Q2 and First Half 2009 Results
        ROADSHOW




Contents

                                Page

Highlights            ...
Safe Harbour Statement

This announcement may contain forward-looking statements, including 'forward-
looking statements' ...
Highlights

Quality of growth is good
•   Market share momentum in 60% of our business
•   Widespread growth across catego...
Q2 Highlights


 • Underlying sales growth +4.1%

 • Restored volume growth +2.0%

 • Step up in A&P investments +50bps

 ...
Asia Africa CEE

       UVG
         3.3%
                1.3%   • Most economies resilient and growing

(0.9)%           ...
Western Europe

       UVG
         1.0%


                  (1.2)%
                            • Markets remain challengi...
Q2 Operating Margin

                                          Q2 2008         Q2 2009 Change
Operating margin            ...
H1 Operating Margin

                                              H1 2008         H1 2009 Change
Operating margin        ...
Commodity Cost Development

        900                                             Commodity Costs     Currency*

       ...
H1 Drivers of EPS Growth


                                        H1 2008       H1 2009          Change
EPS (€)          ...
Balance Sheet and Cash Flow


• Strong cash flow delivery - up €1.6bn in H1

• Net debt €8.9bn

• New bonds issued at attr...
Key Drivers of Business Performance



                                      Cash and Costs

        Brands & Categories

...
Brands and Categories
Faster Roll-Out to More Markets
Examples:




 17 Markets      33 Markets    37 Markets    56 Market...
Brands and Categories
Playing the Full Price Piano
Example: Russia Tea

   Premium
                         • Roll-out of ...
In Market Amplification
Positive Customer Service Trend

20                            Number of Top 20 countries achievin...
Cash and Costs
 Restructuring Well on Track

                                           Plan 2007-2010       Actual to dat...
Organisation
Aligning the Organisation

    Accountability &
    Responsibility


                             Consistent
...
Our Portfolio




Scale and geographic reach



                    Western Europe | €12.9bn | 32%




The Americas | €13....
Balanced category portfolio

                                        Savoury,
    Home Care                          Dress...
Big Global Brands

             13 billion euro + brands




   Top 25 brands = ¾ of Unilever’s sales




Selective Bolt-O...
Partnerships



        Starbucks Ice Cream         Pepsi Lipton International




Disposals completed in 2008


     Incl...
Developing & Emerging
         Markets




The D&E Opportunity

              D&E Population in 2008
                    (...
… Rapidly Evolving into a Diamond

Billions of people in D&E countries
                        2008                       ...
Building Markets – Driving Penetration




Shampoo sachets           Re-closable multi-use     Deo ministicks             ...
Long-Term Strength in D&E

                      Since 1990…
 16                   • Underlying sales growth 9% pa on aver...
Innovation




Building R&D for Competitive
Advantage


• More focus on big wins

• Leverage our unique science across our...
Science and Technology Strengths




    Spray Technology    Skin Mildness              Product Processing
       Deodoran...
Prioritising our big wins

   Science &                                     Unilever Big Wins
  Technology



            ...
Improving R&D capabilities


• Crossover technologies driving differentiated
  innovation

• Boosting open innovation


• ...
Knorr Stock Pots

Stock Pots with new bouillon gel technology for natural tasty stock and soups
                    Launch...
Heart Health

“Goodness of Margarine”
                                    Family Goodness brings better
                  ...
Lipton

New Lipton pyramid teas and infusions
  with chunky pieces of fruits, spices
   and large leaves for the great tea...
Clear

        Complete antidandruff and scalp care regime
              Centrally developed, identically presented




Ax...
Axe Instinct


                     New Axe Instinct
                    with the ‘scent of leather’




Dove Hair Minimis...
Dove Go Fresh

                          Dove Go Fresh
 A fragrance-driven collection of products aimed at women in their ...
Surf

       Surf – Cleaning & Fragrance at a Great Value Price




Domestos 24HR




                               The c...
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Ir Q2 2009 Roadshow Presentation

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Presentation for Investor Roadshow meetings Post Q2 2009 results by Unilever Investor Relations

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Ir Q2 2009 Roadshow Presentation

  1. 1. Q2 and First Half 2009 Results ROADSHOW Contents Page Highlights 5 Business Performance 6 – 34 Our Portfolio 35 – 42 Developing & Emerging Markets 43 – 50 Innovation 51 - 72 1
  2. 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, 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 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, 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. 2
  3. 3. Highlights Quality of growth is good • Market share momentum in 60% of our business • Widespread growth across categories & countries • Underpinned by innovation and A&P support • Gross margin trend improving Business Environment will remain tough • Consumer confidence low and unemployment increasing • Competitors will raise their game Priorities for 2009 1. Restore volume growth 2. Protect cash and margin for the full year Business Performance 3
  4. 4. Q2 Highlights • Underlying sales growth +4.1% • Restored volume growth +2.0% • Step up in A&P investments +50bps • Underlying operating margin down 60bps, in line with expectations • Cash flow improved €1.6bn in H1 Unilever Volume and Price Trends 5.0% Volume 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% -3.0% -4.0% -5.0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 10.0% Price 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 4
  5. 5. Asia Africa CEE UVG 3.3% 1.3% • Most economies resilient and growing (0.9)% • Broad based volume growth Q1 Q2 H1 9.5% USG • Central Europe remains weak 8.8% 8.2% • Q2 Underlying margin up +130 bps Q1 Q2 H1 Americas UVG 1.6% • Consumer confidence remains weak 0.4% (1.0)% • Positive volume growth continues in Q1 Q2 H1 US consumer business 7.2% USG 5.9% • Good performance in Latin America 4.9% • Q2 Underlying margin up +10 bps Q1 Q2 H1 5
  6. 6. Western Europe UVG 1.0% (1.2)% • Markets remain challenging (3.7)% Q1 Q2 H1 • Positive volume trend in key countries USG • Q2 Underlying margin down (340) bps (1.1)% (1.9)% (2.8)% Q1 Q2 H1 H1 Underlying Sales Growth by Category 12 9.9 10 8 6 4.5 4.6 4 2 1.4 0 Savoury Ice Cream Home Care Personal Care Spreads Beverages Dressings 6
  7. 7. Q2 Operating Margin Q2 2008 Q2 2009 Change Operating margin 13.2% 12.6% (0.6)% Including RDIs* (2.0)% (2.0)% (0.0)% Operating margin before RDIs 15.2% 14.6% (0.6)% Key drivers: Gross margin (0.2)% Overheads 0.1% A&P (0.5)% Includes margin dilution from disposals of (0.3)% *Restructuring, disposals and one-off items Q2 Drivers of Operating Profit* 0.5 Price 0.3 Vol/Mix 0.1 Acq/Disp 0 €bn -0.1 A&P Underlying Profit -0.3 Costs Savings programme -0.5 *Excl RDIs, constant currency 7
  8. 8. H1 Operating Margin H1 2008 H1 2009 Change Operating margin 16.0% 12.8% (3.2)% Including RDIs* 0.9% (1.8)% (2.7)% Operating margin before RDIs 15.1% 14.6% (0.5)% Key drivers: Gross margin (1.0)% Overheads 0.2% A&P 0.3% Includes margin dilution from disposals of (0.3)% *Restructuring, disposals and one-off items H1 Drivers of Operating Profit* 0.8 Price Costs 0.6 0.4 0.2 Vol/Mix 0 €bn 0 Acq/Disp -0.2 A&P Underlying Profit -0.4 -0.6 Savings -0.8 programme *Excl RDIs, constant currency 8
  9. 9. Commodity Cost Development 900 Commodity Costs Currency* 800 700 600 500 bps 400 300 200 100 0 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 2009 • Commodity costs tailwinds in H2 • FY2009 commodity costs (including currency) up vs last year *Note: Before Q4 08 currency effects were insignificant Strong Savings Delivery • €0.6bn total savings delivered in H1 Local efficiency 0.1 Restructuring 0.2 Buying 0.3 On track to deliver c. €1bn in this year 9
  10. 10. H1 Drivers of EPS Growth H1 2008 H1 2009 Change EPS (€) 0.79 0.53 (33)% Includes RDIs*, after tax 0.07 (0.10) EPS before RDIs* 0.72 0.63 (13)% Key drivers (%) Dilution from disposals (3) Pensions finance charge (6) Tax rate (before RDIs*) (3) *Restructuring, disposals and one-off items Reducing Cash Conversion Cycle Q2 2008 Q2 2009 Improvement Stock days 74 61 13 Debtor days 44 41 3 Creditor days (77) (77) 0 Total days 41 26 15 10
  11. 11. Balance Sheet and Cash Flow • Strong cash flow delivery - up €1.6bn in H1 • Net debt €8.9bn • New bonds issued at attractive rates • Acquisitions: TiGi, Baltimor, Vietnam minorities Returning Cash to Shareholders > €7bn returned 07-08 4 Total cash amount (€bn) 3 2 1 0 2004 2005 2006 2007 2008 Dividends Share buyback One-off dividend • Dividend Policy: sustainable, attractive and growing dividends • Move to quarterly dividends • No plans for share buy-backs in 2009 11
  12. 12. Key Drivers of Business Performance Cash and Costs Brands & Categories In Market Organisation Amplification Brands and Categories Stronger Claims Examples: US Soft Spreads Asia Pond’s Anti US Dove Body Wash Ageing Creams ‘No hydrogenated ‘Clinically proven to oils’ ‘Younger skin in 7 reverse dryness’ days’ Brands 12
  13. 13. Brands and Categories Faster Roll-Out to More Markets Examples: 17 Markets 33 Markets 37 Markets 56 Markets Brands and Categories Improving Product Quality Examples: Brands Amora - France Klondike - US DiG - Asia 13
  14. 14. Brands and Categories Playing the Full Price Piano Example: Russia Tea Premium • Roll-out of fruit pyramid teas Brands • New advertising Mid-Tier campaign • Launch of herbal infusions Value Brands and Categories Focus on offering consumer value 14
  15. 15. In Market Amplification Positive Customer Service Trend 20 Number of Top 20 countries achieving service at the 2009 par target level 15 10 5 0 Jan-08 Jan-09 Aug Jun Feb Sep Feb Mar Apr Mar Apr May Nov May Jul Dec Oct In Market Amplification Customer Insight and Innovation Center The Customer Insight & Innovation Centre in the US will be showcased at our Investor Event in 23-24 November 2009 15
  16. 16. Cash and Costs Restructuring Well on Track Plan 2007-2010 Actual to date From 100 units Multi-country organisations 28 to 20-25 MCOs Factory closures / streamlining 50-60 Announced 70 Of which completed > 35 Headcount reduction 20,000 > 10,000 Restructuring savings €1.5bn €0.9bn Restructuring charges €3.0bn €2.1bn Organisation Change Programme Update 2005 2006 2007 2008 2009 2010 One CEO, New New New Governance, Non-Exec Board Board Chairman CFO CEO Global One One Brands & Category Innovation Team Category R&D Go-to- Customer One Unilever MCOs Focus Market Factory Cost Base Simplification Overhead Simplification 16
  17. 17. Organisation Aligning the Organisation Accountability & Responsibility Consistent Bias for Action Winning Organisation Consumer & Customer Focus Our Priorities • Reignite volume growth • Protect cash flow and margin 17
  18. 18. Our Portfolio Scale and geographic reach Western Europe | €12.9bn | 32% The Americas | €13.2bn | 33% Asia Africa CEE | €14.4bn | 35% 2008 Unilever Turnover €40.5bn | 100% 18
  19. 19. Balanced category portfolio Savoury, Home Care Dressings & €7.2bn (18%) Spreads €14.2bn (35%) Ice Cream & Personal Care Beverages €11.4bn (28%) €7.7bn (19%) Strong Leadership Positions Savoury #1 Dressings #1 Tea #1 Ice Cream #1 Spreads #1 Deodorants #1 Mass Skin #1 Laundry #2 Daily Hair Care #2 Oral Care Local Strength Household Cleaning Local Strength 19
  20. 20. Big Global Brands 13 billion euro + brands Top 25 brands = ¾ of Unilever’s sales Selective Bolt-On Acquisitions Buavita Indonesia Inmarko Russia TIGI Global Wonderlight Sri Lanka Napoca Romania Baltimor Russia 20
  21. 21. Partnerships Starbucks Ice Cream Pepsi Lipton International Disposals completed in 2008 Including: Turnover €bn 0.1 Boursin Cheese Lawry’s Seasonings 0.1 0.7 NA Laundry Bertolli Olive Oil 0.4 Disposals completed with €1.6 billon turnover Average 1.8x sales multiple 21
  22. 22. Developing & Emerging Markets The D&E Opportunity D&E Population in 2008 (billions) Affluent 0.5 Aspiring 2.6 Striving 2.6 22
  23. 23. … Rapidly Evolving into a Diamond Billions of people in D&E countries 2008 2018 Change Have lots 0.5 0.9 + 0.4 Haves 2.6 3.2 + 0.6 Not yets 2.6 2.2 - 0.4 Source: Unilever estimates Market Development Opportunity Per Capita Consumption (US $ per year ) Detergents 22.9 Shampoo 7.5 6.7 16.6 5.4 12.1 2.2 1.9 1.0 1.1 1.4 0.3 India China Indonesia Brazil Germany USA India China Indonesia Brazil USA Germany Ice Cream 50.9 Skin care 36.6 34.6 26.9 10.9 2.8 5.0 0.2 0.9 3.2 0.8 0.3 India Indonesia China Brazil Germany USA India China Indonesia Brazil USA Germany Source : Euromonitor 23
  24. 24. Building Markets – Driving Penetration Shampoo sachets Re-closable multi-use Deo ministicks Mini cubes sachets Building Markets - Uptrading Functional Teas Pyramids Double Chamber Mid-market Teabags • Great potential for uptrading D&E Conversion Teabags • Tea has 20% share of volume vs. 12% value for total Beverages Branded Packet Tea Loose Leaf Tea conversion upgrading uptrading 24
  25. 25. Long-Term Strength in D&E Since 1990… 16 • Underlying sales growth 9% pa on average • Hard currency growth of 7% pa on average 14 • Volume growth 5% pa on average 12 • Volume and value growth in every year 10 8 6 4 2 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 -2 UVG UPG *1990-2002 LATAM and Asia. From 2003 all countries excl NA, WE, Japan and Australia. D&E Growth is Profitable 2008 Operating margin before RDIs* Unilever average * Restructuring, disposals and one-off items 25
  26. 26. Innovation Building R&D for Competitive Advantage • More focus on big wins • Leverage our unique science across our portfolio • Accelerate delivery of breakthroughs • Build world class capabilities in critical areas 26
  27. 27. Science and Technology Strengths Spray Technology Skin Mildness Product Processing Deodorants and Moisturizing e.g. Ice Cream Hair Structured Science of Tea Technology Oils and Emulsions More focused R&D organisation • 6 Global R&D Centres Port Sunlight, UK Colworth, Vlaardingen, UK NL Trumbull, US Shanghai, China Bangalore, India • 40% of our R&D people are in Developing & Emerging markets, and building …. 27
  28. 28. Prioritising our big wins Science & Unilever Big Wins Technology Prioritised ts Portfolio jec Pro sis ne Ge Consumer Needs Trends Brand Categories Leverage Technology Across Portfolio Home Care Personal Care Foods Genesis Project 1 Genesis Project 2 Consumer Benefit Genesis Project 3 Genesis Project 4 Focus Genesis Project 5 Genesis Project 6 Genesis Project 7 Genesis Project 8 Genesis 9 Genesis Project 10 Genesis Project 11 Technology Focus Genesis Project 12 Genesis Project 13 Science & Genesis Project 14 Genesis Project 15 Genesis Project 16 Genesis Project 17 28
  29. 29. Improving R&D capabilities • Crossover technologies driving differentiated innovation • Boosting open innovation • Strengthening clinicals • Exploiting patents across categories Fewer, bigger innovations • From 5000+ projects to 700 Number of category innovation projects 6000 5000 4000 3000 2000 1000 0 2005 2006 2007 2008 2009 • Average project size increased 10x 29
  30. 30. Knorr Stock Pots Stock Pots with new bouillon gel technology for natural tasty stock and soups Launched in China and across Europe Bertolli Frozen Meals New Bertolli Frozen Meals Restaurant Taste with your Homemade Touch 30
  31. 31. Heart Health “Goodness of Margarine” Family Goodness brings better nutrition for family growth For better taste and with less fat Hellmann’s Light Delicious extra light mayonnaise with unique citrus fibre technology Now double-whisked to bring out the great taste! 31
  32. 32. Lipton New Lipton pyramid teas and infusions with chunky pieces of fruits, spices and large leaves for the great tea tasting experience A unique slimming tea twice as rich in catechins to help maintain your silhouette Magnum Temptation An unrivalled multi-sensorial experience using cold roller technology 32
  33. 33. Clear Complete antidandruff and scalp care regime Centrally developed, identically presented Axe Hair New Axe Hair launched in the US designed to create hair that guys want and girls love A complete line of shampoos, a conditioner, and styling products 33
  34. 34. Axe Instinct New Axe Instinct with the ‘scent of leather’ Dove Hair Minimising Deodorants Dove Hair Minimising Deodorants Look and Feel Hair Free for Longer 34
  35. 35. Dove Go Fresh Dove Go Fresh A fragrance-driven collection of products aimed at women in their 20s Rolled out to 55 markets in 2008 alone Dove NUTRIUM Technology Dove Body Wash with new NUTRIUM technology - US The most effective natural nourishment ever delivered in a body wash 35
  36. 36. Surf Surf – Cleaning & Fragrance at a Great Value Price Domestos 24HR The clinging power of new thicker formula makes it flush proof, protecting you and your family from germs 36

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