The Americas. Safe harbour statement. Michael Polk President Unilever USA. London March 14 th 2007

Transcription

1 The Americas Michael Polk President Unilever USA London March 14 th 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 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. 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 Scale within Unilever Americas 2006 Turnover: 13.8b Asia/AMET 27% Europe 38% Americas 35% Category profile HPC: 48% Skin 12% Other HPC 2% Savoury 15% Foods: 52% Deos 8% Spreads 9% Hair 10% Home Care 16% Beverages 7% Dressings 9% Ice Cream 12% 2

3 Powerful brands Geographic profile North America 8.6 billion Foods 61% HPC 39% Latin America 5.2 billion Foods 38% HPC 62% 3

4 North American scale Turnover bn Source: Unilever estimates figures are directional Latin American scale 6 5 Turnover bn BDF Mevesa Source: Unilever estimates figures are directional 4

5 Foods market position Dressings Savory Spreads Tea Ice Cream Total Foods North America Share #1 # % Latin America Share #1 # na 51 44% Note: AC NIlesen / Unilever estimates 12wk MA HPC market Position Skin Cleansing Hand/Body Care Hair Deodorants Fabric Cleaning Fabric Cond. Total HPC North America Share #1 # % Latin America Share #1 # % Note: AC NIlesen / GMI share reports end wk MA 5

6 Americas performance Americas Overview 2006 performance Underlying Sales Growth +3.8% Global +3.7% Americas Operating Margin Underlying change* 13.6% (30)bps 15.8% (30)bps * before RDI s, 2006 gain on Health Care, 2005 gain on office sale 6

7 Underlying sales growth North America +2.5% Latin America +5.8% Personal Care +6.7% Home +2.7% Foods +2.3% Key growth priorities Win in Personal Care Drive Vitality into Foods Accelerate Latin America Growth Leverage New Capabilities for Growth 7

8 Key challenges Mexico performance Input cost inflation Americas organisation Americas Organization Overview 8

9 Diverse consumer base North America Latin America GDP: Per Capita $39,000 GDP: Per Capita $1,900 -$7600 Population: 334 million Population: 544 million Age Distribution: Older Age Distribution: Younger MALE United States: 2005 FEMALE MALE Latin America: 2005 FEMALE Diverse channel dynamics 35 USA Canada Income per capta / year Argentina Chile Brazil Venezuela Mexico Peru Panama Colombia D. Rep. Costa Rica Guatemala Ecuador Bolivia 20% 40% 60% 80% 100% % Purchase in Traditional Trade Source: World Bank / Unilever 9

10 Changing retailer landscape More concentration; more channel differentiation Steady shift from traditional to modern trade Five design principles Simplify through One Company structures Cluster geographies for scale Establish common ways of working through HR, Finance, and IT Functions Drive best practices into action within countries/clusters through Regional Customer Development and Supply Chain Link to Categories via Marketing Operations 10

11 Enhanced capabilities Strategy into Action Marketing analytics Supply Chain excellence Integrated brand communication Customer Development excellence Driving for scale in Americas Supply Overview Chain 11

12 Americas Supply Chain Regional Supply Chain Operating Company Supply Chain strategy Network design Capacity planning Source and Make Safety & Engineering Supply Management + Demand Forecast Customer Service Distribution & Logistics Working Capital Legal & Regulatory Crisis mgmt Smart Scale Local Intimacy Drive costs out of network T&T Production Cost ( /ton) Dom. Rep. Ecuador Itatiba Brazil Brazil Bolivia Igarassu El Salvador 75 Chile Regional Virtual Site Common Sites x Common Ways 115 Argentina 200 Volume / yr phase I 300 phase II 450 Brazil Indaiatuba

13 Drive cash flexibility in Working Capital Steering Committee Reporting Accountability via countries US Canada Brazil Mexico Others Stocks Product Groups Creditors FSS Debtors Focus & Alignment via Workstreams Execution via Working Teams Driving Go-to- Americas Market Overview excellence: USA Op Co 13

14 One Unilever DEDICATED Brand Development & Brand Building ONE Customer Development Organization ONE Supply Chain ONE Brand Building with Customer Team ONE Marketing Shared Services ONE Finance Organization ONE HR Organization A challenger mindset ONE Team Hungry to Win Fully Resourced Passion to Deliver 14

15 Scale as One Unilever is an enabler Turnover bn Source: Unilever estimates figures are directional Four differentiators Relentless focus on category expansion Insight and experience from around world Tri-lingual capability Commitment to total enterprise value creation 15

16 Enhanced Unilever capabilities World Class 360 Degree Marketing Brand Building with Customers Breakthrough Customer Development Activating a debate 16

17 Driving involvement Engagement media 17

18 Power partnerships Power partnerships 18

19 Making the healthy choice easier Scale drive periods 19

20 Transformed customer development One leadership team More direct selling customer teams One trade marketing program One trade policy and terms One category management approach One IT infrastructure World Class shopper insight 20

21 Joint business planning Integrated in-store solutions 21

22 Building brands with customers Return on investment focus Strategic Pricing Develop clear, long term pricing strategies and a consistent execution approach Customer Investment $ Make the best investment tradeoffs across our brands and customers 22

23 External recognition 55.4% 2006 Cannondale PoweRanking Composite of Power Retailers 40.3% 28.6% 18.3% 15.4% 14.5% 8.5% 7.4% 7.0% 6.2% Moved up 4 spots in league table since 2003 External Recognition Cannondale Best of Best Score Improvement

24 Wal-Mart Supplier of the Year Americas summary Americas Overview 24

25 2006 performance Underlying Sales Growth +3.8% Global +3.7% Americas Operating Margin Underlying change* 13.6% (30)bps 15.8% (30)bps * before RDI s, 2006 gain on Health Care, 2005 gain on office sale Key growth priorities Win in Personal Care Drive Vitality into Foods Accelerate Latin America Growth Leverage New Capabilities for Growth 25

26 Thank you Americas Overview 26