Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Investor Day (July 2014)
41 slides from Hindustan Unilever's investor day presentation, Jul 1, 2014
Slide 1: Decisively - Annual Investor Meet, July 2014
DECISIVELY Annual Investor Meet, 1 July 2014 Sanjiv Mehta, CEO & MD
Slide 2: 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 3: FY 2013-14: A Challenging Environment
FY 2013-14: A CHALLENGING ENVIRONMENT Source: Bloomberg
Slide 4: We Have Delivered on Our Goals
WE HAVE DELIVERED ON OUR GOALS COMPETITIVE GROWTH CONSISTENT GROWTH PROFITABLE GROWTH Ahead of market Sustaining UVG in a Expanding margins whilst slowing market investing competitively Reported UVG Intrinsic UVG 15.4% PBIT +40 bps A&P +40 bps 14.9% Market HUL MQ'13 JQ'13 SQ'13 DQ'13 MQ'14 2012-13 2
Slide 5: Made Progress on Our Sustainability Priorities
MADE PROGRESS ON OUR SUSTAINABILITY PRIORITIES 58 million people Reduced CO2 emissions by 27%, 65,000 Shakti Ammas touched by Lifebuoy water use by 37%, waste by 84%* and over 50,000 handwashing Shaktimaans who cover programs since 2010 Out of 38 sites, 33 factories are now >4m households across zer
Slide 6: Sustained Our Strong Track Record
SUSTAINED OUR STRONG TRACK RECORD 2010-11 2011-12 2012-13 2013-14 130% 50.1 45.5 109% 97% 35.4 88% 25.5 Return on Capital Employed (%) Cash from Operations (Rs Bln)
Slide 7: Continue to Build Bigger Brands
CONTINUE TO BUILD BIGGER BRANDS * Rs 1000+ Crs Rs 500+ Crs 2013-14 2013-14 11 8 * Brooke Bond Master Brand
Slide 8: Continue to Win with Consumers
CONTINUE TO WIN WITH CONSUMERS Most Trusted Brands 2013 3 HUL brands in Top 5 7 HUL brands in Top 25 19 HUL brands in Top 100 Most Trusted Brand in Water Purifiers Brand Equity 2013 Most Trusted Brands Survey
Slide 9: Retained Our Top Employer Position
RETAINED OUR TOP EMPLOYER POSITION EMPLOYER OF DREAM CHOICE EMPLOYER NO. 1 Employer in Mktg & IIMs 3rd YEAR 5th YEAR FMCG in Finance & IT in a row in a row Employer for Women As per Nielsen Campus Track B-School Survey
Slide 10: Continue to Be Recognized
CONTINUE TO BE RECOGNIZED Forbes Conscious Capitalist 2013 - Forbes India Leadership Awards FORTUNE 2nd in Fortune's List of Most Admired Companies wes AIMA AIMA Managing Award Laponte infant Business Standard Awards for Corporate Excellence recognizes KUL As Star MNC of the Year 2013 HUL - Corporat
Slide 11: HUL: Winning Decisively
HUL: WINNING DECISIVELY
Slide 12: Positive About Medium-Long Term Outlook for FMCG in India
WE ARE POSITIVE ABOUT THE MEDIUM – LONG TERM OUTLOOK FOR FMCG IN INDIA More Users | More Usage | More Benefits LSM – Living Standards Measure
Slide 13: We Remain Committed to Our Strategy
WE REMAIN COMMITTED TO OUR STRATEGY A Compelling Framework A Model Which Works A Clear Set of Goals • Consistent Growth • Competitive Growth • Profitable Growth • Responsible Growth
Slide 14: Winning Decisively - Unilever Sustainable Living Plan
WINNING DECISIVELY Unilever Sustainable Living Plan (USLP) Safety Winning with Brands & Winning in the Innovations Market Place Safety Safety The USLP USLP Compass Winning through Winning with continuous improvement People Safety Unilever Sustainable Living Plan (USLP)
Slide 15: HUL: Winning Decisively - Winning with Brands & Innovations
HUL: WINNING DECISIVELY Winning with Brands & Innovations
Slide 16: Investing Competitively
INVESTING COMPETITIVELY Strong Core Market Development A&P – Advertising & Promotion
Slide 17: Driving Exciting Innovation
DRIVING EXCITING INNOVATION Bigger | Better | Faster
Slide 18: Deploying Impactful Activation
DEPLOYING IMPACTFUL ACTIVATION
Slide 19: Leveraging Global to Win Local
LEVERAGING GLOBAL TO WIN LOCAL ~Rs 100 Cr in first full Online + assisted selling in Across 250+ premium Extended this season; year post launch premium chains in 3 cities salons in 6 cities now in 5 cities
Slide 20: Building Brands with a Purpose
BUILDING BRANDS WITH A PURPOSE
Slide 21: HUL: Winning Decisively - Winning in the Marketplace
HUL: WINNING DECISIVELY Winning in the Marketplace
Slide 22: 2013: The I Will, 1 Mill Challenge
2013: THE I WILL, 1 MILL CHALLENGE MORE STORES BETTER STORES Delivering 1 Million More, 1 Million Perfect Stores
Slide 23: Building Competitive Advantage: More Stores
BUILDING COMPETITIVE ADVANTAGE: MORE STORES 3.2 >3x 0.9 2009 2010 2011 2012 2013 Direct Coverage (Mln Stores)
Slide 24: Building Competitive Advantage: Better Stores
BUILDING COMPETITIVE ADVANTAGE: BETTER STORES Taking Perfect Stores 2013: 1million stores turned Rollout of Perfect Villages: Deeper & Wider Perfect 8500 villages covered Rural SE Wholesale Rural Direct Retail Urban Retail Every Day Great Execution
Slide 25: Winning Partnerships in Modern Trade
WINNING PARTNERSHIPS IN MODERN TRADE ACROSS CATEGORIES IN STORE Market Development Models World Class In-Store Assets Advisors / dynamic CTAs to drive niches JBP engagement, CatMan, VMI ACROSS FORMATS ACROSS CUSTOMERS Higher market shares | Profitable | Preferred supplier
Slide 26: Leveraging Technology to Drive Execution
LEVERAGING TECHNOLOGY TO DRIVE EXECUTION Shakti Mobile Billing Using Shopper Insight enabling Shakti Reports Java Delivery to Win On Shelf Ammas enabled phone Stock Collections Management THE SOLUTION 800,000 Shakti Outlets Enrolled/ 30% Compliant
Slide 27: HUL: Winning Decisively - Winning through Continuous Improvement
HUL: WINNING DECISIVELY Winning through Continuous Improvement
Slide 28: Driving the Virtuous Cycle of Growth
DRIVING THE VIRTUOUS CYCLE OF GROWTH A Business Model That Works Max the Mix End-to-end cost focus Channel, Non Material Portfolio Materials Supply Chain Geography Costs Margin Return on accretive Pricing Marketing Overheads innovation Investments
Slide 29: End to End Cost Focus
END TO END COST FOCUS Material Cost Savings* Non Material Supply Chain Costs* Overheads* 126 100 100 91 90 100 2011 2012 2013 2011 2012 2013 2011 2012 2013 Savings Up, Costs Down *All charts indexed to 2011 (Base = 100)
Slide 30: Efficient Supply Chain
EFFICIENT SUPPLY CHAIN Safety FIRST Service up, Inventory down Innovation Management Capex Productivity Innovation Network OTIF % Accidents per million hrs worked Inventory DOH (Indexed) Productivity Improvement 94 New Capital Investment CCFOT 100 87 94 36% 39% 48% +700 bps 29% lower 90 61% 64% 82 5
Slide 31: Dialing Up Quality
DIALING UP QUALITY Improved Product Quality Superior Service Standards Consumer complaints per million units 60% lower 99.8% Service Efficiency efficiency across 1.7m + 2012 2013 consumer engagements
Slide 32: Agility & Simplification
AGILITY & SIMPLIFICATION Project SKU Product Process Half Rationalization Structure Behaviors Focused workstreams 30%+ lower SKUs Simplify & Sharpen
Slide 33: HUL: Winning Decisively - Winning with People
HUL: WINNING DECISIVELY Winning with People
Slide 34: Winning With & Through Our People
WINNING WITH & THROUGH OUR PEOPLE Values Performance Culture Diverse Workforce Behaviours
Slide 35: Building Talent & Capabilities
BUILDING TALENT & CAPABILITIES Enhancing Front Line Building capability Capability Foods College across HPC Line manager & Customized solutions Going Digital employee education for Water across functions Focus on building institutional capabilities
Slide 36: Slide 36
Slide 37: Building Perfect Communities
BUILDING PERFECT COMMUNITIES Transforming Lives by Empowering Communities for a Sustainable Future Behavioural programs Water security projects Vocational training Launched across 9 sites in Phase 1 | We aim to impact a million lives through Prabhat
Slide 38: Helping Create a Brighter Future
HELPING CREATE A BRIGHTER FUTURE
Slide 39: Winning Decisively - 3 Themes Today
WINNING DECISIVELY – 3 THEMES TODAY Magic in Marketing Harnessing Non-TV Media Winning in the Marketplace
Slide 40: Summary
SUMMARY Challenging Strategy on course, market context in delivered on our 2013-14 ‘4G’ goals Attractive mid-long HUL well term FMCG positioned to win outlook decisively
Slide 41: Thank You
THANK For YOU more information & updates For More Information