Unilever Adding Vitality to Life: Doing Well by Doing Good Miguel - PDF document

Unilever – Adding Vitality to Life: Doing Well by Doing Good Miguel Veiga-Pestana VP Global External Affairs, Unilever November 2007 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. 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. 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. Introduction • Unilever’s footprint as a business • Our Vitality Mission • Four pillars of Vitality • Conclusion - The business rationale 1

Unilever is an Anglo-Dutch company with operations in over 100 countries With strong brand and category leadership positions around the world Foods Home & Personal Care Savoury & Dressings Skin Deodorants Spreads World Number 1 Daily Hair Care World Number 2 Meal replacement Oral Care Local strength Tea Laundry Ice Cream Household Care Our 12 €1bn+ brands 2

Our brands are sold in nearly every country and are present in half the households on the planet We have deep roots in the developing world 1911 China 1918 1888 Cote 1918 India d’Ivoire Nigeria 1929 Kenya 1918 Ghana 1910 Congo 1933 Indonesia 1930 Brazil 1903 South Africa 3

….which today accounts for 44% of our sales As % of Unilever total turnover 2004 2007 Other Other developed D&E developed 24% D&E 26% 36% 44% Western Western Europe Europe 32% 38% 2007 – based on YTD turnover With a depth of distribution from the favelas of Sao Paolo to the villages of India 4

We sell to the well-off and to those living on very low incomes … with trusted brands … 5

…that suit different pockets and lifestyles Have lots Haves Have nots …through a differentiated brand portfolio Hair, Indonesia Laundry, India 6

Vitality has been central to our way of doing business Founded in 1884 by William Lever – a leading British philanthropist since we started out making soap in 1884 Lever’s success in making low-cost soap widely available to the urban poor helped to combat disease in Victorian Britain 7

It has always been part of Unilever’s corporate purpose Our Mission in 1890 Our Mission in 2007 “To make cleanliness commonplace, “Unilever's mission is to add to lessen the work for women; to Vitality to life. We meet everyday foster health and contribute to needs for nutrition, hygiene and personal attractiveness that life may personal care with brands that help be more enjoyable and rewarding for people feel good, look good and the people who use our products”. get more out of life”. Today our approach is built on 4 pillars Nutrition and Health Hygiene Community engagement Sustainable development 8

Nutrition and Health covers four main areas Nutrition enhancement Innovation Information to consumers - Physical activity and responsible marketing healthier lifestyles practices Our nutrition enhancement programme (NEP) is about improving the nutritional profile of our product range Saturated fats being reduced Many US vegetable oil spreads reformulated to 0 g trans fat per serving 20-25% reduction by up to 40% in Heart brand ice creams in sugar levels in US RTD teas In 2005 and 2006, reformulation in Europe completed. changes eliminated 15,000 tons of trans-fats 10,000 tons of saturated fats S o d i u m i n ( U m S d i u ) o s s R u p a o g S u 2,000 tons of sodium and O l d W o e d r l d u c e d s r e l S e v t y l l e S a u c 10,000 tons of sugars from our e ) e o p u r ( E % r e 1 0 d y u c b e d b y 2 5 % portfolio F a m i l y G o t o o d b n e e s v s i r t s Ketchup sugar levels t u r p a a r n l l e y a s d f f r a e s t e s reduced by 10% b o y f 2 0 0 7 9

Not only have we eliminated “baddies”… Promise spreads Lipton Ice Tea Knorr soups US US Europe Trans fat-free Up to 25% less sugar Up to 30% less salt …we have upgraded the profile of core ranges Ragu sauces Knorr bouillon Improved natural ingredients: • More vegetables and herbs Now with a full serving of • Extra virgin olive oil vegetables in every half cup • Organic variants 10

We are also committed to a fortified foods programme that… Complementary Feeding Partnership for Child Nutrition Combating Iodine Deficiency Low-cost foods for infants in Reducing child malnutrition Iodised salt in Ghana and Latin America in India Nigeria spans three regions and three age groups Our innovation programme is targeting five key benefit areas Heart Beauty Health Immunity Weight and Management Strength Brain 11

Heart Health – Flora/Becel Omega 3 plus Packed with more omega 3 than any other spread or minidrink pro.activ Spreads, milk, yoghurt and mini- drinks clinically proven to lower cholesterol Mental development - Amaze A nutrient mix scientifically shown to improve learning and memory in school-aged children 12

We are focusing on five natural ingredients… Fruit and vegetables Tea Milk Oils Soy …where we have long-standing expertise Our brands’ heritage in tea dates back over a century We have been researching the dietary impact of vegetable oils since the 1960s Soy-based AdeS drinks were first launched in Argentina 20 years ago 13

Vegetables – Knorr “fresh” soups Healthy, premium ingredients Delicious recipes New packaging for a fresher taste Tea – Lipton Celebrating the unique combination of health benefits of tea, with antioxidants to fight free radicals 14

Oils – Family Goodness spreads “Goodness of margarine” Communication on healthy oils and fats in Europe and Africa Milk - Moo Delicious ice cream for kids with as much calcium as two glasses of milk + + 15

We are using our brands to promote physical activity and healthier lifestyles We use our brands to promote physical We work in partnership with the world Heart activity – such as the Flora London Foundation to promote healthy lifestyles Marathon – one of the world’s biggest participatory events We are committed to improving the information we provide our consumers Healthy choices made easy – My Choice • A simple consumer-friendly logo • Works across companies and categories • Products must meet benchmarks for saturated fat, trans fat, sodium, sugar • Now launched in 35 countries 16

In the UK GDAs are becoming standard on front of pack Responsible advertising and marketing practices • Our guiding principles – We sympathise with societal concerns about the advertising of food (especially to children) – We are working with regulators to find a proportionate response – We have adopted a our code of Marketing Principles that sets out limitations on advertising to children below 12yrs of age. • For example – In the UK we were one (of only two) manufacturers to support the FSA’s proposal to ban the advertising of foods high in sugar, fat and salt in children’s programmes. – In the USA we will participate in the “Advertising Pledge” programme – where 50% of adverts targeted at children under 12 must include a healthy lifestyle message. 17

Hygiene is our second key global pillar Hand washing Oral hygiene Laundry hygiene Home hygiene Our hand washing education programmes are broad The second biggest killer of children in the world is diarrhoea. Hand-washing can cut diarrhoeal diseases by 48% Lifebuoy’s hand washing programme in The programme has been launched in India is reaching 20% of the population sub-Saharan Africa in 2007 We are reaching over 250 million people 18

Our oral care programmes also reach millions Dental disease is the No.1 disease affecting children and a key cause of children missing school, especially those on low-incomes Our partnership with FDI World Dental In Nigeria our Schools Campaign will Federation involves 700,000 dentists in a global educate 2 million people about oral campaign – Live, Learn, Laugh health over 5 years 80% of food poisoning happens in the home Domestos works with the Red Cross in many countries to promote home hygiene Our household products improve domestic hygiene 19

Sustainability is our third pillar… Eco-efficiency Agriculture Water Greenhouse Gases Eco-efficiency is integral to our business performance Since then we have halved reduced our energy use and reduced waste by the water we use by 25% over 50% We have measured the impacts of our activities since 1995 20