Unilever and tea sustainability Michiel Leijnse, Global Brand Development Manager Lipton This presentation may contain forward-looking statements, including 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and other similar expressions of future performance or results, including financial objectives to 2010, and their negatives are intended to identify such forward-looking statements. These forward-looking statements are based upon current expectations and assumptions regarding anticipated developments and other factors affecting the Group. They are not historical facts, nor are they guarantees of future performance. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements, including, among others, competitive pricing and activities, consumption levels, costs, the ability to maintain and manage key customer relationships and supply chain sources, currency values, interest rates, the ability to integrate acquisitions and complete planned divestitures, physical risks, environmental risks, the ability to manage regulatory, tax and legal matters and resolve pending matters within current estimates, legislative, fiscal and regulatory developments, political, economic and social conditions in the geographic markets where the Group operates and new or changed priorities of the Boards. Further details of potential risks and uncertainties affecting the Group are described in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the US Securities and Exchange Commission, including the Annual Report & Accounts on Form 20-F. These forward-looking statements speak only as of the date of this presentation The World of Tea Global Production 2004 +/- 3.3 million tons Black Tea: 2.35 million tons 2. China 750k (90% Green) 5. Indonesia 120k Green Tea: 0.95 million tons Production areas Critical to Lipton Brands 1. India 860k 3. Sri Lanka 300k 4. Kenya 290k 1
Structural problems in the tea industry In real terms, prices have gone down by about 35% in the past 25 years 60% of consumers* say they take social and environmental factors into account when choosing what brand to buy * Source: Globescan/MORI based on 25,000 people in 23 countries 2
10 years of working towards sustainability on our own estates 25.000 People 100.000 Dependants >600.000 trees planted Free Housing Schools, Hospital 97% Renewable energy 3
We need certification to 1. Roll out to entire Supply Chain 2. Credibly share story with consumers Why the Rainforest Alliance? 4
The standards comprise the following 10 broad principles: Every Principle is broken down into a number of criteria, ca 200 in total. A complete overview of the standards and criteria can be found at http://www.rainforest-alliance.org/programs/agriculture/certifiedcrops/documents/standards_indicators_2005.pdf We are committed to sourcing all our tea sustainably All our tea used in PG Tips and Lipton Yellow Label tea bags in Western Europe certified by the Rainforest Alliance by 2010 Extend Rainforest Alliance certification to all Lipton tea bags globally by 2015 5
Roll out across Supply Chain Biggest Challenge remains Smallholders Kenya Pilot Q3 08 But smallholders not always most vulnerable 6
Complete Communication Programme Complete Communication Programme Media+ KOF trips Advertorials Print Digital Web PACK 7
3 consecutive press ads illustrating the 3 RA pillars YOUR SMALL CUP CAN HELP BUILD SCHOOLS. Lipton Yellow Label is working with the Rainforest Alliance, an independent environmental organization, to improve the living conditions of farmers and their families. In our own Lipton Tea Gardens in Kericho, Kenya, we offer free schools for the families of our 18 000 tea pluckers. Already more than 50% of our tea comes from Rainforest Alliance Certified plantations. We aim to reach full certification by 2010. To find out more, visit www.liptonforthefuture.com or www.rainforest-alliance.org And for PG Tips-UK Rainforest Alliance certified packs THE CAMPAIGN IDEA Promo packs TV announcement Take a sip Short movie to inform and entertain 2 nd phase TV Senor Al National press, radio and PR 8
Our Vision Lead change in the tea industry Improve the lives of up to two million people Show how Rainforest Alliance certification means that every cup of our tea is a step towards a better life for tea farmers, their families and the environment Reinforce the bond between consumers and our brands Questions? www.liptonforthefuture.com 9