Unilever PLC · LSE:ULVR
Unilever — UBS Consumer Conference 2012
36 slides from Unilever's conference presentation, Mar 6, 2012
Slide 1: Unilever - UBS Conference
Unilever - UBS Conference James Allison, Head of IR & M&A Edinburgh, Scotland 6th March 2012
Slide 2: Agenda
Agenda 1 2011 financial results 2 Unilever in Africa: the opportunity 3 M&A as a growth driver
Slide 3: Unilever objectives
Unilever objectives 1. Volume growth ahead of the market 2. Steady and sustainable core operating margin improvement 3. Strong cash flow
Slide 4: 2011: Strong performance in a challenging environment
2011: Strong performance in a challenging environment Strong growth Growth acceleration in emerging Value shares improving markets USG USG bps change 6.5% 11.5% 2.0% 2.2% 2.0% 2.2%20 4.1% 7.9% 3.5% 8.1% 10 2009 2010 2011 2009 2010 2011 FY 2011 L12 w
Slide 5: 2011: Broad based category growth
2011: Broad based category growth Underlying sales growth Personal care: double-digit sales growth in H2 8.2% 8.1% 4.9% Home care: good balance between volume and 4.9% price and value share gains Refreshment: driven by Ice Cream innovation (e.g. Magnum launch in the US) PC HC Refreshment Foods Foods
Slide 6: 2011: Accelerated growth in emerging markets
2011: Accelerated growth in emerging markets Emerging markets underlying sales growth 13% 12% 12% 10% 11% Outstanding performance in 2011 8% 8% 8% 7% 8% 54% of turnover Mid-single digit volume growth consistent with the last 20 years Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 . FY10 FY11
Slide 7: 2011: Underlying operating margin down 10bps
2011: Underlying operating margin down 10bps -180bps +100bps +70bps 15.0% 14.9% 2010 Gross Margin A&P Overheads 2011 Overheads are all costs below gross profit but excluding A&P
Slide 8: 2011: Core earnings per share growth
2011: Core earnings per share growth €0.01 €0.11 €0.04 €0.01 €0.02 €1.41 €1.36 Core EPS growth 4% EPS 2010 Operational Pension Currency Interest Others EPS 2011 Performance
Slide 9: Core operating margin / core earnings per share: Primary measures of business performance
Core operating margin / core earnings per share: Primary measures of business performance Includes business restructuring within operating profit measure Driving the right business behaviours: managing totality of costs 2012 business restructuring levels expected to be similar to 2011 (i.e. 130bps)
Slide 10: Innovation continuing to improve
Innovation continuing to improve Consistently high innovation rate Innovations in ten or more markets >30% 9 40 70 2009 2010 2011
Slide 11: Bigger, Better, Faster Innovation
Bigger, Better, Faster Innovation Dirt is Good Re-launch 48 markets Rolled out to 50+ countries Now in 40 countries Faster rollouts
Slide 12: Bigger, Better, Faster Innovation
Bigger, Better, Faster Innovation Magnum launch US/Indonesia TRESemmé - Brazil CIF now in 44 countries Launching our brands into new markets
Slide 13: Bigger, Better, Faster Innovation
Bigger, Better, Faster Innovation Knorr Sauce Pur Lipton TESS technology Innovations supported by great technology
Slide 14: Unilever in Sub-Saharan Africa: the opportunity
2 Unilever in Sub-Saharan Africa: the opportunity
Slide 15: Our history in Sub-Saharan Africa
Our history in Sub-Saharan Africa TUNISIA MOROCCO ALGERIA LIBYA EGYPT WESTERN SAHARA Started operations in South Africa in 1891 with Sunlight MAURITANIA NORTH MALI NIGER ERITREA SENEGAL CHAD SUDAN DJIBOUTI 1st South Africa factory opened in 1911 BURKINA GUINEA FASOBENIN COTE NIGERIA SOUTH ETHIOPIA S
Slide 16: Sub-Saharan Africa: the market
Sub-Saharan Africa: the market 800m population growing ~ 3% p.a. GDP growth 3 – 5% One of the fastest growing FMCG markets, ~$20bn Low consumption per capita Market development and white space opportunity is huge
Slide 17: Shape of the Unilever portfolio in Sub-Saharan Africa
Shape of the Unilever portfolio in Sub-Saharan Africa Turnover % 24 Home care is our biggest category in a market 32 growing 7% CAGR over the last 5 years Strong positions in foods: bouillons & soups Personal Care a key source of growth 7 37 Personal care Home care Refreshment Foods
Slide 18: Market Development opportunity is huge across our categories
Market Development opportunity is huge across our categories Laundry detergents per capita consumption (US$) 22.5 16.7 16.8 3.3 3.6 3.7 4.0 0.3 0.3 0.5 0.5 0.6 0.7 Ghana Uganda DRC Côte Ethiopia Zimbabwe Cameroon Nigeria Africa Asia LA South WE d'Ivoire ME Africa
Slide 19: Market Development opportunity is huge across our categories
Market Development opportunity is huge across our categories Skin cleansing per capita consumption (US$) 16.8 9.6 8.2 2.5 1.7 0.4 0.6 0.9 0.1 0.1 0.2 0.2 0.3 DRC Ghana Cameroon Côte Ethiopia Nigeria Uganda Zimbabwe Africa Asia South L.A WE d'Ivoire ME Africa
Slide 20: 3 countries account for 90% of the market
3 countries account for 90% of the market Market ~$20bn growing at ~7% p.a. (CAGR) 5 yr CAGR 8% 6% 6% 11% 12% 6% 6% 10% 11% 11% 11% 8% $12bn $4.3bn $1.6bn $0.4bn $0.1bn $0.0bn South Nigeria Kenya Tanzania Uganda Côte Ghana Zimba Mozam Zambia Malawi Niger Africa d'Ivoire bwe bique Bath Shower Deo Hai
Slide 21: In each we have strong market shares
In each we have strong market shares South Africa Nigeria Kenya 55.6 55.6 55.5 55.7 55.3 55.3 55.2 30.8 30.6 30.5 31.0 54.6 55.0 54.9 30.1 29.8 53.7 53.4 53.4 51.6 51.9 53.1 53.1 53 52.8 52.8 25.8 50.5 25.3 25.5 49.7 49.9 50.1 24.9 24.5 24.4 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 L12W Q3 10 Q4 10 Q1 11 Q2 11
Slide 22: Translates into strong leadership positions
Translates into strong leadership positions Relative market share South Africa Nigeria Kenya Fab Clean Powders 7.1 1.1 2.1 Skin Cleansing 1.4 0.2 1.4 Oral 14.7 0.3 SCC 7.9 5.0 19.1 Savoury 11.0 0.8 15.0 Tea 0.8 3.8 No 1 in 80% of Turnover Source: Nielsen
Slide 23: We are well positioned to win in nascent markets e.g. Ghana
We are well positioned to win in nascent markets e.g. Ghana Relative market share Ghana Fab Clean Bars 13.4 Fab Clean Powders 2.1 66.1 66.1 Skin Cleansing 7.9 64.3 62.5 62.8 62.8 Oral 29.3 64.0 63.8 62.0 SCC 4.9 60.9 61.0 61.4 Savoury 0.1 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 L12W Tea 3.1 Value share Volume
Slide 24: Driven by white space opportunities …
Driven by white space opportunities … Sub-Saharan Africa – top 12 countries 100% White space 50% Present 0%
Slide 25: … and market development
… and market development Implementation of ‘perfect stores’ programme ahead of targets
Slide 26: Sustainability: a source of competitive advantage
Sustainability: a source of competitive advantage In South Africa: Aim to reach 1 million rural and urban women to improve their understanding of basic hygiene Lifebuoy with UNICEF will provide educational material and teaching aids for ~80% of primary schools Domestos will partner WTO in an outreac
Slide 27: Sub-Saharan Africa: a business that is growing top and bottom line
Sub-Saharan Africa: a business that is growing top and bottom line Turnover €bn Underlying margin 2.3 300 bps 1.9 1.9 1.8 1.5 2007 2008 2009 2010 2011 2007 2008 2009 2010 2011
Slide 28: M&A as a growth driver
3 M&A as a growth driver
Slide 29: Alberto Culver: integrating a successful business
Alberto Culver: integrating a successful business Our objectives 1 Continuing the successful growth and share gains of Alberto Culver 2 Roll out brands into new markets 3 Deliver business case cost synergies 4 Key talent retention
Slide 30: Alberto Culver continuing with growth and share gains
1 Alberto Culver continuing with growth and share gains Hair Care United States Market value shares 19 TRESemmé continues to perform strongly 17 16 16 Dove Hair Damage repair gaining shares Launch of Dove Hair Tonic exceeding expectations 12 11 11 10 Suave and Axe Hair performing well 2009 2010 2011
Slide 31: Fast roll out to new markets 6 months after completion
2 Fast roll out to new markets 6 months after completion TRESemmé – Brazil & Thailand Simple – United States Motions – South Africa
Slide 32: Alberto Culver integrated with speed and delivering synergies
3 Alberto Culver integrated with speed and delivering synergies Cost synergies 90% of markets integrated Over half of our expected cost synergies achieved in 2011 c.20% of retained turnover
Slide 33: Alberto Culver: key talent retention
4 Alberto Culver: key talent retention 70% of leaders accepted new roles Key roles includes: Senior Vice President North America PC Vice President Global TRESemmé Chairman Philippines Vice President Finance Skin Alberto Culver people at the heart of our business
Slide 34: A new Unilever
A new Unilever Delivering consistent and reliable results A growth mindset now embedded in the business New organisation fully operational Strong momentum towards our vision of doubling the size of the business
Slide 35: 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 ‘expects’, ‘anticipates’, ‘intends’, ‘believes’ or the negative of these ter
Slide 36: Unilever - UBS Conference
Unilever - UBS Conference James Allison, Head of IR & M&A Edinburgh, Scotland 6th March 2012