Re-designing Global P2P:Driving Efficiencies and Enhancing

Effectiveness

16th Annual North American Shared Service and Outsourcing week 9th March 2012

Agenda

1. A brief introduction to Unilever

2. The role and purpose of Enterprise Support in Unilever

3. Leveraging the Opportunity - The P2P process evolution

4. The ongoing Journey

5. O&A

Business OverviewBig global brands

Sold in 180 Countries and used by 2 Billion consumers every day

Top 25 brands = ¾ of Unilever’s sales

Our Evolution

FROMFROM TOTO

200 Business Units200 Business Units 25 MCO’s25 MCO’s

270 Factories270 Factories> 400 Factories> 400 Factories

Multiple Legacy SystemsMultiple Legacy Systems 4 SAP Platforms4 SAP Platforms

1200 Managers (top 3 layers)1200 Managers (top 3 layers) 600 Managers600 Managers

2 Chairman: Advisory Board2 Chairman: Advisory Board 1 CEO : Non-Exec Directors1 CEO : Non-Exec Directors

FiefdomsFiefdoms One UnileverOne Unilever

Our Business: Unilever’s cross-functional business services organisation

Providing close to 40 support services to:• 168,000 employees and business units in 180 countries

• Across HR, Finance and Procurement, IT, Workplace and Information Management

A large professional service community • Of 1,800 FTEs

Partners with over 20 strategic providers • With 10,000 employees serving Unilever

Our Mission

Continuous improvement at our heart

Single set of globally

aligned KPI’s

Simplify, standardise,

automate and digitise

services

End-to-end processes and global

process convergence

Cost and consumption transparency

Metrics

Visibility & Transparency at the Top of the Business

By Service Line

Consistent GLOBAL aligned Metrics

Our Providers in Finance Services

The JourneyThe Process E2EThe Process E2E

Purchase Order Good Receipt Invoice

ReceiptInvoice

Match and PostInvoice Payment

Reporting & Queries

The PastThe Past

Low Compliance Low Compliance Paper Manual QueryResolution

Low Payment on Time

ProliferationOf terms

Phone and Email

The AmbitionThe Ambition

100% No PO,No Pay

ComplianceOn Delivery Electronic Work Flow &

1st pass Match Self ServiceOn tim

Standard terms

e PaymentExtended Terms

Leveraging the Opportunities

E-Invoicing (OB10)

Efficiency + Sustainability +

Enabling SF

E-RTV

Sustainability +Productivity +

Efficiency

SupplierFinancing

Enabler to extend terms

SAP IM (DCIW)Cycle Time & 1st Pass Yield

Terms Extension &

HarmonisationWC improvement

Vendor QueryPortal

Easy accessFor Suppliers

100% No PO,No Pay

ComplianceOn Delivery Electronic Work Flow &

1st pass Match

On time PaymentExtended Terms

Standard termsSelf Service

ARIBAIP PO Creation

Metrics &Change

Management

Some of the Results

Area of Impact Electronic vs. Paper Invoices Trend

Reduction in Cycle time 5 Days vs 21 days T

86% vs 76%Increased rate of FPY T

Increased rate of On time Payment (+6 days) 91% vs 78% T

Facilitating the Supplier Finance Project

69% vs 24% (available within 10 days) T

Actual example of largest single transactional entity

The Results

0

5

10

15

20

25

30

35

Oct ’11Apr ’11Mar ’11 Dec ’11May ’11 Nov ’11 Jan ’12Aug ’11June ’11 July ’11 Sept ’11

Days to Post – Doc Date (Electronic)Days to Post – Doc date (Paper)

Only PO based documents

The Results

66

68

70

72

74

76

78

80

82

84

86

88

Mar ’11 Apr ’11 May ’11 June ’11 July ’11 Aug ’11 Sept ’11 Oct ’11 Nov ’11 Dec ’11 Jan ’12

First Pass Yield (Electronic)First Pass Yield (Paper)

Improved FPY for OB10 documentsDrop in Jan 12 on account of increased Price Mismatch and Framework order documents.

The Insights

8%

3%Late Approval

19%Short Payment Terms

Late Invoice receipt

Other

54%

16%

On time Payment

62%15%0-10 Days11-20 Days

23%21-29 Days

Due to the 3 day posting date

© copyright OB10 2010 OB10 and the OB10 logo are trademarks of OB10 Limited and are protected by law

Unilever North America Current Statistics

• 8,500 vendors loaded to OB10 across PI/IP • 1,371 vendors agreed to eInvoicing• 50% of all PI/IP invoices are now electronic• Once Cordillera activity diminishes, a campaign will continue to target

the top 100 vendors totaling more than 120,000 invoices• Intra-company invoicing through OB10 is being evaluated between

US and CA (over 5% of invoices)• Explicit PO validation with supplier rejections are implemented (but

not active due to Cordillera)• 76 new vendors in 6 weeks due to project Cordillera• OB10 successfully migrated over 1,000 vendors to the more complex

invoicing requirements of ASCC AG

Our approach

1. Meet local needs effectively and efficiently Through leveraging our global scale

2. Deliver end-to-end services Through our integrated services network :

Local Service professionals close

to the market operation

Global Operations Centres

providing scale

Outsourced transactional

activity where this makes sense

3. Provide rapid integration of newly acquired businesses

(‘plug and play’)

P2P Vision – Full E2E integration

SupplierNetwork

SupplierMaintenance

Purchase Requisition

Purchase Order Delivery Invoice

ReceiptInvoice

ProcessingInvoice Payment

Reporting & Queries

Procure Pay Shared

Create a Procure to Pay service line to exploit end-to-end process benefits for suppliers, users and clients:

• Service excellence and improved supplier / user experience• Develop and deploy global capabilities eg. Catalogs and E-Invoicing• World class compliance levels• One Global Process Model• Operation within the 3-tier Enterprise Support organisation model

END

Q&ADiscussion