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08 Citi Group SRI Conference June 23 08 “Doing well by doing good” Unilever’s Integrated Approach to Responsible Business Practice and Sustainability London & Paris June 2008 Gavin Neath CBE: Senior Vice President Communications 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 Unilever is a global company with operations in over 100 countries 1 1 We market a broad range of brands covering food, home & personal care products 2 Many of these have strong market positions. 13 have annual revenues of over $1 billion Foods Home & Personal Care Savoury Mass Skin Deodorants Spreads World Number 1 Daily Hair Care Dressings World Number 2 Oral Care Local strength Tea Laundry Ice Cream Household Cleaning The Billion Dollar Brands 3 3 2 Our brands are sold in nearly every country and are present in half the households on the planet 4 We have deep roots in the developing world… 1911 1918 China Cote 1888 1918 d’Ivoire India Nigeria 1918 Ghana 1929 Kenya 1910 Congo 1930 Brazil 1933 Indonesia 1903 South Africa 5 3 ….which today accounts for 44% of our sales 2004 2007 Other Other developed D&E developed 26% 36% 23% D&E 44% Western Western Europe Europe 33% 38% 6 We have distribution in depth… from the favelas of Sao Paolo to the villages of India 7 4 We sell to both the well-off and to the very poor.. 8 …with trusted brands 9 5 …that suit different pockets and lifestyles D&E population 2007 (billions) Have lots 0.5 Haves 2.6 Have nots 2.6 10 …through a differentiated brand portfolio Hair, Indonesia 11 6 So What? •Our size •Our geographical breadth •Our distribution reach •The number of consumer contacts we make daily Give us a great capacity to do good (and to do harm) Synthesis of the Brand Imprint MODEL 12 Corporate responsibility has been central to our way of doing business…. William Lever – one of the great “social Samuel van den Bergh and Anton Jurgens entrepreneurs” of late Victorian England shared Lever’s views on the role of business …since we started making soap and margarine a century ago 13 7 Lever’s success in making low-cost soap widely available to the urban poor made a big contribution to Public Health in Victorian Britain 14 Health has always been part of Unilever’s corporate purpose Our Mission in 1890 Our Mission in 2008 “To make cleanliness commonplace, “Unilever's mission is to add to lessen the work for women; to Vitality to life. We meet everyday foster health and contribute to needs for nutrition, hygiene and personal attractiveness that life may personal care with brands that help be more enjoyable and rewarding for people feel good, look good and the people who use our products”. get more out of life”. 15 8 Today our approach to sustainability is to embed it into our brands Brand Imprint Synthesis of the Brand Imprint MODEL 16 The Brand Imprint tool forces brands to take a broad view of their impacts on the world 17 9 The result is an approach to CR built on 4 pillars that reflect our brands and our heritage Nutrition and Health Hygiene Sustainable Development Brands with “Social Missions” 18 Nutrition and Health covers four main areas 1 Our Nutrition Enhancement Programme 2 The Choices stamp 3 Innovating to create new, healthier foods 4 The problems of under nutrition 19 10 product range Our Nutrition Enhancement Programme is improving 20- 25% the nutritional profile of our existingper serving reduction d Many US vegetabletrans oil fat spreads in su uce gar levels red reformulated to 0 g in U ing S RTD teas be fats 0% ms completed. ed to 4 rea rat up e c atu by d ic S ran e Since 2005 reformulation changes rt b rop ea Eu have eliminated at least: n H in ium i s sod 15,000 tons of trans-fats Soup ced redu evels ope) 10,000 tons of saturated fats l (Eur y 10% Sodium in (US) 2,000 tons of sodium and b Ragu Old World 10,000 tons of sugars from our Style Sauce portfolio reduced by 25% Ketchup sugar levels Fam reduced by 10% ily Go 20 odne now ss sp virtua read lly fre s tran e of s fats Knorr soups Not only have we eliminated “baddies”…Europe Lipton Ice Tea US Promise spreads US Up to 30% less salt Up to 25% less sugar 21 Virtually trans fat-free 11 …we have upgraded the profile of core ranges Ragu sauces Knorr bouillon Improved natural ingredients: • More vegetables and herbs Now with a full serving of • Extra virgin olive oil vegetables in every half cup • Organic variants 22 Products that meet the NEP standards qualify for the Choices stamp and can make a “health claim” Product Front-of-pack optimisation labelling Trans fat Saturated fat Sodium Sugars Healthy products recognised at a glance 23 12 Already 1/3 of Unilever products qualify for the Choices logo Belgium Czech Greece France Poland Thailand Chile South Africa Switzerland Netherlands USA 24 Our Foods innovation programme is targeting five key benefit areas… Heart Beauty Health Immunity Weight Brain and Management Strength 25 13 …and five natural ingredients… Fruit and vegetables Tea Milk Oils Soy 26 Example: Flora/Becel and Heart Health Omega 3 plus Packed with more omega 3 than any other spread or minidrink pro.activ Spreads, milk, yoghurt and mini- drinks clinically proven to lower cholesterol 27 14 Example: Blue Band – “The Goodness of Margarine” “Goodness of Margarine” Communication on healthy oils and fats in Europe and Africa 28 Example: Hellmann’s - The Real Goodness of Mayonnaise 29 15 Example: Knorr – Chilled soups packed with vegetables Healthy, premium ingredients Delicious recipes New packaging for a fresher taste 30 Example: Lipton and the Health benefits of tea 31 16 Even ice cream can deliver positive nutrition Delicious ice cream for kids with as much calcium as two glasses of milk + = 32 We are also committed to a fortified foods programme Partnership for Child Combating Iodine Working with Nutrition Deficiency Partners Reducing child Iodised salt in India, malnutrition in India Malawi, Ghana and Nigeria 33 17 Hygiene is the second pillar of our CR strategy Hand Washing Oral Hygiene Water Purification 34 Our hand washing education programmes are extensive “The second biggest killer of children in the world is diarrhoea. Hand washing can cut diarrhoeal diseases by 48%” Lifebuoy’s hand washing programme in The programme has been launched in India is well established Pakistan and Bangladesh They are reaching over 100 million people and growing the market for soap 35 18 Our oral care programmes also reach millions Dental disease is painful and a key cause of children missing school, especially those on low incomes Our partnership with FDI World Dental In Nigeria our Schools Campaign Federation involves over a million dentists will educate 2 million people about in a global campaign – Live, Learn, Laugh oral health over 5 years 36 4 billion people do not have access to clean drinking water Pureit can provide this… •Reliably – tested by the London School of Hygiene & Tropical Medicine and the Indian National Institute of Epidemiology •Cheaply – half a € cent per litre – costs less than boiled water •Test Marketed in Chennai •Now being rolled out across India •Already protecting 5 million Indians 37 19 Distribution systems like Shakti in India act as platforms for consumer education • 45,000 Shakti entrepreneurs covering over 100,000 villages • Servicing 125 million rural consumers 38 Sustainable Development is our third pillar: it has four thrusts Climate change Agriculture Water Packaging 39 20 Climate Change 40 We have measured our greenhouse gas footprint 40m tonnes 4m tonnes 4m tonnes 120-240m tonnes 41 21 CO 2 reductions in our own factories have declined by c.35% 2012 Target: Further reduction of 25% vs. 2004 42 In refrigeration we have made good progress • Our ice cream is stored in c.2 million freezers • We have developed refrigerants with natural HC’s with a lower global warming potential
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