Unilever Sanjiv Mehta Dec 4th 2018 My Introduction - 26 years with Unilever

5 2013 - to date 3 CMD, HUL 2007 - 2008 & EVP UL South Chairman 4 Asia UL Philippines 2008 - 2013 2 Chairman 2002 - 2006 1 UL North Africa Chairman 1992 - 2002 and Middle East UL Bangladesh Varied Functional Roles

17 years as CEO of Unilever Businesses

2 Home to 25% of world population

South Asia Multiple commonalities

India

Pakistan

Bangladesh Colonial history Cricket Sri Lanka

Nepal

30+ Languages 8+ Religions Food and spices Big festivals

3 Huge headroom to grow

Large millennial population Low FMCG consumption Fast growing region

Real GDP growth % population Median South Asia $29 Countries below 24 Age# South Asia GDP years# growth relative Indonesia $58 2x to world 45% 28 China $120 52% 24 Improved Ease of doing business 46% 27 rankings** FMCG Consumption per capita* +23 +11 +1 +11 38% 33

# Source: CIA Factbook * Source: Nielsen ** 2019 movement vs 2018 4 AV : South Asian consumers

5 Unilever’s 130+ years of presence in South Asia

Unilever Indian subsidiaries Sunlight soap Nepal set up Unilever Sri Lanka consolidated under introduced as HLL’s increases stake in operations Hindustan Lever to subsidiary HUL to 67% begin Limited

1888 1931 1938 1948 1956 1971 1992 2007 2013 2018

Unilever sets HLL renamed as Unilever Unilever HUL market cap up subsidiary “Hindustan Bangladesh crosses $50bn in India incorporated carved out Unilever Limited”

6 Largest FMCG company in each of the countries

80% Revenue from categories with Great fusion of global and local brands No.1 market position Global Local

Skin Cleansing 1 1 1 1

Face Care 1 1 1 1

Hair Care 1 1 1 1

Hand & Body 1 1 1 1

Toothpaste 2 1 1

Laundry 1 1 1 1

Household Care 1 1

Tea 1 2 2

Ketchup 1

Noodles 1

Not Tracked

Market share is as of MAT Sep’18 7 Unilever South Asia performance – Last 10 years

Double digit topline growth Robust margin* expansion Broad based sales growth

Turnover growth Sri Lanka Nepal Bangladesh

11% + 500 bps Pakistan 10 years India CAGR

6% 10% 14% 14% 9% 14%

2007 2017 UVG 10 years CAGR

All numbers based on internal management reporting * Underlying Operating Margin 8 INDIA’S LARGEST FMCG COMPANY

9 Hindustan Unilever Limited : €4.5bn powerhouse

HUL performance Our footprint Recognition

‘Dream Employer’ for 9 10% CAGR over years in a row among 10 years* top Indian universities Nearly every household uses one or more of our brands 530 bps EBIT improvement #8 Globally and #1 in India

Among the top 5 most Our brands are valuable companies in available in India with market cap 8mn+ stores 13 HUL brands of $51b** in India’s Top 50 Most Trusted Brands

*HUL performance as per India local reporting 10 ** Market capitalization converted to USD based on rate as of 22nd Nov 2018 Consistent high performance across Divisions

A few examples in the last 6 years

Beauty & Personal Care Home Care Foods & Refreshment*

Hair Fabric Solutions Tea

Turnover Market Share Turnover Profitability Turnover Profitability

1.9x ~ 700 bps 1.8x 3.7x 1.8x 2.0x

Largest Beauty & Personal Care Largest Home Care Largest Tea company in India company in India company in India

*On completion of merger with GSKCH, our F&R business will become one of the largest in the country 11 All nos are basis internal management reporting & compared with FY’11-12. Market share increase is as of MAT Sep’18 Our strategy is anchored around..

Growth Underpinned by Unilever Sustainable Living Plan

Consistent, Competitive, Profitable, Responsible Growth

12 Strategy in action

Building Blocks

Strengthening Creating categories Driving Fuel for Execution the Core of future premiumization growth Excellence

Enabled by

Structure Capabilities Culture

Being Future Fit 13 Strategy in action

Building Blocks

Strengthening Creating categories Driving Fuel for Execution the Core of future premiumization growth Excellence

Enabled by

Structure Capabilities Culture

Being Future Fit 14 Our Core portfolio

Straddling the price-benefit pyramid For e.g. Hair

Rs. 432 ($5) High end naturals

Salon care

Anti-dandruff

Daily damage care

Mass beauty

Sachet at Re.1 Family (1.5 US cents)

15 Strengthening the Core

Making the Core more Constantly innovating Focused SKUs at Focus on driving aspirational through and renovating deaveraged level penetration & purpose led brands the Core using local insights weighted distribution

16 Building iconic engagement platforms

Lakmé Fashion Week Fair & Lovely Foundation Lifebuoy Help a child reach 5 Lux Golden Rose Awards

Red Label taste of Rin Career Academy Surf Excel Haar ko Harao togetherness Kissan Tiffin Time Table

17 Innovations driving our growth

18 Our Market development portfolio

Nascent categories penetration

Hand Wash* 22

Instant Coffee

Face Wash

Body Lotion

Washing Liquids

Hair Conditioner

Soups*

Dishwash Liquids

Body Wash* 2

19 Source: IMRB As of MAT Aug’18 (Urban + Rural) ; *Urban only. Creating categories of the future

Market development model Driving category penetration

Growing at ~ 2x of 20% HUL average of Business SEED ACCELERATE EXPLODE

Doubled in size in the last 5 years 2.2 x

UPTO 10% 10% TO 20% 20% AND ABOVE

CATEGORY PENETRATION 200 million consumer contacts

20 Leading with trends

Naturals Perfume on the go Fabric sensations

Male grooming Health Reinvent Indian look

21 Driving Premiumization

Market growing faster in the premium segment Example : Fabric Solutions

HUL share HUL share 2017 Price of segment* of segment*

Premium 28% 1.3x Premium 3.0x 3.5x

Mid 39% 1.2x Mid 1.5x 2.0x

Mass 33% x Mass x x

*Source: Nielsen MAT Sep’18 (Urban + Rural) 22 Fuel for growth

End-to-end cost focus Powered by Savings

1.7x

Non Material Materials Supply Chain Costs x

Return on Marketing Overheads Investments 2014 2015 2016 2017 % of Turnover

Organization wide Crowd sourcing of Driving virtuous effort ideas cycle of growth

23 Execution excellence

Agile Supply Chain Front end execution Speed to market

Inventory days Service 1.8x x

0.6x x Effective Faster landing of 55 x +1000bps 0.94 innovations 0.92 Coverage*

50 0.9 2015 2018 2015 2018 0.88 45 No. of days 0.86

0.84 40 0.7x 1.7x 0.82 Art of pricing 0.8 35

0.78 x Assortment

30 0.76 2015 2018 2015 2018

Driving high customer service Leveraging analytics to drive better while optimizing inventory coverage and sharper assortment

* Effective coverage is measured as no. of outlets with monthly average billing >INR 500 ($7.0); 2018 nos are as of Oct’18 24 India is a heterogenous country

Diverse Varied affluence Different media Differential category demographics levels habits adoption

Multiple languages LSM 7+ = 8% nationally Mobile internet penetration: Penetration in adjacent 8 Major religions (Range of 5-48%) Rural- 18%*; Urban- 59%* states also not the same

*A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB: March’18 25 Customer Development

Sharper strategy leveraging Traditional trade channels Building channels of the ecosystem will remain relevant the future

Demand Capture Wholesale Right outlets, Right Aids  Width of frequency, Right distribution assortment Modern Trade - Driving visibility

Retail Demand Fulfill Accessibility at On time delivery at arm’s reach of optimal cost desire Explode Ecommerce - Partnerships Demand Generate Shakti and exclusive ranges World class in store Deep rural execution distribution Growth and profitability in E-Com > Modern Trade > Traditional Trade

26 Strategy in action

Building Blocks

Strengthening Creating Categories Driving Fuel for Execution the Core of future premiumization growth Excellence

Enabled by

Structure Capabilities Culture

Being Future Fit 27 Winning in Many

WiMI in action

From 4 branches to Distinctive strategy 14 consumer at a cluster level clusters

Empowered Cluster Customized product Heads enabling propositions & faster decision media deployment making closest to for every cluster the point of action

WiMI is a competitive edge for HUL

28 Winning in Many Indias – few examples

Proposition in face care Pricing and proposition in fabric solutions Product in Refreshment

Low penetration markets Uttar Tamil and Pradesh Nadu Karnataka

Grow by removing barriers Majority mass Majority mid of proxy usage Designed for color and Other markets taste preference

Upgradation through Upgradation through mid and premium bars top end formats – Leverage by increasing and powders Matic liquids usage occasions 29 C4G in action

Country Category Business Team : 15 Mini – Boards

Functions in a CCBT Empowered to More consumer & Land bigger, faster deliver in-year P&L customer centric innovations

Liberating HUL Leadership Team to focus on longer term goals, Merger of brand building exploring inorganic growth opportunities and managing disruptions and brand development

30 Digital trends shaping India

Rise of vernacular Exponential data growth content

Rapidly evolving digital Rs. 205/GB infrastructure in 2016 Plummeting data costs driving 480+ million internet increased usage rd users with more (4 hours video per day) 3 largest start-up mobile viewers Rs. 19/GB ecosystem in the world in 2017

Data Sources: Decoding Digital Impact; 2017 Report by BCG & Google; YT data extracted in April 2018 31 Kantar IMRB Internet Report 2016, 2017; 2017 KPMG Google Report on Indian Languages – Defining India’s Internet Leading the disruption along our value chain

AI Augmented Digital Factory Robotics Automation @ Digitization of Stores Precision Marketing Decision Making & Robotics Warehouses

Distribution Store Consumers Performance Factory Center Distributor Management

B2B Model and assured N+1 Delivery

Harnessing the power of ‘Data as an enterprise asset’

32 Winning culture: Focus on Wellbeing, Diversity & Inclusion

Nurturing an Building an Inclusive experimentation culture Workplace Holistic Wellbeing

+1200 bps Distinctive Technology giving Competitive Advantage improvement in gender balance

Embracing inclusion beyond Consumer Appropriate Need/ Unmet Large Part gender and Problem of the Value breaking Chain stereotypes People with Physical and purpose mental wellbeing

33 UNILEVER SUSTAINABLE LIVING PLAN Unilever Sustainable Living Plan

Health & Wellbeing Sustainable Sourcing Enhancing Livelihoods Thought Leadership

90,000+ Shakti 450 billion 100% tomatoes entrepreneurs litres are sourced from network sustainable of water saving sources potential created 1.7 million people >67 million people reached - benefitted Lifebuoy Handwashing 100% of our Programme plastics 52% tea is Over 420,000 83 billion litres of safe packaging to sourced from people trained drinking water provided by be reusable, estates Pureit recyclable or certified as compostable sustainable ~1.1 million people impacted 600,000+ women by 2025 through Domex Toilet enrolled Academy

35 AV : USLP in action

36 Key Messages

• Unilever has a rich history and deep heritage in South Asia spanning over 100 years

• South Asia has huge headroom to grow being home to the largest millennial population, growing affluence, rising urbanization and burgeoning digital connectivity

• Unilever has strong business in South Asia and a clear and compelling strategy across divisions

• We are future proofing our business through market development, agile organization structures and building distinctive capabilities across the value chain leveraging data and technology

• USLP continues to be our key differentiator

37 Unilever South Asia Sanjiv Mehta Dec 4th 2018