Unilever PLC · LSE:ULVR
Unilever — FY2007 Earnings Presentation
12 slides from Unilever's earnings presentation, Feb 7, 2008
Slide 1: Unilever Q4 and 2007 Full Year Results
Unilever Q4 and 2007 Full Year Results Patrick Cescau Group Chief Executive Jim Lawrence Chief Financial Officer 7th February 2008 Safe Harbour Statement This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private S
Slide 2: Key Messages and 2007 Highlights
Key Messages • Improved business performance in 2007 • Leaner, more agile, more globally-oriented business • On track to achieve our 2010 growth and margin targets 2007 Highlights • Third consecutive year of accelerating growth • Underlying margin improvement • Increasing contribution to earnings fr
Slide 3: Sales in 2007 and Strong Organic Growth
Sales in 2007 Q4 2007 Turnover €9.9bn €40.2bn Change 1.7% 1.4% Acquisitions and disposals (0.8)% (0.8)% Currency effect (3.4)% (3.1)% Underlying sales growth 6.1% 5.5% Volume 3.0% 3.7% Price 3.0% 1.8% Strong Organic Growth Underlying sales growth Q4 +6.1% 2007 +5.5% 7% 6% 5% 4% 3% 2% 1% 0% * * 05 05
Slide 4: Europe and Americas
Europe Q4 2007 Underlying Sales Growth +5.5% +2.8% Operating margin 2.9% 11.0% Underlying margin change* +170bps +90bps • Improved growth • Underlying margin improvement driven by step-up in productivity • Pace of change greatest in Europe *Before restructuring, disposals and one-off items (Q4 2006
Slide 5: Asia Africa and Innovation Driving Growth
Asia Africa Q4 2007 Underlying Sales Growth +10.0% +11.1% Operating margin 17.9% 13.8% Underlying margin change* (110)bps +20bps • Strong growth reflecting vibrant markets and priority status • All major D&E businesses growing strongly • Traditional strength in Home Care and Personal Care, and stron
Slide 6: Savoury, Dressings and Spreads; Ice Cream and Beverages
Savoury, Dressings and Spreads Q4 2007 USG 5.8% 5.0% Ice Cream and Beverages Q4 2007 USG 5.7% 4.2%
Slide 7: Home Care and Personal Care
Home Care Q4 2007 USG 5.6% 6.1% Personal Care Q4 2007 USG 7.2% 6.7%
Slide 8: Operating Margin Development
Operating Margin Development: 2007 2006 2007 Change Operating margin 13.6% 13.1% (0.5)% Including RDIs* (0.6)% (1.4)% (0.7)% Underlying change 0.2% Key drivers: A&P 0.0% Savings 2.4% Cost/price/mix (2.2)% * Restructuring, disposals and one-off items (2006 gains on US health care and UK pensions) Ope
Slide 9: Commodity Costs and Drivers of EPS Growth
Commodity Costs Commodity cost impact on margin 350 300 250 200 bps 330 150 260 100 220 150 160 160 50 100 120 80 0 2003 2004 2005 2006 2007 Q1 07 Q2 07 Q3 07 Q4 07 2008 Outlook: ≥ rate of Q4 2007 Drivers of EPS Growth % Operating profit (3) Finance costs 3 JVs, associates and non- % current investm
Slide 10: Balance Sheet and Cash Flow; 2008 Outlook
Balance Sheet and Cash Flow • Competitive balance sheet – ‘strong single A’ • Cash flow from operating activities €5.2bn • Net debt €8.3bn • €1.5bn share buy-backs completed in 2007 • 2008 share buy-back programme ≥ €1.5bn 2008 Outlook 2008 to mark a further step towards our 2010 goals • 2010 goals
Slide 11: 2008 Business Environment; Responding to Challenges and Opportunities
2008 Business Environment • Slower growth for some economies • Growth of Unilever’s markets at 4-5% • Unilever benefits from • Breadth of portfolio (across price points and channels) • Broad geographic exposure • Continued pressure from commodity costs well into 2008 Responding to Challenges and Opp
Slide 12: Business Priorities
Business Priorities 1. Maintain competitiveness 2. Drive for sustainable margin improvement 3. Invest selectively to gain market share Unilever Q4 and 2007 Full Year Results