Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Day (November 2022)
29 slides from Hindustan Unilever's investor day presentation, Nov 18, 2022
Slide 1: Capital Markets Day 2022
Capital Markets Day 2022 18th November 2022 Sensitivity: Public
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: Capital Markets Day 2022 - Sanjiv Mehta, CEO & Managing Director
Capital Markets Day 2022 Sanjiv Mehta, CEO & Managing Director Sensitivity: Public
Slide 4: India's largest FMCG company
India’s largest FMCG company ₹ 50,336 Crore 24.8% c.6 Lakh Crore FY’22 Turnover FY’22 EBITDA Market Cap. 90 Years of Corporate existence 9 out of 10 9 Million >21K Employees Households use our Outlets reached Employer of Choice products across sectors With deepest reach 4 Sensitivity: Public
Slide 5: Our enduring strengths
Our enduring strengths PORTFOLIO 50+ purposeful brands across 15 categories, Market leaders in >85% of our business RESEARCH & DEVELOPMENT Largest FMCG R&D in India with 700+ scientists, 20K patents globally DISTRIBUTION AND SUPPLY CHAIN Reach 9 million stores, >25% demand digitally captured, 60 bn
Slide 6: Wide and resilient portfolio
Wide and resilient portfolio We operate in 15 categories Foods & Category leadership in >85% of business Refreshment Beauty & 28% Personal Care 38% 50+ purposeful brands Home Care 16 brands with ₹10Bn+ Turnover 32% 5 digital-first brands With deepest reach Contribution% based on FY’22 Segment Revenu
Slide 7: Market leading positions across categories
Market leading positions across categories #1 in >85% of our business #1 #1 #1 #1 #1 #1 Fabric Wash Skin Cleansing Tea Skin Care & Cosmetics Hair Care Health Food Drinks #1 #1 #2 #2 #2 #2 Dishwash Ketchup & Soup Ice Cream Oral Care Coffee Surface Cleaning 7 Sensitivity: Public
Slide 8: Proven model of market development
Proven model of market development… Seeding Categories Access Physical Packs Reach Persuasive Consumer Communication Connects Market development at scale Sensitivity: Public 8
Slide 9: …and crafting purposeful brands
…and crafting purposeful brands 19 New brands in last 10 years Multi-Year Engagement Platforms 9 Sensitivity: Public
Slide 10: FY'22: Market development cells contributed 10K cr. to our Turnover
FY’22 : Market development cells contributed 10K cr. to our Turnover Home Care Premium Hair Hand & Body Premium Skin Premium Colour Liquids Care Wash Care Cosmetics Matic Ice Cream Spreads and Green Tea Spice Tea Detergents (WiMI) Dressings 10 Sensitivity: Public
Slide 11: Perfect stores – Online and offline
Perfect stores – Online and offline Symphony : Fuel for growth 11 Sensitivity: Public
Slide 12: Portfolio transformation: more premium, more digital
Portfolio transformation : more premium, more digital Product Mix Channel Premium Digital c. 22% Demand Capture 0% FY’12 Digital Premium Demand c. 33% Capture >25% Current 12 Sensitivity: Public
Slide 13: Financial excellence
Financial excellence Symphony : Fuel for growth Capital discipline 108% -22 days ROCE Working capital Best in class benchmarks for Overheads, Manufacturing and Distribution costs Figures for FY’22 13 Sensitivity: Public
Slide 14: Strong track record of consistent performance
Strong track record of consistent performance Turnover EBITDA Market Cap. FY’22 FY’22 As on date >50K Crore >12K Crore c.6 Lakh Crore 2X 4X 6X vs. FY’12 vs. FY’12 vs. 31st March 2012 Long term value creation for all our stakeholders With deepest reach 14 Sensitivity: Public
Slide 15: Doing well by doing good
Doing well by doing good Climate & Waste Nature Social 94% 1.9 trillion litres 7 million Reduction in CO2 Emissions Cumulative Water potential created by HUF People reached through Prabhat (kg/tonne of production) in manufacturing initiatives on economic empowerment, operations vs 2008 environment s
Slide 16: India poised for growth
India poised for growth With deepest reach 16 Sensitivity: Public
Slide 17: Macro trends driving growth
Macro trends driving growth Favourable Fastest growing economy Urbanisation demographics India’s GDP Ranking 2020 6 2022 5 2027 3 >1 Bn Working class population Cities with 1 Mn population to 10 Mn will get added every year nearly double by 2030 With deepest reach Source: IMF GDP in Current prices 1
Slide 18: Rising affluence
Rising affluence Upward mobility in income to fuel consumption and.. …premiumisation 2017 2022 2022 Elite 2% 3% 27% Premium Popular Affluent 34% Popular Popular Aspirers Mass 39% Rest of the Mass Population Mass 18 Sensitivity: Public
Slide 19: Fundamentals for FMCG remain strong
Fundamentals for FMCG remain strong Low Penetration Under-indexed spends Rural opportunity MFD 25 Philippines $255 Face Wash Urban Rural Body Lotion Thailand $438 31% 69% Washing Liquids Share of population China $126 Dishwash Liquid $82 $27 Per Capita FMCG Consumption Hair Conditioner Indonesia $10
Slide 20: World is changing
World is changing Search for Un-stereotype Holistic Health Authenticity Hyper-personalisation With deepest reach E-everything Net Zero Sensitivity: Public 20
Slide 21: Our winning strategy
Our winning strategy Purpose and Vision Long-term strategic choices Developing our portfolio Win with our brands powered by purpose and innovation Lead in the channels of the future Build differentiated structures and capabilities Our vision is to be a leader in sustainable business. We will demonst
Slide 22: Our ESG goals
Our ESG goals Accelerate diverse Pioneering new 100% plastic representation & inclusive models for flexible neutral Zero emissions in culture across organisation employment our operations by 2030 Double the number of products sold that deliver positive nutrition Ensuring a living wage or income to e
Slide 23: Developing our portfolio
Developing our portfolio Growing the Core Market Development Premiumisation Superior Products | More users | More benefits | Upgrading consumers to Purposeful communications More usage higher order benefits 23 Sensitivity: Public
Slide 24: Win with our brands powered by purpose and innovation
Win with our brands powered by purpose and innovation Superior product World class technology Purpose drives growth functionality Cutting edge technology Superior to competition Purpose drives leading to product superiority in blind tests brand power 24 Sensitivity: Public
Slide 25: Lead in channels of the future
Lead in channels of the future Digitising General Trade Design for Channel New routes to consumers 1 million Shikhar stores 50% packs D4C ready 14 D2C platforms Digitised demand capture now >25% 25 Sensitivity: Public D4C: Packs designed exclusively for eCommerce
Slide 26: Build differentiated structures and capabilities
Build differentiated structures and capabilities Winning in Many Indias Nakshatra : Future-fit supply chain network India Is Not One India! Closer to demand | Cost efficient | More agile, More digital | Capacity for growth 26 Sensitivity: Public
Slide 27: Build differentiated structures and capabilities
Build differentiated structures and capabilities Reimagine HUL Creating new competitive moats YESTERDAY Agile 5 Digital Innovation Hub Brands India’s 1st FMCG Lighthouse Factory (WEF) HUL’s Dapada Factory Nano Factories: 1 Mn Shikhar 14 D2C Supply chain for stores Platforms smalls TOMORROW 6 Nano fa
Slide 28: Build a purpose-led, future-fit organisation and growth culture
Build a purpose-led, future-fit organisation and growth culture Future-fit organisation Truly Inclusive Culture to outperform skills & Future proofing Igniting thehuman spark ways of working Microcosm of India for a better business & a better world 28 Sensitivity: Public
Slide 29: We have never been as strong, but our best is yet to come
We have never been as strong, but our best is yet to come Long Term Value Our Strengths Consumer & Customer Obsession Growth Mindset Deep Passion Owner’s Mindset High Dissatisfaction with Status Quo Performance Distinctive Anatomy Capabilities Humbition 29 Sensitivity: Public