Unilever 2008 Annual Report Download - page 9

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Report of the Directors
Chief Executive Officer’s review
Taking this role is an honour and privilege, but equally a huge
responsibility. These are tough times; and tough times demand
the very best of all of us. That is the spirit in which I intend to
take the business forward.
Despite the fact that I have joined the Group at a time of
unprecedented economic turmoil, my first message to you is a
positive and reassuring one: your company is in good shape. The
scale and the extent of the changes over the last four years have
been a positive surprise to me. They have made Unilever stronger
and more confident, well placed to weather the storms currently
blowing through all sectors of the economy.
I want first, therefore, to acknowledge the hard work and
dedication of Unilever employees all around the world. Thanks
to their efforts, Unilever is a leaner, more focused business with
a strong portfolio of leading brands. All this is vital given the
intense nature of the competitive and economic environment.
The transformation was led with a mixture of skill and
determination by my predecessor, Patrick Cescau, and I want to
take this opportunity to recognise Patrick’s accomplishments as
ChiefExecutive.Heleavesaremarkablelegacy:awide-ranging
change programme combined with steadily improving results.
In short, the engine was replaced while the car kept running.
Quite an achievement and I am grateful to Patrick for what he
hands over.
Last year saw an acceleration of Unilever’s transformation agenda.
• Therationalisationofourmanufacturingbasecontinued
across all regions. During the last year we closed or sold a
further 14 sites, bringing the total to 30 over the last two
years. We are now on course to exceed our target – set in
2007 – of closing or streamlining 50 to 60 sites by 2010. All
these projects are being handled with great sensitivity to the
workforce. Together they are helping to provide Unilever with
a modern, cost competitive supply chain, capable of meeting
the demands of competing in the 21st century. To further aid
speed and efficiency, we have brought all our logistical and
supply chain operations in Europe together in one regional
structure based in Switzerland. And we are currently embarked
on a similar move in Asia by centralising our supply chain
management for the region in Singapore.
• Thebrandportfoliowasfurtherstrengthenedandsharpened.
This included the sale of the North American laundry business.
We also divested some smaller, non-strategic parts of our
portfolio, including Boursin cheese, Lawry’s seasonings and
the Bertolli olive oil businesses. These deals were all done at
good prices, achieving significant value for the company. At
the same time, the acquisition in 2008 of the leading Russian
ice cream maker, Inmarko, filled an important gap in a critical
market for us. And we are in the process of obtaining a vital
entry into the fast-growing salon sector of the hair care market
with our planned acquisition of the TIGI hair product business.
We are also alive to similar value-creating opportunities that
may present themselves during the year.
It is a great pleasure to report
to you for the first time as
Unilever’s Chief Executive
Officer. I am delighted to be
a part of the team and to have
the opportunity of leading
this great company.
Paul Polman
Chief Executive Officer