Unilever Plc · LSE:ULVR
Unilever — Consumer Analyst Group of New York (CAGNY) Conference 2022
32 slides from Unilever's conference presentation, Feb 22, 2022
Slide 1: Unilever at CAGNY
Unilever at CAGNY Alan Jope & Graeme Pitkethly 22nd February 2022
Slide 2: Contents
Contents Unilever overview Graeme Pitkethly 2021 results Graeme Pitkethly Strategic choices Alan Jope Summary Alan Jope 2
Slide 3: Unilever overview and FY 2021 results
Graeme Pitkethly Unilever overview and FY 2021 results 22nd February 2022
Slide 4: Safe harbour statement
Safe harbour 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’, ‘vi
Slide 5: Unilever at a glance
Unilever €52bn 3.4bn #1 turnover full year people use a Unilever CPG employer of choice 2021 product everyday in over 50 markets Home Care 20% Beauty & Developed Personal Markets 42% Care Emerging 42% Markets 58% Foods & Refreshment 38% 5 Note: all figures as of full year 2021
Slide 6: Unilever brands and sustainability leadership
Unilever €27bn >80% Top from our top 13 brands of turnover increasing of GlobeScan or stable brand power Sustainability Leaders survey for over 10 years 4 1.7bn Leader consecutive years as digital IDs collected in Dow Jones most effective marketer for targeted Sustainability Index marketing since 20
Slide 7: 2021 Delivery
2021 Delivery FY Growth Pricing Growth Competitive Growth Underlying Sales Growth 4.9% 4.1% 4.5% 53% 1.6% % Business Winning MAT1 1.6% 1.0% 0.3% Underlying Volume Growth FY'20 Q1'21 Q2'21 Q3'21 Q4'21 1Moving Annual Total / Last 52 weeks 7
Slide 8: 2021 delivery
2021 delivery Margin Cash Restructuring Savings ROIC investment 19% 18% 19% 18% 17% Consistent strong -10bps vs 2020 cash flow 18.4% €6.4bn 2017 2018 2019 2020 2021 Earnings Returns to shareholders +5.5% current +3% dividend +7.8% constant €3bn share buy back 8
Slide 9: Performance accelerating
Performance accelerating USG % 3.2% 2-year CAGR 4.5% 3.6% 3.2% 2.9% 2.8% 1.9% 2016 2017 2018 2019 2020 2021 % Business Winning (MAT) UOM % 53% 53% 19.1% 51% 18.6% 18.5% 18.4% 44% 44% 17.7% 42% 16.4% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 USG: 2016-2018 restated due to treatment
Slide 10: Looking forward: Unprecedented inflation, margin recovery expected
Looking forward: Unprecedented inflation, margin recovery expected Margin to be restored after 2022, with the majority coming back in 2023 GM (bps) (150) 100 (30) (160) 30 110 10 80 50 60 50 30 (55) (120) Includes Covid costs & mix UPG% 7.2% (90)bps headwind 4.5 4.4 4.8% 8.0% 7.0% 4.3 4.2 3.3% 2.9%
Slide 11: Guidance and building blocks of margin recovery
Guidance and building blocks of margin recovery 2022 Guidance 4.5-6.5% price led growth 2023 and 2024 margin recovery Maintain competitive levels of spend in BMI, Input cost deflation R&D and Capex Pricing carry over • FY UOM 16-17%, down by 140-240bps • H1 more heavily impacted than H2 • Margin to
Slide 12: Strategic Choices
Alan Jope Strategic Choices 22nd February 2022
Slide 13: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Accelerate Purpose -led, Move Win with Lead in future-fit USA, India, portfolio into brands and channels of organisation China and high growth innovation the future & culture EMs spaces 13
Slide 14: Winning with our brands
Winning with our brands 13 Product Bigger, better €1bn+ brands superiority innovation 6.4% 71% >€1bn FY’21 USG of turnover tested 2x incremental turnover 50% of turnover winning vs competition vs 2020 vs 47% in 2019 14
Slide 15: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Accelerate Purpose -led, Move Win with Lead in future-fit USA, India, portfolio into brands and channels of organisation China and high growth innovation the future & culture EMs spaces 15
Slide 16: Accelerating in the USA
Accelerating in the USA €10bn turnover 2 year CAGR >5% USG% 7.7% 3.7% 0.9% 0.2% Growing competitively 0% '17 '18 '19 '20 '21 % BW (MAT) 60% >65% Prestige Beauty and Health & Wellbeing contributing strongly '17 '18 '19 '20 '21 16
Slide 17: Accelerating in India
Accelerating in India €5.6bn turnover CPG leader USG% 13.4% 11.2% 7.7% 6.1% High competitiveness -1.7% '17 '18 '19 '20 '21 % BW (MAT) >75% Strong focus on market development '17 '18 '19 '20 '21 17
Slide 18: Accelerating in China
Accelerating in China €3.3bn turnover Now #3 market for Unilever USG% 14.3% 7.9% 6.9% 4.2% 2.0% Competitive, volume-led growth '17 '18 '19 '20 '21 % BW (MAT) >55% Selective roll-out of 20% Prestige Beauty and Health & Wellbeing '17 '18 '19 '20 '21 18
Slide 19: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Accelerate Purpose -led, Move Win with Lead in future-fit USA, India, portfolio into brands and channels of organisation China and high growth innovation the future & culture EMs spaces 19
Slide 20: Channels – Digital Commerce
Channels – Digital Commerce 44% Digital capabilities 2021 eCom growth 47 21 37 Digital Hubs U-Studios People Pure play eB2B Data Centres Omni +31% +24% +91% 1.7bn 1.5m+ 13,000 eCom TO contribution digital IDs assets created insight studies across 35,000 delivered 13% projects 2% '16 '17 '18 '19 '20
Slide 21: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Accelerate Purpose -led, Move Win with Lead in future-fit USA, India, portfolio into brands and channels of organisation China and high growth innovation the future & culture EMs spaces 21
Slide 22: A new, future-fit organisation
A new, future-fit organisation One Unilever End-to-end scale in From matrix to strategy and Extreme corporate category P&L accountability centre and focused responsibility business operations Delivering €600m of savings across 2 years 22
Slide 23: A new, future-fit organisation: Business Groups
A new, future-fit organisation Business Groups: end-to-end strategy and P&L responsibility Corporate Centre Beauty & Personal Home Nutrition Ice Cream Wellbeing Care Care Hair Care Skin Cleansing Fabric Cleaning Scratch Cooking Ice Cream Skin Care Deodorant Fabric Enhancers Healthy Snacking Prestige
Slide 24: A new, future-fit organisation: Business Units
A new, future-fit organisation Business Units: in market operational execution Corporate Centre Beauty & Personal Home Nutrition Ice Cream Wellbeing Care Care 7 / 8 geographic Business Units under each Business Group. North America LATAM Europe + ANZ METR North Asia South Asia Indonesia South-East A
Slide 25: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Accelerate Purpose -led, Move Win with Lead in future-fit USA, India, portfolio into brands and channels of organisation China and high growth innovation the future & culture EMs spaces 25
Slide 26: Portfolio change
Portfolio change Acquisitions Disposals Portfolio rotation (‘17-’21 % of TO) €16bn capital invested €11bn proceeds in 29 acquisitions from 12 disposals 17% since 2017 since 2017 Other 13% 7% Functional Other Prestige Nutrition 2% 17% 43% Tea 98% 33% 93% Spreads BPC 65% UL Peers avg 33% High teens RO
Slide 27: Portfolio change
Portfolio change ‘21 USG contribution Prestige Beauty and Functional Nutrition (bps contribution to ’21 USG from acquisitions growing bps contribution to Unilever USG% and disposals since ‘17) 4.5% 70 60 0.4% 0.7% 40 40 3.4% 10 0 FY '19 FY '20 Q1'21 Q2'21 Q3'21 Q4'21 USG USG USG excl. acquisitions &
Slide 28: Portfolio change - Prestige Beauty & Functional Nutrition
Portfolio change - Prestige Beauty & Functional Nutrition 2015 2017 2018 2019 2020 2021 Prestige Beauty Functional Nutrition 28
Slide 29: Five clear strategic priorities
Five clear strategic priorities 1. 2. 3. 4. 5. Accelerate Purpose -led, Move Win with Lead in future-fit USA, India, portfolio into brands and channels of organisation China and high growth innovation the future & culture EMs spaces 29
Slide 30: Performance accelerating
Performance accelerating Step up in 2 year CAGR Continue to land pricing Winning through the year as inflation increases competitively USG%: ‘20-’21 2-year CAGR UPG% Business Winning% 4.9% 53% 53% 4.2% 4.1% 51% 3.4% 2.8% 44% 44% 2.3% 1.6% 42% 1.0% 0.3% Q1 Q2 Q3 Q4 FY'20 Q1'21 Q2'21 Q3'21 Q4'21 2016
Slide 31: 2022 priorities
2022 priorities Continuing growth acceleration Managing inflationary pressure while investing for growth Implementing new operating model 31
Slide 32: Unilever at CAGNY
Unilever at CAGNY Alan Jope & Graeme Pitkethly 22nd February 2022
Unilever — Consumer Analyst Group of New York (CAGNY) Conference 2022 on 6ix