Pt Unilever Indonesia Tbk · IDX:UNVR
Pt Unilever Indonesia Tbk — J.P. Morgan ASEAN CEO-CFO Forum 2022
33 slides from Pt Unilever Indonesia Tbk's conference presentation, September 2022
Slide 1: PT Unilever Indonesia Tbk. - J.P. Morgan ASEAN CEO-CFO Forum 2022
PT Unilever Indonesia Tbk. J.P. Morgan ASEAN CEO-CFO Forum 2022
Slide 2: Safe Harbour Statement
Safe Harbour Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar
Slide 3: Unilever Indonesia, Strategic Priorities, Business Performance
1. Unilever Indonesia 2. Strategic Priorities 3. Business Performance *Unilever Indonesia Green Office Space
Slide 4: Unilever Indonesia: years unwavering commitment to grow with Indonesia
Unilever Indonesia: 88 years unwavering commitment to grow with Indonesia $ 2.8 Bn Turnover FY 2021 100% Penetration Multi-category Leaderships There is at least one ULI product in every 43 Brand Citadels Indonesian Household that reach >3 million stores in Indonesia (80% distribution) and market le
Slide 5: Our Differentiating Strengths: Scaled Brands Across Categories
Unilever Indonesia: Our Differentiating Strengths 1. Scaled Brands Across Categories Market Leader 67% in 13 out of 15 categories UL categories with market share >40% US$ 2.0 Bn 15 Brands are part of from our top 15 brands Kantar Indonesia’s Top 100 in 2021(77% contribution) Most Chosen Brands 5
Slide 6: Our Differentiating Strengths: Purpose-led and Inclusive Talents
Unilever Indonesia: Our Differentiating Strengths 2. Purpose-led and Inclusive Talents 8 years 79% #1 Employer of of senior leadership team Choice starts as MT in ULI 44% The Culture middle-senior management Resilient, are female. Winner Mindset, Full gender-balance at BOD Committed to Diversity & l
Slide 7: Our Differentiating Strengths: Sustainability at our Core
Unilever Indonesia: Our Differentiating Strengths 3. Sustainability at our Core 145% 3Mn Plastic Waste Collected & people reached through Recycled in 2021 vs Target health, wellbeing, and women empowerment (45k ton vs 31k ton target) programs in 2021 Strategy >70% fully embedded in of our Brands are
Slide 8: Our Vision and Ambition by 2025
OUR VISION To earn the love and respect of every Indonesian by positively impacting their life everyday, everywhere CAGR +6% vs 4.5% 15-19, -8% LV OUR AMBITION BY 2025 TurnoverContinue to be #1 Market Position EUR Growth3Bn Market market leader in 2.4Bn in 2021 FMCG Above vs Indonesia with Position
Slide 9: Our Strategy to Unleash the full potential of Indonesia
Unilever Indonesia Our Strategy to Unleash the full potential of Indonesia
Slide 10: Unleashing the Full Opportunity of Indonesia
Unleashing the Full Opportunity of INDONESIA GDP will continue strong with c.5% pa until 2025, driven by private consumption and investment Inflation will remain around 3-4%, continue to be below peer countries c.70% of the population in the cities by 2030 producing 86% of GDP Indonesia digital econ
Slide 11: The Country with huge room for FMCG growth
The Country with huge room for FMCG growth Massive Market Development Indonesia consumption today in Core categories is only 2/3 of other markets Opportunities like Thailand 53% Middle-Upper Class by 2025 (vs 49% today) with more affluent consumers seeking new and higher benefit Two-Speed Economy Lo
Slide 12: Five Strategic Priorities
•Five Five Strategic Strategic PrioritiesPriorities To Deliver Strong Long-term Business Performance 1. Growing Core with Impactful Innovation & Market Development Agenda 12
Slide 13: Winning with Stronger Core
Winning with Stronger Core STRONGER CORE 40% growth contribution from New Innovations to Total ULI. TOP 15 BRANDS 56% of core turnover tested winning vs competition 77% Turnover Cont. Solid Growth with 6.3% USG in H1 2022 5 out 15 Brands with Market Share > 40% 13
Slide 14: Market Development Across Pillars
Market Development Across Pillars More Users More Usage More Benefit 8 categories where UL plays Indonesia Consumption per have =< 60% Category Penetration Household in Core Categories is only Liquid Soap, Body Care, Deo, Face, IC, Juice, 2/3 of Thailand Toilet Cleaners 14
Slide 15: Five Strategic Priorities
•Five Five Strategic Strategic PrioritiesPriorities To Deliver Strong Long-term Business Performance 1. 2. Growing Core with Develop our full Impactful Innovation & portfolio across Market Development consumers' segment Agenda 15
Slide 16: Play Full Portfolio
Play Full Portfolio DRIVE High Growth Space. 200Mn EUR Incremental Revenue by 2025 PREMIUMIZATION Rising mid-upper consumers, which will be 53% of population (vs today 49%), and seek for benefits beyond affordability Secure the price competitiveness through innovation and price/pack. SERVE VALUE SEG
Slide 17: Five Strategic Priorities
•Five Five Strategic Strategic PrioritiesPriorities To Deliver Strong Long-term Business Performance 1. 2. Growing Core with Develop our full 3. Impactful Innovation & Build the execution portfolio across Market Development powerhouse consumers' segment Agenda 17
Slide 18: Build the execution powerhouse
Build the execution powerhouse WINNING IN THE CORE CHANNELS WITH EXCELLENT EXECUTION LEADING IN CHANNEL OF FUTURE Win in Modern Trade (MT), Lead & Turbocharge Future-Fit Distributive Trade (DT) (especially Minis) E-commerce E-commerce will be 15-16% of total FMCG A collaborative partnership channel
Slide 19: Future Fit Distributive Trade
Future Fit Distributive Trade Market Leadership Key Strategies in DT 40% Corporate Value Share in General Trade (GT) with 7 categories has share > 40% 60% Corporate Distribution in GT, with universe of 3mn GT stores in Indonesia. Portfolio Designed for A collaborative partnership GT Shoppers 600+ Di
Slide 20: Lead in the channel of the future
Lead in the channel of the future Key Strategies in Digital Commerce ULI e-Commerce +91% H1 2022 Growth eCom contribution Designed for E-comm Portfolio Create & Capture Demand Execution Excellence 20
Slide 21: Five Strategic Priorities
•Five Five Strategic Strategic PrioritiesPriorities To Deliver Strong Long-term Business Performance 1. 2. 4. Growing Core with Develop our full 3. E-everything, including Impactful Innovation & Build the execution portfolio across Data Driven Market Development powerhouse consumers' segment Capabil
Slide 22: Integrated End to End & Digitized Operation system
Integrated End to End & Digitized Operation system Forecasting Machine Learning Click to add text End to End Customer Portal (order, payment, tracking) Insight & Intelligent (data - based) 22
Slide 23: Five Strategic Priorities
•Five Five Strategic Strategic PrioritiesPriorities To Deliver Strong Long-term Business Performance 1. 2. 4. Growing Core with Develop our full 3. E-everything, including Impactful Innovation & Build the execution portfolio across Data Driven Market Development powerhouse consumers' segment Capabil
Slide 24: Leading in Sustainability
Leading in Sustainability UNILEVER SUSTAINABLE LIVING PLAN Improve Health, Hygiene and Well Reducing Environment Impact Enhancing Livelihoods for Millions Being of Indonesia In 2021, we reached at least 3 Mn people to improve OUR COMMITMENT BY 2025 health, hygiene, and wellbeing through our brands.
Slide 25: Unilever Indonesia Business Performance
Unilever Indonesia Business Performance
Slide 26: Strong performance in the first half of 2022
Unilever Indonesia: Strong performance in the first half of 2022 Sales Growth Gross Margin Net Profit Margin Growth of Net Sales Reported GM Reported Net Profit Margin Q2 2022 +7.4% Q2 2022 47.7% 13.3% Q2 2022 IDR 10.6 T ($0.7 B) -133 bps -36 bps H1 2022 +6.4% H1 2022 48.2% H1 2022 16.0% IDR 21.5 T
Slide 27: A strong start by delivering +7.8% YoY in Domestic Sales Q2 2022
A strong start by delivering +7.8% YoY in Domestic Sales Q2 2022 Result Summary Vol Growth in USG UPG UVG unit USG -7.4% -6.6% -8.0% -10.0% 5.8% 7.8% Q2 2022 +7.8% +14.8% -6.1% 7.7% H1 2022 +6.8% +12.3% -4.9% 6.6% • A solid quarter with a strong topline (domestic sales) and bottom line. UPG • Landin
Slide 28: Unilever Indonesia: Profit & Cashflow
Unilever Indonesia: Profit & Cashflow Strong cashflow Net Profit H1 EPS H1 delivery in H1 IDR 3.4 T ($240m) +12.6% + IDR 1.9 T +12.6% REPORTED* ($134m) *Include One-Off Adjustment from 2021 Central Service Fee Maintain profit despite high inflation and stepping up in brand investments 28
Slide 29: 2022 Domestic Sales Growth by Division
2022 Domestic Sales Growth by Division BEAUTY & PERSONAL FOODS & UNILEVER FOODS HOME CARE CARE REFRESHMENT SOLUTION Q2 YoY 10.7% Q2 YoY 2.3% Q2 YoY 7.5% Q2 YoY 16.5% H1 YoY 8.7% H1 YoY 1.4% H1 YoY 7.5% H1 YoY 21.0% TOTAL HPC TOTAL F&R Q2 YoY USG 7.7% | H1 YoY 6.0% Q2 YoY 8.0% | H1 YoY 8.2% 29
Slide 30: Commodity prices remain high: action plans
Commodity prices remain high: higher cost impact to P&L in H2’22 Sequentially more inflation ahead Net Material Inflation Index vs Q3’21 UPG% 0% 2% 10% 15% Selected new price increase only ACTION PLANS ACCELERATE MATERIAL SAVINGS PRICING WHERE APPLICABLE UNLOCK NON-MATERIAL SAVINGS 30
Slide 31: Advertising investments increased by 64% Q2 YoY, 39% H1 YoY
Continue stepping up in advertising spending as our commitment to put right level of investment behind our brands Advertising investments increased by 64% Q2 YoY, 39% H1 YoY 31
Slide 32: Looking ahead: Our focus in 2022
Looking ahead Our FOCUS in 2022 View of H2 2022 remains the same We remain cautiously optimistic in the near term: Continuing growth momentum and hunt for competitive growth Normalization of economic activities and mobility Invest for growth while Impact of Inflation managing inflationary pressure C
Slide 33: Thank you
Thank you Ira Noviarti (CEO), Enny Sampurno(Director)
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