2010 CAGNY. 16 th February Michael Polk (President Americas) - James Allison (Head of IR)

Transcription

1 2010 CAGNY 16 th February 2010 Michael Polk (President Americas) - James Allison (Head of IR) 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 Words such as 'expects', 'anticipates', 'intends', 'believes' or the negative of these terms and other similar expressions of future performance or results, including any financial objectives, 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 forwardlooking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forwardlooking 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, the ability to complete planned restructuring activities, 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 announcement. 1

2 Agenda Unilever Overview Financial Performance Strategic Priorities Outlook Unilever started in 1890 William Lever Samuel van den Bergh Anton Jurgens To make cleanliness commonplace, to lessen the work for women; to foster health and contribute to personal attractiveness; that life may be more enjoyable and rewarding for the people who use our products William Hesketh Lever,

3 Lever s success in making low-cost soap widely available to the urban poor made a big contribution to Public Health in Victorian Britain We established global presence earlier Before After

4 Becoming a leading consumer products company Unilever Unilever s 2009 sales: $ 55 billion Sales (in US$)* *Based on latest reported results; average 2009 exchange rates. We are now selling almost everywhere 150 million times a day, 150 million times a day, in 150 countries, people use our in products 170 countries, at key moments of their 1 in day 2 households in the world have a Unilever brand at home 4

5 With a broad based portfolio Savoury, Dressings & SCC Beverages and Ice Cream 33% Sales 20% Sales Home Care Personal Care 18% Sales 30% Sales We have depth in distribution From the Favelas of Sao Paolo to the villages of India 5

6 and reach with the retail trade Balanced scale across geographies Western Europe $17bn 30% Sales Americas $18bn 32% Sales Asia AMET CEE $21bn 37% Sales 6

7 Leading Category Positions World Number 1 Savoury Dressings Tea Ice Cream Spreads Deodorants Mass Skin World Number 2 Laundry Daily Hair Care Local Strength Oral Care Household Cleaning Robust portfolio of brands with global scale 13 $1 BILLION + BRANDS 7

8 Strength in D&E markets Unilever 50% of Unilever s global sales in D&E markets Sales in D&E markets (% of total)* *Based on latest reported results; average 2008 exchange rates. Strong D&E Track Record Since 1990 Underlying sales growth 9% pa on average Hard currency growth of 7% pa on average Volume growth 5% pa on average Volume and value growth in every year 16% 14% 12% 10% 8% 20% of Unilever UPG UVG 50% of Unilever 6% 4% 2% 0% '09 8

9 Our markets start early in income spectrum Population Reach Small surface cleaners powder Bar soap Toothpaste & Toothbrushes Shampoo Fabric solution wash Ice Cream OOH Personal wash liquid Deodorants Machine dish wash Super premium Ice Cream 6.2bn 3.9bn 2.4bn 1.8bn 0.9bn GDP / capita $ The strategic journey Pre 2000 Conglomerate Path to Growth Country/ Category Matrix One Unilever 400 Before PtG One Unilever 2007 Portfolio change and brand focus Restructuring and savings Increase operating margin Multi-Country & Multi-Category Organisation

10 Exciting New Vision 2x 40bn Focus on our consumers Focus on our customers Grow everywhere 2009 Objectives Re-ignite Volume Growth Protect Cash Flow and Operating Margin 10

11 James Allison Head of IR Agenda Unilever Overview Financial Performance Strategic Priorities Outlook 11

12 Volume Growth Restored Underlying volume growth for the year is 2.3% 5.0% 2.0% 3.6% -1.8% Q1 09 Q2 09 Q3 09 Q4 09 Volume Growth Restored in all Regions Americas Western Europe 3.8% 5.5% +1.5% due to extra trading days 1.6% 1.0% 2.6% -0.7% -1.0% -3.7% Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q

13 Volume Growth Restored in all Regions Asia AMET CEE D&E 9.4% 9.5% 3.3% 4.4% 3.3% 4.6% -0.9% -1.2% Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 Volume Growth Restored in all Categories Home Care Personal Care Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q

14 Volume Growth Restored in all Categories Foods Savoury, Dressings & SCC Foods Beverages and Ice Cream Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 Strong Savings Delivery Full Year Local Efficiency 0.2bn Buying 0.7bn Restructuring 0.5bn 1.4bn total savings Including 0.5bn from restructuring At least 1bn savings in

15 Increased investment in our brands Advertising Up by 80bps vs bps bps -100 bps -130 bps -110 bps +50 bps Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Product Quality Brand Equity The quality of our products is improving Example - Klondike in the US We are improving our brand equities Worse 8% No change 65% Better 27% Operating Margin Exceeded Underlying Operating Margin has improved 20bps for the full year +70 bps +100 bps -30 bps -60 bps Q1 09 Q2 09 Q3 09 Q

16 Strong Cash Flow from Operating Activities Cash flow from operating activities increased by 1.4bn Q1 08 Q1 09 Q2 08 Q2 09 Q3 08 Q3 09 Q4 08 Q4 09 Working Capital Reducing 68 Stocks Debtors Q1 09 Q2 09 Q3 09 Q4 09 Creditors Q1 09 Q2 09 Q3 09 Q4 09 Total Days Q1 09 Q2 09 Q3 09 Q4 09 Q1 09 Q2 09 Q3 09 Q4 09 Cash Conversion Cycle has improved by 14 days during

17 Michael Polk President Americas Agenda Unilever Overview Financial Performance Strategic Priorities Outlook 17

18 Strategic Priorities Winning with Brands and Innovation Winning in the Market Place Winning through Continuous Improvement Winning with People Winning with Brands and Innovation Research & Development Product Design Communication Bigger, better, faster rollout of innovations Winning with Brands and Innovation 18

19 R&D - The engine that drives profitable growth R&D Genevieve Berger apointed to UEx 6 major R&D centers Stronger links with Marketing Investment in patents & clinical trial expertise Open innovation Leverage science across our categories Genesis projects Winning with Brands and Innovation R&D: Genesis Projects Genesis Prioritisation: from a multitude of technologies to identify the most disruptive GENESIS - Projects > 50m incremental Sales - Starting in Cross-category + Consumer needs and Category needs Winning with Brands and Innovation 19

20 Sharpening Marketing Execution Klondike New thicker chocolatey shell Superior Product Dove Nutrium Added benefit - Superior moisturisation in a liquid Winning with Brands and Innovation Sharpening Marketing Execution Superior Product Knorr Jelly Bouillon High quality ingredients Patented jelly system Hellmann s Mayonnaise Light variant with taste and consistency of full fat Winning with Brands and Innovation 20

21 Sharpening Marketing Execution Dove Men+Care Superior Design Formula developed for men with superior care and maximum skin comfort Patented Micromoisture technology Great pack design Sunsilk Co-Creations Every bottle codeveloped with a specific expert Winning with Brands and Innovation Sharpening Marketing Execution Superior Communication Advertising Effectiveness Industry standard Winning with Brands and Innovation 21

22 Sharpening Marketing Execution Superior Communication - Digital Digital investment has almost doubled and it is now c.10% of total Media Winning with Brands and Innovation Sharpening Marketing Execution Bigger, Better, Faster rollout of Innovations Dove Fresh 64 markets Clear 35 markets Dove minimising Deo 37 markets Axe Temptation 56 markets Pyramid bags 44 markets White Now 21 markets Knorr Stock Pot 12 markets Winning with Brands and Innovation 22

23 Strategic Priorities Winning with Brands and Innovation Winning in the Market Place Winning through Continuous Improvement Winning with People Market Development New users More usage New benefits (trading up) Winning in the Market Place 23

24 Market Development New Users Winning in the Market Place Market Development More Usage Winning in the Market Place 24

25 Market Development New Benefits Winning in the Market Place Pricing: Playing the full price Piano Flora Pro-Activ Extra Light Benecol Flora Pro-Activ Olive Bene col Buttery Premium Flora Pro-Activ Light Own Label Diet Health Lurpak Spreadable Anchor Spreadable Bertolli Standard Clover Standard Own Label Spreadable Butter Flora Omega 3 Plus Kerrygold Spreadable Country Life Spreadable Flora Low/No Salt Flora Light Flora Original Flora Ex Light & Diet Gold Kerrygold Own Label Health Spreads Flora Butte ry Other Dairy Crest (inc Uniq) Utterly Butterly Kerrygold Block ICBINB! Country Life Block Own Label Butter Stork SB Vitalite ICBINB! Light Willow Stork Pkt Mass Economy Playing the full piano: Average Unit Price Margarine UK Blue bar = Unilever brand Winning in the Market Place 25

26 Customer Insight and Innovation Center Roll Out MCO UK/Ire Go-Live Jan 2010 Winning in the Market Place Strategic Priorities Winning with Brands and Innovation Winning in the Market Place Winning through Continuous Improvement Winning with People 26

27 Virtuous Circle of Volume Growth Amplified by savings and value improvement Volume growth gives cost leverage Re-invest in compelling mixes Constantly improve consumer value equation Innovation creates new added value business Portfolio choices prioritise high margin attractive business Winning through Continuous Improvement Agile, cost competitive organisation One Unilever restructuring now near complete 2.6 billion restructuring charges 1.5 billion savings Unilever is now simpler and faster But still plenty of scope to reduce costs Winning through Continuous Improvement 27

28 Strategic Priorities Winning with Brands and Innovation Winning in the Market Place Winning through Continuous Improvement Winning with People Driving Towards a Performance Culture Performance against objectives clearly visible Management assessments now more differentiated Reward for exceptional performance Winning with People 28

29 Agenda Unilever Overview Financial Performance Strategic Priorities Outlook Summary Environment in 2010 will be no less tough than 2009 Still plenty more to do to raise the bar on Brand equities Product quality Simplification The foundations have been laid in terms of Volume and value share turnaround Increased investment behind the brands 29

30 Priorities for 2010 Continue to drive volume growth Steady and sustainable improvement in full year underlying operating margin Strong cash flow Questions 30