UNILEVER SOUTH AFRICAPRESENTATION TO DTI PARLIAMENTARY PORTFOLIO COMMITTEE

23 FEBRUARY 2016

UNILEVER IN SOUTH AFRICA

OUR HERITAGEmake cleanliness commonplace

OUR PURPOSEmake sustainableliving commonplacewe work to create a better future every day, with brands and services that help people feel good, look good and get more out of life

1890

NOW

OUR VISION

MANUFACTURING TRANSFORMATION

R 4BnSouthern

Africa

+ 180k Tons

World Class Manufacturing

MANUFACTURING TRANSFORMATION

Green Footprint

World-class suppliers

Competitive CostingJob Creation

S12I TAX INCENTIVES

INDONSA

KHANYISA

SOUTHPOLE

Brands with Purpose

UNILEVER & DTI PATNERSHIP IN S12I

• Job Creation

• Health, Hygiene & Nutrition

• Sustainable Farming

• Very professionally managed incentive scheme

• Key incentive scheme that has supported significant investment in fixed assets in South Africa & job creation

• Three major new factories build over the last 3 years with expenditure of about R4bn

• Opportunities to improve and simplify the administrative requirements behind the schemes

Factory Investment in ZAR

Khanyisa (Waterfall)

R1.4 Billion

Southpole R600 Million

Indonsa (Ingede) R1.1 Billion

Maydon Wharf R390 Million

UNILEVER DTI INCENTIVE SCHEMES EXPERIENCE

SOUTH AFRICA MANUFACTURING EMPLOYEE DEMOGRAPHICS

• Total : 1870• Male : 1167• Female: 338 20 % of Workforce• Black: 95%

Significant increase and focus on acceleratingRecruitment Female and Black Graduates

Unilever Future Leaders (Graduate Intake)

2013 67% Female

2014 60% Female; 100% Black

2015 44% Female; 89% Black

2016 70% Female; 70% Black

WORKFORCE DEMOGRAPHIC

Total Manufacturing Workforce Demographic

African 80.5%

Coloured 2.0%

Indian 12.5%

White 5.0%

Work Level Breakdown

Board 44% Female; 11% Black

Management 37% Female; 61% Black

Staff/Supervisory 36% Female; 86% Black

Shop floor 19% Female; 98% Black

DEMOGRAPHICS AT FACTORIES

Future targeted approachTo increase gender representationAt Factories through recruitment ofOf more women

Gender and Racial Balance

Khanyisa 28% Female; 78% Black

Boksburg 15% Female; 95% Black

Maydon Wharf 14% Female; 96% Black

Indonsa 21% Female; 95% Black

Southpole 36% Female; 99% Black

CURRENT LOCAL MATERIAL SOURCING: 45% (UP FROM 40% IN 2010)

Actions Taken in the last 4 years• 100% local sourcing of sunflower oil and canola oil• Sourcing of tea to the extent of good quality available.• Development of dehydrated vegetables with Level 1 BEE

suppliers underway

Challenges:• Non-availability – just Palm oils & LAB constitute 25%

of spend• Quality & Capability – tea, spices• Intellectual property – Fragrances

13

61

639

Export

volume

Local

volume

UNILEVER SOUTH AFRICA EXPORT POSITION

• 700k tons of goods are produced in Unilever South Africa annually of which 61k (9%) is exported,

• Opportunities to grow SA competitiveness are:

Simplified customs process and quicker boarder processing

Tax incentives on manufacturing and operational cost of running export business.

Rebates on imported raw and packing material Introduction of preferential exporter status for

Unilever which ensure fast tracking of processes.

CHALLENGES OF AMENDED BBBEE CODES

• Increased Targets

• Demographic split

• Priority Elements

• Change in the points to level table

• Empowering supplier status

• In 2015, Unilever was awarded a Level 6 with 60% procurement recognition level.

• Unilever will implement activities to achieve points which will result in a level 7 discounted to level 8 in first amended codes verification

CREATE A BRIGHTER FUTURE FOR SOUTH AFRICA’S

CHILDREN COMMUNITIES FARMERS

Hygiene

Nutrition

Clean Water & Sanitation

Adult Health & Nutrition

Micro-Entrepreneurship

Perfect Communities

Sustainable Sourcing

Helping Smallholder farmers

MAKING IT MEANINGFUL & COMPELLING

USLP & BRIGHTFUTURE PROGRAMME

WASH

• Lifebuoy So5: Reach additional 2 million people• Domestos: 2 more school toilets (2,000 additional users); Germ Busters

Club to reach additional 330,000• Dove Self Esteem: Reach additional 200,000 girls• Oral – Brush Day & Night: Launch programme to reach 100,000 children

Nutrition • Salt, Fats, Calories and Sugar

Jobs

• Ola Vendors: Increase total vendors enrolled to 3,500• Knorrox Kitchen Queens: New model TBC• Wildlands Green-preneurs: Support 40 micro-

entrepreneurs• Sustainable Sourcing: Traceability, Activate Just Veggies

Environment• Washing Powders: Brand consumer launch• Waste to Landfill: Post consumer use waste strategy• Renewable Energy: Manufacturing and warehouses

STRATEGIC PARTNERSHIPS

WASH

• Partnerships to seamlessly engage schools

• Partnerships to scale up hygiene behavior change programmes

• Partnerships to drive product volumes

Nutrition• Partnerships to build credibility and

protect corporate reputation

Jobs• Partnerships for programme

implementation

Environment

• Partnerships for programme implementation

• Partnerships to build credibility and protect corporate reputation

• Partnerships to drive product volumes

UNILEVER IN THE COMMUNITY: OLA VENDORS VIDEO

WINNING TOGETHERFOR A

BRIGHTER FUTURE

Thank You.