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1
Q1 2009 Results
ROADSHOW
Contents
Page
Business Performance 2 – 9
Our Portfolio 9 – 12
Developing & Emerging Markets 12 – 17
Innovation 17 - 27
Winning in Challenging Times 27 - 30
2
Safe Harbour Statement
This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results, and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this presentation.
Q1 Highlights
• Underlying sales growth +4.8%
• Savings programmes deliver strongly
• Underlying operating margin -30bps
• Two bond issues at competitive rates
• Acquisitions of TIGI and Baltimor
3
Our Markets
• Markets continue to be soft
• Consumer behaviour changing
• Strong well supported brands can do well
• D&E footprint - a competitive advantage
• US picking up but WE still difficult
Q1 Underlying Sales Growth by Region
10.5
8.3
1.0
6.8
-0.9 -1.0
-3.7
-1.8
9.5
7.2
-2.8
4.8
-6
-4
-2
0
2
4
6
8
10
12
Asia Africa CEE Americas Western Europe Total Unilever
Price Vol USG
4
Q1 Underlying Sales Growth by Category
2.94.3
10.7
4.0
0
2
4
6
8
10
12
SavourySpreads
Dressings
Ice CreamBeverages
Home Care Personal Care
Q1 Drivers of Operating Profit*
*Excl RDIs, constant currency
0
-0.5
-0.3
-0.1
0.1
0.3
0.5Price
Savings programme
Costs
A&P
UnderlyingProfit
€b
n Vol/Mix
Commodity cost inflation Q1 2009 €0.6bn
Acq/Disp
5
Commodity Cost Impact on Margin
0
100
200
300
400
500
600
700
800
900
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09
bps
Q1 Operating Margin
(1.9)%Gross margin
0.5%Overheads
1.1%A&P
14.9%
4.1%
19.0%
Q1 2008
Key drivers:
(0.3)%14.6%Operating margin before RDIs
(5.7)%(1.6)%Including RDIs*
(6.0)%13.0%Operating margin
ChangeQ1 2009
*Restructuring, disposals and one-off items
Includes margin dilution from disposals of (0.3)%
6
29From 100 units to 20-25 MCOsMulti-country organisations
Closures completed
50-60Factory closures / streamlining
Actual to datePlan 2007-2010
Closures announced
Streamlining announced
26
34
10
Restructuring Well on Track
70
Headcount reduction > 10,00020,000
Restructuring savings €0.8bn€1.5bn
Restructuring charges €1.8bn€3.0bn
*Restructuring, disposals and one-off items
Q1 Drivers of EPS Growth
(0.04)0.12Includes RDIs*, after tax
(13)%0.300.35EPS before RDIs*
(44)%0.260.47EPS (€)
ChangeQ1 2009Q1 2008
(1)Currency and other
(5)Tax rate (before RDIs*)2 Share buy-back (2008)
(7)Finance costs (incl. Pensions)
(2)Operating profit before RDIsKey drivers (%)
7
Balance Sheet and Cash Flow
• Cash flow from operating activities €0.1bn
– Seasonal outflow of working capital
– Cash conversion days improved
– Increased pension contributions
• Liquidity strong
– US and UK bond issuances at competitive rates
• Further progress on acquisitions
Actions taken to strengthen business
• 30 day action plans for all key markets
• Bigger innovation, rolled out faster
• Step up in A&P from Q2
• Better on-shelf availability
Actions taken to drive volumes
Actions taken to protect cash flow and margins
• Restructuring plans brought forward
• Simplification
• Focus on working capital
8
30 day fix-it plans
Example - South Africa Laundry
• Launch of Sunlight value powder
• Innovation with added value - Omo with encapsulated fragrance technology
• Moving to lower cost packaging
• Reignite volume growth
• Protect cash flow and margin
Our Priorities
9
Returning Cash to Shareholders
0
1
2
3
4
2004 2005 2006 2007 2008
Tota
l cas
h am
ount
(€b
n)
Dividends Share buyback One-off dividend
> €7bn returned 07-08
• Dividend Policy: sustainable, attractive and growing dividends
• Proposal to move to quarterly dividends
• No plans for share buy-backs in 2009
Our Portfolio
10
Strong Leadership Positions
Savoury #1
Dressings #1
Tea #1
Ice Cream #1
Spreads #1
Deodorants #1
Mass Skin #1
Laundry #2
Daily Hair Care #2
Oral Care Local Strength
Household Cleaning Local Strength
Big Global Brands
Top 25 brands = ¾ of Unilever’s sales
13 billion euro + brands
11
Selective Bolt-On Acquisitions
Buavita IndonesiaTIGI GlobalInmarko Russia
Baltimor RussiaNapoca RomaniaWonderlight Sri Lanka
Partnerships
Starbucks Ice Cream Pepsi Lipton International
12
Bertolli Olive Oil
NA Laundry
Lawry’s Seasonings
Boursin Cheese
Including:
Disposals completed in 2008
Disposals completed with €1.6 billon turnoverAverage 1.8x sales multiple
0.1
0.1
0.7
0.4
Turnover €bn
Developing & Emerging Markets
13
The D&E Opportunity
0.5
2.6
2.6
Affluent
Aspiring
Striving
D&E Population in 2008(billions)
… Rapidly Evolving into a Diamond
Have lots
Haves
Not yets
2008 2018 Change
+ 0.4
+ 0.6
- 0.4
3.2
2.2
0.9
Source: Unilever estimates
2.6
2.6
0.5
Billions of people in D&E countries
14
Market Development Opportunity
Per Capita Consumption (US $ per year )
Source : Euromonitor
Detergents
1.4 2.2 1.9
12.116.6
22.9
India China Indonesia Brazil Germany USA
Shampoo
0.31.0 1.1
5.46.7
7.5
India China Indonesia Brazil USA Germany
Ice Cream
0.2 0.9 2.8 5.0
34.6
50.9
India Indonesia China Brazil Germany USA
Skin care
0.3 3.2 0.8
10.9
26.9
36.6
India China Indonesia Brazil USA Germany
Building Markets – Driving Penetration
Shampoo sachets Re-closable multi-usesachets
Deo ministicks Mini cubes
15
Building Markets - Uptrading
conversion upgrading uptrading
Loose Leaf Tea
Branded Packet Tea
Mid-market Teabags
Double Chamber
Functional Teas
D&E Conversion Teabags
Pyramids
• Great potential for uptrading
• Tea has 20% share of volume vs. 12% value for total Beverages
-2
0
2
4
6
8
10
12
14
16
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
UVG UPG
Long-Term Strength in D&E
Since 1990…• Underlying sales growth 9% pa on average• Hard currency growth of 7% pa on average• Volume growth 5% pa on average• Volume and value growth in every year
*1990-2002 LATAM and Asia. From 2003 all countries excl NA, WE, Japan and Australia.
16
D&E Growth is Profitable
2008 Operating margin before RDIs*
* Restructuring, disposals and one-off items
Unileveraverage
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Indonesia – Strengthened through Crisis
1998 South-East Asia Economic Crisis
US$
Sales and profits in hard currency• Profit level recovered in one year• Profit margin increased
Operating profit
Turnover
17
2000 2001 2002 2003 2004 2005 2006 2007 2008
Argentina - Strengthened through Crisis
US$
2002 Peso crisis
Sales and profits in hard currency• Profit level recovered in two years• Profit margin increased
US$ Operating profit
Turnover
Innovation
18
Number of category innovation projects
0
1000
2000
3000
4000
5000
6000
2005 2006 2007 2008 2009
Fewer, Bigger Innovations
• From 5000+ projects to 700
• Average project size increased 10x
Faster Roll-out to More Markets
30 markets
40 markets
52 markets
20 markets
55markets
19
Building R&D for Competitive Advantage
• More focus on big wins
• Leverage our unique science across our portfolio
• Accelerate delivery of breakthroughs
• Build world class capabilities in critical areas
Science and Technology Strengths
Spray TechnologyDeodorants
StructuredOils and Emulsions
HairTechnology
Skin Mildness and Moisturizing
Product Processinge.g. Ice Cream
Science of Tea
20
Consumer NeedsTrendsBrand
Categories
Prioritising our big wins
Science & Technology
Unilever Big Wins
Prioritised Portfolio
Genesis Projects
Leverage Technology Across Portfolio
Genesis Project 14
Genesis Project 15
Genesis Project 16Genesis Project 17
Con
sum
er B
enef
it Fo
cus
Scie
nce
&Te
chno
logy
Foc
us
Genesis Project 2
Genesis Project 7Genesis Project 8
Genesis 9
Genesis Project 10
Genesis Project 3Genesis Project 4Genesis Project 5
Genesis Project 6
Genesis Project 11Genesis Project 12
Genesis Project 13
Genesis Project 1
Home Care Personal Care Foods
21
Knorr Stock Pots
Stock Pots with new bouillon gel technology for natural tasty stock and soups
Launched in China and Europe
Bertolli Frozen Meals
New Bertolli Frozen Meals
Restaurant Taste with your Homemade Touch
22
Family Goodness brings better
nutrition for family growth
For better taste and with less fat
Heart Health
“Goodness of Margarine”
Hellmann’s Light
Delicious extra light mayonnaise with unique citrus fibre technologyNow with only 3% fat
23
Lipton
A unique slimming tea twice as rich in catechins
to help maintain your silhouette
New Lipton pyramid teas and infusions with chunky pieces of fruits, spices and large leaves for the great tea
tasting experience
Magnum Temptation
An unrivalled multi-sensorial experience using cold roller technology
24
Clear
Complete antidandruff and scalp care regimeCentrally developed, identically presented
Axe Hair
New Axe Hair launched in the US designed to create hair that guys want and girls love
A complete line of shampoos, a conditioner, and styling products
25
Axe Chocolate
As Irresistible As ChocolateGlobal No.1 Axe variant
Rolled out to over 55 markets
Dove Hair Minimising Deodorants
New Dove Hair Minimising Anti-PerspirantPut an end to that prickly feeling between
shaves
26
Dove Go Fresh
Dove Go FreshA fragrance-driven collection of products aimed at women in their 20s
Rolled out to 55 markets in 2008 alone
Domestos 24HR
The clinging power of new thicker formula makes it flush proof,
protecting you and your family from germs
27
Surf with Essential Oils
Surf Small & Mighty with Essential OilsEncapsulated Fragrance Technology
Gorgeous Laundry for Less
Winning in Challenging Times
28
Winning in Challenging TimesMore focus on value – adjusting messages
Knorr Ragu pasta sauces campaign in the US
“Feed your kids well”
Dirt takes its toll on things you cherish. Cifcream’s microparticles lift dirt easily,
brining back the clean and a new lease of life
Cif “Rejuvenate your favourite things”
Full pack size ranging in each country
250ml 500ml 750ml400ml
Winning in Challenging TimesOptimising pack sizes
29
Build Super Premium
Renovate the
premiumcore
Re-enter mass/
economy
Winning in Challenging TimesPlaying the price piano – Ice Cream
Catering to various consumer opportunitiesTea - UK
Decaf Tea
121
Loose leaf tea
84
Pyramid Tea
100
Special Blend Tea
113
Green Tea218
Pure Tea Granules
112
Herbal Tea266
*Indexed per cup
30
Catering to various consumer opportunitiesSpreads - UK
Stork - Baking46
Flora White - Baking93
ICBINB77
Flora Original10
0
Flora Extra Light100
Flora Buttery131
Pro-activ302
Pro-activ extra light302
Pro-activ with olive oil305
Bertolli Olive 120
*Indexed per 100g
Catering to various consumer opportunitiesLaundry – Brazil
Brilhante laundry bleach
Surf FoFo Powder
Omo Baby Powder
Omo Active Clean PowderOmo Comfort
Brilhante Entusiasmo crystals
Brilhante white and colours
Surf Carinho do Branco
Omo Progress
170
130
90 100
60 85
118100
70
*Indexed per 100g