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Investor PresentationFebruary, 2010
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This Release / Communication, except for the historical information, may containstatements, including the words or phrases such as expects, anticipates, intends, will,would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects,should and similar expressions or variations of these expressions or negatives of theseterms indicating future performance or results, financial or otherwise, which are forwardlooking statements. These forward looking statements are based on certain expectations,assumptions, anticipated developments and other factors which are not limited to, risk anduncertainties regarding fluctuations in earnings, market growth, intense competition and the
pricing environment in the market, consumption level, ability to maintain and manage keycustomer relationship and supply chain sources and those factors which may affect ourability to implement business strategies successfully, namely changes in regulatoryenvironments, political instability, change in international oil prices and input costs and newor changed priorities of the trade. The Company, therefore, cannot guarantee that theforward looking statements made herein shall be realized. The Company, based onchanges as stated above, may alter, amend, modify or make necessary corrective changesin any manner to any such forward looking statement contained herein or make written ororal forward looking statements as may be required from time to time on the basis of
subsequent developments and events. The Company does not undertake any obligation toupdate forward looking statements that may be made from time to time by or on behalf ofthe Company to reflect the events or circumstances after the date hereof.
Safe harbour statement
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Agenda
Our Vision
Market Context
Strategy & Execution
Current Performance
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Our Vision
To earn t he love and respect of India, bymaking a real
difference to every Indian .
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Agenda
Our Vision
Market Context
Strategy & Execution
Current Performance
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FMCG market continues to grow, albeit at a slower pace
Lower pricing component due to Laundry price reductions
Downtrading in Laundry and Tea
High food inflation
Commodity costs firming up
Intensifying competitive environment
Step up in media spends across categories
Several new brand and category entries
But India opportunity remains Strong
Market Context: DQ09
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Market continues to grow
Value growth t empered by price reduct ions
Volume continues to grow albeit at slower pace.
Market Growth - FMCG
Source : AC Nielsen- DQ mar ket growt h
16.114.9
18.1
20.8
18.9 18.617.1
9
MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 DQ09
Value Growth
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Market Growth - Categories
Source : AC Nielsen- DQ mar ket growt h
SoapsLaundry
Hair (Shampoo + Conditioners) Tea
Value Growth Volume Growth
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Mass Bars
47 4744 44 43 44 43 44 44
46 46 46
8
13
18
23
28
33
38
43
48
53
MQ07 JQ07 SQ07 DQ07 MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 DQ09
Dis count Popular Pr em ium
73 72 72 71 70 71 71 69 70 70 7274
01020
304050607080
MQ07 SQ07 MQ08 SQ08 MQ09 SQ09
M ASS POPUL AR PREM IUM
Mass powders
Downt rading in Laundry & Tea
500 bps shift
Laundry Downtrading continues
300 bps up in a year
Tea Witnesses Downtrading
Source : AC Nielsen- DQ mar ket growt h
61 61 61 60 59 60 59 60 6162 62 63 62
0
10
20
30
40
50
60
70
MQ07 JQ07 SQ07 DQ07 MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 Oct'09 Nov'09
Mass Popular Premium
300 bps shift
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Step up in media investment within FMCG several entries in
new categories &segments
Int ensif ied Compet it ive Environment
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The shape of India is changing from a pyramid to a diamond
2003181 mn households
2013231 mn households
Source : National Council of Agriculture & Economic Research
131
46
3
124
11
96
Affluent
Aspirers
Strivers
AffluentTop End Business
Changing attitudes
Trebling
Credit Culture
B.O.P Opportunity
Aspirers
Strivers
Changing Income Patterns
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0.3
3.2
0.8
I ndia China I ndonesia
Per Capita Consumption (US $ )
Source : Euromonitor, 2006
The Consumption Opportunity
1. 4
2.2
1.9
I ndia Chi na I ndonesia
Detergents
0.3
11.1
I ndia Chi na I ndonesi a
Shampoos
0.2
2.8
0.9
I ndia China I ndonesia
Ice-Cream Skin Care
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Agenda
Our Vision
Market Context
Strategy & Execution
Current Performance
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Leverage brand portfolio and consumer understanding by
Straddling the pyramid & deploying full portfolio
Driving consumption & penetration opportunity
Winning with consumers, channels, segments/markets oftomorrow
Build markets and capabilities for the future
Leverage Unilever scale and know how
Drive increased execution rigour
Step-up in cost efficiency initiatives
Integrate economic, environment & social objectives withbusiness agenda
St rat egy & Execut ion
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Key Interventions
Improved competitiveness of mass laundry
Active deployment of full portfolio in Soaps
Entire portfolio relaunched
Continue to drive Personal Products and Foods Enhanced brand investment across the portfolio
Step-up in cost saving programmes and betteroperating leverage
Increased focus on in-market execution
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Leverage brand portfolio and consumer understanding by
Straddling the pyramid & deploying full portfolio
Driving consumption & penetration opportunity
Winning with consumers, channels, segments/markets oftomorrow
Build markets and capabilities for the future
Leverage Unilever scale and know how
Drive increased execution rigour
Step-up in cost efficiency initiatives
Integrate economic, environment & social objectives withbusiness agenda
St rat egy & Execut ion
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Affluent
Aspiring
Striving
Strong brands across categories addressing needs of every consumer
FabricWash
PersonalWash
Shampoo Skin ToothPaste
Tea Coffee
Identifying the opportunity and filling it is important
Portfolio Straddling the Pyramid
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Time to Shine
Restoring Competitiveness in Laundry
Laundry Straddling the Pyramid
Price Correction on Wheel bars & powders
Competitive Brand Investment
Improved Product Quality
Adjusting relative price
Aggressive Consumer Promotion
Price Correction on Bars
Aggressive Consumer Promotion Drive Machine Wash Surf MaticAffluent
Aspiring
Striving
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3.4
7.7
15.1
JQ'09 SQ'09 DQ'09
SOV %
`
Price reductions on Powders and Bars Brand
investments
Wheel
Improved product quality both in Bars and Powders
Jun'09 Jul '09 Aug'09 Sep'09 Oct '09 Nov'09
Has a greatfragrance
Cleans clothesthoroughly
More enjoyableapprach tolaundry
SKU Sep 08 Dec 08 Mar ' 09 Sep' 09 Dec' 09
Rin Adv Bar200 Gms Rs 9 Rs 14 Rs 14 Rs 12 Rs 10Wheel Blue PowderRs 10/- 275 gms 250 gms 275 gms 350 gms 350 gmsWheel Blue BarRs 10/- 200 gms 200 gms 200 gms 235 gms 235 gms
Value through consumer promotions
Wheel - Share of endorsement (IMRB)
Strengthening Mass Laundry
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Portfolio Rejuvenation
Deploy the full Port folio in Soaps
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Build awareness and engage
Build awareness and engage Get consumers to try Lux.Get
consumers to try Lux.Create intrigue about new Lux
Create intrigue about new Lux
PR : 10 second teasers across 45 channels
exclusive footage for new Lux coming up
Lead TV channels popular anchors creating intrigue
What is new about new Lux?
TVC launch
through reality show integration
Unveil by TV stars
Print innovations:
simultaneous disruptive campaign across 21 national dailies
PR Amplification66 print publication
Free air time.
Impactful visibility in
50,000 outlets
Consumer Promotion
of gold coins in a soap
Sampling
consumers experiencing the new Lux
through a joint property built with the biggest media house
in North India
Relaunching Lux with new proposit ion
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Proposition & Pack
Price
Product
Enhanced TFM
Improved Perfumes
Benchmarked with market
Rej uvenat ing Breeze
Promotion
Aggressive Sale Plan
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More than 2% of Market ShareBuilding on Unilever Global experience
Driving Premium Cleansing: Dove
To build SuperiorityTo build Superiority Inviting women to take
the Face Test
Inviting women to take the Face Test
Experience/ Amplification
Experience/ Amplification
TVC and Visibility
Real Women Testimonial
On pack Innovations
Print Innovations
PR Editorial Digital :
Starting a debate on real beauty
Home to Home :
Litmus Test in Households
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Driving consumpt ion : FAL variant s & upt rading
Successful Launch Fair & Lovely Winter Fairness Cream
Improved Mix Consumers uptrading from sachet to Tube
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Leverage brand portfolio and consumer understanding by
Straddling the pyramid & deploying full portfolio
Driving consumption & penetration opportunity
Winning with consumers, channels, segments/markets oftomorrow
Build markets and capabilities for the future
Leverage Unilever scale and know how
Drive increased execution rigour
Step-up in cost efficiency initiatives
Integrate economic, environment & social objectives withbusiness agenda
St rat egy & Execut ion
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Product is Hero
Attack current habit Is your body as fair as your face
EducationalCampaign
Drive Experience Amazing skin on
ground activation
Media for Habit change : ImpactTarget Early Adopters : Youth thru digital
Aligned Promo Strategy
Aligned Promo Strategy
Building new segment s: Vaseline Healthy Whit e
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Building Dove across Categories & segment s
Dove Hair : Launched May 2007 Now No.1 in Modern TradeWin first in Markets of future: Modern Trade
0.93
5.3
1.9
5.4
8.8
5
11.6
15.2
4.2
7.2
02
46
810
1214
16
Yr 2007 Yr 2008 Yr 2009
All India Urban Base Metro Modern Store
Adopt new mediums Consistently make her feelBeautiful
Dove Hair Market Share % ( Value) Dove Hair Condi t ioner Market Share % ( Value)
4.7
17
25.1
05
10
15
20
25
30
Yr 2007 Yr 2008 Yr 2009
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Segment s of t omorrow Hair Condit ioners
17.2 18.7
22.2
25.1
28
32.2 34.4
36.3
41.8
27.4
32.9 33.1 32.3
40.4
25.6
28.4
10
15
20
25
30
35
40
MQ'08 JQ'08 SQ'08 DQ'08 MQ'09 JQ'09 SQ'09 DQ'09
0
5
10
15
20
25
30
35
40
45
HUL Shares
Market Growth%
14.40%18.40%
21.10% 23.30%
10.60%9.40% 9.30%
15.70%
1997 2000 2004 2008
Philippines China
Source: ACNielsen
Source: Euromonitor
Share of Hair Conditioners in Hair Care
India is still approx 3% only
HUL Shares and Market Growth%
Permanent brandingand shelf presence atPOS
Sachets to generate trials
Impactful execution across mediums
Conditioners Marketin India Growing
Fast with hugepotential
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Surface Cleaner currentmarket size at $ 63 mlnGrowing at CAGR of 14.1%with accelerating growthrate
High In-Storevisibility
Extensivesampling
Modern tradeprioritization
Large Scaledemos
Print to driveengagement
and education
Extensive TV plan
Digital andSms plans
360 o
Deployment
plan
All India Presence 52,000 stores
Removes toughest dirt with minimum effort
2.2
0.9
0.5
0.01
Philippines Thailand China India
Per Capita Consumption US$ Surface Cleaner Market (2008)
Source: Euromonitor
Segment s of t omorrow Sur face Cleaners
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Building New Market s: Pure-it
Product Superiority: Unchallenged
Extension of Reach: Retail Channel14500 outlets 40 50% revenue
Innovative Offerings
Pure it Auto Fill
Broadens Portfolio
Pure it Compact
Entry in Discount Segment
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Market /Category Development : Soups & Savoury
Knorr Soups Re-launched with Improved Taste and World Class Packaging
Packaging a benchmark for global Knorr Packaging
Unique claim: 100% real
vegetables which has high
resonance with Consumers &
is brought alive in TVC
Knorr Meal Maker Opportunity
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Building new Capabilit ies Brilliant Act ivat ion
Call Meinteractivecampaign
Generated over 3million uniquecalls
Accelerated
Growth
achieved
after campaign
>2% marketshare gain in NonMetros
Launch of AxeBoost
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1.2 million consumer experience moments were created in 09
85
40
202007 2008 Current
No. of Swirl Parlours
SWIRLS - a successful concept in Europe 85 parlours
FRESH : Fresh Ingredients
CHOICE : Create Your Own
THEATER & FUN : Specially for You
Variousshop and
productformats
Expanding footprint : Out of Home capabilit ies
St rengthening capabilit ies: Winning
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Power ofAnalyticsPower ofPower ofAnalyticsAnalytics
Power of OneUnilever
Power of OnePower of OneUnileverUnilever
ShopperInsights
ShopperShopperInsightsInsights
PeoplePeoplePeople
iQiQiQ
GTM (R)GTM (R)GTM (R)
Channel ProgramsChannel ProgramsChannel Programs Lean & AgileOrganizationLean & AgileLean & AgileOrganizationOrganization
GTM (U)GTM (U)GTM (U)
Winning
In MT
Winning
In GT
St rengthening capabilit ies: Winningat Point of Sale
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Creation of Perfect Stores
Mass Customization
Creating a million perfect stores
Business insights from execution and sales data to
seamlessly support business decisions To enable superior execution and planning of events
Appropriate product assortment to maximize sales
Intelligent Information Systems
Already in pilot
+
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Leveraging Unilever: Global R&D Centres
Bangalore, India
Vlaardingen,NL
Shanghai,China
PortSunlight,UK
Trumbull,US
Colworth,UK
Fabric Wash, Hair Care, Deos,Oral Care, Surface Cleaners,etc.
Skin Care, Deos,Shampoos, etc.
Beverages, ProcessedFoods, etc.
Fabric Wash,Beverages, ProcessdFoods, etc.
Skin Care, Fabric Wash,
Beverages, Ice Creams,Processed Foods, Wateretc.
Shampoos, Skin Care, IceCreams, Beverages,Processed Foods, etc.
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Unilever Research and Development Strengths
Spray TechnologyDeodorants
StructuredOils and Emulsions
HairTechnology
Skin Mildnessand Moisturizing
Product Processinge.g. Ice Cream
Science of Tea
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Product is Hero
Reframe vocabulary : Spots removal too!
Right Size / Right Value
Affordable formats : Mini Jar + Sachet
Media for expertise : Impact thru Non TVTarget top end : Heavy Niche
Aligned Promo Strategy
Aligned Promo Strategy
Leveraging Global Technology: Pond s Whit e Beaut y
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Leverage brand portfolio and consumer understanding by
Straddling the pyramid & deploying full portfolio
Driving consumption & penetration opportunity
Winning with consumers, channels, segments/markets oftomorrow
Build markets and capabilities for the future
Leverage Unilever scale and know how
Drive increased execution rigour
Step-up in cost efficiency initiatives
Integrate economic, environment & social objectives withbusiness agenda
Strategy & Execution
E h i g ti bilit
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Enhancing execution capability
Field Execution Scores
0
50
100
150
Dec'08 Jun'09 Dec'09
Indexed Chart (vs Dec 2008)
Field ExecutionAll India DOH Inventory Order Servicing
Enhanced CustomerService with higher
cash delivery
0
25
50
75
100
2008 Sep '09 Dec'0975
95
115
Days on Hand (Finished Goods) Customer Order Servicing %
ff
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Step up in cost efficiencies
100 100
144
181226
2005 2006 2007 2008 2009 Indexed Indirects
Indexed CEPs Sustained Improvement in Cost
Savings Programme
Tight focus on discretionary costs
100
95.77
84.5
2007 2008 2009
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To Recap.. Key Interventions
Improved competitiveness of mass laundry
Active deployment of full portfolio in Soaps
Entire portfolio relaunched
Continue to drive Personal Products and Foods
Enhanced brand investment across the portfolio
Step-up in cost saving programmes and betteroperating leverage
Increased focus on in-market execution
l h k
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Source : A.C Nielsen YTD 2009 Value shares
DQ Volume Growth > MarketValue Market shares expected to improve going forward
66.7
22.131.2
45.348.6
56.4
45.8
35.8
4.7
21.9
11.5
24
67.310.110.5
FabricWash
PersonalWash
PacketTea
Skin ShampooDishwash Jams
41.9
23.827.2
42.8
30.9
50.2
ToothpasteKetchups
Market Leader Strong No. 2
HUL Market Share (%) Competition Market Share (%)
CoffeeDeos
Reversing recent share decline: Top Priority
S & E i
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Leverage brand portfolio and consumer understanding by
Straddling the pyramid & deploying full portfolio
Driving consumption & penetration opportunity
Winning with consumers, channels, segments/markets oftomorrow
Build markets and capabilities for the future
Leverage Unilever scale and know how
Drive increased execution rigour
Step-up in cost efficiency initiatives
Integrate economic, environment & social objectives withbusiness agenda
Strategy & Execution
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People(Social)
Health(Hygeine and Nutrition)
Prosperity(Economic)
Enhance livelihoods
Planet(Environment)Eco efficiency
(Water, GHG, Packaging)
Where: Around our units of operation
Who :Brands will lead the effort
How: Through Partnerships
Embedding sust ainabilit y
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Grow Marketsin a responsible
Manner
EnsureSustainable
practices @HUL
Responsibleleadership
for a sustainabletomorrow
Our Brands
Our People
Our Processes
Grow Marketsand FuelInnovations
BuildingReputationfor HUL
Societallegitimacy andCompetitive edge
Strategy
Actions
Outcome
Corporate Responsibility: Our Approach
C t R ibilit K A ti i 2009
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Corporate Responsibility: Key Actions in 2009
Strategic Thrusts Key Actions
Brands
HUL Foundation set up
12 tea estates identified; initiated sustainabletomato sourcing
People
Volunteering of 100,000+ hrs (2 X 2008)
Contributed towards disaster relief
Bihar floods, 26/11 trust, AP/Karnataka floodsContribution from Employees
Processes
Reduced GHG by 28% (vs 2004)
Agenda
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Agenda
Our Vision
Market Context
Strategy & Execution
Current Performance
DQ 09: Performance Highlight s
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Volume growth accelerates through the year to 5%
Sales growth 5%;
Soaps shares stabilise 10 bps increase
Volumes shares grow in Laundry 100 bps in powders and 60 bps
in Bars
Personal Products growth momentum sustained through the year
Underlying operating margins* up 10 bps despite high brandinvestments
*Excluding MTM impact
DQ 09: Performance Highlight s
DQ 09: Financial Result s
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Rs Cr or es DQ'09 DQ' 08 Gr ow t h%
Net Sales 4504 4308 4.6
EBITDA 788 764 3.1PBIT 742 723 2.6
PBIT margin (%age) 16.5 16.8 -
Underlying PBIT 757 718 5.4
Underlying PBIT margin(%age) 16.8 16.7
Exceptional Items 44.5 (38.5) -
PBT bei 781 753 3.8
PBT 826 714 15.6
PAT bei 599 612 (2.1)
Net Profit 649 616 5.4
DQ 09: Financial Result s
Looking Ahead
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FMCG market growth to sustain Short term impact of food inflation
Overall growth opportunity remains strong
Competitive environment intensifies significantly Especially in Laundry, Hair & Skin
Reflected in increased media spends
Several new entries in emerging segments
Our focus is to
Deploy our full portfolio & brands to strengthen market leadership
Invest behind our brands competitively to gain share
Improve execution and speed to market
Competitive growth is the No 1 priority across our business
Looking Ahead
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Thank You
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Investor PresentationFebruary, 2010