Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Presentation (June 2017)
50 slides from Hindustan Unilever's investor presentation, Jun 2, 2017
Slide 1: Winning Decisively
WINNING DECISIVELY ANNUAL INVESTOR MEET| 2 JUNE 2017 Sanjiv Mehta, CEO & MD
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: HUL Performance - Last 5 Years at a Glance
HUL PERFORMANCE - LAST 5 YEARS AT A GLANCE Net Sales EBITDA ~12,000 Crores added EBITDA 1.8X 3 FY’11-12: Reinstated to reflect key IndAS impacts
Slide 4: Strategy on Track and Delivering in Last 5 Years
STRATEGY ON TRACK AND DELIVERING IN LAST 5 YEARS Consistent margin 9 % CAGR improvement annually 2.2x market capitalization ~300 bps 89 2.2X 197 improvement in 2012 2017 profitability 17% CAGR Consistent, Competitive, Responsible, Profitable Growth delivered Rs. ‘000 crores 4
Slide 5: FY 2016-17: Challenging Environment
FY 2016-17: CHALLENGING ENVIRONMENT Subdued Volatile Climate Demonetization Rural growth yet to Consumer markets Commodity costs Extremities recover Palm Fatty Acid Distillate Crude Oil Floods Droughts Yet Resilient Performance Delivered: 4% USG; 1% UVG; +38 bps EBITDA margin 5
Slide 6: Continuing to Build Bigger Brands & Winning with Consumers
CONTINUING TO BUILD BIGGER BRANDS & WINNING WITH CONSUMERS 19 BRANDS > 500 crores 6 Rs. 2000 CR + BRANDS 5 Rs. 1000 CR + BRANDS 8 Rs. 500 CR + BRANDS 7 BRANDS feature in ‘Top 20 Most Trusted Brands’ 2016 edition 6
Slide 7: Retaining Top Employer Position
RETAINING TOP EMPLOYER POSITION Employer of Choice # 1 Employer Dream Employer 6th YEAR in a row Mid Career recruits & 8th YEAR in a row Women 7 As per Nielsen Survey in 2015 &16
Slide 8: HUL: Winning Decisively
HUL: WINNING DECISIVELY
Slide 9: We Remain Optimistic on the India Growth Story
WE REMAIN OPTIMISTIC ON THE INDIA GROWTH STORY India stands to become one of the India’s fastest growing The Indian economy will see an over largest growth engines in the world, economy tag faces no risk three-fold expansion at USD 7.25 according to research in a new from China anytime soon, trillio
Slide 10: And Positive on Mid-Long Term Outlook for FMCG
AND POSITIVE ON MID-LONG TERM OUTLOOK FOR FMCG Millennials Increasing Urbanization Premiumisation Age profile of Indian Population Population in cities Cont. % 2016 2019 Premium 23% 1.7% Almost DOUBLE Popular 38% 0.9% 438 Emerging Cities Mass 38% -2.3% 6 Metropolises Emerging Rurban 10
Slide 11: Our Strategy Remains Unchanged
OUR STRATEGY REMAINS UNCHANGED A Compelling Framework A Model Which Works A Clear Set of Goals • Consistent Growth • Competitive Growth • Profitable Growth • Responsible Growth 11
Slide 12: Winning Decisively
WINNING DECISIVELY 1 Winning with brands and innovation 2 Winning in the marketplace 3 Winning through continuous improvement 4 Winning with people 5 Unilever Sustainable Living Plan 12
Slide 13: Winning with Brands & Innovation
WINNING WITH BRANDS & INNOVATION 13
Slide 14: Key Thrusts
KEY THRUSTS Strengthening the Building brands Innovating across Market Development core with purpose the portfolio Addressing needs Strengthening Magic and of all consumers Naturals craftsmanship 14
Slide 15: Strengthening the Core
STRENGTHENING THE CORE Surf Excel Lux Red Label Kissan Vim Dove Lux 15
Slide 16: Building Brands with Purpose
BUILDING BRANDS WITH PURPOSE Rin and Brooke Bond 16
Slide 17: Innovating Across the Portfolio
INNOVATING ACROSS THE PORTFOLIO 17
Slide 18: Market Development
MARKET DEVELOPMENT BUILDING CATEGORIES OF THE FUTURE How these categories have evolved over the years Male grooming Hair Conditioners Hand Wash Face Wash Strong double digit growth, Liquids Fabric conditioners every year Green Tea Body Wash 18
Slide 19: Addressing Needs of All Consumers
ADDRESSING NEEDS OF ALL CONSUMERS Only 1 in 10 washes uses a HUL Premium laundry powder More Benefits Huge scope for premiumization Rising Income Democratizing trends across core, while driving premiumization 19
Slide 20: Addressing Needs of All Consumers
ADDRESSING NEEDS OF ALL CONSUMERS High end Naturals Indulekha Hair Oil Rs. 432 Salon Care Daily Damage Care Mass Beauty Clinic Plus sachet Family Re. 1 Democratizing trends across core, while driving premiumization 20
Slide 21: Strengthening Naturals
STRENGTHENING NATURALS Within Existing Brands Building Master Brands Building Specialist Brands Toothpaste Hand wash Face wash Soap Shampoo Body Lotion Face Cream Citra 21
Slide 22: Magic & Craftsmanship
MAGIC & CRAFTSMANSHIP WITH DIFFERENTIATED CONTENT Television Website Social Media Digital video E-Commerce 22
Slide 23: Magic & Craftsmanship
MAGIC & CRAFTSMANSHIP WITH DIFFERENTIATED CONTENT Create Curate Channelize PRM + Online Behaviour + FB Look Alikes 250K Makeup Junkie Personae Targeted 2x Click Throughs achieved 100+ partners, 900+ ideas, 100 shortlisted 23
Slide 24: Winning in the Market Place
WINNING IN THE MARKET PLACE 24
Slide 25: Key Thrusts
KEY THRUSTS Winning in Many Indias Effective coverage and Partner of choice across (WiMI) assortment all channels MODERN TRADE COLLABORATE WITH EXTERNAL PARTNERS 25
Slide 26: Winning in Many Indias (WiMI)
WINNING IN MANY INDIAS (WIMI) HELPING TURBO CHARGE GROWTH WITH AGILITY Cluster Specific Mixes – Content, Communication, Schemes 5 Branches 14 Clusters Growth of last 2 years of Central Branch > All India Average 26
Slide 27: Effective Coverage & Assortment
EFFECTIVE COVERAGE & ASSORTMENT MORE THROUGHPUT FROM MORE STORES More Stores More Assortment Every Day Perfection More Assortment in More Stores at More Frequency 27
Slide 28: Effective Coverage & Assortment
EFFECTIVE COVERAGE & ASSORTMENT MORE THROUGHPUT FROM MORE STORES Technology Differentiated approach Upskilling the talent Demand Capture Training Development What to sell to the store Increase Tailor made Assortment for Demand Demand retention ‘every’ store Fulfilment Generation 28
Slide 29: Partner of Choice Across Channels
PARTNER OF CHOICE ACROSS CHANNELS Strengthening the existing channels Building channels of the future Wholesale General Trade Modern Trade E-Commerce Drug-pharmacy & beauty 29
Slide 30: Partner of Choice Across Channels
PARTNER OF CHOICE ACROSS CHANNELS BUILDING STRONG CAPABILITIES IN E-COMMERCE Integrate & Publish Our market share in E commerce > Modern Trade > General Trade 30
Slide 31: Winning Through Continuous Improvement
WINNING THROUGH CONTINUOUS IMPROVEMENT 31
Slide 32: Key Thrusts
KEY THRUSTS Profitable Growth Everyday customer service & Building back-end quality at the moment of truth capabilities 32
Slide 33: Profitable Growth
PROFITABLE GROWTH A Business Model That Works Max the Mix End-to-end cost focus Channel, Portfolio Geography Margin accretive Pricing innovation Symphony ZBB 33
Slide 34: Profitable Growth
PROFITABLE GROWTH ZERO BASED BUDGETING (ZBB) 6 stage ‘closed loop’ approach to driving Unlocking savings by sustainable cost reduction Building a smart spending & New & disruptive thinking ownership mindset 2. COST 1. VISIBILITY 3. VALUE SEGMENT TARGETING OWNERSHIP 6. CONTROL & 4. ZBB MONITOR Cuttin
Slide 35: Everyday Customer Service & Quality at the Moment of Truth
EVERYDAY CUSTOMER SERVICE & QUALITY AT THE MOMENT OF TRUTH Consumer focus Brilliant Quality Culture and Deliver on mix Outlet level Fundamentals People focus Q in Design Phase Zero Defects Q mindset in the More stores – Loss Analysis at Last mile better served Customer level Q @ Point of Sale Levera
Slide 36: Build Back End Capabilities
BUILD BACK END CAPABILITIES Order Shipment Shipment Tracking & Reporting & Management Planning Tendering Monitoring Analytics 36
Slide 37: Winning with People
WINNING WITH PEOPLE a m”
Slide 38: Winning with Our People
WINNING WITH OUR PEOPLE Flexible and Agile Diversity & Inclusion Employee Wellbeing Founders mentality 36% of Managers are WOMEN 100% WOMEN EMPLOYEE FACTORY CCBT CAREER BREAK POLICY 38
Slide 39: CCBT
CCBT FASTER, MORE CONSUMER & CUSTOMER CENTRIC, FUTURE PROOFED HUL Brand Development Brand Building Cross-functional CCBTs CCBTs : GLOBAL – LOCAL BRAND COMMUNITIES CROSS FUNCTIONAL Consumer & Customer Centric Bigger innovations Faster innovations All about experimentation, empowerment and collaborati
Slide 40: CCBT: Innovations Landing Faster
CCBT INNOVATIONS LANDING FASTER 40
Slide 41: CCBT: Agile Execution Backed by Big Data Analytics
CCBT AGILE EXECUTION BACKED BY BIG DATA ANALYTICS Advanced Analytics More Power to Users Speed of Analysis Cross Functional Linking Analytics driven insights 41
Slide 42: Unilever Sustainable Living Plan
UNILEVER SUSTAINABLE LIVING PLAN 42
Slide 43: Doing Well by Doing Good
DOING WELL BY DOING GOOD Enhancing livelihoods Swachh Aadat Water conservation Sustainable sourcing Swachh Bharat Weaving the Sustainability Agenda across the business 43
Slide 44: Enhancing Livelihood
ENHANCING LIVELIHOOD Shakti Brands with purpose Prabhat >390,000 Youth benefited till date 72,000 Shakti Ammas 48,000 Shaktimaans empowered through Project Shakti 680,000* People benefitted directly Cumulative impact till 2016 *This includes direct impact through Swacchata Dhoot 44
Slide 45: Swachh Aadat, Swachh Bharat
SWACHH AADAT, SWACHH BHARAT Mass Media Swachh Basti Swachhata Doot Haath Muh Bum Most Viewed Campaign on YouTube Touched 200,000 lives through the Touched 200,000 lives through our with 20 million views pilot ‘Swachhata Doots’ 75 million people reached 45
Slide 46: Hindustan Unilever Foundation
HINDUSTAN UNILEVER FOUNDATION Water Conservation Crop Yield Person Days Generated >6 lakh tonnes* >37 lakh* 300 billion litres* Cumulative Annual Agriculture Cumulative Person Days Generated Cumulative and Collective Potential Production 46 * Assured Figures as of March 2016
Slide 47: Sustainable Sourcing
SUSTAINABLE SOURCING Tomatoes Tea 100% tomatoes used 46% Tea (16% in 2011) is in Ketchup sourced from sourced from estates sustainable sources certified as sustainable 47
Slide 48: Suvidha Centre Launched
SUVIDHA CENTRE LAUNCHED URBAN WATER HYGIENE & SANITATION COMMUNITY CENTRE Circular economy principle used to reduce water usage Fresh water used Waste water from for brushing, these activities washing, bathing becomes input for etc. flushing toilets ~10 mn litres of water savings per annum ADDRESSIN
Slide 49: Winning Decisively
WINNING DECISIVELY 1 Winning with brands and innovation 2 Winning in the marketplace 3 Winning through continuous improvement 4 Winning with people 5 Unilever Sustainable Living Plan 49
Slide 50: Thank You
For more information & updates THANK YOU For More Information 50
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