Unilever Plc · LSE:ULVR
Unilever — Investor Day (November 2024)
69 slides from Unilever's investor day presentation, Nov 22, 2024
Slide 1: Unilever Investor Event – Hein Schumacher, CEO
Unilever Investor Event 22 November 2024 HEIN SCHUMACHER CHIEF EXECUTIVE OFFICER
Slide 2: Safe harbour statement
Unilever Investor Event 22 November 2024 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, concerning the financial condition, results of op
Slide 3: Agenda
ACTION PLAN 2030 Agenda Growth Action Plan: 1 year of progress Growth Action Plan 2030 Accelerating our transformation Value creation Q&A 3
Slide 4: One year of the Growth Action Plan
ACTION PLAN 2030 One year of the Growth Action Plan €1.5bn buyback €1.5bn complete Ice Cream buyback separation started Growth Acquired K18 announced Action Plan 3% quarterly UL Russia sale Oct 2023 interim dividend complete increased Announced €800m disposals productivity European Works programme C
Slide 5: New leadership in place with more diverse external experience
ACTION PLAN 2030 New leadership in place with more diverse external experience % of leaders in new roles in last 12 months Diverse talent & experiences >60% 25% external appointments in the ULE >40% 9 nationalities represented in the ULE >20% Refreshed Board 5 Unilever Senior Directors Leadership VP
Slide 6: Progress in our 2024 focus areas
ACTION PLAN 2030 Progress in our 2024 focus areas 1 Step up volume growth 2 Rebuild Gross Margins 3 Consistent delivery for improved competitiveness 6
Slide 7: Driving improved performance
ACTION PLAN 2030 Driving improved performance Four consecutive quarters of positive volume growth Gross Margin expansion GM (bps vs PY) 3.6% 600 Avg peer set Unilever 1.8% 2.2% 2.9% Avg peer set Unilever 420 -0.2% -0.3% -0.6% 300 215 0.9% 0.6% -0.5% 0 -1.1% -1.4% -2.1% -2.8% -300 Q1’23 Q2’23 Q3’23 Q
Slide 8: Faster growth led by Power Brands
ACTION PLAN 2030 Faster growth led by Power Brands 9M 2024 30 Power Brands 5.6% 4.3% 1.4% 1.3% UPG 4.1% UVG 2.9% Power Brands 12
Slide 9: Fewer, bigger and more impactful innovations
ACTION PLAN 2030 Fewer, bigger and more impactful innovations 12 POWER BRAND FOCUSED INNOVATIONS x2 big bold innovations in 2024 2x average project size € 100m+ average year 3 incremental turnover 13 Source: Unilever financial data as of 9M 2024
Slide 10: Market shares are sequentially improving
ACTION PLAN 2030 Market shares are sequentially improving Market Share TO weighted MAT value share (bps) Covers <70% of turnover, excluding MAT 1 unmeasured, fast-growing cells; 0bps e.g. Prestige, Wellbeing, & UFS H2 sequentially improving as 2 planned, but not to positive share yet Aim to return t
Slide 11: But… we have more to do to win consistently
ACTION PLAN 2030 But… we have more to do to win consistently Close the gap in unmissable brand superiority Strengthen our premium portfolio Unilever % superior to eyeball competition Unilever price tier vs. market fair share (indexed), MAT June '24 80% 117 100 100 implies in-line with market 71% 73%
Slide 12: Building for consistent, higher performance
ACTION PLAN 2030 Building for consistent, higher performance 1 Fewer things, done better, with greater impact 2 Scaling our strengths and replicating our successes 3 Stepping up areas of underperformance 4 Shaping a winning culture 16
Slide 13: Evolving global trends inform our strategy
ACTION PLAN 2030 Evolving global trends inform our strategy Macro-economic Consumers Changing retail Digital & Sustainability dynamics living differently landscape technology first Growing Ageing well & Retail consolidation AI-streamlined Climate action urbanisation longevity operations Channel shif
Slide 14: Building on the Growth Action Plan
ACTION PLAN 2030 Our 2030 strategy builds on progress we’ve made with the GAP Building on the Growth Action Plan: 18
Slide 15: Our Growth Action Plan 2030 – Sustainability
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS STRATEGY SUSTAINABILITY OUR WINNING CULTURE CULTURE 19
Slide 16: Our strategy begins with a renewed purpose
ACTION PLAN 2030 Our strategy begins with a renewed purpose that places consumers at the heart of everything we do 20
Slide 17: Our Growth Action Plan 2030 – Strategy
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS STRATEGY 22
Slide 18: 4 Business Groups, 30 Power Brands, 24 Top Markets
4 BUSINESS GROUPS 30 POWER BRANDS 24 TOP MARKETS
Slide 19: A focused portfolio across 4 Business Groups
ACTION PLAN 2030: A focused portfolio across 4 Business Groups Beauty & Wellbeing Home Care Hair Care Fabric Cleaning Skin Care Home & Hygiene Wellbeing3 Prestige Beauty 25% 24% Fabric Enhancers Unilever Turnover1 Personal Care 26% 25% Foods2 Deodorants Cooking Aids + Mini-meals Skin Cleansing Condi
Slide 20: Market making, unmissably superior Power Brands
ACTION PLAN 2030: Market making, unmissably superior Power Brands Drive majority of New brands post-Ice cream turnover (>75%) and separation profit growth Can be scaled 30 globally or regionally Power Brands Ice cream brands Where we focus first 25 Source: TO size as of 9M 2024 excluding Ice Cream
Slide 21: Market segmentation to deliver focus and impact
ACTION PLAN 2030: Market segmentation to deliver focus and impact Top 24 markets Top 24 markets – End-to-end category expertise 1UL markets North America Europe 15% Latin America India North Asia Unilever Indonesia Greater Asia turnover PTAB 85% 1-Unilever markets - scale & simplicity for smaller ma
Slide 22: Top markets run by Business Groups
ACTION PLAN 2030: Top 24 markets run by Business Groups Top 24 Markets Strategic approach 1 Designed to deliver BG strategies 2 End-to-end category focus 3 Dedicated customer teams for each BG 85% 4 Resources prioritised in-market 27 Source: Expected turnover split excluding Ice Cream
Slide 23: Smaller markets organised to benefit from scale
ACTION PLAN 2030: Smaller markets organised to benefit from scale 1UL Markets Strategic approach 1 Ruthless portfolio prioritisation 2 In-market demand creation & execution 15% Competitive cost base & streamlined 3 operations 28 Source: Expected turnover split excluding Ice Cream
Slide 24: Focus approach enables effective prioritisation of key opportunities
ACTION PLAN 2030: Our Focus approach enables effective prioritisation of key opportunities Double-down in India Accelerate & internationalise Prestige and Wellbeing Premiumise and accelerate the United States Grow select emerging market powerhouses Shift portfolio to premium in Europe 29
Slide 25: Double-down in India
ACTION PLAN 2030: Our Focus approach enables effective prioritisation of key opportunities Double-down in India 30
Slide 26: Hindustan Unilever delivered robust performance over the last decade
ACTION PLAN 2030: Hindustan Unilever delivered robust performance over the last decade 9 10 households Consistent Profitable Resilient in India use 1+ Unilever in brands Gross EBITDA Turnover Margin Margin Market share 8% CAGR +245 bps +710 bps > 85 % of portfolio in leadership position c.+200 bps 8
Slide 27: In 2024, driving competitive growth amid commodity volatility
ACTION PLAN 2030: In 2024, we’re driving competitive growth as we navigate ongoing volatility in commodity prices Improved Growth Gross Margin Expansion Competitive Momentum USG Winning Share Last 3 months 120bps 2.3% 1.7% + YTD gross margin 0.7% vs 2023 Q1 Q2 Q3 2021 20241 2024 32 Source: Last 3 mo
Slide 28: India will transform, with rising household income and consumption
ACTION PLAN 2030: In the next 10 years, India will transform, with rising household income and consumption # of households (million) 2005 / 219m 2018 / 293m 2030e / 386m > $40,000 $8,500 - $40,000 $4,000 - $8,500 < $4,000 Led by penetration increase in Led by consumption increase in FMCG growth lowe
Slide 29: We're transforming our business to further build our leadership
ACTION PLAN 2030: We’re transforming our business to further build our leadership Unmissably Superior Brands Premiumising the Portfolio Digitising the Value Chain Reshaping our portfolio in Science-led innovation AI powered operations from high growth spaces across our largest brands demand generati
Slide 30: Well positioned to lead growth as consumption increases
ACTION PLAN 2030: Well positioned to lead growth as consumption increases Example 85 Estimated increase in 24 Fabric Cleaning € consumption with GDP per capita curve India GDP per capita c. % from 2023 to 2033 21 € average value consumption per capita Average €8 18 Estimated per capita consumption u
Slide 31: Accelerate & internationalise Prestige and Wellbeing
ACTION PLAN 2030: Our Focus approach enables effective prioritisation of key opportunities Accelerate & internationalise Prestige and Wellbeing 36
Slide 32: Prioritising investments in Prestige and Wellbeing
ACTION PLAN 2030: Prioritising investments in Prestige and Wellbeing Strategic approach Power Brands 1 US first priority for investment 2 Selective international 2 expansion of Power Brands x Selective bolt-on acquisitions turnover outside US 3 by 2030 in the US and India 37
Slide 33: Our Growth Action Plan 2030 – Strategy
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS STRATEGY 38
Slide 34: Where we will excel to drive competitiveness & market making
ACTION PLAN 2030: Where we will excel to drive competitiveness & market making Unmissable Multi-year Social First Premiumisation Growth Brand Scalable Demand Channels Superiority Innovations Generation Holistic Superior science Elevate the core, Embedding our Strengthen superiority & technology scal
Slide 35: Where we will excel to drive competitiveness & market making
ACTION PLAN 2030: Where we will excel to drive competitiveness & market making Unmissable Multi-year Social First Premiumisation Growth Brand Scalable Demand Channels Superiority Innovations Generation Holistic Superior science Elevate the core, Embedding our Strengthen superiority & technology scal
Slide 36: Unmissable Brand Superiority evaluates holistic consumer experience
Unmissable brand superiority ACTION PLAN 2030: Unmissable Brand Superiority evaluates holistic consumer experience PROPOSITION 21 Input metrics for root cause analysis of competitive performance PACKAGING Market and proprietary PRODUCT Unilever data PROMOTION Bespoke weighting of the 6Ps at country
Slide 37: Differentiated proposition & superior pack identified for improvement
Unmissable brand superiority ACTION PLAN 2030: Differentiated proposition & superior pack identified for improvement UBS measure Trajectory Imperative to step up (2024 vs 2023) PROPOSITION Superior Proposition Enhancing innovation and differentiation 1 behind scalable multi-year platforms, led PACKA
Slide 38: Example: Hellmann's Brazil
Unmissable brand superiority ACTION PLAN 2030: Example: Hellmann’s Brazil 21 METRICS BEFORE AFTER Actions PROPOSITION 1 Address consumer PACKAGING Attractive pack demand for squeezy Product superiority pack format PRODUCT 2 Add superior flavour and premium innovation Salience PROMOTION 3 Own the sea
Slide 39: Where we will excel to drive competitiveness & market making
ACTION PLAN 2030: Where we will excel to drive competitiveness & market making Unmissable Multi-year Social First Premiumisation Growth Brand Scalable Demand Channels Superiority Innovations Generation Holistic Superior science Elevate the core, Embedding our Strengthen superiority & technology scal
Slide 40: Our innovation goals are premiumisation & market making
Multi-year scalable innovations ACTION PLAN 2030: Our innovation goals are premiumisation & market making BIGGER AND BOLDER 2x Innovation sales & project size UNMISSABLE SUPERIORITY 3 Science & tech platforms with wide applications ACCELERATED Increased year-on-year PIPELINES R&D investment 45
Slide 41: Leveraging our strengths & addressing gaps to drive impact
Multi-year scalable innovations ACTION PLAN 2030: Leveraging our strengths & addressing gaps to drive impact SELECT INNOVATION EXAMPLES Beauty & Wellbeing Personal Care Leveraging strengths - superior science & technology Hair Whole body - focused platforms with wide applications treatments deodoran
Slide 42: Where we will excel to drive competitiveness & market making
ACTION PLAN 2030: Where we will excel to drive competitiveness & market making Unmissable Multi-year Social First Premiumisation Growth Brand Scalable Demand Channels Superiority Innovations Generation Holistic Superior science Elevate the core, Embedding our Strengthen superiority & technology scal
Slide 43: We are premiumising through key thrusts
Premiumisation ACTION PLAN 2030: We are premiumising through 3 key thrusts 1 Elevating our core through innovation & branding 2 Scaling Prestige & Wellbeing Accelerate Internationalise Innovation in premium Elevated brand demand spaces proposition & packaging Developed Markets Innovation & market de
Slide 44: Where we will excel to drive competitiveness & market making
ACTION PLAN 2030: Where we will excel to drive competitiveness & market making Unmissable Multi-year Social First Premiumisation Growth Brand Scalable Demand Channels Superiority Innovations Generation Holistic Superior science Elevate the core, Embedding our Strengthen superiority & technology scal
Slide 45: We are shifting to Social First demand generation
Social-first Demand Generation ACTION PLAN 2030: We are shifting to Social First demand generation Traditional Social-First Marketing Marketing 1:1 Many : Many Modern Embedding our brands Marketing deeply in people’s lives by being in 1 : Many ‘culture at scale’ 51
Slide 46: Leveraging capabilities from digitally native brands to adapt approach
Social-first Demand Generation ACTION PLAN 2030: Leveraging capabilities from our digitally native brands to adapt approach Leveraging Acquired Brand Key Shifts Capabilities From To Content Insufficient content 20x social content + Influence & In-culture Community-led 1 Factory and utilisation 90% u
Slide 47: Where we will excel to drive competitiveness & market making
ACTION PLAN 2030: Where we will excel to drive competitiveness & market making Unmissable Multi-year Social First Premiumisation Growth Brand Scalable Demand Channels Superiority Innovations Generation Holistic Superior science Elevate the core, Embedding our Strengthen superiority & technology scal
Slide 48: Strengthen execution in modern & traditional trade, invest in fast-growing channels
Growth Channels ACTION PLAN 2030: We will strengthen our execution in modern & traditional trade, while investing in fast-growing channels Modern trade Traditional trade dComm Health & beauty AI-powered Digitalisation Tailored Improved ”perfect” store for better solutions for presence in execution s
Slide 49: Where we will excel to drive competitiveness & market making
ACTION PLAN 2030: Where we will excel to drive competitiveness & market making Unmissable Multi-year Social First Premiumisation Growth Brand Scalable Demand Channels Superiority Innovations Generation Holistic Superior science Elevate the core, Embedding our Strengthen superiority & technology scal
Slide 50: Our Growth Action Plan 2030 – Strategy
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS STRATEGY 57
Slide 51: Accelerating the capabilities needed for a rapidly changing world
ACTION PLAN 2030: We are accelerating the capabilities needed for a rapidly changing world Science & Lean Agile Net Scaled AI Technology Supply Chain Productivity At the forefront Operational Operational Harnessing of discovery and flexibility and excellence and scaling the application resilience th
Slide 52: Accelerating the capabilities needed for a rapidly changing world
ACTION PLAN 2030: We are accelerating the capabilities needed for a rapidly changing world Science & Lean Agile Net Scaled AI Technology Supply Chain Productivity At the forefront Operational Operational Harnessing of discovery and flexibility and excellence and scaling the application resilience th
Slide 53: Key science & technology platforms with wide applications
Science & Technology ACTION PLAN 2030: Key science & technology platforms with wide applications Microbiome Biotechnology Next Gen Materials Examples: Examples: Examples: • Probiotics with new benefits for Home Care • Bio-based ‘Rhamnotech’ superior cleaning • ‘GlutaGlow’ 10x vit C skin antioxidant
Slide 54: Future-fit R&D capabilities
Science & Technology ACTION PLAN 2030: Future-fit R&D capabilities Digital R&D Fragrance Packaging Partnerships Digital-first R&D, Investing €100m to Stepping up premium Accelerating powered by AI, for new build a new fragrance packaging & achieving models of discovery and faster discovery creation
Slide 55: Accelerating the capabilities needed for a rapidly changing world
ACTION PLAN 2030: We are accelerating the capabilities needed for a rapidly changing world Science & Lean Agile Net Scaled AI Technology Supply Chain Productivity At the forefront Operational Operational Harnessing of discovery and flexibility and excellence and scaling the application resilience th
Slide 56: Net productivity: procurement and production interventions
Lean Agile Supply Chain & Net Productivity ACTION PLAN 2030: Net productivity that truly impacts the P&L; we’re delivering in 2024 & building on this for consistent results in 2025+ Procurement Production interventions & logistics ~1 % Material cost savings p.a. -2 % Cost per unit reduction p.a. vs
Slide 57: Increasing capex for productivity and network transformations
Lean Agile Supply Chain & Net Productivity ACTION PLAN 2030: Increasing capex for productivity and driving network transformations Lean Supply Chain & Key Network Net Productivity Transformations % supply chain capex on net Productivity 55%+ 30% 2019 - 2022 2025+ 65
Slide 58: Accelerating the capabilities needed for a rapidly changing world
ACTION PLAN 2030: We are accelerating the capabilities needed for a rapidly changing world Science & Lean Agile Net Scaled AI Technology Supply Chain Productivity At the forefront Operational Operational Harnessing of discovery and flexibility and excellence and scaling the application resilience th
Slide 59: Scaled AI investments will power Unilever today & tomorrow
Scaled AI ACTION PLAN 2030: Scaled AI investments will power Unilever today & tomorrow 6 big tech, data & AI investments 3 foundational priorities Demand Net Foundations Creation Productivity for resilience for growth for savings 1 Customer centric approach 4 Autonomous factories 1 Integrated data 2
Slide 60: Our Growth Action Plan 2030 – Sustainability
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS STRATEGY SUSTAINABILITY CULTURE 69
Slide 61: Sustainability is central to what Unilever stands for
ACTION PLAN 2030: Sustainability is central to what Unilever stands for Setting long-term ambitions 2010 to transform our business Embedding & integrating 2020 across business & value chains Greater focus, for higher impact 2024 & accelerated delivery 70
Slide 62: We are committed to deliver sustainability targets
ACTION PLAN 2030: We are committed to deliver 15 sustainability targets Climate Nature Plastics Livelihoods Towards net Protect and Work to Enhance livelihoods zero emissions regenerate end plastic for people in our value nature waste chain By 2030… By 2030… By 2026… 100% Reduction in Scope 1 & 2 GH
Slide 63: Strategy for accelerating delivery based on three principles
ACTION PLAN 2030: Our strategy for accelerating delivery is based on three principles 1 2 3 Drive delivery against our Advocate for policy Capitalise on our sustainability goals & systems change sustainability strength with key retailer partners 72
Slide 64: Our Growth Action Plan 2030 – Our Winning Culture
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS OUR WINNING CULTURE CULTURE 73
Slide 65: Shifting behaviours to revitalise and shape our winning culture
ACTION PLAN 2030: OUR WINNING CULTURE We are shifting behaviours to revitalise and shape our winning culture Values People Behaviours Pioneering Best talent Care deeply Respect Inclusive leaders Focus on what counts Integrity Truly diverse Stay three steps ahead Responsibility Most engaged Deliver w
Slide 66: We will drive performance with more edge
ACTION PLAN 2030: OUR WINNING CULTURE We will drive performance with more edge New Behaviours Key Shifts 1 Upgrade goals aligned to Gap 2030 Higher standards of assessment 2 for top talent Improve performance & 3 development at scale Greater transparency & evaluation of 4 performance versus competit
Slide 67: Reward is now linked more closely to performance
ACTION PLAN 2030: OUR WINNING CULTURE Reward is now linked more closely to performance, with further to go Implemented Underway Directors’ remuneration policy better Simplified annual incentives for employees 1 1 designed to reward out-performance aligned with shareholder interests Greater line of s
Slide 68: Our Growth Action Plan 2030 – Sustainability
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS STRATEGY SUSTAINABILITY OUR WINNING CULTURE CULTURE 77
Slide 69: Our Growth Action Plan 2030 summary
OUR GROWTH ACTION PLAN 2030 PURPOSE: BRIGHTEN EVERYDAY LIFE FOR ALL GOAL: DELIVER BEST-IN-CLASS PERFORMANCE WITH MARKET-MAKING, UNMISSABLY SUPERIOR BRANDS FOCUS EXCEL ACCELERATE STRATEGY Unmissably Superior Brands 30 Power Brands Social First Demand Creation Science & Technology 24 Top Markets Multi