Slide 1: Unilever Full Year 2019 Results
Unilever Full Year 2019 Results Alan Jope & Graeme Pitkethly 30th January 2020
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 ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vi
Slide 3: Alan Jope
Alan Jope Unilever Full Year 2019 Results 30th January 2020
Slide 4: 2019: Full year results
2019: Full year results Growth Margin Earnings Cash Underlying Sales Growth Underlying Operating Margin Underlying EPS Free Cash Flow +2.9% +50 bps +8.1% €6.1bn +1.2% +30 bps +5.8% +€0.7bn Underlying Volume Growth Gross Margin Constant Underlying EPS vs 2018 4
Slide 5: 2019: Progress on hotspots
2019: Progress on hotspots MAT L12W MAT L12W USA Dressings USA Hair (20) +45 (95) (15) USA Ice cream DMs tea (55) +40 (85) (75) 5 Value market share data, bps movements
Slide 6: 2019: People and organisation
2019: People and organisation New Flatter markets Unilever Executive organisation 6
Slide 7: 2019: Strategy and portfolio
2019: Strategy and portfolio Integrated strategy Portfolio review 7
Slide 8: Graeme Pitkethly
Graeme Pitkethly Unilever Full Year 2019 Results 30th January 2020
Slide 9: Consistent growth
Consistent growth Emerging markets Total Unilever 6.4% 5.4% 5.0% 5.3% USG 3.6% 2.8% 3.2% 2.9% UPG 1.6% Developed markets (0.2)% (0.6)% 0.5% (0.5)% UVG 1.2% '16 FY '17 FY '18 FY '19 FY '16 FY '17 FY '18 FY '19 FY 9 Reflecting treatment of hyperinflation in USG as announced in September 2019
Slide 10: Q4 slowdown in USG
Q4 slowdown in USG USG 3.5% 3.4% 3.8% 2.9% 1.5% • Africa ➢ Ghana & Nigeria • India UPG ➢ Market slowdown & pricing actions 0.4% • North America ➢ Below our expectations UVG 1.1% • N Africa, Middle East & Turkey '18 Q4 '19 Q1 '19 Q2 '19 Q3 '19 Q4 ➢ Softening inflation 10 Reflecting treatment of hyper
Slide 11: Beauty & Personal Care
Beauty & Personal Care FY USG 2.6% Prestige Deodorants UPG 0.9% 1.7% UVG FY UOM +70bps 11 Reflecting treatment of hyperinflation in USG as announced in September 2019
Slide 12: Foods & Refreshment
Foods & Refreshment FY USG 1.5% Dressings Premium ice cream UPG 1.7% UVG (0.2)% FY UOM (20)bps 12 Reflecting treatment of hyperinflation in USG as announced in September 2019
Slide 13: Home Care
Home Care FY USG 6.1% Fabric solutions Fabric sensations Home & hygiene UPG 3.1% UVG 2.9% FY UOM +150bps 13 Reflecting treatment of hyperinflation in USG as announced in September 2019
Slide 14: Innovation highlights
Innovation highlights Leading technology On-trend categories Market development 14
Slide 15: Asia / AMET / RUB
Asia / AMET / RUB FY ‘19 Turnover USG 6.0% 6.0% 6.3% 5.6% 2.1% €24.1bn UPG UVG FY USG 5.0% FY UVG 2.7% '18 Q4 '19 Q1 '19 Q2 '19 Q3 '19 Q4 15
Slide 16: Latin America
Latin America FY ‘19 Turnover USG 3.1% 2.4% 11.6% 3.2% 3.8% €7.1bn UPG UVG FY USG 5.1% FY UVG 0.0% '18 Q4 '19 Q1 '19 Q2 '19 Q3 '19 Q4 16 Reflecting treatment of hyperinflation in USG as announced in September 2019
Slide 17: North America
North America FY ‘19 Turnover USG 0.4% 0.4% (0.2)% 0.3% 0.6% €9.4bn UPG UVG FY USG 0.3% FY UVG (0.4)% '18 Q4 '19 Q1 '19 Q2 '19 Q3 '19 Q4 17
Slide 18: Europe
Europe FY ‘19 Turnover USG 0.8% 0.7% (1.6)% (0.3)% (0.8)% €11.4bn UPG UVG FY USG (0.6)% FY UVG 0.3% '18 Q4 '19 Q1 '19 Q2 '19 Q3 '19 Q4 18
Slide 19: 2019: Full year turnover
2019: Full year turnover USG +2.9% 0.7% 1.6% (3.0)% 1.5% 1.2% A & D (2.3)% €52bn €51bn 19 Reflecting treatment of hyperinflation in USG as announced in September 2019
Slide 20: 2019: Underlying operating margin
2019: Underlying operating margin +0bps +20bps +30bps 19.1% 18.6% +50bps Increase in spend of €70m in constant currencies 20 All numbers on an IFRS 16 basis
Slide 21: 2019: Underlying earnings per share
2019: Underlying earnings per share +0.1% (0.6)% 2.3% (2.8)% +2.6% +6.5% €2.55 €2.35 Underlying EPS +8.1% 21 All numbers on an IFRS 16 basis
Slide 22: 2019: Cash flow and balance sheet
2019: Cash flow and balance sheet Free cash flow Cash conversion Net debt ROIC Free Cash Flow Net debt/EBITDA 110% 19.2% 18.1% 1.9x 103% €6.1bn +€0.7bn €23.1bn vs 2018 2018 2019 Net debt 2018 2019 22 All numbers on an IFRS 16 basis
Slide 23: Alan Jope
Alan Jope Unilever Full Year 2019 Results 30th January 2020
Slide 24: Progress against strategic plan
Progress against strategic plan USG in 3-5% range 3% CAGR 2017-19 Simpler, faster organisation Closer to the markets, delayered Accelerated margin progression UOM 16.4% → 19.1%, >€6bn savings 2017-19 Faster portfolio evolution 34 acquisitions and 14 disposals since 2015 Preference shares cancelled,
Slide 25: 2020 fundamentals of growth
2020 fundamentals of growth Mental and physical availability in key cells 1 Product superiority Decisive choices 2 Focused channel teams Portfolio 3 review 100% product & purpose integration 4 €2bn+ savings p/a 5 25
Slide 26: Future growth categories
Future growth categories Health, wellness, Luxury beauty personal nutrition Focus skin care Focus VMS 26
Slide 27: Global tea
Global tea 27
Slide 28: 2020 outlook
2020 outlook • First half USG improvement versus Q4 • Full year USG in lower half of 3-5% multi-year range • Continued progress towards 20% UOM • Strong cash flow 28
Slide 29: Unilever Full Year 2019 Results
Unilever Full Year 2019 Results Alan Jope & Graeme Pitkethly 30th January 2020