Becoming The Best

Unilever Supply Chain

Pier Luigi Sigismondi

From last year:

Unilever Supply Chain is Fit to Compete

With Passion to Win!2010/112009

Cost DrivenSupply Chain

Building

Foundations

2009

Lean and Agile value

chain

Fit to

Compete

2010/11

We are now Playing to Win

Supply Chain Creating Value

Winning is about

Sustainable Profitable Volume Growth

2009 2015

Gross Margin

%TO

Enabling Growth

DrivingGrowth

FundingGrowth

ImprovingMargin

Consistent Improvement in Quality

2009 2010 2011

Product Incidents

-68%

2009 2010 2011 YTD

Consumer Complaints

1.9%

-28%

YTD

Enabling Growth through Quality ExcellenceLifebuoy Case

Consistent Quality

Enabling Growth through Quality ExcellenceLifebuoy Case

Market Share >+80bps

Better consumer AttributesImproved Fragrance & Bar Structure

Consistent Quality

+=

Continuous improvement in all categories

Consistent Product Availability improvement

2008 2011 YTD

On Shelf product Availability More and More Stores

From 5 to 20 Countries

+700bps

Driving growth through Service Excellence

2011 2015

On Shelf product Availability Channels

Modern Trade

All Channels

From 20 to >150 Countries

Potential of 360bps UVG

+400bps

Superior Service in difficult times Flood in Thailand

Unilever Thailand

# 1

Consistent Working Capital improvement

Top League performance

-10%

-6%

-2%

2%

-2000

-1000

0

1000

2008 2009 2010

Closing WC Mio Euros WC %TO

+€2.1bn

Consistent Working Capital improvement

Top League performance

-10%

-6%

-2%

2%

-2000

-1000

0

1000

2008 2009 2010

Closing WC Mio Euros WC %TO

Funding growth through Excellence in Cash Management

+€2.1bn

Mexico Case

Integrated Business Planning&

Customer Integration

Step-up in CapEx to fuel growth

Increased focus on D&EIncreased focus on

growth and innovation

2008

Developed D&E

2008 20112011

+70%

+30%

Infrastructure and Savings

Growth and Innovation

IT

+40%

+70%

+50%

Increasing savings…

2006-2008 2009-2011

Sustainable Step Up in SC Savings…

1.9% +47%

2.8%

… but not reflected in higher margin

Savings %TO(avg)

Increasing savings…

2006-2008 2009-2011

Sustainable Step Up in SC Savings…

1.9% +47%

2009 2010 2011 H1

…but Gross Margin down

-230bps

2.8%

… but not reflected in higher margin

Savings %TO(avg)

Improving margins through Cost ExcellenceLow Cost Business Models

Replicable E2E Solutions Significant potential Reaping the benefits

Demand Volatility Management

Network Redesign

Direct Deliveries

Product Formulation

Improved A&P and TTS Investment

Indirects Management

1100bps

900bps

1350bps

850bps

920bps

Rollout to

Other Countries

&

New Categories

*

Operating Margin Improvement for Products in scope LCBM*

Commodity Risk Management is Essential Commodity Risk Management

Volatility

Start 2011 End 2011 2012

Reliability &Economic Protection

Unilever spend actively

hedged

Uncertainty

Commodity Price Trend Example

We are determined to be The Best

World ClassValue Chain

1. Global Scale & Local Agility

2. Lean Organisation

3. Speed

4. Partnership with Suppliers

5. Unilever Sustainable Living Plan

Enabler of Unilever’s Financial Growth Model

Unilever’s Supply Chain is UniqueSources of Competitive Advantage

Global Scale

€31bn ProcurementGlobal Sourcing from Low Cost Countries Scale in Logistics

76%

24%

Global Cluster

D&E >150 of 260 Factories

From Europe to Asia and Americas

Local Agility

> 160.000 Point of Sale Served > 7.000 Islands Served

Unique Route to Market Capabilities in Growing Markets

Local Agility: Differentiated Supply Chains

Local Agility: Differentiated Supply ChainsIndonesia Case

in General Trade

Individual, 24hrs Product Dispatch Drives profitable growth

New Route to Market

Before After

Normal Express Orders

>100%

Lean Organisation

Strong TeamLean Fast Decisions

3 layers between CSCO

and factory director

Shares vs main competitors

17

Direct

Reports

One Real Estate

Team

Four CapEx

signaturesOne

Purchasing Order

Savoury Over 2x

Skin Over 2x

Ice Cream Over 1.5x

…

One Information

PortalOne

Travel Cost & Compliance

Report

Speed: New launches in RECORD TIME

35 Markets

Global Sourcing

7 Factories

40 Moulds 9 Sizes7 Resins

Set-up in

<6 Months

Speed: New production lines in RECORD TIME

New production Lines

35% faster

In 30 Markets from 6 Factories

Speed: New Factories in RECORD TIME

€20M, -6 months €7M, -3 months €10M, -12 months

*€ Value Delivered , Time reduction versus Original Plan

Strategic Partnerships with Suppliers

Growing with suppliers through Innovation

Supplier Investment to

grow where Unilever grows

>€1.3bn Supplier Capacity

Investment

>90% D&E

>70Active supplier

initiated innovation

projects

500.000 smallholder

farmers linked into our supply

chain

Unilever Exclusive

Innovation

USLP

Unilever Sustainable Living Plan

ManufacturingSuppliers Customers

Sustainable sourcing of agricultural raw materials

TO

FROM

+20% Loading Efficiency56% pallets reduction

Rollout to other countries

14%100%

2010 2020

Absolute reduction Carbon Emissions

2.8

2.3

100

102

104

106

108

110

112

2008 2009 2010 2011

Total Load - Mio Tons CO2

Volume Index (2008 = 100)

20112010/112009

In Summary:

Cost DrivenSupply Chain

Building

Foundations

Supply Chain creating

Value

Playing to Win

Lean and Agile value

chain

Fit to

Compete

Be

The Best

World Class Value Chain

In Summary:

1. Operational Excellence: Foundation (Not a Destination)

2. Best in the Industry

3. Enabler of Unilever’s Financial Growth Model

Live Superior Service. Deliver Sustainable, Profitable Growth