Unilever Group

ANALYSIS for NYSE : UL MAY 21, 2012

BECEL, BLUEBAND, KNORR, HELLMANN'S Unilever's Market Share of Grocery 6 Global Market Size of Grocery 7

$

33.24
Trefis Estimate

$

32.25
$91 B MKT CAP
Market Price

EBITDA Margin of Becel, Blueband, Knorr, Hellmann's 8
DOVE, LUX SKIN & HAIR CARE

$93.4 B MKT CAP

See the Full Analysis for Unilever Group on Trefis
— CORPORATE SNAPSHOT —

Unilever's Skin Care Market Share 11 Global Skin Care Market Size 12 EBITDA Margin of Dove, Lux Skin & Hair Care 13
LIPTON BEVERAGES & SLIMFAST

Unilever N.V. (NYSE: UN) is a public limited company registered in the Netherlands, which has listings of shares and depositary receipts for shares on Euronext Amsterdam and of New York Registry Shares on the New York Stock Exchange. Unilever PLC (NYSE: UL) is a public limited company registered in the UK and Wales which has shares listed on the London Stock Exchange and, as American Depositary Receipts, on the New York Stock Exchange. The two parent companies, NV and PLC, together with their group companies, operate as a single economic entity, the Unilever Group. Business Information According to the latest 20-F, 6-K filings and Unilever's annual reports. 1. Unilever is a global market leader in Savoury, dressings and spreads. Unilever manufactures soups, bouillons, sauces, snacks, mayonnaise, salad dressings, olive oil, margarine, spreads and cooking products such as liquid margarines, and some frozen foods and markets them under key brands such as Knorr, Hellmann’s, Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Calvé, WishBone, Amora, Ragú and Bertolli. Savoury, dressings and spreads account for 33% of Unilever's revenues and 37% of its operating profit. 2. Unilever is a leading manufacturer of Ice cream sold under the international Heart brand, including Cornetto, Magnum, Carte d’Or and Solero, Wall’s, Kibon, Algida and Ola. Other popular brands are Ben & Jerry’s, Breyers, Klondike and Popsicle. Unilever is a leading manufacturer of tea beverages. Principal tea brands are Lipton, Brooke Bond and PG Tips. Ice cream and beverages business segment, as reported by the company, also includes weight management products, principally Slim-Fast, and nutritionally enhanced products sold in developing markets, including Annapurna and AdeS/Adez. Ice cream & beverages account for 20% of Unilever's revenues and 15% of its operating profit. 3. Unilever is a market leader in mass skin care products and deodorants, and comes at a second position in daily hair care. Principal brands in personal care include Dove, Lux, and Rexona (including Sure and Degree), Sunsilk (including Seda / Sedal), Axe and Pond’s. Other important brands include Suave, Clear, Lifebuoy and Vaseline, together with Signal and Close Up in oral care. Personal care accounts for 30% of

Unilever's Market Share of Tea Beverages 15 Global Market Size of Tea Beverages 17 EBITDA Margin of Lipton Beverages & Slim-fast 18
AXE & REXONA DEODORANTS

Unilever's Market Share of Antiperspirants and Deodorants 20 Global Market Size of Antiperspirants and Deodorants 21 EBITDA Margin of Axe & Rexona 22
WALL'S, ALGIDA & OTHER ICECREAMS

Unilever's Market Share of Ice Creams 24 Global Market Size of Ice Creams 25 EBITDA Margin of Wall's, Algida & Other IceCreams 26
OMO & SURF FABRIC CARE

Unilever's Fabric Care Market Share 28 Global Market Size of Fabric Care 29 EBITDA Margin of Omo & Surf Fabric Care 30
SIGNAL & CLOSEUP ORAL CARE

Unilever's Oral Care Market Share 32 Global Market Size of Oral Care 33 EBITDA Margin of Signal & Closeup Oral Care 34
CIF, DOMESTOS & SUNLIGHT HOME CLEANING

Unilever's Surface Care,Dish Care and Air Care Market Share 36 Global Market Size of Surface Care,Dish Care and Air Care 37

Unilever's revenues and 37% of its operating profit. 4. Unilever's Home care business includes laundry products, such as tablets, traditional powders and liquids for washing of clothing by hand or machine. Tailored products including soap bars are available for lower income consumers. Unilever's brands include Omo (‘Dirt is Good’ platform), Surf, Comfort, Radiant, Skip and Snuggle. Unilever's household care products include surface cleaners and bleach, sold under the Cif, Domestos and Sun / Sunlight brands. Home care accounts for 18% of Unilever's revenues and 12% of its operating profits. Customers and Suppliers Unilever’s products are generally sold through their own sales force as well as through independent brokers, agents and distributors to chain, wholesale, co-operative and independent grocery accounts, food service distributors and institutions. Products are physically distributed through a network of distribution centres, satellite warehouses, company-operated and public storage facilities, depots and other facilities. Around 50% of the raw materials that Unilever uses for its products come from agriculture and forestry. Unilever buys approximately 12% of the world’s black tea, 6% of its tomatoes and 3% of its palm oil. Unilever's strategies for growth have been to strengthen its existing popular brands through innovation and by improving its products rapidly to suit latest consumer preferences. Unilever has also accelerated changes in its production & distribution systems to make its supply chain more costcompetitive and deliver its products faster across multiple markets. "One Unilever" program is one such example. Unilever's business is highly diversified and it makes conscious efforts to have a workforce that is equally diverse so that it can cater to its consumers in international markets more efficiently.
— VALUATION HIGHLIGHTS —

EBITDA Margin of Cif, Domestos & Sunlight Home Cleaning 38
APPENDICES

Summary P&L for Unilever Group 42 Detailed Becel, BlueBand, Knorr, Hellmann's P&L 44 Detailed Dove, Lux Skin & Hair Care P&L 45 Detailed Lipton Beverages & Slim-fast P&L 46 Detailed Axe & Rexona Deodorants P&L 47 Detailed Wall's, Algida & Other Icecreams P&L 48 Detailed Omo & Surf Fabric Care P&L 49 Detailed Signal & Closeup Oral Care P&L 50 Detailed Cif, Domestos & Sunlight Home Cleaning P&L 51

1. Becel, BlueBand, Knorr, Hellmann's constitute 40% of the Trefis price estimate for Unilever Group's stock. 2. Dove, Lux Skin & Hair Care constitutes 32% of the Trefis price estimate for Unilever Group's stock. 3. Lipton Beverages & Slim-fast constitutes 8% of the Trefis price estimate for Unilever Group's stock.

TREFIS ANALYSIS for UNILEVER GROUP

CONTENT@TREFIS.COM

+ 1 617 394 8763

•2

See the Interactive Valuation Breakdown on Trefis Our share price estimate and the overall company value is derived by summing-up the values of individual divisions/businesses in a sum-of-theparts analysis. The value of each division is calculated using a discounted cash flow (DCF) methodology. We forecast fundamental drivers like pricing, market share, and profit margins for different businesses in estimating the division’s value within the DCF framework. The analysis below primarily focuses on those important forecasts that drive our share price and value estimate. Our complete analysis, including sources of historical data, underlying equations and additional discussion are available on www.trefis.com.
— POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE —

Axe & Rexona Deodorants Unilever's market share of Antiperspirants and Deodorants: We currently forecast Unilever's share of the global antiperspirants and deodorants market to grow from 30.2% in 2009 to 36.2% by the end of our forecast period. There could be a 1.2% downside to the Trefis price estimate if the market share were to remain flat at 2009 levels. Dove, Lux Skin & Hair Care Unilever's share of Global Hair Care market: We currently forecast Unilever's share of the global hair care market to grow from 9.4% in 2009 to 11.4% by the end of our forecast period. There could be a 1.4% downside to the Trefis price estimate if the market share were to remain flat at 2009 levels. Unilever's share of Global Skin Care market: We currently forecast Unilever's share of the global skin care market grow from 25.9% in 2009 to 27.9% by the end of our forecast period. There could be a 1.5% downside to the Trefis price estimate if the market share were to remain flat at 2009 levels. Omo, Surf Fabric Care Fabric Care segment's EBITDA Margin: We currently forecast Unilever's fabric care EBITDA Margin to grow from 11.4% in 2009 to 11.75% by the end of our forecast period. There could only be a 0.3% downside to the Trefis price estimate if the EBITDA Margin were to remain flat at 2009 levels. Wall's, Algida & Other Ice Creams Unilever's share of the Global Ice Cream market: We currently forecast Unilever's share of the global ice creams market to grow from 15.6% in 2009 to 19.6% by the end of our forecast period. There could be a 2.5% downside to the Trefis price estimate if the market share were to remain flat at 2009 levels.
— SOURCES OF VALUE —

Trefis believes Savory, Dressing and Spreads food division is the largest

TREFIS ANALYSIS for UNILEVER GROUP

CONTENT@TREFIS.COM

+ 1 617 394 8763

•3

source of value because: 1. Unilever's presence and leadership across food segments provides it significant leverage in brand loyalty, market place visibility and popularity • Unilever is a leading manufacturer of soups, bouillons, sauces, snacks, mayonnaise, salad dressings, olive oil, margarines, liquid margarines, spreads, ice creams and tea beverages. The numero uno position in the global grocery market provides Unilever significant brand visibility in supermarkets and small stores. This helps Unilever in maintaining its market share as shoppers tend to buy more of the easily available brands. 2. Unilever products have high popularity and loyalty in the international markets, as some of its brands are being sold for over two decades. Consumers perceive Unilever to be trustworthy as most of them have grown up consuming its brands. • Constant R&D efforts for product enhancement and innovations in marketing to support new product launch Unilever is trying to upgrade products that match growing demand for low calorie foods from increasingly health conscious consumers. This has not only aided sales growth through brand expansion but has also added significantly to Unilever's top-selling savory, dressings and spreads brand image. Besides, aggressive marketing efforts along with a wide supply chain, which is increasingly being integrated under "One Unilever" plan, has made Unilever's reach to its consumers faster. Below are some of the recent innovations in savory dressings and spread market segments: • In 2008, Unilever launched low fat liquid margarine under Becel / Flora brand name to overcome the spitting and burning that deterred consumers from using low-fat margarine for cooking. • In 2009, Unilever launched the Becel pro·activ Blood Pressure range, enriched with potassium to help manage blood pressure. Potassium helps maintain a healthy blood pressure, eliminating excess sodium in the body. • In 2009, Unilever launched Hellmann's Light and extra light mayonnaise containing its patented citrus fibre technology • In 2009, Unilever launched Frusi frozen yogurt, low calorie Solero
— KEY TRENDS —

1. Strengthening popular brands through innovation in product R&D and marketing • Unilever's strategy is to sell its less attractive businesses and focus

TREFIS ANALYSIS for UNILEVER GROUP

CONTENT@TREFIS.COM

+ 1 617 394 8763

•4

on more popular brands through innovation in R&D and marketing. Unilever continues to leverage technology to create bigger and better platforms, which are later rolled out to multiple markets through its wide supply chain network. Unilever uses consumer feedback on tastes and preferences for constantly improving its brands as well as for marketing and advertising new product features 2. Overhaul of supply chain and business operations ensure improved efficiency and operating margins • Unilever is actively working toward integrating supply chain and business operations to reach a large number of consumers across multiple markets in a more cost-effective way. Although restructuring charges related to streamlining of existing production and distribution infrastructure has negatively impacted Unilever's operating margins in the short term yet cost savings from boost in efficiency is expected to drive margins higher in the long term. Following are certain initiatives by Unilever to improve its business processes: • One Unilever program aims to integrate multiple business units into a single operating structure that could boost efficiency of business operations. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins in the long term despite increasing costs in the in the near future • Unilever's ongoing restructuring efforts are aimed at closing or streamlining over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive and to help Unilever sustain its operating margins in the future See the Full Analysis for Unilever Group on Trefis

TREFIS ANALYSIS for UNILEVER GROUP

CONTENT@TREFIS.COM

+ 1 617 394 8763

•5

and frozen foods. Weakening euro against dollar. dressing and spreads product substantial brand loyalty and brand recall among TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.5% of our $33. Forecast Rationale We considered the following factors for its forecast 1. DRESSING AND SPREADS – Unilever is the world's leading manufacturer of savory. the price at which a manufacturer like Unilever sells to the distributor) Unilever's Market Share of Grocery (%) 60 50 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that Unilever's Market Share of Grocery increased from 50. dressing and spread products amid recessionary macroeconomic outlook. mayonnaise. bouillons. spreads and cooking products such as liquid margarines.24 price estimate for this stock. LEADING MARKET SHARE OF SAVORY. salad dressings. Hellmann's division constitutes 40. Knorr. We expect Unilever's Market Share of Grocery to increase steadily reaching 49. Knorr.COM + 1 617 394 8763 •6 . sauces. Hellmann's business are: • Unilever's Market Share of Grocery • Global Market Size of Grocery • EBITDA Margin of Becel. Hellmann's/Amora and Bertolli are Unilever's top selling brands. followed by a fall to 49% by 2009 due to a 12% decline in dollar sales of savory.75% by the end of our forecast period. BlueBand. Hellmann's The Becel. based on our sum of the parts analysis. BlueBand. Blue Band/Rama. Knorr. Blueband. also had an impact in market share value. measured at Manufacturer's Selling Price (i. Knorr. Knorr. BlueBand.The most important drivers for the Becel. dressing and spreads with several brands generating over a billion dollar in annual sales. snacks. Hellmann's — UNILEVER'S MARKET SHARE OF GROCERY — It refers to Unilever's share of the dollar value of sales of grocery consisting of soups.Becel/Flora.4% in 2008. Having a leading market share provides Unilever's savory. globally.6% in 2005 to 57.Becel. margarines.e.

The size and scale of Unilever's products range helps it maintain and grow its market share. CONSISTENT PRODUCT INNOVATION TO SUIT CONSUMER PREFERENCE FOR LOW-CALORIE AND LOW-CARB FOODS – Unilever hasn't been complacent given its strong market share position but rather it has been constantly launching newer and improved products to satisfy growing demand from increasingly health conscious consumer. The breadth of products gives Unilever higher presence in stores. This has not only aided sales growth through brand expansion but also has added significantly to Unilever's top selling savory. dressings and spreads. Unilever launched the Becel pro·activ Blood Pressure range.COM + 1 617 394 8763 •7 . 2. globally. Unilever launched low fat liquid margarine under Becel/Flora brand name in order to overcome the spitting and burning that deterred consumers from using low-fat margarine for cooking. much scope for cross-promotions (selling different products together to the end consumer. measured at Manufacturers' Selling Price (i. eliminating excess sodium in the body. Unilever launched Hellmann's Light and extra light mayonnaise containing its patented citrus fibre technology . A key characteristic of fast moving consumer goods (which includes soaps. detergents. Potassium helps maintain a healthy blood pressure. the price at which a manufacturer like Unilever sells to the distributors) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. We believe that the following recent product innovations will help Unilever at least sustain its market share of savory. enriched with potassium to help manage blood pressure.consumers. Sources for historical data and explanations can be found on the Trefis. low calorie Solero smoothies. In 2009. shampoos etc) is that the presence in stores (which in turn depends on the size and scale of distribution) determines the market share since shoppers make most of their purchasing decisions at the store itself and what sells is predominantly what's available. In 2009. Unilever launched Frusi frozen yoghurt. IMPACT OF THE BREADTH OF UNILEVER'S PRODUCTS RANGE – Unilever has the widest range of products for any FMCG (Fast Moving Consumer Goods) company.e. 3. In 2009. In 2008. dressings and spreads brand image. This helps Unilever capture more shelf space and be more conspicuous in grocery stores and supermarkets as retailers stock more quantity of the popular brands.com website (link) — GLOBAL MARKET SIZE OF GROCERY — It refers to the dollar value of sales of grocery products consisting of spoon-able and pourable salad dressings & sauces. at attractive prices) along with negotiating better terms of trade (higher volumes to the retailer at better prices).

Forecast Rationale We considered the following factors in our forecast 1. a younger demographic (For instance. FUTURE GROWTH TO BE LED BY EMERGING MARKETS – New markets such as Asia-Pacific.3%.6 bill in 2009. Working couples. Africa & Middle East are attractive destinations for food & beverages companies like Kraft as their penetration in low in these regions as compared to US & Europe. reaching $49 billion by 2017.3 billion in 2005 to $37. Emerging economies have been witnessing a high in disposable income and standard of living.COM + 1 617 394 8763 •8 . HELLMANN'S — TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. India has close to half ifs population under the age of 25 years) compared to the aging population in US and Japan. KNORR. URBANIZATION AND EMERGENCE OF A MORE DYNAMIC LIFESTYLE LEADING TO GREATER DEPENDENCE ON PACKAGED FOODS – As a greater proportion of women enter the work force across the globe and particularly in the emerging economies. SAUCES AND DRESSING SERVE AS ADDITIVES TO FOOD – Sauces & food dressings market is poised for strong growth due to increasing consumption in main eatables which they supplement as well as because of the drive of adventurous consumers to keep looking for some new exotic tastes to satisfy them. This urban lifestyle too favors a growth in the Global Market Size of Grocery 3. 2. all contribute to high growth prospects of grocery market in emerging economies. Various sauces like tomato ketchup are being used with almost all kind of foods as they enhance the taste. BLUEBAND. This combined with a higher population growth rate.Global Market Size of Grocery ($ Bil) 50 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 The global grocery market size has seen a significant growth from $33. the end of our forecast period.com website (link) — EBITDA MARGIN OF BECEL. We expect Global Market Size of Grocery to keep growing annually at a constant rate of 3. Sources for historical data and explanations can be found on the Trefis. more international travel and access to international cuisines have exposed the consumers across the globe to a world of flavors and dressings. we expect the reliance on packaged foods to increase.

such as Stock-Based Compensation Expenses. Hellmann's increased to 19. due to the negative impact of substantial restructuring charges incurred in 2007-08 as a result of Unilever's plan to shrink cost-base through streamlining of supply chain. COSTS OF GOODS SOLD – Increasing prices of commodity and energy. would result in an increase in production costs for Unilever and put a downward pressure on its operating margins.5 15. General and Administrative. the end of our forecast period.5 10. Hellmann's to decline to 19% by 2017. Hellmann's is calculated after taking into account four main cost items: Cost of Revenue. We adjust EBITDA figures to exclude non-recurring charges and non-cash charges. EBITDA Margin of Becel. Blueband. One Unilever program aims to integrate multiple business units into a single operating structure. Knorr. and R&D Expenses. Blueband. Knorr.8% by 2010.3% in 2008. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins despite increasing costs in the long term .We believe the following factors will lead to rising EBITDA Margin of Becel.0 12. Knorr.5 0.COM + 1 617 394 8763 •9 .Earnings Before Interest. we expect EBITDA Margin of Becel. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. as the global economy recovers from recession. Taxes. Hellmann's (%) 20. Knorr. This will help Unilever improve its operating margins in the future TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. Knorr. Blueband. SG&A Expenses. A part of Unilever's ongoing restructuring efforts is to close or streamline over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive. However. reduction in overhead expenses and integration of multiple business units.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBITDA Margin of Becel. which would help boost efficiency of its business operations. such as Cost of Goods and Services Sold. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenue. Forecast Rationale We considered the following key factor for its forecast EBITDA Margin of Becel. and Research & Development. Hellmann's 1. Going forward. we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain.5 5. Blueband. Sales and Marketing. Knorr. EBITDA Margin of Becel.0 7. Post these charges. Blueband. Blueband. and 'One Unilever' program will counter any increase in costs of goods sold to a large extent. Hellmann's decreased from 16.0 2.8% in 2005 to 15.0 17.

9 1.7 1.2 1. 3.0 1.73 n/a 2012 20. BlueBand. SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its Selling and Marketing Costs over larger volumes.5 15. you can see the detailed P&L for the Becel.56 2015 22.4 15.54 4. Unilever too is expected to pass on a significant portion of these cost savings to the end consumer in the form of more competitive prices so as to gain the much coveted market share.94 n/a 2010 18.65 2016 23.10 2.40 3. RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous product improvement and introduction of new brands are expected to result in expenses in line with those over the last few years. However. the long term impact of which shall be seen in the future in terms of lower operating expenses.7 1.82 2018 25.5 1.65 2.42 2013 21.0 17. Knorr.6 19.48 2014 21. have resulted in substantial reduction in overhead expenses.64 4.7 15. we expect the Selling and Marketing Costs to decline as a percentage of Revenue in the long run.69 4. GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007.3 20.51 2.COM + 1 617 394 8763 •10 .2.74 2017 24. As a result.7 18. resulting in a gradual and sustained rise in EBITDA Margins.19 n/a 2009 18.3 16.97 2.06 3. This too shall enhance EBITDA Margins in the long run.59 4.42 3.1 1. Sources for historical data and explanations can be found on the Trefis. Research & Development costs are not expected to affect Unilever's EBITDA margins in the future.24 2. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation.74 4.5 0.8 1. Hence.4 1.com website (link) Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Bil $) Adjusted EBITDA (Bil $) Free Cash Flow (Bil $) 2008 20.49 3.4 19. 4.84 2. Hellmann's business in the Appendix (link) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.21 2.9 17.92 In addition. like most consumer goods companies.7 1.58 3.70 n/a 2011 19.38 2.8 17.

Forecast Rationale We considered the following factors in its forecast. India and South Africa.5% in 2008. Unilever's is well poised to grow its market share by virtue of its competitive position.Vaseline and Dove have a presence in over 80 countries. 1.COM + 1 617 394 8763 •11 . As consumer demand grows rapidly in emerging markets. MARKET LEADERSHIP IN GLOBAL MASS SKIN CARE – Billion Euro brands Dove. Unilever's Skin Care Market Share (%) 30 25 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that Unilever's Skin Care Market Share increased from 23. to help it gain market share globally. Lux Skin & Hair Care business are: • Unilever's Skin Care Market Share • Global Skin Care Market Size • EBITDA Margin of Dove. Lux Skin & Hair Care The most important drivers for the Dove. We expect Unilever's Skin Care Market Share to increase steadily reaching 29.9% in 2009 as dampened consumer demand amidst recessionary macroeconomic outlook in 2008-09 lead to a loss in developed market sales to private labels and emerging market sales to local/regional players. Brazil.Dove. Strong presence in the US market: Vaseline is the top selling hand and body lotion brand in the US.5% by the end of our forecast period. Lux Skin & Hair Care — UNILEVER'S SKIN CARE MARKET SHARE — It refers to Unilever's share of the dollar value of the global skin care market. Well entrenched in global markets: Lux is a market leader in high growth markets like Arabia. We expect Unilever to leverage its strong brand recall and established retailer relationship. strong brand recall and large scale. Dove is the top selling bar soap in the US.1% in 2005 to 27. and declined to 25. TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. Strong presence in the US and other mature markets will help Unilever gain market share as compared to competitors as consumer demand recovers in the economies. Thailand. Lux along with Pond's and Vaseline provide Unilever the #1 position in the global mass skin care markets.

8 billion at the end of 2009. The size and scale of Unilever's products range helps it maintain and grow its market share.com website (link) — GLOBAL SKIN CARE MARKET SIZE — It refers to the dollar value of sales of skin care products globally. offering various products to suit diverse consumer preferences. Sources for historical data and explanations can be found on the Trefis. the price at which the manufacturer such as Unilever sells to the distributors) Global Skin Care Market Size ($ Bil) 50 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that Global Skin Care Market Size increased from $32. 3. Unilever's marketing prowess combined with firm establishment in global markets will help the Sara-Lee brands to grow sales faster and positively affect Unilever's global market share.e. shampoos etc) is that the presence in stores (which in turn depends on the size and scale of distribution) determines the market share since shoppers make most of their purchasing decisions at the store itself and what sells is predominantly what's available.8 billion in 2005 to $36. detergents. at attractive prices) along with negotiating better terms of trade (higher volumes to the retailer at better prices). much scope for cross-promotions (selling different products together to the end consumer. Unilever's innovation capabilities have led to an expansion of its skin care brands into multiple segments.1 billion by the end of our forecast period. GROWING MARKET SHARE THROUGH ACQUISITIONS AND BRAND EXPANSION – We expect Unilever to gain skin care market share because Sara-Lee's acquisition in 2009 added personal care brands such as Sanex. We expect Global Skin Care Market Size to grow at 3. measured at Manufacturer's Selling Price (I. Recent launch of Dove pro-age range. TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. Dove summer glow self-tanning and Dove for men. Duschdas to Unilever's portfolio. Radox.4% annually and reach $48.COM + 1 617 394 8763 •12 . The breadth of products gives Unilever higher presence in stores. IMPACT OF THE BREADTH OF UNILEVER'S PRODUCTS RANGE – Unilever has the widest range of products for any FMCG (Fast Moving Consumer Goods) company.2. products are expected to support an increasing share global skin care market value sales. A key characteristic of fast moving consumer goods (which includes soaps.

Aging population: The number of older people in the US is growing. RISE IN VOLUME CONSUMPTION OF SKIN CARE PRODUCTS – The rise in volume consumption is due to an increase in the number of users (assumed at the global population growth rate of 1. RISE IN THE AVERAGE PER-UNIT PRICE OF SKIN CARE PRODUCTS – The rising input costs such as costs of raw materials.8% year-onyear. Taxes. which lead to higher sales of skin care products. as a consequence of declining fertility rates and increasing life expectancy rate especially in developed markets. Organic skin care products have also witnessed increase in consumer demand. 2. Increasing demand in emerging markets: Rising disposable incomes.Forecast Rationale We considered the following factors for its forecast. LUX SKIN & HAIR CARE — Earnings Before Interest. 1. Product innovation: Increasing number of skin care products in the premium segment due to increased innovation by cosmetics manufacturers is expected to increase revenues for overall skin care markets. Datamonitor forecasts the Global Skin Care Market Size to increase by 17. Hence. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenue. the rise in volume consumption (at 1. The rise in the consumption per user can be attributed to the following factors:. labour costs. SG&A Expenses. and R&D Expenses.8%) and rise in the consumption per user (at 0. such as Cost of Goods and Services Sold. such as Stock-Based Compensation Expenses.8% as revealed by the growth in per capita GDP at constant prices).8%) combined with rise in average per-unit price (at 0.COM + 1 617 394 8763 •13 . leading to a increase in demand for medicated skin care products. The rise in dollar value of skin care market can be split between rise in volume consumption of skin care products and a rise in the average per-unit price of skin care products. wellness and beauty: Consumers are growing increasingly aware of their health. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses.com website (link) — EBITDA MARGIN OF DOVE.4% year-on-year. selling and marketing expenses and other administrative expenses are passed on to the final consumer in the form of rise in prices. TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. We adjust EBITDA figures to exclude non-recurring charges and non-cash charges.6% over a period of five years until 2012. This coupled with high disposable incomes in mature markets is expected to increase consumer expenditure on skin care products. More R&D results in more specific products such as anti-aging etc. and increasing consumer awareness in emerging markets are expected to increase consumer demand for skin care products across all segments. Sources for historical data and explanations can be found on the Trefis.8%) is expected to grow the skin care market at 3.8%+0. as consumers grow increasingly aware of malfunction risk with chemicals products. We expect the prices to rise in line with historical average of 0. Increasing consumer awareness of health.

GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007.0 12. have resulted in substantial reduction in overhead expenses. we expect the Selling and Marketing Costs to decline as a percentage of Revenue in the long run.COM + 1 617 394 8763 •14 .0 7. as the global economy recovers from recession. Lux Skin & Hair Care decreased from 18. Lux Skin & Hair Care increased to 17.8% in 2007. However. Post these charges.EBITDA Margin of Dove. Lux Skin & Hair Care is calculated after taking into account four main cost items: Cost of Revenue. which would help boost efficiency of its business operations. due to the negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining of supply chain. Lux Skin & Hair Care 1. like most consumer TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. This will help Unilever improve its operating margins in the future 2. reduction in overhead expenses and integration of multiple business units. the end of our forecast period.5 0.We believe the following factors will lead to rising EBITDA Margin of Dove. General and Administrative. the long term impact of which shall be seen in the future in terms of lower operating expenses. EBITDA Margin of Dove. Lux Skin & Hair Care to rise to 18. One Unilever program aims to integrate multiple business units into a single operating structure. Sales and Marketing. However. A part of Unilever's ongoing restructuring efforts is to close or streamline over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive.5 15.5 5. This too shall enhance EBITDA Margins in the long run. Forecast Rationale We considered the following key factor for its forecast EBITDA Margin of Dove. we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain.8% in 2005 to 15. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins despite increasing costs in the long term . would result in an increase in production costs for Unilever and put a downward pressure on its operating margins. Lux Skin & Hair Care (%) 17.5% by 2017. resulting in a gradual and sustained rise in EBITDA Margins. COSTS OF GOODS SOLD – Increasing prices of commodity and energy.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBITDA Margin of Dove. and 'One Unilever' program will counter any increase in costs of goods sold to a large extent.5 10. we expect EBITDA Margin of Dove. and Research & Development. 3. SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its Selling and Marketing Costs over larger volumes.7% in 2010. As a result. Going forward.0 2.

you can see the detailed P&L for the Dove.3 74.33 10. Sources for historical data and explanations can be found on the Trefis.5 75.9 12.90 1.14 2.7 12.86 2.21 2018 20.34 3.5 75.67 2013 16.8 74. Research & Development costs are not expected to affect Unilever's EBITDA margins in the future.9 1.goods companies.4 13.5 0.75 1.7 1. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation.3 24.5 75.6 1.8 75.1 12.39 3. Lux Skin & Hair Care business in the Appendix (link) Lipton Beverages & Slim-fast The most important drivers for the Lipton Beverages & Slim-fast business are: • Unilever's Market Share of Tea Beverages • Global Market Size of Tea Beverages • EBITDA Margin of Lipton Beverages & Slim-fast — UNILEVER'S MARKET SHARE OF TEA BEVERAGES — It refers to Unilever's share of the dollar value of sales of beverages globally.79 2.8 1.23 n/a 24.7 13.e. measured at Manufacturer's Selling Price (i.26 n/a In addition.0 14.5 74.72 2. 4.9 25.5 10.09 26.1 15.48 n/a 24.20 2.0 17.97 2016 2017 18.6 25. the price at which the manufacturer sells to the distributor) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.4 73.COM + 1 617 394 8763 •15 .2 1. RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous product improvement and introduction of new brands are expected to result in expenses in line with those over the last few years.0 25.6 14.22 1.5 1.19 3.76 2014 2015 17.0 14.5 (% of total) Direct Expense (Bil $) Indirect Expense (Bil $) Adjusted EBITDA (Bil $) Free Cash Flow (Bil $) 2008 2009 2010 2011 12.24 3.2 73.6 19.08 2.60 n/a 2012 15. Unilever too is expected to pass on a significant portion of these cost savings to the end consumer in the form of more competitive prices so as to gain the much coveted market share.15 2.9 26. Hence.29 3.5 11.3 1.38 2.6 0.1 15.8 26.2 1.86 26.com website (link) Total Revenue (Bil $) Skin Care Revenues (% of total) Shampoos & Conditioner Revenues 24.55 2.06 1.9 73.2 74.2 16.4 0.

2% by the end of our forecast period. to continue driving Lipton brand sales higher.0 2. it provides the Lipton tea brand substantial brand equity. at attractive prices) along with negotiating better terms of trade (higher volumes to the retailer at better prices). LEADERSHIP POSITION IN TEA BEVERAGES – Unilever's Lipton brand has the lion's share of tea beverages market. which is nearly three times that of its nearest rival brand. particularly in rapidly growing markets of Asia. Trefis expects high brand recognition combined with operational synergies with parent Unilever. shampoos etc) is that the presence in stores (which in turn depends on the size and scale of distribution) determines the market share since shoppers make most of their purchasing decisions at the store itself and what sells is predominantly what's available. and declined to 10.5 5.COM + 1 617 394 8763 •16 . Lipton Pyramid tea bags that give the leaves more room to move and Lipton Cold Brew tea bags that allow iced tea to be TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. Forecast Rationale We considered the following factors in our forecast 1. we expect the Unilever's Market Share of Tea Beverages will increase steadily reaching 12. Africa and Latin America.7% in 2009. Tea beverage industry is highly fragmented and thus.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unilever's share of the global beverages market increased from 10% in 2005 to 11. 3.Unilever's Market Share of Tea Beverages (%) 12. A key characteristic of fast moving consumer goods (which includes soaps.0 7. The size and scale of Unilever's products range helps it maintain and grow its market share. North American Lipton Brisk range.5% in 2008. The breadth of products gives Unilever higher presence in stores. IMPACT OF THE BREADTH OF UNILEVER'S PRODUCTS RANGE – Unilever has the widest range of products for any FMCG (Fast Moving Consumer Goods) company.5 0. Asian Lipton ready-to-drink teas are helping Lipton expand rapidly into high growth ready to drink tea beverage segment.5 10. detergents. Going forward. which will continue to drive up its already large market share . much scope for cross-promotions (selling different products together to the end consumer. International Lipton Ice Tea range. INNOVATION LEADING TO A RAPID EXPANSION INTO NEWER HIGH GROWTH MARKET SEGMENTS – Lipton has been expanding rapidly into various high growth segments of the tea beverages market. as global recession sapped consumer demand with Unilever losing volumes to private labels in developed markets and to local/regional players in emerging markets. 2.easy access to a large customer base across multiple geographies through a large integrated supply chain network.

2. liquid concentrate (requires dilution prior to consumption) and ready-to-drink (RTD) beverages. READY TO DRINK (RTD) AND GREEN TEA VARIANTS HAVE STIMULATED CONSUMER DEMAND ACROSS THE WORLD – Increased promotion of health benefits that accrue from tea consumption and introduction of new products by tea companies has lead to an ever increasing demand for ready to drink tea and green tea products. Lipton has expanded into green tea market segment with Lipton Green leaf and ready to drink tea beverages. the end of our forecast period.2 billion in 2005 to $31 billion in 2009 at an annual average growth rate of 2. which had then grown to 50% in 2008 and is expected to reach the levels of TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. Sources for historical data and explanations can be found on the Trefis. As consumers become increasingly health conscious and spur spending on low calorie food and beverages. We expect Global Market Size of Tea Beverages to keep growing annually at a constant rate of 3% and reach $39.3 billion by 2017.4%.e. globally. leaf tea (loose.com website (link) — GLOBAL MARKET SIZE OF TEA BEVERAGES — It refers to the dollar value of sales of all forms of tea. bagged and stick forms). RISING WORLDWIDE POPULATION OF YOUNG URBAN CLASS AND CONSEQUENT RISE IN SNACKING – 30% of the world population lived in urban areas in 1950.freshly brewed in cold water in just five minutes are a few of the innovations Lipton has introduced in the popular leaf tea segment. Forecast Rationale We considered the following factors in our forecast 1. ready to drink and green tea will continue to see an increase in sales which would result in growth of tea beverage market. measured at Manufacturers' Selling Price (i.COM + 1 617 394 8763 •17 . the price at which a manufacturer like Unilever sells to the distributors). Global Market Size of Tea Beverages ($ Bil) 40 35 30 25 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 The global tea beverages market size grew from $28. consisting of instant tea (multi-serving containers and singleserve/on-the-go packets).

0 2. Post these charges. These rising numbers of young urban professionals. and R&D Expenses. Much of this growth in urban dwellers is driven by less developed nations as currently they have urban populations in the range of 40-44% compared to 74-75% for developed nations. are more attracted to ready-to-eat-food and thereby should drive the future growth of the world’s snacks market. This trend has raised the consumption of beverages as they are paired up with the snacks to form small meals.7% in 2010.8% in 2006 to 10. EBITDA Margin of Lipton Beverages & Slim-fast increased to 11.5 5.5 0. reduction in overhead expenses and integration of multiple business units. We adjust EBITDA figures to exclude non-recurring charges and non-cash charges.6% in 2009 and then came down to 10. we expect EBITDA Margin of Lipton Beverages & Slim-fast to rise to 11.0 7. This trend is underpinning growth across all beverage categories.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBITDA Margin of Lipton Beverages & Slim-fast decreased from 11. Going forward. such as Cost of Goods and Services Sold. owing to their busy lifestyles.com website (link) — EBITDA MARGIN OF LIPTON BEVERAGES & SLIM-FAST — Earnings Before Interest. Sources for historical data and explanations can be found on the Trefis.25% by 2017. such as Stock-Based Compensation Expenses. the end of our forecast period. due to the negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining of supply chain. Taxes. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses.5% in 2007. tea or juice). SG&A Expenses. Rise in snacking food habit has shown a positive impact on the beverage industry. on account of pricing pressures.70% by 2050.5 10. The world snack foods market stands enthused by the growing emphasis on convenience laid by timeconstrained consumers. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenue. EBITDA Margin of Lipton Beverages & Slim-fast (%) 12. Breakfast sandwiches have been identified as the top growing breakfast food in the developed economies. TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. and consumers are very likely to pair such meals with a beverage (especially coffee. and has driven manufacturers to roll-out portable packaging solutions compatible with vehicle consoles.COM + 1 617 394 8763 •18 .

13 5. One Unilever program aims to integrate multiple business units into a single operating structure.71 407 n/a 5. and 'One Unilever' program will counter any increase in costs of goods sold to a large extent.52 34. we expect the Selling and Marketing Costs to decline as a percentage of Revenue in the long run. which would help boost efficiency of its business operations.14 93.63 94.57 94.6 572 533 2018 5.37 93.57 94. 4.Forecast Rationale We considered the following key factor for its forecast EBITDA Margin of Lipton Beverages & Slim-fast is calculated after taking into account four main cost items: Cost of Revenue.12 4.3 3.87 33.93 94.32 22.9 545 507 6.72 5.2 601 560 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.We believe the following factors will lead to rising EBITDA Margin of Lipton Beverages & Slim-fast 1.2 3.94 5. we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain. GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007.1 443 412 2013 4.55 4.1 4.COM + 1 617 394 8763 •19 .1 4. RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous product improvement and introduction of new brands are expected to result in expenses in line with those over the last few years. Research & Development costs are not expected to affect Unilever's EBITDA margins in the future.12 6.com website (link) Total Revenue (Bil $) Slimfast & Other Nutrion Foods Revenues (% of total) Lipton & Other Beverages Revenues (% of total) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 2008 2009 2010 2011 3.72 3.69 31.34 5.73 41.37 37. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins despite increasing costs in the long term . Unilever too is expected to pass on a significant portion of these cost savings to the end consumer in the form of more competitive prices so as to gain the much coveted market share.4 3.4 454 n/a 5.61 93. would result in an increase in production costs for Unilever and put a downward pressure on its operating margins. However.55 39.4 3.83 94.3 518 482 2016 2017 4.25 30. the long term impact of which shall be seen in the future in terms of lower operating expenses.6 397 n/a 5. This too shall enhance EBITDA Margins in the long run.92 94.4 3.6 4. SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its Selling and Marketing Costs over larger volumes. Hence.05 34.2 420 n/a 2012 4. as the global economy recovers from recession. have resulted in substantial reduction in overhead expenses.33 6.8 495 460 5.74 94. As a result.0 467 434 2014 2015 4. Sources for historical data and explanations can be found on the Trefis. resulting in a gradual and sustained rise in EBITDA Margins.57 94.20 36. This will help Unilever improve its operating margins in the future 2. COSTS OF GOODS SOLD – Increasing prices of commodity and energy.92 5.53 3.4 4. 3. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation. Sales and Marketing. General and Administrative. and Research & Development. like most consumer goods companies.4 3. A part of Unilever's ongoing restructuring efforts is to close or streamline over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive. However.70 3.9 4.

COM + 1 617 394 8763 •20 .6% in 2008. Unilever's deodorant brand targetting male population.4% in 2005 to 31. Going forward. the end of our forecast period. we expect Unilever's Market Share of Antiperspirants and Deodorants to rise steadily reaching 35% by 2017. supported by strong brand recall and firm understanding of consumer preference TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. is a market leader in European and Latin American markets. The general trend of rise in market share with expansion into emerging markets was stalled in 2009 on account of recessionary macroeconomic outlook in 2008-09 wherein the consumers substituted with lower priced private labels and local brands amidst lower disposable income levels. LARGEST MARKET SHARE OF GLOBAL DEODORANTS MARKET – Unilever's Rexona brand is the largest deodorant brand by sales. you can see the detailed P&L for the Lipton Beverages & Slim-fast business in the Appendix (link) Axe & Rexona Deodorants The most important drivers for the Axe & Rexona Deodorants business are: • Unilever's Market Share of Antiperspirants and Deodorants • Global Market Size of Antiperspirants and Deodorants • EBITDA Margin of Axe & Rexona — UNILEVER'S MARKET SHARE OF ANTIPERSPIRANTS AND DEODORANTS — It refers to Unilever's share of global antiperspirants and deodorants market value. Unilever's Market Share of Antiperspirants and Deodorants (%) 35 30 25 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that Unilever's Market Share of Antiperspirants and Deodorants increased from 27.In addition. Forecast Rationale We considered the following factors in our forecast 1. followed by a decrease to 30.2% in 2009. Trefis expects Unilever to grow its market share as these highly popular brands are introduced into newer high growth markets. Axe.

1% annually. the price at which the manufacturer (Unilever) sells to the distributors. A key characteristic of fast moving consumer goods (which includes soaps. IMPACT OF THE BREADTH OF UNILEVER'S PRODUCTS RANGE – Unilever has the widest range of products for any FMCG (Fast Moving Consumer Goods) company. segments by continuously evolving its products and differentiating them from competing brands.com website (link) — GLOBAL MARKET SIZE OF ANTIPERSPIRANTS AND DEODORANTS — It refers to the dollar value of the sale of antiperspirants and deodorants globally.1 billion by 2017.5 10. TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. at attractive prices) along with negotiating better terms of trade (higher volumes to the retailer at better prices). 2.0 7. 3. reaching $12. we expect Global Market Size of Antiperspirants and Deodorants to grow at 3. The breadth of products gives Unilever higher presence in stores. Trefis expects Unilever to continue gaining market share leveraging the huge brand recall of its established brands. Unilever launched Dove hair minimizing deodorant in 2009 across 37 markets globally.5 5. i.and behavior associated Unilever's leadership position in several countries. INNOVATION IN PRODUCTS AND PROMOTIONS – Unilever has earned substantial brand equity for its deodorants brands as a result of continuing innovation in advertising and launch of new products. the end of our forecast period.e. shampoos etc) is that the presence in stores (which in turn depends on the size and scale of distribution) determines the market share since shoppers make most of their purchasing decisions at the store itself and what sells is predominantly what's available.3 billion in 2005 to $9. Global Market Size of Antiperspirants and Deodorants ($ Bil) 12.5 0.2%. at Manufacturer's Selling Price.COM + 1 617 394 8763 •21 . Going forward. We expect Unilever to continue expanding its brands into different regions. much scope for cross-promotions (selling different products together to the end consumer.4 billion at the end of 2009 at a CAGR of over 3.0 2. Unilever's Axe is among the most popular male grooming brand and has won several awards in Cannes for its prowess in brand promotion. The size and scale of Unilever's products range helps it maintain and grow its market share.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that Global Market Size of Antiperspirants and Deodorants increased from $8. Sources for historical data and explanations can be found on the Trefis. detergents.

5 5.8%. EBITDA Margin of Axe & Rexona (%) 17.5 0. Taxes. selling and marketing and other administrative costs rise. is a rise in the dollar value of the market size of deodorants and anti-perspirants at 3. Hence.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. the volume consumption is expected to rise at 2. which is in line with the historical average growth rate. The combined effect of a rise in volume consumption (at 2.5%).1% year-on-year. such as Stock-Based Compensation Expenses. Sources for historical data and explanations can be found on the Trefis.8%+0.7% over a period of five years until 2013.5% year-on-year.5 15.COM + 1 617 394 8763 •22 . SG&A Expenses. such as Cost of Goods and Services Sold. RISE IN AVERAGE PER-UNIT PRICE – As the input costs such as costs associated with raw materials.0 7.6% (=1.0 2.8%) year-on -year.com website (link) — EBITDA MARGIN OF AXE & REXONA — Earnings Before Interest. 1. Datamonitor [Source: Global Deodorants Market (2008)] forecasts the global deodorants market value to increase by 17. We expect the prices to rise in line with the historical levels of close to 0. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenue.6%) and a rise in per-unit price (at 0.Forecast Rationale We considered the following factors in our forecast. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. and rise in per-unit price of deodorants and anti-perspirants. labour. the growth in consumption on account of rising standards of living globally and rising disposable income levels in emerging economies contributes close to 0.8% to rise in volume consumption of deodorants and antiperspirants. 2.0 12. The rise in the dollar value of market size of deodorants and anti-perspirants is split between rise in volume consumption of deodorants and anti-perspirants. and R&D Expenses. the same shall be passed on the end consumer in the form of higher prices.5 10. We adjust EBITDA figures to exclude non-recurring charges and non-cash charges. Growth in consumption per user: As deduced from the Growth in Per Capita GDP at constant prices. RISE IN VOLUME CONSUMPTION OF DEODORANTS AND ANTI-PERSPIRANTS – Growth Rate of Global Population: The volume consumption increases with increase in the number of users at the global population growth rate of 1.

3.88 245 623 378 2013 3.48 294 779 485 2018 4. This will help Unilever improve its operating margins in the future 2. A part of Unilever's ongoing restructuring efforts is to close or streamline over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive. Unilever too is expected to pass on a significant portion of these cost savings to the end consumer in the form of more competitive prices so as to gain the much coveted market share.10 3. Research & Development costs are not expected to affect Unilever's EBITDA margins in the future. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation.24 276 715 439 2016 4. Going forward.85 2.81 3. COSTS OF GOODS SOLD – Increasing prices of commodity and energy.8% in 2005 to 15.7% in 2010. Sources for historical data and explanations can be found on the Trefis. One Unilever program aims to integrate multiple business units into a single operating structure. Sales and Marketing. and Research & Development.50 2.76 271 589 n/a 2012 3.39 194 510 n/a 2009 2. SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its Selling and Marketing Costs over larger volumes.95 3.36 285 746 461 2017 4.EBITDA Margin of Axe & Rexona decreased from 18.8% in 2007.12 267 685 417 2015 3. as the global economy recovers from recession.61 303 814 510 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.66 3. the long term impact of which shall be seen in the future in terms of lower operating expenses. we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain.com website (link) Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 2008 2.35 2. RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous product improvement and introduction of new brands are expected to result in expenses in line with those over the last few years. and 'One Unilever' program will counter any increase in costs of goods sold to a large extent. However.5% by 2017. Hence.01 258 655 397 2014 3. due to the negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining of supply chain.COM + 1 617 394 8763 •23 .15 2. have resulted in substantial reduction in overhead expenses. reduction in overhead expenses and integration of multiple business units.9 502 n/a 2010 3. resulting in a gradual and sustained rise in EBITDA Margins. This too shall enhance EBITDA Margins in the long run. GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007. General and Administrative. As a result. However.35 32.26 3.42 3. 4.We believe the following factors will lead to rising EBITDA Margin of Axe & Rexona 1. EBITDA Margin of Axe & Rexona increased to 17. the end of our forecast period. we expect the Selling and Marketing Costs to decline as a percentage of Revenue in the long run. would result in an increase in production costs for Unilever and put a downward pressure on its operating margins.59 179 558 n/a 2011 3. Post these charges. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins despite increasing costs in the long term . which would help boost efficiency of its business operations. like most consumer goods companies. we expect EBITDA Margin of Axe & Rexona to rise to 18. Forecast Rationale We considered the following key factor for its forecast EBITDA Margin of Axe & Rexona is calculated after taking into account four main cost items: Cost of Revenue.90 2.

Forecast Rationale We considered the following factors in our forecast 1. access to a large customer base across multiple geographies through a large integrated supply chain TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.In addition. Algida & Other Icecreams The most important drivers for the Wall's. we expect the Unilever's Market Share of Ice Creams will increase and reach 17% by the end of our forecast period.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Unilever's share of the global ice-creams market increased from 15% in 2005 to 17% in 2008. Rest of the industry is highly fragmented with the third largest player having less than half of Unilever's annual turnover.e.0 12.0 2. as measured at Manufacturer's Selling Price (i.0 7. the price at which a manufacturer like Unilever sells to the distributor) Unilever's Market Share of Ice Creams (%) 17.5 0. as global recession sapped consumer demand.5 15. next only to Nestle's 17%. Going forward. as Unilever grew its market share through acquisition of several ice-cream brands. higher brand equity.COM + 1 617 394 8763 •24 .5 10. Unilever's Market Share of Ice Creams however declined to 15. Algida & Other IceCreams — UNILEVER'S MARKET SHARE OF ICE CREAMS — It refers to Unilever's share of the dollar value of sales of Ice-Creams globally. This provides the Heartbrand ice creams substantial scale. you can see the detailed P&L for the Axe & Rexona Deodorants business in the Appendix (link) Wall's. STRONG MARKET SHARE POSITION AS COMPARED TO COMPETITORS – Unilever's ice cream sales are 16% of the global ice cream market. Algida & Other Icecreams business are: • Unilever's Market Share of Ice Creams • Global Market Size of Ice Creams • EBITDA Margin of Wall's.6% in 2009.5 5.

Trefis expects these factors to continue bolster Unilever's ice cream sales particularly in high growth markets of Asia.COM + 1 617 394 8763 •25 .com website (link) — GLOBAL MARKET SIZE OF ICE CREAMS — It refers to the dollar value of sales of ice-creams in form of cones.3 billion by the end of 2009. Sources for historical data and explanations can be found on the Trefis. the end of our forecast period.4 billion by 2017. Unilever has taken initiative to label its ice cream products with information on fiber. have been offered in snack size to facilitate consumption of smaller portions helping consumers in diet control Unilever has increased its presence in premium ice cream segment such as through acquisition of Ben& Jerry's and addition of super premium ice cream products like Chunkey Monkey. FOCUS ON PRODUCT INNOVATION TO CATER TO AN INCREASINGLY HEALTH CONSCIOUS POPULATION – Unilever has undertaken sustained R&D efforts and continuously evolve its ice-creams brands so as to suit changing consumer preferences.e. cups and other larger packages. This has led to a higher overall value of Unilever's ice cream portfolio as well as keeping at bay its lower cost competitors.1 billion in 2005 to $46. measured at Manufacturers' Selling Price (i. the price at which a manufacturer like Unilever sells to the distributors) Global Market Size of Ice Creams ($ Bil) 60 50 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that the Global Market Size of Ice Creams increased from $40. globally. For example following few initiatives along with others have been increasing icecream sales driven by higher acceptance and popularity among consumers. sugars values and other diet components. we expect Global Market Size of Ice Creams to grow at close to 2. reaching $56. Going forward.5% annually. sodium. offering low calorie ice creams such as Carte d'Or Light and Solero Exotic. As consumers are shifting to low calorie and healthy foods. Besides. candies. Popular ice-cream brands such as Cornetto and Magnum.network. Forecast Rationale TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. Africa and Latin America. Unilever has launched several new products and initiative to match these trends. 2. saturated fat.

Algida & Other IceCreams (%) 12. Post these charges. and R&D Expenses.5% in 2007. EBITDA Margin of Wall's. Sources for historical data and explanations can be found on the Trefis. Entry of international players is leading to the creation of efficient storage and distribution system under an integrated supply chain.5 5. INDIAN AND OTHER EMERGING MARKETS – Growing demand of dairy products. Expansion of premium segments as well as introduction of newer categories will help growth of global ice cream market. FASTER GROWTH IN CHINESE.com website (link) — EBITDA MARGIN OF WALL'S. such as Stock-Based Compensation Expenses. SG&A Expenses.5 10.8% in 2006 to 10. from consumers in emerging markets will continue to support growth in ice cream value sales. ALGIDA & OTHER ICECREAMS — Earnings Before Interest.We considered the following factors in our forecast 1. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenue. Rising disposable income and rising consumer appetite for packaged premium ice cream products. Trefis expects the following factors to sustain an increasing consumer demand in future . Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. Algida & Other IceCreams increased to 11. due to the negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining of supply chain.6% in 2009 and came down to TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. including ice cream. EBITDA Margin of Wall's. such as Cost of Goods and Services Sold. reduction in overhead expenses and integration of multiple business units. 2.5 0. Algida & Other IceCreams decreased from 11.0 2. GROWING COMPETITION AND HEALTH AWARENESS LEADING TO EXPANSION OF ICE CREAMS INTO NEWER PRODUCT CATEGORIES – Growing competition from private labels and increasing consumer demand for low calorie food products have lead leading manufacturers to introduce newer flavors and variants to expand their ice cream product offering.0 7. Taxes.COM + 1 617 394 8763 •26 . We adjust EBITDA figures to exclude non-recurring charges and non-cash charges. This would lead to an increasing supply of various ice cream products which were not available before in these markets.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBITDA Margin of Wall's.

48 7.02 8. Research & Development costs are not expected to affect Unilever's EBITDA margins in the future.10. 3.40 83.27 646 1.7% by 2010 on account of pricing pressures.03 384 2017 9.93 7.com website (link) Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Bil $) Free Cash Flow (Mil $) 2008 7.25% by 2017.79 614 0.08 643 0. Algida & Other IceCreams to rise to 11. 4. GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007.63 6.66 507 0. Unilever too is expected to pass on a significant portion of these cost savings to the end consumer in the form of more competitive prices so as to gain the much coveted market share. as the global economy recovers from recession. RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous product improvement and introduction of new brands are expected to result in expenses in line with those over the last few years.59 8. COSTS OF GOODS SOLD – Increasing prices of commodity and energy.03 630 0.88 307 2013 8. However.81 433 0. Sources for historical data and explanations can be found on the Trefis.91 315 2014 8.23 6. Going forward. like most consumer goods companies.88 8. General and Administrative. have resulted in substantial reduction in overhead expenses. we expect the Selling and Marketing Costs to decline as a percentage of Revenue in the long run. Sales and Marketing. A part of Unilever's ongoing restructuring efforts is to close or streamline over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive. As a result. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation.57 598 0. However.We believe the following factors will lead to rising EBITDA Margin of Wall's.84 n/a 2010 7.12 437 In addition. One Unilever program aims to integrate multiple business units into a single operating structure.COM + 1 617 394 8763 •27 .95 337 2015 9.93 n/a 2009 7.75 7. Algida & Other IceCreams 1. Algida & Other Icecreams business in the Appendix (link) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain.34 575 0.5 0.59 6.99 360 2016 9. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins despite increasing costs in the long term . the long term impact of which shall be seen in the future in terms of lower operating expenses. resulting in a gradual and sustained rise in EBITDA Margins.30 8.85 n/a 2012 8. would result in an increase in production costs for Unilever and put a downward pressure on its operating margins.07 409 2018 9.82 n/a 2011 7. and Research & Development.51 662 1. and 'One Unilever' program will counter any increase in costs of goods sold to a large extent. Forecast Rationale We considered the following key factor for its forecast EBITDA Margin of Wall's. you can see the detailed P&L for the Wall's. SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its Selling and Marketing Costs over larger volumes. This too shall enhance EBITDA Margins in the long run.77 677 1. which would help boost efficiency of its business operations.22 7. the end of our forecast period. Algida & Other IceCreams is calculated after taking into account four main cost items: Cost of Revenue. Hence. we expect EBITDA Margin of Wall's. This will help Unilever improve its operating margins in the future 2.

A key characteristic of fast moving consumer goods (which includes soaps. the price at which a manufacturer like Unilever sells to the distributors) Unilever's Fabric Care Market Share (%) 17. Going forward we expect Unilever's Fabric Care Market Share to rise to 17% by the end of Trefis forecast period. much scope for cross-promotions (selling different products together to the end consumer.0 2.Omo & Surf Fabric Care The most important drivers for the Omo & Surf Fabric Care business are: • Unilever's Fabric Care Market Share • Global Market Size of Fabric Care • EBITDA Margin of Omo & Surf Fabric Care — UNILEVER'S FABRIC CARE MARKET SHARE — It refers to Unilever's share of dollar value of sales of laundry products globally. and declined to 15.5 15.5 5.0 12. IMPACT OF THE BREADTH OF UNILEVER'S PRODUCTS RANGE – Unilever has the widest range of products for any FMCG (Fast Moving Consumer Goods) company.5 10. as measured at Manufacturer's Selling Price (i. The breadth of products gives Unilever higher presence in stores.6% in 2009 as Unilever sold its North American laundry business.0 7.6% in 2008. Forecast Rationale We considered the following factors in our forecast Supporting 1. shampoos etc) is that the presence in stores (which in turn depends on the size and scale of distribution) determines the market share since shoppers make most of their purchasing decisions at the store itself and what sells is predominantly what's available. detergents.5 0.COM + 1 617 394 8763 •28 .e.7% in 2005 to 17. at attractive prices) along TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that Unilever's Fabric Care Market Share increased from 15.

COM + 1 617 394 8763 •29 . the end of our forecast period. we expect Global Market Size of Fabric Care to grow at close to 3% annually reaching $58 billion by 2017. Mitigating 3.4 billion in 2005 to $46. having a global market share twice that of Unilever's. Global Market Size of Fabric Care ($ Bil) 60 50 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that the Global Market Size of Fabric Care increased from $41. WINDING UP OF NORTH AMERICAN BUSINESS TO BENEFIT BUSINESS IN OTHER REGIONS – Trefis expects that spinning off laundry care business in North America will help Unilever focus on other markets by stepping up brand advertising and new product launch. declines in pricing and sluggish volume growth prospects constrain any increase in Unilever's market share. the price at which the manufacturer sells to the distributors). Sources for historical data and explanations can be found on the Trefis. As competing brands try to gain access to consumers in markets where Omo & Surf are present. Going forward.with negotiating better terms of trade (higher volumes to the retailer at better prices). thus supporting it to maintain current market share position in regions where it faces increasing competition. globally. would limit Unilever's ability to gain market share in future.com website (link) — GLOBAL MARKET SIZE OF FABRIC CARE — It refers to the dollar value of sales of fabric care products such as detergents. TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. measured at Manufacturers' Selling Price (i.2 billion at the end of 2009. stain pretreatments and chlorine bleach. 2. INTENSE COMPETITION FROM LARGER BRANDS AND LOCAL PLAYERS IN LAUNDRY CARE BUSINESS – Trefis expects an increasing competition from leading laundry care brands such as Tide & Ariel (Procter and Gamble).e. The size and scale of Unilever's products range helps it maintain and grow its market share. fabric softeners.

SG&A Expenses.com website (link) — EBITDA MARGIN OF OMO & SURF FABRIC CARE — Earnings Before Interest. and R&D Expenses. fabric softener and other laundry additives. reduction in overhead expenses and integration of multiple business units. 3.0 7.COM + 1 617 394 8763 •30 . Taxes. derivatives of which constitute key ingredients) 2.. EUROMONITOR [SOURCE: GLOBAL LAUNDRY MARKET] FORECASTS THE GROWTH IN GLOBAL MARKET SIZE OF FABRIC CARE TO BE AT 3% FOR THE PERIOD UNTIL 2012. – Given the nature of the product. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenue. historically and determined by price of crude oil. EXPANSION INTO LIQUID DETERGENTS AND FABRIC SOFTENER – The global laundry products market is expected to expand with the increasing adoption of concentrated liquid detergents. due to the negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining of supply chain. the growth is primarily driven by increase in the number of users (at global population growth rate of 1. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. IN LINE WITH THE HISTORICAL GROWTH RATES. EMERGING MARKETS EXPECTED TO DRIVE GROWTH – Growing disposable income of consumers in emerging markets such as Asia and Latin America would bolster demand for powdered/liquid detergents as consumers shift from traditional hand washing to using machine and laundry services.8%) and year-on-year price rise (close to 1. we expect EBITDA Margin of Omo & TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.2%.8% in 2007. We adjust EBITDA figures to exclude non-recurring charges and non-cash charges.2% in 2005 to 9. Sources for historical data and explanations can be found on the Trefis. EBITDA Margin of Omo & Surf Fabric Care decreased to 9% by 2010.0 2. Post these charges. Going forward.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBITDA Margin of Omo & Surf Fabric Care decreased from 11. such as Stock-Based Compensation Expenses. such as Cost of Goods and Services Sold. EBITDA Margin of Omo & Surf Fabric Care (%) 10.5 0.Forecast Rationale We considered the following factors in our forecast 1.5 5.

which would help boost efficiency of its business operations. As a result.09 626 824 198 2015 9.com website (link) Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 2008 7.91 432 685 n/a 2011 7.21 6. This too shall enhance EBITDA Margins in the long run. Sources for historical data and explanations can be found on the Trefis. we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain. we expect the Selling and Marketing Costs to decline as a percentage of Revenue in the long run. A part of Unilever's ongoing restructuring efforts is to close or streamline over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation. However. Research & Development costs are not expected to affect Unilever's EBITDA margins in the future. have resulted in substantial reduction in overhead expenses. RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous product improvement and introduction of new brands are expected to result in expenses in line with those over the last few years.89 7.3 9. would result in an increase in production costs for Unilever and put a downward pressure on its operating margins.70 668 908 239 2017 9.27 7.95 9. as the global economy recovers from recession. However. like most consumer goods companies. the end of our forecast period. Hence. Unilever too is expected to pass on a significant portion of these cost savings to the end consumer in the form of more competitive prices so as to gain the much coveted market share.19 528 705 n/a 2009 7.39 647 865 218 2016 9. SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its Selling and Marketing Costs over larger volumes. One Unilever program aims to integrate multiple business units into a single operating structure.2 789 n/a 2010 7. GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007. you can see the detailed P&L for the Omo & Surf Fabric Care business in the Appendix (link) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. and 'One Unilever' program will counter any increase in costs of goods sold to a large extent.96 7.42 83.COM + 1 617 394 8763 •31 . General and Administrative.80 606 785 179 2014 8. This will help Unilever improve its operating margins in the future 2. Sales and Marketing.30 705 993 287 In addition. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins despite increasing costs in the long term .52 578 748 169 2013 8. 3.75% by 2017.61 8.We believe the following factors will lead to rising EBITDA Margin of Omo & Surf Fabric Care 1.60 6. Forecast Rationale We considered the following key factor for its forecast EBITDA Margin of Omo & Surf Fabric Care is calculated after taking into account four main cost items: Cost of Revenue. and Research & Development. resulting in a gradual and sustained rise in EBITDA Margins. 4.Surf Fabric Care to rise to 9.59 7.26 8. the long term impact of which shall be seen in the future in terms of lower operating expenses.92 8.25 646 709 n/a 2012 8.00 687 949 262 2018 10. COSTS OF GOODS SOLD – Increasing prices of commodity and energy.

STRONG ADVERTISING CAMPAIGNS SUPPORT HIGH POPULARITY: UNILEVER HAS GAINED SIGNIFICANT POPULARITY OF ITS BRANDS ACROSS THE WORLD.Signal & Closeup Oral Care The most important drivers for the Signal & Closeup Oral Care business are: • Unilever's Oral Care Market Share • Global Market Size of Oral Care • EBITDA Margin of Signal & Closeup Oral Care — UNILEVER'S ORAL CARE MARKET SHARE — It refers to Unilever's share of dollar value of sales of oral care products globally. Buoyed by its success Unilever plans to roll-out the campaign in many other parts of the world further adding to its Unilever's brand equity.3% in 2005 to 5. Forecast Rationale We considered the following factors in its forecast Supporting 1.COM + 1 617 394 8763 •32 . Unilever's Oral Care Market Share (%) 7 6 5 4 3 2 1 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that Unilever's Oral Care Market Share increased from 4. and declined to 5.2% in 2009 as Unilever's sales dropped sharply because of global recession and lost share to private labels in developed markets and to local/regional players in emerging markets We expect Unilever's Oral Care Market Share to increase gradually reaching 6. TREFIS EXPECTS THE FOLLOWING RECENT INITIATIVES BY UNILEVER TO HELP IT GAIN MARKET SHARE IN ORAL CARE PRODUCT SALES. Unilever has taken several initiatives to TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. – "Brush Day+Night" ad campaign launched to encourage families to brush teeth twice daily has been successful in markets such as China.5% by the end of our forecast period.5% in 2008. THROUGH INNOVATIVE ADVERTISING CAMPAIGNS. PARTICULARLY EMERGING MARKETS.

toothbrushes. WILL HELP SUPPORT AN INCREASING UNILEVER'S MARKET SHARE OF GLOBAL ORAL CARE MARKET. which uses a blue pigment to make teeth appear whiter. The breadth of products gives Unilever higher presence in stores. INCREASING COMPETITION FROM SUBSTITUTES AND COMPETING BRANDS – Increased competition in emerging markets from competing brands such as Colgate(Colgate-Palmolive). The overall result is rise in demand and larger share for Unilever's oral care brands. globally might limit Unilever's ability to expand its market share in markets where its Signal and Closeup brands have a strong presence. 2. A key characteristic of fast moving consumer goods (which includes soaps. the price at which a manufacturer like Unilever sells to the distributors). TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. TREFIS EXPECTS THE FOLLOWING INITIATIVES TAKEN RECENTLY. INNOVATION SUPPORTS LAUNCH OF NEWER AND ENHANCED PRODUCTS: UNILEVER HAS CONSTANTLY EXPANDED ITS PORTFOLIO BY INTRODUCING NEWER PRODUCTS. helping it develop footprint in multiple segments of global oral care market. Unilever expanded its toothbrush offering by launching branded toothbrush for both value segment (Essential) and premium segment(Air Precision). shampoos etc) is that the presence in stores (which in turn depends on the size and scale of distribution) determines the market share since shoppers make most of their purchasing decisions at the store itself and what sells is predominantly what's available. IMPACT OF THE BREADTH OF UNILEVER'S PRODUCTS RANGE – Unilever has the widest range of products for any FMCG (Fast Moving Consumer Goods) company. communities and collaboration with government and non-government health care agencies. dental floss and others. – Signal White Now. 3. measured at Manufacturers' Selling Price (i. Unilever accomplishes that by administering education campaigns in schools. is the latest innovation from Unilever. HELPING IT ADDRESS CONSUMER PREFERENCES FOR ORAL CARE PRODUCTS ACROSS DIFFERENT MARKET SEGMENTS AND REGIONS. mouthwash. The size and scale of Unilever's products range helps it maintain and grow its market share. Sources for historical data and explanations can be found on the Trefis.promote awareness for oral health and hygiene among consumers across the world. at attractive prices) along with negotiating better terms of trade (higher volumes to the retailer at better prices). Mitigating 4.COM + 1 617 394 8763 •33 .com website (link) — GLOBAL MARKET SIZE OF ORAL CARE — It refers to the dollar value of sales of oral care products such as toothpastes. globally. Crest(P&G) who have a substantial share of the broader oral care market. much scope for cross-promotions (selling different products together to the end consumer.e. detergents.

the end of our forecast period.8% FOR A PERIOD OF FIVE YEARS UNTIL 2013. Forecast Rationale We considered the following factors in our forecast 1. CONSUMER DEMAND FROM EMERGING MARKET ECONOMIES – We expect growing population. such as Stock-Based Compensation Expenses. such as Cost of Goods and Services Sold. Sources for historical data and explanations can be found on the Trefis. These translate into a stable growth rate of close to 2. DATAMONITOR [SOURCE: ORAL HYGIENE:GLOBAL INDUSTRY OUTLOOK] FORECASTS THE GLOBAL MARKET SIZE OF ORAL CARE TO INCREASE BY 15.COM + 1 617 394 8763 •34 . Much of the growth from emerging economies would be on account of rise in average per-unit price as consumers move up to branded oral care products.2% annually reaching $21. WHICH IS IN LINE WITH HISTORICAL AVERAGE GROWTH RATE. We adjust EBITDA figures to exclude non-recurring charges and non-cash charges. The volume consumption grows steadily. and R&D Expenses.8%). 2. TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. in line with rise in the number of users (at the global population growth rate of 1.2% going forward. We expect a year-on-year rise in the average per-unit price of oral care products to be in line with historical average of 0.5 billion by 2017. Taxes.com website (link) — EBITDA MARGIN OF SIGNAL & CLOSEUP ORAL CARE — Earnings Before Interest. to bolster consumer demand for toothpastes and other oral care products. We expect Global Market Size of Oral Care to grow at 2. SG&A Expenses.4%. in developing markets. rapidly growing economies and increasing penetration of branded goods as a result of rising disposable incomes of consumers. amidst rising disposable income levels and improving standards of living. – Oral Care as a product category is highly resilient to economic downturns. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenue.Global Market Size of Oral Care ($ Bil) 20 15 10 5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that the Global Market Size of Oral Care increased from $17 billion in 2005 to $18 billion by the end of 2009.

EBITDA Margin of Signal & Closeup Oral Care (%) 17. due to the negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining of supply chain. we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain. This will help Unilever improve its operating margins in the future 2. the long term impact of which shall be seen in the future in terms of lower operating expenses. and 'One Unilever' program will counter any increase in costs of goods sold to a large extent. 3.5 15. like most consumer TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.5% by 2017. as the global economy recovers from recession.0 12. and Research & Development.We believe the following factors will lead to rising EBITDA Margin of Signal & Closeup Oral Care 1. Forecast Rationale We considered the following key factor for its forecast EBITDA Margin of Signal & Closeup Oral Care is calculated after taking into account four main cost items: Cost of Revenue.7% in 2010. reduction in overhead expenses and integration of multiple business units. EBITDA Margin of Signal & Closeup Oral Care increased to 17. which would help boost efficiency of its business operations. Going forward. A part of Unilever's ongoing restructuring efforts is to close or streamline over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive. COSTS OF GOODS SOLD – Increasing prices of commodity and energy. One Unilever program aims to integrate multiple business units into a single operating structure. However. we expect the Selling and Marketing Costs to decline as a percentage of Revenue in the long run.8% in 2005 to 15. have resulted in substantial reduction in overhead expenses. the end of our forecast period. SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its Selling and Marketing Costs over larger volumes. As a result. General and Administrative. would result in an increase in production costs for Unilever and put a downward pressure on its operating margins. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins despite increasing costs in the long term .5 0. Sales and Marketing.5 10.5 5.8% in 2007.0 7. However. Post these charges.COM + 1 617 394 8763 •35 . we expect EBITDA Margin of Signal & Closeup Oral Care to rise to 18. This too shall enhance EBITDA Margins in the long run.0 2. GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBITDA Margin of Signal & Closeup Oral Care decreased from 18. resulting in a gradual and sustained rise in EBITDA Margins.

0 238 146 2016 1. the price at which a manufacturer like Unilever sells to the distributor) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.1 168 n/a 2009 0.27 1.Dish Care and Air Care • EBITDA Margin of Cif.42 1. Hence.04 0.47 1.08 92.37 1.goods companies. Sources for historical data and explanations can be found on the Trefis. RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous product improvement and introduction of new brands are expected to result in expenses in line with those over the last few years.e.00 86.3 209 127 2013 1.94 0.3 218 132 2014 1.18 0.16 98.com website (link) Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 2008 0.12 0.92 91. Domestos & Sunlight Home Cleaning The most important drivers for the Cif. Air Freshener) globally.1 228 139 2015 1.96 0.0 248 153 2017 1. Research & Development costs are not expected to affect Unilever's EBITDA margins in the future.78 10.97 82.9 166 n/a 2010 1.DISH CARE AND AIR CARE MARKET SHARE — It refers to Unilever's share of the dollar value of household cleaning products(Dish Wash.3 184 n/a 2011 1. Surface Cleaning.Dish Care and Air Care Market Share • Global Market Size of Surface Care.22 1. Domestos & Sunlight Home Cleaning — UNILEVER'S SURFACE CARE.COM + 1 617 394 8763 •36 .86 59. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation. 4.79 64. measured at Manufacturer's Selling Price (i.32 1.1 259 161 2018 1. Domestos & Sunlight Home Cleaning business are: • Unilever's Surface Care. Unilever too is expected to pass on a significant portion of these cost savings to the end consumer in the form of more competitive prices so as to gain the much coveted market share.04 89.12 95.1 197 n/a 2012 1.20 100 270 169 In addition. you can see the detailed P&L for the Signal & Closeup Oral Care business in the Appendix (link) Cif.

Trefis expects consumer demand to recover at a gradual pace thus leading to a slower growth in sales of household brands. 2. DAMPENED CONSUMER DEMAND IN EUROPEAN MARKETS – Unilever is a major player in European markets especially UK.5% by the end of our forecast period Forecast Rationale We considered the following factors in its forecast.DISH CARE AND AIR CARE — It refers to the dollar value of sales of surface cleaning. and increasing competition has lead to a rapid decline in Unilever's household cleaning products. Cif. are present are attracting lower cost players along with several global manufacturers.Dish Care and Air Care Market Share (%) 8 7 6 5 4 3 2 1 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that Unilever's Surface Care.1% in 2009.Unilever's Surface Care. albeit partially.Dish Care and Air Care Market Share to recover. Domestos & Sunlight. globally. Domestos & Sunlight as compared to faster growth in overall global market. 1.Dish Care and Air Care Market Share decreased from 9. rising to 7. the price at which a manufacturer like Unilever sells to the distributors) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.e. measured at Manufacturers' Selling Price (i. Cif. Hence. Trefis expects downward pressures on Unilever's market share leading to only a partial recovery of lost market share from almost 10% in 2005 to 7. where contraction in consumer demand due to global recession had lead to rapid decline in overall sales. Sources for historical data and explanations can be found on the Trefis. Going forward we expect Unilever's Surface Care.5% by 2017. These markets include India and Brazil.COM + 1 617 394 8763 •37 . dish care & air care products.com website (link) — GLOBAL MARKET SIZE OF SURFACE CARE.7% in 2005 to 7. INCREASING COMPETITION IN MARKETS WHERE UNILEVER IS PRESENT – The largest markets where Unilever's household cleaning brands.

consumer demand is set to sustain historical growth rates going forward.com website (link) — EBITDA MARGIN OF CIF. the growth in this niche segment is expected to be robust.Global Market Size of Surface Care. Going forward. such as Cost of Goods and Services Sold. we expect Global Market Size of Surface Care.Dish Care and Air Care ($ Bil) 50 40 30 20 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 We estimate that the Global Market Size of Surface Care.9 billion in 2005 to $34.Dish Care and Air Care increased from $22. As manufacturers continue to enhance their product properties through innovation. Sources for historical data and explanations can be found on the Trefis. TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. EBITDA Margin represents divisional EBITDA as a percentage of divisional revenue. FASTER GROWTH IN EMERGING MARKET – A rapidly recovering economy.COM + 1 617 394 8763 •38 . reaching $47 billion by 2017. PRODUCT INNOVATION TO DRIVE UP DEMAND – Consumers globally have been switching to easy-to-use household cleaning products from traditional cleaning products. We expect this trend to continue and support future growth. Taxes. the end of our forecast period.Dish Care and Air Care to grow at 3.6 billion by the end of 2009. Forecast Rationale We considered the following factors in our forecast 1. We adjust EBITDA figures to exclude non-recurring charges and non-cash charges.9% annually. As surface cleaners meant for a more specific use. Much of the emerging market is yet to be tapped by air freshners and focused surface cleaners. and R&D Expenses. Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses. are made available to the consumers. going forward. SG&A Expenses. 2. such as Stock-Based Compensation Expenses. DOMESTOS & SUNLIGHT HOME CLEANING — Earnings Before Interest. rising disposable income and a consequent increase in purchasing power of low-income groups of consumers in Emerging markets has led to growth in demand for household cleaning products.

Domestos & Sunlight Home Cleaning is calculated after taking into account four main cost items: Cost of Revenue.0 7. Going forward.0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBITDA Margin of Cif. as the global economy recovers from recession. and Research & Development. Domestos & Sunlight Home Cleaning (%) 10.2% in 2005 to 9. 3. Post these charges. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins despite increasing costs in the long term . This will help Unilever improve its operating margins in the future 2.8% in 2007. which would help boost efficiency of its business operations. would result in an increase in production costs for Unilever and put a downward pressure on its operating margins. we expect EBITDA Margin of Cif. GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007. A part of Unilever's ongoing restructuring efforts is to close or streamline over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive.5 0.0 2. General and Administrative. due to the negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining of supply chain. reduction in overhead expenses and integration of multiple business units.5 5.EBITDA Margin of Cif. Domestos & Sunlight Home Cleaning 1.We believe the following factors will lead to rising EBITDA Margin of Cif. Forecast Rationale We considered the following key factor for its forecast EBITDA Margin of Cif. Domestos & Sunlight Home Cleaning to rise to 9. However. EBITDA Margin of Cif. One Unilever program aims to integrate multiple business units into a single operating structure. resulting in a gradual and sustained rise in EBITDA Margins. As a result. we expect the Selling and Marketing Costs to decline as a percentage of Revenue in the long run. the end of our forecast period.75% by 2017. SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its Selling and Marketing Costs over larger volumes. Domestos & Sunlight Home Cleaning increased to 9% by 2010. have resulted in substantial reduction in overhead expenses. and 'One Unilever' program will counter any increase in costs of goods sold to a large extent.COM + 1 617 394 8763 •39 . Domestos & Sunlight Home Cleaning decreased from 11. the long term impact of which shall be seen in the future in terms of TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. COSTS OF GOODS SOLD – Increasing prices of commodity and energy. we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain. Sales and Marketing.

Research & Development costs are not expected to affect Unilever's EBITDA margins in the future.67 3. you can see the detailed P&L for the Cif.25 2.07 236 324 88.59 2.71 2.97 2.2 2014 3.4 269 n/a 2010 2. Domestos & Sunlight Home Cleaning business in the Appendix ( link) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous product improvement and introduction of new brands are expected to result in expenses in line with those over the last few years.COM + 1 617 394 8763 •40 .com website (link) Total Revenue (Bil $) Direct Expense (Bil $) Indirect Expense (Mil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 2008 2.19 28.2 2016 3.4 2015 3. Sources for historical data and explanations can be found on the Trefis.84 2.45 180 240 n/a 2009 2.46 2.53 3. This too shall enhance EBITDA Margins in the long run.9 2018 3.31 251 357 106 In addition.3 2013 2.6 2017 3.82 218 290 72.11 2. 4.36 147 233 n/a 2011 2. Unilever too is expected to pass on a significant portion of these cost savings to the end consumer in the form of more competitive prices so as to gain the much coveted market share. Hence.19 243 340 96. However. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation.70 209 275 65.40 3. like most consumer goods companies.70 2.lower operating expenses.58 198 260 61.47 220 244 n/a 2012 2.94 227 307 80.

GE. Ford and Gap to name a few.com. Coca Cola.COM + 1 617 394 8763 •41 . Google.Learn More — Related Trefis Coverage — If you're interested in Unilever Group. We present you with not only our synthesized view but also every single step within the valuation process used to determine the Trefis price which you can see via our interactive analysis on Trefis. We move beyond the qualitative notion "if you love the coffee at Dunkin’ Donuts." to answer quantitative questions like "If their coffee sales are up 10% next year but doughnut sales are down 5%.com was founded by MIT engineers and former Wall Street analysts who realized that most people do not understand the seemingly familiar companies around them including well known companies like Apple. you may also want to see the Trefis coverage for companies such as: Best Buy Colgate-Palmolive Costco Home Depot Kimberly-Clark Lowe's See the list of all companies covered by Trefis — 2 Week Free Trial of Trefis Pro — Liked this report? Get access to even more comprehensive reports along with interactive analyses with Trefis Pro Try Trefis Pro for 2 weeks — About Trefis — Trefis. Learn more about the Trefis story Read the Trefis FAQ TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS. you should think about buying the stock. The Trefis platform uses extensive data to show in a single snapshot what drives the value of a company's business. what happens to the value of the company?" Trefis analysts spend weeks evaluating each stock that we cover and utilize commonly used valuation methodologies to determine a Trefis price for each company.

46 8.4 5.5 12.7 4.17 27.51 12. Hellmann's 37.7 (% of total) Dove.46 40. BlueBand.9 1.57 5.16 13.80 6.03 11.72 6.83 4.37 6.0 23.49 12.60 2. Lux Skin & Hair Care (% of total) 2008 2009 2010 2011 59.48 12.7 (% of total) Dove.2 4.45 8.7 24.5 24.62 9.14 36.6 38.04 2.48 2018 80.47 5.03 Lipton Beverages & Slim-fast (% of total) Axe & Rexona Deodorants (% of total) TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.5 4. Knorr.04 3.9 1.80 6.91 7.9 12.0 Lipton Beverages & Slim-fast (% of total) Axe & Rexona Deodorants (% of total) Wall's.8 29.8 29.47 56.7 4.9 6.22 4. Hellmann's 35.04 8.1 13.2 72.1 36.3 39.0 37.6 28.COM + 1 617 394 8763 •42 .0 28.31 26.4 12.7 4.0 1.58 9.0 31.8 1.3 58.3 31.99 total) Cif.39 2013 66.5 4.5 31.45 47.59 6.81 11.48 8.85 Cleaning (% of total) Adjusted EBITDA (Bil $) 8.54 65.Appendix Summary P&L for Unilever Group Summary P&L for Unilever Group Total Revenues (Bil $) Becel.9 39.6 37.3 38.5 37.0 4.37 6.2 29.6 12.01 6.52 5.55 6.91 7.93 7.59 5.8 77.1 37.57 2.5 4.4 25.52 2016 2017 74.9 39.83 4.15 2.34 9.2 29.44 31.71 2.6 31.83 12.2 29.57 5.3 28.88 12.16 2. Lux Skin & Hair Care (% of total) 40.44 8.8 6.80 2.50 8.5 24.0 4.17 32.51 6.9 6.7 4.4 4.12 2.1 38. Hellmann's 37.4 6.4 61.5 24.49 12.51 6.9 27.37 5. Domestos & Sunlight Home 2.8 24.07 7.9 6.1 27.0 2012 63.48 12.0 1.6 38.76 2.9 13.76 39.66 6.6 24.77 11.2 4.5 29.76 6.7 5.3 Signal & Closeup Oral Care (% of 1.9 1.0 Becel.9 63.83 4.45 54.9 27.39 6.84 4.46 12.66 9.15 2.2 4.59 6. Domestos & Sunlight Home 4.17 27. BlueBand.5 55.0 1.54 31.66 6.8 12.93 2.1 6.1 (% of total) Dove.74 10.5 4.53 Cleaning (% of total) Direct Expenses (Bil $) 51.39 6.3 28.39 7.55 6.9 1.6 24.2 4.92 7.50 21.7 31.89 2.1 13.43 5.8 4.4 4.83 4.15 2.43 52.68 6.71 4.3 33.76 6.8 1.39 13.1 6.8 4.83 4.98 7.38 5.44 Omo & Surf Fabric Care (% of total) 8.1 27.61 total) Cif.69 2. Algida & Other Icecreams (% of total) 9.15 2.46 Becel.56 5.5 29.49 58. Lux Skin & Hair Care (% of total) 60.34 Signal & Closeup Oral Care (% of 1.49 12.50 12.72 6.3 12.31 26.6 6.6 37.17 10.61 5.83 4.70 10.16 2.86 2. Algida & Other Icecreams (% of total) Omo & Surf Fabric Care (% of total) 13.3 22.44 49.3 12.5 6.14 2.6 28.86 12.31 8.0 28.95 7.7 6. BlueBand.2 6.68 6. Knorr.66 2.9 31.3 9.2 39.2 29.45 37.44 2014 2015 69.4 5.8 1.1 39.84 4.79 4. Knorr.8 Lipton Beverages & Slim-fast (% of total) Axe & Rexona Deodorants (% of total) Wall's.00 9.01 6.05 7.55 68.7 5.

54 3.7 25.04 2.45 9. Lux Skin & Hair Care (% of total) 2012 2013 2014 2015 8.8 1.04 8.21 33.93 5.20 33.81 4.29 1.70 4. Domestos & Sunlight Home 4.91 7.77 6.78 5.1 (% of total) Dove.66 2.60 3.72 5.83 13.97 5.4 30.79 5.58 7.32 39.83 7.6 1.20 5.7 13.15 2.0 10.00 9.5 0.13 9.80 2.9 13.98 40.1 13. Domestos & Sunlight Home 2.30 1.1 31.7 31.94 4. Algida & Other Icecreams (% of total) Omo & Surf Fabric Care (% of total) 14.94 4.85 13.77 4. Lux Skin & Hair Care (% of total) n/a n/a n/a n/a Lipton Beverages & Slim-fast (% of total) Axe & Rexona Deodorants (% of total) 6.81 5.6 7.95 4.4 26.57 2.7 1.10 7.72 n/a n/a n/a n/a n/a n/a n/a n/a n/a 33. Knorr.06 33.74 4.4 0.83 2018 8.77 5.34 Signal & Closeup Oral Care (% of 1.80 6.9 13.6 25.48 3.58 33.93 7.04 3.30 1.91 5.70 n/a n/a n/a n/a n/a n/a n/a n/a n/a 0.42 33.15 2.5 31.15 2.69 2.3 24.4 0. Algida & Other Icecreams (% of total) Omo & Surf Fabric Care (% of total) n/a Signal & Closeup Oral Care (% of n/a total) Cif.65 6. Domestos & Sunlight Home Cleaning (% of total) n/a TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.55 43.31 1.9 7.9 25.87 3.16 2.60 2.8 31.6 1.16 2.69 33.94 4.44 2.0 0.32 1.60 2.71 n/a n/a n/a n/a n/a n/a n/a n/a n/a 4.4 13.77 5.1 7.95 7.12 2.76 43.8 7.77 3.6 0. Hellmann's n/a (% of total) Dove.8 1.31 1.83 6.5 Lipton Beverages & Slim-fast (% of total) Axe & Rexona Deodorants (% of total) Wall's.90 6.27 2.5 26.33 33.83 13.99 total) Cif.60 8.54 6.47 13.2 0.92 7.79 Cleaning (% of total) Free Cash Flow (Bil $) n/a Becel.72 5.7 1.98 7. Hellmann's 37.5 26.67 3.62 4.9 0.31 7.5 7.6 0.16 13.2 0.30 1.7 30.8 25.5 13.93 2.78 5.COM + 1 617 394 8763 •43 .26 Wall's.82 13.4 26.93 2.86 2.72 13.76 2.86 5.85 Cleaning (% of total) Indirect Expenses (Bil $) 3.7 1.82 13.0 Signal & Closeup Oral Care (% of 1.76 5.73 5. BlueBand.89 5.7 13.70 total) Cif.76 Becel.75 5.91 7.81 8.84 13.74 33.89 4.2 13. Algida & Other Icecreams 11.14 2.43 6.15 2.4 26.11 2.3 9.76 2.05 42.0 13.66 4.61 6.79 13.94 4.60 2016 2017 8.4 7.74 5.81 5.1 30.9 0.35 41.89 2.05 2.98 3.83 13.71 2.7 1.64 6.90 5.95 4.58 3.1 7.13 35.95 4.07 (% of total) Omo & Surf Fabric Care (% of total) 8.6 1. BlueBand.82 6.95 5. Knorr.94 4.3 13.39 22.74 5.8 1.7 0.66 41.Summary P&L for Unilever Group continued 2008 2009 2010 2011 Wall's.

25 1.35 -0.3 Total Revenues (Bil $) Expenses Direct Expenses (Bil $) EBITDA Margin of Becel.5 28.2 50.36 -3. BlueBand.4 3.8 22.1 1.4 2018 25.73 n/a 17. Hellmann's business The most important drivers for the Becel.19 n/a -1.6 4.2 15.0 17.7 & Other Foods Revenues (Bil $) Unilever's Market Share of 57.00 2.00 17.9 Bil) 2011 19.9 18.82 22.49 1.8 41.5 2012 20.05 1.7 2.5 1.7 19.5 28.5 25.5 16.70 n/a -0.0 20.7 18.3 4.Knorr.8 18.3 23. BlueBand. Blueband.5 28.4 19.59 1.8 4.06 2.24 2.0 49.00 0.64 1.7 49.0 2014 2015 21.42 1.00 28.84 2.5 48.7 18.34 19. Hellmann's: Detailed P&L 2008 2009 2010 Revenues Becel.00 -0. BlueBand.8 47.7 17.40 1.5 28.7 15.6 45.9 18.7 2016 2017 23.5 28.0 48.00 0.1 3.94 n/a 16.0 19. Becel.1 42.6 24.1 18.56 20.8 22.51 2.4 48.00 0. Knorr.00 0.9 48.00 2.10 1.10 0.6 38.00 2.74 2.5 16.92 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.3 1.4 50.2 19.65 -0.8 19. here is the detailed P&L.3 44.65 4.0 0. Blue Band.8 3.3 48.23 2.97 2.65 2.6 3.70 0.00 0.74 21.00 2.38 2.07 15.5 20.4 37. Hellmann's business are discussed above.0 3.69 1.6 49.15 1. Knorr.8 49.5 28.5 18. Knorr.4 1.5 20.58 2.9 21.54 1.00 2.6 19.2 15.9 17.1 Grocery (%) Global Market Size of Grocery ($ 36.00 2.10 2.94 40.5 15.9 18.4 18.14 30.01 0. Hellmann's (%) Indirect Expenses (Bil $) Capex as % of Revenues (%) Effective Tax Rate (%) Increase in Operating Working Capital as % of Revenues (%) Increase in Net Other LT(Operating) Assets % of Revenues Total Expenses (Bil $) Adjusted EBITDA (Bil $) Free Cash Flow (Bil $) 20.8 1. Hellmann's 20.04 28.21 2.3 50. Knorr.4 18.4 4.3 21.6 40.48 19.42 18.2 18.30 1.07 28.20 1.3 2013 21.COM + 1 617 394 8763 •44 .Detailed P&L for the Becel.9 24.

9 3.8 2.5 28.5 11.22 1.55 2.88 36.36 39.86 1.14 1.65 -0.7 17.6 1.5 19.00 13.5 3.34 1.5 9.COM + 1 617 394 8763 •45 .6 18.1 29.2 3.25 1.5 12.3 17.00 2.23 2.5 28.6 43.8 16. here is the detailed P&L.00 28.00 2.4 1.0 5.1 9.9 11.00 2.9 42.6 40.0 17.00 0.48 n/a -0.Detailed P&L for the Dove.15 1.4 11.5 11.7 4.24 1.15 (Bil $) Global Hair Care Market Size ($ Bil) 2012 11.36 -3.2 17.1 28.0 29.76 15.5 18.9 49.1 15.8 11.70 0.70 12.65 35.00 0.05 1.35 -0.5 29.8 10. Lux Skin & Hair Care (%) Indirect Expenses (Bil $) Capex as % of Revenues (%) Effective Tax Rate (%) Increase in Operating Working Capital as % of Revenues (%) Increase in Net Other LT(Operating) Assets % of Revenues Total Expenses (Bil $) Adjusted EBITDA (Bil $) Free Cash Flow (Bil $) 10.3 9.3 17.07 10.1 39.1 3.30 1.5 17.2 25.5 1.1 10.07 43.04 28.1 Global Skin Care Market Size ($ 35.0 13.7 5.5 2013 12.9 18.06 1.7 28.5 15.29 1.5 28.4 Bil) Unilever's Skin Care Market 27.6 0.8 3.34 11.39 2.00 0.5 28.8 13. Lux Skin & Hair Care: Detailed P&L 2008 2009 2010 2011 Revenues Skin Care Revenues (Bil $) 9.00 2.2 2014 2015 12.2 4.60 n/a 13.20 1.01 0.23 n/a 12.3 2.2 18.15 2.5 Share (%) Shampoos & Conditioner Revenues 3.29 45.5 2.2 36.20 2.5 28.19 1.10 0.62 2016 2017 13.6 17.8 32.6 20.00 0.5 29.2 10.7 0.90 1.42 34.2 15.08 1.4 2018 14.11 38.07 28. Dove.5 28.85 14.0 14.7 46.8 18.2 11.55 10.00 0.00 2.2 45.4 18.21 17.9 3. Lux Skin & Hair Care business are discussed above.72 2.1 42.38 2.67 14.75 1.7 3.5 10.94 40.86 15.3 16.5 4.3 48.6 27.09 17.8 38.0 28.79 2.00 2.6 Unilever's Hair Care Market Share (%) Total Revenues (Bil $) Expenses Direct Expenses (Bil $) EBITDA Margin of Dove.5 11.7 30.33 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.5 12.10 1.4 2.0 4.6 2.99 14.5 2.14 30.97 16.37 12.6 0.2 3.00 -0.9 40.5 3.70 9.9 13.26 n/a -1.10 33. Lux Skin & Hair Care business The most important drivers for the Dove.3 14.4 17.

1 38.72 443 412 3.30 1.92 326 0.9 4.00 -0.00 2.00 0.0 3.50 11.COM + 1 617 394 8763 •46 .62 12.8 36.20 1.5 5.00 0.90 11.07 3.00 0.10 1.0 34.72 221 0.14 157 3.35 397 n/a -0. here is the detailed P&L.79 12.6 41.5 3.7 3.13 2013 253 0.25 12.7 31.8 4.2 4.5 28.28 454 n/a -1.94 2012 237 0.9 3.70 3.5 3.59 572 533 4.12 270 4.01 0.3 37.65 -0.3 32.90 467 434 4.33 10.20 11.34 2014 2015 269 0.0 32.7 22.55 11.9 4.25 1.94 40.3 5.Detailed P&L for the Lipton Beverages & Slim-fast business The most important drivers for the Lipton Beverages & Slim-fast business are discussed above.2 3.7 34.36 -3.12 407 n/a 3.55 279 0.0 37.12 292 4.07 28.5 1.9 4.87 10.5 28.2 39.3 3.17 0.00 2.28 11.7 34.71 2.9 39.5 28.05 1.00 2.00 0.5 28.2 3.13 214 4.00 2.00 2.09 4.69 10.72 2016 2017 301 0.33 Lipton & Other Beverages Revenues (Bil $) Unilever's Market Share of Tea Beverages (%) Global Market Size of Tea Beverages ($ Bil) Total Revenues (Bil $) Expenses Direct Expenses (Bil $) EBITDA Margin of Lipton Beverages & Slim-fast (%) Indirect Expenses (Mil $) Capex as % of Revenues (%) Effective Tax Rate (%) Increase in Operating Working Capital as % of Revenues (%) Increase in Net Other LT(Operating) Assets % of Revenues Total Expenses (Bil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 3.24 495 460 518 482 4. Lipton Beverages & Slim-fast: Detailed P&L 2008 2009 Revenues Slimfast & Other Nutrion Foods 206 196 Revenues (Mil $) Unilever's Market Share of Weight Management Food & 0.14 30.41 545 507 4.5 28.3 31.12 11.1 33.6 4.0 4.00 0.35 -0.53 3.55 420 n/a 3.51 11.1 4.00 3.05 10.3 40.15 142 3.3 30.6 2.72 11.15 Beverages (%) Global Market Size of Weight Management Food and Beverages 120 129 ($ Bil) 2010 2011 207 0.12 2018 352 0.00 28.9 36.23 2.10 0.08 11.12 250 4.4 1.70 0.52 10.5 30.0 4.34 3.04 28.15 1.98 12.32 10.13 193 4.0 3.1 4.2 4.2 2.12 231 4.14 174 3.00 2.5 33.77 601 560 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.37 11.44 12.73 11.5 28.2 2.

5 1.1 4.25 1.48 18.1 3.9 2.6 9.15 3.24 18.8 3.Rexona Deodorants Revenues 2.00 2.00 0.2 9.5 28.00 0.66 2014 2015 3.64 746 461 3.3 9.3 10.36 -3.85 3.03 589 n/a 3.Detailed P&L for the Axe & Rexona Deodorants business The most important drivers for the Axe & Rexona Deodorants business are discussed above.36 18.58 510 n/a -1.00 0.0 3.10 4.39 685 417 3.59 17.81 3.20 1.0 3.3 3.35 Global Market Size of Antiperspirants and Deodorants ($ Bil) Total Revenues (Bil $) Expenses Direct Expenses (Bil $) EBITDA Margin of Axe & Rexona (%) Indirect Expenses (Mil $) Capex as % of Revenues (%) Effective Tax Rate (%) Increase in Operating Working Capital as % of Revenues (%) Increase in Net Other LT(Operating) Assets % of Revenues Total Expenses (Bil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 2.4 245 258 267 276 285 294 303 2.27 655 397 3.00 0.07 28.5 28.2 2. here is the detailed P&L.5 28.7 4.4 3.01 17.35 17.61 18.39 17.95 34.07 2.15 1.5 28.7 179 2.95 2016 2017 4.00 28.12 623 378 3.12 18.00 0.50 33.01 0.3 3.3 12.90 30.3 10.10 0.77 558 n/a -0.70 0.9 3.10 35.76 17.00 2.5 28.14 30.8 10.04 28.74 3.85 32.15 33.5 2.1 11.38 502 n/a 2.2 3.45 2.2 2.91 814 510 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.42 31.10 1.81 34.50 2013 3.4 4.6 12.6 271 2.35 -0.90 2.00 2.34 2.18 2.5 28.66 34.6 11.94 40.65 -0.0 3.30 1. Axe & Rexona Deodorants: Detailed P&L 2008 2009 2010 2011 Revenues Axe.7 3.6 32.00 -0.42 35.05 1.51 715 439 3.00 2.8 11.26 35.78 779 485 3.00 2.23 2.00 2.35 (Bil $) Unilever's Market Share of Antiperspirants and Deodorants (%) 2012 3.5 2.00 3.88 17.6 194 1.26 2018 4.COM + 1 617 394 8763 •47 .

0 56.2 6.3 48. Algida & Other IceCreams (%) Indirect Expenses (Mil $) Capex as % of Revenues (%) Effective Tax Rate (%) Increase in Operating Working Capital as % of Revenues (%) Increase in Net Other LT(Operating) Assets % of Revenues Total Expenses (Bil $) Adjusted EBITDA (Bil $) Free Cash Flow (Mil $) 7.91 9.00 2.07 6.7 52.77 11.17 0.08 10.94 40.88 17.5 49.00 2.1 8.7 643 2.07 28. here is the detailed P&L.23 2.5 2.Detailed P&L for the Wall's.88 Total Revenues (Bil $) Expenses Direct Expenses (Bil $) EBITDA Margin of Wall's.9 8.48 2014 2015 8.84 n/a 7.5 1.8 7.00 2.12 437 0.00 28.65 -0.35 -0.70 0.25 0.10 1.03 360 384 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.9 46.95 337 8.02 16.2 10.10 0.7 9.4 9.59 2018 9.48 0.25 1.8 53.6 51.9 15.00 0.COM + 1 617 394 8763 •48 . Algida & Other Icecreams business The most important drivers for the Wall's. Agida & Other Ice Cream 7. Algida & Other Icecreams: Detailed P&L 2008 2009 Revenues Wall's.6 7.57 10.23 Revenues (Bil $) Unilever's Market Share of Ice 16.88 307 8.15 1.27 11.00 7.00 2.41 0.93 n/a -1.34 10.05 1.5 7.3 507 1.79 10.51 11.34 7.04 28.45 1.02 2016 2017 9.22 16.8 9.1 8.3 575 598 614 630 646 662 677 2.72 0.5 7.00 2.5 28.59 7.22 2013 8. Wall's.93 2012 8.9 8.85 n/a 7.99 1.0 9.66 8.4 8.01 0.3 ($ Bil) 2010 2011 7.4 7.30 9.7 433 2.00 0.00 0.93 16.2 8.0 8.63 16.5 28.23 6.9 55.5 28.00 0.6 83.7 7.1 57.40 6.66 12.20 1.36 -3.18 1.92 0.59 7.6 Creams (%) Global Market Size of Ice Creams 44.5 28.17 0.5 28.03 11.63 7.00 0.1 47. Algida & Other Icecreams business are discussed above.82 n/a -0.48 16.14 30.30 1.91 315 8.00 2.30 16.75 16.81 11.5 28.59 17.07 409 9.75 9.00 -0.

10 0.92 16.37 865 218 908 239 9.00 2.21 7.0 50.9 54.2 7.39 9.95 2018 10.00 2.9 83.91 646 2.23 2.01 0.4 2013 8.27 16.72 824 198 9.07 28.8 10.5 28.96 (Bil $) Unilever's Fabric Care Market Share (%) Global Market Size of Fabric Care ($ Bil) Total Revenues (Bil $) Expenses Direct Expenses (Bil $) EBITDA Margin of Omo & Surf Fabric Care (%) Indirect Expenses (Mil $) Capex as % of Revenues (%) Effective Tax Rate (%) Increase in Operating Working Capital as % of Revenues (%) Increase in Net Other LT(Operating) Assets % of Revenues Total Expenses (Bil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 17.5 7.34 685 n/a -0.5 28.30 1.3 2012 8.07 6.00 28.25 1.00 0.96 8.2 6.65 578 606 626 647 668 687 705 2.70 0.20 1.25 8.26 16.27 7.45 9.14 30.10 748 169 8.5 7.1 9.5 28.00 2.19 8.59 2014 2015 8.52 9.5 28.35 -0.04 9.15 1.0 56.41 785 179 8.3 8.6 51.5 9.4 7.6 46.89 15.00 9.3 17.5 1.60 16.5 28.92 9.COM + 1 617 394 8763 •49 .36 -3.00 2.70 9.00 0.0 47.65 -0. Surf Fabric Care Revenues 7.00 2.00 0.72 705 n/a -1.00 0.6 44.05 1.00 2.8 8.69 949 262 10.21 16. Omo & Surf Fabric Care: Detailed P&L 2008 2009 2010 2011 Revenues Omo.09 9.02 432 2. here is the detailed P&L.0 993 287 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.30 9.25 8.2 2.34 7.61 9.60 7.04 28.00 -0.94 40.42 10.7 53.89 7.1 58.3 49.15 8.5 28.94 528 1.00 0.2 59.26 2016 2017 9.95 17.9 9.6 7.2 6.00 7.80 9.50 789 n/a 7.61 17.9 7.10 1.91 9.05 7.59 16.55 9.Detailed P&L for the Omo & Surf Fabric Care business The most important drivers for the Omo & Surf Fabric Care business are discussed above.90 709 n/a 8.35 8.

5 28.3 2.79 166 n/a 0.47 6.9 2.0 98.09 218 132 1.96 Revenues (Bil $) Unilever's Oral Care Market 5.37 1.5 ($ Bil) 2009 2010 2011 0.5 1.94 1.00 -0.32 6.66 18.02 197 n/a 1.12 2012 1.15 1.2 0.18 2013 1.04 18.41 20.00 0.96 18.32 2016 2017 1.22 2014 2015 1.5 28.0 1.94 1.6 64.00 2.78 17.00 2.08 18.71 21.8 1.92 17.00 17.85 168 n/a -1.4 1.92 184 n/a -0.1 2.22 6.24 18.17 238 146 1.9 1.5 1.48 Share (%) Global Market Size of Oral Care 17.0 1.2 1.01 0.96 0.2 1.00 28.16 18.5 28.4 82.5 28. Signal & Closeup Oral Care: Detailed P&L 2008 Revenues Signal & Closeup Oral Care 0.65 -0.04 0.5 0.1 1.5 28.18 6.1 100 2.2 0.3 1.00 0.70 0.47 Total Revenues (Bil $) Expenses Direct Expenses (Bil $) EBITDA Margin of Signal & Closeup Oral Care (%) Indirect Expenses (Mil $) Capex as % of Revenues (%) Effective Tax Rate (%) Increase in Operating Working Capital as % of Revenues (%) Increase in Net Other LT(Operating) Assets % of Revenues Total Expenses (Bil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 0. here is the detailed P&L.5 0.30 1.12 5.07 28.00 0.00 2.3 89.1 92.00 2.05 209 127 1.86 17.27 1.5 1.31 20.0 95.05 1.3 86.42 6.30 270 169 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.34 0.7 1.13 228 139 1.10 0.25 1.36 -3.COM + 1 617 394 8763 •50 .1 1.04 5.00 1.20 18.94 40.97 17.8 1.35 -0.12 18.26 259 161 1.Detailed P&L for the Signal & Closeup Oral Care business The most important drivers for the Signal & Closeup Oral Care business are discussed above.00 0.79 17.27 6.21 19.42 2018 1.6 10.9 1.00 0.21 248 153 1.23 2.1 1.11 19.00 2.10 1.51 21.61 21.5 28.00 2.14 30.7 59.07 0.04 28.6 91.20 1.0 5.37 6.

31 324 88.00 0.04 28.4 Bil) 2012 2.6 3.07 28.5 28.00 2.9 3.59 2.07 9.2 3.45 8.67 7.Dish Care 8.65 -0.53 7.20 1.8 2.30 1.2 3.37 40.17 307 80.71 2.70 2.35 -0.5 28.11 7.52 47.97 2014 2015 3. here is the detailed P&L.10 1.5 28.31 9.27 and Air Care Market Share (%) Global Market Size of Surface Care.82 9.40 3.00 2.04 290 72. Cif.2 34.00 -0.14 30.00 2.00 28.66 3.46 2.COM + 1 617 394 8763 •51 .47 9.36 -3.4 3.71 Household Care Revenues (Bil $) Unilever's Surface Care.34 2.4 2.3 2. Domestos & Sunlight Home Cleaning (%) Indirect Expenses (Mil $) Capex as % of Revenues (%) Effective Tax Rate (%) Increase in Operating Working Capital as % of Revenues (%) Increase in Net Other LT(Operating) Assets % of Revenues Total Expenses (Bil $) Adjusted EBITDA (Mil $) Free Cash Flow (Mil $) 2.5 28.5 3.5 2.40 7.00 2.9 37.76 198 209 218 227 236 243 251 2.5 2.12 7.07 2.00 0.19 10.00 0.8 3.94 40.84 2013 2.53 2018 3. Domestos & Sunlight 2. Domestos & Sunlight Home Cleaning business are discussed above.36 2.91 275 65.3 2.5 28.00 0.11 3.2 2.0 3.58 9.Dish Care and Air Care ($ 33.00 2. Domestos & Sunlight Home Cleaning business The most important drivers for the Cif.9 3.43 340 96.70 2.32 38.00 2.70 0.56 3.26 2.05 1.97 7.16 2.15 1.23 2.25 7.51 233 n/a -0.47 43.70 9.67 Total Revenues (Bil $) Expenses Direct Expenses (Bil $) EBITDA Margin of Cif.01 0.11 7.63 240 n/a -1.10 0.56 357 106 TREFIS ANALYSIS for UNILEVER GROUP CONTENT@TREFIS.5 1.78 260 61.02 220 2.2 2.19 9.52 48.25 1.69 244 n/a 2.46 3.9 28.94 9.Detailed P&L for the Cif.42 41.5 28.22 7.00 0.22 269 n/a 2.84 7.36 9.6 35. Domestos & Sunlight Home Cleaning: Detailed P&L 2008 2009 2010 2011 Revenues Cif.02 147 2.52 45.46 2.59 2.25 2016 2017 3.00 2.2 3.94 180 1.

Sign up to vote on this title
UsefulNot useful