1. Project Sorrento
Transforming Field Sales to fuel double-digit growth
Alexey Dzybenko ▪ Evgeny Glushkov ▪ Kirill Kondakov ▪ Stanislav Orekhov
Sorrento
November 26th 2010

2. Sorrento
The Sorrento team is
Evgeny, Kirill, Stas & Alexei
 HSE  HSE  MEPHI  SPB STU
 MIPT  MIPT  MIPT
 ITMO
Source: Sorrento CVs 2

3. Sorrento
 Project summary
 Implementation plan
3

4. Sorrento Challenges Changes Structure Responsibilities Headcount Impact
Field Sales will be reorganized to respond to
internal and external challenges it faces
External Internal
 Consolidation  Grow sales
of retail x2 by 2014
 Expansion of  Improve
modern trade efficiency
 Increase in
expectations
Source: Case data, Sorrento analysis. 4

5. Sorrento Challenges Changes Structure Responsibilities Headcount Impact
We will facilitate Food/HPC cross-sales and
tailor marketing strategies to sales areas
Goal Action
Combine
Facilitate
Food & HPC
HPC/Food
sales guys $
cross-sales
except in TT +15% sales
(+40% in MT)
Tailor Introduce
marketing Territory TME
strategies Marketing Territory Marketing
Executive
to SAs Executives +3% MS
+17% sales
TT = Traditional trade; MT= Modern trade; SA = Sales area; MS = Market share
Source: Case data, Sorrento analysis. 5

6. Sorrento Challenges Changes Structure Responsibilities Headcount Impact
We will triple the number of MTAEs and cut
duplicate functions to increase efficiency
Goal Action
5 15
Engage Triple
emerging MT number of ×3
companies MTAEs Modern Trade Activation Executives
+15% sales
Cut
Increase
duplicate
efficiency
functions
Enabler
Source: Case data, Sorrento analysis. 6

7. Sorrento Challenges Changes Structure Responsibilities Headcount Impact
Structural changes will include introduction
of TMEs and changing the role of CDAEs
KA
NSD Federal
National Sales
Director 1
KA
RSM Regional
Regional Sales
Manager
RME 3
Regional Marketing KA
TSM
Executive 3 D
Sales area
Territory Sales
Manager 15
TT KA MT
TME D
TTAE MT
MTAE D
MTE
Territory Marketing Traditional Trade Modern Trade Modern Trade
Executive 15 Activation Exec…30 Activation Exec..
15 Executive 15
KA TT
TT
MT SCSS MT
CSS Pool of
specialists
Senior Customer Customer Sales
Sales Specialist 65 Specialist 80
x FTE count x Interaction: KA = Key accounts; MT = Modern trade; TT = Traditional trade; D = Distributors
Source: Case data, Sorrento analysis. 7

8. Sorrento Challenges Changes Structure Responsibilities Headcount Impact
A discreet split of responsibilities between
hunters and farmers will be introduced
NSD  Develop field sales strategy
 Coordinate Field Sales
TTAE Negotiate with distributors in TT
Control contract implementation
National Sales Traditional Trade Control promo budget for TT
Director Activation Exec.
RSM  Negotiate with regional partners
 Develop & coordinate the team
MTAE Hunt for new clients in MT
Implement KA strategy
Regional Sales Modern Trade Control promo budget for MT
Manager Activation Exec.
TSM  Negotiate with SA partners
 Develop pricing policy MTE Control MT and distributors
contract implementation
Territory Sales  Zone distributors Modern Trade Control pricing and discounts
Manager Executive
 Develop regional trade Everything CSS does
RME marketing strategy
 Develop regional customer
SCSS Identify potential for new outlets
Develop exclusive sales force
Regional Marketing Senior Customer
Executive marketing strategy Sales Specialist Assess local retail universe
 Adapt trade marketing strategy Manage sales representatives
TME  Plan promo activities
 Negotiate with agencies
CSS Implement promo activities
Support distributors’
Territory Marketing Customer Sales
Executive  Control agencies’ performance Specialist businesses
Source: Case data, Sorrento analysis. 8

9. Sorrento Challenges Changes Structure Responsibilities Headcount Impact
Transformation will result in a more lean
structure with a total reduction of 25% FTEs
Current New
Food HPC Total Total
National Sales Director 1 1 2 1
Regional Sales Manager 3 3 6 3
Functions
Territory Sales Manager 15 15 30 15 transferred to
others, mostly
Distribution Supervisor 3 3 6 - MTEs and TTAEs
Regional Marketing Executive 3 3 6 3
Former CDAEs
Territory Marketing Executive - - - 15 now focus more
on sales rather
TT Activation Executive 16 16 32 32 than operations
MT Activation Executive 3 2 5 15
Opportunity for
MT Executive 29 30 59 30 selected MTEs to
be promoted to
Senior Customer Sales Specialist 47 35 82 65 MTAEs
Customer Sales Specialist 45 55 100 80 –26% FTE
∑ 165 163 328 244 –23% costs*
Food & HPC combined Food / HPC separate
*Including 20% salary increase for National Sales Director, Regional and Territory Sales Managers left after combining Food and HPC
TT = Traditional Trade; MT = Modern Trade; Traditional Trade Activation Executive = ~ex-CDAE
Source: Case data, Sorrento analysis. 9

10. Sorrento Challenges Changes Structure Responsibilities Headcount Impact
Implementation of Sorrento project will
allow to double sales in Euros by 2014
55% 30%
Market Inflation,
2=
growth RUB
Foo TME МТ
АЕ
19% 30%
dHPC
×3 Rate, Inflation,
in EUR * RUB/EUR EUR
15% 17% 15% 9% 9%
* We assume Cascade targets are set in Euros
Source: IMF, Переговорная №2, Sorrento analysis. 10

11. Sorrento
 Project summary
 Implementation plan
11

12. Sorrento Approach Team Schedule Opportunities Results
Sorrento implementation approach is
focused on ensuring business continuity
Priorities Activities
 Smooth transition for  Clear communication and
clients and employees stakeholder management
 Minimization of business  Comprehensive training
disruption risk  Providing new career
 Commitment to UL CBP* opportunities for talents
* Unilever Code of Business Principles
Source: Sorrento analysis. 12

13. Sorrento Approach Team Schedule Opportunities Results
The team should be structured in 3 groups
corresponding to project’s functional areas
Steering committee
 CEO
 VP Customer Development
 VP Human Resources
 Capability Building Director
 National Sales Director
PMO
 Project manager
 Administrator
Communication Training Reorganization
 PR Manager  HR Manager  HR Specialist
 PR Specialist  2 Trainers  2 Capability Building
 3 external assessors Specialists
 4 functional experts
(MT, TT, Food, HPC)
PMO = Project Management Office; VP = Vice-president; MT = Modern Trade; TT = Traditional Trade
Source: Sorrento analysis. 13

14. Sorrento Approach Team Schedule Opportunities Results
Implementation is structured in 3 phases
each with its own distinct goal
8 weeks 8 weeks 8 weeks
Jan 11 Mar 15 Apr 15 Jul 1
1. Organization 2. Initiation 3. Transformation
 Plan and prepare  NSD, RMS, TMS  MTE, SCSS, CSS
 Revise duties  Introduce TMEs  CDAEs → TTAEs
 -1 NSD  +10 MTAEs
Combine Food & HPC for position
NSD = National Sales Director; RSM = Regional Sales Manager; TSM = Territory sales manager; RME = Regional Sales Manager (ex-CME); TME = Territory
Sales Manager; TTAE = Traditional Trade Activation Executive (~ex-CDAE); MTAE = Modern Trade Activation Executive; MTE = Modern Trade Executive;
(S)CSS = (Senior) Customer Sales Specialist; DS = Distribution Supervisor
Source: Sorrento analysis. 14

15. Sorrento Approach Team Schedule Opportunities Results
The first phase will lay the groundwork for
change
Jan 1 Feb 1 Mar 1
BoD Meeting, dismiss 1 NSD
C-level
Set up PM team
Develop project plan
PMO
Assemble project workgroups
PR
Group Dev. of Communication Strat.
Training
Dev. of Training Program
Group
Dev. of new KPI System
Reorg.
Group
Consolidation of staff perform. data (CRM, KPI, etc)
Source: Sorrento analysis. 15

16. Sorrento Approach Team Schedule Opportunities Results
The second phase will introduce changes at
federal and regional level
Mar 1 Apr 1 May 1
C-level Video letter from NSD
PR Communication campaign (presentation, press-releases, news etc.)
Group
RSM Assessment
TSM Assessment
Training
Group TSM RSM FOOD+HPC Training
NSD TSM RSM Change Manag. Training
Recruiting and introduction of TME
Reorg.
Group
Source: Sorrento analysis. 16

17. Sorrento Approach Team Schedule Opportunities Results
The third phase will cover the hard work of
bundling HPC/Food and cutting headcount
May 1 Jun 1 Jul 1
MTE Assessments
MTAE Sales Force training
Training MTAE MTE HPC+FOOD Training
Group
S/CSS Assessments
S/CSS Training, E-learning
PMO, Communication and Administrative processes runs in the
background until the end of the project
Source: Sorrento analysis. 17

18. Sorrento Approach Team Schedule Opportunities Results
There will be several options for redundant
employees to stay with Unilever
NSD RSM TSM CDAE MTE SCSS CSS DS
Vacant positions
in Unilever and
outplacement
Relocation
abroad
Other position TME
in Field Sales
Promotion MTAE MTAE
NSD = National Sales Director; RSM = Regional Sales Manager; TSM = Territory sales manager; RME = Regional Sales Manager (ex-CME); TME = Territory
Sales Manager; TTAE = Traditional Trade Activation Executive (~ex-CDAE); MTAE = Modern Trade Activation Executive; MTE = Modern Trade Executive;
(S)CSS = (Senior) Customer Sales Specialist; DS = Distribution Supervisor
Source: Sorrento analysis. 18

19. Sorrento Approach Team Schedule Opportunities Results
In 6 months Field Sales will be a more
efficient unit ready for double-digit growth
 FTE -26%
 HR costs -23%
 Duration: 6 months
 Market share +3% in 3 years
 Sales revenue +100% in 3 years
 Implementation costs 550 000 EUR:
 Compensations 300 000 EUR
 Consultants 150 000 EUR
 Other 100 000 EUR
* Unilever Code of Business Principles
Source: Sorrento analysis. 19

20. That’s it
Questions, please!
Sorrento

21. Sorrento Backup
A risk mitigation plan will be developed in
December to address major project risks
Risk Impact Mitigation
Dismissed NSD leaves
Medium Engage NSD from EU
ungraciously
Plan communication strategy
Negative gossip spreads High
ahead
Regional staff structure Employ consultants to perform
High
becomes unbalanced sales force sizing
Excessive staff workload Low Increase headcount
* Unilever Code of Business Principles
Source: Sorrento analysis. 21