Unilever Plc · LSE:ULVR
Unilever — FY2005 Earnings Presentation
20 slides from Unilever's earnings presentation, 2006
Slide 1: 2005 Roadshow Presentation
2005 Roadshow Presentation Handout Version Safe Harbour Statement 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 upo
Slide 2: 2005 – more weight behind fewer priorities
2005 – more weight behind fewer priorities Restore competitiveness and growth Build on strengths Regain momentum Personal D&E Europe Care Vitality Increased support Accelerated savings 2005 – LFL sales growth • 3.1% USG in 2005 • Growing momentum during the year 5.5 • Positive pricing in Q4 4.5 like
Slide 3: Regional performance and 2005 operating margin
Regional performance LFL USG growth* 2004 2005 Q4 05 Europe (2.8)% (0.8)% 2% Americas 3.3% 4.1% 5% Asia/Africa 1.9% 8.7% 10% Total 0.4% 3.1% 5% 2004 as reported, pre-IFRS *Excludes estimated impact of six fewer days vs Q4 2004 2005 operating margin Change 2004 2005 (bps) Full Year Operating Margin 1
Slide 4: Key 2005 financials and 2006 priorities
Key 2005 financials EPS •EPS on continuing operations +22% ¾ Includes benefit from lower year-on-year restructuring, disposals and impairment •Total EPS +37% ¾ Includes impact of UCI disposal Tax rate 26% €500m share buyback +5% increase in dividend Long term metrics Ungeared Free Cash Flo
Slide 5: Unilever's financial model
Unilever’s financial model Overarching ambition remains top one-third TSR Long term targets: FCF €25-30bn during 2005-2010 Improved ROIC Through: Top-line growth ahead of markets which are expected to grow 2-4% pa Improved operating margin, allowing for 50-100 bps restructuring Improved ca
Slide 6: Unilever's Change Agenda
Unilever’s Change Agenda Win key markets Build capabilities Brand Win with building customers Fit to compete Our portfolio Foods Home & Personal Care Savoury & Dressings Skin Spreads Deodorants World Number 1 Laundry - #1 in D&E Weight Management World Number 2 Daily Hair Care - #1 in D&E Local stre
Slide 7: Winning in key markets / Brand building
Winning in key markets Win key markets Build a winning portfolio with more strong leadership positions High growth spaces Leading market positions Sharper choices and resource allocation Structure and discipline to execute People and reward aligned Building capabilities A focus for 2006 - crafting a
Slide 8: Building capabilities: Win with customers, Fit to compete
Building capabilities Increasing the value that we can both gain by doing business together Win with customers Winning at the point of purchase Fit to compete Complete One Unilever implementation: A single management team in all markets Fit to Simplified, standardised business processes Majority of
Slide 9: Scale, agility, one face to customers
Scale, agility, one face to customers Customer Management in the USA - our unique store reach The operating executive structure CEO Patrick Cescau President President Finance Europe Foods Rudy Markham Kees van der Graaf Vindi Banga President President Human Resources Americas HPC Sandy Ogg John Rice
Slide 10: Organisation – categories & regions
Organisation – categories & regions Clear, distinct and complementary roles Categories Regions Responsible for: Responsible for: Brand development Managing the business Innovation Deploying brands and innovations effectively Brand and category strategies Winning with customers Accountable for: Accou
Slide 11: Regaining momentum in Europe
Regaining momentum in Europe For consumers - value, choice and innovation – pricing in Frozen Food in UK and Home Care in the Netherlands – value ice cream in Germany – Heart Health blood pressure and cholesterol-reducing innovations, Sunsilk Colour Enhancing For customers - improved value from doin
Slide 12: Driving for Growth - Personal Care
Driving for Growth - Personal Care In 2005 • Growth over 6% • Broad-based share gain • Strong profitability • Global, regional and local brands all growing strongly Maximising the deodorant portfolio Unlimited Global Launch For Men - Stunt City Ultimate Clear award-winning advertising Lynx Advertisi
Slide 13: Optimising brand positions in hair; building on strength in skin
Optimising brand positions in hair Sunsilk - Truly understands your Dove to hair Moisturise and Protect Building on strength in skin - Dove and Ponds Dove Cool Moisture Ponds Rejuvenesse With pure cucumber extract and soothing Premium anti-aging face care green tea - for skin that feels smooth, with
Slide 14: Driving for Growth - D&E Markets
Driving for Growth - D&E Markets In 2005 • Delivered c. 9% growth • Major contribution to Unilever growth • Broad-based progress across Foods and HPC • Broad-based across countries Unilever in D&E - a sustainable growth story ¾ Organic growth c. 8% since 1990 ¾ Proportion of sales from D&E up from 2
Slide 15: Drivers of growth in D&E - availability and affordability
Drivers of growth in D&E - availability Reaching shoppers in rural areas…. …and through the traditional and modern trade in urban areas Drivers of growth in D&E - affordability Blue Band Rin/Surf margarine sachets low price fabric cleaning Rama sachets affordable dairy cream alternatives Knorr Cubit
Slide 16: Driving for Growth - Vitality in Foods
Drivers of growth in D&E - consumer intimacy Omo Baby Lipton Milk Tea hypoallergenic for babies’ sensitive Knorr Salad Seasoning (China) skin (Turkey) Arabia Sunsilk - tailored solutions to local hair dramas For Hair That Anti-Dandruff Clean & Fresh Anti Sponge solves dandruff nourishes and deep Bre
Slide 17: Ways to a healthy heart - Flora/Becel pro.activ
Ways to a healthy heart - Flora/Becel pro.activ We have expanded the heart health benefits of the brand from cholesterol- reducing in our core spreads category…. …to milk and yoghurt…. …and daily yoghurt drinks… ...and created a €300m-plus business in 3 years. And now we are first to market with one
Slide 18: Driving for Growth - Vitality in HPC
“Tea Can Do That” communication - Lipton Lipton’s unique combination of health benefits, with antioxidants to fight free radicals Driving for Growth - Vitality in HPC 18
Slide 19: Dove Campaign for Real Beauty; Lifebuoy hygiene in Asia
Dove Campaign for Real Beauty Making women feel more beautiful every day by widening today’s narrow stereotypical view of beauty Singapore Brazil UK Promoting hygiene in Asia - Lifebuoy The Lifebuoy hand-washing programme helps save the lives of millions of children in India and Indonesia 19
Slide 20: Partnering the World Dental Federation; Dirt is Good
Partnering the World Dental Federation - Signal Encouraging oral health around the world through practical, sustainable programmes, activated locally. The 5c toothbrush also brings affordable quality to low income consumers Freedom from cleaning - Dirt is Good The “Dirt is Good” campaign, rolled out