Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Day (November 2022)
20 slides from Hindustan Unilever's investor day presentation, Nov 18, 2022
Slide 1: 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 2: What you have heard so far
What you have heard so far India FMCG opportunity Clear and compelling strategy to win 2 Sensitivity: Public
Slide 3: Agenda for this session
Agenda for this session 1. Near-term operating environment and performance 2. Long-term value creation model 3 Sensitivity: Public
Slide 4: Agenda for this session
Agenda for this session 1. Near-term operating environment and performance 4 Sensitivity: Public
Slide 5: 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 6: 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 6 Sensitivity: Public
Slide 7: 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 8: 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 9: 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 10: 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 11: 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 12: Agenda for this session
Agenda for this session 2. Long-term value creation model 12 Sensitivity: Public
Slide 13: 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 13 Sensitivity: Public
Slide 14: 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 14 Sensitivity: Public
Slide 15: 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 15 Sensitivity: Public Source: India’s Population as per United Nations Departmen
Slide 16: 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’ 16 Sensitivity: Public
Slide 17: Capital discipline
Capital discipline Capex Working capital RoCE 2% -22 -18 -18 108% Capex % TO days Days days Figures for FY’22 17 Sensitivity: Public
Slide 18: 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 19: 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 19 Sensitivity: Public
Slide 20: Thank you
Thank you 20 Sensitivity: Public