Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — JP Morgan Investor Summit (September 2021)
36 slides from Hindustan Unilever's conference presentation, Sep 20, 2021
Slide 1: Investor Presentation filing letter to BSE and NSE
20th September, 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, Da
Slide 2: Winning in the New Decade
Winning in the New Decade Sanjiv Mehta Chairman and Managing Director 20th September 2021 Sensitivity: Internal
Slide 3: 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 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: Purposeful Brands
Purposeful Brands ₹ 50 Bn+ 50+ Brands 20 Bn+ 14 ₹ in India’s 100 Most Trusted Brands ₹ 10 Bn+ 16 ₹ 5 Bn+ New Brands added in the last decade Sensitivity: Internal 4
Slide 6: 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 ever
Slide 7: 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 6
Slide 8: World Class R&D, Extensive Distribution and Agile Supply Chain
World Class R&D, Extensive Distribution and Agile Supply Chain 20K Patents globally Largest FMCG R&D >5,000 Scientists Globally, 650 In India Access to 18 R&D centres in India >100 PhDs & Post Docs in India across Unilever global network >10% Demand captured digitally 8 mn stores sell our products M
Slide 9: Future-fit Talent and Organisational Culture
Future-fit Talent and Organisational Culture High performance Purpose driven Diverse & Inclusive 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 10: Differentiated structures and capabilities
Differentiated structures and capabilities WiMI Strategy Empowered teams Harnessing the power of 16 mini boards – De-averaging responsible to deliver in-year results Sensitivity: Internal 9
Slide 11: 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 end waste collected and
Slide 12: 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% 10X FY 2021 EBITDA margin Market Capitalisation 9% >1000 Bps margin improvement CAGR growth #1 FMCG Company in India #5 in India by Market Cap Top 15 Foods & HP
Slide 13: India: Poised for growth
India : Poised for growth Sensitivity: Internal 12
Slide 14: India: One of the fastest growing economies
India : One of the fastest growing economies Huge headroom for Significant potential in Favorable demographics growth in FMCG rural 2025 Low penetration MFD 25 Elite (>20 lac pa) 5% Rural Urban Face Wash Affluent (10-20 lac pa) Body Lotion Aspirers (5-10 lac pa) 61% 39% Washing Liquids Strivers (1.5
Slide 15: Consumer of the Future: Some mega trends
Consumer of the Future : Some mega trends Un-Stereotype Holistic Health Search For Authenticity ▪ Reject labels ▪ Healthier products, priorities ▪ Reconnect with one’s roots & lifestyles ▪ Greater sense of self-worth ▪ Extends beyond physical ▪ Spirit of a ‘new localism’ health ▪ Embrace the unconve
Slide 16: Consumer of the Future: Some mega trends
Consumer of the Future : Some mega trends Hyper-personalisation E-everything Net Zero ▪ Meaningful connections ▪ Digitally fueled lifestyle ▪ Green awakening ▪ Powered digitally ▪ ‘Tech-celeration’ of consumer ▪ Earth Positive, Nature Positive life and Climate Positive will appeal Sensitivity: Inter
Slide 17: Sensitivity: Internal
Sensitivity: Internal 16 1 6
Slide 18: 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. 17 Sensitivity: Internal
Slide 19: 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 20: 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 21: 1. Developing our portfolio
1. Developing our portfolio Un-stereotype Holistic Health Authenticity Personalisation E-everything Net Zero Growing the Core Market Development Premiumisation Superior Products | Effective More users | More usage | Upgrading consumers to Communication | WiMI More Benefits higher order benefits 20 S
Slide 22: Growing the Core
Growing the Core Superior Product Communication WiMI Play driving salience Different product mixes & communications Lifebuoy : Extending leadership position in India #1 Soap brand, #1 Hygiene brand in Skin cleansing, #1 Hand Sanitizer brand 21 Sensitivity: Internal
Slide 23: Accelerating Market Development
Accelerating Market Development Addressing key triggers & Sampling at scale barriers Persuasive communication| Indicting current habit | Access packs | Sampling Explaining benefit | Education 22 Sensitivity: Internal
Slide 24: Premiumisation
Premiumisation Straddling the price benefit pyramid Premium Beauty Business Unit Price - Benefit Upgrading consumers to higher order benefits Built for digitally native & affluent consumers 23 Sensitivity: Internal
Slide 25: 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 Taste of Togetherness 24 Sensitivity: Internal
Slide 26: World class technology
World class technology Differentiated technology Next generational science 25 Sensitivity: Internal
Slide 27: Consumer focused superior products
Consumer focused superior products Superior fragrance & sensorials On-trend Leveraging Neuroscience Impactful Innovations 26 Sensitivity: Internal
Slide 28: Purpose drives growth
Purpose drives growth Positive nutrition People positive Planet positive Bridging India’s Nutrient Positive and Superior Performance with Deficiency Inclusive Beauty Lesser Chemicals 27 Sensitivity: Internal
Slide 29: 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 Accelerating eCommerce New routes to consumers Digitised demand capture > 10% of the business 28 Sensitivity: Internal
Slide 30: Digitising General Trade: eRTM with Shikhar
Digitising General Trade : eRTM with Shikhar Anytime Ordering Transparent Pricing On-time Delivery Guaranteed Returns Easy No/Low Cost Credit Rapid Scale-up: 600K Stores | 10%+ Orders on Shikhar Sensitivity: Internal
Slide 31: Accelerating Pureplay and Omnichannel eCommerce
Accelerating Pureplay and Omnichannel eCommerce Design for Channel Content that converts Flawless execution eCommerce 2x contribution in JQ’21 vs JQ’20 Sensitivity: Internal
Slide 32: New routes to consumers
New routes to consumers Taking premium brands D2C UShop for Monthly Purchase Content Sampling & Direct to End to End Hubs Experience Consumer engagement Sensitivity: Internal
Slide 33: 4. Build differentiated structures and capabilities
4. Build differentiated structures and capabilities Reimagine HUL: Journey to an Intelligent Enterprise Yesterday Tomorrow From Traditional Linear Value Chain to Non-Linear and Inter-connected Ecosystems 32 Sensitivity: Internal
Slide 34: AV: Re-imagine HUL
AV: Re-imagine HUL AV : Reimagine HUL 33 Sensitivity: Internal
Slide 35: 5. Build a purpose-led, future-fit organization and growth culture
5. Build a purpose-led, future-fit organization and growth culture Agile & Future-Fit Truly Inclusive Culture to Outperform Organization skills & Future proofing Igniting thehuman spark ways of working Microcosm of India for a better business & a better world Delivering the Today. Transforming the T
Slide 36: In Summary: Our Vision
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 responsible anatomy
Hindustan Unilever — JP Morgan Investor Summit (September 2021) on 6ix