unilever q2 2010 results
Post on 14-Dec-2014
1.129 Views
Preview:
DESCRIPTION
TRANSCRIPT
Q2 2010 Results 5th August 2010
Paul Polman (CEO) – Jean-Marc Huët (CFO)
James Allison (Head of IR & M&A)
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.
Priorities for 2010
• Continue to drive profitable volume growth
• Steady and sustainable improvement in full year
underlying operating margin
• Strong cash flow
Building Momentum in Tough Markets
• Volume share up around 50 bps
• Winning in emerging markets where competitive
intensity is highest
• Developed markets remain tough
• Investing for the long term with A&P up
considerably
• A new stronger Unilever is emerging
Jean-Marc Huët Chief Financial Officer
Q2 10: Strong Top Line Growth
8.7%
-0.1%
5.7%-2.0%
USG 3.6%
€11.8bn
€10.5bn
H1 10: Underlying Sales Growth
5.6%
0.0%
6.6%-2.6%
USG 3.8%
€21.9bn
€20.0bn
Q2 10: Improved Pricing
2nd quarter of flat pricing at
group level
Q2 10: Improved Pricing
Price growth -2.6% YTD
Q2 10: Underlying Volume Growth
Underlying Volume Growth
6.6% YTD
Volume Growth is Broad Based
Categories11 / 11
MCOs18 / 22
Top Brands12 / 13
Q2 10: Volume Growth by Region
Western Europe
Americas
Asia/AMET/CEE
Emerging Markets
Q2 10: Strong Volume Sharesbps change
12-week volume share change vs. prior year
Turkey Home Care
Indonesia Personal Care
BrazilHome Care
Continued strengthening of our share positions
Winning Where Markets are Toughest
10% 13%42% 45% 52% 53%
Market Value Share Difference
China Savoury
China Home Care
China Personal Care
Market Value Share Difference
China: Narrowing the Gap to Market Leaders
20% 16%11% 4%
24% 22%
Q2 10: A&P Continued Investment
A&P change (bps)
We will lap high comparators
during Q3 and Q4 2010
Full year A&P will be up
H1 10: Strong Savings Continue
Local efficiency€0.1bn
Restructuring€0.2bn
Buying€0.4bn
• H1 Savings
€0.7bn
• Full year savings
ahead of €1bn
Q2 10: Continued Gross Margin Improvements
Gross Margin Improvement
180bps YTD
H1 10: Underlying Operating Margin
+30bps
H1 10: Earnings Per Share
€0.52
€0.70
Fully Diluted EPS Growth
36%
Third Consecutive Quarter of Negative Trading Working Capital
Q1 ‘09 Q2 ‘09 Q3 ‘09 Q4 ‘09 Q1 ‘10 Q2 ‘10
MAT Average WC % T/over
Closing WC % T/over
H1 10: Free Cash Flow
Free Cash Flow = Net Cash Flow from Operating Activities – Net Interest – Net Capex
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
Paul Polman Chief Executive Officer
Strategic Framework
The Compass
Winning with brands and innovation
Winning in the marketplace
Winning through continuous improvement
Winning with people
Winning with Brands and Innovation
Innovation Rate Ahead of 2009
33%
H1 2010
• Highest ever
innovation rate
• Led by Personal
Care
Winning with Brands and Innovation
Innovation Rate Ahead of 2009
Winning with Brands and Innovation
Innovating Category Wide: Hair
TIGI “Sleek Mystique”US
Sunsilk Relaunch Dove Damage Expert
Winning with Brands and Innovation
Innovation in Action - Nigeria
ORAL CARE HOME CARE
SAVOURY
SureIndia
LifebuoyBrazil / Bolivia / Peru / Australia
Winning with Brands and Innovation
Q2 10: Brands Into New Markets
Walls FruttareThailand / Malaysia / Singapore
Winning with Brands and Innovation
Q2 10: Brands Into New Markets
TIGIIndia / Brazil
Winning with Brands and Innovation
Q2 10: Brands Into New Markets
CIFVietnam
PepsodentPhilippines
Winning with Brands and Innovation
White Spaces: a Growth Opportunity
Key Countries
Reshaping the Portfolio
Sara Lee completion expected in Q4’10
– Brunch brand disposal completed– Du Darfst licensing under way
Disposal of Findus Italy announced
Disposal of Palm Oil Plantation in Ghana
Winning in the Marketplace
Customer Insight and Innovation CentreParis Now Open. Roll-out will Continue
On-Shelf Availability Continues to Improve
+290 bps
Sao Paolo – 2010
Paris – LIVE
Shanghai – 2010
Singapore – 2010
Englewood Cliffs - LIVE London Leatherhead - LIVE
Winning with People
Organisation and Culture
More
Stretch
More
Differentiation
• More agile organisation
• Key new roles in place
– Supply Chain Officer
– Customer Officer
– Marketing Officer
• Building capability
– Enterprise Support
• New reward system in place
Priorities for 2010
• Continue to drive profitable volume growth
• Steady and sustainable improvement in full year
underlying operating margin
• Strong cash flow
Questions
Q2 10: Underlying Operating Margin
+10bps
H1 10: Free Cash Flow
Free Cash Flow = Net Cash Flow from Operating Activities – Net Interest – Net Capex
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
top related