Unilever Plc · LSE:ULVR
Unilever — Q1 2005 Earnings Presentation
33 slides from Unilever's earnings presentation, 2005
Slide 1: Unilever Roadshow Q1 2005 Results
Unilever Roadshow Q1 2005 Results Handout Version 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 forward-looking statements are based upon current expecta
Slide 2: Early signs of progress...
Early signs of progress... • Improving growth momentum (c. +2% like for like) • Market shares stabilising • Personal Care growth strongest for six quarters (c. +5% like for like) • D&E growth returning (c. +7% like for like ) • Vitality-inspired innovation making an impact • Increased marketing inve
Slide 3: ...but still work to be done
…but still work to be done • Sales growth rate remains below market growth • Market share still down year-on-year • Performance in Europe remains weak 2
Slide 4: Q1 2005 Underlying Sales Growth
Q1 2005 Underlying Sales Growth As reported Estimated Like for Like Europe +3.1% (2)% Americas +6.8% +4% Asia/Africa +10.1% +7% Total +6.0% +2% 3
Slide 5: Q1 2005 Operating Margin Development
Q1 2005 Operating Margin Development Q1 2005 15.3 % Q1 2004 14.5 % Change +80 bps Including - €73m of disposal gains in the quarter - substantially lower gross restructuring 05 vs 04* Drivers of operating margin in the quarter: • Zero overall price growth • Savings and mix broadly offset higher cost
Slide 6: Q1 2005 Key Financials
Q1 2005 Key Financials • EPS +25% benefiting from – one-off tax effects – restructuring and disposals – calendar effects • Tax rate in the quarter 23% • Net debt €10.1bn at quarter end 5
Slide 7: Key Messages
Key Messages • Early days… but signs of progress • Trading environment : – Western Europe - remains weak – North America - shows some pick up – D&E - healthy growth • 2005 Business Priorities – D&E – Personal Care progress in Q1 – Vitality – Europe more work to be done • Driving harder and faster on
Slide 8: Driving for Growth: Personal Care
Driving for Growth: Personal Care 7
Slide 9: Maximising the Deodorant Portfolio
Maximising the Deodorant Portfolio Aloe Vera Fresh Intense Silk Dry Sensitive (D&E) Unlimited The Changing Room Crystal for Effect Men Touch Grooming 8
Slide 10: Extending our Hair Brands into Styling
Extending our Hair Brands into Styling Sunsilk Styling Dove Styling Europe North America 9
Slide 11: Lux - Beyond a Bar of Soap
Lux - Beyond a Bar of Soap Bringing Out the Star in You across categories and markets Body Wash Hair Care Massage Bar Europe Japan Brazil 10
Slide 12: After success in the UK Firming market...
After success in the UK Firming market... - Real women proudly showing their curves - Sparked the rise of the “firming market” in the UK. - Sales uplift of 700% 11
Slide 13: ...Dove campaigns for Real Beauty across the globe
...Dove campaigns for Real Beauty across the globe Brazil US UK Argentina 12
Slide 14: Driving for Growth: D&E Markets
Driving for Growth: D&E Markets 13
Slide 15: Building On Strengths - D&E
Building On Strengths - D&E • Major contribution to growth in the quarter – €300m additional sales – 7% “like for like” USG • Broad-based progress across countries and across Foods and HPC 14
Slide 16: Drivers of Growth in D&E - Availability
Drivers of Growth in D&E - Availability 15
Slide 17: Drivers of Growth in D&E - Affordability
Drivers of Growth in D&E - Affordability Lifebuoy Rama discount soap bars with Rin/Surf affordable dairy cream proven germ protection low price fabric cleaning alternatives sachets Knorr Cubitos low unit-price seasoning cubes Sunsilk individual wash and care Rexona Compact sachets low price roll-on
Slide 18: Drivers of Growth in D&E - Consumer Intimacy
Drivers of Growth in D&E - Consumer Intimacy Ponds Skin Lightening Rin Advanced Foam for superior for fairer skin without Rexona Ebony - whiteness dryness and for black and mulatto (India) tightness skin (Brazil) (Malaysia) Sunsilk - tailored solutions to local hair dramas Anti-Dandruff Clean & Fres
Slide 19: Driving for Growth: Vitality
Driving for Growth: Vitality 18
Slide 20: New Avenues to a Healthy Heart - pro.activ
New Avenues to a Healthy Heart - pro.activ We have expanded the heart health benefits of the brand from our core spreads category…. …to milk and yoghurt…. …and daily yoghurt drinks… ...and created a €300m-plus business in 3 years 19
Slide 21: Bursting with Fruit and Vegetable Goodness - Knorr Vie
Bursting with Fruit and Vegetable Goodness - Knorr Vie A delicious “smoothie” style drink of concentrated fruit and vegetable juices At least half your daily recommended intake of fruit and vegetables crammed into one mini bottle 20
Slide 22: "Tea Can Do That" Communication - Lipton
“Tea Can Do That” Communication - Lipton Lipton’s unique combination of health benefits, with antioxidants to fights free radicals 21
Slide 23: Healthier Options, No Compromise on Taste - Hellmann's
Healthier Options, No Compromise on Taste - Hellmann’s With Canola Oil Cholesterol Free Extra Light USA Latin America UK and Ireland 22
Slide 24: "Better For You" Indulgence - Ice Cream
“Better For You” Indulgence - Ice Cream Ben & Jerry’s Carte D’Or Light Body & Soul Breyers Smart Range and Organic Solero Orange Fresh 0% fat Popsicle Klondike Sugar Free Slim-a-Bear 23
Slide 25: Natural, Great Tasting Food, Simply Frozen - Iglo/Birds Eye/Findus
Natural, Great Tasting Food, Simply Frozen- Iglo/Birds Eye/Findus Steam Fresh “Naturalness” Communication 24
Slide 26: Regaining Momentum in Europe
Regaining Momentum in Europe 25
Slide 27: Regaining Momentum in Europe - Foods
Regaining Momentum in Europe - Foods • Gaining share in key categories • Improved performance in most major countries • Driven by innovation and growth of the core Growth through Innovation Supporting the Core Dairy Cream pro.activ Alternatives Magnum Five Senses Flora/Becel Spreads 26
Slide 28: Regaining Momentum in Europe - HPC
Regaining Momentum in Europe - HPC Weak markets demand strong innovation New Dirt Is Good Communication Dove Silk Dry Deodorant Persil with the Essence of Surf Tropical Sunsilk Hair Styling Comfort 27
Slide 29: Other Developments
Other Developments 28
Slide 30: Progress on Recent Developments
Progress on Recent Developments • Unilever Executive operational from April • Over 100 senior appointments announced since February • Corporate Structure Review team appointed and remit agreed by the board 29
Slide 31: Old Management Structure
Old Management Structure Co-Chairman Co-Chairman HPC Foods Division Corporate Division HR Finance Director Development Director Director Director Director Marketing Finance Marketing Finance President SVP President SVP HR SVP R&D SVP HR SVP R&D SVP Africa S/C SVP BGP S/C SVP Latin North Latin North
Slide 32: The New Structure
The New Structure CEO Patrick Cescau Regions Categories Functions President President Finance Europe Foods Kees van der Graaf Vindi Banga Rudy Markham President President Human Resources Americas HPC Sandy Ogg John Rice Ralph Kugler President Asia / Africa Harish Manwani 31
Slide 33: One Unilever in Action - Customer Management in the USA
One Unilever in Action - Customer Management in the USA 32