Unilever Plc · LSE:ULVR
Unilever — Investor Presentation (November 2002)
18 slides from Unilever's investor presentation, November 2002
Slide 1: Unilever's D&E Markets South Africa Visit
Unilever’s D&E Markets South Africa Visit Adriano Regondi SVP Finance Africa Regional Group November 2002 This presentation contains forward looking statements which reflect management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could ca
Slide 2: Sub Saharan Africa: Introduction, Reasons for Success, Vision
Sub Saharan Africa n Introduction & Economic fundamentals n Reasons for Success n Vision and Targets 3 Africa is Big! 4 2
Slide 3: Where we operate / Economic Data
48 Countries 13 on-site operations Where we operate 42,100 employees (Sub-Saharan Africa) 620 million people $875 billion GDP @ PPP MALI NIGER ERITREA CHAD SENEGAL THE GAMBIA DJIBOUTI BURKINA GUINEA-BISSAU GUINEA TOGO NIGERIA ETHIOPIA COTE SIERRA-LEONE D'IVOIRE CENTRAL AFRICAN REPUBLIC LIBERIA West
Slide 4: Share of Wallet 2000 and Selected Countries
Share of Wallet 2000 ^ÑêáÅ~ MKPV 0.28 i~íáå=^ãÉêáÅ~ MKOQ 0.22 bìêçéÉ MKMV 0.24 `^=`Ü MKNT 0.09 tçêäÇ MKNM 0.13 k=^ãÉêáÅ~ MKMT 0.09 em` b^m MKMU 0.03 cççÇë In S.S.Africa, P&G 0.01; Colgate 0.1 7 Share of Wallet - Selected Countries WORLD 0.2% UK 0.4% India 0.6% Brazil 0.6% Cote d’Ivoire 2.9% Ghana 2.
Slide 5: Sustained Profitable Growth... no matter what the conditions
Sustained Profitable Growth… no matter what the conditions! Sub-Saharan 1997 2001 Growth* Africa Sales € bn 1.4 1.6 8% Trading 8.8% 9.9% Margin * Growth = average underlying sales growth over the period 9 Africa Region Sustained delivery 1997 - 2001 1997 1998 1999 2000 2001 Top Line Bottom Line Cash
Slide 6: Well Established Business
Sub Saharan Africa n Introduction & Economic fundamentals n Reasons for Success n Vision and Targets 11 Well Established Business n History of over 100 years on-shore presence n Started with export from UK n 1911 First soap-making factory - Durban n 1920 Major trading operation - West Africa (became
Slide 7: Embedded in Africa / Portfolio then
Embedded in Africa § Well respected; strong reputation § Sustainable agriculture initiatives § AIDS/HIV: program of education, support and treatment, tailored for each country § Environmentally pro-active e.g Living Lakes § Education – Nelson Mandela scholarships, Ghana Foundation etc. 13 Portfolio
Slide 8: Portfolio now / Main Portfolio 2001
Portfolio now n Consumer branded business n Tea and Palm Plantations (integrated with consumer business) 15 Main Portfolio 2001 7% 6% 33% 38% 34% 30% 21% 31% Turnover Trading Profit Home Care Personal Care Foods Other Ops Consumer - well balanced portfolio - Other Operations will be <5% by 2004 - Pe
Slide 9: Geographical and Categories Portfolio 2001
Geographical Portfolio 2001 3% 7% 5% 5% 9% 29% 24% 46% 30% 20% 22% Turnover Trading Profit SA HPC SA West East South East Plantations Foods Africa Africa Africa - South Africa, especially HPC, is the powerhouse - West Africa fastest growing 17 Categories Portfolio 2001 Turnover Trading Profit 11% 10
Slide 10: Powerful Brands / Market Leader
Powerful Brands HPC Brands €’m Foods Brands €’m - OMO 200 - Rama/BlueBand 100 - Surf 160 - Knorr 80 - Sunlight 80 - Dinor (local) 70 - Close up 60 - Lipton 30 - Lux 50 Top 10 Brands >60% of total branded turnover Leading Brands >80% of total branded turnover 2001 at 2001 average xRate 19 Market Lead
Slide 11: Managing Change / Innovation
Managing Change §High level of political and economic volatility §e.g. Cote d’Ivoire §e.g. Zimbabwe §Expertise in managing volatility §Strong reputation helps 21 Innovation §Black Hair §Popular Foods §Low Unit Price and Small Unit Packs §Made Black Tea All developed in Africa but leveraging Unilever
Slide 12: Extensive Distribution Systems / Reasons for Success
Extensive Distribution systems §Key Distributors (now in 70% of on-shore* sites) §Regional Customers §Preferred Status with Suppliers *Countries where Unilever has a physical presence with local legal entities set up 23 Reasons for Success n 100 years of on-shore presence n very well established bus
Slide 13: Reasons for Success: Combination of Them All
Reasons for Success n Some of these can be matched by our competitors n Our unique strength lies in the Combination of them all Global Scale, Local Touch! 25 Sub Saharan Africa n Introduction & Economic fundamentals n Reasons for Success n Vision and Targets 26 13
Slide 14: Vision, Target and Must Wins for Africa
Our Vision “We will touch the lives of all Africans by better anticipating and fulfilling their cleaning, caring and nutritional needs, everyday, everywhere” Our Target: To double the Sales in Africa in 5 years from €1.8 bn to €3.6 bn and to deliver above Unilever average value creation. 27 Must Win
Slide 15: Everywhere; Everyone, Everyday for Life
Everywhere n Objective: Ensure Unilever Brands are available everywhere in Africa. n Why: To accelerate growth n How: Entering new territories e.g. Senegal, Cameroon Extending Key Distributors network in all countries; rolling out to remaining 3 countries Becoming the preferred supplier for Regional
Slide 16: Priority Pillars for Growth: Laundry and Black Hair
Priority Pillars for Growth (1) Laundry n Objective: Create outstanding value from laundry, n Why? - Laundry is big in Africa - 55% of HPC profit - Step up in profitability to build Black Hair and Savoury pillars n How? - Expand into White Space - Grow the market in South Africa - Expand market shar
Slide 17: Priority Pillars: Savoury and Winning West Africa
Priority Pillars for Growth (3) Savoury n Objective: Double the size of the current savoury category. n Why? - Savoury fastest growing category in Foods n How? - Two strong brands Royco and Knorr - Lots of new innovations to up-grade consumers from simple herbs & spices to bouillon cubes to mixes to
Slide 18: Leadership, culture and sustainable business
n Leadership, culture and communication n African leadership, African mindset n Simple organisation with clear roles and responsibilities n Best in Region Supply Chain n Highest standards of corporate citizenship n A sustainable business 35 Unilever’s D&E Markets South Africa Visit Adriano Regondi S