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PURPOSE
This presentation is an introduction to Unilever, providing an overview of the company strategy, yearly performance and key information about its brands, categories and people.
Content is updated annually in line with the Annual Report (released on 6 March 2015) and Unilever Sustainable Living Plan progress report (released towards the end of April). In addition, regular updates will be made throughout the year.
The information in this presentation is cleared for external use. Please download, add to or delete information and tailor to your needs.
IMPORTANT – PLEASE NOTE:Whilst this information has been approved for external use please make sure any information you use to supplement this is also appropriate for sharing externally. Unilever’s information is valuable. Sharing sensitive information could lead to a competitive disadvantage and reputational damage. Every one of us has a responsibility to protect and handle it correctly.
For further information or advice please contact your Communications business partner or read the Code of Business Principles.
ABOUT UNILEVER
Unilever is one of the world’s leading suppliers of fast-moving consumer goods.
Our products are sold in over 190 countries and used by 2 billion consumers every day.
OUR PEOPLE
We aim to create an environment in which all employees can fulfil their potential.
Unilever is one of the world’s most culturally diverse companies.
BUSINESS WITH PURPOSE
Our purpose is to make sustainable living commonplace.
We work to create a better future every day, with brands and services that help people feel good, look good and get more out of life. Our first priority is to our consumers – then customers, employees, suppliers and communities.
When we fulfil our responsibilities to them, we believe that our shareholders will be rewarded.
SUSTAINABLE GROWTH
Our core purpose to make sustainable living commonplace is a clear expression of what we believe to be the best long-term way for Unilever to grow and is the heart of our business model.
Launched in 2010 , the Unilever Sustainable Living Plan (USLP) is our blueprint for sustainable growth. It is helping to drive profitable growth for our brands, save costs and fuel innovation.
OUR COMPASS STRATEGY
Our vision is to double the size of the business, whilst reducing our environmental footprint and increasing our positive social impact. The Compass identifies what we must do to win share and grow volume in every category and country and is designed to help us navigate our way to sustainable growth
FAST FACTS - 2014
€1 BILLION INVESTED IN R&D
WORLDWIDE
190COUNTRIES IN WHICH OUR PRODUCTSARE SOLD
TURNOVER OF €48.4
BILLION AT END OF 2014 EMPLOYEES
AT THE END OF THE YEAR
172,000
EMERGING MARKETS NOW REPRESENT
57% OF TURNOVER
OUR BUSINESS MODELSUSTAINABLE LIVING The differentiator in our business model is our Unilever Sustainable Living Plan and the goal of sustainable living.
OUR BRANDSStrong brands and innovation are central to our ambition to double in size.
OUR OPERATIONSWe aim to develop innovative products that address different consumer needs at different price points.
OUR PEOPLE Sustainable, profitable growth can only be achieved with the right people working in an organisation that is fit to win.
UNILEVER’S GROWTH PRIORITIES
Our ambition is to win share and grow volume in every category and country.
WINNING WITH BRANDS AND INNOVATION
BUILD STRONGER
BRANDS
DEVELOP BIGGER, BETTER, FASTER INNOVATIONS
BUILD MARGIN ENHANCING INNOVATION
UNILEVER’S GROWTH PRIORITIES
Our ambition is to win share and grow volume in every category and country.
WINNING IN THE MARKETPLACE
LEAD MARKET DEVELOPMENT - REACH UP, DOWN AND WIDE
WIN WITH WINNING CUSTOMERS AND CHANNELS
BE AN EXECUTION POWERHOUSE
UNILEVER’S GROWTH PRIORITIES
Our ambition is to win share and grow volume in every category and country.
WINNING THROUGH CONTINUOUS IMPROVEMENT
BUILD A QUALITY-DRIVEN VALUE CHAIN WITH GLOBAL SCALE AND LOCAL AGILITY DRIVE RETURN
ON CAPITAL AND MARKETING INVESTMENT
DELIVER A COST COMPETITIVE ORGANISATION
UNILEVER’S GROWTH PRIORITIES
Our ambition is to win share and grow volume in every category and country.
WINNING WITH PEOPLE
BUILD DEPTH OF CAPABILITY AND LEADERSHIP LIVE OUR
VALUES AND BUILD A PERFORMANCE CULTURE
BUILD AN AGILE, FLEXIBLE AND DIVERSE ORGANISATION
THE UNILEVER SUSTAINABLE LIVING PLAN
We have long been working and reporting on our impact on society and the environment. Our Sustainable Living Plan brings together all this work and sets many new targets.
Our Sustainable Living Plan will result in three significant outcomes by 2020.
1. We will help more than a billion people take action to improve their health and well-being.
2. We will halve the environmental footprint of the making and use of our products.
3. We will help enhance the livelihoods of millions of people as we grow our business.
IMPROVING HEALTH AND WELL-BEING
By 2020 we will:
• Help more than a billion people to improve their health and hygiene. This will reduce the incidence of life-threatening diseases.
• Double the proportion of our portfolio that meets the highest nutritional standards, based on globally recognised dietary guidelines. This will help hundreds of millions of people achieve a healthier diet.
IN ACTION
AROUND 397 MILLION PEOPLE REACHED BY END 2014 THROUGH OUR PROGRAMMES ON HANDWASHING, SAFE DRINKING WATER, ORAL HEALTH AND SELF-ESTEEM
Our goal is to help more than a billion people take action to improve their
health and well-being
REDUCING ENVIRONMENTAL IMPACT
By 2020 we aim to:
• Halve the greenhouse gas impact of our products across the lifecycle.
• Halve the water associated with the consumer use of our products.
• Halve the waste associated with the disposal of our products.
• Source 100% of our raw materials sustainably.
IN ACTION
OUR WASTE IMPACT PER CONSUMER USE HAS REDUCED BY AROUND 12% SINCE 2010
By 2020 our goal is to halve the environmental footprint of the making and use of our products as we grow our business
ENHANCING LIVELIHOODS
We work with hundreds of thousands of smallholder farmers, small-scale distributors and micro-entrepreneurs.
By 2020 we will
• Empower 5 million women.• Advance human rights across our
operations and extended supply chain.• Have a positive impact on the lives of
5.5 million people.• Source 100% of our agricultural raw
materials sustainably.
IN ACTION
AT THE END OF 2014 WE TRAINED 70,000 WOMEN MICRO-ENTREPRENEURS TO SELL OUR PRODUCTS IN RURAL INDIA
By 2020 we will enhance the livelihood of millions of people as we grow our business
OUR VALUES
Our Values guide our people in the judgments, decisions and actions they take every day.
They underpin everything we say and do.
OUR VALUES
We are committed to
INTEGRITYbecause it creates our reputation, so we never compromise on it. It defines how we behave, wherever we are. It guides us to do the right thing for the long-term success of Unilever.
We are committed to
RESPECTbecause people should be treated with dignity, honesty and fairness. We celebrate the diversity of people, and we respect people for who they are and what they bring.
OUR VALUES
We are committed to
RESPONSIBILITYbecause we want to take care ofour consumers, customers andemployees, as well as theenvironment and the communitiesin which we operate. We take thispersonally and always do whatwe say we will do.
We are committed to the
PIONEERINGspirit because it created us and still drives us as a business. It gives us the passion for winning and for creating a better future. It means that we are always willing to take intelligent risks.
SCALE AND GEOGRAPHICAL REACH
2012 TURNOVER €51.3 BILLION
EUROPE
€19.7 billion turnover2.0% underlying volume growth41% of group turnover
ASIA, AFRICA, CENTRAL & EASTERN EUROPE
EUROPE
€13.2 billion turnover 0.2% underlying volume growth27% of group turnover
EUROPE
EUROPE
€15.5 billion turnover0.7% underlying volume growth 32% of group turnover
THE AMERICAS
CATEGORY HIGHLIGHTS IN 2014
Turnover: €9.2 billionUnderlying sales growth: 5.8%
Turnover: €12.4 billionUnderlying sales growth:
(0.6)%
Turnover: €17.7 billionUnderlying sales growth:
3.5%
Turnover: €9.2 billionUnderlying sales growth:
3.8%
PERSONAL CAREFOODS
REFRESHMENTHOME CARE
UNILEVER FINANCIAL PERFORMANCE
UNDERLYING SALES GROWTH %
TURNOVER (€ BILLION)
2010
2011
2012
2013
2014
0 1 2 3 4 5 6 7 8
4.1
6.5
6.9
4.3
2.9
2010
2011
2012
2013
2014
40 42 44 46 48 50 52
44.3
46.5
51.3
49.8
48.4
UNILEVER FINANCIAL PERFORMANCE
YEAR 2014
2013
2012
2011
2010
TURNOVER (€ BILLION) 48.4 49.8 51.3 46.5 44.3
UNDERLYING SALES GROWTH %2.9 4.3 6.9 6.5 4.1
CORE OPERATING PROFIT (€ MILLION) 7,020 7,016 7,050 6,276 6,017
CORE EARNINGS PER SHARE (€) 1.61 1.58 1.53 1.37 1.31
FREE CASH FLOW (€ BILLION) 3.1 3.9 4.3 3.0 3.4
UNILEVER’S PORTFOLIO OF CATEGORIES
TURNOVER BY CATEGORY
25% 19% 37% 19%
FOODS REFRESHMENTPERSONAL CARE
HOME CARE
OUR €1 BILLION BRANDS
Home Care
Refreshment
Foods
Personal Care
13 Unilever brands have a turnover of €1 billion or more
CATEGORIESDeliver global
platforms
REFRESHMENT
BeveragesIce Cream
PERSONAL CARE
DeodorantsHairOralSkin
CATEGORIES AND CLUSTERSCLEAR, DISTINCT, COMPLEMENTARY ROLES
Accountable for:
• Medium/long-term market share
• Brand health
• Innovation metrics
• Category value creation
HOME CARE
LaundryHousehold Care
FOODS
Spreads & DressingsSavouryFood Solutions
Responsible for:• Brand development• Innovation• Research and development
CATEGORIES AND CLUSTERSCLEAR, DISTINCT, COMPLEMENTARY ROLESCLUSTERSExecute on the ground
Responsible for:
• Managing the business
• Deploying brands and innovations
• Customer management
Accountable for:
• Short-term market shares
• Growth
• Profit
• Cash flows
MANUFACTURING
TOTAL WASTEktonnes of waste
TOTAL WATERMillion m3 water
TOTAL CO2 emissionsMillion tonnes
32% less CO2per tonne of
product*
29% less water
per tonne of product*
66% less waste
per tonne of product*
H2O Actual Waste ActualCO2 Actual
2.79
1.95 4357
75
151
*2008 is the Manufacturing USLP baseline To be updated alongside release of USLP report in May 2015
CONSUMERS
Our 13 €1 billion brands account for 53% of our turnover Around €7.2
billion invested in brand and marketing
2 billion consumers use a Unilever product every day
€1 billion invested in R&D
CUSTOMERS
Unilever manages a number of partnerships globally.
INNOVATION DRIVING GROWTH
Worldwide we have over 20,000 registered patents and patent applications.
In 2014 Unilever filed more than 200 new patent applications.
INTEGRATED R&D
More than 6,000 R&D professionals
Six key R&D sites delivering groundbreaking technologies: Bangalore (India), Colworth (UK), Port Sunlight (UK), Shanghai (China), Trumbull (US), and Vlaardingen (NL)
92 locations around the globe with R&D teams implementing innovations in countries and factories
NEW PRODUCTS, NEW MARKETS
Regenerate, a completely new Personal Care brand, was launched in the UK in 2014. It is a highly differentiated oral care system based on revolutionary science and market-leading technology.
BIGGER AND FASTER INNOVATIONS
ECO-PACKS AND THE ENVIRONMENT
In laundry, our concentrated liquid brands in eco-packs drive growth, increase the benefit we deliver to our consumers and improve our profitability, while at the same time reducing our environmental impact. Eco-packs use up to 70% less plastic and mean a 50-85% reduction in greenhouse gases per consumer use.
LESS PLASTIC, LOWER COSTS
In 2014 Unilever launched a newly developed packaging technology for Dove Body Wash bottles that uses 15% less plastic. Projected cost savings for the whole portfolio are €50 million. This is another substantial step towards the USLP target of halving Unilever’s waste footprint by 2020.
LEGAL STRUCTURE AND GOVERNANCE
Unilever was formed in 1930 from two companies: Margarine Unie and Lever Brothers.
It was a full business merger, operating as a single business entity.
Two separate legal parent companies have been maintained:
Unilever NV (Netherlands) and
Unilever PLC (UK)
This works through an equalisation agreement and other contracts between the two companies.
Margarine Unie (Netherlands)
Lever Brothers (UK)
THE GLOBAL MANAGEMENT TEAM
DOUG BAILLIE
Chief HR Officer
PAUL POLMAN
Chief Executive Officer
JEAN-MARC HUËT
Chief Financial Officer
KEITH WEED
Chief Marketing and Communications Officer
JAN ZIJDERVELD
President, Europe
KEVIN HAVELOCK
President, Refreshment
ANTOINE DE SAINT-AFFRIQUE
President, Foods
KEES KRUYTHOFF
President, North America
ALAN JOPE
President, Personal Care
PIER LUIGI SIGISMONDI
Chief Supply Chain Officer
DAVID BLANCHARD
Chief R&D Officer
RITVA SOTAMAA
Chief Legal Officer
NITIN PARANJPEPresident , Home care