Unilever Half Year 2020 Results

Alan Jope & Graeme Pitkethly

23rd July 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

Alan Jope

Unilever Half Year 2020 Results

23rd July 2020

2020: Half year results

GrowthProfit

Underlying Sales Growth

UOP

(0.1)% €5.1bn

+3.8%

(0.3)% +50bps

Underlying Volume Growth

UOM

Cash

Free Cash Flow

€2.9bn

+€1.3bn

vs H1 2019

Earnings & Dividend

Underlying EPS

+6.4%

Dividend

maintained

Quarterly Dividend

4

Absolute UOP as reported, UOP growth rate on constant basis

Managing our Covid-19 response

People

Supply

Demand

Community

Cash

5

Operational excellence through 5 fundamentals

Volume growth & share

1

Focused innovation

2

Ecommerce & value

3

Never more relevant

4

Cash priority

5

6

Strategic change agenda

Legal simplification

Shaping the portfolio

Climate & nature

commitments

7

Category portfolio

€4bn

TO H1

2020

Laundry

80% EM

€4bn

2020

TO H1

€7bn

TO H1

2020

Personal Care

60% EM

€8bn

TO H1

2020

In Home

50% EM

€26bn

Turnover

H1 2020

€0.3bn

TO H1

2020

Prestige

€2bn

TO H1

2020

Out of Home

Hygiene: Skin Cleansing + Home & Hygiene Personal Care: Personal Care excl. Skin Cleansing

8

Beauty & Personal Care

Skin Cleansing

+27% Q2 USG

Rest of BPC

(10)% Q2 USG

Prestige

(10)% Q2 USG

H1

(0.3)%

H1

0.1%

USG

UVG

Skin Cleansing

Q2 USG%

Bars

+2%

Bodywash

+12%

Liquid Handwash

+155%

Sanitiser

>+20,000%

Total Skin Cleansing

+27%

Hair Care

Q2 USG%

Wash & Care

(1)%

Styling

(32)%

Total Hair

(6)%

Rest of BPC: Hair care, Deodorants, Skin Care, Oral Care

9

Foods & Refreshment

In Home

+17% Q2 USG

Out of Home

(42)% Q2 USG

H1

(1.7)%

H1

(2.5)%

USG

UVG

In Home

Q2 USG%

Savoury,

+14%

Dressings and Tea

Ice Cream

+26%

Out of Home

Q2 USG%

Ice Cream

(35)%

UFS

(56)%

UFS included in other categories

10

Home Care

3.2%

Home & Hygiene

+24% Q2 USG

Laundry

(1)% Q2 USG

H1

3.2%

H1

2.9%

USG

UVG

Home & Hygiene

Q2 USG%

Sunlight

+5%

Cif

+20%

Domestos

+37%

Sun

+32%

Living

+87%

Hygiene

Seventh

+54%

Generation

11

eCommerce

Q2 Growth

+78%

+48%

+62%

eB2B

Brazil

+58%

+59%

8%

Pure play

China

Hellmann's

% of H1 Total Sales

+120%

+177%

Omnichannel

USA

eB2B excludes UFS

12

Graeme Pitkethly

Unilever Half Year 2020 Results

23rd July 2020

A global pandemic

Map depicts the daily confirmed COVID-19 cases per million, 3-day rolling average, 17th July 2020

14

Macro uncertainty

Rising COVID-19 cases

Asia

Europe

North America

Middle East

Latin America

Africa

J F M A M J J

Wide range of economic

Volatile currencies and

outlooks

commodities

2019

2020

2021

2022

2023

2024

J

F

M

A

M

J

J

Crude

EUR/ BRL

Daily confirmed COVID-19 cases per million, 7-day rolling average, 15th July 2020

15

H1 2020: Group USG performance

H1

(0.1)%

H1

(0.3)%

USG

UVG

USG

3.8% 2.9% 1.5% 0.0% (0.3)%

UPG

0.5%

UVG

(0.8)%

'19 Q2

'19 Q3

'19 Q4

'20 Q1

'20 Q2

India UK China

Outbreak

Recovery

USA Brazil

  • Resilient performance in a volatile and challenging operating environment
  • Spread of Covid-19 and implementation of lockdowns and restrictions
  • Some lockdowns have had a more severe impact on the supply and accessibility of goods
  • Changing consumer demand patterns

16

Reflecting treatment of hyperinflation in USG as announced in September 2019

Asia / AMET / RUB

USG 6.3% 5.6% 2.1% (3.7)% (1.8)%

UPG

UVG

'19 Q2

'19 Q3

'19 Q4

'20 Q1

'20 Q2

H1

(2.7)%

H1

(2.9)%

USG

UVG

S Africa India

China

re k

v ry

Outbreak

Recovery

Russia

Indonesia S Korea

  • China: sales down mid single digits following a return to growth in Q2 as the market reopened
  • India: declined high single digits impacted by a slowing market, followed by the national lockdown from March
  • SEA: Indonesia & Vietnam in growth, Philippines & Thailand declined

17

Reflecting treatment of hyperinflation in USG as announced in September 2019

Latin America

USG 11.6% 3.2% 3.8% 4.9% (0.8)%

UPG

UVG

'19 Q2

'19 Q3

'19 Q4

'20 Q1

'20 Q2

H1

1.9%

H1

(0.8)%

USG

UVG

Mexico

re k

v ry

Outbreak

Recovery

Brazil Argentina

  • Q2 impacted by the spread of Covid-19 and lockdown measures
  • Brazil: sales up low single digits for the half, following a decline in Q2 with regional lockdowns implemented
  • Argentina: continued volume growth, driven by in-home food consumption

18

Reflecting treatment of hyperinflation in USG as announced in September 2019

North America

USG (0.2)% 0.3% 0.6% 4.8% 9.5%

UPG

UVG

'19 Q2

'19 Q3

'19 Q4

'20 Q1

'20 Q2

H1

7.3%

H1

7.7%

USG

UVG

Canada

re k

v ry

Outbreak

Recovery

USA

  • Growth driven by in-home foods & ice cream, and hygiene products
  • Q2 Foods & Refreshment USG +23% (excl. Food Service)
  • H1 regional growth includes c.3% negative impact from Food Service and Prestige due to channel closures

19

Europe

USG

(1.6)% (0.3)% (0.8)% 1.4%

(4.5)%

UPG

UVG

'19 Q2

'19 Q3

'19 Q4

'20 Q1

'20 Q2

H1

(1.8)%

H1

(1.0)%

USG

UVG

UK Italy Germany

re k

v ry

Outbreak

Recovery

Spain France NL

  • Out of Home Ice Cream and Food Service impacted by lockdowns across the region, primarily in Q2
  • Sustained increases in in-home food consumption and hygiene products
  • Italy & Spain: sales declined, led by OOH channels
  • UK & Germany: growth maintained, despite headwind from OOH channels

20

H1 2020: Turnover (1.6)%

USG (0.1)%

+0.2%

(0.3)%

+1.2%

(0.2)%

A & D +1.1%

€26.1 bn

(2.5)%

€25.7 bn

21

Reflecting treatment of hyperinflation in USG as announced in September 2019

H1 2020: Underlying operating margin

+100bps

(20)bps

(80)bps Mix &

COVID-19

19.8%

19.3% (30)bps

22

All numbers on an IFRS 16 basis

H1 2020: Underlying earnings per share

+5.4%

+0.3%

(1.9)%

+2.4%

+3.9%

(3.7)%

€1.35

€1.27

Underlying EPS +6.4%

23

All numbers on an IFRS 16 basis

H1 2020: Free cash flow

€0.4bn

€0.7bn €0.1bn

€0.1bn

€2.85bn

€1.55bn

24

All numbers on an IFRS 16 basis

H1 2020: Balance sheet and liquidity position

Net debt

Access to funding

H1 '20 Net debt/EBITDA

Commercial paper at

30/06/2020

1.9x

€1.3bn

A1/A+

€7bn

Credit rating

Accessible undrawn

standby facilities

Cash & facilities

Total cash & undrawn facilities at 30/06/2020

€11.9bn

2.7x coverage of debt maturing in 1 year

As of H1 '20

Pensions

Deficit at

30/06/2020

€(0.4)bn €(0.2)bn

Increase in deficit vs.

FY 2019

25

All numbers on an IFRS 16 basis

Alan Jope

Unilever Half Year 2020 Results

23rd July 2020

Unilever #ComeOutStronger

Resilience

Agility

Strategic future

•

Portfolio

•

Category

•

Unification

•

Operational excellence

•

Geography

•

Portfolio evolution

•

Financial strength

•

Supply

•

Sustainability

We are focused on volume led, competitive growth; absolute underlying

operating profit; and cash

27

Unilever Half Year 2020 Results

Alan Jope & Graeme Pitkethly

23rd July 2020

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Unilever plc published this content on 23 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 July 2020 07:55:13 UTC