PUREPLAY HPC | UNILEVER INVESTOR EVENT 2026 - Unilever

This is a work of fiction. Any resemblance to anyone, living or dead, is coincidental and unintentional. Thank you. Thank you. very good welcome thank you for being with us today in new york it's a real pleasure to to have you here and welcome also for all the people that will be watching this online i'm fernando and you know this is unilever capital market day and it's a pleasure to have you here i feel yesterday night also we have a group of you with us here on in a cocktail and i know some of you brief for some product development i want to show you what happened overnight this video Thank you. We'll be right back. Thank you. Thank you. three briefs one from fenella for the dab hair oil one for from warren for a improved life boy in indonesia and one from javier for a repair 13 may in u.s three potential formulations developed taken from a stock of around 7,000 formulations based on AI choices. Three different packages developing one night. Three different fragrances developing one day. This is the kind of speed that we are trying to inject into Unilever. Of course, these are just draft prototypes, but this is the type of dynamic that we need is necessary in an industry in which short-term innovation life cycles developing great-looking superior products, you know, and managing an incredible amount of content with an incredible number of creators really make a difference these days. So, thank you very much, Fenella and Warren and Javier for the input. Before kicking off, let me fundamentally summarize what will be the agenda of this morning. I will kick off. I will show you how we have transformed Unilever Unilever in the last few years, how we are elevating our power brands, what geographies will contribute disproportionately to our growth, and how we have evolved in our operating model to give response fundamentally to one thing, the incredible increasing conversions of creators, content, media, and commerce at local level. This is what is behind the announcement we made yesterday about the evolution of our operating model. After that, Leandro and Richard will partner to show you how we are leveraging science to develop superior formulations, superior products, how we're building capabilities in aesthetics and sensorials, and how we manage demand creation in the context of an immense amount of creators, content, And increasingly, LLMs, agents, et cetera. Harish, Priya, Reggie will show how radical portfolio choices, disproportionate resources allocation behind our best brands, and how a significant step up in the granularity of execution is allowing us to win in some of our most important markets, and how we will expand some of these capabilities into what we call new frontier markets. And finally, Xenia will bring home everything together, showing how all these capabilities can be converted into value creation. After that, there will be enough time for what I absolutely sure will be very good questions, and I hope some decent answers. Two years ago, I stand up in a similar meeting to this with Lando as a CFO of the company. We were in the early stages of a profound turnaround, and we have conviction about this journey, but we have also a lot of uncertainties. Uncertainties coming from many, many years of uncompetitive levels of investment, of many years with brand equities eroding, competitive losses, and inconsistent performance. And we were convinced about the past, but we have to prove that what we were doing really was going to generate results. And in the last couple of years, we have gone through a lot. It's a real profound transformation across the whole enterprise. Many people criticize for many years in the leader for being too bureaucratic and too slow. Some people criticize now for changing too fast. I take it, you know. And the shake-up is really happening in many, many different pillars, you know. We have transformed our portfolio, of course, through the separation of ice cream and from the plant integration combination with McCormick into what we believe will be a real global flavor powerhouse. But also following a real discipline of allocation of resources behind in seven priorities, more beauty, more well-being, more personal care, more U.S., more India, more premium, more online. And as a result of that, the contribution of our power brands to the revenue of the company has increased significantly. The premium exposure and the online exposure of our portfolio has improved significantly. We put in place a new marketing philosophy. You have to blame me for the cheesiness and the corniness of the name, SASE. SASE is an acronym for Science for Superior Performance, Aesthetics for Great Looking Products, Sensorial for Great Experiences, said by others as the fundamental reason to believe and useful to make our brands contemporary. It's fundamentally defined our product development approach, SAS, Science Aesthetic Sensorials, and the way we reach and persuade our consumers, said by others, usefulness. If you go and you talk to a brand manager in Brazil, or to a sales rep in Philippines, or to factory worker in UK, and you ask them what they do, they will tell you, we are in the business of building SASE brands. We have also improved the discipline in the company. Perfect Store is now being rolled out. Three clear metrics, availability, visibility, and price compliance executed everywhere across the market, across the markets. We are improving our discipline in pricing that has been a big issue. We used to operate with around 30% of our portfolio, of our revenue, outside the desired strategic pricing, relative pricing to competitors. We are now operating at around 90%. There is more that has to be done, but it's a significant step up. And also, we have demonstrated that we are able to really manage costs with discipline. We managed the separation of ice cream. We increased profitability at that time, and we will do exactly the same with the separation of foods. And finally, and of course, super, super important, significant changes in our culture and in our talent. We have upgraded the talent in the organization. I have the team now that I want to have. Significant changes in the top 200 in the company. And fundamentally, big, big changes in terms of performance culture, performance management intensity, you know, and reward differentiation. All this has happened in a period of two years. As I continue thinking that in a 1 to 10 scale, Unilever, in terms of the quality we do, is a 6 or 7. There is more that has to happen to be the kind of company that we want to be, but we are definitely in a better place than we were before. And the results show that. We don't accept anymore to be unconsciously uncompetitive. We have increased 300 basis points of investment behind our brands, close to 2 billion of incremental BMI. As I mentioned before, we have improved the pricing compliance. As a result of that, and as a result, of significant improvement in our innovation, our brand equities that two, three years ago, around 35% of the revenue was increased in equity. Now when we look at the brand superiority scores, we had 65% of revenue increase in equity. of the revenue increase in share and this shows in the most important metric we follow in the company that is the underlying volume growth in the last 11 quarters the remaining HPC pure play business that Unilever will be has been growing at the rhythm of 3.3% that's more than two times the average of the HPC peers in the sector and we did it at the same time that we deliver deliver consistent earnings growth in hard currency. I know, I'm Argentinian. I know that when you put dollars, you put pounds, or you put euros, you don't want Argentinan pesos in return, you know? And we are starting to deliver with consistency earnings growth in hard currencies. The new Unilever is a very balanced business. Across what we see as a common industry, the HPC industry. close to one-third of the revenue in each of the key macro categories. 33% in beauty and well-being, 34% in personal care, 30% in home care. And these three macro categories give exposure to different things, you know? Beauty and well being is where all the trends are born. And these trends increasingly travel across all these categories, with wellness at the center of everything. I will cover that before, but if somebody, I'm a laundry guy, if 20 years ago, somebody would have told me that the number one dimension of the laundry category in Brazil would not be stain removal or whiteness, and it would be fragrance and experience, I would have said, what are you talking about? And this is what is happening. And the number one dimension in laundry UK is sensitive skin. Categories are changing fundamentally. And the commonalities between beauty, personal care, and home care are increasing. Beauty and well-being is where all the trends start. And they travel down from prestige beauty into core beauty, into personal care. Dios first, skin cleansing follows laundry. Personal care is a category in which we enjoy very strong leadership. We don't have really a global competitor in personal care. We have some competitors with some presence in the audience and presence in skin cleansing and skin cleansing majority of local competitions. We have shares that in most of the cases are three to four times our rivals. We have categories like deals in which entry barriers are significant, particularly when the category moves up in terms of format particularly into aerosol these are categories that are relatively concentrated in terms of the number of players and in which the incumbent has significant advantages and home care give us incredible home care that for us is 70 percent emerging markets give us significant exposure to the driving forces of urbanization wealth expansion infrastructure spending, and it gives us incredible entry and distribution mode in emerging markets. Every single invoice, every single order that we do in emerging market starts with an order of home care. We have a portfolio that is much more sharper and cohesive. It's not by chance that so many players play across home care, personal care, and beauty. Because insights, functional needs, sensorials are different. But the underpinning science and technology is the same. Sarfactants for cleaning, human biology for transformational hair and skin products, fragrances across the board. Five families of materials make 90% of the spending we do in raw materials and packaging. This is an industry with very common foundations. This is also an industry which shares demand creation models. Food is a low frequency innovation category. Home care, personal care, beauty and well-being is a high frequency innovation category. It's a category in which innovation matters, in which form of gradation and form of expansion is what drives the growth in the categories. And these are categories that share route to market. Of course, there are some specialist features. You know, you have specialist beauty stores, you know, both in developed markets and in emerging markets you have online playing a significant role in beauty bigger than the one you see in home care but overall the channels and the customers with which we operate are common across these three macro categories this is an industry that is attractive we have just finished an study around 120 countries and we look at seven trillion of spending HPC represents 16 percent of the total, and grows 300 basis points faster than the other 84%. Our turnover weighted market volume growth today is 2%. If we grow with the market, we grow 2% volume. If we gain share, we are above 2% percent volume. We are the second largest VPC company globally. We are number one home care market, home care company in emerging markets. We have in 322 cells that we measure, we call cells the combination of categories and geographies. In 322 sales, we have number one or number two position. In emerging markets, in 250 sales, we have 95% of the revenue in number one or number 2 positions. And this company is a simpler company than it used to be. We have fewer verticals. The separation of foods and ice cream is making our verticals move from around 16 to 10. We have few brands. Four years ago, we have 370 brands. We have now 180. And 25 of them make 80% of our revenue. And we have 40% less SKUs than we used to have four years ago. This is a simpler business in which we are allocating capital with much more focus. We allocate capital, we allocate talent, we allocate time to fewer things that make a bigger impact. As a result of that, we have a business with enough with to have enough diversification, but enough simplicity to have enough focus. 65% of our turnover in top 10 markets, 65% of our turn over in top 15 brands, 65 percent of our turnover in the top 60 sales. Wide enough, focus enough. Diversification and focus, both very, very important for us. This area at the scale is what is behind, is the mantra we use in the company behind the elevation of our brands. For many, many years, the portfolio of Unilever has been a portfolio with a significant bias into mainstream, mainstream positions, mainstream pricing, and with a bias emotionally in the connection to a consumer to identification. Desire at scale is a mantra that we use internally to inject aspirationality into our brands and to inject reasons to believe to pay a premium behind our brands. And there are fundamentally four pillars that define what we do and how we do it when we run our brands The first one is the increasing role of wellness in the different categories in which we participate. as I mentioned before, is permeating all our categories as a key driver of preference. The second is SASI, our model of how to, you know, manage our brands. I will click down on that in a minute. A very important element that is an addition to our plans and in which we have gaps, that It is a development of authority systems in a world in which clinical proof, patents, publications, recommendation by experts, will have a much more important protagonism in the future that it has had in the past. And finally, flawless execution. Let me go through each of them. Wellness is not a category. It's a growing consumer need state. It's increasingly shaping consumer behaviors, and it is defined by a continuous search of an improvement in physical well-being, emotional health, and quality of life. That's the reason that we talk that wellness is a secular trend. We believe it will be one of the key trends in the next decade in consumer goods. And this defines the framework of our portfolio. We talk internally about wellness across body, mind, and home to define the portfolio we have and the innovation we develop. And this is starting to show in some of the biggest successes that we are having currently. When it comes to biological aging, you see that in K18. You see that end of scalp care, hair. When you look at probiotics, you of course see it in only gummies, but you see it in sieve cleaners. Our biggest success in household cleaners in the last few years is the launch of sieve probiotic cleaners, you see in the development of medical grade solutions in deodorants with rexona clinical or in vaseline proderma in the body reshaping mix that we have launched recently you see it in the development of experience and pleasure in lacks you see in brands like that or vaseline when it comes to develop shield against environmental stressors that you be protection in healthcare vaseline light sensor is glutahyla in body care and you see it in mixes like comfort fine fragrances of persil bio non bio sensitive all these innovations that are some of the biggest and more successful innovations that we have developed in the last couple of years they are all connected by a fundamental development of wellness as a key driver of preference. SASE injects desirability and modernity into our brands. I mentioned before, science for superior functionality, aesthetics for great look, sensorials for great experiences. 80% of our revenue now, the revenue we test, has superior functionality against the primary competitor. 60% of our packaging, we have to do a better work on that. 65% of all our fragrances, we have to continue evolving. But this is a much better position than we were before. 80% in formulation, functional delivery, 60% in packaging, 65% in fragrances. More to come, more that has to be done in the sensorial and aesthetic space. We have now, I usually mention 300,000, But we have now 500,000 content creators working for Unilever globally. It was around 20,000 two years ago. That's a big, big change. We have embraced social first marketing at a very significant speed. And this is showing in the way we are growing our key brands. And some of our brands has been really rejuvenated. I always give the example of Vaseline. It took us 150 years to get to one billion revenue. And in the last three years, we will be adding around 400, 450 million. The brand is growing at 13% volume, and it's a brand. If we can do it in Vaseline, we can't do it many other brands. Have we done it in all our portfolio? No. We have great examples, and we have brands in which we are starting to replicate this model. Also, the authority systems are very, very important, and this is a gap in our strategy. We are very conscious that we have not been at the level of some of our oral care competitors, of some, some of them are cosmetic competitors. They have been much more consistent in building authority systems, particularly in the professional space, expert practitioners service. And this is the next step for our brands. We will invest in build the authority systems that give our brands reasons to be trusted in a context in which adgentic shopping, in which LLMs will play a much more important role. We have done great progress with social. As I mentioned, 500,000 content creators working for Unilever. We have gotten great progress in communities, but we have to do that progress with the professional sector. Of course, adgentics is changing many, many things, and it's giving science a more important role. The algorithms have to follow a logic, and the logic they follow is geographical proximity, independent recommendation, clinical proofs, patents published, ratings and review. This plays in favor of gray brands with gray science with gray budgets. A few years ago, the perception was that the shelf was becoming endless, money was for free, and fragmentation of the category was only a matter of time. But these changes that are happening in the agentic space play in favor of big companies, brands with strong scientific credentials. Execution wins the store, and this has been an area in which we have been under par. Many of the issues we have had in the last few years, call it in Indonesia, call it in Brazil, call in Vietnam, call it in South Africa, has been fundamentally lack of discipline in execution. We are improving, but we are not there yet. But we are starting to show that we can do big things. In the FIFA World Cup, during eight weeks, we operate 18 million stores, with 350 million in special editions items that were brought into these stores. That can only be done by companies that start to have a level of discipline. And we are improving. We are not there yet, but we are improving. Significant improvement in online also, 20% growth with a pure place in online in the US, for example, as a proof of that. More than that in some of the omnichannel players in the US. Execution with the store, one of the reasons also in which we are making some changes in operating model is to increase seniority of the commercial organizations in our countries. AI is an enabler of these four fundamental pillars of our action plan. AI, as you saw before, and this video was just a bit of a gimmick. But AI is really shortening our innovation cycles. Richard will comment on that. But a few years ago, 80% of the activity in our labs was physical. 80% of the activities in our lab today is digital. It used to take us, you know, three years to develop a new launch, you know, now we are doing that between eight and 12 months. We have reduced by half the time in which we develop fragrances and we, in which, we develop packaging. Content, the lifespan of a video today is four days. More and more, our investment goes through the likes of Meta, Google, TikTok, Amazon, Walmart. And content has to be renovated. Because after four days, you don't have diminishing levels of return. You have negative levels of returns, negative marginal returns. So, this implies that you have to create an incredible amount of content that has to be optimized all the time. That's what drives ROI. In the old times of TV, your ROI of media was pretty simple. The impact in the revenue as a numerator and the cost per GRP in the denominator. Now it's different. Your numerator is not only the impact in your revenue and the impact on your equity. The numerator is defined, but the level of engagement that you provide to the platform. Because the level engagement that you provide the platform fundamentally change the price you pay. This is a fundamental change and makes development of content such an important capability in a company these days. We have increased our content development in the last two years more than 12 times. Leandro will cover that. We have reduced dramatically the cost per unit of content. And our ROI is increasing consistently, close to 10 to 15% a year. Finally, perfect stores, you know, AI allows better execution in store. Every single rep of Unilever now is going with the phone, taking a picture. That picture communicates with the central office of sales in every single country in which we operate. We can see if the pricing is right, if the availability is right. If the assortment is right or if the visibility is right and we can take immediate action in the order that we have to put to our customer. We can take a immediate action in correcting pricing if necessary, etc, etc. In the stores where this is implemented, our growth rate is 1.5 to 2 times the ones in which it's not implemented. We have around 30% coverage now in terms of numeric distribution, close to 70% weighted distribution. There is more that has to be done there, but we have the tools. Our people has it. We are deploying them with rigor. At the center of our strategy is the development and elevation of our power brands. We have 25 power brands that represent 80% of our revenue. They are not our biggest, some of them are, but these are the brands that share three fundamental features. They can travel regionally or globally. They have ability to premiumize and have access to higher margin pools, and they have the ability to travel into adjacencies. Consider adjacency vaseline lip care, for example, for the body care brand. Consider adjacencies dab facial cleansers. And we have built a portfolio that I believe is one of the most attractive in the sector. It's a combination of market-leading brands, the likes of Dove, Dirt is Good, Sunsilk, Rexona, Vaseline, with a set of digital disruptors that we have acquired and developed in the U.S. And that give us the possibility to build a new layer of premium brands that can travel internationally. The likes of K18, Liquid IV, Grooms, Hourglass, Dr. Squash, Olic. So this is the portfolio of power brands that we have. They represent 80% of our revenue. In the last 11 quarters, the volume growth has been 4.4%, and the gross margin of this portfolio is 600 basis points ahead of the rest of the portfolio. Does this mean that the other 20% of the portfolios doesn't have a role? Not at all. We probably have around 1 billion of potential disposals there in an A billion revenue. But the rest of our brands play a very important role, particularly in providing resilience against economic volatility in emerging markets. Our brands, for example, in the case of Brazil, where we have close to 70% share in laundry, 50% share is in the power brands, another 20% share is in value to mainstream propositions that if there is volatility, like it could happen in Brazil now, after what we have seen recently in terms of currency and markets, it will be a cushion that allows us to protect our volumes, protect critical mass in times of volatility. We have different geographical exposures for our power brands. The best are in around 40, 50 countries, like DAP, Dirt is Good, Rexona. But we have a very significant amount of brands with potential to travel much wider than we have taken them. Vaseline, Clear, 3MS, SIF, Comfort, Pepsodent, they are in 30 to 40 markets. Vermalogica, Sunseed, Lux, Ponds, Domestos, between 10 and 30. And many other ones are in early stages of development, but with a lot of potential to travel. That is our blueprint for what a great power brand should be. 17% of our revenue, close to 7 billion turnover. in the period 2016-2023 this brand grew 3.5 percent in volume in the last 11 quarters is growing 7.3 percent this year is close to 10 percent this is one of the brands i'm more proud of you know when i stand up in front of the upstairs today it looks a very different brand to what it used to be three years ago we have invested in packaging we have put our best science We have pushed our limits to really try to see at what kind of price DAB could play. Two, three years ago, the highest price point of DAB was in the $6 to $7. Today, the high price point is in the high $6. The highest price of DAV is in $17 to $18. The result of leveraging our best science, putting the great packaging, building great sensorials into what is a great brand. And the potential is massive. Haircare represents 18% of DAF sales, is growing 16%. DAPMEN, we are disappointed. It's 14% of our revenue, but we have not done a good job. When you compare with the main competitor of DAV, the contribution of MEN to the whole brand is much higher than the one we have. DAPMEAN is growing 10%, but this is a segment that should grow between 15% and 20%, and we will make it grow 15% to 20% in the years to come. And it shows the potential of what a great brand that is built in developed markets like that, a U.S. brand that has been created with mixes that have been created to develop markets. What happens when you bring it into emerging markets like India? India is 5% of DAB sales, but it's growing 25%. DAB here in India, 20% share, if I'm not wrong, Priya, 20% share. And Vaseline proves the repeatability of the model. I could have chosen other brands, you know, SIF growing double digit, it was at 5% a few years ago. Comfort, it wasn't zero, growing now 9% in the last three years. But Vaseline is a very good example because an old brand anchoring a product, primitive product like petroleum jelly, Three percent of our sales, it was one billion three years ago. By the end of 2026, it will probably be 1.45, 1.5 billion. Underlying volume growth of five percent in the previous seven years, underlying volume growth of 13 percent, 12.5 percent in last couple of years, in the last 11 quarters. Also with massive potential, Glutahyia, Vaseline light sensor is 15% of our sales, 11% growth. Lips, a forgotten category, very attractive. I love narrow verticals where you can establish a strong leadership. 14% of Vaseline sales grow in 12%. Africa, 12% of vaseline sales, grow in 20%. I have never seen a consumer relationship with a brand like the one of Vaseline and the African consumer. It will be a 500 million business. I don't know if it will take five years, 10 years, but Vaseline will be 500 million business in Africa. I don�t have any doubt about it. Sorry, it's not, is this working? Yeah. DAB and Vaseline are great examples, but we have to do a good job in the rest of our portfolio. In some of them, we are in good track. Dirt is good, growing close to double digit this year, 8% to 9%. Incredible success of WonderWash. in 40 markets after three years, you know, close to 300 million revenue, a big, big driver of the growth of the brand. WonderWash is a great example of a key strategic decision. The more you move into 15-minute wash, the less unit dosing works. SIF, I call, it's a joke, But internally, they say, SIF, because your home is worth it, you know? It shows fundamentally what happens when you put beauty aesthetics into great home care specialist products. Second year growing 15%, and you can look at this SIF. You know, it could make it to any toilet and not being hidden. There are other brands in which we need to do a better work. Lux, Rexona, these are big, very, very important brands for us in the future. And if we can put them in the kind of dynamism that we have achieved with brands like Persil or Homo or Dab or Vaseline, it will cement our leadership in skin cleansing and deals. Lux is extremely important for us because with Dab dominating the premium segment and the care space of the category, If we can really lead in the fragrance experiential space, in a category in which personal hygiene benefits are disappearing, and in which everybody is trending up into experience, care, and clinical benefits, we can lock this category for the years to come. Rexona, number one brand in deodorants, incredible position, but you know, the performance space is being reshaped in many, many categories, from athleisure to many other categories, and we have not modernized Rexona as we should have done. But this is top in our list of brands that has to be revived to a level of double-digit growth. Rexona is growing now 4% to 5%, lags in a similar space. We need to bring these two brands into high single-digits growth soon. and we are scaling digital disruptors and different of the disruptors that we have brought, they play in different territories and they are very attractive because they play with different roles Grooms is all about market making they are creating nutrient support as a snack At the time of acquisition, $380 million grant, $170 million in the first six months, $210 million in the second six months. Levels of repeat rate of 85%. A lot of potential to become a $500 million, $ 1 billion brand in the future. Dr. Squash, more than $500 billion revenue, absolutely fundamental to establish a strong Unilever leadership in the male grooming space. Look at the combination of Rexona Men, Dr. Squash, Dab Men, and Axe. And look at that portfolio in the combination of skin cleansing and deodorants. Dermalogica and Underleverage Jewel, around 400 million revenue, One third of that in the professional space, but the brand is under leveraged. We are unsatisfied with the level of development, but it has all the credentials of brand that succeed today. Professional, strong community support, strong advocacy, expert recommendation, professional channel. And finally, Liquid IV. Huge opportunities. International expansion, new format, new occasions. Of course, this year is struggling a bit. I have mentioned that we are rebalancing the exposure to different channels in the U.S., but we are growing share in Amazon, we are growth share in Walmart, we are grow share in Kroger, we grow share on the grocery channel, and we are going very, very fast in international markets. K18 brings all this together, and it's a small brand, but it's growing very fast. We acquired K18 in February 24. The revenue of 23 was $115 million. And in the last 12 months, we have made $240 million. And three items, three items made 70% of the revenue. A mask, a dry shampoo, and increasingly FutureIQ, a density product. We have great positions in fast-growing markets, you know. Unilever has the highest exposure of any multinational to emerging markets, 62% of our revenue. As I mentioned before, in around 250 sales, category geographical, category country sales, we enjoy number one or number two positions, the main 95% of revenue. And you can see we have a balanced portfolio with a good presence in North America in which we have fundamentally transformed our portfolio to deliver four percent volume growth in the last three years. We have had a business that in Europe after the separation of foods increased the underlying growth in one percent. We have incredible positions in India and great positions in the rest of Africa, Latin America, Middle East and Africa. Let me start by developed markets. Through acquisitions and through a fundamental elevation of the quality of our teams in the U.S., and Gerish is here, he has been instrumental to the improvement of our U. S. business. We have made an 8.5% revenue business, 22% of our revenue, to grow 4% volume in the last three years. You see the structure of the portfolio, practically no presence in home care, where there is no growth in U.S. really. Beauty and personal care and well-being represent 95% of our turnover, 70% of turnover in the U. S. is premium, 30% of portfolio in the U. S. e-commerce. This is what we want to replicate in Europe and this is why we are moving to Europe. As I mentioned before, the separation of foods implies 1% additional growth in Europe. We will have a much more focused business. The three top geographies in Europe will make 50% of our revenue, 82% of our portfolio, you know, in number one or number two positions, with very strong positions in and skin cleansing as the anchor for our portfolio. We have a challenger position in home care, and we have an increasing presence of prestige and well-being in our portfolio starting from the UK. Let me move into emerging markets, and emerging markets is, of course, one of the reasons why Unilever has a very attractive profile. 62% of our revenue, but there are fundamental social demographics and economic trends that play in our favor in the years to come in emerging markets. 300 million new households, new middle class households, will be added until 2035 in emerging market, you know? the number of middle class households will be doubled in the next ten years. 90% of urban population growth until 2050 will be in Africa and Asia. Rapid urbanization. And the amount of, and the speed of entry, the pace of entry of female into the labor market is very, very significant in Asia and Africa. But you know, we always knew that emerging markets have a superior growth profile. But the issue with emerging markets has always been volatility. The issue with the emerging markets has always being exposure to negative currency effects. In Unilever, around 2% in the last 10 years in average. But things are changing in terms of the relative macroeconomic fundamentals of emerging markets versus developed markets. The GDP growth in emerging markets is too time. growth of developed markets. The level of public debt, the global average of public debt is 93 percent, but the 76 percent in emerging markets is 108 percent in developed markets, the level of currency coverage versus external debt in emerging markets in the last 20 years has doubled, and the amount of sovereign default exclude argentina exclude turkey exclude nigeria you know has fundamentally collapsed by more than half so superior growth much more resilient economies lower level of debt lower level of fiscal deficit the probability of a much more solid currency profile of emerging markets versus developed markets is very, very high. India is our blueprint for emerging markets. It's where we have the wider portfolio, covering practically all price points in a very significant number of categories, and we have four times the share of our main competitor. We have 55% share in healthcare. We have close to 50% share in laundry. We have 80% share in functional tea. We have 30-plus percent share, 35 percent share in skin cleansing we have more than 30 percent in sun care and i can continue going 80 percent in functional nutrition i'm absolutely convinced that india will be for unilever in the next decade what china has been for some of our competitors in the previous decade we have incredible mode in terms of distribution not only in physical stores but also in online we cover more than 9 million retail outlets And we have a supply chain structure with the right economics. We sell close to 85 billion packs in India every single year. 60 per person. 6.3 billion revenue. Accelerating performance. 16% of the revenue of Unilever in what will be the exponential growth story of consumer goods in the next decade. And a business that in the last 10 years has multiplied by four the cash flow. And we believe that the India blueprint has the possibility of being replicated in a set of countries that make 9% of Uniliver revenue, But we are 50% of the population growth will be in the next future. Africa, 1.4 billion population. Pakistan, 255. Bangladesh, 175. Vietnam, 100. This is 9% of universal turnover. We have number one position in all these markets. Many of our competitors have abandoned these markets, 55% of the population grows, as I mentioned before. significant urbanization, significant purchasing power expansion. Reggie has done an incredible job in simplifying our portfolio in many of these markets. We are running portfolios of around eight brands in most of our African markets, for example. We have doubled the growth rate. Business that has been historically diluted to Unilever has become accredited to Uniliver. More than 600 basis points of margin expansion in some of them. This is what we call New Frontier, these are our brands like Dab and Vaseline at the center of our strategy. These are markets in which we will put this proportionate focus in developing a beauty and personal care business. Overall, we have a nice model in which see a loop, a positive loop between the West and the East. In the West, we built a premium portfolio that can travel international. We built digital capabilities. We build omnichannel presence, and we build data integration with retailers, learnings that we can deploy in the East. In the East, we develop market-making capabilities, social commerce capabilities starting from China, and quick commerce capability starting from India. And we make this travel south and west. Develop markets build global brands, and you can see here the power of some of these brands. TAF, a Western brand, growing in India 25%. Oli, a digital disruptor, a U.S. digital disruptors, 15% of the revenue in China already. Premium innovations like Dirt is Good in Hong Kong are like Wonder Wash, already present in 40 markets after three years. Developed markets build capabilities with major retailers. The importance of retail media is increasing. The importance developing categories with these players is increasing, 10% point of sales, CAGR growth in the last 11 quarters with Walmart, 20% with Amazon, in the case of Amazon, discovery conversion agentic model at speed, at pace being implemented. Emerging markets lead new commerce models. We have grown our business in India at the 40% growth rate in the last 11 quotas. We have grown our quick commerce business in India with the likes of Blinkit and some other companies there at 55%. In the case of quick commerce, we are learning how to service these kind of models. We had a customer service one year ago of 76% in quick commerce in India. Now we have 90. And we are by far the best service level in the industry in India. Finally, how we are evolving our operating model. How we will run this pure play HPC company, 39 billion. Number one, home care in emergency market, number two, VPC globally. And why are we evolving our operation team model? Many people were asking yesterday, Fernando, are you addicted to change, man? you know why another change why when you are growing 3.3 percent volume why when your growing share and there is a fundamental reason behind this change and is linked to the increasing role of creators content media media platforms you know the the conversions of creators, content, media platforms, agentic, at local level. We are creating an immense amount of content. Leandro will show that. And content has to be relevant with a much more segmented number of audiences. And engagement is very important because it reduces your cost of media platforms. And to deliver that engagement, you have to touch cultural passion points. And these cultural passion point and these communities are fundamentally local. So we are fundamentally evolving our model because we need much more senior media and marketing and commerce structures at local level. Because LLM also rewards geographical proximity. The evidence you publish in Nigeria performs better in Nigeria than in Ethiopia. Because the algorithm follows a logic. It's a logic of geographical proximity, it's a logic of publication, it is a logic of independent recommendation. And we need to build that at local level. And that requires an extensive senior local organization. But we will do this protecting what we have built during the last four years. The famous COMPASS model has dramatically stepped up the quality of product development in Unilever and have improved dramatically our portfolio conversions. I show it in the percentage of revenue in our power brands. I show it with the reduction of brands in more than 50%. I show the reduction in items in more 40%. We don't want to come back to the old times of Unilever in which the guiding principle was decentralized strategy with an attempt to control execution centrally. We will run a model of centralized strategy, centralized global strategy, and decentralized local execution. The global organization will be leaner, will be powerful. The decisions about the portfolio of Brazil or the portfolio in Poland or the portfolio in UK or the portfolios in US will not be taken in the countries, will be taken centrally because we are in the business of increasing our growth footprint and we are the business increasing our portfolio conversions. The management of our brands will continue to govern centrally, and we will continue having a new, unified category structure to ensure that we continue doubling the size of our innovation, as we have done in the last few years. But we will strengthen the local organization. We will give them the responsibility of driving operational and commercial excellence. They will manage the increasing conversions of media, content, creators, platforms, commerce. They will mange the programs with our channels and our customers. And they will have the responsibility of delivering the in-year P&L. Resources in the long run will be allocated from the center. The markets will develop performance in year. We will have a focused markets organization. We will not be any kind of regional big organization. The markets will be in the center or in the countries. In fundamentally 30 P&L units, two anchor markets that represent 40% of our revenue, the US and India, 18 markets that represents 45% of revenue, the likes of Brazil, UK, Indonesia, and 10 other clusters that represent 15% of the revenue. And they will be clustered in six performance management units with no teams, a regional president and a couple of functional leaders fundamentally running the performance management of these six clusters. North America, 23% of the turnover, Europe, 14% in developed markets, India, 16%, South Asia Pacific, that will be Indonesia, Philippines, Pakistan, Bangladesh, and a few other markets, Northeast Asia, China, Korea, Japan, Vietnam, Laos, Cambodia. And finally, a very big, big, big cluster that Reggie will lead, Latin America, Africa, Middle East, and Turkey. That will be 22% of our turnover. And the business will be led by the team I wanted. We are entering a period of portfolio stability and leadership stability in Unilever. We have gone through a lot of change, but we expect to close the transaction with McCormick in the first semester of 2027, and we will put this organization in place that will be fully operational after the closing of the transaction in Foots. Srini will expand responsibility. He will take care also of data, technology, and processes, and business services, because we want to further simplify processes across the company. We want to simplify our processes as we have simplified our portfolio. We have not done it yet. Edu Campanella will run corporate strategy for me. Leandro will be the chief growth and marketing officer of the company, he will be in charge of all our brands and all our categories. He will be working very close with Richard and with Willem in fundamentally establishing every decision about technology, science technology, both in terms of R&D and supply chain. Maraid and PK will be fundamental functional leaders in terms developing our talent and our compliance. And we will have six regional presidents, Priya in India, Benji, recent president of indonesia running south asia pacific asim president of thailand running northeast asia reishi running latin america africa middle east and turkey herish moving from us to run europe and a new external recruitment that will be has been recruited already it will be in place on the first of january running our us business with this team with these capabilities with the whole progress we have made with the excellent portfolio of power brands combining digital disruptors and market leading brands with the growth footprint that we have and with the momentum of the business we are very very confident that we can make Unilever in a consistent path of top-tier performance what does this mean four to six percent underlying sales growth with at least two percent volume growth in period of normalizing inflation probably will be significantly above of that more in closer to three in periods of high inflation we probably will be around two percent but we will defend the two percent because two percent is very very important because volume is the true measure of demand of a company the true measure of relevance of the company and today our turnover weighted market volume growth is two percent if we are below two percent today we are losing share and we will not allow that and of course a business that has huge return high teams returns one of the beasts of the sector 11 negative working capital around 18 to 19 percent return on invested capital in summary the strategy and the portfolio are set we have brands that has been elevated and have momentum we have some brands that have to follow the repeatable model that we have built for DAF, CIF, COMFORT, BASELIN. We will build a commercial and operation machine at the local level, strengthening our operations to fundamentally manage this kind of increasing convergence of creators, content, media, platforms, commerce. And we are very convinced, we have a strong belief, that Unilever is in a path of consistent top-tier performance. With that, thank you very much. and I'm passing to Leandro and to Richard to see how all this works in action. There is a break. Okay, fine. I was in the mood of going home. We go for a break and then we go back. Thank you. Thank you all.