Unilever Plc · LSE:ULVR
Unilever — Q1 2009 Earnings Presentation
10 slides from Unilever's earnings presentation, May 7, 2009
Slide 1: Q1 2009 Results
Q1 2009 Results 7 May 2009 Paul Polman (CEO) - Jim Lawrence (CFO) - James Allison (Head of IR) 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 1
Slide 2: Q1 Highlights
Q1 Highlights • Underlying sales growth +4.8% • Savings programmes deliver strongly • Underlying operating margin -30bps • Two bonds issues at competitive rates • Acquisitions of TIGI and Baltimor Q1 Sales Q1 2009 Turnover €9.5bn Change (0.7)% Currency effect (2.0)% Acquisitions and disposals (3.3)%
Slide 3: Asia Africa CEE and Americas
Asia Africa CEE 10.5% 9.5% • Strong broad based organic growth • Trade de-stocking in some markets • Difficult markets in Central Europe • Underlying margin up +170 bps (0.9)% Price Vol USG Americas 8.3% 7.2% • Step-up in performance • Positive volume growth in US consumer business. Market shares up
Slide 4: Western Europe; Savoury, Dressings and Spreads
Western Europe • Weak markets – particularly Germany and Spain 1.0% • Strong start to the year in the UK (3.7)% (2.8)% Price Vol USG • Improved customer service levels • Underlying margin down –310 bps Savoury, Dressings and Spreads Q1 USG 2.9% 4
Slide 5: Ice Cream and Beverages; Home Care
Ice Cream and Beverages Q1 USG 4.3% Home Care Q1 USG 10.7% 5
Slide 6: Personal Care; Q1 Drivers of Operating Profit
Personal Care Q1 USG 4.0% Q1 Drivers of Operating Profit* Price Costs Commodity cost inflation 0.5 Q1 2009 €0.6bn 0.3 0.1 Vol/Mix 0 €bn Underlying -0.1 Profit A&P Acq/Disp -0.3 Savings -0.5 programme *Excl RDIs, constant currency 6
Slide 7: Q1 Operating Margin and Drivers of EPS Growth
Q1 Operating Margin Q1 2008 Q1 2009 Change Operating margin 19.0% 13.0% (6.0)% Including RDIs* 4.1% (1.6)% (5.7)% Operating margin before RDIs 14.9% 14.6% (0.3)% Key drivers: Gross margin (1.9)% Overheads 0.5% A&P 1.1% Includes margin dilution from disposals of (0.3)% *Restructuring, disposals and o
Slide 8: Balance Sheet and Cash Flow; Our Markets
Balance Sheet and Cash Flow • Cash flow from operating activities €0.1bn – Seasonal outflow of working capital – Cash conversion days improved – Increased pension contributions • Liquidity strong – US and UK bond issuances at competitive rates • Further progress on acquisitions CEO Perspective Our M
Slide 9: Actions taken to drive volumes
CEO Perspective Actions taken to drive volumes • 30 day action plans for all key markets • Bigger innovation, rolled out faster • Step up in A&P from Q2 • Better on-shelf availability CEO Perspective Actions taken to protect cash flow and margins • Restructuring plans brought forward • Simplificatio
Slide 10: Summary and Questions
Summary • Solid progress in tough environment • Strengthening our business model • Priorities remain 1. Reignite volume growth 2. Protect cash flow and margin Questions 10