Unilever - UBS ConferenceJames Allison, Head of IR & M&A
Edinburgh, Scotland 6th March 2012
Agenda
1 2011 financial results
2
3
Unilever in Africa: the opportunity
M&A as a growth driver
Unilever objectives
1. Volume growth ahead of the market
2. Steady and sustainable core operating margin improvement
3. Strong cash flow
2011: Strong performance in a challenging environment
6.5%
Strong growth Growth acceleration in emerging markets
2.0% 2.2%
USG
Value shares improving
USG
11.5%2.0% 2.2%
bps change
20
3.5%4.1%
2009 2010 2011
2.0% 2.2%8.1% 7.9%
2009 2010 2011
2.0% 2.2%
10
20
FY 2011 L12 w
2011: Broad based category growth
Underlying sales growth
� Personal care: double-digit sales growth in H2
Home care: good balance between volume and
8.2% 8.1%
� Home care: good balance between volume and
price and value share gains
� Refreshment: driven by Ice Cream innovation (e.g.
Magnum launch in the US)
� Foods growth driven by price (spreads)
4.9% 4.9%
PC HC Refreshment Foods
2011: Accelerated growth in emerging markets
10%11%
13%12%
12%
Emerging markets underlying sales growth
� Outstanding performance in 2011
7%8% 8%
8%
10%
8%
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 . FY10 FY11
� Outstanding performance in 2011
� 54% of turnover
� Mid-single digit volume growth consistent
with the last 20 years
2011: Underlying operating margin down 10bps
-180bps +100bps
+70bps
15.0% 14.9%
2010 Gross Margin A&P Overheads 2011
+70bps
Overheads are all costs below gross profit but excluding A&P
2011: Core earnings per share growth
€0.11 €0.04
€0.02€1.41
€0.01
€0.01
EPS 2010 Operational Performance
Pension Currency Interest Others EPS 2011
€1.36Core EPS
growth4%
€1.41
Core operating margin / core earnings per share: Primary measures of business performance
� Includes business restructuring within operating profit
measure
� Driving the right business behaviours: managing totality of
costs
� 2012 business restructuring levels expected to be similar to
2011 (i.e. 130bps)
Innovation continuing to improve
Consistently high innovation rate Innovations in ten or more markets
9 40
70
2009 2010 2011
>30%
Bigger, Better, Faster Innovation
Rolled out to 50+ countries Now in 40 countriesDirt is Good Re-launch 48 markets
Faster rollouts
Bigger, Better, Faster Innovation
Magnum launch US/Indonesia TRESemmé - Brazil CIF now in 44 countries
Launching our brands into new markets
Bigger, Better, Faster Innovation
Knorr Sauce Pur Lipton TESS technology
Innovations supported by great technology
2 Unilever in Sub-Saharan Africa: the opportunity
Our history in Sub-Saharan Africa
� Started operations in South Africa in 1891 with Sunlight
� 1st South Africa factory opened in 1911
EGYPTLIBYAALGERIA
MOROCCO
NORTH
SUDAN
TUNISIA
NIGERMAURITANIA
WESTERN
SAHARA
MALI
CHADERITREA
DJIBOUTIBURKINA
SENEGAL
GUINEA
� Fast roll out across Africa
� Unilever operations in sub Saharan Africa:
• Turnover approaching €2.5bn
• 42 countries; 13 factories; 2600 employees
NIGERIA ETHIOPIA
SOMALIA
TANZANIA
UGANDA
KENYA
COMOROS
BURKINA
FASO
GHANA
COTE
D’IVOIRESR-LEONE
LIBERIA
TOGO
BENINGUINEA
CENTRAL
AFRICAN
REPUBLICCAMEROON
EQUATORIAL GUINEAGABON
CONGO
DEM. REPUBLIC
OF CONGO
BURUNDIRWANDA
ANGOLA
NAMIBIA
BOTSWANA
ZIMBABWE
ZAMBIA
MADAGASCAR
MOZAMBIQUE
MALAWI
SWAZILAND
LESOTHOSOUTH
AFRICAPart of NAMET RUB cluster
Africa cluster (Sub-Saharan Africa)
SOUTH
SUDAN
Sub-Saharan Africa: the market
� 800m population growing ~ 3% p.a.
� GDP growth 3 – 5%
� One of the fastest growing FMCG markets, ~$20bn
� Low consumption per capita
� Market development and white space opportunity is huge
Shape of the Unilever portfolio in Sub-Saharan Africa
2432
Turnover %
� Home care is our biggest category in a market
growing 7% CAGR over the last 5 years
377
Personal care Home care Refreshment Foods
growing 7% CAGR over the last 5 years
� Strong positions in foods: bouillons & soups
� Personal Care a key source of growth
Market Development opportunity is huge across our categories
16.7 16.8
22.5
Laundry detergents per capita consumption (US$)
0.3 0.3 0.5 0.5 0.6 0.7
3.3 3.6 3.7 4.0
Ghana Uganda DRC Côted'Ivoire
Ethiopia Zimbabwe Cameroon Nigeria AfricaME
Asia LA South Africa
WE
Market Development opportunity is huge across our categories
9.6
16.8Skin cleansing per capita consumption (US$)
0.1 0.1 0.2 0.2 0.3 0.4 0.6 0.91.7
2.5
8.29.6
DRC Ghana Cameroon Côted'Ivoire
Ethiopia Nigeria Uganda Zimbabwe AfricaME
Asia SouthAfrica
L.A WE
3 countries account for 90% of the market
Market ~$20bn growing at ~7% p.a. (CAGR)
$12bn
8% 6% 6% 11% 12% 6% 6% 10% 11% 11% 11% 8%5 yr CAGR
SouthAfrica
Nigeria Kenya Tanzania Uganda Côted'Ivoire
Ghana Zimbabwe
Mozambique
Zambia Malawi Niger
Bath Shower Deo Hair Men Grooming Oral Skin Home Care Tea Food
$4.3bn
$1.6bn
$0.4bn$0.0bn$0.1bn
Euromonitor
South Africa Nigeria Kenya
In each we have strong market shares
55.3 55.6
55.3 55.6 55.5 55.7
53 53.4 53.1 53.1
52.8 52.8
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 L12W
30.8 30.6 30.1 29.8 30.5 31.0
24.9 25.3 24.4 24.5
25.5 25.8
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 L12W
49.7 49.9 50.1 50.5 51.6 51.9
53.4 53.7 54.6 55.0 54.9 55.2
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 L12W
Value share
Volume share
Translates into strong leadership positions
Fab Clean Powders
South Africa Nigeria Kenya
1.1 2.17.1
Relative market share
Skin Cleansing
Oral
SCC
Savoury
Tea
Source: Nielsen
0.2
14.7
5.0
0.8
3.8
1.4
0.3
19.1
15.0
1.4
7.9
11.0
0.8
No 1 in 80% of Turnover
Ghana
We are well positioned to win in nascent markets e.g. Ghana
Fab Clean Bars
Fab Clean Powders
Skin Cleansing
13.4
2.1
Relative market share
62.5 62.8 62.8
64.3
66.1 66.1
60.9 61.0 61.4 62.0
64.0 63.8
Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 L12W
Value share
Volume share
Skin Cleansing
Oral
SCC
Savoury
Tea
7.9
29.3
4.9
0.1
3.1
Driven by white space opportunities …
100%
White space
Sub-Saharan Africa – top 12 countries
0%
50%
Present
… and market development
Implementation of ‘perfect stores’ programme ahead of targets
Sustainability: a source of competitive advantage
In South Africa:
� Aim to reach 1 million rural and urban women to
improve their understanding of basic hygieneimprove their understanding of basic hygiene
� Lifebuoy with UNICEF will provide educational material
and teaching aids for ~80% of primary schools
� Domestos will partner WTO in an outreach programme
engaging health workers to reduce diarrhoea
Helping to improve well and health being of our consumers whilst increasing brand awareness and sales
Sub-Saharan Africa: a business that is growing top and bottom line
2.3
Turnover €bn Underlying margin
300bps
2007 2008 2009 2010 2011
1.5
1.8
1.91.9
2007 2008 2009 2010 2011
bps
3 M&A as a growth driver
Alberto Culver: integrating a successful business
Our objectives
Continuing the successful growth and share gains of Alberto Culver1 Continuing the successful growth and share gains of Alberto Culver
Roll out brands into new markets
Deliver business case cost synergies
Key talent retention
1
2
3
4
Alberto Culver continuing with growth and share gains1
16 1617
19
Hair Care United States
� TRESemmé continues to perform strongly
� Dove Hair Damage repair gaining shares
Market value shares
1011
1112
2009 2010 2011 L12w (Q4 11)
Alberto Culver Unilever
� Dove Hair Damage repair gaining shares
� Launch of Dove Hair Tonic exceeding expectations
� Suave and Axe Hair performing well
� Market leaders L12 weeks (Q4 11)
Fast roll out to new markets 6 months after completion2
Simple – United States Motions – South AfricaTRESemmé – Brazil & Thailand
Alberto Culver integrated with speed and delivering synergies
Overhalf of our expected
Cost synergies 90% of markets integrated
3
halfcost synergies achieved in 2011
c.20% of retained turnover
Alberto Culver: key talent retention4
� 70% of leaders accepted new roles
� Key roles includes:
� Senior Vice President North America PC� Senior Vice President North America PC
� Vice President Global TRESemmé
� Chairman Philippines
� Vice President Finance Skin
Alberto Culver people at the heart of our business
A new Unilever
� Delivering consistent and reliable results
� A growth mindset now embedded in the business
� New organisation fully operational
� Strong momentum towards our vision of doubling the size of the business
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 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 Group’s Annual Report on Form 20-F for the year ended 31 December 2010.
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.
Unilever - UBS ConferenceJames Allison, Head of IR & M&A
Edinburgh, Scotland 6th March 2012
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