Unilever N : Bernstein Strategic Decisions Conference 2020

Bernstein European Strategic Decisions Conference

Marc Engel, Chief Supply Chain Officer & Richard Slater, Chief R&D Officer

23rd September 2020

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; the effect of climate change

on Unilever's business; Unilever's ability to find sustainable solutions to its plastic packaging; 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. A number of these risks have increased as a result of the current COVID-19 pandemic. These forward-looking statements speak only as of the date of this document. 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 2019 and the Unilever Annual Report and Accounts 2019.

2.5bn 48k	190	60%
consumers	suppliers	countries
reached
12	1.3bn	sales in emerging
markets
billion euro	people helped to
brands	improve health		14 of the top 50 global
and hygiene
		90%	consumer brands
Home
Care
21%	Beauty &
Personal Care
Foods &	42%
Refreshment		local leaders
37%

Our emerging markets footprint continues to be a strength

Depth

India's largest

FMCG company

Strong #1 share

position

97% local managers

Unilever product in

every Indonesian

household

Breadth

>€500m16 markets

€100m	21
to
€500m	markets

Opportunity

Contributing over

60%

of global GDP

growth by 2030

Seeding the

future

GDP growth (PPP adjusted) 2020-2030 IMF, IFS

Macro uncertainty requires extreme agility

Rising Covid-19 cases

Asia

Europe

North America

Middle East

Latin America

Africa

Mar May Jul Sep

Wide range of economic	Volatile currencies and
outlooks	commodities

2019

2020

2021

2022

2023

2024

J

F

M

A

M

J

J

A

S

Crude

EUR/ BRL

COVID-19 cases: 7-day rolling average cases per day (6th September 2020)

Significant short term demand shifts

€26bn

Turnover H1 2020

€4bn

TO H1

2020

Hygiene

Q2 2019	Q2 2020
USG 5%	USG 26%

€8bn

TO H1

2020

In Home Eating

Q2 2019	Q2 2020
USG 0%	USG 17%

€4bn

TO H1

2020

Laundry

Q2 2019	Q2 2020
USG 9%	USG (1)%

€7bn

TO H1

2020

Personal Care

Q2 2019	Q2 2020
USG 3%	USG (10)%

€0.3bn

TO H1

2020

Prestige

Q2 2019	Q2 2020
USG 8%	USG (10)%

€2bn

TO H1

2020

Out of Home

Q2 2019	Q2 2020
USG 4%	USG (42)%

Hygiene: Skin Cleansing + Home & Hygiene Personal Care: Personal Care excl. Skin Cleansing

The Unilever Supply Chain

Reach

2.5 billion

consumers daily

448 distribution centres

5.3 million

shipments per annum

48,000 suppliers

221 production sites

3,352 production lines

844 third party manufacturers producing 16% of volumes

The Connected Supply Chain:

Creating competitive edge through an agile and efficient value ecosystem

Agility and resilience		Reshape asset and cost base		Positive for people and planet

Core enablers

Future-fit talent		Digital transformation		Partnerships for purpose

Challenges to business continuity in H1

Import and export	National lockdowns	Management of workforce
restrictions

Major changes in buying

Need to unlock capacity and

Shift to working remotely

behaviourcapability

Step up in growth in ecommerce

Requires changes in our supply chain setup

			•	Portfolio
		Q2 Growth
+78%	+48%	+62%	•	Fulfilment
eB2B	Brazil
+58%	+59%	8%	•	Order to deliver
Pure play	China			time
		% of H1 Total Sales	•	Winning with the
+120%	+177%
Omnichannel	USA			demand algorithms

eB2B excludes UFS

Agility in our own supply chain processes

Acceleration of complexity	Agile sales & operational	Cash management
reduction	planning

Multi-location sourcing	Strategic stockholding	Real time information and
		digital transformation

Reshape the cost and asset base

Transformation

Strong savings

Fixed asset intensity

programmes

5S

Manufacturing

ZBB

Logistics

Restructuring program

A business committed to people and planet

Climate	Nature	Clean Future
Net zero emissions 2039	Deforestation free 2023	Fossil fuels eliminated from cleaning
		products 2030

Plastic	Inequality	Enabled through digital
50% reduction in virgin plastic 2025	A fairer and more socially inclusive	transformation, transparency and
	world	partnerships for purpose

Supply chain at the heart of a winning Unilever

Strategy remains strong and "Covid resistant"

Short pause on transformation, now back to acceleration

Future fit to support the

"new normal" in

consumer demands

Richard Slater

Chief R&D Officer

23rd September 2020

R&D VISION

To innovate

boldly for people

and planet

Proud history of innovation

A strong and connected R&D team

Sustainability at our core

Differentiated science and technology

Global scale andlocal connectivity, & agility

R&D Key locations

Trumbull, US

Port Sunlight, UK

Colworth, UK

Wageningan, NL

Shanghai, CN

Bangalore, IN

Global Centre of Excellence

Key multi-market hub

18

Leveraging our strengths in response to COVID-19

		Innovation		Communities
Business continuity

>50% of R&D resource flexed	First global company to	€100m Unilever donations
through the year	prove effectiveness	to fight the pandemic
	against SARS-2-CoV virus	Converting R&D pilot
Over 800 new material and	300 Lifebuoy hand hygiene	plants to sanitiser
supplier approvals	SKUs launched in 60	production facilities
	markets in 8 weeks	Expert advice:
10x increase in use of our	Innovation programme	'Ask A Scientist' through
Digital R&D tools	on-track and launches	social media +100m
	delivered on-time	impressions

Impactful Innovation through Strategy, Discipline and Agility

Strategy

Sharp Category innovation strategies with clear choices

Focus on high growth spaces (channel / portfolio)

Defined right to win and differentiated propositions

Discipline

Identify, align and support scale innovation bets

Ruthlessly cut the tail to re-invest(-34% YTD)

Decisive post-launch reviews: Power-up, Pivot or Kill

Agility

New, agile and iterative innovation process

Unlocking creativity and speed (30% faster average speed to market)

Driving engagement in teams and better outcomes

Sustainability at our core

Clean Future - our differentiated Home Care strategy

Petro-chemicals	High carbon	Wastage	Single use plastic	Distrust in chemicals
chemistry	of water

100% renewable	Low carbon products	Water efficiency &	Recyclability, PCR	Products designed for
that work in quick and
or circular	biodegradability	Refill & re-use	consumer trust
cold wash
feedstocks

22

Superior performance

Greener formulations

Recycled Plastic packaging

23

Superior mildness for hands

100% renewable actives

From sustainable biotechnology

24 24

Smaller, lighter and better value for consumers

75% plastic reduction

Delivered outstanding early results

Differentiated Science & Technology

Over half of consumers experience odour or wetness issues

X3 efficacy and first ever clinical strength in an aerosol

Differentiated patented technology

760% global increase in hand sanitizers*

6 months from concept to launch

Kills 99.99% of virus and bacteria plus provides 8hr moisturisation

* Global market growth in previous 12 weeks

Vegan / plant based market worth $31bn by 2026

Invested €85m into state of the art foods innovation centre

Consumer preferred taste and experience

Global scale and local

connectivity & agility

Design for e-commerce

10X ecommerce growth vs. FMCG average

Happiness through the letterbox

Innovative packaging solutions for environment and consumers

R&D in Unilever

Innovate Boldly for People & Planet

Sustainability at our core

Differentiated

Science and

Technology

Global scale andlocal connectivity & agility

Future-focus:

Digital Technology unlocking innovation

Unilever: purpose led, future fit

Broad portfolio		Sustainable		Operational agility
and footprint		business model

Bernstein European Strategic Decisions Conference

Marc Engel, Chief Supply Chain Officer & Richard Slater, Chief R&D Officer

23rd September 2020