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Slide 1 - Unilever LA
• Good Morning
• I have been asked to give you a brief overview of Unilever in
Latin America, in my former capacity as Business Group
President for HPC Latin America
• So much to say, so little time to say it

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Certain of the comments and materials in this presentation may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based upon current expectations and assumptions regarding anticipated
developments and other factors affecting the Company. Actual results may differ materially
from those included in these statements due to a variety of factors including, among others,
those described in the company’s filings with the Securities and Exchange Commission and
in the transcript of this presentation, which will be accessible via our website at
www.unilever.com.

All numbers in the presentation are in Euros translated at average 2003 exchange rates with
the exception of balance sheet, cash flow and dividend numbers which are expressed at year
end rates.
Operating margins and earnings are all before exceptional items and goodwill amortisation,
as this is the best measure to judge our underlying performance as we implement our Path to
Growth strategy. Reconciliations between these measures and the equivalent GAAP
measures are available on our website: www.unilever.com

Slide 2 - Safe Harbour Statement

Before doing so, please may I draw your attention to the usual formal
disclosure as to forward looking statements within the meaning of
relevant U.S. legislation
I will not read it out, but propose that we take it as read into the
record for the purposes of this presentation and discussion.

I may also refer to some non US GAAP measure during the course of
my presentation and discussion which are Unilever considers to be
appropriate for judging our underlying performance. Further details
on these measures are to be found on our website.

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Slide 3 - Our History in Latin America

• With enormous foresight that our founders took us into Latin America at
an early stage in our history.
• Since then, through wars, political & economic crisis, Unilever has
remained committed.
• As a result, our Latam business is now a true powerhouse within Unilever
portfolio.
• And ranks amongst the most admired companies in LA...

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Slide 4: Unilever Reputation in LA

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Slide 5 - Unilever Latin America - Turnover as a % of Total Unilever

• As of 2003, Latin America accounts for 10% of UL’s € 43bn sales,
and a similar proportion of its operating profit.
• Although South LA has traditionally been Unilever’s bastion, our
business has lately been transformed in Mexico and other parts of
North LA through both acquisitions and strong organic growth.

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Slide 6: Turnover split by category

• Acquisitions and organic growth have also transformed the category

profile of our business.
• From a predominantly South LA Laundry business in the mid 90’s,
the portfolio has been transformed, establishing leading positions in
PC and Foods in North and South LA.

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Slide 7: HPC competitive position

•Undisputed leader in F.Cleaning in South LA, with Brands like Omo,

Skip, Ala.
•Omo is the most recognised brand in Brazil, ahead of Coca-Cola.
• Leadership positions extend to Personal Care, having been strong in
Skin Cleansing with brands like Lux, and more recently Dove.
Sunsilk has grown to become the leading hair brand in Brazil,
Argentina, Colombia, Venezuela and Ecuador, and has established a
leading presence in Mexico.
• Meanwhile deodorants go from strength to strength with brands like
Axe, Rexona and Dove

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Slide 8: HPC Innovation

Unilever LA is also an important source of innovation for the rest of Unilever.

Examples include:

Dove innovation ex Argentina

Lux relaunch, now being rolled out elsewhere eg Asia

OMO technology and advertising approach from Brazil (Dirt is Good)

Sunsilk 'hair dramas' mix also from Brazil

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Slide 9 - Unilever Latin America - Competitive Position in Foods

• Our Foods business has also been strengthened dramatically over the
past few years.
• In the late 90’s our business was largely based on spreads, cooking
products and tomato products, with brands such as Cica, Iberia and
Doriana.
• A series of acquisitions in the late 90’s saw us establish leadership in
some of the most important Ice Cream markets in Latin America,
notably Brazil with Kibon and Mexico with Holanda.
• Our business was then transformed by the acquisition of Bestfoods,
which strengthened our geographical reach, as well as bringing
leading positions in new categories such as bouillon, soup and
mayonnaise.

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Slide 10: Foods Innovation

•As importantly, Bestfoods has given us a portfolio of new brands that

are of enormous relevance to LA consumers, across a wide range of
income groups eg Knorr, Maizena and Ades.

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Slide 11 - Business Performance

• Our powerful competitive position has been translated into outstanding business
performance, that has been a major contribution to Unilever’s top third TSR
ambition.
• Leading brand growth has averaged 12 % p.a over the past 4 years and has
continued at a similar rate in 2004. In low inflationary markets such as Mexico,
Andina this has been largely volume driven. In economies that have suffered from
devaluation eg Brazil, Argentina we are seeing the expected shift from price
growth to volume growth. During this period, we have seen market shares in most
major categories maintained or increased.
• At the same time, the efficiency of the business have been improved
dramatically driven by:
• regional sourcing
• restructuring
• participation in global procurement
• brand focus
• and more recently SAP & shared services
• From 2000 to 2003 operating margin has increased by over 400 bps, including a
+150 bps increase in A&P spend. Capital employed in the business expressed as
% of sales has reduced by over 50 %.

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Slide 12

• So what are the key drivers of Unilever success in LA? Focus

on 5 factors:
• single minded execution of Unilever’s Path-to-Growth
strategy.
• Expertise in managing through economic crisis, weather the
storm in Brazil and Argentina.
• Prioritisation of growth in Leading Brands in new markets,
exploiting proven mixes and acquired business…
• A deep understanding of the LA consumer extending beyond
the urban white middle classes that are the natural target of
most of the international FMCG players.
• Unilever’s corporate reputation in LA and its access to high
quality local management talent.

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Slide 14: Path to Growth

• Impact of PtG seen in the focus delivered in the brand portfolio.
• We now have a potent mix of global brands (Knorr, Omo, Sunsilk,
Dove…) and local jewels (Arisco, Vivere, Le Sancy) which spread
across relevant price points.
• Example of impact in Brazil published by the ‘Folha de Sao Paulo’
newspaper:
OMO was the number 1 in the General ranking, ahead of Coca-Cola,
Gillete etc), And by category, Lux was #1 soaps, Rexona #1 in
Deodorants, and OMO #1 in Powders).
• At the same time PtG delivered a step change in our supply chain
capability & cost efficiency:

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Slide 16: Argentina crisis management
• The extent of the crisis in Argentina was unprecedented.
• Nevertheless, we were able to implement a strategy based on years of
experience:
• SHAPE: safeguard healthy margins and protect cash flow
• SHARE: defend SOM of leading brands and categories
• SPIRIT: care for people
• We emerged with leading market positions intact, strong margin
improvement, and resumed volume growth from 2nd half 2003.
• Market shares ahead 03/02 in most major categories, including
F.Cleaning, Hair, Deos, Skin Cleansing and in Foods: Soups, Bouillons
and Mayonnaise
• And…..corporate reputation stronger than ever

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Slide 18: Market shares

•Already referred to extent to which our business has been
strengthened in North LA.
• Acquisitions have played an important role in this. E.g.:
- Bestfoods across sub-region
- Holanda ice-cream in Mexico
- Smaller acquisitions in Ecuador, CAM, Caribbean
• But organic growth has also been a major driver. For example, our
PC business in Mexico has delivered sales growth averaging 21%
p.a. over the past 4 years, and has established leading brand positions
across 4 categories: face care, deodorants, hair and skin cleansing.
• This success is being repeated in Colombia and other parts of the
Andina region, ie the model works!

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Slide 20: Reaching new consumers

•And finally new consumers
• Nearly 60% of the 0.5 bn + population are neither rich enough to
afford first world lifestyle, nor so poor as to fall outside the scope of
our consumer base.
• 2/3 of the population are not of European descent, being either
african-american, or amerindian/mestizo.
• Our brands have shown their mettle in reaching out to these new
consumers, though products that are relevant, affordable and available
to these populations.
• No doubt, I will have the opportunity to explore these issues further
in our discussions, but for now…

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