Unilever PLC · LSE:ULVR
Unilever — Investor Day (2007)
16 slides from Unilever's investor day presentation, 2007
Slide 1: Unilever's growth strategy
Unilever’s growth strategy Patrick Cescau Richard Rivers Group Chief Executive Head of Strategy Safe harbour statement This presentation may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of
Slide 2: Path to Growth
Path to Growth • Achieved a lot - brand focus - global buying - operating margins - capital efficiency • But failed to transform growth performance A new business model clear aligned growth strategy organisation disciplined execution 2
Slide 3: Market Weighted Growth; Exposure to D&E
Market Weighted Growth peers relative to Unilever +3.2% stronger +1.3% market +1.0% growth +0.8% Unilever = -0.2% weaker market -0.3% growth -0.4% -1.4% -2.4% Source: Euromonitor, Unilever estimates Exposure to D&E Unilever and peers Unilever HPC 57% 42% Unilever Total Business 41% 32% 29% Unilever
Slide 4: Exposure to Europe; Global leadership, local strength
Exposure to Europe Unilever and peers 73% 67% 62% 52% 51% Unilever Foods 49% Unilever Total Business 38% 39% 36% 34% Unilever HPC 25% 24% 20% Source: Company reports, Unilever estimates Global leadership, local strength high global share low low high local share 4
Slide 5: Deodorants: Global leadership, local strength
Deodorants % sales Unilever Close Competitors* Others 100% 75% 50% 25% 0% UK Mexico Brazil USA France Germany Italy Russia Poland Netherlands Belgium Spain Canada S Africa Columbia Ukraine Chile Australia Argentina Source: Euromonitor, Unilever estimates * within 5 market share points Global leaders
Slide 6: Spreads: Global leadership, local strength
Spreads % sales Unilever 100% 75% 50% 25% 0% USA Germany S UK FranceTurkey Brazil Russia Indonesia Africa Spain SwedenCzech Finland Columbia Poland Canada Portugal Belgium Greece Mexico Hungary Netherlands Source: Euromonitor, Unilever estimates Global leadership, local strength high global share lo
Slide 7: Unilever vs competition; Growth share matrix
Unilever vs competition growth 2001-04 market share exposure to D&E exposure to Europe growth potential clear prioritisation Growth share matrix attractiveness big markets high key invest battlegrounds to grow high growth high margin demographics generate defend and trends low cash grow profitably V
Slide 8: Growth priorities
Growth priorities Deodorants, Skin, Hair Growth priorities Deodorants, Skin, Hair Savoury, Ice cream, Tea 8
Slide 9: Growth priorities
Growth priorities Deodorants, Skin, Hair Savoury, Ice cream, Tea Vitality within Foods Growth priorities Deodorants, Skin, Hair Savoury, Ice cream, Tea Vitality within Foods D&E: Foods, Home care 9
Slide 10: Growth priorities
Growth priorities Deodorants, Skin, Hair Savoury, Ice cream, Tea Vitality within Foods D&E: Foods, Home care Russia and China Growth priorities • Personal Care • Vitality • D&E 10
Slide 11: High and mid growth categories
High growth categories long term market growth trend 4.1% our average growth 01-06 5.5% growth vs market: 9 in line or ahead 8 behind 2000 2001 2002 2003 2004 2005 2006 Deodorants 9 9 9 9 9 9 9 Hair Care 9 9 9 9 8 9 9 Mass Skin 9 9 9 9 8 9 9 Savoury 9 9 9 8 8 9 9 Dressings 8 9 8 9 8 8 Source: Euromo
Slide 12: Translating growth priorities into investment plans
Low performance categories long term market growth trend 3.8% our average growth 01-06 0.2% growth vs market: 9 in line or ahead 8 behind 2000 2001 2002 2003 2004 2005 2006 Weight Management 9 9 8 8 8 9 Oral Care 8 8 8 8 8 9 9 Frozen Foods 8 9 8 8 8 8 disposed Household Care 8 9 8 8 8 9 9 Prestige F
Slide 13: Investment priorities: Active portfolio management
Investment priorities Underlying sales growth 2006 Invest to Win Invest to Compete Funds for Growth Market Share ÏÏ ÏÐ ÐÐ 2006 vs 2005 A&P 2006 vs 2005 ÏÏÏ Ð Ð Active portfolio management driven down through the business UEx Corporate Portfolio Aligned Strategies Investment Priorities Performance Ma
Slide 14: Improving portfolio shape
Improving portfolio shape D&E Personal Care > 45% > 30% 26% 28% 36% 41% 2004 2006 2010 2004 2006 2010 Margins enhancement through better portfolio mix • growth in high margin categories • operational leverage from volume 14
Slide 15: Role of M&A
Role of M&A top priority transform market share towards leadership key invest high battlegrounds to grow growth augment share, attractiveness extend strongholds, exploit hotspots lower growth generate defend and cash grow profitably transform or dispose weak / contested clear leadership competitiven
Slide 16: Unilever's growth strategy
Unilever’s growth strategy Patrick Cescau Richard Rivers Group Chief Executive Head of Strategy 16