Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Day (November 2022)
95 slides from Hindustan Unilever's investor day presentation, Nov 18, 2022
Slide 1: Exchange filing letter: Presentations at Capital Markets Day 2022
18th November, 2022 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra – Kurla Complex, Dal
Slide 2: Capital Markets Day 2022
Capital Markets Day 2022 Sanjiv Mehta, CEO & Managing Director Sensitivity: Public
Slide 3: India's largest FMCG company
India’s largest FMCG company ₹ 50,336 Crore 24.8% c.6 Lakh Crore FY’22 Turnover FY’22 EBITDA Market Cap. 90 Years of Corporate existence 9 out of 10 9 Million >21K Employees Households use our Outlets reached Employer of Choice products across sectors With deepest reach 2 Sensitivity: Public
Slide 4: Our enduring strengths
Our enduring strengths PORTFOLIO 50+ purposeful brands across 15 categories, Market leaders in >85% of our business RESEARCH & DEVELOPMENT Largest FMCG R&D in India with 700+ scientists, 20K patents globally DISTRIBUTION AND SUPPLY CHAIN Reach 9 million stores, >25% demand digitally captured, 60 bn
Slide 5: Wide and resilient portfolio
Wide and resilient portfolio We operate in 15 categories Foods & Category leadership in >85% of business Refreshment Beauty & 28% Personal Care 38% 50+ purposeful brands Home Care 16 brands with ₹10Bn+ Turnover 32% 5 digital-first brands With deepest reach Contribution% based on FY’22 Segment Revenu
Slide 6: Market leading positions across categories
Market leading positions across categories #1 in >85% of our business #1 #1 #1 #1 #1 #1 Fabric Wash Skin Cleansing Tea Skin Care & Cosmetics Hair Care Health Food Drinks #1 #1 #2 #2 #2 #2 Dishwash Ketchup & Soup Ice Cream Oral Care Coffee Surface Cleaning 5 Sensitivity: Public
Slide 7: Proven model of market development
Proven model of market development… Seeding Categories Access Physical Packs Reach Persuasive Consumer Communication Connects Market development at scale Sensitivity: Public 6
Slide 8: Crafting purposeful brands
…and crafting purposeful brands 19 New brands in last 10 years Multi-Year Engagement Platforms 7 Sensitivity: Public
Slide 9: Market development cells contributed 10K cr. to Turnover
FY’22 : Market development cells contributed 10K cr. to our Turnover Home Care Premium Hair Hand & Body Premium Skin Premium Colour Liquids Care Wash Care Cosmetics Matic Ice Cream Spreads and Green Tea Spice Tea Detergents (WiMI) Dressings 8 Sensitivity: Public
Slide 10: Perfect stores – Online and offline
Perfect stores – Online and offline Symphony : Fuel for growth 9 Sensitivity: Public
Slide 11: Portfolio transformation: more premium, more digital
Portfolio transformation : more premium, more digital Product Mix Channel Premium Digital c. 22% Demand Capture 0% FY’12 Digital Premium Demand c. 33% Capture >25% Current 10 Sensitivity: Public
Slide 12: Financial excellence
Financial excellence Symphony : Fuel for growth Capital discipline 108% -22 days ROCE Working capital Best in class benchmarks for Overheads, Manufacturing and Distribution costs Figures for FY’22 11 Sensitivity: Public
Slide 13: Strong track record of consistent performance
Strong track record of consistent performance Turnover EBITDA Market Cap. FY’22 FY’22 As on date >50K Crore >12K Crore c.6 Lakh Crore 2X 4X 6X vs. FY’12 vs. FY’12 vs. 31st March 2012 Long term value creation for all our stakeholders With deepest reach 12 Sensitivity: Public
Slide 14: Doing well by doing good
Doing well by doing good Climate & Waste Nature Social 94% 1.9 trillion litres 7 million Reduction in CO2 Emissions Cumulative Water potential created by HUF People reached through Prabhat (kg/tonne of production) in manufacturing initiatives on economic empowerment, operations vs 2008 environment s
Slide 15: India poised for growth
India poised for growth With deepest reach 14 Sensitivity: Public
Slide 16: Macro trends driving growth
Macro trends driving growth Favourable Fastest growing economy Urbanisation demographics India’s GDP Ranking 2020 6 2022 5 2027 3 >1 Bn Working class population Cities with 1 Mn population to 10 Mn will get added every year nearly double by 2030 With deepest reach Source: IMF GDP in Current prices 1
Slide 17: Rising affluence
Rising affluence Upward mobility in income to fuel consumption and.. …premiumisation 2017 2022 2022 Elite 2% 3% 27% Premium Popular Affluent 34% Popular Popular Aspirers Mass 39% Rest of the Mass Population Mass 16 Sensitivity: Public
Slide 18: Fundamentals for FMCG remain strong
Fundamentals for FMCG remain strong Low Penetration Under-indexed spends Rural opportunity MFD 25 Philippines $255 Face Wash Urban Rural Body Lotion Thailand $438 31% 69% Washing Liquids Share of population China $126 Dishwash Liquid $82 $27 Per Capita FMCG Consumption Hair Conditioner Indonesia $10
Slide 19: World is changing
World is changing Search for Un-stereotype Holistic Health Authenticity Hyper-personalisation With deepest reach E-everything Net Zero 18 Sensitivity: Public 18
Slide 20: Our winning strategy
Our winning strategy Purpose and Vision Long-term strategic choices Developing our portfolio Win with our brands powered by purpose and innovation Lead in the channels of the future Build differentiated structures and capabilities Our vision is to be a leader in sustainable business. We will demonst
Slide 21: Our ESG goals
Our ESG goals Accelerate diverse Pioneering new 100% plastic representation & inclusive models for flexible neutral Zero emissions in culture across organisation employment our operations by 2030 Double the number of products sold that deliver positive nutrition Ensuring a living wage or income to e
Slide 22: Developing our portfolio
Developing our portfolio Growing the Core Market Development Premiumisation Superior Products | More users | More benefits | Upgrading consumers to Purposeful communications More usage higher order benefits 21 Sensitivity: Public
Slide 23: Win with our brands powered by purpose and innovation
Win with our brands powered by purpose and innovation Superior product World class technology Purpose drives growth functionality Cutting edge technology Superior to competition Purpose drives leading to product superiority in blind tests brand power 22 Sensitivity: Public
Slide 24: Lead in channels of the future
Lead in channels of the future Digitising General Trade Design for Channel New routes to consumers 1 million Shikhar stores 50% packs D4C ready 14 D2C platforms Digitised demand capture now >25% 23 Sensitivity: Public D4C: Packs designed exclusively for eCommerce
Slide 25: Build differentiated structures and capabilities
Build differentiated structures and capabilities Winning in Many Indias Nakshatra : Future-fit supply chain network India Is Not One India! Closer to demand | Cost efficient | More agile, More digital | Capacity for growth 24 Sensitivity: Public
Slide 26: Build differentiated structures and capabilities
Build differentiated structures and capabilities Reimagine HUL Creating new competitive moats YESTERDAY Agile 5 Digital Innovation Hub Brands India’s 1st FMCG Lighthouse Factory (WEF) HUL’s Dapada Factory Nano Factories: 1 Mn Shikhar 14 D2C Supply chain for stores Platforms smalls TOMORROW 6 Nano fa
Slide 27: Build a purpose-led, future-fit organisation and growth culture
Build a purpose-led, future-fit organisation and growth culture Future-fit organisation Truly Inclusive Culture to outperform skills & Future proofing Igniting thehuman spark ways of working Microcosm of India for a better business & a better world 26 Sensitivity: Public
Slide 28: We have never been as strong, but our best is yet to come
We have never been as strong, but our best is yet to come Long Term Value Our Strengths Consumer & Customer Obsession Growth Mindset Deep Passion Owner’s Mindset High Dissatisfaction with Status Quo Performance Distinctive Anatomy Capabilities Humbition 27 Sensitivity: Public
Slide 29: Beauty & Personal Care, India
Tr a n s fo r m i n g B P C Beauty & Personal BEAUTY & PERSONAL CARE Care, India Sensitivity: Public
Slide 30: Powerhouse Business with Leading Market Positions
Powerhouse Business with Leading Market Positions Podium Positions across Consistent, Profitable Growth House of Mega Brands Categories 7 Iconic Brands with Turnover > 1000 Cr # 1 Skin Cleansing # 1 Skin Care 19.5k Cr 1.8 x Turnover Turnover in the FY’22 Last Decade # 1 Hair Care # 1 Colour Cosmetic
Slide 31: Unparalleled Scale: Highest Reach among Consumers & Customers
Unparalleled Scale | Highest Reach among Consumers & Customers Highest Penetration Most Loved Brands & Portfolio Highest Reach across Channels Serving 9 of 10 Households across Topmost Brands on Brand Power Categories 9/10 General Trade Stores 10/10 Modern Trade Stores 10 D2C Websites in BPC for Pre
Slide 32: Our Strategy to Win
Our Strategy to Win Competitive Turbocharge Lead Market Win in Channels Growth on Core Premiumization Development of the Future Grow 2x of Market in MT, Grow Ahead of Market Grow 2x of Market Pharma & Cosmetic | 4x in E- Commerce Enablers Winning in Many Impactful Advanced Digital Purpose & Indias I
Slide 33: Competitive Growth on Core | Our Key Mantras
Competitive Growth on Core | Our 3 Key Mantras Building Purposeful Brands & Multi Contemporizing Brands Building Sustainable business Year Engagement Platforms Keeping Pace with changing Less plastic, Better plastic, Clean consumer Ingredients & Sustainable Sourcing NDPE: No Deforestation, No Peat,
Slide 34: Based on Strong Fundamentals of Growth
Based on Strong Fundamentals of Growth Winning Products Winning Communication Winning in Many Indias Iconic Brands Winning 9/10 communications rated Consistent Penetration & Share vs. Competition highly effective Gain 33 Sensitivity: Internal
Slide 35: Turbo Charging Premiumization
Turbo Charging Premiumization SKIN CLEANSING: Transform portfolio from Core to Premium bars & driving format adoption Core Premiumization on Bars Accelerating Liquids adoption 34 Sensitivity: Internal
Slide 36: Turbo Charging Premiumization: Hair Care
Turbo Charging Premiumization Strengthening Leadership in Hair Care by Building a Premium Portfolio Highest Share in Hair Care in 2 Decades With a Swift Transformation of the Portfolio +400 bps in 3 years From 2016 2017 2018 2019 2020 2021 MAT 2022 L3M 2022 We are 3x of our Largest Competitors 35 Se
Slide 37: Turbo Charging Premiumization: Hair Care
Turbo Charging Premiumization Strengthening Leadership in Hair Care by Building a Premium Portfolio Highest Share in Hair Care in 2 Decades With a Swift Transformation of the Portfolio +400 bps in 3 years To 2016 2017 2018 2019 2020 2021 MAT 2022 L3M 2022 We are 3x of our Largest Competitors 36 Sens
Slide 38: Turbo Charging Premiumization: Skin Care
Turbo Charging Premiumization Skin Care Premiumization through Portfolio Transformation Existing Demand Space Emerging/On-Trend Demand Spaces # 1 Tone # 1 Hydration # 1 Sun Care # 1 Anti Ageing # 1 Holistic Glow Management Higher Order Benefits Emerging Formats 37 Sensitivity: Internal
Slide 39: Market Development: HUL is the Market Maker for Multiple Categories
Market Development | HUL is the Market Maker for Multiple Categories Building Category Penetration Podium Players in Building Categories Category Penetration Delta Pen* (Category) (U+R) Face Cleansing 22 2.6 x Body Lotion 14 2x Hair Conditioner 7 1.5 x # 1 Hair Conditioners # 1 Body Lotion # 2 Face
Slide 40: Market Development: Deploying Repeatable MD Model
Market Development | Deploying Repeatable MD Model Demos that Educate Offline | ~25 Mn Contacts Content that Educates Online | 5x Spends Home to Influencers Home & Content Right Assisted Beauty Experts at Point of Sale @ Scale Selling Pricing & Priced @ Right premium to Source of Growth Sampling 20
Slide 41: Breakthrough Technologies to Power the Transformation
Breakthrough Technologies to Power the Transformation AV – GAP Technology AV – Pro Lipid Technology 40 Sensitivity: Internal
Slide 42: Winning in Channels of the Future: Portfolio Designed for Shopper Needs
Winning in Channels of the Future | Portfolio Designed to address Shopper Needs Innovations & Portfolio Development designed for emerging channels Higher Order Benefits + Formats for Problem-Solution & Ingredient Leading Beauty Trends in Modern Trade & Ecom Led Portfolio for Pharma/Chemist Fancy/Cos
Slide 43: Winning with All Things Digital: Launching 5 Digital First Brands
Winning with All Things Digital | Premium Beauty Business Unit Launching 5 Digital First Brands Best In Class Digital Practices to Build Formidable Brands Building Portfolios Tapping into Emerging Masstige Diversifying Channel Play for Simple: D2C, Amazon, Demand Spaces Nykaa 2x Orders @ Half +230 B
Slide 44: Our Right to Win
Our Right to Win Iconic Brands & Portfolio in right Technology & Innovations to Win Developing Markets and Building Demand Spaces in Many Indias Categories High Focus on Digital & Enterprise World Class Execution in Channels Technology & with Shoppers Sensitivity: Internal 43
Slide 45: Look Great, Feel Great, Smell Great
XX LOOK GREAT, FEEL GREAT, SMELL GREAT 44 Sensitivity: Internal
Slide 46: Home Care: Value Creation via Category Development
HOME CARE VALUE CREATION VIA CATEGORY DEVELOPMENT HOME CARE Sensitivity: Internal
Slide 47: A Decade of Transformation
A DECADE OF TRANSFORMATION TURNOVER >RS. 16000 CR Turnover Profit Market Share 2.6X 7.3X +500BPS FY 2012-22 FY 2012-22 2012-22 46 Sensitivity: Internal
Slide 48: Underpinned by a Major Portfolio Shift
UNDERPINNED BY A MAJOR PORTFOLIO SHIFT LEADING PREMIUMIZATION VIA MARKET DEVELOPMENT HUL Portfolio Dish 11% 15% Premium #1 #1 #2 Laundry 31% 52% Mass Laundry 58% LAUNDRY DISHWASH SURFACE 33% CLEANING Volume Contribution 2010 2021 47 Sensitivity: Internal
Slide 49: Rising India: Significant Growth Opportunity
RISING INDIA : SIGNIFICANT GROWTH OPPORTUNITY HIGHER AFFLUENCE = MORE CATEGORY SPENDS EVOLVING CONSUMER NEEDS Spends on 2022 HC/year/HH MORE MACHINES Affluent++ 3% 2.6X MORE / NEW FABRICS Affluent 12% 2.1X MORE / NEW SURFACES Aspirers 29% 1.5X NEW CHANNELS Low income 56% X 48 Sensitivity: Internal
Slide 50: Our Strategy to Consistently Win
OUR STRATEGY TO CONSISTENTLY WIN PREMIUMIZE CORE MARKET DEVELOPMENT WIN IN CHANNELS PIONEER CLEAN FUTURE Making your home a better place I Making our world a better home 49 Sensitivity: Internal
Slide 51: Drivers of Premiumization & Market Development
DRIVERS OF PREMIUMIZATION & MARKET DEVELOPMENT PORTFOLIO BRANDS FUTURE FIT HOME CARE EXECUTION TECHNOLOGY 50 Sensitivity: Internal
Slide 52: Portfolio: Designed to Solve Consumer Pain Points
PORTFOLIO : DESIGNED TO SOLVE CONSUMER PAIN POINTS CONSUMER : WIMI PAIN POINTS GROWTH OPPORTUNITY PORTFOLIO DESIGN Price Index 2.0 Stain Colour Removal Protection Mal Odour Whiteness 150 CELLS 1.2 Freshness Yellowing 200+ PAIN POINTS 1.0 Washing Water Weather Fabric Pathway Quality Type Sensitivity:
Slide 53: Brands with Purpose: Surf Excel
BRANDS WITH PURPOSE Surf Excel, Poised to become HUL’s First $1 Bn brand 52 Sensitivity: Internal
Slide 54: Brands with Purpose: Vim
BRANDS WITH PURPOSE Vim, Kantar’s FASTEST Growing Brand of the Decade globally 53 Sensitivity: Internal *Source: Kantar’s ‘Brands of the Decade’ list at the Cannes Festival of Creativity 2022
Slide 55: Technology: To Drive Superiority
TECHNOLOGY : TO DRIVE SUPERIORITY BARS: POLYMER TECH Longer Lasting 54 Sensitivity: Internal
Slide 56: Technology: To Drive Superiority
TECHNOLOGY : TO DRIVE SUPERIORITY BARS: POLYMER TECH FAB CON: PRO CARE Longer Lasting Superior Fragrance & Care 55 Sensitivity: Internal
Slide 57: Execution: Scaled Deployment Models
EXECUTION : SCALED DEPLOYMENT MODELS DISTRIBUTED OPERATIONS INFRASTRUCTURE MARKET DEVELOPMENT AT SCALE HOME TO HOME SOCIETY CHANNEL SPECIFIC PORTFOLIO MULTI FORMULATION DIGITAL INSTORE CAPABILITY FACTORY LOCATIONS SALES OFFICES AGILE MANUFACTURING 56 Sensitivity: Internal
Slide 58: Execution: Designing for Channels
EXECUTION: DESIGNING FOR CHANNELS GT MT ECOMM UPRO 19 Refill 1.6 New 5 ml Pack Ltr Launch Ltr 5 155 250 750 1.8 Multi Pack Ltr ml ml ml Ltr 57 Sensitivity: Internal
Slide 59: Ready for Another Decade of 4G Growth
READY FOR ANOTHER DECADE OF 4G GROWTH HEADROOM TO GROW FUTURE FIT PORTFOLIO MARKET DEVELOPMENT CAPABILITY 70 MARKET VOL HUL VOL CONTRIBUTION SHARE TURNOVER UK >2000 60 50 14% 3.5X TURKEY CR INR CR Per Capita Spend/Buyer($) 40 BRAZIL CHINA MALAYSIA 30 18% 2.1X INDONESIA VIETNAM 1/10 20 INDIA 10 WASHI
Slide 60: Foods & Refreshment
Foods & Refreshment Srinandan Sundaram Sensitivity: Public
Slide 61: F&R: A Strong Business – Growing profitably
F&R: A Strong Business – Growing profitably Market Leadership Across Track Record of Profitable Growth Strong Portfolio of Brands Categories ₹ 14,105 Cr ₹ 2,623 Cr ~160 Bn FY’21-22 Turnover FY’21-22 Segment Margin #2 Servings Annually #2 Player Player Ice Coffee Cream #1 Player* Foods Tea #1 Player
Slide 62: Long-term Competitive Wins
Long-term Competitive Wins >450 bps >150 bps >350 bps >100 bps 1 2 Value Share Gain Period FY 2016 to MAT Sep 2022 1 HFD Share gain is MAT Sep 22 vs MAT Sep 21 2 Euromonitor Data 61 Sensitivity: Public
Slide 63: F&R Strategy
F&R Strategy Sensitivity: Public
Slide 64: F&R: A world class force for good
F&R : A world class force for good Grow CORE Market Development Winning in Channels of future Purposeful Brands & Superior Products New benefit Segments HFD to Nourish a Billion Lives Winning in Festivals & Seasons Capability & Sustainability 100% Sustainably Sourced Tea, Coffee, Dairy & Tomatoes Sc
Slide 65: F&R: Clear strategic priorities that are delivering
F&R : Clear strategic priorities that are delivering HFD Winning in Market Owning Capability & Grow CORE Nourishing Channels of Development Seasons Sustainability A Billion Lives future Contemporising brands Sustainably Sourced 5X eCom Growth 67% Tea 70mn +177 bps 3X H2H contacts Penetration Gain MT
Slide 66: F&R Category Performance Update
F&R Category Performance Update Sensitivity: Public
Slide 67: Tea: Winning Competitively on back of a Three-pronged Strategy
Tea: Winning Competitively on back of a Three-pronged Strategy Upgrading to Premium Tea’s Upgradation from Loose to Strengthening the Core New Benefit Segments Packaged Loose Tea is ~30% of India market 129 128 Winning in 117 State of the 113 Many India 109 108 art R&D and approach 112 Science 104 1
Slide 68: Foods: Well on a journey of Portfolio Transformation
Foods: Well on a journey of Portfolio Transformation Extending into adjacent & Seeding New Demand Spaces Future Fit Core Investing in Innovations high energy spaces for Unilever Food Solutions >10% MT Value Share >15% Value Share in South 125 100 98 98 High Double Digit Apr-Sep'19 Apr-Sep'20 Apr-Sep
Slide 69: Ice Cream: Long Term Secular Growth Opportunity
Ice Cream: Long Term Secular Growth Opportunity Increasing Occasions Wining Portfolio In-home Consumption Huge Headroom In India New Formats; Owning Addressing all need states Right portfolio through IC NOW Festivals Per Capita Consumption Super Premium >₹90 per Serve 7X Turkey Premium ₹40-90 per Se
Slide 70: HFD: Strengthening business fundamentals
HFD: Strengthening business fundamentals Strengthened Brands Increased Physical Reach Increased Mental Reach Direct Coverage 3.0X HFD TV GRP’s 1.4X 1.5X 1X Numeric Dist. 1.3X E-Com 11X 2019-20 2020-21 2021-22 Run Rate Sep’22 vs. pre day 1 > +200bps 103 > +200bps 21.9% 21.8% 101 19.7% 20.1% 20.0% 100
Slide 71: Bringing in More Users and More Occasions
Bringing in More Users and More Occasions Market Development at Scale Building Salience through Creating Segments of Future Driving rapid trials persuasive communication 46.5 22.9 0.0 2019 2021 2022 Plan Consumer Connects (Mn) 70 Sensitivity: Public
Slide 72: Accelerating HFD consumption in an Inflationary Environment
Accelerating HFD consumption in an Inflationary Environment Increased Cost of End Cup has impacted Affordability Innovating Solutions Category Consumption At both ends of the spectrum For Price as well as Convenience HFD Market Growth – L3M 6% 4% 2% 0% -2% -4% SQ21 DQ21 MQ22 JQ22 SQ22 JUST MICRO- Lo
Slide 73: Making Sustainable Living Common Place
Making Sustainable Living Common Place Regenerative Agriculture Bringing Sustainability to Life Sustainably Sourced Tea, Tomato’s & Chicory 72 Sensitivity: Public
Slide 74: Delivering Superior Value
Delivering Superior Value Ritesh Tiwari – Chief Financial Officer Winning in the New Decade Capital Markets Day – 18th November 2022 Sensitivity: Public
Slide 75: What you have heard so far
What you have heard so far India FMCG opportunity Clear and compelling strategy to win 74 Sensitivity: Public
Slide 76: Agenda for this session
Agenda for this session 1. Near-term operating environment and performance 2. Long-term value creation model 75 Sensitivity: Public
Slide 77: Agenda for this session
Agenda for this session 1. Near-term operating environment and performance 76 Sensitivity: Public
Slide 78: Operating environment remains challenging
Operating environment remains challenging Commodities at historic highs Subdued FMCG markets Nielsen FMCG* Market Growth MAT Sep’22 100% 10% 5% 50% Total Rural 0% 0% Total Rural -50% -5% Brent Palm Fatty Soda Ash Barley Tea Polyethylene Crude Acid Distillate 10 Yr. Max & Min vs Median Market Price (
Slide 79: Navigating deftly through dynamic financial management
Navigating deftly through dynamic financial management Pricing agility and Net Symphony Savings Program Investing in our Brands Revenue Management net revenue management Highest market share gains in the decade whilst ensuring healthy EBITDA margin 78 Sensitivity: Public
Slide 80: Pricing agility and Net Revenue Management
Pricing agility and Net Revenue Management Stepping up Pricing 12% 12% Strategic 10% Pricing 8% 7% Jarvis Price – Pack Price Volume Architecture SQ-21 DQ-21 MQ-22 JQ-22 SQ-22 optimiser net revenue management Seamless Execution Sweating Trade Spends Max the mix >2000 Pricing networks landed in last 1
Slide 81: Symphony: Delivering fuel for growth
Symphony : Delivering fuel for growth Savings across all lines of P&L Best in class benchmarks for overheads Employee cost and other expenses 40% % Turnover Import Supplier Strategic Localisation Harmonisation stocking 20% Packaging BOLT* Debottlenecking 0% Specs End to End thinking Owner’s mindset
Slide 82: Investing in our brands: Share of voice ahead of share of market
Investing in our brands : ‘Share of voice’ ahead of ‘share of market’ 8 HUL brands in Award winning India’s most valued brands marketing campaigns Delivering hygiene one meal at a time Won Most awarded 3 of world’s most Won 7 Source: KANTAR BRANDZ 2022 Most Valuable Indian Brands report Silver award
Slide 83: Delivering 4G growth
Delivering 4G growth Competitive Consistent Profitable Responsible Value Growth Turnover Growth EPS Growth Sustainability (MAT September’22) 20% Score 19% 16% 17% 11% 11% 11% 76 10% 9% 9% A SQ'21 DQ'21 MQ'22 JQ'22 SQ'22 SQ'21 DQ'21 MQ'22 JQ'22 SQ'22 FMCG Market HUL *Source FMCG Growth : Nielsen mark
Slide 84: Near-term focus
Near-term focus Competitive Growth Build-back Gross Margin Stepping up A&P Gross Margin 51% 51% 49% 46% 45% FMCG Market HUL SQ'21 DQ'21 MQ'22 JQ'22 SQ'22 Growth ahead of the market: Bridge Price vs Cost gap >75% business winning shares Focused on growing our consumer franchise whilst protecting our
Slide 85: Agenda for this session
Agenda for this session 2. Long-term value creation model 84 Sensitivity: Public
Slide 86: Consistent multi-year performance
Consistent multi-year performance 10 Year track record Turnover Volume EBITDA% 9% 5% +1000 CAGR CAGR bps ₹ EPS Cash Dividends 12% 12% ₹ 55K CAGR CAGR Crore 85 Sensitivity: Public
Slide 87: Creating long-term value for our shareholders
Creating long-term value for our shareholders Growth Profit Capital Velocity EPS Competitive growth Modest margin Efficient use of Double digit EPS ahead of market expansion capital growth Delivering long-term value creation 86 Sensitivity: Public
Slide 88: Growth algorithm
Growth algorithm Grow the core ahead of Market development and Prudent M&A market Premiumisation Contemporising the Core 2X Growth of Core Future growth spaces Our growth model starts with consumers, all 1.4 bn of them 87 Sensitivity: Public Source: India’s Population as per United Nations Departmen
Slide 89: Driving profitable growth: Modest EBITDA margin expansion
Driving profitable growth : Modest EBITDA margin expansion Positive mix from Premiumisation Leverage from growth Price - Benefit Turnover INR Crores Overheads Time Whilst Symphony continues to deliver ‘Fuel for Growth’ 88 Sensitivity: Public
Slide 90: Capital discipline
Capital discipline Capex Working capital RoCE 2% -22 -18 -18 108% Capex % TO days Days days Figures for FY’22 89 Sensitivity: Public
Slide 91: Capital allocation principles support our growth algorithm
Capital allocation principles support our growth algorithm Invest in business Growth enhancing M&A Returns to shareholders Brands & Innovation Future growth spaces Steady stream of dividends Capabilities & Sustainability Complimentary capabilities Maintain high payout ratio Capex for growth and Bolt
Slide 92: In summary: Delivering superior value
In summary : Delivering superior value ❑ Clear and compelling strategy ❑ Strong Right to Win ❑ Proven Financial Growth Model ❑ Track record of consistent multi-year performance 91 Sensitivity: Public
Slide 93: Thank You
Thank You Sensitivity: Internal
Slide 94: Reimagine HUL: Our Journey to an Intelligent Enterprise
Capital Markets Day 2022 p Reimagine HUL : Our Journey to an Intelligent Enterprise 1. Digital Impact on Indian Landscape India is undergoing a rapid transformation underpinned by digitization. It has over 800 Million internet users with over 90% of them accessing data wirelessly. Enabled by low dat
Slide 95: Consumer Engagement Platform
- Consumer Engagement Platform: We have built multiple interconnected platforms that span the consumer journey from consideration to purchase. This covers the gamut from content hubs (Be Beautiful, Cleanepedia), consumer trial (Smartpick), and purchase (Direct to Consumer, Ecommerce) layered with co