SUPPLY CHAIN

INTRODUCING THE UNILEVER SUPPLY CHAIN

NOVEMBER 15TH 2013

UNILEVER SUPPLY CHAIN PRESENTATION TO ETSII

EL PODER DE NUESTRAS MARCAS

MISSION

FAST FACTS - 2012

• 97,000 employees covering source, make and deliver

• We spend €33billion with 160,000 suppliers each year

• We have 252 factories and 442 warehouses globally

• We make 4.5 billion cases of product and deliver to 210,000 locations

SUPPLY CHAIN PLAYS A CENTRAL ROLE IN DELIVERING THE UNILEVER AMBITION

€80bn

€46bn

environmental impact

€40bn

€46bn

HOW WE ARE ORGANISED

CSCO + Global SC leadership

Operating Companies

Procurement CapabilitiesBusiness Partners

Nine global

Categories

ITPersonal

CareEurope(USCC)

Americas(UASCC)

AAR(UAPL)

Nine global capability teams create strategy, set standards and support through continuous improvement

IT

R&D

HR

Comms

Care

Homecare

Foods

Refreshments

Global procurement team managing 75% of total Unilever spend

OUR SC CAPABILITIES

Quality ExcellenceDriving best practise across Unilever

Customer Service Excellence (CSE) Safety and security ManEx

SC StrategiesDeveloping new approaches to drive E2E efficiencies

Sustainable ManufacturingCreating solutions to meet our sustainability targets in our factories.

Excellence (CSE)Leveraging repeatable models to improve service globally

Logistics excellenceDeveloping our global logistics capacity and reducing our carbon footprint

Better Faster Innovation (BFI)Improving innovation processes and collaboration

Unilever Engineering Services (UEns)Managing major capital projects

Safety and securitySetting security and safety standards across Unilever

ManExImprove performance in our factories

5 SOURCES OF SC COMPETITIVE ADVANTAGE

Global Scale, Local AgilityGlobal Scale, Local Agility Partner to WinPartner to WinSpeedSpeed

1 2 3

USLPUSLP Talent PowerhouseTalent Powerhouse

4 5

1. GLOBAL SCALE…..

€33bn Procurement

Global Sourcing

24%

Scale in Logistics

**....

................

... .. *

**

76%

24%

D&E >150 of 260 Factories From Europe to Asia and Americas

***

**

***

**

*****

*** **

*****

**

*******

.................

.

..

....

.

.......

.

.

..

*

**.* *

Total Unilever spend

…. COMBINED WITH LOCAL AGILITY:SEGMENTED SUPPLY CHAINS

..

Modern trade General Trade

.

Catering to needs of a diverse portfolio & geography…

2. SPEED

• Partnership with LOTUS F1 giving us new ways of working

• Speed is our currency

• Case study: TRESemme roll • Case study: TRESemme roll out into Brazil in under 6 months.

35 Markets

Global Sourcing 7 Factories

40 Moulds

SPEED:ENABLING GLOBAL LAUNCHES IN RECORD TIME

40 Moulds 9 Sizes

7 Resins

Set-up in <6 Months

3. PARTNERING WITH SUPPLIERS

To meet our compass ambition we need to win in 3 key areas

PARTNER TO WIN PROGRAMME DRAWING ON THE ‘POWER OF 2 ‘

€1,3bn+40+ Factories

72% Innovation Pipeline

4. UNILEVER SUSTAINABLE LIVING PLAN:THREE BIG GOALS BY 2020

CREATING A SUSTAINABLE SUPPLY CHAIN...

26%

3% 2% 68%

1%GHGcontribution

http://www.youtube.com/watch?feature=player_embedded&v=L3Kt8tztlI0

SUSTAINABLE SOURCING ACHIEVEMENTS…

60% paper & board certified or recycled

Over half Lipton teabags contain Rainforest Alliance

Certified™ tea

¼ agricultural raw materials sustainably sourced

OUR ECO-EFFICIENCY ALSO PROGRESSING WELL…

Cut 600,000tonnes CO 2

20% energy from renewables

Zero waste in 50% of sites

… AS IS OUR LOGISTICS PROGRAMME

• 8% efficiencyimprovement in CO2 in the first year of the USLP

• Equal to reduced CO2 by 100,000 tonnes in by 100,000 tonnes in 2011

• By 2020 we will have lower overall emissions from logistics despite much higher volumes

Talent Development

Organization & Ways of Working

AdvancedSkills

4. A TALENT POWERHOUSE

High DiversityHigh Engagement

Globally-led Interdependent

Capabilities for Growth

1 Apple 1 Apple 1 Apple 1 Apple

2 Dell 2 P&G 2 Dell 2 Amazon

3 P&G 3 Cisco Systems 3 P&G 3 McDonald's

4 IBM 4 Wal-Mart Stores 4 Research In 4 Dell

5 Cisco 5 Dell 5 Amazon 5 P&G

6 Nokia 6 PepsiCo 6 Cisco Systems 6 Coca-Cola

7 Walmart 7 Samsung 7 Wal-Mart Stores 7 Intel

8 Samsung 8 IBM 8 McDonald's 8 Cisco Systems

9 Pepsico 9 Research In Motion 9 PepsiCo 9 Wal-Mart Stores

10 Toyota 10 Amazon 10 Samsung 10 Unilever

11 Schlumberger 11 McDonald's 11 Coca-Cola 11 Colgate-Palmolive

12 Johnson & Johnson 12 Microsoft 12 Microsoft 12 PepsiCo

13 Coca-Cola 13 Coca-Cola 13 Colgate-Palmolive 13 Samsung

2010 2011 20122009

THE RESULTS ARE ALREADY SHOWING

SC Top 25 Rankings 2012

Unilever No.10 in the World

13 Coca-Cola 13 Coca-Cola 13 Colgate-Palmolive 13 Samsung

14 Nike 14 Johnson & Johnson 14 IBM 14 Nike

15 Tesco 15 HP 15 Unilever 15 Inditex

16 Walt Disney 16 Nike 16 Intel 16 Starbucks

17 HP 17 Colgate-Palmolive 17 HP 17 H&M

18 Texas Instruments 18 Intel 18 Nestle 18 Nestle

19 Lockheed Martin 19 Nokia 19 Inditex 19

Research In Motion

(RIM)

20 Colgate Palmolive 20 Tesco 20 Nike 20 Caterpi llar

21 Best Buy 21 Unilever 21 Johnson & Johnson 21 3M

22 Unilever 22 Lockheed Martin 22 Starbucks 22 Johnson & Johnson

23 Publix 23 Inditex 23 Tesco 23 Cummins

24 Sony Ericsson 24 Best Buy 24 3M 24 HP

25 Intel 25 Schlumberger 25 Kraft Foods 25 Kimberly-Clark

21 15 10WORLD RANKING

FMCG RANKING

22

6 5 36

2008 NOT ON THE

MAP

CADENA DE SUMINISTRO EXTENDIDA

• Orientación Externa

• Cadena de suministro orientada al consumidor

� 400m sprint world record for men = 43.18 secs.

� 4x100m relay for men = 37.40 secs.