Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Presentation (2014)
27 slides from Hindustan Unilever's investor presentation, 2014
Slide 1: Navigating the New World
NAVIGATING THE NEW WORLD ANNUAL INVESTOR MEET 2014 HARISH MANWANI 1
Slide 2: Agenda
AGENDA • Unilever Journey • Stepping up Performance • Winning in Developing & Emerging Markets 2
Slide 3: Over the last 5 years - A very different company
Over the last 5 years - A very different company Growing the top line Growing the bottom line An employer of choice 2013 core operating margin €50 bn €40 bn + 40 bps 1. Google 2. Apple 3. Unilever 2009 2013 3
Slide 4: Strong Foundations - clear vision and strategy
Strong Foundations - clear vision and strategy Energising vision Clear strategy USLP embedded Sustainable Living 4
Slide 5: Strong Foundations - putting the pillars in place
Strong Foundations - putting the pillars in place Increased investment Reshaped portfolio Organisation & culture Personal Home Care Refreshment Foods A&P Care €bn brands: >55% +€2bn Personal Care: North America Europe NAMET & RUB North Asia 36% South Asia Africa Emerging Mkts: Latin America South Ea
Slide 6: Winning in the marketplace
Winning in the marketplace More Stores Perfect Stores Better Served Doubled coverage in 5 years From zero in 2009 to 7m in 2013 Improved service No. of stores OSA (%) >8m % 2008 2013 2009 2010 2011 2012 2013 Up by 900 bps 6
Slide 7: USLP is an integral part of the business
USLP is an integral part of the business Driving Growth Reducing waste & cost Managing Risk Brands with purpose €350m cost avoided in 5 years 48% of raw materials from sustainable sources 7
Slide 8: Agenda
AGENDA • Unilever Journey • Stepping up Performance • Winning in Developing & Emerging Markets 8
Slide 9: Stepping up Performance
Stepping up Performance 1 Innovation 2 New Growth Opportunities 3 Simplification & Agility 4 More Fuel for Growth 9
Slide 10: Stepping up: Innovation
Stepping up: Innovation Bigger, Better, Faster Using new technologies Leveraging Digital Innovations ‘Active Naturol shield’ in Lifebuoy 10
Slide 11: Stepping up: New growth opportunities
Stepping up: New growth opportunities Geographic opportunities Fast growing channels Premiumisation MAILLE IOMA 11
Slide 12: Stepping up: Simplification, agility, and speed
Stepping up: Simplification, agility, and speed Simplification: Project Half Marketing Fit to Win Realising the benefits of scale Innovation process Faster launch Tailored category approach Order to cash Fewer FTE Reduce SKU reduction complexity Streamline to 6 core processes 12
Slide 13: Stepping up: Fuel for growth
Stepping up: Fuel for growth Simplification: Project Half €500m Marketing Fit to Win savings Enterprise Technology & Solutions 13
Slide 14: Stepping up: Portfolio simplification
Stepping up: Portfolio simplification 2013 2013 Future Future Disposals Acquisitions Further disposals of non-core brands Targeted acquisitions: • bolt-on • aligned with strategy • emerging markets 14
Slide 15: Agenda
AGENDA • Unilever Performance • Taking Performance to the Next Level • Winning in Developing & Emerging Markets 15
Slide 16: Is the developing & emerging market opportunity intact?
Is the developing & emerging market opportunity intact ? 16
Slide 17: Changing centre of gravity
Changing centre of gravity Source: www.bakasc.om
Slide 18: Unparalleled market position
Unparalleled market position Fabric Cleaning 1 1 2 1 2 1 1 1 2 Hair Care 1 2 1 2 1 1 1 1 2 1 1 Skin Cleansing 1 1 1 2 1 1 1 1 1 Face Care 2 1 1 2 1 1 1 Deos 1 1 1 1 1 2 1 1 2 1 Tea 2 2 2 2 2 1 Savoury 2 2 2 1 1 1 1 1 1 Ice Cream 1 1 2 1 1 1 1 1 1 Brazil Russia India China Indonesia Thailand Philippi
Slide 19: D&E markets: more consumers of our products
D&E markets: more consumers of our products 1.3 billion new consumers Rapid urbanisation Population (bn) Urban population % total* India China 2.2 3.0 Haves lots 34% 60% 2020 2.2 2.7 Haves 2.6 32% 53% 2013 1.9 Have nots 2013 2020 19
Slide 20: D&E markets: more consumption
D&E markets: more consumption Ice cream Body Lotion € per capita consumption € per capita consumption 15X 13X Russia Indonesia Thailand India
Slide 21: D&E: More penetration opportunity
D&E: More penetration opportunity 100% 90% % of total emerging market countries White space 80% 70% 60% 50% 40% 30% 20% 10% Present 0% 21
Slide 22: Africa, an underexploited opportunity: e.g. Ethiopia
Africa, an underexploited opportunity: e.g. Ethiopia Vietnam Ethiopia 92 million Population 92 million > USD 1000 GDP > USD 1000 Zero Sales 20 yrs ago Zero > €0.5bn Sales now ~ Zero
Slide 23: Many Indias: Rural is a large opportunity
Many Indias : Rural is a large opportunity 830 million Population 380 million ~ 850 USD GDP per capita ~ USD 2500 €4 HUL categories Per Capita Consumption €15 Source: Ac Nielsen
Slide 24: Many Indias: Central India presents a large opportunity
Many Indias : Central India presents a large opportunity 40% Population ; 49 cities 1.75 times GDP growth Rest of Central India India Population Rajasthan Uttar Pradesh (Mln) 740 470 Bihar Population Share 60% 40% Madhya Pradesh GDP per capita € PPP 2750 1600 GDP Share 78% 22%
Slide 25: Continuing to capitalise on our strengths
Continuing to capitalise on our strengths Deepen distribution reach Straddle the pyramid Global leverage and local relevance China: Reaching more cities & modern trade Chicken cubes in outlets Nigeria Vitamin A fortified Indonesia: bouillon in Vietnam Adding 50 more distribution centres India: Chick
Slide 26: The emerging market opportunity is intact
The emerging market opportunity is intact
Slide 27: Navigating in the New World
NAVIGATING IN THE NEW WORLD ANNUAL INVESTOR MEET 2014 HARISH MANWANI 27