Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Hindustan Lever — Citigroup India Investor Conference 2007
22 slides from Hindustan Unilever's conference presentation, Mar 14, 2007
Slide 1: Hindustan Lever Limited Investor Presentation
Hindustan Lever Limited Investor Presentation Citigroup India Investor Conference SP Mustafa, VP Investor Relations, Treasury & Mergers & Acquisitions 14th March 2007 Agenda Overview India Opportunity HLL - Uniquely Placed 2006 Highlights Growth Agenda 1
Slide 2: HLL - India's largest FMCG company; Financial Overview 2006
HLL - India’s largest FMCG company 16,000+ employees 1,200+ managers 2,000+ suppliers & associates 80 company factories 45 C&FAs, 4,000 Stockists India Direct Coverage - 1 Mn outlets Population 1027 Mln Total coverage - 6.3 Mn outlets 5,545 Tow
Slide 3: Leadership across Diverse FMCG Categories; Shareholding Pattern
Leadership across Diverse FMCG Categories HLL - #2 Category Market Market Share (%) Share (%) Fabric Wash 35.8 15.1 Personal Wash 55.3 9.2 Dishwash 55.4 9.5 Market Leader Skin 54.7 7.4 Shampoo 48.5 23.8 Talcum Powder 59.3 5.8 Packet Tea 24.9 19.9 Jams 69.6 4.4 HLL - #1 Market Market Share (%) Share
Slide 4: Indian Economy and Key Drivers
Agenda Overview India Opportunity HLL - Uniquely Placed 2006 Highlights Growth Agenda Indian Economy and Key Drivers Indian economy is growing at a fast pace……………. Is this sustainable ? Strengths Concerns • Poor Agricultural growth, • Strong 20% + growth in Exports of merchandise and services. • Lac
Slide 5: India - 2013 Opportunities & Challenges
Opportunities & challenges z Increasing per capita income drives FMCG growth z A large differentiated set of consumers z Opportunity to grow consumption and penetration z Evolving trade structure India - 2013 2003 2013 181 mn hhlds 231 mn hhlds 3 Rich 11 46 Aspirers 124 131 Strivers 96 The shape of
Slide 6: Consumer Confidence; Opportunity to grow consumption and penetration
Consumer Confidence 140 132 127 123 117 119 120 106106 114 106 109 103 103104 101 98 96 99 98 100 94 93 … Consumer 80 67 76 83 80 Confidence highest in 60 58 62 the Asia Pacific region 40 20 0 MAL NZ AUS AP INDO SG Kor TW Jap PH TH HK IND 1H 2005 2H 2005 120 100 80 60 40 … With Consumers feeling it
Slide 7: Development of 'Modern Trade'
Modern Trade Customers Local Retailers Spencer Super / Hyper Holding in FW / H & G MNC Retailers Prospective Entrants Development of ‘Modern Trade’ 3500 3000 2872 100% 2511 90% 15 2500 2401 2116 80% 40 70% 2000 1765 60% 1507 1500 50% 1229 1057 40% 85 913 1000 797 726 30% 60 20% 500 10% 0 0% 1995 199
Slide 8: HLL - Uniquely Positioned to Create Value
Agenda Overview India Opportunity HLL - Uniquely Placed 2006 Highlights Growth Agenda HLL – Uniquely Positioned to Create Value z Unmatched Brand Portfolio z Innovation and R&D capabilities to straddle the pyramid z Track record of building profitable mass market brands z Versatile distribution netw
Slide 9: An unmatched brand portfolio
HLL – 2006 Turnover 14000 12000 10000 8000 Turnover 6000 4000 2000 0 HLL Nestle Britannia Dabur Marico GSK Colgate Godrej CP PGHH 2006 TTM Turnover – Rs Crores Source: Audited Reports and Company Press release Unmatched Brand Portfolio An unmatched brand portfolio 9
Slide 10: Unmatched Brand Portfolio; Innovation and R&D capabilities
Unmatched Brand Portfolio An unmatched brand portfolio 6 MEGA BRANDS - Sales from ~ $ 150 to 260 mn each, 53% FMCG portfolio Innovation and R&D capabilities to straddle the pyramid z Unilever has well established R&D facilities with over 500 scientists working on new innovations z HLL is an importan
Slide 11: Innovation and R&D; Water business Pure-it; Distribution Strength
Innovation and R&D Capabilities Water business - ‘Pure-it’ Proposition : ‘as safe as boiled water’ water’ without hassles of boiling Assured safety: no harmful virus, bacteria, parasites, pesticides Works without electricity & piped water Great taste, clear & odour-free water Aspirational styling Af
Slide 12: Distribution Strength; Organized Retail
Distribution Strength Launch of Channel specific Programmes z Vijeta z Super value Format z Unicare z Beauty Advisory Channel z Rural Channel Channel [R] z Kiosk channel Organized Retail A source of competitive advantage for MT HLL Market Shares in MT 80% GT MT 60% 40% 20% Overall Skin Care Cleansin
Slide 13: Organized Retail; New Initiatives
Organized Retail A source of competitive advantage for MT HLL MT Market Shares as against Others Shares In MT HLL Others 100% 80% 60% 40% 20% 0% Oral Care Skin Care Jam TEA Shampoo Instant F W Bars Ketchup Coffee Powders FW Source : Mtrack shares, AC Nielsen New Initiatives • Leveraging brands to st
Slide 14: New product launches / relaunches in 2006
New product launches / relaunches in 2006 Key Innovations/Activations - 2006 Lifebuoy range relaunch New variants Lux & Dove Wheel Active relaunch Hamam Ubtan Breeze Relaunch Migration Niche products - launch Surf Excel Gentle Wash & Comfort Fabric Conditioner Surf Excel range relaunch 14
Slide 15: Key Innovations/Activations - 2006
Key Innovations/Activations - 2006 FAL – Skin Clarity, Menz Active, Ayurvedic and Ponds -Face Wash & Top Sunblock End Range Lakme – Vaseline- Vaseline- Aloefresh Fundamentals, Free and re- re-launched Spirit range, Happy Body Lotion Hour Collection Elle 18 Nail & Lip range relaunch Key Innovations/A
Slide 16: Key Innovations/Activations - 2006
Key Innovations/Activations - 2006 Tea Relaunch – Taj Mahal & Taaza Kissan Relaunch Ice cream Range Business strategies to aid the development of rural India Combining corporate responsibility and business strategies to aid development of rural India 16
Slide 17: Rural marketing - Project Shakti; Lifebuoy Swastya Chetna
Business strategies to aid the development of rural India Rural marketing - Project Shakti – Challenges in Rural Markets Accessibility Viability Media Dark – Rural selling through Self Help Groups; provides micro enterprise opportunities for women – Benefits Improving product reach (doubled direct r
Slide 18: 2006 Highlights
Agenda Overview India Opportunity HLL - Uniquely Placed 2006 Highlights Growth Agenda 2006 Highlights • Sustained top line growth (+9.4%) on the back of a 11% growth in 2005 • FMCG grows by 12.8%; HPC (+13.7%), Foods (+9.0%) • Growth broadbased • A&P spends higher by 27% • PBIT grows by 16.2% • PAT
Slide 19: Robust FMCG growth; To sum up 2006
Robust FMCG growth HLL FMCG Sales growth % 12.7 12.8 0.03 2004 2005 2006 ++ HLL has January - December financial year. To sum up..2006 • Good topline growth for the year • Substantial investments behind brands throughout the year • Good progress in all HPC Categories • Foods grows well driven by str
Slide 20: Looking ahead..
Agenda Overview India Opportunity HLL - Uniquely Placed 2006 Highlights Growth Agenda Looking ahead.. • FMCG Market expected to grow at current levels; proactive government actions should help contain increasing inflation concerns • High levels of innovation will be sustained and A&P investments wil
Slide 21: Looking ahead..; Thank you
Looking ahead.. • Excellent Water test market results give confidence for a national rollout, commencing from 2007. Investments will be stepped up accordingly • Cost pressures continue with Vegetable Oil prices hardening, though partially offset by reduction in Crude Oil. Judicious price increases a
Slide 22: Hindustan Lever Limited
Hindustan Lever Limited Investor Presentation Citigroup India Investor Conference SP Mustafa, VP Investor Relations, Treasury & Mergers & Acquisitions 14th March 2007 22
Hindustan Lever — Citigroup India Investor Conference 2007 on 6ix