Pt Unilever Indonesia Tbk · IDX:UNVR
Pt Unilever Indonesia Tbk — Q3 2022 Earnings Presentation
29 slides from Pt Unilever Indonesia Tbk's earnings presentation, Oct 27, 2022
Slide 1: PT Unilever Indonesia Tbk. Q3 2022 Earnings Call
PT Unilever Indonesia Tbk. Q3 2022 Earnings Call: Oct 27th, 2022
Slide 2: Call participation guidelines
1 2 3 4 1. Type questions in chat box 2. Raise hand (if you wish to ask directly) 3. Video always in “off-mode” (unless allowed by moderator) 4. Always on-mute (unless allowed by moderator)
Slide 3: Safe Harbour Statement
Safe Harbour Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar
Slide 4: Ira Noviarti, President Director
Ira Noviarti President Director of Unilever Indonesia
Slide 5: Macro outlook shows resilience despite high inflationary environment
Macro outlook shows resilience despite high inflationary environment Indonesia GDP remains resilience at 5% driven by Inflation rate was rising in Sep 2022 due Inflation has impacted to consumers domestic consumption. to the fuel price increase spending Consumer Confidence Index is deemed steady… 12
Slide 6: The move to reduce the subsidy will be unpopular
The move to reduce the subsidy will be unpopular, but it may well generate Indonesia considerable economic benefits over the long run as it removes inefficiency
Slide 7: Unilever Indonesia: Q3 Performance Summary
UNILEVER INDONESIA : Q3 PERFORMANCE SUMMARY ULI Net sales grew +2.3% and EPS -11.4% in Q3, including impact of reduced trade-in-stock 1 level. Domestic selling-out grew at 7.1%. Total Corporate market share was increasing in the last 3 months, both in value and 2 volume, compared to previous 3 month
Slide 8: Consistent & Profitable Growth, Competitive Growth
Total Corporate market share is increasing, with 65% of business gaining ULI share in the L3M Consistent & Profitable Growth Competitive Growth Q3’22 9M’22 Total Corporate Market share was increasing in L3M Domestic Sell-Out Growth +7.1% ULI VALUE & VOLUME SHARE Value Share Volume Share Net Net Sale
Slide 9: Five Strategic Priorities
Focusing on Five Strategic Priorities has led us to do the right things ULI 1. 2. Strengthen & Unlock Developing our full 3. 4. Core with Market E-everything, portfolio play Build the execution Development including Data across consumers' powerhouse program & impactful Driven Capabilities segment in
Slide 10: 1. Strengthen & Unlock Core
1. Strengthen & Unlock Core ULI Drive Market Development MORE USERS MORE USAGE MORE BENEFIT Bango Hitam Gurih Penetration +120bps 9.1mn pieces sold since launched Lifebuoy Liq. 5k Total Royco Ayam Pepsodent Core+ Natural Penetration Consumption per HH +3.8% +190bps Spending per Buyers Volume Share i
Slide 11: Spend Behind Media To Strengthen The Brand
1. Strengthen & Unlock Core ULI Spend Behind Media To Strengthen The Brand +35% Media Spending YTD Sep’22 88% Green TVC Airing A&P as % of Net Sales 8.0% 7.3% 6.8% 5.8% 5.6% 5.5% 5.5% 4.7% 4.4% 4.3% 4.0% 4.1% 2.9% 2.5% 2018 2019 2020 2021 Q1'22 Q2'22 Q3'22 Advertising Promotion
Slide 12: Five Strategic Priorities
Five Strategic Priorities ULI 1. 2. Strengthen & Unlock Developing our full 3. 4. Core with Market E-everything, portfolio play Build the execution Development including Data across consumers' powerhouse program & impactful Driven Capabilities segment innovation
Slide 13: 2. Play Full Portfolio
2. Play Full Portfolio ULI Drive Premiumization Serve Value Segment 7.7% USG in YTD 2022 7.6% USG in YTD 2022 25% Contribution to total ULI TO *TO of SKU in API 120+ *TO of SKU in API <80 and coinage price GT
Slide 14: Five Strategic Priorities
Five Strategic Priorities ULI 1. 2. Strengthen & Unlock Developing our full 3. 4. Core with Market E-everything, portfolio play Build the execution Development including Data across consumers' powerhouse program & impactful Driven Capabilities segment innovation
Slide 15: 3. Be the Execution Powerhouse: Turbocharge dCommerce
3. Be the execution Powerhouse ULI TURBOCHARGE dCOMMERCE Unilever Indonesia dCommerce: +50% Growth in Q3 DESIGNED 4 ECOMM PORTFOLIO Across Business Unit CREATE & CAPTURE DEMAND • Best in class execution to win in Mega Campaigns • Turbocharged eB2B growth through emerging partners (53K Monthly Active
Slide 16: Channel Transformation Journey
3. Be the execution Powerhouse ULI CHANNEL TRANSFORMATION JOURNEY Phase 1 – FUTURE FIT DT Phase 2 – TRADE STOCK REDUCTION H2 2021 - 2022 Q3 - Q4 2022 ❑ Scale Up Business Model DT Growth 0.5% -5.1% 9.9% YTD Future Fit DT and MT Channels 18% 12% Higher agility and innovation speed to 568 520 472 the m
Slide 17: Five Strategic Priorities
Five Strategic Priorities ULI 1. 2. Strengthen & Unlock Developing our full 3. 4. Core with Market E-everything, portfolio play Build the execution Development including Data across consumers' powerhouse program & impactful Driven Capabilities segment innovation
Slide 18: 4. Data Driven Capabilities: The Transformation Pillar
4. Data Driven Capabilities ULI THE TRANSFORMATION PILLAR Edge-to-edge Enabled By Simplified, Outcome- Focused Partnership that Integration Connected Through Organization unlock value Process Technology BE THE GAME CHANGER IN E2E CUSTOMER OPERATION 2022: Automation. Consolidation. Billing Automation
Slide 19: Vivek Agarwal, Chief Financial Officer
Vivek Agarwal Chief Financial Officer of Unilever Indonesia
Slide 20: The Strong Performance Continues in Q3
The Strong performance continues in Q3 ULI Sales Gross Margin Net Profit Growth of Net Sales Reported GM Reported Net Profit +2.3% Q3 2022 45.6% IDR 1.2 Tn Q3 2022 Q3 2022 -3.6% -11.4% 9M 2022 +5.0% 9M 2022 47.4% 9M 2022 IDR 4.6 Tn -2.9% +5.3% Q3 Domestic Sell-Out Pressure from commodity Continue in
Slide 21: Profit and Cash Flow 9M 2022
Profit and Cash Flow 9M 2022 ULI Strong cashflow Net Profit 9M 2022 EPS 9M 2022 delivery in 9M 2022 IDR 4.6 T IDR 121 +5.3% REPORTED* IDR 115 IDR 6.1 T *Include One-Off Adjustment from +27% y-o-y 2021 Central Service Fee 9M'21 9M'22 Maintain profit despite high commodity inflation and stepping up in
Slide 22: 2022 Domestic Sales Growth by Division
2022 Domestic Sales Growth by Division ULI BEAUTY & PERSONAL FOODS & UNILEVER FOODS HOME CARE CARE REFRESHMENT SOLUTION Q3 YoY 3.1% Q3 YoY -5.2% Q3 YoY 2.5% Q3 YoY 56.9% 9M YoY 6.8% 9M YoY -0.7% 9M YoY 5.9% 9M YoY 31.4% TOTAL HPC TOTAL F&R Q3 YoY 0.4% | 9M YoY 4.2% Q3 YoY 4.9% | 9M YoY 7.2%
Slide 23: Beauty and Personal Care
Beauty and Personal Care ULI Result Summary Superior Products Play Full Portfolio • USG Q3 +3.1% | Sell-out growth +5% • High single digit growth in Skin Care and continue strong growth in Deo. • Competitive growth in BPC where total BPC gaining market share in L3M compared to P3M. • Continue focus
Slide 24: Home Care
Home Care ULI Result Summary Superior Products Play Full Portfolio • USG Q3 YoY -5.2% | Sell-out growth +11% • Double-digit sales growth in Fabric Cleaning led by price and volume growth. • Growth competitively with total HC gaining more than 250bps market share supported with share growth in Fabric
Slide 25: Foods & Refreshment
Foods & Refreshment ULI Result Summary Superior Products Play Full Portfolio • USG Q3 +2.5% | Sell-out growth +4% • Continue strong growth in Savoury. • Sustaining market leadership in Foods. • Ice Cream continues to face challenge and several actions to address the Market Development Purposeful Inn
Slide 26: Unilever Foods Solution
Unilever Foods Solution ULI Result Summary Improved Penetration Design for Channel • USG Q3 +57% | Sell-out growth +57% • Riding on market recovery with strong reach & penetration drive, offline and online. Customer cooking demos/ ideation 87 internal New customers & menu in Chain Restaurants team’s
Slide 27: Q3 Profit Before Tax
Pressure in Gross Margin partly offset with savings from other P&L lines ULI Q3 Profit Before Tax • Gross Margin pressure continues, balancing between material inflations, consumer price competitiveness dan savings. • Continue our commitment to step up Advertising, SOV>SOM. • Reduced gift and red pr
Slide 28: Looking ahead
Looking ahead ULI View of Q4 2022 View of 2023 We remain cautiously optimistic in the near term: Continue our growth momentum ➢ Normalization of economic activities and hunt for competitive growth. and mobility. Our ambition to grow faster compared to market growth. ➢ Sell-out growth outpace market
Slide 29: Thank you
Thank you Ira Noviarti (President Director), Vivek Agarwal (CFO)
PT Unilever Indonesia — Q3 2022 Earnings Presentation on 6ix