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  • Unilever Global Strategy Council

    Summit Recap

    1. Iden'fiedGrowthPriori'es2. GrowthPriori'esTranslatedto

    InvestmentPlans3. RoleofM&AforFutureofUnilever4. M&AGroupRecommenda'on&

    Presenta'on

  • UnileverHighGrowthPriori'es

    Deodorants,Skin,Hair

    Savoury,IceCream,Tea

    VitalitywithinFoods

    HomeCare

    Russia,China,andLocalaccess

  • Transla'ngGrowthPriori'esIntoInvestmentPlans

    2006

    disposed

    disposed

    2000 2001 2002 2003 2004 2005

    CategoryPorOolio GrowthPriori'esCurrent

    InvestmentStatus

  • RoleofM&AforFutureUnileverGrowth

    15

    keybattlegrounds

    defend andgrow profitably

    generatecash

    investto grow

    Role of M&A

    competitiveness

    attractiveness

    weak / contested clear leadership

    highgrowth

    lowergrowth

    top prioritytransform market share

    towards leadership

    transform or dispose

    augment share,extend strongholds,

    exploit hotspots

    Unify behind a shared view of the business and business model

    Focus strategic choicesCompete to win in business of focus

    Deliver superior value over sustained period of time

    Build and sustain a portfolio of businesses that

    ! are more weighted to market leadership positions

    ! play in higher growth space

    More value from the portfolio

    Compe''veness

    APrac'veness

  • GrowthPriori'essa'sfiedbyHain

    Deodorants,Skin,Hair

    Savoury,IceCream,Tea

    VitalitywithinFoods

    HomeCare

    Russia,China,andLocalaccess

    *ThecolorGREYrepresentsunsa'sfiedgrowthpriority

  • RoadMap

    CulturalFit/StrategicFitStrategiesPostAcquisi'onValueOfferLogis'csofAcquisi'on

  • Cultural/StrategicFit

    Be(erFutureforOurChildrenHealthierFutureMoreConfidentFutureBe(erFutureforOurPlanetBe(erFutureforFarming/Farmers

    HealthyProductsHealthyPackagingHealthyEnvironmentHealthyCommuniCes

  • Sustainability

    SustainableLivingPlanCleanerPlanetTogetherIniCaCveFairtradevanillaandalmondsSustainableforestproject

    Reducedpackagingby5%DecreasedCO2by492.2tonsAwardwinningBelgium,UK,Canadamanufacturingplants

  • SocialResponsibility

    Flora/BecelmargarineVaselineSkinCareFoundaConLifebuoysoapDovesCampaignforRealBeautySafedrinkingwaterto500millionpeopleby2020WorldFoodProgramme

    NaturalandOrganicOver400glutenfreeproductsReducingcalories,fat,sodium,sugar97%productsnonGMOcerCfiedFeedtheChildren,SecondHarvest,BoweryMission

  • Strategies

    1. ExploitourcurrentglobalfootprinttoencourageexpansionofHainCeles'alintointerna'onalmarkets.

    2. Gainaddi'onal1%revenuegrowththroughincorpora'onofHainfoodandbeveragesegments.

    3. DiversifyUnileverproductporOoliothroughincorpora'onofnaturalandorganicpersonalcarelines.

    4. CreateHainadver'singprofileequivalenttorestofUnileverfamilyofbrands.

  • ExploitourGlobalFootprint

    Currently17.2%ofnetsalesareinUSExpected7.03%posiCveincreaseUnileverUSsales

    14%ofsalesinInternaConalmarketExpected36%growthwithexpansionintoMiddleeast,Russia,Asia,Africa,India

  • GrowthinFoods&Beverages

    AccomplishourSustainabilityGoalTapintoorganicfoods,teamarketRevenuegrowthincrease1%withacquisi'on

  • DiversifyPersonalCarePorOolioAHainCeles'alstrengthDecreasecompe''oninU.S.UnilevermenspersonalcaregainingprominenceinU.S.0.5%increaseingrowthrate

  • ExpandHainAdver'singProfile

    Necessary increase of Hain Celestials marketing budget Results in 2% increase in operating expenses Will stimulat future growth in brands of both companies

  • PostAcquisi'onValue

    $25.00

    $50.00

    $75.00

    $100.00

    $125.00

    $150.00

    $175.00

    $200.00

    $225.00

    $250.00

    $275.00

    EnteringValue GlobalFootprint Foods&Refreshments PersonalCare Marke'ng&Advert.Cost

  • TheOffer$3.62B

    Stock$2.53B

    Cash$1.09B

    DisposiConofBoard/Employees

  • TogetherwecanEnternewforeignmarkets

    Strengthenourbrands

    Con'nuetobesociallyresponsibleIncreaseourvalue

  • Discussion&Delibera'on

  • Appendices

  • AppendixA

    2007 2008 2009 2010 2011 2012UN Growth Avg

    HAIN Growth Avg

    Revenue $53.45 $53.89 $52.96 $58.87 $61.81 $64.16

    YOY Growth 1.01 0.98 1.11 1.05 1.04 1.04 1.08

    Cost of Goods Sold (COGS) incl. D&A $27.53 $28.61 $27.60 $30.90 $37.40 $40.52YOY Growth 1.04 0.96 1.12 1.21 1.08 1.08 1.09

    Operating Exp $16.93 $16.17 $16.17 $17.85 $13.86 $12.66YOY Growth 0.96 1.00 1.10 0.78 0.91 0.96 1.04

    EBITDA $8.99 $9.11 $9.19 $10.12 $10.55 $10.98YOY Growth 1.01 1.01 1.10 1.04 1.04 1.04 1.14

    2012 2013 2014 2015 2016 2017TV in Perpetuity

    TV (Using Multiple)

    Revenue $64.16 $66.60 $69.14 $71.77 $74.51 $77.35Growth 1.04

    CGS $40.52 $43.90 $47.57 $51.54 $55.84 $60.50Growth 1.08Operating Exp $12.66 $12.13 $11.63 $11.16 $10.70 $10.26growth 0.96EBITDA $10.98 $10.57 $9.94 $9.08 $7.97 $6.59 $87.92 $89.51Realized Growth 0.96 0.94 0.91 0.88 0.83PVIF @ 7.5% 1.00 0.930 0.865 0.805 0.749 0.697 0.697 0.697

    PV of Cash Flow $10.98 $9.83 $8.60 $7.31 $5.97 $4.59 $61.24 $62.35

    DCF $97.55 $98.66

    Unilever Stand-Alone DCF

    Unilever Historical Growth Analysis

  • AppendixB

    2012 2013 2014 2015 2016 2017TV in Perpetuity

    Revenue $64.16 $68.61 $71.40 $74.30 $77.33 $80.47growth (anticipated) 1.04 1.07 1.04 1.04 1.04 1.04Revenue $64.16 $69.89 $74.13 $78.63 $83.40 $88.46growth (+2% over anticipated) 1.04 1.09 1.06 1.06 1.06 1.06Revenue $64.16 $67.33 $68.72 $70.14 $71.59 $73.07growth (-2% under anticipated) 1.04 1.05 1.02 1.02 1.02 1.02

    CGS $40.52 $44.38 $48.08 $52.09 $56.44 $61.15growth (anticipated) 1.08 1.10 1.083 1.083 1.083 1.083Operating Exp $12.66 $12.13 $11.63 $11.16 $10.70 $10.26growth (anticipated) 0.96 0.96 0.96 0.96 0.96 0.96

    EBITDA $10.98 $12.10 $11.69 $11.06 $10.19 $9.07 $120.90realized growth 1.10 0.97 0.95 0.92 0.89EBITDA $10.98 $13.38 $14.42 $15.38 $16.27 $17.06 $227.44realized growth 1.22 1.08 1.07 1.06 1.05EBITDA $10.98 $10.81 $9.00 $6.89 $4.45 $1.66 $22.19realized growth 0.98 0.83 0.77 0.65 0.37

    PVIF @ 7.5% 1.00 0.930 0.865 0.805 0.749 0.697 0.697

    PV of Cash Flow $10.98 $11.25 $10.11 $8.90 $7.63 $6.32 $84.26PV of Cash Flow $10.98 $12.44 $12.47 $12.38 $12.18 $11.89 $158.53PV of Cash Flow $10.98 $10.06 $7.79 $5.55 $3.34 $1.16 $15.47 Net Change

    DCF $128.48 $30.93DCF $219.90 $122.36DCF $43.36 -$54.19

    Unilever-Hain DCF (Projected growth through global expansion of all Hain product lines)

    $1.88Revenue for 2013 includes annual data for UN with addition of projected Hain revenues:CGS reflects an initial increase of 36% in cost of goods sold within Hain segments as a result of expansion into UN Asia/AMET/RUB markets

    Notes & Assumptions:

  • AppendixBRegion 2012 2013 2014 2015 2016 2017 AVG

    Hain $0.99 $1.07 $1.16 $1.25 $1.35 $1.46growth 1.08 1.08 1.08 1.08 1.08 1.08UN $21.39 $22.20 $23.05 $23.92 $24.84 $25.78growth 1.04 1.038 1.038 1.038 1.038 1.038Net $22.38 $23.27 $24.20 $25.17 $26.19 $27.24growth 1.040 1.040 1.040 1.040 1.040 0.765

    Hain $0.39 $0.42 $0.45 $0.49 $0.53 $0.57growth $1.08 $1.08 $1.08 $1.08 $1.08 $1.08UN $17.38 $18.05 $18.73 $19.45 $20.19 $20.96growth 1.04 1.038 1.038 1.038 1.038 1.038Net $17.77 $18.46 $19.18 $19.93 $20.71 $21.53grow 1.039 1.039 1.039 1.039 1.039 1.039

    Hain $0.00 $0.54 $0.56 $0.58 $0.60 $0.63growth 1.04 1.04 1.04 1.04 1.04UN $25.51 $26.49 $27.49 $28.54 $29.63 $30.76growth 1.04 1.038 1.038 1.038 1.038 1.038Net $25.51 $27.02 $28.05 $29.12 $30.23 $31.38growth 1.059 1.038 1.038 1.038 1.038 1.042

    $65.66 $68.76 $71.44 $74.23 $77.13 $80.151.047 1.039 1.039 1.039 1.039 1.041

    $2.02growth 1.36

    $66.73growth 1.00

    UN total revenue 2013

    Hain total revenue 2013

    United States

    Canada & Europe

    Asia/AMET/RUB

    Total revenueYOY growth

    Revenue Growth by Geographic Region (with 36% expansion of Hain into Asia/AMET/RUB markets)

    Asia/AMET/RUB 40% United States 72%

    The Americas 33% United Kingdom 14%Europe 27% Canada & Europe 14%

    Unilever % Sales by

    LocationHain % Sales by Location in billions USD Hain UN Consolidated %of UN Sales

    United States $0.99 $21.39 $22.38 34%United Kingdom $0.19Canada & Europe $0.19Asia/AMET/RUB $0.00 $25.51 $25.51 39%

    Total $1.38 $64.28 $65.66

    2012 Revenue by Geographic Location

    $17.38 $17.77 27%

  • AppendixC

    2012 2013 2014 2015 2016 2017TV in Perpetuity

    Revenue $64.16 $67.87 $71.14 $74.56 $78.14 $81.90growth (anticipated) 1.04 1.048 1.048 1.048 1.048 1.048Revenue $64.16 $67.87 $72.49 $77.43 $82.70 $88.33growth (+2% over anticipated) 1.04 1.068 1.068 1.068 1.068 1.068Revenue $64.16 $67.87 $70.46 $73.14 $75.93 $78.82growth (no change over avg.) 1.04 1.038 1.038 1.038 1.038 1.038

    CGS $40.52 $43.90 $47.57 $51.54 $55.84 $60.50growth (anticipated) 1.08 1.083 1.083 1.083 1.083 1.083Operating Exp $12.66 $11.56 $10.55 $9.64 $8.80 $8.04growth (anticipated) 0.91EBITDA $10.98 $12.41 $13.02 $13.38 $13.51 $13.37 $178.25realized growth 1.130 1.049 1.028 1.009 0.990EBITDA $10.98 $12.41 $14.37 $16.26 $18.07 $19.80 $264.02realized growth 1.130 1.158 1.131 1.111 1.096EBITDA $10.98 $12.41 $12.34 $11.97 $11.29 $10.29 $137.16realized growth 1.130 0.994 0.970 0.943 0.911PVIF @ 7.5% 1.00 0.930 0.865 0.805 0.749 0.697 0.697

    PV of Cash Flow $10.98 $11.54 $11.26 $10.77 $10.12 $9.32 $124.24PV of Cash Flow $10.98 $11.54 $12.43 $13.09 $13.53 $13.80 $184.02PV of Cash Flow $10.98 $11.54 $10.67 $9.63 $8.46 $7.17 $95.60 Net Change

    DCF $177.25 $79.71DCF $248.42 $150.87DCF $143.08 $45.54

    Unilever-Hain DCF (with expansion of Foods &am