Unilever Plc · LSE:ULVR
Unilever — FY2013 Earnings Presentation
24 slides from Unilever's earnings presentation, Jan 21, 2014
Slide 1: Unilever Full Year 2013 Results
Unilever Full Year 2013 Results Paul Polman /Jean-Marc Huët January 21st 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 – CEO
Paul Polman — CEO | i A 4 r= E
Slide 4: Consistent top and bottom line growth
Consistent top and bottom line growth Growth ahead of our Improved Core Operating Strong cash flow markets Margin USG ∆COM Free cash flow 4.3 % + 40 bps € 3.9 bn
Slide 5: 2013: Volume-driven growth ahead of our markets
2013: Volume-driven growth ahead of our markets USG +6.5% +6.9% +4.3% Volume 2.5%: market volume flat Price 1.8%: lower as commodity inflation eased Volume Price 2011 2012 2013
Slide 6: Growth engines continue to deliver strongly in 2013
Growth engines continue to deliver strongly in 2013 Emerging markets: Personal Care: Home Care: volume-driven growth broad-based growth consistent growth USG: +8.7% USG: +7.3% USG: +8.0%
Slide 7: Foods: Stable performance
Foods: Stable performance Spreads: Knorr & Hellmann's: Portfolio sharpening: early signs of progress continued growth €600m sales disposed
Slide 8: Refreshment: Contrasting performances
Refreshment: Contrasting performances Tea: continued growth Ice cream: mixed Enter AdeS:mélanges: rebuildingRama ‘with post recall butter’ off for a good start US: moving to a more Problem quickly resolved profitable base but sales down €60m Italy: weak consumer Now rebuilding the brand dema
Slide 9: Brands and innovation driving growth
Brands and innovation driving growth Innovation with scale Rapid global rollout Focussed R&D Dove Repair Expertise AXE’s ‘into space’ campaign in More resources now in >50 countries >60 countries in ‘discover’ and ‘design’
Slide 10: Improving operational excellence
Improving operational excellence Reduced Improved Sustained consumer complaints customer service –ve working capital Consumer complaints On-shelf availability MAT % -2.5% -3.2% -3.7% 2009 2013 2008 2013 2011 2012 2013 35% reduction Up by 900bps Stocks down 3 days per year
Slide 11: Investing in organisational strength and capabilities
Investing in organisational strength and capabilities Building organisational An employer of choice Enterprise & Technology capabilities Solutions No. 1 FMCG in 23 countries
Slide 12: Jean-Marc Huët – CFO
Jean-Marc Huët – CFO
Slide 13: Turnover impacted by currency
Turnover impacted by currency +4.3% -1.1% -5.9% €51.3bn -3.0% €49.8bn Turnover USG Acq/Disp Currency Turnover FY 2012 FY 2013
Slide 14: Gross Margin improved in all Categories & Regions
Gross Margin improved in all Categories & Regions Max the mix underway Low cost business models Commodity inflation Price index 2011-2013 100 130 2013: ca 4% 2014: low-mid single digit + bps € Increases driven by FX €225m €800m Realised Identified
Slide 15: Core Operating Margin up by 40 bps
Core Operating Margin up by 40 bps - 50 bps +110bps -20 bps 14.1% 13.7% COM Gross margin A&P Overheads COM FY 2012 FY 2013
Slide 16: Core EPS: Double digit growth at const. rates offset by FX
Core EPS: Double digit growth at const. rates offset by FX +3.1% €1.53 +7.4% +2.2% +1.0% -7.4% €1.58 +10.6% Core EPS Operational Tax Minorities & Currency Core EPS FY 2012 Performance Others FY 2013
Slide 17: 2013: Free Cash Flow €3.9bn
2013: Free Cash Flow €3.9bn €1.2bn €0.2bn €2.0bn €1.8bn €7.5bn €0.4bn €0.4bn €0.4bn €3.9bn Operating Depreciation Working Capex Tax Pensions(*) Net Others Free cash Profit & capital interest flow amortisation change (*) Pensions impact refers to cash contribution to pensions over and above operating
Slide 18: 2013: Balance Sheet
2013: Balance Sheet Net Debt €8.5bn Pension deficit €2.0bn Up €1.1bn Down €1.3bn On like-for-like IAS19 basis Cash contribution to pensions €0.7bn Quarterly dividend per share Similar level for 2014 FY €0.269
Slide 19: A more aligned definition of A&P from 2014
A more aligned definition of A&P from 2014 Accounting to reflect how we engage consumers e.g. in store merchandisers: from Overheads to A&P e.g. consumer care lines: from Supply Chain Cost & Overheads to A&P No change to Turnover or Core Operating Margin
Slide 20: Paul Polman – CEO
Paul Polman — CEO | i A 4 r= E
Slide 21: Towards a more agile organisation
Towards a more agile organisation Simplification: Project Half €500m Marketing Fit to Win savings Enterprise & Technology Solutions Re-invest to fund growth opportunities
Slide 22: Investing in growth opportunities
Investing in growth opportunities Whitespace expansion Support the core MAILLE IOMA Geographic opportunities Drive premiumisation
Slide 23: 2014 outlook
2014 outlook Slow market growth expected to continue in 1st Half Late Easter will shift volume from Q1 to Q2 Priorities remain unchanged: Volume growth ahead of our markets Steady & sustainable improvement in core operating margin Strong cash flow
Slide 24: Unilever Full Year 2013 Results
Unilever Full Year 2013 Results Paul Polman /Jean-Marc Huët January 21st 2014