Underlying volume growth - Unilever
Underlying volume growth - Unilever
Underlying volume growth - Unilever
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<strong>Unilever</strong> Moving Forward<br />
Paul Polman<br />
Chief Executive Officer<br />
<strong>Unilever</strong> Investor Seminar<br />
Englewood Cliffs, NJ<br />
November 23-24, 2009
Our Objectives in 2009<br />
•Reignite <strong>volume</strong> <strong>growth</strong><br />
•Protect cash and margin for the full year
Volume Growth Ahead of GDP<br />
6%<br />
5%<br />
4%<br />
3%<br />
2%<br />
1%<br />
0%<br />
-1%<br />
-2%<br />
Volume <strong>growth</strong> in line with GDP Volume <strong>growth</strong> below GDP<br />
UVG<br />
GDP<br />
1980<br />
1981<br />
1982<br />
1983<br />
1984<br />
1985<br />
1986<br />
1987<br />
1988<br />
1989<br />
1990<br />
1991<br />
1992<br />
1993<br />
1994<br />
1995<br />
1996<br />
1997<br />
1998<br />
1999<br />
2000<br />
2001<br />
2002<br />
2003<br />
2004<br />
2005<br />
2006<br />
2007<br />
2008<br />
2009<br />
2010
TSR (10 yrs average)<br />
Volume Growth is a Key Driver of TSR<br />
15%<br />
12%<br />
9%<br />
6%<br />
3%<br />
0%<br />
<strong>Unilever</strong><br />
1% 2% 3% 4% 5% 6%<br />
<strong>Underlying</strong> <strong>volume</strong> <strong>growth</strong> (10 yrs CAGR)<br />
<strong>Unilever</strong><br />
Key peers
Virtuous Circle of Volume Growth<br />
Amplified<br />
by savings<br />
and value<br />
improvement<br />
Volume<br />
<strong>growth</strong> gives<br />
cost<br />
leverage<br />
Innovation<br />
creates new<br />
added value<br />
business<br />
Portfolio<br />
choices<br />
prioritise high<br />
margin<br />
attractive<br />
business<br />
Re-invest in<br />
compelling<br />
mixes<br />
Constantly<br />
improve<br />
consumer<br />
value<br />
equation
Top 9 for 2009<br />
Category and Country Strategy for the top countries<br />
€50m + ideas per category<br />
Own market development<br />
Win with sales fundamentals<br />
Step change customer service<br />
Win with winning customers<br />
Win with local consumers by unlocking the combined power of BB/BD<br />
Drive up cash, drive down costs<br />
Simplify Product/SKU range
Volume Improving<br />
<strong>Underlying</strong> <strong>volume</strong> <strong>growth</strong> %<br />
0.6<br />
-1.6<br />
-1.8<br />
Q3 08 Q4 08 Q1 09 Q2 09 Q3 09<br />
2.0<br />
3.6
Well Positioned for Growth<br />
Global company with 50% of sales in D&E markets<br />
Global market leadership in 7 of our 11 categories<br />
Our top 25 brands contribute 75% of group sales<br />
9 of our top 13 brands are achieving share gains
Leading Category Positions Locally<br />
% of our sales where we are number 1<br />
Dressings<br />
74%<br />
Laundry<br />
64%<br />
Deo<br />
81%<br />
Tea<br />
61%<br />
Skin<br />
Cleansing<br />
73%<br />
Ice Cream<br />
69%
Strengthened Portfolio via<br />
Acquisitions and Disposals<br />
Disposals<br />
JVs extended<br />
Acquisitions
Unrivalled Reputation for Corporate and<br />
Social Responsibility<br />
2007<br />
Supplier of the Year<br />
for Sustainable<br />
Engagement<br />
Included in the<br />
Carbon Disclosure<br />
Leadership Index<br />
for the fifth<br />
consecutive year,<br />
scoring 76%<br />
in 2009<br />
Included in the<br />
FTSE4Good Index<br />
Series since its<br />
inception in 2001<br />
Food Industry<br />
Category Leader<br />
11 th year running<br />
in 2009!<br />
Source: Euromonitor
Exciting New Vision<br />
We work to create a better future every day<br />
• We help people feel good, look good and get more out of life with<br />
brands and services that are good for them and good for others<br />
• We will inspire people to take small everyday actions that can add<br />
up to a big difference for the world<br />
• We will develop new ways of doing business that will allow us to<br />
double the size of our company while reducing our environmental<br />
impacts
Key Drivers for Our Growth<br />
Market<br />
Development<br />
Bigger, Better,<br />
Faster Innovation<br />
Brilliant Execution<br />
with Customers
Ample Opportunities to Grow<br />
More Usage<br />
Example: Skin care<br />
0.3<br />
3.2<br />
0.8<br />
10.9<br />
26.9<br />
36.6<br />
India China Indonesia Brazil USA Germany<br />
US$ per capita consumption
Bigger, Better, Faster Innovations<br />
Dove Fresh<br />
64 markets<br />
Lipton Pyramid Bags<br />
44 markets<br />
Clear<br />
35 markets<br />
Dove Minimising Deos<br />
37 markets<br />
Signal White Now<br />
21 markets<br />
Axe Temptation<br />
56 markets<br />
Knorr Stock Pots<br />
12 markets
Deep Understanding of Shoppers can be<br />
an Advantage<br />
New Jersey<br />
London<br />
Paris<br />
Shanghai<br />
São Paulo
Driving Performance Culture<br />
Differentiated<br />
pay for<br />
performance<br />
Ranking<br />
(LDT)<br />
GPS Feedback<br />
Individual<br />
Ratings drive<br />
VPA & Merit<br />
Rankings drive<br />
GPSP<br />
360 Feedback<br />
Goal Setting<br />
(3 + 1)<br />
Individual<br />
Learning &<br />
Development<br />
Plans<br />
Performance<br />
Rating
Driving Long Term Sustainable<br />
Value Creation<br />
• Next 2-3 years closing gaps to best in class<br />
• Using this time to make structural changes<br />
– Sharpening the innovation pipeline – genesis projects<br />
– More and better support for our brands<br />
– Brilliant Execution with Customers<br />
– Building organisational capabilities and culture
Conclusion<br />
• Planning the business for long drawn out economic recovery<br />
• Energising new vision<br />
• Ample opportunities to grow top and bottom line<br />
– by closing gaps to competition<br />
• Long term sustainable value creation built in next 2-3 years
QUESTIONS
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