The D&E Opportunity -

Transcription

1 The D&E Opportunity - Winning in Asia/Africa Harish Manwani President Unilever Asia/Africa 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 995. These forwardlooking 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.

2 Demographics 2005e World Asia AMET Share Population Billion % GDP Growth Rate (PPP) Source: OEF Where the Value Was Consumer Spending 2000 ($ PPP exchange rates) $7.4 $7.3 $2.6 $2.3 $9.6 Source: OEF

3 Where the Value Will Be Consumer Spending 200 ($ PPP exchange rates) $0.2 $9.4 $3.5 $6.9 $3.6 Source: OEF Unilever in Asia/Africa Market leader in most priority categories in key countries Over 00 years of doing business in the region 44 Operating Companies Brands sold in total of 98 countries Strong local management

4 Leading Positions in Key Markets India S. Africa Indonesia Thailand Vietnam Philippines F Cleaning 2 2 Hair Care 2 Face Care Skin Cleansing Deos 2 Tea 2 Savoury 2 2 Ice Cream 2 2 Source: CAN, Intage, Company Estimates Unilever Asia/Africa Performance USG % USG (YTD Sept 05) 8%* Operating margin bps * Days adjusted 2005

5 Unilever Asia/Africa HPC Foods Total Turnover 40% 3% 25% Contribution to Growth % 52% Contribution to Profit 24% Jan Sep 2005 The Recipe for Success Continuous stream of renewed insights & brilliant local execution to:- Serve and delight consumers Deepen partnership with our customers Build relationships with local communities

6 Serving & Delighting Consumers Our Consumers are Diverse Affluent Aspiring 300 m.2 b Striving 3.2 b

7 Our Business Strategy International Competitors - Top of the pyramid Local Competitors - Bottom of the pyramid Unilever - Work the pyramid Leverage the full potential of the market Business Strategy : Our Approach Affluent Leverage global mixes Superior benefits Sensory edge Packaging innovation Aspiring Striving Increase consumption & uptrade Drive penetration R&D Appropriate functional benefits Aggressive cost engineering Low unit price (LUP)

8 Differentiated Portfolio Laundry, India Hair, Indonesia Differentiated Product Forms/Benefits Lux, Asia OMO, China

9 Serving and Delighting the Affluent Leveraging global mixes Image Placeholder Image Placeholder Image Placeholder Middle East # Market Position 48% Market Share

10 Dove Campaign for Real Beauty Serving and Delighting the Affluent Rolling out regional successes Lux Super Rich Shampoo Japan Lux Super Rich Shampoo China

11 Building Mass Markets- Haircare Bar Soap & Water Family Shampoo Expensive Bottles Affordable Sachets Global Formulations Shampoo Only Standardised Variants Formulated for Asian Hair Styling & Nourishment Customized Range TVC Sunsilk Video Placeholder. This slide is hidden.

12 Hair Care Performance India Indonesia Thailand Position # # # Market Share 48% 54% 52% Vietnam # 49% Building Mass Markets- Fabric Cleaning Bar Soap & Water Efficient But Expensive Oil based soapbars NSD Bars Value Powders Cleaning + Whiteness (Fluorescer Technology) Use of minor oils Non-soapy detergent bars High Performance, less mushy - nil mineral bars - polycoat bars Top performance + low water usage

13 Mrs. Sharma saves two buckets of water every day with Surf Excel. Fabric Cleaning Performance South Africa Thailand India Vietnam Turkey Position # # # # #2 Market Share 88% 65% 38% 77% 34%

14 Building Mass Markets- Food Blue Band Africa # Annapurna Vitamin Enriched Ambient stable Schools program Encapsulated Iodized Salt Combats IDD Lipton Middle East # Brooke Bond Natural Green Tea Drink well, live well position Tea + 5 ayurvedic herbs Immunity boost India # Ghana # Nigeria Launch India # Building Mass Markets- Affordable Packs Aspirational but unaffordable Affordable & accessible Shampoo Category Toothpaste, margarine, tea, laundry powder Sachets Only Teabag 3s Mini Cubes Deo Ministick One Shot Usage Re-closable Sachets

15 TVC Rexona Video Placeholder. This slide is hidden. Serving the Less Affluent - Business Model Conventional Cost + Margin = Price Reverse Engineering Affordable Unit Price Margin = Target Cost

16 Unilever R&D Facilities - Location Map Asia AMET R&D Resource >900 Deepening Partnership with Our Customers

17 Retail Trade Development in Asia/Africa 3% 99% 97% 95% 90% 78% 68% 60% 49% 40% 87% % 3% 5% 0% 22% 32% 40% 5% 60% Nigeria India Iran Egypt Traditional Indonesia China Turkey Philippines S Africa Australia Modern Trade Widest Coverage in Asia/Africa > 6,000 core distributors > 6 million retail outlets

18 Partnering with Emerging Modern Trade Leading shopper insights & customer marketing with Shopwise Philippines Building capabilities for India retailers with training in Thailand Key market entry partner for Makro in Indonesia Leading category management through more category captaincies in more countries across Asia/AMET than any other FMCG supplier Acknowledged Leader in Modern Trade Tesco (Hymall) China - Supplier of the year (2005) Tesco Thailand - Values Award (2005) AS Watson Philippines - Supplier of the year (2005) Unilever & Grocent - Best ECR Asia project (2005) Carrefour Indonesia - Joint CSR partner (2005)

19 Shakti Shakti Video Placeholder. This slide is hidden.

20 Image Placeholder Image Placeholder Image Placeholder Build Relationships with Local Communities Governance & Reputation Unilever has the best corporate reputation in South Africa Reputation Institute Indonesia s Most Admired Knowledge Enterprise 2005 awarded to Unilever Finance Asia gives three awards to Unilever Indonesia under Asia s Best Companies 2005 Finance Minister of India presents Industry Civic Award to Hindustan Lever Unilever Nigeria tops list of Corporate Fittest 25 Most Re-engineered Companies

21 Commitment to Community Unilever Tea Kenya does it again Gold award in Eco challenge Unilever Indonesia first prize winner for CSR for water category in the International Energy Globe Awards 2005 Unilever Turkey wins two international awards for corporate social responsibility OXFAM reports that Unilever s operations in Indonesia provides wider socio- economic benefits Unilever South Africa recognised by the United Nations for comprehensive and compassionate HIV/AIDS program Water Project in Indonesia Video Placeholder. This slide is hidden.

22 What our people think It is a great company that over the last 27 years has provided me with an environment almost without boundaries, to grow personally and develop. I am very comfortable with Unilever s values and purpose. They are at one with my own and I feel as if I am genuinely making a contribution to broader society. Unilever is one of the few companies in the world where we have an opportunity not just to sell another box of detergent powder but to meaningfully change Africa s fortunes. I work for Unilever because it is a respected, caring organisation. I have had the fortunate experience that Unilever provides the vehicle for me to build brands, win in the market place, grow great teams, contribute ot the community and continually grow personally. Highest standards of integrity. Unilever Asia/Africa Serve 75% of the world s population Grow markets and shares Deliver exceptional contribution to Unilever

23 Thank You