Unilever : Investor Event 2019 - Rohit Jawa, Jun Fang & Wai-Fung Loh

Unilever China

Rohit Jawa, EVP North Asia

Waifung Loh, VP Customer Development Jun Fang, VP Data and Digital

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.

China : Sustained growth

GDP	Consumption
6% ~ 6.5%	7% ~ 8%

8											10
7											8
6											6
5												4
2015	2016	2017	2018	2019	2015	2016	2017	2018	2019

Source: China bureau of statistics

China : Significant growth opportunity

Market growth

~6%

Online

Offline

20152019

Per capita consumption (Euro) China vs. Developed markets

40		US		JP		CN
				34
34					31

56

HairLaundry

Source: Kantar, Nielsen, UL categories

Source: Euro Monitor, World Bank

Changing China : Digitization

Digital life

Omni channel

Hyper	Online
Small Super
Market
/ Mini

Grocery

CVS

Large Specialist

Super Stores

(Baby, COS)

Source: Kantar

Media fragmentation

Traditional

eCommerce

Digital

Social

Source: PHD estimation, FMCG

Changing China : Upgradation

Increasing aspiration	Rise of lower tier
				cities
						59%
			67%
			Population	Total Consumption
Personalization	Sub	Experiential		2030E	2030E
	culture

China pride Convenience Balanced life

Sources: Kantar

More choice

No. of new brands

Shampoo

Offline +200

Online +520

Source: Nielsen, Kantar, 2017-2018

Unilever in China : History

1913
Lever Jr China visit	1986	2002	2012	2014	2017
Trading began	Re-entry	Hefei largest site	Tianjin site	Meishan factory	Korea M&A

1923	1999	2009	2013	2019
China Soap Co.	Unilever Co.	Global R&D centre	Water M&A	Japan M&A
		Ltd	in Shanghai

Unilever in China : Built to scale

World class

manufacturing

8 sites, 90% made in China 30

3P manufacturing and design

Deep and wide
reach
No. of
Distributors	800
2 X
400
2015	2019
26 logistic centers
30 key account relations
80% weighted reach

Digital commerce

25% share of business

200 dedicated team

Unilever China : Unique, strong talent proposition

Local leadership

Top employer

Diverse team

11 of 12 top team are Chinese	No 1 FMCG employer for 2 years	50% women
97% managers local	90% engagement score
40% below 30 years of age
~1000 strong alumni	3 drivers: Growth mindset, Career
development, Well being

Source: ChinaHR.com

Unilever China : Consistent, profitable growth

UOM%

3 Bn

TO (Euro) 1.5 Bn

F&R

HC

BPC

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019*

2019*: Q3 YTD TO annualized, and H1 UOM annualized

China for China

Decide in	Design	Move at	Do it the
for	China	China
China
China	Speed	way

Unilever China : Growth priorities

Grow core brand	Future fit portfolio	Go digital, deep and
penetration				wide

……

Key enablers

New organization		Fuel for growth		Sustainability

Grow the core penetration : 10 brands, 80% business

Superior product

Mental availability

Physical availability

100%	No 1.
Brand power
Winning vs. benchmark
Skin cleansing

600 Cities

c. 1 M total coverage >2M Chefs direct connect

Future fit portfolio : Accelerate premium portfolio

New Brand

New Benefit

New Formats

For p

Naturals

Good for you, good for the	Indulgence	New Bath Experience
planet

Future fit portfolio : Scale skin care business

No. 1			No. 1		No. 1		New
Body care brand		Facial wash Company		Volume brand		J-Beauty
in Tmall			in Tmall		in Tmall International

Go Digital : eCommerce all models at 25% contribution

Business to	Omni	Business to business
consumers

Foods delivery Ali Ling shou tong

Pure play

Home delivery

JD Xin tong lu

Social commerce

Mini program

+30% CAGR

Go Digital : Winning strategy

Portfolio designed for		Content to convert		Perfect execution
channel

Talent and organization

Go Deep : Lower tier cities

Distributors to cover lower tier cities Focus on priority city clusters

	D City
▲ Expansion Distributors	▲
	D City▲

• A City

D City	▲
	C City

1. City
   ▲

11% growth like to like

25% total growth

Business to Business to cover grocery

1M small stores

Big Store	Small Super	Cosmetic	Grocery
	/Mini

Weight

Action	Core		Expansion		Cosmetic		B2B
Distributor		Distributor		Distributor

Go Wide : New channels

Health & Beauty			Out of home

Traditional	Small	4-5 star	Chains
big restaurants	restaurants	Hotels

Best Supplier	Leading Food Service Team
Award 2019	Pride in 'Chefmanship'

Enabled by new organizational model

GROW

POWER

Hair	PW	Fab Sol	Fab	Skin	Life	Food	IC
Sen	Essential	Solution
	Omni Channel Team		Dedicated Customer Development Teams

Data and	Marketing	Supply Chain	R&D	Expertise
Digital Hubs	Services	Partners

RUN

Plan

Execute

Deliver

Collect

Enabled by new organization : Data and Digital Hub

Dedicated team	Data assets	Digital capability	Foundry

100+ FTE	Significant scale	AI
in 1st party data	Machine learning
	Natural language processing

40 pilots landed

100+ ideas inspired

700+ start-up referrals

Data and Digital Hub - Faster Innovation

Category trend forecast

by AI

Data and Digital Hub - Precision at mass scale

Well defined	Identify audience segments	Tailored assets based on
segments	via big data algorithm	sharp consumer insights

Trend addicts

Love seekers

Ingredient lovers

Data and Digital Hub - Consumer Journey Marketing

	Unilever X Ali Eco System : B2B2C pilot
Push: Business to business	Pull: to consumer
Sell in to stores on	Location based precision marketing	Conversion in stores
Ali LST platform	to consumer with ads and coupon	with coupon redemption
Ali Ling shou tong	Youku video app	Coupon function on Alipay	Tmall CVS

Enabled by fuel for growth and sustainability

Fuel for growth		Better, Less, No Plastic
	5S	2019
		Recyclable			PCR
		80%			20%

CHANGE

PROGRAM

Unilever in China for China !