Unilever Plc · LSE:ULVR
Unilever — Morgan Stanley presentation 2004
29 slides from Unilever's conference presentation, Nov 3, 2004
Slide 1: Antony Burgmans, Chairman Unilever N.V.
Antony Burgmans Chairman Unilever N.V. 3 November 2004 0
Slide 2: Safe harbour statement
Safe harbour statement This presentation may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon current expectations and assumptions regar
Slide 3: Mission Statement
Mission Statement “Unilever’s mission is to add vitality to life. We meet the everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life.” Agenda for today: • Overview of Unilever • Recent performance and actions being taken • B
Slide 4: Global scale, category leadership
Global scale, category leadership Western North Other Europe America Regions World Savoury & Dressings Spreads Number 1 Weight management Tea Ice Cream Number 2 Frozen Foods Laundry Number 3 Household Care or less Daily Hair Care Skin Deodorants Not present Oral Care Prestige Fragrances Source: Euro
Slide 5: Unique basket of strong, relevant brands etc….
Unique basket of strong, relevant brands etc…. Our category positions are built on a strong portfolio of brands: These are some examples of: • Global brands • Local jewels (some US ones shown at the bottom of the chart) We now have 12 brands with a turnover of over €1 bn, up from only 4 in 1999. The
Slide 6: 2004 performance
2004 performance Outlook now for low single digit growth in EPS Disappointing sales Commitment to restore top line growth Actions being taken: Stepping up market place aggression Sustained innovation & activation behind focused portfolio of brands In September, lowered 2004 outlook for EPS
Slide 7: Improving competitiveness in Europe
Improving competitiveness in Europe Weak consumer confidence Retail dynamics: discounters, traditional retailers Share loss in some categories Actions being taken: Pricing Innovation Activation Europe Market conditions difficult in a number of countries • Consumer confidence remains weak
Slide 8: Taking the initiative in Asia
Taking the initiative in Asia India - robust defence of market positions Japan - step up in innovation activity Elsewhere - strong programme of innovation and activation Asia Large and growing market, strong positions Step-up in activity from several competitors in laundry and hair care in a n
Slide 9: Robust defence in South Latin America Laundry
Robust defence in South Latin America Laundry 1994-1996: • Competitor acquisitions 1999: • Competitor attack - pricing, innovation, A&P, etc. Since 1999: • Unrivalled leadership maintained and secured across the sub-region • Initial reduction in profitability, since reversed An illustration of robus
Slide 10: North America
North America So now to a practical illustration - North America A strong business built over many years 9
Slide 11: Unilever in North America 1993 - 2003
Unilever in North America 1993 - 2003 US$ billions 1993 2003 Turnover - Foods 3.4 6.4 - Personal Care 2.5 3.3 - Home Care 1.0 1.4 Total Foods, P Care & H Care 6.9 11.1 Professional Cleaning 1.7 - & Speciality Chemicals Total turnover 8.6 11.1 Operating margin* 7.5% 16.8% * before exceptional items a
Slide 12: Focus on categories and brands - Portfolio strengthened by acquisitions
Focus on categories and brands - Portfolio strengthened by acquisitions 1993 Breyers, Klondike Leadership in Ice Cream 1996 Helene Curtis Critical mass in Hair Care & Deo. 2000 Slim.Fast Leadership in Weight Management 2000 Ben & Jerry’s Adding Premium Ice Cream 2000 Bestfoods Scale in Foods, leader
Slide 13: Focus on categories and brands - Exit via disposals
Focus on categories and brands - Exit via disposals 1997 Chemicals 1998 Canned meats 2001 Frozen Fish 2001 Pregnancy testing 2001 Prestige Cosmetics 2002 Professional Cleaning 2003 Mass fragrances 2003 Oral Care 2003 Dishwash 2000 2004 Number of brands 113 59 % of turnover in leading brands 78% 97%
Slide 14: Generating economies of scale
Generating economies of scale Operating margin beia Assets* % sales 18 35 16 33 14 31 12 29 27 10 25 8 23 6 21 4 19 2 17 0 15 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 From several companies towards acting as a single unit: Van den Bergh Good Humor Lever Lipton Breyers H. Curtis Bestfoods Ben & Je
Slide 15: Customer management as a competitive advantage
Customer management as a competitive advantage Unique store reach Source: AC Nielsen Common Agenda’s - Drive Profitable Growth Building competitive advantage • Shopper Insight Research across the entire store • Category Vision, Category Mgmt, & Customer Marketing capabilities • Advanced Promotion Si
Slide 16: Mass Home and Personal Care - USA
Mass Home and Personal Care - USA Skin Deodorants Hair Laundry #1 #2 #2 #2 Example of how we manage categories through leading brands in Home and Personal Care in the US. ‘Cornerstone’ brand in each category, supported by the other brands in the portfolio The cornerstone brand: • has the consumer ‘p
Slide 17: Deodorants - the effect
Deodorants - the effect % 30 Market share - Deodorants 28 Competitor 1 26 24 Unilever 22 20 18 Competitor 2 16 14 12 Competitor 3 10 '96 '97 '98 '99 '00 '01 '02 '03 '04* Source: AC Nielsen, 6 channel data Antiperspirants & Deodorants * Year to Date Illustration in Deodorants…. 5 years ago Degree was
Slide 18: Deodorants - the effect: Advertising
Deodorants - the effect Advertising 17
Slide 19: Hair Care - Portfolio in change
Hair Care - Portfolio in change Preeminent ‘value’ brand 21 % share by volume - #1 10% share by value Launched in 2003 4% share by value Supported by: Total Unilever 29% share by volume - #1 18% share by value - # 2 Market shares of Daily Hair Care. Source: AC Nielsen 6 channel data Different situat
Slide 20: Foods - USA and a strong Foodsolutions business
Foods - USA Weight Olive Spreads Tea Ice Cream Dressings Savoury Mgmt Oil #1 #1 #1 #1 #1 #1 #2 …and a strong Foodsolutions business Managing categories through brands - this time for Foods: Shows leadership in all categories except for Savoury where we are still #2 Illustrates that: • for some categ
Slide 21: Ice Cream - Adding Fun to Vitality
Ice Cream - Adding Fun to Vitality US Ice Cream market is by far the largest in the world - consumption rate of over 20 litres per head. Total market grows at around 2% p.a. but within this, products which address ‘health & wellness’ are growing much faster Our range includes products which offer op
Slide 22: Sustained growth in NA Ice Cream
Sustained growth in NA Ice Cream Annual sales $1.6bn Underlying sales growth of 6%p.a. 1995 - 2004 ytd Further market share gain $0.9bn in 2004 Acquisition of Ben & Jerry’s 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Est 1995 2004 …….this has helped our North American Ice Cream business sustai
Slide 23: Slim.Fast
Slim.Fast Phase 1 - restore momentum 50.0% Market share: US weight management 40.0% 30.0% Slim.fast 20.0% 10.0% Low carb Competitor 0.0% 2003 2004 Source - IRI (FDTKS+ Wal-Mart) Phase 2 - revitalise the brand First stage of recovery plan: • to slow decline from losing consumers to low carb diets • l
Slide 24: First to market
First to market Launch of Carb Options was about responding fast to the rising low carb wave: • great tasting products at reasonable prices • where they normally shop • backed up by national brand endorsement • from a company with ‘food’ credentials Low Carb market: • is large….estimated $3.2 billio
Slide 25: Advertising
Advertising 24
Slide 26: Healthy Heart - Canada
Healthy Heart - Canada % Market Share of margarine 45 40 35 30 25 20 15 10 5 0 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 AC Nielsen Markettrack In the US we are clear number 1 in spreads... … but here’s an example from Canada - Becel • Sustained growth since launch in 1978 • #1 Margarine in Ca
Slide 27: Summary - Unilever North America
Summary Unilever North America Business built with real scale and profitability Strong brands driving leading category positions Capabilities leveraged across Foods and HPC To summarise: North America: • a strong business built over many years - $11bn turnover • clear strategic category and br
Slide 28: Summary - Unilever Global
Summary Unilever Global Scale and geographic reach Track record of control of costs and capital Commitment to shareholder value Determined to re-ignite profitable growth Unilever: Same principles extended globally…... • a business with real scale and unsurpassed geographic reach • strong portf
Slide 29: Antony Burgmans, Chairman Unilever N.V.
Antony Burgmans Chairman Unilever N.V. 3 November 2004 28