Unilever Plc · LSE:ULVR
Unilever — H1 2019 Earnings Presentation
24 slides from Unilever's earnings presentation, Jul 25, 2019
Slide 1: Unilever H1 2019 Results
Unilever H1 2019 Results Alan Jope & Graeme Pitkethly 25th July 2019
Slide 2: Safe Harbour Statement
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’, ‘vi
Slide 3: Alan Jope
‘uQuiD Easy Wash == LIQUID!
Slide 4: H1 2019: Sustained progress in growth and margin
H1 2019: Sustained progress in growth and margin Growth Margin Earnings Cash Underlying Sales Growth Underlying Operating Margin Underlying EPS Free Cash Flow +3.3% +50 bps +5.0% €1.5bn +1.2% +30 bps +3.0% €(0.5)bn Underlying Volume Growth Gross Margin Constant Underlying EPS vs 2018
Slide 5: Sustained growth momentum
Sustained growth momentum Asia/AMET/ Brazil RUB truckers Argentina Difficult weather comparator Underlying Sales Growth exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
Slide 6: Improving momentum in emerging markets
Improving momentum in emerging markets India 5.6% exc. truckers India Brazil China Indonesia Underlying Sales Growth exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
Slide 7: Uncertain markets
Uncertain markets Market affected by weather Diverging economic outlooks Benign currency Europe value market growth (%) GDP 5% EMs IDR BRL 4% 100 IND EUR USA 2.0% 3% (0.5%) 2% TRY 1% 70 MAT L12 wks 0% ‘19 ‘20 ‘19 ‘20 July ‘18 July ‘19 Source: Nielsen Source: Oxford Economics Source: NASDAQ, rebased
Slide 8: Beauty & Personal Care
Beauty & Personal Care H1 2019 USG 3.3% Naturals UPG 1.6% UVG 1.7% Emerging markets UOM +100bps
Slide 9: Home Care
Home Care H1 2019 USG 7.4% Enhancing the core UPG 4.5% UVG 2.8% Less plastic UOM +120bps
Slide 10: Foods & Refreshment
Foods & Refreshment H1 2019 USG 1.3% Sustainable packaging UPG 1.4% UVG (0.1)% Acquisitions UOM (40)bps
Slide 11: Purpose-led campaigns
Purpose-led campaigns Beauty & Personal Care Home Care Foods & Refreshment All Things Hair Refillery Indonesia Mosque Cleaning Ben & Jerry’s Justice ReMix’d
Slide 12: Data driven marketing delivering
Data driven marketing delivering • 24 Digital Hubs • 600+ DDM campaigns • 1.5bn consumer connections Axe Martin Garrix Indonesia food festival
Slide 13: Graeme Pitkethly
‘uQuiD Easy Wash == LIQUID!
Slide 14: Asia / AMET / RUB
Asia / AMET / RUB H1 Turnover €12.2m H1 USG 6.2% H1 UVG 2.9%
Slide 15: Latin America
Latin America H1 Turnover €3.5bn 1.6% exc. truckers H1 USG 4.9% H1 UVG 0.5% Underlying Sales Growth exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
Slide 16: Argentina hyperinflation
Argentina hyperinflation Price impact 35bps 70bps 140bps 80bps 80bps Total UL USG Argentina 10.0% (10.3)% (21.6)% (11.0)% (7.4)% 75.5% 78.1% 64.0% UPG 34.2% 17.4% UVG (10.3)% (11.0)% (6.3)% (21.6)% (7.4%) Q2’18 Q3’18 Q4’18 Q1’19 Q2’19
Slide 17: North America
North America H1 Turnover €4.6bn H1 USG 0.1% H1 UVG (0.5)%
Slide 18: Europe
Europe H1 Turnover €5.8bn H1 USG (0.6)% H1 UVG (0.2)%
Slide 19: H1 2019: Turnover
H1 2019: Turnover USG 3.3% 2.1% 1.2% (5.5)% 0.5% 1.1% €26.4bn €26.1bn
Slide 20: H1 2019: Underlying operating margin
H1 2019: Underlying operating margin + 30 bps (10) bps + 30 bps +50bps 18.8% 19.3%
Slide 21: H1 2019: Underlying earnings per share
H1 2019: Underlying earnings per share 2.0% (0.4)% (1.0)% 0.3% 5.2% (5.4)% 4.3% (5.4%) 5.2% Underlying EPS +5.0% €1.21 €1.27
Slide 22: Cash flow & balance sheet
Cash flow & balance sheet Free cash flow Net debt Pension deficit Free cash flow Net debt/EBITDA €1.5bn 2.1x €0.9bn €(0.5)bn €24.2bn €0.5bn vs 2018 Net debt FY 2018 H1 2019
Slide 23: 2019 outlook
2019 outlook ❑ Underlying Sales Growth in lower half of multi-year 3-5% range ❑ Underlying Operating Margin: continued progress to 20% ❑ Strong cash flow
Slide 24: Unilever H1 2019 Results
Unilever H1 2019 Results Alan Jope & Graeme Pitkethly 25th July 2019