Slide 1: Unilever Full Year 2018 Results
Unilever Full Year 2018 Results Alan Jope / Graeme Pitkethly 31st January 2019
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This announcement 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 3: Alan Jope, CEO
Alan Jope WK CEO Unlove” STOCK POTS Sana bes CHICKEN A) STOCK
Slide 4: 2018: Continued profitable growth in volatile markets
2018 : Continued profitable growth in volatile markets Growth Margin Earnings Cash Underlying Sales Growth Underlying Operating Margin Underlying EPS Free Cash Flow exc. spreads +3.1% +90 bps +5.2% €5.0 bn +2.1% +50 bps +12.8% €(0.4) bn Underlying Volume Growth Gross Margin Constant Underlying EPS v
Slide 5: Graeme Pitkethly, CFO
D) Graeme Pitkethly ie eS CFO Unilever” STOCK POTS Scio bes CHICKEN A) STOCK
Slide 6: 2018 priorities
2018 priorities Integration of Foods & Refreshment Exit spreads and restructure stranded fixed costs Stepped up innovation and execution enabled by C4G Continued focus on non-value added costs Share Buyback of up to €6 billion Agreement to acquire Horlicks Acceleration of digital transformation
Slide 7: Volatile and uncertain market conditions
Volatile and uncertain market conditions Currencies vs. USD Crude oil $/barrel Geopolitical uncertainty Rebased to 100 Rebased to 100 Source Nasdaq
Slide 8: Strong volume growth, price picked up
Strong volume growth, price picked up USG 4.3% 3.7% 1.9% 3.8% 2.9% 3.1% UPG 1.0% UVG 2.1% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 FY 2018 Underlying Sales Growth exc. Spreads exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
Slide 9: Emerging markets volume accelerating
Emerging markets volume accelerating Emerging markets footprint Emerging markets underlying volume growth Developed markets 4% 3% 2% 1% Emerging 0% markets 10 year 2018 Turnover exc. Spreads 2016 2017 2018 average
Slide 10: Beauty & Personal Care
Beauty & Personal Care Full Year 2018 USG 3.1% Prestige UPG UVG 2.5% 2.5% New brands UOM +80bps Underlying Sales Growth exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
Slide 11: Home Care
Home Care Full Year 2018 USG 4.2% More sustainable UPG UVG 2.5% 2.3% Market development UOM +80bps Underlying Sales Growth exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
Slide 12: Foods & Refreshment
Foods & Refreshment Full Year 2018 USG 2.3% Natural trends UPG UVG 2.5% 1.6% Acquisitions UOM +80bps Underlying Sales Growth exc. Spreads exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards Underlying Operating Margin inc. Spreads
Slide 13: Asia / AMET / RUB
Asia / AMET / RUB Full Year Quarterly trend Turnover €22.9bn USG 6.5% 5.9% 6.3% 6.6% 6.0% UPG UVG USG 6.2% UVG 4.3% Q4’17 Q1’18 Q2’18 Q3’18 Q4’18
Slide 14: Latin America
Latin America Full Year Quarterly trend USG 4.6% 2.2% (6.9)% 1.5% (0.4)% Turnover €7.0bn UPG UVG USG (1.0)% UVG (1.7)% Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Underlying Sales Growth exc. Venezuelan Price from Q417 onwards and Argentinian Price from 1 July 2018 onwards
Slide 15: Argentina hyperinflation
Argentina hyperinflation Excluded : Price impact 15bps 35bps 70bps 140bps 50bps FY impact 50bps Total UL USG Argentina 8.9% 10.0% (10.3)% (21.6)% (9.7)% “Normal” pricing 2% per month from Q3 would add back 20 bps on FY USG 64.0% 34.2% 1.0% UPG 17.4% 17% 2% per month price cap from Q3 7.8% UVG (6.3)%
Slide 16: North America
North America Full Year Quarterly trend Turnover €8.8bn USG 2.8% 3.2% (1.0)% 1.9% 0.4% UPG UVG USG 1.0% UVG 0.7% Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Underlying Sales Growth exc. Spreads Turnover Full Year exc. Spreads
Slide 17: Europe
Europe Full Year Quarterly trend Turnover €11.3bn USG 0.3% 0.0% 1.1% 1.5% 0.8% UPG UVG USG 0.9% UVG 1.0% Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Underlying Sales Growth exc. Spreads Turnover Full Year exc. Spreads
Slide 18: Full Year 2018: Turnover
Full Year 2018: Turnover USG +2.9% =o. (6.7%) €53.7bn €51.0bn FY 2017 UVG UPG Spreads Disposal Acquisition FX FY 2018
Slide 19: Full Year 2018: High-quality margin delivery
Full Year 2018: High-quality margin delivery Increase in spend of €60m + 90 bps
Slide 20: Full Year 2018 Underlying Earnings per Share
Full Year 2018 Underlying Earnings per Share
Slide 21: Cash flow & balance sheet
Cash flow & balance sheet Cash return to Free Cash Flow ROIC Net debt Shareholders Net debt / EBITDA Share Buyback € 5.0bn 1.9x €6.0 bn 18.8% €(0.4)bn €20.8bn €4.0 bn vs 2017 Net debt Dividends
Slide 22: Alan Jope, CEO
Alan Jope WK CEO Unlove” STOCK POTS Sana bes CHICKEN A) STOCK
Slide 23: 2019 priorities
2019 priorities ❑ Faster 4G growth: Consistent, Competitive, Profitable and Responsible ❑ Sustainable business and brands with purpose ❑ Future-fit: Speed and digital capability ❑ 2020 margin target
Slide 24: 2019 outlook
2019 outlook ❑ Underlying sales growth in lower half of multi-year 3-5% range • Slower growth in our markets • Benefit from acquisition and execution ❑ Underlying Operating Margin: continued progress to 20% • Continued benefit from savings programmes • Competitive BMI ❑ Strong cash flow
Slide 25: Unilever Full Year 2018 Results
Unilever Full Year 2018 Results Alan Jope / Graeme Pitkethly 31st January 2019