Unilever PLC · LSE:ULVR
Unilever — Q3 2007 Earnings Presentation
10 slides from Unilever's earnings presentation, Nov 1, 2007
Slide 1: Unilever Q3 and Year to Date 2007 Results
Unilever Q3 and Year to Date 2007 Results Jim Lawrence Chief Financial Officer John Rothenberg SVP Investor Relations 1st November 2007 Highlights • Sustained underlying sales growth • Underlying improvement in operating margin • Accelerated change programme • Organisational simplification • Supply
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. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other
Slide 3: Underlying sales growth by region and category
Underlying sales growth by region Americas Q3 YTD Asia/Africa USG 2.8%* 4.2% Q3 YTD *4.9% after adjusting for sales USG 11.7% 11.4% pull-forward in US 29% 33% 38% Europe Q3 YTD USG 0.7% 1.9% Underlying sales growth by category Ice Cream Home Care and Beverages Q3 YTD Q3 YTD USG 7.1% 6.3% USG (0.1)%
Slide 4: Savoury, Dressings and Spreads; Ice Cream and Beverages
Savoury, Dressings and Spreads Q3 YTD USG 6.6% 4.7% Ice Cream and Beverages Q3 YTD USG (0.1)% 3.8%
Slide 5: Home Care; Personal Care
Home Care Q3 YTD USG 7.1% 6.3% Personal Care Q3 YTD USG 3.8% 6.5%
Slide 6: Operating margin development: Year to date and Q3
Operating margin development: Year to date 2006 2007 Change Operating margin 14.5% 13.7% (0.8)% Including RDIs (0.3)% (1.4)% (1.1)% Change before these items 0.3% Key drivers: A&P 0.1% Savings 2.1% Cost/price/mix (1.9)% Operating margin development: Q3 2006 2007 Change Operating margin 14.8% 13.7% (
Slide 7: Mitigating the impact of commodity costs; Savings and restructuring
Mitigating the impact of commodity costs Commodity cost impact on margin 200 180 Actions taken 160 140 180 • Price increases 120 bps 100 80 150 160 • Reformulation 60 100 40 80 • Forward buying 20 0 • Buying savings 2003 2004 2005 2006 YTD 2007 2007 outlook c.200 bps Savings and restructuring 2007 q
Slide 8: Accelerating change – Progress to date; Drivers of YTD EPS growth
Accelerating change – Progress to date • Organisational simplification • Announced three further MCOs - UK/Ireland - Germany/Austria/Switzerland - Central Africa • Integration of North America Ice Cream • Consolidated businesses in South Africa and Israel • Supply chain rationalisation • Affecting 1
Slide 9: Balance sheet and cash flow
Balance sheet and cash flow • Net debt €8.2bn • Share buy-back: €1.1bn repurchased to end September • Pension liability reduced to €0.8bn • Cashflow from operating activities €3.5bn Unilever Q3 and Year to Date 2007 Results
Slide 10: Questions
Questions change Accelerating Unilever Q3 and Year to Date 2007 Results Jim Lawrence Chief Financial Officer John Rothenberg SVP Investor Relations 1st November 2007