NAVIGATING THE NEW WORLD

Transcription

1 NAVIGATING THE NEW WORLD ANNUAL INVESTOR MEET 04 HARISH MANWANI

2 AGENDA Unilever Journey Stepping up Performance Winning in Developing & Emerging Markets

3 Over the last 5 years - A very different company Growing the top line Growing the bottom line An employer of choice 50 bn 03 core operating margin 40 bn + 40 bps Google. Apple 3. Unilever 3

4 Strong Foundations - clear vision and strategy Energising vision Clear strategy USLP embedded Sustainable Living 4

5 Strong Foundations - putting the pillars in place Increased investment Reshaped portfolio Organisation & culture A&P bn brands: >55% Personal Care Home Care Refreshment Foods + bn Personal Care: 36% North America Europe NAMET & RUB North Asia Emerging Mkts: 57% Latin America South East Asia & Australa sia South Asia Africa Underpinned by stepped-up in-market execution 5

6 Winning in the marketplace More Stores Doubled coverage in 5 years Perfect Stores From zero in 009 to 7m in 03 Better Served Improved service No. of stores OSA (%) > 8 m % Up by 900 bps 6

7 USLP is an integral part of the business Driving Growth Reducing waste & cost Managing Risk Brands with purpose 350m cost avoided in 5 years 48% of raw materials from sustainable sources 7

8 AGENDA Unilever Journey Stepping up Performance Winning in Developing & Emerging Markets 8

9 Stepping up Performance Innovation New Growth Opportunities 3 4 Simplification & Agility More Fuel for Growth 9

10 Stepping up: Innovation Bigger, Better, Faster Innovations Using new technologies Leveraging Digital Active Naturol shield in Lifebuoy 0

11 Stepping up: New growth opportunities Geographic opportunities Fast growing channels Premiumisation MAILLE IOMA

12 Stepping up: Simplification, agility, and speed Simplification: Project Half Marketing Fit to Win Realising the benefits of scale Innovation process Faster launch Tailored category approach Order to cash Fewer FTE SKU reduction Reduce complexity Streamline to 6 core processes

13 Stepping up: Fuel for growth Simplification: Project Half Marketing Fit to Win 500m savings Enterprise Technology & Solutions 3

14 Stepping up: Portfolio simplification 03 Future 03 Future Disposals Acquisitions Further disposals of non-core brands Targeted acquisitions: bolt-on aligned with strategy emerging markets 4

15 AGENDA Unilever Performance Taking Performance to the Next Level Winning in Developing & Emerging Markets 5

16 Is the developing & emerging market opportunity intact? 6

17 Changing centre of gravity Source:

18 Unparalleled market position Fabric Cleaning Hair Care Skin Cleansing Face Care Deos Tea Savoury Ice Cream Brazil Russia India China Indonesia Thailand Philippines South Africa Turkey Argentina Pakistan Average 9% underlying sales growth over the last 0+ years 8

19 D&E markets: more consumers of our products.3 billion new consumers Population (bn) Rapid urbanisation Urban population % total* India China. 3.0 Haves lots 34% 60% Haves.6.9 Have nots 3% 53%

20 D&E markets: more consumption Ice cream Body Lotion per capita consumption per capita consumption 5X 3X Russia Indonesia Thailand India

21 D&E: More penetration opportunity 00% 90% % of total emerging market countries 80% 70% 60% 50% 40% 30% 0% 0% 0% Present White space

22 Africa, an underexploited opportunity: e.g. Ethiopia Vietnam Ethiopia 9 million > USD 000 Zero > 0.5bn Population GDP Sales 0 yrs ago Sales now 9 million > USD 000 Zero ~ Zero

23 Many Indias : Rural is a large opportunity 830 million ~ 850 USD 4 Population GDP per capita HUL categories Per Capita Consumption 380 million ~ USD Source: Ac Nielsen

24 Many Indias : Central India presents a large opportunity 40% Population ; 49 cities.75 times GDP growth Rest of India Central India Rajasthan Madhya Pradesh Uttar Pradesh Bihar Population (Mln) GDP per capita PPP Population Share 60% 40% 600 GDP Share 78% %

25 Continuing to capitalise on our strengths Deepen distribution reach China: Reaching more cities & modern trade outlets Straddle the pyramid Global leverage and local relevance Chicken cubes in Nigeria India: Adding 7,000 Shakti entrepreneurs Indonesia: Adding 50 more distribution centres Vitamin A fortified bouillon in Vietnam Chicken jelly bouillon in China

26 The emerging market opportunity is intact

27 NAVIGATING IN THE NEW WORLD ANNUAL INVESTOR MEET 04 HARISH MANWANI 7