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Unilever Asia Hair CareA Regionalized Global Strategy that drives & outpaces Market Growth & builds Margins

Michel Dallemagne

SVP Hair Asia Africa14th November 2007

Mumbai

This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995.  Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results, including financial objectives to 2010, and their negatives are intended to identify such forward-looking 

statements.  These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group.  They are not historical facts, nor are they guarantees of future performance.  Because these forward-looking statements involve risks and uncertainties, there are important 

factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to 

integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters 

within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and 

new or changed priorities of the Boards.   Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, 

including the Annual Report & Accounts on Form 20-F.  These forward-looking statements speak only as of the date of this presentation

Safe harbour statement

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Agenda

Our goals for 2007-10

A unique in-depth knowledge of Asian consumer needs

The booming Hair Care market

Hair care Asia experiences its best growth performance, outpacing organic market growth

Our growth is driven by three key thrusts

Future challenges

Summary

We will continue to deploy a globally aligned 3-4 brand portfolio able to deliver:

Our goals for 2007-2010 is superior sustained performance

- Double digit turnover growth

- Market share gains

- Continuous margin improvement through better product mixand positive strategic pricing

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More centralised portfolio and brand management, to reduce risk and

accelerate roll outs

Sharper investment choices

Full brand portfolio deployment, with regional adjustments

Focus on innovation as THE key growth driver

• Better products through deployment of best-in-class technology

• A shift to more premium offerings, less reliance on price discounts

Key enablers

A unique in-depth knowledge of Asian consumer needs forms the base of superior sustained category performance

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A deep knowledge of very diverse habits

ChinaIndia Philippines Japan

Wash Water

Preferred packs

Styling days

Conditioner usage days

Shampoo usage days

Pre wash habitOiling

Sachets

Buckets

Bottles BottlesSachets

Tubs Buckets Shower

Ethnicity defines hair fibre condition and quality

ChinaIndia Japan

Length

Color

Texture

Shape

Diameter

Long

darker

Medium

Round/ Elliptical

High

Very long

dark

Soft

Elliptical

Medium

Medium short

Very dark

Coarse

Round

Highest

D > 70 microns D > 80 microns D > 90 microns

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Factors that influence the scalp condition

Lipids (mortar)Corneocytes (bricks)

Environment, diet, play a significant role

LowerHigherMeasure of lipids

Low in dandruff

UniformCeramides

LowerHigherScalp biomarkers

Positive for dandruff

HighHistamine response

DryGreasyType of dandruff

LowerHigherSebum

UK Chinese

ChinaParameter

A diversity in top consumer hair needs

245Shine

514Dandruff

353Longer/ Strong

132Damage

421Hair Fall

JapanChinaIndia

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Sharply tailoring leading technology building blocks

… through Surface + Fibre technology

+HABITS

HAIR NEEDS

FIBRE & SCALP BIOLOGY

Tailoring

Technology

e.g. Damage

Damage IntensityLu

bri

cati

on

an

dR

esto

rati

ves

India

China

Japan

The Hair Care market is booming

“Hair is like my handbag” – Consumer Quote

- Hair care is an integral part of the Asian ‘beauty care’ offering & fashion explosion

- 4 billion population, with increasing income, extended lifespan and with a

dominant proportion of long hair

(Video)

This fuels an ‘explosion’ of more sophisticated & premium beauty

Hair Care regime & rituals, continuously growing the market

- Shampoo penetration in on a steady increase in China, India & Indonesia

- Additionally, the usership of post-shampoo ranges is fast-increasing across Asia

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In Hair, the bulk of our growth will come from mass retail Wash & Care – our focus area

Colorants

MASS RETAIL

Daily Hair Care

Wash & Care€20bn

Styling

€ 4.2bn

2004

€ 5.0bn€ 6.4bn

2007 est. 2012est.

Salons

Global Hair Market

Asia W&C growing

Unilever market share     15% 

Hair Asia - A 5 billion euro market with consistent growth across key regions

2007 2012€1.5 B €2.0 B

Asia Hair market projected to add €1.4bn by 2012. China and SA will lead this growth

+7%2007 2012

€2.1 B €2.2 B

2007 2012€1.0 B €1.3 B

+1%

+5%

2007 2012€0.5 B €0.9 B

+12%G. China

SA

SEA

NEA

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Hair care Asia experiences its best growth performance,outpacing organic market growth

1) Growing double digit ahead of market & growing shares

2) Getting stronger where we lead historically, and leading the innovation initiative in China

Hair care Asia experiences its best growth performance,Outpacing Organic Market Growth

Unilever Hair Asia growing ahead of market growth

Sunsilk, Lux and Clear, our 3 biggest brands drive turnover growthMost other brands also contribute

Growth is driven by China, SA and SEA clusters

Sep '07 Cum growth UL topline Market

NEA cluster Low single digit (decline) Low single digitChina group Double digit + Double digit

SEA & SA cluster Double digit Mid single digit

Asia Double digit Mid single digit

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Hair care Asia experiences its best growth performanceImproving margins

Hair is amongst the most profitable categories for Unilever Asia

The topline drive is coupled with improvement to gross margins

A combination of premium and innovative mixes, right strategic

pricing and cost effectiveness have further improved gross margins

Up 80 bps

Up 110 bps

Gross Margin improvement

Avg 05 Avg 06 YTD 07

Our Growth is driven by 3 Key Thrusts

1) A more complete 3-4 brand portfolio of globally aligned, bigger brands, in each country

2) That fully taps the full Market Pyramid Potential by meeting:

- Key consumer segment needs

- Key market pricing points (from low LSM to High LSM)

- Key country ‘stage of development’ opportunities

3) Supported by leading technology and fewer, bolder initiatives

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A LARGE, FEMALE, BEAUTY CORNERSTONE BRAND

A FAMILY VALUE & HEALTH FOUNDATION BRAND

A more complete 3-4 brand portfolio of globally aligned, bigger brands in each country

A DUAL GENDER AD EXPERT A PREMIUM CARE & DAMAGE REPAIR EXPERT

Rural

Urban

/Rural

Urban

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Win the beauty game with superior ‘7days damage repair’

Red status

C:/Events Matrix/Events Matrix SEA SA/SEA AP’08 Meeting, Jul ‘07.

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A Brand Portfolio that fully taps the full market pyramid potential

Key country ‘stage of development’ opportunities

JAPAN

Shampoo + Conditioner + Rinse Off TMT + Leave On TMT

CHINA

CHINA

Shampoo + Conditioner +

Mask + Leave On

INDOINDIA

Shampoo + Conditioner

INDONESIA

Shampoo + Conditioner + Mask

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Supported by leading technology and fewer, bolder initiatives

Lux Hair China Lux Hair Japan

Dove Hair India Clear Philippines

Our Key Challenges

Exploiting a rapidly expanding urban market (Dove Hair)

whilst driving penetration & consumption in rural areas (Clinic),

in a market growing by15%p.a.

India

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Shampoo penetration Indexed Consumption

82

78

76

68

Affluent

Aspirers

Urban Striving

Rural

170

120

80

50

There are many Indias - each with huge growth opportunities

JOBS TO BE DONE

ROUTESROUTES

Affluent

Aspirers

Urban Striving

Rural

Premium SHAMPOO & POST-SHAMPOOFormats

URBAN UPTRADING

PENETRATION and FREQUENCY OF WASH

Customized strategies for each India

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Our Key Challenges

Growing market share, lead by Lux Hair, to create superior value &

provide valuable innovation learning’s for other markets in Asia

Japan

G CHINA

€ 1.5bnMAT : 7%

SEAA€1.0 bn

MAT : 5%

NEA€2.1bn

MAT : 1%

SA€ 0.5 bn

MAT : 12%

Japan is the biggest Hair Market in Asia(2nd biggest in the world behind USA)

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Was

h F

req

uen

cy

H. ConShampooWash

54 76321In a week

Evening, before bed time

93 %With body wash

Use hair dryer

66 %

60% use Styling products (Mousse, Wax, Spray)

70% coloured hair in last year

Wh

enB

od

yD

ryin

gPo

st W

ash

Co

lou

rin

g

79 %

76%

44 %

72 %

93 %

Japanese Bathroom

93%

60%

Japanese woman’s hair regime…the most sophisticated in the world

• 365 washes

• 35 hours under the blow-drier

• 55 styling irons sessions

• 6 razor cuts

• 5 straightening perms

• 8 colour treatments

• 1,000 hours in air-con environment

Severely Damaged Hair

Combing

Blow dryer

Brushing

Bleach / Colouring (70 %)Perm (33%)

Styling Iron

Virgin hair

A vicious cycle of damage

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Lux Hair architecture fully leverages the key drivers of the market

Daily Damage CareEnhance Shine

Severe Damage CareRestore Shine

Sustaining a strong leadership vs. persistent aggressive attacks

“…there are many new seductive offers that come up...but in the end we always go back to Lux.” (consumer blog entry)

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2

4

6

8

10

12

14

16

7 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 10 12 2 4 6 8 w42 w44Local A Global C Local T Local I Local S Global C Global H

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Lux stays ahead with exciting innovations

Our Key Challenges

A challenger mindset with the launch of a new Clear Anti-Dandruff mix

China

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G CHINA €1.5bn

MAT : 7%

SEAA€1.0bn

MAT : 5%

NEA€ 2.1bn

MAT : 1%

SA€ 0.5bn

MAT : 12%

By 2010, the China hair market will be as big as Japan

The AD segment is biggest in China – nearly a 1 Billion Euro opportunity

55% 4%

22%

35%

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A bold challenge with the launch of CLEAR

Growing steadily in top accounts

RMBweekly moving upto 30th Sep

100

150

200

250

300

350

400

450

500

550

600

650

700

12/Mar19/Mar

26/Mar2/Apr

9/Apr16/Apr

23/Apr30/Apr

7/May14/May

21/May28/May

4/Jun11/Jun

18/Jun25/Jun

2/Jul9/Jul

16/Jul23/Jul

30/Jul6/Aug

13/Aug20/Aug

27/Aug3/Sep

10/Sep17/Sep

24/Sep

weekly moving upto 30th Sep

5%Share in Handlers

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In Summary

Hair is an attractive business, leading value creation for UL Asia

Unilever is a strong global player with a growth track record

Clear and Lux expansion are examples of what’s different now

Full 3-4 brand portfolio deployment

Strategic pricing –full market piano

Bolder innovation

Better products. More premium propositions.

Supported by best available technology.

Faster roll outs

Unilever Asia Hair CareA Regionalized Global Strategy that drives & outpaces Market Growth & builds Margins