Unilever Plc · LSE:ULVR
Unilever — FY2014 Earnings Presentation
22 slides from Unilever's earnings presentation, Jan 20, 2015
Slide 1: Unilever Full Year 2014 Results
Unilever Full Year 2014 Results Paul Polman / Jean-Marc Huët 20th January 2015
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 aS _ a Ss ae = Pe Yr Dove : . “\y ‘
Slide 4: 2014: Competitive and profitable growth
2014: Competitive and profitable growth Growth ahead of our Improved core operating Strong free cash flow markets margin Underlying sales growth Adjusted for tax on disposals 2.9 % € 3.9 bn + + 40 bps + 60 % € 3.1bn Winning share As reported Consistent delivery of top and bottom line growth over 6 y
Slide 5: 2014: A very tough environment
2014: A very tough environment Unstable currencies Reduced consumer spend Volatile environment vs. € rebased to 100 Expenditure growth (%) India 8% Indonesia Argentina 4% S Africa Russia Brazil 0% Russia Jan ‘14 Dec ‘14 2012 2013 2014 Source: Oxford Economics
Slide 6: Building the long-term pillars of growth
Building the long-term pillars of growth Investing in brands Investing in operations Investing in people Top 50 FMCG brands Extending distribution 11 + Unilever brands Source: Kantar Worldpanel 2014 South East Asia: €500m opportunity Management development
Slide 7: Continuing to strengthen the portfolio – e.g. Camay and Zest
Continuing to strengthen the portfolio – e.g. Camay and Zest Complementary brands Expanding PC in Mexico Turnover +23% PC PC €3.9bn Pre-deal Post-deal
Slide 8: Making choices for sustainable top and bottom line delivery
Making choices for sustainable top and bottom line delivery USG +2.9% +2.1% Q4 2014: volume growth disappointing De-stocking in China similar to Q3, largely complete Price High competitive intensity, especially in Personal Care Volume Discipline in activities and costs FY Q4
Slide 9: Jean-Marc Huët
Jean-Marc Huet ~ a ~_ ao Ss pie = Pe baby Ya Dove q y \ ¥
Slide 10: Turnover: Full year 2014
Turnover: Full year 2014 + 1.0% + 1.9% (0.9)% (4.6)% USG +2.9% €49.8bn €48.4bn (2.7)% Turnover 2013 Vol/mix Price M&A FX Turnover 2014
Slide 11: Core operating margin up 40bps despite FX headwinds
Core operating margin up 40bps despite FX headwinds (20) bps 0bps +60 bps 14.1% 14.5% COM 2013 Gross margin Brand & marketing Overheads COM 2014 investment
Slide 12: Category contribution to operational performance
Category contribution to operational performance Personal Care Foods Refreshment Home Care Growth 3.5 % 0.6 % 3.8 % 5.8 % Margin 90 bps 90 bps 30 bps 10 bps
Slide 13: Core EPS up 2% despite FX headwinds
Core EPS up 2% despite FX headwinds +8.9% +1.1% +1.5% +0.4% (1.0)% (8.9)% €0.16 +11% at constant rates €1.58 €1.61 Core EPS Operational Minorities Leverhulme Other Tax FX Core EPS 2013 Performance 2014
Slide 14: Delivering strong cash flow
Delivering strong cash flow Strong cash delivery Improving working capital Investing in capex 2014 free cash flow Average trading working capital Capex % turnover Adjusted for tax on disposals 4% -3.2% -3.8% -5.0% € 3.9 bn 45 3% 2% 2012 2013 2014 2005 2009 2014
Slide 15: 2014: Balance Sheet
2014: Balance Sheet Net debt €9.9bn Pension deficit Up €1.4bn €3.6bn Up €1.6bn Cash contribution to pensions €650m Quarterly dividend per share 2015 circa €700m €0.285
Slide 16: Paul Polman
Paul Polman aS _ a Ss ae = Pe Yr Dove : . “\y ‘
Slide 17: Still scope to drive efficiencies
Still scope to drive efficiencies Supply chain savings Overheads improvement Reduction in advertising production costs Annualised savings Realised in 2014 % of advertising spend 32% 20% €1bn+ > €250m 2010 2014 Boosted by LCBM Similar savings in 2015 Focus on digital in 2015
Slide 18: Driving sharper Category choices
Driving sharper Category choices Home Care Spreads Sustain growth, Stabilize turnover, double COM sustain strong cash flow
Slide 19: Improving operational discipline
Improving operational discipline Improved product quality Improved on-shelf Investment in Supply Chain availability and IT Beating competition + 900 bps ~ 60 % 2009 2014 Still plenty of scope for sharper execution
Slide 20: Continuously adapting the portfolio
Continuously adapting the portfolio Foods Home Care Increasing presence in more premium segments Targeting acquisitions in Personal Care Limited disposals of non-core brands Addressing new growth opportunities in Foods Personal Care Refreshment
Slide 21: 2015 priorities
2015 priorities Volume growth ahead of our markets Steady and sustainable improvement in core operating margin Strong cash flow
Slide 22: Unilever Full Year 2014 Results
Unilever Full Year 2014 Results Paul Polman / Jean-Marc Huët 20th January 2015