2010 CAGNY 16 th February 2010 Michael Polk (President Americas) - James Allison (Head of IR) Safe Harbour Statement This announcement 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', 'believes' or the negative of these terms and other similar expressions of future performance or results, including any financial objectives, 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, the ability to complete planned restructuring activities, 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 announcement. 1
Agenda • Unilever Overview • Financial Performance • Strategic Priorities • Outlook Unilever started in 1890 William Lever Samuel van den Bergh Anton Jurgens “To make cleanliness commonplace, to lessen the work for women; to foster health and contribute to personal attractiveness; that life may be more enjoyable and rewarding for the people who use our products” William Hesketh Lever, 1890 2
Lever’s success in making low-cost soap widely available to the urban poor made a big contribution to Public Health in Victorian Britain We established global presence earlier Before 1900 After 1976 1951 - 1975 1926 - 1950 1900 - 1925 3
Becoming a leading consumer products company Unilever Unilever’s 2009 sales: $ 55 billion Sales (in US$)* * Based on latest reported results; average 2009 exchange rates. We are now selling almost everywhere 150 million times a day, 150 million times a day, in 150 countries, in 170 countries, people use our products at key moments of 1 in 2 households in the world have their day a Unilever brand at home 4
With a broad based portfolio Savoury, Dressings & SCC Beverages and Ice Cream 33% 20% Sales Sales Home Care Personal Care 30% 18% Sales Sales We have depth in distribution… From the Favelas of Sao Paolo to the villages of India 5
…and reach with the retail trade Balanced scale across geographies Western Europe $17bn 30% Sales Americas $18bn Asia AMET CEE 32% Sales $21bn 37% Sales 6
Leading Category Positions Local Strength ● Oral Care ● Household World Number 2 Cleaning ● Laundry ● Daily Hair Care World Number 1 ● Savoury ● Dressings ● Tea ● Ice Cream ● Spreads ● Deodorants ● Mass Skin Robust portfolio of brands with global scale 13 $1 BILLION + BRANDS 7
Strength in D&E markets Unilever 50% of Unilever’s global sales in D&E markets Sales in D&E markets (% of total)* * Based on latest reported results; average 2008 exchange rates. Strong D&E Track Record 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 20% 16% 50% of Unilever of Unilever 14% UPG 12% UVG 10% 8% 6% 4% 2% 0% 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 '09 8
Our markets start early in income spectrum Population Reach Small surface cleaners powder 6.2bn Bar soap Toothpaste & Toothbrushes Shampoo 3.9bn Fabric solution wash Ice Cream OOH Personal wash liquid 2.4bn Deodorants Machine dish wash 1.8bn Super premium Ice Cream 0.9bn 0 5000 10000 15000 20000 25000 GDP / capita $ The strategic journey Pre 2000 2000 - 2004 2005 - 2008 Conglomerate Path to Growth One Unilever 1600 Country/ Category Matrix 2005 400 One Unilever 2007 Before PtG • Portfolio change and brand focus Multi-Country & • Restructuring and savings Multi-Category • Increase operating Organisation 2008 margin 9
2010 - Exciting New Vision 2x 40bn • Focus on our consumers • Focus on our customers • Grow everywhere 2009 Objectives • Re-ignite Volume Growth • Protect Cash Flow and Operating Margin 10
James Allison Head of IR Agenda • Unilever Overview • Financial Performance • Strategic Priorities • Outlook 11
Volume Growth Restored Underlying volume growth 5.0% for the year is 2.3% 3.6% 2.0% -1.8% Q1 09 Q2 09 Q3 09 Q4 09 Volume Growth Restored in all Regions Americas Western Europe 5.5% +1.5% due to extra trading days 3.8% 2.6% -0.7% 1.6% 1.0% -1.0% -3.7% Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 12
Volume Growth Restored in all Regions Asia AMET CEE D&E 9.4% 9.5% 4.4% 4.6% 3.3% 3.3% -0.9% -1.2% Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 Volume Growth Restored in all Categories Home Care Personal Care Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 13
Volume Growth Restored in all Categories Foods Savoury, Foods Beverages Dressings & SCC and Ice Cream Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 Strong Savings Delivery Full Year • €1.4bn total savings Local Efficiency Restructuring €0.2bn � Including €0.5bn from €0.5bn Buying restructuring €0.7bn • At least €1bn savings in 2010 14
Increased investment in our brands + 240 bps Advertising Up by 80bps vs. 2008 +130 bps +50 bps -100 bps -130 bps -110 bps Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 • The quality of our products is improving Product Quality • Example - Klondike in the US • We are improving our brand equities Brand Equity Better No change Worse 27% 65% 8% Operating Margin Exceeded Underlying Operating Margin has improved 20bps +100 bps +70 bps for the full year -60 bps -30 bps Q1 09 Q2 09 Q3 09 Q4 09 15
Strong Cash Flow from Operating Activities Cash flow from operating €6.8 activities increased by €1.4bn €5.3 €4.8 €3.2 €2.5 €0.9 €0.3 €0.1 Q1’08 Q1’09 Q2’08 Q2’09 Q3’08 Q3’09 Q4’08 Q4’09 Working Capital Reducing Stocks Debtors 68 65 63 61 42 41 39 37 Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 Creditors Total Days 78 77 77 76 33 30 25 20 Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 Cash Conversion Cycle has improved by 14 days during 2009 16
Michael Polk President Americas Agenda • Unilever Overview • Financial Performance • Strategic Priorities • Outlook 17
Strategic Priorities • Winning with Brands and Innovation • Winning in the Market Place • Winning through Continuous Improvement • Winning with People Winning with Brands and Innovation • Research & Development • Product • Design • Communication • Bigger, better, faster rollout of innovations Winning with Brands and Innovation 18
R&D - The engine that drives profitable growth R&D • Genevieve Berger apointed to UEx • 6 major R&D centers • Stronger links with Marketing • Investment in patents & clinical trial expertise • Open innovation • Leverage science across our categories • Genesis projects Winning with Brands and Innovation R&D: Genesis Projects Genesis GENESIS Prioritisation: from a multitude of - Projects >€50m technologies to identify the most disruptive incremental Sales - Starting in 2011 - Cross-category + Consumer needs and Category needs Winning with Brands and Innovation 19
Sharpening Marketing Execution Superior Product Klondike • New thicker chocolatey shell Dove Nutrium • Added benefit - Superior moisturisation in a liquid Winning with Brands and Innovation Sharpening Marketing Execution Superior Product Knorr Jelly Bouillon •High quality ingredients •Patented jelly system Hellmann’s Mayonnaise •‘Light’ variant with taste and consistency of full fat Winning with Brands and Innovation 20
Sharpening Marketing Execution Superior Design Dove Men+Care • Formula developed for men with superior care and maximum skin comfort • Patented Micromoisture technology • Great pack design Sunsilk “Co-Creations” • Every bottle co- developed with a specific expert Winning with Brands and Innovation Sharpening Marketing Execution Superior Communication – Advertising Effectiveness Industry standard Winning with Brands and Innovation 21
Recommend
More recommend
