Unilever 2010 Investor Seminar. Singapore Winning with Brands and Innovation Michael Polk / Geneviève Berger

Transcription

1 Unilever 2010 Investor Seminar Singapore Winning with Brands and Innovation Michael Polk / Geneviève Berger

2 Agenda Progress Sharpening the choices Bigger, better, faster innovation R&D

3 Strongest volume in 25 years categories 11/11 MCO s 19/22 top brands 12/13 6% volume growth year-to-date

4 Tremendous leverage in our brands 11 > 1bn 17 > 0.5bn 34 > 250mn

5 Fit to compete in battlegrounds fabric cleaning India fabric cleaning Turkey fabric cleaning Thailand 18% >100 bps 5% >100 bps 7% >100 bps

6 Ability to price where necessary spreads UK dressings US deodorants Indonesia 5% 170 bps 2% 40 bps 4% 700 bps

7 Growth: bigger, faster innovation + 50m innovation turnover year 1 roll-out +30 markets in 6 months Bigger Faster

8 Growth: better products 100m investment in product quality 40% reduction in consumer complaints quality incidents complaints -50% -40% Design Delivered

9 Growth: more sustainable products three big targets across the total value chain RAW MATERIALS MANUFACTURE CONSUMER USE DISPOSAL TRANSPORT HELP 1 BILLION PEOPLE IMPROVE THEIR HEALTH & WELLBEING HALVE ENVIRONMENTAL FOOTPRINT OF OUR PRODUCTS SOURCE 100% OF AGRICULTURAL RAW MATERIALS SUSTAINABLY

10 Growth: brand deployment Japan/Bangladesh Indonesia Equador China Latin America Indonesia

11 Growth: repeatable models Oral Care Market Development Model France Indonesia Nigeria

12 Growth: effective marketing >100mm views 46mm unique visitors 4,617,493 heart ages tested

13 Growth: effective advertising % of ads falling into Green/ Amber/ Red boxes on the Communication Effective Matrix

14 Growth: strengthening portfolio Ice Cream Greece Hair Global Tomatoes Brazil Ice Cream Denmark Hair Global Frozen Italy Disposal Disposal

15 Making Sharper Choices for Growth turnover bn 40 bn

16 Categories report against 4 platforms Fabrics & Surface Care Personal Care Ice Cream & Beverages Foods Fabric Cleaning Deos Ice Cream Spreads Fabric Conditioning Skin Tea Dressings Household Care Hair Soy Beverage Savoury Oral Care

17 Different contribution to turnover % of Unilever global turnover 18% 30% 19% 33% Fabrics & Surface care Personal care Ice Cream & Beverages Foods

18 Balanced contribution to growth % of Unilever global turnover 18% 30% 19% 33% Fabrics & Surface care Personal care Ice Cream & Beverages Foods 26% 33% 18% 23% % of underlying sales growth

19 With different business dynamics Fabrics & Surface care Personal care big global markets markets start early in income spectrum more common global habits disruptive innovation creates advantage toughest competition strong D&E Unilever market share Ice Cream & Beverages Foods

20 With different business dynamics Fabrics & Surface care Personal care Ice Cream & Beverages Foods big global markets at home and out-of-home impulse purchase technology can create advantage unique business system (frozen, RTD) strong global market shares

21 With different business dynamics Fabrics & Surface care Personal care Ice Cream & Beverages Foods mature, smaller categories developed world dominated products not as transferable technology less disruptive market development key strong brands matter

22 Leverage scale where it matters Fabrics & Surface care Personal care Ice Cream & Beverages One Unilever go-to-market Technology Investment Dynamic resource allocation Foods

23 Leverage the differences as well Fabrics & Surface care Personal Care Ice Cream & Beverages 24% 42% 58% 76% D&E Developed Foods 31% 41% 59% 69%

24 Foods is developed world led Geographic footprint 31% 69% D&E 14 key cells > 40% of business Sauces & others US, Germany Soups Germany, France, NL Meals & sides N America, Germany Frozen meals USA Spreads N America, Germany, UK Dressings N America, France, Brazil Developed

25 Habits govern expansion potential Spreads & Breads Markets Correlate Win Where We Are Bread market size m D&E vs D % of Sales Spreads market size m 3000

26 Focus on core of our portfolio 2010 Underlying Sales Growth less productive innovation yield More productive win on the fundamentals brands product quality advertising Less productive Foods 2010 total development cost market development

27 Balance scale and local opportunity scale global platforms leverage local opportunities

28 Fabrics and surface care is D&E led geographic footprint major market development opportunity in BRIC alone, by % washing machines D&E kitchen sinks +230% +115% 24% inside toilets Developed +100% Source: CMI fridge freezers +190% microwave ovens +130%

29 Foundation for emerging markets portfolio composition (% total turnover) 100% 75% 50% 25% 0% Cote D'Ivoire Morocco Vietnam Fabrics & Surface Care Romania Rest of portfolio Sri Lanka Bangladesh

30 Opportunity to reach more than we do portfolio deployment opportunity penetration opportunity Population Reach Small surface cleaners powder 6 bn $350 Bar soap Country Romania UK Finland Norway Austria Toothpaste & Toothbrushes Sweden Shampoo 3.9bn Belgium Pakistan Fabric solution wash South Africa ANZ Ice Cream OOH Malaysia Personal wash liquid Algeria 2.4bn Deodorants Morocco Tunisia Machine dishwash 1.8bn Super premium Ice Cream 0.9bn GDP / capita $ Turkey i French R. Africa Ghana Gulf ii China Philippines Brazil DIG Skip Surf FabCon

31 Ice Cream & Beverages global & big massive, global markets 38 billion liters market of tea Ice Cream 50bn+ market leading positions

32 Brand leaders and innovators power brands leaders in innovation

33 Powerful business systems Out of Home Ice Cream Network Unilever PepsiCo JVs

34 Huge consumption opportunity consumption opportunity ( market size/capita) repeatable models

35 Strengthen agenda with M&A Russia USA Partnership Denmark Greece

36 Personal Care most global business Pre-acquisitions Post-acquisitions 58% D&E 53% D&E 42% Developed 47% Developed

37 Famous and powerful brands Top 10 brands > 10bn turnover

38 Innovation and marketing driven Pond s Gold Radiance Clear Relaunch Dove Hair Relaunch Dove Men+Care

39 Underpinned by disruptive technology Unilever Partnerships

40 Opportunity to deploy portfolio % of sales from Top 6 countries deos 100% 50% skin oral hair

41 Opportunity to develop the market markets can explosively grow enable access to our brands early Latin America deodorant market Personal Wash 3,100 M a rk e t S iz e $ p e r H e a d 44% of global market growth today Thousands % of global market GDP Perper capita $ 000s Spending Head $(PPP) (PPP) '000's 10% Source: euromonitor 27% All Purpose Bars Other Personal Wash 20

42 Strengthen agenda with M&A

43 Choices more interventionist 1 We will win everywhere (but leverage different approaches to win) 2 Deploy resources to big, fast growing, higher margin categories 3 Maximise what we have by fully deploying the portfolio 4 Leverage technology and innovation to win 5 Scale choices through absolute consistency in execution

44 Enabled by new ways of working Strengthened Capabilities Category intervention New business models Disciplined use of resources

45 Disruptive innovation key to success

46 Bigger Platform based Cross-category Technology led Global roll-out

47 Better New claimable benefits Superior products Proprietary technology World-Class Design

48 Faster Speed in development Fast to market Marketed aggressively Intelligent risk taking

49 Working together seamlessly Consumer needs Technology Customer needs Brand concepts Marketing Customer Development R&D Category

50 Progress across the metrics bigger 7x 6x projects in 10+ countries 35 50m +75% it/o Axe markets ito / project / Hair US country Yr 1 100m investment in quality better faster markets

51 Unilever 2010 Investor Seminar Singapore Winning with Brands and Innovation Michael Polk / Geneviève Berger

52 Technology Many categories Consumer need Many countries Time Big market impact Disruption Bigger, Better, Faster Innovation

53 What does leveraging across categories look like? Blue whitening technology In market Surface modification Filtration Emulsion science

54 What does disruptive technology look like? Structuring science Materials science Process science Visualisation and modelling techniques Plant/ nutrition science

55 How we are building a robust innovation pipeline Genesis Underpinning support New ways of innovating Critical functional capabilities

56 How we are building a robust innovation pipeline Genesis Underpinning support New ways of innovating Critical functional capabilities

57 Genesis as it looks at end 2010 Fabrics & Surface Care Personal Care Ice Cream & Beverages Foods Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Genesis Each field with multiple deliverables across categories

58 Genesis has become the way we work On track to deliver Dynamic process We are lengthening and strengthening our innovation pipeline and are increasing the value

59 How we are building a robust innovation pipeline Genesis Underpinning support New ways of innovating Critical functional capabilities

60 We are innovating in new ways Supplier partnerships Open innovation 48% of Unilever pipeline leverages Open innovation 31% of new products in consumer staples contain external technology in 2010* New businesses unit * Corporate Executive Board -The Research and Technology Executive Council 2010 Budget, Spend, and Performance Survey

61 New businesses unit We are pushing boundaries EXAMPLE 1

62 New businesses unit We are pushing boundaries EXAMPLE 2

63 New businesses unit We are pushing boundaries EXAMPLE 3 An experimental light-based system to address facial rejuvenation Before After Courtesy Robert Weiss, M.D., Hunt Valley, Maryland

64 New businesses unit We are pushing boundaries EXAMPLE 4 Partnership with Ampere Spin-off from Edison Pharmaceuticals

65 How we are building a robust innovation pipeline Genesis Underpinning support New ways of innovating Critical functional capabilities

66 Critical functional capabilities Building strong patent portfolios Accessing global talent Unilever Company 1 Company 2 Inventor countries Low High

67 Critical functional capabilities Clinical trials to support our claims EFSA state of play 100% ~20% Unilever relevant Proportion of claims with positive opinion Industry average

68 Conclusion Strong R&D capability working differently strong science base Clear strategy in place focus, prioritisation, disruption, cross-category leverage Strong innovation pipeline Genesis on track innovating in new ways

69 Summary 1 Strengthening fundamentals and good performance in tough times 2 Confidence to sharpen choices 3 We will win everywhere (but leverage different approaches to win) 4 Leverage technology and innovation to win 5 Scale choices through absolute consistency in execution