Unilever Plc · LSE:ULVR
Unilever — Q3 2012 Earnings Presentation
22 slides from Unilever's earnings presentation, Oct 25, 2012
Slide 1: Unilever Q3 2012 Trading Statement
Unilever Q3 2012 Trading Statement Jean-Marc Huët – CFO James Allison – Head of Investor Relations & M&A October 25th 2012
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’, ‘believes’, ‘vision’, or
Slide 3: Market environment remains challenging
Market environment remains challenging GDP growth revised down Continuous volatility Competitive intensity remains high GDP growth % Brent Crude US$ per barrel World Developed markets 5.1 3.8 $100 3.3 3.0 1.6 1.3 2010 2011 2012 2010 2011 2012 May 2012 October 2012
Slide 4: Broad based, consistent growth ahead of our markets
Broad based, consistent growth ahead of our markets Unilever group Emerging markets Categories Underlying sales growth (%) Underlying sales growth (%) Underlying sales growth (%) YTD 2012 11.5 11.7 10.2 2.0% 9.5 2.2% 6.5 6.6 7.9 4.1 5.5 2.0 2010 2011 YTD 2012 2010 2011 YTD 2012 Personal Food Home Re
Slide 5: Q3 YTD 2012 - Turnover growth 11.1% with positive M&A contribution
Q3 YTD 2012 - Turnover growth 11.1% with positive M&A contribution USG 6.6% 1.5% 2.6% 3.5% 3.0% €38.8bn €34.9bn Turnover Vol/Mix Price FX M&A Turnover Q3'11 YTD Q3'12 YTD
Slide 6: Q3 2012 - Turnover growth 10.3%, balanced volume / price contribution
Q3 2012 - Turnover growth 10.3%, balanced volume / price contribution USG 5.9% 0.1% 4.1% 2.4% 3.4% €13.4bn €12.1bn Turnover Q3'11 Vol/Mix Price FX M&A Turnover Q3'12
Slide 7: Q3 2012 – Emerging markets: consistent double-digit growth
Q3 2012 – Emerging markets: consistent double-digit growth Underlying sales growth (%) Emerging markets % turnover 13.1 12.3 11.9 12.1 55 10.6 11.0 9.9 48 8.4 7.6 43 32 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 2002 2006 2008 2012 YTD Broad based growth – no country accounts for more tha
Slide 8: Personal Care: strong momentum continues
Q3 2012 - Personal Care: strong momentum continues Roll out Clear – Australia (%) 8.0 Volume led growth 5.6 Strong momentum in Hair: Innovation and white spaces 2.3 Deodorants value shares up: Achieving record highs USG Volume Price Now in 43 markets
Slide 9: Foods: sales impacted by performance in Spreads
Q3 2012 - Foods: sales impacted by performance in Spreads Brazil - Hellmann’s 50 years (%) 1.0 Spreads volumes are down: Impact of relative pricing -0.4 Dressings performing well -1.4 Volume shares are broadly flat USG Volume Price Stable underlying sales growth +2.0% year-to-date
Slide 10: Home care: broad based growth across our markets
Q3 2012 - Home care: broad based growth across our markets re-launch (%) 11.0 Strong volume and value share gains Growth driven by: 7.0 Improved product quality 3.8 Innovation Market development USG Volume Price Into more than 20 markets
Slide 11: Refreshment: Ice Cream driving growth in the category
Q3 2012 - Refreshment: Ice Cream driving growth in the category Launch of Ice Cream Pints – Europe (%) Ice Cream strong growth driven by: 6.8 Innovation 3.3 3.4 White space: Magnum Philippines Beverages grew mid-single digit: Driven by emerging markets USG Volume Price But still more to
Slide 12: James Allison, Head of Investor Relations & M&A
James Allison Head of Investor Relations & M&A
Slide 13: Asia / AMET / RUB: 5th successive quarter of double-digit growth
Q3 2012 – Asia / AMET / RUB: 5th successive quarter of double-digit growth (%) Double-digit growth across the majority of countries 10.7 Volume and value share gains across most markets 6.2 Strong momentum in Home and Personal care 4.3 Employer brand strengthening across the region: Now #2
Slide 14: Americas: growth driven by Latin America
Q3 2012 - Americas: growth driven by Latin America (%) North America underlying sales growth -3.5% 4.7 In line with market growth after adjusting for sales brought forward last year 3.4 Share gains in Personal care, Foods down for the quarter 1.2 Latin America +13.7% USG, with a good balance
Slide 15: Europe: modest growth driven by volume
Q3 2012 - Europe: modest growth driven by volume (%) 2.1 Economic situation remains difficult, particularly in Southern Europe 0.9 Growing in line with the market Continuing to innovate across all categories -1.2 USG Volume Price Europe underlying sales growth +1.0% year-to-date
Slide 16: Europe: innovation at different points of the price pyramid
Q3 2012 - Europe: innovation at different points of the price pyramid Premium range: Value range: Value range: Dove Men+Care Face in UK Cornetto Packs in Southern Europe Elais in Greece
Slide 17: M&A: improving the growth profile of Unilever
M&A: improving the growth profile of Unilever Sara Lee : Radox roll-out across CEE Concern Kalina growing double-digit N.A. Frozen Food disposal completed Value share change bps (L12w) 190 90 60 Hair Face Oral
Slide 18: Alberto Culver fully integrated - TRESemmé roll-out continues
Alberto Culver fully integrated - TRESemmé roll-out continues Brazil – Q4 2011 India – Q2 2012 Indonesia - Q3 2012
Slide 19: Jean-Marc Huët CFO
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Slide 20: We continue to invest in a challenging environment
We continue to invest in a challenging environment Product quality ~€100m p.a. Capital expenditure up 100bps A&P : Investing behind our brands Turnover % Since 2008 €1bn 4.2 3.8 + 3.2 incremental A&P 2009 2010 2011
Slide 21: Our priorities remain unchanged
Our priorities remain unchanged 1. Volume growth ahead of the market 2. Steady and sustainable core operating margin improvement 3. Strong cash flow
Slide 22: Unilever Q3 2012 Trading Statement
Unilever Q3 2012 Trading Statement Jean-Marc Huët – CFO James Allison – Head of Investor Relations & M&A October 25th 2012