Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — The Goldman Sachs CIO Conference 2012
36 slides from Hindustan Unilever's conference presentation, Oct 31, 2012
Slide 1: Winning with the Indian Consumer
WINNING WITH THE INDIAN CONSUMER Evolving India Perspectives & the HUL Experience The Goldman Sachs CIO Conference, 31-Oct-2012
Slide 2: Introducing Hindustan Unilever Limited (HUL)
Introducing Hindustan Unilever Limited (HUL) FY 2011 - 12 Get more INR / USD = 54 out of life Segments % Revenue % Results Soaps & Detergents 48.1 36.9 Personal Products 31.0 52.1 Beverages 11.8 11.0 Packaged Foods 6.2 0.7 Others 2.9 -0.7 • More than 75 years of experience in India with products tha
Slide 3: Opportunity in the evolving India / Winning in India
1 Opportunity in the evolving India 2 Winning in India – The HUL experience
Slide 4: Growing incomes amidst continued disparity
Growing incomes amidst continued disparity 2004 2009 2015 196 mn households 219 mn households 251 mn households 3 9 23 LSM 8+ 15 48 125 LSM 5-7 178 162 104 LSM 1-4 Affluence will keep rising BOP will remain large New categories New consumers New benefits Extending reach
Slide 5: Rising incomes to favor Personal Care and Foods
Rising incomes to favor Personal Care and Foods Demand elasticity Personal Care / Foods explosion LSM 8+ (new 7.7 x categories) 4.9 x LSM 8+ LSM 5-7 3.1 x LSM 2-4 1.7 x LSM 1 1x LSM 1 LSM 2-4 LSM 5-7 LSM 8+ 0 5000 10000 Laundry, Skin Cleansing Pers Prod Foods Exp per HH / year (INR) *HUL Participati
Slide 6: Head room for growth
Head room for growth Consumption Penetration € per capita consumption All India penetration Skin Care Skin Care 79 5.9 63 3.2 45 0.6 China Indonesia India Annual DQ Dec Shampoo Hair Care 1.7 1.6 89 79 63 0.5 China Indonesia India Annual DQ Dec Oral Care Ice cream 91 80 2.4 63 1.2 0.3 China Indonesia
Slide 7: The changing landscape of Urban India
The changing landscape of Urban India Rapid Urbanization Hybrid Trade Structure The emerging Urban Poor Growing at 2.4% Co-existence of GT & MT > 20% of Urban live in slums Source : CIA world fact book Source : Census 2001 & 2011 projections
Slide 8: Rural whilst evolving will continue to remain large
Rural whilst evolving will continue to remain large Sizable Rising Diversifying Consumption and Footprint Income income uptrading Majority of >3x increase in Significant Strong growth India will government diversification in in emerging continue to live expenditure* Rural income categories in Rural
Slide 9: Large consumption opportunity
Large consumption opportunity FM CG - $ bln 137 62 87 50 28 FY 10 E FY 15 P FY 20 P Base Case High Case CAGR of 12% in base case; 17% with high estimates Source: FMCG roadmap to 2020 – CII Report, 2010 9
Slide 10: Opportunity in the evolving India / Winning in India
1 Opportunity in the evolving India 2 Winning in India – The HUL experience
Slide 11: Driven by a clear and compelling strategy
Hindustan Unilever Limited : Winning in India Driven by a clear and compelling strategy Strategic framework Sustainable Living Plan Our Goals Winning Today, Winning Tomorrow • Consistent Growth • Competitive Growth • Profitable Growth • Responsible Growth
Slide 12: Winning in India: Compass into Action
WINNING COMPASS ININTO THE ACTIONINDIA OF CLSA Investors’ Forum, Hong Kong, 11-Sept-2012 TODAY Strategy on &Course TOMORROW
Slide 13: Delivering on goals
Compass Into Action : Strategy on Course Delivering on goals
Slide 14: Our approach to Winning
Our approach to Winning 5 y THE COMPASS Bic ha | Winning with brands and innovation Winning in the marketplace Winning through continuous improvement a eee — Winning with people
Slide 15: Our approach to Winning
Our approach to Winning 5 y THE COMPASS Bic ha | Winning with brands and innovation Winning in the marketplace Winning through continuous improvement a eee — Winning with people
Slide 16: Portfolio which straddles the pyramid
Portfolio which straddles the pyramid
Slide 17: Better products, stronger brands, stepped up innovation
Better products, stronger brands, stepped up innovation Superior Products Stronger Brands Stepped up innovation 3X 2011 2X 2010 3/4th X of portfolio holding/gaining * 2009 Blind Product Wins Brand Equity Scores* Innovation touching 60%+ of portfolio Measured for the top 25 brands; *Exit 2011 Vs seco
Slide 18: Driving premiumization
Driving premiumization SKIN CLEANSING LAUNDRY SKIN CARE (FACE) PREMIUM
Slide 19: Leveraging global portfolio might to win locally
Leveraging global portfolio might to win locally
Slide 20: Building today to win with the aspiring consumer
Building today to win with the aspiring consumer Building Capabilities in Beauty Investing in Segments of the Future
Slide 21: Our approach to Winning
Our approach to Winning 5 y THE COMPASS Bic ha | Winning with brands and innovation Winning in the marketplace Winning through continuous improvement a eee — Winning with people
Slide 22: Stepping up front end execution
Stepping up front end execution 93% 90% 2011 YTD 12 * CCFOT (Customer Case Fill on Time)
Slide 23: Winning in the Channel of Tomorrow: Modern Trade
Winning in the Channel of Tomorrow : Modern Trade
Slide 24: Winning in the Geography of Tomorrow: Gateway to Rural
Winning in the Geography of Tomorrow : Gateway to Rural Project Shakti Khushiyon Ki Doli Project Express Expanding presence Increasing consumer Leveraging partnerships awareness 45,000 Shaktiammas 70,000 Villages HUL - TTSL Alliance 30,000 Shaktimaans 25 mln Consumers > 20,000 markets across India 1
Slide 25: Building differentiated capabilities to win in the market
Building differentiated capabilities to win in the market • Mumbai Customer Insight & Innovation Centre (CiiC) : First CiiC for Traditional Trade • Building competitive edge through Customer Collaboration • Enabled by Superior Shopper Understanding and Leading Edge Technology
Slide 26: Our approach to Winning
Our approach to Winning 5 y THE COMPASS Bic ha | Winning with brands and innovation Winning in the marketplace Winning through continuous improvement a eee — Winning with people
Slide 27: Driving savings and leverage
Driving savings and leverage CEPs - Cost effectiveness programmes
Slide 28: Getting more out of advertising & promotional spends
Driving Return on Marketing Investments (ROMI) Getting more out of advertising & promotional spends
Slide 29: Our approach to Winning
Our approach to Winning 5 y THE COMPASS Bic ha | Winning with brands and innovation Winning in the marketplace Winning through continuous improvement a eee — Winning with people
Slide 30: Building a talent powerhouse
Building a talent powerhouse # 1 Employer of choice by Nielsen Step up in employee engagement Campus track scores # 1 Best employer in India, 2011 awarded by Aon Hewitt # 1 Dream employer across campuses 2009 2010 2011 Survey by Nielsen A team which is consumer & customer centric
Slide 31: Strengthening Performance culture
Strengthening Performance culture Performance culture index is up by 14% in 2011
Slide 32: At the heart of our strategy is doing business responsibly
At the heart of our strategy is doing business responsibly Sustainable Living Plan with ambitious goals
Slide 33: And we are making steady progress
And we are making steady progress 30 million people touched by Lifebuoy handwashing programs in 2010-11 30 million people have gained access to safe drinking water through Pureit since 2005 ~60% of our major food and beverage brands comply with the ‘Healthy Choice’ guidelines’ Reduced CO2 emissions
Slide 34: Securing India's water resources
And taking decisive action on securing India’s water resources
Slide 35: Looking Ahead
Looking Ahead HUL : Driven by a clear & compelling strategy Medium-Long Term • India Growth Potential • Consumer demand drivers intact • Opportunities from emerging trends Near Term • Challenging market environment Consistent Growth Competitive Growth • Inflationary pressure on consumers Profitable
Slide 36: Winning with the Indian Consumer
WINNING WITH THE INDIAN CONSUMER Evolving India Perspectives & the HUL Experience The Goldman Sachs CIO Conference, 31-Oct-2012
Hindustan Unilever — The Goldman Sachs CIO Conference 2012 on 6ix