Jim Lawrence Chief Financial Officer
John RothenbergSVP Investor Relations
1st November 2007
UnileverQ3 and Year to Date 2007 Results
Highlights
• Sustained underlying sales growth
• Underlying improvement in operating margin
• Accelerated change programme
• Organisational simplification
• Supply chain rationalisation
• Portfolio development
Safe harbour statement
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
Strong organic growth
(3.0)%(2.3)%Currency effect
(0.8)%(0.9)%Acquisitions and disposals
3.9%2.3%Volume
1.4%2.1%Price
5.3%
1.3%
€30.3bn
YTD
4.5%*Underlying sales growth
1.2%Change
€10.2bnTurnover
Q3
*5.2% after adjusting for sales pull-forward in US
33%
38%
29%
Underlying sales growth by region
AmericasQ3 YTD
USG 2.8%* 4.2%*4.9% after adjusting for sales
pull-forward in US
EuropeQ3 YTD
USG 0.7% 1.9%
Asia/AfricaQ3 YTD
USG 11.7% 11.4%
Underlying sales growth by category
34%
20%
28%
18%
Ice Cream and Beverages
Q3 YTDUSG (0.1)% 3.8%
Home CareQ3 YTD
USG 7.1% 6.3%
Savoury, Dressingsand Spreads
Q3 YTDUSG 6.6% 4.7%
Personal CareQ3 YTD
USG 3.8% 6.5%
Savoury, Dressings and Spreads
USG 4.7%6.6%
YTDQ3
Ice Cream and Beverages
USG 3.8%(0.1)%
YTDQ3
Home Care
USG 6.3%7.1%
YTDQ3
Personal Care
USG 6.5%3.8%
YTDQ3
Operating margin development: Year to date
(1.1)%(1.4)%(0.3)%Including RDIs
0.1%A&PKey drivers:
0.3%Change before these items
2.1%Savings(1.9)%Cost/price/mix
(0.8)%13.7%14.5%Operating margin
Change20072006
(1.3)%(2.1)%(0.8)%Including RDIs
0.4%A&PKey drivers:
0.2%Change before these items
2.4%Savings(2.6)%Cost/price/mix
(1.1)%13.7%14.8%Operating margin
Change20072006
Operating margin development: Q3
Mitigating the impact of commodity costs
180
160150
10080
020406080
100120140160180200
2003 2004 2005 2006 YTD 2007
bps
Commodity cost impact on margin
Actions taken
• Price increases
• Reformulation
• Forward buying
• Buying savings
2007 outlook c.200 bps
2007 quarterly total savings (buying and other)
Savings and restructuring
0
50
100
150
200
250
300
Q1 Q2 Q3
€m
0
50
100
150
200
250
300
Q1 Q2 Q3
€m
2007 quarterly restructuring
2007 restructuring guidance: €700m to €1bn
• Organisational simplification• Announced three further MCOs
- UK/Ireland- Germany/Austria/Switzerland - Central Africa
• Integration of North America Ice Cream• Consolidated businesses in South Africa and Israel
• Supply chain rationalisation• Affecting 10 sites
- UK, Netherlands, Spain, Sweden
• Portfolio development• Completed the sale of Spreads brands in Brazil• Acquired Buavita fruit drinks in Indonesia• Agreed extension of Lipton RTD JV with Pepsi Co• Announced intention to dispose of Boursin
Accelerating change –Progress to date
Drivers of YTD EPS growth
%
Underlying sales growth 5
Currency and disposals (4)
Operating margin pre-RDIs 2
RDIs* (8)
(5)
2Other**
7Preference share provision
(3)Discontinued operations
20EPS from continuing operations
3JVs, associates and non-current investments
9Tax rate
17EPS
4Finance costs
(5)Operating profit
%
*restructuring, disposals and impairments**minority interests, share buyback, etc.
Balance sheet and cash flow
• Net debt €8.2bn
• Share buy-back: €1.1bn repurchased to end September
• Pension liability reduced to €0.8bn
• Cashflow from operating activities €3.5bn
UnileverQ3 and Year to Date 2007 Results
Accelerating changeQuestions
Jim Lawrence Chief Financial Officer
John RothenbergSVP Investor Relations
1st November 2007
UnileverQ3 and Year to Date 2007 Results