Annual Investor Seminar 2012_tcm114-286961

7/31/2019 Annual Investor Seminar 2012_tcm114-286961

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Hindustan Unilever LimitedAnnual Investor Seminar 2012


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Hindustan Unilever LimitedWinning Today, Winning Tomorrow


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Clear and compelling strategy

Consistent Growth

Competitive Growth

Profitable Growth

Responsible Growth

Strategic framework Sustainable Living Plan Our Goals


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Virtuous circle of growth

A business model that works

Profitable Volume Growth

InnovationA&P/R&D

CostLeverage

+Efficiencies

CostSavings

Focused on execution


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Market HULDomestic consumer

Sales growthHULEBIT

FY 2011-12: Delivered on goals

Competitive growthAhead of market

Consistent growthVolume led

Profitable growthMargin expansion

14

18

UVG Price USG

108

18

17.5%

140 bps

HUL FMCG growth %FMCG growth %


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Stepped up the growth momentum

Increasing FMCG USG (%) Higher PP contribution (%)

PP Personal Products; USG: Underlying Sales growth; F&B: Foods & Beverages

8

10

18

FY10 FY11 FY12

28

31

FY10 FY12

31

34

FY10 FY12

Higher Foods contribution to F&B


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Straddling the pyramid

5

1

2

3

Compass - How will we win

Strengthening capabilities - Widening competitive gap

Sustainability - USLP


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Winning Principles

Our first priority is to our consumers,then customers, employees andcommunities. When we fulfill ourresponsibilities to them our

shareholders will be rewarded.


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Embedding consumer and customer centricity

Consumer & Customer License

Project Popeye

Mission Bushfire Perfect storesCustomer Credo


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Our approach to Winning


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Step up in innovationsCovering 60%+ of portfolio

Kissan range expanded and relaunched Soupy Noodles

extension

Pureit Marvella RO

CupaSoup instant soups

Bru Gold 100% coffee Bru Exotica

Lipton Ice Tea

Green and flavored Teabags

Fruttare Naturally refreshing flavours

with 100% Fruit

Selection 5 Rich and Creamy

International flavours


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Better quality products, stronger brands

Tripled blind product wins % Improved brand equity scores

X

2009

2010

2011

2X

3X

3/4 th of portfolio

holding/gaining *

Measured for the top 25 brands; *Exit 2011 Vs second half 2009


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Driving mix through premiumization

Skin care(Face)

Segments

Premium

Mid

Mass

Market construct (%)

20

30

50

Market CAGR2009-11 (%)

40

35

10

Moving up the ladder


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Building segments of future

FacewashesSize: >Rs. 900 crs.

Growth: c. 50%

Hand & Body Size: >Rs. 2300 crs.

Growth: c. 30%

HandwashesSize: >Rs. 250 crs.

Growth: c. 30%

NoodlesSize: >Rs. 1700 crs.

Growth: c. 30%

Market size and growth for 2011


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More UsageDrive consumption

More UsersDrive preference

More BenefitsDevelop segments

Leading market development


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Repeatable modelsSuccessful deployment in Skin and Hair

More users More usage More benefits


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Stepping up front end execution

Product

Pack

Proposition

Price

Place

Promotion

Better Stores

CORE SERVICED : 2 Mn+

DISTRIBUTED : 6.5 Mn

Direct

More stores

2010 2011

Better served*

* Modern Trade on shelf availability

310 bps


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Delivering results

Perfect StoresIncreasing contribution, higher growth

Modern TradeAccelerating

RuralDistribution gains

2010-11 2011-12

contribution growth

2010-11 2011-12

contribution growth

Average Perfect stores

Growth in perfect storessignificantly higher


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Consumerperceived

quality

Differentiated Supply ChainDriving benefits across value chain

E2Ecompetitive

costs

World classservice

Live Superior Service.Delivery Sustainable, Profitable Growth

Flawless execution, Safety and Sustainability


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Focus on cash and savings

2008-09 2011-12

Step up in cost savingsSavings as a % of Turnover

Delivering cashTWC as a % of turnover

2010-11 2011-12

Maximizing ROCEOptimizing investments

TWC: Trading working capital; includes debtors, creditors and inventory excludes cash; ROCE: Return on Capital employed

52%Productivity

ImprovementCapacityincreasein 2011

% Contributed by

48%New Capital

Investments


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Driving Return on Marketing InvestmentsGetting more out of advertising

Awareness

P e r s u a s

i o n

70%

201020112010

2011

Improvement in Ad preview scoresUp by 800 bps

Production and media feesLower by 900 bps

More ads pre-testedUp by 50%


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Driving Return on Marketing InvestmentsOptimizing promotional spends

+

-/-

-/- + TO Growth

R O I P o s

i t i v e

20102011

20102011

More green activitiesHigher by 1100 bps

Higher ROIUp 200 bps

More activities evaluatedUp by > 50%

ROI: Return on Investment


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Performance culture that respects our values A broad based systematic approach

PERFORMANCE

CULTURE


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Building a talent powerhouse

# 1 Dream employer across campusesSurvey by Nielsen

# 1 Best employer in India, 2011awarded by Aon Hewitt

# 1 Employer of choice by NielsenCampus track


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Straddling the pyramid

5

1

2

3

Compass - How will we win

Strengthening capabilities - Widening competitive gap

Sustainability - USLP


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Widening competitive gapCapability thrusts

Winning withbeauty

Target right forgrowth

Expertise andauthority program

World class in-store experience

Beauty training

Winning in Foods

Robust supplychain

CD capabilitiesRelevantexperience models

Talent and culture

Segmentedbusiness models

Differentiatedmodels - Lean andagile

Leveragingtechnology

Business planningand operations

TransactionsBusiness analyticsDigital Media

Winning in Rural

Shakti/ShaktimanTelecomFinancial Inclusion
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Winning in RuralSizeable opportunity

LargeConsumer base

146 millionHouseholds

Significantcontribution

~40%of FMCG

Growingrapidly

Doubledigits

RisingIncome

3.6X

increase ingovernmentexpenditure

Consumptionand uptrading

Strong

growth inemergingcategories


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DirectDistribution

Tripled

Expandingpresence

Project Shakti

Consumerawareness

Khushiyon Ki Doli

LeveragingpartnershipsProject Express

HUL rural: fast growing and profitableExpanded distribution, stepped up execution

Winning in rural


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Expanding HUL Rural presenceProject Shakti

45,000 Shaktiammas

30,000 Shaktimaans

15 States

100,000 Villages


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Driving consumer awareness and retail contactKhushiyon ki Doli

2010 2011

3 States 5

28,000 Villages 70,000

10 mln Consumers 25 mln

170,000 Retailers 400,000


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Addressing rural cost to serve challengeProject Express

COMPLETED

HUL TTSL Distribution Alliance


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Widening competitive gapCapability thrusts

Winning withbeauty

Target right forgrowth

Expertise andauthority program

World class in-store experience

Beauty training

Winning in Foods

Robust supplychain

CD capabilitiesRelevantexperience models

Talent and culture

Segmentedbusiness models

Differentiatedmodels - Lean andagile

Winning in Rural

Shakti/ShaktimanTelecomFinancial Inclusion

Leveragingtechnology

Business planningand operations

TransactionsBusiness analyticsDigital Media
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Building competitive gapsLeveraging IT for growth

Supporting CustomerDevelopment

Enhancing br andengagement

Drivi ng S&OP Supportingtransactions

Improving coverage,quality of information

and insights in traditionaltrade

Global digitalcapability

Enabled by End to Endsystems for business

planning and operations

Simplified paymentprocessing
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Leveraging IT for growthSupporting customer development


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Leveraging IT for growthDriving new age communication - digital

DigitalReadiness

Building capability

More brands, moreplatforms, always on

Significant step up ininvestment

Engagementbased

communication

Focus on earned media

4.2 Mn Socialnetworking fans added

in 2011

>1 billion socialimpressions generated

Mobile, Socialsearch, gaming

and DTH

500% increase insearch, 100% in socialand 90% on mobile

Online video is 10% of total digital spends

Consumerinsights,

analytics, ROI

CMI integration onDTH, mobile anddisplay

Pre-testing of digitalcreatives Digital campaign

effectiveness

Build consumercentric

platforms

Axe Angels Club-Top 10 FB page inIndia-2nd largest Unilever

FB page JammyArt.com: Indiaslargest Kida UGCplatform

BeBeautiful.in: Indiaslargest beautyplatform


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Driving new age communicationMobile gaming

Reach10 million game downloads

Impact Avg. of 4.5 plays per person

Excellent User Reviews


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Driving new age communicationMobile activation


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Driving new age communicationIntegrated video plus social networking

3.3 lakhs channel views126 subscriptions

60 videos

1st ever FMCG campaign fromIndia to enter the Facebook

Studio hall of fame


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Unilever Sustainable Living Plan Three big goals

Unilever Sustainable Living Plan


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Unilever Sustainable Living Plan India Highlights 2011

30 million people reached with Lifebuoy soap handwashingprogrammes in 2010-11

30 million people have gained access to safe drinking water byusing Pureit in-home water purifier, since 2005

Around 60% of our major food and beverage brands Brooke Bond,Bru, Knorr, Kissan and Kwality Walls comply with the HealthyChoice guidelines

Reduced CO 2 emissions by 14.7%, water use by 21.5% andwaste by 52.8% in our factories, over 2008 baseline

Improved CO 2 efficiency in transportation by 17.8%

60% of tomatoes in Kissan Ketchup are sourced sustainably


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Wi i g t d i i g t


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Winning today winning tomorrowDriven by a clear and compelling strategy

Consistent Growth

Competitive Growth

Profitable Growth

Responsible Growth

Strategic framework Sustainable Living Plan Our Goals

Hind stan Unile er Limited


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Hindustan Unilever LimitedAnnual Investor Seminar 2012