Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Goldman Sachs CIO Tour (December 2020)
40 slides from Hindustan Unilever's conference presentation, Dec 8, 2020
Slide 1: Exchange filing cover letter
8th December, 2020 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: Purpose-led, Future-fit
Purpose-led, Future-fit Sanjiv Mehta, Chairman & Managing Director Hindustan Unilever Limited 8th December, 2020 Sensitivity: Public
Slide 3: Safe harbor statement
Safe harbor 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 e
Slide 4: India's Largest FMCG Company
INDIA’S LARGEST FMCG COMPANY 3 Sensitivity: Public 3
Slide 5: 130+ years of presence in India
130+ years of presence in India Sunlight soap Indian subsidiaries Unilever consolidated under HUL - GSK CH merger introduced increases stake in to India Hindustan Lever HUL to 67% Limited 1888 1931 1956 2007 2013 2018 2020 Unilever sets HLL renamed as HUL market up subsidiary in “Hindustan cap cross
Slide 6: A $6bn execution powerhouse
A $6bn execution powerhouse Our footprint Recognition 9 out of 10 ‘Employer of Choice’ households in the industry for 12 years in a row use one or more of our brands Most Innovative Our brands are available in Companies 8 mn+ stores #8 Globally #1 in India 21,000 Employees working across 14 HUL bran
Slide 7: With category leadership in >90% of our business
With category leadership in >90% of our business #1 #1 #1 #1 Skin Skin Hair Fabric Cleansing Care Care Wash #1 #1 #1 #1 Household Health Food Tea Ketchup Care Drinks Sensitivity: Public As per Kantar Worldpanel for MAT September 2020 6
Slide 8: Our performance over the last decade
Our performance over the last decade Consistent growth Profitable growth High capital efficiency 103.7% 128.5% FY FY 2009-10 2019-20 9% CAGR 890 bps Best in CLASS Sales growth* EBITDA improvement^ ROCE sustained Consistent track record of high performance *On comparable basis. On reported basis, 10-
Slide 9: Leading value creation
Leading value creation 900% 600% 300% 0% Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 HUL BSE FMCG SENSEX Market $ 14 bn 5X $ 70 bn capitalisation 2010** Current* + $56 bn Sensitivity: Public *Market capitalization as on 4 th December 2020 and converted to USD based o
Slide 10: 2020: Chartering the Unchartered
2020: Chartering the Unchartered Sensitivity: Public 9
Slide 11: Social and economic toll of the virus
Social and economic toll of the virus Rising COVID-19 cases Societal crisis Uncertain economic outlook 5.2% 9.6m 4.4% 4 .1% 9.1m 3.1% Loss of livelihood Reverse migration -8.9% 0.4m -23.9% Mar-20 May-20 Jul-20 Sep-20 Nov-20 Stress Unknowns: availability | JQ'19 SQ'19 DQ'19 MQ'20 JQ'20 2020 FC* Confi
Slide 12: Our five priorities in COVID times
Our five priorities in COVID times Safety of our Ensuring continuity Keeping our fingers on Helping the Heightened focus people of supplies the pulse of consumers communities on cost & cash Sensitivity: Public 11
Slide 13: COVID response actions and metrics
44K 8 120+ 100% Service Levels @ Employees (direct/ indirect) covered under COVID Insurance Wage settlements Alternate suppliers Factories and depots operational Pre-COVID ~90 100+ 90% Innovation led SKUs in last 6 Flex formulations Employee engagement score months #HULStandsWithTheNation 2.7 lakh 2
Slide 14: 2020: Strong competitive performance
2020: Strong competitive performance Health, hygiene and nutrition Strong fundamentals Sequential step-up outperform (~80% of business) % Business gaining penetration* 3% ~70% 6% 10% -7 % >90% -9% MQ'20 JQ'20 SQ'20 JQ’20 S Q’20 % Business winning share^ Domestic consumer growth Domestic consumer gro
Slide 15: Building a Purpose-led, Future-fit Hindustan Unilever Limited
Building a PURPOSE-LED, FUTURE-FIT Hindustan Unilever limited Sensitivity: Public 14
Slide 16: Purpose-led
PURPOSE-LED 15 Sensitivity: Public 15
Slide 17: Brands with purpose grow
BRANDS WITH PURPOSE GROW Sensitivity: Public 16
Slide 18: Purposeful brands strengthening our core: Laundry
Purposeful brands strengthening our core Laundry Surf Excel: Dirt is Good! CAGR 9% 4.1X F Y’13 F Y’20 Profitability Building brands with purpose; Driving premiumization HUL is the No. 1 Laundry company in India Sensitivity: Public 17
Slide 19: Purposeful brands strengthening our core: Hair care
Purposeful brands strengthening our core Hair care Clinic Plus: Stay Clean Stay Strong! CAGR 10% Market Share c.794 bps F Y’13 F Y’20 Strong play in Naturals; Driving premiumization & innovations HUL is the No. 1 Hair care company in India Sensitivity: Public 18
Slide 20: Purposeful brands strengthening our core: Tea
Purposeful brands strengthening our core Tea Red Label: Taste of Togetherness CAGR 9% F Y’13 F Y’20 Strong WiMI play; Driving market development HUL is the No. 1 Tea company in India Sensitivity: Public 19
Slide 21: Brands living their purpose
730K women registered Brands living their purpose 560K >72 mln people benefited people reached >1 mln ~95 bln litres people impacted safe drinking water provided Domex Toilet Academy 2020
Slide 22: People with purpose thrive
PEOPLE WITH PURPOSE THRIVE Sensitivity: Public 21
Slide 23: Our people are our biggest strength
Our people are our biggest strength Holistic wellbeing Pioneering growth culture Leaders building leaders Nurturing future leaders Curated personalized learning People with Physical and purpose mental wellbeing Talent immersions HUL Awarded ‘Unilever Health and Wellbeing’ Gold Category Award Cross-l
Slide 24: Diverse and inclusive
Diverse and inclusive Gender balance LGBT inclusion Breaking stereotypes 42% managers are women +2200 bps improvement in gender balance in last 9 years Sensitivity: Public 23
Slide 25: Companies with purpose last
COMPANIES WITH PURPOSE LAST 24
Slide 26: Being purposeful
Being purposeful Water Health and Enhancing Sustainable Becoming plastic well-being livelihoods sourcing neutral Hindustan Unilever In last 2 years combined 120,000+ Shakti Foundation more plastic waste has > 150 million entrepreneurs 76% Tomatoes, people impacted till date 78% Tea been collected th
Slide 27: Serving the society and the planet
Serving the society and the planet 4 Suvidha centers in Mumbai #StartALittleGood “Waste No More” Daily 10,000+ people in slums across Mumbai are provided 80,000+ students covered through digital curriculum addressing access to hygiene and sanitation waste management issues. Circular economy principl
Slide 28: Future-fit HUL
Future-fit HUL 27 27
Slide 29: Creating categories of the future through market development
Creating categories of the future through market development Drive category Expansion across Powered by consumer More benefits penetration segments connects E XPLODE More benefits ACCELERATE S EED Rising income Increasing penetration in Foraying into body wash and 5X scale up in consumer Building li
Slide 30: Leading premiumization
Leading premiumization Our premium portfolio Portfolio straddling the pyramid is over-indexed to market Price HUL share index of segment* 1.3X Premium >1.2x 1.2x X > 0.8x & Popular X <= 1.2x Market HUL <= 0.8x X Mass % contribution of portfolio *Source: Nielsen (Urban + Rural) 29
Slide 31: Future-fit portfolio
Future-fit portfolio 100+ innovation-led SKUs launched in last 6 months Sensitivity: Public 30
Slide 32: Catalysing portfolio transformation
Catalysing portfolio transformation Organic Acquisitions Sensitivity: Public 31
Slide 33: Winning in Many Indias
Winning in Many Indias India WiMI-led distinctive WiMI-led distinctive A heterogeneous premiumization strategy product strategy country Example: Punjab & Karnataka Majority Mass : Uttar Pradesh Same brand designed for Upgradation through mid and different color and taste premium bars and powders pre
Slide 34: Nimble and empowered teams
Nimble and empowered teams Country Category Business Team: 3 divisions split into 16 mini-boards Functions in a CCBT Empowered to More consumer & Land bigger, faster deliver in-year P&L customer centric innovations Liberating HUL Management Committee to focus on longer term goals, exploring Merger o
Slide 35: Reimagining HUL
Reimagining HUL 34 Sensitivity: Public
Slide 36: Reimagining HUL: Building moats across the business
Reimagining HUL: Building moats across the business Connected consumers Connected stores Connected operations Generating better insights Engagement & Faster & better feedback innovation Demand Demand Demand generation capture fulfilment Plan Source Navigate the Crafting shopper to effective purchase
Slide 37: Reimagining HUL: Connected consumer
Reimagining HUL: Connected consumer Generating better Digital marketing & insights performance tracking Engagement & Faster & better feedback innovation As an impact measurement of GRP on market share/penetration Digital design & simulations Navigate the shopper Crafting effective to purchase commun
Slide 38: Reimagining HUL: Connected stores & operations
Reimagining HUL: Connected stores & operations Connected stores Connected operations Demand Demand Demand generation capture fulfilment Integrated planning & optimised operations enabled by Big data analytics & intelligent automation Sensitivity: Public 37
Slide 39: Reimagining HUL: Technology, data & analytics and people & culture
Reimagining HUL: Technology, data & analytics and people & culture Technology Data & analytics People & culture Cloud Computing, Robotic Process Automation, and ML for intelligent automation Leveraging IOT for data signal and automation for factory and warehouses A data first mindset Sensitivity: Pu
Slide 40: Thank you!
Thank you! Sensitivity: Public
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