Cb predictions seminar 2013 unilever keynote presentation

TOWARDS SUSTAINABLE GROWTH Perspectives on Dutch FMCG industry Thomas Grunzke, VP Finance, Unilever Benelux Rotterdam, 28th May 2013

AGENDA 1. UNILEVER BENELUX INTRO 2. THE CONTEXT FOR GROWTH

3. STRATEGIES FOR GROWTH 4. GROWTH THROUGH EXECUTION 5. A GROWTH MINDSET 6. SUMMARY

UNILEVER INTRO

UNILEVER GLOBALLY

Turnover: FMCG ranking: Geography:

51bn #3 190 countries

Employees: Consumer/day:

172,000 2bn

Brands > 1bn â‚Ź

Benelux Intro video

Benelux Intro video

UNILEVER IN THE BENELUX Personal Care picture

Foods

Home Care

Refreshment Key facts Turnover: Market share: Factories: R&D: People:

â‚Ź 1.6+bn 24% / 80% leading 4 Vlaardingen ~3,800

Personal Care

OUR BRANDS

THE CONTEXT FOR GROWTH

THE EXTERNAL PERSPECTIVE (1):

OUR MARKETS HAVE SLOWED DOWN consumenten vertrouwen

30

Value growth minus inflation

6 5

20

4

10

3

0

2

-10

1 0

-20

-1

-30

-2

-40

-3

-50

-4

14 12 10 8 6 4 2 0 -2 -4 -6

% Unemployment 8 33

1

9

9

8

8

6

4

3

10 10

3

0 -1 -4

-2

2

-3 -2

Purchase power

1

8 1

7 3

8

8

7

6

1

1

0 0

8

7 1

7 0

5

2

0

% Unemployment

4 0

1

7

5

4

4 34 1

7 3

0 -1

6

-2

2

5

4

0

5

5

5

6

2 0

-1

-2

THE EXTERNAL PERSPECTIVE (2):

PRIVATE LABEL / HARD DISCOUNT TO GROW FASTER 40% by 2016

THE INTERNAL PERSPECTIVE:

OUR VIRTUOUS CIRCLE OF GROWTH MODEL

GROWTH STRATEGIES

5 LEVERS FOR GROWTH

Innovation Market Development Pricing Pyramid Channel expansion

Sustainability

1

INNOVATION LED GROWTH

Product formulation

Packaging

Marketing

Generic bottle unbranded

e.g.

- tastier / healthier - stronger performance - combined benefits

e.g.

- more convenient - lighter - premiumization

e.g.

- activation concept - integrated approach - purpose driven

EXAMPLES IN THE LOCAL MARKET Unox Soup in Pak

Calve Dressings

Axe Apollo

2

MARKET DEVELOPMENT LED GROWTH More users

More usage

More benefits

EXAMPLES IN THE LOCAL MARKET More users

More usage

Croma Liquid margarine

Ice Cream tubs

More benefits

Rexona MaxPro deo

3

PRICING PYRAMID LED GROWTH Super Premium Premium

Trend:

Mid Economy Super Economy

EXAMPLES IN THE LOCAL MARKET Ice Cream deserts pyramid premium

upper mass mass lower mass economy

Note: all consumer prices at sole discretion of the retailer

4

CHANNEL EXPANSION LED GROWTH E-commerce

HD / Budget chains

Out of Home

EXAMPLES IN THE LOCAL MARKET Sales@appie.nl

1 EURO offers

Magnum flagship store

5

SUSTAINABILITY LED GROWTH

EXAMPLES IN THE LOCAL MARKET Robijn K&K

Unox Beter Leven

Ben & Jerry’s Freezer

SOME GROWTH CHALLENGES: 1

PL/HD GROWTH

EXAMPLE: ICE CREAM COPYCATS Unilever

Lidl

SOME GROWTH CHALLENGES: 1

PL/HD GROWTH

2

PROMOTIONAL INTENSITY

3

SUSTAINABLE LIVING BEHAVIOUR

4

STRUCTURAL FACTORS

GROWTH THROUGH EXECUTION

“In FMCG, Execution is Strategy.”

Perfect Factory

Perfect Supply Chain

Perfect Shop

THE LAST METER MATTERS

OSA

Promotion Compliance

Shelf standard

WHAT GETS MEASURED GETS DONE

A GROWTH MINDSET

THE GLASS HALF FULL

STANDARDS OF LEADERSHIP

SUMMARY

SUMMARY OF THE SUMMARY:

FMCG economic context remains challenging

No single silver bullet for growth

Execution and mindset as important as winning strategies

THANK YOU