Unilever Group 2012-05-21

Unilever Group

ANALYSIS for NYSE : UL MAY 21, 2012

$33.24$93.4 B MKT CAP

Trefis Estimate

$32.25$91 B MKT CAP

Market Price

See the Full Analysis for Unilever Group on Trefis

— CORPORATE SNAPSHOT —

Unilever N.V. (NYSE: UN) is a public limited company registered in

the Netherlands, which has listings of shares and depositary receipts for

shares on Euronext Amsterdam and of New York Registry Shares on the

New York Stock Exchange.

Unilever PLC (NYSE: UL) is a public limited company registered in the

UK and Wales which has shares listed on the London Stock Exchange and,

as American Depositary Receipts, on the New York Stock Exchange.

The two parent companies, NV and PLC, together with their group

companies, operate as a single economic entity, the Unilever Group.

Business Information

According to the latest 20-F, 6-K filings and Unilever's annual reports.

Unilever is a global market leader in Savoury, dressings and spreads.

Unilever manufactures soups, bouillons, sauces, snacks, mayonnaise,

salad dressings, olive oil, margarine, spreads and cooking products such

as liquid margarines, and some frozen foods and markets them under key

brands such as Knorr, Hellmann’s, Becel/Flora (Healthy Heart),

Rama/Blue Band (Family Goodness), Calvé, WishBone, Amora, Ragú

and Bertolli. Savoury, dressings and spreads account for 33% of

Unilever's revenues and 37% of its operating profit.

1.

Unilever is a leading manufacturer of Ice cream sold under the

international Heart brand, including Cornetto, Magnum, Carte d’Or

and Solero, Wall’s, Kibon, Algida and Ola. Other popular brands are

Ben & Jerry’s, Breyers, Klondike and Popsicle. Unilever is a leading

manufacturer of tea beverages. Principal tea brands are Lipton, Brooke

Bond and PG Tips. Ice cream and beverages business segment, as

reported by the company, also includes weight management products,

principally Slim-Fast, and nutritionally enhanced products sold in

developing markets, including Annapurna and AdeS/Adez. Ice cream &

beverages account for 20% of Unilever's revenues and 15% of its operating

profit.

2.

Unilever is a market leader in mass skin care products and deodorants,

and comes at a second position in daily hair care. Principal brands in

personal care include Dove, Lux, and Rexona (including Sure and

Degree), Sunsilk (including Seda / Sedal), Axe and Pond’s. Other

important brands include Suave, Clear, Lifebuoy and Vaseline, together

with Signal and Close Up in oral care. Personal care accounts for 30% of

3.

BECEL, BLUEBAND, KNORR,HELLMANN'S

6Unilever's Market Share of Grocery

7Global Market Size of Grocery

8

EBITDA Margin of Becel, Blueband,

Knorr, Hellmann's

DOVE, LUX SKIN & HAIRCARE

11Unilever's Skin Care Market Share

12Global Skin Care Market Size

13

EBITDA Margin of Dove, Lux Skin &

Hair Care

LIPTON BEVERAGES & SLIM-FAST

15

Unilever's Market Share of Tea

Beverages

17

Global Market Size of Tea

Beverages

18

EBITDA Margin of Lipton Beverages

& Slim-fast

AXE & REXONA DEODORANTS

20

Unilever's Market Share of

Antiperspirants and Deodorants

21

Global Market Size of Antiperspirants

and Deodorants

22EBITDA Margin of Axe & Rexona

WALL'S, ALGIDA & OTHERICECREAMS

24

Unilever's Market Share of Ice

Creams

25Global Market Size of Ice Creams

26

EBITDA Margin of Wall's, Algida &

Other IceCreams

OMO & SURF FABRIC CARE

28

Unilever's Fabric Care Market

Share

29Global Market Size of Fabric Care

30

EBITDA Margin of Omo & Surf Fabric

Care

SIGNAL & CLOSEUP ORALCARE

32Unilever's Oral Care Market Share

33Global Market Size of Oral Care

34

EBITDA Margin of Signal & Closeup

Oral Care

CIF, DOMESTOS & SUNLIGHTHOME CLEANING

36

Unilever's Surface Care,Dish Care and

Air Care Market Share

37

Global Market Size of Surface

Care,Dish Care and Air Care

http://www.trefis.com/company?hm=UL.trefis&from=pdf

Unilever's revenues and 37% of its operating profit.

Unilever's Home care business includes laundry products, such as tablets,

traditional powders and liquids for washing of clothing by hand or

machine. Tailored products including soap bars are available for lower

income consumers. Unilever's brands include Omo (‘Dirt is Good’

platform), Surf, Comfort, Radiant, Skip and Snuggle. Unilever's

household care products include surface cleaners and bleach, sold under

the Cif, Domestos and Sun / Sunlight brands. Home care accounts for

18% of Unilever's revenues and 12% of its operating profits.

4.

Customers and Suppliers Unilever’s products are generally sold through their own sales force as

well as through independent brokers, agents and distributors to chain,

wholesale, co-operative and independent grocery accounts, food service

distributors and institutions. Products are physically distributed through a

network of distribution centres, satellite warehouses, company-operated and

public storage facilities, depots and other facilities.

Around 50% of the raw materials that Unilever uses for its products come

from agriculture and forestry. Unilever buys approximately 12% of the world’s

black tea, 6% of its tomatoes and 3% of its palm oil.

Unilever's strategies for growth have been to strengthen its existing

popular brands through innovation and by improving its products rapidly to

suit latest consumer preferences. Unilever has also accelerated changes in its

production & distribution systems to make its supply chain more cost-

competitive and deliver its products faster across multiple markets. "One

Unilever" program is one such example. Unilever's business is highly

diversified and it makes conscious efforts to have a workforce that is equally

diverse so that it can cater to its consumers in international markets more

efficiently.

— VALUATION HIGHLIGHTS —

Becel, BlueBand, Knorr, Hellmann's constitute 40% of the Trefis price

estimate for Unilever Group's stock.

1.

Dove, Lux Skin & Hair Care constitutes 32% of the Trefis price estimate

for Unilever Group's stock.

2.

Lipton Beverages & Slim-fast constitutes 8% of the Trefis price estimate

for Unilever Group's stock.

3.

38

EBITDA Margin of Cif, Domestos &

Sunlight Home Cleaning

APPENDICES 42Summary P&L for Unilever Group

44

Detailed Becel, BlueBand, Knorr,

Hellmann's P&L

45

Detailed Dove, Lux Skin & Hair Care

P&L

46

Detailed Lipton Beverages & Slim-fast

P&L

47

Detailed Axe & Rexona Deodorants

P&L

48

Detailed Wall's, Algida & Other

Icecreams P&L

49

Detailed Omo & Surf Fabric Care

P&L

50

Detailed Signal & Closeup Oral Care

P&L

51

Detailed Cif, Domestos & Sunlight

Home Cleaning P&L

TREFIS ANALYSIS for UNILEVER GROUP [email protected] + 1 617 394 8763 •2

http://www.trefis.com/company#/UL?from=pdf

See the Interactive Valuation Breakdown on Trefis

Our share price estimate and the overall company value is derived by

summing-up the values of individual divisions/businesses in a sum-of-the-

parts analysis. The value of each division is calculated using a discounted cash

flow (DCF) methodology.

We forecast fundamental drivers like pricing, market share, and profit

margins for different businesses in estimating the division’s value within the

DCF framework. The analysis below primarily focuses on those important

forecasts that drive our share price and value estimate.

Our complete analysis, including sources of historical data, underlying

equations and additional discussion are available on www.trefis.com.

— POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE —

Axe & Rexona DeodorantsUnilever's market share of Antiperspirants and Deodorants: We

currently forecast Unilever's share of the global antiperspirants and

deodorants market to grow from 30.2% in 2009 to 36.2% by the end of our

forecast period. There could be a 1.2% downside to the Trefis price estimate if

the market share were to remain flat at 2009 levels.

Dove, Lux Skin & Hair CareUnilever's share of Global Hair Care market: We currently forecast

Unilever's share of the global hair care market to grow from 9.4% in 2009 to

11.4% by the end of our forecast period. There could be a 1.4% downside to

the Trefis price estimate if the market share were to remain flat at 2009

levels.

Unilever's share of Global Skin Care market: We currently forecast

Unilever's share of the global skin care market grow from 25.9% in 2009 to

27.9% by the end of our forecast period. There could be a 1.5% downside to


levels.

Omo, Surf Fabric CareFabric Care segment's EBITDA Margin: We currently forecast

Unilever's fabric care EBITDA Margin to grow from 11.4% in 2009 to 11.75%

by the end of our forecast period. There could only be a 0.3% downside to the

Trefis price estimate if the EBITDA Margin were to remain flat at 2009

levels.

Wall's, Algida & Other Ice CreamsUnilever's share of the Global Ice Cream market: We currently forecast

Unilever's share of the global ice creams market to grow from 15.6% in 2009

to 19.6% by the end of our forecast period. There could be a 2.5% downside to


levels.

— SOURCES OF VALUE —

Trefis believes Savory, Dressing and Spreads food division is the largest



http://www.trefis.com

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source of value because:

Unilever's presence and leadership across food segments provides it

significant leverage in brand loyalty, market place visibility and

popularity

1.

Unilever is a leading manufacturer of soups, bouillons, sauces,

snacks, mayonnaise, salad dressings, olive oil, margarines, liquid

margarines, spreads, ice creams and tea beverages. The numero

uno position in the global grocery market provides Unilever

significant brand visibility in supermarkets and small stores. This

helps Unilever in maintaining its market share as shoppers tend to

buy more of the easily available brands.

•

Unilever products have high popularity and loyalty in the international

markets, as some of its brands are being sold for over two decades.

Consumers perceive Unilever to be trustworthy as most of them have

grown up consuming its brands.

2.

Constant R&D efforts for product enhancement and innovations

in marketing to support new product launch Unilever is trying to

upgrade products that match growing demand for low calorie

foods from increasingly health conscious consumers. This has not

only aided sales growth through brand expansion but has also

added significantly to Unilever's top-selling savory, dressings and

spreads brand image. Besides, aggressive marketing efforts along

with a wide supply chain, which is increasingly being integrated

under "One Unilever" plan, has made Unilever's reach to its

consumers faster. Below are some of the recent innovations in

savory dressings and spread market segments:

•

In 2008, Unilever launched low fat liquid margarine

under Becel / Flora brand name to overcome the spitting

and burning that deterred consumers from using low-fat

margarine for cooking.

•

In 2009, Unilever launched the Becel pro·activ Blood

Pressure range, enriched with potassium to help manage

blood pressure. Potassium helps maintain a healthy

blood pressure, eliminating excess sodium in the body.

•

In 2009, Unilever launched Hellmann's Light and extra

light mayonnaise containing its patented citrus fibre

technology

•

In 2009, Unilever launched Frusi frozen yogurt, low

calorie Solero

•

— KEY TRENDS —

Strengthening popular brands through innovation in product R&D and

marketing

1.

Unilever's strategy is to sell its less attractive businesses and focus•


on more popular brands through innovation in R&D and

marketing. Unilever continues to leverage technology to create

bigger and better platforms, which are later rolled out to multiple

markets through its wide supply chain network. Unilever uses

consumer feedback on tastes and preferences for constantly

improving its brands as well as for marketing and advertising new

product features

Overhaul of supply chain and business operations ensure improved

efficiency and operating margins

2.

Unilever is actively working toward integrating supply chain and

business operations to reach a large number of consumers across

multiple markets in a more cost-effective way. Although

restructuring charges related to streamlining of existing

production and distribution infrastructure has negatively impacted

Unilever's operating margins in the short term yet cost savings

from boost in efficiency is expected to drive margins higher in the

long term. Following are certain initiatives by Unilever to improve

its business processes:

•

One Unilever program aims to integrate multiple

business units into a single operating structure that could

boost efficiency of business operations. Trefis expects

these ongoing integration efforts to help sustain

Unilever's operating margins in the long term despite

increasing costs in the in the near future

•

Unilever's ongoing restructuring efforts are aimed at

closing or streamlining over 50 manufacturing sites by

end 2010 to modernize and make its supply chain more

cost-competitive and to help Unilever sustain its

operating margins in the future

•

See the Full Analysis for Unilever Group on Trefis



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1.

Becel, BlueBand, Knorr, Hellmann's The Becel, BlueBand, Knorr, Hellmann's division constitutes 40.5% of our $33.24 price estimate for this stock, based on

our sum of the parts analysis.The most important drivers for the Becel, BlueBand, Knorr, Hellmann's business are:

Unilever's Market Share of Grocery

Global Market Size of Grocery

EBITDA Margin of Becel, Blueband, Knorr, Hellmann's

— UNILEVER'S MARKET SHARE OF GROCERY —

It refers to Unilever's share of the dollar value of sales of grocery consisting of soups, bouillons, sauces, snacks,

mayonnaise, salad dressings, margarines, spreads and cooking products such as liquid margarines, and frozen foods,

globally, measured at Manufacturer's Selling Price (i.e. the price at which a manufacturer like Unilever sells to the

distributor)

We estimate that Unilever's Market Share of Grocery increased from 50.6% in 2005 to 57.4% in 2008, followed by a fall

to 49% by 2009 due to a 12% decline in dollar sales of savory, dressing and spread products amid recessionary

macroeconomic outlook. Weakening euro against dollar, also had an impact in market share value. We expect Unilever's

Market Share of Grocery to increase steadily reaching 49.75% by the end of our forecast period.

Forecast RationaleWe considered the following factors for its forecast

LEADING MARKET SHARE OF SAVORY, DRESSING AND SPREADS – Unilever is the world's leading manufacturer of

savory, dressing and spreads with several brands generating over a billion dollar in annual sales. Knorr, Blue

Band/Rama,Becel/Flora, Hellmann's/Amora and Bertolli are Unilever's top selling brands. Having a leading market

share provides Unilever's savory, dressing and spreads product substantial brand loyalty and brand recall among

Unilever's Market Share of Grocery (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1 0

2 0

3 0

4 0

5 0

6 0


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2.

3.

consumers. This helps Unilever capture more shelf space and be more conspicuous in grocery stores and supermarkets

as retailers stock more quantity of the popular brands.

IMPACT OF THE BREADTH OF UNILEVER'S PRODUCTS RANGE – Unilever has the widest range of products for any

FMCG (Fast Moving Consumer Goods) company. A key characteristic of fast moving consumer goods (which

includes soaps, detergents, shampoos etc) is that the presence in stores (which in turn depends on the size and scale of

distribution) determines the market share since shoppers make most of their purchasing decisions at the store itself

and what sells is predominantly what's available. The breadth of products gives Unilever higher presence in stores,

much scope for cross-promotions (selling different products together to the end consumer, at attractive prices) along

with negotiating better terms of trade (higher volumes to the retailer at better prices). The size and scale of Unilever's

products range helps it maintain and grow its market share.

CONSISTENT PRODUCT INNOVATION TO SUIT CONSUMER PREFERENCE FOR LOW-CALORIE AND LOW-CARB FOODS –

Unilever hasn't been complacent given its strong market share position but rather it has been constantly launching

newer and improved products to satisfy growing demand from increasingly health conscious consumer. This has not

only aided sales growth through brand expansion but also has added significantly to Unilever's top selling savory,

dressings and spreads brand image. We believe that the following recent product innovations will help Unilever at

least sustain its market share of savory, dressings and spreads. In 2008, Unilever launched low fat liquid margarine

under Becel/Flora brand name in order to overcome the spitting and burning that deterred consumers from using

low-fat margarine for cooking. In 2009, Unilever launched the Becel pro·activ Blood Pressure range, enriched with

potassium to help manage blood pressure. Potassium helps maintain a healthy blood pressure, eliminating excess

sodium in the body. In 2009, Unilever launched Hellmann's Light and extra light mayonnaise containing its patented

citrus fibre technology . In 2009, Unilever launched Frusi frozen yoghurt, low calorie Solero smoothies.

Sources for historical data and explanations can be found on the Trefis.com website (link)

— GLOBAL MARKET SIZE OF GROCERY —

It refers to the dollar value of sales of grocery products consisting of spoon-able and pourable salad dressings &

sauces, globally, measured at Manufacturers' Selling Price (i.e. the price at which a manufacturer like Unilever sells to the

distributors)


http://www.trefis.com/company?hm=UL.trefis&division=1539&driver=1678&from=pdf&scroll=1

1.

2.

3.

The global grocery market size has seen a significant growth from $33.3 billion in 2005 to $37.6 bill in 2009. We expect

Global Market Size of Grocery to keep growing annually at a constant rate of 3.3%, reaching $49 billion by 2017, the end

of our forecast period.

Forecast Rationale

We considered the following factors in our forecast

SAUCES AND DRESSING SERVE AS ADDITIVES TO FOOD – Sauces & food dressings market is poised for strong

growth due to increasing consumption in main eatables which they supplement as well as because of the drive of

adventurous consumers to keep looking for some new exotic tastes to satisfy them. Various sauces like tomato

ketchup are being used with almost all kind of foods as they enhance the taste.

URBANIZATION AND EMERGENCE OF A MORE DYNAMIC LIFESTYLE LEADING TO GREATER DEPENDENCE ON PACKAGED

FOODS – As a greater proportion of women enter the work force across the globe and particularly in the emerging

economies, we expect the reliance on packaged foods to increase. Working couples, more international travel and

access to international cuisines have exposed the consumers across the globe to a world of flavors and dressings. This

urban lifestyle too favors a growth in the Global Market Size of Grocery

FUTURE GROWTH TO BE LED BY EMERGING MARKETS – New markets such as Asia-Pacific, Africa & Middle East are

attractive destinations for food & beverages companies like Kraft as their penetration in low in these regions as

compared to US & Europe. Emerging economies have been witnessing a high in disposable income and standard of

living. This combined with a higher population growth rate, a younger demographic (For instance, India has close to

half ifs population under the age of 25 years) compared to the aging population in US and Japan, all contribute to

high growth prospects of grocery market in emerging economies.


— EBITDA MARGIN OF BECEL, BLUEBAND, KNORR, HELLMANN'S —

Global Market Size of Grocery ($ Bil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1 0

2 0

3 0

4 0

5 0




1.

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) are profits after factoring in typical expenses,

such as Cost of Goods and Services Sold, SG&A Expenses, and R&D Expenses. EBITDA Margin represents divisional

EBITDA as a percentage of divisional revenue.

We adjust EBITDA figures to exclude non-recurring charges and non-cash charges, such as Stock-Based

Compensation Expenses.

EBITDA Margin of Becel, Blueband, Knorr, Hellmann's decreased from 16.8% in 2005 to 15.3% in 2008, due to the

negative impact of substantial restructuring charges incurred in 2007-08 as a result of Unilever's plan to shrink cost-base

through streamlining of supply chain, reduction in overhead expenses and integration of multiple business units. Post

these charges, EBITDA Margin of Becel, Blueband, Knorr, Hellmann's increased to 19.8% by 2010. Going forward, we

expect EBITDA Margin of Becel, Blueband, Knorr, Hellmann's to decline to 19% by 2017, the end of our forecast period.

Forecast Rationale

We considered the following key factor for its forecast

EBITDA Margin of Becel, Blueband, Knorr, Hellmann's is calculated after taking into account four main cost items:

Cost of Revenue; Sales and Marketing; General and Administrative; and Research & Development.We believe the

following factors will lead to rising EBITDA Margin of Becel, Blueband, Knorr, Hellmann's

COSTS OF GOODS SOLD – Increasing prices of commodity and energy, as the global economy recovers from recession,

would result in an increase in production costs for Unilever and put a downward pressure on its operating margins.

However, we expect increases in selling price and cost savings accrued as a result of increasingly efficient supply chain,

and 'One Unilever' program will counter any increase in costs of goods sold to a large extent. One Unilever program

aims to integrate multiple business units into a single operating structure, which would help boost efficiency of its

business operations. Trefis expects these ongoing integration efforts to help sustain Unilever's operating margins

despite increasing costs in the long term . A part of Unilever's ongoing restructuring efforts is to close or streamline

over 50 manufacturing sites by end 2010 to modernize and make its supply chain more cost-competitive. This will

help Unilever improve its operating margins in the future

EBITDA Margin of Becel, Blueband, Knorr, Hellmann's (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5

20.0



2.

3.

4.

SALES AND MARKETING COSTS – Unilever can leverage its size (with presence across the globe) and the breadth of its

products range (which enables easy distribution leading to presence in more stores and retail outlets) to dilute its

Selling and Marketing Costs over larger volumes. As a result, we expect the Selling and Marketing Costs to decline

as a percentage of Revenue in the long run, resulting in a gradual and sustained rise in EBITDA Margins.

GENERAL ADMINISTRATIVE COSTS – Unilever's restructuring efforts initiated in August 2007, have resulted in

substantial reduction in overhead expenses, the long term impact of which shall be seen in the future in terms of

lower operating expenses. This too shall enhance EBITDA Margins in the long run. However, like most consumer

goods companies, Unilever too is expected to pass on a significant portion of these cost savings to the end consumer

in the form of more competitive prices so as to gain the much coveted market share.

RESEARCH & DEVELOPMENT COSTS – Unilever's ongoing research & development efforts to sustain continuous

product improvement and introduction of new brands are expected to result in expenses in line with those over the

last few years. Unilever has been the industry leader in product innovation and we do not foresee a higher R&D

spending (as a percentage of Revenues) warranted in the future to maintain its leadership position in innovation.

Hence, Research & Development costs are not expected to affect Unilever's EBITDA margins in the future.


In addition, you can see the detailed P&L for the Becel, BlueBand, Knorr, Hellmann's business in the Appendix (link)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Revenue (Bil $) 20.9 18.4 18.7 19.5 20.3 21.0 21.8 22.7 23.6 24.4 25.3

Direct Expense (Bil $) 17.7 15.5 15.0 15.8 16.4 17.1 17.7 18.5 19.2 19.9 20.7

Indirect Expense (Bil $) 1.40 0.21 1.06 1.58 1.42 1.49 1.54 1.59 1.64 1.69 1.74

Adjusted EBITDA (Bil $) 3.19 2.94 3.70 3.73 3.84 3.97 4.10 4.24 4.38 4.51 4.65

Free Cash Flow (Bil $) n/a n/a n/a n/a 2.42 2.48 2.56 2.65 2.74 2.82 2.92



http://www.google.com

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1.

Dove, Lux Skin & Hair Care The most important drivers for the Dove, Lux Skin & Hair Care business are:

Unilever's Skin Care Market Share

Global Skin Care Market Size

EBITDA Margin of Dove, Lux Skin & Hair Care

— UNILEVER'S SKIN CARE MARKET SHARE —

It refers to Unilever's share of the dollar value of the global skin care market.

We estimate that Unilever's Skin Care Market Share increased from 23.1% in 2005 to 27.5% in 2008, and declined to 25.9%

in 2009 as dampened consumer demand amidst recessionary macroeconomic outlook in 2008-09 lead to a loss in

developed market sales to private labels and emerging market sales to local/regional players. We expect Unilever's Skin

Care Market Share to increase steadily reaching 29.5% by the end of our forecast period.

Forecast RationaleWe considered the following factors in its forecast.

MARKET LEADERSHIP IN GLOBAL MASS SKIN CARE – Billion Euro brands Dove, Lux along with Pond's and Vaseline

provide Unilever the #1 position in the global mass skin care markets. We expect Unilever to leverage its strong brand

recall and established retailer relationship, to help it gain market share globally. Strong presence in the US market:

Vaseline is the top selling hand and body lotion brand in the US. Dove is the top selling bar soap in the US. Strong

presence in the US and other mature markets will help Unilever gain market share as compared to competitors as

consumer demand recovers in the economies. Well entrenched in global markets: Lux is a market leader in high

growth markets like Arabia, Brazil, Thailand, India and South Africa.Vaseline and Dove have a presence in over 80

countries. As consumer demand grows rapidly in emerging markets, Unilever's is well poised to grow its market share

by virtue of its competitive position, strong brand recall and large scale.

Unilever's Skin Care Market Share (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

5

1 0

1 5

2 0

2 5

3 0



2.

3.









GROWING MARKET SHARE THROUGH ACQUISITIONS AND BRAND EXPANSION – We expect Unilever to gain skin care

market share because Sara-Lee's acquisition in 2009 added personal care brands such as Sanex, Radox, Duschdas to

Unilever's portfolio. Unilever's marketing prowess combined with firm establishment in global markets will help the

Sara-Lee brands to grow sales faster and positively affect Unilever's global market share. Unilever's innovation

capabilities have led to an expansion of its skin care brands into multiple segments, offering various products to suit

diverse consumer preferences. Recent launch of Dove pro-age range, Dove summer glow self-tanning and Dove for

men, products are expected to support an increasing share global skin care market value sales.


— GLOBAL SKIN CARE MARKET SIZE —

It refers to the dollar value of sales of skin care products globally, measured at Manufacturer's Selling Price (I.e. the

price at which the manufacturer such as Unilever sells to the distributors)

We estimate that Global Skin Care Market Size increased from $32.8 billion in 2005 to $36.8 billion at the end of 2009.

We expect Global Skin Care Market Size to grow at 3.4% annually and reach $48.1 billion by the end of our forecast

period.

Global Skin Care Market Size ($ Bil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1 0

2 0

3 0

4 0

5 0




1.

2.

Forecast RationaleWe considered the following factors for its forecast. Datamonitor forecasts the Global Skin Care Market Size to increase

by 17.6% over a period of five years until 2012. The rise in dollar value of skin care market can be split between rise in

volume consumption of skin care products and a rise in the average per-unit price of skin care products.

RISE IN VOLUME CONSUMPTION OF SKIN CARE PRODUCTS – The rise in volume consumption is due to an increase in

the number of users (assumed at the global population growth rate of 1.8%) and rise in the consumption per user (at

0.8% as revealed by the growth in per capita GDP at constant prices). The rise in the consumption per user can be

attributed to the following factors:. Aging population: The number of older people in the US is growing, as a

consequence of declining fertility rates and increasing life expectancy rate especially in developed markets. This

coupled with high disposable incomes in mature markets is expected to increase consumer expenditure on skin care

products. Increasing demand in emerging markets: Rising disposable incomes, and increasing consumer awareness in

emerging markets are expected to increase consumer demand for skin care products across all segments. Product

innovation: Increasing number of skin care products in the premium segment due to increased innovation by

cosmetics manufacturers is expected to increase revenues for overall skin care markets. More R&D results in more

specific products such as anti-aging etc, which lead to higher sales of skin care products. Increasing consumer

awareness of health, wellness and beauty: Consumers are growing increasingly aware of their health, leading to a

increase in demand for medicated skin care products. Organic skin care products have also witnessed increase in

consumer demand, as consumers grow increasingly aware of malfunction risk with chemicals products.

RISE IN THE AVERAGE PER-UNIT PRICE OF SKIN CARE PRODUCTS – The rising input costs such as costs of raw

materials, labour costs, selling and marketing expenses and other administrative expenses are passed on to the final

consumer in the form of rise in prices. We expect the prices to rise in line with historical average of 0.8% year-on-

year.

Hence, the rise in volume consumption (at 1.8%+0.8%) combined with rise in average per-unit price (at 0.8%) is expected

to grow the skin care market at 3.4% year-on-year.


— EBITDA MARGIN OF DOVE, LUX SKIN & HAIR CARE —

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) are profits after factoring in typical

expenses, such as Cost of Goods and Services Sold, SG&A Expenses, and R&D Expenses. EBITDA Margin represents

divisional EBITDA as a percentage of divisional revenue.





1.

2.

3.

EBITDA Margin of Dove, Lux Skin & Hair Care decreased from 18.8% in 2005 to 15.8% in 2007, due to the negative

impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through

streamlining of supply chain, reduction in overhead expenses and integration of multiple business units. Post these

charges, EBITDA Margin of Dove, Lux Skin & Hair Care increased to 17.7% in 2010. Going forward, we expect

EBITDA Margin of Dove, Lux Skin & Hair Care to rise to 18.5% by 2017, the end of our forecast period.

Forecast Rationale


EBITDA Margin of Dove, Lux Skin & Hair Care is calculated after taking into account four main cost items: Cost

of Revenue; Sales and Marketing; General and Administrative; and Research & Development.We believe the following

factors will lead to rising EBITDA Margin of Dove, Lux Skin & Hair Care

















EBITDA Margin of Dove, Lux Skin & Hair Care (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5



4.

•

•

•









In addition, you can see the detailed P&L for the Dove, Lux Skin & Hair Care business in the Appendix (link)

Lipton Beverages & Slim-fast The most important drivers for the Lipton Beverages & Slim-fast business are:

Unilever's Market Share of Tea Beverages

Global Market Size of Tea Beverages

EBITDA Margin of Lipton Beverages & Slim-fast

— UNILEVER'S MARKET SHARE OF TEA BEVERAGES —

It refers to Unilever's share of the dollar value of sales of beverages globally, measured at Manufacturer's Selling Price (i.e.

the price at which the manufacturer sells to the distributor)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


Skin Care Revenues (% of total) 75.5 75.5 75.5 75.3 74.9 74.6 74.3 74.0 73.9 73.9 73.8

Shampoos & Conditioner Revenues

(% of total)24.5 24.5 24.5 24.7 25.1 25.4 25.7 26.0 26.1 26.1 26.2


Indirect Expense (Bil $) 0.86 0.15 0.79 1.20 1.08 1.14 1.19 1.24 1.29 1.34 1.39






1.

2.

3.

Unilever's share of the global beverages market increased from 10% in 2005 to 11.5% in 2008, and declined to 10.7% in

2009, as global recession sapped consumer demand with Unilever losing volumes to private labels in developed markets

and to local/regional players in emerging markets.

Going forward, we expect the Unilever's Market Share of Tea Beverages will increase steadily reaching 12.2% by the

end of our forecast period.

Forecast RationaleWe considered the following factors in our forecast

LEADERSHIP POSITION IN TEA BEVERAGES – Unilever's Lipton brand has the lion's share of tea beverages market,

which is nearly three times that of its nearest rival brand. Tea beverage industry is highly fragmented and thus, it

provides the Lipton tea brand substantial brand equity,easy access to a large customer base across multiple

geographies through a large integrated supply chain network. Trefis expects high brand recognition combined with

operational synergies with parent Unilever, to continue driving Lipton brand sales higher, particularly in rapidly

growing markets of Asia, Africa and Latin America.









INNOVATION LEADING TO A RAPID EXPANSION INTO NEWER HIGH GROWTH MARKET SEGMENTS – Lipton has been

expanding rapidly into various high growth segments of the tea beverages market, which will continue to drive up its

already large market share . International Lipton Ice Tea range, North American Lipton Brisk range, Asian Lipton

ready-to-drink teas are helping Lipton expand rapidly into high growth ready to drink tea beverage segment. Lipton

Pyramid tea bags that give the leaves more room to move and Lipton Cold Brew tea bags that allow iced tea to be

Unilever's Market Share of Tea Beverages (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5



1.

2.

freshly brewed in cold water in just five minutes are a few of the innovations Lipton has introduced in the popular leaf

tea segment. Lipton has expanded into green tea market segment with Lipton Green leaf and ready to drink tea

beverages.


— GLOBAL MARKET SIZE OF TEA BEVERAGES —

It refers to the dollar value of sales of all forms of tea, consisting of instant tea (multi-serving containers and single-

serve/on-the-go packets), leaf tea (loose, bagged and stick forms), liquid concentrate (requires dilution prior to

consumption) and ready-to-drink (RTD) beverages, globally, measured at Manufacturers' Selling Price (i.e. the price at

which a manufacturer like Unilever sells to the distributors).

The global tea beverages market size grew from $28.2 billion in 2005 to $31 billion in 2009 at an annual average growth

rate of 2.4%. We expect Global Market Size of Tea Beverages to keep growing annually at a constant rate of 3% and

reach $39.3 billion by 2017, the end of our forecast period.

Forecast Rationale


READY TO DRINK (RTD) AND GREEN TEA VARIANTS HAVE STIMULATED CONSUMER DEMAND ACROSS THE WORLD –

Increased promotion of health benefits that accrue from tea consumption and introduction of new products by tea

companies has lead to an ever increasing demand for ready to drink tea and green tea products. As consumers become

increasingly health conscious and spur spending on low calorie food and beverages, ready to drink and green tea will

continue to see an increase in sales which would result in growth of tea beverage market.

RISING WORLDWIDE POPULATION OF YOUNG URBAN CLASS AND CONSEQUENT RISE IN SNACKING – 30% of the world

population lived in urban areas in 1950, which had then grown to 50% in 2008 and is expected to reach the levels of

Global Market Size of Tea Beverages ($ Bil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

5

1 0

1 5

2 0

2 5

3 0

3 5

4 0




70% by 2050. Much of this growth in urban dwellers is driven by less developed nations as currently they have urban

populations in the range of 40-44% compared to 74-75% for developed nations. These rising numbers of young urban

professionals, owing to their busy lifestyles, are more attracted to ready-to-eat-food and thereby should drive the

future growth of the world’s snacks market. Rise in snacking food habit has shown a positive impact on the beverage

industry. The world snack foods market stands enthused by the growing emphasis on convenience laid by time-

constrained consumers. This trend has raised the consumption of beverages as they are paired up with the snacks to

form small meals. Breakfast sandwiches have been identified as the top growing breakfast food in the developed

economies, and consumers are very likely to pair such meals with a beverage (especially coffee, tea or juice). This

trend is underpinning growth across all beverage categories, and has driven manufacturers to roll-out portable

packaging solutions compatible with vehicle consoles.


— EBITDA MARGIN OF LIPTON BEVERAGES & SLIM-FAST —






EBITDA Margin of Lipton Beverages & Slim-fast decreased from 11.8% in 2006 to 10.5% in 2007, due to the negative



charges, EBITDA Margin of Lipton Beverages & Slim-fast increased to 11.6% in 2009 and then came down to 10.7% in

2010, on account of pricing pressures. Going forward, we expect EBITDA Margin of Lipton Beverages & Slim-fast to

rise to 11.25% by 2017, the end of our forecast period.

EBITDA Margin of Lipton Beverages & Slim-fast (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5




1.

2.

3.

4.

Forecast Rationale


EBITDA Margin of Lipton Beverages & Slim-fast is calculated after taking into account four main cost items: Cost

of Revenue; Sales and Marketing; General and Administrative; and Research & Development.We believe the following

factors will lead to rising EBITDA Margin of Lipton Beverages & Slim-fast

























2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


Slimfast & Other Nutrion Foods

Revenues (% of total)5.57 5.57 5.57 5.63 5.74 5.83 5.93 5.92 6.14 6.37 6.61

Lipton & Other Beverages

Revenues (% of total)94.4 94.4 94.4 94.4 94.3 94.2 94.1 94.1 93.9 93.6 93.4


Indirect Expense (Mil $) 30.4 4.71 22.6 34.2 31.1 33.0 34.8 36.3 37.9 39.6 41.2

Adjusted EBITDA (Mil $) 454 407 397 420 443 467 495 518 545 572 601

Free Cash Flow (Mil $) n/a n/a n/a n/a 412 434 460 482 507 533 560



•

•

•

1.

In addition, you can see the detailed P&L for the Lipton Beverages & Slim-fast business in the Appendix (link)

Axe & Rexona Deodorants The most important drivers for the Axe & Rexona Deodorants business are:

Unilever's Market Share of Antiperspirants and Deodorants

Global Market Size of Antiperspirants and Deodorants

EBITDA Margin of Axe & Rexona

— UNILEVER'S MARKET SHARE OF ANTIPERSPIRANTS AND DEODORANTS —

It refers to Unilever's share of global antiperspirants and deodorants market value.

We estimate that Unilever's Market Share of Antiperspirants and Deodorants increased from 27.4% in 2005 to 31.6% in

2008, followed by a decrease to 30.2% in 2009. The general trend of rise in market share with expansion into emerging

markets was stalled in 2009 on account of recessionary macroeconomic outlook in 2008-09 wherein the consumers

substituted with lower priced private labels and local brands amidst lower disposable income levels. Going forward, we

expect Unilever's Market Share of Antiperspirants and Deodorants to rise steadily reaching 35% by 2017, the end of our

forecast period.

Forecast RationaleWe considered the following factors in our forecast

LARGEST MARKET SHARE OF GLOBAL DEODORANTS MARKET – Unilever's Rexona brand is the largest deodorant brand

by sales. Axe, Unilever's deodorant brand targetting male population, is a market leader in European and Latin

American markets. Trefis expects Unilever to grow its market share as these highly popular brands are introduced

into newer high growth markets, supported by strong brand recall and firm understanding of consumer preference

Unilever's Market Share of Antiperspirants and Deodorants (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

5

1 0

1 5

2 0

2 5

3 0

3 5




2.

3.

and behavior associated Unilever's leadership position in several countries.









INNOVATION IN PRODUCTS AND PROMOTIONS – Unilever has earned substantial brand equity for its deodorants brands

as a result of continuing innovation in advertising and launch of new products. Unilever's Axe is among the most

popular male grooming brand and has won several awards in Cannes for its prowess in brand promotion. Trefis

expects Unilever to continue gaining market share leveraging the huge brand recall of its established brands. Unilever

launched Dove hair minimizing deodorant in 2009 across 37 markets globally. We expect Unilever to continue

expanding its brands into different regions, segments by continuously evolving its products and differentiating them

from competing brands.


— GLOBAL MARKET SIZE OF ANTIPERSPIRANTS AND DEODORANTS —

It refers to the dollar value of the sale of antiperspirants and deodorants globally, at Manufacturer's Selling Price, i.e.

the price at which the manufacturer (Unilever) sells to the distributors.

We estimate that Global Market Size of Antiperspirants and Deodorants increased from $8.3 billion in 2005 to $9.4

billion at the end of 2009 at a CAGR of over 3.2%. Going forward, we expect Global Market Size of Antiperspirants and

Deodorants to grow at 3.1% annually, reaching $12.1 billion by 2017, the end of our forecast period.

Global Market Size of Antiperspirants and Deodorants ($ Bil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5




1.

2.

Forecast RationaleWe considered the following factors in our forecast.

Datamonitor [Source: Global Deodorants Market (2008)] forecasts the global deodorants market value to increase by

17.7% over a period of five years until 2013, which is in line with the historical average growth rate.

The rise in the dollar value of market size of deodorants and anti-perspirants is split between rise in volume

consumption of deodorants and anti-perspirants, and rise in per-unit price of deodorants and anti-perspirants.

RISE IN VOLUME CONSUMPTION OF DEODORANTS AND ANTI-PERSPIRANTS – Growth Rate of Global Population: The

volume consumption increases with increase in the number of users at the global population growth rate of 1.8%.

Growth in consumption per user: As deduced from the Growth in Per Capita GDP at constant prices, the growth in

consumption on account of rising standards of living globally and rising disposable income levels in emerging

economies contributes close to 0.8% to rise in volume consumption of deodorants and antiperspirants. Hence, the

volume consumption is expected to rise at 2.6% (=1.8%+0.8%) year-on -year.

RISE IN AVERAGE PER-UNIT PRICE – As the input costs such as costs associated with raw materials, labour, selling and

marketing and other administrative costs rise, the same shall be passed on the end consumer in the form of higher

prices. We expect the prices to rise in line with the historical levels of close to 0.5% year-on-year.

The combined effect of a rise in volume consumption (at 2.6%) and a rise in per-unit price (at 0.5%), is a rise in the dollar

value of the market size of deodorants and anti-perspirants at 3.1% year-on-year.


— EBITDA MARGIN OF AXE & REXONA —

Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) are profits after factoring in typical

expenses, such as Cost of Goods and Services Sold, SG&A Expenses, and R&D Expenses. EBITDA Margin represents

divisional EBITDA as a percentage of divisional revenue.



EBITDA Margin of Axe & Rexona (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5




1.

2.

3.

4.

EBITDA Margin of Axe & Rexona decreased from 18.8% in 2005 to 15.8% in 2007, due to the negative impact of

substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining of

supply chain, reduction in overhead expenses and integration of multiple business units. Post these charges, EBITDA

Margin of Axe & Rexona increased to 17.7% in 2010. Going forward, we expect EBITDA Margin of Axe & Rexona to

rise to 18.5% by 2017, the end of our forecast period.

Forecast Rationale


EBITDA Margin of Axe & Rexona is calculated after taking into account four main cost items: Cost of Revenue;

Sales and Marketing; General and Administrative; and Research & Development.We believe the following factors will

lead to rising EBITDA Margin of Axe & Rexona

























2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018



Indirect Expense (Mil $) 194 32.9 179 271 245 258 267 276 285 294 303





•

•

•

1.

In addition, you can see the detailed P&L for the Axe & Rexona Deodorants business in the Appendix (link)

Wall's, Algida & Other Icecreams The most important drivers for the Wall's, Algida & Other Icecreams business are:

Unilever's Market Share of Ice Creams

Global Market Size of Ice Creams

EBITDA Margin of Wall's, Algida & Other IceCreams

— UNILEVER'S MARKET SHARE OF ICE CREAMS —

It refers to Unilever's share of the dollar value of sales of Ice-Creams globally, as measured at Manufacturer's Selling Price

(i.e. the price at which a manufacturer like Unilever sells to the distributor)

Unilever's share of the global ice-creams market increased from 15% in 2005 to 17% in 2008, as Unilever grew its market

share through acquisition of several ice-cream brands. Unilever's Market Share of Ice Creams however declined to 15.6%

in 2009, as global recession sapped consumer demand. Going forward, we expect the Unilever's Market Share of Ice

Creams will increase and reach 17% by the end of our forecast period.

Forecast Rationale


STRONG MARKET SHARE POSITION AS COMPARED TO COMPETITORS – Unilever's ice cream sales are 16% of the global

ice cream market, next only to Nestle's 17%. Rest of the industry is highly fragmented with the third largest player

having less than half of Unilever's annual turnover. This provides the Heartbrand ice creams substantial scale, higher

brand equity, access to a large customer base across multiple geographies through a large integrated supply chain

Unilever's Market Share of Ice Creams (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5




2.

network. Trefis expects these factors to continue bolster Unilever's ice cream sales particularly in high growth markets

of Asia, Africa and Latin America.

FOCUS ON PRODUCT INNOVATION TO CATER TO AN INCREASINGLY HEALTH CONSCIOUS POPULATION – Unilever has

undertaken sustained R&D efforts and continuously evolve its ice-creams brands so as to suit changing consumer

preferences. As consumers are shifting to low calorie and healthy foods, Unilever has launched several new products

and initiative to match these trends. For example following few initiatives along with others have been increasing ice-

cream sales driven by higher acceptance and popularity among consumers. Besides, offering low calorie ice creams

such as Carte d'Or Light and Solero Exotic, Unilever has taken initiative to label its ice cream products with

information on fiber, saturated fat, sodium, sugars values and other diet components. Popular ice-cream brands such

as Cornetto and Magnum, have been offered in snack size to facilitate consumption of smaller portions helping

consumers in diet control Unilever has increased its presence in premium ice cream segment such as through

acquisition of Ben& Jerry's and addition of super premium ice cream products like Chunkey Monkey. This has led to

a higher overall value of Unilever's ice cream portfolio as well as keeping at bay its lower cost competitors.


— GLOBAL MARKET SIZE OF ICE CREAMS —

It refers to the dollar value of sales of ice-creams in form of cones, candies, cups and other larger packages, globally,

measured at Manufacturers' Selling Price (i.e. the price at which a manufacturer like Unilever sells to the distributors)

We estimate that the Global Market Size of Ice Creams increased from $40.1 billion in 2005 to $46.3 billion by the end of

2009. Going forward, we expect Global Market Size of Ice Creams to grow at close to 2.5% annually, reaching $56.4

billion by 2017, the end of our forecast period.

Forecast Rationale

Global Market Size of Ice Creams ($ Bil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1 0

2 0

3 0

4 0

5 0

6 0




1.

2.


FASTER GROWTH IN CHINESE, INDIAN AND OTHER EMERGING MARKETS – Growing demand of dairy products,

including ice cream, from consumers in emerging markets will continue to support growth in ice cream value sales.

Trefis expects the following factors to sustain an increasing consumer demand in future . Rising disposable income

and rising consumer appetite for packaged premium ice cream products. Entry of international players is leading to

the creation of efficient storage and distribution system under an integrated supply chain. This would lead to an

increasing supply of various ice cream products which were not available before in these markets.

GROWING COMPETITION AND HEALTH AWARENESS LEADING TO EXPANSION OF ICE CREAMS INTO NEWER PRODUCT

CATEGORIES – Growing competition from private labels and increasing consumer demand for low calorie food

products have lead leading manufacturers to introduce newer flavors and variants to expand their ice cream product

offering. Expansion of premium segments as well as introduction of newer categories will help growth of global ice

cream market.


— EBITDA MARGIN OF WALL'S, ALGIDA & OTHER ICECREAMS —






EBITDA Margin of Wall's, Algida & Other IceCreams decreased from 11.8% in 2006 to 10.5% in 2007, due to the

negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base


these charges, EBITDA Margin of Wall's, Algida & Other IceCreams increased to 11.6% in 2009 and came down to

EBITDA Margin of Wall's, Algida & Other IceCreams (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5




1.

2.

3.

4.

10.7% by 2010 on account of pricing pressures. Going forward, we expect EBITDA Margin of Wall's, Algida & Other

IceCreams to rise to 11.25% by 2017, the end of our forecast period.

Forecast Rationale


EBITDA Margin of Wall's, Algida & Other IceCreams is calculated after taking into account four main cost items:

Cost of Revenue; Sales and Marketing; General and Administrative; and Research & Development.We believe the

following factors will lead to rising EBITDA Margin of Wall's, Algida & Other IceCreams

























In addition, you can see the detailed P&L for the Wall's, Algida & Other Icecreams business in the Appendix (link)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018









•

•

•

1.

Omo & Surf Fabric Care The most important drivers for the Omo & Surf Fabric Care business are:

Unilever's Fabric Care Market Share

Global Market Size of Fabric Care

EBITDA Margin of Omo & Surf Fabric Care

— UNILEVER'S FABRIC CARE MARKET SHARE —

It refers to Unilever's share of dollar value of sales of laundry products globally, as measured at Manufacturer's Selling

Price (i.e. the price at which a manufacturer like Unilever sells to the distributors)

We estimate that Unilever's Fabric Care Market Share increased from 15.7% in 2005 to 17.6% in 2008, and declined to

15.6% in 2009 as Unilever sold its North American laundry business. Going forward we expect Unilever's Fabric Care

Market Share to rise to 17% by the end of Trefis forecast period.

Forecast Rationale


Supporting







Unilever's Fabric Care Market Share (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5



2.

3.



WINDING UP OF NORTH AMERICAN BUSINESS TO BENEFIT BUSINESS IN OTHER REGIONS – Trefis expects that spinning

off laundry care business in North America will help Unilever focus on other markets by stepping up brand

advertising and new product launch, thus supporting it to maintain current market share position in regions where it

faces increasing competition.

Mitigating

INTENSE COMPETITION FROM LARGER BRANDS AND LOCAL PLAYERS IN LAUNDRY CARE BUSINESS – Trefis expects an

increasing competition from leading laundry care brands such as Tide & Ariel (Procter and Gamble), having a global

market share twice that of Unilever's, would limit Unilever's ability to gain market share in future. As competing

brands try to gain access to consumers in markets where Omo & Surf are present, declines in pricing and sluggish

volume growth prospects constrain any increase in Unilever's market share.


— GLOBAL MARKET SIZE OF FABRIC CARE —

It refers to the dollar value of sales of fabric care products such as detergents, fabric softeners, stain pretreatments and

chlorine bleach, globally, measured at Manufacturers' Selling Price (i.e. the price at which the manufacturer sells to the

distributors).

We estimate that the Global Market Size of Fabric Care increased from $41.4 billion in 2005 to $46.2 billion at the end of

2009. Going forward, we expect Global Market Size of Fabric Care to grow at close to 3% annually reaching $58 billion

by 2017, the end of our forecast period.

Global Market Size of Fabric Care ($ Bil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1 0

2 0

3 0

4 0

5 0

6 0




1.

2.

3.

Forecast Rationale


EUROMONITOR [SOURCE: GLOBAL LAUNDRY MARKET] FORECASTS THE GROWTH IN GLOBAL MARKET SIZE OF FABRIC

CARE TO BE AT 3% FOR THE PERIOD UNTIL 2012, IN LINE WITH THE HISTORICAL GROWTH RATES. – Given the nature

of the product, the growth is primarily driven by increase in the number of users (at global population growth rate of

1.8%) and year-on-year price rise (close to 1.2%, historically and determined by price of crude oil, derivatives of which

constitute key ingredients)

EMERGING MARKETS EXPECTED TO DRIVE GROWTH – Growing disposable income of consumers in emerging markets

such as Asia and Latin America would bolster demand for powdered/liquid detergents as consumers shift from

traditional hand washing to using machine and laundry services.

EXPANSION INTO LIQUID DETERGENTS AND FABRIC SOFTENER – The global laundry products market is expected to

expand with the increasing adoption of concentrated liquid detergents, fabric softener and other laundry additives..


— EBITDA MARGIN OF OMO & SURF FABRIC CARE —






EBITDA Margin of Omo & Surf Fabric Care decreased from 11.2% in 2005 to 9.8% in 2007, due to the negative impact

of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base through streamlining

of supply chain, reduction in overhead expenses and integration of multiple business units. Post these charges, EBITDA

Margin of Omo & Surf Fabric Care decreased to 9% by 2010. Going forward, we expect EBITDA Margin of Omo &

EBITDA Margin of Omo & Surf Fabric Care (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0




1.

2.

3.

4.

Surf Fabric Care to rise to 9.75% by 2017, the end of our forecast period.

Forecast Rationale


EBITDA Margin of Omo & Surf Fabric Care is calculated after taking into account four main cost items: Cost of

Revenue; Sales and Marketing; General and Administrative; and Research & Development.We believe the following

factors will lead to rising EBITDA Margin of Omo & Surf Fabric Care

























In addition, you can see the detailed P&L for the Omo & Surf Fabric Care business in the Appendix (link)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018









•

•

•

1.

Signal & Closeup Oral Care The most important drivers for the Signal & Closeup Oral Care business are:

Unilever's Oral Care Market Share

Global Market Size of Oral Care

EBITDA Margin of Signal & Closeup Oral Care

— UNILEVER'S ORAL CARE MARKET SHARE —

It refers to Unilever's share of dollar value of sales of oral care products globally.

We estimate that Unilever's Oral Care Market Share increased from 4.3% in 2005 to 5.5% in 2008, and declined to 5.2% in

2009 as Unilever's sales dropped sharply because of global recession and lost share to private labels in developed markets

and to local/regional players in emerging markets We expect Unilever's Oral Care Market Share to increase gradually

reaching 6.5% by the end of our forecast period.

Forecast Rationale

We considered the following factors in its forecast

Supporting

STRONG ADVERTISING CAMPAIGNS SUPPORT HIGH POPULARITY: UNILEVER HAS GAINED SIGNIFICANT POPULARITY OF

ITS BRANDS ACROSS THE WORLD, PARTICULARLY EMERGING MARKETS, THROUGH INNOVATIVE ADVERTISING

CAMPAIGNS. TREFIS EXPECTS THE FOLLOWING RECENT INITIATIVES BY UNILEVER TO HELP IT GAIN MARKET SHARE IN

ORAL CARE PRODUCT SALES. – "Brush Day+Night" ad campaign launched to encourage families to brush teeth twice

daily has been successful in markets such as China. Buoyed by its success Unilever plans to roll-out the campaign in

many other parts of the world further adding to its Unilever's brand equity. Unilever has taken several initiatives to

Unilever's Oral Care Market Share (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1

2

3

4

5

6

7



2.

3.

4.

promote awareness for oral health and hygiene among consumers across the world. Unilever accomplishes that by

administering education campaigns in schools, communities and collaboration with government and non-government

health care agencies. The overall result is rise in demand and larger share for Unilever's oral care brands.









INNOVATION SUPPORTS LAUNCH OF NEWER AND ENHANCED PRODUCTS: UNILEVER HAS CONSTANTLY EXPANDED ITS

PORTFOLIO BY INTRODUCING NEWER PRODUCTS, HELPING IT ADDRESS CONSUMER PREFERENCES FOR ORAL CARE

PRODUCTS ACROSS DIFFERENT MARKET SEGMENTS AND REGIONS. TREFIS EXPECTS THE FOLLOWING INITIATIVES

TAKEN RECENTLY, WILL HELP SUPPORT AN INCREASING UNILEVER'S MARKET SHARE OF GLOBAL ORAL CARE MARKET. –

Signal White Now, which uses a blue pigment to make teeth appear whiter, is the latest innovation from Unilever.

Unilever expanded its toothbrush offering by launching branded toothbrush for both value segment (Essential) and

premium segment(Air Precision), helping it develop footprint in multiple segments of global oral care market.

Mitigating

INCREASING COMPETITION FROM SUBSTITUTES AND COMPETING BRANDS – Increased competition in emerging

markets from competing brands such as Colgate(Colgate-Palmolive), Crest(P&G) who have a substantial share of

the broader oral care market, globally might limit Unilever's ability to expand its market share in markets where its

Signal and Closeup brands have a strong presence.


— GLOBAL MARKET SIZE OF ORAL CARE —

It refers to the dollar value of sales of oral care products such as toothpastes, toothbrushes, mouthwash, dental floss

and others, globally, measured at Manufacturers' Selling Price (i.e. the price at which a manufacturer like Unilever sells to

the distributors).



1.

2.

We estimate that the Global Market Size of Oral Care increased from $17 billion in 2005 to $18 billion by the end of

2009. We expect Global Market Size of Oral Care to grow at 2.2% annually reaching $21.5 billion by 2017, the end of our

forecast period.

Forecast Rationale


DATAMONITOR [SOURCE: ORAL HYGIENE:GLOBAL INDUSTRY OUTLOOK] FORECASTS THE GLOBAL MARKET SIZE OF ORAL

CARE TO INCREASE BY 15.8% FOR A PERIOD OF FIVE YEARS UNTIL 2013, WHICH IS IN LINE WITH HISTORICAL AVERAGE

GROWTH RATE. – Oral Care as a product category is highly resilient to economic downturns. The volume

consumption grows steadily, in line with rise in the number of users (at the global population growth rate of 1.8%).

We expect a year-on-year rise in the average per-unit price of oral care products to be in line with historical average of

0.4%. These translate into a stable growth rate of close to 2.2% going forward.

CONSUMER DEMAND FROM EMERGING MARKET ECONOMIES – We expect growing population, rapidly growing

economies and increasing penetration of branded goods as a result of rising disposable incomes of consumers, in

developing markets, to bolster consumer demand for toothpastes and other oral care products. Much of the growth

from emerging economies would be on account of rise in average per-unit price as consumers move up to branded

oral care products, amidst rising disposable income levels and improving standards of living.


— EBITDA MARGIN OF SIGNAL & CLOSEUP ORAL CARE —






Global Market Size of Oral Care ($ Bil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

5

1 0

1 5

2 0




1.

2.

3.

EBITDA Margin of Signal & Closeup Oral Care decreased from 18.8% in 2005 to 15.8% in 2007, due to the negative



charges, EBITDA Margin of Signal & Closeup Oral Care increased to 17.7% in 2010. Going forward, we expect

EBITDA Margin of Signal & Closeup Oral Care to rise to 18.5% by 2017, the end of our forecast period.

Forecast Rationale


EBITDA Margin of Signal & Closeup Oral Care is calculated after taking into account four main cost items: Cost of

Revenue; Sales and Marketing; General and Administrative; and Research & Development.We believe the following

factors will lead to rising EBITDA Margin of Signal & Closeup Oral Care

















EBITDA Margin of Signal & Closeup Oral Care (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0

12.5

15.0

17.5



4.

•

•

•









In addition, you can see the detailed P&L for the Signal & Closeup Oral Care business in the Appendix (link)

Cif, Domestos & Sunlight Home Cleaning The most important drivers for the Cif, Domestos & Sunlight Home Cleaning business are:

Unilever's Surface Care,Dish Care and Air Care Market Share

Global Market Size of Surface Care,Dish Care and Air Care

EBITDA Margin of Cif, Domestos & Sunlight Home Cleaning

— UNILEVER'S SURFACE CARE,DISH CARE AND AIR CARE MARKET SHARE —

It refers to Unilever's share of the dollar value of household cleaning products(Dish Wash, Surface Cleaning,

Air Freshener) globally, measured at Manufacturer's Selling Price (i.e. the price at which a manufacturer like Unilever sells

to the distributor)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018



Indirect Expense (Mil $) 64.1 10.9 59.3 91.1 82.3 86.3 89.1 92.0 95.0 98.1 100






1.

2.

We estimate that Unilever's Surface Care,Dish Care and Air Care Market Share decreased from 9.7% in 2005 to 7.1% in

2009. Going forward we expect Unilever's Surface Care,Dish Care and Air Care Market Share to recover, albeit partially,

rising to 7.5% by the end of our forecast period

Forecast Rationale

We considered the following factors in its forecast.

INCREASING COMPETITION IN MARKETS WHERE UNILEVER IS PRESENT – The largest markets where Unilever's

household cleaning brands, Cif, Domestos & Sunlight, are present are attracting lower cost players along with several

global manufacturers. These markets include India and Brazil, and increasing competition has lead to a rapid decline

in Unilever's household cleaning products. Hence, Trefis expects downward pressures on Unilever's market share

leading to only a partial recovery of lost market share from almost 10% in 2005 to 7.5% by 2017.

DAMPENED CONSUMER DEMAND IN EUROPEAN MARKETS – Unilever is a major player in European markets especially

UK, where contraction in consumer demand due to global recession had lead to rapid decline in overall sales. Trefis

expects consumer demand to recover at a gradual pace thus leading to a slower growth in sales of household brands,

Cif, Domestos & Sunlight as compared to faster growth in overall global market.


— GLOBAL MARKET SIZE OF SURFACE CARE,DISH CARE AND AIR CARE —

It refers to the dollar value of sales of surface cleaning, dish care & air care products, globally, measured at

Manufacturers' Selling Price (i.e. the price at which a manufacturer like Unilever sells to the distributors)

Unilever's Surface Care,Dish Care and Air Care Market Share (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1

2

3

4

5

6

7

8




1.

2.

We estimate that the Global Market Size of Surface Care,Dish Care and Air Care increased from $22.9 billion in 2005 to

$34.6 billion by the end of 2009. Going forward, we expect Global Market Size of Surface Care,Dish Care and Air Care

to grow at 3.9% annually, reaching $47 billion by 2017, the end of our forecast period.

Forecast Rationale


FASTER GROWTH IN EMERGING MARKET – A rapidly recovering economy, rising disposable income and a consequent

increase in purchasing power of low-income groups of consumers in Emerging markets has led to growth in demand

for household cleaning products. We expect this trend to continue and support future growth. Much of the emerging

market is yet to be tapped by air freshners and focused surface cleaners.

PRODUCT INNOVATION TO DRIVE UP DEMAND – Consumers globally have been switching to easy-to-use household

cleaning products from traditional cleaning products. As manufacturers continue to enhance their product properties

through innovation, consumer demand is set to sustain historical growth rates going forward. As surface cleaners

meant for a more specific use, are made available to the consumers, the growth in this niche segment is expected to be

robust, going forward.


— EBITDA MARGIN OF CIF, DOMESTOS & SUNLIGHT HOME CLEANING —






Global Market Size of Surface Care,Dish Care and Air Care ($ Bil)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180

1 0

2 0

3 0

4 0

5 0




1.

2.

3.

EBITDA Margin of Cif, Domestos & Sunlight Home Cleaning decreased from 11.2% in 2005 to 9.8% in 2007, due to the

negative impact of substantial restructuring charges incurred in 2007 as a result of Unilever's plan to shrink cost-base


these charges, EBITDA Margin of Cif, Domestos & Sunlight Home Cleaning increased to 9% by 2010. Going forward,

we expect EBITDA Margin of Cif, Domestos & Sunlight Home Cleaning to rise to 9.75% by 2017, the end of our

forecast period.

Forecast Rationale


EBITDA Margin of Cif, Domestos & Sunlight Home Cleaning is calculated after taking into account four main cost

items: Cost of Revenue; Sales and Marketing; General and Administrative; and Research & Development.We believe the

following factors will lead to rising EBITDA Margin of Cif, Domestos & Sunlight Home Cleaning
















EBITDA Margin of Cif, Domestos & Sunlight Home Cleaning (%)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 20180.0

2.5

5.0

7.5

10.0



4.










In addition, you can see the detailed P&L for the Cif, Domestos & Sunlight Home Cleaning business in the Appendix (

link)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018





Free Cash Flow (Mil $) n/a n/a n/a n/a 61.3 65.2 72.4 80.2 88.6 96.9 106




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Appendix

Summary P&L for Unilever Group

Summary P&L for Unilever Group

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Revenues (Bil $) 59.5 55.3 58.4 61.3 63.9 66.5 69.2 72.0 74.8 77.7 80.6

Becel, BlueBand, Knorr, Hellmann's

(% of total)35.1 33.3 32.0 31.8 31.7 31.6 31.6 31.5 31.5 31.5 31.4

Dove, Lux Skin & Hair Care (% oftotal)

21.6 22.9 23.9 24.1 24.2 24.4 24.5 24.7 24.8 24.9 25.1

Lipton Beverages & Slim-fast (% oftotal)

6.22 6.38 6.37 6.43 6.47 6.52 6.57 6.56 6.57 6.59 6.61

Axe & Rexona Deodorants (% oftotal)

4.88 5.16 5.39 5.46 5.48 5.51 5.50 5.49 5.48 5.49 5.49

Wall's, Algida & Other Icecreams

(% of total)12.8 13.1 13.1 12.9 12.9 12.8 12.6 12.5 12.4 12.3 12.3

Omo & Surf Fabric Care (% of total) 13.3 13.0 13.0 13.0 12.9 12.9 12.9 12.9 12.8 12.8 12.8

Signal & Closeup Oral Care (% oftotal)

1.61 1.71 1.79 1.83 1.84 1.84 1.83 1.83 1.83 1.83 1.83

Cif, Domestos & Sunlight Home

Cleaning (% of total)4.53 4.45 4.44 4.43 4.45 4.47 4.49 4.52 4.54 4.54 4.55

Direct Expenses (Bil $) 51.0 47.1 49.3 52.0 54.1 56.3 58.6 60.9 63.3 65.6 68.1


(% of total)37.7 36.1 40.9 39.9 39.3 39.0 38.6 38.2 37.8 37.5 37.2


26.7 27.4 27.4 27.8 28.2 28.5 28.7 29.0 29.2 29.5 29.7


5.37 5.01 4.39 4.51 4.55 4.59 4.66 4.68 4.72 4.76 4.80


6.03 6.17 6.17 6.31 6.39 6.44 6.44 6.45 6.46 6.48 6.50


(% of total)11.0 10.3 9.00 9.07 9.04 8.98 8.95 8.93 8.92 8.91 8.91



1.99 2.04 2.04 2.12 2.14 2.15 2.15 2.15 2.15 2.16 2.16





(% of total)37.7 36.1 40.9 39.9 39.3 39.0 38.6 38.2 37.8 37.5 37.2


26.7 27.4 27.4 27.8 28.2 28.5 28.7 29.0 29.2 29.5 29.7


5.37 5.01 4.39 4.51 4.55 4.59 4.66 4.68 4.72 4.76 4.80


6.03 6.17 6.17 6.31 6.39 6.44 6.44 6.45 6.46 6.48 6.50


Summary P&L for Unilever Group continued

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018


(% of total)11.0 10.3 9.00 9.07 9.04 8.98 8.95 8.93 8.92 8.91 8.91



1.99 2.04 2.04 2.12 2.14 2.15 2.15 2.15 2.15 2.16 2.16



Indirect Expenses (Bil $) 3.76 0.60 3.13 4.69 4.21 4.42 4.58 4.74 4.90 5.06 5.20


(% of total)37.1 35.3 33.9 33.8 33.7 33.6 33.5 33.5 33.4 33.4 33.4


22.9 24.2 25.4 25.6 25.7 25.9 26.0 26.2 26.4 26.5 26.6


0.81 0.78 0.72 0.73 0.74 0.75 0.76 0.77 0.77 0.78 0.79


5.16 5.47 5.72 5.79 5.82 5.85 5.84 5.83 5.82 5.83 5.83


(% of total)13.5 13.9 13.9 13.7 13.7 13.5 13.4 13.3 13.2 13.1 13.0



1.70 1.81 1.89 1.94 1.95 1.95 1.95 1.94 1.94 1.94 1.94





(% of total)n/a n/a n/a n/a 43.7 43.1 42.4 41.7 41.1 40.5 39.8


n/a n/a n/a n/a 30.1 30.5 30.8 31.1 31.4 31.6 31.9


n/a n/a n/a n/a 7.43 7.54 7.60 7.60 7.61 7.64 7.65


n/a n/a n/a n/a 6.81 6.89 6.90 6.91 6.93 6.95 6.97


(% of total)n/a n/a n/a n/a 5.54 5.48 5.58 5.67 5.77 5.87 5.98

Omo & Surf Fabric Care (% of total) n/a n/a n/a n/a 3.05 3.11 3.27 3.44 3.60 3.76 3.93


n/a n/a n/a n/a 2.29 2.30 2.30 2.30 2.31 2.31 2.32


Cleaning (% of total)n/a n/a n/a n/a 1.10 1.13 1.20 1.26 1.33 1.39 1.45


Detailed P&L for the Becel, BlueBand, Knorr,Hellmann's business The most important drivers for the Becel, BlueBand, Knorr, Hellmann's business are discussed above, here is the detailed

P&L.

Becel, BlueBand, Knorr, Hellmann's: Detailed P&L

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenues

Becel, Blue Band,Knorr, Hellmann's

& Other Foods Revenues (Bil $)20.9 18.4 18.7 19.5 20.3 21.0 21.8 22.7 23.6 24.4 25.3


Grocery (%)57.4 48.9 48.1 48.6 48.8 49.1 49.3 49.6 49.8 50.0 50.2

Global Market Size of Grocery ($Bil)

36.4 37.6 38.9 40.2 41.5 42.9 44.3 45.8 47.3 48.9 50.5


Expenses


EBITDA Margin of Becel,

Blueband, Knorr, Hellmann's (%)15.3 16.0 19.8 19.1 19.0 18.9 18.8 18.7 18.6 18.5 18.4


Capex as % of Revenues (%) 1.94 2.14 2.07 2.04 2.00 2.00 2.00 2.00 2.00 2.00 2.00

Effective Tax Rate (%) 40.2 30.2 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5 28.5

Increase in Operating Working

Capital as % of Revenues (%)-0.36 -3.65 -0.23 2.70 1.30 1.25 1.20 1.15 1.10 1.05 1.00

Increase in Net Other

LT(Operating) Assets % of Revenues0.34 -1.01 0.07 -0.35 -0.10 0.00 0.00 0.00 0.00 0.00 0.00

Total Expenses (Bil $) 19.1 15.7 16.0 17.4 17.8 18.6 19.3 20.0 20.8 21.6 22.4




Detailed P&L for the Dove, Lux Skin & HairCare business The most important drivers for the Dove, Lux Skin & Hair Care business are discussed above, here is the detailed P&L.

Dove, Lux Skin & Hair Care: Detailed P&L

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenues

Skin Care Revenues (Bil $) 9.70 9.55 10.5 11.1 11.6 12.1 12.6 13.2 13.7 14.3 14.9

Global Skin Care Market Size ($Bil)

35.2 36.8 38.1 39.4 40.7 42.1 43.5 45.0 46.5 48.1 49.7

Unilever's Skin Care Market

Share (%)27.5 25.9 27.7 28.2 28.5 28.7 29.0 29.2 29.5 29.7 30.0

Shampoos & Conditioner Revenues

(Bil $)3.15 3.10 3.42 3.65 3.88 4.11 4.36 4.62 4.85 5.07 5.29

Global Hair Care Market Size ($Bil)

32.5 33.1 34.3 35.5 36.8 38.1 39.5 40.9 42.4 43.9 45.5

Unilever's Hair Care Market

Share (%)9.70 9.37 9.99 10.3 10.5 10.8 11.0 11.3 11.4 11.5 11.6


Expenses


EBITDA Margin of Dove, Lux

Skin & Hair Care (%)17.6 17.6 17.7 17.6 17.8 17.9 18.0 18.1 18.2 18.3 18.4












Detailed P&L for the Lipton Beverages &Slim-fast business The most important drivers for the Lipton Beverages & Slim-fast business are discussed above, here is the detailed P&L.

Lipton Beverages & Slim-fast: Detailed P&L

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenues

Slimfast & Other Nutrion Foods

Revenues (Mil $)206 196 207 221 237 253 269 279 301 326 352


Weight Management Food &

Beverages (%)0.17 0.15 0.15 0.14 0.14 0.13 0.13 0.12 0.12 0.12 0.12

Global Market Size of Weight

Management Food and Beverages

($ Bil)120 129 142 157 174 193 214 231 250 270 292

Lipton & Other Beverages

Revenues (Bil $)3.50 3.33 3.51 3.72 3.90 4.08 4.28 4.44 4.62 4.79 4.98

Unilever's Market Share of Tea

Beverages (%)11.5 10.7 11.0 11.3 11.5 11.7 11.9 12.0 12.1 12.2 12.3

Global Market Size of Tea

Beverages ($ Bil)30.3 31.0 32.0 32.9 33.9 34.9 36.0 37.1 38.2 39.3 40.5


Expenses


EBITDA Margin of Lipton

Beverages & Slim-fast (%)12.3 11.6 10.7 10.7 10.7 10.8 10.9 11.0 11.1 11.2 11.3

Indirect Expenses (Mil $) 30.4 4.71 22.6 34.2 31.1 33.0 34.8 36.3 37.9 39.6 41.2











Detailed P&L for the Axe & RexonaDeodorants business The most important drivers for the Axe & Rexona Deodorants business are discussed above, here is the detailed P&L.

Axe & Rexona Deodorants: Detailed P&L

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenues

Axe,Rexona Deodorants Revenues

(Bil $)2.90 2.85 3.15 3.35 3.50 3.66 3.81 3.95 4.10 4.26 4.42



(%)31.6 30.2 32.3 33.3 33.8 34.3 34.6 34.8 35.1 35.3 35.6

Global Market Size of


($ Bil)9.18 9.45 9.74 10.0 10.4 10.7 11.0 11.3 11.7 12.1 12.4


Expenses


EBITDA Margin of Axe &

Rexona (%)17.6 17.6 17.7 17.6 17.8 17.9 18.0 18.1 18.2 18.3 18.4

Indirect Expenses (Mil $) 194 32.9 179 271 245 258 267 276 285 294 303











Detailed P&L for the Wall's, Algida & OtherIcecreams business The most important drivers for the Wall's, Algida & Other Icecreams business are discussed above, here is the detailed

P&L.

Wall's, Algida & Other Icecreams: Detailed P&L

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenues

Wall's, Agida & Other Ice Cream

Revenues (Bil $)7.59 7.23 7.63 7.93 8.22 8.48 8.75 9.02 9.30 9.59 9.88

Unilever's Market Share of Ice

Creams (%)16.9 15.6 16.1 16.3 16.5 16.6 16.7 16.8 16.9 17.0 17.1

Global Market Size of Ice Creams

($ Bil)44.9 46.3 47.4 48.6 49.9 51.1 52.4 53.7 55.0 56.4 57.8


Expenses


EBITDA Margin of Wall's,

Algida & Other IceCreams (%)12.3 11.6 10.7 10.7 10.7 10.8 10.9 11.0 11.1 11.2 11.3












Detailed P&L for the Omo & Surf Fabric Carebusiness The most important drivers for the Omo & Surf Fabric Care business are discussed above, here is the detailed P&L.

Omo & Surf Fabric Care: Detailed P&L

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenues

Omo, Surf Fabric Care Revenues

(Bil $)7.89 7.21 7.60 7.96 8.27 8.59 8.92 9.26 9.61 9.95 10.3

Unilever's Fabric Care Market

Share (%)17.6 15.6 16.0 16.3 16.4 16.6 16.7 16.9 17.0 17.1 17.2

Global Market Size of Fabric

Care ($ Bil)44.9 46.2 47.6 49.0 50.4 51.8 53.3 54.9 56.5 58.1 59.8


Expenses


EBITDA Margin of Omo & Surf

Fabric Care (%)8.94 10.9 9.02 8.91 9.05 9.15 9.25 9.35 9.45 9.55 9.65












Detailed P&L for the Signal & Closeup OralCare business The most important drivers for the Signal & Closeup Oral Care business are discussed above, here is the detailed P&L.

Signal & Closeup Oral Care: Detailed P&L

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenues

Signal & Closeup Oral Care

Revenues (Bil $)0.96 0.94 1.04 1.12 1.18 1.22 1.27 1.32 1.37 1.42 1.47

Unilever's Oral Care Market

Share (%)5.48 5.24 5.66 5.96 6.11 6.21 6.31 6.41 6.51 6.61 6.71

Global Market Size of Oral Care

($ Bil)17.5 18.0 18.4 18.8 19.2 19.7 20.1 20.5 21.0 21.5 21.9


Expenses


EBITDA Margin of Signal &

Closeup Oral Care (%)17.6 17.6 17.7 17.6 17.8 17.9 18.0 18.1 18.2 18.3 18.4

Indirect Expenses (Mil $) 64.1 10.9 59.3 91.1 82.3 86.3 89.1 92.0 95.0 98.1 100











Detailed P&L for the Cif, Domestos &Sunlight Home Cleaning business The most important drivers for the Cif, Domestos & Sunlight Home Cleaning business are discussed above, here is the

detailed P&L.

Cif, Domestos & Sunlight Home Cleaning: Detailed P&L

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revenues

Cif, Domestos & Sunlight

Household Care Revenues (Bil $)2.70 2.46 2.59 2.71 2.84 2.97 3.11 3.25 3.40 3.53 3.67

Unilever's Surface Care,Dish Care

and Air Care Market Share (%)8.11 7.12 7.22 7.27 7.32 7.37 7.42 7.47 7.52 7.52 7.52

Global Market Size of Surface

Care,Dish Care and Air Care ($Bil)

33.2 34.6 35.9 37.4 38.8 40.3 41.9 43.5 45.2 47.0 48.8


Expenses


EBITDA Margin of Cif,

Domestos & Sunlight Home

Cleaning (%)8.94 10.9 9.02 9.02 9.16 9.26 9.36 9.46 9.56 9.66 9.76










Free Cash Flow (Mil $) n/a n/a n/a n/a 61.3 65.2 72.4 80.2 88.6 96.9 106


Unilever Group 2012-05-21

Documents

global economy recovers

free cash flow

restructuring efforts initiated

ongoing restructuring efforts

rising disposable incomes

effective tax rate

eliminating excess sodium

manage blood pressure