A notable year for Unilever and a busy year for its treasury team was capped with its win of EMEA Treasury Team of the Year 2017 in The Treasurer’s Deals of the Year Awards. This wasn’t its first win, either – in 2013, it was crowned European Team of the Year.
Consumer goods giant Unilever – best known for brands such as Dove soap, Magnum ice cream and Lipton tea – received six nominations in the new category of EMEA Treasury Team.
The company had what turned out to be a pivotal year dominated by Unilever’s response to an unsolicited bid from US rival Kraft Heinz.
The approach, which led to an immediate widening in the corporate’s secondary spreads, was ultimately unsuccessful, but prompted a full strategic review from Unilever’s board in which treasury played a key role, including determining the optimal capital structure to support future strategy.
Firmly at the heart of Unilever’s strategic thinking, treasury provided analysis, insight and experience for the board at a crucial time
Treasury was pivotal in maintaining bank relationships and retaining the A1/A+ credit ratings, which have been constant since the year 2000.
But the takeover threat was by no means the only consideration for Unilever’s treasury team last year. The company also went to the debt capital markets to issue bonds on no fewer than five separate occasions during the period.
Treasury also organised a €5bn share buyback and worked to accommodate a new financial policy of maintaining a debt/EBITDA ratio of 2x.
In addition, treasury had to arrange for the settlement of seven separate M&A transactions.
On the fundraising front, Unilever issued nearly €7bn of debt across three different currency markets and achieved a 0% coupon on a four-year euro deal.
All told, the work required a strong awareness of the capital markets and the need to be flexible.
In what some regarded as a unique set of challenging circumstances, 2017 was a very busy, but exciting, year for the company’s treasury team.
Firmly at the heart of Unilever’s strategic thinking, treasury provided analysis, insight and experience for the board at a crucial time. “Unilever’s treasury team truly delivered when it counted,” one of the nominations said.
Additionally, Unilever’s treasury team was recognised as being a key enabler of the corporate strategy, ensuring seamless and coordinated execution across the different strands – financing, risk management and M&A.
As further evidence of the team’s strong technical knowledge and ability, the central treasury function was also responsible for management of cash flows and hedging activities related to more than €50bn in revenues from more than 190 countries.
Little wonder then that Unilever’s treasury team was described as exceptional and always looking to achieve best-in-class execution with close attention to benchmarking and lessons learned from peers across the industry.
The strength of Unilever’s powerful brand name was thereby enhanced in global capital markets by the scale and volume of work the treasury team successfully undertook in 2017.
“Unilever has a world-class treasury team. The breadth of its activity this year and its successes, from fundraising to helping defend the company against a hostile bid, is testament to its skill.”
The Treasurer's Deals of the Year Awards recognise the outstanding work of treasurers, both within the treasury community and the wider business world. Through them we champion the success and achievements of treasury teams that have stood out in the market over the prior 12 months. Winning an award is a great way to strengthen your organisation's and your treasury's profile, bringing peer and industry acknowledgement. Find out more here.