Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Day (September 2021)
195 slides from Hindustan Unilever's investor day presentation, Sep 9, 2021
Slide 1: Exchange filing cover letter: Annual Investor Meet 2021
Hindustan Unilever Limited, Unilever House, B D Sawant Marg, Chakala, Andheri East, Mumbai 400 099 Tel: +91 (22) 50433000 I Web: www.hul.co.in I CIN: L15140MH1933PLC002030 9th September, 2021 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd
Slide 2: Annual Investor Meet 9th September 2021
Annual Investor Meet 9th September 2021 Sensitivity: Internal 1
Slide 3: Safe harbour statement
Jc:t,,rra: ..'lV!Hl ~~-'J~ Safe harbour statement E 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, p
Slide 4: Annual Investor Meet | 9th Sep' 2021
Annual Investor Meet | 9th Sep’ 2021 Sanjiv Mehta – Chairman and Managing Director Sensitivity: Internal 3
Slide 5: India's Largest FMCG Company
India’s Largest FMCG Company 5th Largest ₹450 Bn 130+ years Indian company Top 15 Turnover of proud history in India Foods & HPC company by market capitalisation of Globally 9% CAGR ₹6.5 Tn In last decade 9 out of 10 Brands in 25% Households use one or more of 8 Mn Operating margin stores our brands
Slide 6: Our Distinctive Strengths
~WA \~~~ Our Distinctive Strengths E J C: 1. Purposeful Brands and Wide Portfolio 2. World class R&D 3. Extensive Distribution and Agile Supply Chain 4. Future-fit Talent and Organisational Culture 5. Sustainability at our Core Sensitivity: Internal 5
Slide 7: Purposeful Brands
Purposeful Brands ₹ 50 Bn+ urf excel 50+ Brands --- -------· - - - - - - - - - - - - - - --------- -------· 20 Bn+ 14 ₹ Clow& . fpve/y - - --- - - - - - - - - - - - in India’s 100 Most Trusted Brands ₹ 10 Bn+ ---- ---- --- --------- - - - - - - - - - - -------- --------- --- 16 ₹ 5 Bn+ {QrnJort • -
Slide 8: Wide and Resilient Portfolio
Wide and Resilient Portfolio 15 Categories Skin Cleansing Skin Care Hair Care Oral care Color Cosmetics Talc and Deos >80% Category Leadership Surface and Toilet Fabric Wash & Care Dishwash Water Purifier Cleaners 9/10 Indian households use one or more of our Health Food Drinks - Coffee products eve
Slide 9: Portfolio Transformation
Portfolio Transformation 2020-21 2010-11 F&R 19% F&R 29% BPC ₹45K 40% ₹19K 51% BPC Sales Sales 30% HC 31% HC Covering white spaces through Mergers & Acquisitions FY17 FY19 FY21 FY21 Yr 1 Sales: ₹ 0.3 bn Yr 1 Sales: ₹ 47.5 bn Yr 1 Sales: ₹ 0.5 bn Yr 1 Sales: ₹ 0.8 bn Sensitivity: Internal 8
Slide 10: World Class R&D
World Class R&D 3 R&D centres in India >5,000 Scientists Globally, 650 In India Largest FMCG R&D Mumbai, Bangalore, Gurgaon >100 PhDs & Post Docs in India in India Global network across Purposeful & Strategic collaborations 18 R&D centres India : Global Design Centres for >100 Academic Institutes 10
Slide 11: Extensive Distribution and Agile Supply Chain
Extensive Distribution and Agile Supply Chain 8 Mn Stores sell our Grocery Stores Chemist/ Beauty Channel Shakti products >10% Modern Trade eCommerce Demand captured (Pureplay + B2B+ Omni) Direct to Consumer digitally 30% Flexible capacity 29 Owned Factories | 1150+ Material Suppliers 40+ Manufactur
Slide 12: Future-fit Talent and Organisational Culture
Future-fit Talent and Organisational Culture Diverse & Inclusive High performance Purpose driven culture 21,000 Strong workforce | 2200 Bps Improvement in Experimentation | manager gender balance in last Digital first mindset decade Pioneering Employer of Choice for 12 years in a row Sensitivity: In
Slide 13: Differentiated structures and capabilities
Differentiated structures and capabilities WiMI Strategy Empowered teams Country I Category I Business I Team Harnessing the power of 16 mini boards – De-averaging responsible to deliver in-year results Sensitivity: Internal 12
Slide 14: Sustainability at our Core: Key Highlights
Sustainability at our Core : Key Highlights >154 million people have been reached through our Water, >1,50,000 Sanitation and Hygiene (WASH) initiatives, in India ..• ....· ~1,36,000 • Shakti entrepreneurs empowered tonnes post-consumer use plastic ··.·. SOCIAL ...•. through the Shakti programme by
Slide 15: Our Pillars of Strong Governance
Our Pillars of Strong Governance Leadership Integrity Risk Management -~•&. a - BUSINESS cl INTEGRITY IT' S HOW WE WORK • Board • Audit Committee comprises of only • Deeply rooted values Independent Directors majority Integrity, Respect, Responsibility, Pioneering independent directors Average 30+ y
Slide 16: Consistent high performance over the past decade
~WA \~~~ Consistent high performance over the past decade E J Consistent growth Profitable growth Healthy cash generation ₹ 450 Bn 25% ₹ 680 Bn FY 2021 turnover FY 2021 EBITDA margin Cumulative cash from operations 9% >1000 Bps 12% CAGR growth margin improvement CAGR growth Sensitivity: Internal 15
Slide 17: Creating long-term value for shareholders
Jc:t,,rra: ..'lV!Hl ~~-'J~ Creating long-term value for shareholders E MARKET CAPITALISATION #1 ₹0.6 Tn ₹6.5 Tn FMCG COMPANY IN INDIA #5 2011 2021 10 YEAR SHARE PRICE / INDEX CHANGE* IN INDIA BY MARKET CAP HUL : 9.5X NIFTY : 2.9X Top 15 NIFTY FMCG : 4.3X FOODS & HPC COMPANY GLOBALLY BY MARKET CAP *S
Slide 18: India: Poised for growth
India : Poised for growth Sensitivity: Internal 17
Slide 19: India: Poised for growth
India : Poised for growth One of the fastest Significant headroom to Landmark reforms growing economies grow consumption India’s GDP Ranking Per capita consumption ::··········· .............. . .............. . .........• 2020 06 . India X 5 ■ .= 2025 ,1••······ 0 ••••••• •••••••• t o ·············
Slide 20: India's digital evolution
India’s digital evolution 900 Million+ Internet users in 2025 Rural India School going kids Women t 8% Expected CAGR over next 5 years 71% of the new users will come from rural India Penetration 2020: 39% 2025: 60% Penetration 2020: 38% 2025: 52% Source: Internal Sensitivity: Kantar ICUBE 2020, All
Slide 21: Huge headroom for growth in FMCG
Huge headroom for growth in FMCG Low FMCG per capita Significant potential in Low penetration consumption rural MFD 25 ..•..................................................... ... India X Rural Urban . • Face Wash ....................................................• Indonesia 2X 61% 39% Body Lotion
Slide 22: Favourable demographic and economic trends: Rising Affluence
Favourable demographic and economic trends Rising Affluence 2016 2025 Elite > ₹ 20 lacs p.a. I 2% I I ■ Affluent ₹ 10 – 20 lacs p.a. Aspirers 15% 20% ₹ 5-10 lacs p.a. Strivers 45% 46% ₹ 1.5-5 lacs p.a. Strugglers 31% 18% <₹ 1.5 lacs p.a. Upward mobility in income to fuel consumption growth Source: B
Slide 23: Favourable demographic and economic trends: Households
Favourable demographic and economic trends Young and working population Changing family structures Largest working-class population of 74% of all households will be Nuclear 1.05 Bn Households by 2025 Source: Euromonitor, Kantar, BCG Changing Facets of the Indian Consumer 22 Sensitivity: Internal
Slide 24: Favourable demographic and economic trends: Cities and rural
Favourable demographic and economic trends Growth of emerging cities Rural buoyancy Cities with 1mn population to nearly Distinct resilience in rural momentum double by 2030 post COVID Source: Sensitivity:Oxford Internal Economics, Bain (Future of Consumption), BCG Analytics, Nielsen, WEF 23
Slide 25: Unlocking value in a nation of paradoxes
Unlocking value in a nation of paradoxes Win In Rural, Win In Urban Win In Mass, Win In Premium Win With Millennials, Win With Elders Win In Wall Paintings, Win In Digital Win In Kiranas, Win In MT & Ecom Sensitivity: Internal 24
Slide 26: Consumer of the Future: Some mega trends
Consumer of the Future : Some mega trends Holistic Health Search for Un-stereotype Authenticity Hyper- E-everything Net Zero personalisation Sensitivity: Internal 25
Slide 27: Un-stereotype
Un-stereotype ▪ Reject labels ▪ Greater sense of self-worth ▪ Embrace the unconventional 0 Sensitivity: Internal Dove: Stop the Beauty Test 26
Slide 28: Holistic health
Holistic health ▪ Healthier products, priorities & lifestyles ▪ Extends beyond physical health ▪ Immunity and resilience in adversity 0 Sensitivity: Internal Horlicks: When did you grow up? 27
Slide 29: Search for authenticity
Search for authenticity ▪ Reconnect with one’s roots ▪ Spirit of a ‘new localism’ ▪ Homegrown versions of modernity 0 Sensitivity: Internal Red Label Natural Care 28
Slide 30: Hyper-personalisation
Hyper - personalisation ▪ Meaningful connections ▪ Powered digitally 0 Sensitivity: Internal Lakme 29
Slide 31: E-everything
E-everything ▪ ‘Tech-celeration’ of consumer life ▪ Digitally fueled lifestyle 0 Sensitivity: Internal Lakme Virtual Fashion Week 30
Slide 32: Net Zero
Net Zero ▪ Green awakening ▪ 70% of global consumers more aware of the climate crisis than pre-COVID ▪ Earth Positive, Nature Positive and Climate Positive will appeal 0 Sensitivity: Internal Start a Little Good: Water Shower Film 31
Slide 33: The new decade
DECADE con On NING@Ii | THE NEW Wi)
Slide 34: The Unilever Compass
The Unilever Compass Our Vision Our Purpose is to be a leader in sustainable business. We will demonstrate how our purpose-led, future-fit business model drives superior is to make performance delivering consistent, competitive, profitable and sustainable living responsible growth. commonplace 33 Se
Slide 35: HUL Compass Commitments
HUL Compass Commitments Improve tlHt net le'I health. tribute to a fairer;,,.d Improve peopd ellbelng hulth of the pla conffdenc.e an w Con more socIa lly Inclusive w cuma.t■ Protci:t an-a wane-tree Po1lithre Hli21tl'tand utty, d.lv1rs1ty actlan reg1merot1! nature wor:ld nutrition wellbl!lng t;:~nd
Slide 36: Five strategic choices
~WA \~~~ Five strategic choices E J C: 1. Developing our portfolio 2. Win with our brands as a force for good, powered by purpose and innovation 3. Lead in the channels of the future 4. Build differentiated structures and capabilities 5. Build a purpose-led, future-fit organisation and growth cultur
Slide 37: 1. Developing our portfolio
1. Developing our portfolio Un-stereotype Holistic Health Authenticity Personalisation E-everything Net Zero Growing the Core Market Development Premiumization OUR ST SOAP • RGLOW More users | More usage | Upgrading consumers to Superior Products More Benefits higher order benefits 36 Sensitivity: I
Slide 38: 2. Win with our brands as a force for good
2. Win with our brands as a force for good, powered by purpose and innovations Un-stereotype Holistic Health Authenticity Personalisation E-everything Net Zero World class technology Product superiority Purpose drives growth PEPSODENT VIM BAR BENEFITS Rajeshwari was not GERMICHECK+ pretty enough for
Slide 39: 3. Lead in channels of the future
3. Lead in channels of the future Un-stereotype Holistic Health Authenticity Personalisation E-everything Net Zero Digitising General Trade Design for Channel New routes to consumers - CLI MATE PROTE CT ION SHAMPO O It 5 • tOifff Ml ,our.,.. pieced Ofdef' ta•, Q 1IITII UPTO KERATIN. OLIVE OIL 4 % 0F
Slide 40: WiMI play in LUX
4. Build differentiated structures and capabilities WiMI play in LUX Different product mixes for different parts of India 7 BEAUTY INGREDIENTS 7 BEAUTY INOR£01£NTI 39 Sensitivity: Internal
Slide 41: Reimagine HUL: Journey to an Intelligent Enterprise
4. Build differentiated structures and capabilities Reimagine HUL: Journey to an Intelligent Enterprise Yesterday Tomorrow 11 . . . fi . . . .. g Data, Tech& Analytics Source Manufacture Distribute Sales From Traditional Linear Value Chain to Non-Liner and Inter-connected Ecosystems 40 Sensitivity:
Slide 42: 5. Building a purpose-led, future-fit organization and growth culture
5. Building a purpose-led, future-fit organization and growth culture Agile & Future-Fit Truly Inclusive Culture to Outperform Organization -- 1 TALENT II., ECOSYSTEM - ~- #unstereotype the workplace FOR IE VERY,O NE. skills & Future proofing Igniting thehuman spark ways of working Microcosm of Indi
Slide 43: Building Leaders of the Future
~WA \~~~ 5. Building Leaders of the Future E J 1. Compassion 7. Humbition 2. Sensemaking Leadership 6. BrutalOptimism Traits of the Future 3.Collaboration 5. Agility&Responsiveness 4.PurposeDriven Sensitivity: Internal 42
Slide 44: In Summary
. ,,!!4l: ~m'.:i In Summary Our Vision Growth mindset is to be a leader in sustainable business. We will demonstrate how our purpose-led, future-fit business model drives superior Long term performance delivering value creation consistent, competitive, High performance Distinctive profitable and res
Slide 45: Beauty & Personal Care
HUL ANNUAL INVESTOR MEETING – SEPT’21 BEAUTY & PERSONAL CARE Priya Nair, Executive Director & EVP Sensitivity: Internal 44
Slide 46: Beauty & Personal Care
Beauty & Personal Care Performance #1 Beauty & Personal Care company in India 1.7x 29% Turnover Operating Margin #1 #1 #1 Skin Cleansing Skin Care Hair Care (2011-20) (FY’2021) Dove I UY ~ POND'S Clow& @Vel!f CUNIC PLUS+ ~--- ·. ~ Big Brands 6 brands with Turnover > 1000 Crs #1 #2 Color Cosmetics Or
Slide 47: Huge headroom to premiumise & develop the market
Huge headroom to premiumise & develop the market India is at the lower end of the Market Formats & Benefit Segments are Significant headroom even in Development curve under-penetrated well-penetrated categories Category Penetration% Skin Cleansing %Disposable Income spent on Face Care • Thailand • C
Slide 48: Some trends shaping Beauty & Personal Care evolution in India
Some trends shaping Beauty & Personal Care evolution in India Nature-based beauty Nature meets Science Enhanced Self-care Bespoke solutions Clean Beauty Potency & efficacy Beauty as therapy Designed for me (sustainability & no-nasties) Expert-backed Ingredient story Sensitivity: Internal 47
Slide 49: Emerging top-end consumer, ahead on adoption curve
Emerging top-end consumer, ahead on adoption curve Increasing Rise of Digital Trends becoming Affluence & Ecommerce sizeable at the top-end 2025 Rising penetration & Elite time-spent on digital Affluent Increasing adoption of new formats like Skin & Hair Serums, Sheet masks, Hair masks 25-30 Mn Aspi
Slide 50: Our key priorities for winning in the next decade
~ •Ina 1r~i1J1?:. ~~ Our key priorities for winning in the next decade ( C: fi 1 2 3 4 00 Jg ~ GROW THE CORE PREMIUMISATION & WIN WITH CONSUMER PEOPLE & PLANET MARKET DEVELOPMENT OF THE FUTURE: POSITIVE DIGITAL & E-COMMERCE BEAUTY Sensitivity: Internal 49
Slide 51: Our Key Priorities
~ •Ina 1r~i1J1?:. ~~ Our Key Priorities ( C: fi •-------------------------------------------------------------• 1 2 3 4 00 Jg ~ GROW THE CORE PREMIUMISATION & WIN WITH CONSUMER PEOPLE & PLANET MARKET DEVELOPMENT OF THE FUTURE: POSITIVE DIGITAL & E-COMMERCE BEAUTY Sensitivity: Internal 50
Slide 52: Continued focus on building Purposeful Brands
Continued focus on building Purposeful Brands Clow& CONIC Jgvely PLUS+ Dove CLl'NIC l't.US = Mahak was not pretty enough for her would be in-laws. To us, she is beautiful. f{)vely Dove Look for t he beauty. Not the flaws. #StopTheBeautyTest Sensitivity: Internal 51
Slide 53: Lifebuoy public service announcement
Lifebuoy public service announcement : AV 0 Lifebuoy Public Service Announcement Sensitivity: Internal 52
Slide 54: Consistently delivering Superior Products
Consistently delivering Superior Products Soft Glow ROSE & VITAMIN E o Stronger Bl!AUTY erm Protection• INGREDIENTS Ai®B Doe Sensitivity: Internal 53
Slide 55: Contemporizing our Core Brands: Lux
Contemporizing our Core Brands : Lux AV OUR EST SOAP ~ OR GLOW 0 Lux: Best Soap for Glow Sensitivity: Internal 54
Slide 56: Extending our leadership position
Extending our leadership position #1 SOAP brand in India #1 HYGIENE brand in Skin Cleansing #1 HAND SANITIZER brand Strengthening Hygiene Credentials Driving formats Source : Nielsen Sensitivity: Internal 55
Slide 57: Driving penetration in rural India by going deep & building access
Driving penetration in rural India by going deep & building access District-level planning & Driving Mental Reach & Physical Reach for execution access packs \ ave Dove --- - •- NUTRIT IVE SOLU IONS / Sensitivity: Internal 56
Slide 58: Designing to Win in the Many Indias
Designing to Win in the Many Indias Differentiated product mixes Locally relevant communication 7 BEAUTY INGREDIENTS HAUTY 7 IICGR(DIUI Ta Sensitivity: Internal 57
Slide 59: Lux WiMI communication
Lux WiMI communication : AV 0 Lux: WiMI communication Sensitivity: Internal 58
Slide 60: Our Key Priorities
~ •Ina 1r~i1J1?:. ~~ Our Key Priorities ( C: fi •------------------------------------------------------------- 1 2 3 4 00 Jg ~ GROW THE CORE PREMIUMISATION & WIN WITH CONSUMER PEOPLE & PLANET MARKET DEVELOPMENT OF THE FUTURE: POSITIVE DIGITAL & E-COMMERCE BEAUTY Sensitivity: Internal 59
Slide 61: Right to Win & Authority to Lead
Right to Win & Authority to Lead Our Brands own the aspirational equities We are MARKET LEADERS and across categories MARKET MAKERS in India Dove LAKME - Dove I Dove •. I Dove I Market Maker : Hair Conditioners Dove is India’s #1 Conditioner brand l.M,.,., 9ro5 ______ Market Maker : BB/CC creams ind
Slide 62: Addressing key Triggers & Barriers for category adoption
Addressing key Triggers & Barriers for category adoption Indicting current habit Explaining Benefit Category Education Dove Body Wash Just Shampoo· CLEANS MOISTURISES Shampoo+ Dove like a soap like a cream Hair Fal esc-ue Conditioner DID YOU KNOW? Dove Deeply Nourishing NOURISttiNG ICIO'rv.UM J @ On
Slide 63: Dove Body Wash
Dove Body Wash : AV SOFT, MOISTURISED SKIN Dove AFTER EVERY SHOWER "MAP ~ 11 5 ~nc!USl\/8 of taxes) for 190ml pack. Limited stock offer available n select/cities/outside 0 Dove Body Wash Sensitivity: Internal 62
Slide 64: Education & Sampling at scale, through multiple touchpoints
Education & Sampling at scale, through multiple touchpoints Beauty Experts Medical Marketing Pepsoden Beauty Advisors Shopper Soulmates Online Sampling Home-to-Home College Contact Program ✓ Rexona C°'lfc~ Sensitivity: Internal 63
Slide 65: Democratizing key trends, building new formats & benefits
Democratizing key trends, building new formats & benefits Democratizing body washes Building future formats Creating new benefit segments LAKME POND'S POND'S • Dove Deeply Nourishing NOURISMING 80D'l'WASH GETAWATER FRESH GLOW FOR 24 HOUR MOISTURISATION t n. ltd• \ l(l 800 ml LAI< 9roS cc Source : Ni
Slide 66: Strengthening our play in Naturals
Strengthening our play in Naturals Naturals Masterbrands Natural Variants on our Core Brands Dove SECRETS _.. rndulekha Imm 0 lOO% Stronger Germ Protection· n Build Indulekha Insurgent approach in top-end space Sensitivity: Internal 65
Slide 67: Our Key Priorities
~ •Ina 1r~i1J1?:. ~~ Our Key Priorities ( C: fi i-------------------------------------------------------------1 1 2 3 4 00 Jg ~ GROW THE CORE PREMIUMISATION & WIN WITH CONSUMER PEOPLE & PLANET MARKET DEVELOPMENT OF THE FUTURE: POSITIVE DIGITAL & E-COMMERCE BEAUTY Sensitivity: Internal 66
Slide 68: Design for Channel Innovations: Ecommerce
Design for Channel Innovations : Ecommerce Sheet Masks Skin Serums Hair Masks FRUIT FACIAl UKE GlOW IN 15 MINS LAKME9ra5 - Hair Serums VITAMIN C+SKINCARE RANGE GET HEALTHY GLOWING SKIN Sensitivity: Internal 67
Slide 69: Lakme Sheet Masks
Lakme Sheet Masks : AV 0 Lakme Sheet Masks Sensitivity: Internal 68
Slide 70: Premium Beauty Business Unit
Premium Beauty Business Unit Digital-first marketing approach Agile Innovation model Always-on insight mining to spot trends - ' - t' ':m-' New M .. . Nourished hair, glowing skin f the planet. , .... .,...z., , ' ':t' ~\ -:r,,;t:.-, ,. & a little love or ~ Rapid Prototyping to learn & adapt - • ' -
Slide 71: Digital: Staying ahead of the game
Digital : Staying ahead of the game Always-on full funnel marketing Influencer Marketing at scale Leading Organic Conversations •---· Winning in Search & Beauty Tech D2C Performance Marketing Sensitivity: Internal 70
Slide 72: Our Key Priorities
~ •Ina 1r~i1J1?:. ~~ Our Key Priorities ( C: fi •-------------------------------------------------------------1 1 2 3 4 00 Jg ~ GROW THE CORE PREMIUMISATION & WIN WITH CONSUMER PEOPLE & PLANET MARKET DEVELOPMENT OF THE FUTURE: POSITIVE DIGITAL & E-COMMERCE BEAUTY Sensitivity: Internal 71
Slide 73: Creating a People & Planet Positive business
Creating a People & Planet Positive business People Positive Planet Positive Circular Packaging : Lesser/Better/No Plastic t_ ove It's time we changed IDEA OF BEAUTY _ __,..,~...._......, - ........................ ................... ----------..-... #• -- ...-- Aloe Fresh '-.I MADE WITH PCR .....
Slide 74: A Beauty & Personal Care Business set to win in the next decade
~t£~ \ ~WA A Beauty & Personal Care Business set to win in the next decade E J Huge headroom to grow Authority to Lead and Right to Win Strong strategy to win today and tomorrow People and Planet Positive at our heart Sensitivity: Internal 73
Slide 75: Home Care
HUL Annual Investor Meeting I Sep’21 HOME CARE Prabha Narasimhan, Executive Director HC Annual Investor Meeting | Sep’21 ,urf excel • ~ Sensitivity: Internal . t "" •.- ' ... 74
Slide 76: A business that continuously learns and grows
2011 – 20 : A business that continuously learns and grows Turnover Operating Margin 2011-20 FY’21 PORTFOLIO TRANSFORMATION 2.3X 20% WINNING IN MANY INDIAS SUPERIOR PRODUCTS 4 Brands with Turnover > 1000 Crs Surf: > 5000 Crs Brand turnover MARKET DEVELOPMENT AT SCALE PURPOSEFUL BRANDS ¾rtl· 8AC8 #1 #
Slide 77: Strong market positions across segments
Strong market positions across segments #1 #1 #2 LAUNDRY DISHWASH SURFACE CLEANING Sensitivity: Internal 76
Slide 78: Long term consumer drivers
Long term consumer drivers - - More surfaces Automation Modern day & benefits in of laundry living & Dish & Surface wardrobes Cleaning Changing Consumer consumer Environment trust at a access under stress premium channels Sensitivity: Internal 77
Slide 79: Our strategy
IJ ~u,,a....-1..i,,,;w. Our strategy MARKET DEVELOPMENT WIN IN CHANNELS OF PIONEER CLEAN GROW THE CORE AT SCALE FUTURE FUTURE ffi m- e8 . ::f~ ::-:,,. .:. -. I ~ -- - ··-.--·.. . . Making your home a better place I Making our world a better home Sensitivity: Internal 78
Slide 80: Our strategy: Grow the core
Our strategy ~ -M°ARKEf DEVELOPMENT GROW THE CORE ..::=.. ATSCALE 83 m- {l Making your home a better place I Making our world a better home Sensitivity: Internal 79
Slide 81: Core laundry has huge headroom for growth
With over half the market still operating in the mass segment Core laundry has huge headroom for growth PORTFOLIO GEARED TO DRIVE PREMIUMISATION MARKET HUL SHARE OF SEGMENT VOLUME SEGMENT (2020) CONTRIBUTION (2020) {PREMIUM ] 14% 3.0X --------------------------------------- -------------------------
Slide 82: The premiumization S-Curve varies by region and hence WiMI is key
u. 'II ~u..a.--u...a..t The premiumization S-Curve varies by region and hence WiMI is key WIMI DEAVERAGING – WE HAVE SCALE IN MOST CLUSTERS TO WIN CONSISTENTLY UTTAR PRADESH – 75% MASS PUNJAB – 50% MASS FRAGMENTED MARKET PRICE i PRODUCT I I. PROMOTION MAHARASHTRA – 70% MASS RIGHT PACK-PRODUCT-PRICE
Slide 83: Driving product superiority and brand purpose
Driving product superiority and brand purpose SUPERIOR PRODUCTS PURPOSEFUL BRANDS – SAY & DO PERSUASIVE COMMUNICATION Vim : Get ahead of Dishwashing Surf Matic: Protecting the environment Sunlight: Whatever be your age; live life in colours Sensitivity: Internal 82
Slide 84: Surf Matic, Vim and Sunlight AV
Surf Matic, Vim and Sunlight AV 0 Surf Matic, Vim and Sunlight AV Sensitivity: Internal 83
Slide 85: Our strategy: Market development at scale
Our strategy MARKET DEVELOPMENT AT SCALE 83 m- Making your home a better place I Making our world a better home Sensitivity: Internal 84
Slide 86: Market development of future categories
Market development of future categories fC f ( HUGE TOPLINE, BOTTOMLINE & WINNING MARKET DEVELOPMENT SHARE OPPORTUNITY DE-AVERAGED & PRIORITISED PLAYBOOK DET LIQUIDS FABRIC CONDITIONERS PRIORITIZED PRODUCT GEOGRAPHIES BASIS POTENTIAL SUPERIORITY VS POWDER 2X Realization Accretive per wash GM PERSUAS
Slide 87: Comfort AV
Comfort AV 0 Comfort AV Sensitivity: Internal 86
Slide 88: Water and Air Wellness: Key growth drivers
Water and Air Wellness : Key growth drivers PURPOSEFUL & FUTURE FIT WIN WITH CONSUMERS ACCELERATE E – COMMERCE ON DIGITAL INNOVATION DRIVE BENEFITS OF IMMUNITY AND DRIVE DISCOVERABILITY DRIVE HIGHER CONVERSION WITH WATER SAVING & AVAILABILITY D2C WEBSITE Advanced Pro RO- Mineral Enriched, 100% Safe
Slide 89: Our strategy: Win in channels of future
Our strategy ~ MARKET DEVELOPMENT WIN IN CHANNELS OF ..::=.. ATSCALE FUTURE EE ~ Making your home a better place I Making our world a better home Sensitivity: Internal 88
Slide 90: Driving share and value in modern trade
Driving share and value in modern trade CATEGORY CAPTAINCY IN MODERN TRADE 2X SHARE OF SHELF | RIGHT PLANO | EDUCATION IN-STORE STRONG CUSTOMER BUY-IN WITH 2X HIGHER CATEGORY GROWTH ---- 0 STAIN REMOVERS HAND WASH SPECIALIST • MACHINE SPECIALIST Li. FABRIC CONDITIONER ~~ - - - -- ~ PARTNERSHIPS TO D
Slide 91: Design for channel in eCommerce
Design for channel in eCommerce BETTER DISCOVERABILITY -=,= E]e=···= HIGHER REALISATIONS WORLD CLASS BRAND STORES AND CONTENT ~- -~ PRODUCT COMBOS TO DRIVE UNIT I.IW-(tOTK,S ~ ,,.,&...X ECONOMICS ATOUCH OF \9"!,vl" ............................. -- ,.,.,_..........._. .. . .... •11~,.o - ............
Slide 92: Our strategy: Pioneer clean future
Our strategy PIONEER CLEAN ~ MARKET DEVELOPMENT FUTURE ..:::.. ATSCALE 83 Making your home a better place I Making our world a better home Sensitivity: Internal 91
Slide 93: Pioneer a Clean Future
Pioneer a Clean Future 100% RENEWABLE or CIRCULAR FEEDSTOCK WITHOUT DEFORESTATION SUSTAINABLE SUPERIOR BIODEGRADABILITY & WATER REDUCING CARBON EFFICIENCY ACROSS PRODUCT LIFECYCLE AFFORDABLE ZERO PLASTIC WASTE 92 Sensitivity: Internal
Slide 94: Key focus areas for a cleaner future
Key focus areas for a cleaner future PLASTICS DISRUPTIVE PRODUCT DESIGN WATER SAVING Our RECYCLABLE AND PCR ECODESIGN: SUPERIOR 40% REDUCTION IN Endeavour BENEFIT AND ECOFRIENDLY CONSUMER WATER SPENDING BY 2030 New Technology for Bars 50% PCR BOTTLE FOR COMFORT & MATIC BY EXIT 2021 Bio enzymes & wei
Slide 95: Our strategy
IJ ~u,,a....-1..i,,,;w. Our strategy MARKET DEVELOPMENT WIN IN CHANNELS OF PIONEER CLEAN PREMIUMIZE CORE AT SCALE FUTURE FUTURE ffi m- e8 . ::f~ ::-:,,. .:. -. I ~ -- - ··-.--·.. . . Making your home a better place I Making our world a better home Sensitivity: Internal 94
Slide 96: Foods & Refreshment
Foods & Refreshment Srinandan Sundaram Executive Director, F&R Sensitivity: Internal 95
Slide 97: A very strong business with a proven track record
~1 t~· A very strong business with a PROVEN TRACK RECORD ~u~~ One of the largest listed F&R Strong Category Leadership Huge Headroom to Expand company in India Category Penetration % Revenue Rs Crs ₹13,204 Cr FY 20-21 0#1 Tomato Ketchup 040 {ftir/lr{© 0#1 Coffee Health Food Drinks 027 025 lliliiJ1-
Slide 98: F&R Purpose: Nourish a Billion Lives & bring home a Billion Smiles
F&R Purpose: Nourish a Billion Lives & bring home a Billion Smiles Beverages Nutrition Foods Lead the expansion of Tea and Coffee Solve India’s Protein & micronutrient Lead the processed food revolution in as a beacon of Sustainable Agri deficiency, by getting every Indian India that will transform
Slide 99: A strategy to continue winning in the next decade
And a strategy to continue winning in the next decade Bridging India’s Nutrient Deficiency #UNSTEREOTYPE Core Categories Accelerate Out of Home Channel Functional Nutrition Purposeful Brands & Insightful comms Growth WhoJ/s in, Horficks? = Introduce High Science based Market Development Sustainable
Slide 100: A Strategy to continue winning in the next decade
And a Strategy to continue winning in the next decade Bridging India’s Nutrient Deficiency #UNSTEREOTYPE Core Categories Accelerate Out of Home Channel Functional Nutrition Purposeful Brand & Insightful comms Growth WhoJ/s in, Horficks? = Introduce High Science based Market Development Sustainable F
Slide 101: Huge opportunity to address unbalanced Nutrition
Huge opportunity to address unbalanced Nutrition Indian diet is deficient in Protein and Micro Nutrients Major Carb. Sources Recommended Actual - Daily calorific Value intake (Kcal) 850 1,204 Proteins Sources 879 310 Added Fats Sources 450 232 Fruits & Vegetables 204 159 \~ ----- ----- ----- ----- -
Slide 102: A portfolio designed to address nutrition deficiencies
A portfolio designed to address nutrition deficiencies 101 Sensitivity: Internal
Slide 103: The journey of Nourishing a Billion lives
The journey of Nourishing a Billion lives Explain what’s inside the cup of Horlicks Get to More Stores What's mHorficks? · Direct = Coverage X 2X Calcium + Iron + v·itamlnc Baseline Dec’21 10X Rural Villages Shakti 2021 vs 19 Test and Taste WIN with Cord Cutters & TV viewers E-Com 100X 2X Media Mix
Slide 104: Horlicks Food Equivalence
Horlicks AV Horlicks Food Equivalence 0 103 Sensitivity: Internal
Slide 105: #UNSTEREOTYPING Sports with Boost
#UNSTEREOTYPING Sports with Boost Boost: Iconic brand synonymous with New #UNSTEREOTYPE copy Cricket 104 Sensitivity: Internal
Slide 106: Boost AV
Boost AV Boost AV 0 105 Sensitivity: Internal
Slide 107: Bringing scale of HUL to augment Nutrition expertise
Bringing scale of HUL to augment Nutrition expertise People Process Performance th 16 l~ CCBT T m 700,000 Stores 0 Integration Synergy Ahead of Plan 106 Sensitivity: Internal
Slide 108: Design a High science portfolio around lifestyle diseases
Design a High science portfolio around lifestyle diseases 1 out of 3 women susceptible to 80% of population deficient in Protein Osteoporosis Jf~v. bfocalsor Ill 1nfoc.lls,.,.,,ct, "iii VOU, I •.~ 0 tr~•. g_ 26 a,._ 0 "' . . "0 80% Ill C oflheul1>.,n_, o- populill0"1$ -c o- W,,mn 0-<Uf'C"ll<II lii t
Slide 109: A High Science Range to address rampant life stage issues
A High Science Range to address rampant life stage issues Get 30% of your daily protein need - - Get 100% daily Calcium and Vitamin D~ ' llrlrl,(4s u, ..,Cl) G) I oy·· . .a..n . < • Hi,gh d'-t•ry flbfe 10 IVPIX)r\ > a :> . •- .J WEIGHT MANAGEMENT Q 0-. :.=-, • • 108 Sensitivity: Internal
Slide 110: Step change in capability to win in channels of the future
Step change in capability to win in channels of the future Augmenting eCom ready Enriching Digital POS Brilliant Basics packs On line availability ...,_,, ______ ___ ..................... Indexed ...... --... - --:-::.-- 1.2x x x Horlidcs ..0 Q1'21 Q2'21 Q3'21 C Cl) Search E"' .. o:, ::::. ..J Perfo
Slide 111: Strategy to continue winning in the next decade
Strategy to continue winning in the next decade Bridging India’s Nutrient Deficiency #UNSTEREOTYPE Core Categories Accelerate Out of Home Channel Functional Nutrition Purposeful Brands & Insightful comms Growth Introduce High Science based Market Development Sustainable Farm to Fork Innovations of n
Slide 112: Tea: A proven flywheel strategy to deliver growth & market share
Tea : A proven flywheel strategy to deliver growth & market share Driving Core through Upgradation from Loose New Benefit Segments premiumisation to Packaged Mkt Indexed Contrb. Share 10% 3.4X 25% 1.1X 35% X 30% -- 111 Sensitivity: Internal
Slide 113: Taj Mahal Tea & Taaza
Taj Mahal Tea & Taaza AV Taj Mahal Tea & Taaza 0 112 Sensitivity: Internal
Slide 114: Executing national equities locally, leveraging captive capability
Executing national equities locally, leveraging captive capability Winning in Many Indias with Accelerated growth and Captive End to End capabilities Brands, packs and formulation strengthened market leadership in house in HUL Tea Topline (Indexed) & Market Share (Indexed) 1.9X Procurement Expertise
Slide 115: Get India to wake up to the smell of coffee
Get India to wake up to the smell of coffee Market Development Market Development Core product improvement to deliver superior taste and 17% experience Category penetration North’s preference for beaten coffee फेटी हुई कॉफी Premiumisation 87% Category penetration Core product to deliver Coffee with
Slide 116: Foods – Portfolio transformation through On-trend Innovations
Foods – Portfolio transformation through On-trend Innovations Market Leaders in Core Making Host Food Tastier Making Protein Delicious Ketchup Market Share RlD'SN0.1 Volume Indexed 123 MANO IA. 100 Restaurant like Food at Home Goodness of Real Chicken Source: Nielsen 115 Sensitivity: Internal
Slide 117: Knorr Soups & Kissan Peanut Butter
Knorr Soups & Kissan Peanut Butter AV Knorr Soups & Kissan Peanut Butter 0 116 Sensitivity: Internal
Slide 118: Strategy to continue winning in the next decade
Strategy to continue winning in the next decade Bridging India’s Nutrient Deficiency #UNSTEREOTYPE Core Categories Accelerate Out of Home Channel Functional Nutrition Purposeful Brand & Insightful comms Growth Introduce High Science based Market Development Sustainable Farm to Fork Innovations of ne
Slide 119: Ice Cream: Help spread a Billion Smiles
Ice Cream: Help spread a Billion Smiles Low per capita consumption of Ice creams One of the fastest growing countries; Massive headroom to grow Will be a ~€6 bn market by 2028 Per Capita Consumption India Market Size l/annum 8X 21X 7X 6X CAGR 15% WORLD CAGR 2.2 X #3 4X 2X X X 15% World #17 #10 2013
Slide 120: Unilever Food Solutions to maximise on the eating out trend
Unilever Food Solutions to maximise on the eating out trend Major Opportunity for Creating a Digital Route to Local + Global Portfolio Acceleration market ₹ 2500 Cr Addressable Market Chef’s Digitally - Seasonings ~IEAl MAYONNA ISE' Connected to UFS Value-added CtC'MI) & IUdl Tut t Sauces Unilever F
Slide 121: Strategy to continue winning in the next decade
Strategy to continue winning in the next decade Bridging India’s Nutrient Deficiency #UNSTEREOTYPE Core Categories Accelerate Out of Home Channel Functional Nutrition Purposeful Brand & Insightful comms Growth Introduce High Science based Market Development Sustainable Farm to Fork Innovations of ne
Slide 122: One of the largest buyers of Agri commodities
One of the largest buyers of Agri commodities HUL will do well by doing Good for Consumers, Farmers and Environment 121 Sensitivity: Internal
Slide 123: Our sustainable sourcing flywheel
Our sustainable sourcing flywheel Tomato Example Upskilling Crop Sustainable Planning Socio Economic Farmers Best Price Impact Lower Loss Sahyadri Assured supply HUL Farms Improved Quality Social impact Scale benefits Savings Assured demand Technology Access 122 Sensitivity: Internal
Slide 124: Sahyadri Partnership
Sahyadri Farms AV Sahyadri Partnership 0 123 Sensitivity: Internal
Slide 125: Our Ambition - Taste Good, Feel Good, Force for Good
Our Ambition - Taste Good, Feel Good, Force for Good Bridging India’s Nutrient Deficiency #UNSTEREOTYPE Core Categories Accelerate Out of Home Channel Functional Nutrition Purposeful Brands & Insightful comms Growth WhoJ/s in, Horficks? = Introduce High Science based Market Development Sustainable F
Slide 126: Dr. Vibhav R. Sanzgiri, Executive Director, R&D
Dr. Vibhav R. Sanzgiri Executive Director, R&D A Strong, Globally Connected R&Dteam V Ck>balCentreofhc:.U..nc:e 18 R&D Centers Key """ltl•mo.rttet hub 125 Sensitivity: Internal
Slide 127: World Class R&D
World Class R&D 60+ 650+ 100+ PhDs + Top STEM Talent 3 R&D Centers Glorious Years Scientists From Leading Indian & @Bangalore, of R&D at HUL in India Mumbai, Gurgaon Global Universities 18 R&D 18R&D Largest FMCG Labs of Future Fit for Centers Centers R&D D&I, Digital & Automation Across Across Globa
Slide 128: Pioneering: Industry, Market & Unilever
Pioneering : Industry, Market & Unilever Transforming Soaps With Revolutionary Hygiene Technologies Affordable & Sustainable Home Care Vegetal Fats & Oils Including Immunity ---·-·· .,,....-.,, .... - .-._~...._1...._~-..~- ~ Innovating Holistic Innovating HoUstlc Skin Skin Glow Glow Remodelling Tea
Slide 129: R&D strategy in action
R&D strategy in action p ls tomake sustainable living commonplace ·ilidl- · 1. Consumer focused Superior Products 2. Sustainability at core of R&D 3. Next generation Science & Technology 4. Reimagine R&D Sensitivity: Internal 128
Slide 130: Consumer focused Superior Products
Consumer focused Superior Products Superior Fragrance & Sensorials Superior Yet Gentle Functionality Leveraging Neuroscience Structured Care Liquid With Patented Processing t e m agic from Dove Conditioners. For tangle-free, shiny hair. Dzve D <1,ve J J ~ i:=:-. ~ = liiiiiiiii- ~ 129 Sensitivity: In
Slide 131: Driving superiority with Positive Nutrition
Driving superiority with Positive Nutrition Responsible Health & Wellness Real Honest Ingredients Targeted life-stages and need-spaces Good Proteins & Fats DID YOU KNOW I Mrve .. tttttaft PnlllU\ llllltf tHt) hff H Ml.IC,_ llvtftUty of ptotehlH '---- ACCESS 10 HUL RANKS #1 IN INDIA ACCESS TO NUTRITI
Slide 132: With the times: Consistent, Competitive and On-Trend
With the times : Consistent, Competitive and On-Trend Superior Performance Differentiated Technology On-Trend 12 HOURS NON STOP MAm· ~~hotom•trk Mnsuremtnta I l I I I I l I ! 111 UD"HU U U llB ~ - LAKME 9ro.5 PRIMER+MATIE LIPSTICI y 131 Sensitivity: Internal 131
Slide 133: Sustainable products for a Clean Future
Sustainable products for a Clean Future Biosurfactants Carbon Capture Eco-Design Plant-based, Renewable & Low Carbon Products Biodegradable Wash-Rinse Efficiency SUPERIOR ECO-CLEAN & •• PERFORMANCE WITH LESSER CHEMICALS SMART-FOAM SAVES 200 BILLION LITRES OF WATER CARBON RAINBOW · ~ C r-:, 2 In acti
Slide 134: Circular Packaging: Lesser/Better/No Plastic
Circular Packaging : Lesser/Better/No Plastic Recyclable Post-Consumer Recycled Plastic Reduction Refill (Smart Fill) AGAIN 0 ~ CHALLENGES SOLUTIONS Non detectable black Detectable black • Barrier properties • PCR Plastic Availability • Transit Performance • Awareness • Aesthetics • Black Plastic Re
Slide 135: Next Generational Science
Next Generational Science Immunity : Inside & Outside Skinification : Glow & Benefits NO N -GR EA SY RADIANCEsHINE i~BRIGHTNESS:;Fm z ~~LTHY SKIN CLARITY ;~ EVEN SKIN TONEli SMOOTH 1 ! KI U IE c:im Lifebuoy Immunity Boosting Hand Sanitizer l ;i :-::~~;:: n 134 Sensitivity: Internal
Slide 136: Developing deep domain expertise
Developing deep domain expertise Microbiome : Home & Hygiene Immune Response: Holistic Understanding ~ u.....ew..- ~ . ....... ~ Jncbsl\i -...-.;... ~.,, ..... HSER PUNF HUL Sponsors Largest Study Immune Response to SARS-CoV-2 with leading experts Diverse Diverse Markers Markers that that could coul
Slide 137: REIMAGINE R&D: Future-Fit R&D capabilities & talent
REIMAGINE R&D : Future-Fit R&D capabilities & talent HIGH INVESTMENT IN DIGITAL AUTOMATION & ROBOTICS ADVANCED MANUFACTURING CENTRE & ARTIFICIAL INTELLIGENCE FOR LABS OF FUTURE TO ELIMINATE FACTORY TRIALS GLOBAL NETWORK OF PARTNERS WITH PURPOSE : EXPERTS, INFLUENCERS & ADVOCATES 136 Sensitivity: Int
Slide 138: In Summary - R&D Focus Areas
In Summary - R&D Focus Areas I ■ •-,-, & Saving Saving SCIENCE & TECHNOLOGY DISRUPTION TO WIN IN THE NEXT DECADE 137 Sensitivity: Internal
Slide 139: Journey to Intelligent Enterprise
JOURNEY TO INTELLIGENT ENTERPRISE Arun Neelakantan VP Digital Transformation and Growth 138 Sensitivity: Internal 138
Slide 140: India's meteoric rise in digital adoption
India’s meteoric rise in digital adoption Increasing Internet Rising Access to Low-cost Soaring Daily Data Penetration Smartphones Consumption 2015 2021 2015 2021 2015 2021 761 Mn 439 Mn 0.8 GB 14 GB 302 Mn 220 Mn $4/GB $ 0.6/GB 139 Sensitivity: Internal
Slide 141: Factors enabling India's growth as a digital powerhouse
Factors enabling India’s growth as a digital powerhouse Highest number India Ranks 4th in Robust Data Ecosystems & of Digital Digital Evolution Payments e-governance 25.5 - 15.7 D1~ "to/ ndltJ. India China f>owcr 0 Eml>QY./CII Real-time Digital Payment Transactions (Bn) 1.2bln biometric IDs Driving
Slide 142: Rapidly evolving FMCG environment
Rapidly evolving FMCG environment CONSUMER CUSTOMER CHANNEL SHIFTS SERVICING DISRUPTIONS e-Everything: eCommerce and Navigating communicating, working, Omni-Channel turbulence shopping,& entertaining Heightened hygiene, Direct to Resilience to in-home cooking & Consumers fight back consumption DIY v
Slide 143: Reimagine HUL: Our digital transformation journey
Reimagine HUL: Our digital transformation journey Bayesian Machine Learning Model eB2B eB2B2C 14 Consumer 15 Premium Clusters CCBTs Beauty Shikhar DTC Business Unit 2014 2015 2016 2017 2018 2019 2020 2021 • , I • :,_,;1;: ,/ REIMAGINE . ·~;,t~ . ·. / Robotics Process HUL Global Roll Automation in Bi
Slide 144: Reimagine HUL in 2021 & Beyond: The Intelligent Enterprise
Reimagine HUL in 2021 & Beyond: The Intelligent Enterprise Smarter Big New Value Creators Platforms + or{..• = ~ ~ - ·• ·-.. Intelligent Enterprise ·•... Ecosystem Pipes becoming data led and machine augmented [ Platforms Creating Distinctive Value ] Building Ecosystems to Maximise Value Delivery to
Slide 145: Reimagine HUL: Journey to an Intelligent Enterprise
Reimagine HUL: Journey to an Intelligent Enterprise Yesterday Tomorrow ~------------------------------------------------------------ ~------------------------------------------------------------------- 11 . . . fi . . . .. g Data, Tech& Analytics Source Manufacture Distribute Sales L----------------
Slide 146: Reimagine HUL: The Four Inter-connected Ecosystems
Reimagine HUL: The Four Inter-connected Ecosystems Tech-powered, On-Trend Innovations Creating Consumer Experiences Data, Tech& Analytics Agile and Hi-Tech Operations Enhancing Customer Experience for Growth 145 Sensitivity: Internal
Slide 147: Connected Consumer Ecosystem
~WA \~~~ Connected Consumer Ecosystem E J C: AGILE INNOVATION HUB Lean and Agile Mindset INTERCONNECTED PLATFORMS Engaging consumer across purchase cycle Feedback Trends & Loop Insights Launch Trend Buy Know Identification More More Iterative Attribute Faster & Prototyping definition Try More Naviga
Slide 148: Connected Customer Ecosystem
Connected Customer Ecosystem Demand Demand Fulfilment Generation eB2C eRTM Digi Data & Last mile Demand Capture Payments Analytics Delivery Delivering Enhanced Value Proposition 147 Sensitivity: Internal
Slide 149: Connected Operations Ecosystem
Connected Operations Ecosystem Plan & Source Make Deliver & Service •• I I I I I I AI led commodity and demand forecasting Manufacturing & distribution network Automated storage & picking transformation ML powered intelligent planning for distributors Digitally enabled agile manufacturing Integrated
Slide 150: Data, Technology and Analytics
Data, Technology and Analytics On-demand Access to Embedded Cutting-Edge Technology Granular Data Intelligence I I I I I I I I I I I I I I I I I I I I II ■ .!] ,A DY DATA LAKES External and Internal integrated Data Democratizing data with aided and Intelligent automation through cloud Lakes predicti
Slide 151: Reimagine HUL AV
Reimagine HUL AV 0 Reimagine HUL 150 Sensitivity: Internal
Slide 152: Consumer Ecosystem
Consumer Ecosystem Nitesh Priyadarshi VP, Consumer & Market Insights 151151 Sensitivity: Internal
Slide 153: Connected Consumer Ecosystem
Connected Consumer Ecosystem Tech-powered, On-Trend Innovations Creating Consumer Experiences Data, Tech & Analytics 152 Sensitivity: Internal
Slide 154: Consumer Ecosystem
Consumer Ecosystem AGILE INNOVATION HUB: Lean and Agile mindset ALWAYS ON INSIGHT ENGINE INTERCONNECTED ENGAGEMENT Feedback Trends & Loop Insights Continuous Consumer AI LED CONSUMER UNDERSTANDING Engagement Awareness to Post-purchase Faster & AI LED PRODUCT engagement Navigating Data & Analytics Be
Slide 155: Agile Innovation Hub
Agile Innovation Hub PARALLEL PROCESSES & ITERATIVE DESIGN ‘Always On’ Trends Idea Generation & Digital Product Design ‘Always On’ Testing Discovery Concept Validation & Rapid Prototyping & Knowledge Based Selling Storytelling ‘Signal to Deployment’ in half the time @f FASTER EXPLORATIONS BETTER DES
Slide 156: Agile Innovation Hub AV
Agile Innovation Hub AV 0 Agile Innovation Hub 155 Sensitivity: Internal
Slide 157: Building blocks of Agile Innovation Hub
Building blocks of Agile Innovation Hub ‘Always On’ Insight Engine AI/ML for Auto Idea Generation End to End Virtual Product Design All Recent CMI Studies • ••••• Media Performance Secondary • QOO Research (DPMT) >. Size ·':'~~ ..•., a~Xr _;i::~· HUL’s Google Reviews & Rating (DVOC / iThink) Trends
Slide 158: Bringing it alive
Bringing it alive -''!1 a#1on . ,._,.., ,,_ ___ • . w -·- - · - - - ·...... _ , - ' - · - - · - - ,....,,._ ,.....,, - - _ , , .. _ •,u,, ... ..,..... _ I ,,1 ,,... q In 'i V.t.om.n r • FN~ 'i~um, Fnr ~,n\h,,d I!, POND'S Super U9h1 ~ I f',m.• Moislunser with HyalUf'onk Uoghl ~,n w,UI All"°'-'dotll l
Slide 159: Media attribution to growth: Driving business outcome
Media attribution to growth: Driving business outcome REAL TIME CONTENT OPTIMISATION Cross Media Category & Optimisation Brand Optimization Tracking and Media for Right measuring Business Budgeting for deployment Outcomes Outcome Leveraging De-Averaged HUL DIGITAL PANEL & 6Ps & Media Mix MARKETING M
Slide 160: Interconnected Consumer Engagement Platforms
Interconnected Consumer Engagement Platforms ;+-- GET SET(~ CLEAN Impactful Content Hubs t " smartplck- ,·~•·~ i -~ D End to End Sampling & Data Driven Marketing Engagement Experience Direct to GO·TO SKINCARE Consumer • 20 a Lakme DTC USHOP 159 Sensitivity: Internal
Slide 161: Customer Ecosystem
Customer Ecosystem Kedar Lele Executive Director, Customer Development 160160 Sensitivity: Internal
Slide 162: Connected Customer Ecosystem
Connected Customer Ecosystem Data, Tech & Analytics Enhancing Customer Experience for Growth 161 Sensitivity: Internal
Slide 163: Connected Customers
Connected Customers Demand Generation Demand Capture Demand Fulfilment eComm, Shikhar Data & Last mile Digi Payment Analytics Delivery USHOP eB2B ordering Doubling Business Digitization of Partnering for Optimization on Certified Next Contribution General Trade Working Capital operations Day Deliver
Slide 164: Intelligent Sales Operation
Intelligent Sales Operation € -ic:ul!Je DMS on Cloud Digital Payment Live Dashboards HUL Warehouse Distributor Store Shopper Scientific AI led norms •• ••• •••• Demand Fulfilment My Kirana Live truck tracking Dynamic Routing, Robotized Picking Live Van Tracking Demand Capture Shikhar App Sales Rep -
Slide 165: Ecommerce: Best-in-class digital capability stack
Ecommerce: Best-in-class digital capability stack ~ ,¥ .;; ~u. ~ <~ COMMERCE PORTFOLIO CONTENT THAT PERFORMANCE E.D.G.E EXCELLENCE CONVERTS MARKETING New Design 4 Formats/ CTA/ Creative Made for Acquisition Channel engine on ROMI Pricing Predictive Benefits science Mobile Optimisation Intelligence I
Slide 166: Building a D2C presence, especially for Premium Beauty Brands
Building a D2C presence, especially for Premium Beauty Brands Taking Premium Brands D2C UShop for Monthly Purchase / LAKME - HEALTHY - --GLOWING - BEST DEALS I El ADOlOCAS?I ADOTOCAl'T D2C enabled for direct consumer engagement Live in Mumbai & Delhi; More brands in the pipeline More cities in the p
Slide 167: eRTM with Shikhar: Winning customer proposition
eRTM with Shikhar : Winning customer proposition Anytime Ordering • - 51$•to,tee,lin,,..,._,., 4rH pl.cMordtf .... UPTO Transparent Pricing 4% 0FF On-time Delivery Guaranteed Returns Easy No/Low Cost Credit 166 Sensitivity: Internal
Slide 168: Rapid scale-up
Rapid scale-up Backed by New age Intelligence App Centric Integrated Sales Call Process (Sales Rep + App) 600K 10%+ Stores Orders on Shikhar Multi-lingual Interface customized for eB2B Customised Offerings for stores to maximise their sales and earning – Smart Basket Online Sales in line with Offlin
Slide 169: Partnering for financial unlock
Partnering for financial unlock HUL-SBI Partnership to Enhance General Trade Financial Challenges Working Capital for Small Stores High Proportion of Cash Payments O SBI Limited credit Digitizing Payment ecosystem for Distributors extension to stores Enabling online payment through multiple payment
Slide 170: Operations Ecosystem
Operations Ecosystem Willem Uijen Executive Director, Supply Chain 169169 Sensitivity: Internal
Slide 171: Connected Operations Ecosystem
Connected Operations Ecosystem Data, Tech & Analytics Agile and Hi-Tech Operations 170 Sensitivity: Internal
Slide 172: The Connected Supply Chain
The Connected Supply Chain Agility and resilience Reshape asset and cost base Positive for people and planet Core enablers Future-fit talent Digital transformation Partnerships for purpose Superior products, Superior service, Superior value Sensitivity: Internal 171
Slide 173: Building an agile & resilient Supply Chain
Building an agile & resilient Supply Chain LOCAL SUPPLY CLOSER TO DEMAND MEGA & NANO FACTORY FASTER & BETTER DELIVERY Digitized Agriculture & Connected Multi Category Better Service, Increased Leveraging Scale & Flexibility Integrated Sourcing Factories Portfolio, Next day delivery Technology enabli
Slide 174: Orchestration of the value chain
Orchestration of the value chain BETTER PLANNING DEEPER PLANING NO PLANNING Real time & democratised information AI ML Enabled Secondary sales level Produce Today What We Sold (RTVA) & No touch Planning planning Yesterday (PTWWSY) Our technology choices are helping us to become future fit, agile, &
Slide 175: Reshaping Asset and Cost Base
Reshaping Asset and Cost Base SMART BUYING DIGITAL MANUFACTURING CONNECTED DELIVERY IMPROVING COST & AGILITY Cost Service Defects Redefining how we run the Control Tower- Factory to Buying more competitively customer connected network operations Formats Continuously improving cost and cash by adapti
Slide 176: Digital Factory AV
Digital Factory AV 0 Digital factory 175 Sensitivity: Internal
Slide 177: Positive for People & Planet
Positive for People & Planet COMMUNITY LINK PLASTIC NEUTRAL RENEWABLE ENERGY SUSTAINABLE SOURCING Geo-tagging, Data Analytics Amplifying impact through Digitization in the Plastic Competitive Renewable and Traceability at the level of technology Waste Value Stream Energy smallholder farmers Digitiza
Slide 178: Data, Tech & Analytics
Data, Tech & Analytics Meenakshi Burra Chief Data Officer, HUL 177 177 Sensitivity: Internal
Slide 179: Data, Tech & Analytics
Data, Tech & Analytics Data, Tech & Analytics 178 Sensitivity: Internal
Slide 180: Intelligent Data Ecosystem at the Heart of our Business
Intelligent Data Ecosystem at the Heart of our Business We are managing data as an enterprise asset to maximize value realization, minimize its cost and ensure continued trust and compliance HUL Data Strategy ,- Harnessing External Ecosystem signals to inform deaveraged decisions Government Micro ge
Slide 181: Decisions augmented by AI / ML
Decisions augmented by AI / ML Autonomous Decision Making Augmented Decision Making Proactive Insights Embedded Intelligence Efficient Journey Automation Across our Consumer, Customer, Operations Ecosystems [ Scientific Whitespace Mapping ] [ Machine Learning led Demand Planning ] [ Decision Support
Slide 182: Democratizing data with Chanakya
Democratizing data with Chanakya AV 0 Democratizing Data with Chanakya 181 Sensitivity: Internal
Slide 183: Ensuring tech remains a competitive advantage
Ensuring tech remains a competitive advantage Augmented Experimenting with Reality Emerging Tech that Reimagining Market UX UI can help create Development using DESIGN competitive AR differentiation Ensuring that Core remains Resilient & Future Ready Intelligent Cyber Security Automation 182 Sensiti
Slide 184: Future-fit talent & culture
Future-fit talent & culture Dialling up Digital Outside In ,,,. 0 - ..... / / ,.......;;:;;:::...._ 0 ' ' I O O O \ (~~ - _,,,. FUTURE FIT SKILLS STARTUP ECOSYSTEM TECHNOLOGY PARTNERS KNOWLEDGE FORUMS INDUSTRY BODIES & CULTURE of RESEARCH ORGANIZATIONS EXPERIMENTATION 183 Sensitivity: Internal
Slide 185: Reimagine HUL: The Four Inter-connected Ecosystems
Reimagine HUL: The Four Inter-connected Ecosystems Tech-powered, On-Trend Innovations Creating Consumer Experiences Data, Tech& Analytics Enhancing Customer Experience for Agile and Hi-Tech Operations Growth 184 Sensitivity: Internal
Slide 186: Annual Investor Meet 2021: Finance
Annual Investor Meet 2021 Ritesh Tiwari – Executive Director, Finance & IT and Chief Financial Officer Sensitivity: Internal 185
Slide 187: What you have heard so far
Jc:t,,rra: ..'lV!Hl ~~-'J~ What you have heard so far E India’s potential HUL well-placed to win ▪ Fast growing economy ▪ Clear and compelling Strategy ▪ Rapid digital evolution ▪ Distinctive strengths and capabilities ▪ Favourable demographics ▪ Purpose-led, Future-fit organisation ▪ Huge headroom
Slide 188: Our growth construct for the next decade
Our growth construct for the next decade Levers of Competitive Growth FY 2011-21 : 9% Topline CAGR Context : Disruptive Environment J. .,1 Growing the Core Demonetisation Premiumisation Goods & Services Tax Market Development Rural Slowdown Covid-19 Categories of the Future Sensitivity: Internal 187
Slide 189: Premiumisation: Margin expansion
···- ~~li,'f: ~fr"~~ Margin expansion f i ~ l! Next Decade : Modest Margin Expansion FY 2011-21 : EBITDA +1000 bps Cost Savings 25% 13% Premiumisation Nutrition Synergies 2010-11 2020-21 Sensitivity: Internal 188
Slide 190: Cost savings: Fuel for growth
Cost savings : Fuel for growth Some examples Symphony: Comprehensive KM travelled per ton savings program Design to Value reduction End to end P&L lens -·· ...... .• Owner’s mindset Media : Attribution Overheads : Taking to Growth the ZBB lens Led by top management Crowd sourcing of ideas Reinvestme
Slide 191: Nutrition: Growth synergies
Nutrition : Growth synergies Sources of growth synergies Sachets & Access Plus Range Packs Drive Penetration Future Ready Formats - t ,:. - - - - -- '-- - o - e -~ Upgrade & Premiumise Direct Coverage : 2X Distribution Multiplier Market Development E-comm Contr. : 2X at Scale Boost national Unlock N
Slide 192: Nutrition: Cost Synergies
Jc:t,,rra: ..'lV!Hl ~~-'J~ Nutrition : Cost Synergies E Sources of cost synergies Net Cash Delivery Margin realisation Ahead of Plan Year 3 in Year 1 Net Profit | Working Capital | Capex Efficiencies Scale in Marketing & Procurement Overheads efficiencies Go-to-market & Distribution 300-400bps Netwo
Slide 193: Our proven track record of Capital discipline
~WA \~~~ Our proven track record of Capital discipline E J Negative Trade Return on Capital Capital Light Model Working Capital Employed* 2.0% -18 days 93% Capex % TO FY11 to FY21 Average FY11 to FY21 Average FY21 Capital Employed excludes GSK CH merger related intangibles and goodwill 192 Capex Sen
Slide 194: Delivering long-term value creation
Our financial growth model for long-term value creation Growth Profit Capital Velocity EPS Competitive growth ahead of peers Modest margin expansion Efficient use of capital > Double digit EPS growth Delivering long-term value creation Sensitivity: Internal 193
Slide 195: Thank you
Thank you 194 Sensitivity: Internal