PowerPoint Presentation

Building a case for sustainabilityShreya PatelOct 2016

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MAKE CLEANLINESS COMMONPLACE

Over 100 years ago, in 1885, our British founder William Lever started up his own business making Sunlight soap. He was a social entrepreneur who could see how selling low-cost branded soap at a time when cholera and dysentery in Britains Victorian slums were widespread could improve peoples lives and grow his business.He brought hygiene to millions of people who didnt know about the existence of germs or why hygiene was important. He did it by setting his company an inspiring purpose to make cleanliness commonplace and by using advertising to make cleanliness the new social norm.

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UNILEVER ISA GLOBAL COMPANYEUROPE

13.6 BILLION TURNOVER2.6% UNDERLYING VOLUME GROWTH 26% OF GROUP TURNOVERASIA/AMET/RUB

22.4 BILLION TURNOVER3.0% UNDERLYING VOLUME GROWTH 42% OF GROUP TURNOVERTHE AMERICAS

17.3 BILLION TURNOVER0.4% UNDERLYING VOLUME GROWTH 32% OF GROUP TURNOVER2015 TURNOVER = 53.3 BN

Today Unilever is a global company, with a turnover of over 53 billion and sales in nearly every country in the world.

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WE MAKE MANY OF THE WORLDS FAVOURITE BRANDS

We make many of the worlds favourite brands, and our products are used 2 billion times a day in over half the households on the planet.

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THE WORLD FACES NEW AND BIGGER CHALLENGES

William Levers purpose, which seemed audacious at the time, was achieved in Britain. But across the world we face new and bigger challenges:

nearly 800 million people are without access to safe drinking water and over 2 billion without access to proper sanitationmore than 2 million children die each year from preventable diarrhoeal disease1 in 10 adults is obese while almost 1 billion go hungryclimate change is causing extreme weather conditions and changes to the seasonsover a billion people live in water-scarce areasdemand for food is increasing to feed a growing population.

Governments struggle to agree and implement global solutions on climate change and human development. At Unilever we believe the world cannot wait, the urgency is now and that business and brands have to be part of the solution.

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MAKESUSTAINABLELIVINGCOMMONPLACE

So we have introduced a simple but clear purpose: to make sustainable living commonplace. We believe that this is the best way to ensure long-term growth.

We have made this our purpose because we believe its possible for 9 billion people the worlds population 30 years from now to live well and live within the natural limits of the planet.

And just as William Lever believed the only way to tackle poor hygiene was to make cleanliness desirable and aspirational.

so today we believe we can only achieve the better future we all want if we make sustainable living the new social norm.

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A NEW WAY OF DOING BUSINESSEQUAL OPPORTUNITY & SUSTAINABLE LIVELIHOODS SUSTAINABLY SOURCEDRAW MATERIALS THE PLANET PROTECTEDFOR FUTURE GENERATIONSACCESS TO WATER SANITATION & HYGIENE FOR ALL

But for us to achieve our purpose, we have to develop a new way of doing business, because the old economic systems are no longer fit for purpose.

So we are developing a new business model in which: All agricultural raw materials come from sustainable sourcesPeoples health and wellbeing are a priority Farmers livelihoods are improved and women get a fair dealAnd the planet is protected for future generations.

We see tackling these challenges not as problems to be solved but as opportunities to grow our business.

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Sustainability DRIVING value#collectiveaction30%Sustainable Living brands grew 30% faster than the rest of the businessOVER600mcumulative cost avoidance made since 2008

MOREGROWTHLOWERCOSTSLESSRISKMORETRUSTNo. 1employer in 34 countriesof our total energy use comes from renewable sources28%

The business case for growing a company sustainably is compelling. Consumers expect it. Retailers increasingly demand it from their suppliers. It drives innovation and market development. It saves money and avoids costs. And it inspires the people who work for our business. So this isnt just about doing good. Its also about doing well. In order to help capture the ways in which sustainability contributes to our business success, we have developed this simple four-point framework:Through more growthSustainability is supporting growth by deepening brand equity, driving sales and inspiring innovation. Our Sustainable Living brands are a good example more on those later. Lower costsBy cutting waste and reducing use of energy, raw materials and natural resources, we create efficiencies and cut costs. Cost avoidance ultimately help to improve our margins. We have achieved cumulative cost avoidance of over 600 million through eco-efficiency in our factories since 2008.Less riskSustainable ways of doing business help us mitigate risk across our operations. Operating sustainably helps us to future proof our supply chain against the risks associated with climate change and long-term sourcing of raw materials. More trustPlacing sustainability at the heart of our business model strengthens our relationships with stakeholders and helps us succeed as a business. It helps us maintain our value and relevance to consumers, whilst inspiring Unilevers current and future employees. Unilever is named number 1 employer in 34 countries.8

OUR VISIONTO GROW OUR BUSINESS, WHILST DECOUPLING OUR ENVIRONMENTAL FOOTPRINT FROM OUR GROWTH AND INCREASING OURPOSITIVE SOCIAL IMPACT

POSITIVE SOCIAL IMPACTBUSINESS GROWTH

DECOUPLEENVIRONMENTAL FOOTPRINT

Thats why at Unilever we believe that companies which address both the needs of the environment and the concerns of citizens will prosper over the long term.Its this thinking thats behind our vision, set by our Chief Executive Paul Polman, of growing the business whilst decoupling our environmental footprint from our growth and increasing our positive social impact.

Our blueprint for reaching our vision is the Unilever Sustainable Living Plan.

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Our plan#collectiveactionsustainable sourcingIMPROVING HEALTH ANDWELL-BEINGfor more than1 billionhealth and hygienenutrition

greenhouse gaseswaterwasteREDUCING ENVIRONMENTAL IMPACTby 1/2

fairness in the workplaceopportunities for womeninclusive businessENHANCING LIVELIHOODSFormillions

Unilever sustainable living plan

Launched in 2010, the Unilever Sustainable Living Plan is helping us achieve our vision. It is our blueprint for sustainable growth. Now in its sixth year, the USLP is proving that there is no trade-off between sustainability and profitable growth. It is helping us to save costs, fuel innovation and recruit and retain the best talent.

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3 BIG GOALS

HELP MORE THAN 1 BILLION PEOPLE IMPROVE THEIR HEALTH & WELLBEINGHALVE ENVIRONMENTAL FOOTPRINT OF OUR PRODUCTSENHANCE THE LIVELIHOODS OF PEOPLE AS WE GROW OUR BUSINESS

The Unilever Sustainable Living Plan is what guides us. We launched our Plan in 2010 and this has 3 ambitious goals.

We aim to:Help more than a billion people improve their health and wellbeing Halve the environmental impact of the making and use of our products Enhance the livelihoods of millions of people as we grow our business

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SUSTAINABLE LIVING BRANDS HELP GROW OUR BUSINESS2xTHE RATE OFGROWTH50%OF UNILEVERS GROWTHGREW 30%FASTER THAN THE REST OF THE BUSINESSGREWFASTERTHAN THEY DID IN 2014SUSTAINABLE LIVING BRANDSSUSTAINABLE LIVING PURPOSESUSTAINABLE LIVING PRODUCTS= +

We have defined how a brand can integrate sustainability into its purpose and products. This is what we call a Sustainable Living brand. Such a brand must not only have a clear purpose that contributes to a social or environmental concern. The product itself must also contribute directly to one or more of the targets we have set in the Unilever Sustainable Living Plan.

In 2015, we analysed our top brands using this definition and mapped this against their business results. Our Sustainable Living brands portfolio is increasing, and in the second year that we have measured their progress, we have found that:

Sustainable Living brands grew even faster than they did in 2014. They delivered nearly half our growthAnd grew 30% faster than the rest of the business.

We recognise that these results are correlation not causation.

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Supply Chain's role in delivering the USLP?

+++++RAW MATERIALSMANU-FACTURETRANS-PORTRETAILCONSUMERDISPOSAL23%2%3%3%1%

Manufacturing + suppliers + consumers = Supply Chain.

My team spends most of their energy on the 5%.... Look at how much opportunity exists with raw materials and more importantly influencing the habitsWe dont just take responsibility for our own impacts within the factory gates. We have to take responsibility for the total social and environmental footprint up and down the value chain. From the sourcing of our raw materials all the way through to the energy and water consumers use when they cook, clean and wash with our products. This is a big responsibility. 95% of our environmental impacts are outside our direct control.SC is what is in our control and allows us to show sustainability leadership. What we do in our own operations is important. Who we decide to source from is a big statement

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In trying to engage others, we know we must lead by example. In December last year we did just that: Ahead of the Paris Agreement, we announced our new goal to become carbon positive in our own operations by 2030, sourcing 100% of our energy from renewable sources. This means that in partnership with others, we will directly support the production of more zero carbon renewable energy than we need for our own operations.

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THERES NEVER BEEN A BETTER TIME TO CREATEA BRIGHTER FUTURE

We are at a turning point in history. A time when we all need to change the way we live and work for everyone on the planet to live well and live sustainably. A new business model with sustainable living at its heart.

Please join us on our sustainability journey. There has never been a better time to create a brighter future.

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YEAR201520142013201220112010TURNOVER ( BILLION)53.348.449.851.346.544.3UNDERLYING SALES GROWTH %4.12.94.36.96.54.1CORE OPERATING PROFIT ( MILLION)7,8657,0207,0167,0506,2766,017CORE EARNINGS PER SHARE ()1.821.611.581.531.371.31FREE CASH FLOW ( BILLION)4.83.13.94.33.03.4

UNILEVER FINANCIAL PERFORMANCE

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CATEGORY HIGHLIGHTSIN 2015

FOODS24% Turnover: 12.9 billionUnderlying sales growth: 1.5%PERSONAL CARE38% Turnover: 20.1 billionUnderlying sales growth: 4.1%REFRESHMENT19% Turnover: 10.1 billionUnderlying sales growth: 5.4%HOMECARE19% Turnover: 10.2 billionUnderlying sales growth: 5.9%

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THE GLOBALMANAGEMENT TEAMPaul PolmanChief Executive OfficerLeena NairChief Hr OfficerNitin ParanjpePresident , Home Care

Alan JopePresident, Personal CareGraeme PitkethlyChief Financial OfficerJan ZijderveldPresident, EuropeMarc EngelChief Supply Chain OfficerKees KruythoffPresident, North America

Keith WeedChief Marketing and Communications OfficerKevin Havelock President, RefreshmentRitva SotamaaChief Legal OfficerAmanda SourryPresident, FoodsDavid BlanchardChief R&D Officer

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