Unilever Plc · LSE:ULVR
Unilever — Bernstein Strategic Decisions Conference 2011
26 slides from Unilever's conference presentation, Sep 20, 2011
Slide 1: Bernstein Strategic Decisions Conference - London
Bernstein Strategic Decisions Conference - London Jean-Marc Huët – CFO James Allison – Head of IR and M&A September 20th 2011
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: H1 2011 Results
1 H1 2011 Results
Slide 4: Good performance against our priorities
Good performance against our priorities Strong sales growth Robust volume growth Gaining value share USG H1’11 H1’11 5.7% 4.1% 2.0% 2.2% 3.5% 40% 60% winning / holding 2009 2010 H1 '11 Market Volume growth
Slide 5: Unilever: Fit to Compete
2 Unilever: Fit to Compete
Slide 6: A new vision
A new vision Doubling the size of the business Sharper strategic choices Win Win in Emerging Win Globally Markets Differently €80bn €44bn €40bn PC / Ice Cream / Tea Home Care Spreads / Dressings Cooking Products Oral Care Soups environmental impact Focus on customer and consumer
Slide 7: Alignment around a clear focussed strategy
Alignment around a clear focussed strategy Aligned from top to bottom Volume growth and market share focus Clear strategic framework: The Compass Profitable Cost Leverage Volume + Growth Efficiencies Cost Innovation Savings A&P / R&D
Slide 8: A more agile organisation
A more agile organisation Personal Care 8 mega clusters Foods Home Care Refreshment Category-cluster combinations from >200 to 32
Slide 9: Innovation underpins our growth
Innovation underpins our growth Bigger innovations Faster roll outs Portfolio delivering more >60 40 9 2009 2010 2011e 10+ countries roll outs 100 countries in 12 months Innovation rate > 30%
Slide 10: We continue to roll-out our brands into more markets
We continue to roll-out our brands into more markets Café Zero – Europe White spaces filled Axe - China ~130 ~100 ~50 Dove Hair - China Magnum – United States 2009 2010 Q2 ‘11
Slide 11: Improved M&A capabilities: from source to use of cash
Improved M&A capabilities : from source to use of cash since Bestfoods (2001) sources of cash uses of cash 200 disposals €bn 13 20 21 49 20 9 acquisitions 11 Interest / Cash Disposals Deleveraging Distribution Capex Other pensions M&A: accretive to turnover in 2011, first time in 10 years
Slide 12: 7th consecutive quarter of negative trading working capital
7th consecutive quarter of negative trading working capital Trading Working Capital % Turnover 5% Closing TWC % T/over 0% -5% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 H1 11
Slide 13: Unilever: The Emerging Markets company!
3 Unilever: The Emerging Markets company !
Slide 14: Emerging markets: consistent growth over 20 years
Emerging markets: consistent growth over 20 years ~9% p.a. 54% USG 30% 1990 1995 2000 2005 2010
Slide 15: Large populations, low per capita consumption levels
Large populations, low per capita consumption levels Population Example: bath and shower – US$ spend per capita China 1.4bn 20 Developed markets 17 India 1.3bn Emerging markets 13 14 Indonesia 230m Brazil 195m Pakistan 170m 5 5 3 Bangladesh 160m 1 2 2 1 Philippines 90m Vietnam Indonesia China India
Slide 16: Unparalleled leadership across emerging markets
Unparalleled leadership across emerging markets Fabric Cleaning 1 1 2 1 2 1 1 1 2 Hair Care 1 1 2 1 1 1 1 1 1 1 Skin Cleansing 1 2 1 2 1 1 1 1 1 1 Face Care 1 1 1 1 1 1 1 Deos 1 1 1 1 1 2 1 2 1 1 Tea 2 1 1 1 Savoury 1 2 2 2 1 1 2 1 Ice Cream 1 1 1 1 1 Brazil Russia India China Indonesia Thailand Phi
Slide 17: Unilever: a mindset of continuous improvement
4 Unilever: a mindset of continuous improvement
Slide 18: Driving the virtuous circle of growth
Driving the virtuous circle of growth Cost Profitable Leverage Volume + Growth Efficiencies Cost Innovation Savings A&P / R&D
Slide 19: A mindset of continuous improvement
A mindset of continuous improvement Global Supply Chain Marketing Investment Indirects World class service End-to-end Consumer competitive SC creates perceived cost value quality through Flexible, Flawless agile & lean execution structures 2009 GM % A&P % Indirects % 2010 Network People Capability
Slide 20: Strong track record in savings delivery: keeping momentum
Strong track record in savings delivery: keeping momentum Total Savings €bn Globalise procurement further Drive value improvement programmes 1.4 1.4 >1.3 1.0 1.1 Further rationalise logistics network 2007 2008 2009 2010 2011 e Continued streamline of manufacturing
Slide 21: Media efficiencies: releasing consumer facing funds
Media efficiencies: releasing consumer facing funds Advertising production and agency fees Leveraging global scale Better service, lower cost Improving quality of advertising Showing good advertising for longer 2008 2010 Today Benchmark
Slide 22: Indirects: driving a continuous improvement mindset
Indirects: driving a continuous improvement mindset Indirects as % turnover Drivers: 50 bps 1. New organisation - Removing layers in structure p.a. 2. Enterprise support - Better service, lower cost 3. IT/IM strategy - Aligned behind growth 2006 2010 Today Best in 4. Support functions - Further stre
Slide 23: Example: continuous improvement in Finance
Example: continuous improvement in Finance Headcount reduction One IT platform Speed -20% Accelerated close (1 week reduction from 2012) Real-time information (Clusters and Categories) 2008 2009 2010 H1’11 Harmonising internal and external measures
Slide 24: More still to do!
5 More still to do !
Slide 25: Opportunities to raise the bar further
Opportunities to raise the bar further Sharper choices New organisation USLP Personal Care Home Refresh Care ment Foods Always more to do in driving rigour and discipline through the business
Slide 26: Questions
Questions
Unilever — Bernstein Strategic Decisions Conference 2011 on 6ix