Q2 2010 Results 5th August 2010<br />Paul Polman (CEO) – Jean-Marc Huët (CFO)<br />James Allison (Head of IR & M&A)<br />
Safe Harbour Statement<br />This announcement may contain forward-looking statements, including ‘forward-looking statement...
Priorities for 2010<br /><ul><li>Continue to drive profitable volume growth
Steady and sustainable improvement in full year underlying operating margin
Strong cash flow</li></li></ul><li>Building Momentum in Tough Markets<br /><ul><li>Volume share up around 50 bps
Winning in emerging markets where competitive intensity is highest
Developed markets remain tough
Investing for the long term with A&P up considerably
A new stronger Unilever is emerging</li></li></ul><li>Jean-Marc Huët <br />Chief Financial Officer<br />
Q2 10: Strong Top Line Growth<br />-0.1%<br />€11.8bn<br />USG 3.6%<br />8.7%<br />-2.0%<br />5.7%<br />€10.5bn<br />
H1 10: Underlying Sales Growth<br />€21.9bn<br />0.0%<br />USG 3.8%<br />5.6%<br />-2.6%<br />6.6%<br />€20.0bn<br />
Q2 10: Improved Pricing<br />2nd quarter of flat pricing at group level<br />
Q2 10: Improved Pricing<br />Price growth -2.6% YTD<br />
Q2 10: Underlying Volume Growth<br />Underlying Volume Growth 6.6% YTD<br />
Volume Growth is Broad Based <br />Top Brands<br />12 / 13<br />Categories<br />11 / 11<br />MCOs<br />18 / 22<br />
Q2 10: Volume Growth by Region<br />Americas<br />Emerging Markets<br />Asia/AMET/CEE<br />Western Europe<br />
Q2 10: Strong Volume Shares<br />12-week volume share change vs. prior year<br />bps change<br />
Winning Where Markets are Toughest<br />Market Value Share Difference<br />Turkey <br />Home Care<br />Indonesia <br />Per...
China: <br />Narrowing the Gap to Market Leaders<br />Market Value Share Difference<br />China Savoury<br />China <br />Ho...
Q2 10: A&P Continued Investment <br />A&P change (bps)<br />Full year A&P will be up<br />We will lap high comparators dur...
H1 10: Strong Savings Continue<br /><ul><li>H1 Savings €0.7bn
Full year savings ahead of €1bn</li></li></ul><li>Q2 10: Continued Gross Margin Improvements<br />Gross Margin Improvement...
H1 10: Underlying Operating Margin<br />+30bps<br />
H1 10: Earnings Per Share<br />€0.70<br />Fully Diluted EPS Growth<br />36%<br />€0.52<br />
Third Consecutive Quarter of Negative Trading Working Capital<br />MAT Average WC % T/over<br />Closing WC % T/over<br />Q...
H1 10: Free Cash Flow<br />Free Cash Flow = Net Cash Flow from Operating Activities – Net Interest – Net Capex<br />
Balance Sheet<br />Net debt at €7.6bn, up from €6.4bn at end 2009 <br />€1.4bn adverse effect of exchange rates<br />Pensi...
Paul Polman <br />Chief Executive Officer<br />
Strategic Framework<br />Winning with brands <br />and innovation<br />Winning in the marketplace<br />Winning with <br />...
Winning with Brands and InnovationInnovation Rate Ahead of 2009<br /><ul><li>Highest ever innovation rate
Led by Personal Care</li></ul>33%<br />H1 2010<br />
Winning with Brands and InnovationInnovation Rate Ahead of 2009<br />
Winning with Brands and InnovationInnovating Category Wide: Hair<br />TIGI “Sleek Mystique”<br />US<br />SunsilkRelaunch<b...
Winning with Brands and InnovationInnovation in Action - Nigeria<br />ORAL CARE<br />HOME CARE<br />SAVOURY<br />
Winning with Brands and InnovationQ2 10: Brands Into New Markets<br />Sure<br />India<br />Lifebuoy<br />Brazil / Bolivia ...
Winning with Brands and InnovationQ2 10: Brands Into New Markets<br />Walls Fruttare<br />Thailand / Malaysia / Singapore<...
Winning with Brands and InnovationQ2 10: Brands Into New Markets<br />Pepsodent<br />Philippines<br />CIF<br />Vietnam<br />
Winning with Brands and InnovationWhite Spaces: a Growth Opportunity<br />Key Countries<br />
Reshaping the Portfolio<br />Sara Lee completion expected in Q4’10<br />Disposal of Findus Italy announced<br />Disposal o...
Winning in the Marketplace<br />Customer Insight and Innovation Centre<br />Paris Now Open. Roll-out will Continue<br />On...
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Unilever Q2 2010 results

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  • MCO’s not growing:DACH, Italy, Nordic, Spain, Greece, CEE, Top brands not growingHealth Heart
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  • Axe Poland – confirmed by Skin Cleansing category email 25 06 10Axe Malaysia – JMH spreadsheetCIF Vietnam – HHC activity plan and OTIF report MayCIF Indonesia – HHC activity plan and OTIF report May
  • Transcript of "Unilever Q2 2010 results"

    1. 1. Q2 2010 Results 5th August 2010<br />Paul Polman (CEO) – Jean-Marc Huët (CFO)<br />James Allison (Head of IR & M&A)<br />
    2. 2. Safe Harbour Statement<br />This announcement may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as ‘expects’, ‘anticipates’, ‘intends’, ‘believes’ or the negative of these terms and other similar expressions of future performance or results, 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, economic slowdown, industry consolidation, access to credit markets, recruitment levels, reputational risks, commodity prices, continued availability of raw materials, prioritisation of projects, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, consumer demands, 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 20-F Report and the Annual Report and Accounts 2009. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.<br />
    3. 3. Priorities for 2010<br /><ul><li>Continue to drive profitable volume growth
    4. 4. Steady and sustainable improvement in full year underlying operating margin
    5. 5. Strong cash flow</li></li></ul><li>Building Momentum in Tough Markets<br /><ul><li>Volume share up around 50 bps
    6. 6. Winning in emerging markets where competitive intensity is highest
    7. 7. Developed markets remain tough
    8. 8. Investing for the long term with A&P up considerably
    9. 9. A new stronger Unilever is emerging</li></li></ul><li>Jean-Marc Huët <br />Chief Financial Officer<br />
    10. 10. Q2 10: Strong Top Line Growth<br />-0.1%<br />€11.8bn<br />USG 3.6%<br />8.7%<br />-2.0%<br />5.7%<br />€10.5bn<br />
    11. 11. H1 10: Underlying Sales Growth<br />€21.9bn<br />0.0%<br />USG 3.8%<br />5.6%<br />-2.6%<br />6.6%<br />€20.0bn<br />
    12. 12. Q2 10: Improved Pricing<br />2nd quarter of flat pricing at group level<br />
    13. 13. Q2 10: Improved Pricing<br />Price growth -2.6% YTD<br />
    14. 14. Q2 10: Underlying Volume Growth<br />Underlying Volume Growth 6.6% YTD<br />
    15. 15. Volume Growth is Broad Based <br />Top Brands<br />12 / 13<br />Categories<br />11 / 11<br />MCOs<br />18 / 22<br />
    16. 16. Q2 10: Volume Growth by Region<br />Americas<br />Emerging Markets<br />Asia/AMET/CEE<br />Western Europe<br />
    17. 17. Q2 10: Strong Volume Shares<br />12-week volume share change vs. prior year<br />bps change<br />
    18. 18. Winning Where Markets are Toughest<br />Market Value Share Difference<br />Turkey <br />Home Care<br />Indonesia <br />Personal Care<br />Brazil<br />Home Care<br />10%<br />13%<br />42%<br />45%<br />52%<br />53%<br />Continued strengthening of our share positions <br />
    19. 19. China: <br />Narrowing the Gap to Market Leaders<br />Market Value Share Difference<br />China Savoury<br />China <br />Home Care<br />China <br />Personal Care<br />20%<br />16%<br />24%<br />22%<br />11%<br />4%<br />
    20. 20. Q2 10: A&P Continued Investment <br />A&P change (bps)<br />Full year A&P will be up<br />We will lap high comparators during Q3 and Q4 2010<br />
    21. 21. H1 10: Strong Savings Continue<br /><ul><li>H1 Savings €0.7bn
    22. 22. Full year savings ahead of €1bn</li></li></ul><li>Q2 10: Continued Gross Margin Improvements<br />Gross Margin Improvement 180bps YTD<br />
    23. 23. H1 10: Underlying Operating Margin<br />+30bps<br />
    24. 24. H1 10: Earnings Per Share<br />€0.70<br />Fully Diluted EPS Growth<br />36%<br />€0.52<br />
    25. 25. Third Consecutive Quarter of Negative Trading Working Capital<br />MAT Average WC % T/over<br />Closing WC % T/over<br />Q1 ‘09<br />Q2 ‘09<br />Q3 ‘09<br />Q4 ‘09<br />Q1 ‘10<br />Q2 ‘10<br />
    26. 26. H1 10: Free Cash Flow<br />Free Cash Flow = Net Cash Flow from Operating Activities – Net Interest – Net Capex<br />
    27. 27. Balance Sheet<br />Net debt at €7.6bn, up from €6.4bn at end 2009 <br />€1.4bn adverse effect of exchange rates<br />Pension deficit €4.0bn, from €2.6bn<br />€1bn from lower corporate double A bond rates<br />Cash contributions to pensions in the first half of around €350m<br />Quarterly dividend of €0.208 per NV share<br />
    28. 28. Paul Polman <br />Chief Executive Officer<br />
    29. 29. Strategic Framework<br />Winning with brands <br />and innovation<br />Winning in the marketplace<br />Winning with <br />people<br />The <br />Compass<br />Winning through continuous improvement<br />
    30. 30. Winning with Brands and InnovationInnovation Rate Ahead of 2009<br /><ul><li>Highest ever innovation rate
    31. 31. Led by Personal Care</li></ul>33%<br />H1 2010<br />
    32. 32. Winning with Brands and InnovationInnovation Rate Ahead of 2009<br />
    33. 33. Winning with Brands and InnovationInnovating Category Wide: Hair<br />TIGI “Sleek Mystique”<br />US<br />SunsilkRelaunch<br />Dove Damage Expert<br />
    34. 34. Winning with Brands and InnovationInnovation in Action - Nigeria<br />ORAL CARE<br />HOME CARE<br />SAVOURY<br />
    35. 35. Winning with Brands and InnovationQ2 10: Brands Into New Markets<br />Sure<br />India<br />Lifebuoy<br />Brazil / Bolivia / Peru / Australia<br />
    36. 36. Winning with Brands and InnovationQ2 10: Brands Into New Markets<br />Walls Fruttare<br />Thailand / Malaysia / Singapore<br />TIGI<br />India / Brazil<br />
    37. 37. Winning with Brands and InnovationQ2 10: Brands Into New Markets<br />Pepsodent<br />Philippines<br />CIF<br />Vietnam<br />
    38. 38. Winning with Brands and InnovationWhite Spaces: a Growth Opportunity<br />Key Countries<br />
    39. 39. Reshaping the Portfolio<br />Sara Lee completion expected in Q4’10<br />Disposal of Findus Italy announced<br />Disposal of Palm Oil Plantation in Ghana<br />Brunch brand disposal completed<br />Du Darfst licensing under way<br />
    40. 40. Winning in the Marketplace<br />Customer Insight and Innovation Centre<br />Paris Now Open. Roll-out will Continue<br />On-Shelf Availability Continues to Improve<br />London Leatherhead - LIVE<br />Englewood Cliffs - LIVE<br />Paris – LIVE<br />+290 bps<br />Shanghai – 2010<br />Singapore – 2010<br />Sao Paolo – 2010<br />
    41. 41. Winning with People<br />Organisation and Culture<br />More agile organisation<br />Key new roles in place<br />Supply Chain Officer<br />Customer Officer<br />Marketing Officer<br />Building capability <br />Enterprise Support<br />New reward system in place<br />
    42. 42. Priorities for 2010<br /><ul><li>Continue to drive profitable volume growth
    43. 43. Steady and sustainable improvement in full year underlying operating margin
    44. 44. Strong cash flow</li></li></ul><li>Questions<br />
    45. 45. Q2 10: Underlying Operating Margin<br />+10bps<br />
    46. 46. H1 10: Free Cash Flow<br />Net Cash Flow from Operating Activities<br />€2.2bn<br />€3.1bn<br />€0.5bn<br />€0.6bn<br />€0.5bn<br />€0.2bn<br />€0.1bn<br />€0.8bn<br />€1.3bn<br />€0.2bn<br />Free Cash Flow = Net Cash Flow from Operating Activities – Net Interest – Net Capex<br />
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