Unilever Plc · LSE:ULVR
Unilever — Q2 2005 Earnings Presentation
13 slides from Unilever's earnings presentation, Aug 4, 2005
Slide 1: Unilever Q2 and First Half 2005 Results
Unilever Q2 and First Half 2005 Results Patrick Cescau, Rudy Markham and John Rothenberg 4th August 2005 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 fo
Slide 2: Progress Towards Recovery
Progress Towards Recovery z Third consecutive quarter of improving growth z Market shares stabilised/improving slightly z Investment in A&P increased z Mix and savings programmes relieving cost pressures But. . . . z Slim.Fast z Early days and still more work to do 2 2
Slide 3: Trading Environment
Trading Environment z Markets z Western Europe remains challenging z North America consumer demand steady z D&E markets buoyant z Costs z Agricultural and edible oil commodities easing z Mineral oil costs remain high z Competition z Continues to be intense despite margin pressures 3 3
Slide 4: Q2 Underlying Sales Growth
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 4 4
Slide 5: Building on Strength: D&E Markets
Building on Strength : D&E Markets Dirt Is Good Thailand Knorr Cubitos Egypt, Morocco Omo Baby Turkey Milk Tea China 5 5
Slide 6: Building on Strength: Personal Care
Building on Strength : Personal Care Dove Cool Moisture Rexona Teens US Latin America Dove Hair Japan 6 6
Slide 7: Regaining Momentum in Europe
Regaining Momentum in Europe z Markets growing by less than 1% z Shares stable vs exit 2004 but still down y-o-y z Strong Ice Cream, weak HPC and Frozen Foods z Work ongoing to improve competitiveness 7 7
Slide 8: Funding Growth
Funding Growth Savings programmes key to protecting margins z Global procurement programme continues to deliver z “One Unilever” programme progressing well: z Simple common design for Foods and HPC operations z Common face to customers z Leveraging scale e.g. through shared services and outsourcing
Slide 9: H1 Operating Margin
H1 Operating Margin H1 2005 13.7% H1 2004 15.1% (1.4)% Reflecting: Slim.Fast impairment (1.8)% Lower restructuring +0.6% Higher profits on disposal +0.2% Savings and improved mix largely offsetting higher input costs and increased marketing investment 9 9
Slide 10: Key Financials Q2 and H1 2005
Key Financials Q2 and H1 2005 Q2 H1 EPS decline (29)% (6)% EPS growth before Slim.Fast (7)% 6% Tax rate 30% 27% Net cash flow from operating 857 1350 activities(€m) z Net debt €11.5 bn at end of quarter z 8.1 million NV shares bought in as at end July 10 10
Slide 11: Outlook 2005
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 Higher restructuring costs expected in H2 z Tax rate for full year slightly below 30% long-term guida
Slide 12: Progress Towards Recovery
Progress Towards Recovery We are encouraged by our performance to date... z Third consecutive quarter of improving growth z Market shares stabilised/improving slightly z Investment in A&P increased z Mix and savings programmes relieving cost pressures …but we still have work to do 12 12
Slide 13: Unilever Q2 and First Half 2005 Results
Unilever Q2 and First Half 2005 Results Patrick Cescau, Rudy Markham and John Rothenberg 4th August 2005 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 fo