Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Kotak Chasing Growth 2021
39 slides from Hindustan Unilever's conference presentation, Feb 23, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation
23rd February, 2021 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: Winning the New Decade
WINNING THE NEW DECADE Sanjiv Mehta, Chairman & Managing Director Hindustan Unilever Limited 23rd February, 2021 Sensitivity: Internal
Slide 3: Safe Harbor Statement
SAFE HARBOR 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 e
Slide 4: India's Largest FMCG Company
INDIA’S LARGEST FMCG COMPANY 3 Sensitivity: Internal 3
Slide 5: 130+ Years of Proud History in India
130+ YEARS OF PROUD HISTORY IN INDIA Sunlight soap Indian subsidiaries Unilever increases consolidated under HUL - GSK CH merger introduced stake in HUL to 67% to India Hindustan Lever Limited 1888 1931 1956 2007 2013 2018 2020 Unilever sets up HLL renamed as HUL market cap subsidiary in “Hindustan
Slide 6: A $6BN Powerhouse
A $6BN POWERHOUSE OUR FOOTPRINT RECOGNITION 9 out of 10 ‘Employer of Choice’ in the industry households for 12 years in a row use one or more of our brands Most Innovative Companies Our brands are available in 8 mn+ stores #8 Globally #1 in India 21,000 14 HUL brands Employees working across 31 in I
Slide 7: Category Leadership in >90% of Our Business
CATEGORY LEADERSHIP IN >90% OF OUR BUSINESS #1 #1 #1 #1 Skin Skin Hair Fabric Cleansing Care Care Wash #1 #1 #1 #1 Household Health Food Tea Ketchup Care Drinks Sensitivity: Internal 6
Slide 8: Market Maker Over Decades
MARKET MAKER OVER DECADES Upgrading bar users to powder Simplifying utensil cleaning 1959 1988 1998 2004 2007 2016 India’s 1st Mass Detergent Cosmetic Brand Water Purifier Launch of Hair Acquisition of Powder of Choice Conditioners Indulekha 1975 1995 2003 2006 2010 2020 Skin Cream Merger with Kwali
Slide 9: Performance Over the Last Decade
PERFORMANCE OVER THE LAST DECADE CONSISTENT GROWTH PROFITABLE GROWTH HIGH CAPITAL EFFICIENCY > ₹ 20K CRORE TURNOVER ADDED 103.7% 128.5% FY FY 2009-10 2019-20 9% CAGR 890 bps Best in CLASS Sales growth* EBITDA improvement^ ROCE sustained CONSISTENT TRACK RECORD OF HIGH PERFORMANCE *On comparable basi
Slide 10: Leading Value Creation
LEADING VALUE CREATION 900% 600% 300% 0% Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 HUL BSE FMCG SENSEX Market $ 13 bn 5.2X $ 70 bn capitalisation 2011** Current* + $57 bn *Market capitalization as on 22nd February 2021 and converted to USD based on reference rate o
Slide 11: India's Potential
INDIA’S POTENTIAL Sensitivity: Internal
Slide 12: India Is a Land of Opportunities
INDIA IS A LAND OF OPPORTUNITIES 5TH LARGEST ECONOMY RISING AFFLUENCE YOUNG AND VIBRANT 2019 GDP ($ trn) US 21.4 China 14.3 Japan 5.1 Germany 3.9 India 2.9 UK 2.8 France 2.7 Italy 2.0 Brazil 1.8 Canada 1.7 1.4 bn people Income Pyramid is 2/3rd are millennials/ gen Z 3rd largest on PPP terms BECOMING
Slide 13: India Is Open for Business
INDIA IS OPEN FOR BUSINESS LANDMARK REFORMS ATTRACTING CAPITAL BUILDING INFRASTRUCTURE Highway construction Power deficit 0.7% ~30 km/ day (down from 4.5% in 2014) • Ease of doing business rank improved +79 • Corporate tax rates reduced to 25% • Production linked incentive ₹1.97 trn Source: Ease of
Slide 14: India's Evolving Digital Ecosystem
INDIA’S EVOLVING DIGITAL ECOSYSTEM SMART PHONE MOBILE BANKING INTERNET USERS MONTHLY DATA USAGE PENETRATION TRANSACTIONS 36% 700mln 12GB ₹ 8000 mln pm INDIA STACK INDIA HEALTH STACK CONSUMER APPS/ PORTALS HEALTH PROVIDER APPS/ PLATORMS GOVT & PRIVATE Private Public Other HIMS/ Other Innovation Secto
Slide 15: Changing Face of Indian Consumers
CHANGING FACE OF INDIAN CONSUMERS INDIA CULTURE PULSE 14 Sensitivity: Internal
Slide 16: FMCG Has Huge Headroom for Growth
FMCG HAS HUGE HEADROOM FOR GROWTH LOW PENETRATION LOW CONSUMPTION LOW PREMIUMIZATION Indian FMCG Market Price Hand Wash 35 Segmentation 2019** MFD Instant Coffee India X Premium 29% Face Wash Body Lotion Indonesia 2X Washing Liquids 42% China 4X Mid Dishwash Liquid Soup Hair Conditioner FMCG per cap
Slide 17: Building a Future-Fit HUL with Purpose at Core
BUILDING A FUTURE-FIT HUL WITH PURPOSE AT CORE Sensitivity: Internal
Slide 18: Purposeful Brands Strengthening Our Market Leadership
PURPOSEFUL BRANDS STRENGTHENING OUR MARKET LEADERSHIP HAIR CARE FABRIC WASH TEA CAGR 9% CAGR 9% CAGR 9% 4X Market Share Profitability CY14 CY19 ~470 bps CY14 CY19 CY14 CY19 Sensitivity: Internal 17
Slide 19: Being Human
BEING HUMAN HOLISTIC WELLBEING PIONEERING GROWTH CULTURE LEADERS BUILDING LEADERS Nurturing future leaders Curated personalized learning People with Physical and mental purpose wellbeing Talent immersions Policy to protect employees from domestic abuse Cross-laning WE LOOK AFTER OUR PEOPLE AND THEY
Slide 20: Diverse and Inclusive
DIVERSE AND INCLUSIVE GENDER BALANCE LGBTQ+ INCLUSION BREAKING STEREOTYPES 42% managers are women HUL has been recognized as a GOLD +2200 bps employer within the 2020 India improvement in gender balance Workplace Equality Index by Stonewall in last 10 years Gender Balance: 2020 vs 2010 Sensitivity:
Slide 21: Making Sustainable Living Commonplace
MAKING SUSTAINABLE LIVING COMMONPLACE SUSTAINABLE BECOMING PLASTIC HEALTH AND ENHANCING WATER SOURCING NEUTRAL WELL-BEING LIVELIHOODS Hindustan Unilever >30 million person days >150 million employment generated by Foundation (HUF) >67% Plastic recyclable* 76% Tomatoes** people impacted till date HUF
Slide 22: Future-Fit HUL
FUTURE-FIT HUL Sensitivity: Internal
Slide 23: Accelerate: Creating Categories of the Future
CREATING CATEGORIES OF THE FUTURE THROUGH MARKET DEVELOPMENT DRIVE CATEGORY EXPANSION ACROSS POWERED BY CONSUMER MORE BENEFITS PENETRATION SEGMENTS CONNECTS EXPLODE More benefits ACCELERATE SEED Rising income Increasing penetration in Building liquids portfolio Foraying into body wash and 5X scale u
Slide 24: Leading with Impactful Innovations
LEADING WITH IMPACTFUL INNOVATIONS CAPTURING HIGH GROWTH SPACES Sensitivity: Internal 23
Slide 25: Building the Naturals Portfolio
BUILDING THE NATURALS PORTFOLIO SPECIALIST MASTER BRANDS BRAND EXTENSIONS BRANDS Sensitivity: Internal 24
Slide 26: Driving Premiumization
DRIVING PREMIUMIZATION OUR PREMIUM PORTFOLIO PORTFOLIO STRADDLING THE PYRAMID IS OVER-INDEXED TO MARKET HUL share of Price index segment* 1.3X Premium >1.2x 1.2x X > 0.8x & Popular X <= 1.2x Market HUL <= 0.8x X Mass % contribution of portfolio *Source: Nielsen (Urban + Rural) for 2019 25 Sensitivit
Slide 27: M&A for Catalysing Portfolio Transformation
M&A FOR CATALYSING PORTFOLIO TRANSFORMATION 2016 2018 2020 2020 Sensitivity: Internal 26
Slide 28: Accelerating Channel Transformation
ACCELERATING CHANNEL TRANSFORMATION GENERAL TRADE E-COMMERCE MOEDRN TRADE Building brands in store Portfolio designed for channel 3.4 lakh Outlets onboarded Driving experiential marketing Everyday 6x great execution Avg. orders per month^ Connected Stores 2x Growth^ & Contribution^ Shares Post vs Pr
Slide 29: Winning in Many Indias
WINNING IN MANY INDIAS INDIA WIMI-LED DISTINCTIVE WIMI-LED DISTINCTIVE A HETEROGENEOUS PREMIUMIZATION STRATEGY PRODUCT STRATEGY COUNTRY Example: Punjab & Karnataka Majority Mass : Uttar Pradesh Same brand designed for different Upgradation through mid and color and taste preferences in the premium b
Slide 30: Nimble and Empowered Teams
NIMBLE AND EMPOWERED TEAMS COUNTRY CATEGORY BUSINESS TEAM: 3 DIVISIONS SPLIT INTO 16 MINI-BOARDS Functions in a CCBT Empowered to deliver More consumer & Land bigger, faster in-year P&L customer centric innovations Liberating HUL Management Committee to focus on longer term goals, exploring inorgani
Slide 31: Reimagining HUL for the Next Decade
REIMAGINING HUL FOR THE NEXT DECADE Sensitivity: Internal
Slide 32: Reimagining HUL: Our Vision
REIMAGINING HUL: OUR VISION YESTERDAY TOMORROW Consumer Ecosystem Data & Tech Reimagine Customer Ecosystem HUL Ecosystem Operations Ecosystem MOVING FROM LINEAR VALUE CHAIN TO NON LINEAR ECOSYSTEMS FOR TRANSFORMATION BUILDING DISTINCTIVE CAPABILITIES ACROSS THE VALUE CHAIN 31 Sensitivity: Internal
Slide 33: Spotlight: Lakme Ecosystem
SPOTLIGHT: LAKME ECOSYSTEM Innovation System Manufacturing & Logistics System Open Innovation & Crowd Sourcing Data, Tech & Analytics Original Design & Automated & Manufacturing Robotized Warehouse Media Room Analytics Centre Digital Twins Digital Factory Consumer System Control Tower Customer Ecosy
Slide 34: Spotlight: Customer Ecosystem
SPOTLIGHT: CUSTOMER ECOSYSTEM Building Direct Coverage& Assortment Engine Consumer Offtake & Share Analytics Back End Shopper eb2c Retailer eb2b: Shikhar Purchase Data Distributor Hyperlocal Seamless Debtor Risk Delivery Credit Retail lending Demand Generation Ecosystem Demand Capture Ecosystem Ware
Slide 35: Spotlight: Operations Ecosystem
SPOTLIGHT: OPERATIONS ECOSYSTEM SOURCE MAKE DELIVER SERVICE Digital Twins to Demand Big data analytics Chemical Hub Multicategory optimise & improve Future-fit distribution fulfilment by last to improve Mfg. network processes, quality & infrastructure delivered through mile optimisation availability
Slide 36: Powered by Intelligent Data Ecosystem
POWERED BY INTELLIGENT DATA ECOSYSTEM Enterprise Data Lake Consumer Data Customer Supply Chain Lake Development Data Data Lake Lake POS Based Digital Deaveraged Data Retail Simulations based on WiMI Measures Predictive analytics for CCBTs Process Optimisation Going direct for uncovered/ perennially
Slide 37: Reimagining HUL: An Integrated End to End Transformation Program
REIMAGINING HUL: AN INTEGRATED END TO END TRANSFORMATION PROGRAM CONNECTED CONSUMERS CONNECTED STORES AGILE OPERATIONS Generating better insights Engagement & Faster & better feedback innovation Demand Demand Demand generation capture fulfilment Plan Source Navigate the Crafting effective shopper to
Slide 38: HUL Is Ready for the New Decade
HUL IS READY FOR THE NEW DECADE PURPOSE-LED, FUTURE-FIT 37 Sensitivity: Internal
Slide 39: Thank You
THANK YOU Sensitivity: Internal