Unilever PLC · LSE:ULVR
Unilever — FY2003 Earnings Presentation
10 slides from Unilever's earnings presentation, Feb 12, 2004
Slide 1: Unilever's 2003 Results Presentation
Unilever’s 2003 Results Presentation Niall FitzGerald 12 February 2004 Certain of the comments and materials in this presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon current expectations an
Slide 2: Sales Performance in 2003
Sales Performance in 2003 Sales Sales Contribution Growth Growth €bn €bn to Sales % % 2002 2003 Growth % Leading Brands HPC 18.8 19.6 4.2% Foods 23.7 24.0 1.2% * Total 42.5 43.6 2.5% 2.2% Non-Leading 6.3 3.8 (39.0%) (5.0%) of which * underlying growth (9.1%) (0.7%) disposals (4.3%) Acquisitions 0.3
Slide 3: Development of Leading Brands: Home & Personal Care and Foods
Development of Leading Brands : Home & Personal Care Leading brands growth % 2000 2001 2002 2003 Personal Care 7.5 9.0 10.8 7.9 (excl. Prestige) Prestige 2.8 (7.2) 1.3 (18.1) Total Personal Care 7.0 7.6 10.1 6.1 Laundry 3.2 5.3 1.9 1.8 Household Care 2.0 7.1 2.6 (1.7) Total HPC 5.3 6.5 6.7 4.2 4 Dev
Slide 4: Reshaping Prestige Fragrances; Returning Slim.Fast to growth
Reshaping Prestige Fragrances We decided market conditions needed a new approach. Under new management we are: l Refocusing the brand portfolio l Introducing a new approach to managing brand equity and innovation l Concentrating on the most profitable trade channels l Taking out costs to release fun
Slide 5: Improvement in Operating Margin in 2003; Q4 performance
Improvement in Operating Margin in 2003 Mix improvement 70 Supply chain savings 40 Selling price/cost changes HPC Foods Price 20 60 Costs (40) (80) (40) Improvement in gross margin 70 A&P (20) Overhead savings 70 Improvement in operating margin 120 basis points 8 Q4 performance u Leading brands grew
Slide 6: 2003 Performance - concluding remarks; Market Performance
2003 Performance - concluding remarks A tough year . . . . . but: l tackled the causes of weakness in Slim.Fast l moving to a more agile business model for Prestige l refocused Household and Frozen towards growth We have also demonstrated our natural resilience: l increased investment behind our bra
Slide 7: Path to Growth: Levers of economic value
Path to Growth: Levers of economic value Levers of Path to Growth Economic Value Portfolio Accelerate top-line improvement growth Focus on leading Free Top brands Boost operating Cash margin 1/3 Simplification Flow TSR Raise operating Growth World class supply asset efficiency chain A competitive En
Slide 8: Driving up operating margin, investing in brands
Driving up operating margin, investing in brands 2004 1995 1999 2003 Target* Operating Margin % (beia) 8.7 11.1 15.7 16.0+ Path to Growth Target Procurement €1.6 billion 4 achieved ahead of time Bestfoods synergy €0.8 billion 4 achieved ahead of time Restructuring benefits €1.5 billion €0.3bn to go
Slide 9: Stepping up growth in cash flow; Path to Growth Scorecard
Stepping up growth in cash flow Net Total free cash flow 2000 to 2003 €16.4 billion Debt 2000* CFO Dividends A&D Capex & 4.7 5.9 Currency Fin Invest. Retranslation 4.1 22.1 Tax 4.4 Net Debt 26.5 2003* Interest 5.4 Other 4.3 12.6 Underlying Tax Rate Cost of Capital Down by 200 bps Down by 100bps *200
Slide 10: What have we learned from Path to Growth
What have we learned from Path to Growth u Reconciling shorter-term performance metrics and longer-term value creation is not easy! u We optimise economic returns by pulling the right combination of levers in any given situation - priorities can, and do, change u We set expectations and we did not g