Unilever Plc · LSE:ULVR
Unilever — Investor Day (March 2021)
39 slides from Unilever's investor day presentation, Mar 22, 2021
Slide 1: Unilever US Deep Dive Webcast
Unilever US Deep Dive Webcast Fabian Garcia President, Unilever North America 22 March 2021
Slide 2: Safe harbor statement
Safe harbor 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’, ‘vis
Slide 3: Agenda
Agenda 1. Unilever USA: 2. Growth Pillars 3. Outlook At a glance 3
Slide 4: Key messages
Key messages • The US is Unilever’s biggest market, and winning here is a strategic priority 4
Slide 5: Key messages
Key messages • The US is Unilever’s biggest market, and winning here is a strategic priority • After a period of modest growth, in early 2020 growth strengthened pre-Covid • The subsequent demand surge contributed to delivering a record 2020 5
Slide 6: Key messages
Key messages • The US is Unilever’s biggest market, and winning here is a strategic priority • After a period of modest growth, in early 2020 growth strengthened pre-Covid • The subsequent demand surge contributed to delivering a record 2020 • We expect to continue to grow competitively post normali
Slide 7: Key messages
Key messages • The US is Unilever’s biggest market, and winning here is a strategic priority • After a period of modest growth, in early 2020 growth strengthened pre-Covid • The subsequent demand surge contributed to delivering a record 2020 • We expect to continue to grow competitively post normali
Slide 8: The US Commercial Leadership Team: Experienced and Diverse
The US Commercial Leadership Team : Experienced and Diverse Fabian Garcia Joey Bergstein Esi Eggleston Bracey Alexandre Eboli President CEO, Seventh Gen EVP B&PC VP SC Kristi Reinholz Jostein Solheim Terry Thomas Eric Tiziani EVP HR, NA EVP F&R EVP CD US CFO 8
Slide 9: Unilever USA: At a glance
Unilever USA: At a glance
Slide 10: Unilever USA 2020: At a glance
Unilever USA 2020 : At a glance Largest Unilever Countries by Turnover Unilever USA USA 9 India 5 Operating Company Global Units China 3 €8.5bn ~ €1bn Indonesia 3 >7,500 People 11 Factories Brazil 2 9 Distribution Centers UK 3 R&D Centers France 17% 20% 24% Germany Philippines Netherlands Turnover P
Slide 11: Unilever USA 2020: At a glance
Unilever USA 2020 : At a glance Category Footprint Channel Contribution to Turnover Mass 31% Functional Prestige Nutrition1 5% Grocery 31% 6% Home Care eCommerce 14% 4% Club 8% Foods & Beauty & Refreshment Personal Care 36% 49% Discounters 6% Out of Home 6% Beauty 4% 1. Represents annualised turnove
Slide 12: Brand Footprint 2020
Brand Footprint 2020 Top 10 Brands • 66% of Turnover Brands: €100m To €250m • 23% of Turnover Remaining Brands: < €100m • 11% of Turnover 12
Slide 13: We lead in all the large retail categories we compete in
We lead in all the large retail categories we compete in L12W Value Share - Unilever vs Nearest branded manufacturer 1 UL #2 Competitor 47% 48% 38% 40% 30% 24% 25% 25% 20% 18% 14% 14% Ice Cream Skin Cleansing Hair Deo Spoonables Rice and Pasta Sides UL L52W Retail Sales 1 $3.4bn $2.2bn $1.9bn $1.6bn
Slide 14: Strong early momentum and Covid demand surge enabled a record 2020
Strong early momentum, coupled with Covid demand surge enabled a record 2020 Growth returned to the business Many peer CPG companies benefited from Covid- pre COVID related demand spikes Unilever USA OpCo USG 2020 Reported USG USG impact Global Units 25% 13% 23% 12% 13% 12% 12% 10% > -4% 8% 8% 5% 4%
Slide 15: Competitiveness stronger since late Q3
Competitiveness stronger since late Q3 % Business Winning Value Share (L12W)1 • Competitiveness 53% 50% challenged after Covid due 43% to portfolio mix and service challenges 30% 31% • Service improvements, portfolio pivots, increased 23% > distribution and targeted investments in H2 drove turnaroun
Slide 16: Growth Pillars
Growth Pillars
Slide 17: 4 Pillars of the Unilever USA Growth Strategy
4 Pillars of the Unilever USA Growth Strategy Accelerate Portfolio Innovate with Big, Step-change Culture Explode eCommerce Reshape Purposeful Brands and Capability 17
Slide 18: 4 Pillars of the Unilever USA Growth Strategy
4 Pillars of the Unilever USA Growth Strategy Accelerate Portfolio Innovate with Big, Step-change Culture Explode eCommerce Reshape Purposeful Brands and Capability 18
Slide 19: Clear criteria for Investment Choices
Clear criteria for Investment Choices Potential in Route to Branding & Scale High growth growth countries leadership technology sensitive Multi-cultural Prestige Functional Healthy Hygiene beauty beauty nutrition eating 19
Slide 20: Portfolio reshape in action
Portfolio reshape in action 2016 2017 2018 2019 2020 In progress 20211 Divestments Tea Tail BPC brands Acquisitions Proforma 2021 Prestige 3% F&R HC F&R HC 35% 4% Portfolio 46% <1% Func. Nutr. Shape BPC BPC 6% 51% 49% Prestige 5% 1. Portfolio shape in 2021 based on 2020 (annualized) TO after removin
Slide 21: Prestige acquisitions grew 17% in 2020
Acquisitions grew 17% in 2020 2020 Turnover 2019 USG 2020 USG BPC €0.5bn -5% +5% Prestige €0.5bn 9% -4% Func. Nutr. €0.5bn1 >50% €0.4bn 10% >50% HC F&R €0.3bn1 13% >20% 21 1. Annualised turnover
Slide 22: 4 Pillars of the Unilever USA Growth Strategy
4 Pillars of the Unilever USA Growth Strategy Accelerate Portfolio Innovate with Big, Step-change Culture Explode eCommerce Reshape Purposeful Brands and Capability 22
Slide 23: Focusing on bringing breakthrough technology innovation
Focusing on bringing breakthrough technology innovation Innovation Strategy Cornerstones Dove Deo Refill Seventh Gen Ben & Jerry’s EasyDose Dough Bites • Dedicated R&D resources, co-located with brand and insights teams • > 550 FTEs • 3 R&D Centers • Leading edge data-driven shopper > and strategic
Slide 24: Augmented by local white space innovations, co-created with customers
Augmented by local white space innovations, co-created with customers Dialed-up Customer Centricity Approach Bath in Retail Functional Men’s Nutrition Grooming in Retail2 • Holistic long-range Planning to unlock: • Innovation co-creation • Data / insights collaboration > • Incremental distribution (
Slide 25: Activating brand purpose to drive consistent, competitive growth
Activating brand purpose to drive consistent, competitive growth Ben and Jerry’s a consistent Dove leads the fight to Seventh Gen raising awareness voice for social justice end Hair Discrimination about climate change 12% 8% 22% 3 Year USG 25
Slide 26: 4 Pillars of the Unilever USA Growth Strategy
4 Pillars of the Unilever USA Growth Strategy Accelerate Portfolio Innovate with Big, Step-change Culture Explode eCommerce Reshape Purposeful Brands and Capability 26
Slide 27: Taking targeted actions to accelerate eCommerce
Taking targeted actions to accelerate eCommerce Actions taken to explode eComm growth Design for eCommerce Examples • Partnership with Amazon: Compact laundry • Co-investment in data, media format increases • Amplifying Climate Pledge program value density • Strategic partnership with Fresh • Rampin
Slide 28: Resulting in strong, competitive and profitable growth
Resulting in strong, competitive and profitable growth Record growth in 2020, and increasing contribution eComm Turnover as % of Total Business 14% 4.5% 8% Global Units 4% 9.5% 122% USA USG 4% OpCo 2019 2020 1. % business winning share YTD Dec 2020 2. Click and Collect Share 28
Slide 29: Resulting in strong, competitive and profitable growth
Resulting in strong, competitive and profitable growth Record growth in 2020, and Competitiveness in key increasing contribution customers is strong eComm Turnover as % of Total Business % Omni Business above brick & mortar Largest Grocer >80%1 14% Largest Mass 4.5% Retailer2 >80%1 8% Second largest
Slide 30: Resulting in strong, competitive and profitable growth
Resulting in strong, competitive and profitable growth Record growth in 2020, and Competitiveness in key Healthy margin expansion increasing contribution customers is strong eComm Turnover as % of Total Business % Omni Business above brick & mortar USA eComm Gross Margin 250 Largest bps Grocer >80%1
Slide 31: 4 Pillars of the Unilever USA Growth Strategy
4 Pillars of the Unilever USA Growth Strategy Accelerate Portfolio Innovate with Big, Step-change Culture Explode eCommerce Reshape Purposeful Brands and Capability 31
Slide 32: Creating a lean, digitally-enabled, diverse and engaged organization
Creating a lean, digitally-enabled, diverse and engaged organization E2E Digital Enablement Diverse and Engaged Teams Generating elevated levels of ‘Fuel for Growth’ • Process automation, • At corporate level, 50% • 25% increase in annual digitization, machine female, 30% identify as savings planned
Slide 33: Our growth pillars are fully aligned with global Strategic Choices
Our growth pillars are fully aligned with global Strategic Choices 1. Develop our portfolio into high growth spaces 2. Win with our brands as a force for good, powered by purpose and innovation 3. Accelerate in USA, India, China and leverage emerging markets strength 4. Lead in the channels of the f
Slide 34: Outlook
Outlook
Slide 35: Portfolio well positioned for post-Covid new normal
Portfolio well positioned for post-Covid new normal Skin Hand Ice Home Func. Hair Deo Mayo Sides Prestige UFS Cleanse Hygiene Cream Care Nutr. Developed market Consumer Mega- Holistic Health trends Pleasure Starved Home Experiences Stimulus ‘Bump’ USA Context Mass Vaccination Hybrid Work 35
Slide 36: Portfolio well positioned for post-Covid new normal
Portfolio well positioned for post-Covid new normal Skin Hand Ice Home Func. Hair Deo Mayo Sides Prestige UFS Cleanse Hygiene Cream Care Nutr. Developed market Consumer Mega- Holistic Health trends Pleasure Starved Home Experiences Stimulus ‘Bump’ USA Context Mass Vaccination Hybrid Work 36
Slide 37: Outlook
Outlook • We have confidence in the resilience of the consumer and expect an economic recovery in the next 12-18 months • We foresee three challenges in the US • A bifurcated economy • Managing impact of eComm acceleration on traditional retail • Inflationary headwinds • 2021 will be impacted by lap
Slide 38: Recap of Key messages
Recap of Key messages • The US is Unilever’s biggest market, and winning here is a strategic priority • We expect to continue to grow competitively post normalization of the Covid- spike as we: • Continue to reshape the portfolio towards high growth spaces • Innovate with big, purposeful brands in c
Slide 39: Q&A
Q&A Unilever USA Deep Dive Webcast 22 March 2021