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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Unilever Q2 2010 results Presentation 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