Unilever North America

Amanda Sourry

November 2019

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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.

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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.

Welcome to Unilever North America

Top Company for Working Mothers, working mother media #2 Best Company for Executive Women #6 Fatherly's 50 Best Places to Work for New Dads

Best Companies for New Dads, Working Mother Media Health & WellBeing Global Award Winner - Bronze US Best Employer for Healthy Lifestyles - Gold Canada's Best Diversity Employers Top Employer in Greater Toronto Area

Best Place to Work For Disability Inclusion Best Places to Work for LGBTQ Equality Best Companies for Multicultural Women, Working Mother Media

Diversity Best Practices Leading Inclusion Index Company Best of the Best for US Veterans Walmart 2018 supplier of the year: PC Walmart 2018 Supplier of the Year: Food

Walmart 2018 Supplier of the year: diversity Dollar general "2018" serving others vendor of the year

US leadership team

Ranch

Amanda Sourry

Esi Eggleston Bracey

Jostein Solheim

Terry Thomas

Eric Tiziani

Joey Bergstein

President

EVP B&PC

EVP F&R

EVP CD US

VP Finance

CEO, Seventh Gen

Rob Master

Alexandre Eboli

Mike Clementi

Alessandro Ventura

David Schwartz

VP Media/CMCO

VP SC

EVP HR, NA,

Head of IT

VP Legal General Counsel

Global CD, Global Markets

Context: How America is changing

Polycultural

Lack of trust

Income polarization

Transparency

Age bifurcation

Quest for wellness

Continued political divide

Increasing

environmentalism

The rise of "ubitech"

Social media driving

Omnichannel world

cultural

disruption

North America business overview

$10BN

Turnover

10%

>8,000 People

14 Factories

11 Distribution centers

  • NA Retail: 90%
  • GLobal Business Units*: 10%

#1

Unilever country

90%

turnover

profit

cash

16%

16%

19%

% of global contribution

*Prestige, Unilever Food Solutions, Dollar Shave Club, Tigi, T2

Our customer footprint

Mass & Club

Grocery

Health & Beauty

% Turnover: 40%

% Turnover: 30%

% Turnover: 10%

Out of Home

Discounters

e-Commerce

% Turnover: 10%

% Turnover: 5%

% Turnover: 5%

Our division footprint

Beauty and Personal Care

Foods and Refreshment

Home Care

>$6 bn ~60%

>$4 bn ~38%

$0.2 bn ~2%

North America Turnover

North America Turnover

North America Turnover

Focus on future-fit portfolio

Successful division portfolio reshape

50%

Mix

39%

2%

Division

59%

50%

2013

2014

2015

2016

2017

2018

BPC

HC

F&R

Market leading positions

Category

Relative

#1 Brand

Market Share

Skin Cleansing

3.0

Hair Care

1.1

Deodorants

1.3

Ice Cream

1.1

#2

Mayonnaise

1.4

Tea

2.3

Rice & Pasta Sides

1.1

Distinct divisional strategies

74% of BPC portfolio in momentum segments

Continue to drive leadership in

Turnaround Hair

Deos and Skin Cleansing

Future Fit

Reinvigorate

Portfolio

Proposition

F&R portfolio

focused on turnaround

Divest Spreads

Regain

Accelerate

Transform Tea

Dressings

premium Ice

competitiveness

Cream

Notwithstanding, topline momentum challenging in 2019

USG

+0.9%

5 Year

CAGR

1.5%

1.0%

0.8%

0.4%

0.4%

0.2%

2014

2016

2017

2018

2019 YTD

2015

Key 2019 challenges

US Hair

Dressings competitive

Ice Cream

battleground

List Price

Key 2019 successes: Growth momentum

Dove masterbrand

+4% Q3 YTD

Deodorant growth

+4% Q3 YTD

eCommerce growth

+47% Q3 YTD

Home Care growth

+21% Q3 YTD

And encouraging "green shoots"

Dressings growth

+4.0%

Dressings Q3 USG

Q2L12W

(60)bps +90bps

Market share change

Super premium IC brands

Tea transformation

+35 bps

Super premium IC L12

Brands growing at

FY 2017 FY 2018 YTD 2019

>4%:

Q3 2019 USG

Tea USG

Consistent and significant improvement in profitability

+500 bps

2013

2014

2015

2016

2017

2018

2019

H1

Underlying Operating Margin

+300 bps

>100%

2013

2014

2015

2016

2017

2018

2019

H1

Cash Productivity

Savings Programs

*All figures exclude Spreads & GBUs

Purpose-led,future-fit

PURPOSEFUL BRANDS

WINNING CHANNELS

DIGITAL

TRANSFORMATION

COST AND OPERATIONAL DISCIPLINE

PEOPLE WITH PURPOSE AND AN AGILE ORGANIZATION

Purposeful brands: Performance and impact

Improve People's

Improve the Health of

Contribute to a Fairer

Health, Confidence &

and More Socially

the Planet

Well-Being

Inclusive World

Plastics leadership

>50% PCR

100%

100%

Founding

for our MCO

Recyclable, Reusable or

2021

Members

2019 exit rate

of Packaging to be

How2Recycle Labels by

Compostable by 2025

Winning in winning channels: eCommerce

Differentiated models

Design for eCommerce

capabilities

Lead market for digital transformation

Digital rewiring end to end

Data Driven

Marketing

Future Fit

Operations

Digital

Transformation

Digital

Supply Chain

Employee

Experience

Building meaningful

relations at scale through

DDM

+30-50% engagement rate lift

per campaign through DDM

People with purpose and agile organization

People with

purpose

80% of North America employees have attended a Purpose workshop

69% of North America employees believe they can live their purpose in Unilever

73% of North America employees agree their job contributes to the USLP and drives sustainable growth

Agile organization

Delivering highest value, iteratively

and incrementally

100% key leaders

Cross-functional

formally trained by

innovation process

end of 2019

resulting in 25%

faster time to market

Our Purpose-Led, Future Fit Strategy is our Route to Winning in America

Unilever North America

Amanda Sourry

November 2019

Unilever US eCommerce

Ajay Salpekar

November 2019

The US eCommerce landscape for CPGs 5 years ago

+

The consumer's journey has also evolved

Discovery

87%

of shoppers

begin product

searches in

digital

channels

Convenience

2x

Searches for

same day

shipping have

doubled in 2

years

Omnichannel

x3

x 2

x1

  1. Store + Store
    only online onlinemobilStor

e

Source: Google 2018; Kantar Worldpanel; Salesforce & Publicis Sapient

eCommerce is already the leading growth driver for the US

5-Yr Market Growth Projection 2018-23

Unilever eCommerce CAGR 2017-19 YTD

In Categories where Unilever plays

+$10BN

Total US

+$6.3BN

eCommerce

Total US

+40%

+30%

+50%

+70%

Diversification is the key to sustained eCommerce growth

Click & Collect

Ship-to-Home

Last Mile Delivery

(National)

(Local)

Digital partnerships serve ice cream on demand

Omnichannel approach: Online drives offline, and vice versa

CASE STUDY

Search campaign

on Retailer.com

94%

94% of units lift occurred in store vs. 6% online

6%

We will continue to invest in and design for this growth channel in ways that fit our brands

Unilever US eCommerce

Ajay Salpekar

November 2019

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Unilever plc published this content on 14 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2019 14:44:03 UTC