Unilever in Russia

Antoine de Saint-Affrique, GVP Central & Eastern Herman Verstraeten, President Russia JP Morgan Investor Conference, Moscow 16 May 2008

Safe harbour statement

This presentation 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 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results, including financial objectives to 2010, 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 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, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. 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 the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this presentation Agenda

• Unilever’s D&E strategy

• Building a stronger business in CEE

• Outpacing the market in Russia

• Questions & Answers

Agenda

• Unilever’s D&E strategy

• Building a stronger business in CEE

• Outpacing the market in Russia

• Questions & Answers Unilever’s strategic priorities

Personal D&E Vitality Care

GDP of D&E countries has already eclipsed the Developed world

GDP $trillion (at PPP exchange rates) 10.8 30

20 33.8 31.9

10

0 Developed D&E CAGR 2007-2010e 2.5% 6.8% New consumers

1 billion new consumers in the next ten years

The D&E opportunity

Population in 2007 (billions)

Have lots 0.5

Haves 2.6

Not yets 2.6 Unilever in D&E

As % of Unilever total turnover 2004 2007

Other Other developed D&E developed 26% 36% 24% D&E 44%

Western Western Europe Europe 38% 32%

Profitable growth

Operating margin before RDIs 2007

Unilever average

Developed D&E D&E excl. Russia & Agenda

• Unilever’s D&E strategy

• Building a stronger business in CEE

• Outpacing the market in Russia

• Questions & Answers

Unilever in CEE

An early entrant in the region

Strong category positions in key countries

Brands sold in total of 20 countries

4 multi country organisations

Strong local management Strong, sustained GDP growth

Real GDP growth % 2006 2007-2011

CEE has same GDP • Western Europeas China 2.8 2.3

• CEE 6.3 5.5

Source : Economist Intelligence Unit 2007

A rapidly increasing middle class

Segmentation by Economic Class in Russia

100%

90%

80% x 2!

70% LSM6 60% LSM5 LSM4 50% LSM3 40% LSM2 LSM1 30%

20%

10%

0% 2003 2008 Opportunities for market development

Annual per capita consumption (EUR)

Deo EUR / Capita Shower Gel EUR / Capita 8.0 7.1 8.0 7.0 6.1 7.0 6.8 6.0 6.0 5.0 4.6 5.0 4.0 3.3 2.8 4.0 3.6 3.0 3.0 2.0 1.6 1.3 2.0 1.6 1.0 0.7 1.0 0.4 0.5 0.0 0.0 Brazil Russia USA Brazil Ukraine Russia Poland Germany USA

Source: GMI1/Statistical Offices

Conversion opportunities in foods

Packaged foods Non 39% packaged foods 61%

Source: Unilever CMI estimates % of Foods market in Russia Unilever CEE by Geography

Russia, Ukraine, Belarus c30%

Poland & Baltics c30% The Balkans c15%

Central Europe c25%

Unilever CEE by Category

Ice Cream and Beverages c20%

Home Care Personal Care c10% c30%

Savoury, Dressings and Spreads c40% Strong market positions across the region

Russia Poland Czechia Romania

Skin Cleansing #2 #2 #1 #1 #2 Hand and Body Care #3 #2 #2 Hair #2

Deo #1 #2 #1 #1 Household Care #2 #1 #1 #2 #1

Savoury #3 #1 #1 #2 #1

Dressings #1 #1 #1 #1

Spreads #1 #1 #1 #1 #1

Ice Cream #1 #1 #1 #1

Source: GMI1 (MAT 2008 February)

What we’ve done well

• Portfolio across the consumer pyramid

• Capability to build markets

• Winning with Customers

• Local roots Differentiated brand portfolio

Spreads Hungary

Differentiated portfolio with brands

Pyramid bags

Tea bags

Packet tea

Lipton Tea Russia Building markets – driving penetration

Mayonnaise pouch Deo ministicks Mini cubes

Driving penetration profitably

Conventional Cost + Margin = Price

Reverse Engineering Affordable Unit Price – Margin = Target Cost Building markets – trading up

Staple surface cleaner Triggers

Staple bleach Premium bleach

Winning with Customers

Best supplier 2007

Best customer service 2007 Poland

5 Mia Piac (Hungary) awards for best launches

4 PIATA awards in Romania in 2007

OPERATIONAL EXCELLENCE PARTNER FOR VITALITY DOING WELL BY DOING GOOD Claim resolution delay - Poland Unilever’s local roots

Our heritage and local expertise mean that D&E is in our DNA

• Understanding of the local consumer • Brands and products across a wide range of income levels • Critical mass on the ground • Corporate reputation with local stakeholders and talent pool

Local roots

Local talent meeting local needs

• A long standing Unilever tradition • Growing local talents

• Leading to a strong local pool of talents • 34 expatriates out of over 8000 employees • CEE as a net exporter of talents to Unilever : 65

• Market recognition • Consistently within the top 3 employers in Hungary and Poland • Chairwomen of SCE elected Business women of the year in 2007. • Personal prime minister award to the CE Sales Director • In the top Head Hunter targets, across the region What’s changed

• Increased global leverage

• Sharper strategic clarity

• Enhanced operational excellence

• Doing well by doing good

Global Innovation: Clear Global brands, local activation

Bom Chicka songs & video clip

TV Print

Trade Radio

Internet PR

Bom Chicka Events • The best integrated campaign Sponsorship Devergo summer • Creative local execution collection

Advertising: Knorr Leveraging scale

Driving growth and margin

• One Unilever

• Shared services and outsourcing

• Simplification and country clustering

• Global and regional buying

• Supply chain efficiency

Strategic choices: Investing to win in Russia

• Priority status: 5 year growth plan • Increased capabilities in Moscow •Innovation •CEE headquarter • Step-up in marketing investment • Priority allocation of talent Strategic choices: Investing to grow the Deo category

GROW MARKET

GROW SHARE

annualised

Operational excellence: in-store activation Operation excellence: aggressive shelf management

Doing well by doing good

Nutrition Hygiene

in Poland for

Women’s empowerment Sustainability KIDS Outpacing the market in Russia Accelerating change

Strategic choices: Investing to win in Russia

• Priority status: 5 year growth plan • Increased capabilities in Moscow •Innovation •CEE headquarter • Step-up in marketing investment • Priority allocation of talent A healthy base, and a great potential

Skin Cleansing #2 • Total € 5 bln market (all categories) H&B #3

Hair #2 • Growing at 8% in 2007

Deo #1 • Strong potential for appreciation:

HHC #2 ¾ Penetration / conversion (e.g. tea)

Savoury #3 ¾ Repeat (e.g. deodorants)

Dressings #1 ¾ Value (e.g. dressings)

SCC #1 • Opportunity for consolidation

IceCream #1

Source: GMI1 (MAT 2008 February)

Our growth strategy for Russia

Delivering sustainable value in Russia:

¾ Building leadership in large categories

¾ Trading markets up, working the consumer pyramid

¾ Building capabilities as a competitive advantage

Do it all consistently: excellent execution Our growth strategy for Russia

Delivering sustainable value in Russia:

¾ Building leadership in large categories

¾ Trading markets up, working the consumer pyramid

¾ Building capabilities as a competitive advantage

Do it all consistently: excellent execution

Driving for category leadership

Since 2001 Unilever more than doubled value market share

90% where it competes in Home & Personal Care (8% to 18%)

81% 80% 81%80%80% 80% 79% 80%80% 80% 79%79%80% 80%80% 80%80%80% 78% 79%79%79% 79% 79%78% 80% 78%78%78% 78%77% 78% 74%75% 73%73% 71% 70% 67% 70% 66%67%66% 65%66% 7% 7% 6% 6% 6% 6% 5% 5% 6% 7% 7% 7% 7% 7% 7% 6% 6% 5% 6% 5% 6% 6% 7% 6% 5% 5% 6% 6% 6% 6% 6% 60% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 6% 6% 5% 5% 5% 8% 7% 6% 6% 5% 5% 5% 5% 5% 5% 8% 5% 4% 4% 4% 9% 8% 8% 8% 5% 8% 8% 8% 9% 10% 11% 4% 4% 4% 4% 8% 12% 12% 11% 50% 4% 5% 8% 13% 14% 12% 13% 12% 12% 12% 12% 11%11% 13% 12% 12% 13% 13% 13% 13% 13% 13% 5% 6% 8% 13% 13% 5% 7% 13% 5% 5% 13% 13% 13% 13% 13% 13% 13% 14% 8% 14% 8% 8% 8% 40% 8% 8% 8% 8% 8% 8% 8% 8% 14% 8% 8% 7% 8% 8% 7% 8% 13% 13% 13% 8% 8% 8% 8% 14% 14% 9% 8% 13% 14% 8% 8% 8% 8% 8% 7% 8% 8% 8% 30% 7% 5% 6% 7% 19% 19% 4% 6% 19% 19% 18%18% 5% 6% 6% 18% 19% 19% 19% 19% 19% 19% 19% 19% 19% 19% 17% 19% 19% 18% 18% 17% 18% 19% 17% 17% 17% 17% 20% 18% 19% 18% 17% 17% 17% 17% 17% 16% 16% 16% 16% 15% 15%

10% 16% 16% 16% 16% 16% 16% 16% 16% 17% 18% 18% 17%18% 14% 14% 14% 15% 15% 15% 16% 15% 15% 15% 15% 16% 12% 13% 13% 13% 9% 10% 10% 10% 11% 11% 8% 8% 8% 9% 8% 7% 8% 9% 0% JF MA MJ JA SO ND JF MA MJ JA SO ND JF MA MJ JA SO ND JF MA MJ JA SO ND JF MA MJ JA SO ND JF MA MJ JA SO ND JF MA MJ JA SO ND JF 2001 2001 2001 2001 2001 2001 2002 2002 2002 2002 2002 2002 2003 2003 2003 2003 2003 2003 2004 2004 2004 2004 2004 2004 2005 2005 2005 2005 2005 2005 2006 2006 2006 2006 2006 2006 2007 2007 2007 2007 2007 2007 2008

UNILEVER P & G COLGATE PALMOLIVE SCHWARZKOPF/HENKEL* **BEIERSDORF L'OREAL GILLETTE INTERNATIONAL Top Producers Value Shares in 6 categories, 24 largest cities: •Trend breaks due to databases restatement Deodorants, Shampoo, Hair Conditioners & Treatments, Liquid PW, Bar Soaps, HHC Grow the category: deodorants education campaign

POS

Metro / T Transport V

Beauty Salons PR

Malls

Don’t let Body Odor undermine your Beauty We recognize Beauty is the most important driver for women in Russia and build on Beauty insight to introduce deodorants to everyday Beauty routine of a Russian woman.

Grow the deo category: deploying the global Axe brand

On-going engaging of young guys into the Axe world in appealing and relevant way is the key strategic pillar for Axe and the basis of the brand’s success in Russia Drive category value: global Clear hair care innovation

Drive category value: Clear with superior anti-dandruff technology

16

14

12

10

8

6

4

2

0 JF 07 MA 07 MJ 07 JA 07 SO 07 ND 07 JF 08

Clear Head&Shoulders Pantene Els e ve Fructis Gliss Kur

Clear gained 63% weighted distribution during 10 month period and reached the target. Value share has reached 4.3% within a year, while market leader H&S is at 13% Building leadership in dressings: changing the rules of the game

Dressings market shares in Russia

TOTAL UNILEVER 12.9

TOTAL BALTIMOR 10.4 TOTAL GK SOLNECHNYE PRODUKTY 8.7 TOTAL EFKO 8.6 TOTAL GK NIZHEGORODSKIY 8.6 TOTAL HEINZ-PETROSOUZ 7.5

TOTAL ESSEN PRODAKSHN 6.7 TOTAL SKIT 5.4 TOTAL KAZANSKIY ZHIROVOY K-T 5.0 TOTAL TORCHIN 0.9

02468101214

Nielsen Retail Audit data 24 Cities, MAT DJ 2008 Total Dressings = Mayo + Ketchup + MF Sauces + Salad Dressings + Hot Sauces + Mustard + Vinegar

Dressings: changing the rules of the game

First in the market to introduce Ketchup New Innovative Doy Pack Packaging in 1999 Packaging Introduction 2006

25 000

20 000 Tons

17000 15 000 14000 +54% ons T 10 000 11000 8000 5 000 5000 0 2000 1997 1998 1999 2000 2001 2002 2004 2005 2006 2007 Mayo sales in volume Ketchup sales in volume

Internal sales Dressings: changing the rules of the game

Developing the Light Mayonnaise Segment

Light Mayo Market (value)

Others Calve Light 36% 51%

MrRicco Light 13%

Nielsen retail audit, urban Russia market

Dressings: changing the rules of the game

Developing Functional Segments

New Becel Mayonnaise • Rich in Omega 3&6, heart healthy oils • Rich in folic acid, vitamins B6 and B12 • Low in saturated fats • No cholesterol

Help keep your heart healthy Extend category footprint: Inmarko acquisition

Our growth strategy for Russia

Delivering sustainable value in Russia:

¾ Building leadership in large categories

¾ Trading markets up, working the consumer pyramid

¾ Building capabilities as a competitive advantage

Do it all consistently: excellent execution Trading the tea market up: migrating to a more profitable segment

Value composition – urban Russian tea market

100%

80% 37.6 34.9 48.4 43.7

60%

40% 62.4 65.1 51.6 56.3 20%

0% 2005 2006 2007 DJ-FM 2008

Total Teabags Total Loose

Nielsen retail audit, urban Russia market

Beseda in the tea market: adding consumer value in the economy segment

Beseda: MAT turnover trend Jan 2007 – March 2008

Beseda Monthly Moving Average Trend

1 900.0

1 850.0

1 800.0

1 750.0

1 700.0

1 650.0 Turnover '000 Euros 1 600.0

1 550.0

1 500.0

1 450.0 J'07 F'07 M'07 A'07 M'07 J'07 J'07 A'07 S'07 O'07 N'07 D'07 J'08 F'08 M'08

* Source: Unilever shipment data Lipton in the tea market: launching premium pyramid tea bags (#1 in 2008)

Our growth strategy for Russia

Delivering sustainable value in Russia:

¾ Building leadership in large categories

¾ Trading markets up, working the consumer pyramid

¾ Building capabilities as a competitive advantage

Do it all consistently: excellent execution Developing capabilities: Create a sustainable edge

Capabilities to enable excellence in execution

• Win With Customers

• Flexible and responsive supply chain

• Talent management

Win With Customers: Control the route-to-market

Focus on: • reach and availability: highest weighted numerical distribution across categories • route-to-market control: through in-depth understanding of the distribution value chain, at national and local levels

Logistics Point of UL Key Accounts provider Purchase

Point of UL Distributor Modern Trade Retailer Purchase

General Trade/ Point of UL Distributor Open Markets retailer Purchase

Whole- General Trade/ Point of UL Distributor* saler Open Market retailer Purchase Win With Customers: Enhance focus and grip on execution

1. What are we trying Improved Business Performance to achieve? Market share and + CM investment TO growth efficiency 2.What?

Availability Quality of shelf Promotion Speed to shelf

Relevant On-shelf Share of Off shelf promo New items Assortment Availability category shelf execution introduction Listing of (pallets, OSA Must SKUs gondolas..)

3.How? In Store checking through a 3rd party 50% of KA and top 50 universe checked monthly

One consolidated Scorecard

Bonuses of sales linked to measured KPIs

Win With Customers: Faster and better in-store execution

Bryansk

Murmansk Saratov

86% of outlets within 2 weeks of sales! Flexible and responsive supply chain: Building competitive edge

Flexible and responsive supply chain: On-shore production capabilities

• On-shoring strategy • 4 local manufacturing sites • Close 100% of foods volumes • Significant share of HPC volumes • Export to markets outside Russia

• Invest in advanced technology • Pyramid tea bags • Roll-on deodorants

• Focus on customer service Flexible and responsive supply chain: Availability in “one day’s reach”

12 Regional Distribution Centers (RDCs)

. UKRAINE RUSSIA

.

One day’s reach (400km radius) 1,000 Km

Talent Management: Competitiveness through people

100 90 •A local talent base: % 78 F 80 73 a 70 62 • 40% of Board is local v o 60 u 50 • A total of 10 expatriates, r 40 a of which 3 from CEE b 30 l 20 e 10 •A sound capability retain: 0 Employe Engagement Index • 2007 turnover rates below market average Unilever RUB External Overall Norm Best in Class Norm 100 % • Strong people surveys 90 F a 80 73 71 v 70 64 • As a result of: o 60 u 50 • In market success r 40 a 30 b 20 • Creative approach to l 10 e talent development 0 • Unilever reputation / Immediate Boss Effectiveness Index know-how Unilever RUB External Overall Norm Best in Class N Talent Management: Developing great business leaders

Unilever Russia Academy

• High potential development

• Focused special development program

• 2-year executive program

• Developed and delivered in partnership with Darden School of Business

Talent Management: Diversity as a competitive advantage

Senior management in Russia (45 FTE):

• Locals vs. expats – 35 locals – 10 expats

• Nationality – 11 different nationalities • Gender – 15 women – 30 men • Internal vs. external – 37 internal – 8 externally recruited in the past 5 years Outpacing the market in Russia

Delivering sustainable value in Russia:

¾ Building leadership in large categories

¾ Trading markets up, working the consumer pyramid

¾ Building capabilities as a competitive advantage

Do it all consistently: excellent execution