Unilever PLC · LSE:ULVR
Unilever — Q3 2017 Earnings Presentation
15 slides from Unilever's earnings presentation, Oct 19, 2017
Slide 1: Unilever Trading Statement Q3 2017
Unilever Trading Statement Q3 2017 Graeme Pitkethly / Andrew Stephen October 19th 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: Markets remain tough in the short-term
Markets remain tough in the short-term Market demand weak overall Some signs of improvement in EM Plenty of growth opportunities Market volume growth India improving Brands with strong purpose China improving Innovation with new benefits 0% Brazil flattening out Faster-growing segments South Africa
Slide 4: Q3: USG +2.6% driven by Emerging Markets
Q3: USG +2.6% driven by Emerging Markets Emerging markets Developed markets Factors affecting this quarter USG 5.5% 6.3% -0.4% -2.3% Natural disasters in September • Hurricanes in Caribbean, Texas & Florida • Earthquakes in Mexico UPG 4.4% 5.1% Ice cream in Europe UVG 0.3% 1.8% 0.1% (0.4)% • Soft en
Slide 5: Connected 4 Growth landing at just the right time
Connected 4 Growth landing at just the right time Differentiated global innovation, scaled faster Landing more local innovations, with speed More channel innovation Shaping the portfolio towards higher growth segments Focus: getting back to growing ahead of our markets Benefits to be realise
Slide 6: C4G: Differentiated global innovation, scaled faster
C4G: Differentiated global innovation, scaled faster Purpose-led Rolling out faster to more markets Now in 26 markets Now in 20 markets Differentiated technology Now in 19 markets Rolling out
Slide 7: C4G: Landing more local innovations, with speed
C4G: Landing more local innovations, with speed Omo naturals, China Lakmé, Indonesia Brauner Bär CIF outdoor range Whitespace launch Launched in 3 months Lipton tea pot bags Knorr fresh meal kits Launched in 12 months Launched in 6 months Brought back an icon 3rd party collaboration
Slide 8: C4G: More channel innovation
C4G: More channel innovation Health & Beauty E-commerce Neutral Dove Face Care KJU by Lux Amazon bundles Retail Direct to Consumer St Ives skin bar Grom Verve Skinsei
Slide 9: M&A shaping the portfolio towards higher growth segments
M&A shaping the portfolio towards higher growth segments 18 acquisitions announced since 2015 Consideration Primarily in Personal Care €8.2bn Prestige Acquired turnover Premium price brands in mass €2.1bn New channels Like for like growth Naturals 16% 2015-2017 Acquisitions & Disposals + Spreads wil
Slide 10: Q3: Turnover headwind from stronger euro
Q3: Turnover headwind from stronger euro 108 Euro vs. basket of 1.1% currencies rebased to 100 2.6% (5.1%) €13.4bn €13.2bn 100 Jan ‘16 Jul ‘16 Jan ‘17 Jul ‘17 Source: ECB Most emerging market currencies stable or stronger vs. the USD
Slide 11: Q3 category performance
Q3 category performance Personal Care Home Care Food (excl. Spreads) Refreshment USG 2.6% 1.8% 3.3% 4.6% 2.0% 2.7% 6.1% 3.1% 4.9% UPG 3.3% 5.7% 2.5% 2.6% 0.9% 2.7% 2.0% UVG 1.0% 0.8% 1.3% 0.6% 1.2% 0.0% (0.7)% (2.4)% H1’17 Q3’17 H1’17 Q3’17 H1’17 Q3’17 H1’17 Q3’17 Spreads USG: (3.7)% (2.0)%
Slide 12: Q3 regional performance
Q3 regional performance Asia/AMET/RUB Latin America North America Europe USG 5.5% 6.0% 5.0% 6.6% 0.3% (2.9)% (0.8)% (1.6)% 3.3% UPG 7.0% 4.8% 6.0% 2.7% UVG 0.8% (0.1)% 0.3% 0.5% (1.0)% (0.4)% (0.7)% (0.6)% (0.2)% (2.0)% (2.2)% H1’17 Q3’17 H1’17 Q3’17 H1’17 Q3’17 H1’17 Q3’17
Slide 13: 2017 full year outlook
2017 full year outlook Underlying sales growth within the 3-5% range Underlying operating margin up at least 100bps Strong cash flow
Slide 14: Accelerating Connected 4 Growth: good progress
Accelerating Connected 4 Growth: good progress • Country category business teams fully in place Simpler, faster organisation • Foods & Refreshment integration on track 20% underlying operating margin • Savings programmes ZBB and 5-S – faster than planned • Accelerated M&A –9 acquisitions in the last
Slide 15: Unilever Trading Statement Q3 2017
Unilever Trading Statement Q3 2017 Graeme Pitkethly / Andrew Stephen October 19th 2017