Unilever Plc · LSE:ULVR
Unilever — Q1 2006 Earnings Presentation
20 slides from Unilever's earnings presentation, 2006
Slide 1: Q1 2006 Roadshow
Q1 2006 Roadshow Handout Version 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. These forward-looking statements are based upon current expectations and assumpt
Slide 2: Q1 sales performance
Q1 sales performance 2.9% USG in Q1 5 4 USG (%) 3 2 1 0 2003 2004 2005 Q1 2006 Q1 price growth of 0.5% includes • Continuing year-on-year impact of price reductions • Price increases to recover input costs 2006 business priorities • Personal Care – 6% growth in the quarter – Strong programme, partic
Slide 3: Progress in Europe; Q1 operating margin
Progress in Europe • USG (0.5)% in the quarter • Good news in the quarter in a number of areas – UK sales stabilised – HPC sales stabilised – Good growth in Savoury and Heart Health • Q1 impacted by – Slow start to European Ice Cream – Weak quarter in France Q1 operating margin Q1 Q1 Change 2005 200
Slide 4: Outlook and Summary
Outlook • Priorities – Sustain top line growth – Improved margin • Operating margin – 2005 full year 13.2% (after (1.4)% restructuring, disposals and impairments) – 2006 outlook >13.4% (including (100)bps restructuring and +30 bps from Q1 profits on disposal) • Tax guidance lowered to 26% for 2006 S
Slide 5: Unilever's Change Agenda
Unilever’s Change Agenda Win key markets Build capabilities Brilliant Win with consumer customers marketing Fit to compete Our portfolio Foods Home & Personal Care Savoury & Dressings Skin Spreads Deodorants World Number 1 Laundry - #1 in D&E Weight Management World Number 2 Daily Hair Care - #1 in
Slide 6: Winning in key markets
Winning in key markets Win key markets Build a winning portfolio with more strong leadership positions High growth Leading market positions spaces Sharper choices and resource allocation Structure and discipline to execute People and reward aligned Building capabilities A focus for 2006 - crafting a
Slide 7: Building capabilities
Building capabilities Increasing the value that we can both gain by doing business together Win with customers Winning at the point of purchase Fit to compete Complete One Unilever implementation: A single management team in all markets Simplified, standardised business processes Fit to Majority of
Slide 8: Scale, agility, one face to customers
Scale, agility, one face to customers Customer Management in the USA - our unique store reach The operating executive structure CEO Patrick Cescau President President Finance Europe Foods Rudy Markham Kees van der Graaf Vindi Banga President President Human Resources Americas HPC Sandy Ogg John Rice
Slide 9: Organisation and Unilever's financial model
Organisation – categories & regions Clear, distinct and complementary roles Categories Regions Responsible for: Responsible for: Brand development Managing the business Innovation Deploying brands and innovations effectively Brand and category strategies Winning with customers Accountable for: Accou
Slide 10: Underlying sales growth; 2006 priorities
Underlying sales growth Underlying sales growth averaged 3.5% p.a. between 1995 & 2002, was below expectation in 2003 & 2004 and improved in 2005 5 % Sales growth, excluding acquisitions, disposals, and exchange rate movements 4.5 4 3.5 Typical growth rate for markets and categories in which Unileve
Slide 11: Regaining Momentum in Europe
Regaining Momentum in Europe Regaining momentum in Europe For consumers - value, choice and innovation – pricing in Frozen Food in UK and Home Care in the Netherlands – value ice cream in Germany – Heart Health blood pressure and cholesterol-reducing innovations, Axe Click For customers - improved v
Slide 12: Driving for Growth - Personal Care
Driving for Growth - Personal Care In Q1 • Growth around 6% • Strong profitability • Global, regional and local brands all growing strongly Deodorant Click Global Launch Teens Latin America Ultimate Clear Rexona Sport for Men World Cup activation Silk Dry 12
Slide 13: Hair and Skin
Hair Clear Ultimate anti-dandruff care Sunsilk Dove For all your To moisturise hair dramas and protect Skin Dove Summer Glow Axe combining moisturisers and a hint of self- A mind-altering range of gels for tan, daily moisturisation for beautiful guys’ different shower needs glowing skin to gradually
Slide 14: Driving for Growth - D&E Markets
Driving for Growth - D&E Markets In Q1 • Delivered 7% growth • Major contribution to Unilever growth • Broad-based progress across Foods and HPC • Broad-based across countries Unilever in D&E - a sustainable growth story ¾ Organic growth c. 8% since 1990 ¾ Proportion of sales from D&E up from 20% to
Slide 15: Drivers of growth in D&E - availability and affordability
Drivers of growth in D&E - availability Reaching shoppers in rural areas…. …and through the traditional and modern trade in urban areas Drivers of growth in D&E - affordability Blue Band Rin/Surf margarine sachets low price fabric cleaning Rama sachets affordable dairy cream alternatives Knorr Cubit
Slide 16: Driving for Growth - Vitality in Foods
Drivers of growth in D&E - consumer intimacy Omo Baby Lipton Milk Tea hypoallergenic for babies’ sensitive Knorr Salad Seasoning (China) skin (Turkey) Arabia Sunsilk - tailored solutions to local hair dramas Anti-Dandruff Clean & Fresh For Hair That Anti Sponge solves dandruff nourishes and deep Bre
Slide 17: Ways to a healthy heart - Flora/Becel pro.activ
Ways to a healthy heart - Flora/Becel pro.activ We have expanded the heart health benefits of the brand from cholesterol- reducing in our core spreads category…. …to milk and yoghurt…. …and daily yoghurt drinks… ...and created a €300m-plus business in 3 years. And now we are first to market with one
Slide 18: Driving for Growth - Vitality in HPC
“Tea Can Do That” communication - Lipton Lipton’s unique combination of health benefits, with antioxidants to fight free radicals Driving for Growth - Vitality in HPC 18
Slide 19: Dove Campaign for Real Beauty; Lifebuoy
Dove Campaign for Real Beauty Making women feel more beautiful every day by widening today’s narrow stereotypical view of beauty Singapore Brazil UK Promoting hygiene in Asia - Lifebuoy The Lifebuoy hand-washing programme helps save the lives of millions of children in India and Indonesia 19
Slide 20: Partnering the World Dental Federation - Signal
Partnering the World Dental Federation - Signal Encouraging oral health around the world through practical, sustainable programmes, activated locally. The 5c toothbrush also brings affordable quality to low income consumers Freedom from cleaning - Dirt is Good The “Dirt is Good” campaign, rolled out