Unilever Plc · LSE:ULVR
Unilever — H1 2014 Earnings Presentation
20 slides from Unilever's earnings presentation, Jul 24, 2014
Slide 1: Unilever First Half 2014 Results
Unilever First Half 2014 Results Paul Polman / Jean-Marc Huët July 24th 2014
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’, ‘looks’, ‘believes’, ‘vi
Slide 3: Paul Polman
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Slide 4: The environment remains tough
The environment remains tough Overall weak economies Volatility and uncertainty Slower markets World Bank ‘14 GDP growth forecast (%) Market growth (%) 10% 5% 5% Emerging 0% Developed World Europe US Brazil India 2012 Q2 '14 Jan Jun
Slide 5: Good quality top and bottom line growth
H1 2014: Good quality top and bottom line growth Growth ahead Gross margin Brand & Marketing Overheads Core Operating of our markets Investment Margin % winning share ∆ % turnover ∆ % turnover At constant rates (%) At constant rates (%) 30 bps 60% 10bps 10bps 30bps 0 bps At current rates (%)
Slide 6: Building sustainable growth: Differentiated innovation
Building sustainable growth: Differentiated innovation Dirt Is Good REGENERATE Compressed deodorants Dual action capsules Enamel Science™ Launched in 3 European countries Launched in the UK Now in 4 European countries
Slide 7: Building sustainable growth: Q2 2014 white space
Building sustainable growth: Q2 2014 white space Dirt Is Good Clear Lifebuoy Launched in Saudi Arabia and Gulf Launched in Japan Launched in China
Slide 8: Building sustainable growth: Reshaping the portfolio
Building sustainable growth: Reshaping the portfolio Disposals Acquisitions More Personal Care weighted 25% Foods 35% >36% PC 28% 2008 Now
Slide 9: Building sustainable growth: Improving Foods
Building sustainable growth: Improving Foods Growing in emerging: Repositioning towards the Spreads blended with butter Improving in developed growing segments Underling sales growth Emerging 0.7% -1.7% Foods Developed Q1 '14 Q2 '14 Knorr baking bags now in 40 countries Launched in 10 European count
Slide 10: Jean-Marc Huët
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Slide 11: H1 2014: Impact of currency movements
H1 2014: Impact of currency movements Free cash Turnover Margin Earnings flow (8.5)% (30)bps (12)% ca €(400)m
Slide 12: H1 2014: Solid underlying growth
H1 2014: Solid underlying growth USG +3.7% +1.9% +1.7% (0.4)% (8.5)% (5.5)% €25.5bn €24.1bn Turnover Vol/mix Price M&A FX Turnover H1 2013 H1 2014
Slide 13: H1 2014: Core Operating Margin 14.0%
H1 2014: Core Operating Margin 14.0% +10 bps (10) bps +30 bps (30) bps 14.0% 14.0% +30bps at constant rates COM Gross margin Brand & Marketing Overheads FX COM H1 2013 Investment H1 2014
Slide 14: H1 2014: Core EPS up 2.3% to €0.78
H1 2014: Core EPS up 2.3% to €0.78 €0.76 +6.9% +1.0% +3.8% +2.1% +0.6% (12.1)% €0.78 €0.16 +14.4% at constant rates Core EPS Operational JVs, associates, Tax Minorities Adj. avg FX Core EPS H1 2013 Performance financing & combined share H1 2014 other income units
Slide 15: H1 2014: Converting operational performance into EPS
H1 2014: Converting operational performance into EPS Competitive financing Reducing long term pension Simplifying capital structure: exposure Leverhulme family estate Recent debt issuance Annualised impact on core EPS 750m 7 yrs at 1.75% +2.0% 750m 5.5 yrs at 2.20% Green Bond £250m 4.5yrs at 2.0% Re
Slide 16: H1 2014: Free cash flow €0.8bn
H1 2014: Free cash flow €0.8bn Working capital outflow Forex impact mainly in H1 Free cash flow includes tax will reverse in H2 on disposal profits €(150) m €(1.1) bn €(0.4) bn €(600) m H1 2014 H2 2014 H1 2014 H2 2014 H1 2014 H2 2014 Full year FCF adjusted for tax on disposal profits expected to be
Slide 17: Balance Sheet
H1 2014: Balance Sheet Net Debt €9.3bn Pension deficit Up €0.8bn €2.5bn Up €0.5bn Cash contribution to pensions €355m Quarterly dividend per share FY expected to be €700m-€750m €0.285
Slide 18: Paul Polman
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Slide 19: 2014 priorities remain unchanged
2014 priorities remain unchanged Volume growth ahead of our markets Steady and sustainable improvement in core operating margin Strong cash flow
Slide 20: Unilever First Half 2014 Results
Unilever First Half 2014 Results Paul Polman / Jean-Marc Huët July 24th 2014