Unilever Plc · LSE:ULVR
Unilever — Deutsche Bank Global Consumer Conference 2022
33 slides from Unilever's conference presentation, Jun 15, 2022
Slide 1: Unilever at Deutsche Bank
Unilever at Deutsche Bank Graeme Pitkethly & Hanneke Faber Paris, 15th June 2022
Slide 2: Contents
Contents Unilever Overview Graeme Pitkethly Unilever Nutrition Hanneke Faber 2
Slide 3: 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 ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vi
Slide 4: Unilever at a glance
Unilever €52bn 3.4bn #1 people use our CPG employer of choice 2021 turnover products everyday in over 50 markets Ice Cream Beauty & 7bn Wellbeing 10bn Developed Markets Nutrition 42% 13bn Personal Emerging Care Markets 12bn 58% Home Care 11bn 3 190 92% consecutive years in top countries sell our of
Slide 5: Unilever brand and sustainability leadership
Unilever €27bn >80% Top from our €1bn+ brands of turnover increasing of GlobeScan or stable brand power Sustainability Leaders survey for 10 years 4 45 Leader consecutive years as Digital hubs live in in Dow Jones most effective marketer 38 markets Sustainability Index since 2014 5 Note: all figures
Slide 6: 5 clear strategic priorities that are delivering
5 clear strategic priorities that are delivering Win with Move portfolio Accelerate Lead in Future-fit brands and into high USA, India, channels of organisation innovation growth spaces China and EMs the future and culture 8.8% from 13 Prestige: 14%, USA: 8.9% eCom: 27%, New organisation €1bn+ brand
Slide 7: Acquiring majority stake in Nutrafol
Acquiring majority stake in Nutrafol • Announced acquisition in May ’22 • #1 dermatologist recommended hair growth brand in the U.S. • Will become part of our Beauty & Wellbeing Business Group 7
Slide 8: 2022 Priorities
2022 Priorities 1. Sustaining the step-up in growth and competitiveness 2. Navigating through unprecedented cost inflation 3. Delivering the new organisation on 1 July 2022 8
Slide 9: Priority 1: Sustaining the step-up in growth and competitiveness
Priority 1: Sustaining the step-up in growth and competitiveness Underlying Sales Growth 7.3% 4.5% 3.7% 3.2% 2.8% 2.9% 1.9% 2016 2017 2018 2019 2020 2021 Q1 2022 Business Winning (MAT) Underlying Operating Margin 19.1% 58% 18.6% 18.5% 18.4% 51% 53% 53% 17.7% 44% 42% 44% 16.4% 2016 2017 2018 2019 202
Slide 10: Priority 2: Navigating through unprecedented cost inflation
Priority 2: Navigating through unprecedented cost inflation 5-year ranges Net Material UPG % (avg. spot price for each period) Inflation1 €bn Jan Mar Mar ’22 index 2018 2019 2020 2021 ’22 ’22 (vs ’20 at 100) 1,777 4.8 Crude 1,345 8.3% 1,131 Palm 752 236 639 601 ($/mt) 3.6 1,957 4.5% Soybean Oil 1,38
Slide 11: Priority 3: Delivering the new organisation on July 2022
Priority 3: Delivering the new organisation on 1 July 2022 Simpler, faster, more category focused Unilever Corporate Centre Business Groups Beauty & Personal Home Nutrition Ice Cream Wellbeing Care Care Unilever Business Operations 11
Slide 12: Hanneke Faber, Unilever Nutrition
Hanneke Faber Nutrition Business Group President Unilever Nutrition Paris, 15th June 2022
Slide 13: Unilever Nutrition: A €13bn leader with momentum
Unilever Nutrition: A €13bn leader with momentum... Accelerating Growth Competitive Underlying Sales Growth, % % Turnover Winning Value Share 50% 3% 2017 2018 2019 2020 2021 Q1’22 2017 2018 2019 2020 2021 Q1’22 Moving Annual Total Profitable Responsible Underlying Operating Margin Accretive to Unile
Slide 14: A concentrated brand line-up, led by two strong global brands
A concentrated brand line-up, led by two strong global brands Top 2 Brands: almost 60% of turnover including: Horlicks Brooke Bond Unox Bango FY 2021 turnover 14
Slide 15: Knorr: A €4.4bn mega-brand
Knorr: A €4.4bn mega-brand in practically all countries where Unilever operates Large, Very profitable* Large range of scratch >50% Emerging Markets Almost 1/3 steadily growing cooking aids in Food Service Other UFS €4.4bn Accretive Soup Bouillon & Seasonings D EM ‘In Home’ Meal Solution Bouillon Se
Slide 16: Hellmann's: A €1.9bn brand in 70+ countries
Hellmann’s: A €1.9bn brand in 70+ countries Fast growing Stronghold in Weighted towards c. 20% in Food Service Large & Profitable Mayonnaise Developed markets UFS Double EM €1.9bn digit D ‘In Home’ Mayonnaise ‘20-21 CAGR Real Light Vegan Flavoured Mayo Global campaign 16 FY 2021 Financials
Slide 17: Horlicks & Boost: A €0.6bn Functional Nutrition powerhouse
Horlicks & Boost: A €0.6bn Functional Nutrition powerhouse, acquired in 2020 Large Very profitable* Two strong brands India the primary market Boost €0.6bn Accretive Horlicks India Kid’s Nutrition High Science Adult Functional Nutrition 17 FY 2021 financials, *GM accretion to total Nutrition busines
Slide 18: The Vegetarian Butcher: Acquired in 2019 as part of plant-based strategy
The Vegetarian Butcher: Acquired in 2019 as part of our plant-based strategy Geography and Strong exposure to 1 in 3 burgers at Burger King Fast growing product expansion Food service in Belgium is The Veg Butcher Sequential UFS c. 70% white space 2Y CAGR ‘In Home’ entries www.foodservicealliance.be
Slide 19: A global business with good exposure to faster-growing countries and channels
A global business with good exposure to faster-growing countries and channels 55% in Emerging Markets 1/3 outside of Traditional Retail Away from Home c. 20% Developed Emerging (mostly Markets Markets restaurants) Top 5: Top 5: e-commerce Retail c. 70% c. 10% USA India Netherlands China UK Indonesia
Slide 20: ..in a growing market with a dynamically changing landscape
..in a growing market with a dynamically changing landscape Strong trends underpinning market growth …in a global Food System that needs change COOKING Hybrid Work: 2/3 of Companies RENAISSANCE Recipe Inspiration Wanted Hunger increasing (1 Bn) 30% of GHG Emissions Obesity, too UL Nutrition: >50% e-
Slide 21: Our Ambition: 'To be a World-Class Force for Good in Food'
Our Ambition: ‘To be a World-Class Force for Good in Food’ World class = Top third growth & financial performance in the Foods industry Force for Good = Doing well by doing good (for people & planet) 21
Slide 22: Unilever Nutrition: Strategic Priorities
Unilever Nutrition: Strategic Priorities 1. Ever Healthier Portfolio – increasing our exposure to fast-growing spaces 2. Boldly Healthier Core – holistically superior products, superior every day & seasonal execution, leading the industry 3. Powered by the new Organisation – more category focus and
Slide 23: Ever Healthier Portfolio: 80%+ of sales in growing segments
Ever Healthier Portfolio: 80%+ of sales in growing segments* now, up from < 50% in 2018 2018 2021 Out Stagnant or Declining Segments Stagnant or Growing Declining Segments In Segments Growing Segments Turnover Split Turnover Split Future Focus Functional Nutrition Scratch Cooking Aids *Product segme
Slide 24: Boldly Healthier Core: Key for people and planet
Boldly Healthier Core: Key for people and planet Consumers want to eat healthier Companies are expected to act 73% 72% intend to eat healthier feel companies have a big role in the availability and access of healthy food 41% 2 in 3 want to eat more vegetables more likely to buy from companies with a
Slide 25: Boldly Healthier Core: A new product design framework
Boldly Healthier Core: A new product design framework for Holistic Product Superiority New Framework (from 2019) Holistically Superior* Old 75% 88% 2019 2021 *within evaluated products, c.50% of Nutrition turnover 25
Slide 26: Boldly Healthier Core: Recent holistic superiority examples
Boldly Healthier Core: Recent holistic superiority examples Growth & Strong growth Margin Reduce Sugar accretion Tax exposure Less and NO salt NO Sugar More plant based Fortification 26
Slide 27: Boldly Healthier Core: Enabled by world-class R&D expertise
Boldly Healthier Core: Enabled by the world-class R&D expertise Headquarter @ The Hive, the €85m Innovation Centre in the ‘Silicon Valley of Food’ in Culinary the Netherlands Experience Microstructure & Natural Texture Protection Innovative Circular Processing Packaging Positive Nutrition 27
Slide 28: Boldly Healthier Core: Comes to life with outstanding execution
Boldly Healthier Core: Comes to life with outstanding execution - every day In-store Online China Knorr – Local celebrity endorsement as a part of our shoppable content ecosystem 28
Slide 29: Winning every season
Winning every season Ramadan Superbowl BBQ Season 29
Slide 30: Industry-leading Boldly Healthier initiatives
Industry-leading Boldly Healthier initiatives... ‘Future Food’ Commitments Regenerative Agriculture Positive Nutrition • €1 billion plant-based meat and dairy sales (by 2025-27) • Halve food waste in our direct operations by 2025 • 2x the number of products that deliver positive nutrition by 2025 •
Slide 31: The new Unilever organisation is an opportunity for Nutrition
The new Unilever organisation is an opportunity for Nutrition Category focus More empowered and Simpler, Faster, More Agile and domain expertise accountable Direct P&L ownership and resource allocation Direct Supply Chain ownership ‘We are all chefs’ 31
Slide 32: In summary
In summary • We have a very attractive Nutrition business … • … with a transformed portfolio • Our focus on boldly healthier products positions us well for the future • The business will be enhanced by the new organisation 32
Slide 33: Unilever at Deutsche Bank
Unilever at Deutsche Bank Graeme Pitkethly & Hanneke Faber Paris, 15th June 2022
Unilever — Deutsche Bank Global Consumer Conference 2022 on 6ix