Slide 1: Unilever First Half 2016 Results
Unilever First Half 2016 Results Paul Polman / Graeme Pitkethly 21st July 2016
Slide 2: 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 3: Paul Polman
Paul Polman
Slide 4: 4G growth: Consistent, Competitive, Profitable & Responsible
4G growth: Consistent, Competitive, Profitable & Responsible Consistent Competitive Unilever +4.3% +4.7% +5.7% +6.5% +4.1% +2.9% +4.1% Market +2.3% 2013 2014 2015 H1 2016 H1’16 PC Food HC Refresh Underlying sales growth Underlying sales growth Nielsen market growth Profitable Responsible Core operat
Slide 5: A volatile and increasingly fragmented world
A volatile and increasingly fragmented world Global growth downgraded… again Consumer demand slowing 2016 projected GDP 5% -90bps 4.0% 3.6% 3.4% EM 3.2% 0% 3.1% D -3% Mar-13 Dec-13 Sep-14 Jun-15 Mar-16 Oct'14 Oct'15 Jan'16 Apr'16 Jul'16 2013 2016 Source: IMF Source: Nielsen volume market growth in U
Slide 6: Building agility and resilience
Building agility and resilience Step up in innovation Portfolio management 3 key initiatives: 1. Net Revenue Management 2. Organisation: Connected 4 Growth 3. Zero Based Budgeting
Slide 7: Innovation with global scale
Innovation with global scale Brands with purpose Differentiating technology Faster roll-outs Dove +6% USG in H1 Magnum +6% USG in H1 Rolled out to 36 markets in H1 Up to 30% reduction in roll-out time for global launches
Slide 8: Innovation made locally relevant
Innovation made locally relevant Local insight Local execution Local brands Example: Sunsilk Hijab Kalina Lakmé Marmite Bango Up to 50% reduction in lead time on local launches
Slide 9: Innovation in high-growth segments
Innovation in high-growth segments TRESemmé Botanique Ben & Jerry’s Lux NATURALS Non-Dairy Silicone-free FREE-FROM Lipton Pure Leaf Neutral detergent Knorr meal makers AYURVEDIC FAL Ayurvedic Indulekha Ayush
Slide 10: Building agility and resilience: Portfolio management
Building agility and resilience: Portfolio management Clear category strategies Portfolio evolution Flexibility in our business model % turnover 18% 19% 19% 19% 35% 24% Foods 38% PC 28% 2008 2015
Slide 11: Subscription-based male grooming; Dollar Shave Club
Subscription-based male grooming; Dollar Shave Club Takes us further into the male grooming category $42bn market Growing faster than personal care Innovative and disruptive brand 3.2 million loyal club members Products and dialogue across male grooming Category leaders in Direct to Co
Slide 12: Building agility and resilience: key initiatives
Building agility and resilience: 3 key initiatives Net Revenue Management Organisation: Connected 4 Growth Zero Based Budgeting More global and more local The next wave of savings ZBB and Connected 4 Growth: €1bn p.a. savings by 2018
Slide 13: Graeme Pitkethly
Graeme Pitkethly
Slide 14: 4G growth driven by strategy
4G growth driven by strategy Building premium in Personal Care Accelerated growth in Foods Price>120 Brands index > 120 price index 2.3% 1.5% +8% (0.6%) 2014 2015 H1'16 H1 USG% USG% Improved margins in Home Care Improved ROIC in Ice Cream 9.8% 15% 7.6% +130bps 15% 6.3% +300bps 2014 2015 H1'16 COM% E
Slide 15: Performance driven by Emerging Markets
Performance driven by Emerging Markets Asia / AMET / RUB Latin America North America Europe €11.3bn €3.8bn €4.5bn €6.7bn USG 5.5% USG 14.7% USG 0.7% USG 0.1% UVG 4.0% UVG (0.4%) UVG 0.5% UVG 1.8% Emerging markets +8.0% USG with +2.9% UVG
Slide 16: H1 2016: Turnover
H1 2016: Turnover USG +4.7% 0.7% 2.5% (7.6%) 2.2% €27.0bn €26.3bn H1 2015 UVG UPG M&A FX H1 2016
Slide 17: H1 2016: Core operating margin up 50bps
H1 2016: Core operating margin up 50bps +50bps (80bps) +80bps 15.0% 14.5% H1 2015 Gross Margin Brand & Marketing Overheads H1 2016 Investment
Slide 18: H1 2016: Core earnings per share up 7.5% in constant rates
H1 2016: Core earnings per share up 7.5% in constant rates 0.4% 1.5% (1.0%) (1.6%) (6.2%) 8.2% Core EPS +1.3% in current rates €0.91 €0.92 H1 2015 Operational Minority JVs, associates Financing and Tax Currency H1 2016 performance interests and other number of income shares
Slide 19: Cash flow
Cash flow Free cash flow €0.8bn Improving working capital Moving annual total working capital % turnover 2013 2014 2015 H1 2016 Usual seasonal outflow of working capital in H1 -3.8% -5.0% Exceptionally low working capital at 31 Dec’15 -6.1% -6.6%
Slide 20: M&A funded by strong cash flow and increased net debt
M&A funded by strong cash flow and increased net debt Net debt Acquisitions & disposals €bn Last 6 years 12.6 Acquisitions* (€11.5bn) 7.6 Net proceeds from disposals €3.8bn Total (€7.7bn) Jun'10 Jun'16 *Jun’13 adjusted for HUL *businesses, minorities, Leverhulme family rights
Slide 21: Paul Polman
Paul Polman
Slide 22: Priorities and outlook unchanged
Priorities and outlook unchanged Priorities Outlook Growth ahead of markets Growth in H2 lower than H1: • Challenging markets Steady improvement in COM% • Tougher comparators Margin improvement front-weighted: Strong cash flow • B&MI increase in H2 • Higher restructuring in H2
Slide 23: In summary
In summary Building agility & resilience Sustainable, attractive & growing dividend Step up in innovation Portfolio management 3 key initiatives: +64% 1. Net Revenue Management over 7 years 2. Organisation: Connected 4 Growth 3. Zero Based Budgeting
Slide 24: Unilever First Half 2016 Results
Unilever First Half 2016 Results Paul Polman / Graeme Pitkethly 21st July 2016