H1 2019 presentation - Unilever · 2020. 9. 10. · +5.0% +3.0% Cash Free Cash Flow €(0.5)bn...
Transcript of H1 2019 presentation - Unilever · 2020. 9. 10. · +5.0% +3.0% Cash Free Cash Flow €(0.5)bn...
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Unilever H1 2019 Results
Alan Jope & Graeme Pitkethly 25th July 2019
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SAFE HARBOUR STATEMENT
This announcement may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States PrivateSecurities Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vision’, or the negativeof these terms and other similar expressions of future performance or results, and their negatives, are intended to identify such forward-lookingstatements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments andother factors affecting the Unilever Group (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 differmaterially from those expressed or implied by these forward-looking statements. Among other risks and uncertainties, the material or principalfactors which could cause actual results to differ materially are: Unilever’s global brands not meeting consumer preferences; Unilever’s abilityto innovate and remain competitive; Unilever’s investment choices in its portfolio management; inability to find sustainable solutions to supportlong-term growth including to plastic packaging; the effect of climate change on Unilever’s business; significant changes or deterioration incustomer relationships; the recruitment and retention of talented employees; disruptions in our supply chain and distribution; increases orvolatility in the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure;execution of acquisitions, divestitures and business transformation projects; economic, social and political risks and natural disasters; financialrisks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters.
These forward-looking statements speak only as of the date of this announcement. Except as required by any applicable law or regulation, the Groupexpressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained hereinto reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any suchstatement is based.
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 in the Annual Report on Form 20-F 2018 and the UnileverAnnual Report and Accounts 2018.
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Alan Jope
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+5.0%
+3.0%
Cash
Free Cash Flow
€(0.5)bn
€1.5bn
Underlying Operating Margin
+30 bps
+50 bps
Gross Margin
Underlying Sales Growth
Underlying Volume Growth
+3.3%
+1.2%
Earnings
Underlying EPS
H1 2019: Sustained progress in growth and margin
vs 2018Constant Underlying EPS
MarginGrowth
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Sustained growth momentum
Underlying Sales Growth exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
Braziltruckers
Asia/AMET/ RUB
Difficult weather comparator
Argentina
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Improving momentum in emerging markets
5.6% exc. truckers
India Brazil
Indonesia
India
China
Underlying Sales Growth exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
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Uncertain markets
Diverging economic outlooks
0%
1%
2%
3%
4%
5%
USA
EMsGDP
‘19 ‘20 ‘19 ‘20
Source: Oxford Economics
Market affected by weather
2.0%
(0.5%)
MAT L12 wks
Europe value market growth (%)
Source: Nielsen
Benign currency
Source: NASDAQ, rebased to 100, vs USD
July ‘18 July ‘19
100
TRY
IDR
EURIND
70
BRL
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1.7%
1.6%
Beauty & Personal Care
H1 2019
Emerging markets
Naturals
USG
UVG
UPG
UOM +100bps
3.3%
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2.8%
4.5%
Home Care
UVG
UPG
UOM
Less plastic
Enhancing the core
H1 2019
7.4%
+120bps
USG
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Foods & Refreshment
UVG
UPG
UOM (40)bps
H1 2019
Acquisitions
Sustainable packaging
1.4%
1.3%
(0.1)%
USG
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Purpose-led campaigns
Beauty & Personal Care Home Care
Ben & Jerry’s Justice ReMix’dIndonesia Mosque CleaningAll Things Hair Refillery
Foods & Refreshment
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Data driven marketing delivering
• 24 Digital Hubs
• 600+ DDM campaigns
• 1.5bn consumer connectionsAxe Martin Garrix Indonesia food festival
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Graeme Pitkethly
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Asia / AMET / RUB
H1 UVG 2.9%
H1 Turnover €12.2m
H1 USG 6.2%
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Latin America
H1 Turnover €3.5bn
Underlying Sales Growth exc. Venezuelan price from Q417 onwards, and Argentinian price from Q318 onwards
H1 UVG 0.5%H1 USG 4.9%
1.6% exc. truckers
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USG Argentina 10.0% (10.3)% (21.6)%
35bps 140bps
34.2%
(21.6)%
64.0%
(10.3)% (6.3)%
17.4%
Q2’18 Q3’18 Q4’18 Q1’19
Price impactTotal UL
Q2’19
(11.0)%
80bps
UVG
UPG
78.1%
70bps
(11.0)% (7.4)%
75.5%
(7.4%)
80bps
Argentina hyperinflation
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North America
H1 Turnover €4.6bn
H1 UVG (0.5)%H1 USG 0.1%
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Europe
H1 Turnover€5.8bn
H1 UVG (0.2)%H1 USG (0.6)%
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€26.4bn €26.1bn
USG 3.3%
1.2%2.1%
(5.5)% 0.5% 1.1%
H1 2019: Turnover
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+ 30 bps+ 30 bps (10) bps
19.3%18.8%
+50bps
H1 2019: Underlying operating margin
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Underlying EPS +5.0%
H1 2019: Underlying earnings per share
(5.4%) 5.2%
4.3%
(0.4)% (1.0)%0.3%
2.0%
€1.21 €1.27
(5.4)%5.2%
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Net debtFree cash flow Pension deficit
Cash flow & balance sheet
Free cash flow
vs 2018
€1.5bn
€(0.5)bn
Net debt/EBITDA
€24.2bn
2.1x
Net debt FY 2018 H1 2019
€0.9bn
€0.5bn
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❑Underlying Sales Growth in lower half of multi-year 3-5% range
❑Underlying Operating Margin: continued progress to 20%
❑Strong cash flow
2019 outlook
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Unilever H1 2019 Results
Alan Jope & Graeme Pitkethly 25th July 2019