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Unilever Q2 2010 results

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Presentation from the Unilever Q2 2010 financial results webcast

Presentation from the Unilever Q2 2010 financial results webcast

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  • Transcript

    • 1. Q2 2010 Results 5th August 2010
      Paul Polman (CEO) – Jean-Marc Huët (CFO)
      James Allison (Head of IR & M&A)
    • 2. 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 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.
    • 3. Priorities for 2010
      • Continue to drive profitable volume growth
      • 4. Steady and sustainable improvement in full year underlying operating margin
      • 5. Strong cash flow
    • Building Momentum in Tough Markets
      • Volume share up around 50 bps
      • 6. Winning in emerging markets where competitive intensity is highest
      • 7. Developed markets remain tough
      • 8. Investing for the long term with A&P up considerably
      • 9. A new stronger Unilever is emerging
    • Jean-Marc Huët
      Chief Financial Officer
    • 10. Q2 10: Strong Top Line Growth
      -0.1%
      €11.8bn
      USG 3.6%
      8.7%
      -2.0%
      5.7%
      €10.5bn
    • 11. H1 10: Underlying Sales Growth
      €21.9bn
      0.0%
      USG 3.8%
      5.6%
      -2.6%
      6.6%
      €20.0bn
    • 12. Q2 10: Improved Pricing
      2nd quarter of flat pricing at group level
    • 13. Q2 10: Improved Pricing
      Price growth -2.6% YTD
    • 14. Q2 10: Underlying Volume Growth
      Underlying Volume Growth 6.6% YTD
    • 15. Volume Growth is Broad Based
      Top Brands
      12 / 13
      Categories
      11 / 11
      MCOs
      18 / 22
    • 16. Q2 10: Volume Growth by Region
      Americas
      Emerging Markets
      Asia/AMET/CEE
      Western Europe
    • 17. Q2 10: Strong Volume Shares
      12-week volume share change vs. prior year
      bps change
    • 18. Winning Where Markets are Toughest
      Market Value Share Difference
      Turkey
      Home Care
      Indonesia
      Personal Care
      Brazil
      Home Care
      10%
      13%
      42%
      45%
      52%
      53%
      Continued strengthening of our share positions
    • 19. China:
      Narrowing the Gap to Market Leaders
      Market Value Share Difference
      China Savoury
      China
      Home Care
      China
      Personal Care
      20%
      16%
      24%
      22%
      11%
      4%
    • 20. Q2 10: A&P Continued Investment
      A&P change (bps)
      Full year A&P will be up
      We will lap high comparators during Q3 and Q4 2010
    • 21. H1 10: Strong Savings Continue
      • H1 Savings €0.7bn
      • 22. Full year savings ahead of €1bn
    • Q2 10: Continued Gross Margin Improvements
      Gross Margin Improvement 180bps YTD
    • 23. H1 10: Underlying Operating Margin
      +30bps
    • 24. H1 10: Earnings Per Share
      €0.70
      Fully Diluted EPS Growth
      36%
      €0.52
    • 25. Third Consecutive Quarter of Negative Trading Working Capital
      MAT Average WC % T/over
      Closing WC % T/over
      Q1 ‘09
      Q2 ‘09
      Q3 ‘09
      Q4 ‘09
      Q1 ‘10
      Q2 ‘10
    • 26. H1 10: Free Cash Flow
      Free Cash Flow = Net Cash Flow from Operating Activities – Net Interest – Net Capex
    • 27. Balance Sheet
      Net debt at €7.6bn, up from €6.4bn at end 2009
      €1.4bn adverse effect of exchange rates
      Pension deficit €4.0bn, from €2.6bn
      €1bn from lower corporate double A bond rates
      Cash contributions to pensions in the first half of around €350m
      Quarterly dividend of €0.208 per NV share
    • 28. Paul Polman
      Chief Executive Officer
    • 29. Strategic Framework
      Winning with brands
      and innovation
      Winning in the marketplace
      Winning with
      people
      The
      Compass
      Winning through continuous improvement
    • 30. Winning with Brands and InnovationInnovation Rate Ahead of 2009
      • Highest ever innovation rate
      • 31. Led by Personal Care
      33%
      H1 2010
    • 32. Winning with Brands and InnovationInnovation Rate Ahead of 2009
    • 33. Winning with Brands and InnovationInnovating Category Wide: Hair
      TIGI “Sleek Mystique”
      US
      SunsilkRelaunch
      Dove Damage Expert
    • 34. Winning with Brands and InnovationInnovation in Action - Nigeria
      ORAL CARE
      HOME CARE
      SAVOURY
    • 35. Winning with Brands and InnovationQ2 10: Brands Into New Markets
      Sure
      India
      Lifebuoy
      Brazil / Bolivia / Peru / Australia
    • 36. Winning with Brands and InnovationQ2 10: Brands Into New Markets
      Walls Fruttare
      Thailand / Malaysia / Singapore
      TIGI
      India / Brazil
    • 37. Winning with Brands and InnovationQ2 10: Brands Into New Markets
      Pepsodent
      Philippines
      CIF
      Vietnam
    • 38. Winning with Brands and InnovationWhite Spaces: a Growth Opportunity
      Key Countries
    • 39. Reshaping the Portfolio
      Sara Lee completion expected in Q4’10
      Disposal of Findus Italy announced
      Disposal of Palm Oil Plantation in Ghana
      Brunch brand disposal completed
      Du Darfst licensing under way
    • 40. Winning in the Marketplace
      Customer Insight and Innovation Centre
      Paris Now Open. Roll-out will Continue
      On-Shelf Availability Continues to Improve
      London Leatherhead - LIVE
      Englewood Cliffs - LIVE
      Paris – LIVE
      +290 bps
      Shanghai – 2010
      Singapore – 2010
      Sao Paolo – 2010
    • 41. Winning with People
      Organisation and Culture
      More agile organisation
      Key new roles in place
      Supply Chain Officer
      Customer Officer
      Marketing Officer
      Building capability
      Enterprise Support
      New reward system in place
    • 42. Priorities for 2010
      • Continue to drive profitable volume growth
      • 43. Steady and sustainable improvement in full year underlying operating margin
      • 44. Strong cash flow
    • Questions
    • 45. Q2 10: Underlying Operating Margin
      +10bps
    • 46. H1 10: Free Cash Flow
      Net Cash Flow from Operating Activities
      €2.2bn
      €3.1bn
      €0.5bn
      €0.6bn
      €0.5bn
      €0.2bn
      €0.1bn
      €0.8bn
      €1.3bn
      €0.2bn
      Free Cash Flow = Net Cash Flow from Operating Activities – Net Interest – Net Capex

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