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Introduction to Unilever
February 2008
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Contents
Overview of Unilever Mission 3-4
Geographic reach 5 Categories and brands 6-7 Strategic priorities 8 Management & organisation 9-11 Social responsibility 12-13 Customer partnerships 14-15
Innovation driving growth 16-23
Local roots and global scale 24-33
Financial summary
10 year financial history 34-40 Commitment to shareholder value 41-44
Legal structure, governance and shares 45-51
Contact information 52
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This presentation may contain forward-looking statements, includingforward-looking statements within the meaning of the United States
Private Securities Litigation Reform Act of 1995. These forward-lookingstatements are based upon current expectations and assumptionsregarding 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 risksand uncertainties, there are important factors that could cause actualresults to differ materially from those expressed or implied by theseforward-looking statements. Further details of potential risks and
uncertainties affecting the Group are described in the Groups filingswith 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.
Safe harbour statement
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Our mission
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150 million times a day, in 150 countries, people use our products at keymoments of their day
Adding Vitality to life
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Scale and geographic reach
The Americas | 13bn | 33%
2007 Turnover 40billion
Europe | 15bn | 38%
Asia/Africa | 12bn | 29%
Present in 150 countries around the world
174,000 employees**as at end 2007
Our deep roots in local cultures and markets around the world give us our strongrelationship with consumers and are the foundation for future growth. We will bring our
wealth of knowledge and international expertise to the service of local consumers - a trulymulti-local multinational - extract from Unilevers Corporate purpose
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Personal CareIce Cream &Beverages
Home Care Savoury, Dressings &Spreads
19%
35%
18%
28%
Unilevers Portfolio of Categories
Savoury
Dressings
Ice Cream
Laundry
Household Cleaning
Deodorants
Spreads
Tea
Daily Hair Care
Mass Skin
Oral Care
World Number 1
World Number 2
Local strength
Leading Category Positions
Strong category positions
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Big global brands
12 billion brands
Top 25 brands = of Unilevers sales
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Unilevers strategic priorities
Personal Care D&E Vitality
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Group Chief Executive
President
Europe
President
Asia Africa
President
Foods
President
HPC
President
Americas
CHRO CFO
A global management team
Non-ExecutiveChairman
M. Polk K. Van der Graaf H. Manwani R. Kugler V. Banga S. Ogg J. Lawrence
P. CescauM. Treschow
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Categories
Deliver global platforms
Responsible for:
Brand development
Innovation
Research and Development
Accountable for:
Medium/long term market share
Brand health
Innovation metrics
Category value creation
Regions and Categories -
Clear, distinct, complementary roles
Regions
Execute on the ground
Responsible for:
Managing the business
Deploying brands and innovations
Customer management
Accountable for:
Growth
Profit
Cash flows
Short term market shares
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People are the heart of our business
Harnessing, developing and rewarding their skills, energy andcommitment is our priority
Unilever is one of the worlds most culturally diverse
companies, with top leadership from 21 nations.
More than 30% of managersworldwide are women.
Our people
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To succeed also requires, we believe, the highest standards of corporatebehaviour towards everyone we work with, the communities we touch, and the
environment on which we have an impact
Corporate responsibility
Unilever has led the food industry category of the DowJones Sustainability Indexes (DJSI) for the past 9 years.
Eco-efficiency reducing the impacts of our operations
Eco-innovation reducing the impacts of our products
Sustainability programmes in agriculture and water
Our Code of Business Principles
Supporting local communities
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Products with less environmental impact
Use less water
Create less packaging
Reduce product carbon footprint
Sustainable Agriculture
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Customer partnerships
Unilever manages a number of partnerships globally
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Unilever has unparalleled reach across the store, bringing unique shopperinsight to our partnership with customers
Customer partnerships
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Innovation driving growth
Vitality
Proprietary Technology
Ra
pidRoll-Out
T
ransfer
of
Mixes
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Rapid roll-out: Clear
Complete antidandruff and scalp care regime
Centrally developed and launched simultaneously across 7 countries
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Rapid roll-out: Small & Mighty
A revolutionary concentrated
laundry detergent rolled out acrossNorth and Latin America and Europe
Cleans a whole wash-load with justone small capful
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Strategy
Proprietary technology: Ponds Age Miracle
Skin that looks and feels younger
A revolutionary range of anti-ageing products designed specifically for theneeds of Asian skin
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Proprietary technology: Hellmanns Light
Delicious light mayonnaise withonly 5% fat
With unique citrus fibretechnology
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Vitality: Lipton
Liptons unique combination of health benefits,
with antioxidants to fight free radicals
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Vitality: Knorr Soups
Colour is a sign of goodness in nature, so the morecolour you eat, the better it is for you
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Transfer of Mixes: Axe in Japan
Axe achieves great success across diverse markets
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Local rootsand global scale
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The world population is set to grow by 800m by 2010:almost all of the increase will be in the developing world
By 2010 nearly 90% of world population will be in D&E
Consumer spending is growing faster in D&E than in thedeveloped world
Rising per capita income gives disproportionate growth in percapita consumption for Unilever categories
The D&E opportunity
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The D&E opportunity
0.5
2.6
2.6
Have lots
Haves
Have nots
D&E Population in 2007(billions)
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Annual per capita consumption ()
Source: Euromonitor 2006/7
Detergents Shampoo
The opportunity in our categories
0.20.7 0.7
4.4
4.9
India China
Indo
nesia Brazi
l
USA
1.0 1.6 1.4
8.9
16.8
India China
Indo
nesia
Brazil USA
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Non-packaged foods78%
Packaged foods
22%
A big foods opportunity
Source: Unilever estimates
% of Foods market in Asia Africa
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A major driver of Unilevers growth
Western
Europe
38%
North
America
23%
D&E
36%
% 2004 Sales % 2007 Sales
D&E
44%
North
America
21%
Western
Europe
32%
D&E underlying sales growth c. 8% p.a. since early 1990s
Other developed3%
Other developed3%
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Developed D&E D&E excl.Russia & China
Unileveraverage
D&E growth is profitable
2007 Operating margin before RDIs*
*Restructuring, Disposals, One-off Items
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Local roots
Understanding of the localconsumer
Brands and products across a widerange of income levels
Critical mass on the ground
Corporate reputation with localstakeholders and talent pool
Global portfolio of brands andcategories
Dedicated R&D investment
Shared values and standards ofbehaviour
Global scale
Leveraging our scale brings us
advantages over local competition
Our heritage and local expertise
mean that D&E is in our DNA
Local roots with global scale
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Building D&E markets
Shampoo sachetsRexona deodorant
mini-sticks
Knorr mini cubes
Small soap bars with
proven germ protection
Low price fabriccleaning sachets
Building markets byup-trading
Building markets bydriving penetration
Shampoo Conditioning & Styling
Packet Tea Tea Bag
Basic Clean Surf Excel Automatic
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Micro-marketing in D&E
Understanding our consumers - customising brand activation
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Note: From 2005, Unilever has fully adopted International Financial
Reporting Standards (IFRS). Information on this change can be found inthe FAQ section of the Investor Centre at www.unilever.com.
In the following section, historic trends are shown on a pre-IFRS basis forthe period 1996-2003. For 2004, both pre-IFRSand IFRS bases are shown. This section includesnon-GAAP measures. Definitions of these, andreconciliations to the GAAP measures can befound in the Investor Centre at www.unilever.com.
Financial performance
10 year history
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0
1
2
3
4
5
6
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
%
Underlying sales growth
Sales growth, excluding acquisitions, disposals, and exchange rate movements
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Operating margin
0
2
4
6
8
10
12
14
16
1997 1998 1999 2000 2001 2002 2003 2004 2004
IFRS
2005 2006 2007
%turn
over
Includes restructuring, disposals and impairments and one-off gains: (4.6)% (1.5)% (0.6)% (1.4)%2005 asset sale and 2006 US health care, UK pensions
Operating margin beia/ before RDI
Operating margin
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Capital efficiency
0
5
10
15
20
25
30
35
40
1997 1998 1999 2000 2001 2002 2003 2004 2004
IFRS
2005 2006 2007
as%turnover
Working capital
Fixed assets
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Return on invested capital
8.3
12.7
0
2
4
6
8
10
12
14
16
18
20
1997 1998 1999 2000 2001 2002 2003 2004 2004
IFRS
2005 2006 2007
%
Excluding disposal ofdiscontinued operations
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Cash flow
2.4
0
1
2
3
4
5
6
7
8
9
1997 1998 1999 2000 2001 2002 2003 2004 2004
IFRS*
2005 2006 2007
bn
Cash flow from operating activities Ungeared free cashflow *IFRS 2004 onwards:includes P&L charges for stock options and pensions
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Net profit
Note: 1997 adjusted to exclude exceptional items, incl. profit on sale of chemicals.Reported net profit for 1997 was 5.0bn
0
1
2
3
4
5
1997 1998 1999 2000 2001 2002 2003 2004 2004
IFRS
2005 2006 2007
bn
Net profit excl profit on disposal ofdiscontinued operations
Net profit from continuing operations
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Dividends
0
1
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Note: based on new shares following split and consolidation on 19 May 2006
0
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
per NV share
CAGR +8% pa
per PLC share
CAGR +10% pa
$ per NV share
CAGR +11% pa
Share price vs market index
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Share price vsmarket index
10 year history
0%
50%
100%
150%
200%
250%
300%
Jan-
97
Jul-9
7
Jan-
98
Jul-9
8
Jan-
99
Jul-9
9
Jan-
00
Jul-0
0
Jan-
01
Jul-0
1
Jan-
02
Jul-0
2
Jan-
03
Jul-0
3
Jan-
04
Jul-0
4
Jan-
05
Jul-0
5
Jan-
06
Jul-0
6
Jan-
07
Jul-0
7
Jan-
08
Unilever NV NY10 year CAGR
+9% pa
S&P 50010 year CAGR
+6% pa
Inde
xed
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0
7
14
21
1997 1999 2001 2003 2005 2007
our road to sustainable, profitable growth, creating long term value forour shareholders, our people, and our business partners
extract from Unilevers Corporate purpose
Unilever measures its Total Shareholder Return, over a 3 year rolling period,amongst a peer group of 21 other companies.
Peer group in 2007
AvonBeiersdorf
Cadbury Schweppes
Clorox
Coca-Cola
Colgate
Danone
Heinz
Kao
Kraft
Kimberley ClarkLion
LOral
Nestl
Orkla
Pepsico
Procter & Gamble
Reckitt Benckiser
Sara Lee
Shiseido
Unilevers TSR position relative to the peer
group over a rolling 3 year period
Commitment to shareholder value
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Financial strategyWe intend to maintain a competitive balance sheet and to use surplus cash toenhance shareholder returns
Overarching ambitionTop Third Total Shareholder Return, over a 3 year rolling period out of peer
group of 20 other companies
Outlook to 2010 Underlying sales growth of 3-5% p.a.
Operating margin >15% by 2010 after normal restructuring Improvement in Return on Invested Capital and cash flow
Management remuneration is aligned with these objectives
Financial objectives
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Unilever was formed in 1930 from two companies:
It was a full business merger, operating as a single business entity
Two separate legal parent companies were maintained:
- Unilever NV (Netherlands) and Unilever PLC (UK).
This works through an equalisation agreement and other contracts between the
two companies
Margarine Unie(Netherlands)
Lever Brothers(UK)
Legal structure, governance and shares
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Legal structure
Unilever NV and PLC have separate legal identities but operate as a single entity
NV shareholders
PLC shareholders
Directors
NV PLCEqualisation
One Unilever Operating Units
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These have evolved in response to developments in Europe (UK CombinedCode, Dutch Corporate Governance Code) and the US (Sarbanes Oxley, NYSElisting rules)
Unilever operates a unified board: the boards of NV and PLC comprise thesame directors
There is a majority of independent, non-executive directors on the board. The
Chairman is non-executive
The boards have ultimate responsibility for the business as a whole
Details of current arrangements can be found in the report and accounts in theinvestor centre at www.unilever.com
Corporate governance
Unilever firmly believes in maintaining high standards of CorporateGovernance
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Unilever NV ordinary shares or certificates (depositary receipts) are listed on thestock exchanges in Amsterdam and as New York shares on the New York StockExchange.
Unilever PLC ordinary shares are listed on the London Stock Exchange and asAmerican Depositary Receipts in New York. Each ADR represents 1 underlyingordinary PLC share.
There are 1 714 727 700 NV ordinary shares in issue, each with a nominal value of0.16.
There are 1 310 156 361 PLC ordinary shares in issue, each with a nominal value of3 1/9 pence.
The equalisation agreement between NV and PLC is such that each NV ordinaryshare has the same rights and benefits as each PLC ordinary share.
The combined share count excluding treasury stock, for calculating basic EPS, was2,853 million at the end of 2007.
Further information can be found in the investor centre at www.unilever.com
Share listings
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Unilever normally pays two dividends per year:- an interim dividend set at 35% of the previous years total dividend- a final dividend paid after the AGM Notes:
*Relates to regular interim and final dividends per ordinary share
Final 2007 dividends subject to AGM approvalUS dividends based on exchange rate on 7 Feb 2008
Share listings
Exchange
Share
Ticker
Dividend pershare 2007*
Earnings pershare - 2007
End 2007price
Amsterdam
UnileverNV
UNA
0.75
1.35
25.15
London
UnileverPLC
ULVR
0.51
0.92
18.90
New York
UnileverNV NY
UN
$1.09
$ 1.84
$36.46
UnileverPLC NY
UL
$1.02
$ 1.84
$37.42
S
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Share ownership* by country at the
end of 2007
Share listings as a percentage of
capital
* estimated
Share listings and ownership
NV NY
11%
PLC NY
2%
PLC
39%
NV
48%
Netherlands14%
USA23%
Other
32%
UK32%
T i di id d f US id
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This information is intended to provide general guidance only. Actual tax treatmentswill depend on specific circumstances. US residents should consult their local tax
advisers.
The information shown is generally applicable to a typical US resident.
Further information can be found in the Unilever Annual Report & Accounts, availableon the investor centre at www.unilever.com
Share
Unilever NV(Netherlands)
Unilever PLC(UK)
Local withholding tax US tax Effective tax on dividends
15% eligible for creditAgainst US income tax
Max 15% Max 15%
None Max 15% Max 15%
Taxation on dividends for US residents
Further information and contact
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Further information and contact
details
The IR team can be contacted bytelephone as follows:
+ 44 (0) 20 7822 6830
Or by e-mail at:[email protected]
The shareholder centre at www.unilever.com gives informationon how to purchase Unilever stock.
More information on Unilever is available at www.unilever.com