Unilever Plc · LSE:ULVR
Unilever — Q1 2008 Earnings Presentation
21 slides from Unilever's earnings presentation, April 2008
Slide 1: Unilever Q1 2008 Roadshow
Unilever Q1 2008 Roadshow INDEX - Unilever Q1 2008 Results Highlights 3 Accelerate Restructuring Programme – Simplification 13 Strong Organic Growth 3 Accelerate Restructuring Programme – Progress to Date 13 Growth by Region 4 Innovation Driving Growth 14 Growth by Category 4 Innovation Q1 2008 Oper
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation 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 'expects', 'anticipates', 'intends' or the negative of these terms and other
Slide 3: Q1 Highlights – Strong Organic Growth
Q1 Highlights • Strong organic growth and underlying margin improvement • Sustained marketing investment and determined pricing action • Key innovations drawn from a strong 2008 programme • Productivity and value improvement • Further progress on portfolio Strong Organic Growth Underlying sales grow
Slide 4: Underlying Sales Growth by Region and Category
Underlying Sales Growth by Region America Asia Africa Q1 2008 Q1 2008 USG 6.4% USG 14.2% 31% 33% 36% Europe Q1 2008 USG 2.3% Underlying Sales Growth by Category Ice Cream Home Care and Beverages Q1 2008 Q1 2008 USG 7.8% USG 7.3% 19% 17% 28% 36% Savoury, Dressings Personal Care and Spreads Q1 2008 Q1
Slide 5: Operating Margin Development: Q1
Operating Margin Development: Q1 Q1 2007 Q1 2008 Change Operating margin 13.7% 19.0% 5.3% Including RDIs* (0.9)% +4.1% (5.0)% Underlying change 0.3% Key drivers: A&P +0.1% Savings +2.0% Cost/price/mix (1.8)% * Restructuring, disposals and one-off items Mitigating the impact of commodity costs Commod
Slide 6: Commodity Costs – Crude oil and Edible oils
Commodity Costs – Crude oil Commodity Costs – Edible oils 6
Slide 7: Commodity Costs – Tea and Skim Milk Powder
Euro or USD 01 /0 1 01 /20 0 1000 2000 3000 4000 5000 6000 /0 05 3/ 01 20 /0 05 5 SMP Germany 01 /200 /0 7 5 01 /200 /0 9 5 01 /20 /1 05 1 01 /200 SMP France /0 1 5 01 /20 /0 06 3 01 /20 /0 06 5/ 01 200 /0 7 6 01 /200 /0 Commodity Costs - Tea 9 6 01 /20 /1 06 1 01 /200 /0 1/ 6 01 20 /0 07 3 SMP Ocea
Slide 8: Business Priorities and 2008 Outlook
Business Priorities 1. Maintain competitiveness 2. Drive for sustainable margin improvement 3. Invest selectively to gain market share 2008 Outlook 2008 to mark a further step towards our 2010 goals • 2010 goals • Operating margin > 15% • Consistent, competitive growth at 3-5% p.a. • 2008 Outlook •
Slide 9: Returning cash to shareholders
Returning cash to shareholders 4 30 3,5 25 3 Cash to shareholders (€bn) 20 2,5 Net Debt (€bn) 2 15 1,5 10 1 5 0,5 0 0 2001 2002 2003 2004 2005 2006 2007 Dividends One-off dividend Share buy back Net debt • 7% increase in 2007FY dividend • Share buy-back of at least €1.5bn planned for 2008 • €0.6bn c
Slide 10: Growth Strategy – Strong category positions
Growth Strategy Strong category positions Savoury Spreads Dressings Deodorants World Number 1 Tea Mass Skin Ice Cream Laundry World Number 2 Daily Hair Care Oral Care Local Strength Household Cleaning 10
Slide 11: Big global brands and strategic priorities
Big global brands 12 billion euro + brands Top 25 brands = ¾ of Unilever’s sales Unilever’s strategic priorities Personal Care D&E Vitality 11
Slide 12: Acceleration of Unilever's Growth Agenda – Shaping the portfolio
Acceleration of Unilever’s Growth Agenda • Shaping the portfolio • Simplification • Innovation driving growth Shaping the portfolio Disposals * completed/ announced Brazil Spreads Brands France Cheese US Seasonings Disposal NA Underway Laundry Global JV Extended RTD Tea Indonesia Russia Acquisitions
Slide 13: Accelerated Restructuring Programme
Accelerated Restructuring Programme - Simplification • Organisational simplification • 14 MCOs in place • 4 new MCOs in Europe - Belgium, Netherlands, Luxembourg - UK, Ireland - Germany, Austria, Switzerland - Czech Republic, Hungary • Supply chain rationalisation • Streamline or closure of 14 sites
Slide 14: Innovation Driving Growth
Innovation Driving Growth Rapid roll-outs across key markets Faster deployment of new technologies Transfer of proven mixes Vitality-focused innovation 14
Slide 15: Innovation – Clear
Innovation Clear Complete antidandruff and scalp care regime Centrally developed, identically presented simultaneously across China, Brazil, Russia, Arabia and Turkey 15
Slide 16: Rexona roll-on and Ponds Age Miracle
Upside down Rexona roll-on Introducing the world’s smoothest roll on New Rexona roll-on It won’t let you down Ponds Age Miracle Skin that looks and feels younger A revolutionary range of anti-ageing products designed specifically for the needs of Asian skin 16
Slide 17: Dove Pro.Age and Dove Go Fresh
Dove Pro.Age Beauty has no age limit The first collection of hair, skin and deodorant beauty products designed to reflect the unique needs of women in their later years Dove Go Fresh Campaign for Real Beauty A fragrance-driven collection of products aimed at women in their 20s 17
Slide 18: Comfort Fresh Release and Small & Mighty
Comfort Fresh Release Breakthrough technology to outperform any fabric conditioner present in the marketplace Strategy Do the moves to release the freshness Small & Mighty in Europe A revolutionary 3-times-more concentrated laundry detergent A new breakthrough product with perceivably better cleanin
Slide 19: Knorr Bouillon Gel and Heart Health
Knorr Bouillon Gel Launched in China with local insight into soup preparation Heart Health “Goodness of Margarine” Omega 3 plus pro.activ (Promise activ) Packed with more Spreads, milk, yoghurt omega 3 than any and mini-drinks other spread or clinically proven to minidrink lower cholesterol 19
Slide 20: Hellmann's Light and Lipton
Hellmann’s Light Delicious extra light mayonnaise now with only 3% fat With unique citrus fibre technology Lipton A unique slimming tea twice as rich in catechins to help maintain your silhouette Sustainably sourced tea certified by the Rainforest Alliance 20
Slide 21: Moo and Magnum Temptation
Moo Delicious ice cream for kids with as much calcium as two glasses of milk + + Magnum Temptation An unrivalled multi-sensorial experience using cold roller technology 21