Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Merger or Acquisition (December 2018)
19 slides from Hindustan Unilever's merger presentation, Dec 3, 2018
Slide 1: Investor Presentation cover letter to stock exchanges
Hindustan Unilever Lomited dindustan Unilever United Unilever House B D Sawant Marg Chakala, Andheri East Mumbai 400 099 3rd December, 2018 Tel: +91 (22) 3983 0000 Web: www.hui.co.in CIN: L15140MH1933PLC002020 Stock Code: BSE: 500696 NSE: HINDUNILVR ISHN: INEO30A01027 BSE Limited, National Stock Exc
Slide 2: Hindustan Unilever 03 DEC 2018
Hindustan Unilever 03 DEC 2018
Slide 3: 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 4: Hindustan Unilever Limited: Rs.350bn+ powerhouse
Hindustan Unilever Limited : Rs.350bn+ powerhouse HUL performance Our footprint Recognition ‘Dream Employer’ for 9 10% CAGR over years in a row among 10 years* top Indian universities Nearly every household uses one or more of our brands 530 bps EBIT improvement #8 Globally and #1 in India Among the
Slide 5: Consistent high performance across Divisions
Consistent high performance across Divisions Beauty & Personal Care Home Care Foods & Refreshment 47% 33% 19% Segment Revenue Growth* Segment Revenue Growth* Segment Revenue Growth* 12% 16% 13% 26% 18% 18% Segment Margins Segment Margins Segment Margins No1 Beauty & Personal Care No1 Home Care No1 T
Slide 6: F&R India – High growth opportunity with healthy margins
F&R India – High growth opportunity with healthy margins Segment Revenue ~Rs.65 BN Strong Market Positions Segmental margin 15% No.1 Tea Company in India Last 6 Years Turnover^ Profitability^ 1.8x 2.0x Financial Performance for FY18 5 ^Nos are basis internal management reporting & compared with FY’1
Slide 7: Our F&R Strategy
Our F&R Strategy Grow existing Pivot business to high business faster growth categories Building brands through purpose Accelerate white spaces organically Relevant and deeper product insights Build white spaces through acquisitions Invest in Market Development 6 6
Slide 8: A Unique Opportunity to Acquire the #1 HFD Portfolio in the Largest HFD Market Globally
A Unique Opportunity to Acquire the #1 HFD Portfolio in the Largest HFD Market Globally Most Trusted Brands #1 in hot beverage category #1 Player in India HFD nationwide(3) by sales (1) Boost #3 consumer brand in South India(3) Broad Portfolio of Nourishing Malt-based Drinks ~Rs. 42Bn Turnover with
Slide 9: With Strong Structural Demand Drivers
With Strong Structural Demand Drivers Population age distribution (1) 37% Expected category growth at 9%(4) Large and 33% 31% young 1.3bn in 2017 +9% population CAGR 0-19 20-39 >40 INR Rising affluence (2) 119 bn 2% +6% 5% Rising Elite 6% 11% CAGR Affluent 15% affluence 20% +16% Aspirers and 45% CAG
Slide 10: And huge potential for market development
And huge potential for market development Opportunity across Strong clinical claims Low penetration (1) consumer segments Specific health needs Taller, Stronger, Premium Super Sharper 24% Healthier Blood Life Stages Premium Overall penetration Better Concentration More Muscles Everyday nourishment H
Slide 11: HUL can unlock significant synergies
HUL can unlock significant synergies Growth Cost Drive Penetration Operational improvement Supply Chain opportunities Upgrade and Premiumize Go-to-market and distribution network optimization HUL distribution multiplier Scale efficiencies in areas such as Advertising Unlock North & West Overhead and
Slide 12: Driving Market Development in categories with low penetration
HUL a FMCG Power-House with Right-to-Win and proven track record Driving Market Development in categories with low penetration Powered by education demos and sampling 8x increase in consumer connects Segments of Future growing at >HUL average X Consumer 8X contacts 2014 2017 11
Slide 13: Driving Premiumisation
HUL a FMCG Power-House with Right-to-Win and proven track record Driving Premiumisation Secular trend of premiumization Example : Tea HUL share 2017 of segment* Premium 200k ton market 28% 1.3x HUL Share: 2.5X Popular 300k ton market 39% 1.2x HUL Share: X Loose 33% x 400k ton market HUL Share: Nil *
Slide 14: Transformative Customer Development capabilities
HUL a FMCG Power-House with Right-to-Win and proven track record Transformative Customer Development capabilities 3x Boost to Direct Coverage HUL Capabilities Demand Capture Right outlets, Right frequency, Right More Stores Democratize Ordering assortment More Assortment More Stores under and Direct
Slide 15: Generating fuel for growth
HUL a FMCG Power-House with Right-to-Win and proven track record Generating fuel for growth End-to-end cost Savings as a % of Turnover EBITDA as % of Turnover focus 1.7x 21% x 16% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 14
Slide 16: HUL can unlock significant synergies
HUL can unlock significant synergies Growth Cost Drive Penetration Operational improvement Supply Chain opportunities Upgrade and Premiumize Go-to-market and distribution network optimization HUL distribution multiplier Scale efficiencies in areas such as Marketing Unlock North & West Overhead and A
Slide 17: Transaction Overview
Transaction Overview • GlaxoSmithKline Consumer Healthcare Limited (GSK CH India) to merge with HUL in an all equity merger Proposed • Brands owned by GSK CH India (Boost, Viva and Maltova) to be retained by merged entity Transaction • Horlicks Brand in India and International markets* currently own
Slide 18: Summary
Summary ✓ Acquisition “On-Strategy” , leveraging the Mega-Trend of Health & Wellness ✓ Iconic brands combined with HUL capabilities will unlock significant growth opportunities ✓ Share Swap Ratio: 4.39 HUL shares for every 1 share held in GSK CH India ✓ Transaction value accretive for HUL shareholde
Slide 19: Thank you – For more information
ForTHANK more YOU information & updates For More Information If you're an institutional investor: contact our IR Team Investor.Relations-hul@unilever.com All other shareholders: contact Corporate Communications Prasad Pradhan at P.Pradhan@unilever.com 18
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