Slide 1: Unilever Full Year 2016 Results
Unilever Full Year 2016 Results Paul Polman / Graeme Pitkethly 26th January 2017
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: Paul Polman
Paul Polman Oe
Slide 4: Challenging markets
Challenging markets Weak Economies Country-specific volatility 2016 GDP growth downgraded Volatility in Russia, Turkey 2.6% Devaluation- 2.3% led cost increases in UK Demonetisation in India Q4'15 Q4'16 Economic crisis Weakest since 2009 in Brazil Source: Oxford Economics
Slide 5: 4G growth: Consistent, Competitive, Profitable, Responsible
4G growth: Consistent, Competitive, Profitable, Responsible Consistent Competitive Business wining share +4.3% +4.1% +3.7% +2.9% 60% turnover 2013 2014 2015 2016 Underlying Sales Growth Nielsen market value share Profitable Responsible Core Sustainable Operating Margin living brands +50bps 40% faste
Slide 6: Strengthening fundamentals
Strengthening fundamentals Strong brands Efficient supply chain Engaged people Top 50 leading FMCG brands Customer Service at an Employee engagement well all time high above benchmark 91% 12 83% brands 7 Further improvement in brands Working Capital Unilever Nearest competitor Unilever Source: Kanta
Slide 7: Further progress against Category priorities
Further progress against Category priorities Personal Care: USG +4.2% Foods: USG +2.1% Building premium Accelerated growth Brands 2.1% >120 index 1.5% (0.6%) 30% 2014 2015 2016 % 2016 turnover USG% Home Care: USG +4.9% Refreshment: USG +3.5% Improved margins Improved ROIC in Ice Cream 9.7% +130bps 6
Slide 8: Innovating with global scale
Innovating with global scale Differentiating technology Scaled faster Magnum Double Reverse Conditioning Rexona Anti-Bac Sunsilk 50 markets 15 markets Dry Spray Deodorants Surf Sensations Hellmann’s Squeeze CIF Power & Shine 30 markets 15 markets
Slide 9: Innovating in high-growth segments
Innovating in high-growth segments Knorr Meal-Makers Dove Men+Care AXE Find Your Magic NATURALS MALE GROOMING Ayush Matcha Ben & Jerry’s Hellmann’s Non-Dairy Vegan FREE FROM Neutral detergent
Slide 10: Innovating with speed and agility
Innovating with speed and agility From idea to launch in: TRESemmé Botanique Omo Progress Lipton tea capsules Hellmann’s BBQ 10 months 9 months 9 months 6 months Lux Luminique Domestos Power 5 Carte D’Or Gelato Kuner sour cream 5 months 5 months 4 months 3 months
Slide 11: Evolving the portfolio and developing new channels
Evolving the portfolio and developing new channels New segments New channels Prestige Plant-based Male grooming Purifiers
Slide 12: Winning in a connected world
Winning in a connected world On-trend innovation, delivered faster Driving the core Evolving the portfolio Developing channels Penetration High-growth segments Channel differentiation Enabled by: Net Revenue Management Zero Based Budgeting Digital 2.0 Faster, more agile and stronger Unilever
Slide 13: Aligning reward to performance and long-term objectives
Aligning reward to performance and long-term objectives Proposal for the AGM in April Increased share ownership Business performance Long-term objectives Annual targets unchanged Co-investment plan 5 year performance horizon Greater incentive to invest USG USG COM Core EPS Extend to all managers
Slide 14: Graeme Pitkethly
Graeme Pitkethly Cae?
Slide 15: FY 2016: Underlying sales growth of 3.7%
FY 2016: Underlying sales growth of 3.7% USG +3.7% 0.6% 2.8% (5.1%) 0.9% €53.3bn €52.7bn 2015 UVG UPG M&A FX 2016 Turnover Turnover
Slide 16: Managing through volatility
Managing through volatility De-monetisation in India Economic crisis in Brazil Disruptive cost increases 8th November Increasing unemployment Currency devaluation vs. $ Jan’16 12% British Pound c. -20% 8% c. -20% Turkish Lira Egyptian Pound c. -60% Q1’15 Latest Commodities increasing Price vs. Jan’1
Slide 17: FY 2016: Core Operating Margin up 50bps to 15.3%
FY 2016: Core Operating Margin up 50bps to 15.3% +40bps (40bps) +50bps 15.3% +50bps 14.8% 2015 Gross Margin Brand & Marketing Overheads 2016 Investment
Slide 18: FY 2016: Core Earnings Per Share
FY 2016: Core Earnings Per Share Core EPS up 7% at constant rates 0.1% (1.5%) +3.1% 0.7% (3.7%) +3% +7.5% €1.88 €1.82 2015 Operational JVs, associates, Financing, Tax Currency 2016 performance other income, number of minorities shares
Slide 19: Another year of strong cash delivery
Another year of strong cash delivery Free Cash Flow Working Capital Capex Average working capital % turnover Capex % turnover -3.8% Catch-up -5.0% 4% €4.8bn -6.1% 3% Steady- state -6.6% Under- investment 2% 2013 2014 2015 2016 2005 2009 2016
Slide 20: Balance Sheet
Balance Sheet Net debt Pensions deficit € billions € billions 12.6 11.5 3.2 2.3 Dec'15 Dec'16 Dec'15 Dec'16
Slide 21: Priorities remain unchanged
Priorities remain unchanged Priorities Outlook Volume growth ahead of markets Growth: Slow start • Progressive improvement in market conditions Further increase in COM • Later Easter, 1 less day in Q1 Margin: Improvement back-weighted Strong Cash Flow • Commodities & restructuring higher i
Slide 22: Unilever Full Year 2016 Results
Unilever Full Year 2016 Results Paul Polman / Graeme Pitkethly 26th January 2017