NAVIGATING THE NEW WORLD ANNUAL INVESTOR MEET 2014 HARISH MANWANI 1
AGENDA Unilever Journey • Stepping up Performance • Winning in Developing & Emerging Markets • 2
Over the last 5 years - A very different company Growing the top line Growing the bottom line An employer of choice 2013 core operating margin €50 bn 40 + €40 bn bps 1. Google 2. Apple 3. Unilever 2009 2013 3
Strong Foundations - clear vision and strategy Energising vision Clear strategy USLP embedded Sustainable Living 4
Strong Foundations - putting the pillars in place Increased investment Reshaped portfolio Organisation & culture Personal Home Care Refreshment Foods A&P Care €bn brands: >55% +€2bn Personal Care: North America North Asia Europe NAMET & RUB 36% Emerging Mkts: South Asia Africa Latin South America East Asia & 57% Australa 2008 2013 sia Underpinned by stepped-up in-market execution 5
Winning in the marketplace More Stores Perfect Stores Better Served Doubled coverage in 5 years From zero in 2009 to 7m in 2013 Improved service No. of stores OSA (%) > 8 m % 2008 2013 2009 2010 2011 2012 2013 Up by 900 bps 6
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
AGENDA Unilever Journey • Stepping up Performance • Winning in Developing & Emerging Markets • 8
Stepping up Performance 1 Innovation 2 New Growth Opportunities 3 Simplification & Agility More Fuel for Growth 4 9
Stepping up: Innovation Bigger, Better, Faster Using new technologies Leveraging Digital Innovations ‘Active Naturol shield’ in Lifebuoy 10
Stepping up: New growth opportunities Geographic opportunities Fast growing channels Premiumisation MAILLE IOMA 11
Stepping up: Simplification, agility, and speed Simplification: Project Half Marketing Fit to Win Realising the benefits of scale Tailored category approach Innovation process Faster launch Order to cash Fewer FTE Reduce SKU reduction complexity Streamline to 6 core processes 12
Stepping up: Fuel for growth Simplification: Project Half €500m Marketing Fit to Win savings Enterprise Technology & Solutions 13
Stepping up: Portfolio simplification 2013 Future Future 2013 Disposals Acquisitions Further disposals of non-core brands Targeted acquisitions: • bolt-on aligned with strategy • • emerging markets 14
AGENDA Unilever Performance • Taking Performance to the Next Level • Winning in Developing & Emerging Markets • 15
Is the developing & emerging market opportunity intact ? 16
Changing centre of gravity Source: www.bakasc.om
Unparalleled market position 1 1 2 1 2 1 1 1 2 Fabric Cleaning 1 2 1 2 1 1 1 1 2 1 1 Hair Care 1 1 1 2 1 1 1 1 1 Skin Cleansing 2 1 1 2 1 1 1 Face Care 1 1 1 1 1 2 1 1 2 1 Deos 2 2 2 2 2 1 Tea 2 2 2 1 1 1 1 1 1 Savoury Ice Cream 1 1 2 1 1 1 1 1 1 China Argentina Pakistan Brazil Russia India Indonesia Thailand Philippines South Africa Turkey Average 9% underlying sales growth over the last 20+ years 18 Source: Nielsen / IR estimates
D&E markets: more consumers of our products 1.3 billion new consumers Rapid urbanisation Urban population % total* Population (bn) China India 3.0 Haves lots 2.2 34% 60% 2020 2.2 2.7 Haves 32% 2013 2.6 53% 1.9 Have nots 2013 2020 19 *Source: Oxford Economics
D&E markets: more consumption Ice cream Body Lotion € per capita consumption € per capita consumption 15X 13X Russia Indonesia Thailand India Source: Euromonitor
D&E: More penetration opportunity 100% % of total emerging market countries 90% White space 80% 70% 60% 50% 40% 30% 20% Present 10% 0% 21
Africa, an underexploited opportunity: e.g. Ethiopia Vietnam Ethiopia 92 million 92 million Population > USD 1000 > USD 1000 GDP Zero Zero Sales 20 yrs ago > €0.5bn ~ Zero Sales now Source: UN /US Census Bureau
Many Indias : Rural is a large opportunity 830 million 380 million Population ~ 850 USD ~ USD 2500 GDP per capita € 4 HUL categories Per € 15 Capita Consumption Source: Ac Nielsen
Many Indias : Central India presents a large opportunity 40% Population ; 49 cities 1.75 times GDP growth Rest of Central India India Population Rajasthan 740 470 Uttar Pradesh (Mln) Bihar Population 60% 40% Share Madhya Pradesh GDP per 2750 1600 capita € PPP 22% 78% GDP Share
Continuing to capitalise on our strengths Straddle the pyramid Deepen distribution reach Global leverage and local relevance China: Reaching more cities & modern trade Chicken cubes in outlets Nigeria Vitamin A fortified Indonesia: bouillon in Vietnam Adding 50 more distribution centres India: Chicken jelly bouillon Adding 17,000 in China Shakti entrepreneurs
The emerging market opportunity is intact
NAVIGATING IN THE NEW WORLD ANNUAL INVESTOR MEET 2014 HARISH MANWANI 27
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