unilever south africa - amazon web...
TRANSCRIPT
UNILEVER SOUTH AFRICAPRESENTATION TO DTI PARLIAMENTARY PORTFOLIO COMMITTEE
23 FEBRUARY 2016
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.