Unilever Plc · LSE:ULVR
Unilever — Q2 2005 Earnings Presentation
21 slides from Unilever's earnings presentation, 2005
Slide 1: Unilever Roadshow Q2 and First Half 2005 Results
Unilever Roadshow Q2 and First Half 2005 Results Handout Version 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
Slide 2: Q2 Underlying Sales Growth / Progress on Growth Priorities
Q2 Underlying Sales Growth Q4 2004 Q1 2005 Q2 2005 Reported Growth (%) 3.2 6.0 3.3 Like for like Growth (%) 1* 2* 3.3 * Estimated - adjusted for days z Volume based z Stable market shares z Driven by : - new product launches - faster roll-out - better execution - improved competitiveness Progress on
Slide 3: H1 Operating Margin / Financial Performance H1 2005
H1 Operating Margin H1 2005 13.7% H1 2004 15.1% (1.4)% Including: Slim.Fast impairment (1.8)% Benefiting from: Lower restructuring +0.6% Higher profits on disposal +0.2% Savings and improved mix largely offsetting higher input costs and increased marketing investment Financial Performance H1 2005 z
Slide 4: Outlook 2005 / Driving for Growth - Personal Care
Outlook 2005 z No significant changes to business environment z Continued investment in competitiveness z Six fewer calendar days in Q4 vs prior year z Ongoing contribution from savings programmes z Net restructuring for full year at bottom end of 50- 100 bps range z Tax rate for full year slightly
Slide 5: Maximising the Deodorant Portfolio
Maximising the Deodorant Portfolio Unlimited Global Launch Silk Dry Global Launch For Men - Won’t Let You Down award-winning advertising Lynx Advertising UK Repair to Shaving Damage Teens Latin America Communication Extending from Wash and Care into Styling Sunsilk Styling Dove Styling Europe North
Slide 6: Building on Strength in Skin - Dove
Building on Strength in Skin - Dove Dove Cool Moisture with cucumber extract and Celebrating the beauty in calming green tea - everybody - Dove Firming refreshment you can feel rolled out to Asia Driving for Growth - D&E Markets 6
Slide 7: H1 Performance in D&E
H1 Performance in D&E z Major contribution to growth this year - Over 10% USG in Q2 z Broad-based progress across Foods and HPC z Broad-based across countries - Top 15: - all grew 7% or more - 11 of 15 grew in double digits Drivers of Growth in D&E - Availability 7
Slide 8: Drivers of Growth in D&E - Affordability
Drivers of Growth in D&E - Affordability Lifebuoy Rama small soap bars with proven Rin/Surf affordable dairy cream germ protection low price fabric cleaning alternatives sachets Knorr Cubitos low unit-price seasoning cubes Sunsilk individual wash and care Rexona Compact sachets low price roll-on deo
Slide 9: Driving for Growth - Vitality in Foods
Driving for Growth - Vitality in Foods New Avenues to a Healthy Heart - pro.activ We have expanded the heart health benefits of the brand from cholesterol-reducing in our core spreads category…. …to milk and yoghurt…. …and daily yoghurt drinks… ...and created a €300m-plus business in 3 years. And no
Slide 10: Knorr Vie and Lipton
Bursting with Fruit and Vegetable Goodness - Knorr Vie A delicious “smoothie” style drink of concentrated fruit and vegetable juices At least half your daily recommended intake of fruit and vegetables crammed into one mini bottle “Tea Can Do That” Communication - Lipton Lipton’s unique combination o
Slide 11: Healthier Options, No Compromise on Taste
Healthier Options, No Compromise on Taste - Hellmann’s Extra Light With Canola Oil Cholesterol Free (only 6% fat) USA Latin America UK “Better For You” Indulgence - Ice Cream Ben & Jerry’s Carte D’Or Light Body & Soul Breyers Smart Range and Organic Solero Orange Fresh 0% fat Popsicle Klondike Sugar
Slide 12: Driving for Growth - Vitality in HPC
Natural, Great Tasting Food, Simply Frozen- Iglo/Birds Eye/Findus Steam Fresh “Naturalness” Communication Driving for Growth - Vitality in HPC 12
Slide 13: Dove Campaigns for Real Beauty
Dove Campaigns for Real Beauty across the globe Brazil UK US Argentina Promoting Hygiene in D&E - Lifebuoy 13
Slide 14: Partnering the World Dental Federation - Signal
Partnering the World Dental Federation - Signal Encouraging oral health around the world through practical, sustainable programmes, activated locally. The 5c toothbrush also brings affordable quality to low income consumers Freedom from Cleaning - Dirt Is Good 14
Slide 15: Driving for Growth - Regaining Momentum Europe
Driving for Growth - Regaining Momentum Europe H1 2005 Performance in Europe z Markets growing by less than 1% z Shares stable vs exit 2004 but still down year-on-year z Strong Ice Cream, weak HPC and Frozen Foods z Work ongoing to improve competitiveness 15
Slide 16: Regaining Momentum in Europe - Foods and HPC
Regaining Momentum in Europe - Foods z Gaining share through innovation in Ice Cream z Steady progress in Savoury, Dressings, Spreads and Beverages z Frozen Food remains disappointing Sponge Bob pro.activ blood Magnum Five Dairy Cream Square Pants pressure-reducing Senses Alternatives Kids’ Ice Crea
Slide 17: Organisation
Organisation Organisational Developments z Unilever Executive operational from April z Over 100 senior appointments announced since February z Corporate Legal Structure Review team progressing on track 17
Slide 18: The Operating Executive Structure
The Operating Executive Structure CEO Patrick Cescau President President Europe Foods Finance Kees van der Graaf Vindi Banga Rudy Markham President President Human Resources Americas HPC Sandy Ogg John Rice Ralph Kugler President Asia / Africa Distinct, complementary roles Harish Manwani Simpler, fa
Slide 19: Company Overview
One Unilever in Action - Customer Management in the USA Company Overview 19
Slide 20: Financial Objectives / Unilever's Strong Portfolio
Financial Objectives Overarching ambition: Top Third Total Shareholder Return, over a 3 year rolling period out of peer group of 20 other companies. Outlook to 2010: • Generation of free cash flow in the period 2005-2010 to be €25-30 bn • A progressive improvement in Return on Invested Capital • An
Slide 21: Underlying Sales Growth
Underlying Sales Growth Quarterly underlying sales growth has improved consecutively from Q4 2004 % 5 4.5 4 3.5 Typical growth rate for markets and categories in which 3 Unilever operates: 2.5 2 - 4% 2 1.5 1 0.5 0 * 05 95 96 97 98 99 00 01 02 03 04 05 20 19 19 19 19 19 20 20 20 20 20 20 2 1 Q Q *est