Investor Event 2015 SEAA: 4G Growth in Action Peter Ter-Kulve EVP - South East Asia and Australasia December 2015
Investor Event 2015
SEAA: 4G Growth in ActionPeter Ter-Kulve
EVP - South East Asia and Australasia
December 2015
SEAA
TURNOVER
SEAA
CORE OPERATING PROFIT
SEAA
CASH
SEAA +6 Billion Euro: Important Region for Unilever
ANZ
INDONESIA
PHILIPPINES
VIETNAM
THAILAND
MALAYSIASINGAPORE
MYANMAR CAMBODIA, LAOS
A Strong Portfolio
PERSONAL CAREREFRESHMENT
FOODS
HOMECARE
STRONG MARKET PORTFOLIO STRONG CATEGORY PORTFOLIO
Good Track Record of 4G Delivery
63% 61% 60%52%
61%72%
09 10 11 12 13 14
Core Operating Margins*vs 2009
Source: Competitive Growth through Nielsen Retail Panel*Core Operating Margin improvement at constant exchange rate @ 2014 rates
2013 2014
+180 bps
+340 bps
COMPETITIVE PROFITABLE RESPONSIBLE
USLP Embedded in Our Brands and Operations
IMPROVING HEALTH AND WELL-BEING
REDUCING ENVIRONMENTAL IMPACT
ENHANCING LIVELIHOODS
% BusinessWinning Share
2009 - 2014 Underlying Sales Growth
CAGR
8.6%
10.4%
SEAA SEA
CONSISTENT
HAIR SKIN CLEANSING
FACE ORAL DEODORANTS HAND & BODY
FABRIC CLEANING
FABRIC CONDITIONER
DISHWASH ICE CREAM
TEA COOKING PRODUCTS
MARGARINES SOUPS DRESSINGS
INDONESIA
THAILAND
PHILIPPINES
MALAYSIA
VIETNAM
Strong Market Positions in SEA
Source: Nielsen Retail Panel
Local Competitors
Global Competitors
Leading Share and Scale
Source: Nielsen Retail Panel (excluding Vietnam)
Unilever: 42%
All Global Competitors: 30%
All Local Competitors: 28%
630 MPEOPLE
682 MPEOPLE
718 MPEOPLE
SEA Growing Middle Class
Source: Unilever Living Standard Measure Classification. 2020 Projection by the Marketing Science Unit
HAVE LOTS
HAVE SOME
HAVE LESS
2008 2015 2020
30% 48% 64%
SKIN CLEANSING BAR
SHAMPOO POST WASH
20%
100%
Massive Penetration Potential Across Categories
INDONESIA THAILAND VIETNAM
PEN
ETR
ATI
ON
Source: Category Penetration from Kantar Panel
SKIN CLEANSING LIQUID
14.5%
10.3%10.2%
3.1%
6.1%
-1.0%
5.0%
-0.2%
2012 2013 2014 YTD Sep 2015
Strong Long Term Market Growth, But Volatile
DECLINING RAW MATERIAL PRICE
MACROECONOMIC SLOWDOWN
Source: FMCG Market Growth through Nielsen Retail Panel
Value Growth Volume Growth
FMCG MARKET VOLATILE CURRENCY MOVEMENT
POLITICAL UNREST
Unilever Compass: Accelerating 4G Growth in SEA
Winning with Brands and Innovation
Winning in the Marketplace
Winning through Continuous
Improvement
Winning with People
GOOD BETTER BEST PORTFOLIO
DRIVING GLOBAL & LOCAL BRANDS
MARKET DEVELOPMENT
EXCLUSIVE GT DISTRIBUTION
NET REVENUE MANAGEMENT
LEVERAGE SCALE IN MODERN TRADE
SUPPLY CHAIN IMPROVING COST
& CASH
ZERO BASED BUDGETING
DRIVING PRODUCTIVITY
TALENT DEVELOPMENT &
ATTRACTION
MARKETING IN THE DIGITAL AGE
PIONEERING INTHE E-COMMERCE
SPACE
USLP FOR GROWTH
CULTURE OF SIMPLIFICATION
GLOBAL BRANDS
ANDEXECUTION
GLOBAL BRANDSLOCAL
EXECUTION
LOCAL BRANDS
AND EXECUTION
GOOD BETTER BEST PORTFOLIO
Brands and Innovation
PORTFOLIO OF GLOBAL & LOCAL BRANDS
MARKET DEVELOPMENT
FILL DISTRIBUTION
GAPS
PROPOSITION CLARITY & WINNING PRODUCTS
OWN CATEGORY ENTRY PRICE
POINTS
DRIVE CONSUMPTION
SHAMPOO
FY2014
42%
REACH
Marketing in the Digital Age
CONTENT DATA
Total Reach in SEAA
+ 210 bpsAbove FMCG Average
Share of Impression
View Through Rate
Q2’ 15
66%
241 Million/ MonthFor Active Unilever Brands
100%
80%
60%
40%
20%
0%
BUILDING DIRECT EXCLUSIVE DISTRIBUTION
Customer and Channel Development
EMPOWERED BY TECHNOLOGY
ePOSDT Store CRM
STRONG NET REVENUE PRICING SYSTEM
ACCELERATE GROWTH FUEL GROWTH
Brand Portfolio Pricing
Pack Price Architecture
0.5 1 1.5 2 2.5 3 3.5 4
DIRECT INDIRECT
Right format, right pack, @ right price, by
channel
Capture the full value of our brands
for consumers
Value Weighted Coverage
No. of Outlets (Million)
EXTERNAL COMPARISON
Costs Unusual
CROSS BORDER SOURCING
WITHIN ASIA
FTE REDUCTION
END-OF-LINE AUTOMATION
ZERO BASED BUDGETING REALIZABLE SAVINGS
Cost Category
Benchmarking
ZBB Industry Comparators
SUPPLY CHAIN IMPROVING COST & CASH
EFFICIENCY THROUGH ZBB
THAILAND€ 18 M
SEAA€ 90 M
DRIVING PRODUCTIVITY TO FUND WAGE INCREASE
#1 EMPLOYER OF CHOICE:SINGLE DIGIT ATTRITION
12
11
10 2012
2013
2014
SEAA
TURNOVER per MANAGER*
SEAA Talent Machine
1
FMCG RANKING(TARGET CAMPUSES) 6
TALENT DEVELOPMENT AND ATTRACTION
* FTEs in Customer Development, Brand Building and General Management Who Are Work Level 2 and Above
Million
Million
Million
€
€
€
Unilever Sustainable Living Plan
MORE GROWTH LOWER COSTS LESS RISK MORE TRUST
01 02 03 04 05 06 07 08 09 10 11 12 13 14
BANGO INDONESIA HPC THAILAND SACHET WASTE RECOVERY SYSTEM
CLOSED LOOP
SYSTEM
Estimated saving 43,000T CO2 p.a. (= 215,000 trees!)
BRUSH DAY & NIGHT PROGRAMME
Indonesia: Sticking to Long Term Strategy Pays Off
Source: Indonesia Reports & Accounts
$2.8 billion
13%
10%
22%
0%
5%
10%
15%
20%
25%
-
500
1,000
1,500
2,000
2,500
3,000
3,500
94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
PBT Margin
$2 billion
$1 billion
$ 500 million
Sales (US $)
Unilever SEAA Conclusion
v Strong Consumption Story Despite Recent Market Volatility
v Long-term 4G Delivery (Competitive, Consistent, Profitable, Responsible)
v Repeatable Unilever D&E Growth Model Applied to All Countries,
Categories and Business Processes