UNILEVER

RANJAN E RAJAN

About Unilever

Unilever was formed in 1930 from two companies: Margarine Unie and Lever

Brothers.

Legal structure and governance

Margarine Unie (Netherlands)

Lever Brothers (UK)

● It was a full business merger, operating as a single business entity.

● Two separate legal parent companies have been maintained:

o Unilever NV (Netherlands) and Unilever PLC (UK).

● This works through an equalisation agreement and other contracts between the two companies.

Board of Directors

Chairman

Michael Treschow

Paul PolmanChief Executive Officer

Jean-Marc HuëtChief Financial Officer

Executive Directors

Non-Executive Directors

The Rt Hon The Lord Brittan of

Spennithorne QC, DL

Wim Dik Louise Fresco

Ann Fudge Charles Golden

Byron Grote

Narayana Murthy

Hixonia Nyasulu

Kees Storm Jeroen van der Veer

Paul Walsh

Structure

Unilever is one of the world’s leading suppliers of fast-moving consumer

goods. We aim to provide people the world over with products that are

good for them and good for others.

Creating a better future every day

Our vision

● We work to create a better futureevery day.

● We help people feel good, look good and get more out of lifewith brands and services that are good for them and good for others.

● We will inspire people to take small everyday actions that can add up to a big difference for the world.

● We will develop new ways of doing business that will allow us to double the size of our company while reducing our environmental impact.

Fast facts

163,000 employeesat the end of the year

20 nationalitiesamong our top tier managers

More than 170 countries in which our products are sold

264 manufacturing sites worldwide

€891 million invested in R&D worldwide

€89 millioninvested in community programmes worldwide

Performance

Scale and geographic reach

The Americas €13 billion turnover4.2% underlying salesgrowth

32.3% of group turnover

AAC€15 billion turnover7.7% underlying salesgrowth

37.4% of group turnover

Western Europe €12 billion turnover -1.9% underlying salesgrowth30.3% of group turnover

2013 turnover €49.8 billion

Strategic Focus

Our deep roots in local cultures and markets around the world give us our strong

relationship with consumers and are the foundation for our future growth. We

will bring our wealth of knowledge and international expertise to the service

of local consumers – a truly multi-local multinational.

Our long-term success requires a total commitment to exceptional standards of

performance and productivity, to working together effectively, and to a

willingness to embrace new ideas and learn continuously.

To succeed also requires, we believe, the highest standards of corporate behaviour

towards everyone we work with, the communities we touch, and the

environment on which we have an impact.

This is our road to sustainable, profitable growth, creating long-term value for

our shareholders, our people, and our business partners.

Corporate purpose

Categories, Brands and Regions

Unilever’s portfolio of categories

Leading category positions

Ice Cream &

Beverages

Personal Care

Homecare

Savoury,

Dressings

& Spreads

Strong category positions

Top 25 brands = almost 75% of Unilever’s

sales*.

* As at end 2009

Big global brands

Innovation

Unilever is a world leader in research and development

(R&D).

Innovation driving growth

● €891 million invested in R&D in 2009

● At least 250 new patent applications filed each year

● A portfolio of more than 20,000 patents and patent applications

Different aspects makeup Talent Managementwithin Unilever:

1.Some aspects are focused on the individual:

a. Recruitment & Selection

b. Learning & Development

c. Performance Management Wheel

2. Some aspects are focused at managing talentacross an organization:

• These are discussed in FRC’s or FunctionalResource Committees

TALENT MANAGEMENT

Most of all talent management processes are web-enabled, and are linked to PeopleSoft

Talent management process E-tool

• Recruitment (internal & external) VURV

• Learning LMS

• Goal setting, Performance evaluations,

• Performance Ratings, Succession planning,

high potential listing PDP online system

• Reward e-Reward system

• Unilever invest highly invest in management trainees in order to build a robust talent pipeline

• Unilever Future Leaders Programme

Key areas:

– Attraction

– Selection

– Development

– Performance & Reward

Develop Young Talents

Recruitment administration:

– has been outsourced to Accenture –internally it’s Unilever Peoplelink.

•Rationale of outsourcing:

– Hiring Manager to focus on those elements where he can really add value, and Unilever Peoplelink does the rest…

•Role of hiring manager:

–Set up the vacancy text, hold interviews with shortlisted candidates, decide who gets the job

•Role of Unilever Peoplelink

– Act as link between candidate, hiring manager, sourcing partners (e.g. Recruitment agencies) and follow-up the whole process

–Screen candidates, hold telephone interview, extend job offer & contract

Recruitment & Selection

Recruitment:

• Via Campus Manager Approach :

How ?

Current trainee acts as Campus Manager (i.e. is responsible for attracting young graduates of a specific campus)

• Where ?

In Target Cities / Specific Groups (diversity) / Events

• When ?

2 starting moments: 1 March & 1 September

Recruitment & Selection for UFLP

• CV & Motivation letter screening

• Numerical & Logical reasoning test online

• Telephone interview on SOL competencies & motivation

• Assessment centre with World leaders as assessors

Selection Process UFLP

Unilever Aims to develop people on3 different sets of skills:

1.General Skills

a Catalogue exists of all general skills trainings we offer, and which are delivered in the most appropriate way(e-learning, virtual classroom learning, classroom learning, etc.)

2.Professional Skills

Each function has an Academy -e.g.. Unilever Marketing Academy develops programmes specifically for marketers, at each level of their career

3.Leadership Skills

High Potential Leadership programmes exist for High Potentials at each work level within Unilever

• The development needs of an individual is discussed using the Individual Development Planning (IDP)

Learning & Development

The IDP informs which development activities are to be taken

- those that are a formal training are captured & viewable in their online Learning Passport

•This Passport separates learning needs into 3 categories:

Mandatory trainings

Recommended trainings

and Elective trainings

My Passport programme

Performance Management Wheel

Goal setting, or Setting your 3+1 (3 key work plan goals + 1 key development plan goal)

• Goal setting is first step in the annual Performance & Development Planning (PDP)

Goal Setting

Discuss your long term Individual Development Plan (IDP) with your line manager; use this as input for your short term development plan goal

Using the passport plan effectively

Learning & Development Plans

A mid-year review manager (review 3+1, SOLs, core job responsibilities) and record outcome of review in the PDP system

• An End-of-Year discussion with manager (final review of 3+1, SOLs, core job responsibilities) and record outcome of review in the PDP system

• Based on your performance regarding your 3+1, SOLs, and core job responsibilities, manager will decide on the appropriate Performance Rating (between 1 & 5)

• The functional manager will review all recommended ratings in his/her remit, and make ensure calibration for the whole team

Performance Rating

You can ask your peers, line manager, people you work with to give you feedback on the way you demonstrate the SOL behaviours, by initiating a Multi-Source Feedback (MSF) (also known as 360 review)

•The MSF exercise can either be a light version (rated on high-level competencies) or full version(rated on sub questions per competency), and you can ask either up to 15 people to give feedback, or just do the exercise between yourself & your line manager

360 feedback

• Regularly you will be asked to fill in the Global People Surveyquestionnaire, which aims to get a view on opinions ofUnilever employees regarding working at Unilever

Global People Survey ( GPS)

The LDT (or Leadership Differentiation Tool) is used in the Functional Resource Committees (FRC) to differentiate between peer managers in a certain function and at a certain Work level

• All managers are plotted on 2 axes, the WHAT-axe (whether you reach your work plan goals) and the HOW-axe (whether you reach your goals by demonstrating SOL behaviour)

• Once confirmed, manager informs you of your position in the LDT matrix

Forced LDT differentiation

In order to achieve differentiation in pay performance rates have been introduced (from1 to 5)

• Performance rating is based on individual performance against the 3+1 goals and job fundamentals

• Performance ratings are directly linked to bonuses, each performance rate has its own bonus range without overlap between the rates; the higher the individual performance the higher the bonus one will receive

Differentiated Pay for Performance

FRC’s are held every quarter

–1. Succession planning: who is ready now or in ½ years forour key roles

–2. Review Key Talent: Who are they key talents? What abouttheir development & next steps?

–3. Key talent on key roles: What % of our key roles are heldby our key talents?

–4. List Cover: What % of the number of roles we have at acertain work level(eg. WL4), have a WL3 High Potential Listerthat is ready to succeed?

–5. Expected & Current vacancies

–6. Mid year review

Functional Resource Committees

• The Standards of Leadership define the way unilever need to do things in order to enhance performance

Standards of Leadership: the Unilever competencies

Social and Environment

Helping society through our products and

programmes.

Social

• 133 million people reached by Lifebuoy handwashing programmes since 2002

• 15 million people in 3 million households in India provided with safe drinking water through Pureit

• 44% of our products in line with internationally accepted guidelines for saturated and trans fats, sugar and salt

• Nearly 17 million school meals delivered to 80,000 children in 2009 through our partnership with the World Food Programme

• 45,000 women entrepreneurs reach 3 million consumers in 100,000 Indian villages selling Unilever products door to door

* Measured by tonne per production. Preliminary data pending audit.

• We are committed to sourcing all palm oil from certified sustainable sources by 2015

• 15% of the tea we use globally is sourced from Rainforest Alliance CertifiedTM farms

• Over the period 1995–2009 we have achieved reductions of:

• 41% in CO2 emissions*• 73% in total waste*• 65% in water usage*

Eleven years as sector leader of

the Dow Jones Sustainability Indexes.

Our goal is to double the size of the business whilst at the same time reducing our environmental

footprint. This encompasses the whole value chain –from the sourcing of raw materials through to consumer use and disposal of our products.

Environmental

Working in partnership is crucial in developing and delivering some of

our major sustainability commitments.

Working with others

UN World Food Programme: to feed hungry children and improve their nutrition

World Heart Federation: to promote heart health

Global Alliance for Improved Nutrition: to co-create new approaches in food fortification to address malnutrition

FDI World Dental Federation: to improve oral health

Global Public-Private Partnership for Handwashing with soap: to promote good hygiene practice

UN Global Compact: to align business operations and strategies in the areas of human rights, labour, environment and anti-corruption

Our principal global partnerships are with: