Slide 1: Unilever FY 2022 Results
Unilever FY 2022 Results ALAN JOPE & GRAEME PITKETHLY 9 FEB 2023
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 ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vi
Slide 3: Unilever FY 2022 Results - Alan Jope
Unilever FY 2022 Results ALAN JOPE
Slide 4: Agenda
Agenda 1 2022 Overview 2 2022 Results 3 Progress against strategy 4 Outlook 4
Slide 5: Full Year 2022 highlights
Full Year 2022 highlights Growth driven in line with strategic priorities Big brands performed strongly with increased investment Margin in line with guidance New organisation enabling superior strategic decisions 5
Slide 6: Strong price-led growth
Strong price-led growth Q4 growth FY growth Price and volume Competitiveness 13.3% UPG 12.5% 9.2% 9.0% 11.2% 8.3% Underlying sales growth Underlying sales growth 4.9% 47% % Business Winning MAT1 0.0% 13.3% (3.6)% 11.3% (2.1)% -1.0% -2.1% -1.6% UPG UVG UPG UVG UVG -3.6% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
Slide 7: Margin delivery in line with guidance
Margin delivery in line with guidance Margin Earnings Cash Underlying operating margin Underlying EPS Free cash flow 16.1% (2.1)% €5.2bn (230)bps (8.2)% Includes €0.4bn extra Capex vs 2021 Constant underlying EPS 7
Slide 8: Beauty & Wellbeing
7.8% 0.3% 7.5% Beauty & Wellbeing FY USG FY UVG FY UPG 9.5% 7.7% USG 7.7% 7.4% 6.7% UPG 8.4% UVG (0.6)% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 • Prestige and Health & Wellbeing grew double-digit • Skin Care grew mid single-digit driven by Vaseline innovation. Volumes marginally down • Hair grew mid single-di
Slide 9: Personal Care
7.9% (3.7)% 12.1% Personal Care FY USG FY UVG FY UPG 6.7% 8.9% 9.1% USG 6.8% 4.9% UPG 13.0% UVG (3.5)% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 • Deodorants grew double-digit with positive volumes. Rexona, Dove, and Axe all delivered strong performances • Skin Cleansing grew through price with some volume decl
Slide 10: Home Care
11.8% (3.5)% 15.9% Home Care FY USG FY UVG FY UPG 12.2% 13.6% 12.3% USG 9.2% 5.0% UPG 16.7% UVG (3.8)% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 • Fabric Cleaning grew high double-digit driven by South Asia, Brazil, Turkey and Vietnam • Fabric Enhancers grew well with good performance by Comfort • Home & Hygien
Slide 11: Nutrition
8.6% (2.1)% 10.9% Nutrition FY USG FY UVG FY UPG 10.1% USG 11.8% 7.0% 6.2% UPG 4.7% 14.7% UVG (4.1)% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 • Dressings grew double-digit driven by Hellmann’s in North America • Scratch Cooking Aids grew mid single-digit driven by Knorr • Unilever Food Solutions recovered to p
Slide 12: Ice Cream
9.0% (0.7)% 9.7% Ice Cream FY USG FY UVG FY UPG 13.2% 2.9% USG 9.5% 7.1% 14.2% UPG UVG (1.3)% (9.9)% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 • Out-of-home grew well, lapping prior year pandemic restrictions • In-home grew with supply challenges in the United States • Weak Q4 volumes: landed high pricing and I
Slide 13: 2022 Results
2022 Results GRAEME PITKETHLY
Slide 14: Underlying sales growth
Underlying sales growth Full Year 9.2% 9.0% (2.1)% 11.3% 10.6% USG UVG UPG USG 8.8% 7.3% UPG 13.3% • Price-led growth in response to high 4.9% input cost inflation UVG • Broad-based growth across all Business Groups (3.6)% • Strong growth performance of billion Euro brands Q4'21 Q1'22 Q2'22 Q3'22 Q4
Slide 15: FY 2022: Turnover growth
FY 2022: Turnover growth +14.5% USG 9.0% A&D (1.0)% 6.2% 11.3% 0.8% (1.8)% (2.1)% €60.1bn €52.4bn 15
Slide 16: Regional growth by quarter
Regional growth by quarter FY’22 FY’22 Asia Pacific Africa €28bn 10.3% (0.9)% 11.3% North America €13bn 7.9% (1.4)% 9.4% TO USG UVG UPG TO USG UVG UPG 10.7% 8.3% 5.7% USG 9.0% 12.5% 8.9% 8.5% 9.1% 6.5% UPG 5.7% 12.9% 10.1% UVG (2.0)% (4.0)% Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22
Slide 17: FY 2022: Underlying operating margin
FY 2022: Underlying operating margin (230)bps +€0.5bn vs PY* 18.4% 16.1% *At constant fx rates 17
Slide 18: Price increases not yet sufficient to repair gross margin
Price increases not yet sufficient to repair gross margin 2018 2019 2020 2021 2022 Gross margin Price coverage (210)bps 2022 11.3% 7.0 11.3% 6.0 10.0% ~95% 5.0 2.9% of NMI 4.3 5.0% 2.9% 4.0 1.6% 1.2% 0.9% 0.7% 0.3% UPG 0.1% 3.0 2.4 H2 0.0% 2.0 1.3 -5.0% 1.0 0.2 0.2 0.1 1.9 H1 ~75% NMI €bn - of total
Slide 19: FY 2022: Underlying earnings per share
FY 2022: Underlying earnings per share Current underlying EPS (2.1)% 6.1% 1.9% (7.2)% (0.6)% (0.5)% (1.8)% (0.0)% €2.62 €2.57 (8.2)% €2.37 Constant underlying EPS FY 2021 Operational Finance Tax Minorities Share Other FY 2022 Currency FY 2022 performance costs buybacks (Constant) (Current) 19
Slide 20: Cash flow & balance sheet
Cash flow & balance sheet Cash Net debt Pension surplus (€bn) Free cash flow Net debt / EBITDA €5.2bn 2.1x 3.0 2.6 Includes €0.4bn extra Capex €23.7bn Net debt 0.3 FY'20 FY'21 FY'22 20
Slide 21: Other financial metrics
Other financial metrics Restructuring Savings ROIC €0.8bn 17.2% 16.0% €2bn 1.3% as % Turnover 2021 2022 21
Slide 22: Disciplined capital allocation
Our growth model is underpinned by disciplined capital allocation Operational investment Portfolio shaping Capital returns Since 2017 BMI +€0.5bn* Cash dividends €17bn invested €4.3bn R&D +€50m* €11bn proceeds Share buybacks Capex 2017-21 2022-23 +€0.4bn (to 2.7% of TO) €14bn Up to €3bn *At constant
Slide 23: Progress against strategy
Progress against strategy ALAN JOPE
Slide 24: Continued progress in line with strategic priorities
Continued progress in line with strategic priorities Win with brands and Move portfolio into Accelerate USA, India, Lead in channels of innovation high growth spaces China and EMs the future FY’22 USG 14 €1bn+ brands Prestige and 8.0% 15% Health & eCom % TO Wellbeing grew 53% double-digit 15.6% of t
Slide 25: Future-fit organisation enabling better execution
Future-fit organisation enabling better execution Unilever Corporate Centre Beauty & Personal Home Care Nutrition Ice Cream Wellbeing Care Prioritisation and speed of execution Nutrition and Ice Cream exited unprofitable businesses Beauty & Wellbeing redirected funding to profitable citadels in Euro
Slide 26: Sharper, more distinctive Business Group strategies
We have sharper, more distinctive Business Group strategies Beauty & Personal Home Nutrition Ice Cream Wellbeing Care Care €12bn €14bn €12bn €14bn €8bn Value creation High Growth Growth Growth and Growth and Growth and ROA margin margin Margin Accretive Accretive Dilutive Slightly accretive Dilutive
Slide 27: Summary
Summary Stronger execution Sharpened portfolio Clear strategy New organisation Unilever is investing for growth 27
Slide 28: Outlook
Outlook GRAEME PITKETHLY
Slide 29: Multi-year financial framework
Multi-year financial framework Growth Profit Cash Underlying sales growth Modest margin Sustained strong 3 – 5% USG expansion cash flow • Towards upper end • Gross margin-led • 100% cash conversion • Volume step-up • With increased BMI • Competitive Long-term value creation through EPS Attractive di
Slide 30: 2023 outlook: growth remains the priority
2023 outlook: growth remains the priority Priorities Guidance • H1 price growth will remain high, and volume negative Continuing growth momentum • FY underlying sales growth at least in the upper half of our multi-year range of 3 – 5% Invest for growth while • Increased levels of investment in BMI,
Slide 31: 2023 gross margin: H1 pressured, improves in H2
2023 gross margin: H1 remains pressured, but improves in H2 H1 2023 H2 2023 Net material inflation Around €1.5bn Materially lower Production & logistics Around €0.5bn Materially lower cost inflation Price growth Remaining elevated Slowing Price coverage Below 100% Improving Gross margin Lower Improv
Slide 32: 2023: key financial metrics
2023: key financial metrics Investment Tax Debt Currency Net debt / Capex EBITDA Turnover impact >3% of TO ca. 2x of ca. (4)% Underlying tax rate 25% Net finance Restructuring costs UEPS impact a little ca. 1% of TO 2.5 - 3% more negative 32
Slide 33: 2023 outlook: growth remains the priority
2023 outlook: growth remains the priority Priorities Guidance • H1 price growth will remain high, and volume negative Continuing growth momentum • FY underlying sales growth at least in the upper half of our multi-year range of 3 – 5% Invest for growth while • Increased levels of investment in BMI,
Slide 34: Q&A
Q&A