UNILEVER TRADING STATEMENT THIRD QUARTER 2018 G R A E M E P I T K E - - PowerPoint PPT Presentation

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UNILEVER TRADING STATEMENT THIRD QUARTER 2018 G R A E M E P I T K E - - PowerPoint PPT Presentation

UNILEVER TRADING STATEMENT THIRD QUARTER 2018 G R A E M E P I T K E T H LY / R I C H A R D W I L L I A M S 1 8 T H OC TO B E R 2 0 1 8 SAFE HARBOUR STATEMENT This announcement may contain forward- looking statements, including forward -


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SLIDE 1

UNILEVER TRADING STATEMENT THIRD QUARTER 2018

G R A E M E P I T K E T H LY / R I C H A R D W I L L I A M S 1 8 T H OC TO B E R 2 0 1 8

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SLIDE 2

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 ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vision’, 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 Unilever Group (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. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: Unilever’s global brands not meeting consumer preferences; Unilever’s ability to innovate and remain competitive; Unilever’s investment choices in its portfolio management; inability to find sustainable solutions to support long- term growth; the effect of climate change on Unilever’s business; customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain; the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; successful execution of acquisitions, divestitures and business transformation projects; economic and political risks and natural disasters; financial risks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters. These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is

  • based. 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 in the Annual Report on Form 20-F 2017 and the Unilever Annual Report and Accounts 2017.

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SLIDE 3

GRAEME PITKETHLY

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SLIDE 4

Q3 2018

  • Good growth from price and volume
  • Emerging markets holding up
  • All divisions accelerated
  • Guidance unchanged
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SLIDE 5

Mixed market conditions

Source Nasdaq

Jan’18 Oct’18 100 130 Crude oil $ barrel price rebased to 100 Currencies vs. USD rebased to 100 Jan’18 Oct’18 220 100

Argentina Peso Turkish Lira Brazilian Real

Mixed market performance

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SLIDE 6
  • Soft developed markets

comparators

  • Brazil truckers
  • Argentina

Lots of moving parts

+4.5% +3.8%

Underlying Sales Growth Q3’18

with Argentina price growth

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SLIDE 7

USG 3.8%: Balanced growth from volume and price

UVG

0.7%

USG

  • Pricing coming back
  • Volume strong
  • Challenges to navigate

UPG

(0.1)% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18

3.8% 1.6% 3.4% 4.0% 2.6%

Underlying Sales Growth incl. Spreads excludes Venezuelan price, and Argentinian price from 1 July 2018 onwards

2.4% 0.2% 3.2% 0.7% 3.4% 0.1% 1.2% 0.3% 2.4% 1.4%

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SLIDE 8

Beauty & Personal Care

USG +4.0%, UVG +2.8%

Grow the core Evolve the portfolio

Purpose-led brands Strong core New brands Prestige & acquisitions

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SLIDE 9

Home Care

USG +4.5%, UVG +1.5%

Grow the core Evolve the portfolio

Locally relevant New brands Acquisitions Strong core

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SLIDE 10

Foods & Refreshment

USG +3.2%, UVG +2.5%

Grow the core Evolve the portfolio

Market development New brands Out of home Acquisitions Purpose-led brands

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SLIDE 11

RICHARD WILLIAMS

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SLIDE 12

Asia / AMET / RUB

UVG 4.3% TO €5.6bn USG 6.6%

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 6.0% 6.5% 5.9%

Third quarter Quarterly trend

6.3% 6.6%

UVG USG UPG

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SLIDE 13

UVG 0.1% TO €1.7bn USG 1.5%

Quarterly trend

UVG USG UPG

6.6% 4.6% 2.2% (6.9)% Q3’17 Q4’17 Q1’18 Q2’18

Third quarter

1.5% Q3’18

Underlying Sales Growth exc. Argentinian and Venezuelan Price from 1 July 2018 onwards

Latin America

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SLIDE 14

Argentina hyperinflation

Q1 18 Q2 18 Q3 18 Price impact Total Unilever 70bps 35bps 15bps (10.3)% 34.2% 17.4% (6.3)% 1.0% 7.8%

USG Argentina

8.9% 10.0% (10.3)%

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SLIDE 15

North America

Q3'17 Q4'17 Q1'18 Q2'18 Q3'18

UVG 0.4% TO €2.3bn USG 1.9%

Quarterly trend

(2.8)% 2.8% 3.1% (1.0)%

Third quarter

1.9%

UVG USG UPG

Underlying Sales Growth exc. Spreads

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SLIDE 16

Europe

UVG 1.9% TO €3.0bn USG 1.5%

Quarterly trend

(1.5)% 0.3% 1.1% 1.5% Q3’17 Q4’17 Q1’18 Q2’18

Third quarter

Q3’18 1.6%

UVG USG UPG

Underlying Sales Growth exc. Spreads

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ARGENTINA UPG Q3 2017 UVG M&A FX Q3 2018

Q3 2018: Turnover

UPG

  • Incl. Arg

USG 3.8% €13.1bn €12.5bn 2.4% 2.1% (0.7)% 2.1% (5.2)% (5.3)%

SPREADS DISPOSAL

2.2%

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SLIDE 18

GRAEME PITKETHLY

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SLIDE 19

2018 full year outlook

❑ Underlying Sales Growth within the 3-5% range ❑ Underlying Operating Margin: continued progress to 2020 target ❑ Strong cash flow

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UNILEVER TRADING STATEMENT THIRD QUARTER 2018

G R A E M E P I T K E T H LY / R I C H A R D W I L L I A M S 1 8 T H OC TO B E R 2 0 1 8