Unilever Asia Hair Care

A Regionalized Global Strategy that drives & outpaces Market Growth & builds Margins

MichelDallemagne SVPHairAsiaAfrica

14th November2007 Mumbai

Safe harbour statement

Thispresentationmaycontainforward-lookingstatements,including'forward-looking statements'withinthemeaningoftheUnitedStatesPrivateSecuritiesLitigationReform Actof1995.Wordssuchas'expects','anticipates','intends'orthenegativeofthese termsandothersimilarexpressionsoffutureperformanceorresults,includingfinancial objectivesto2010,andtheirnegativesareintendedtoidentify suchforward-looking statements.Theseforward-lookingstatementsarebaseduponcurrentexpectationsand assumptionsregardinganticipateddevelopmentsandotherfactors affectingtheGroup. Theyarenothistoricalfacts,noraretheyguaranteesoffuture performance.Because theseforward-lookingstatementsinvolverisksanduncertainties,thereareimportant factorsthatcouldcauseactualresultstodiffermateriallyfromthoseexpressedorimplied bytheseforward-lookingstatements,including,amongothers,competitivepricing and activities,consumptionlevels,costs,theabilitytomaintainandmanagekeycustomer relationshipsandsupplychainsources,currencyvalues,interestrates,theabilityto integrateacquisitionsandcompleteplanneddivestitures,physicalrisks,environmental risks,theabilitytomanageregulatory,taxandlegalmattersandresolvependingmatters withincurrentestimates,legislative,fiscalandregulatorydevelopments,political, economicandsocialconditionsinthegeographicmarketswheretheGroupoperatesand neworchangedprioritiesoftheBoards.Furtherdetailsofpotentialrisksand uncertaintiesaffectingtheGrouparedescribedintheGroup'sfilingswiththeLondon StockExchange,Euronext AmsterdamandtheUSSecuritiesandExchangeCommission, includingtheAnnualReport&AccountsonForm20-F.Theseforward-looking statementsspeakonlyasofthedateofthispresentation

Agenda

Our goals for 2007-10

A unique in-depth knowledge of Asian consumer needs

The booming Hair Care market Hair care Asia experiences its best growth performance, outpacing organic market growth

Our growth is driven by three key thrusts

Future challenges

Summary

Our goals for 2007-2010 is superior sustained performance

We will continue to deploy a globally aligned 3-4 brand portfolio able to deliver: - Double digit turnover growth - Market share gains

- Continuous margin improvement through better product mix and positive strategic pricing

Key enablers

More centralised portfolio and brand management, to reduce risk and accelerate roll outs Sharper investment choices Full brand portfolio deployment, with regional adjustments Focus on innovation as THE key growth driver Better products through deployment of best-in-class technology A shift to more premium offerings, less reliance on price discounts

A unique in-depth knowledge of Asian consumer needs forms the base of superior sustained category performance

A deep knowledge of very diverse habits

India

China

Philippines

Japan

Pre wash habit Shampoo usage days Conditioner usage days Styling days Preferred packs Wash Water

Oiling

Sachets Buckets

Bottles Tubs

Sachets Buckets

Bottles Shower

Ethnicity defines hair fibre condition and quality

India

China

Japan

D > 70 microns Diameter Shape Texture Color Length Medium Elliptical Soft dark Very long

D > 80 microns High Round/ Elliptical Medium darker Long

D > 90 microns Highest Round Coarse Very dark Medium short

Factors that influence the scalp condition

Corneocytes (bricks)

Lipids (mortar)

Parameter
Sebum Typeof dandruff Histamine response Ceramides Measureof lipids

China
Higher Greasy High Uniform Higher Higher

UK Chinese
Lower Dry Positivefor dandruff Lowin dandruff Lower Lower

Environment, diet, play a significant role

Scalp biomarkers

A diversity in top consumer hair needs

India
HairFall Damage Longer/Strong Dandruff Shine 1 2 3 4 5

China
2 3 5 1 4

Japan
4 1 3 5 2

Sharply tailoring leading technology building blocks

HAIR NEEDS

e.g. Damage

through Surface + Fibre

technology

HABITS

ring Tailo logy no T e ch

Lubrication and Restoratives

+
Japan China India

FIBRE & SCALP BIOLOGY

Damage Intensity

The Hair Care market is booming

4 billion population, with increasing income, extended lifespan and with a dominant proportion of long hair

Hair care is an integral part of the Asian beauty care offering & fashion explosion

Hair is like my handbag Consumer Quote

(Video)

This fuels an explosion of more sophisticated & premium beauty Hair Care regime & rituals, continuously growing the market
Shampoo penetration in on a steady increase in China, India & Indonesia Additionally, the usership of post-shampoo ranges is fast-increasing across Asia

In Hair, the bulk of our growth will come from mass retail Wash & Care our focus area
GlobalHairMarket

DailyHair Care MASS RETAIL

Wash & Care 20bn

Asia W&C growing

4.2bn

5.0bn

6.4bn

2004
Styling

2007 est.

2012est.

Salons

Colorants

Hair Asia - A 5 billion euro market with consistent growth across key regions

Unilevermarketshare15%

+1% +7%
2007 2012

2007

2012

2.1 B

2.2 B

1.5 B

2.0 B

+12%

G. China
2007 2012

NEA

0.5 B

0.9 B

SA
2007

+5%
2012

1.0 B

1.3 B

SEA Asia Hair market projected to add 1.4bn by 2012. China and SA will lead this growth

Hair care Asia experiences its best growth performance, outpacing organic market growth
1) Growing double digit ahead of market & growing shares 2) Getting stronger where we lead historically, and leading the innovation initiative in China

Hair care Asia experiences its best growth performance, Outpacing Organic Market Growth

Unilever Hair Asia growing ahead of market growth Sunsilk, Lux and Clear, our 3 biggest brands drive turnover growth Most other brands also contribute

Growth is driven by China, SA and SEA clusters

Sep '07 Cum growth UL topline NEA cluster China group SEA & SA cluster Asia Low single digit (decline) Double digit + Double digit Double digit Market Low single digit Double digit Mid single digit Mid single digit

Hair care Asia experiences its best growth performance Improving margins
Hair is amongst the most profitable categories for Unilever Asia The topline drive is coupled with improvement to gross margins A combination of premium and innovative mixes, right strategic pricing and cost effectiveness have further improved gross margins

Gross Margin improvement

Up 110 bps Up 80 bps

Avg 05

Avg 06

YTD 07

Our Growth is driven by 3 Key Thrusts

1) A more complete 3-4 brand portfolio of globally aligned, bigger brands, in each country

2) That fully taps the full Market Pyramid Potential by meeting:

- Key consumer segment needs - Key market pricing points (from low LSM to High LSM)

- Key country stage of development opportunities

3) Supported by leading technology and fewer, bolder initiatives

A more complete 3-4 brand portfolio of globally aligned, bigger brands in each country

Urban

A DUAL GENDER AD EXPERT

A PREMIUM CARE & DAMAGE REPAIR EXPERT

Urban/Rural

A LARGE, FEMALE, BEAUTY CORNERSTONE BRAND

Rural

A FAMILY VALUE & HEALTH FOUNDATION BRAND

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Win the beauty game with superior 7days damage repair

Red status

C:/Events Matrix/Events Matrix SEA SA/SEA AP08 Meeting, Jul 07.

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A Brand Portfolio that fully taps the full market pyramid potential Key country stage of development opportunities

Shampoo+Conditioner+ RinseOffTMT+LeaveOnTMT Shampoo+Conditioner+ Mask+LeaveOn

JAPAN

CHINA

CHINA
Shampoo+Conditioner+Mask

INDONESIA
Shampoo+Conditioner

INDO INDIA

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Supported by leading technology and fewer, bolder initiatives

Lux Hair China

Lux Hair Japan

Dove Hair India

Clear Philippines

Our Key Challenges

India

Exploiting a rapidly expanding urban market (Dove Hair) whilst driving penetration & consumption in rural areas (Clinic), in a market growing by15%p.a.

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There are many Indias - each with huge growth opportunities

Shampoo penetration Indexed Consumption

82
Affluent

170

78

120
Aspirers

76

Urban Striving

80

68

Rural

50

Customized strategies for each India

JOBS TO BE DONE

ROUTES

Premium SHAMPOO & POST-SHAMPOO Formats

Affluent

Aspirers

URBAN UPTRADING Urban Striving

PENETRATION and FREQUENCY OF WASH

Rural

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Our Key Challenges

Japan

Growing market share, lead by Lux Hair, to create superior value & provide valuable innovation learnings for other markets in Asia

Japan is the biggest Hair Market in Asia

(2nd biggest in the world behind USA)

G CHINA 1.5bn MAT : 7%

NEA 2.1bn MAT : 1%

SA 0.5 bn MAT : 12%

SEAA

1.0 bn
MAT : 5%

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Japanese womans hair regimethe most sophisticated in the world

Wash Frequency

In a week 1 2 3 4 5 6 7 Wash Shampoo H. Con

When

Evening, before bed time 93% 93 % With body wash 60% 76% 72 %

Drying

Body

Use hair dryer 66 %

79 % 44 % 93 %

Post Wash

60% use Styling products (Mousse, Wax, Spray)

Colouring

JapaneseBathroom
70% coloured hair in last year

A vicious cycle of damage

Virgin hair
365 washes
Combing

35 hours under the blow-drier 55 styling irons sessions 6 razor cuts 5 straightening perms 8 colour treatments 1,000 hours in air-con environment

Brushing

Blow dryer

Styling Iron Bleach / Colouring (70 %) Perm (33%)

Severely Damaged Hair

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Lux Hair architecture fully leverages the key drivers of the market

Daily Damage Care

Enhance Shine

Severe Damage Care

Restore Shine

Sustaining a strong leadership vs. persistent aggressive attacks

there are many new seductive offers that come up...but in the end we always go back to Lux. (consumer blog entry)

16 14 12 10 8 6 4 2 0 7Local 10 A 12 2 4C Global 6 8 10 12 2 4 6 8 Local 10 T 12 2Local 4I 6 8 10 12 Local S 2 Global 4 C6 8 w42 H w44 Global

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Lux stays ahead with exciting innovations

Our Key Challenges

China

A challenger mindset with the launch of a new Clear Anti-Dandruff mix

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By 2010, the China hair market will be as big as Japan

G CHINA 1.5bn MAT : 7%

SA

NEA

2.1bn
MAT : 1%

0.5bn
MAT : 12%

SEAA

1.0bn
MAT : 5%

The AD segment is biggest in China nearly a 1 Billion Euro opportunity

55%

4%

22%

35%

20

A bold challenge with the launch of CLEAR

Growing steadily in top accounts

weekly moving upto upto 30th 30th Sep Sep weekly moving

RMB

700

650

600

550

500

450

400

5%
ShareinHandlers

350

300

250

200

150

100
12 /M ar 19 /M ar 26 /M ar pr /Apr /Apr /Apr /Apr ay ay /Jun /Jun /Jun /Jun ay ay 9 2/A 4 7/M 14/M 21/M 28/M 30 23 16 25 11 18 ul 2/J p g p p p g g g ul ul ul ul 9/J 16/J 23/J 30/J 6/Au 3/Au 0/Au 7/Au 3/Se 0/Se 7/Se 4/Se 2 1 1 2 1 2

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In Summary Hair is an attractive business, leading value creation for UL Asia

Unilever is a strong global player with a growth track record

Clear and Lux expansion are examples of whats different now

Full 3-4 brand portfolio deployment Strategic pricing full market piano Bolder innovation Better products. More premium propositions. Supported by best available technology. Faster roll outs

Unilever Asia Hair Care

A Regionalized Global Strategy that drives & outpaces Market Growth & builds Margins

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