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Introduction to Unilever
March 2011
Safe Harbour Statement




This announcement 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’, ‘believes’ or the negative of these terms and
other similar expressions of future performance or results, 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, economic slowdown, industry
consolidation, access to credit markets, recruitment levels, reputational risks, commodity prices, continued availability of raw materials,
prioritisation of projects, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources,
consumer demands, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, the ability to
complete planned restructuring activities, 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 Group’s Annual Report on Form 20-F for the year ended 31 December 2010. These forward-
looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly
disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to
reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such
statement is based.
Contents


1   Mission

2   Geographic Reach

3   Categories and Brands

4   Sustainable Living Plan

5   Our Strategy

6   Unilever in Emerging Markets

7   Financial Performance , Governance and Shares

8   Contact Information
1   Mission
We are a Successful, Growing, Sustainable Business


                     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 impact.



                                                                  €80bn




                                         €44bn

                                 €40bn


                                           environmental impact
2   Geographic Reach
Well Positioned for Growth


       2bn
    consumers               53%
  worldwide use a       of sales in
  Unilever product   emerging markets
    on any day


                         More than
  Products sold in
     more than           50 years
                        experience in
       180
                     Brazil, China, India
     countries
                       and Indonesia
Balanced Scale Across Geographies


       Americas                              Western Europe                            Asia/AMET/CEE
        €14.6bn                                 €12.0bn                                   €17.7bn
       33% Sales                               27% Sales                                 40% Sales




   “Our deep roots in local cultures and markets around the world give us our strong relationship with
    consumers and are the foundation for future growth. We will bring our wealth of knowledge and
international expertise to the service of local consumers - a truly multi-local multinational” - extract from
                                        Unilever’s Corporate purpose
3   Categories and Brands
Regions and Categories
Clear, Distinct, Complementary Roles



Categories - deliver global platforms   Regions – in-market execution

           Responsible for:                     Responsible for:
         Brand development                   Managing the business
             Innovation                 Deploying brands and innovations
      Research and Development               Customer management


          Accountable for:                      Accountable for:
    Medium/long term market share           Short term market shares
            Brand health                             Growth
         Innovation metrics                           Profit
       Category value creation                     Cash flows
Leadership Positions across the Portfolio



  World Number 1               World Number 2                Local Strength

      Savoury                       Laundry                         Oral Care
      Dressings                  Daily Hair Care            Household Cleaning
        Tea
     Ice Cream
      Spreads
     Deodorants
     Mass Skin




                  Number 1 and 2 in more than 80% of the business
Broad Based Portfolio


  Savoury, Dressings & SCC – 32% sales   Beverages and Ice Cream - 19% sales




        Home Care – 17% sales                 Personal Care – 31% sales
Great Brands




               €1bn
               Brands
And More Coming




                  The next
                  10 bigger
                   brands
4   Sustainable Living Plan
Unilever Sustainable Living Plan




HELP 1 BILLION PEOPLE IMPROVE THEIR
HEALTH & WELLBEING



HALVE ENVIRONMENTAL IMPACTS
OF OUR PRODUCTS



SOURCE 100%
OF AGRICULTURAL RAW MATERIALS SUSTAINABLY
The Business Case for Sustainability


consumer preference    win with customers   sustainable innovation




                                              100% sustainable raw
                                                materials by 2020
The Business Case for Sustainability


            grow our markets                       cost savings




                                            Pack weight reduced by 10-15%
                                          250 metric tonnes of packaging saved
reached 130m people   aim to reach 500m
     since 2002         people by 2020              €5m savings p.a.
5   Our Strategy
Our Compass Strategy Sets out our Ambition


    It is to double the size of Unilever whilst at the same time reducing
                         our environmental footprint.




                               €80bn




        €44bn

€40bn


        environmental impact
5    Our Strategy


    I. Winning with Brands and Innovation
Brands and Innovation are at the Heart of
Everything We Do.




54
awards won by



at the Cannes Lions
Advertising Festival
over the past 5 years




 Each year new variant   Rolled out to 50+ countries   Rolled out to 29 countries
 reaches 50+ countries

                                In 12 months
Bigger, Better, Faster Innovation – 2010 Highlights


    Dove Men+Care                Signal White Now          Dove Hair Damage Repair




         Innovations now typically go to 30+ markets in under 12 months
Bigger, Better, Faster Innovation – 2010 Highlights


    Season & Shake         P Chang‟s
                            .F.               Dirt is Good Re-launch
Deliver Superior Products, Design, Branding and
Marketing

            Making foods healthier               Stronger functional claims

       Bouillon jelly
   proprietary technology                   A unique slimming
                                       tea twice as rich in catechins
                                          to help maintain your
                                                silhouette




              Driving sustainability                       Nutrition


                                         Family Goodness
    Detergent concentration                brings better
   technology for less water,           nutrition for family
     less transport, higher                   growth.
             margins                    For better taste and
                                            with less fat
Deliver Superior Products, Design, Branding and
Marketing


               Magnum Temptation                            Dove Nutrium

  An unrivalled multi-sensorial experience
       using cold roller technology
                                               Superior moisturisation
                                                     in a liquid




                 Hellmann‟s Light                      Rexona No-White Marks


     Delicious light
 mayonnaise with only                        Product testing has shown that
         3% fat.                             women rate Rexona higher on
 With unique citrus fibre                      wetness, odour control and
       technology                              absence of white marks on
                                                        clothing
Sharpening the Portfolio through M&A

     Hair TIGI      Personal Care Sara Lee     Hair / Skin Alberto Culver




    Hair T&G      Ice Cream Greece / Denmark   Frozen Italy and Tomatoes
                                                    Brazil Disposal
5    Our Strategy

    II. Winning in the Marketplace
Customer Partnerships


Unilever has unparalleled reach across the store, bringing unique „shopper insight‟ to our partnership
                                            with customers
Customer Insight and Innovation Center Roll Out Now
Completed


                                 London Leatherhead




                                    Paris
                                                       Shanghai
           Englewood Cliffs




                     Sao Paolo
                                                      Singapore
Market Development is our Biggest Opportunity for
 Growth




                                           More
                                          Benefits
Consumption




                                       (trading up)


                      More
                      Usage

              More
              Users
                                                       84% market penetration for
                                                      toothpaste in Nigeria, but low
                                                       repeat rate – we launched a
                         Penetration
                                                       campaign to increase usage
White Space: ~100 Brands into New Markets in 2010




                                 ~100
                            2x



                     ~50




                     2009         2010
5    Our Strategy

    III. Winning through Continuous Improvement
We are Reaching our Consumers Faster



            on-shelf availability up



                   +410
                   bps                    Product recalls were
                                          down

                                          46%
                                          in 2010




     Q409   Q110   Q210    Q310    Q410
We are Stepping up Capex Investment


capex % turnover
          Stage 1: under-invest   Stage 2: kick-start growth      Stage 3: sustainable levels
     %



    4%




    3%




    2%


         2006              2008           2010                 2012              2014
Capex Focus on Emerging Markets and Innovation


            2010 capex by type



                                       •   50% of investment for growth:
                                           innovation and capacity

                                       •   60% in emerging markets

                                       •   20% investment in IT/Maintenance


     Innovation / Capacity   R&D
     IT / Maintenance        Savings
     Others
A&P spend up €0.7bn since 2008


          A&P spend €5.6bn in 2010       reduce production/agency fees


                                                      -15%


                                     A
                                     P




                                            2008      2009      Target

       • 2/3rd HPC vs. 1/3rd Foods
                                                c. €1bn spend p.a.
       • 55% in emerging markets
Constant currency
Advertising Production and Fees –
Not yet best in class




                                                         Unilever

                                                         BENCHMARKS

                                                         22% WFA*
                                                         20% McKinsey
                                                         18% Best in class




                                    2008   2009   2010

* World Federation of Advertisers
Driving the Virtuous Circle of Growth




            Profitable                    Cost
                                       Leverage
             Volume                         +
             Growth                   Efficiencies




                                                      Cost
                         Innovation                  Savings
                         A&P / R&D
5    Our Strategy

    IV. Winning with People
People are at the Heart of our Business




                                   2010 employee engagement scores
                                   reached


                                   73%
                                   vs. 65% in previous years




                                   Unilever is one of the world‟s most
                                   culturally diverse companies, with top
                                   leadership from


                                   22
                                    nations
We Have Local Roots with Global Scale



Our heritage and local expertise mean     Leveraging our scale brings us
       that D&E is in our DNA           advantages over local competition


• Understanding of the local            • Global portfolio of brands and
  consumer
                                           categories
• Brands and products across a
  wide range of income levels           • Dedicated R&D investment
• Critical mass on the ground
                                        • Shared values and standards of
• Corporate reputation with local
  stakeholders and talent pool             behaviour




  Local roots                                               Global scale
Unilever Executive: a Global Management Team




                                                Paul Polman                                Michael Treschow
                                           Chief Executive Officer                     Non-Executive Chairman




Dave Lewis Jan Zijderveld Harish Manwani Michael Polk    Geneviève Pier Luigi Jean-Marc Doug Baillie Keith Weed
                                                           Berger  Sigismondi    Huët
                            President                                                                  Chief
President    President                    President      Chief R&D  Chief SC     Chief   Chief HR
                          Asia Africa &                                        Financial             Marketing
Americas      Western                     Categories      Officer    Officer               Officer
                            CE Europe                                           Officer               Officer
              Europe
6   Unilever in Emerging Markets
The Opportunity


                                750 million      $ 23 Trillion




                                    94%
                                      D&E           72%


                                       D&E
                                        DEV         DEVELOPED




                        Share of population    Share of incremental
                              growth          consumer expenditure

                                                                      46
Source: Unilever Estimates from Globegro
We are Ideally Positioned to Capture D&E Growth


                  population           value share   relative market share


         China                 1.4bn      >10%               0.4


         India                 1.3bn      >35%               >2


     Indonesia                 230m       >40%              >1.5


         Brazil                195m       >35%              >1.5

      Pakistan                 170m       >35%               0.9

    Bangladesh                 160m       >50%               >2

    Philippines                90m        >40%              >1.5
Huge Potential


                                           bath and shower – US$ spend per capita
                                                                                                                  20

                                                                                                          17
               Developed markets
               Emerging markets
                                                                                      13          14




                                                                          5
                                                                5
                                                       3
                         1          2         2
             1

         Vietnam      Indonesia    China     India   Turkey   Mexico   Argentina   Australasia   Brazil   USA    United
                                                                                                                Kingdom




Source: Euromonitor
More Consumers


   billions of people
                                       2010                                   2020




 Have lots                               0.9                                   2.0



 Haves                                   2.0                                  2.7



 Have nots                               2.9                                  1.9



Source: Unilever estimates Globegro, updated upon LSM 2.0 baseline studies.
Market Development is a Major Growth Driver


             in BRIC alone, by 2020



                                           washing
                                           machines
                                                       fridge
                           kitchen        +230%       freezers
                            sinks
                         +115%                        +190%
                                      inside     microwave
                                      toilets      ovens

                                 +100%            +130%
     Source: CMI                                                 129
Example: Developing our Markets by Increasing
Frequency of Consumption


                 Oral Care Market Development Model




        France               Indonesia                Nigeria
White Spaces are a Significant Opportunity


  Key
Countries

100%


                                             white space



 50%




            brand presence
  0%
Most 100M+ population countries will be in emerging
 markets (13 out of 15) by 2020




                                                                                   Russia


             US
                                                                   Pakistan         China
                                                        Egypt                                     Japan
            Mexico                                                         India     Vietnam Philippines
                                                                             Bangladesh
                                                    Nigeria     Ethiopia
                                                                              Indonesia


                                           Brazil




Source: Unilever Estimates from Globegro
Sustainability
Unilever Leads the Agenda in Emerging Markets




   Sustainable Palm Oil   Access to Clean Water   Empowering Women




    Rainforest alliance        Less Water            Hygiene for all
“Perfect Stores”: Emerging Markets Ambition


              from 1 million (2010) to 5 million (2020)

                GT                              MT




              More stores… better stores… better served
Emerging Markets Consistent Growth with 9% CAGR




                    9% CAGR
       20%                              53%
      of Unilever
                                       of Unilever




      1990                                2010
We Have the Best Footprint in Emerging Markets


                                                                                         53%




                             15%                                      25%   35%   45%   55%
Source: Annual Report & Accounts, analysts estimates, Unilever estimates
7   Financial Performance, Governance and Shares
Unilever Financial Performance




                              € bn                                     2005           2006    2007    2008    2009    2010


 Turnover                                                                38.4          39.6    40.2    40.5    39.8   44.3

 Operating Profit                                                          5.1          5.4     5.2     7.2     5.0    6.3

 Underlying Operating Margin                                                                    5.8     5.9     5.9    6.6

 Net Profit *                                                              3.3          3.7     4.1     5.3     3.7    4.6

 Fully Diluted Earnings per Share * €                                    1.25          1.60    1.31    1.73    1.17   1.46

 Net Cash Flow from Operating Activities                                   4.4          4.5     3.9     3.9     5.8    5.5

 Free Cash Flow **                                                         3.0          3.1     2.5     2.4     4.1    3.4



(*) Continuing operations
(**) Free cash flow = net cash from operating activities – net interest – net capex
Commitment to Shareholder Value

     Unilever measures its Total Shareholder Return, over a 3 year rolling period, amongst a peer group of
                                              20 other companies


                 Peer group in 2010                 Unilever‟s TSR position relative to the peer group over a rolling 3 year
                                                                                     period

    • Avon                    • Kellogg‟s
                                                        0
    • Beiersdorf              • Kimberly-Clark
    • Campbell                • Kraft
    • Coca-Cola               • L‟Oréal                 7
    • Colgate                 • Nestlé
    • Danone                  • Pepsico
    • General Mills           • Procter & Gamble       14

    • Heinz                   • Reckitt Benckiser
    • Henkel                  • Sara Lee
                                                       21
    • Kao                     • Shiseido                 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010




“… our road to sustainable, profitable growth, creating long term value for our shareholders, our people, and
                      our business partners” extract from Unilever’s Corporate purpose
Unilever Long Term Focus




 1. To drive volume growth ahead of our markets

 2. Steady and sustainable underlying operating margin
    improvement

 3. Strong cash flow
Legal structure, governance and shares


 Unilever was formed in 1930 from two companies:




                        Margarine Unie                       Lever Brothers
                         (Netherlands)                            (UK)



 It was a full business merger, operating as a single business entity
 Two separate legal parent companies were maintained:
       - Unilever NV (Netherlands) and Unilever PLC (UK).
 This works through an equalisation agreement and other contracts between the two companies
Legal structure


  Unilever NV and PLC have separate legal identities but operate as a single entity



     NV shareholders                                                PLC shareholders



                                         Directors


          NV                    Equalisation and other agreements             PLC



 NV owned operating companies   Jointly owned operating companies   PLC owned operating companies
Legal structure



                     Unilever firmly believes in maintaining high standards of
                                      Corporate Governance



These have evolved in response to developments in Europe (UK Combined Code, Dutch Corporate Governance Code) and
the US (Sarbanes Oxley, NYSE listing rules)

Unilever operates a unified board: the boards of NV and PLC comprise the same directors

There is a majority of independent, non-executive directors on the board. The Chairman is non-executive

The boards have ultimate responsibility for the business as a whole

Details of current arrangements can be found in the report and accounts in the investor centre at
www.unilever.com/investorrelations
Share listings



• Unilever NV ordinary shares or certificates (depositary receipts) are listed on the stock exchanges in Amsterdam and as
  New York shares on the New York Stock Exchange.

• Unilever PLC ordinary shares are listed on the London Stock Exchange and as American Depositary Receipts in New York.
  Each ADR represents 1 underlying ordinary PLC share.

• There are 1,714,727,700 NV ordinary shares in issue, each with a nominal value of €0.16.

• There are 1,310,156,361 PLC ordinary shares in issue, each with a nominal value of 3 1/9 pence.

• The equalisation agreement between NV and PLC is such that each NV ordinary share has the same rights and benefits as
  each PLC ordinary share.

• The combined share count excluding treasury stock, for calculating basic EPS, was 2,812 million at the end of 2010.

• The combined share count excluding treasury stock, for calculating diluted EPS, was 2,905 million at the end of 2010.




                 Further information can be found in the investor centre at www.unilever.com
Share listings




       Exchange           Amsterdam       London                    New York



         Share            Unilever NV   Unilever PLC   Unilever NV NY      Unilever PLC NY



         Ticker              UNA           ULVR             UN                   UL



 Cash payment per share
         2010
                            €0.82          £0.71           $1.11               $1.11
Share listings and ownership



   Share listings as a percentage of identified   Share ownership by country at the end of 2010
                      capital



                NV NY
 PLC ADR         9%                                     Other                          UK
   4%                                                   39%                           30%




      PLC                                                                             USA
                                      NV 47%                     Netherlands
      40%                                                                             23%
                                                                     8%
An attractive and growing dividend



                                                        €0.82




  1979            1989                      1999        2009


                 Dividend payout 1979 - today 8% CAGR
8   Contact Information
Further information and contact details


More information on Unilever is available at www.unilever.com/investorrelations


The shareholder centre at www.unilever.com/investorrelations gives information on how to
purchase Unilever stock




                                        The IR team can be contacted by
                                        telephone as follows:

                                        + 44 (0) 20 7822 6830

                                        Or by e-mail at:
                                        investor.relations@unilever.com

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Unilever report

  • 2. Safe Harbour Statement This announcement 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’, ‘believes’ or the negative of these terms and other similar expressions of future performance or results, 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, economic slowdown, industry consolidation, access to credit markets, recruitment levels, reputational risks, commodity prices, continued availability of raw materials, prioritisation of projects, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, consumer demands, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, the ability to complete planned restructuring activities, 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 Group’s Annual Report on Form 20-F for the year ended 31 December 2010. These forward- looking statements speak only as of the date of this document. Except as required by any applicable law or regulation, the Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
  • 3. Contents 1 Mission 2 Geographic Reach 3 Categories and Brands 4 Sustainable Living Plan 5 Our Strategy 6 Unilever in Emerging Markets 7 Financial Performance , Governance and Shares 8 Contact Information
  • 4. 1 Mission
  • 5. We are a Successful, Growing, Sustainable Business 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 impact. €80bn €44bn €40bn environmental impact
  • 6. 2 Geographic Reach
  • 7. Well Positioned for Growth 2bn consumers 53% worldwide use a of sales in Unilever product emerging markets on any day More than Products sold in more than 50 years experience in 180 Brazil, China, India countries and Indonesia
  • 8. Balanced Scale Across Geographies Americas Western Europe Asia/AMET/CEE €14.6bn €12.0bn €17.7bn 33% Sales 27% Sales 40% Sales “Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers - a truly multi-local multinational” - extract from Unilever’s Corporate purpose
  • 9. 3 Categories and Brands
  • 10. Regions and Categories Clear, Distinct, Complementary Roles Categories - deliver global platforms Regions – in-market execution Responsible for: Responsible for: Brand development Managing the business Innovation Deploying brands and innovations Research and Development Customer management Accountable for: Accountable for: Medium/long term market share Short term market shares Brand health Growth Innovation metrics Profit Category value creation Cash flows
  • 11. Leadership Positions across the Portfolio World Number 1 World Number 2 Local Strength Savoury Laundry Oral Care Dressings Daily Hair Care Household Cleaning Tea Ice Cream Spreads Deodorants Mass Skin Number 1 and 2 in more than 80% of the business
  • 12. Broad Based Portfolio Savoury, Dressings & SCC – 32% sales Beverages and Ice Cream - 19% sales Home Care – 17% sales Personal Care – 31% sales
  • 13. Great Brands €1bn Brands
  • 14. And More Coming The next 10 bigger brands
  • 15. 4 Sustainable Living Plan
  • 16. Unilever Sustainable Living Plan HELP 1 BILLION PEOPLE IMPROVE THEIR HEALTH & WELLBEING HALVE ENVIRONMENTAL IMPACTS OF OUR PRODUCTS SOURCE 100% OF AGRICULTURAL RAW MATERIALS SUSTAINABLY
  • 17. The Business Case for Sustainability consumer preference win with customers sustainable innovation 100% sustainable raw materials by 2020
  • 18. The Business Case for Sustainability grow our markets cost savings Pack weight reduced by 10-15% 250 metric tonnes of packaging saved reached 130m people aim to reach 500m since 2002 people by 2020 €5m savings p.a.
  • 19. 5 Our Strategy
  • 20. Our Compass Strategy Sets out our Ambition It is to double the size of Unilever whilst at the same time reducing our environmental footprint. €80bn €44bn €40bn environmental impact
  • 21.
  • 22. 5 Our Strategy I. Winning with Brands and Innovation
  • 23. Brands and Innovation are at the Heart of Everything We Do. 54 awards won by at the Cannes Lions Advertising Festival over the past 5 years Each year new variant Rolled out to 50+ countries Rolled out to 29 countries reaches 50+ countries In 12 months
  • 24. Bigger, Better, Faster Innovation – 2010 Highlights Dove Men+Care Signal White Now Dove Hair Damage Repair Innovations now typically go to 30+ markets in under 12 months
  • 25. Bigger, Better, Faster Innovation – 2010 Highlights Season & Shake P Chang‟s .F. Dirt is Good Re-launch
  • 26. Deliver Superior Products, Design, Branding and Marketing Making foods healthier Stronger functional claims Bouillon jelly proprietary technology A unique slimming tea twice as rich in catechins to help maintain your silhouette Driving sustainability Nutrition Family Goodness Detergent concentration brings better technology for less water, nutrition for family less transport, higher growth. margins For better taste and with less fat
  • 27. Deliver Superior Products, Design, Branding and Marketing Magnum Temptation Dove Nutrium An unrivalled multi-sensorial experience using cold roller technology Superior moisturisation in a liquid Hellmann‟s Light Rexona No-White Marks Delicious light mayonnaise with only Product testing has shown that 3% fat. women rate Rexona higher on With unique citrus fibre wetness, odour control and technology absence of white marks on clothing
  • 28. Sharpening the Portfolio through M&A Hair TIGI Personal Care Sara Lee Hair / Skin Alberto Culver Hair T&G Ice Cream Greece / Denmark Frozen Italy and Tomatoes Brazil Disposal
  • 29. 5 Our Strategy II. Winning in the Marketplace
  • 30. Customer Partnerships Unilever has unparalleled reach across the store, bringing unique „shopper insight‟ to our partnership with customers
  • 31. Customer Insight and Innovation Center Roll Out Now Completed London Leatherhead Paris Shanghai Englewood Cliffs Sao Paolo Singapore
  • 32. Market Development is our Biggest Opportunity for Growth More Benefits Consumption (trading up) More Usage More Users 84% market penetration for toothpaste in Nigeria, but low repeat rate – we launched a Penetration campaign to increase usage
  • 33. White Space: ~100 Brands into New Markets in 2010 ~100 2x ~50 2009 2010
  • 34. 5 Our Strategy III. Winning through Continuous Improvement
  • 35. We are Reaching our Consumers Faster on-shelf availability up +410 bps Product recalls were down 46% in 2010 Q409 Q110 Q210 Q310 Q410
  • 36. We are Stepping up Capex Investment capex % turnover Stage 1: under-invest Stage 2: kick-start growth Stage 3: sustainable levels % 4% 3% 2% 2006 2008 2010 2012 2014
  • 37. Capex Focus on Emerging Markets and Innovation 2010 capex by type • 50% of investment for growth: innovation and capacity • 60% in emerging markets • 20% investment in IT/Maintenance Innovation / Capacity R&D IT / Maintenance Savings Others
  • 38. A&P spend up €0.7bn since 2008 A&P spend €5.6bn in 2010 reduce production/agency fees -15% A P 2008 2009 Target • 2/3rd HPC vs. 1/3rd Foods c. €1bn spend p.a. • 55% in emerging markets Constant currency
  • 39. Advertising Production and Fees – Not yet best in class Unilever BENCHMARKS 22% WFA* 20% McKinsey 18% Best in class 2008 2009 2010 * World Federation of Advertisers
  • 40. Driving the Virtuous Circle of Growth Profitable Cost Leverage Volume + Growth Efficiencies Cost Innovation Savings A&P / R&D
  • 41. 5 Our Strategy IV. Winning with People
  • 42. People are at the Heart of our Business 2010 employee engagement scores reached 73% vs. 65% in previous years Unilever is one of the world‟s most culturally diverse companies, with top leadership from 22 nations
  • 43. We Have Local Roots with Global Scale Our heritage and local expertise mean Leveraging our scale brings us that D&E is in our DNA advantages over local competition • Understanding of the local • Global portfolio of brands and consumer categories • Brands and products across a wide range of income levels • Dedicated R&D investment • Critical mass on the ground • Shared values and standards of • Corporate reputation with local stakeholders and talent pool behaviour Local roots Global scale
  • 44. Unilever Executive: a Global Management Team Paul Polman Michael Treschow Chief Executive Officer Non-Executive Chairman Dave Lewis Jan Zijderveld Harish Manwani Michael Polk Geneviève Pier Luigi Jean-Marc Doug Baillie Keith Weed Berger Sigismondi Huët President Chief President President President Chief R&D Chief SC Chief Chief HR Asia Africa & Financial Marketing Americas Western Categories Officer Officer Officer CE Europe Officer Officer Europe
  • 45. 6 Unilever in Emerging Markets
  • 46. The Opportunity 750 million $ 23 Trillion 94% D&E 72% D&E DEV DEVELOPED Share of population Share of incremental growth consumer expenditure 46 Source: Unilever Estimates from Globegro
  • 47. We are Ideally Positioned to Capture D&E Growth population value share relative market share China 1.4bn >10% 0.4 India 1.3bn >35% >2 Indonesia 230m >40% >1.5 Brazil 195m >35% >1.5 Pakistan 170m >35% 0.9 Bangladesh 160m >50% >2 Philippines 90m >40% >1.5
  • 48. Huge Potential bath and shower – US$ spend per capita 20 17 Developed markets Emerging markets 13 14 5 5 3 1 2 2 1 Vietnam Indonesia China India Turkey Mexico Argentina Australasia Brazil USA United Kingdom Source: Euromonitor
  • 49. More Consumers billions of people 2010 2020 Have lots 0.9 2.0 Haves 2.0 2.7 Have nots 2.9 1.9 Source: Unilever estimates Globegro, updated upon LSM 2.0 baseline studies.
  • 50. Market Development is a Major Growth Driver in BRIC alone, by 2020 washing machines fridge kitchen +230% freezers sinks +115% +190% inside microwave toilets ovens +100% +130% Source: CMI 129
  • 51. Example: Developing our Markets by Increasing Frequency of Consumption Oral Care Market Development Model France Indonesia Nigeria
  • 52. White Spaces are a Significant Opportunity Key Countries 100% white space 50% brand presence 0%
  • 53. Most 100M+ population countries will be in emerging markets (13 out of 15) by 2020 Russia US Pakistan China Egypt Japan Mexico India Vietnam Philippines Bangladesh Nigeria Ethiopia Indonesia Brazil Source: Unilever Estimates from Globegro
  • 54. Sustainability Unilever Leads the Agenda in Emerging Markets Sustainable Palm Oil Access to Clean Water Empowering Women Rainforest alliance Less Water Hygiene for all
  • 55. “Perfect Stores”: Emerging Markets Ambition from 1 million (2010) to 5 million (2020) GT MT More stores… better stores… better served
  • 56. Emerging Markets Consistent Growth with 9% CAGR 9% CAGR 20% 53% of Unilever of Unilever 1990 2010
  • 57. We Have the Best Footprint in Emerging Markets 53% 15% 25% 35% 45% 55% Source: Annual Report & Accounts, analysts estimates, Unilever estimates
  • 58. 7 Financial Performance, Governance and Shares
  • 59. Unilever Financial Performance € bn 2005 2006 2007 2008 2009 2010 Turnover 38.4 39.6 40.2 40.5 39.8 44.3 Operating Profit 5.1 5.4 5.2 7.2 5.0 6.3 Underlying Operating Margin 5.8 5.9 5.9 6.6 Net Profit * 3.3 3.7 4.1 5.3 3.7 4.6 Fully Diluted Earnings per Share * € 1.25 1.60 1.31 1.73 1.17 1.46 Net Cash Flow from Operating Activities 4.4 4.5 3.9 3.9 5.8 5.5 Free Cash Flow ** 3.0 3.1 2.5 2.4 4.1 3.4 (*) Continuing operations (**) Free cash flow = net cash from operating activities – net interest – net capex
  • 60. Commitment to Shareholder Value Unilever measures its Total Shareholder Return, over a 3 year rolling period, amongst a peer group of 20 other companies Peer group in 2010 Unilever‟s TSR position relative to the peer group over a rolling 3 year period • Avon • Kellogg‟s 0 • Beiersdorf • Kimberly-Clark • Campbell • Kraft • Coca-Cola • L‟Oréal 7 • Colgate • Nestlé • Danone • Pepsico • General Mills • Procter & Gamble 14 • Heinz • Reckitt Benckiser • Henkel • Sara Lee 21 • Kao • Shiseido 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 “… our road to sustainable, profitable growth, creating long term value for our shareholders, our people, and our business partners” extract from Unilever’s Corporate purpose
  • 61. Unilever Long Term Focus 1. To drive volume growth ahead of our markets 2. Steady and sustainable underlying operating margin improvement 3. Strong cash flow
  • 62. Legal structure, governance and shares Unilever was formed in 1930 from two companies: Margarine Unie Lever Brothers (Netherlands) (UK) It was a full business merger, operating as a single business entity Two separate legal parent companies were maintained: - Unilever NV (Netherlands) and Unilever PLC (UK). This works through an equalisation agreement and other contracts between the two companies
  • 63. Legal structure Unilever NV and PLC have separate legal identities but operate as a single entity NV shareholders PLC shareholders Directors NV Equalisation and other agreements PLC NV owned operating companies Jointly owned operating companies PLC owned operating companies
  • 64. Legal structure Unilever firmly believes in maintaining high standards of Corporate Governance These have evolved in response to developments in Europe (UK Combined Code, Dutch Corporate Governance Code) and the US (Sarbanes Oxley, NYSE listing rules) Unilever operates a unified board: the boards of NV and PLC comprise the same directors There is a majority of independent, non-executive directors on the board. The Chairman is non-executive The boards have ultimate responsibility for the business as a whole Details of current arrangements can be found in the report and accounts in the investor centre at www.unilever.com/investorrelations
  • 65. Share listings • Unilever NV ordinary shares or certificates (depositary receipts) are listed on the stock exchanges in Amsterdam and as New York shares on the New York Stock Exchange. • Unilever PLC ordinary shares are listed on the London Stock Exchange and as American Depositary Receipts in New York. Each ADR represents 1 underlying ordinary PLC share. • There are 1,714,727,700 NV ordinary shares in issue, each with a nominal value of €0.16. • There are 1,310,156,361 PLC ordinary shares in issue, each with a nominal value of 3 1/9 pence. • The equalisation agreement between NV and PLC is such that each NV ordinary share has the same rights and benefits as each PLC ordinary share. • The combined share count excluding treasury stock, for calculating basic EPS, was 2,812 million at the end of 2010. • The combined share count excluding treasury stock, for calculating diluted EPS, was 2,905 million at the end of 2010. Further information can be found in the investor centre at www.unilever.com
  • 66. Share listings Exchange Amsterdam London New York Share Unilever NV Unilever PLC Unilever NV NY Unilever PLC NY Ticker UNA ULVR UN UL Cash payment per share 2010 €0.82 £0.71 $1.11 $1.11
  • 67. Share listings and ownership Share listings as a percentage of identified Share ownership by country at the end of 2010 capital NV NY PLC ADR 9% Other UK 4% 39% 30% PLC USA NV 47% Netherlands 40% 23% 8%
  • 68. An attractive and growing dividend €0.82 1979 1989 1999 2009 Dividend payout 1979 - today 8% CAGR
  • 69. 8 Contact Information
  • 70. Further information and contact details More information on Unilever is available at www.unilever.com/investorrelations The shareholder centre at www.unilever.com/investorrelations gives information on how to purchase Unilever stock The IR team can be contacted by telephone as follows: + 44 (0) 20 7822 6830 Or by e-mail at: investor.relations@unilever.com