Unilever Plc · LSE:ULVR
Unilever — Investor Day (2017)
35 slides from Unilever's investor day presentation, 2017
Slide 1: Amanda Sourry, President of Foods; Kevin Havelock, President of Refreshment
Amanda Sourry, President of Foods Kevin Havelock, President of Refreshment Foods President
Slide 2: World class Foods & Refreshment business
World class Foods & Refreshment business Compelling scale Strengthened organisation Reengineered cost base Turnover Underlying Operating Margin • More dynamic allocation of Other resources +500bps Tea • Better integrated Global Ice and Europe teams 21% € 20+ Cream 16% €20bn Unilever • Co-location wi
Slide 3: Powerhouse of global and local brands
Powerhouse of global and local brands 5 brand families with €1 bn+ retail sales Global leader in Savoury, Mayonnaise, Ice Cream and Tea
Slide 4: Integration of Foods and Refreshment on track
Integration of Foods and Refreshment on track • Organisation designed • Leadership announced • Spreads disposal process on track • Relocation to the Netherlands starting from January 2018
Slide 5: Slide 5
Slide 6: A more focussed, more competitive Foods business
A more focussed, more competitive Foods business More focussed More emerging markets More competitive Global market share gain since 2014* +165 bps +90 bps Divested €2.9 bn 44% of the business of non-core businesses (incl. Spreads) Savoury Dressings *AC Nielsen value share, MAT Sep’17 vs 2014, categ
Slide 7: Delivering a step-up in underlying sales growth
Delivering a step-up in underlying sales growth Foods USG, % Savoury and Dressings momentum 2.5% 2016 USG, % 2.0% 1.5% Savoury +5% 1.0% Dressings +6% 0.5% Spreads -5% 0.0% 2014 2015 2016 Foods +2% -0.5%
Slide 8: Foods strategic framework
Foods strategic framework The Sustainable Nutrition Company Growing the core Evolving the portfolio Developing channels Emerging markets Portfolio modernisation Purpose led brands Mobile first Targeted savings programmes: ZBB, 5S Further enabled by world class Foods & Refreshment Organisation
Slide 9: Growing the core: Emerging markets
Growing the core: Emerging markets Consistent growth G-Local execution Unilever Foods > 7% Unilever USG 2013-16 CAGR Deep Unilever route-to-market capabilities Fully empowered Country Category Business Teams
Slide 10: Growing the core: Turkey Savoury example
Growing the core: Turkey Savoury example Core Future Core Knorr Bouillon relaunch Launch of Knorr Liquid Soups Value share +650bps Sep’17 YTD* Building a new segment *Source: AC Nielsen
Slide 11: Evolving the portfolio: Developed markets
Evolving the portfolio: Developed markets Momentum segments On-trend renovation and innovation
Slide 12: Evolving the portfolio: Knorr
Evolving the portfolio: Knorr Knorr USG CAGR 4% (2015-YTD)
Slide 13: Evolving the portfolio: Hellmann's
Evolving the portfolio: Hellmann’s Global value share gain >150bps* since 2014 *AC Nielsen, Sep’17 MAT vs 2014, categories & geographies where UL is represented
Slide 14: Acting with speed and at scale
Acting with speed and at scale Hellmann’s Relaunch Liquid Bouillon Mono Spices Chilled Ready Meals Global Europe Poland Netherlands Launched in 6 months 6 months Licensing 28 markets idea to launch idea to launch model
Slide 15: Building brand love in a connected world
Building brand love in a connected world Brands with purpose Talent and capabilities Mobile first thinking
Slide 16: Evolving the portfolio: Acquisitions
Evolving the portfolio: Acquisitions
Slide 17: Developing channels: Drive growth in out-of-home
Developing channels: Drive growth in out-of-home Foodservice expertise Digitally-led Building brands From: To: €2.5 billion turnover, 5% USG CAGR
Slide 18: Delivering value
Delivering value ▪ More growth • From emerging markets • From on-trend innovations • From acquisitions (and disposals) • From channels ▪ Lower costs providing fuel for reinvestment and margin expansion
Slide 19: Refreshment: Kevin Havelock
Refreshment Wi BaD Kevin Havelock Unilwe
Slide 20: Refreshment: Strong growth
Refreshment: Strong growth Refreshment Tea Ice Cream Refreshment USG% Tea USG% Ice Cream USG% 5.6% 5.6% 5.1% 4.8% 4.2% 2.4% 14-16 CAGR Sep YTD 14-16 CAGR Sep YTD 14-16 CAGR Sep YTD
Slide 21: Ice Cream value creation through improved ROIC
Ice Cream value creation through improved ROIC Increasing Return on Invested Capital Improving Cash and Gross Margin ROIC 2016 Doubling 16.8% Cash Flow +370bps Gross Margin 2014-2016 +250bps 2014-2017 Cash-led mentality: sweating of assets, C4G, ZBB
Slide 22: Ice Cream: strong growth to win decisively
Ice Cream: strong growth to win decisively Ice Cream Value Market Share trend 17.3% 6.4% 4.9% Source: GMA, Nielsen, Euromonitor
Slide 23: A re-set of our Tea portfolio for growth
A re-set of our Tea portfolio for growth Leading player Accelerating Core portfolio New Premium brands Leaf & Instant Tea Concepts Ready for launch Benefits 21.2% 7.4% 6.8% Green & Flavour Herbals Ready to Drink Tea Core 21.9% 10.8% Value Filling in key need-states and premium spaces with new brands
Slide 24: Accelerating on-trend brands and innovation
Accelerating on-trend brands and innovation Core Premiumise Occasions Channels
Slide 25: Growing the Core
Growing the Core Brands with Purpose Core Renovation Market Development x3 faster growth for markets Lipton doubling growth YOY +20% snacking growth in SEAA
Slide 26: Growing the Core: Winning with Repeatable Models
Growing the Core: Winning with Repeatable Models Tea Flywheel Ice Cream Flywheel Cannes Global Activation Invest to Invest in 10% deliver market of portfolio to growth rate & drive faster/ margin target higher margin Fast Value AND 10% of portfolio Volume growth to drive fast with good volume margin
Slide 27: Evolving the Portfolio: Beautiful new Tea brands
Evolving the Portfolio: Beautiful new Tea brands
Slide 28: Evolving the Portfolio: Ice Cream
Evolving the Portfolio: Ice Cream Premiumising Snacking 2.0 Winning in H&W 34% of Portfolio €450m opportunity No.1 Health & Wellness
Slide 29: Developing Channels: Going where the Growth is
Developing Channels: Going where the Growth is Grocery Online ICNow.com Retail D2C Ice Cream growing OOH +6% (CAGR) 14-16 60% of Refreshment growth outside of Traditional/Supermarket Channels
Slide 30: Leading with Icecreamnow.com
Leading with Icecreamnow.com €300m opportunity by 2020
Slide 31: Leveraging Agility and Speed: Global and Local
Leveraging Agility and Speed: Global and Local New Speedboats Roll-outs now +30-50% faster +50% Innovation is local Founder’s mindset In market within 5 months Global and local licences
Slide 32: Driving Margins
Driving Margins Margin-Accretive Innovation 5S Programme Embedded ZBB Implemented Margin accretive innovation with +170bps Gross Margin H1 2017 new formats
Slide 33: Refreshment – Key Messages
Refreshment – 3 Key Messages • Strong Performance • Portfolio enhanced to capitalise on fast growth spaces • Transforming Refreshment for the future through channels
Slide 34: Summary: Building a world class Foods & Refreshment business
Summary: Building a world class Foods & Refreshment business • A €20bn+ F&R business, 7th biggest globally • Strengthened organisation • Re-engineering cost base • Global – local portfolio of powerhouse brands • Integration of Foods & Refreshment well on track
Slide 35: Amanda Sourry, President of Foods; Kevin Havelock, President of Refreshment
Amanda Sourry, President of Foods Kevin Havelock, President of Refreshment Foods President