Bernstein European Strategic Decisions Conference
Marc Engel, Chief Supply Chain Officer & Richard Slater, Chief R&D Officer
23rd September 2020
Safe harbour statement
This announcement 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 'will', 'aim', 'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision', or the negative of these terms and other similar expressions of future performance or results, 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 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 differ materially from those expressed or implied by these forward-looking statements. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: Unilever's global brands not meeting consumer preferences; Unilever's ability to innovate and remain competitive; Unilever's investment choices in its portfolio management; the effect of climate change
on Unilever's business; Unilever's ability to find sustainable solutions to its plastic packaging; significant changes or deterioration in customer
relationships; the recruitment and retention of talented employees; disruptions in our supply chain and distribution; increases or volatility 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; financial risks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters. A number of these risks have increased as a result of the current COVID-19 pandemic. These forward-looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement 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 2019 and the Unilever Annual Report and Accounts 2019.
2.5bn 48k | 190 | 60% | |
consumers | suppliers | countries | |
reached | |||
12 | 1.3bn | sales in emerging | |
markets | |||
billion euro | people helped to | ||
brands | improve health | 14 of the top 50 global | |
and hygiene | |||
90% | consumer brands | ||
Home | |||
Care | |||
21% | Beauty & | ||
Personal Care | |||
Foods & | 42% | ||
Refreshment | local leaders | ||
37% |
Our emerging markets footprint continues to be a strength
Depth
India's largest
FMCG company
Strong #1 share
position
97% local managers
Unilever product in
every Indonesian
household
Breadth
>€500m16 markets
€100m | 21 |
to | |
€500m | markets |
Opportunity
Contributing over
60%
of global GDP
growth by 2030
Seeding the
future
GDP growth (PPP adjusted) 2020-2030 IMF, IFS
Macro uncertainty requires extreme agility
Rising Covid-19 cases
Asia
Europe
North America
Middle East
Latin America
Africa
Mar May Jul Sep
Wide range of economic | Volatile currencies and |
outlooks | commodities |
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | J | F | M | A | M | J | J | A | S | ||||||
Crude | EUR/ BRL | |||||||||||||||||||
COVID-19 cases: 7-day rolling average cases per day (6th September 2020)
Significant short term demand shifts
€26bn
Turnover H1 2020
€4bn
TO H1
2020
Hygiene
Q2 2019 | Q2 2020 |
USG 5% | USG 26% |
€8bn
TO H1
2020
In Home Eating
Q2 2019 | Q2 2020 |
USG 0% | USG 17% |
€4bn
TO H1
2020
Laundry
Q2 2019 | Q2 2020 |
USG 9% | USG (1)% |
€7bn
TO H1
2020
Personal Care
Q2 2019 | Q2 2020 |
USG 3% | USG (10)% |
€0.3bn
TO H1
2020
Prestige
Q2 2019 | Q2 2020 |
USG 8% | USG (10)% |
€2bn
TO H1
2020
Out of Home
Q2 2019 | Q2 2020 |
USG 4% | USG (42)% |
Hygiene: Skin Cleansing + Home & Hygiene Personal Care: Personal Care excl. Skin Cleansing
The Unilever Supply Chain
Reach
2.5 billion
consumers daily
448 distribution centres
5.3 million
shipments per annum
48,000 suppliers
221 production sites
3,352 production lines
844 third party manufacturers producing 16% of volumes
The Connected Supply Chain:
Creating competitive edge through an agile and efficient value ecosystem
Agility and resilience | Reshape asset and cost base | Positive for people and planet | ||
Core enablers
Future-fit talent | Digital transformation | Partnerships for purpose | ||
Challenges to business continuity in H1
Import and export | National lockdowns | Management of workforce |
restrictions |
Major changes in buying | Need to unlock capacity and | Shift to working remotely |
behaviourcapability
Step up in growth in ecommerce
Requires changes in our supply chain setup
• | Portfolio | |||
Q2 Growth | ||||
+78% | +48% | +62% | • | Fulfilment |
eB2B | Brazil | |||
+58% | +59% | 8% | • | Order to deliver |
Pure play | China | time | ||
% of H1 Total Sales | • | Winning with the | ||
+120% | +177% | |||
Omnichannel | USA | demand algorithms |
eB2B excludes UFS
Agility in our own supply chain processes
Acceleration of complexity | Agile sales & operational | Cash management |
reduction | planning |
Multi-location sourcing | Strategic stockholding | Real time information and |
digital transformation |
Reshape the cost and asset base
Transformation | Strong savings | Fixed asset intensity | ||||||||||
programmes | ||||||||||||
5S | ||||||||||||
Manufacturing | ||||||||||||
ZBB | ||||||||||||
Logistics | ||||||||||||
Restructuring program | ||||||||||||
A business committed to people and planet
Climate | Nature | Clean Future |
Net zero emissions 2039 | Deforestation free 2023 | Fossil fuels eliminated from cleaning |
products 2030 |
Plastic | Inequality | Enabled through digital |
50% reduction in virgin plastic 2025 | A fairer and more socially inclusive | transformation, transparency and |
world | partnerships for purpose |
Supply chain at the heart of a winning Unilever
Strategy remains strong and "Covid resistant"
Short pause on transformation, now back to acceleration
Future fit to support the
"new normal" in
consumer demands
Richard Slater
Chief R&D Officer
23rd September 2020
R&D VISION
To innovate
boldly for people
and planet
Proud history of innovation
A strong and connected R&D team
Sustainability at our core
Differentiated science and technology
Global scale andlocal connectivity, & agility
R&D Key locations
Trumbull, US
Port Sunlight, UK
Colworth, UK
Wageningan, NL
Shanghai, CN
Bangalore, IN
Global Centre of Excellence
Key multi-market hub
18
Leveraging our strengths in response to COVID-19
Innovation | Communities | ||||
Business continuity | |||||
>50% of R&D resource flexed | First global company to | €100m Unilever donations |
through the year | prove effectiveness | to fight the pandemic |
against SARS-2-CoV virus | Converting R&D pilot | |
Over 800 new material and | 300 Lifebuoy hand hygiene | plants to sanitiser |
supplier approvals | SKUs launched in 60 | production facilities |
markets in 8 weeks | Expert advice: | |
10x increase in use of our | Innovation programme | 'Ask A Scientist' through |
Digital R&D tools | on-track and launches | social media +100m |
delivered on-time | impressions |
Impactful Innovation through Strategy, Discipline and Agility
Strategy
Sharp Category innovation strategies with clear choices
Focus on high growth spaces (channel / portfolio)
Defined right to win and differentiated propositions
Discipline
Identify, align and support scale innovation bets
Ruthlessly cut the tail to re-invest(-34% YTD)
Decisive post-launch reviews: Power-up, Pivot or Kill
Agility
New, agile and iterative innovation process
Unlocking creativity and speed (30% faster average speed to market)
Driving engagement in teams and better outcomes
Sustainability at our core
Clean Future - our differentiated Home Care strategy
Petro-chemicals | High carbon | Wastage | Single use plastic | Distrust in chemicals |
chemistry | of water | |||
100% renewable | Low carbon products | Water efficiency & | Recyclability, PCR | Products designed for |
that work in quick and | ||||
or circular | biodegradability | Refill & re-use | consumer trust | |
cold wash | ||||
feedstocks | ||||
22
Superior performance
Greener formulations
Recycled Plastic packaging
23
Superior mildness for hands
100% renewable actives
From sustainable biotechnology
24 24
Smaller, lighter and better value for consumers
75% plastic reduction
Delivered outstanding early results
Differentiated Science & Technology
Over half of consumers experience odour or wetness issues
X3 efficacy and first ever clinical strength in an aerosol
Differentiated patented technology
760% global increase in hand sanitizers*
6 months from concept to launch
Kills 99.99% of virus and bacteria plus provides 8hr moisturisation
* Global market growth in previous 12 weeks
Vegan / plant based market worth $31bn by 2026
Invested €85m into state of the art foods innovation centre
Consumer preferred taste and experience
Global scale and local
connectivity & agility
Design for e-commerce
10X ecommerce growth vs. FMCG average
Happiness through the letterbox
Innovative packaging solutions for environment and consumers
R&D in Unilever
Innovate Boldly for People & Planet
Sustainability at our core
Differentiated
Science and
Technology
Global scale andlocal connectivity & agility
Future-focus:
Digital Technology unlocking innovation
Unilever: purpose led, future fit
Broad portfolio | Sustainable | Operational agility | ||
and footprint | business model | |||
Bernstein European Strategic Decisions Conference
Marc Engel, Chief Supply Chain Officer & Richard Slater, Chief R&D Officer
23rd September 2020
Attachments
- Original document
- Permalink
Disclaimer
Unilever plc published this content on 23 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 September 2020 13:44:09 UTC