We are about to hand over to Unilever to begin the conference call. [Operator Instructions] We will now hand over to Mr. Jean-Marc Huët. Raoul Jean-Marc Sidney Huët: Good morning, everybody, and welcome to Unilever's First Quarter Results Presentation of 2014. I will begin with the context for the set of results, go over our overall performance in the first quarter, as well as the category highlights. James will then review our geographical performance, and I will conclude with some remarks before taking your questions. Let me first draw your attention to the usual disclaimer relating to forward-looking statements and non-GAAP measures. Moving swiftly on. Let's start with the wider context for this set of results, and much of this will be familiar to you because a number of our competitors have already reported this week and last. Our markets, overall that is, have continued to slow, and they are now growing at around 2.5% plus globally. The picture is not uniform. If you take Northern Europe, market conditions remain tough. There are some economies that are picking up. Having said that, unemployment is still very high and not coming down. The retail environment itself is difficult, traditional chains looking to respond to the continuing growth of discounters, this putting pressure on prices. But by contrast, and who would've said this a couple of years ago, in Southern Europe, there has been some recovery from the very poor conditions that we've had over the last 12 months, and this recovery noted in Spain as well as Greece. Turning to the U.S. There are certainly positive signs in the economy itself. But for most ordinary people, it still does feel like a recession, and the gap between the low and high incomes continues to grow. There are some, but they are…

Thank you, Jean-Marc, and good morning to everyone. Let me start the regional review with Asia/AMET/RUB which, as you know, is the biggest part of our business. Markets in this region are still growing but at significantly slower rates than in the past. We see less up-trading happening in these markets at the moment, but equally, we're not seeing widespread down-trading either. Against that background, underlying sales grew by 5.8%, with most of this coming from volume, which was up by 3.7%. In much of the region, our own businesses continue to do very well: China, now 2 billion in turnover; Indonesia; and Turkey are notable examples. We also saw a return to growth in Japan, with good momentum from Lux in hair and Dove in skin cleansing; and a good performance in Australia, helped by strong ice cream sales. By contrast, in Russia and Thailand, tough economic and competitive conditions led to lower sales. Growth is broad-based, with Personal Care, Home Care, Refreshment and Foods all performing well. Across the region, we have been and continue to invest in go-to-market capabilities. In India, we have continued to expand our Shakti program, taking on an additional 17,000 women entrepreneurs in 2013, bringing the total up to some 65,000. Together with their menfolk who get to the neighboring areas, we now reach more than 167,000 villages in rural areas in India. In Indonesia, we're extending our distribution system in the outer islands, which have been underserved and where income levels are rising. Over 3 years, we're adding 50 new distribution points and increasing our sales force. And in China, we're increasing our reach to more cities and many more modern trade outlets. At the end of the quarter, we completed the acquisition of a majority stake in Qinyuan, taking us into…

[Operator Instructions] So we're going to start with Iain Simpson.

A couple of questions from me. Firstly, the dividend hike, that will leave you with really a very high payout ratio for this year, just looking at where consensus is. I mean, is that something that you see as sustainable going forwards, that, that sort of payout ratio, is that how we should be thinking about how that will evolve? Because, I mean, I think on my numbers, that will be something sort of approaching 70%. And then just secondly, could you talk a little bit about that sort of water purification, water filter or water cooling as a category and what you see is attractive in it? Because that sort of device setup is really quite different to, I think, anything else in your portfolio, so just be interested to hear how you think about that longer term. Raoul Jean-Marc Sidney Huët: Thank you, Iain, and I'll take the first question on dividends, and James can take the question on water. On dividends, just a couple of reminders, we've been increasing our dividend, I think, over the last 30 years by 8% or 9%. So we really do want to do this on a steady and sustainable basis. We have a single A+ credit rating. That's very much our target. And yes, we're happy at these types of payout ratios, specifically if you take total distribution into account because, at present time, we don't do other forms of distributions. So if you take overall, we're happy with the increase of 6%, and it's just a gesture of the confidence that we have in the business going forward. James, on water?

Yes, thanks, Iain. So providing safe drinking water is a very important part of the Unilever Sustainable Living Plan. You heard Jean-Marc say earlier there will be an update on progress on that next week, Iain, so I suggest you listen in to that, and you will hear a little bit more about that from some of the experts. As far as we are concerned, Pureit is the kind of the focal point for us. Very difficult to establish Pureit in China from scratch. And indeed, if you look at the needs for water purification in China, it's very extreme. So we had a good look at the market, and we came across Qinyuan. We thought it was a great business. We think it's an exciting way of helping us to deliver on our USLP plan. Raoul Jean-Marc Sidney Huët: Okay, the next question is from Eileen Khoo.

Eileen Khoo here from Morgan Stanley. Just 2 quick questions from me. The first one is could you just update us on your thinking on buybacks in light of recent news in the press that you were considering a share buyback of up to GBP 4 billion, and can you -- sorry, EUR 4 billion. And can you also, on a related topic, just update us on your priorities in terms of use of cash and, perhaps, comments on your view on the M&A landscape at this point? And then secondly, on the margin guidance, can you give us a bit more color on this, in particular, restructuring? And also do you remain comfortable with consensus expectations, which is for about 30 bps improvement in the full year? Raoul Jean-Marc Sidney Huët: Okay. So just starting off with margin guidance. We did think it was important to just let you know that margins would be slightly down in the first half, up in the second half. It's being driven by investments. It's driven by the timing of savings and, obviously, the restructuring. Most important for you is that restructuring is within core operating margin. It's part of our business. And as a result, when we're talking about steady and sustainable core operating margin, it includes the restructuring. So you will see that come through the year. The savings of EUR 500 million on an annualized basis will start from 2015 onwards. On your question about M&A activity, we are obviously pursuing bolt-on M&A. No change there as long as they are not distracting. We have a strong balance sheet, and we would like to add to our current categories as it stands today to strengthen and to be able to complement our existing strategies. So we're always on the lookout for assets like those of Alberto Culver, like Kalina, like Inmarko, like the one in China, and we continue to be very focused on that. And that's actually related to your first question around buybacks. And here again, as we've said before, we do not have any current plans for share buybacks, but we would consider returning any surplus cash to yourselves, to shareholders, at some point in the future if the disposals that we're planning to do would significantly exceed the acquisition prospects. But that's not the case at this point in time.

Thank you, Eileen. I think we've got Warren.

It's Warren Ackerman here with SocGen. Two questions. The first one is just on Latin America. I think Jean-Marc, he kindly gave us the volumes in the first quarter in LatAm -- or might have been James, actually, 2% up in Q1. Just wondering whether you can tell us what the pricing element in LatAm was in Q1 and whether you can give us some examples of where you have taken pricing. And then just secondly, on North America, still down in volume and the value. I take your points about the comps on Hellmann's. But just wondering whether you could update us on where you think U.S. Foods market growth is and also the same thing on Personal Care in the U.S. and whether on Personal Care, can you update us on the competitive intensity that you're seeing in the U.S. I think Paul described it in Q3 last year as being slightly irrational. I think you said you've taken market share in Personal Care, but if you've got any examples of where and how much, that would be fantastic. Raoul Jean-Marc Sidney Huët: Sure, Warren. On your first question, Latin America, indeed, volume at around 2%, 2% plus; pricing is around 7% thereabout. So it's high-single digit. And it is predominantly pricing, and that's, obviously, driven by actions taken in countries like Argentina. For us, just so that you are aware, Venezuela is not material unlike for some of our competitors, but we are enthused about this 2% volume growth. And it reflects the fact that we have done well not only in Argentina but in -- also in places like Brazil. Now if you take Brazil, you know that the GDP growth outlook remains weak. You know that markets have slowed down, but we have a pretty…

So Warren, first of all, you asked about the market overall in North America. It's slightly up, but probably, we'd characterize the whole of the market as being broadly flat within that Personal Care and Home Care, better than Foods. So Foods market, certainly, are not in great shape. Actually, our own performance, despite what you may see or try and read in the numbers, is good in share terms. So we're seeing market share growth in our Dressings business and our margarine business there and in our Tea business. Of course, the issue that we have with margarine is that even though we're getting share, as Jean-Marc said earlier on, in margarine, margarine is still losing somewhat to butter, and so that's also contributing to the negative growth that we see in North America. Martin, Martin Deboo? Martin John Deboo - Investec Securities (UK), Research Division: Just 2 quick questions from me. I mean, I hear what you're saying explicitly on margin, but just one of the things that occurs to me is your 2 fastest growing categories in the quarter, it's your Home Care and Refreshment are your 2 lowest margin categories. And I'd just value some commentary on whether you think that is imposing any sort of margin mix challenge on the business in FY '14. And in Europe, I guess on one hand, I think it's a great performance in the quarter, but I'm sort of struggling to get a read on where the trend is given, though, I would imagine the Easter effect in Europe was at least 100 bps that you reported as developing markets, but also, we've got some sort of ice cream effect. So just sort of what's driving volume in Europe? And where do you think the trend is going is…

Just to say that our -- the thing that's encouraging for us, Martin, in Europe is that our competitiveness seems to have continued to improve, and that's represented by the share gains that we're making. I think our business has become more efficient and more competitive. So depending on what's happening in the markets, I think Unilever is now stronger as a competitive force in Europe. Martin John Deboo - Investec Securities (UK), Research Division: And James, quickly, Easter effect in Europe, can you touch on that?

You were right. Your assessment was correct, so broadly over 100 basis points, okay. We're going to move on now, I think, to Alain Oberhuber.

I have just a question again on the margarine business. Could you tell us how much the decline of the category was in North America, as well as in Europe? And secondly, also, what do you expect when we -- Unilever could see really a bottoming out of the decline of its margarine business? Raoul Jean-Marc Sidney Huët: Okay. So Alain, just quickly on spreads, overall, spreads is down mid-single digit, more impacted than others by Easter. So on an underlying basis, I would say minus 2, minus 3, which is an improvement from the same period last year, but we will always say once bitten, twice shy. These are early days in terms of the progress. We're gaining share, but the market itself is not increasing in growth, and this is going to, perhaps, be a bigger challenge than just increasing the share within margarine. And so I'm not going to call when it actually bottoms out, but it receives all the focus. And as we've told you at the Investor Conference, we're putting our best marketing people on the case. There are signs to be encouraged, but they're very early.

Okay, thank you, Alain. Jeremy? Jeremy Fialko.

Just a second question on Europe for you. Clearly, you've seen a bit of an improvement in Southern Europe but certainly when we look at -- you said, Northern European market, I guess particularly the U.K. and what we see in U.K. retailer, certainly in terms of the U.K. retailer, it's just that the amount of pressure from them in terms of the need for price reductions to match the discounters has increased. So can you perhaps talk about that? Would you say that conditions in Northern Europe are perhaps getting worse and, therefore, offsetting any improvements from Southern Europe? And then in relation to that, do you think that the pricing effect view [ph] of that minus 1% pricing in Q1, do you think that stays stable? Do you think there are risks that, that gets worse over the balance of the year? Raoul Jean-Marc Sidney Huët: So very quickly going through these, Jeremy, I think that the pricing will remain negative, difficult to say which direction, but let's assume for now it's stable. In terms of offsetting, in actual fact, if you take our European business, Southern Europe is a much smaller part of our business. Really, the bastion of Europe is the U.K., Netherlands, and what we called DACH, which is Germany, Austria and Switzerland. So you can't really talk about an offsetting because Northern Europe is so important. So Southern Europe is improving, but over the years, Spain and Greece have become smaller businesses, and the same goes for Italy, either through disposals or through performance. But to get to your question, yes, there is pricing pressure here in the U.K. It will not be easy for our colleague Graham [ph] in the next 9 to 12 months because the market, overall, is a difficult one. We both read the same newspapers and know the same consumers. But it's not the same story, overall, because in actual fact, I think a highlight of our results for the first 3 months is actually our performance in Germany. So again, there's not an overall trend within Northern Europe. They all remain difficult markets, but as we talk a lot about pricing pressure, that, yes, is the case everywhere, but Germany, counter to perhaps the U.K., has actually done very well.

Thank you, Jeremy. Okay, Marco?

I've got 2 small questions. The first is on the innovations' phasing throughout the year. Would you say that you started the year stronger and then it will fade a little bit throughout the year? Or haven't [ph] we seen anything yet, so to speak? The second question is on the market growth, overall. You commented that you see the market decelerating in the first quarter from about the 3%, 4% to about 2.5%. Could you update us a bit more in detail? Is that a volume slowdown of pricing? What particular region? Any color on that would be greatly appreciated. And then the final question is on -- you've commented on Ragu and on Slim.Fast. Could you highlight at what stage you are actually in now in terms of these disposals' potential? Raoul Jean-Marc Sidney Huët: Okay. So I can be very quick on the last one. No further comment except for that we are undergoing the strategic review and started that in Q1. Hence, we're talking about it now. And we'll come back to you once that review is finished, but these things don't take years. But it -- more importantly, it does round off the review that we've done for the portfolio, which has included the sale of Wish-Bone, as well as Skippy. In terms of market growth, so the -- when we're talking about 2.5%, that's value. The volume is basically flat. And if you were to go back to our Q4 results, the value was around 3%, and the volume was flat. So the decrease, if anything, is on the value rather than on the volume side. Just to recap, we see emerging markets growing at around 5%, some slowing down in South Asia, as well as Southeast Asia. That is, obviously, different to where we were 12 to 24 months ago. So this is not a recent decline, but it's a continued one. As James said, Europe is at around minus 1%. We don't expect much of a pickup. Northern Europe remains tough, although, as I mentioned, there are different stories within Europe. And while South Europe is slightly improving, it's not that important overall. Tiny pickup in the U.S., but it's from 0 to 1%. The recovery there remains very uneven. So that's where the growth rates are, value versus volume and from a regional perspective.

Innovation phasing? Raoul Jean-Marc Sidney Huët: Innovation phasing, thank you for reminding me. It's pretty even, actually, through the year. We're investing more than the same period last year. That's what we expect for the first half of the year. So if anything, there won't be a slowdown in the second half.

Thank you. Okay, it's -- Harold Thompson, I think, is on the line now.

Just 2 small follow-up questions. During your speech, Jean-Marc, you mentioned that clearly, the disposal in the U.S. kind of brought that review to an end. Was that a specific comment to the U.S. business? Or is that a comment, kind of, in a wider group perspective? I think 2 years ago, also, you mentioned that you had about EUR 500 million of turnover, which you would review. I think we've done a bit more than that. So is this comment on the disposal program in the U.S. just a U.S. focus or just a general group comment? Secondly, on your gross margins, clearly, turning that round has been very good in the last 18 months or so, and you're mentioning that 75% of your innovations are now gross-margin-enhancing. Do you think that's the right level we should be expecting going forward? Or do you think that number will remain volatile over time? Raoul Jean-Marc Sidney Huët: Thank you, Harold. So I can be very quick on the first one. Yes, it's specific to North America. On your second question, around 3 quarters feels right. Sometimes, we'll be below. Sometimes, we'll be higher. You don't want to, actually in FMCG, be too much higher. You always want to have a little bit of bandwidth to be creative, be innovative. So to be too financially disciplined is also not a good thing. The point made today is that 3 years ago, we just didn't know, but you should see, going forward, the level of around 75% to be in the ballpark.

Thank you, Harold. Richard, Richard Whitaken [ph]?

Two questions from me. First of all, on Brazil, could you talk a bit, perhaps, about what's happening in the market nowadays, what you expect -- and also especially with regards to competition in home and Personal Care categories. And the second question is, could you tell us what you're doing to offset the higher soft commodity cost especially in the developed markets? I guess, and you've alluded to, pricing is difficult, but what else are you doing? Raoul Jean-Marc Sidney Huët: Sure. Well, why don't I take Brazil? Do want to take the commodity costs, James? A couple of points. With Brazil, I think the standouts in Q1 are actually laundry and ice cream. If I take ice cream, very good growth, a lot of activation but also helped by favorable weather. If I take laundry, which, as you know, is really a spectacular business within Brazil, we continue to hold very strong leadership here. We're increasing our positions in liquids, and the dilutes are working very well alongside the concentrates; so again, despite the competitive intensity, continuing well. The same goes for household. Domestos, there called Vim, and Cif are building very well. So we're very actually pleased with the performance in Brazil of our household and Home Care business. Turning to more Personal Care, which was another part of your question; on the cleansing side, things also going well. We relaunched Lux, and that's had a good start. In oral care, if I'm not mistaken, we've launched Closeup, the Diamond Attraction - White, and that's competing well. So things are going well. And I guess the last one, we don't want to talk too much about it because we did last year, is TRESemmé continues to do well. And that's good because Seda, which is the Brazilian equivalent of Sunsilk, remains under pressure, and that's really being supported by continued growth in TRESemmé. So those are the highlights of our Brazilian business. And I think I talked about Ades in the opening remarks, so no need to add there. James?

So turning to your question on commodity cost inflation and what we're doing in the developed markets. So I just remind everybody the -- as Jean-Marc said in his speech, we're expecting commodity costs, as a whole, to be up around mid-single digits for the year as a whole, but you should keep in mind that, that has largely to do with the depreciation of currencies. In hard currencies, commodities are relatively benign. Therefore, the pressure that we're seeing in commodity costs in the developed markets is a lot less significant than it is in the developed world. So we see -- you see edible oils trending up a little bit, and dairy is trending up a bit, but it's nothing really that is so significant. And of course, offsetting all of that, we have our ongoing savings programs, which we do year in, year out under Pier Luigi Sigismondi's leadership, and that gives us the capacity, therefore, to be able to deal with the fact that the pricing pressure is so difficult in the developed markets. So hopefully, that answers your question, Richard [ph]. Okay, good. We're going to move on to Chris Wickham now.

Just 2 questions. One is just on the same sort of question we had earlier on European pricing in Germany. I was wondering if you could comment a bit more on North American pricing going forward. And the second one is just in terms of margarine and share in the category. I mean, how much is there for you to go for outside your own contribution to the category? Raoul Jean-Marc Sidney Huët: Okay. So let me just, Chris, take the first part on pricing. I think that, as we mentioned, Europe pricing, minus 1%, that trend will most likely continue through the year. In North America, we will receive some improvements through the year. There will be some pricing on the back of premiumizations and innovations, but it won't move that much from where we are today. On spreads, James?

So let me take -- it's an interesting question, how much is there to go for outside of margarines within spreads. So the answer is that the spreads market is considerably bigger than just the margarine market, so by definition, a loss. Interestingly enough, if you have a look at what we are calling mélange, which is this kind of combination of butter and margarine, the so-called spreadable butters, now you see the growth in the mélange market in the U.S. is huge. And the market is already very substantial in Europe, and we're not really playing there to any extent apart from Rama with Butter in Germany. So you're going to see from us a lot of activity in the area of mélanges particularly in Europe this year. You see that now starting to hit the market in a number of places, and we will do similar in the U.S. So it's a little bit more difficult there because the definition of a mélange in North America is different. It has to have considerably more butter in it than a mélange does in Europe, and that's a little bit more difficult for us to do from a processing point of view. So what we think, there's lots to go for, but fundamentally, as you've heard us say many times, the most important thing for us to do is to try and convince consumers that margarine isn't just great-tasting and healthy but, also, that it's a natural product. And that's something which is taking us longer to do, but that's the goal that we have set for ourselves. Is that okay, Chris?

Yes, that's great.

Okay, thank you. We've got Graham Jones on the line now. Graham? Graham Jones - Panmure Gordon & Co. plc, Research Division: It's Graham Jones from Panmure Gordon here. Just a couple of questions. Firstly, in terms of the 7.6% pricing that you reported in Latin America, how does that -- how is the sort of the competition moves on pricing? Are you comfortable that they -- your competitors have taken the same pricing action because I've seen in the past with that instance where you've taken price rises and then had to pull those back as some of your competitors have dragged their heels on price rises. And I guess that's a general question for emerging markets as a whole, where you've had to take sort of price increases to offset steep currency devaluations. That's the first question. And then the second question was just -- I wanted to go back to your comments on Russia and Thailand, where I think you said that sales were lower in Q1. I didn't know whether they were lower or slower in Q1, and whether that reflected purely a declining market, so whether you were losing market shares in Russia and Thailand as well. Raoul Jean-Marc Sidney Huët: Okay. Well, let me start with the second one. Russia and Thailand are actually declines -- they are slight declines rather than slowing down. Specifically, some more color on Russia, the good news is we've just now -- we've got the scale, and a lot of that is through the acquisitions of Kalina, Inmarko, and, to a much lesser extent, Baltimor, but we now have a good, scalable business, first point. Secondly, profitability through that scale is increasing; but as it stands right now, third point, the tough markets are really there. The currencies…

Okay. Just 2 more on the line. We've got Rosie.

Just one question from me. Could you give an update on laundry and oral care in EMs, these categories have seen an elevated competitive intensity for some time and, more recently, some relatively high-profile launches from peers? I'm just wondering how you think your business has been sort of standing up to that. Raoul Jean-Marc Sidney Huët: Sure, Rosie. Just on laundry, and then I'll let James take oral care. Absolutely, there is increased competition. We're seeing that and feeling it in South Africa, as well as Brazil, and that continues to be the case. We also see continued competition in India, as well as Vietnam. We also see new innovations by competitors in places like France and the like. So the competitive intensity remains high, has been high for a while, and it's all from the same usual suspects. So in that context, we've got good momentum in Europe, and we continue to drive the market development in liquids, capsules, conditioners. So we're happy with our performance, but the competitive intensity and, as a result, the investments required remain high. Oral care on emerging markets, James?

So our oral care business is largely a developing markets business and, of course, we were up against some very determined competitors. And I think our performance in the first quarter is very satisfactory. We see, for example, in Brazil, some of the new innovation that we brought to the market seems to be doing very well. That's the Diamond White Closeup product. In other markets, like Nigeria, we now see Procter & Gamble entering also in India, Procter & Gamble and Colgate up against us. Now I would think we're not daunted by that. Jean-Marc and I had the opportunity to have a look at the innovation plan for our oral care business earlier on in the first quarter, and it's very exciting. We're very confident that we're going to continue to make that business more and more robust. It's a category that we really like. So I'm going to move on to the last caller now. I think that's Javier Escalante, and then we're going to finish. So Javier, the last question is yours.

Jean-Marc, I think that I understand -- I mean, if I understood correctly your comment on pricing -- and I know that it's a very complicated issue because it depends on the categories, the geographies, whether it's promotions or not. But it seems that I understood that pricing would be the same as last year, right. And I would like to understand 2 places, prices in 2 places. In the U.S., you've mentioned that pricing is going to continue to be negative. What is driving that negativity, because I don't think that is the margarine issue, right? And I wonder whether this has to do with promotional activity support -- to support innovation. That is number one. The other place that I would like to understand pricing is in the Asian region. It seems like it's a little bit softer than I thought it would be. It had been much higher before, and you mentioned that there was commodity-driven inflation in those places. So what is holding back pricing there? So pricing in these 2 places. And my last -- my second question has to do with China. Could you tell us what was the actual growth in China, because L'Oreal and Procter has complained about a slowdown and it has, I believe some of them, negative growth? And is it because of the distribution push? Or is it because you are gaining share? And if you are gaining share, in which business are you gaining share? Raoul Jean-Marc Sidney Huët: Okay. Javier, thank you very much. Let me try and be succinct on these points. I'll take China first. You know that GDP has slowed from 10 plus to a new norm of around 7%. We see a stabilization at this point in time. The good news is our…

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