Unilever Plc · LSE:ULVR
Unilever — Q3 2014 Earnings Presentation
22 slides from Unilever's earnings presentation, Oct 23, 2014
Slide 1: Unilever Trading Statement Q3 2014
Unilever Trading Statement Q3 2014 Jean-Marc Huët / James Allison October 23rd 2014
Slide 2: Jean-Marc Huët
By Jean-Marc Huét us ae
Slide 3: 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 4: Developed markets remain challenging
Developed markets remain challenging Europe: market declining Pricing deflation in Europe North America: improving Value market growth (%) UK Foods Consumer Price Inflation Value market growth (%) 0.7% +1% 0% -2% -2% 2013 L12 wks Sep 2012 Sep 2014 2013 L12 wks Source: ONS/ Market data
Slide 5: Emerging markets have slowed even further
Emerging markets have slowed even further Slowing economies Lower consumer spending Reduced market growth Brazil GDP growth (%) China shampoo retail sales in hypermarkets Value market growth (%) +3.5% <0% +14% -3% Q2 2013 Q3 2014 2012 2013 YTD 2014 2013 L12 wks Source: OECD / Oxford Economics / Mark
Slide 6: Q3 2014: Competitive growth but a disappointing quarter
Q3 2014: Competitive growth but a disappointing quarter Growth ahead of markets (value and volume) +3.2% +2.1% Gaining share in 60% of business Price USG run rate now at 3% adjusting for Volume Weather in Europe 9M Q3 De-stocking in China
Slide 7: Q3 2014: Turnover analysis
Q3 2014: Turnover analysis USG +2.1% €12.5bn +0.3% +1.8% -1.5% -2.6% €12.2bn -2.0% Turnover Vol/mix Price M&A FX Turnover Q3 2013 Q3 2014
Slide 8: James Allison
By James Allison us ae
Slide 9: Personal Care: Broad based growth
Personal Care: Broad based growth Growth ahead of markets Premiumising the core Combining technology and brand purpose 2014 USG +4.0% +3.0% 9M Q3 Dove Advanced Hair Series New Lifebuoy launched in South Asia
Slide 10: Foods: Stable performance
Foods: Stable performance Broadly stable in weak Continued Knorr growth Margarine decline markets despite share gains 2014 USG D markets -0.5% -0.5% 100bps Market share 0% 0bps -7% Market growth 9M Q3 Knorr seasonings in Argentina Q3 12 Q3 14 Source: Market data
Slide 11: Refreshment: Growth ahead of markets
Refreshment: Growth ahead of markets Q3 held back by weak Premium segments growing US tea solid growth ice cream sales in Europe 2014 USG +3.5% +0.5% 9M Q3 Ben & Jerry’s Core Lipton: #1 tea K-Cup brand
Slide 12: Home Care: Continued strong growth
Home Care: Continued strong growth Growth ahead of markets Building new segments Expanding household care 2014 USG +6.4% +5.7% 9M Q3 Omo stain removers in Brazil Sunlight Nature in Thailand
Slide 13: Q3 2014: Developed markets overview
Q3 2014: Developed markets overview North America Europe -0.5% +0.6% -1.8% -4.3% 9M Q3 9M Q3
Slide 14: Q3 2014: Emerging markets overview
Q3 2014: Emerging markets overview Latin America Asia/AMET/RUB +10.5% +12.4% +5.1% +3.1% 9M Q3 9M Q3
Slide 15: Jean-Marc Huët
By Jean-Marc Huét us ae
Slide 16: Pursuing growth opportunities
Pursuing growth opportunities Growing premium segments Entering white space Improving affordability Maille dressings Omo in Saudi Arabia and Gulf 1 Euro and 1 Turkish Lira Cornetto
Slide 17: Accelerating cost initiatives
Accelerating cost initiatives Improving productivity Project Half on track Improving returns on Brand & Marketing Investment Management and supporting functions Non-working media% Simplification: Project Half Marketing Fit to Win 1,400 roles reduced Enterprise Technology & Solutions -380bps €500m sa
Slide 18: Enhancing agility
Enhancing agility Harmonisation Faster decision making Process simplification No. of detergent powder formulations Marketing hubs in Europe Performance review process steps 8 steps 4 steps -80% Now Future Before After Before After
Slide 19: Applying all the levers of earnings growth
Applying all the levers of earnings growth Financing and pension Tax rate Corporate activities Pension exposure 2014 estimate Leverhulme family :core EPS +2%* India ownership :from 52% to 67% 25% 25% 26% Pakistan ownership :delisted Reduced Same No pension *Annualised impact
Slide 20: 2014 objectives
2014 objectives Volume growth ahead of our markets Steady and sustainable improvement in core operating margin Strong cash flow
Slide 21: Unilever Trading Statement Q3 2014
Unilever Trading Statement Q3 2014 Jean-Marc Huët / James Allison October 23rd 2014
Slide 22: Full year 2014: Estimated currency overview
Full year 2014: Estimated currency overview Free cash Turnover Margin Earnings flow (4)~(5)% (30)~(40)bps (7)~(8)% ca €(300)m