Transcription
Introduction to UnileverNovember 2014
CONTENTS1Mission2Categories, Brands & Geographic Reach3Our Strategy3.1. Winning with Brands and Innovation3.2. Winning in the Marketplace3.3. Winning through Continuous Improvement3.4. Winning with People4Sustainable Living Plan5Unilever in Emerging Markets6Financial Performance , Governance and Shares7Contact Information
1WE ARE A SUCCESSFUL, GROWING, SUSTAINABLE BUSINESSWe work to create a better future every day,With brands and services that help people feel good, look good, and get more out of life.We will lead for responsible growth,inspiring people to take small everyday actions that will add up to a big difference.We will develop new ways of doing business that will allow us to double the size of our company,while reducing our environmental footprint and increasing our positive social impact.3
2WELL POSITIONED FOR GROWTH2bnconsumers worldwideuse a Unilever producton any dayProducts sold in more57%than190 countriesof sales inemerging marketsMore than50 yearsexperience in Brazil,China, India andIndonesia4
2STRONG BRANDS AND BALANCED PORTFOLIOFoods : 27% of salesPersonal Care: 36% of salesRefreshment: 19% of salesHome Care: 18% of sales14 ‘Billion Euro’ brands5
2STRONG GEOGRAPHIC FOOTPRINTAsia/Africa/RUB 20.1bn40% SalesDeveloped 21.5bn43% SalesThe Americas 16.2bn33% SalesEurope 13.5bn27% SalesEmerging 28.3bn57% Sales“Our deep roots in local cultures and markets around the world give us our strong relationships with consumers andare the foundation for future growth. We will bring our wealth of knowledge and international expertise to the service oflocal consumers - a truly multi-local multinational” - extract from Unilever’s Corporate purpose6
2UNILEVER IS STRONGLY POSITIONED IN KEY MARKETSFabric Cleaning1Hair Care121Skin Cleansing111211122Face CareDeos1Tea1Savoury22Ice nesSouth AfricaTurkey11111ArgentinaPakistan7Source: Nielsen / IR /estimates
3OUR COMPASS STRATEGY SETS OUT OUR AMBITIONDouble the size of Unileverwhilst reducing our environmental footprintand increasing our positive social impact8
3UNILEVER’S LONG TERM PRIORITIES1Volume growth ahead of our markets2Steady and sustainable improvement in core operating margin3Strong cash flowWhilst consistently investing in the long term health of the business9
3.1WINNING WITH BRANDS AND INNOVATIONS10
3.1CONTINUE TO ROLLOUT BRANDS TO NEW COUNTRIESClear : 40 countriesDove: 60 countriesAxe : 60 countriesCif: 50 countriesMagnum: 40 countriesKnorr Jelly: 35 countries11
3.2WINNING IN THE MARKET PLACEStepping up service levelDeep distribution reachRural coverageExpanding reachIndia : ‘Shakti’Outlying islandsReaching 6.5m stores in 2013Modern tradeTraditional trade900bps20082013On shelf availability12
3.2LEAD MARKET DEVELOPMENT: OUR REPEATABLE MODELReach UpAcceleratepremiumisationReach WideReach DownCompete fornon usersBe first and be fastin white spaces pWhite spacePresent13
3.2DRUG CHANNEL: GAINING FAIR SHARERight portfolioDifferentiationPC business modelPerfect drug stores14
3.2ACCELERATE ‘OUT OF HOME’Follow the shopperVisibility & activationChannel relevant solutions15
3.2E-COMMERCE: BUILD SCALE & EXPERTISE FAST16
3.3WINNING THROUGH CONTINUOUS IMPROVEMENT:DRIVING THE VIRTUOUS CIRCLE OF GROWTH17
3.3A MORE COMPETITIVE COST STRUCTURESavings mitigating inflationGlobal supply chainContaining cost with disciplineWorld class Value improvement petitive costSC creates M&A synergiesqualityvalue throughFlexible, agile Non-working media& leanFlawlessstructuresexecution18
3.3GROSS MARGIN AS PRIORITY3/4 of innovations accretivePrice index100Low cost business modelsFast growing channels2011-2013130E commerce:50% growth 225m 800mSavingsrealisedSavingsidentifiedDrug stores:double-digit growth19
3.4WINNING WITH PEOPLE:BUILDING A PERFORMANCE CULTUREPersonalCareNorth AmericaLatin AmericaHome CareEuropeSouth EastAsia &AustralasiaRefreshmentFaster decision makingFoodsNAMET & RUBNorth AsiaSouth AsiaAfricaDifferentiated ratingStandards of LeadershipFewer touch points25%DeliveryInternal and external appointments – 2/3rd of senior management in new roles20
3.4INVESTING IN ORGANISATIONAL STRENGTH AND CAPABILITIESBuilding organisationalcapabilitiesAn employer of choiceEnterprise & TechnologySolutionsNo. 1 FMCG in 25 countries21
3.4UNILEVER LEADERSHIP EXECUTIVEPaul PolmanCEODoug BaillieKeith WeedHarish ManwaniCHROMarketing & CommunicationsCOODavid BlanchardKevin HavelockKees KruythoffChief Category R&D OfficerRefreshmentNorth AmericaJean‐Marc HuëtAlan JopeJan ZijderveldCFOPersonal CareEuropeRitva SotamaaNitin ParanjpeChief Legal OfficerHome CarePier Luigi SigismondiAntoine De Saint‐AffriqueChief Supply Chain OfficerFoods22
4UNILEVER SUSTAINABLE LIVING PLAN: 3 BIG GOALS23
4SUSTAINABILITY: A SOURCE OF COMPETITIVE ADVANTAGELifebuoy ‘Help a child reach 5’Dove ‘Beauty Sketches’Helping to improve health and well being of our consumers whilst increasing brand awareness and sales24
5EMERGING MARKETS: SIGNIFICANT OPPORTUNITY EXISTS201020201.9 bn3.0 bnHaves2.0 bn2.7 bnHave nots2.9 bn1.9 bnHave lotsTotal population6.8 bn7.6 bn1.8 bn people will move up the ladder, mainly in emerging markets25
5WIDE FOOT-PRINT IN EMERGING MARKETSBroad country spreadEver more important for our businessDeveloped43%Developed57%EmergingOther emerging195619852013 H126Time intervals not to scale
5EMERGING MARKETS: CONSISTENT GROWTH OVER 20 607080910111213Consistent track record – 9% p.a. Underlying Sales Growth over the last 20 years27
62013: CONSISTENT TOP AND BOTTOM LINE GROWTHGrowth ahead of ourmarketsImproved Core OperatingMarginStrong cash flowUnderlying Sales Growth (USG) COMFree cash flow*4.3% 40bps 3.9bn*Free Cash Flow: Net Cash Flow from Operating Activities – NetInterest – Net Capex28
6GROWTH ENGINES CONTINUE TO DELIVER STRONGLY IN 2013Emerging markets:volume-driven growthUSG: 8.7%Personal Care:broad-based growthUSG: 7.3%Home Care:consistent growthUSG: 8.0%29
6COMMITMENT TO SHAREHOLDER VALUEUnilever measures its Total Shareholder Return, over a 3 year rolling period, amongst a peer group of 20 companiesPeer group in 2013 Avon Kao Beiersdorf Kellogg’s Campbells Kimberly-Clark Coca-Cola L’Oréal Colgate Nestlé Danone Pepsico Estee Lauder Procter & Gamble General Mills Reckitt Benckiser Heinz Shiseido HenkelUnilever’s TSR position relative tothe peer group over a rolling 3 yr period07142119992001200320052007200920112013“ our road to sustainable, profitable growth, creating long term value for ourshareholders, our people, and our business partners” extract from Unilever’sCorporate purpose30
6LEGAL STRUCTURE, GOVERNANCE AND SHARESUnilever was formed in 1930 from two companies:Margarine Unie(Netherlands)Lever Brothers(UK)It was a full business merger, operating as a single business entityTwo separate legal parent companies were maintained:- Unilever NV (Netherlands) and Unilever PLC (UK).This works through an equalisation agreement and other contractsbetween the two companies.31
6LEGAL STRUCTUREUnilever NV and PLC have separate legal identities but operate as a single entityNV shareholdersPLC shareholdersDirectorsNVNV owned operating companiesEqualisation and other agreementsJointly owned operating companiesPLCPLC owned operating companies32
6LEGAL STRUCTUREUnilever firmly believes in maintaining high standards ofCorporate GovernanceThese have evolved in response to developments in Europe (UK Corporate Governance Code, Dutch Corporate GovernanceCode, listing rules), and the US (Sarbanes Oxley, NYSE listing rules)The boards of NV and PLC comprise the same directorsThere are a majority of independent, non-executive directors on the boards. The Chairman is non-executiveThe boards have ultimate responsibility for the business as a wholeDetails of current arrangements can be found in the report and accounts in the investor centre atwww.unilever.com/investorrelations33
6SHARE LISTINGS Unilever NV ordinary shares or certificates (depositary receipts) are listed on the stock exchanges in Amsterdam and as NewYork Registry shares on the New York Stock Exchange. Unilever PLC ordinary shares are listed on the London Stock Exchange and as American Depositary Receipts in New York.Each ADR represents 1 underlying ordinary PLC share. There are 1,714,727,700 NV ordinary shares in issue, each with a nominal value of 0.16 each. There are 1,310,156,361 PLC ordinary shares in issue, each with a nominal value of 3 1/9 pence each. The equalisation agreement between NV and PLC is such that each NV ordinary share has the same rights and benefits aseach PLC ordinary share. The combined share count excluding treasury stock, for calculating basic EPS, was 2,838 million at the end of 2013 The combined share count excluding treasury stock, for calculating diluted EPS, was 2,924 million at the end of 2013Further information can be found in the investor centre at www.unilever.com
6SHARE LISTINGSExchangeAmsterdamLondonShareUnilever NVUnilever PLCUnilever NV NYUnilever PLC NYTickerUNAULVRUNUL 1.050 0.892 1.395 1.395Cash paymentper share 2013New York35
6SHARE LISTINGS AND OWNERSHIPShare listings as a percentage of identified capitalNV NY: 8.4%Share ownership by country at the end of 2013Other/Unidentified: 42.1%PLC ADR: 4.3%UK: 28.4%NV: 46.4%Netherlands: 6.8%PLC: 40.9%USA: 22.7%36
6AN ATTRACTIVE AND GROWING DIVIDEND 1.0501979198919992013Dividend payout 1979 - today 8% CAGR37
7FURTHER INFORMATION AND CONTACT DETAILSMore information on Unilever is available at www.unilever.com/investorrelationsDownload the Unilever IR app for the iPhone and iPadThe IR team can be contacted as follows:By phone: 44 (0) 20 7822 6830By e-mail: investor.relations@unilever.com38
SAFE HARBOUR STATEMENTThis announcement may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the UnitedStates Private Securities Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’,‘vision’, or the negative of these terms and other similar expressions of future performance or results, and their negatives, are intended toidentify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptionsregarding anticipated developments and other factors affecting the Unilever group (the “Group”). They are not historical facts, nor are theyguarantees of future performance.Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results todiffer materially from those expressed or implied by these forward-looking statements. Among other risks and uncertainties, the material orprincipal factors which could cause actual results to differ materially are: Unilever’s global brands not meeting consumer preferences;increasing competitive pressures; Unilever’s investment choices in its portfolio management; inability to find sustainable solutions tosupport long-term growth; customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain; thecost of raw materials and commodities; secure and reliable IT infrastructure; successful execution of acquisitions, divestitures and businesstransformation projects; economic and political risks and natural disasters; the debt crisis in Europe; financial risks; failure to meet highproduct safety and ethical standards; and managing regulatory, tax and legal matters. Further details of potential risks and uncertaintiesaffecting the Group are described in the Group’s filings with the London Stock Exchange, NYSE Euronext in Amsterdam and the USSecurities and Exchange Commission, including the Group’s Annual Report on Form 20-F for the year ended 31 December 2012 andAnnual Report and Accounts 2012. These forward-looking statements speak only as of the date of this announcement. Except as requiredby any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates orrevisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or anychange in events, conditions or circumstances on which any such statement is based.39
WE ARE A SUCCESSFUL, GROWING, SUSTAINABLE BUSINESS : 1 We work to create a better future every day, With brands and services that help people feel good, look good, and get more out of life. We will lead for responsible growth, inspiring people to take small everyday ac tions that will add up to
