vindi banga president foods - unilever · 2020. 9. 12. · vindi banga president foods deutsche...
TRANSCRIPT
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Vindi BangaPresident Foods
Deutsche BankConference
11th June 2007
Safe harbour statementThis presentation 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' or the negative of these terms and other similar expressions of future performance or results, including financial objectives to 2010, 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, consumption levels, costs, the
ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned
divestitures, 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 Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this presentation
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Agenda
• Restoring Unilever’s growth momentum
• Our growth strategy for Foods
• Results – agenda going forward
Agenda
• Restoring Unilever’s growth momentum
• Our growth strategy for Foods
• Results – agenda going forward
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Our 12 €1bn+ brands
World Number 1
World Number 2
Local strength
Savoury & Dressings
Spreads
Meal replacement
Tea
Ice Cream
Laundry - #1 in D&E
Household Care
Daily Hair Care - #1 in D&E
Skin
Deodorants
Oral Care
Foods Home & Personal Care
Strong category and brand positions
Our position in 2004
0
1
2
3
4
5
6
2001 2002 2003 2004
US
G %
0
2
4
6
8
10
12
14
Ope
ratin
g m
argi
n (%
)
USG Operating margin
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2004 - A portfolio not driven to its full potential
Exposure to D&E
Brand and category positions
Growth potential
Leveraging of scale
Organisation to deliver
Clear prioritisation
Growth
A new business model
Disciplined execution
Cleargrowth strategy
Alignedorganisation
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Defining our growth priorities
• Businesses that are attractive
• Businesses where we are already advantaged
• Businesses that exploit our strength in D&E
Deodorants, Skin, Hair
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Savoury, Ice Cream, Tea
Vitality within Foods
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D&E: Foods, Home care
Russia and China
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Our growth priorities
Deodorants, Skin, Hair
Savoury, Ice Cream, Tea
Vitality within Foods
D&E: Foods, Home care
Russia and China
Disciplined execution, speed, effectiveness
Unilever ExecutiveCorporate strategyPortfolio priorities
Performance management
Regions
Go to marketCustomer management
Supply chain
Categories
Brand and category strategies
InnovationR&D
Functions
Functional excellenceBusiness support
Simplification
Aligned organisation
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0% 20% 40% 60% 80% 100%
Regional sharedservices
Back officeintegration
One sales force
Single head office
One top team
Completed Announced
One Unilever
Progress in top 20 countries
0%
1%
2%
3%
4%
5%
6%
Q1 2
005*
Q2 2
005
Q3 2
005
Q4 2
005*
Q1 2
006
Q2 2
006
Q3 2
006
Q4 2
006
Q1 2
007
Growth momentum
* Days adjusted
Unilever underlying sales growth
Annualised growth rate
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Agenda
• Restoring Unilever’s growth momentum
• Our growth strategy for Foods
• Results – agenda going forward
-1%
0%
1%
2%
3%
4%
5%
2003 2004 2005 2006 Q1 2007
Foods return to growthFoods underlying sales growth
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Sustained profitable growth
D&E markets
Local Regional Global
Grow the core
Embrace Vitality
New high growth platforms
Our growth strategy for FoodsH
EALT
HIE
R
FOO
DS Inherent
Goodness
Segment ExampleSegmentCAGR ’02–’06 (Market size ’06)
Source: Euromonitor, Unilever estimates
We will up-trade our portfolio with Vitality
Positive Choice
Functional Health
Market standard
+5% (€100bn)
+7% (€130bn)
+10% (€70bn)
Goodness of olive oil, soy
Lower salt, sugar, fatDouble churn
Heart Health –pro.activ
No health claim+3% (€990bn)
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Oils
Tea
Fruit and
vegetables
Soy
Milk
We will deliver the goodness of five key ingredients…
BeautyHeart Health
Immunity and
strengthWeight
managementBrain
… and deliver five key benefits
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Products must meet benchmarks on
– Saturated Fat
– Trans Fat
– Sodium
– Sugar
Global roll-out ’06-’08
Healthy choices made easier
Embrace Vitality
New high growth platforms
Grow the core D&E markets
Local Regional Global
Sustained profitable growth
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Rama Idea!
The first margarine with important nutrients that support mental developmentLow fat (39%) spreadRich source of selected brain nutrients (DHA, ALA, B-vitamins)One design for the worldLaunched in 14 countries in 5 months
Making light mayonnaise the flagship
Flagship positioning of Light Mayonnaise
Delicious light mayonnaise with only 5% fat
One shared technology platform (citrus fibre)
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Embrace Vitality
New high growth platforms
Grow the core D&E markets
Local Regional Global
Sustained profitable growth
Vitality in children’s Ice Cream
+ +
Goodness of Milk Ice Cream launched in Indonesia with great success
Actively rolled out globally
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Upgrading Tea experience in China
Novel, upgraded milk tea experience
Uptrading consumers to higher value proposition
Market leadership 3 months after launch
Regional roll-out
Embrace Vitality
New high growth platforms
Grow the core D&E markets
Local Regional Global
Sustained profitable growth
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Healthy heart shots that actively remove cholesterol
Crossing the Atlantic –US launch May 2007
Healthy Heart pro.activ
AdeS soy beverages opportunity
Great tasteNutritional balance
Goodness of soy
AdeS a sustained success in Latin AmericaAdeZ mix now tested in UK and Netherlands
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Advertising
Agenda
• Restoring Unilever’s growth momentum
• Our growth strategy for Foods
• Results – agenda going forward
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Key financials
€4.0bn
(90)bps
13.2%3.1%2005
40bps
13.7%5.7%
Q1 2007
€4.2bn
(30)bps
13.6%3.8%2006
Ungeared free cash flow
‘Underlying’ movement in operating margin*
Operating marginUnderlying sales growth
*Before restructuring, disposals and impairments and 2006 gains on US health care and UK pensions
and 2005 profit on office sale
Total Unilever
Long term targets:
FCF €25-30bn during 2005-2010
Improved ROIC
Through:
Underlying sales growth of 3-5% pa
Operating margin in excess of 15% by 2010 after normal restructuring
Improved capital and tax efficiency
Overarching ambition remains top one-third TSR
Our long term ambition
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Agenda going forward
• Growth our number one priority– Competitive– Profitable– Consistent
• Seeking further opportunities to accelerate the transformation