Unilever Plc · LSE:ULVR
Unilever — Non-Deal Roadshow (2001)
23 slides from Unilever's roadshow presentation, 2001
Slide 1: Progress along the Path to Growth post Q2 2001
Progress along the Path to Growth post Q2 2001 Unilever Roadshow Presentation Agenda •Progress along the Path to Growth •Recalibration of leading brands U
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT: This presentation may contain forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act 1995). Any forward-looking statements are based on current expectations with respect to important risk factors. It is important to note that the a
Slide 3: In February 2000, Unilever announced its 'Path to Growth' strategy
In February 2000, Unilever announced its ‘Path to Growth’ strategy Accelerate rate of top line growth to 5 - 6% pa by 2004 Increase operating margin to in excess of 16%* by 2004 EPS beia low double digit growth 2001 - 04 Saving €Euro 1.5bn pa by 2004 plus € €Euro 1.6bn procurement savings Acquisitio
Slide 4: Key Drivers of Value Creation
Key Drivers of Value Creation “See through the numbers” • Growth of the leading brands • The exit from the tail in a value creating way • Deliver EPS growth in a quality way • Increased gross margin partly re-invested in A&P • Restructuring is proceeding according to plan • Under-performing business
Slide 5: Path to Growth: Progress of Leading Brands
Path to Growth Progress of 400 Leading Brands Underlying Sales Growth % • 79% in Q2 of business up from 75% in 1999 8.0 • 95% of A&P behind leading brands • MAT in Q2 4.8% up from 4.3% 7.0 6.0 Foods HPC 5.0 Total 4.0 3.0 2.0 1.0 0.0 Qtr 1 '00 Qtr 2 '00 Qtr 3 '00 Qtr 4 '00 Qtr 1 '01 Qtr 2 '01
Slide 6: Key Drivers for Value Growth
Key Drivers for Value Growth • Focus of innovation and resources behind leading brands • Bigger hit innovations, less fragmentation of resource • Developing and emerging markets • Address under-performing businesses • HPC started earlier - further ahead than Foods on brand focus and showing sustaine
Slide 7: Drive Growth through our Core Brands in Foods
Drive Growth through our Core Brands in Foods • Plant the taste banner across the World • Paint the world yellow with • Dress the globe with • Make the beat • Keep your heart ticking with • Share family moments everyday with • Enjoy Italian passion for life with • Bring fresh solutions to meal time
Slide 8: 'Big Hit' Innovations - 2001
‘Big Hit’ Innovations - 2001 • Half of our ‘Big Hit’ innovations are now in the market • Some key innovations in the first half of 2001 were: Sedal in Mexico - first half Euro 20m sales Liquid Capsules launched Dove Range Extensions in added in first half UK and France in Q2 - Cornetto Soft Ice - 12
Slide 9: Earnings delivered in a quality way
Earnings delivered in a quality way Year 2000 • Gross margins up partly invested in increased support behind leading brands • EPS* 10.5% vs 8-10% 1999 target 2000 delivered by higher operating margins A&P 13.2% 13.8% Operating Profit 11.2% 12.0% • Strong cash flow Euro 6.7bn up Euro 1.1bn First half
Slide 10: Progress with Restructuring and Savings
Progress with Restructuring and Savings Total Authorised Implemented Restructuring Proposals in 2000 & Q1/Q2 2001 Restructuring Charge -*PtG Euro 5.0 bn Euro 3.6 bn Euro 2.2 bn -Bestfoods 1.2 bn 0.7 bn 0.5 bn -Total 6.2bn 4.3bn 2.7bn Factory Closures - *PtG 100 49 32 -Bestfoods 30 5 1 -Total 130 54
Slide 11: Bestfoods Progress
Bestfoods Progress • Priority has been integration • Integration proceeding very well and synergy will be delivered, on time in full - 2001 Euro 395m • Key projects 2001 • Merger of Corporate offices • Procurement programme • R&D relocation & restructuring • Sales force mergers • Combined media buyi
Slide 12: Recalibration of Leading Brands to include Bestfoods
Recalibration of Leading Brands to include Bestfoods
Slide 13: Selection of Brand Portfolio
Selection of Brand Portfolio All brands must: • Are growing and growth is sustainable • Have scale and margin structure to sustain competitive levels of investment • Are or have the potential to be no. 1 or 2
Slide 14: Management of Portfolio
Management of Portfolio • Organisation in place • Reward systems in place • Capabilities in place • consumer understanding • brand key • communication channel planning • brand health database • innovation process management
Slide 15: Recalibration of Leading Brands
Recalibration of Leading Brands • Includes migrate brands • Includes recent acquisitions • Amora Maille • Slim.Fast • Ben & Jerrys • Bestfoods
Slide 16: Q2 2001 Leading Brands - A More Powerful Core to Our Business
Q2 2001 Leading Brands - A More Powerful Core to Our Business Sales Impact of Growth Euro m Change rate % (bps) 400 Brands 9,104 5.1 Migrate 396 (20) Slim.Fast, Ben & Jerry, 549 100 Amora Maille Bestfoods 1,406 (90) New leading brands 11,455 5.0 % of Total Business 84
Slide 17: Brand Count
Brand Count • 970 brand names at the end of Q2 2001 • 300 of these brands to be managed for value • 380 - 400 brand names by 2004 • 200 brand positions by 2004 of which 40 are global brand positions • The balance are regional or local jewels
Slide 18: New Brand Portfolio
New Brand Portfolio 2001 Q2 % of total sales Top 50 69 50-100 10 100+ 5 TOTAL leading brands 84
Slide 19: New Brand Portfolio - Top Brands
New Brand Portfolio - Top 30 Brands • Brands > Euro 1 bn Knorr, Lipton, Omo, Dove, Surf, Looks Great , Hellmann’s, Lux • Brands > Euro 500m < Euro 1bn Slim.Fast, Iglo, Sunsilk Birds Eye, Signal, Suave Rexona, Breyers, Skip, Magnum, Ponds, Calvin Klein Ragu/Raguletto, Findus • Brands < Euro 500 m Cif
Slide 20: Future Shape of Business
Future Shape of Business % of sales full year basis 1999 2001 2004 Leading Brands 75 85 91 DiverseyLever 4 4 4 Tail Brands and non 21 11 5 Corporate Business Total 100 100 100
Slide 21: Summary of Key Messages
Summary of Key Messages • Execution of Path to Growth and Bestfoods integration on plan • Brand portfolio more concentrated, and clear plans for it to become over 90% of the business by 2004
Slide 22: Safe Harbour Statement
SAFE HARBOUR STATEMENT: This presentation may contain forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act 1995). Any forward-looking statements are based on current expectations with respect to important risk factors. It is important to note that the a
Slide 23: Progress along the Path to Growth post Q2 2001
Progress along the Path to Growth post Q2 2001 Unilever Roadshow Presentation Agenda •Progress along the Path to Growth •Recalibration of leading brands U