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U N I L E V E R T R A D I N G S TAT E M E N T T H I R D Q U A RT E R 2 0 1 8
G R A E M E P I T K E T H LY / R I C H A R D W I L L I A M S
1 8 T H O C T O B E R 2 0 1 8
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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 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; inability to find sustainable solutions to support long-term growth; the effect of climate change on Unilever’s business; customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain; the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; successful execution of acquisitions, divestitures and business transformation projects; economic and political risks and natural disasters; financial risks; 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 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 2017 and the Unilever Annual Report and Accounts 2017.
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GRAEME PITKETHLY
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Q3 2018
• Good growth from price and volume
• Emerging markets holding up
• All divisions accelerated
• Guidance unchanged
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Mixed market conditions
Source Nasdaq
Jan’18 Oct’18
100
130
Crude oil $ barrel price rebased to 100 Currencies vs. USD rebased to 100
Jan’18 Oct’18
220
100
Argentina Peso
Turkish Lira
Brazilian Real
Mixed market performance
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• Soft developed markets comparators
• Brazil truckers
• Argentina
Lots of moving parts
+4.5%
+3.8%
Underlying Sales Growth Q3’18
with Argentina price growth
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USG 3.8%: Balanced growth from volume and price
UVG
0.7%
USG
• Pricing coming back
• Volume strong
• Challenges to navigate
UPG
(0.1)%
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18
3.8%1.6%3.4%4.0%2.6%
Underlying Sales Growth incl. Spreads excludes Venezuelan price, and Argentinian price from 1 July 2018 onwards
2.4%
0.2%
3.2%
0.7%
3.4%
0.1%
1.2%
0.3%2.4%
1.4%
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Beauty & Personal Care
USG +4.0%, UVG +2.8%
Grow the core Evolve the portfolio
Purpose-led brands
Strong core
New brands
Prestige & acquisitions
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Home Care
USG +4.5%, UVG +1.5%
Grow the core Evolve the portfolio
Locally relevant
New brands
AcquisitionsStrong
core
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Foods & Refreshment
USG +3.2%, UVG +2.5%
Grow the core Evolve the portfolio
Market development
New brands
Out of home
Acquisitions
Purpose-led brands
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RICHARD WILLIAMS
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Asia / AMET / RUB
UVG 4.3%
TO €5.6bn
USG 6.6%
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18
6.0% 6.5% 5.9%
Third quarter Quarterly trend
6.3% 6.6%
UVG
USG
UPG
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UVG 0.1%
TO €1.7bn
USG 1.5%
Quarterly trend
UVG
USG
UPG
6.6% 4.6% 2.2% (6.9)%
Q3’17 Q4’17 Q1’18 Q2’18
Third quarter
1.5%
Q3’18
Underlying Sales Growth exc. Argentinian and Venezuelan Price from 1 July 2018 onwards
Latin America
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Argentina hyperinflation
Q1 18 Q2 18 Q3 18
Price impactTotal Unilever
70bps35bps15bps
(10.3)%
34.2%
17.4%
(6.3)%
1.0%
7.8%
USGArgentina
8.9% 10.0% (10.3)%
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North America
Q3'17 Q4'17 Q1'18 Q2'18 Q3'18UVG 0.4%
TO €2.3bn
USG 1.9%
Quarterly trend
(2.8)% 2.8% 3.1% (1.0)%
Third quarter
1.9%
UVG
USG
UPG
Underlying Sales Growth exc. Spreads
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Europe
UVG 1.9%
TO €3.0bn
USG 1.5%
Quarterly trend
(1.5)% 0.3% 1.1% 1.5%
Q3’17 Q4’17 Q1’18 Q2’18
Third quarter
Q3’18
1.6%
UVG
USG
UPG
Underlying Sales Growth exc. Spreads
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ARGENTINAUPG
Q3 2017 UVG M&A FX Q3 2018
Q3 2018: Turnover
UPGIncl. Arg
USG 3.8%
€13.1bn
€12.5bn
2.4%
2.1%(0.7)% 2.1%
(5.2)%
(5.3)%
SPREADSDISPOSAL
2.2%
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GRAEME PITKETHLY
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2018 full year outlook
❑ Underlying Sales Growth within the 3-5% range
❑ Underlying Operating Margin: continued progress to 2020 target
❑ Strong cash flow
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U N I L E V E R T R A D I N G S TAT E M E N T T H I R D Q U A RT E R 2 0 1 8
G R A E M E P I T K E T H LY / R I C H A R D W I L L I A M S
1 8 T H O C T O B E R 2 0 1 8