Unilever PLC · LSE:ULVR
Unilever — CAGNY 2010
30 slides from Unilever's conference presentation, Feb 16, 2010
Slide 1: 2010 CAGNY
2010 CAGNY 16th 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 199
Slide 2: Agenda; Unilever started in 1890
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 m
Slide 3: Success in low-cost soap and early global presence
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
Slide 4: Becoming a leading consumer products company
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, people use ourinproducts
Slide 5: Broad portfolio and depth in distribution
With a broad based portfolio Savoury, Dressings & SCC Beverages and Ice Cream 33% 20% Sales Sales Home Care Personal Care 18% 30% Sales Sales We have depth in distribution… From the Favelas of Sao Paolo to the villages of India 5
Slide 6: Reach with the retail trade; balanced scale across geographies
…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
Slide 7: Leading Category Positions
Leading Category Positions Local Strength ● Oral Care World Number 2 ● Household Cleaning ● Laundry World Number 1 ● Daily Hair Care ● Savoury ● Dressings ● Tea ● Ice Cream ● Spreads ● Deodorants ● Mass Skin Robust portfolio of brands with global scale 13 $1 BILLION + BRANDS 7
Slide 8: Strength in D&E markets
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
Slide 9: Our markets start early in income spectrum
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 Deodorants 2.4bn Machine dish wash 1.8bn Super premium Ice Cream 0.9bn 0 5000 10000 15000 20000 250
Slide 10: 2010 - Exciting New Vision
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
Slide 11: James Allison, Head of IR
James Allison Head of IR Agenda • Unilever Overview • Financial Performance • Strategic Priorities • Outlook 11
Slide 12: Volume Growth Restored
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 3.8% extra trading days 2.6% 1.6% -0.7% 1.0% -1.0% -3.7% Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 1
Slide 13: Volume Growth Restored in all Regions
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
Slide 14: Volume Growth Restored in all Categories
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 €0.2bn Restructuring ¾ Including €0.5bn from €0.5bn Buying restructuring €0.
Slide 15: Increased investment in our brands
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 B
Slide 16: Strong Cash Flow from Operating Activities
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 68 Debtors 65 63 61 42 41 39 37 Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 C
Slide 17: Michael Polk, President Americas
Michael Polk President Americas Agenda • Unilever Overview • Financial Performance • Strategic Priorities • Outlook 17
Slide 18: Strategic Priorities
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 Winnin
Slide 19: R&D - The engine that drives profitable growth
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 Innovat
Slide 20: Sharpening Marketing Execution
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
Slide 21: Sharpening Marketing Execution
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 S
Slide 22: Sharpening Marketing Execution
Sharpening Marketing Execution Superior Communication - Digital Digital investment has almost doubled and it is now c.10% of total Media Winning with Brands and Innovation Sharpening Marketing Execution Bigger, Better, Faster rollout of Innovations Dove Fresh Clear Dove minimising Deo Axe Temptation
Slide 23: Winning in the Market Place
Strategic Priorities • Winning with Brands and Innovation • Winning in the Market Place • Winning through Continuous Improvement • Winning with People Market Development More New usage users New benefits (trading up) Winning in the Market Place 23
Slide 24: Market Development
Market Development New Users Winning in the Market Place Market Development More Usage Winning in the Market Place 24
Slide 25: Pricing: Playing the full price Piano
Market Development New Benefits Winning in the Market Place Pricing: Playing the full price Piano Flora Pro-Activ Extra Light Benecol Flora Pro-Activ Olive Bene col Butte ry Premium Flora Pro-Activ Light Ow n Label Diet Health Lurpak Spreadable Anchor Spreadable Bertolli Standard Clover Standard Ow
Slide 26: Customer Insight and Innovation Center Roll Out
Customer Insight and Innovation Center Roll Out MCO UK/Ire Go-Live Jan 2010 Winning in the Market Place Strategic Priorities • Winning with Brands and Innovation • Winning in the Market Place • Winning through Continuous Improvement • Winning with People 26
Slide 27: Virtuous Circle of Volume Growth
Virtuous Circle of Volume Growth Re-invest in compelling Volume Amplified mixes Constantly growth by savings gives cost improve and value leverage consumer improvement value equation Portfolio choices Innovation prioritise high creates new margin added value attractive business business Winning thro
Slide 28: Winning with People
Strategic Priorities • Winning with Brands and Innovation • Winning in the Market Place • Winning through Continuous Improvement • Winning with People Driving Towards a Performance Culture • Performance against objectives clearly visible • Management assessments now more differentiated • Reward for
Slide 29: Summary
Agenda • Unilever Overview • Financial Performance • Strategic Priorities • Outlook Summary • Environment in 2010 will be no less tough than 2009 • Still plenty more to do to raise the bar on • Brand equities • Product quality • Simplification • The foundations have been laid in terms of • Volume an
Slide 30: Questions
Priorities for 2010 • Continue to drive volume growth • Steady and sustainable improvement in full year underlying operating margin • Strong cash flow Questions 30