Unilever Plc · LSE:ULVR
Unilever — Q3 2005 Earnings Presentation
21 slides from Unilever's earnings presentation, 2005
Slide 1: Unilever's Third Quarter 2005 Roadshow Presentation
Unilever’s Third Quarter 2005 Roadshow Presentation Handout Version 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. These forward-looking
Slide 2: Continued Progress / Q3 Sales Performance
Continued Progress z Market shares stable z Strong growth in priority areas – D&E, Personal Care, Vitality z Steady improvement in North America z Step up in A&P investment z Cost pressures fully absorbed by savings programmes and better mix z New organisation improving innovation and execution z Pr
Slide 3: Priority - Building On Strengths; Regaining Momentum in Europe
Priority - Building On Strengths z D&E Markets – Sustained volume-driven growth – Broad-based across all categories and regions z Personal Care – Sales growth c. 10% in the quarter – Successful innovations in Skin, Deodorants & Hair z Vitality Driving key 2005 innovations, e.g. – Knorr Vie shots – A
Slide 4: Operating Margin Development / Looking Forward
Operating Margin Development Operating Margin Q3 YTD As reported 15.6% 14.4% Change year on year (1.4%) (1.3%) Includes: Slim.Fast impairment - (1.2%) Lower net restructuring - 0.6% Margin change excluding these items (1.4%) (0.7%) z Savings and mix more than offset input cost inflation z A&P drivin
Slide 5: Driving for Growth - Personal Care
Driving for Growth - Personal Care Maximising the Deodorant Portfolio Unlimited Global Launch Silk Dry Global Launch For Men - Won’t Let You Down award-winning advertising Lynx Advertising UK Repair to Shaving Damage Teens Latin America Communication
Slide 6: Optimising Brand Positions in Hair; Building on Strength in Skin
Optimising Brand Positions in Hair Sunsilk - Truly understands your Dove to hair Moisturise and Protect Building on Strength in Skin - Dove and Ponds Dove Cool Moisture Ponds Rejuvenesse With pure cucumber extract and Premium anti-aging face soothing green tea - for skin that care with an affordable
Slide 7: Driving for Growth - D&E Markets
Driving for Growth - D&E Markets Performance in D&E in 2005 z Major contribution to growth this year z Broad-based progress across Foods and HPC z Broad-based across countries
Slide 8: Unilever in D&E - A Sustainable Growth Story
Unilever in D&E - A Sustainable Growth Story z Around 35% of Unilever sales are in D&E markets - equating to €17 bn per annum z Deep local roots in these markets z Consistent organic growth rate averaging around 8% over the last fifteen years z Growth at attractive margin - around the Unilever avera
Slide 9: Drivers of Growth in D&E - Availability and Affordability
Drivers of Growth in D&E - Availability …and through the “traditional” and modern trade in urban areas Drivers of Growth in D&E - Affordability Rama Lifebuoy Rin/Surf affordable dairy cream low price fabric cleaning small soap bars with proven alternatives sachets germ protection Knorr Cubitos low u
Slide 10: Drivers of Growth in D&E - Consumer Intimacy
Drivers of Growth in D&E - Consumer Intimacy Lipton Milk Tea Omo Baby Knorr Salad Seasoning (China) hypoallergenic for babies’ sensitive Arabia skin (Turkey) Sunsilk - tailored solutions to local hair dramas Anti-Dandruff Clean & Fresh For Hair That nourishes and Breaks and Anti Sponge solves dandru
Slide 11: New Avenues to a Healthy Heart - pro.activ; Knorr Vie
New Avenues to a Healthy Heart - 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-a-day
Slide 12: Tea Can Do That - Lipton; Bertolli
Tea Can Do That Communication - Lipton Lipton’s unique combination of health benefits, with antioxidants to fights free radicals The Essence of the Mediterranean Diet - Bertolli
Slide 13: Low Guilt Indulgence - Ice Cream
Low Guilt Indulgence - Ice Cream Ben & Jerry’s Carte D’Or Light Body & Soul Breyers Smart Range and Organic Solero Orange Fresh 0% fat Popsicle Klondike Sugar Free Slim-a-Bear Driving for Growth - Vitality in HPC
Slide 14: Dove Campaigns for Real Beauty; Promoting Hygiene - Lifebuoy
Dove Campaigns for Real Beauty Across the Globe Brazil Singapore Japan Promoting Hygiene in D&E - Lifebuoy
Slide 15: Partnering the World Dental Federation - Signal; Dirt Is Good
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
Slide 16: Organisation
Organisation Organisational Developments 2005 z Unilever Executive operational from April z Over 100 senior appointments announced since February z New organisation improving innovation and execution z Legal structure review in action - on course to be concluded in time for May AGM 2006
Slide 17: New Organisation; Categories & Regions
New Organisation • Simpler, faster, more accountable • Proximity to market, Prioritisation of resource, Performance focus CEO Patrick Cescau President Europe Kees van der Graaf President Chief Officer HPC Finance President Ralph Kugler Rudy Markham Americas John Rice President Chief Officer Presiden
Slide 18: One Unilever in Action - Customer Management in the USA
One Unilever in Action - Customer Management in the USA Company Overview
Slide 19: Financial Objectives / Alignment
Financial Objectives Overarching ambition: Top Third Total Shareholder Return, over a 3 year rolling period out of peer group of 20 other companies. Outlook to 2010: • Generation of free cash flow in the period 2005-2010 to be €25-30 bn • A progressive improvement in Return on Invested Capital • An
Slide 20: Unilever's Strong Portfolio / Underlying Sales Growth
Unilever’s Strong Portfolio Unilever’s World Category Positions Our $1bn brands Savoury & Dressings Spreads Weight Management Tea Ice Cream Frozen Foods #1 in Europe Laundry #1 in D&E Household Care Focus on 2 brands Daily Hair Care #1 in D&E Skin Deodorants Number 1 Focus on country Oral Care stron
Slide 21: Additional for Q3
Additional for Q3 Q3 Underlying Sales Growth % Savoury & Dressings 4.5 Spreads & Cooking Products (0.7) Ice Cream & Frozen (1.4) % Health & Wellness & 1.8 Europe (2.0) Beverages Americas 4.9 Foods 1.2 Asia/Africa 11.2 Home Care 2.3 Total 3.5 Personal Care 9.5 Home & Personal Care 6.6 Total 3.5