Unilever Plc · LSE:ULVR
Unilever — Barclays Back to School Conference 2011
30 slides from Unilever's conference presentation, Sep 7, 2011
Slide 1: Barclays Back to School Conference - Boston
Unilever Barclays Back to School Conference - Boston James Allison – Head of IR and M&A September 7th 2011
Slide 2: Safe Harbour Statement
Safe Harbour Statement This announcement 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’, ‘believes’ or the negative of these ter
Slide 3: H1 2011 Results
1 H1 2011 Results
Slide 4: Good performance against our priorities
Good performance against our priorities Strong sales growth Volume growth remains robust Gaining value share USG H1’11 H1’11 5.7% 4.1% 2.0% 2.2% 3.5% 40% 60% winning / holding 2009 2010 H1 '11 Market Volume growth
Slide 5: Underlying operating margin underpinned by lower indirects
Underlying operating margin underpinned by lower indirects -20 bps +60bps -230bps +150bps 14.9% 14.7% H1 2010 GM % A&P % Indirects % H1 2011
Slide 6: Unilever: Fit to Compete
2 Unilever: Fit to Compete
Slide 7: Focus on customer and consumer
Focus on customer and consumer Growth as a primary goal Customers and consumers at the heart of the business €80 bn €40 bn
Slide 8: Alignment around a clear focussed strategy
Alignment around a clear focussed strategy Aligned from top to bottom Volume growth and market share focus Clear strategic framework: The Compass Profitable Cost Leverage Volume + Growth Efficiencies Cost Innovation Savings A&P / R&D
Slide 9: New leadership
New leadership New Unilever Executive team refreshed with external appointments Driving performance culture Building bias for action
Slide 10: Compensation structure that rewards great performance
Compensation structure that rewards great performance more skin in the game rewards for performance More More stretch differentiation More 3+1 goals reward Employee engagement has increased
Slide 11: A more agile organisation
A more agile organisation Personal Care 8 mega clusters Foods Home Care Refreshment Category-cluster combinations from >200 to 32
Slide 12: A new vision
A new vision Doubling the size of the business Sharper strategic choices Win Win in Emerging Win Globally Markets Differently €80bn €44bn €40bn PC / Ice Cream / Tea Home Care Spreads/ Dressings Cooking Products Oral Care Soups environmental impact
Slide 13: Innovation underpins our growth
Innovation underpins our growth Bigger projects Faster roll outs Portfolio delivering more 20% H1 '10 H1 '11 Top 10 projects incremental turnover 100 countries in 12 months Innovation rate > 30%
Slide 14: Innovating in Deodorants
Innovating in Deodorants Axe – global launch Gaining share Dove – Beauty Finish MAT 30bps 30bps Volume Value
Slide 15: Innovating in Hair
Innovating in Hair Sedal – Weather Defence Dove – Nourishing oils launch Clear – global re-launch Alberto Culver / TIGI: M&A re-shaping the portfolio
Slide 16: Innovating in Laundry
Innovating in Laundry DiG – global re-launch Radiant - unique technology Market development
Slide 17: Innovating in Ice Cream
Innovating in Ice Cream Magnum – US launch Cornetto - Europe Fruttare - Asia, LATAM
Slide 18: Innovating in Savoury
Innovating in Savoury Knorr – Stockpot PF Chang – United States Nigeria – Royco seasonings
Slide 19: We continue to roll-out our brands into more markets
We continue to roll-out our brands into more markets Cafe Zero – Europe Cif – Philippines, Malaysia Axe - China Dove Hair - China Sunlight – Bangladesh / Pakistan Dove Deo - Thailand
Slide 20: Unilever: the Emerging Market company
3 Unilever: the Emerging Market company
Slide 21: Emerging markets: consistent growth over 20 years
Emerging markets: consistent growth over 20 years ~9% p.a. 54% USG 30% 1990 1995 2000 2005 2010
Slide 22: Large populations, low per capita consumption levels
Large populations, low per capita consumption levels Population bath and shower – US$ spend per capita China 1.4bn 20 Developed markets 17 India 1.3bn Emerging markets 13 14 Indonesia 230m Brazil 195m Pakistan 170m 5 5 3 Bangladesh 160m 1 2 2 1 Philippines 90m Vietnam Indonesia China India Turkey Me
Slide 23: Unparalleled leadership across emerging markets
Unparalleled leadership across emerging markets Fabric Cleaning 1 1 2 1 2 1 1 1 2 Hair Care 1 1 2 1 1 1 1 1 1 1 Skin Cleansing 1 2 1 2 1 1 1 1 1 1 Face Care 1 1 1 1 1 1 1 Deos 1 1 1 1 1 2 1 2 1 1 Tea 2 1 1 1 Savoury 1 2 2 2 1 1 2 1 Ice Cream 1 1 1 1 1 Source: Nielsen / IRI / estimates Brazil Russia
Slide 24: Growing ahead of the markets in BRIC/MIST
Growing ahead of the markets in BRIC/MIST USG Market Growth Unilever value shares 11 9 7% 70 7 CAGR bps 2009 2010 H1 '11 2008 2010 2008 2010 Source: Euromonitor (Unilever footprint)
Slide 25: And in the next 8 emerging countries our performance is better
And in the next 8 emerging countries our performance is better (*) USG Market Growth Unilever value shares (**) 15 14 12 5% 60 CAGR bps 2009 2010 H1 '11 2008 2010 2008 2010 (*) Argentina, Bangladesh, Pakistan, Philippines, Vietnam, Thailand, Egypt and Nigeria (**) Bangladesh, Pakistan and Nigeria no
Slide 26: Competition stimulates market growth: Indonesia Face
Competition stimulates market growth: Indonesia Face Face Indonesia $US m $550 Share m 800 50 40 600 30 400 20 200 10 0 0 2005 2006 2007 2008 2009 2010 Market Size Unilever Key Competitor Source: Euromonitor
Slide 27: More still to do
4 More still to do
Slide 28: Opportunities to raise the bar further
Opportunities to raise the bar further Sharper choices New organisation Sustainability Personal Care Home Refresh Care ment Foods More to do in driving rigour and discipline through the business
Slide 29: Summary
Summary New Unilever: much stronger Innovation at the heart of what we do Huge potential But more to do
Slide 30: Questions
Questions