Core Insights - Unilever is undergoing significant changes in its business and organizational structure, including plans to spin off its ice cream business and leadership changes [1][6] - The company reported a sales decline of 3.5% year-on-year for Q3 2025, with a total sales of €14.7 billion, but a 3.9% growth in underlying sales [2][5] - The ice cream business spin-off is expected to be completed by 2025, despite recent delays in the timeline [1][5] Financial Performance - Q3 sales amounted to €14.7 billion, down 3.5% year-on-year, while total sales for the first three quarters reached €44.8 billion, also down 3.3% [2] - The household care segment experienced the largest decline at 5.3%, followed by the ice cream segment at 4.2%, while beauty and health, and food segments saw declines around 3% [2] - Underlying sales growth was reported at 3.9%, with all five business segments showing growth, particularly beauty and health, which grew by 5.1% [2] Regional Performance - The Asia-Pacific and Africa regions saw a 6.8% increase in underlying sales, the fastest growth among regions, while Europe and the Americas had growth rates of 1.1% and 2.3%, respectively [2] - China and Indonesia markets returned to growth, with China showing single-digit growth and Indonesia achieving a 12.7% increase [2][3] Ice Cream Business Spin-off - The ice cream business, now operating as an independent entity called "Dream Ice Cream Company," was initially set to be spun off by mid-November but has faced delays [3][5] - The projected revenue for the ice cream business in 2024 is €7.9 billion, holding a 21% market share in the global retail market [3][4] Leadership Changes - Unilever has undergone leadership changes, with Fernando Fernandez appointed as CEO and Srinivasan Patak as CFO [6] - The company plans to rotate 25% of its leadership positions as part of its restructuring efforts [6][7] - A significant workforce reduction has been initiated, with approximately 7,500 positions to be cut globally, and around 6,000 already eliminated [6]

Core Insights - Unilever has not experienced a significant impact on consumer sentiment from the government shutdown in the U.S. market [1] Company Summary - The CEO of Unilever stated that the company remains unaffected by the current government shutdown in terms of consumer sentiment [1]

Core Viewpoint - The potential demerger of Unilever's ice cream business is anticipated to occur in early December, contingent upon the automatic SEC approval for the listing of The Magnum Ice Cream Company [1] Group 1 - Unilever's CFO Srinivas Phatak indicated that the demerger could take place soon if regulatory approvals are secured [1]

Financial Data and Key Metrics Changes - Unilever reported underlying sales growth of 3.9% in Q3 2025, with underlying price growth at 2.4% and volume contributing 1.5% [5][6] - The total turnover for Q3 was €14.7 billion, down 3.5% year-on-year, primarily due to a negative currency impact of 6.1% [18][19] - The company expects an adverse currency impact on full-year turnover of around 6% and a 30 basis points impact on the underlying operating margin [19] Business Line Data and Key Metrics Changes - Beauty and Wellbeing and Personal Care were major growth engines, with underlying sales growth of 5.1% and 4.1% respectively [22][10] - Power brands, which represent over 75% of turnover, grew by 4.4% in Q3, with volume growth of 1.7% [6][7] - Home Care underlying sales grew by 3.1%, driven by strong performances from CIF and Domestos [15] Market Data and Key Metrics Changes - North America saw underlying sales growth of 5.5%, driven by strong performances in Personal Care and Wellbeing [7][8] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China, despite challenges in India and Latin America [3][9] - Latin America experienced a decline in underlying sales by 2.5%, with a 7.3% decline in volume [9][10] Company Strategy and Development Direction - The company is focused on premium segments and fast-growing channels, with a significant shift towards digital commerce [2][22] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [3][17] - The strategic priority is to strengthen the portfolio with more beauty, wellbeing, and personal care products, while maintaining a focus on premium innovations [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform markets despite some softness in certain regions, particularly Latin America [21][22] - The outlook for the remainder of the year remains unchanged, with expectations for underlying sales growth within the 3% to 5% range [21][22] - Management noted that the macro environment in India is favorable, with recent tax reforms expected to boost consumption [9][22] Other Important Information - The company has seen significant growth in digital commerce, with 17% of revenue coming from this channel [58] - The acquisition of Dr. Squatch has expanded Unilever's presence in the premium male grooming segment [14][20] Q&A Session Summary Question: Clarification on volume growth expectations - Management confirmed a 2% volume growth expectation into 2026, highlighting strong performance in North America and challenges in Latin America [25][28] Question: Performance of wellbeing and prestige brands in North America - Wellbeing brands like Liquid I.V. and Nutrafol are approaching $1 billion in revenue, with strong growth noted [28][29] Question: Actions taken in Latin America regarding pricing - Management acknowledged that pricing strategies in Brazil were too aggressive, leading to corrective actions and improvements in sellout [30][31] Question: Pricing outlook in light of commodity costs - Management indicated that while commodity costs are relatively benign, wage inflation and currency devaluation are factors to consider for future pricing strategies [38][39] Question: Performance in Mexico and hard currency earnings expectations - Management noted soft market conditions in Mexico but expressed confidence in achieving positive hard currency earnings for the year [66][68] Question: Growth in Indonesia and China - Management reported strong growth in Indonesia and improvements in China, attributing success to strategic changes in market approach and product offerings [71][72]

Financial Data and Key Metrics Changes - Unilever reported underlying sales growth of 3.9% in Q3 2025, with underlying price growth at 2.4% and volume contributing 1.5% [5][6][18] - Turnover for Q3 was EUR 14.7 billion, down 3.5% year-on-year, primarily due to a negative currency impact of 6.1% [18][19] - The company expects an adverse currency impact on full-year turnover of around 6% and a 30 basis points impact on the underlying operating margin [19] Business Line Data and Key Metrics Changes - Beauty and Wellbeing and Personal Care were major growth engines, with underlying sales growth of 5.1% and 4.1% respectively [22][10] - Power brands, which represent over 75% of turnover, grew by 4.4% in Q3, with volumes up 1.7% for the total group [6][7] - Home Care underlying sales grew 3.1%, driven by strong performances from CIF and Domestos [15] Market Data and Key Metrics Changes - North America saw underlying sales growth of 5.5%, driven by Personal Care and Wellbeing brands [7][8] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China, despite challenges in India and Latin America [3][9] - Latin America experienced a decline in underlying sales by 2.5%, with a 7.3% decline in volume [9][10] Company Strategy and Development Direction - The company is focused on premium segments and fast-growing channels, with a significant shift towards digital commerce [22][60] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [3][17] - The strategic priority is to strengthen the portfolio with more beauty, wellbeing, and personal care products, aiming for a higher market share in key categories [22][47] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year outlook despite some market softness, particularly in Latin America [21][22] - The company anticipates volume growth in Q4 to be at least in line with Q3, with an expected improvement in underlying operating margin for the full year [21][68] - Management highlighted the importance of learning from challenges in Latin America to avoid similar issues in other regions [32][75] Other Important Information - The company has made significant investments in premium innovations and brand execution, which are expected to drive future growth [22][23] - The acquisition of Dr. Squatch is expected to enhance Unilever's presence in the premium male grooming segment [14] Q&A Session Summary Question: Clarification on volume growth expectations into 2026 - Management confirmed expectations of 2% volume growth into 2026, reflecting confidence in long-term market performance [25][28] Question: Growth of Wellbeing and Prestige in North America - Management noted strong double-digit growth in Liquid I.V. and Nutrafol, with improvements in prestige beauty brands like Hourglass and K18 [28][29] Question: Challenges in Latin America - Management acknowledged self-inflicted issues in Brazil, particularly in laundry and deodorants, and outlined corrective actions being taken [30][31] Question: Pricing outlook in light of commodity costs - Management indicated that while commodity costs are relatively benign, wage inflation and currency devaluation are factors to consider for future pricing strategies [38][39] Question: Performance in China and Indonesia - Management reported positive growth in both markets, with significant improvements in Indonesia attributed to a reset in business fundamentals [71][72]

Financial Data and Key Metrics Changes - Unilever reported underlying sales growth of 3.9% in Q3 2025, with underlying price growth at 2.4% and volume contributing 1.5% [5][18] - Turnover for Q3 was €14.7 billion, down 3.5% year-on-year, primarily due to a negative currency impact of 6.1% [17][18] - The company expects an adverse currency impact on full-year turnover of around 6% and a 30 basis points impact on the underlying operating margin [18] Business Line Data and Key Metrics Changes - Beauty and Wellbeing and Personal Care were major growth engines, with underlying sales growth of 5.1% and 4.1% respectively [20][11] - Power brands, which represent over 75% of turnover, grew by 4.4% in Q3, with volumes up 1.7% [5][6] - Home Care underlying sales grew 3.1%, driven by strong performances from CIF and Domestos [12][14] Market Data and Key Metrics Changes - North America saw underlying sales growth of 5.5%, driven by strong performance in Personal Care and Wellbeing [6][19] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China, despite challenges in India and Latin America [3][8] - Latin America experienced a decline in underlying sales by 2.5%, with a 7.3% decline in volume [8][9] Company Strategy and Development Direction - The company is focused on premium segments and fast-growing channels, with a significant shift towards digital commerce [2][20] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [3][16] - The strategic priority is to strengthen the portfolio with more beauty, wellbeing, and personal care products [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform markets despite some softness in certain regions, particularly Latin America [19][21] - The outlook for the remainder of the year remains unchanged, with expectations for underlying sales growth within the 3% to 5% range [19][21] - Management highlighted the importance of premium innovations and digital commerce in driving future growth [20][21] Other Important Information - The company has seen significant improvements in its operational execution and brand performance, particularly in developed markets [2][6] - The acquisition of Dr. Squatch has expanded Unilever's presence in the premium male grooming segment [12][18] Q&A Session Summary Question: Clarification on volume growth into 2026 - Management confirmed a 2% volume growth expectation into 2026, highlighting strong performance in North America and challenges in Latin America [24][26] Question: Growth of wellbeing and prestige brands in North America - Management noted double-digit growth in Liquid I.V. and Nutrafol, with improvements in prestige beauty brands like Hourglass and K18 [27][28] Question: Actions taken in Latin America regarding pricing - Management acknowledged that pricing strategies in Brazil were too aggressive, leading to corrective actions and expected improvements in competitiveness [30][31] Question: Pricing outlook in light of commodity costs - Management indicated that while commodity costs are relatively benign, there are inflationary pressures in certain categories, and pricing adjustments will be made sensibly [33][36] Question: Performance in Mexico - Management reported soft market conditions in Mexico due to external factors but emphasized strong competitiveness in their portfolio [64][66] Question: Performance in Indonesia and China - Management expressed satisfaction with the growth in Indonesia and noted improvements in China due to strategic changes in the business model [70][72]

Financial Data and Key Metrics Changes - Unilever reported a 4% underlying sales growth in Q3 2025, with a volume growth acceleration to 1.7% excluding ice cream, despite subdued markets [2][4] - The underlying sales growth was 3.9% with underlying price growth at 2.4% and volume contributing 1.5% [7][8] - Turnover for Q3 was EUR 14.7 billion, down 3.5% year on year, with a negative currency impact of 6.1% [27][28] Business Line Data and Key Metrics Changes - Beauty and Well-being saw a 5.1% underlying sales growth, driven by strong volume growth [15] - Personal Care achieved a 4.1% underlying sales growth, with volume growth of 1% and price growth of 3.1% [17] - Home Care underlying sales grew 3.1%, with volume growth of 2.5% and price growth of 0.6% [20] Market Data and Key Metrics Changes - North America grew underlying sales by 5.5%, with volume growth of 5.4%, driven by Personal Care and Well-being brands [9][10] - Europe experienced a 1.1% underlying sales growth, with a 0.6% decline in volume and 1.7% growth from price [10][11] - Emerging markets grew by 4.1%, led by a return to growth in Indonesia and China [4][12] Company Strategy and Development Direction - The company is focusing on premium segments and fast-growing channels, with a significant shift towards digital commerce [2][32] - Unilever is preparing for the demerger of its ice cream business, expected to be completed in 2025 [5][26] - The strategic priority is to strengthen the portfolio with more beauty, well-being, and personal care products [32][34] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving full-year outlook despite some softness in certain markets, particularly Latin America [30][31] - The company expects underlying sales growth to remain within the 3% to 5% multiyear range, with volume growth in Q4 expected to be at least in line with Q3 [30][31] - Management highlighted the importance of premium innovations and brand investments to drive future growth [34][36] Other Important Information - The company is experiencing a significant shift in consumer behavior towards premium products and digital channels [32][34] - The macroeconomic environment in India is favorable, with recent tax reforms expected to boost consumption [12][14] - The company is committed to maintaining competitive pricing while managing inflationary pressures [57][58] Q&A Session Summary Question: Clarification on volume growth expectations into 2026 - Management confirmed a 2% volume growth expectation into 2026, reflecting confidence in long-term market performance [37][50] Question: Growth of well-being and prestige brands in North America - Management reported strong double-digit growth in well-being brands like Liquid IV and Nutrafol, with a recovery in prestige beauty brands [41][42] Question: Actions taken in Latin America due to macroeconomic pressures - Management acknowledged challenges in Brazil and highlighted corrective actions taken in pricing and product formats to regain competitiveness [45][49] Question: Pricing outlook in a benign commodity cost environment - Management indicated that while commodity costs are benign, pricing adjustments will be necessary to manage inflationary pressures [53][58] Question: Performance of hair care brands in the U.S. - Management noted that TRESemmé has returned to growth in Q3, while some brands were consciously delisted to focus on sustainable growth [64][66] Question: Update on Liquid IV's global rollout - Management confirmed that Liquid IV is performing well in the U.S. and has been rolled out to eight markets, with plans for further expansion [66][67] Question: Performance in Mexico and expectations for hard currency earnings - Management reported soft market conditions in Mexico but expressed confidence in achieving positive hard currency earnings for the year [92][96] Question: Performance in Indonesia and China - Management expressed satisfaction with the growth in Indonesia and noted improvements in China, with all business groups returning to growth [99][101]

Group 1 - The core sales of Unilever increased by 3.9% year-on-year, slightly above analysts' expectations of 3.7% [1] - The company's operating income decreased by 3.5% to €14.7 billion, impacted by currency factors and asset disposals [1] - Volume growth was 1.5% and price growth was 2.4%, exceeding analysts' expectations of 2.2% [1] Group 2 - Unilever is undergoing a transformation led by CEO Fernando Fernandez, focusing on high-potential products and departments [2] - The company plans to spin off its ice cream business due to declining market share and high production costs, with the proposal delayed by a month due to U.S. government shutdown [2] - Unilever reiterated its full-year core sales growth expectation of 3% to 5% and announced a quarterly dividend of €0.4528 per share, a 3% increase from the previous year [2]

1 Safe harbour statement This presentation may contain forward-looking statements within the meaning of the securities laws of certain jurisdictions, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Words and terminology such as 'will', 'aim', 'expects', 'anticipates', 'intends', 'looks', 'believes', 'vision', 'ambiti ...

Core Insights - The company reported a 3.9% increase in underlying sales as it prepares to spin off its ice-cream division by the end of the year [1] Group 1 - Underlying sales growth of 3.9% indicates positive performance in the company's core operations [1] - The planned spin-off of the ice-cream division suggests a strategic move to streamline operations and focus on core business areas [1] - The timeline for the spin-off is set for the end of the year, indicating imminent changes in the company's structure [1]