Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Presentation (June 2019)
51 slides from Hindustan Unilever's investor presentation, Jun 7, 2019
Slide 1: Re-imagining HUL
Re-imagining HUL Sanjiv Mehta, Chairman & Managing Director Annual Investor Meet | 7th June 2019
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: Our Journey Over the Last 10 Years
OUR JOURNEY OVER THE LAST 10 YEARS Net Sales EBITDA Market Capitalization Rs. 37,660 Cr.* EBITDA margin 23%* ~ Rs. 370,000 Cr. * 2.3X + 740 bps delta 7.1X ~Rs. 21,000 Cr. added^ ~Rs. 6,000 Cr. added ~Rs. 318,000 Cr. added *Numbers pertain to FY 2018-19. Net Sales excludes other operating income. Mar
Slide 4: Some of the Outstanding Performers: Last 6 Years
SOME OF THE OUTSTANDING PERFORMERS: LAST 6 YEARS Hair Care Color Cosmetics Laundry Tea 4
Slide 5: Hair Care
HAIR CARE Strong play in Focus on innovations Consistent growth naturals and premiumization Turnover 1.9X X FY12-13 FY18-19 Market Share ~560bps DOVE LAUNCHED IN 2007, IS NOW THE BIGGEST HAIR CARE BRAND IN INDIA 5 All nos are basis internal management reporting & compared with FY’12-13. Market share
Slide 6: Color Cosmetics
COLOR COSMETICS Agile and innovation Innovation led growth Trend setting driven Turnover 2.3X X FY 12-13 FY 18-19 Launches ~150 SKUs launched every year on an average LAKME IS THE BIGGEST COSMETIC BRAND IN INDIA 6 All nos are basis internal management reporting & compared with FY’12-13
Slide 7: Laundry
LAUNDRY Market development & Profitable growth Brands with purpose premiumization Turnover 1.7X X FY 12-13 FY 18-19 Profitability X 3.6X HUL IS THE NO.1 LAUNDRY COMPANY IN INDIA 7 All nos are basis internal management reporting & compared with FY’12-13
Slide 8: Tea
TEA WiMI led growth Market development Strong WiMI play Turnover 1.8X X FY 12-13 FY 18-19 Market Share X 2.1X ~230bps HUL IS THE NO.1 TEA COMPANY IN INDIA WiMI stands for Winning in Many Indias. 8 All nos are basis internal management reporting & compared with FY’12-13. Market share increase is as o
Slide 9: Our Portfolio of Iconic Brands
OUR PORTFOLIO OF ICONIC BRANDS 2000+ Crore 1000+ Crore 500+ Crore 9
Slide 10: Being Recognized
BEING RECOGNIZED 2015 2017 & 2018 2009 - 2018 ET – Company of Most Innovative Employer of Choice in the the year #8 Globally & #1 in India Industry - 10 years in a row 2018 2018 2018 2018 ET – Corporate Citizen of Business Standard – Open Republic Achievers AIMA - Business Leader the year Company of
Slide 11: India – A Land of Opportunities
INDIA – A LAND OF OPPORTUNITIES
Slide 12: India Is Becoming a Large and Burgeoning Economy
INDIA IS BECOMING A LARGE AND BURGEONING ECONOMY Fastest growing Opportunity to be a $10Tn Sixth largest economy large economy economy in next 15 years ~ 7% sustained GDP growth rates $3.0 6.8% Tn $ 10 Tn 4.1% Shift Momentum $7.2 Tn Pre Liberalization Post Liberalization $2.6 1960-1991 1991-2017 Tn
Slide 13: Face of Markets Is Changing Rapidly
FACE OF MARKETS IS CHANGING RAPIDLY Rising affluence Evolving consumer trends Technology and innovations Living Standard Measure Profile (LSM) - India 1% 2% 4% 3% 4% 12% 24% 35% 46% 71% 59% 38% 3rd biggest start-up hub in the 2013 2017 2025 E world LSM 0-3 LSM 4-7 LSM 8-10 LSM 11 + LSM Profile: IMRB
Slide 14: With Huge Potential in FMCG
WITH HUGE POTENTIAL IN FMCG Low penetration Low consumption Low premiumization Indian FMCG Market Price Segmentation 2018** Hand Wash* 26 Instant Coffee Face Wash India X Premium 28% Body Lotion Indonesia ~2X Washing Liquids Mid 41% Hair Conditioner China ~4X Soups* Dishwash Liquids FMCG per capita
Slide 15: We Are Well Poised for Growth
WE ARE WELL POISED FOR GROWTH 15
Slide 16: Our Strategy
OUR STRATEGY Building Blocks Portfolio Rigour and Discipline 1. Strengthen the 2. Create categories 3. Drive 4. Generate fuel 5. Execute Core of future premiumization for growth brilliantly Enabled by 6. Create new 7. Transform 8. Build capabilities structures culture (Re-imagining HUL) Purpose-Led,
Slide 17: Our Strategy
OUR STRATEGY Building Blocks Portfolio Rigour and Discipline 1. Strengthen 2. Create categories 3. Drive 4. Generate fuel 5. Execute the Core of future premiumization for growth brilliantly Enabled by 6. Create new 7. Transform 8. Build capabilities structures culture (Re-imagining HUL) Purpose-Led,
Slide 18: Strengthen the Core
STRENGTHEN THE CORE Continuous Act on local Strengthen innovation/renovation trends the reach Bru adapting to consumer Kissan driving palette in different clusters penetration UNDERPINNED BY PURPOSE-LED COMMUNICATIONS AND ENGAGEMENT PLATFORMS 18
Slide 19: Purpose-Led Communications & Engagement Platforms
PURPOSE-LED COMMUNICATIONS & ENGAGEMENT PLATFORMS 19
Slide 20: Our Strategy
OUR STRATEGY Building Blocks Portfolio Rigour and Discipline 1. Strengthen 2. Create categories 3. Drive 4. Generate fuel 5. Execute the Core of future premiumization for growth brilliantly Enabled by 6. Create new 7. Transform 8. Build capabilities structures culture (Re-imagining HUL) Purpose-Led,
Slide 21: Create Categories of Future
CREATE CATEGORIES OF FUTURE Expansion Powered by consumer Drive category penetration More benefits across sub-categories connects – online & offline EXPLODE More benefits ACCELERATE 5X scale up in consumer contacts* SEED Rising Income Increasing penetration in Foraying into Body wash and cleanipedia
Slide 22: Build Naturals
BUILD NATURALS Master brand: Lever Ayush Brand extensions Specialist brands NATURALS PORTFOLIO GROWING AT 2X OF OVERALL HUL AVERAGE 22
Slide 23: Leverage M&A to Expand Portfolio
LEVERAGE M&A TO EXPAND PORTFOLIO Naturals play in Hair Care Strengthen Ice Cream portfolio Leverage Health & Wellness trend * Subject to regulatory approvals coming through; proposal pending with NCLT 23
Slide 24: Our Strategy
OUR STRATEGY Building Blocks Portfolio Rigour and Discipline 1. Strengthen 2. Create categories 3. Drive 4. Generate fuel 5. Execute the Core of future premiumization for growth brilliantly Enabled by 6. Create new 7. Transform 8. Build capabilities structures culture (Re-imagining HUL) Purpose-Led,
Slide 25: Drive Premiumization
DRIVE PREMIUMIZATION Our premium portfolio is over-indexed to market Portfolio straddling the pyramid Price HUL share Index of segment* 1.3X Premium >1.2x 1.3x X Popular > 0.8x & 1.1x <= 1.2x <= 0.8x X Market HUL Mass % contribution of portfolio 25 *Source: Nielsen (Urban + Rural)
Slide 26: Our Strategy
OUR STRATEGY Building Blocks Portfolio Rigour and Discipline 1. Strengthen 2. Create categories 3. Drive 4. Generate fuel 5. Execute the Core of future premiumization for growth brilliantly Enabled by 6. Create new 7. Transform 8. Build capabilities structures culture (Re-imagining HUL) Purpose-Led,
Slide 27: Generate Fuel for Growth
GENERATE FUEL FOR GROWTH End-to-end cost focus Powered by Savings Non Material 1.8x Materials Supply Chain Costs x Return on Marketing Overheads Investments 2014 2015 2016 2017 2018 % of Turnover Driving virtuous cycle Organization wide effort Crowd sourcing of ideas of growth TOTAL SAVINGS > 7% OF
Slide 28: Execute Brilliantly
EXECUTE BRILLIANTLY Systematic expansion in Speed to market Agile supply chain coverage and assortment Effective channel strategy 1.4x Inventory days Service Effective Coverage* x 1.9x Accelerate Channels of Future Faster 55 x +1000bps 0.94 landing of x 0.92 50 0.9 Before Now innovations 45 0.88 0.8
Slide 29: Our Strategy
OUR STRATEGY Building Blocks Portfolio Rigour and Discipline 1. Strengthen the 2. Create categories 3. Drive 4. Generate fuel 5. Execute Core of future premiumization for growth brilliantly Enabled by 6. Create new 7. Transform 8. Build capabilities structures culture (Re-imagining HUL) Purpose-Led,
Slide 30: Create New Structures
CREATE NEW STRUCTURES India WiMI-led distinctive CCBTs empowerment A heterogeneous country strategy at cluster level bringing in agility Example: Low Penetration Markets 15 mini-boards with cross-functional participation More consumer & Grow by removing barriers of customer centric proxy usage Land
Slide 31: Transform Culture
TRANSFORM CULTURE Build diverse and inclusive Focus on holistic wellbeing Nurture experimentation culture workplace +2000 bps 40% improvement in gender balance in last 8 years Distinctive Technology giving Competitive Advantage Embracing inclusion beyond gender and breaking stereotypes People with P
Slide 32: Our Strategy
OUR STRATEGY Building Blocks Portfolio Rigour and Discipline 1. Strengthen the 2. Create categories 3. Drive 4. Generate fuel 5. Execute Core of future premiumization for growth brilliantly Enabled by 6. Create new 7. Transform 8. Build capabilities structures culture (Re-imagining HUL) Purpose-Led,
Slide 33: Digital Trends Shaping India
DIGITAL TRENDS SHAPING INDIA Rise of rural & vernacular Plummeting data costs Shift to mobile viewing content Increased usage Mobile 560 Million 650+ Million 560 Million Internet Rs.205/GB 2016 77% Users* 60% 52% Urban 40% 48% Desktop Laptop/ Smart TV Tablet Rural 2018 2020 E 10% 7% 6% A Rs.12/GB 20
Slide 34: A Full Program Across Business
A FULL PROGRAM ACROSS BUSINESS Organization designed to enable HUL Digital Council: Representation across functions digital transformation 3 Divisions Finance Media HR Legal Market Trans MD & Chairman HUL Digital Council CDO Supply CD E-Com R&D CMI IT Chain PARTNERSHIPS WITH START-UP ECO SYSTEM CD:
Slide 35: Our Digital Transformation Program
OUR DIGITAL TRANSFORMATION PROGRAM RE-IMAGINING HUL AN INTEGRATED E2E ORGANIZATION CHANGE PROGRAM LEVERAGING TECHNOLOGY 35
Slide 36: Re-imagining HUL
RE-IMAGINING HUL Generating Demand Fulfilment Demand ▪ Consumer ▪ Connected Shopper Understanding ▪ Connected Stores ▪ Data Driven ▪ From Service to Fulfilment & capturing top ▪ Retailer App Marketing ▪ Enabling assortment driven traits ▪ Humara Shop ▪ Payment Ecosystem growth MODERN FULFILMENT Pick
Slide 37: Our Strategy
OUR STRATEGY Building Blocks Portfolio Rigour and Discipline 1. Strengthen the 2. Create categories 3. Drive 4. Generate fuel 5. Execute Core of future premiumization for growth brilliantly Enabled by 6. Create new 7. Transform 8. Build capabilities structures culture (Re-imagining HUL) Purpose-Led,
Slide 38: Make Sustainable Living Commonplace
MAKE SUSTAINABLE LIVING COMMONPLACE 38
Slide 39: Driven by Purpose: Our Sustainability Plan
DRIVEN BY PURPOSE : OUR SUSTAINABILITY PLAN Health and well- Enhancing Sustainable Becoming plastic Water being livelihoods sourcing neutral 100,000+ Shakti entrepreneurs Hindustan Unilever 100% TOMATOES REDUCE Foundation > 150 MILLION > 5,20,000 65% TEA Youth benefited with Rin REUSE people impacte
Slide 40: Driven by Purpose: Our Sustainability Plan
DRIVEN BY PURPOSE : OUR SUSTAINABILITY PLAN Health and well- Enhancing Sustainable Becoming plastic Water being livelihoods sourcing neutral 100,000+ Shakti entrepreneurs Hindustan Unilever 100% TOMATOES REDUCE Foundation > 150 MILLION > 5,20,000 65% TEA Youth benefited with Rin REUSE people impacte
Slide 41: AV 1: Start a Little Good – Water
AV 1: START A LITTLE GOOD – WATER 41
Slide 42: AV 2: Hindustan Unilever Foundation (HUF)
AV 2: HINDUSTAN UNILEVER FOUNDATION (HUF) 42
Slide 43: Driven by Purpose: Our Sustainability Plan
DRIVEN BY PURPOSE : OUR SUSTAINABILITY PLAN Health and well- Enhancing Sustainable Becoming plastic Water being livelihoods sourcing neutral 100,000+ Shakti entrepreneurs Hindustan Unilever 100% TOMATOES REDUCE Foundation > 150 MILLION > 5,20,000 65% TEA Youth benefited with Rin REUSE people impacte
Slide 44: Driven by Purpose: Our Sustainability Plan
DRIVEN BY PURPOSE : OUR SUSTAINABILITY PLAN Health and well- Enhancing Sustainable Becoming plastic Water being livelihoods sourcing neutral 100,000+ Shakti entrepreneurs Hindustan Unilever 100% TOMATOES REDUCE Foundation > 150 MILLION > 5,20,000 65% TEA Youth benefited with Rin REUSE people impacte
Slide 45: AV 3: Shakti
(>) AV 3: SHAKTI a ‘
Slide 46: Driven by Purpose: Our Sustainability Plan
DRIVEN BY PURPOSE : OUR SUSTAINABILITY PLAN Health and well- Enhancing Sustainable Becoming plastic Water being livelihoods sourcing neutral 100,000+ Shakti entrepreneurs Hindustan Unilever Foundation > 5,20,000 100% TOMATOES REDUCE > 150 MILLION REUSE people impacted till date Youth benefited with
Slide 47: Driven by Purpose: Our Sustainability Plan
DRIVEN BY PURPOSE : OUR SUSTAINABILITY PLAN Health and well- Enhancing Sustainable Becoming plastic Water being livelihoods sourcing neutral 100,000+ Shakti entrepreneurs Hindustan Unilever 100% TOMATOES REDUCE Foundation > 150 MILLION > 5,20,000 65% TEA Youth benefited with Rin REUSE people impacte
Slide 48: AV 4: Start a Little Good – Plastic
AV 4: START A LITTLE GOOD – PLASTIC 48
Slide 49: Clear and Compelling Goal
CLEAR AND COMPELLING GOAL 4G Growth Consistent, Competitive, Profitable, Responsible Growth 49
Slide 50: HUL Is Re-inventing Itself to Be Purpose-Led, Future-Fit
HUL IS RE-INVENTING ITSELF TO BE PURPOSE-LED, FUTURE-FIT 50
Slide 51: Thank You
THANK For moreYOU information & updates For More Information 51
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