Unilever PLC

Investor Presentation • Feb 8, 2024

Unilever

FY 2023 Results

Hein Schumacher & Fernando Fernandez 8 February 2024

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2023 highlights

2023 results & outlook

Growth Action Plan update

Q&A

Making progress, but more to do…

Returned to positive volumes with improved margin, driven by 30 Power Brands

Tightened grip on working capital leading to strong free cash flow

Increased brand and marketing investment, focused on 30 Power Brands

Made significant changes in Ice Cream to address underperformance

Accelerated portfolio transformation

Competitiveness remains disappointing, moving quickly to address it

Growth Action Plan being implemented at pace

Faster growth

• 1. Focus 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 category-focused structure

Performance culture

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

2023 results & outlook

Fernando Fernandez

Volumes improving as price growth slows

Beauty & Wellbeing €12.5bn turnover | 18.7% UOM

Strong full year performance with volume-led growth

Personal Care €13.8bn turnover | 20.2% UOM

Strong performance, fuelled by mid-teens growth in Deodorants

Home Care €12.2bn turnover | 12.3% UOM

Positive second half volumes, with sharp price growth deceleration

10

Nutrition €13.2bn turnover | 18.6% UOM

Price-led growth as we responded to higher input costs

Ice Cream €7.9bn turnover | 10.8% UOM

Disappointing performance reflecting poor execution and consumer downtrading

Regional performance

Asia Pacific Africa - €26bn turnover					Europe - €12bn turnover
Q4		Full year		Q4		Full year
1.9 % Underlying sales growth		6.5 % Underlying sales growth		2.5 % Underlying sales growth		4.1 % Underlying sales growth
0.7 %	1.1 %	1.1 %	5.3 %	(6.3) %	9.4 %	(7.7) %	12.8 %
UVG	UPG	UVG	UPG	UVG	UPG	UVG	UPG
North America - €13bn turnover					Latin America - €8bn turnover
Q4		Full year		Q4		Full year
7.0 % Underlying sales growth		5.8 % Underlying sales growth		13.4 % Underlying sales growth		14.9 % Underlying sales growth
6.3 % UVG	0.7 % UPG	2.5 % UVG	3.3 % UPG	9.1 % UVG	4.0 % UPG	4.8 % UVG	9.6 % UPG

7% underlying sales growth, with adverse currency and net disposals

Turnover

Improved margin with a significant step-up in brand investment in H2

Underlying operating margin

Strong progress on gross margin recovery

Operational performance offset by currency headwinds

Underlying earnings per share

Strong cash, improving ROIC

Strong cash generation

€7.1bn

Free cash flow*

+€1.9bn

vs FY 2022 free cash flow

111%

Cash conversion

Improving ROIC

16.2%

ROIC

+20bps

vs FY 2022 ROIC

Robust balance sheet

2.1x

Closing net debt / underlying EBITDA

€23.7bn

Closing net debt

Investment priorities and capital allocation

Organic growth

Increased BMI vs PY as % of turnover

Capex as % of turnover

Net productivity Shareholder returns

Capital returned to shareholders in 2023

+10bps Increased R&D spend vs PY as % of turnover 0.8%

Restructuring cost as % of turnover

€4.4bn

Dividends paid

€1.5bn

Share buybacks completed

Reallocating capital into premium segments

Disposals Acquisitions

Measuring competitiveness through turnover-weighted market share

2024 outlook

Growth Action Plan update

Hein Schumacher

Implementing Growth Action Plan at pace

Focus first on 30 Power Brands

Drive unmissable brand superiority

Scale multi-year innovation

2023 innovation driving incremental turnover 2024 priorities

• Prioritising multi-year scalable programmes
• Growing R&D investment
• Driving market-making and premiumisation
• Brilliant execution fully resourced
• Continued increases in incremental turnover

Leveraging winning technologies across brands, formats and markets

• Example: Vaseline Gluta Hya Multi-year, scalable platforms
• Patented GAP technology boosting skin's antioxidant defence against damage
• Multi-format and benefit technology extended to new product ranges
• Geographical expansion:
  • Launched in Southeast Asia and Indonesia in 2021
  • Rolled-out to India and Arabia in 2023
  • Further expansion in 2024

Leveraging winning technologies across brands, formats and markets

Example: multi-brand 72h Deodorant Multi-year, scalable platforms

• Patented, next-generation anti-perspirant technology
• 72h technology scaled across our 3 largest Deodorant brands
• Geographical/brand expansion:
• Rexona 72h launched in 2022
• Rolled out to markets across Europe and the Americas
• Dove and Axe 72h launched in 2023
• 72h protection now available in over 40 markets

Leveraging winning technologies across brands, formats and markets

Example: Hellmann's Plant Based & Flavoured Mayo Multi-year, scalable platforms

• Differentiated superior technology using plant-based emulsions and flavour solutions
• Bigger activations in key markets:
• Super Bowl campaign in the US
• NBA campaign in Brazil
• Geographical expansion:
• Plant-based mayo now in 34 markets
• Flavoured mayo now in 24 markets
• Hellmann's launched as a premium brand in 18 new markets in past 5 years

Focus on net productivity

• Organisation geared to focus on net productivity
• Business Group specific implementation plans
• Complexity reduction reduced SKUs, materials and suppliers
• Cost per tonne plateauing in H2
• Integrated operations delivered working capital improvements in 2023

Progress 2024 priorities

• Network optimization
• Vertical integration in key materials
• Further complexity reduction
• Cost per tonne improvements
• 50% of capex to be allocated to productivity initiatives
• Continued improvement in working capital

FY 2023 RESULTS Productivity & simplicity

Focus sustainability commitments

A renewed team leading the change

Hein Schumacher Chief Executive Officer

Eduardo Campanella Business Group President Home Care

Esi Eggleston Bracey

Chief Growth and Marketing Officer

Reginaldo Ecclissato Chief Business Operations and Supply Chain Officer

Fabian Garcia Business Group President Personal Care

President Unilever South Asia and

Priya Nair Business Group President Beauty & Wellbeing

Mairéad Nayager Chief Human Resources 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

Fernando Fernandez Chief Financial Officer

Drive and reward outperformance

Our incentive framework 2024 priorities

1 Proposed Directors' Remuneration Policy

2 Business Group drives bonus

• More closely aligned with shareholder interests
• Proposal published, for vote at 2024 AGM
• Senior leadership incentives: 75% Business Group 25% Unilever
• All other employees' incentives: 100% Business Group aligned

3 In-year performance drives reward

• New, more stringent goal setting process
• Replaced long-term share plan with restricted stock awards for 15,000 lower and middle managers
• Based on individual's in-year delivery against stretching targets

Greater line of sight and more differentiation in reward

Moving with speed and urgency to transform Unilever

Focusing on fewer things, done better, with greater impact

Benefits of the Growth Action Plan will build throughout the year

To realise a consistent step up in performance, starting in 2024

Q&A

Appendix

Other financial guidance for 2024

• Increased absolute Brand & Marketing Investment and R&D spend
• Capex around 3% of turnover
• Restructuring around 1% of turnover
• At current rates, expected currency impact* of around (2)% on turnover and around (5)% on underlying EPS for FY
• Net finance costs 2.5% to 3% on average net debt
• Underlying effective tax rate around 25%
• Net debt around 2x net debt / underlying EBITDA