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Introduction to UnileverMarch 2009
Contents
Overview of Unilever Slide Mission 3-4 Geographic reach 5 Categories and brands 6-7 Strategic priorities 8 Management & organisation 9-11 Social responsibility 12 Customer partnerships 13-14
Innovation driving growth 15-19
Local roots and global scale 20-26
Financial summary Unilever financial performance 27 Commitment to shareholder value 28
Legal structure, governance and shares 29-35
Contact information 36
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This presentation may contain forward-looking statements, includingforward-looking statements within the meaning of the United States PrivateSecurities Litigation Reform Act of 1995. These forward-looking statements
are based upon current expectations and assumptions regarding anticipateddevelopments and other factors affecting the Group. They are not historical
facts, nor are they guarantees of future performance. Because theseforward-looking statements involve risks and uncertainties, there are
important factors that could cause actual results to differ materially fromthose expressed or implied by these forward-looking statements. Further
details of potential risks and uncertainties affecting the Group are describedin the Groups filings with the London Stock Exchange, Euronext Amsterdam
and the US Securities and Exchange Commission, including the AnnualReport & Accounts on Form 20-F. These forward-looking statements speakonly as of the date of this presentation.
Safe harbour statement
Our mission
Unilevers mission is to add
Vitality to life.
We meet everyday needs of nutrition,
hygiene and personal care with
brands that help people feel
good, look good and get more
out of life
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Adding Vitality to life
160 million times a day, in 150 countries, people useour products at key moments of their day
Scale and geographic reach
Our deep roots in local cultures and markets around the world give us our strong relationshipwith consumers and are the foundation for future growth. We will bring our wealth of knowledgeand international expertise to the service of local consumers - a truly multi-local multinational -
extract from Unilevers Corporate purpose
The Americas | 13bn | 32%
2008 Turnover 40.5billion
Western Europe | 13bn | 32%
AACEE | 14.5bn | 36%
Present in 150 countries around the world; 174,000 employees*
*as at end 2008
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Savoury, Dressings &Spreads
Personal Care Ice Cream &Beverages
Home Care
Unilevers Portfolio of CategoriesSavoury
Dressings
Ice Cream
Laundry
Household Cleaning
Deodorants
Spreads
Tea
Daily Hair Care
Mass Skin
Oral Care
World Number 1
World Number 2
Local strength
Leading Category Positions
Strong category positions
19%
35%18%
28%
*as at end 2008
Business Overview
Big global brands
Top 25 brands = of Unilevers sales
*as at end 2008
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Unilevers strategic priorities
Personal Care Developing &Emerging Markets
Vitality
Chief Executive Officer
President
Asia Africa &
CE Europe
President
Foods, Home
& Personal Care
President
Americas
Chief HR
Officer
A global management team
Non-Executive Chairman
Michael Polk Harish Manwani Vindi Banga Sandy Ogg James Lawrence
Paul Polman Michael Treschow
President
Western Europe
Doug Baillie
Chief R&D
Officer
Genevive Berger
Chief Finance
Officer
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Categories
Deliver global platforms
Responsible for:
Brand development
Innovation
Research and Development
Accountable for:
Medium/long term market share
Brand health
Innovation metrics
Category value creation
Regions and CategoriesClear, distinct, complementary roles
Regions
Execute on the ground
Responsible for:
Managing the business
Deploying brands and innovations
Customer management
Accountable for:
Growth
Profit
Cash flows
Short term market shares
People are the heart of our businessHarnessing, developing and rewarding their skills, energy and
commitment is our priority
Unilever is one of the worlds most culturally diverse companies, withtop leadership from 20 nations.
More than 35% of
managers worldwide arewomen.
Our people
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Customer partnerships
Unilever has unparalleled reach across the store, bringingunique shopper insight to our partnership with customers
Innovation Driving Growth
Vitality
Bouillon jellyproprietary technology
Making foods healthier
A unique slimmingtea twice as rich in catechins
to help maintain yoursilhouette
Driving sustainability
Stronger functional claims
Nutrition
Family Goodnessbrings better
nutrition for familygrowth
For better tasteand with less fat
Detergent concentrationtechnology for less
water, less transport,higher margins
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Innovation Driving Growth
Superior Technology
An unrivalled multi-sensorial experienceusing cold roller technology
Magnum Temptation
Delicious lightmayonnaise with only
3% fatWith unique citrusfibre technology
Hellmanns Light
Vaseline Clinical Strength
Comfort Fresh Technology Release
Clinically proven to provideprescription strength
moisturisation
Comfort with breakthroughtechnology
Do the moves to release thefreshness
Innovation Driving Growth
Rapid roll-out
Dove Go Fresh
52 countries
New Lipton Pyramid Tea
Axe Dark Temptation
Hellmanns with citrus fibre
55 countries
30 countries 40 countries
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Premium
Mid tier
FamilyValue
Products available at various price-points
Example Ice Cream
Innovation Driving Growth
Science and Technology Strengths
Spray TechnologyDeodorants
StructuredOils and Emulsions
HairTechnology
Skin Mildnessand Moisturizing
Product Processinge.g. Ice Cream
Science of Tea
Some examples:
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Local roots Global scale
Local roots with global scale
Global portfolio of brands andcategories
Dedicated R&D investment
Shared values and standards ofbehaviour
Understanding of the localconsumer
Brands and products across awide range of income levels
Critical mass on the ground
Corporate reputation with local
stakeholders and talent pool
Our heritage and local expertise
mean that D&E is in our DNA
Leveraging our scale brings usadvantages over local competition
1bn new consumers in next 10 years based onpopulation and income growth
Consumer spending is growing faster in D&E than inthe developed world
Rising per capita income gives disproportionategrowth in per capita consumption for Unilevercategories
The D&E opportunity
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The D&E opportunity
0.5
2.6
2.6
Affluent
Aspiring
Striving
D&E Population in 2008(billions)
Annual per capita consumption ()
Source: Absolute value. Euromonitor 2007
Detergents Shampoo
The opportunity in our categories
India
Chi
na
Indo
nesia
Brazil
USA
India
Chi
na
Indo
nesia
Brazil
USA
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Growth Strategy: Priorities
D&E Markets
New consumers
Trading consumers up
Consumer penetration
Conversion in foods
1 billion newconsumers inthe next 10
years
Loose LeafTea
Standardteabags
Pyramidteabags
Re-closablemulti-usesachets
Deo ministicks Mini cubes
Packaged food opportunity
A major driver of Unilevers growth
Western
Europe
38%
North
America
23%
D& E
36%
% 2004 Sales % 2008 Sales
Other developed3%
Other developed3%
D&E underlying sales growth c. 9% p.a. since early 1990s
D&E
44%
North
America
21%
Western
32%
D&E
47%
North
America
18%
Western
Europe
32%
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D&E Growth is Profitable
2008 Operating margin before RDIs*
* Restructuring, disposals and one-off items
Unileveraverage
Unilever Financial Performance
4.34.2Net Profit before RDIs** bn
1.791.321.191.070.87Earnings per share*
3.93.94.54.45.5Net Cash Flow from operating activities bn
1.431.39Earnings per share before RDIs**
5.34.13.73.32.7Net Profit* bn
5.95.8Operating Profit before RDIs** bn
7.25.25.45.14.0Operating Profit bn
40.540.239.638.437.2Turnover bn
20082007200620052004Total Unilever
** Restructuring, disposals and one-off items* Continuing operations
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Commitment to shareholder value
our road to sustainable, profitable growth, creating long term value for our shareholders, ourpeople, and our business partners extract from Unilevers Corporate purpose
Unilever measures its Total Shareholder Return, over a 3 year rolling period, amongst a peergroup of 20 other companies.
Peer group in 2008
Avon
Beiersdorf
Cadbury Schweppes
Clorox
Coca-Cola
Colgate
Danone
Heinz
Kao
Kraft
Kimberley Clark
Lion
LOral
Nestl
Orkla
Pepsico
Procter & Gamble
Reckitt Benckiser
Sara Lee
Shiseido
Unilevers TSR position relative to the peergroup over a rolling 3 year period
0
7
14
21
1998 2000 2002 2004 2006 2008
Unilever was formed in 1930 from two companies:
It was a full business merger, operating as a single business entityTwo separate legal parent companies were maintained:
- Unilever NV (Netherlands) and Unilever PLC (UK).
This works through an equalisation agreement and other contracts betweenthe two companies
Legal structure, governance and shares
Margarine Unie(Netherlands)
Lever Brothers(UK)
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Legal structure
Unilever NV and PLC have separate legal identities but operate as a single entity
NV shareholders
PLC shareholders
Directors
NV PLCEqualisation
One Unilever Operating Units
Legal structure
These have evolved in response to developments in Europe (UK Combined Code, DutchCorporate Governance Code) and the US (Sarbanes Oxley, NYSE listing rules)
Unilever operates a unified board: the boards of NV and PLC comprise the samedirectors
There is a majority of independent, non-executive directors on the board. The
Chairman is non-executive
The boards have ultimate responsibility for the business as a whole
Details of current arrangements can be found in the report and accounts in the investorcentre at www.unilever.com
Unilever firmly believes in maintaining high standards of CorporateGovernance
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Share listings
Unilever NV ordinary shares or certificates (depositary receipts) are listed on the stockexchanges in Amsterdam and as New York shares on the New York Stock Exchange.
Unilever PLC ordinary shares are listed on the London Stock Exchange and asAmerican Depositary Receipts in New York. Each ADR represents 1 underlying ordinaryPLC share.
There are 1 714 727 700 NV ordinary shares in issue, each with a nominal value of0.16.
There are 1 310 156 361 PLC ordinary shares in issue, each with a nominal value of 31/9 pence.
The equalisation agreement between NV and PLC is such that each NV ordinary sharehas the same rights and benefits as each PLC ordinary share.
The combined share count excluding treasury stock, for calculating basic EPS, was2,789 million at the end of 2008.
Further information can be found in the investor centre at www.unilever.com
Share listings
For details of proposed changes to dividend schedule
please see www.unilever.com/investorrelations/shareholder_info/dividends
Notes:*Relates to interim and final dividends per ordinary share
Final 2008 dividends subject to AGM approvalUS dividends based on exchange rate on 4 Feb 2009
Exchange
Share
Ticker
Dividend pershare 2008*
Amsterdam
UnileverNV
UNA
0.77
London
UnileverPLC
ULVR
0.61
New York
UnileverNV NY
UN
$0.99
UnileverPLC NY
UL
$0.91
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Share listings and ownership
Share listings as a percentage ofcapital
Share ownership* by country at theend of 2008
Netherlands
12% USA23%
NV NY10% UK
32%
PLC
38%
Other33%
NV
47%
PLC ADR5%
Taxation on dividends for US residents
This information is intended to provide general guidance only. Actual taxtreatments will depend on specific circumstances. US residents should consult
their local tax advisers.
The information shown is generally applicable to a typical US resident.
Further information can be found in the Unilever Annual Report & Accounts,available on the investor centre at www.unilever.com
Share
Unilever NV(Netherlands)
Unilever PLC(UK)
Local withholding tax US tax Effective tax on dividends
15% eligible for creditAgainst US income tax
Max 15% Max 15%
None Max 15% Max 15%
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Further information and contact details
The IR team can be contacted bytelephone as follows:
+ 44 (0) 20 7822 6830
Or by e-mail at:[email protected]
The shareholder centre at www.unilever.com gives informationon how to purchase Unilever stock.
More information on Unilever is available at www.unilever.com