JAN ZIJDERVELDPRESIDENT, UNILEVER EUROPEJAN 20, 2017

FMCG in Transition

IS CHANGINGOUR BOSS...

… becoming more diverse and demanding

Diverse demographics

Discerning citizens Digitally savvyDuality DeflationValue savvy

More authentic, More concerned

1 out of 3 Europeans are already e-shoppers

25m Muslims, +2% p.a.

World of growth opportunities

Traditional retail shelf fragmentingNew formats, ecommerce, e-models

Industry 1.0: The big squeeze

More Promo Lower media spendLower innovation rate (-17%)

More Deflation Overall Market -1%

201620092009 201620162009

30%

40%

20152006

Value destruction in FMCG

Industry

How to reinvent our industry

Build brands and categories to grow markets

Improve holistic shopper experience

Manufacturers invest in growing brands…

Invest in quality Invest in innovation Invest in purpose

… and building categories

Unlocking new segments(Snacking)

Building category value(Improving CPW)

New routes to consumer

More Users More Value More Experiences

Retailers re-focus on ‘selling’ (vs. ‘buying’)

Re-invest in store Re-invest in growing formats

Integrate ecommerce

Building categories together

Up-Down

BUSINESS IS A GROWTH GAME