Unilever Plc · LSE:ULVR
Unilever — H1 2013 Earnings Presentation
26 slides from Unilever's earnings presentation, Jul 25, 2013
Slide 1: Unilever First Half 2013 Results
Unilever First Half 2013 Results Paul Polman / Jean-Marc Huët 25th July 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‟, „looks‟, „believes‟, „vi
Slide 3: Paul Polman – CEO
Paul Polman – CEO 25th July 2013
Slide 4: Environment is getting even tougher
Environment is getting even tougher Increased promotional intensity Slowing markets Social unrest
Slide 5: H1 2013: Delivering profitable growth
H1 2013: Delivering profitable growth Balanced growth Strong emerging market USG Improved core operating margin 10.4% 10.3% % 40 5.0% 2.6% 2.3% USG Volume Price Q1 13 Q2 13 + bps
Slide 6: H1 2013: Investing in our brands
H1 2013: Investing in our brands Continued investment in A&P Digital up by 20% External recognition 44 + 40 bps
Slide 7: USLP at the centre of the virtuous circle of growth
USLP at the centre of the virtuous circle of growth Driving growth Sustainable Living Reducing waste & cost Managing risk
Slide 8: Jean-Marc Huët – CFO
Jean-Marc Huët – CFO 25th July 2013
Slide 9: H1 2013 – Turnover growth +0.4%
H1 2013 – Turnover growth +0.4%: USG +5.0% +2.3% (3.2)% +2.6% (1.1)% €25.4bn €25.5bn Turnover H1 '12 Vol/mix Price Currency Acq/Disp Turnover H1 '13
Slide 10: H1 2013 – Core operating margin improved by 40 bps
H1 2013 – Core operating margin improved by 40 bps - 40 bps +120bps -40 bps 14.0% 13.6% H1 2012 Gross margin Advertising & Overheads % H1 2013 promotions %
Slide 11: Embedding low cost business models
Embedding low cost business models End-to-end lean value chain approach Roll-out on track Identified Realized Laundry 50% 25% Ice Cream parallel programme Consumer Customer UL Depot Factory RMs Others in early stage
Slide 12: H1 2013: Free cash flow €1.3bn
H1 2013: Free cash flow €1.3bn €0.6bn €1.0bn €0.6bn €0.9bn €3.9bn €0.4bn €0.2bn €0.1bn €1.3bn 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 opera
Slide 13: H1 2013: Core earnings per share €0.76
H1 2013: Core earnings per share €0.76 €0.06 €0.03 €0.01 €0.16 €1.57 €0.74 €0.76 +3.6% Core EPS Operational Currency Finance costs Others Core EPS H1 2012 Performance H1 2013
Slide 14: H1 2013: Balance Sheet
H1 2013: Balance Sheet Adjusted Net Debt €9.9bn Pension deficit €2.4bn Up €2.5bn Down €0.9bn On like-for-like IAS19 basis Cash contribution to pensions €0.4bn Quarterly dividend per share Full year expected €0.9bn €0.269
Slide 15: Increasing our share of earnings in emerging markets
Increasing our share of earnings in emerging markets Ownership now 67.3% Ownership now 97% 14.8% shares acquired >20% shares acquired Invested €2.5bn Invested €350m
Slide 16: Paul Polman – CEO
Paul Polman – CEO 25th July 2013
Slide 17: Setting the bar higher again
Setting the bar higher again Further stepping up innovation Rebasing our cost Improving performance in Foods
Slide 18: Personal Care and Home Care innovations
Personal Care and Home Care innovations Dove repair expertise hair range Persil concentrated liquid detergent
Slide 19: Foods innovations
To be updated Foods innovations Knorr jelly meal-makers Heart Health margarine – naturally good
Slide 20: Refreshment innovations
Refreshment innovations Magnum 5 Kisses Lipton Yellow Label with tea essence
Slide 21: Cost efficiency and discipline
Cost efficiency and discipline Driving greater productivity Simplified key processes Leveraging scale Technology
Slide 22: Positioning Foods to grow faster
Positioning Foods to grow faster More weighted towards More concentrated portfolio We know how to emerging markets win in spreads % of Turnover Price Emerging Developed Health/ Taste Naturalness 2003 2013 Account for ca 2/3 of turnover
Slide 23: Our priorities for 2013 remain unchanged
Our priorities for 2013 remain unchanged 1 Volume growth ahead of our markets 2 Steady and sustainable improvement in core operating margin 3 Strong cash flow
Slide 24: Unilever First Half 2013 Results
Unilever First Half 2013 Results Paul Polman / Jean-Marc Huët 25th July 2013
Slide 25: Appendix
Appendix 25th July 2013
Slide 26: Q2 2013 – Turnover growth +0.6%
Q2 2013 – Turnover growth +0.6%: USG +5.0% +2.0% (3.0)% +3.0% (1.2)% €13.3bn €13.3bn Turnover Q2 '12 Vol/mix Price Currency Acq/Disp Turnover Q2 '13