Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Jefferies India CTO Summit 2021
35 slides from Hindustan Unilever's conference presentation, Nov 23, 2021
Slide 1: Cover letter to stock exchanges: Investor Presentation
23rd November, 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, Dal
Slide 2: Reimagine HUL: Our Journey to an Intelligent Enterprise
Reimagine HUL: Our Journey to an Intelligent Enterprise 23rd November 2021 Sensitivity: Internal
Slide 3: India's Largest FMCG Company
India’s Largest FMCG Company 15 130+ years 5th Largest Top 15 Categories Indian company of proud history in India Foods & HPC company by market capitalisation of Globally >80% ₹5.6 Tn Category Leadership 9 out of 10 Brands in 50+ Brands 8 Mn Households use one or more of our brands stores 14 In Indi
Slide 4: 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 3
Slide 5: Consistent High Performance over the Past Decade
Consistent High Performance over the Past Decade Consistent growth Profitable growth Long term value creation ₹ 450 Bn FY 2021 turnover 25% 9X FY 2021 EBITDA margin Market Capitalisation 9% >1000 margin improvement Bps CAGR growth Sensitivity: Internal 4
Slide 6: 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. 5 Sensitivity: Internal
Slide 7: Five Strategic Choices
Five 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 Ex
Slide 8: Reimagine HUL: Our Journey to an Intelligent Enterprise
Reimagine HUL : Our Journey to an Intelligent Enterprise Sensitivity: Internal
Slide 9: Factors Enabling India's Growth as a Digital Powerhouse
Factors Enabling India’s Growth as a Digital Powerhouse Meteoric Rise in Digital Adoption Robust Data Ecosystems & 3rd Largest Start-Up Ecosystem e-governance 761 Mn Internet Penetration 1.2bln biometric IDs 25K + Start-ups, 51 Unicorns 439 Mn Smartphone Users 12mln GST onboarding 14 GB $ 0.6/GB $45
Slide 10: Rapidly Evolving FMCG Environment
Rapidly Evolving FMCG Environment CONSUMER CUSTOMER CHANNEL SHIFTS SERVICING DISRUPTIONS e-Everything: Navigating eCommerce and turbulence communicating, working, Omni-Channel shopping & entertaining Heightened hygiene, Direct to Resilience to in-home cooking & Consumers fight back consumption DIY v
Slide 11: 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 REIMAGINE Robotics Process HUL Global Roll Automation in Bill Out to Cash Automated Warehousing
Slide 12: Reimagine HUL in 2021 & Beyond: The Intelligent Enterprise
Reimagine HUL in 2021 & Beyond: The Intelligent Enterprise Smarter Big New Value Creators Platforms + = Ecosystem Pipes becoming data led Platforms Creating and machine augmented Distinctive Value Building Ecosystems to maximise value delivery to consumer and customer 11 Sensitivity: Internal
Slide 13: 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 12 Sensitivity: Internal
Slide 14: Reimagine HUL: The Four Inter-connected Ecosystems
Reimagine HUL: The Four Inter-connected Ecosystems Tech-powered, On-Trend Innovations Creating Consumer Experiences Agile and Hi-Tech Operations Enhancing Customer Experience for Growth 13 Sensitivity: Internal
Slide 15: Bringing it to Life with Premium Beauty Business Unit
Bringing it to Life with Premium Beauty Business Unit Agile Innovation | Supply Chain for Small | D2C & Performance Marketing | Digital-first Model Sensitivity: Internal 14
Slide 16: Consumer Ecosystem
Consumer Ecosystem Tech-powered, On-Trend Innovations Creating Consumer Experiences 15 Sensitivity: Internal
Slide 17: 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 to Data & Better Prototyping definition Try
Slide 18: Agile Innovation Model
Agile Innovation Model Always-on trend spotting Agile product crafting Rapid manufacturing with Nano and testing factories Online Trend Identification and Sizing: Claims, Ingredients, Formats Digital prototyping Mobile design Eliminate factory trials through advanced manufacturing Smaller batch size
Slide 19: Interconnected Consumer Engagement
Interconnected Consumer Engagement Content that Converts: Delivering Superlative Brand Social, eCom & Influencer Marketing Experience on D2C FAQs, Ingredient & benefit focus eCom & Social Integrated Influencer Marketing Front-end experience Delivering delight 18 Sensitivity: Internal
Slide 20: Connected Customer Ecosystem
Connected Customer Ecosystem Enhancing Customer Experience for Growth 19 Sensitivity: Internal
Slide 21: Connected Customers
Connected Customers Demand Generation Demand Capture Demand Fulfilment eComm, Shikhar Data & Last Mile Digi Payment Analytics Delivery U Shop eB2B Ordering Multiplying Digitization of Partnering for Optimization on Certified Next Business General Trade Working Capital operations Day Delivery Contrib
Slide 22: Digitised Demand Capture >15%
Digitised Demand Capture >15% eRTM - Shikhar Accelerating eCommerce Direct to Consumer 21 Sensitivity: Internal
Slide 23: eRTM with Shikhar: Winning Customer Proposition
eRTM with Shikhar : Winning Customer Proposition Anytime Ordering Transparent Pricing On-time Delivery Guaranteed Returns Easy No/Low Cost Credit 22 Sensitivity: Internal
Slide 24: Rapid Scale-up
Rapid Scale-up Backed by New age Intelligence App Centric Integrated Sales Call Process (Sales Rep + App) 650K 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 Value added service
Slide 25: 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 24 Sensitivity: Internal
Slide 26: Building a D2C presence, especially for Premium Beauty Brands
Building a D2C presence, especially for Premium Beauty Brands Highest Instagram followers across beauty brands in India | 2 mln D2C website visits per month| 30% online sales Sensitivity: Internal 25
Slide 27: Connected Operations Ecosystem
Connected Operations Ecosystem Agile and Hi-Tech Operations 26 Sensitivity: Internal
Slide 28: Connected Operations
Connected Operations Plan & Source Make Deliver & Service A rtificial Intelligence led commodity and Manufacturing & distribution network Automated storage & picking de mand forecasting transformation Machine learning powered intelligent Digitally enabled agile manufacturing Integrated routing & del
Slide 29: Leveraging Agile Manufacturing with Nano Factory
Leveraging Agile Manufacturing with Nano Factory Placeholder for Nano Factory AV 28 Sensitivity: Internal
Slide 30: Data, Tech & Analytics
Data, Tech & Analytics Data, Tech & Analytics 29 Sensitivity: Internal
Slide 31: 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 geogr
Slide 32: Decisions Augmented by AI / ML
Decisions Augmented by AI / ML Across our Consumer, Customer, Operations Ecosystems Scientific Machine Learning Decision Support AI Automated AI Recommender Whitespace led Demand Systems Warehousing Systems Mapping Planning Innovation Tech Ad Early Performance Predictor Signals Autonomous Decision M
Slide 33: Reimagine HUL: The Four Inter-connected Ecosystems
Reimagine HUL: The Four Inter-connected Ecosystems Tech-powered, On-Trend Innovations Creating Consumer Experiences Enhancing Customer Experience for Agile and Hi-Tech Operations Growth 32 Sensitivity: Internal
Slide 34: Reimagine HUL AV
Reimagine HUL AV 33 Sensitivity: Internal
Slide 35: Thank you
Thank you 34 Sensitivity: Internal