Unilever PLC · LSE:ULVR
Unilever — H1 2008 Earnings Presentation
15 slides from Unilever's earnings presentation, Jul 31, 2008
Slide 1: Q2 and First Half 2008 Results
Unilever Q2 and First Half 2008 Results 31 July 2008 Patrick Cescau Group Chief Executive Jim Lawrence Chief Financial Officer Safe Harbour Statement This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Secur
Slide 2: Business Priorities and Key Messages
Business Priorities 1. Maintain competitiveness 2. Drive for sustainable margin improvement 3. Invest selectively to gain market share Key Messages • Good performance in challenging environment • Continued strong growth in D&E countries • Determined pricing action to recover cost increases • Transfo
Slide 3: Strong Organic Growth / Europe
Strong Organic Growth Q2 H1 Turnover €10.4bn €19.9bn Change (1.4)% (0.5)% Acquisitions and disposals (0.7)% (0.9)% Currency effect (7.1)% (6.2)% Underlying sales growth 6.8% 7.0% Volume (0.5)% 0.8% Price 7.4% 6.1% Europe Q2 H1 Underlying Sales Growth +2.3% +2.3% Operating margin 12.9% 20.1% Underlyi
Slide 4: Americas and Asia Africa
Americas Q2 H1 Underlying Sales Growth +4.9% +5.7% Operating margin 13.4% 13.7% Underlying change in margin* (90)bps (60)bps • Top-line growth held back by US system change end Q2 07 • US growing +4% in H108 and Q208 all from price - ex-system change • All major countries performing strongly in Lati
Slide 5: Savoury, Dressings and Spreads; Ice Cream and Beverages
Savoury, Dressings and Spreads H1 USG +8.7% Ice Cream and Beverages H1 USG +5.1%
Slide 6: Home Care and Laundry - D&E
Home Care H1 USG +8.0% Laundry - D&E • Our laundry brands cater to various income levels HIGH +27% +10% +21% Income Levels flat +26% +13% LOW INDIA BRAZIL
Slide 7: Personal Care and Q2 Operating Margin Development
Personal Care H1 USG +5.7% Q2 Operating Margin Development Q2 2007 Q2 2008 Change Operating margin 13.7% 13.2% (0.5)% Including RDIs* (1.0)% (2.0)% (1.0)% Underlying change 0.5% Key drivers: A&P 0.7% Savings 2.5% Cost/price/mix (2.7)% * Restructuring, disposals and one-off items
Slide 8: Q2 Drivers of Operating Profit; H1 Operating Margin Development
Q2 Drivers of Operating Profit* Commodity Price costs €bn Savings Other Programme A&P Volume/ Costs Mix Underlying Profit Increase *Excluding RDIs, constant currency, before acq/disp H1 Operating Margin Development H1 2007 H1 2008 Change Operating margin 13.7% 16.0% 2.3% Including RDIs* (1.0)% 0.9%
Slide 9: H1 Drivers of Operating Profit; Commodity Cost Impact on Margin
H1 Drivers of Operating Profit* Commodity Price costs Savings €bn Other Programme A&P Costs Volume/ Mix Underlying Profit Increase *Excluding RDIs, constant currency, before acq/disp Commodity Cost Impact on Margin 600 500 400 bps 300 550 200 420 330 260 100 160 120 0 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q
Slide 10: Commodity Costs - Mineral Oils and Edible Oils
Commodity Costs – Mineral Oils Commodity Costs – Edible Oils Rapeseed oil Sunflower oil Palm oil Source: MINTEC - spot price €s
Slide 11: Commodity Cost Outlook; H1 Drivers of EPS Growth
Commodity Cost Outlook 600 500 400 bps 300 550 200 420 330 260 100 160 120 0 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 2008 full year outlook around 550bps H1 Drivers of EPS Growth 2007 2008 Change EPS (€) 0.75 0.79 6% Includes RDIs*, after tax 0.01 0.07 Key drivers (%): Underlying sales growth 7 Underlyi
Slide 12: H1 Cash Flow and Balance Sheet
H1 Cash Flow and Balance Sheet • ‘Strong single A’ balance sheet • €1.1bn share buy-back completed in H1 • €1.2bn final dividend paid • Net pension liability reduced to €1.0bn H1 Cash Flow and Balance Sheet • Net debt increased to €10.2bn • €0.9bn cash flow from operating activities • Substantial in
Slide 13: Accelerating the Transformation; Progress to Date
Accelerating the Transformation • Raising the bar on innovation • Shaping the portfolio including ≥ €2bn disposals • €1.5bn cost reduction to enhance margin Progress to Date • Building innovation capabilities • Shaping the portfolio: • €1.5bn disposals announced including NA laundry • Acquisition of
Slide 14: Use of Cash and Outlook
Use of Cash • Capital expenditure and restructuring • Value adding bolt-on acquisitions • Dividends and share buy-backs Outlook • Strategy is working • Clear priorities • Firmly on track to deliver 2008 outlook: • Underlying sales growth to exceed 3-5% • Improvement in underlying operating margin
Slide 15: Unilever Q2 and First Half 2008 Results
Unilever Q2 and First Half 2008 Results 31 July 2008