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ABOUT UNILEVER
About Unilever
Unilever is one of the world’s leading suppliers of fast-moving consumer
goods. We aim to provide people the world over with products that are
good for them and good for others.
Creating a better future every day
Our vision
● We work to create a better future every day.
● We help people feel good, look good and get more out of life with brands and services that are good for them and good for others.
● We will inspire people to take small everyday actions that can add up to a big difference for the world.
● We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact.
Fast facts - 2009
163,000 employees at the end of the year
20 nationalities among our top tier managers
More than 170 countries in which our products are sold
264 manufacturing sites worldwide€891 million invested
in R&D worldwide
€89 million invested in community programmes worldwide
People are the heart of our business.
Our people
● We aim to create an environment in which all employees can fulfil their potential.
● Unilever is one of the world’s most culturally diverse companies. Our Board is made up of six nationalities and the nine members of the Unilever Executive come from six different countries.
Performance
Scale and geographic reach
The Americas €13 billion turnover4.2% underlying salesgrowth32.3% of group turnover
AAC€15 billion turnover7.7% underlying salesgrowth37.4% of group turnover
Western Europe €12 billion turnover -1.9% underlying salesgrowth30.3% of group turnover
2009 turnover €39.8 billion
● Good broad-based underlying sales growth of 3.5%
● Underlying volume growth of 2.3% – accelerating through the year
● Increased investment behind our brands
● Return to strategic acquisitions including TIGI and Baltimor
● Named International Supplier of the Year by Tesco for the fourth year running
Operational achievements in 2009
Sales growth 3.5%
Volume growth 2.3%
Savoury, dressings and spreads
● Turnover of €13,256 million
● Underlying sales growth of -0.1%
Category highlights in 2009
Personal care
● Turnover of €11,846 million
● Underlying sales growth of 5.3%
Ice cream and beverages
● Turnover of €7,753 million
● Underlying sales growth of 4.0%
Homecare & other
● Turnover of €6,968 million
● Underlying sales growth of 7.1%
Unilever financial performance
* Continuing operations
* Restructuring, disposals and one-off items** Continuing operations
Strategic Focus
Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers – a truly multi-local multinational.
Our long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously.
To succeed also requires, we believe, the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact.
This is our road to sustainable, profitable growth, creating long-term value for our shareholders, our people, and our business partners.
Our corporate purpose
Our ambition is to win share and grow volume in every
category and country.
Unilever’s growth priorities
Winning with brands and innovation
● Deliver superior products, design, branding and marketing
● Bigger, better, faster innovations● Appeal to more consumers across
needs and price points
Winning in the marketplace● Lead market development● Win with winning customers● Be an execution powerhouse
Winning through continuous improvement
● Lean, responsive and consumer-led value chain
● Drive return on brand support● Agile, cost-competitive organisation
Winning with people● Organisation and diverse talent
pipeline ready to match our growth ambitions
● Performance culture which respects our values
● Leverage our operating framework for competitive advantage
Our deep roots and early engagement in D&E markets give us invaluable consumer insight:● Understanding of the local
consumer● Brands and products across a
wide range of income levels● Critical mass on the ground● Corporate reputation with local
stakeholders and talent pool
Leveraging our scale brings us advantages over local competition:● Global portfolio of brands and
categories● Dedicated R&D investment● Shared values and standards
of behaviour
Local roots with global scale
LOCAL ROOTS GLOBAL SCALE
Of the 6.8 billion people in the world today, 5.9 billion live in developing and emerging markets – countries such as Brazil, India and Indonesia
where Unilever has deep roots and a wide presence. We already reach many more
consumers than our competitors in these markets.
The D&E opportunity
% 2004 Sales
% 2009 Sales
North America
23%
Western Europe
38%
D&E 36%
Other developed
3%
North America
16%
Western Europe
30%
D&E 50%
Other developed
4%
Categories, Brands and Regions
Unilever’s portfolio of categories
Leading category positions
Ice Cream & Beverages
Personal Care
Homecare
Savoury, Dressings & Spreads
Strong category positions
Top 25 brands = almost 75% of Unilever’s sales*.
* As at end 2009
Big global brands
CategoriesDeliver global platforms
Responsible for:● Brand development● Innovation● Research and development
Accountable for:● Medium/long-term market
share● Brand health● Innovation metrics● Category value creation
RegionsExecute on the ground
Responsible for:● Managing the business● Deploying brands and
innovations● Customer management
Accountable for:● Short-term market shares ● Growth● Profit● Cash flows
Clear, distinct, complementary roles.
Regions and categories
Unilever Foodsolutions is one of the world’s leading foodservice businesses.
● Works closely with customers, including caterers, restaurateurs and major hotel and fast-food chains, to create food solutions that help grow their business.
● Operates in 68 countries worldwide, employing 4,700 people, including 230 chefs.
● Holds leading positions in bouillons/bases, seasonings, sauces, soups, dressings, tea and desserts.
● Unrivalled combination of:
− Consumer insight
− Customer understanding
− Chefmanship® – culinary passion and expertise
− Well-known brands.
Foodsolutions
The Supply Chain
€15.3 billion spent on raw materials and packaging from over 10,000
suppliers in 2009.
Raw materials and ingredients
Our share of world volume:
Preliminary data pending audit.
264 manufacturing sites.
Continuous improvement in eco-efficiency in factories (1995–2009):
● 41% reduction in CO2 from energy
● 65% reduction in water use● 73% reduction in total waste
Manufacturing
Preliminary data pending audit.
Around one-fifth of Unilever’s sales are through ten major
retail chains.
Our products are sold in over 10 million small shops in
developing and emerging markets.
50% of sales from developing and emerging markets.
Distribution and retailing
Unilever manages a number of partnerships globally.
Customer partnerships
2 billion consumers use a Unilever product on any day.Top 13 brands with combined sales of €23 billion in 2009.€5.3 billion invested in advertising and promotion.€891 million invested in R&D.
Consumers
Innovation
Unilever is a world leader in research and development
(R&D).
Innovation driving growth 1
● €891 million invested in R&D in 2009
● At least 250 new patent applications filed each year
● A portfolio of more than 20,000 patents and patent applications
Competitive advantage through an integrated R&D
programme.
Innovation driving growth 2
● More than 6,000 R&D professionals
● 6 strategic R&D laboratories delivering groundbreaking technologies
● 31 major development centres developing and implementing product innovations
● 92 locations around the globe with R&D teams implementing innovations in countries and factories
Focused efforts that swiftly bring bigger innovations to
market.
Innovation driving growth 3
Knorr Stock Potrevolutionises bouillon
with a format that provides a more
authentic bouillon.
Small & Mightyis the industry’s first super-concentrated
liquid detergent, using one-third of the
packaging, one-third of the water and one-third
of the transport of dilute liquids.
Dove Body WashUses proprietary NutriumMoisture
technology, earning its scientifically-proven
claim to provide ‘effective natural
nourishment’.
Social and Environment
Helping society through our products and
programmes.
• 133 million people reached by Lifebuoy handwashing programmes since 2002
• 15 million people in 3 million households in India provided with safe drinking water through Pureit
• 44% of our products in line with internationally accepted guidelines for saturated and trans fats, sugar and salt
• Nearly 17 million school meals delivered to 80,000 children in 2009 through our partnership with the World Food Programme
• 45,000 women entrepreneurs reach 3 million consumers in 100,000 Indian villages selling Unilever products door to door
Social
* Measured by tonne per production. Preliminary data pending audit.
• We are committed to sourcing all palm oil from certified sustainable sources by 2015
• 15% of the tea we use globally is sourced from Rainforest Alliance CertifiedTM farms
• Over the period 1995–2009 we have achieved reductions of:
• 41% in CO2 emissions*• 73% in total waste*• 65% in water usage*
Eleven years as sector leader of the Dow Jones Sustainability Indexes.
Our goal is to double the size of the business whilst at the same time reducing our environmental
footprint. This encompasses the whole value chain – from the sourcing of raw materials through to consumer use and disposal of our products.
Environmental
Working in partnership is crucial in developing and delivering some of
our major sustainability commitments.
UN World Food Programme: to feed hungry children and improve their nutrition
World Heart Federation: to promote heart health
Global Alliance for Improved Nutrition: to co-create new approaches in food fortification to address malnutrition
FDI World Dental Federation: to improve oral health
Global Public-Private Partnership for Handwashing with soap: to promote good hygiene practice
UN Global Compact: to align business operations and strategies in the areas of human rights, labour, environment and anti-corruption
Our principal global partnerships are with:
Working with others
Structure
Unilever was formed in 1930 from two companies: Margarine Unie and Lever Brothers.
Legal structure and governance
Margarine Unie (Netherlands)
Lever Brothers (UK)
● It was a full business merger, operating as a single business entity.
● Two separate legal parent companies have been maintained:o Unilever NV (Netherlands) and
Unilever PLC (UK).● This works through an equalisation
agreement and other contracts between the two companies.
A global management team
Sandy OggChief HR Officer
Geneviève BergerChief R&D Officer
Michael PolkPresident Global Foods, Home & Personal Care
Harish ManwaniPresident Asia, Africa and Central & Eastern Europe
Doug BailliePresident Western Europe
Dave LewisPresident AmericasPaul Polman
Chief Executive Officer
Pier Luigi SigismondiChief Supply Chain Officer
Jean-Marc HuëtChief Financial Officer
Keith WeedChief Marketing and Communications Officer
Board of Directors
Chairman
Michael Treschow
Paul PolmanChief Executive Officer
Jean-Marc HuëtChief Financial Officer
Executive Directors
Non-Executive Directors
The Rt Hon The Lord Brittan of
Spennithorne QC, DL
Wim Dik Louise Fresco
Ann Fudge Charles Golden
Byron Grote
Narayana Murthy
Hixonia Nyasulu
Kees Storm Jeroen van der Veer
Paul Walsh