Unilever PLC · LSE:ULVR
Unilever — Q3 2010 Earnings Presentation
42 slides from Unilever's earnings presentation, Nov 4, 2010
Slide 1: Unilever Q3 2010 Results
Unilever Q3 2010 Results November 4th 2010 Paul Polman, CEO. Jean-Marc Huët, CFO. James Allison, Head of IR and M&A.
Slide 2: Paul Polman, Chief Executive Officer
Paul Polman Chief Executive Officer
Slide 3: 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 ‘expects’, ‘anticipates’, ‘intends’, ‘believes’ or the negative of these ter
Slide 4: Strongest volume performance in 25 years
Strongest volume performance in 25 years categories MCO’s top brands 11/11 19/22 12/13 6% volume growth year-to-date
Slide 5: Delivering against our priorities
Delivering against our priorities volume growth underlying margin strong cash flow accelerated increasing delivery €bn 4.1 3.9 6.0% 0.3% 0.2% 2.5 2.3% 0.1% 0.1% FY08 FY09 YTD 10 FY08 FY09 YTD 10 YTD 08 YTD 09 YTD 10 Net cash flow from operations
Slide 6: Markets remain soft – recovery long drawn out
Markets remain soft – recovery long drawn out market value growth developed markets emerging markets 6% 20% 16% N America 4% 12% LatAm W Europe Asia 2% 8% 4% AMET 0% CEE 0% -2% 2009 2010 2009 2010
Slide 7: A new Unilever emerging
A new Unilever emerging bigger, better, faster in-market execution cost competitiveness innovation improving addressed +%450 bps Q309 Q409 Q110 Q210 Q310 €1bn savings on-shelf availability overheads down
Slide 8: Jean-Marc Huët, Chief Financial Officer
Jean-Marc Huët Chief Financial Officer
Slide 9: Q3 10: 13% turnover growth
Q3 10: 13% turnover growth USG 3.6% 9.8% -0.5% €11.5bn 4.8% -1.2% €10.2bn Turnover Vol/Mix Price Currency Acq/Disp Turnover Q3 '09 Q3'10
Slide 10: YTD: 11% turnover growth
YTD: 11% turnover growth USG 3.8% -0.1% 7.0% €33.4bn -2.1% 6.0% €30.2bn Turnover Vol/Mix Price Currency Acq/Disp Turnover YTD '09 YTD '10
Slide 11: Q3 10: broad based volume growth
Q3 10: broad based volume growth emerging markets developed markets 11.4% 11.1% 9.5% 8.8% 4.6% 4.0% 3.3% 0.8% 1.1% 2.7% 0.5% 0.8% -2.5% -1.2% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 YTD all of our categories are growing volume
Slide 12: Volume shares strong
Volume shares strong volume share change MAT bps Q4 08 Q2 09 Q4 09 Q2 10 Q3 10 source: AC Nielsen/IRI/CCR/Kantar/Intage/Aztec
Slide 13: Q3 10: personal care innovations
Q3 10: personal care innovations Ponds anti-aging Lux re-launch China/Indonesia China/Japan
Slide 14: Q3 10: home care innovations
Q3 10: home care innovations Sun phosphate free DiG Western Europe global re-launch
Slide 15: Q3 10: food innovations
Q3 10: food innovations Lipton Milk Tea - China Dressings - WE
Slide 16: Q3 10: brands into new markets
Q3 10: brands into new markets Axe – Japan / Bangladesh Cif - Indonesia
Slide 17: Q3 10: brands into new markets
Q3 10: brands into new markets Dove Deo - Indonesia Magnum – Ecuador
Slide 18: Q3 10: brands into new markets
Q3 10: brands into new markets Rexona - Israel Dove Skin – China
Slide 19: Q3 10: underlying price growth improving
Q3 10: underlying price growth improving 3rd quarter of flat underlying price growth pricing at group level -0.2% -1.2% -3.1% -2.0% -3.3% Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
Slide 20: Q3 10: confidence in pricing actions
Q3 10: confidence in pricing actions spreads dressings deodorants UK US Indonesia 170 40 700 bps bps bps 5% 4% 2% price growth volume share price growth volume share price growth volume share
Slide 21: Q3 10: gross margin up 60bps year-to-date
Q3 10: gross margin up 60bps year-to-date €1bn savings gross margin change by quarter year-to-date 290 310 240 bps 120 -25 -150 -190 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
Slide 22: Q3 10: A&P investment behind innovations
Q3 10: A&P investment behind innovations +€0.5bn Flat Q3 '09 Q3 '10 2009 YTD 2010 YTD
Slide 23: Q3 10: underlying operating margin
Q3 10: underlying operating margin 110bps -150bps 60bps 16.8% 17.0% +20bps YTD '09 GM % Change A&P % Change Indirects % Change YTD '10
Slide 24: Q3 YTD: underlying operating margin
Q3 10 YTD: underlying operating margin 60bps -100bps 70bps +30bps 15.6% 15.3% YTD '09 GM % Change A&P % Change Indirects % Change YTD '10
Slide 25: Q3 YTD: earnings per share
Q3 10 YTD: earnings per share 4% 1% 8% €1.13 9% 9% Fully Diluted EPS Growth 29% €0.88 EPS YTD 09 Operational Restructuring Currency Pension Costs Others EPS YTD 10 performance
Slide 26: Q3 10: negative trading working capital
Q3 10: negative trading working capital TWC % Turnover MAT Average TWC % T/over 5% Closing TWC % T/over 0% -5% Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09 Q1 ‘10 Q2 ‘10 Q3 ‘10
Slide 27: Q3 YTD: free cash flow €2.5bn
Q3 10 YTD : free cash flow €2.5bn €bn 2009 2010 0.5 0.5 0.8 1.1 0.7 0.8 1.0 5.6 0.5 4.8 3.0 2.5 Oper' WC Capex Tax Others FCF 2009 Oper' WC Capex Tax Others FCF 2010 profit b/ Change profit b/ Change depn' depn' amort amort
Slide 28: Balance sheet
Balance sheet net debt €6.1bn (€0.3bn reduction from end ‘09) pension deficit €3.5bn (from €2.6bn at end ‘09) cash contributions to pensions €0.5bn year-to-date quarterly dividend €0.208 per NV share
Slide 29: Paul Polman, Chief Executive Officer
Paul Polman Chief Executive Officer
Slide 30: Fit to compete in Laundry
Fit to compete in Laundry fabric cleaning fabric cleaning fabric cleaning India Turkey Thailand 18% >100 >100 >100 bps bps bps 5% 7% volume growth volume share volume growth volume share volume growth volume share
Slide 31: Fit to compete in Deodorants
Fit to compete in Deodorants consistent share double digit gains > 100bps volume growth avg. per annum year-to-date 2008 2009 YTD 10 2008 2009 YTD 10
Slide 32: Fit to compete in Hair - North America
Fit to compete in Hair - North America strong share high single digit strengthening the performance year- volume growth portfolio through M&A to-date Volume Value 2008 2009 YTD 10
Slide 33: Fit to compete in Ice Cream
Fit to compete in Ice Cream strong volume strong volume share performance growth 2008 2009 YTD 10 2008 2009 YTD 10
Slide 34: Fit to compete in emerging markets
Fit to compete in emerging markets emerging markets volume growth 11.4% 11.1% 10.4% 9.5% 8.8% 4.6% 4.2% 3.3% -1.2% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 2009 YTD 10
Slide 35: Setting our own agenda - new vision
Setting our own agenda - new vision €80bn €40bn environmental impact 2009
Slide 36: Setting our own agenda: innovation
Setting our own agenda: innovation +€50m innovation record advertising roll-out +30 markets turnover year 1 effectiveness scores in 6 months 21 24 71 50 % 2008 Q2 2010 Good Satisfactory Poor from 18 markets in 2007 to 32 in 2010 €100m investment in product quality Bigger Better Faster
Slide 37: Setting our own agenda: market development
Setting our own agenda: market development oral care spreads perfect stores
Slide 38: Setting our own agenda: performance culture
Setting our own agenda: performance culture
Slide 39: Setting our own agenda: reshaping the portfolio
Setting our own agenda: reshaping the portfolio EVGA Ice Cream Greece T&G Hair global Disposal tomatoes Brazil
Slide 40: Setting our own agenda: Alberto Culver
Setting our own agenda: Alberto Culver
Slide 41: Priorities for 2010 confirmed
Priorities for 2010 confirmed 1. Continue to drive profitable volume growth 2. Steady and sustainable improvement in full year underlying operating margin 3. Strong cash flow
Slide 42: Questions
Questions nutrium “* morsture™