north america: c4g building a stronger, faster growing ... · a stronger, faster growing, more...
TRANSCRIPT
![Page 1: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/1.jpg)
North America: C4G Building a Stronger,
Faster Growing, More Agile Business
Kees Kruythoff
1
![Page 2: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/2.jpg)
The US leadership Team
Kees KruythoffPresident North America
Esi Eggleston BraceyEVP & COO Personal Care NA
Alfie VivianVP Refreshments NA
Matthew McCarthyVP Foods NA
Kathy O’BrienVP Consumer Services & Skin Care
Ivar BlankenCFO North America
Reginaldo Ecclissato EVP Supply Chain NA & LA
Wendy HerrickVP Supply Chain GTM US
Mike ClementiCHRO North America
Jonathan AtwoodVP Comms & Sustainability NA
Steve RappGeneral Counsel NA
Gina BoswellEVP Customer Development
2
![Page 3: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/3.jpg)
$9B in Turnover USA
North America Business Overview
One cluster, 2 countries
90% US, 10% CA
#1 UL Country
14%
20% of Global Personal Care and Refreshments
5 global brands “made in the USA”
15% 19%
% of Global
Contribution
Turnover Profit Cash
3
![Page 4: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/4.jpg)
US Category Shape
Personal Care
TO: $5bn
Refreshments
TO: $2bn
Foods
TO: $1bn
Home Care
TO: <$0.3bn
4
![Page 5: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/5.jpg)
Unilever USA a true Unilever stronghold…
5
… and future-proofing the portfolio and its capabilities
![Page 6: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/6.jpg)
Objectives
WINNING in America is strategically
important, especially in a leading edge and fast-changing market
6
![Page 7: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/7.jpg)
U.S. Market Context
Growth Rate Polarities in Society
Digital Revolution Living Differently
2-3% GDP growth Political and income polarization within the US is rising
Technology is changing the consumer engagement and expectations
US identity changing with the power of millennials and multicultural population
7
![Page 8: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/8.jpg)
Hyper-fragmentation in the Marketplace
Fragmentation of Consumer Decision Journey
Channel Fragmentation Media Fragmentation
Communication channels changing
Retail revolution in full swingRadically changing path to purchase
8
17% of our categories already
in emerging channels
![Page 9: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/9.jpg)
… resulting in different Winners and bigger Swings
9
Challenger brands outpacing established
brands
Alternative channelsare driving
disproportionate growth
Greater consumer expectations and evolving trends
Broader PC Competitors
and 3G in Food
3G in Food
![Page 10: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/10.jpg)
The Unilever U.S. Strategy Journey
Pre-2011
Profit & Cash
2012-2015
Investing Back
2016-2020
Unlocking Full Potential
through C4G
10
![Page 11: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/11.jpg)
Good progress with key Stakeholders
Pre-Invest Back Today
Consumers Market Leader in 4 of 15Categories
Market Leader in 8 of 10 Categories
Customer Service
Dispatch rate <92%Dispatch rate 98%
#1 Gartner
Customers#27
Advantage Report
#4
Advantage Report
Employer of Choice
#147
Universum
Top 10#75
Universum
11
Sustainable Living
#12
GlobeScan
#1
GlobeScan
![Page 12: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/12.jpg)
Gross Margin
>20%
2013 2017 FC
Consistent improvement in Cost, Cash, and Profit
Supply Chain Controlled Cost
2013 2014 2015 2016 2017 FC
UOM
Cash Conversion Cycle
10 days-12 days
2013 2017 FC
12
2013 2014 2015 2016 2017 FC
-440bps+420bps
+460bps
![Page 13: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/13.jpg)
Market Share trend – 2010 / 2016 / YTD 2017
Hair Deodorants Skin Cleansing
Ice Cream Mayonnaise
15.7%
27.5% 27.8% 39.4%
43.2%45.9%
34.1%35.7% 35.8%
21.9%
25.2%24.5%
43.1%
45.7%46.6%
13
+30bps+1220bps
-70bps+330bps +90bps+260bps
+270bps+380bps +10bps+160bps
![Page 14: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/14.jpg)
Strong Market Leadership positions in USA
14
Personal Care
Hair
Deo
Skin Cleansing
Skin Care
Food & Refreshment
Mayonnaise
Savoury
Tea
Ice Cream
#1 R.M.S
1.1
1.3
3.3
1.5
1.4
2.0
1.2
Brand 1 Brand 2
![Page 15: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/15.jpg)
However, still need to Accelerate Growth
Note: UL USA Core represents USA excl. BCS & Professional
0.8%
1.0%
1.6%
<1%
2013 2014 2015 2016 2017 FC
15
+0.9%-2.4%
-1.3%
+0.1% +0.1%N.A total
UL USA CoreUSG %
![Page 16: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/16.jpg)
Key Successes
E-commerce growthInnovation 2017Deo GrowthDove Masterbrand
45%
Omni-channel
D2C
$170m Incremental
turnover
6%9%
16Note: numbers represent underlying sales growth YTD 2017
![Page 17: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/17.jpg)
Key Challenges
Grocery ChannelIce Cream CategorySkin Care CategoryLeaf Tea Category
-$50M
17
1. Core renovation
2. PC Conversion
3. Net Revenue Management
![Page 18: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/18.jpg)
Missing two “1 percents”
18
The first 1%Outperform markets by 1%
The second 1%M&A and Channels make 1%
-0.6%
0.8%1.0%
1.6%
<1%
2013 2014 2015 2016 2017 FC
M&A: Portfolio going forward
UL USA Core
+
+
![Page 19: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/19.jpg)
Joining UnileverBeyond Core through C4GCore of the Core
The Model: ‘Core, then more…plus M&A’
19
![Page 20: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/20.jpg)
Bigger & Better Innovations
RefreshmentsPersonal Care Foods
20
![Page 21: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/21.jpg)
Win in Core Channels and Build Channels for future Growth
Health & BeautyCore Channels
2-3% Growth with top 2 customers
23.0%
24.6%25.8%
2013 2015 2017 YTD
Close fair share gap
21
![Page 22: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/22.jpg)
C4G will help us Pivot to New Growth Channels
Naturals Channel
$5m
2013 2017 2020
$5M $55M $200M
E-commerce to E1bn+
33.3% 10.8% 43.4%
UL PW #1 UL Hair #1 UL Deo #1
Winning with
$5m$10m $500m $1bn+
2013 2017 2020
22
![Page 23: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/23.jpg)
Net Revenue Management Fragmented Channel Capability
Digitize Unilever Consumer Centric Data for Growth
Step up Capabilities
23
![Page 24: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/24.jpg)
ZBB Delivering $170m Efficiencies in 2017
BMI OverheadsLogistics
24
![Page 25: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/25.jpg)
Like for like growth
10%
The “second 1%” …… shaping our Portfolio
Acquired turnover
€1bn
New channels
Naturals
Premium price brands in mass
U.S. acquisitions since 2015
25
![Page 26: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/26.jpg)
In Summary
We invested back for Growth in America and have built a stronger
business
We are embracing a faster pace of change and C4G helps unlock our
full potential:
• Categories
• Channels
• Capabilities
5S, zero based budgeting and net revenue management unlock value
Unilever US is BUILDING a stronger, faster growing, more agile business
26
![Page 27: North America: C4G Building a Stronger, Faster Growing ... · a stronger, faster growing, more agile business 26. North America: C4G Building a Stronger, Faster Growing, ... Kees](https://reader031.vdocuments.us/reader031/viewer/2022020214/5ad831287f8b9af9068d2da3/html5/thumbnails/27.jpg)
North America: C4G Building a Stronger,
Faster Growing, More Agile Business
Kees Kruythoff
27