Unilever PLC

Investor Presentation • Oct 26, 2023

Q3 2023 Trading Statement & CEO Update Unilever

Hein Schumacher & Graeme Pitkethly 26 Oct 2023

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1. Q3 Trading Statement

2. Action Plan

1. Q&A

Solid third quarter

Price growth moderated as expected, now with positive volume growth in three Business Groups

Growth driven by biggest brands and strong innovations

Competitiveness remained challenging – major focus area for Action Plan

Full year outlook remains unchanged

Targeted Action Plan for faster growth and simplicity

Unilever Q3 2023 Trading Statement

Graeme Pitkethly

Solid Q3 performance

Underlying sales growth

• Volume positive in Beauty & Wellbeing, Personal Care and Home Care
• Nutrition and Ice Cream not yet back to positive volume growth
• Billion Euro brands accounted for 56% of Group turnover and delivered 7.2% growth
• D-commerce grew 17% and represented 16% turnover year to date

Beauty & Wellbeing

Personal Care

Home Care

10

Nutrition

Ice Cream

Regional growth by quarter

Q3 2023: Turnover growth

CEO update

Hein Schumacher

Strength & opportunities

Action plan

Value creation

Strength & opportunities

Action plan

Value creation

Unilever's strong fundamentals

Categories

1 or #2 positions for 80% of our turnover1 Well-positioned to drive category growth

Brands & footprint

30 power brands driving 70%+ of our business 3.4bn daily users of our products

Channels

Strong distributive trade model Accelerating eCommerce and specialty channels

People & organisation

Experienced, engaged, expert people New organisation unlocking speed and value

Geographies

Most global FMCG company 60% turnover in emerging markets

R&D

Competitive science and technologies 20,000 patents

Sustainability

At the heart of our business model

No. 1 corporate sustainability leader for 12 consecutive years2

Past performance has not been good enough

Total Shareholder Return below our top third ambition

The Unilever opportunity

	What's working		What needs resolving
•	Strong science and technology capabilities	•	Innovations lack scale Science and technology not leveraged across categories
•	Product superiority	•	Not focused on all consumer benefits
•	Deep sustainability belief and know-how	•	Sustainability strength not maximised for commercial benefit Too many long-term commitments versus short-term targets
•	Modern and connected global supply chain	•	Disciplined focus on net productivity
•	Outstanding talent base	•	Dial up performance edge in leadership and expectations
•	Global reach and brand portfolio	•	Too many small priorities Equal treatment of small and big brands
•	Inspiring purpose for many	•	Force-fitting purpose in every brand

Strength & opportunities

Action plan

Value creation

Action plan

Faster growth

• 1. Focus first on 30 Power Brands
• 1. Drive unmissable brand superiority
• 1. Scale multi-year innovation
• 1. Increase brand investment and returns
• 1. Selectively optimise portfolio

Productivity & simplicity

• 1. Build back Gross Margin
• 1. Focus sustainability commitments
• 1. Drive benefits of new organisation

Performance culture

• 1. Renewed team
• 1. Drive and reward outperformance

Faster growth

• 1. Focus first on 30 Power Brands
• 1. Drive unmissable brand superiority
• 1. Scale multi-year innovation
• 1. Increase brand investment and returns
• 1. Selectively optimise portfolio

Focus first on 30 Power Brands

Driving 70%+ of our business

Ensuring consistent investment and brilliant execution

Drive unmissable brand superiority across 30 Power Brands …

… as we did with DomestosPower Foam

… as we did with Dove Body Wash

Scale multi-year innovation to be market makers

• Strong R&D and science capabilities
• 2-3x average project size vs 2020

• Too many projects for consistent in-market execution

• Prioritise our differentiated technologies and most promising platforms with fewer, bigger projects

• Deliver new consumer benefits and formats, rolled out at scale
• Backed by consistently growing R&D investment
• Drive market development and premiumisation
• Shift innovation horizon to more multi-year projects, at least doubling average project size vs 2022
• Commit to brilliant launch execution, fully resourced and supported in market

…by leveraging winning technology harder across brands

Faster growth

…by investing in cross-category science & technology platforms

Beauty & Wellbeing	Personal Care	Home Care	Nutrition	Ice Cream
		e.g. Biotechnology
Biotech-derived surfactants for ultimate dishwashing experience Sunlight		Bioactives for moisturisation & antioxidant benefits Tatcha	New	plant based biotechnology alternatives to palm oil Multiple brands

Faster growth

…by investing in cross-category science & technology platforms

Beauty & Wellbeing	Personal Care	Home Care	Nutrition	Ice Cream
		e.g. Microbiome
24 hours of silky soft skin from your shower –	gentle cleansing	Boosting skin's defences for 10-hr germ protection		Skincare-boosted anti-dandruff formula repairs & strengthens scalp
Dove		Lifebuoy		Clear

Increase brand investment and returns

Reshaped portfolio since 2015

• Rotated 20% of portfolio and improved growth profile
• Divested sizeable lower-growth businesses
• Acquired 22 businesses but not all acquisitions met expectations
• Better M&A since 2019 with fewer, more focused acquisitions
• 5 acquired brands amongst 30 Power Brands

Selectively optimise portfolio via sharpened M&A approach

M&A criteria	M&A approach
Distinctive brands, growing segments: Strong brand equity • Premium positioning •	Further pruning
Clear Unilever value-add: Science • Innovation •	Focus on value-accretive bolt-on acquisitions
Scalable in key markets: Home country scale • Potential in key markets •	Higher bar for acquiring: Right to win, premium, growing
Future-fit business model: Omni-channel potential • Digital footprint •	No major or transformational acquisitions

Productivity & simplicity

• 1. Build back Gross Margin
• 1. Focus sustainability commitments
• 1. Drive benefits of new organisation

Build back Gross Margin

Focus sustainability commitments

Today 34 ESG commitments								Acceleration plan
								Driving impact in 4 priority areas
								Climate
													Plastic
												Nature
								Livelihoods

Aspirational end goals

Shorter-term targets starting in 2024

Our commitment to sustainability leadership remains unchanged

Not all brands need a social or environmental Purpose

Drive benefits of new organisation

By end of 2023, we will:

• Eliminate any outstanding ambiguity
• Ensure single point accountability
• Enable Business Groups to control 90% of costs
• Strengthen frontline roles

Performance culture

• 1. Renewed team
• 1. Drive and reward outperformance

A renewed team to lead the change

Hein Schumacher Chief Executive Officer

Fernando Fernandez Chief Financial

Officer

Eduardo Campanella Business Group President Home Care

Fabian Garcia Business Group President Personal Care

Supply Chain Officer

Reginaldo Ecclissato Chief Business Operations and

Esi Eggleston Bracey

Chief Growth and Marketing Officer

President Unilever South Asia and

Priya Nair Business Group President Beauty & Wellbeing

Nitin Paranjpe Chief People and Transformation Officer

Richard Slater Chief Research & Development Officer

Peter ter Kulve Business Group President Ice Cream

Maria Varsellona Chief Legal Officer and Group Secretary

To be appointed Business Group President Nutrition

= new appointments

Performance culture

44 Drive and reward outperformance ¹ Set stretching goals • Fewer, clearer priorities • Single point accountability 6 elements of performance culture Examples 6 Simplify standards of leadership 5 Reward appropriately 4 Aim for the best talent always 3 Embrace agile mindset ² Ultra transparency on performance • Targets of Top 400 managers visible • Basis for more differentiated reward • New reward framework • Metrics linked to value creation (USG, ROIC, TSR) • Business Group focused • Move from 21 behaviours to 6 standards

Strength & opportunities

Action plan

Value creation

Capital allocation: Prioritising organic growth

• Increased investment, focused on Power Brands
• Higher R&D to support large scale, multi-year innovations
• Capex > 3% of turnover

• Funded by Gross Margin improvement

• Portfolio pruning

• Selective bolt-on acquisitions
• Strict criteria and value creation parameters

1 2 3

• Attractive, sustainable dividend
• Surplus capital returned via share buybacks

Maintaining a solid balance sheet: c.2x net debt / EBITDA*

Action plan for value creation

+

Strong fundamentals

Focused action plan Consistent delivery of financial ambition

Faster growth

• 1. Focus first on 30 Power Brands
• 1. Drive unmissable brand superiority
• 1. Scale multi-year innovation
• 1. Step up brand investment
• 1. Selectively optimise portfolio

Productivity & simplicity

• 1. Build back Gross Margin
• 1. Focus sustainability commitments
• 1. Drive benefits of new organisation

Performance culture

• 1. Renewed team
• 1. Drive and reward outperformance

Mid-teens ROIC

EPS growth and attractive dividend

Top third TSR