Unilever (ULVR) 2024 Deutsche Bank dbAccess Global Consumer Conference summary

Business overview and recent performance

• Generated €59.6 billion turnover and €9.9 billion underlying operating profit in 2023, with €7.1 billion free cash flow.

• Holds #1 or #2 market position in 80% of country-category combinations; operates in 190 countries.

• Emerging markets account for 58% of turnover, with the US as the largest single market at 20%.

• New executive team and board members appointed, including external hires and a new Chief People Officer.

• Completed disposals of Dollar Shave Club and Elida Beauty; acquired K18 in February.

Growth Action Plan (GAP) and strategic focus

• GAP launched in October, focused on faster, higher-quality growth, productivity, and performance culture.

• Prioritizing 30 power brands, now representing 75% of turnover, for focused investment and execution.

• Multi-year innovation programs aim to double average innovation size and scale top projects to €100 million+ by 2025.

• Unmissable Brand Superiority framework uses 21 metrics across six Ps to drive market share and track progress.

• 60% of group turnover to be managed under this data-driven methodology by July.

Productivity, margin expansion, and portfolio optimization

• Targeting return of gross margin to pre-pandemic 44%, with 2023 at 42.2% and further expansion planned.

• Net productivity mindset adopted, with cost per unit reduction tracked rigorously.

• Over half of CapEx now allocated to margin expansion, especially in hard currency markets.

• Operational hubs in seven low-cost locations and digital transformation drive efficiency and savings.

• EUR 800 million cost savings program to offset ice cream separation dyssynergies.