Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Kotak 'Chasing Growth' Investor Conference 2015
51 slides from Hindustan Unilever's conference presentation, Feb 9, 2015
Slide 1: Winning Decisively
WINNING DECISIVELY KOTAK – ‘CHASING GROWTH’ INVESTOR CONFERENCE | 09 FEB 2015 SANJIV MEHTA, CEO & MD
Slide 2: 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 3: Changing Centre of Gravity
CHANGING CENTRE OF GRAVITY > inside are more people rcle than outs
Slide 4: Positive about medium-long term outlook for FMCG in India
WE ARE POSITIVE ABOUT THE MEDIUM – LONG TERM OUTLOOK FOR FMCG IN INDIA More Users | More Usage | More Benefits LSM – Living Standards Measure
Slide 5: Attractive opportunity as markets evolve
ATTRACTIVE OPPORTUNITY AS MARKETS EVOLVE Head room for growth Favouring Consumption Higher Personal Care & Foods LSM 8+ (new 7.7 x categories) LSM 8+ 4.9 x LSM 5-7 3.1 x LSM 2-4 1.7 x LSM 1 1x LSM 1 LSM 2-4 LSM 5-7 LSM 8+ 0 5000 10000 Laundry, Skin Cleansing Pers Prod Foods Exp per HH / year (INR) *
Slide 6: Introducing HUL: India's largest FMCG company
INTRODUCING HUL: INDIA’S LARGEST FMCG COMPANY FY 2013 - 14 INR / USD = 60.47 (average for FY 2013-14) Segments % Revenue % Results Soaps & Detergents 49 40 Personal Products 29 46 Beverages 12 13 Packaged Foods 6 1 • Deep roots in local culture; 75+ years in India with leading market position across
Slide 7: We remain committed to our strategy
WE REMAIN COMMITTED TO OUR STRATEGY A Compelling Framework A Model Which Works A Clear Set of Goals • Consistent Growth • Competitive Growth • Profitable Growth • Responsible Growth
Slide 8: We continue to deliver on our goals
WE CONTINUE TO DELIVER ON OUR GOALS COMPETITIVE GROWTH CONSISTENT GROWTH PROFITABLE GROWTH …ahead of market …steady UVG in a soft market …expanding margins whilst investing competitively FY 2013-14 FY 2013-14 FY 2013-14 15.4% 9 PBIT +40 bps 4 5 14.9% Market HUL USG UVG UPG 2012-13 2013-14 First Half
Slide 9: Made progress on our sustainability priorities
MADE PROGRESS ON OUR SUSTAINABILITY PRIORITIES 65 million people Reduced CO2 emissions by 27%, 65,000 Shakti Ammas touched by Lifebuoy water use by 37%, waste by 84%* and over 50,000 handwashing Shaktimaans who cover programs since 2010 Out of 38 sites, 33 factories are now >4m households across zer
Slide 10: Sustained our strong track record
SUSTAINED OUR STRONG TRACK RECORD
Slide 11: Continue to build bigger brands
CONTINUE TO BUILD BIGGER BRANDS * Rs 1000+ Crs Rs 500+ Crs 2013-14 2013-14 11 8 * Brooke Bond Master Brand
Slide 12: Continue to win with consumers
CONTINUE TO WIN WITH CONSUMERS Most Trusted Brands 2014 3 HUL brands in Top 10 8 HUL brands in Top 25 16 HUL brands in Top 100 Most Trusted Brand in Water Purifiers Brand Equity 2014 Most Trusted Brands Survey
Slide 13: Retained our top employer position
RETAINED OUR TOP EMPLOYER POSITION EMPLOYER OF DREAM CHOICE EMPLOYER NO. 1 Employer in Mktg & IIMs 4th YEAR 5th YEAR FMCG in Finance & IT in a row in a row Employer for Women As per Nielsen Campus Track B-School Survey
Slide 14: Continue to be recognized
CONTINUE TO BE RECOGNIZED Kan Khajura Tesan HUL's Project Shakti won 3 Gold Lions received the 'Porter at Cannes Prize for Creating Shared Value‘ HUL was ranked no. 1 by HUL is No. 1 Employer of Choice Aon Hewitt and Economic in India for the 3rd year in the Times in the Top Company Nielsen Campus T
Slide 15: HUL: Winning Decisively
HUL: WINNING DECISIVELY a
Slide 16: Winning Decisively Framework
WINNING DECISIVELY FRAMEWORK Unilever Sustainable Living Plan (USLP) Safety Winning with Brands & Winning in the Innovations Market Place Safety Safety USLP USLP The Compass Winning through Winning with continuous improvement People Safety Unilever Sustainable Living Plan (USLP) Consistent | Competi
Slide 17: Winning with Brands & Innovations
HUL: WINNING DECISIVELY Winning with Brands & Innovations
Slide 18: Investing competitively
INVESTING COMPETITIVELY Strong Core Market Development A&P – Advertising & Promotion
Slide 19: Turbo charging innovations
TURBO CHARGING INNOVATIONS Bigger | Better | Faster
Slide 20: Fair and Lovely Rs. 5 Access Pack AV
FAIR AND LOVELY RS. 5 ACCESS PACK AV
Slide 21: Creating buzz through magic in marketing
CREATING BUZZ THROUGH MAGIC IN MARKETING THE KISSANPUR AV Kissanpur film has already touched Tested as best HUL Print Got over 1 lakh consumers to lives of over 30 Million people. advertisement; Mind measures on experience nature and change their 4 million Views habit by converting 20,000 sq feet “m
Slide 22: TRESemmé AV
- BROUGHT TO YOU BY TRESemmé Salon style hair at home Everyday’ *
Slide 23: Harnessing non-TV media
HARNESSING NON-TV MEDIA RADIO OUTDOOR CINEMA PRINT DIGITAL
Slide 24: Shamitabh Lifebuoy and Lakme AV
SHAMITABH LIFEBUOY AND LAKME AV
Slide 25: Winning in the Marketplace
HUL: WINNING DECISIVELY Winning in the Marketplace
Slide 26: Harvesting competitive advantage: 3M stores
HARVESTING COMPETITIVE ADVANTAGE: 3M STORES ‘Harvesting’ outlets Improving throughput in new stores Drive assortment in Rural by leveraging Shakti Mobile Accelerate growths through better in-store execution Deploy high impact visibility and category management solutions
Slide 27: Building brands in store
BUILDING BRANDS IN STORE Using Store as Medium to Drive Salience & Equity leveraging all 6Ps PRODUCT PACKAGING PRICING PROMOTION PLACE PROPOSITION
Slide 28: Building Lakme in-store
BUILDING LAKME IN-STORE Redesigned Beauty Advisor counter assets to bring alive Pro-Stylist Digitized assets (Makeover App) at key counters Redesigned makeover units and doubled the number of makeover artists to amplify new launch experiential Aggressive thrust on product experience in Lakme Salons
Slide 29: The Result
THE RESULT
Slide 30: Reorganizing to win in many Indias
REORGANIZING TO WIN IN MANY INDIAS EARLIER: 4 Branches NOW: 5 Branches, 14 Consumer Clusters Structure | Processes | Empowerment | Micro Marketing
Slide 31: Central India presents a large opportunity
CENTRAL INDIA PRESENTS A LARGE OPPORTUNITY 40% Population ; 49 cities 1.75 times GDP growth Rest of Central India India Population Rajasthan Uttar Pradesh (Mln) 740 470 Bihar Population Share 60% 40% Madhya Pradesh GDP per capita € PPP 2750 1600 GDP Share 78% 22%
Slide 32: Winning through consumer clusters
WINNING THROUGH CONSUMER CLUSTERS JOBS TO BE DONE AT THE CONSUMER CLUSTER LEVEL Faster Seamless Smaller teams Better Infra response in the Communication for with sharper leading to marketplace better execution focus better delivery Driving Every Day Great Execution at a Consumer Cluster level
Slide 33: HUL rural advantage
Wen HUL RURAL ADVANTAGE = Portfolio of ei & G —_ = spans the 2yye°os a Ds pyramid Unparalled Economies distribution of scale reach
Slide 34: Leverage rural – Perfect Village
LEVERAGE RURAL – PERFECT VILLAGE Market Development Perfect Stores USLP
Slide 35: Perfect Village Impact
PERFECT VILLAGEVillage Perfect IMPACTImpact 3.7 Million consumers contacted 1 Million children contacted 3800 Beauty parlors 80,000 Stores 1200 promoters 1.2million Man – hours
Slide 36: Winning through Continuous Improvement
HUL: WINNING DECISIVELY Winning through Continuous Improvement
Slide 37: Driving the virtuous cycle of growth
DRIVING THE VIRTUOUS CYCLE OF GROWTH A Business Model That Works Max the Mix End-to-end cost focus Channel, Non Material Portfolio Materials Supply Chain Geography Costs Margin Return on accretive Pricing Marketing Overheads innovation Investments
Slide 38: Sustained focus on efficiencies and savings
SUSTAINED FOCUS ON EFFICIENCIES AND SAVINGS Savings Up, Costs Down *All charts indexed to 2011 (Base = 100)
Slide 39: Quality at the moment of truth
QUALITY AT THE MOMENT OF TRUTH Improved Product Quality Quality Mindset Superior Service Standards
Slide 40: Service at the point of purchase
SERVICE AT THE POINT OF PURCHASE PRIMARY CCFOT MT – OSA 90% 75% Dec'13 Dec'14 Dec'13 Dec'14 Primary CCFOT at 90+ levels; focus MT On shelf availability at 80+ on stepping up Secondary CCFOT levels; stepping up GT levels OSA – On Shelf Availability; CCFOT – Consumer Case Fill On Time; MT – Modern Tra
Slide 41: Agility & simplification
AGILITY & SIMPLIFICATION Product Process Project SKU Half Rationalization Structure Behaviors Focused workstreams ~30% lower SKUs in 2014 Simplify & Sharpen
Slide 42: Winning with People
HUL: WINNING DECISIVELY Winning with People
Slide 43: Winning with & through our people
WINNING WITH & THROUGH OUR PEOPLE Values Performance Culture Diverse Workforce Behaviours
Slide 44: Building talent & capabilities
BUILDING TALENT & CAPABILITIES Enhancing Front Line Building capability Capability Foods College across HPC Line manager & Customized solutions Going Digital employee education for Water across functions Focus on building institutional capabilities
Slide 45: Sustainable Commonplace
SUSTAINABLE COMMONPLACE
Slide 46: Building perfect communities
BUILDING PERFECT COMMUNITIES Transforming Lives by Empowering Communities for a Sustainable Future Behavioural programs Water security projects Vocational training Launched across 26 sites | We aim to impact a million lives through Prabhat
Slide 47: Helping create a brighter future
HELPING CREATE A BRIGHTER FUTURE
Slide 48: Harnessing the power of children for change
HARNESSING THE POWER OF CHILDREN FOR CHANGE Social Experiment Sunlight Living challenge Innovating to provide Leading by action simple solutions
Slide 49: Our health & well being impact till 2020
OUR HEALTH & WELL BEING IMPACT TILL 2020 LB School Pureit Domex Toilet Oral School Water Contact Academy Cont. Foundation Programs 100 mln 100K Toilets Program 500 bln 160 mln People 530k 5 mln litres People People People Impacting >250 mln people – 1 in every 5 Indians
Slide 50: Swachh Bharat Abhiyaan AV
Us Hen Faeaa Ar ar SWACHH BHARAT ABHIYAAN AY Se
Slide 51: Thank you
THANK YOU For More Information
Hindustan Unilever — Kotak 'Chasing Growth' Investor Conference 2015 on 6ix