment we have done over our physical stores or the existing own website. And the first results for the very, very short Are indicating exactly in that direction. On your broader question on Transition and the numbers, we are in and I obviously Cannot comment or will not comment on 2010, 2011 years before I even joined the company.
But yes, I do think that we are in generally, as a market, a society in a period of transition of fundamental changes of disruption. That this disruption, and I addressed this already 2 years ago, It's not something we can address or we can successfully address in 1 year or 2 years. And as you point out, 2020 obviously came on top of that, which was unpredictable for all of us. So insofar that we have a period Currently, our transition is clear. I think as well I've read and I read The different reports you are publishing, which I think in a large number of cases accurately describe the Biosoft position where we have the opportunities to accelerate, where we have the opportunities to tap into more growth.
That's exactly what we intend to do With the investments, and that is exactly what we're doing as such. All our shareholders matter. It's coming to that. And I think the best way shareholders are served, in line with the belief and the conviction of the company, It's to invest in growth to recruit and satisfy consumers. And we take A long term perspective on that one.
I think we've always been very clear about that and always been very transparent about that, That, that is the conviction and the belief of the company to do so. And if I bring the description, the accurate description of where the opportunities are, Where the disruption comes from and the transparency that we would take that position and continue to take that position to strengthen The company, to assure that the company stays as successful in the next 5, 10 years during this disruption period As we were in the past, it has always been very clear the perspective of what we've been taking. So insofar, I think The position of the company and going forward, because that is basically fundamentally the growth, recruiting the consumers is a fundamentally basis for the long term success of the company and that we have opportunities and a need for investments It's obvious and that is the reason why, as I said also 2 years ago, we address this with determination and urgency. And that Situation has not changed, even if certain of these elements have accelerated or increased in sense of urgency like in sustainability over the last 3 years.
Thank you. So I think we move to the next Thank you very much. So we move on to Bruno Montain of Bernstein, please.
Hi, good morning. In the past, you had your margin sort of objective of 16% to 17%. You didn't put any numbers out today, but would it be fair to say that 12% to 13% It's in your 2016 to 2017 and that's what we should focus on. And the second question is going back to the previous question about what shareholders want Outside the family. And clearly, you say you want to be able to grow and acquire more customers, which I can sort of support as an objective.
But does it really require a 20 EPS payout in terms of dividend, does it really require €5,000,000,000 on the cash on the balance sheet to be able to achieve your long term objective Continue to grow. It seems to be quite disproportionate in size compared to any other companies that are growing materially faster than you. I'd like to understand the quantification of how big the cash pile and how small the dividend should be to be able to give you the freedom to invest in growth. Thank
you. Thank you for your question. If 12% to 13% is the new 16% to 17% it's not something I would confirm. As we say, we are still in a period of unclarity and uncertainty on the recovery rate, but we do commit to drive the Improve the EBIT margin as investments and the results of these investments come through. It's hard to say, and that's why We take into consideration the uncertainty of the recovery rate of the COVID crisis.
And I do think that I've read a lot of different opinions about what the expectation then specifically is market by market. But the commitment And the conviction that the investments will come through also in the margin is what we expressed. On Your question regarding cash iteration and dividend. The company has and I addressed this in 2 years ago already. This company has admittedly a conservative Financial policy.
And we've been, I think, considering there coming back to the answer before, Always been very transparent about that factor. And I do think that in years like COVID, exactly that conservative Policy also pays off for a company of our scale and our company of our mix profile, namely the ability To weather the crisis successfully while continuing to do what is right for the company in the long term. So insofar, I do think the situation as we have today pays off in situations of crisis. Going forward, as such, we remain stick to the opportunity Not only to invest in our own business, but to look at M and A as we did 3 years ago with Coppertone. And if We have similar strategic opportunities.
Let's also not hesitate to go forward. As far as the dividend is concerned, It fits obviously into the conservative financial planning. Certainly in times of crisis is already estimated. And that at least is as far as we are concerned is at least not a surprise going forward.
So we move on to David Hayes of Societe Generale, please.
Good morning. Well, thank you. So two questions for me. Firstly, on the cost investment and then on the Prairie. So just on the €300,000,000 can you be more specific about where that money is going?
I guess broadly, you talk about ESG related expenditure, Digitalization and then new market opportunities. Can you at least break down what the 300 looks like across those three broad buckets? And the second question on La Prairie, you've obviously talked about being on Tmall going into this year and also had a You success, it sounds like, in Hanan at the end of the year. So two questions raised. One is, are you confident of maintaining the prestige image Lovely Prairie moving forward with those moves.
And secondly, is there a strategy to bring maybe the price point down at the lower end to make it more accessible for more Moving forward, and is that part of the margin reset plan that the margin is a little bit lower on that brand specifically? Thanks so much.
Thank you very much. On the CHF 300,000,000 yes, I can Give you a little bit more insight on where the focus areas are in the investment without breaking down And allocate exact investment numbers because obviously there are many other elements including the volatility of the situation. In digital, we focus on consumer connection, as we've always said, which is both consumer connection in terms of Media and precision marketing, but also in direction of personalization. The second area or third area is the area of e commerce and developing the digital channel as such. These are accelerating elements.
And it goes without saying, I already mentioned that in my speech, that Digitalization has accelerated over and beyond what, yes, I expected 2 years ago being unaware of the crisis impact that we will have had. A 4th area in digital is the investment in data, systems and processes, which is obviously the underlying Infrastructure that we need in order to be able to activate the consumer and the front end investments. On sustainability, the implementation of the agenda is accounted for. The part here that we are looking for and that Will be the major focus point in the coming weeks months is on ambition and Possibilities investments into climate care and how we can accelerate our ambitions there. In growth, As mentioned before, we see the biggest growth opportunity are in our so called white spots.
And the 3 major white spots focus is how do we get a bigger impact, a bigger footprint In our major white spots, which are also the biggest markets and the most developed markets, strongest growth markets in skincare, China and the U. S. In the U. S, obviously with the acquisition of Coppertone gives us a leverage and a size That allows us to further develop the market and to capture a bigger part of the business. In China, I said the big part is we are with La Prairie very happy.
But the impact, the possibility for our other brands, Which we now started with you, Serene, and want to further develop in NIVEA is the key element on that side. On the other side is the emerging markets In which we are growing vastly, this has been the underlying growth success over the last 5 years as such already, Obviously also impacted by COVID, but there we are progressing strongly and we want to continue to tap into that. I remind you what I said 2 years ago. If you compare our strength situation for NIVEA in Europe compared to the relative Situation in the emerging markets is clear that we have a massive opportunity through penetration and driving attracting more consumers. On your second question on La Prairie, yes, And the two elements are massively linked to each other.
The absolutely key element Of the La Prairie equity, brand equity is in the exclusivity of the brand. That's why and Looking into more the luxury part of the skincare market, we've seen a massive acceleration of promotion intensity, Promotion depth of the industry. We have very consciously, as I already Told or explained in mid of last year, we consciously Did not go into that direction. In order to preserve the brand equity, La Prairie, linking to your second question, It's at a price level which is sometimes a multiple of the other brands in that sector. And it's I think it's very clear that even if we would do price promotions, the impact of the price promotion And the impact on the brand equity would completely undermine this exclusivity of La Prairie.
Therefore, there is no intention, rather the contrary, in order to drop prices in order to increase growth. Short term growth would obviously increase. There is no doubt about that. But the fundamental strength of the brand being the most exclusive Skincare brand in the world would be long term affected. And that is something we will not grow.
And we see as well that in the recovery what we have, where we are, that that exactly is paying off. And we believe that that is also the future of the La Prairie brand.
So we move on to Olivier Nicolas of Goldman Sachs, please.
Hi. Good morning, everyone. Just two quick questions, please. First of all, on Tesa, you mentioned significant investments, Which will impact obviously margin in 2021. Which area are you going to focus on?
Is it on auto? Is it on DIY? On electronics? Is it across the board? If you could give us a bit more details there, that would be helpful.
And then just a quick follow-up on Richard's questions on MAPFREI And the recent launch on Tmall, how significant are the barriers to entry? And how much space Is there ready for La Prairie given the already very well established position of brands such as La Mer or Lancome? Thank you.
I'll take the first question related to Tesa. So for 1, Tesa did have a good year last year. We were especially happy about the Impressive recovery in the second half. And TESA is experiencing some of the same market dynamics as our consumer business is experiencing in terms of digitalization, e Commerce growth and therefore is also going to invest in its future to really strengthen those areas and develop further potential for growth. So the areas of investment will be around digitalization, really supporting their e commerce marketplace and D2C businesses, And then also sustainability, looking to, solvent free products as well as lowering energy consumption.
And then they'll be looking to explore new growth potential in investing in those areas as well. Thank you.
Thank you, Anstrud. It's interesting to see as a final comment on this topic that obviously the tesa business is Confronted with the same challenges and opportunities very similar to consumer, digitalization and the impact on the industry In the different sectors, the whole impact of sustainability with their customers and themselves And obviously the growth opportunities and the investments, as Astrid just explained, are channeled into that direction as well. On La Prairie, The Tmall entering Tmall is an opportunity that we believe is still there. Even if you look at the Chinese market and with the positioning and price positioning of La Prairie, we believe there is Increasingly opportunities to further tap in consumers that we can reach over Tmall on top of what we've been reaching before. We see, as already said, that the consumers on Tmall are new consumers And are generally slightly younger than our core consumer in La Prairie.
And that is a key element On the La Prairie brand, and I don't want to sound arrogant, but more self confident, Is that Le Paris? With the exclusivity, inherent to the exclusivity positioning, does not really Look, or it does not really position itself versus what other brands have been doing. We see that with the La Prairie positioning we have and exclusivity, This gives us further leverage in reaching consumers in China.
So next in line is Karl Zoete of Kepler Cheuvreux. Karl, please.
Yes. Good morning. Thanks for taking the questions. The first question I have is with regards to the additional investments in sustainability and digitalization, Basically coming back to some earlier questions. We see this also at many of your competitors in personal care and Skin Care Businesses, but at Biosort the impact on the profit margin is quite significant.
So the question is basically Why is the impact to your margin that large? And aren't you able to save cost elsewhere to offset This impact. And then the second question would be on the medium term expectations you have for your Chinese business. So clearly you want to develop that business and become large in skincare, but where are we today and what should it be in 5 years from now? And what would And also what would then be an appropriate level of profitability for your Chinese business?
Should that be above company average or in line? And where are we today? Thank you.
Thank you. Digitalize the in specifically digitalization and sustainability. I believe I'm convinced that we as a company have an opportunity to do more and can do more in these areas. We need to accelerate more. And that is the reason why we need to act now.
I also believe That, as said before, that the cost and the return of these investments will come through. But the urgency to address and to accelerate is not only now, but it's also a lever in order to be able to get that return going. On the Chinese business, we believe that number 1, the Chinese business will massively Outpays the growth we have worldwide. And I think considering the relative position we have with major brands like NIVEA and Eucerin That is almost a logical ambition we have. Obviously, that is an investment That is particularly heavy in order to unlock that potential in China as such.
But the vision is obviously that with that growth and with the brand equity that is existing, that As models that we run-in other countries in the emerging markets before, the debt will pay back And we'll bring the profitability in the midterm approaching the company's average.
So next entry I see would be Ian Simpson, Barclays. Ian, please?
Thank you very much. So a couple of questions For me, please. When we think about this reset versus the last reset in terms of where the incremental money is going, Is it just that all the priorities of kind of 2 years ago are getting a top up in Spend or is it that there's new areas of focus for this additional spend versus 2 years ago? And if so, which areas are being prioritized more and Which areas are being prioritized less? And then to ask you, if I may, firstly, a sort of technical question.
Could you just Remind us how the FX impacts on gross margin works for 2020 and what the drivers there. But a more general question, Look, arriving at Beiersdorf from outside the company, what do you see as your sort of key priorities As CFO, what if any kind of cultural changes or changes in operational practice All low hanging fruit do you plan to be driving through in the next couple of years? Thanks very much.
Thanks, Ian. The supplementary investments of this investment cycle is a combination of 2. First one, If I look over the last 3 years, specifically the last year, we see an exponential acceleration in the importance of digital. I think COVID has digitalized also a part of the world, consumers, Customers, employees alike. And that acceleration is an acceleration that does not change their priorities, It needs more investment in order to be able for us to capture the opportunity.
And sustainability is a very similar issue. It's more than not an acceleration, but the sense of urgency to address these elements has certainly not gone down and will further increase over the Coming years. Therefore, a part of the investments is indeed, I would say, topping up on the priorities we had in these areas already before. The same applies to the growth opportunities that in the white spaces that I just commented on. But there are obviously Parts that we want to accelerate more and fund more.
One of them is what I announced 2 years ago, the importance, the vision of Personalized skincare. We are now in a phase where we're able to start activating a lot more, Having a lot more initiatives at the start, which we will also are and will fund going forward. Astrid, on the or first I'm sorry, first to Dessi on the foreign exchange.
Ian, good morning. I can take the question on the foreign exchange. So the foreign exchange impact is mainly at gross margin level, And it is 80 basis points for the consumer business in 2020. It is material And the main reason for that is that a lot of our cost base for finished products is still in euros as our manufacturing footprint It's more European, although we have been changing that in the last 2 years. But obviously, with the devaluation of many Currencies and the euro strengthening in 2020, that was the impact we had and which obviously flew down to the EBIT margin as well.
And Ian, thank you so much for your question to me. So let me reinforce that for 1, we will absolutely continue the Successful programs to drive profitability and efficiency that BioStorff has been doing for the last years, such as revenue growth management, value engineering and Optimizing the manufacturing footprint, this has been very successful for Beiersdaufer and certainly I very much know quite well from my previous employees as well. So we will continue that. We will secondly also look at all line items of the P and L to for ways to fuel growth, you know, to offset our investments, obviously, and enhance profitability. And clearly, we do see some efficiencies coming from digitalization.
And then I want to reinforce it again, we do commit to driving top Line, ahead of market, we do want to grow our market share. And then as we've said, post COVID, we will also drive EBIT beyond top line growth. Thank
you. Okay. So we go on with Celine Panuti, please, JPMorgan. Celine?
Yes. Good morning, everyone. My first question is on the if I look at Your growth initiative, so and results so far of CarePlus, you mentioned that you are gaining share Everywhere. And when however, I look at your French competitors and what they have reported by category, You materially are below. So is it because you are under indexing in online that You are underperforming.
Well, can you explain maybe what am I missing? And also, when you talk about the white space, you mentioned China And the U. S. On China, you talked about the introduction of online for the introduction on new Brands plus online, but what about the U. S?
Can you talk about what specifically you want to do there? And my second question is on The La Prairie, you mentioned that there was a bit of a pipeline feel in Q4. What does that mean Q1, please. And more broadly, is there any indication you can give us on maybe short term in the Q1? Thank you.
On market shares, we measure market shares where we are active, Obviously. And as you know, there are specifically, for example, in China and in the U. S, We are not everywhere present, and we do not have the same weight in our portfolio As they could be. Specifically, if you look at these markets, the size of the market and our relative presence makes obviously an impact if you look at Total numbers. When we are looking at where we operate in, and there we, I said, we have gained market share.
And if I look and I go through, very strong market share, as I said, In every skincare category in which we operate and basically across the board in a very similar dimension, Going from body, face care, sun although the sun season was very bad, but the share increase was Significant, MEN, LEAP. Each of these categories globally and in the region we gain share. If you look at the countries, I already in my speech highlighted where the major countries in which we operate, We also gained share. The same applies on our derma cosmetic brands. It's clear that the footprint, that's why China is an opportunity, It has an impact obviously.
But if we compare in the core in the countries in which you operate, there the impact and the Market share increase is considerable. Obviously, I will not comment on our French competitor. I think Competitors motivate and inspire. It's clear, but we look at where our performance is as such. But there is a difference taking into consideration Of mix geographically and category and scale is clear.
On Wise Bay China, La Prairie doing very good. We believe there is further growth potential. We now introduce Eucerin. And we are, with NIVEA, accelerating and working on increasing local innovation. I think local innovation, as I explained 2 years ago, has been a major component in unlocking the potential in, For example, countries like South Africa and India.
And in a dynamic market like China, this is even more important. And that is where we are really Looking into China. In the U. S, the acquisition of Coppertone and therefore entering basically in A second skincare category. Our business in the U.
S. Is a body care category, dominantly, Both on the dermatological brands and on NIVEA. With Coppertone introducing into the sun category, we increased our footprint and our scale. And that gives us the opportunity to further develop in the direction of a skincare brand opportunity. And that is where we're focusing on.
And the same thing as in China is obviously also true in the United States. The difference in the market shares is not driven by E commerce. If that obviously e commerce in a country like China is The major driver for e commerce development worldwide is clear. And it is clear also that Our limited footprint in China has an impact there. But if I look in the e commerce development in the countries in which we operate, in the U.
S, In Germany, in the U. K, in these countries we've gained share in e commerce and usually outperformed the majority of Competitors, although I said that might not come through immediately in a number in an absolute number. On
We're very positive on the developments that we see in La Prairie. And despite the fact that we still have some of our outlets Shadi, due to the restrictions, indeed, we see a positive trend in the demand, and We are optimistic on the performance in 2021.
Okay. Looking at the queue, we now have Chris Pitcher of Redburn, please. Chris?
Good morning. Thank you for the questions. Firstly, looking at remuneration, I mean sales growth and market share are clearly your primary financial objectives. Margin ceased to be a component of the annual bonus 2019 as you went into this investment phase, can you confirm that in the post pandemic period margins will be as a metric so that you align your public expectation of consumer EBIT growth ahead of sales growth With the internal ambition and to give investors reassurance that the delivery of the ambition, but importantly, that the return on investment is an important consideration for you. And then secondly, also looking at remuneration, digitalization is also an important component.
I appreciate this covers a multitude of functions, but Is percentage of sales from e commerce an important part of that? And if so, can you confirm whether 50% growth was in line with your target? And if you can share some target ambitions Percentage of sales so that we can gauge the effectiveness of the digital investments being made, I think that would be
a real help. Thank you.
Thank you for the questions. On the first question regarding margin, margin is important, as we said, and as we also confirm In where we're going forward, post COVID, with the investments and the growth, we want to Have a margin growth ahead of sales growth. It's difficult to predict when is post COVID going to hit in, That is exactly the intention. So insofar, I can reassure that margin also in this period is an important measurement It will remain an important measurement with the ambition we outlined. The growth of 50% of e commerce It's over and above in 2020 of what we estimated.
Obviously, as already said, the impact of COVID It has given a boost to e commerce sales almost everywhere in the world. And so far, 50% growth was over and above the target we originally set. We are now at a high single digit percentage of our sales, and we have a clear ambition by 2025 to have A higher digit and double digit percentage of our sales coming through e commerce as such. And that is where we believe the opportunity is for us and where, as I explained, a number of our Investments are focused upon.
So I can see we have one more caller, Philipp Frey, Warburg. Please go ahead.
Hi, gentlemen ladies and gentlemen. Very quickly on The level of Care plan investments in 2020, can you just give us a figure on that? You lumped it together Some other one time items. And then secondly, on tire, my dole and Business again. Can you if you look at Performance of your French competitor, well, you arrived somewhat at a conclusion.
You had a major innovation, But your competitor stole your lunch. So has Thijmeidou not Fully lift up to your expectations. So is it not has it not been as significant as we expected? Or have you lost In some other categories, just
a bit more color on that one, please.
Okay. Let me take the first question on Our investments in 2020, were they in line with our plans? Yes, they were. We committed to investing around €70,000,000 to €80,000,000 Per year is part of the CARE plus strategy. And we indeed did not cut the investments.
They were investments in white which we already talked about in China and in other parts of the world, especially with our strong innovation pipeline, As well as in digital capabilities, we invested in sustainability and so on. So yes, the SEK 70,000,000 to SEK 80,000,000 investments were reached as per plan. And We had other savings due to value engineering and so on to partially offset that, but the investments We executed as per the plan.
You did the €60,000,000 in 2021 you planned. Basically no big change from what you invested in 2020 basically.
Maybe I should answer that second part. So yes, in fact, what we have communicated is that this Additional €300,000,000 over 5 years is on top. So we will invest what we had said previously, plus on top The SEK 300,000,000, they will be front loaded to the 1st couple of years as we really want to accelerate the growth, and we're looking to have about Half or more in the 1st couple of years. Thank you.
Coming to the success of Thierrymeidol. Thierry Madol has exceeded our expectation in 2020 as such. But again, coming to Where we are and what we are doing. Thierrymeidol has been rolled out in All major countries in which we operate. But two important comments on this one.
Thierrymeidol has not been introduced in the U. S. At this moment. Thierry Madol application is one of hyperpigmentation, face hyperpigmentation. And in the U.
S, Our derma brands are basically in the Body Care segment. And so far in that effect of Thierry Midol on the global numbers, the U. S. Is not part of that. And we only introduced now in China.
So we're standing in the beginning. And as I pointed out before, the impact in that Being at the start of it is obviously at this moment outweighed by the success outside. If you take these 2 major markets that into consideration with these 2 major markets, all the other markets over delivered compared to what our original expectation was.
So we move to the last caller today, Tom Sykes, Deutsche Bank. Tom?
Yes. Thanks very much. Good morning, everybody. Just to follow-up again on the comments on FX and I think the raw material costs, can you be a little bit more specific on the gross margin outlook and particularly what At spot FX, you see the transactional impact of gross margin is? And secondly, on the Raw materials or what raw materials impact do you expect?
And really, is some of that raw materials impact part of The €300,000,000 please.
Yes. So on the FX first, how we look at 2021, which I understand is the question. We do not expect such a strong negative impact in 2021. However, we do expect some negative impact when we look at spot rates today where they are. In 2020, the impact was 80 basis points.
We at spot rates today, we're looking at around half of that coming from FX. On raw materials, it's mixed. We saw some we did have Some tailwinds in terms of raw materials prices in 2020. Some of the commodities are coming back up, but overall, We do not see such a significant impact from raw materials increases in 2021. I need to underline here that we continue with a very strong pipeline of projects of value engineering, so driving costs out In order to be able from our products and from our manufacturing as well So that we are able to offset any of the material cost increases which we see in 2021.
Okay. Well, thank you for all your questions. We are closing the line now. Thanks for having joined our conference call. We certainly appreciate your interest in Beiersdorf as always.
So thank you and goodbye.