Unilever Investor Event Rohit Jawa, Head of Unilever Philippines Manila, 30th November 2015 Philippines: The Country 22% 100M Daily Wage Earners
Population 2.4M 23 Overseas Filipino Workers (OFW) Median Age (Youngest in SEA) 1M 93% Outsourcing Employees Simple Literacy Rate 45% 6.5% Urban-dwellers Unemployment Rate 44 M 25% Active internet Poverty Incidence users inc. mobile Philippines: Strong Consumption Story
Sustained GDP and Strong Macroeconomic Significant Market Consumption Growth Fundamentals Development Opportunities
. Low Inflation
7% 7% . Current Accounts Surplus 6% 6% 6% 6% 5% 5% 1.7x . Relatively Stable Forex
2012 2013 2014 2015 . Decreasing Debt to GDP GDP Consumption 2010 2020
Source: Philippine Statistics Authority Source: Central Bank of the Philippines Source: Unilever Philippines Living Standard Measure Unilever in the Philippines: Positioned to Win
Deep Local Roots Wide Distributive Reach #1 or #2 in 80% of Portfolio
75% Controlled Coverage #1 #2
100% Dressings 75%80% Hair 60% Fab Clean
40% Ice Fab Con Savoury Cream 20% Face
0% Oral Market Weighted Value 88 year heritage 0 200 360400 600 800 1000 Deos Established 1927 No. of Outlets ('000) Unilever Philippines: 4G Growth Model
Consistent Competitive Profitable Sustainable
Business Winning Share USLP embedded in our brands and operations 7% CAGR €1B Margin: +100 bps 75% avg. increase last 10 years
2005 2010 2015 Turnover 2013 2014 2015
*at current PHP:EUR exchange rate Unilever Philippines: Landing Global Category Choices
Personal Care Home Care Foods Ice Cream
Gross Margin FabClean Volume Growth Return on Invested Capital helped by Premium PC Profit before Overheads
CAGR = 8.0% 1.9x +300bps +1240bps
2013 2015 2013 2015 2013 2015 2013 2015 Grow Volumes through Improve Capital Build Premium Mixes Step-up Profitability Market Development Productivity Accelerating 4G growth in the Philippines
UNILEVER COMPASS
Winning with Global Brands with Play Good, Better, Fill White Spaces Step Up Digital Local Relevance Best Brands & Innovation
Drive Penetration Growth More Stores, Better Stores, Expand in New Geographies Winning in the Better Served and Channels Marketplace
Winning through Simplify with Project Half More with Less Continuous Improvement
Strong Talent Bench Employer of Choice Empowered Culture Winning with People
USLP FOR GROWTH Accelerating 4G growth in the Philippines
UNILEVER COMPASS
Winning with Global Brands with Play Good, Better, Fill White Spaces Step Up Digital Local Relevance Best Brands & Innovation Winning with Brands and Innovation Global Brands with Local Relevance
#1 Shampoo Variant #1 Fabric Cleaning SKU 90% of Tamarind Dishes Winning withToni Brands & Guy and Innovation Play Good, Better, Best 300 250 Magnum Hair Ice Cream – Impulse 250 300 200 Toni & Guy 200 Magnum 250 250
150 Tresemme 150 Dove for Men 200 Cornetto Disc 200 Dove Clear 100 Cornetto Core 150 100 Pinipig Sunsilk Cornetto Disc 150 VaselineTresemme 50 Sticks Dove for Men 100 Cornetto Core 50 Dove Pinipig Clear 0 SPI 50 100 SPI Sticks Sunsilk Vaseline 0
50 SPI SPI Winning with Brands and Innovation Fill White Spaces
Enter New Categories Future Proof with Adjacencies
Post Wash Male Grooming Toilet Care Skin Cleansing Dishwash Winning with Brands and Innovation Step up Digital
Reach Content Data
More than half of brands with Reach >30%
70% Share of Impressions
96% of Assets Mobile-enabled
* Based on Q3 2015 metrics Accelerating 4G growth in the Philippines
UNILEVER COMPASS
Winning with Global Brands with Play Good, Better, Fill White Spaces Step Up Digital Local Relevance Best Brands & Innovation
Drive Penetration Growth More Stores, Better Stores, Expand in New Geographies Winning in the Better Served and Channels Marketplace Winning in the Marketplace Drive Penetration Growth
Core of the Core More Users Mental and Physical Availability
Top 10% SKU = 50% Turnover 93% of Core Brands growing in Penetration vs PY
75% Brand Equity scores gaining
67% SKUs increased distribution Double digit Core of Core growth
*from Unilever Core brand tracking NIS – Numeric In Stock SSS – Sari-Sari Stores (Mom & Pop Stores) Winning in the Marketplace More Stores, Better Stores, Better Served
Reach Expansion Market to Shopper Supported by Technology
Knorr Dove Meal Station Masterbrand 401K360k 1.7x
212K210k
OUTLET MAPPING
2012 2015 No. of Stores 40% increase in Promoters Sustained Double-digit Growth in investment Small Stores Sales Winning in the Marketplace Expand in New Geographies and Channels
Outer Islands Drug & Dept Channel Proximity Channel
Growth = 1.3x Growth = 1.2x Growth = 2.0x
*Growth vs Unilever Philippines Average Accelerating 4G growth in the Philippines
UNILEVER COMPASS
Winning with Global Brands with Play Good, Better, Fill White Spaces Step Up Digital Local Relevance Best Brands & Innovation
Drive Penetration Growth More Stores, Better Stores, Expand in New Geographies Winning in the Better Served and Channels Marketplace
Winning through Simplify with Project Half More with Less Continuous Improvement Winning through Continuous Improvement Simplify with Project Half
Fewer SKUs Fewer, Bigger Activations Leaner Organisation
Average Project Size Local Overheads 30% Reduction Incremental Turnover % of Turnover
+60%
+110bps Reduction over 3 years Winning through Continuous Improvement More with Less
Return on Marketing Supply Chain Cost Driving Cash Investment
2012 to 2015 2012 2015
5% +260bps 2x - 4 - 31 Marketing spend Materials cost Non-materials savings from 2013 days days savings p.a. cost improvement
Working Capital Accelerating 4G growth in the Philippines
UNILEVER COMPASS
Winning with Global Brands with Play Good, Better, Fill White Spaces Step Up Digital Local Relevance Best Brands & Innovation
Drive Penetration Growth More Stores, Better Stores, Expand in New Geographies Winning in the Better Served and Channels Marketplace
Winning through Simplify with Project Half More with Less Continuous Improvement
Strong Talent Bench Employer of Choice Empowered Culture Winning with People Winning with People Build Talent
Strong Talent Bench Employer of Choice Empowered Culture
• Bias for Action 76% Score High Potential Global Filipino List Cover Talents (Top Unilever Quartile) 100% • Strong Collaboration WL4 1 = 5
125% WL3 = 24 23
85% WL2 = 127 45
Ranked in the Top 3 in the past 3 years Source: Unilever Global People Survey Accelerating 4G growth in the Philippines
UNILEVER COMPASS
Winning with Global Brands with Play Good, Better, Fill White Spaces Step Up Digital Local Relevance Best Brands & Innovation
Drive Penetration Growth More Stores, Better Stores, Expand in New Geographies Winning in the Better Served and Channels Marketplace
Winning through Simplify with Project Half More with Less Continuous Improvement
Strong Talent Bench Employer of Choice Empowered Culture Winning with People
USLP FOR GROWTH Sustainable Growth Doing Well and Doing Good
Health and Well-being Environment Livelihood
2010 to 2014 Reduction*
-47%
-32% 12th Year 600,000 kids nourished 1,500 door-to-door resellers 500 Perfect Communities
* from Manufacturing Operations Unilever Philippines : Conclusion
Sharper Category choices Compass
Winning with Brands & Philippines: A Strong Consumption Story Innovation Unilever Philippines: Positioned to Win Winning in the Marketplace Clear Portfolio Choices 4G Delivery – Consistent, Competitive, Winning through Continuous Profitable and Sustainable Growth Improvement Compass Growth Model to Win Winning with People
Sustainable Living: More growth, Lower costs, Less risk, More trust USLP IN ACTION BUILDING GLOCAL BRANDS WITH KNORR AGILITY & COST
Margin: +100 bps avg. increase last 10 years