Safe harbour statement

Transcription

1 Vindi Banga President Foods Deutsche Bank Conference 11th June 2007 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 Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results, including financial objectives to 2010, and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this presentation 1

2 Agenda Restoring Unilever s growth momentum Our growth strategy for Foods Results agenda going forward Agenda Restoring Unilever s growth momentum Our growth strategy for Foods Results agenda going forward 2

3 Strong category and brand positions Foods Savoury & Dressings Spreads Meal replacement Tea Ice Cream World Number 1 World Number 2 Local strength Home & Personal Care Skin Deodorants Daily Hair Care - #1 in D&E Oral Care Laundry - #1 in D&E Household Care Our 12 1bn+ brands Our position in 2004 USG % Operating margin (%) USG Operating margin 3

4 A portfolio not driven to its full potential Brand and category positions Exposure to D&E Growth potential Leveraging of scale Organisation to deliver Clear prioritisation Growth A new business model Clear growth strategy Aligned organisation Disciplined execution 4

5 Defining our growth priorities Businesses that are attractive Businesses where we are already advantaged Businesses that exploit our strength in D&E Deodorants, Skin, Hair 5

6 Savoury, Ice Cream, Tea Vitality within Foods 6

7 D&E: Foods, Home care Russia and China 7

8 Our growth priorities Deodorants, Skin, Hair Savoury, Ice Cream, Tea Vitality within Foods D&E: Foods, Home care Russia and China Aligned organisation Unilever Executive Corporate strategy Portfolio priorities Performance management Regions Categories Functions Go to market Customer management Supply chain Brand and category strategies Innovation R&D Functional excellence Business support Simplification Disciplined execution, speed, effectiveness 8

9 One Unilever Progress in top 20 countries One top team Single head office One sales force Back office integration Regional shared services 0% 20% 40% 60% 80% 100% Completed Announced Growth momentum Unilever underlying sales growth 6% 5% 4% 3% 2% 1% 0% Q1 2005* Q Q Q4 2005* Annualised growth rate Q Q Q Q Q * Days adjusted 9

10 Agenda Restoring Unilever s growth momentum Our growth strategy for Foods Results agenda going forward Foods return to growth Foods underlying sales growth 5% 4% 3% 2% 1% 0% Q % 10

11 Our growth strategy for Foods Sustained profitable growth New high growth platforms Grow the core D&E markets Local Regional Global Embrace Vitality We will up-trade our portfolio with Vitality HEALTHIER FOODS Segment Functional Health Inherent Goodness Positive Choice Segment CAGR (Market size 06) +10% ( 70bn) +5% ( 100bn) +7% ( 130bn) Example Heart Health pro.activ Goodness of olive oil, soy Lower salt, sugar, fat Double churn Market standard +3% ( 990bn) No health claim Source: Euromonitor, Unilever estimates 11

12 We will deliver the goodness of five key ingredients Tea Fruit and vegetables Milk Oils Soy and deliver five key benefits Heart Health Beauty Weight management Brain Immunity and strength 12

13 Healthy choices made easier Products must meet benchmarks on Saturated Fat Trans Fat Sodium Sugar Global roll-out Sustained profitable growth New high growth platforms Grow the core D&E markets Local Regional Global Embrace Vitality 13

14 Rama Idea! The first margarine with important nutrients that support mental development Low fat (39%) spread Rich source of selected brain nutrients (DHA, ALA, B-vitamins) One design for the world Launched in 14 countries in 5 months Making light mayonnaise the flagship Flagship positioning of Light Mayonnaise Delicious light mayonnaise with only 5% fat One shared technology platform (citrus fibre) 14

15 Sustained profitable growth New high growth platforms Grow the core D&E markets Local Regional Global Embrace Vitality Vitality in children s Ice Cream Goodness of Milk Ice Cream launched in Indonesia with great success Actively rolled out globally

16 Upgrading Tea experience in China Novel, upgraded milk tea experience Uptrading consumers to higher value proposition Market leadership 3 months after launch Regional roll-out Sustained profitable growth New high growth platforms Grow the core D&E markets Local Regional Global Embrace Vitality 16

17 Healthy Heart pro.activ Healthy heart shots that actively remove cholesterol Crossing the Atlantic US launch May 2007 AdeS soy beverages opportunity AdeS a sustained success in Latin America AdeZ mix now tested in UK and Netherlands Great taste Nutritional balance Goodness of soy 17

18 Advertising Agenda Restoring Unilever s growth momentum Our growth strategy for Foods Results agenda going forward 18

19 Key financials Total Unilever Q Underlying sales growth 3.1% 3.8% 5.7% Operating margin 13.2% 13.6% 13.7% Underlying movement in operating margin* (90)bps (30)bps 40bps Ungeared free cash flow 4.0bn 4.2bn *Before restructuring, disposals and impairments and 2006 gains on US health care and UK pensions and 2005 profit on office sale Our long term ambition Overarching ambition remains top one-third TSR Long term targets: FCF 25-30bn during Improved ROIC Through: Underlying sales growth of 3-5% pa Operating margin in excess of 15% by 2010 after normal restructuring Improved capital and tax efficiency 19

20 Agenda going forward Growth our number one priority Competitive Profitable Consistent Seeking further opportunities to accelerate the transformation 20