Unilever Plc · LSE:ULVR
Unilever — Q3 2004 Earnings Presentation
16 slides from Unilever's earnings presentation, 2004
Slide 1: Unilever Roadshow: Third Quarter & Year to Date 2004 Results
Unilever Roadshow Third Quarter & Year to Date 2004 Results 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. These forward-looking statements are based upon curre
Slide 2: Q3 2004 - Underlying sales growth
Q3 2004 - Underlying sales growth % % Europe (5.3) Savoury & Dressings 1.5 N.America 0.0 Spreads & Cooking Products 2.9 Latin America 6.4 Ice Cream & Frozen (5.9) Africa & Middle East 4.1 Health & Wellness & (6.9) Asia & Pacific 0.2 Beverages Foods (1.9) Total (1.3) Home Care (2.2) Personal Care 0.1
Slide 3: Improving Competitiveness in Europe; Taking the Initiative in Asia
Improving Competitiveness in Europe- YTD USG (4.0)% Issues: • Weak consumer confidence • Retail dynamics: discounters, traditional retailers • Share loss in some categories Actions being taken: • Pricing • Innovation • Activation Taking the Initiative in Asia • Large and growing market • Increasing
Slide 4: Improving competitiveness in Europe
Committed to sustainable profitable growth • Long track record of commitment to shareholder value • Costs and capital well controlled • Capacity for further savings • Global scale and reach • Strong brands and market positions Immediate priority - improve market competitiveness to re-ignite growth A
Slide 5: Improving competitiveness in Europe: Innovation & Activation - Foods
Improving competitiveness in Europe Pricing • Spreads family brands: Germany & Poland • Laundry price positions: Surf UK, Skip Portugal Innovation • Pro-activ yoghurt drinks: UK, Portugal, Belgium • Comfort Pearls: UK Activation • ‘Dirt is Good’ campaign • Hair brands • Knorr activities Innovation &
Slide 6: Taking the Initiative in Asia: Innovation and Activation - HPC
Innovation and Activation - HPC Comfort Pearls Lux soap bars, bath & shower products “Dirt is Good” Taking the Initiative in Asia in rta e C o p m u s . v f,lb g x E d c S h w fre o in d a g e th d p ic n a ts n e m o c lp v d d n a rils te a m h o in rs to c fa is th g n c fe a io ta n s re p h y a
Slide 7: Taking the Initiative in Asia: Asia Innovation - Japan
Taking the Initiative in Asia Aggressive and well supported innovation programme e.g.: • Lux Super Rich in Japan Hair • Rin ‘Advance’ in India Laundry • Clinic All Clear, Hazeline, Clear in anti-dandruff across the region • Any many others Asia Innovation - Japan Mod’s shampoo and Lux Spa Moist Lux
Slide 8: Asia Innovation - India
Asia Innovation - India Lux Rin ‘Advanded’ Clinic All Clear Prestige Slim.Fast Frozen Food in rta e C o p m u s . v f,lb g x E d c S h w fre o in d a g e th d p ic n a ts n e m o c lp v d d n a rils te a m h o in rs to c fa is th g n c fe a io ta n s re p h y a m . p u ro G i ta n o c g in -lk d a r
Slide 9: Prestige Fragrances and Slim.Fast Re-vamp
Prestige Fragrances - CK Eternity Moment Slim.Fast Re-vamp Phase 1: Low Carb Extended the range to include a further 17 low carb products Q2 Phase 2: Revamp classic portfolio Slim.Fast Optima launched Q3 with 40-50% less sugar By the end of Q3 we will have changed all 60 SKUs in rta e C o p m u s .
Slide 10: Supporting our winners
Frozen Food Re-invigorating the in-store Iglo / Birds Eye /Findus Brand re-launch environment Q3 ‘04 - Q1 ‘05 The natural, fresh way to great tasting food …. Vitality Steamfresh extended in Extension of fish and complete nutritious meals for meals kids through Captain’s promise Supporting our winner
Slide 11: Unilever - a long term perspective: Winning innovations
Winning innovations Rexona Sensive in Sunsilk in Europe Axe antiperspirant Latin America sticks & gels AdeS YoFresh Soy drink launched in Brazil Rollout of Cubitos in new D&E markets Unilever - a long term perspective in rta e C o p m u s . v f,lb g x E d c S h w fre o in d a g e th d p ic n a ts n
Slide 12: Managing the levers of Value Creation
Managing the levers of Value Creation A much more focused brand portfolio - not yet delivering consistent performance 1995 1999 2003 Operating Margin % (beia) 8.7 11.1 15.8 Total Operating Assets % sales 38 29 20 Tax Rate (beia) % 34 32 29 Free Cash Flow €bn 1.4 2.8 3.9 ROIC % 9.2 16.5 12.5 Cost of
Slide 13: Progress on Financial Strategy
Progress on Financial Strategy Net Debt 2000* CFO Dividends A&D Capex & Fin 5.9 6.0 Currency Invest. Retranslation Net Debt 26.5 26.6 5.0 4.1 Q2 04* Tax Interest 6.5 Other 11.8 4.6 Cost of Capital down Tax Rate down *2000 closing EUR/USD 0.93, Q2 2004 closing EUR/USD 1.213 Bestfoods acquisition - me
Slide 14: Free Cash Flow and Return on Invested Capital
Free Cash Flow Free cash flow 1994 - 2003 4500 4000 3500 € millions 3000 3 year rolling average 2500 2000 1500 1000 500 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Free cash flow is defined as: cash flow from operating activities, less capex and financial investment and after charging tax Av
Slide 15: Building our business through brands
Building our business through brands Customer management as a competitive advantage Global Partnerships Regional Relationships in rta e C o p m u s . v f,lb g x E d c S h w fre o in d a g e th d p ic n a ts n e m o c lp v d d n a rils te a m h o in rs to c fa is th g n c fe a io ta n s re p h y a m
Slide 16: Unilever Roadshow
Unique store reach Source: AC Nielsen Unilever Roadshow Third Quarter & Year to Date 2004 Results 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. These forward-l