Unilever Plc · LSE:ULVR
Unilever — FY2002 Earnings Presentation
12 slides from Unilever's earnings presentation, Feb 13, 2003
Slide 1: 2002 Fourth Quarter and Full Year Results
2002 Fourth Quarter and Full Year Results Niall FitzGerald & Howard Green February 13, 2003 London SAFE HARBOUR STATEMENT: This presentation may contain forward-looking statements (within the meaning of the U.S. Private Securities Litigation Reform Act 1995) based on our best current information and
Slide 2: Growth drivers - the story in context
Growth drivers - the story in context • A reshaped portfolio - scale and leading positions • Brands on trend with the consumer • Brand focus - more effective innovation - the traffic drivers for retailers • The space for growth - geography - across categories - to where consumers consume • Strength
Slide 3: Foundations for sustained, profitable growth: Personal Care and Laundry
Foundations for sustained, profitable growth: Personal Care USG FY 2002 Comment Personal Care 9% 7% p.a. last 4 years Hair, Skin, Deo 11% 9% p.a. last 4 years Growing the core - creating the platform for space for growth double-digit growth driven by existing markets double-digit growth driven by pe
Slide 4: Savoury and Dressings; Knorr - a brand for all seasons
Foundations for sustained, profitable growth: Savoury and Dressings % of Sales H2 USG Savoury & Dressings 7%+ Leading Brands 90% 8%+ Knorr, Hellmann’s, Bertolli 50% Momentum underpinned by: Europe:+7% LatAm:+15% H2 USG: 7.5% S Knorr - a brand for all seasons Reach out Reach up New consumers Nutritio
Slide 5: Spreads & Cooking Products; Tea based beverages
Foundations for sustained, profitable growth: Spreads & Cooking Products 9 successive quarters of 4%+ leading brands growth USG % of sales FY 2002 Leading Brands 70% >4% U Foundations for sustained, profitable growth: Tea based beverages Lipton…average of 5% growth p.a. over the past 3 years USG Fro
Slide 6: Ice cream and Frozen foods
Foundations for sustained, profitable growth: Ice cream Global leader….growing organically….profitably USG Comment 2001 3% 2002 4% N. America 8% Sustain superior performance D&E markets 6% Returning to historical growth Europe 1% Need to broaden consumer reach NM Foundations for sustained, profitabl
Slide 7: Scaling the growth ladder; Sales performance
Scaling the growth ladder Unilever growth rate 2002 4.2% Reduce tail of business to 5% +100 bps Step-up growth of leading brands +90 bps Target growth rate 2004 5 - 6% Capacity to deal with normal cut and thrust NO Sales performance 2002 Sales Sales Contribution €bn €bn Growth Growth to Total 2001 2
Slide 8: Improvement in operating margin; Margin and Capital Efficiency Progression
Improvement in operating margin 2002 Supply chain and procurement savings 120 Mix improvement 60 Selling price/cost changes HPC Foods Price 80 80 (70) Costs (130) (100) Improvement in gross margin 110 A&P (120) Lower associated costs 30 Overhead savings 80 Improvement in operating margin 100 basis p
Slide 9: Drivers of margin growth to 2004; Key features of Q4 results
Drivers of margin growth to 2004 • Benefits of restructuring of €700 million adds 130 bps • Continued momentum in Bestfoods integration savings • Improved mix adds 60-70 bps • Recovery of devaluation led cost increases adds 70-90 bps • Further investment in A & P …. together producing around 200 bps
Slide 10: Key financial indicators; Impact of Currency
Key financial indicators € million 2002 2001 % Change Operating profit (beia) 7739 7269 +6 Associated costs 200 390 -49 Exceptional items (939) (588) +59 of which restructuring 1298 1515 -15 Interest 1288 1646 -22 Net debt at year end (€bn)* 17.0 23.2 -27 EBITDA interest cover* 7.3 5.1 +43 Underlyin
Slide 11: Impact of implementing FRS17; Accounting for stock options
Impact of implementing FRS17 Pension & Other Benefits elements 2002 2003 (Estimate) Impact on: (€ mln) SSAP 24 FRS 17 FRS 17 Operating Profit (beia) (274) (381) (400) Charge to Interest 0 108 (190) Profit before Tax (274) (273) (590) Net Profit (beia) (184) (183) (395) Net Assets (after tax) €bln (2
Slide 12: Outlook for 2003
Outlook for 2003 • Leading brands growth 5-6% • Leading brands to rise as a proportion of total business • EPS (beia) growth - low double digits • Underlying tax rate reduced to around 32% • Planned restructuring exceptionals €500 million OO 2002 Fourth Quarter and Full Year Results SAFE HARBOUR STA