Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Goldman Sachs India CIO Tour 2021
43 slides from Hindustan Unilever's conference presentation, Dec 7, 2021
Slide 1: Exchange filing cover letter
7th December, 2021 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra – Kurla Complex, Dala
Slide 2: Goldman Sachs CIO Tour | Hindustan Unilever Limited
Goldman Sachs CIO Tour | Hindustan Unilever Limited Sanjiv Mehta, Chairman and Managing Director 7th December 2021 Sensitivity: Internal 1
Slide 3: 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 4: India's Largest FMCG Company
India’s Largest FMCG Company 5 Largest th 130+ years Indian company Top 15 of proud history in India by market capitalisation of Foods & HPC company ₹5.5 Tn Globally 9 out of 10 Brands in 8 Mn Households use one or more ₹450 Bn stores of our brands #1 Advertiser 25% Turnover With deepest reach in th
Slide 5: Our Distinctive Strengths
Our Distinctive Strengths 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 4
Slide 6: Wide and resilient portfolio of purposeful brands
Wide and resilient portfolio of purposeful brands We operate in 15 categories Category leadership in >80% of business Foods & Refreshment Beauty & 29% Personal Care 40% 50+ purposeful brands Home Care 14 brands with ₹10Bn+ Turnover 31% 16 new brands added in the last decade Sensitivity: Internal 5
Slide 7: World class R&D and Supply Chain
World class R&D and Supply Chain India’s largest R&D in FMCG Manufacturing Scale Deep Distribution 20K patents, 5K professionals globally 29 own factories, 8 million stores sell our products 40+ manufacturing partners 15% digitised demand capture 650 professionals, 100+ PHDs in India Digital and Nan
Slide 8: Future-fit Talent and Organisational Culture
Future-fit Talent and Organisational Culture Purpose driven Diverse & Inclusive High performance culture 21,000 Strong workforce | 44% Managerial Gender balance | Experimentation | Digital first mindset +2300 BPS in last decade Pioneering No.1 Employer of Choice across Industries Sensitivity: Intern
Slide 9: Differentiated structures and capabilities
Differentiated structures and capabilities WiMI Strategy Empowered teams Harnessing the power of 16 mini boards – De-averaging responsible for delivering in-year results Sensitivity: Internal 8
Slide 10: HUL as a force for good
HUL as a force for good >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 end of waste collected and safely disposed 2
Slide 11: Consistent high performance over the past decade
Consistent high performance over the past decade Consistent growth Profitable growth Long term value creation ₹ 450 Billion 25% ₹ 5.5 Trillion FY 2021 turnover FY 2021 EBITDA margin Market Capitalisation 9% >1000 Bps 9X CAGR growth margin improvement Vs 2011 #1 FMCG Company in India #5 in India by M
Slide 12: India: Poised for growth
India : Poised for growth Sensitivity: Internal 11
Slide 13: India FMCG: Huge headroom for growth
India FMCG : Huge headroom for growth Significant scope to increase Favorable demographics Immense potential in rural penetration Low penetration MFD 25 Rural Urban Face Wash Body Lotion 61% 39% Washing Liquids Dishwash Liquid Share of population Hair Conditioner Body Wash 2 31% 69% Low FMCG per cap
Slide 14: Consumer of the future: Some mega trends
Consumer of the future : Some mega trends Search for Un-stereotype Holistic Health Authenticity Hyper-personalisation E-everything Net Zero Sensitivity: Internal 13
Slide 15: Sensitivity: Internal
Sensitivity: Internal 14
Slide 16: Clear and compelling strategy
Clear and compelling strategy Our Vision is to be a leader in sustainable business. We will demonstrate how our purpose-led, future-fit business model drives superior performance delivering consistent, competitive, profitable and responsible growth. 15 Sensitivity: Internal
Slide 17: Compass commitments
Compass commitments Accelerate diverse Reskill or upskill all Become 100% representation & inclusive employees to make plastic neutral Eliminate fossil culture across organisation them future-fit fuels in cleaning products Double the number of products sold that deliver positive nutrition Ensuring a
Slide 18: Our strategic choices
Our strategic choices 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 culture Operational Exc
Slide 19: Few of our strategic choices in more detail
Few of our strategic choices in more detail Lead in the Channels of the Developing our Portfolio Reimagine HUL Future Our Journey to an Intelligent Enterprise 18 Sensitivity: Internal
Slide 20: Few of our strategic choices in more detail
Few of our strategic choices in more detail Lead in the Channels of the Developing our Portfolio Reimagine HUL Future Our Journey to an Intelligent Enterprise 19 Sensitivity: Internal
Slide 21: Hair Care: 11% sales CAGR in last decade, 3X relative market share
Hair Care : 11% sales CAGR in last decade, 3X relative market share Straddling the price-benefit Bolt-on acquisitions : Brand power pyramid Indulekha Relative Brand Power 3X Strong Ayurvedic credentials Highest-ever market shares Grew 6X in last 5 years in the past decade 20 Relative market share (N
Slide 22: Laundry: 11% sales CAGR in last decade, profitability up 8X
Laundry : 11% sales CAGR in last decade, profitability up 8X Huge headroom to Brand power Market development premuimise Market Volume Contribution 14% Premium Price 14% Popular 72% Mass Relative brand power 2X Liquid detergents and fabric Highest-ever market shares in Our shares in premium are condi
Slide 23: Tea: 12% CAGR in last decade, volume and value market leader
Tea : 12% CAGR in last decade, volume and value market leader A proven flywheel strategy to deliver growth and market share Driving core through Winning in Many Indias with Creating new benefit Market Indexed premiumisation brands and formulations segments Contribution Share 10% 3.4X 25% 1.1X 35% X
Slide 24: Bringing scale of HUL to augment Nutrition expertise
Bringing scale of HUL to augment Nutrition expertise Talent and Culture IT and Process Integration Route to Market Nil Regretted attrition in 18 months HUL Tech Suite implemented >85% business on end state RTM 16th 0 Year 3 margin synergies delivered in Year 1 | Cash delivery ahead of the business c
Slide 25: Investing in the business for sustainable growth
Investing in the business for sustainable growth Making Nutrition Persuasive Consumer connects Activated high accessible communication (>5mn households in SQ’21) sciences range Market development at scale 24 Sensitivity: Internal
Slide 26: Premium Beauty Business Unit
Premium Beauty Business Unit Digital first model | Agile innovation | Supply Chain for small | D2C & Performance marketing Sensitivity: Internal 25
Slide 27: Few of our strategic choices in more detail
Few of our strategic choices in more detail Lead in the Channels of the Developing our Portfolio Reimagine HUL Future Our Journey to an Intelligent Enterprise 26 Sensitivity: Internal
Slide 28: Digitised demand capture >15%
Digitised demand capture >15% eRTM - Shikhar Accelerating eCommerce Direct to Consumer 27 Sensitivity: Internal
Slide 29: HUL's Shikhar: An eB2B app to help retailers grow
HUL’s Shikhar : An eB2B app to help retailers grow App features designed for Differentiated Proposition grocery stores ▪ Anytime ordering complemented ▪ Personalised shop front for by sales representatives each retailer ▪ Seamless and reliable service ▪ Multi-lingual interface supported by HUL’s cos
Slide 30: eCommerce: Best-in-class digital capability stack
eCommerce: Best-in-class digital capability stack Design for Channel Content that Converts Performance Marketing Flawless Execution Talent | Digitization | Automation 29 Sensitivity: Internal
Slide 31: Building D2C capabilities
Building D2C capabilities Highest Instagram followers across beauty brands in India | 2 mln D2C website visits per month| 30% online sales Sensitivity: Internal 30
Slide 32: Few of our strategic choices in more detail
Few of our strategic choices in more detail Lead in the Channels of the Developing our Portfolio Reimagine HUL Future Our Journey to an Intelligent Enterprise 31 Sensitivity: Internal
Slide 33: Rapidly evolving FMCG environment
Rapidly evolving FMCG environment Meteroic Rise in Digital Adoption in India 761 Mn Internet Penetration | 439 Mn Smartphone Users | 14GB data consumed per day CONSUMER CUSTOMER CHANNEL SHIFTS SERVICING DISRUPTIONS e-Everything: eCommerce and Navigating working, shopping & Omni-Channel turbulence en
Slide 34: Reimagine HUL: Our Digital Transformation Journey
Reimagine HUL: Our Digital Transformation Journey 14 Consumer Humarashop Jarvis Shikhar Premium Beauty 15 CCBTs D2C Business Unit Clusters Hyper local Bayesian ML eB2B retailer delivery Model ordering app 2014 2015 2016 2017 2018 2019 2020 2021 LIVEWIRE Culture of Digital Samadhan Robotic Process Wi
Slide 35: Reimagine HUL: Journey to an Intelligent Enterprise
Reimagine HUL: Journey to an Intelligent Enterprise Yesterday Tomorrow From Traditional Linear Value Chain to Non-Linear and Inter-connected Ecosystems 34 Sensitivity: Internal
Slide 36: Connected Consumer Ecosystem
Connected Consumer Ecosystem AGILE INNOVATION HUB Lean and Agile Mindset INTERCONNECTED PLATFORMS Engaging consumer across purchase cycle Feedback Trends & Loop Insights Trend Launch Identification Buy Know More More Faster & Iterative Attribute Navigating Data & Better Prototyping definition to Pur
Slide 37: Connected Customers Ecosystem
Connected Customers Ecosystem Demand Generation Demand Capture Demand Fulfilment eComm, Shikhar Data & Last Mile Digi Payment Analytics Delivery U Shop eB2B Ordering Multiplying Digitization of Partnering for Optimized Next Day Business General Trade Working Capital operations Delivery Contribution
Slide 38: Connected Operations Ecosystem
Connected Operations Ecosystem Plan & Source Make Deliver & Service Artificial Intelligence led commodity and Manufacturing & distribution network Automated storage & picking demand forecasting transformation Machine learning powered intelligent Digitally enabled agile manufacturing Integrated routi
Slide 39: Intelligent Data Ecosystem at the heart of our business
Intelligent Data Ecosystem at the heart of our business Data as an Enterprise asset AI/ML powering transformation Investment Agile Innovation Optimization Hub Granular insights Media Analytics from disparate data sets Demand Forecasting Basket Digital Analytics Factory Commodity iQ Assortment Analyt
Slide 40: Looking at Near-term
Looking at Near-term 39 Sensitivity: Internal
Slide 41: Robust performance in a 'BANI' environment
Robust performance in a ‘BANI’ environment Double-digit growth, Stepping-up pricing Healthy EBITDA Margins ahead of the market SQ’21 USG YoY 6.5% EBITDA Margins 5.0% 11% 25.0% 2.5% 11% +70 bps MQ'21 JQ'21 SQ'21 FH FY’22 USG Consumer Pricing^ Vs JQ’21 >75% business winning value share, Highest volume
Slide 42: Accelerating growth across the portfolio
Accelerating growth across the portfolio Vs. 2019 Vs. 2020 Health, Hygiene SQ’21 19% 7% and Nutrition c. 85% JQ’21 16% 8% SQ’21 -2% 31% Discretionary c. 12% JQ’21 -24% 39% SQ’21 31% 74% Out of Home c. 3% -40% 91% JQ’21 Comparable numbers: Excludes impact of M&A in the base 41 Sensitivity: Internal
Slide 43: Looking ahead: Winning competitively
Looking ahead : Winning competitively Market Context ▪ Uneven economic recovery ▪ Nielsen FMCG YoY growths in rural remain subdued ▪ Commodity volatile and at elevated levels ▪ Consumer volume titration in inflationary scenario Our focus : Deliver 4G growth i.e. Consistent, Competitive, Profitable a
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