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    Investor Seminar 2011

    Winning in D&E Markets

    Harish Manwani

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    Agenda

    Unilever 2010 D&E Opportunity & Trends

    Unilever in D&E D&E Ambition

    D&E Where we will play

    How we will win

    Summary 2

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    Strong Underlying Sales Growth

    3

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    Delivered Against our Priorities

    4

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    Broad Based Volume Growth Led by D&E

    5

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    Agenda

    Unilever 2010 D&E Opportunity & Trends

    Unilever in D&E D&E Ambition

    D&E Where we will play

    How we will win

    Summary 6

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    D&E

    DEV

    94% 72%

    750 million $ 23 Trillion

    Share of populationgrowth

    Share of incrementalconsumer expenditure

    D&E : Big opportunity

    DEVELOPED

    D&E

    7

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    Emerging Asia will be the largest market by 2020

    Consumer Spending 2020($ tn @ PPP exchange rates)

    Source: Unilever Estimates from Globegro

    NA - $15.2

    WE- $9.6

    SA - $5.6

    ANZ & NEA- $4.3

    AMET - $6.5

    CEE- $4.4

    ASIA (ex ANZ & NEA) - $19.8

    8

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    Source: SES Report

    NewProfessionalWomen

    The NewRich

    Hygienefor Urban

    Functionalitywith lessWater

    Emerging consumer groups Need for functionality

    RapidDigitisation

    Connectivity

    Sustainability

    D&E : Emerging trends

    9

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    Agenda

    Unilever 2010 D&E Opportunity & Trends

    Unilever in D&E D&E Ambition

    D&E Where we will play

    How we will win

    Summary 10

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    D&E: Consistent growth with 9% CAGR

    52%of Unilever

    20%of Unilever

    9% CAGR

    1990 2010

    11

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    D&E: Profitable growth

    D&E D&E excl. Russia and China

    Unilever average

    Underlying operating margin% 2010

    12At 2010 rates.

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    2007 2008 2009 2010

    Turnover (bn)

    Continued Strong Performance in D&E

    10% CAGR

    Q1'10 Q2'11

    Turnover (bn)

    At constant 2010 average rates.

    USG (%)9.9

    7.3

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    We have the best footprint in D&E

    52%

    15% 25% 35% 45% 55%

    Source: Annual Report & Accounts, analysts estimates, Unilever estimates

    14

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    We compete effectively both withinternational and local competitors

    Source: Nielsen/IRI MAT (only for markets/categories UL competes & tracks), Competitor Intelligence analysis

    OtherMultinationals34%

    Unilever30%

    Local36%

    16

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    Agenda

    Unilever 2010 D&E Opportunity & Trends

    Unilever in D&E D&E Ambition

    D&E Where we will play

    How we will win

    Summary 17

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    50%70%

    Unilever Ambition : Accelerate D&E

    18

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    Agenda

    Unilever 2010 D&E Opportunity & Trends

    Unilever in D&E D&E Ambition

    D&E Where we will play

    How we will win

    Summary 19

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    small

    large

    largesize of consumer expenditure in 2010(PPP exchange rates)

    growth

    ofconsumere

    xpenditure2010-20

    China

    India

    next 13BRIC bubble size refers to2020 population

    Nascent market cluster( Central Africa + Central Asia )

    Brazil

    Russia

    Mexico

    Indonesia

    Turkey

    Argentina

    Poland

    South Africa

    PhilippinesThailand

    Pakistan

    Egypt

    Vietnam

    Nascentmarkets

    Bangladesh

    Nigeria

    D&E Key Markets: Follow the money and people

    Source: Unilever Estimates from Globegro20

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    small

    large

    large

    BRIC

    STRONGHOLDS

    NASCENT

    IndiaBrazil

    Russia China

    Mexico

    Poland

    Turkey

    Nigeria

    Egypt

    IndonesiaThailandPakistan

    Philippines

    Vietnam

    Bangladesh South Africa

    Argentina

    market size 2009

    marketshare

    bubble size refers to current turnover

    D&E: Unilever in key markets

    21

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    Source: Unilever internal data, based on 15 countries in D&E

    160 brand roll out opportunities

    size of prize 2bn

    Opportunity for brand portfolio deployment

    0%

    20%

    40%

    60%

    80%

    100%

    Dove

    R

    exona

    Clear

    orr

    World

    Lipton

    rnational

    Lux

    Sunsilk

    Signal

    Closeup

    irtIs

    Good

    Axe

    Ponds

    Heart

    Dom

    estos

    R

    adiant

    Lifebuoy

    ligh

    tHHC

    Comfort

    Family

    Goo

    dness C

    if

    thly

    Heart

    Surf

    Im

    pulse

    TIGI

    Present

    D&E Brand Presence %

    Not present

    22

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    Brands into white spaces: Recent launches

    Magnum - Indonesia

    Cif Asia Vaseline - PhilippinesClear Asia & AMET

    Dove Hair - China23Kissan - India

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    Be Everywhere 700 Million consumers

    Potential 1.5 bn opportunity

    Nascent Markets: Accelerate geography fill

    Source: Unilever internal estimates

    24

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    Summary : Key jobs to be done in D&E

    Sustain strong leadership positions in India and Brazil

    Build rapid scale in China and Russia

    Lead full portfolio deployment in all strongholds

    Accelerate geography fill in nascent markets

    25

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    Agenda

    Unilever 2010

    D&E Opportunity & Trends

    Unilever in D&E D&E Ambition

    D&E Where we will play

    How we will win

    Summary 26

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    market

    development

    70-80%

    market

    share gain

    10-20%

    white

    space

    10% +

    Sources of Growth

    27

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    Straddle the pyramid in key

    categories

    Building competitive advantage

    28

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    At the bottom

    Laundry India

    At the top

    Masstige Beauty

    Straddle the pyramid

    29

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    Straddle the pyramid in key

    categories

    Lead market development

    Building competitive advantage

    30

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    Have lots

    Haves

    Have nots

    billions of people

    0.9

    2.0

    2.9

    2.0

    2.7

    1.9

    More benefits

    More usage

    More users

    2010 2020

    Source: Unilever estimates Globegro, updated upon LSM 2.0 baseline studies.

    D&E : Huge market development opportunity

    31

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    More Users

    More Usage

    More Benefits

    10 Step Market

    Development Wheel32

    Our repeatable model

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    Straddle the pyramid in key

    categories

    Lead market development Be an execution powerhouse

    Building competitive advantage

    33

    Be an execution powerhouse

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    OUTLET UNIVERSE IN D&E: 20 M

    4.3 M

    OUTLETS WHERE UNILEVER PRODUCTS

    ARE DISTRIBUTED: 10.5 M

    OPPORTUNITY

    INFLUENCED

    DIRECT

    Be an execution powerhouseMore storesbetter storesbetter served

    34

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

    GT MT

    More stores better stores better served

    Perfect Stores: D&E ambition

    35

    i i i h i

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    Investing in Customer Insight & Innovation CentresChina, India, Singapore

    36

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    Straddle the pyramid in key

    categories

    Lead market development Be an execution powerhouse

    Deploy low cost business models

    Building competitive advantage

    37

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    125 33 92

    From

    To

    Cost

    TargetCost

    GrossProfit Price

    TargetPrice

    TargetGP

    117 33 150

    Deploy Low Cost Model : Deodorants India

    38

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    Straddle the pyramid in key

    categories

    Lead market development Be an execution powerhouse

    Deploy low cost business models

    Employer of choice

    Building competitive advantage

    39

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    1

    2

    1

    3

    Indonesia

    Turkey

    Brazil

    Russia

    India

    China

    Mexico

    Pakistan

    Argentina

    Chile

    South Africa

    1

    1

    1

    1

    1

    1

    1

    Employer Brand FMCG Ranking

    Employer of choice continue to build

    Vietnam 1Source : Country surveys 40

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    Straddle the pyramid in key

    categories

    Lead market development Be an execution powerhouse

    Deploy low cost business models

    Employer of choice Locally relevant, globally efficient

    organisation

    Building competitive advantage

    41

    ll l l b ll ffi i i i

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    Build globalcapabilities in

    D&E

    Outstandinglocal insights

    Scale-up

    innovationresources in D&E

    60% +

    Locally relevant, globally efficient organisation

    42

    Gl b l i ti ith l l i i ht

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    Global innovations with local insights

    Knorr Jelly Bullion - ChinaBroke Bond Tea - India

    Knorr Soupy Noodles - India Ponds Asia 43

    Focusing Innovation Resources in D&E

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    Focusing Innovation Resources in D&E

    BANGALORE

    SHANGHAI

    BANGKOK

    ISTANBUL

    DURBAN

    SAO PAULO

    MEXICO CITY

    BUENOS ARIES

    INNOVATION CENTRES

    GLOBAL R&D CENTRES

    MUMBAI

    42% of R&D

    50% of Brand Development

    DUBAI

    44

    B ildi titi d t

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    Straddle the pyramid in key

    categories

    Lead market development Be an execution powerhouse

    Deploy low cost business models

    Employer of choice Locally relevant, globally efficient

    organisation

    Building competitive advantage

    45

    Activate

    UnileverBran

    d

    &U

    SLP

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    USLP : Three Big Goals by 2020

    SOURCE

    100%OF AGRICULTURALRAW MATERIALS

    SUSTAINABLY

    HALVEENVIRONMENTAL

    FOOTPRINT OFOUR PRODUCTS

    HELP

    1 BILLIONPEOPLE IMPROVE

    THEIR HEALTH& WELLBEING

    46

    B ildi titi d t

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    Straddle the pyramid in key

    categories

    Lead market development Be an execution powerhouse

    Deploy low cost business models

    Employer of choice Locally relevant, globally efficient

    organisation

    Building competitive advantage

    47

    Activate

    UnileverBran

    d

    &U

    SLP

    A d

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    Agenda

    Unilever 2010

    D&E Opportunity & Trends

    Unilever in D&E D&E Ambition

    D&E Where we will play How we will win

    Summary48

    Wi i i D&E k t S

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    Winning in D&E markets - Summary

    D&E is a huge opportunity

    We are strong and fit to compete.

    Our ambition is to consistently outpace market growth

    Lead market development and Grow share steadily

    Key actions:

    BRICs are a must win

    Deploy full portfolio in Strongholds; early mover in nascent markets

    Be an execution powerhouse

    Substantially scale-up innovation and leadership capabilities in D&E

    Lead the sustainability agenda (USLP) everywhere

    49

    D&E: 70% of Unilever

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    0%

    20%

    40%

    60%

    80%

    100%

    1946 1956 1966 1976 1986 1998 2004 2008 2009 2015 2020

    D&E: 70% of Unilever

    Developed Markets

    D&E Markets