Unilever PLC · LSE:ULVR
Unilever — FY2012 Earnings Presentation
30 slides from Unilever's earnings presentation, Jan 23, 2013
Slide 1: Unilever Full Year 2012 Results
Unilever Full Year 2012 Results Paul Polman – CEO Jean-Marc Huët – CFO January 23rd 2013
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 ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘believes’, ‘vision’, or
Slide 3: Paul Polman – CEO
Paul Polman – CEO January 23rd 2013
Slide 4: Unilever's Long Term Priorities
UNILEVER’S LONG TERM PRIORITIES 1 Volume growth ahead of our markets 2 Steady and sustainable improvement in core operating margin 3 Strong cash flow Whilst consistently investing in the long term health of the business 4
Slide 5: Another Year of Volatility and Uncertainty
ANOTHER YEAR OF VOLATILITY AND UNCERTAINTY High commodity cost inflation Euro zone crisis Slowdown in emerging markets Brent Crude US$ per barrel GDP growth 9.8% China 8.9% 7.4% 6.7% India $100 5.3% Brazil 0.9% 2010 Q2 ‘10 2011 Q22012 ‘12 May 2012 December 2012 5
Slide 6: Another Step Towards Our €80bn Vision
ANOTHER STEP TOWARDS OUR €80BN VISION An inspiring vision set in 2009 €10bn Turnover increased since 2009 €51 bn €80bn €50bn €46 bn Today €44 bn €40 bn €40bn environmental impact 2009 2010 2011 2012 6
Slide 7: Consistent Growth Ahead of Our Markets
CONSISTENT GROWTH AHEAD OF OUR MARKETS Strong, balanced growth In EVERY cluster In EVERY category Unilever FY 2012 Underlying sales growth Underlying sales growth 10.6% 6.9% 7.9% 10.0% 10.3% 6.3% 3.4% 3.3% 1.8% 0.8% USG Volume Price Home Asia/AMET Americas Europe Personal Foods Refresh- RUB care men
Slide 8: Growth Driven by Innovation and White Space Expansion
GROWTH DRIVEN BY INNOVATION AND WHITE SPACE EXPANSION 14 brands in the €bn club Bigger, better, faster innovations White space expansion: TRESemmé Brazil ~90 9 2009 2012 Innovations into 10+ countries Accounting for >50% of our growth Average value per project up 75% +€150m Δ Turnover year 1 8
Slide 9: M&A: Reshaping Our Portfolio in Line with Strategy
M&A: RESHAPING OUR PORTFOLIO IN LINE WITH STRATEGY Concern Kalina: Russia Frozen Foods: North America Skippy: North America Completed H1 2012 Completed H2 2012 To be completed Q1 2013 9
Slide 10: Becoming an Execution Powerhouse
BECOMING AN EXECUTION POWERHOUSE Stepping up service level Supplier of the year e.g. U.K. Adding 1m stores in 2012 Developed Emerging markets 800bps 2008 2012 On shelf availability 10
Slide 11: A More Competitive Cost Structure
A MORE COMPETITIVE COST STRUCTURE Savings mitigating inflation Containing cost with discipline • Global buying • Value improvement • Restructuring • M&A synergies
Slide 12: A Consumer and Customer Centric Organisation
A CONSUMER AND CUSTOMER CENTRIC ORGANISATION Category driven organisation Investing in capability Personal Home Care Refreshment Foods Care North Europe NAMET North America & RUB Asia Latin South South Africa America East Asia Asia & Australa sia Linking R&D with category Building talent in PC 12
Slide 13: Jean-Marc Huët – CFO
Jean-Marc Huët – CFO January 23rd 2013
Slide 14: 2012: Core Operating Margin Up 30 bps
2012: CORE OPERATING MARGIN UP 30 BPS +20bps +20bps +10bps 0bps 0bps €470m* 13.8% 13.5% +30 bps 2011 Gross margin A&P Overheads Business 2012 restructuring * At constant exchange rate 14
Slide 15: Restructuring Costs Now Reaching 'Steady State'
RESTRUCTURING COSTS NOW REACHING ‘STEADY STATE’ bps 230 220 210 130 130 110 2007 2008 2009 2010 2011 2012 Average 180 bps p.a. previous 10 years 15
Slide 16: 2012: Gross Margin at 40%, Up 10bps
2012: GROSS MARGIN AT 40%, UP 10BPS ∆ Gross Margin bps 2012 H2 GM driven by price increases, mix, and savings 60 FY commodity cost inflation - high single digit -40 -130 -230 2013 Gross margin to be improved, driven by continued savings, pricing and “Maxing the Mix” H1'11 H2'11 H1'12 H2'12 C
Slide 17: 2012: Continuous Investment Behind Our Brands
2012: CONTINUOUS INVESTMENT BEHIND OUR BRANDS A&P now €6.5bn Digital spend up 40% €0.5bn 2011 2012 c. 2/3 of the increase is A 17
Slide 18: 2012: Continued Strong Performance in Overheads
2012: CONTINUED STRONG PERFORMANCE IN OVERHEADS Overheads reduction bps 2012 underlying overheads flat after significant reductions in 2011 -100bps -20bps This is despite significant investments in capabilities Business restructuring reduced by 20bps 2010 2011 2012 18
Slide 19: 2012: Double Digit Core EPS Increase
2012: DOUBLE DIGIT CORE EPS INCREASE €0.02 €0.03 €0.03 €0.02 €0.04 €0.16 €1.57 €1.53 €1.41 +10.7% Core EPS Operational Tax Currency Minorities Others Core EPS IAS 19 Impact Core EPS 2011 Performance 2012 2012 (restated) IAS 19 will reduce 2012 EPS by 4 cents per share 19
Slide 20: 2012: Core EPS Restated (IAS 19)
2012: CORE EPS RESTATED (IAS 19) €0.02 €0.03 €0.03 €0.02 €0.04 €0.16 €1.57 €1.53 €1.41 +10.7% Core EPS Operational Tax Currency Minorities Others Core EPS IAS 19 Impact Core EPS 2011 Performance 2012 2012 (restated) 20
Slide 21: 2012: Strong Free Cash Flow Up €1.3bn
2012: STRONG FREE CASH FLOW UP €1.3BN €bn €0.8 bn €2.1 bn €1.2 bn €0.9bn +40% €1.7 bn €0.4 bn €0.4 bn €0.1 bn €7.0 bn €4.3 bn €3.1 bn Operating Depreciation Working Capex Tax Pensions (*) Net Others 2012 Free 2011 Free Profit and capital interest cash flow cash flow amortisation reduction (*) Pensio
Slide 22: 2012: Balance Sheet
2012: BALANCE SHEET Net Debt €7.4bn Pension deficit €3.7bn Down €1.4bn Up €0.5bn Cash contribution to pensions Quarterly dividend per €0.7bn share €0.243 22
Slide 23: Paul Polman – CEO
Paul Polman – CEO January 23rd 2013
Slide 24: Unilever Becoming 'Fit to Win': Gross Margin
UNILEVER BECOMING ‘FIT TO WIN’: GROSS MARGIN 2012 ∆ Core operating margin Margin accretive innovations Continuous improvement programmes ↑ Service ↓ Cost 170bps 50 bps 0bps -50 bps Personal Foods Home Refresh- care care ment 24
Slide 25: More to Do
MORE TO DO Bigger, better innovations Product quality improvements Drive performance culture 25
Slide 26: Unilever Full Year 2012 Results
Unilever Full Year 2012 Results Paul Polman – CEO Jean-Marc Huët – CFO January 23rd 2013
Slide 27: Appendix
Appendix January 23'¢ 2013 AXE APOLLO SPACE ACADEMY © LEAVE A MAN. COME BACK A HERO
Slide 28: 2012: USG 6.9% - A Healthy Balance of Volume and Price
2012: USG 6.9% - A HEALTHY BALANCE OF VOLUME AND PRICE USG 6.9% 1.1% 2.2% 3.3% €51.3bn 3.4% €46.5bn 10.5% growth Turnover 2011 Vol/Mix Price FX M&A Turnover 2012 28
Slide 29: Q4 2012: Good Underlying Sales Growth at 7.8%
Q4 2012 : GOOD UNDERLYING SALES GROWTH AT 7.8% USG 7.8% -0.1% 0.9% 2.9% 4.8% €12.6bn €11.6bn 8.6% growth Turnover Q4'11 Vol/Mix Price FX M&A Turnover Q4'12 29
Slide 30: Unilever Full Year 2012 Results
Unilever Full Year 2012 Results Paul Polman – CEO Jean-Marc Huët – CFO January 23rd 2013