Unilever PLC · LSE:ULVR
Unilever — Q1 2010 Earnings Presentation
14 slides from Unilever's earnings presentation, Apr 29, 2010
Slide 1: Q1 2010 Results
Q1 2010 Results 29th April 2010 Paul Polman (CEO) – Jean Marc Huët (CFO) James Allison (Head of IR) Jean Marc Huët CFO 1
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 ‘expects’, ‘anticipates’, ‘intends’, ‘believes’ or the negative of these ter
Slide 3: Q1: Improved Underlying Sales Growth; In-Quarter Pricing Stable
Q1: Improved Underlying Sales Growth 4.8% 4.1% 4.1% 3.4% 1.8% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1: In-Quarter Pricing Stable Underlying Price Growth • Improving trend in the (UPG) 6.8% Americas • Western Europe unchanged -0.2% 2.1% • AACEE - intense price -3.1% -3.3% competition in key markets Q1 09 Q2
Slide 4: Q1: Continued Volume Growth Momentum
Q1: Continued Volume Growth Momentum 7.6% 5.0% 3.6% 2.0% -1.8% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1: Broad Based Volume Growth Asia / Africa / CEE Americas 11.7% 9.4% 5.5% 6.3% 3.3% 4.4% 3.8% 1.6% -0.9% -1.0% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Western Europe 4.0% 2.6% 1.0% -3.7%
Slide 5: Bigger, Better, Faster Innovations
Bigger, Better, Faster Innovations Dove Damage Expert 3D Design Dove Men + Care Active Wheel Re-launch India Bigger, Better, Faster Innovations P.F. Chang’s Knorr Dry Magnum Gold?! Home Menu Mealmakers 2 in 1 Italy, Turkey, Mexico Frozen Entrées Launch in CEE Roll out 28 Markets Launch in the US 5
Slide 6: Brands Into New Markets; Continued Investment in A&P
Brands Into New Markets CIF & Domestos - Vaseline for Men - Lifebuoy – India, Italy Asia Turkey, Argentina Q1: Continued Investment in A&P 240 bps 220bps A&P change (bps) 130 bps 50 bps -110 bps Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Full year A&P will be comfortably ahead of 2009 6
Slide 7: Q1: Asia / Africa / CEE; Americas
Q1: Asia / Africa / CEE Volume Growth • Strong volume shares 11.7% 9.4% • Good performance where we have 4.4% 3.3% -0.9% seen intense competition Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 • Gross margin continues to improve • Underlying operating margin +30bps Radiant re- Brooke Bond launch Optical Tea India Wh
Slide 8: Q1: Western Europe; Improved Gross Margins
Q1: Western Europe Volume Growth • Strong volume shares 4.0% 2.6% 1.0% • Broad based volume growth -3.7% -0.7% • Gross margin continues to improve Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 • Underlying operating margin +130 bps Dove Visible Care TIGI Curlesque 2nd Bodywash Catwalk collection Q1: Improved Gross
Slide 9: Commodity Costs Tailwind; Strong Savings Delivery
Q1: Commodity Costs Tailwind Continues 1000 800 600 400 bps 200 0 -200 -400 -600 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Commodity costs will increase in H2 and will be 2 – 3% higher full year 2010 vs. 2009 Q1: Strong Savings Delivery Savings of at least €1bn in 2010 Full year restruct
Slide 10: Underlying Operating Margin; Double Digit Increase in EPS
Q1: Underlying Operating Margin Q1 2010 Change Underlying Operating Margin 15.2 % 60bps Operating Margin 14.2 % 120bps Including restructuring, disposals and one-off items 1.0 % -60bps Gross Margin + 240 bps A&P + 220 bps Overheads - 40 bps Q1: Double Digit Increase in Earnings Per Share 0 5% 1% -1%
Slide 11: Cash Conversion Cycle; Net Debt, Pensions and Dividends
Cash Conversion Cycle has Improved by 18 Days vs. Q1’09 33 Total Days 30 25 20 15 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 2nd consecutive quarter of negative average Trading Working Capital Net Debt, Pensions and Dividends • Net debt at €7.1bn vs. €6.4bn at year end • Pension deficit levels broadly stable at
Slide 12: The Model is Working
Paul Polman CEO The Model is Working Virtuous Circle of Growth Volume Fixed costs growth leverage + greater efficiencies Innovation Cost A&P Savings R&D 12
Slide 13: Winning Where Markets Are Toughest; The Culture is Changing
Winning Where Markets Are Toughest China HPC Indonesia HPC Turkey HPC Nearest Nearest Unilever competitor Market Unilever competitor Unilever leader 80 80 -15 190 130 -130 Value shares bps change latest 12 weeks The Culture is Changing • Senior management changes continue to reflect the growth orien
Slide 14: Priorities for 2010
Priorities for 2010 • Continue to drive volume growth • Steady and sustainable improvement in full year underlying operating margin • Strong cash flow End 14