Unilever Plc · LSE:ULVR
Unilever — H1 2020 Earnings Presentation
28 slides from Unilever's earnings presentation, Jul 23, 2020
Slide 1: Unilever Half Year 2020 Results
Unilever Half Year 2020 Results Alan Jope & Graeme Pitkethly 23rd July 2020
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: Alan Jope
Alan Jope Unilever Half Year 2020 Results 23rd July 2020
Slide 4: 2020: Half year results
2020: Half year results Growth Profit Cash Earnings & Dividend Underlying Sales Growth UOP Free Cash Flow Underlying EPS €5.1bn (0.1)% +3.8% €2.9bn +6.4% Dividend (0.3)% +50bps +€1.3bn maintained Underlying Volume Growth UOM vs H1 2019 Quarterly Dividend 4 Absolute UOP as reported, UOP growth rate o
Slide 5: Managing our Covid-19 response
Managing our Covid-19 response People Supply Demand Community Cash 5
Slide 6: Operational excellence through fundamentals
Operational excellence through 5 fundamentals Volume growth & share 1 Focused innovation 2 Ecommerce & value 3 Never more relevant 4 Cash priority 5 6
Slide 7: Strategic change agenda
Strategic change agenda Legal simplification Shaping the portfolio Climate & nature commitments 7
Slide 8: Category portfolio
€26bn Category portfolio Turnover H1 2020 €4bn TO H1 2020 Laundry €4bn H1 Q2 80% EM TO H1 2020 USG (1)% USG (1)% Hygiene H1 Q2 €7bn €0.3bn TO H1 TO H1 2020 2020 USG 17% USG 26% Personal Care Prestige H1 Q2 H1 Q2 60% EM USG (6)% USG (10)% USG (6)% USG (10)% €8bn €2bn TO H1 TO H1 2020 2020 In Home Out
Slide 9: Beauty & Personal Care
H1 H1 (0.3)% 0.1% Beauty & Personal Care USG UVG Skin Cleansing Skin Cleansing Q2 USG% +27% Q2 USG Bars +2% Bodywash +12% Liquid Handwash +155% Sanitiser >+20,000% Rest of BPC Total Skin Cleansing +27% (10)% Q2 USG Hair Care Q2 USG% Prestige Wash & Care (1)% (10)% Q2 USG Styling (32)% Total Hair (6)
Slide 10: Foods & Refreshment
H1 H1 (1.7)% (2.5)% Foods & Refreshment USG UVG In Home In Home Q2 USG% +17% Q2 USG Savoury, +14% Dressings and Tea Ice Cream +26% Out of Home Out of Home Q2 USG% (42)% Q2 USG Ice Cream (35)% UFS (56)% 10 UFS included in other categories
Slide 11: Home Care
H1 H1 3.2% 2.9% Home Care 3.2% USG UVG Home & Hygiene Q2 USG% Home & Hygiene +24% Q2 USG Sunlight +5% Cif +20% Domestos +37% Sun +32% Laundry Living +87% (1)% Q2 USG Hygiene Seventh +54% Generation 11
Slide 12: eCommerce
eCommerce Q2 Growth +78% +48% +62% eB2B Brazil +58% Pure play +59% China 8% Hellmann’s % of H1 Total Sales +120% +177% Omnichannel USA 12 eB2B excludes UFS
Slide 13: Graeme Pitkethly
Graeme Pitkethly Unilever Half Year 2020 Results 23rd July 2020
Slide 14: A global pandemic
A global pandemic 14 Map depicts the daily confirmed COVID-19 cases per million, 3-day rolling average, 17th July 2020
Slide 15: Macro uncertainty
Macro uncertainty Rising COVID-19 cases Wide range of economic Volatile currencies and outlooks commodities Asia Europe North America Middle East Latin America Africa J F M A M J J 2019 2020 2021 2022 2023 2024 J F M A M J J Crude EUR/ BRL 15 Daily confirmed COVID-19 cases per million, 7-day rolling
Slide 16: H1 2020: Group USG performance
H1 H1 (0.1)% (0.3)% H1 2020: Group USG performance USG UVG USG 3.8% 2.9% 1.5% 0.0% (0.3)% India UK China Outbreak Recovery USA Brazil UPG • Resilient performance in a volatile and 0.5% challenging operating environment UVG (0.8)% • Spread of Covid-19 and implementation of lockdowns and restrictions
Slide 17: Asia / AMET / RUB
H1 H1 (2.7)% (2.9)% Asia / AMET / RUB USG UVG USG 6.3% 5.6% 2.1% (3.7)% (1.8)% S Africa India China Outbreak Outbreak Recovery Recovery Russia Indonesia S Korea UPG • China: sales down mid single digits following a return to growth in Q2 as the market reopened UVG • India: declined high single digit
Slide 18: Latin America
H1 H1 1.9% (0.8)% Latin America USG UVG USG 11.6% 3.2% 3.8% 4.9% (0.8)% Mexico Outbreak Outbreak Recovery Recovery Brazil Argentina UPG • Q2 impacted by the spread of Covid-19 and lockdown measures UVG • Brazil: sales up low single digits for the half, following a decline in Q2 with regional lockdow
Slide 19: North America
H1 H1 7.3% 7.7% North America USG UVG USG (0.2)% 0.3% 0.6% 4.8% 9.5% Canada Outbreak Outbreak Recovery Recovery USA • Growth driven by in-home foods & ice cream, and UPG hygiene products • Q2 Foods & Refreshment USG +23% (excl. Food UVG Service) '19 Q2 '19 Q3 '19 Q4 '20 Q1 '20 Q2 • H1 regional growt
Slide 20: Europe
H1 H1 (1.8)% (1.0)% Europe USG UVG USG (1.6)% (0.3)% (0.8)% 1.4% (4.5)% UK Italy Germany Outbreak Outbreak Recovery Recovery UPG Spain France NL UVG • Out of Home Ice Cream and Food Service impacted by lockdowns across the region, primarily in Q2 • Sustained increases in in-home food consumption and
Slide 21: H1 2020: Turnover (1.6)%
H1 2020: Turnover (1.6)% USG (0.1)% +1.2% (0.2)% +0.2% (0.3)% A & D +1.1% (2.5)% €26.1 bn €25.7 bn 21 Reflecting treatment of hyperinflation in USG as announced in September 2019
Slide 22: H1 2020: Underlying operating margin
H1 2020: Underlying operating margin +100bps (20)bps (80)bps Mix & COVID-19 19.8% 19.3% (30)bps 22 All numbers on an IFRS 16 basis
Slide 23: H1 2020: Underlying earnings per share
H1 2020: Underlying earnings per share +5.4% +0.3% (1.9)% +2.4% +3.9% (3.7)% €1.35 €1.27 Underlying EPS +6.4% 23 All numbers on an IFRS 16 basis
Slide 24: H1 2020: Free cash flow
H1 2020: Free cash flow €0.4bn €0.1bn €0.7bn €0.1bn €2.85bn €1.55bn 24 All numbers on an IFRS 16 basis
Slide 25: H1 2020: Balance sheet and liquidity position
H1 2020: Balance sheet and liquidity position Net debt Access to funding Cash & facilities Pensions H1 ‘20 Net debt/EBITDA Commercial paper at Total cash & undrawn Deficit at 30/06/2020 facilities at 30/06/2020 30/06/2020 1.9x €1.3bn €11.9bn €(0.4)bn A1/A+ €7bn €(0.2)bn 2.7x coverage of debt maturin
Slide 26: Alan Jope
Alan Jope Unilever Half Year 2020 Results 23rd July 2020
Slide 27: Unilever #ComeOutStronger
Unilever #ComeOutStronger Resilience Agility Strategic future • Portfolio • Category • Unification • Operational excellence • Geography • Portfolio evolution • Financial strength • Supply • Sustainability We are focused on volume led, competitive growth; absolute underlying operating profit; and cas
Slide 28: Unilever Half Year 2020 Results
Unilever Half Year 2020 Results Alan Jope & Graeme Pitkethly 23rd July 2020