Unilever Plc · LSE:ULVR
Unilever — Investor Day (November 2017)
18 slides from Unilever's investor day presentation, Nov 29, 2017
Slide 1: Providing the fuel for growth AND margin
Providing the fuel for growth AND margin Marc Engel, Chief Supply Chain Officer 29th November 2017
Slide 2: The Unilever Supply Chain
The Unilever Supply Chain 488 contract 20m tonnes pa sold manufacturers 400+ primary distribution centres 306 factories 225 sites 50,000 67 countries SKUs 400k delivery points 5.5m shipments 1.5 billion km €34bn bought in spend 104,000 employees
Slide 3: Strong Progress to 2016
Strong Progress to 2016 Cost Cash Service (Annual Supply Chain Savings) (Working Cap. % Turnover) (Dispatch Rate) 0.3 -6.6 +180bps €1bn+ per annum 2009 2016 2011 2016
Slide 4: Strategic focus for today
Strategic focus for today Resetting Cost & Cost Asset Base Speed & Agility for a Changing Shopper Cash Digitising the Supply Chain Agility For Everyday Brilliant Execution growth
Slide 5: Supply Chain Programme key unlock to deliver our 2020 ambitions
Supply Chain Programme key unlock to deliver our 2020 ambitions From To (2016) (2020) ZBB BMI & €2 billion Underlying Overheads 16.4% 20.0% 360 bps Operating Margin Supply Chain €4 billion Capex % From 3.6% Turnover to 3.0% Cash Conversion 86% 100% Working Capital 1.5-2 days pa
Slide 6: Driving €4bn Savings in Supply Chain
Driving €4bn Savings in Supply Chain Underpinned by C4G Material Costs Production Costs Distribution Costs
Slide 7: The 5S Programme: Proven Delivery in Home Care
The 5S Programme Proven Strong and Consistent Delivery in Home Care Material Savings 2014-2017H1 +60% Gross Margin +460bps BMI +€100m UOM +480bps 2014 2015 2016 2017
Slide 8: Consistent 5S Programme now applied across all categories
Consistent 5S Programme now applied across all categories 5S Smart pricing Smart mix Smart buying Smart sourcing Smart product platform Design To Value Partner to Win
Slide 9: 5S - Smart Buying
5S - Smart Buying Unlocking Value via E-tender €billion e-Tendered 2015 2016 2017 2018 2020 Savings > €300m so far Capability built and now rolling out
Slide 10: Design To Value
Design To Value Already delivering early results +200bps +900bps +250bps
Slide 11: Partner to Win
Partner to Win Better Cost and Better Product Powders Packaging Laundry Liquids Chile Ecoboost ✓ Multi partner development ✓ New technology unlock ✓ Superior product PERFORMANCE ✓ Improved SUSTAINABILITY ✓ Disruptive COST From laminated carton to flexible packaging
Slide 12: Manufacturing & Planning
Manufacturing & Planning Reshaping for flexibility, responsiveness and low cost World Class Manufacturing Digital Transformation in Partnerships Supply Chain Production Cost savings +20% Non-WCM WCM sites sites
Slide 13: Distribution
Distribution Leveraging ZBB into our logistics operations Control Towers Segmentation Network Redesign Waste Agile 32% Costs Lean 12%
Slide 14: Cash: Reshaping Our Fixed Asset and Inventory Base
Cash Reshaping Our Fixed Asset and Inventory Base Structural improvement in Reduction in Inventory capital efficiency Capex % Turnover 4.2% 3.9% -6 days 3.6% -6 days 3.0% 2011 2016 2020 1.8 1.6 1.3 1.1 2012-14 2015 2016 Plan 17 Capex / Depreciation ratio Increasing Cash Productivity
Slide 15: Agility: Rapid Deployment of our Global Portfolio
Agility Rapid Deployment of our Global Portfolio Global Global Cross-Border e-Shopping basket Sourcing Operations Centre
Slide 16: Agility: Predicting & Mitigating Supply Chain Risk
Agility Predicting & Mitigating Supply Chain Risk Leveraging advanced Identify solutions by analytics to mitigate monitoring real-time data supply chain disruptions Response time: -50%; Quality issues: -20%
Slide 17: Underpinned by Everyday Brilliant Execution
Underpinned by Everyday Brilliant Execution Example Middle Americas: 2014 – 2017 Costs Service & Cash Quality Material Costs -270 bps Service +1000 bps Quality Defects -60% % TO Stocks -20% Production Costs -50 bps % TO Distribution Costs -50 bps % TO
Slide 18: To Summarise
To Summarise • Supply Chain is a source of fuel for Growth AND Margin • Comprehensive programme well on track to deliver: • €4bn of Supply Chain savings • 100% cash conversion • C4G as an unlock of • Speeding up innovation • Driving agility through digital transformation • Always underpinned by Ever