Unilever Plc · LSE:ULVR
Unilever — Q3 2011 Earnings Presentation
25 slides from Unilever's earnings presentation, Nov 3, 2011
Slide 1: Unilever Q3 2011 Trading Statement
Unilever Q3 2011 Trading Statement Jean-Marc Huët – CFO James Allison – Head of IR and M&A November 3rd 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: Q3 2011 - Strong performance
Q3 2011 - Strong performance Balanced growth Emerging markets driving growth (USG) Broad-based growth 13.1% 11.3% 7.8% 9.2% 5.8% 6.2% 4.0% 1.9% 2.0% PC HC Foods IC Volume Price USG Developed Emerging Bev Major SAP upgrade in North America had an impact of +80bps at group level, will reverse in Q4’11
Slide 4: Positive contribution from M&A but negative FX
Q3 2011 - Positive contribution from M&A but negative FX USG 7.8% 5.8% -4.8% 2.2% 1.9% €12.1bn 4.9% €11.5bn Turnover Q3'10 Vol/Mix Price Currency M&A Turnover Q3'11
Slide 5: Q3 YTD 2011 - Strong underlying sales growth ahead of our markets
Q3 YTD 2011 - Strong underlying sales growth ahead of our markets USG 6.5% 4.3% -2.7% 0.8% €34.9bn 2.1% 4.4% €33.4bn Turnover YTD'10 Vol/Mix Price Currency M&A Turnover YTD'11
Slide 6: Personal care: now our largest category
Q3 2011 - Personal care: now our largest category Underlying sales growth (%) 11.3 Turnover year-to-date €11.3bn, almost 1/3rd of sales 5.3 5.8 Q3’11 underlying volume growth 6.2%, price growth 4.8% Q1'11 Q2'11 Q3'11 Balanced performance across geographies Consistent share gains in Skin Clea
Slide 7: Personal care: growth driven by innovation roll-outs
Q3 2011 - Personal care: growth driven by innovation roll-outs
Slide 8: Home care: strong quarter in a competitive market
Q3 2011 - Home care: strong quarter in a competitive market Underlying sales growth (%) 9.2 7.4 6.0 Q3’11 underlying volume growth 2.3%, price growth 6.7% Laundry value shares showing good momentum Q1'11 Q2'11 Q3'11 • Gains are widespread • Liquids performing well • Brand equities improving Ho
Slide 9: Household care: growth boosted by white space expansion
Q3 2011 - Household care: growth boosted by white space expansion Sunlight now in 32 countries Domestos now in 27 countries Cif now in 44 countries
Slide 10: Savoury, Dressings, Spreads: leading with price
Q3 2011 - Savoury, Dressings, Spreads: leading with price Underlying sales growth (%) 7.9 6.2 Q3’11 underlying volume growth -1.0%, price growth 7.3% 2.1 Knorr Jelly Bouillon now in more than 30 countries Q1'11 Q2'11 Q3'11 Dressings strong value share gains due to “inspire” campaign Spreads
Slide 11: Dressings growth driven by market development
Q3 2011 – Dressings growth driven by market development United States Mexico United Kingdom Hellmann’s on Chicken Hellmann’s in Guacamole Hellmann’s in Mash
Slide 12: Beverages & Ice Cream: good growth in tough conditions
Q3 2011 - Beverages & Ice Cream: good growth in tough conditions Underlying sales growth (%) 7.6 Q3’11 underlying volume growth -0.5%, price growth 4.6% 4.7 4.0 Ice Cream momentum continues, driven by innovation: Q1'11 Q2'11 Q3'11 • Magnum US launch ahead of expectations • Strong double-digit gr
Slide 13: Tea growth driven by technology led innovation
Q3 2011 – Tea growth driven by technology led innovation PG Tips – United Kingdom Lipton Yellow Label – Russia Incorporating the essence of tea extracted at source
Slide 14: James Allison, Head of IR and M&A
James Allison Head of IR and M&A
Slide 15: Asia, Africa, CEE: continues to power Unilever's growth
Q3 2011 - Asia, Africa, CEE: continues to power Unilever’s growth Q3’11 underlying volume growth of 5.0%, price growth 7.1% Underlying sales growth % Strong results in a year of unprecedented volatility 12.4 Broad based growth 8.9 9.2 Strong double-digit growth in most countries Performanc
Slide 16: Americas: growth continues to accelerate
Q3 2011 – Americas: growth continues to accelerate Underlying sales growth % Q3’11 underlying volume growth of 2.1%, price growth 6.9% Systems change 9.1 impact Adjusting for N.A. systems change, underlying growth around 7% 6.4 Good value share performance in Ice Cream and Personal Care 4.1
Slide 17: Western Europe: shares improving in difficult markets
Q3 2011 - Western Europe: shares improving in difficult markets Underlying sales growth % Q3’11 underlying volume growth -2.9%, price growth 2.4% 4.8 Good growth and share gains in UK and France Majority of categories gaining share with standout performances in Laundry and Deodorants -0.5 Sp
Slide 18: M&A: acquisition of Concern Kalina in Russia
M&A: acquisition of Concern Kalina in Russia Largest local PC player in Russia, turnover of around €300m Doubles the size of our HPC business in Russia Takes us from no.6 in the market to no.2 Improves the mix in Russia to broadly 50/50 Foods HPC Expected to complete the acquisition of 82%
Slide 19: M&A: TRESemmé roll out less than 6 months after completion
M&A: TRESemmé roll out less than 6 months after completion Hitting the shelves in November 2011
Slide 20: Jean-Marc Huët, CFO
Bye bye tired looking eyes. Dual Action Eye Cream from Pond's
Slide 21: Uniquely challenging times
Uniquely challenging times UK ASDA income tracker Commodity cost sharply up Competition intensifying Year-on-year change Jan 1st 2002=100 300 200 100 Jan/04 Jan/07 Jan/10
Slide 22: Accelerating change in Unilever
Accelerating change in Unilever Finance headcount reduction Category-driven organisation Enterprise Support Personal Care Foods -20% Service Costs ↑ Transparency 2008 2009 2010 YTD’11 Home Care Refreshment
Slide 23: Managing for the long term
Managing for the long term Tough environment for our consumers We are mitigating cost inflation by pricing to recover cost We continue to invest in our brands for the long term Underlying operating margin in 2011 flat to slightly down
Slide 24: Long term priorities
Long term priorities 1. Drive volume growth ahead of the markets 2. Steady and sustainable underlying operating margin improvement 3. Strong cash flow
Slide 25: Unilever Q3 2011 Trading Statement
Unilever Q3 2011 Trading Statement Jean-Marc Huët – CFO. James Allison – Head of IR and M&A. November 3rd 2011