Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Day (December 2018)
31 slides from Hindustan Unilever's investor day presentation, Dec 4, 2018
Slide 1: Cover letter to stock exchanges: Investor Presentation
Hindustan Unilower Limited Hindustan Unilever Limited Unilever House B D Sawant Marg Chakala, Andheri East Mumbai 400 099 4th December, 2018 Tel: +91 (22) 3983 0000 Web: www. hul.co.in CIN:L15140MH 1'933PLC002030 Stock Code: BSE: 500696 NSE: HINDUNILVR ISIN: INEO30A01027 BSE Limited, National Stock
Slide 2: Unilever Investor Event, 04 Dec 2018
UNILEVER INVESTOR EVENT 04 DEC 2018 Sanjiv Mehta, Chairman & Managing Director Hindustan Unilever Limited
Slide 3: India's Largest FMCG Company
INDIA’S LARGEST FMCG COMPANY 22
Slide 4: Hindustan Unilever Limited: €4.5bn powerhouse
Hindustan Unilever Limited : €4.5bn 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 to
Slide 5: Consistent high performance across Divisions
Consistent high performance across Divisions A few examples in the last 6 years Beauty & Personal Care Home Care Foods & Refreshment* Hair Fabric Solutions Tea Turnover Market Share Turnover Profitability Turnover Profitability 1.9x ~ 700 bps 1.8x 3.7x 1.8x 2.0x Largest Beauty & Personal Care Larges
Slide 6: Our strategy is anchored around..
Our strategy is anchored around.. Growth Underpinned by Unilever Sustainable Living Plan Consistent, Competitive, Profitable, Responsible Growth 5
Slide 7: Strategy in action
Strategy in action Building Blocks Strengthening Creating categories Driving Fuel for Execution the Core of future premiumization growth Excellence Enabled by Structure Capabilities Culture Being Future Fit 6
Slide 8: Strategy in action
Strategy in action Building Blocks Strengthening Creating categories Driving Fuel for Execution the Core of future premiumization growth Excellence Enabled by Structure Capabilities Culture Being Future Fit 7
Slide 9: Our Core portfolio
Our Core portfolio Straddling the price-benefit pyramid For e.g. Hair Rs. 432 ($5) High end naturals Salon care Anti-dandruff Daily damage care Mass beauty Sachet at Re.1 Family (1.5 US cents) 8
Slide 10: Strengthening the Core
Strengthening the Core Making the Core more Constantly innovating Focused SKUs at Focus on driving aspirational through and renovating deaveraged level penetration & purpose led brands the Core using local insights weighted distribution 9
Slide 11: Building iconic engagement platforms
Building iconic engagement platforms Lakmé Fashion Week Fair & Lovely Foundation Lifebuoy Help a child reach 5 Lux Golden Rose Awards Red Label taste of Rin Career Academy Surf Excel Haar ko Harao togetherness Kissan Tiffin Time Table 10
Slide 12: Innovations driving our growth
Innovations driving our growth 11
Slide 13: Our Market development portfolio
Our Market development portfolio Nascent categories penetration Hand Wash* 22 Instant Coffee Face Wash Body Lotion Washing Liquids Hair Conditioner Soups* Dishwash Liquids Body Wash* 2 12 Source: IMRB As of MAT Aug’18 (Urban + Rural) ; *Urban only.
Slide 14: Creating categories of the future
Creating categories of the future Market development model Driving category penetration Growing at ~ 2x of 20% HUL average of Business SEED ACCELERATE EXPLODE Doubled in size in the last 5 years 2.2 x UPTO 10% 10% TO 20% 20% AND ABOVE CATEGORY PENETRATION 200 million consumer contacts 13
Slide 15: Leading with trends
Leading with trends Naturals Perfume on the go Fabric sensations Male grooming Health Reinvent Indian look 14
Slide 16: Driving Premiumization
Driving Premiumization Market growing faster in the premium segment Example : Fabric Solutions HUL share Price HUL share 2017 of segment* of segment* Premium 28% 1.3x Premium 3.0x 3.5x Mid 39% 1.2x Mid 1.5x 2.0x Mass 33% x Mass x x *Source: Nielsen MAT Sep’18 (Urban + Rural) 15
Slide 17: Fuel for growth
Fuel for growth End-to-end cost focus Powered by Savings 1.7x Non Material Materials Supply Chain Costs x Return on Marketing Overheads Investments 2014 2015 2016 2017 % of Turnover Organization wide Crowd sourcing of Driving virtuous effort ideas cycle of growth 16
Slide 18: Execution excellence
Execution excellence Agile Supply Chain Front end execution Speed to market Inventory days Service 1.8x x x Effective 0.6x Faster landing of 55 x +1000bps 0.94 innovations 0.92 Coverage* 2015 2018 50 2015 2018 0.9 0.88 45 0.86 No. of days 0.7x 0.84 1.7x Art of pricing 40 0.82 0.8 x 35 0.78 Assortmen
Slide 19: India is a heterogenous country
India is a heterogenous country Diverse Varied affluence Different media Differential category demographics levels habits adoption Multiple languages LSM 7+ = 8% nationally Mobile internet penetration: Penetration in adjacent 8 Major religions (Range of 5-48%) Rural- 18%*; Urban- 59%* states also no
Slide 20: Customer Development
Customer Development Sharper strategy leveraging Traditional trade channels Building channels of the ecosystem will remain relevant the future Demand Capture Wholesale Right outlets, Right Aids Width of frequency, Right distribution assortment Modern Trade - Driving visibility Retail Demand Fulfil
Slide 21: Strategy in action
Strategy in action Building Blocks Strengthening Creating Categories Driving Fuel for Execution the Core of future premiumization growth Excellence Enabled by Structure Capabilities Culture Being Future Fit 20
Slide 22: Winning in Many Indias
Winning in Many Indias WiMI in action From 4 branches to Distinctive strategy 14 consumer at a cluster level clusters Empowered Cluster Customized product Heads enabling propositions & faster decision media deployment making closest to for every cluster the point of action WiMI is a competitive edge
Slide 23: Winning in Many Indias – few examples
Winning in Many Indias – few examples Proposition in face care Pricing and proposition in fabric solutions Product in Refreshment Low penetration markets Punjab and Uttar Tamil Pradesh Nadu Karnataka Grow by removing barriers Majority mass Majority mid of proxy usage Designed for color and Other mar
Slide 24: C4G in action
C4G in action Country Category Business Team : 15 Mini – Boards Functions in a CCBT Empowered to More consumer & Land bigger, faster deliver in-year P&L customer centric innovations Liberating HUL Leadership Team to focus on longer term goals, Merger of brand building exploring inorganic growth oppo
Slide 25: Digital trends shaping India
Digital trends shaping India Rise of vernacular Exponential data growth content Rapidly evolving digital Rs. 205/GB infrastructure in 2016 Plummeting data costs driving 480+ million internet increased usage users with more (4 hours video per day) 3rd largest start-up mobile viewers Rs. 19/GB ecosyst
Slide 26: Leading the disruption along our value chain
Leading the disruption along our value chain AI Augmented Digital Factory Robotics Automation @ Digitization of Stores Precision Marketing Decision Making & Robotics Warehouses Distribution Store Performance Factory Distributor Consumers Center Management B2B Model and assured N+1 Delivery Harnessin
Slide 27: Winning culture: Focus on Wellbeing, Diversity & Inclusion
Winning culture: Focus on Wellbeing, Diversity & Inclusion Nurturing an Building an Inclusive experimentation culture Workplace Holistic Wellbeing Distinctive Technology giving +1200 bps Competitive Advantage improvement in gender balance Embracing inclusion beyond Consumer Appropriate Need/ Unmet L
Slide 28: Unilever Sustainable Living Plan
UNILEVER SUSTAINABLE LIVING PLAN
Slide 29: Unilever Sustainable Living Plan
Unilever Sustainable Living Plan Health & Wellbeing Sustainable Sourcing Enhancing Livelihoods Thought Leadership 90,000+ Shakti 100% tomatoes 450 billion entrepreneurs are sourced from network litres sustainable of water saving sources potential created 1.7 million people >67 million people reached
Slide 30: Key Messages
Key Messages • Unilever has a rich history and deep heritage in South Asia spanning over 100 years • South Asia has huge headroom to grow being home to the largest millennial population, growing affluence, rising urbanization and burgeoning digital connectivity • Unilever has strong business in Sout
Slide 31: Thank you
Thank you For more information