Unilever PLC · LSE:ULVR
Unilever — Deutsche Bank Global Consumer Conference 2021
31 slides from Unilever's conference presentation, Jun 7, 2021
Slide 1: Deutsche Bank Global Consumer Conference 2021
Deutsche Bank Global Consumer Conference 2021 Alan Jope & Sanjiv Mehta 7th June 2021
Slide 2: Safe Harbour Statement
Safe Harbour Statement This presentation may contain forward-looking statements, including ‘forward-looking statements’ within the meaning of the United States Private Securities Litigation Reform Act of 1995. Words such as ‘will’, ‘aim’, ‘expects’, ‘anticipates’, ‘intends’, ‘looks’, ‘believes’, ‘vi
Slide 3: Agenda
Agenda 1 Unilever Overview 2 Portfolio: Prestige Beauty and Functional Nutrition 3 Markets: Digitalisation in India 4 Summary 3
Slide 4: Key facts: Unilever Overview
Key facts Unilever Overview Top 5 markets: €51bn 18.5% Home USA C are India 21% turnover underlying operating Brazil Beauty & margin China Personal Care Indonesia 42% Foods & Refreshment 37% 190 €7.7bn countries free cash flow 14 of the top 50 global consumer brands Most effective 60% marketer sales
Slide 5: Unilever's differentiating strengths
Unilever’s differentiating strengths Unilever Overview Powerful portfolio of Strong presence in The global leader in leading category and growth markets of sustainable business brand positions the future Leading 81% 50% positions 12 Top Leader brands #1 or of turnover of GlobeScan in Dow Jones #2 in
Slide 6: Strong start to the year
Strong start to the year Unilever Overview Operational Competitiveness Q1 Growth excellence Penetration Underlying Sales Growth 57% 5.7% Innovation Design for channel % Business Winning MAT Brand purpose 4.7% Underlying Volume Growth Fuel for growth 6
Slide 7: Five strategic choices
Five strategic choices Unilever Overview 1. Develop our portfolio into high growth spaces 2. Win with our brands as a force for good, powered by purpose & innovation 3. Accelerate in USA, India, China and leverage EM strength 4. Lead in the channels of the future 5. Build a purpose-led, future-fit o
Slide 8: Strategic choices: Portfolio
Strategic choices Portfolio 1. Develop our portfolio into high growth spaces 2. Win with our brands as a force for good, powered by purpose & innovation 3. Accelerate in USA, India, China and leverage EM strength 4. Lead in the channels of the future 5. Build a purpose-led, future-fit organisation a
Slide 9: Portfolio evolution into higher growth spaces
4 % Laundry Home & Hygiene 5 % Priority focus area Skin Cleansing Deodorants Oral Care 17% Hair Care Skin Care €16bn M&A capital deployed ‘15-20 Prestige Beauty 72% Portfolio evolution into higher growth spaces Functional nutrition Plant-based foods Scratch cooking 3 % Ice Cream Portfolio 9
Slide 10: Focus on high growth spaces
Focus on high growth spaces Portfolio Prestige Beauty Functional Nutrition $156bn market, growing ~7% VMS: $140bn market, growing >7% Scale High growth Potential in Route to Branding & growth countries leadership technology sensitive 10
Slide 11: Prestige Beauty: Future fit operating model
Prestige Beauty: Future fit operating model Portfolio Geography footprint €0.7bn €3bn +21% Asia 14% ambition North E urope America 22% Q1 USG 63% Category footprint >50% O ther Hair 8% 12% % eCommerce Skin Care 80% 2015 2016 2017 2018 2019 2020 11
Slide 12: Purpose led prestige beauty brands
8 purpose led prestige beauty brands Portfolio Dermalogica Kate Somerville Murad REN Living Proof Hourglass Garancia Tatcha 12
Slide 13: Prestige Beauty: Framework for growth
Prestige Beauty: Framework for growth Portfolio String of pearls model Growth channels Purpose led Digital first Impactful innovation 13
Slide 14: Functional Nutrition: Building scale
Functional Nutrition: Building scale Portfolio €1.1bn €3bn ambition +54% #1 Q1 USG selling multivitamin on Amazon >80% #1 sales via eCommerce VMS brands in Target 2018 2019 2020 2020 annualised 14
Slide 15: Acquired Functional Nutrition brands since 2018
6 acquired Functional Nutrition brands since 2018 Portfolio Equilibra Olly Horlicks Liquid I.V. SmartyPants Onnit 15
Slide 16: Functional Nutrition: Framework for growth
Functional Nutrition: Framework for growth Portfolio Differentiated model Priority markets Health & Wellbeing C hannel shift Digital and DTC 16
Slide 17: Strategic choices: India
Strategic choices India 1. Develop our portfolio into high growth spaces 2. Win with our brands as a force for good, powered by purpose & innovation 3. Accelerate in USA, India, China and leverage EM strength 4. Lead in the channels of the future 5. Build a purpose-led, future-fit organisation and g
Slide 18: HUL: India's largest FMCG Company
HUL: India’s largest FMCG Company India €5 bn 25% 9 out of 10 Turnover Operating margin Households use one or more 5th Largest + €3 bn +1000bps of our brands Indian company by market capitalisation of In last decade In last decade € 66 bn c. 90% Brands in Of our business has category 8m+ Largest M&A
Slide 19: India a land of opportunities
India a land of opportunities India India is reforming FMCG has huge headroom to grow Health Food Drinks 24% Instant Coffee India X Face Wash Ease of doing Body Lotion business rank Washing Liquids Indonesia 2X improved Dishwash Liquid Soup China 3X +79 Hair Conditioner Body Wash 2% Low category FMC
Slide 20: Beauty & Personal Care India
Beauty & Personal Care €2.1 bn India Hair care Straddling price - benefit Portfolio transformation pyramid Hair CAGR 11% Rs. 432 High end Relative (€5) naturals Market Share 3X Salon care FY’10-11 FY20-21 Anti-dandruff Daily damage care Mass beauty Sachet at Rs.1 Family (€0.012) 20
Slide 21: Home Care India
Home Care €1.7 bn India Upgrading with new Impactful Fabric Wash benefits Innovations CAGR 11% Profitability 8X Relative Market Share More benefits FY’10-11 FY20-21 2X Rising income 21
Slide 22: Foods & Refreshment India
Foods & Refreshment €1.6 bn India Tea Winning in many Indias’ Market Development CAGR 12% Secured market Recognising leadership in Tea Heterogeneity FY’10-11 FY20-21 Punjab & Karnataka Same brand designed for different preferences 22
Slide 23: India's Digital Evolution
India’s Digital Evolution India Average monthly data Internet penetration Cost of 1 GB data consumption per user 2015 2021 2015 2021 2015 2021 302 m 761m US$ 4 US$ 10c 0.8 GB 13 GB 23
Slide 24: Reimagining HUL: Journey to an Intelligent Enterprise
Reimagining HUL: Journey to an Intelligent Enterprise India Yesterday Tomorrow Consumer Ecosystem Data, Tech Source Manufacture Dis tribute Sale s & Analytics Operations Customer Ecosystem Ecosystem Transforming from linear value chain to non linear and interconnected ecosystems 24
Slide 25: Consumer Ecosystem
Consumer Ecosystem India Generating Better Agile Innovation Hub Insights Interconnected Engagement Engagement & Faster & Better Systems Feedback Innovation Navigate the C rafting Effective shopper to Attributing media to growth C ommunication purchase Deploying C ommunication Effectively Consumer si
Slide 26: Customer Ecosystem
Customer Ecosystem India Demand Generation Demand Capture Demand Fulfilment eComm, USHOP Shikhar Capability (DTC) & (eB2B ordering) Digi Payment Data & Analytics Last mile Delivery MyKirana (B2C) App based call & Route optimisation, Ambition to double Impact contribution personalised Retailer cred
Slide 27: Operations Ecosystem
Operations Ecosystem India Plan & Source Make Deliver & Service Artificial Intelligence led commodity and Manufacturing & distribution network Automated storage & picking demand forecasting transformation Machine Learning powered intelligent Digitally enabled agile manufacturing Integrated routing &
Slide 28: Powered by Data, Tech & Analytics
Powered by Data, Tech & Analytics India Consumer Data Lake External Ecosystem Data Operations Data Customer Data Forecasting Lake Lake Basket Data Data Fulfilment Store Point of Sale Operations Data Sell in Data Data Augmenting decision making 28
Slide 29: Summary
Summary Summary Good start to the year through continued focus on operational excellence Clear strategic choices Portfolio evolution underway and new businesses building well Driving competitive advantage through digitalisation
Slide 30: Our vision
Our vision Summary Our vision is to be the global leader in sustainable business. We will demonstrate how our purpose-led, future-fit business model drives superior performance, consistently delivering financial results in the top third of our industry.
Slide 31: Deutsche Bank Global Consumer Conference 2021
Deutsche Bank Global Consumer Conference 2021 Alan Jope & Sanjiv Mehta 7th June 2021
Unilever — Deutsche Bank Global Consumer Conference 2021 on 6ix