Unilever PLC · LSE:ULVR
Unilever — Bernstein Strategic Decisions Conference 2017
26 slides from Unilever's conference presentation, Sep 28, 2017
Slide 1: Unilever – Bernstein Strategic Decisions Conference
Unilever – Bernstein Strategic Decisions Conference Graeme Pitkethly / Alan Jope September 28th 2017
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This announcement contains forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements related to underlying sales growth, underlying operating margin. Words s
Slide 3: A long-term, investment-led growth model
A long-term, investment-led growth model Consistent growth Underlying Average USG Op. Margin +5% +190bps Competitive growth 2009-2016 2009-2016 Profitable growth ROIC Free Cash Flow Doubled 18% Responsible growth 2009-2016 2016 Compounding returns on investment
Slide 4: Enduring strengths
Enduring strengths BRANDS Purpose-led global + local brands: 85% of turnover from #1 or #2 positions GEOGRAPHIC PRESENCE Available in 190 countries. 57% of turnover in Emerging Markets DISTRIBUTION 2.5 billion consumers through 30 million outlets. Broad channel expertise MANAGEMENT 80% of leaders ar
Slide 5: Our investment case
Our investment case Enduring strengths Value creation BRANDS GROWTH: Ahead of markets, Underlying Sales Growth 3-5% GEOGRAPHIC MARGIN: 20% Underlying Operating Margin by 2020 PRESENCE DISTRIBUTION CASH: 100% Free Cash Flow conversion MANAGEMENT RETURNS: High-teens ROIC, growing dividends Unilever Su
Slide 6: Faster pace of change
Faster pace of change Consumers Channels Media Competitors Radically different Less reliance Communication Global and Local path to purchase on Big Box channels changing
Slide 7: Connected Growth: A simpler, faster organisation
Connected 4 Growth: A simpler, faster organisation 2011-2016 From 2017 4 Global Categories Country Category Business Teams PC HC Foods Refreshment PC HC Foods & Refreshment 8 Cluster teams CCBTs CCBTs CCBTs Building global scale More global and more local
Slide 8: Better innovation: More global and more local
Better innovation: More global and more local Global category teams now more focussed More local innovations Number Average size Number of of global projects of new projects local projects -10% +20% +25% 2017 YTD 2017 YTD 2017 YTD Fewer, bigger, better innovation, rolled out faster Rapid launches, m
Slide 9: Building a stronger, more agile business
Building a stronger, more agile business Connected 4 Growth More global and more local Growing the core Evolving the portfolio Developing channels On-trend innovation, delivered faster Segments of the future E-commerce Emerging market footprint Organic and M&A Out-of-Home Market development Flexible
Slide 10: ZBB delivering savings in Overheads and Marketing
ZBB delivering savings in Overheads and Marketing Position relative to cost benchmark 4th Quartile 3rd Quartile 2nd Quartile 1st Quartile Travel 2015 2018 Consultancy 2015 2018 Facilities 2015 2018 Ad production & agency cost 2015 2018 Media 2015 2018 H1 2017 delivered >€200m in Overheads and >€300m
Slide 11: Personal Care
Personal Care Alan Jope 28 My only night time m Poe Enchanting hair bath time yes 2 a: Renewed Nc cone Tro 4 S-ZB "* C + snewec on onicone trom LUX Zip .. Bi G's na 2 +
Slide 12: Our Personal Care Business
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Slide 13: Personal Care: Now a €20bn business
Personal Care: Now a €20bn business An increasing part of Unilever Significant shift in scale Personal Care as % of group sales Personal Care turnover 38% € 20 bn 28% € 11 bn 2008 2016 2008 2016
Slide 14: Leading positions in the biggest Personal Care categories
Leading positions in the biggest Personal Care categories Unilever PC turnover SKIN CARE SKIN HAIR DEODORANTS CLEANSING ORAL CARE Global leading positions Local leading positions
Slide 15: Well-positioned brand and geographic footprint
Well-positioned brand and geographic footprint Strong and relevant global brands Attractive footprint: 62% emerging markets Top 15 brands Top 15 countries USA India Brazil Indonesia China UK Argentina Philippines Mexico Japan Thailand France Russia Germany Vietnam
Slide 16: Opportunities in a rapidly changing world
Opportunities in a rapidly changing world New competitors New segments New business models
Slide 17: Our Personal Care Growth Strategy
Our Personal Care Growth Strategy
Slide 18: Personal Care growth strategy
Personal Care growth strategy Connected 4 Growth Strategic choices GROWING THE CORE EVOLVING THE PORTFOLIO DEVELOPING CHANNELS Core Market Brands with Male Health Naturals Therapeutics Baby Prestige Digitization Benefits Development Purpose Grooming & Beauty Targeted savings programmes: 5-S in suppl
Slide 19: First priority: Growing the core
First priority: Growing the core Drive core benefits Market Development Brands with purpose
Slide 20: Evolving the portfolio: Build on trends
Evolving the portfolio: Build on trends Naturals Therapeutics Male Grooming
Slide 21: Evolving the portfolio: Expand to new places
Evolving the portfolio: Expand to new places Baby Dove Prestige
Slide 22: Our latest acquisition: Carver Korea
Our latest acquisition: Carver Korea
Slide 23: Building channels for strong future growth
Building channels for strong future growth E-commerce Health & Beauty
Slide 24: Strength & agility in a fast-changing world
Strength & agility in a fast-changing world Strong global & local portfolio Insights on trends Speed in execution
Slide 25: Embracing digitalization
37 Embracing digitalization Communication E-commerce New business models
Slide 26: Summary: Building a stronger, more agile Unilever
Summary: Building a stronger, more agile Unilever • Well-positioned with global scale, local relevance and capability • Unmatched emerging market footprint • Growing the core and evolving the portfolio • Embracing digitalization and new channels • Fuelled by savings programmes
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