Introduction to Unilever 2009_Mar09 FINAL - PDF

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					 Introduction to Unilever
       March 2009




                                                  0




Contents

 •   Overview of Unilever                Slide
 •   Mission                             3-4
 •   Geographic reach                    5
 •   Categories and brands               6-7
 •   Strategic priorities                8
 •   Management & organisation           9-11
 •   Social responsibility               12
 •   Customer partnerships               13-14
 • Innovation driving growth             15-19
 • Local roots and global scale          20-26
 • Financial summary
 • Unilever financial performance        27
 • Commitment to shareholder value       28
 • Legal structure, governance and shares 29-35
 • Contact information                   36




                                                      1
Safe harbour statement


       This presentation may contain forward-looking statements, including
 ‘forward-looking statements’ within the meaning of the United States Private
   Securities Litigation Reform Act of 1995. 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. 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 presentation.




Our mission


        Unilever’s mission is to add
              Vitality to life.

    We meet everyday needs of nutrition,
         hygiene and personal care with
           brands that help people feel
         good, look good and get more
                    out of life




                                                                                   2
Adding Vitality to life


     160 million times a day, in 150 countries, people use
          our products at key moments of their day




Scale and geographic reach

“Our deep roots in local cultures and markets around the world give us our strong relationship
with consumers and are the foundation for future growth. We will bring our wealth of knowledge
and international expertise to the service of local consumers - a truly multi-local multinational” -
                             extract from Unilever’s Corporate purpose

                              Western Europe | €13bn | 32%

                                                                  AACEE | €14.5bn | 36%
 The Americas | €13bn | 32%




                            2008 Turnover €40.5billion
         Present in 150 countries around the world; 174,000 employees*

                                                                                            *as at end 2008




                                                                                                              3
Strong category positions

Leading Category Positions
       World Number 1             Unilever’s Portfolio of Categories
          Savoury
         Dressings                                     Savoury, Dressings &
                                  Home Care
                                                             Spreads
         Ice Cream
        Deodorants
                                                 18%
          Spreads                                             35%
             Tea                         28%
                                                       19%
         Mass Skin
       World Number 2
          Laundry
       Daily Hair Care
                                                             Ice Cream &
        Local strength           Personal Care                Beverages
     Household Cleaning
          Oral Care

                                                                       *as at end 2008




Business Overview
Big global brands

                   Top 25 brands = ¾ of Unilever’s sales




                                                                       *as at end 2008




                                                                                         4
Unilever’s strategic priorities




    Personal Care                        Developing &                                     Vitality
                                       Emerging Markets




A global management team




                                                 Paul Polman                                  Michael Treschow
                                          Chief Executive Officer                        Non-Executive Chairman




Michael Polk     Doug Baillie   Harish Manwani       Vindi Banga     Geneviève Berger   Sandy Ogg     James Lawrence

President        President         President           President       Chief R&D         Chief HR     Chief Finance
Americas       Western Europe    Asia Africa &       Foods, Home         Officer          Officer         Officer
                                  CE Europe        & Personal Care




                                                                                                                       5
Regions and Categories
Clear, distinct, complementary roles

           Categories                              Regions
    Deliver global platforms               Execute on the ground
        Responsible for:                       Responsible for:
       Brand development                    Managing the business
            Innovation                 Deploying brands and innovations
    Research and Development                Customer management
         Accountable for:                      Accountable for:
   Medium/long term market share                     Growth
           Brand health                               Profit
        Innovation metrics                         Cash flows
      Category value creation               Short term market shares




Our people


                People are the heart of our business
     Harnessing, developing and rewarding their skills, energy and
                      commitment is our priority

 Unilever is one of the world’s most culturally diverse companies, with
                     top leadership from 20 nations.


                        More than 35% of
                      managers worldwide are
                            women.




                                                                          6
Corporate responsibility

  To succeed also requires, we believe, the highest standards of corporate
 behaviour towards everyone we work with, the communities we touch, and
                the environment on which we have an impact


                      • Eco-efficiency – reducing the impacts of our operations
                      • Eco-innovation – reducing the impacts of our products
                      • Sustainability programmes in agriculture and water
                      • Our Code of Business Principles
                      • Supporting local communities

                           Unilever has led the food industry category of the Dow
                           Jones Sustainability Indexes (DJSI) for the past 10 years.




Customer partnerships

     Unilever manages a number of partnerships globally




                                                                                        7
Customer partnerships

    Unilever has unparalleled reach across the store, bringing
   unique ‘shopper insight’ to our partnership with customers




Innovation Driving Growth
Vitality
        Making foods healthier           Stronger functional claims

       Bouillon jelly
   proprietary technology              A unique slimming
                                  tea twice as rich in catechins
                                     to help maintain your
                                           silhouette



         Driving sustainability                     Nutrition

                                     Family Goodness
   Detergent concentration             brings better
     technology for less            nutrition for family
    water, less transport,                growth
       higher margins                 For better taste
                                     and with less fat




                                                                      8
Innovation Driving Growth
Superior Technology
          Magnum Temptation                       Vaseline Clinical Strength

 An unrivalled multi-sensorial experience
      using cold roller technology
                                            Clinically proven to provide
                                               prescription strength
                                                   moisturisation



             Hellmann’s Light               Comfort Fresh Technology Release

     Delicious light
 mayonnaise with only                       Comfort with breakthrough
         3% fat                                      technology
  With unique citrus                        Do the moves to release the
   fibre technology                                   freshness




Innovation Driving Growth
Rapid roll-out
              Dove Go Fresh                         Axe Dark Temptation



  55 countries                               52 countries



        New Lipton Pyramid Tea                  Hellmann’s with citrus fibre



 30 countries                                  40 countries




                                                                               9
Products available at various price-points
Example – Ice Cream


           Premium




           Mid tier




            Family
            Value




Innovation Driving Growth
Science and Technology Strengths
Some examples:




    Spray Technology       Skin Mildness       Product Processing
       Deodorants         and Moisturizing       e.g. Ice Cream




         Hair                  Structured
                                                 Science of Tea
      Technology          Oils and Emulsions




                                                                    10
Local roots with global scale


Our heritage and local expertise         Leveraging our scale brings us
 mean that D&E is in our DNA           advantages over local competition


• Understanding of the local
                                         • Global portfolio of brands and
  consumer
                                           categories
• Brands and products across a
                                         • Dedicated R&D investment
  wide range of income levels
                                         • Shared values and standards of
• Critical mass on the ground
                                           behaviour
• Corporate reputation with local
  stakeholders and talent pool


 Local roots                                                 Global scale




The D&E opportunity



• 1bn new consumers in next 10 years based on
population and income growth

• Consumer spending is growing faster in D&E than in
the developed world

• Rising per capita income gives disproportionate
growth in per capita consumption for Unilever
categories




                                                                            11
   The D&E opportunity

                                      D&E Population in 2008
                                            (billions)


         Affluent                               0.5



         Aspiring                               2.6



         Striving
                                                2.6




  The opportunity in our categories

  Annual per capita consumption (€)
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                    Detergents                                                  Shampoo

                                                                     Source: Absolute value. Euromonitor 2007




                                                                                                                12
Growth Strategy: Priorities
D&E Markets
              New consumers                      Consumer penetration


  1 billion new
  consumers in
   the next 10
      years                              Re-closable   Deo ministicks     Mini cubes
                                         multi-use
                                         sachets

         Trading consumers up                     Conversion in foods




 Loose Leaf         Standard   Pyramid
 Tea                 teabags                    Packaged food opportunity
                               teabags




A major driver of Unilever’s growth

    D&E underlying sales growth c. 9% p.a. since early 1990s

      % 2004 Sales                                     % 2008 Sales
      Other developed                                   Other developed
            3%                                                3%


                                                         North
                                                        North
     North                                              America
    America             D&E                            America
                                                          18%
                                                        21%               D&E
     23%                36%                                               D&E
                                                                          44%
                                                                          47%
                                                         Western
                                                         Western
          Western                                        Europe
          Europe                                          32%
           38%




                                                                                       13
D&E Growth is Profitable

 2008 Operating margin before RDIs*
                                                                           Unilever
                                                                           average




                                                             * Restructuring, disposals and one-off items




Unilever Financial Performance

Total Unilever                                2004    2005 2006 2007                        2008

Turnover €bn                                  37.2    38.4        39.6         40.2          40.5

Operating Profit €bn                          4.0      5.1         5.4          5.2           7.2
Operating Profit before RDIs** €bn                                              5.8           5.9

Net Profit* €bn                               2.7      3.3         3.7          4.1           5.3
Net Profit before RDIs**   €bn                                                  4.2           4.3

Earnings per share* €                         0.87    1.07        1.19         1.32          1.79
Earnings per share before RDIs** €                                             1.39          1.43

Net Cash Flow from operating activities €bn   5.5      4.4         4.5          3.9           3.9

                                                 * Continuing operations
                                                ** Restructuring, disposals and one-off items




                                                                                                            14
Commitment to shareholder value

   “… our road to sustainable, profitable growth, creating long term value for our shareholders, our
            people, and our business partners” extract from Unilever’s Corporate purpose

     Unilever measures its Total Shareholder Return, over a 3 year rolling period, amongst a peer
                                    group of 20 other companies.

         Peer group in 2008                          Unilever’s TSR position relative to the peer
                                                          group over a rolling 3 year period
      Avon               Kimberley Clark
    Beiersdorf                 Lion              1998       2000    2002      2004    2006     2008
Cadbury Schweppes            L’Oréal
                                                 0
      Clorox                  Nestlé
    Coca-Cola                 Orkla
     Colgate                 Pepsico             7
     Danone             Procter & Gamble
      Heinz             Reckitt Benckiser       14
       Kao                  Sara Lee
       Kraft                Shiseido
                                                21




Legal structure, governance and shares
    Unilever was formed in 1930 from two companies:




                         Margarine Unie                      Lever Brothers
                         (Netherlands)                            (UK)

    It was a full business merger, operating as a single business entity
    Two separate legal parent companies were maintained:
            - Unilever NV (Netherlands) and Unilever PLC (UK).
    This works through an equalisation agreement and other contracts between
    the two companies




                                                                                                       15
Legal structure

 Unilever NV and PLC have separate legal identities but operate as a single entity


                   NV share                            PLC share
                    holders                             holders


                                      Directors


                      NV             Equalisation           PLC


                           ‘One Unilever’ Operating Units




Legal structure

  Unilever firmly believes in maintaining high standards of Corporate
                               Governance


These have evolved in response to developments in Europe (UK Combined Code, Dutch
Corporate Governance Code) and the US (Sarbanes Oxley, NYSE listing rules)
Unilever operates a unified board: the boards of NV and PLC comprise the same
directors
There is a majority of independent, non-executive directors on the board. The
Chairman is non-executive
The boards have ultimate responsibility for the business as a whole
Details of current arrangements can be found in the report and accounts in the investor
centre at www.unilever.com




                                                                                          16
Share listings

Unilever NV ordinary shares or certificates (depositary receipts) are listed on the stock
exchanges in Amsterdam and as New York 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.
There are 1 310 156 361 PLC ordinary shares in issue, each with a nominal value of 3
1/9 pence.
The equalisation agreement between NV and PLC is such that each NV ordinary share
has the same rights and benefits as each PLC ordinary share.
The combined share count excluding treasury stock, for calculating basic EPS, was
2,789 million at the end of 2008.
       Further information can be found in the investor centre at www.unilever.com




Share listings


     Exchange            Amsterdam             London                                New York

                           Unilever            Unilever            Unilever                              Unilever
        Share
                             NV                 PLC                NV NY                                 PLC NY

       Ticker                UNA                ULVR                   UN                                      UL

   Dividend per
                            €0.77               £0.61                $0.99                                 $0.91
   share – 2008*


For details of proposed changes to dividend schedule –
please see www.unilever.com/investorrelations/shareholder_info/dividends




                                                                    Notes:
                                                                             *Relates to interim and final dividends per ordinary share
                                                                                         Final 2008 dividends subject to AGM approval
                                                                                  US dividends based on exchange rate on 4 Feb 2009




                                                                                                                                          17
Share listings and ownership


  Share listings as a percentage of             Share ownership* by country at the
                capital                                   end of 2008

              NV NY
PLC ADR        10%                                Other                           UK
  5%                                              33%                            32%




                                   NV
    PLC                                          Netherlands
                                  47%                                     USA
    38%                                             12%
                                                                          23%




Taxation on dividends for US residents

     This information is intended to provide general guidance only. Actual tax
   treatments will depend on specific circumstances. US residents should consult
                               their local tax advisers.
      The information shown is generally applicable to a typical US resident.


      Share           Local withholding tax      US tax        Effective tax on dividends
    Unilever NV       15% eligible for credit
                                                Max 15%                Max 15%
   (Netherlands)      Against US income tax
   Unilever PLC
                              None              Max 15%                Max 15%
       (UK)


     Further information can be found in the Unilever Annual Report & Accounts,
                 available on the investor centre at www.unilever.com




                                                                                            18
Further information and contact details

   More information on Unilever is available at www.unilever.com

  The shareholder centre at www.unilever.com gives information
  on how to purchase Unilever stock.

                                The IR team can be contacted by
                                telephone as follows:

                                + 44 (0) 20 7822 6830

                                Or by e-mail at:
                                investor.relations@unilever.com




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