Unilever Plc · LSE:ULVR
Unilever — H1 2015 Earnings Presentation
25 slides from Unilever's earnings presentation, Jul 23, 2015
Slide 1: Unilever First Half 2015 Results
Unilever First Half 2015 Results Paul Polman / Jean-Marc Huët 23rd July 2015
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: Paul Polman
Paul Polman Passion, ee
Slide 4: H1 2015: Good performance in challenging conditions
H1 2015: Good performance in challenging conditions Turnover Core Operating Margin Core earnings per share Turnover growth At current rates 12.0% 16.3% + + 50 bps + 2.9% 8.4% Underlying sales growth At constant rates
Slide 5: Market conditions remain challenging
Market conditions remain challenging Mixed emerging markets Weak developed markets Volatility and uncertainty GDP Growth (%) Consumer Price Inflation (%) 12.0 4.0 0.7% India 2.5 China 4.0 1.0 US Brazil Eurozone -0.5 -4.0 Russia 2010 2015 2010 2015 Source: Oxford Economics
Slide 6: Implementing a sharpened strategy
Implementing a sharpened strategy Personal Care Home Care Continue growth of the core Step up in profitability while building premium Foods Refreshment Drive volume growth, Improve ice cream cash flow, maintain strong cash flow grow faster in tea Category strategies guide resource allocation and dri
Slide 7: H1 2015: All categories contributing
H1 2015: All categories contributing Personal Care Foods Refreshment Home Care Growth 3.0 % 1.4 % 2.7 % 4.5 % Margin (20) bps 30 bps 60bps 220 bps
Slide 8: Investing in innovation to drive long term growth
Investing in innovation to drive long term growth Embedded R&D Partnering to win Enabled by IT Category and R&D structure 70% of 2X R&D R&D R&D R&D 17 open innovation faster US dry spray launch suppliers Strategic Science Group
Slide 9: New approach to innovation delivering results
New approach to innovation delivering results Stronger pipeline Bigger innovations More benefits Incremental turnover in the funnel Average project size % of projects using new technologies +20% +30% 45% 35% Now 2013 2013 Now 2013 Now 75% of innovations are margin accretive
Slide 10: Innovation: Growing the core
Innovation: Growing the core US dry spray aerosols Lifebuoy with Activ Naturol Iron-fortified Knorr cubes Shield 75% share of the segment in 12 weeks A billion euro brand in the making Cooking products up >50% in 5 yrs in emerging markets
Slide 11: Innovation: Building premium segments
Innovation: Building premium segments Dove Advanced Hair Series Magnum Pink & Black Comfort Intense 94% incremental to US Dove sales Rolled out to 20 countries in Europe Gross margin 10 percentage points higher
Slide 12: Innovation: Entering adjacencies and new countries
Innovation: Entering adjacencies and new countries Dove Omo pre-treaters & wash Household care boosters Dove Men+Care a €400m brand Brazil market share >10% in 9 months 26 new countries in 5 years
Slide 13: Doubling TRESemmé
Doubling TRESemmé €700m Stage 3: Premiumisation Stage 2: New territories Stage 1: The core €350m 2010 2015
Slide 14: Building a Prestige business
Building a Prestige business Strong, differentiated brands An attractive market: Large and growing Fragmented A stand-alone business unit: Globally run; prestige expertise REN Skincare Kate Somerville Skincare Dedicated go-to-market & communication Leverage capabilities in skin, hair & oral:
Slide 15: Jean-Marc Huët
Jean-Marc Huet Passion, ee
Slide 16: H1 2015: Double-digit turnover growth
H1 2015: Double-digit turnover growth USG +2.9% +1.1% +1.7% (1.1)% +10.1% €24.1bn €27.0bn +12.0% Turnover Vol/mix Price M&A FX Turnover H1 2014 H1 2015
Slide 17: H1 2015: Core Operating Margin up 50bps
H1 2015: Core Operating Margin up 50bps 14.0% +40 bps (50) bps +60 bps 14.5% COM Gross margin Brand & Marketing Overheads COM H1 2014 Investment H1 2015
Slide 18: H1 2015: Core EPS up 16%
H1 2015: Core EPS up 16% €0.78 +7.0% +0.5% +1.4% +2.1% (2.6)% +7.8% €0.91 €0.16 +8.4% at constant rates Core EPS Operational JVs, associates, Minorities Adj. avg Tax FX Core EPS H1 2014 Performance financing & other combined share H1 2015 income units
Slide 19: On track to deliver strong free cash flow
On track to deliver strong free cash flow Strong cash delivery Improving working capital Optimising capex H1 2015 free cash flow Annual moving average trading Capex % turnover working capital €0.8bn €1.1bn 4% -3.2% -3.8% -5.0% -5.4% 3% 45 2% H1 2014 H1 2015 2012 2013 2014 Q2 2015 2005 2009 2015
Slide 20: H1 2015: Balance Sheet
H1 2015: Balance Sheet Net Debt Pension deficit Dividends €9.9bn €11.8bn €3.6bn €2.5bn 6% increase last quarter to €0.302 8% p.a. End 2014 H1 2015 End 2014 H1 2015 1980 2015
Slide 21: 2015 full year outlook
2015 full year outlook Growth Margin Tax FCF Slightly ahead of Steady A little higher Strong first half improvement than 26% free cash flow
Slide 22: Paul Polman
Paul Polman Passion, ee
Slide 23: Creating long term value
Creating long term value Our priorities remain Growth momentum improving unchanged All categories contributing Volume growth ahead of our markets Driving cost savings Steady & sustainable margin improvement Strengthening go-to-market capabilities Strong cash flow A fitter organisatio
Slide 24: CFO transition: Effective from 1st October 2015
CFO transition: Effective from 1st October 2015 Jean-Marc Huët Graeme Pitkethly
Slide 25: Unilever First Half 2015 Results
Unilever First Half 2015 Results Paul Polman / Jean-Marc Huët 23rd July 2015