Unilever PLC · LSE:ULVR
Unilever — Deutsche Bank Conference 2013
22 slides from Unilever's conference presentation, Jun 11, 2013
Slide 1: Unilever – Deutsche Bank Conference
Unilever – Deutsche Bank Conference Jean-Marc Huët – CFO June 11th 2013
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: Agenda
Agenda 1 Our journey to date 2 Unilever: unrivalled emerging market presence
Slide 4: 2004-8: strong fundamentals but growth had stalled
2004-8: strong fundamentals but growth had stalled 14 €bn+ brands Leading positions Stable revenue % of turnover in No 1 or No 2 position €40bn > 80% 2004 2005 2006 2007 2008
Slide 5: Getting back to a growth agenda
Getting back to a growth agenda 2009: an energising vision 2010: clear strategy Employee engagement up 9 for 09 1 Agree country & category strategies Benchmark 2 Magnify innovations 75% 3 Own market development 73% 4 Improve sales fundamentals 5 Step change customer service 6 Win with winning custom
Slide 6: The virtuous circle of growth
The virtuous circle of growth
Slide 7: Standards of Leadership
Building a performance culture Fewer touch points Faster decision making Differentiated rating Personal Home Care Refreshment Foods Care Standards of Leadership 25% North America North Asia Europe NAMET & RUB Latin America South East South Asia Africa Asia & Australasia Delivery Internal and externa
Slide 8: Innovation led growth with improved execution
Innovation led growth with improved execution Bigger, better, faster Dove Men+ Care now €300m Improved availability Innovations into 10+ countries On-shelf availability >800bps ~90 9 2009 2012 2008 2012 13 wks reduction Unilever ranked No. 1 Ranked No.1 in 2012 for from 1st to last market in men’s t
Slide 9: Investing in the long term health of Unilever
Investing in the long term health of Unilever Incremental brand investment Capex Improving product quality +€1.7bn +€1.0bn >€300m 2008 2012 2008 2012 2008 to 2012 A more competitive IT and Enterprise Support infrastructure
Slide 10: Unilever now Fit to Compete
Unilever now Fit to Compete Growth ahead of our markets Improved cash generation M&A strengthens portfolio Underlying sales growth (%) Average working capital % 6.9% 6.5% 0.3% 4.1% 3.5% -2.4% -2.5% -3.2% 2009 2010 2011 2012 2009 2010 2011 2012
Slide 11: 2013: ready for the next stage of the journey
2013: ready for the next stage of the journey From To ‘Fit to Compete’ Becoming ‘Fit to Win’
Slide 12: Increased emphasis on gross margin improvement
Increased emphasis on gross margin improvement Better insights Premiumisation New channels # of IT systems 200 4 From To Integrated information systems 75% of innovations margin accretive Growing drug stores & e-commerce
Slide 13: Embedding Low Cost Business Models
Embedding Low Cost Business Models Reducing cost through an end-to-end approach Roll-out on track Identified Realized Laundry 50% 25% Consumer Customer UL Depot Factory Ice Cream parallel programme Others in early stage Example: reducing volatility induced cost Continued discipline in cost control
Slide 14: Agenda
Agenda 1 Our journey to date 2 Unilever: unrivalled emerging market presence
Slide 15: Significant opportunity exists
Significant opportunity exists 2010 2020 Have lots 1.9 bn 3.0 bn Haves 2.0 bn 2.7 bn Have nots 2.9 bn 1.9 bn Total population 6.8 bn 7.6 bn 1.8 bn people will move up the ladder, mainly in emerging markets
Slide 16: We have an unparalleled footprint
We have an unparalleled footprint Fabric Cleaning 1 1 2 1 2 1 1 1 2 Hair Care 1 1 2 1 1 1 1 1 1 1 Skin Cleansing 1 2 1 2 1 1 1 1 1 1 Face Care 1 1 1 1 1 1 1 Deos 1 1 1 1 1 2 1 2 1 1 Tea 2 1 1 1 Savoury 2 2 2 1 1 1 1 1 Ice Cream 1 1 1 1 1 Brazil Russia India China Indonesia Thailand Philippines Vietn
Slide 17: Our growth has been consistent & resilient
Our growth has been consistent & resilient Broad country spread Ever more important for our business Developed <43% Developed >57% Emerging Other emerging 1956 1985 2013 Q1 Average 9% underlying sales growth over the last 20+ years
Slide 18: Emerging markets profitability is close to UL average
Emerging markets profitability is close to UL average 2012 Unilever core operating margin Healthy gross margins 14.3% Allowing significant investment in 13.8% 13.3% business building Total Developed Emerging
Slide 19: Deep distribution reach
Deep distribution reach Increasing rural coverage in India Expanding reach in Indonesia IT enabled ‘perfect stores’ ‘Shakti’ Java Activation Outlying islands Added 30,000 villages Adding 100+ new distributors Reaching 6m perfect stores to Shakti programme in 2012 over the next three years by the end
Slide 20: Emerging markets: summary
Emerging markets: summary 1 Significant opportunity exists 2 We have an unparalleled footprint 3 Our growth has been consistent & resilient 4 Emerging markets profitability is close to UL average 5 Deep distribution reach is strengthened by ‘perfect stores’
Slide 21: Our priorities for 2013 remain unchanged
Our priorities for 2013 remain unchanged Volume growth ahead of our markets Steady and sustainable improvement in core operating margin Strong cash flow
Slide 22: Unilever – Deutsche Bank Conference
Unilever – Deutsche Bank Conference Jean-Marc Huët – CFO June 11th 2013