Unilever Plc · LSE:ULVR
Unilever — Q1 2017 Earnings Presentation
21 slides from Unilever's earnings presentation, Apr 20, 2017
Slide 1: Unilever Trading Statement Q1 2017
Unilever Trading Statement Q1 2017 Graeme Pitkethly / Andrew Stephen April 20th 2017
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This announcement contains forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements related to underlying sales growth, underlying operating margin. Words s
Slide 3: Graeme Pitkethly
Graeme Pitkethly
Slide 4: Improving market outlook but demand remains weak
Improving market outlook but demand remains weak Consumer demand Emerging market Commodity inflation not yet improving currencies improving returning Price vs. Q1’16 Market Value Growth India Brazil Up 2% Brent Crude Oil +50% Indonesia Turkey +45% Market Volume Growth Palm Kernel Oil South Africa Do
Slide 5: Solid start to the year
Solid start to the year Consistent growth Competitive growth Broad-based growth Quarterly USG% Total Unilever Total excl. Quarter 1 USG% spreads Personal Care +3.1% 4.7% 4.7% 3.4% 2.9% Home Care +4.1% 3.2% 2.9% 2.2% Food ex. spreads +1.7% Refreshment +5.4% Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 USG Market gr
Slide 6: Connected for Growth lands at just the right time
Connected 4 Growth lands at just the right time Country Category Innovation One marketing team ZBB approach Business Teams (CCBTs) global & local Increased category Faster flow of local Faster and more Disruptive thinking focus at a local level insights on-trend on costs The foundation for faster ch
Slide 7: Personal Care: Innovating to grow the core & build premium
Personal Care: Innovating to grow the core & build premium Global scale Local relevance Flexibility in our model Tresemmé Keratin Dove Baby roll out Ayush Rexona mini tubes Lifebuoy Silver Dove Men+Care with the power of Silver
Slide 8: Home Care: Innovating for growth and margins
Home Care: Innovating for growth and margins Global scale Local relevance Flexibility in our model Brilhante flexi-packs Domestos re-launch Omo re-launch Comfort Sakura, China Cif wipes
Slide 9: Foods: Innovating to build scale in EM & modernise the portfolio
Foods: Innovating to build scale in EM & modernise the portfolio Global scale Local relevance Flexibility in our model New dry salad dressings Launch of Calvé in Turkey New organic variants Side dishes in the US
Slide 10: Refreshment: Innovating in premium and high-growth segments
Refreshment: Innovating in premium and high-growth segments Global scale Local relevance Flexibility in our model Ben & Jerry’s Topped Lipton speciality Lipton Matcha Raspberry & coconut Magnum pints Peanut Butter Cornetto
Slide 11: Graeme Pitkethly
Graeme Pitkethly
Slide 12: Andrew Stephen
Andrew Stephen
Slide 13: Q1 2017: Turnover up 6%
Q1 2017: Turnover up 6% +0.7% +2.4% Price Growth +3.0% • Less from Latin America +2.9% More from Asia €13.3bn • Volume Growth -0.1% €12.5bn • Including calendar effects Q1 2016 USG% M&A FX Q1 2017
Slide 14: Regional performance
Regional performance Asia / AMET / RUB Latin America North America Europe €5.9bn €2.1bn €2.3bn €3.0bn USG 6.9% USG 3.5% USG (0.9%) USG (2.0%) UVG 2.2% UVG (3.3%) UVG (1.1%) UVG (1.5%) • Emerging markets: Some signs of improvement, pricing normalising • Brazil: Market volume down 5-6% and trade de-st
Slide 15: Graeme Pitkethly
Graeme Pitkethly
Slide 16: Faster pace of change
Faster pace of change Fragmentation Changing cost & price dynamics Disruptive new models Benchmarks re-set Consumers Channels Media Competitors
Slide 17: Accelerating Connected for Growth and portfolio change
Accelerating Connected 4 Growth and portfolio change • Underlying sales growth ahead of markets, 3-5% Committed to our long-term model • Sustained investment in our brands • Compounding returns • Roll out of 5-S programme Accelerated savings programmes • ZBB extended to logistics • Leaner business m
Slide 18: Accelerated returns: New financial targets
Accelerated returns: New financial targets USG Underlying Cash conversion ROIC Leverage & Operating Margin returns Ahead of 20% 100% High 2x markets by 2020 by 2020 teens Net debt/ 3-5% EBITDA Capex 3% of turnover €5bn share buyback in 2017 One-off cash injection to pension funds Cash conversion def
Slide 19: More granularity in our reporting
KEY More granularity in our reporting current / modified disclosure new / additional reporting PC HC HC Foods Refresh F&R Total & PC Unilever Quarter Turnover Quarter Growth Half Year Underlying Operating Profit Half Year Restructuring Full Year Fixed Assets & Working Capital Full Year Return on Ass
Slide 20: On track to deliver our objectives in 2017
On track to deliver our objectives in 2017 Ahead of our markets, 3-5% underlying sales growth Underlying operating margin up at least 80bps Strong cash flow Raising dividend by 12% reflecting increased confidence in our plans
Slide 21: Unilever Trading Statement Q1 2017
Unilever Trading Statement Q1 2017 Graeme Pitkethly / Andrew Stephen April 20th 2017