Driving Growth through Innovation

11th November 2008

Vindi BangaPresident Foods, Home & Personal Care

Driving Growth through Innovation

A G E N D A

• Category Organisation

• Driving growth

• Delivering more & better innovation

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Q3 2005

Q4 2005*

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

Q2 2008

Q3 2008

Strong Organic Growth

* days adjusted

Underlying sales growth

Annualised growth rate

Leading Category Positions

Laundry

Household Cleaning

Daily Hair Care

Oral Care

Savoury

Dressings

Ice Cream

Deodorants

Spreads

TeaMass Skin

World Number 1

World Number 2

Local Strength

Big Global Brands

Top 25 brands = ¾ of Unilever’s sales

12 billion Euro + brands

Category Goals

Profitable Growth through:

• superior innovation with differentiated technologies

• deep global/local consumer insight

• global category and brand strategies

• global communication platforms

• increased productivity of marketing investment

From Local to Global Organisation

Global Marketing

Global R&D

CategoryCategory

Englewood

London

Moscow

Sao Paulo

Mumbai

Singapore

Buenos Aires

Shanghai Dubai

Durban

Rome

Rotterdam

Hamburg

ParisChicagoIstanbul

Posznan

Port Sunlight

Heilbronn

Category Organisation: 17 Brand Centres, 15 Design Centres

MilanTrumbull

Leeds

Dijon

Casale

Colworth

January 2006

• “Not a question of resource – money or people”

• “Need to step-change productivity & delivery of

innovation”

CEO Review: Science & Technology

Our Commitment:Delivering more, differentiated innovation

Actions Taken

- Embedded Role of Science

- Focused resources

- Fewer, Bigger projects

- Category Technology Strategies

- Embraced Open Innovation

- One Unilever S&T platforms

- Strengthened R&D leadership

10

CEO Review: Science & Technology

How We Are Driving Growth

How We Are Driving Growth

Innovation:40%

� New benefit

� New segment

� New format

Renovation:40%

� Quality

� Packaging

� Communication

FranchiseExpansion:

20%

� More users

� More consumption

� Trading up

How We Are Driving Growth

Innovation:40%

� New benefit

� New segment

� New format

Renovation:40%

� Quality

� Packaging

� Communication

FranchiseExpansion:

20%

� More users

� More consumption

� Trading up

Brewed

Dust

Cooked largeleaf

GreenIced tea

Black

Brewedwith milk

Black+ Mate

Brewed with milk

Brewedwith milk

Brewed with milk

ChunmeeGreen

Dust

Cooked largeleaf

Greenlarge leafIced tea

Boiled withmilk dust /brokens

Green / black

Black

Built Global/Local Consumer Understanding

Wide Variation in Tea Preparation Habits

Simplifying Brand Portfolios: From Local Past

Historic Laundry Portfolio

Simplifying Brand Portfolios: Now Global

Global Laundry Brand Portfolio

Laundry – Covering the Price Piano

Harmonization of Formulations

Skin Cleansing• 56 Base Formulas reduced to 4 Globally

• Providing Cost Savings & Speed of Roll-Outs

Formula 1

Formula 2

Formula 3 Formula 4Formula 4

Formula 2

Formula 3

Formula 3 Formula 3

Formula 3

Focused Funnel: Fewer, Bigger Innovations

• From 5000+ projects to 700

• Average project size increased 10x

Number of Category Innovation Projects

0

1000

2000

3000

4000

5000

6000

2005 2006 2007 2008 2009

Faster Roll-Outs To More Markets

20 markets

52 markets

30 markets

40 markets 16

markets

8 markets25markets

Delivering More, Better Innovation

Personal Care D&E Vitality

Personal Care

Packaging technology for superior usage, less plastics usage

Clinically proven to provide prescription strength moisturisation

Superior skin whitening & anti-ageing technology

Compelling Sensorials: “Wake Up. Go Fresh”

Developing & Emerging Markets

Foam cutting technology: single

rinse instead of three

Superior fragrance and sensorials

Low cost technology for liquid skin cleansing

Mealmakers - formulation & processing technology

Ambient stability & low cost supply chain

Vitality: Making Healthier Foods

Best tasting fat free ice cream

Formulation & processing technology

Light spread rich in vitamins (B3, B5, B6, D,

E, A and B1)

Bouillon jelly proprietory technology

Vitality: Stronger Functional Claims

White Now!Unique optical whitening technology

Removes dandruff & nourishes the scalp through ClearTech

Catechin rich tea helps to take care of your body shape

Clinical strength protection based on world class expertise

Vitality: Driving Sustainability

Ben & Jerry’s FairtradePartnerships

Rainforest Alliance certified tea

Detergent concentration technology for less

water, less transport, higher margins

Recession impact category segmentation

Consumer Dynamics in Challenging Times

Source: Nielsen; CMI Europe; McKinsey analysis

Recession impact on

overall volume

Positive

Neutral

Negative

Positive Neutral Negative

– Sauces– Hand &

Body

“Trade up/ Thrive”

“Hold”

– Oral Care– Skin

Cleansing

– Bouillons

– Deodorants– Shampoo– Conditioner– Leaf Tea

“Trade down”

“Consume less”

Recession impact on category mix

– Fabric Cleaners

– Household Cleaners

– Dressings

1 3

2

4 – Ice Cream

– Meals and Dishes

– Margarine

– Soups

Recession impact category segmentation

6Ps – Winning in Challenging Times

Proposition

Promotion

Product Place

Pack

Price

Underline Value and Quality

Protect Advertising Investment and Spend More

Wisely

Do not cut Product Quality Catch the moving Shopper

Small Packs, Big Packs

Range-up, Range-down

Better Products are still worth paying for…

Key Messages

• Combining local insight with global scale

and expertise

• Delivering fewer, bigger innovations

• Leveraging differentiated technology

• Faster roll-outs to more markets

• Action plans to win in challenging times

Raising the Bar

Unilever Investor Seminar11th – 12th November 2008