Slide 1: Unilever Full Year 2017 Results
Unilever Full Year 2017 Results Paul Polman / Graeme Pitkethly 1st February 2018
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, including statements related to underlying sales growth and underlying operating margin. W
Slide 3: Paul Polman
Paul Polman Wades
Slide 4: 2017: Making our company more agile and resilient
2017: Making our company more agile and resilient Acceleration of Connected 4 Growth New organisation & capabilities More dynamic portfolio evolution Eliminating non-value add costs CCBTs Digital 2.0 Marketing Finance R&D Sales Supply chain Whilst delivering good all-round performance
Slide 5: 2017: Good all-round performance
2017: Good all-round performance Growth Margin Earnings Cash Underlying Sales Growth Underlying Operating Margin Underlying current EPS Free Cash Flow exc. spreads +3.5% +110 bps +11% €5.4 bn +1.0% +40 bps €2.24 +€0.6 bn Underlying Volume Growth Gross Margin exc. spreads
Slide 6: Markets weak in 2017 but early signs of improvement
Markets weak in 2017 but early signs of improvement Weak consumer demand Improving consumer confidence Uncertainties remain Market volume growth Emerging market monitor Currencies Inflation <1% Unemployment Interest rates Elections …? Jan-16 Jul-16 Jan-17 Jul-17 Commodities Source: Nielsen, adjusted
Slide 7: New sources of growth
New sources of growth New consumer trends New channels New markets Changing Digital Health & Beauty Experience stores demographics Iran Purpose-led Authentic, natural Direct to consumer E-commerce Cuba Myanmar consumers & free-from Ethiopia Plenty of opportunity
Slide 8: Connected 4 Growth: delivering bigger, better, faster innovation
Connected 4 Growth: delivering bigger, better, faster innovation More benefits More relevant More channel focus Magnum pints Lever Ayush Amazon bundles Lifebuoy silver CIF duo Pure-leaf pop-up
Slide 9: Connected 4 Growth: delivering bigger, better, faster innovation
Connected 4 Growth: delivering bigger, better, faster innovation More partnerships More entrepreneurial New business models Collaboration with influencers: Sedal New brand: Love, beauty & planet CIF Helpling Brand licencing: Knorr fresh New brand: RED RED Hellmann’s Quiqup
Slide 10: C4G: shifting our portfolio towards higher growth segments
C4G: shifting our portfolio towards higher growth segments 21 deals since January 2015 By 2019 these add: Primarily in Personal Care €3.5bn more turnover Prestige • €3bn HPC Premium price brands in mass • €2bn in premium positions New channels • €1.5bn emerging markets Naturals • €1bn e-commerce Dis
Slide 11: Graeme Pitkethly
Graeme Pitkethly Woes
Slide 12: 2017: Broad-based category growth & margin improvement
2017: Broad-based category growth & margin improvement Personal Care Home Care Food Refreshment USG USG USG exc. spreads USG 4.4% 4.9% 2.9% 2.2% +110bps + +130bps +60bps +160bps UOM UOM UOM inc. spreads UOM Spreads USG (2.4)%
Slide 13: C4G led volume recovery in Q4, amplified by soft comparator
C4G led volume recovery in Q4, amplified by soft comparator Emerging Markets picking up Volume contribution to quarterly growth EM underlying volume growth 4.0% 4% USG 2.9% 3.0% Improving volume momentum 2.6% ̵ Benefits of C4G organisation ̵ More innovation 2% 3.2% ̵ Increasing reinvestment 0.2% Wea
Slide 14: Price growth slowing as commodity inflation eases
Price growth slowing as commodity inflation eases Commodity inflation phased Price contribution to quarterly growth Unilever commodity inflation in local currencies 4.0% Lower commodity inflation 0.7% India: lower input taxes passed on USG 2.9% 3.0% to consumers 2.6% Less pricing in Latin America -
Slide 15: Full year 2017 turnover
Full year 2017 turnover USG +3.1% 0.9% (0.4)% (2.1)% 2.4% 1.0% €53.7bn €52.7bn 2016 UVG UPG Spreads M&A FX 2017 Turnover exc. Spreads exc. Spreads Turnover
Slide 16: 2017: Underlying Operating Margin up 110bps to 17.5%
2017: Underlying Operating Margin up 110bps to 17.5% >€2 bn total savings Drivers of underlying operating margin Gross • 5S well underway +40bps Margin • Reinvesting in competitiveness B&MI • Spend maintained in local currency Supply B&MI +60bps • Media & in-store spend up ca. €250m Chain • Reinvest
Slide 17: 2017: Underlying Earnings Per Share +10.7%
2017: Underlying Earnings Per Share +10.7% Underlying EPS up 11% at constant rates (1.5%) 1.6% +10.7% 0.9% (0.3%) 2.6% +10.4% €2.24 (1.9%) (1.7%) €2.03 Full Year 2016 Operational JVs, associates, Pensions, financing Number of shares Currency Full Year 2017 performance other income, and tax minoritie
Slide 18: Cash and Balance sheet
Cash and Balance sheet Free cash flow ROIC €5.4bn 19.2% 19.2% €4.8bn 2016 2017 2016 UOP Goodwill 2017 Net debt Pension deficit €20.3bn 2016 2017 €12.6bn €0.6bn €3.2bn 2016 2017 Net debt/EBITDA: 1.9x at year end
Slide 19: Paul Polman
Paul Polman
Slide 20: 2018 priorities
2018 priorities Complete the integration of Foods & Refreshment Exit spreads and restructure stranded fixed costs Stepped up innovation and execution enabled by C4G Continued focus on non-value added costs Deliver against acquisition business cases Prepare for the next stage in our evoluti
Slide 21: 2018 outlook
2018 outlook Underlying sales growth in the 3-5% range • Ahead of market • Greater contribution from volume • Lower price growth early in the year Underlying Operating Margin: continued progress to 20% • Continued benefit from savings programmes • Stepped-up restructuring – spreads stranded cost
Slide 22: Unilever Full Year 2017 Results
Unilever Full Year 2017 Results Paul Polman / Graeme Pitkethly 1st February 2018