Unilever Technology
Ventures
Phil Giesler
Managing Director
November 2006

Open Innovation in Unilever
We don’t have a monopoly on new
concepts or solutions.
That is why we are open for business
on Open Innovation.
We want to collaborate with the best
minds to make the differences that no
single firm could make alone.
We would rather work with someone
who has the answer today than hold
out in the hope we can eventually
come up with it ourselves tomorrow.
Patrick Cescau, Group Chief Executive, Unilever
6th World Conference on Detergents, Montreux
10 October 2006

What is Open Innovation to Unilever?
Closed Innovation
Vertically integrated Internal
organisation that developed Technology Unilever
its technology in-house for its Base Product base
sole use
Open Innovation Other’s
Out-Licensing Products
Commercialise internal and
external ideas inside and Internal Technology Spin outs New Unilever
outside of existing product/ Technology Business Venture
channel base Base
Unilever
External Product base
Technology
Base
Technology In sourcing

Open Innovation: Expanding the space to
innovate
The space to innovate
Consumer Consumer
Insight Insight
doable
desirable doable
Business Technology Business Technology
models profitable options models profitable options

Unilever objectives from Venturing
Unilever Technology Ventures: accesses emerging
technology with the potential to help innovation and growth
Unilever Ventures: creates new businesses that take
Unilever and its brands into new areas or that exploit unused
Unilever technology
Langholm Capital: creates options for acquisition by taking
stakes in businesses that could take UL and its brands into
new areas
€250MM allocated 2002 to Fund I’s in these 3 areas
€50MM of this to UTV

Organisation, reporting, decision making
Conscious at the start of lessons from Corporate
VC failures:
Managing corporate venturing without sufficient VC
experience
Making investments VC’s would not have made, hoping for
long-term strategic benefits
Each Venture Fund runs along lines as close as
possible to external VC funds.
Decision making delegated to Fund managers
Fund managers targeted on value creation and delivery of
VC type returns

UTV Managing Directors
Dion Madsen, B.Comm, Phil Giesler, M.Sc., MBA
CFA • 1999-2005: Head of
• 6 years of direct venture Global Household Care
experience in R&D
biotechnology with RBC • 1996-1999: Put in place
Capital Partners the Personal Care
• Executive experience in Global IC network
three operating • Strong Unilever
companies, Chiron, relationships and strong
Cytovax, Cyberion understanding of the
• Strong investment and R&D Organization
operating track record

UTV Venturing Objectives
Unilever Objectives UTV Objectives
• Access emerging technologies
• Access emerging technologies • Generate Strong Financial
• Generate Strong Financial
•Potential use in Unilever’s
•Potential use in Unilever’s Returns
Returns
products
products Generate strong deal flow
Generate strong deal flow
•Create medium to long term
•Create medium to long term Develop professional
Develop professional
value
value operational capabilities
operational capabilities
Gain industry respect for
Gain industry respect for
• Change culture to “open
• Change culture to “open adding value
adding value
innovation”
innovation” Generate strong returns
Generate strong returns
•Influence research and
•Influence research and Expand industry and
Expand industry and
development process
development process academic networks
academic networks
Utilize internal expertise to
Utilize internal expertise to
gain investing edge
gain investing edge
• Become self-sustaining
• Become self-sustaining

UTV Fund I - Approach
Focus on Materials Science and Life Sciences
Fund
Investment
Nanotechnology Consumer understanding
Biotools Targeted delivery
Personalised genetics Diagnostic equipment
Study Focus
Areas Packaging materials Nutraceuticals
Water RFID
Invest &
Manage

UTV evolution
Investments Own deal flow Re-inforce Towards an
in funds leadership independent
GP
Establish VC Self-
community sustaining
presence
Direct venture model
LP Strategic Funds from
Build deal- investments engagement 2-3 other LP’s
flow
Fund I ($60m)
Fund II ($120m)
Fund III
2002 2004 2006 2008 2010

LP Engagement
UTV Bulletins
Visiting Associate programmes
Open Innovation “receiver/dialogue” roles within Unilever
Advisory Board