Evolution Conference James Allison Head of Investor Relations and M&A Javier Tena Investor Relations Director

Transcription

1 Evolution Conference James Allison Head of Investor Relations and M&A Javier Tena Investor Relations Director Edinburgh, Wednesday 9 th March 2011 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 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 uncertaintiesaffecting affecting the Group are describedinin the Group s filings with the London Stock Exchange, EuronextAmsterdam andthe US Securities and Exchange Commission, including the Group s Annual Report on Form 20 F for the year ended 31 December These forwardlooking 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.

2 Unilever Objectives 1. To drive volume growth ahead of the markets 2. Steady and sustainable underlying operating margin improvement 3. Strong cash flow Doing what we said we would do Volume Growth Underlying Operating Margin Free Cash Flow accelerated increased delivered bn 0.1% 2.3% 5.8% 01% 0.1% 0.2% 0.2% FY08 FY09 FY10 FY08 FY09 FY10 FY 08 FY 09 FY 10 Free Cash flow: net cash flow from operating activities net interest - net capex

3 Agenda highlights and 2011 challenges 2 Unilever in D&E 3 A new Unilever emerging 2010: Broad Based Volume Growth emerging markets developed markets 11% 11% 10% 9% 8% 10% 3% 5% 4% 1% 3% 1% 4% 1% 1% 3% 1% 2% -1% -3% Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q all of our categories grew volume in 2010

4 Bigger, Better Innovation rolled out Faster Rexona Deo Dove Men + Care Magnum Gold?! 30+ markets 30+ markets 29 markets 100+ White Spaces completed in 2010 Key Countries 100% white space 50% brand presence 0%

5 We continue to Invest for Growth A&P bn (*) + 330m during m during 2009 Advertising quality has improved (*) Constant currency Underlying Margin Increased by 20bps 10bps -30bps -30bps 40bps 40bps 14.8% +20bps 15.0% 2009 GM % A&P % Indirects % 2010

6 Strong Free Cash Flow bn Oper' profit b/ depn' amort WC Change Capex Tax Others FCF 2009 Oper' profit b/ depn' amort WC Change Capex Tax Others FCF bn of Free Cash Flow over two years 2010: Double Digit Diluted Earnings per Share Growth 7% 5% 4% 3% 5% % One off Items 2010: M&A one-off items % Fully Diluted EPS Growth 25% Other one-off items Disposals 0.16 EPS 2009 Operational Performance Restructuring Currency Pension / Fin Costs Disposals Tax / Others One-off Items EPS 2010

7 Fully Diluted Adjusted Earnings per Share EPS EPS One off Items 2010: One off Items 2009: M&A one-off items M&A one-off items Other one-off items Other one-off items Disposals (Italy Frozen) 0.16 Disposals (Johnson Diversey) 0.12 EPS 2010 (adjusted) 1.36 EPS 2009 (adjusted) : Challenging Year in a Tough Environment UnileverCommodity Index % Commodities remain volatile Currently we expect commodity cost increases of around 400bps of turnover vs. last year Offset by strong savings programmes and pricing i /04 01/05 01/06 01/07 01/08 01/09 01/10 01/11

8 2 Unilever in D&E Unilever: The Emerging Market Company 100% 80% developed 60% 53% 40% 20% emerging 0% Consistent track record 9% CAGR over the last 20 years

9 Most 100M+ Population Countries will be in Emerging Markets (13 out of 15 by 2020) Russia US Mexico Egypt Pakistan China India Vietnam Nigeria Ethiopia Bangladesh Indonesia Japan Philippines Brazil Source: Unilever Estimates from Globegro More Consumers, More Benefits, More Trading Up billions of people Have lots More benefits Haves More usage Have nots More users Source: Unilever estimates Globegro, updated upon LSM 2.0 baseline studies.

10 Market Leadership in Emerging Markets Fabric Cleaning Hair Care Face Care Skin Cleansing Deos Tea Savoury Ice Cream Number 1 Number 2 Brazil Russia India China Indonesia Thailand Philipp s Vietnam Ban desh Argentina Huge Potential bath and shower US$ spend per capita 20 Developed markets Emerging markets Vietnam Indonesia China India Turkey Mexico Argentina Australasia Brazil USA United Kingdom Source: Euromonitor

11 Impact of Competition in Emerging Markets Face Indonesia $US m 600 $350 m Share Market Size Unilever Key Competitor Source: Euromonitor 3 A new Unilever emerging

12 Strategy Clear and Aligned 80bn 44bn 40bn environmental impact Faster and More Competitive: Bias for Action Competitive consumer value proposition 30 day plans embedded in the business Innovations now reaching 30+ markets during year 1 Fast reaction to competitive attack Pepsodent Philippines 6 weeks from sign off to on-shelf availability

13 A new Unilever Emerging Unilever now Fit to Compete Delivering what we said we would do Leveraging our scale Virtuous circle starting to work Questions