Unilever Moving Forward Paul Polman Chief Executive Officer
Unilever Investor Seminar Englewood Cliffs, NJ November 23-24, 2009 Our Objectives in 2009
•Reignite volume growth
•Protect cash and margin for the full year Volume Growth Ahead of GDP
6% Volume growth in line with GDP Volume growth below GDP
5% UVG 4% GDP
3%
2%
1%
0%
-1%
-2% 4 6 7 9 80 81 82 83 8 8 91 93 94 95 96 03 04 05 06 0 08 0 19 19 19 19 19 1985 19 1987 1988 1989 1990 19 1992 19 19 19 19 1997 1998 1999 2000 2001 2002 20 20 20 20 20 20 20 2010 Volume Growth is a Key Driver of TSR
15%
12%
9%
6%
TSR (10 yrs average) Unilever 3%
0% 1% 2% 3% 4% 5% 6% Underlying volume growth (10 yrs CAGR) Unilever Key peers Virtuous Circle of Volume Growth
Re-invest in Volume compelling Amplified growth gives mixes Constantly by savings cost improve and value leverage consumer improvement value equation
Portfolio Innovation choices creates new prioritise high added value margin business attractive business Top 9 for 2009
Category and Country Strategy for the top countries
€50m + ideas per category
Own market development
Win with sales fundamentals
Step change customer service
Win with winning customers
Win with local consumers by unlocking the combined power of BB/BD
Drive up cash, drive down costs
Simplify Product/SKU range Volume Improving
Underlying volume growth % 3.6
2.0
0.6
-1.6 -1.8 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Well Positioned for Growth
Global company with 50% of sales in D&E markets
Global market leadership in 7 of our 11 categories
Our top 25 brands contribute 75% of group sales
9 of our top 13 brands are achieving share gains Leading Category Positions Locally
% of our sales where we are number 1
Ice Cream 69% Deo Dressings Skin 81% 74% Cleansing 73%
Laundry 64% Tea 61% Strengthened Portfolio via Acquisitions and Disposals
Disposals
JVs extended
Acquisitions Unrivalled Reputation for Corporate and Social Responsibility
2007 Included in the Supplier of the Year FTSE4Good Index for Sustainable Series since its Engagement inception in 2001
Included in the Food Industry Carbon Disclosure Category Leader Leadership Index 11th year running for the fifth consecutive year, in 2009! scoring 76% in 2009
Source: Euromonitor Exciting New Vision
We work to create a better future every day
• We help people feel good, look good and get more out of life with brands and services that are good for them and good for others
• We will inspire people to take small everyday actions that can add up to a big difference for the world
• We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impacts Key Drivers for Our Growth
Market Bigger, Better, Brilliant Execution Development Faster Innovation with Customers Ample Opportunities to Grow More Usage
Example: Skin care
36.6 26.9
10.9 3.2 0.3 0.8 India China Indonesia Brazil USA Germany US$ per capita consumption Bigger, Better, Faster Innovations
Dove Fresh Clear Dove Minimising Deos Axe Temptation 64 markets 35 markets 37 markets 56 markets
Lipton Pyramid Bags Signal White Now Knorr Stock Pots 44 markets 21 markets 12 markets Deep Understanding of Shoppers can be an Advantage
New Jersey
London
Paris
Shanghai
São Paulo Driving Performance Culture
Individual
DifferentiatedDifferentiated Goal Setting paypay for for (3 + 1) performanceperformance
Ratings drive Individual Ranking VPA & Merit Learning & (LDT) Rankings drive Development GPSP Plans
Performance GPS Feedback Rating
360 Feedback
Driving Long Term Sustainable Value Creation
• Next 2-3 years closing gaps to best in class
• Using this time to make structural changes
– Sharpening the innovation pipeline – genesis projects
– More and better support for our brands
– Brilliant Execution with Customers
– Building organisational capabilities and culture Conclusion
• Planning the business for long drawn out economic recovery
• Energising new vision
• Ample opportunities to grow top and bottom line
– by closing gaps to competition
• Long term sustainable value creation built in next 2-3 years QUESTIONS