Unilever Roadshow

Q2 & First Half 2003

Path to Growth progress

Driving the levers of value creation

SAFE HARBOUR STATEMENT: This presentation may contain forward-looking statements (within the meaning of the U.S. Private Securities
Litigation Reform Act 1995) based on our best current information and what we believe to be reasonable assumptions about anticipated
developments. Words such as "expects", "anticipates", "intends" and other similar expressions are intended to identify such forward looking-
statements. Because of the risks and uncertainties that always exist in any operating environment or business we cannot give any assurance that
the expectations reflected in these statements will prove correct. Actual results and developments may differ materially depending upon, among
other factors, currency values, competitive pricing, consumption levels, costs, environmental risks, physical risks, risks related to the integration of
acquisitions, legislative, fiscal and regulatory developments and political and social conditions in the economies and environments where Unilever
operates. Further details of these potential risks and uncertainties are given in the Unilever Annual Report and Accounts and Form 20-F. You are
cautioned not to place undue reliance on these forward-looking statements.

Core Strategy: Sustained Performance 1985 - 1999

Levers of value creation

EPS growth of
Top line 3.5-4% c.9% p.a.
Operating margin up from 6 to
11%
FCF raised to
Capital efficiency: operating assets approaching
down by 600 bps €3bn
Cost of capital: improved by 50 bps

Total Shareholder Return

1st

7th

14th

21st
91 92 93 94 95 96 97 98 99 '00 Q1

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Path to Growth: Levers of Value Creation

Levers of Value
Path to Growth
Creation

Portfolio
improvement Top line 5-6%

Focus on leading Free

Top
brands Operating margin Cash
16+% 1/3
Simplification Flow
TSR
Capital efficiency Growth
World Class Supply 600 bps down
Chain
Cost of capital
Enterprise Culture
competitive

Highlights of first half 2003

◆ Leading brands grew by 3.1% : HPC 4.8%, Foods 1.7%

Now 90%+ of total business
◆ Planned growth held back by 200bps : Slim.Fast ; Trade
destocking; Prestige and OOH Channels
◆ Operating margins ahead by 20bps, A&P +120bps
◆ EBITDA interest cover 8.5, Net Debt (at closing rates)
reduced to €16.1 billion
◆ EPS (beia) +3.6% (constant rates)

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Outlook for 2003

◆ Leading brands growth some 4%

◆ Leading brands to rise to 90%+ of total
portfolio
◆ EPS (beia) growth - low double digits
◆ Planned restructuring exceptionals €500 million

Drivers for second half growth leading brands

◆ Leading brands growth at 3% in H1 and 5% in H2

◆ A number of impacts in H1 are not expected to continue
● We believe we are at the end of the sharp reductions in
inventories (90bps on H1 growth)
● Slim.Fast recovery through innovation and the resolution of
trade terms (70bps on H1 growth)
● Recovery in Foodservice continues (20 bps on H1 growth)
● One extra trading day in H2 vs. last year (100bps on H1
growth)
◆ These factors represent approaching 300bps on H1 3%
growth, leaving us with ‘degrees of freedom’ to hit the 5%
◆ Innovation for the year: HPC at last years levels; Step up in
Foods

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Personal Care Innovation 2003

LATAM Europe Europe

Axe Anti-Perspirant Rexona Crystal Sunsilk

Japan
Lux Spa North America
Moist Soap Suave
liquid & bar

Personal Care Innovation 2003 - Dove

LATAM NA Europe, NA, LATAM

Dove Deodorant Facial care products Exfoliating Bar

Europe NA
‘Supreme Silk’ liquids & body Hair Care

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Home Care Innovation 2003

Aloe Vera Fragrance - liquid, tablets, liquid gel Snuggle new variants

Cif & Domestos New variants & markets New variants

Foods Innovation 2003

Brooke Bond
Relaunch India

“Dippin’ Sauces
NA

Frozen Steam Fresh Vegetables

Europe
Salad Dressing Mealkits - Europe

Knorr cooking aids

innovation
across the world
Ice Tea
eg Syria, Ecuador,
Cool Peach flavour
Magnum “Seven Sins” China
Japan
Europe

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Slim••fast Innovation 2003

Ready to
Drink Soy
Vanilla &
Chocolate

Deliciously Layered Nutritional Meal

Bars

SlimŸFast Succeed
Zero-Sugar Carb Snack Bars
Hot Meal Options
Great Tasting and Nutritional
3 Soup & 3 Pasta Recipes

Drivers of second half EPS growth

Drivers of EPS growth in the second half

◆ Restructuring savings €100m+ per quarter
◆ Improved mix
◆ Recovery of devaluation driven cost increases
◆ Global procurement savings - ahead of plan

Phasing differences compared to first half

◆ Operating margin impacted by short term loss of profit
contribution from one-off sales impacts and accounting
impact of “go to market”. Combined impact 90bps
◆ A&P more back end loaded in 2002
◆ Reduced impact from disposals

6
Path to Growth Scorecard Q2 2003 (MAT)
Progress on all Levers of Value Creation

Top Third TSR

Top Line Growth
Leading Brands from
75% to 90%+

HPC Foods
Operating Capital Cost of Growth Growth
Margin Efficiency Capital
Target Improved
+350 bps +840 bps Competitive range underlying
for 3 years portfolio

EPS (beia) - Low Double Digit

2000 - 10.5%* ; 2001 - 12% and 2002 - 21%

*On a basis consistent with our outlook statement on 22 February 2000

Levers of Value Creation: Top Line:

Improving the portfolio

◆ Acquired more powerful brands; Disposed of 99

businesses for €6.8bn
◆ Momentum growth rate up by 100bps from 3 to 4%
◆ Growth in nineties 3.5 - 4% - improved portfolio
raises this to 4.5 - 5%
◆ Further benefit to come from tail reduction
◆ Leading brands: 75% (1999)
90%+ (now)
95%+ (2004)

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Progress of Leading Brands

Leading Brands Growth %

00 01 02 02 02 02 02 03 03 03
FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 H1

HPC 5.3 6.5 3.5 6.5 6.5 9.8 6.7 6.8 3.0 4.8

Foods 1.9 4.1 2.6 2.8 4.6 7.3 4.4 0.0 3.3 1.7

TOTAL 3.8 5.3 3.0 4.4 5.4 8.5 5.4 3.0 3.2 3.1

Levers of Value Creation: Top Line:

Home & Personal Care

1st Half
Leading brands growth % 2000 2001 2002
2003

Personal Care 7.5 9.0 10.8 8.6

(excl. Prestige)

Prestige 2.8 (7.2) 1.3 (8.0)

Total Personal Care 7.0 7.6 10.1 7.6

Laundry 3.2 5.3 1.9 1.3

Household Care 2.0 7.1 2.6 (3.6)

Total HPC 5.3 6.5 6.7 4.8

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Foundations for Sustained, Profitable Growth:
Levers of Value Creation: Personal Care

USG FY 2002 First Half 03 Comment

Personal Care 9% 7% 7% p.a. last 4 years
Hair, Skin, Deo 11% 9% 9% p.a. last 4 years

Strong brands - consistent investment - creating value

Strong innovation plan supporting performance rest of year

double-digit growth driven by existing markets

rollout of Sunsilk
double-digit growth driven by existing markets

double-digit growth driven by personal wash

double-digit now €2.4bn annualised. In 2002:

Dove bar Europe: +14%
Dove bar USA: + 6%

Levers of Value Creation: Home Care Strategy

Focus on CIF & Domestos

Household Care
First Half performance not satisfactory
15% of Portfolio
Second Half strong innovation programme

Historic growth rate 4%+

Laundry Operating margin static over last 6 years

85% of Portfolio Strategy: ‘earn the right to grow’

◆ Operating margin +500bps
◆ Operating Assets down by 10 percentage
points

9
Levers of Value Creation: Laundry: Progress

2003 Target
(Q2 MAT) End 2004

Increase Operating Margin >250bps 500bps

Reduce Operating Assets

>550bps 10%
% of Sales

➣ Closed 16 factories
➣ Exited 4 countries
➣ Reduced raw material specifications from 115 to 23

Levers of Value Creation: Top Line:

Foods

1st Half
Leading brands growth% 2000 2001 2002
2003

Savoury & Dressings 6.0 4.2 5.1 3.4

Tea based beverages 4.5 3.3 3.3 4.9

Spreads & Cooking (1.5) 5.5 4.3 (0.4)

Health & Wellness 17.0 25.4 9.1 (14.5)

Ice Cream 1.2 2.9 4.0 4.0

Frozen 3.0 0.3 0.9 (0.2)

Total Foods 1.9 4.1 4.4 1.7

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Levers of Value Creation: Top Line: Summary

Bps Impact of
1st Half 2003
LB growth rate

Laundry focus on profitability 40

Pause
in Slim.Fast 70
Growth
Spreads Family Brands 20

Frozen Foods 20

Restore
Growth
Household Care 20

Prestige 20

Executing the Restructuring and Integration

Q2 MAT
1999 2003
Operating Margin % (beia) 11.1 14.6

Procurement €1.6bn achieved ✔

Bestfoods synergy €0.8bn achieved ✔
Restructuring €1.0bn €0.5bn to go

Restructuring charge €6.2bn 95% authorised

€5.2bn charged

99 Businesses sold, €6.8 billion sale proceeds

11
Levers of Value Creation: Capital Efficiency

% Sales 1999 Q2 2003 MAT

Fixed Assets 21.4 16.7

Working Capital 7.6 3.9

Total Operating Assets 29.0 20.6

Factory restructuring

Global procurement
More to go
Continuous replenishment

Outsourcing up from 15% to 25%+

Levers of Value Creation:

Capital Efficiency & Operating Margin

Operating Margin F. Assets + W. Capital

beia % (MAT) as % of Sales

16 40
38
Operating Margin (beia) %
14 36
34
12 32
30
10 28
26
8 F. Assets + W. Capital as % of Sales 24
22
6 20
Q4'95

Q4'96

Q4'97

Q4'98

Q4'99

Q4'00

Q4'01

Q4'02*

Q2’03

* Restated for FRS17 and share option accounting

12
Levers of Value Creation: Operating Margin to 2004

2004
Operating Margin
16+%
Restructuring
+100 bps

Margin Improved Mix

+50-60 bps
Growth Drivers
Recovery of D&E Cost
+80-100 bps

Step up A&P spend

-40 bps
Q2 ‘03 MAT
Operating Margin
14.6%

And…continued momentum in global procurement and

Bestfoods integration savings

Levers of Value Creation: Optimising the Balance Sheet

Net
Debt
2000* A&D

5.3 Currency
CFO Retranslation
Dividends Net Debt
3.5
2003
4.1
Tax Q2*

26.5 Capex & 4.7

17.9 Fin Invest.
3.8
Interest 16.1

3.7

Other

Underlying Tax Rate Cost of Capital

Down by 200 bps Down by 100bps

*2000 closing EUR/USD 0.93, 2003 Q2 closing EUR/USD 1.14

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Levers of Value Creation: Summary

Top Line - Improved

business & brand Portfolio

Operating Margin Annual

+350 bps
Free Cash Flow

Capital Efficiency raised by €1bn

+840 bps since 1999

Balance Sheet: Tax down 2%

Cost of capital down 1%

Last 70 years EPS Last 10 years EPS

growth 8% growth 9%

Current share price implies a FCF decline in real terms

Summary: Levers of Value Creation

◆ Top third TSR overarching ambition

◆ Progress on all levers of value creation; improved
brand & business portfolio; operating margin; capital
efficiency; improved balance sheet
◆ Free cash flow raised by €1bn p.a. since start of
Path to Growth
◆ Confirmed outlook for 2003 of low double digit EPS
(beia) growth and expect brand growth of some 4%

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 Backup Charts

The Key Drivers of Growth

◆ Powerful “reshaped” portfolio of brands in

fragmented markets
− Build strength in the core

◆ Innovate in fastest growing segments with

Brands on trend with the consumer

◆ “Space for growth” - move from category to brand

mindset
Space for Growth
− Extending brands across categories
− Adjacent segments Category

− New channels Adjacent

Geography BRANDS Segment
− New markets, leverage our
strength in D&E Channel

15
Hitting Consumer Hotspots

Growth % 2002

Meal Solutions Snacking

Refreshment +13 %
+ 11%

+ 15 %
Social Celebration
+9% + 6% + 12 %

Health &
Indulgence
Wellness
+ 12 %
+ 9%

+ 11 %
+ 9%

Taking Charge of the Top Line

Global Brands

◆ Portfolio of Global Brands

& Local Jewels

◆ 400 brands - 200 brand

positions

◆ Leading Brands From 75%

to 95% of sales

◆ 40 Global Brands
already 64% of sales

◆ 14 brands > €1bn + each

16
 Foundations for Sustained, Profitable Growth:
Savoury & Dressings
% of Sales Q2 MAT
Savoury & Dressings 5.2%
Leading Brands 90% 6.1%
Knorr, Hellmann’s, Bertolli 50%

Growth underpinned by strong brands

- Active innovation programme in place
Social and proceeding to plan
Celebration
- Improved market position in Asia Pacific through Ajinomoto transaction

2002

Europe:+7%
Latam: +15% USG: +5% USG: +7%

Knorr - a Brand for All Seasons

Reach out Reach up

New consumers Nutrition / Fresh
New occasions Ethnic
New channels Gourmet
Vie
New channels
Frozen snacks &
meal solutions Chilled / Frozen

Wet single serve Wet

Cup-a-Soup Mealmakers

Ramen Dry Sauces

Noodles
Dry Soups

Ramen Bricks
Reach down USG*
Tomato
Affordability 2001: 4%
Accessibility Bouillon 2002: 7%+
Basic nutrition
Seasoning

17
Foundations for Sustained, Profitable Growth:
Frozen Foods

Earned the right to grow - now need to do it…and sustain it

K Now purely a European business - number 1

K ROCE = 30%
K 2001 growth:+3% but not sustained, first half sales down 1%
K Continuing to build on success in quality convenience meals
K Need to step-up innovation in the rest of the portfolio….

Future Growth Drivers:

K Knorr into frozen
K Kids nutrition
K Snack products
K Fresh & natural ingredients

Foundations for Sustained, Profitable Growth:

Ice Cream

Global leader - growing organically - profitably

USG Comment
2001 3%
2002 4%
uUSA 8% Sustain superior performance
uD&E markets 6% Returning to historical growth
uEurope 1% Need to broaden consumer reach
◆ First half USG 4%
◆ Continued strong progress in D&E
◆ Revitalising European business: heart brand relaunch, innovations

18
Foundations for Sustained, Profitable Growth:
Tea Based Beverages

Lipton…average of 5% growth p.a. over the past 3 years

2002 First half 03

Category <2% 4%+
Leading 3% 5%
Ready to Drink 9%+ 10%+ From hot tea
A pick up in momentum in first half 2003
K
K Good progress on tail exit
to Ready to Drink

€23
billion

€350
billion

Commodity Prices

Breakdown of raw materials

& packaging % turnover Raw Materials & Packaging
% Turnover

Oils and Fats Packaging

9%
4% turnover
Raw Materials
24%

Tea 1.3% turnover

19
Leveraging our Strength in D&E

◆ 2006: D&E purchasing power

will exceed the developed
world

◆ 2010: c. 90% of world’s

Refreshment
population in D&E

◆ 2050: Europe’s share of the

world population will halve

◆ 70+ years experience. Strong

local understanding and
Indulgence management

◆ Leverage strong HPC

distribution network for Food
kìãÄÉê=N=áå=aCb brands

Underlying Price & Volume

2001 Devaluing Countries

20

15

10

0
nN=MN nO=MN nP=MN nQ=MN nN=MO nO=MO nP=MO

-5

-10

Price Change % Underlying Volume % USG %

• Before exceptional items and goodwill amortisation

20
How we go to market

Route to consumer
Retail Consolidation

W. Europe: High

Pan Europe: Low/Medium

USA: Medium/High

Global Customers D&E: Low

Other modern Trade
General Trade
Foodservice, Out-of-Home

How we go to market: Discounters

Discount Strategy

CG s
FM and
Discounter Br

Hard Discounter own

il s
e ta and
R br

Source : Unilever Presentation to Morgan Stanley Consumer Conference (for full presentation go to
www.unilever.com/investorcentre/presentationsconferencecalls/2003/

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Impact of Implementing FRS17

Pension & Other Benefits elements 2002 2003 (Estimate)

Impact on: (€ mln) SSAP 24 FRS 17 FRS 17
Operating Profit (beia) (274) (381) (400)
Charge to Interest 0 108 (190)
Profit before Tax (274) (273) (590)
Net Profit (beia) (184) (183) (395)
Net Assets (after tax) €bn (2.7) (3.9)

KBut :it is important to get behind FRS17 principles

prescriptive use of AA-Bond discount rate has a tendency towards
−
reporting a deficit
−long term P&L charges should equal cash - a reported deficit isn’t
necessarily a cash liability - snap shot market measurement clouds
the longer term nature of pension management
−“headline” FRS17 deficit includes unfunded schemes, already
recognised in our balance sheet
KAdoption of FRS17 is accommodated within PtG targets & financial strategy

Accounting for Stock Options

◆ Options programme already fully hedged

− shares bought in at time of grant
− economic interests of shareholders protected
◆ From 2003, operating profit to include a new charge
− reflects value of option to employee
− non-cash item : no change to UL cash flows
◆ 2003 reporting
− €160m charge to operating profit (30bps on margin)
− EPS (beia) dilution of 1 percentage point
◆ Change absorbed within Path to Growth targets and
2003 outlook

22
US Trade Destocking

◆ Long term trend ½ to 1% of sales per year

● Included in planning
● Driven by - Retailers getting more efficient
- Our business moving to larger more efficient retailers

◆ First half 2003 ‘sharper than expected destocking’

● Impact largely on Home & Personal Care
● Held back sales by €120m. Calculated based on detailed analysis of sell
in and sell out
• Category growth 1-2%
• Market shares stable; based on Neilsen which covers 95% of market
• HPCNA sales declined by between 4 & 5% in first half
• Confirmed by VMI inventory data covering some 60% of sales

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