Unilever PLC · LSE:ULVR
Unilever — Q3 2008 Earnings Presentation
13 slides from Unilever's earnings presentation, Oct 30, 2008
Slide 1: Unilever Q3 and Year to Date 2008 Results
Unilever Q3 and Year to Date 2008 Results 30 October 2008 Jim Lawrence Chief Financial Officer James Allison Head of Investor Relations Safe Harbour Statement This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Priv
Slide 2: Highlights
Highlights • Results in line with our goals for the year • From actions we have taken over the last 3 years • Strengthening our relative position Financial Highlights – Year to Date • Strong organic growth 7.4% • Additional A&P spend €100m – share of spend up • Underlying growth in operating profit
Slide 3: Strong Organic Growth
Strong Organic Growth Q3 Ytd Turnover €10.4bn €30.4bn Change 1.8% 0.2% Acquisitions and disposals (1.1)% (1.0)% Currency effect (5.0)% (5.8)% Underlying sales growth 8.3% 7.4% Volume 0.6% 0.7% Price 7.7% 6.7% Europe Americas Asia Africa Q3 2008 • Price driven growth in WesternQ3 Europe 2008 USG 8.2%
Slide 4: Americas and Asia Africa
Americas Americas Asia Africa Q3 2008 Q3 2008 8.2 8.2% USG • US growth of +4% ytdUSG 15.7% 6.5 • Market share remains firm • Latin America growth of +12% ytd • Continued improvement in Brazil Q3 Ytd Europe Americas USG USG Asia Africa Americas Asia Africa 15.7 15.1 Q3 2008 • Strong broad-based growt
Slide 5: Underlying Sales Growth by Category
Underlying Sales Growth by Category Americas Asia Africa Q3Q32008Ytd Q3 2008 11.6 USG 8.2% USG 15.7% 9.2 8.2 8.3 7.2 7.3 6.6 5.8 Europe Savoury Ice-Cream Personal Care Q3 Care Home 2008 Dressings Beverages Spreads USG 2.5% Savoury, Dressings and Spreads Q3 Ytd USG 7.2% 8.2%
Slide 6: Ice Cream and Beverages; Home Care
Ice Cream and Beverages Q3 Ytd USG 7.3% 5.8% Home Care Q3 Ytd USG 11.6% 9.2%
Slide 7: Personal Care; Winning in an Economic Downturn
Personal Care Q3 Ytd USG 8.3% 6.6% Winning in an Economic Downturn Recessionary pressures impact categories in different ways In Europe • In-home meals generally thrives • Hand & body prone to down-trading • Deodorants unaffected • Laundry using less product Example: some actions we are taking in ma
Slide 8: Reasserting the Value of Our Brands; Commodity Cost Impact on Margin
Reasserting the Value of Our Brands Are we going to compare? - the real differences: • The taste of more peanuts • No added sugars • Rich in Vitamin E Calve tastes better according to independent taste trials Calve peanut butter has been Holland’s favourite for 60 years Commodity Cost Impact on Marg
Slide 9: Increased Marketing Investment; Savings Continue to Deliver Strongly
Increased Marketing Investment • €20m incremental A&P investment in Q3 • €100m incremental A&P investment ytd • Benefiting from media efficiency programmes and lower media rates • Share of advertising spend increased Savings Continue to Deliver Strongly Local efficiency Year to date: 0.1 Restructuri
Slide 10: Drivers of Operating Profit
Drivers of Operating Profit* - Year to Date 2.5 Commodity Price costs 2.0 9% Growth 1.5 1.0 €bn Savings Programme Other A&P 0.5 Volume/ Costs Mix 0.0 Underlying Profit -0.5 Increase *Excluding RDIs, constant currency, before acq/disp Drivers of Operating Profit* - Q3 Commodity 1.0 Price costs 0.8 9%
Slide 11: Operating Margin Development; Drivers of EPS Growth
Operating Margin Development – Year to Date Ytd 2007 Ytd 2008 Change Operating margin 13.7% 18.8% 5.1% Including RDIs* (1.4)% 3.4% 4.8% Underlying change 0.3% Key drivers: Cost/price/mix (2.9)% Savings 2.7% A&P 0.5% * Restructuring, disposals and one-off items Drivers of EPS Growth – Year to Date 20
Slide 12: Cash Flow and Balance Sheet; 2008 Outlook
Cash Flow and Balance Sheet • ‘Strong single A’ balance sheet • Net debt reduced to €8.7bn • Cashflow from operating activities €2.5bn • Working capital improvement in Q3 • €1.5bn share buy-back 2008 Outlook • Underlying sales growth now expected to be well in excess of our 3-5% long-term target ran
Slide 13: Questions
Questions change Accelerating Unilever Q3 and Year to Date 2008 Results 30 October 2008