#1Unilever at CAGNY Graeme Pitkethly & Richard Williams 18th February 2020 1 Unilever#2Richard Williams Unilever at CAGNY 18th February 2020 1 Unilever#3Unilever 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 'will', 'aim', 'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision', 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 Unilever Group (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. Among other risks and uncertainties, the material or principal factors which could cause actual results to differ materially are: Unilever's global brands not meeting consumer preferences; Unilever's ability to innovate and remain competitive; Unilever's investment choices in its portfolio management; inability to find sustainable solutions to support long-term growth including to plastic packaging; the effect of climate change on Unilever's business; significant changes or deterioration in customer relationships; the recruitment and retention of talented employees; disruptions in our supply chain and distribution; increases or volatility in the cost of raw materials and commodities; the production of safe and high quality products; secure and reliable IT infrastructure; execution of acquisitions, divestitures and business transformation projects; economic, social and political risks and natural disasters; financial risks; failure to meet high and ethical standards; and managing regulatory, tax and legal matters. These forward-looking statements speak only as of the date of this announcement. 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. 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 in the Annual Report on Form 20-F 2018 and the Unilever Annual Report and Accounts 2018. 3#4Unilever Unilever today 190 countries Developed markets 40% Emerging markets 60% 2.5 billion consumers Home Care 21% Foods & Refreshment 37% Beauty & Personal Care 42% 85% leading positions Dove Lipton Rexona Knorr * HELLMANN'S EST.1913 Dirt is Good sunsilk CO-CREATIONS 80% local leaders. #1 CPG employer in 52 countries Sunlight LUX 124 AXE M MAGNUM#5Unilever 2019 Results Growth Underlying Sales Growth +2.9% +1.2% Underlying Volume Growth Margin Underlying Operating Margin +50 bps +30 bps Gross Margin Earnings Underlying EPS +8.1% +5.8% Constant Underlying EPS Cash Free Cash Flow €6.1bn +€0.7bn vs 2018 LO 5#6Unilever Progress against 2020 strategic plan USG in 3-5% range Simpler, faster organisation Accelerated margin progression Faster portfolio evolution Simpler capital/legal structure Increased leverage & returns 3% CAGR 2017-19 Closer to the markets, delayered UOM 16.4% → 19.1%, >€6bn savings 2017-19 BPC increased to > 40% of portfolio New Prestige business built to >€600m Preference shares cancelled, trust office closure, unification withdrawn High teens ROIC, net debt at 2X 6#7Graeme Pitkethly Unilever at CAGNY 18th February 2020 1 Unilever#8Unilever 2019: Setting foundations Jan April Management changes THE COMPASS 2016 Winning through a time of exponential change WE ARE UNILEVER HOW WE WILL WIN --- www. Brands w luna maraka tad va Mag Purp urpose Grow UU Unileve PROGRESS REPORT 2012 UNILEVER SUSTAINABLE LIVING PLAN panies with Purpose Last OUR PURPOSE is to make sustainable living commonplace People with Purpose Thrive One Strategy Delayering July IN ด Accelerate growth Sustain growth Turnaround growth Unlock margin Roles by cell Dec Role changes Promotion External#9Unilever Top line growth: our diagnosis □ Focus on fundamentals ● Consistent execution More operational grip Improve channel capability Strengthen innovation, particularly BPC ● ☐ Greater leverage from emerging market strongholds □ Bolder portfolio shift 9#10Unilever Today's themes FOCUSED EXECUTION Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 5 growth fundamentals POWERING OUR MARKETS Emerging markets ACTIVE PORTFOLIO MANAGEMENT Lipton OLLY. GOODBYE STRESS KEEP CALM & STAY ALERT GABA, L-Theanine & Lemon Bahn Horlicks Unilever PRESTIGE Horlicks Horlicks Horlicks Horlicks (mother's Horlicks Reshaping the business 10#11Unilever Today's themes FOCUSED EXECUTION Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 5 growth fundamentals POWERING OUR MARKETS i Emerging markets ACTIVE PORTFOLIO MANAGEMENT Lipton GOODBYE STRESS Unilever PRESTIGE Reshaping the business 11#12U Unilever 2020 growth fundamentals Improved penetration 1 2 13 4 5 Impactful innovation Design for channel Purposeful brands Fuel for growth Mental and physical availability in key cells Product superiority Decisive choices Focused channel capability 100% product & purpose integration €2bn+ savings p/a 12#13Unilever Improved penetration Product availability 0 Product superiority Advertising superiority Increasing mental and physical availability Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 13#14Unilever India penetration Surf Excel penetration 2016 2017 2018 Laundry business results CAGR 10% 2019 While driving market development through premiumization Skin cleansing penetration 2016 2017 2018 USG% Skin cleansing business results MAT 2019 Two biggest brands: Declining penetration Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 14#15Unilever Impactful innovation - rebalancing Hey, did you notice? each one of our bottles is now beautifully unique Dove 100% recycled bottle Made with 100% recycled plastic Proud of what we are made of DOM GLOBAL: Dial up Dove O Dove E Y STRAWBERRY Sery! For love& love& care care EXPERT CARE WASH EXPERT CARE WASH SHINING SILKS FINE COTTONS NEW NEW NEW NEW A Q talenti. EXPERT CARE WASH FOR FASHIONWEAR Vanilla Fudge Cookie GELATO LAYERS love care EXPERT CARE WASH SOFT WOOLLENS LOCAL: More choiceful Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 15#16Unilever Impactful innovation - technology led NEW LOOK 3x 96% Rexona clinical cream PROCES 3x Rexona clinical 96" Rexona clinical protection aerosol Rexona clinical Rexona clinical protection MEN Rexona clinical protection STRONGER 3x5 3x₁ 96⁰ STRONGER 96H MEN Rexona clinical protection aerosol Rexona clinical MEN Rexona clinical protection roll-on 3x NEW STRONGER 96 Rexona Clinical Protection Rexona clinical protection 3x میرا 2019: > 10 markets Premium pricing ~150 index Margin accretive > 3% Market share of deos market in Y1 Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 16#17Unilever ● ● ● Design for channel Capturing growth in fast growing channels Focused channel capability Future fit portfolio o Agile R&D and Net Revenue Management Execution o Design for complexity & agile supply chain Content & demand creation Data driven marketing driving conversion ecorefill C Cif E-commerce HELLMANN'S 71 BURGER ROUTE FIND GREAT BURGERS NEAR YOU Out of home 0 Unilever Cif Health & beauty OOD Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth HOURGLASS HOURGLASS PROFESSIONAL Professional 17#18Unilever Purposeful brands % of global adult population 2020 = 55% 75 Gen Z 72 Millennial Source: GlobeScan, Healthy & Sustainable Living Report 2019/ UN population data % of global adult population 2020 = 45% 63 Gen X 56 Baby boomers % motivated to be brand loyal to brands making positive impact Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 18#19Unilever Fuel for growth €2bn p.a. Savings per year 2017-2019 Robust pipeline of savings programmes 5s savings Change Programmes Enabled through €3.5bn restructuring spend Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth O ZERO BASED BUDGETING il Grow Power Run 5 19#20Unilever Reinvesting in the business Brands Brand Power 76% Stable or increasing Brand Power - Kantar Millward Brown, MAT Q4 2019 Innovation N WAGENINGENUR hive Capabilities Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth >1500 Digital talent recruited in 2018/19 >500 Talent in Digital Hubs & People Data Centres >20 U-Studios >30 People Data Centres Piloting Insight Hubs 20#21Unilever Today's themes FOCUSED EXECUTION Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 5 growth fundamentals POWERING OUR MARKETS Emerging markets ACTIVE PORTFOLIO MANAGEMENT Lipton GOODBYE STRESS Unilever PRESTIGE Reshaping the business 21#22U Unilever Future market growth €bn 5 3 2 1 0 16 emerging markets > €500m >€500m Turnover >60% of global GDP growth to 2030 GDP growth (PPP adjusted) 2020-2030. Source: IMF, IFS 21 emerging markets €100 to €500m >€100m Seeding the future 22#23Unilever EM powerhouses 10% 5% 0% 10% 5% 0% India: 9% of turnover 2014-16 2017-19 Market growth Indonesia: 5% of turnover 2014-16 2017-19 Market growth Softer Nielsen data, China adjusted for non-tracked channels 2020+ Our view Stronger 2020+ Our view 15% 10% 5% 0% 5% 0% Brazil: 6% of turnover 2014-16 2017-19 Market growth 2014-16 China: 5% of turnover 2017-19 Stronger Market growth 2020+ Our view ? 2020+ Our view 23#24Unilever Managing through volatility Crises are all different BROE Hyper recession Hyper stagflation BRANCAN Rapid responses PROFUNDA AI HANKALA 100% HE BECICLAT ALL Brilha Brilhante CUIDADO TO LIMPEZA TOTAL PROFUNDA CORES 13215kg Rexona Glicerina F Value brands Rexona Glicenna Rexona Glicering Suave Suave Suave suave Suave Baxous Lavanda e tvo-Doce Rexona Counter-cyclical premium 2015 Competitive growth Brazil USG % Argentina: Volume ahead of the market USG 6% Market growth 2019 24#25Unilever Developing our route to market COMPRA AGORA ● Brazil B2B hub focused on small retailers Multi-industry marketplace Growing >50% Rolling out to Argentina 25#26Unilever Today's themes FOCUSED EXECUTION Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 5 growth fundamentals POWERING OUR MARKETS i Emerging markets ACTIVE PORTFOLIO MANAGEMENT Lipton OLLY. GOODBYE STRESS KEEP CALM & STAY ALERT GABA, L-Theanine & Lemon Bahn Horlicks Unilever PRESTIGE Horlicks Horlicks Horlicks Horlicks (mother's Horlicks Reshaping the business 26#27Unilever Capital allocation Operational investment ● ● ● ● ● Brands Innovation Capital expenditure Restructuring Capabilities Sustainability Minority buybacks ● ● ● Portfolio reshape Bolt on acquisitions Large acquisitions Disposals Returns to shareholders ● Net debt leverage ratio of approximately 2X Dividends Event driven share buybacks Regular share buybacks 27#28U Unilever Portfolio reshape Beauty & Personal Care 2009 2019 BPC 30% % Turnover BPC 42% 2009 2019 Foods & Refreshment % Turnover F&R 53% F&R 37% €11bn outflow, €8bn inflow 2009 2019 Home Care % Turnover HC 17% HC 21% 28#29U Unilever Maintaining high ROIC while changing the portfolio ROIC % No of acquisitions Acquisition examples 2018 restated for IFRS 16 19.2% 4 從 seventh generation 2016 18.5% 9 SUNDIAL carver korea beauty inventor 2017 18.1% 7 quilibra 2018 19.2% 8 OLLY TATCHA 2019 29#30Unilever Future growth categories €350m Kate Murad. Somerville dermalogica 2015 REN CLEAN SKINCARE JAM HOURGLASS Living proof. 2017 €600m TATCHA Luxury beauty Focus skin care GARANCIA PARI- LE POUVOR DE LA SCENCE ET DE LA NATURE 2019 Double digit growth 2019 TOLLY ROLLY OLLY OLLY OLLY 35 LASER FOCUS TONE FAST & STAY ON TASK Ginseng, Alpha GPC & B Vitamins Y SUPPLEMENT 60 quilibra Ofe enerziale di Menta INTEGRATORE ALIMENTARE 40 CAPSULE 20 GIORNI 600 SENZA GLUTINE Audi cos Olie esiale di Masta Je, Funcione digestiv UNDENIABLE BEAUTY BENESSERE GASTRO INTESTINALE ZENZERO FOR HAIR, SKIN & NAILS A beautifying blend of Biotin, Vitamin C, E & Keratin MY SUPPLEMENT 50 SENZA GLUTINE RESTFUL SLEEP FOR A HEALTHY SLEEP CYCLE Melatonin, L-Theanine & Botanicals DOTARY SUPPLEMENT quilibra Propoli Forte Integratore alimentare C Riboflavina, Propoli con edaleket BENESSERE DALL'ALVEARE 40 parla gelatinase da masticare 29 NEGRATORE GOODBYE STRESS KEEP CALM & STAY ALERT GABA, L-Theanine & Lemon Balm quilibra RELAX E RIPOSO NOTTURNO RELAX GIORNO & NOTTE vegetal ALMINTARE 50 COMPRESSE 50 GIORNI UPPLEMENT 100% DEN FACIONAL NATURAL DAILY ENERGY FOR A STEADY FLOW OF ENERGY Vitamin B12+ CoQ10 & Go Berry PPLEMENT 30 GERES TOUS ED ENERSIA VITAMINA C 100% naturale A base di Rosa Canina, Al Camu Comu, fatura di Vitamina C INTEGRATORE ALIMENTARE quilibra 30 COMPRESSE MASTICABILI Health, wellness, personal nutrition Focus VMS ARE NATURALE MANCER ROSSA SENZA GLUTINE 30#31Unilever Global tea Lipton PERS Since 1869 Brooke Bond Cheers Your Senses ESTO 1930 Brooke Bond BROSES PG™ tips Brooke Bond ΤΑΙ MAHAL Brooke Bond Taaza Brooke Bond Red Label TAZO ( T2 31#32Unilever Today's themes FOCUSED EXECUTION Improved penetration Impactful innovation Design for channel Purposeful brands Fuel for growth 5 growth fundamentals POWERING OUR MARKETS Emerging markets ACTIVE PORTFOLIO MANAGEMENT Lipton OLLY. GOODBYE STRESS KEEP CALM & STAY ALERT GABA, L-Theanine & Lemon Bahn Horlicks Unilever PRESTIGE Horlicks Horlicks Horlicks Horlicks (mother's Horlicks Reshaping the business 32#33Unilever at CAGNY Graeme Pitkethly & Richard Williams 18th February 2020 1 Unilever