hul annual investor meet 2014 · 2020. 7. 7. · annual investor meet 2014 . ... hair care . face...
TRANSCRIPT
![Page 1: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/1.jpg)
NAVIGATING THE NEW WORLD ANNUAL INVESTOR MEET 2014 HARISH MANWANI
1
![Page 2: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/2.jpg)
• Unilever Journey
• Stepping up Performance
• Winning in Developing & Emerging Markets
AGENDA
2
![Page 3: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/3.jpg)
40 1. Google 3. Unilever 2. Apple
Over the last 5 years - A very different company
Growing the top line Growing the bottom line An employer of choice
€40 bn
€50 bn
2009
2013 core operating margin
bps +
2013
3
![Page 4: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/4.jpg)
Strong Foundations - clear vision and strategy
Sustainable Living
Energising vision Clear strategy USLP embedded
4
![Page 5: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/5.jpg)
Strong Foundations - putting the pillars in place
Increased investment Reshaped portfolio Organisation & culture
€bn brands: >55%
Personal Care: 36%
Emerging Mkts: 57%
South East
Asia & Australa
sia
Africa
North America
Latin America
Europe NAMET & RUB North Asia
South Asia
Refreshment Foods Home Care Personal Care
2008 2013
+€2bn
A&P
5
Underpinned by stepped-up in-market execution
![Page 6: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/6.jpg)
Winning in the marketplace
More Stores Doubled coverage in 5 years
Perfect Stores From zero in 2009 to 7m in 2013
Better Served Improved service
%
2009 2010 2011 2012 2013
No. of stores OSA (%)
2008 2013
Up by 900 bps
> 8 m
6
![Page 7: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/7.jpg)
Managing Risk Driving Growth Reducing waste & cost
€350m cost avoided in 5 years 48% of raw materials from sustainable sources
Brands with purpose
7
USLP is an integral part of the business
![Page 8: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/8.jpg)
• Unilever Journey
• Stepping up Performance
• Winning in Developing & Emerging Markets
AGENDA
8
![Page 9: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/9.jpg)
Stepping up Performance
Innovation
New Growth Opportunities
More Fuel for Growth
1
2
4
Simplification & Agility 3
9
![Page 10: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/10.jpg)
Stepping up: Innovation
‘Active Naturol shield’ in Lifebuoy
Leveraging Digital Bigger, Better, Faster Innovations
Using new technologies
10
![Page 11: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/11.jpg)
Stepping up: New growth opportunities
Geographic opportunities Fast growing channels Premiumisation
IOMA
MAILLE
11
![Page 12: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/12.jpg)
Faster launch Innovation process
Fewer FTE Order to cash
Reduce complexity SKU reduction
Stepping up: Simplification, agility, and speed
Realising the benefits of scale Simplification: Project Half Marketing Fit to Win
Tailored category approach
Streamline to 6 core processes
12
![Page 13: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/13.jpg)
Stepping up: Fuel for growth
Simplification: Project Half
Marketing Fit to Win
Enterprise Technology & Solutions
€500m savings
13
![Page 14: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/14.jpg)
Stepping up: Portfolio simplification
Further disposals of non-core brands
Targeted acquisitions:
• bolt-on
• aligned with strategy
• emerging markets
Acquisitions Disposals
2013 Future
2013 Future
14
![Page 15: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/15.jpg)
AGENDA
• Unilever Performance
• Taking Performance to the Next Level
• Winning in Developing & Emerging Markets
15
![Page 16: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/16.jpg)
16
Is the developing & emerging market opportunity
intact ?
![Page 17: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/17.jpg)
Changing centre of gravity
Source: www.bakasc.om
![Page 18: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/18.jpg)
18
Unparalleled market position
Average 9% underlying sales growth over the last 20+ years
India Indonesia Thailand Philippines China
Fabric Cleaning
Hair Care
Face Care
Skin Cleansing
Deos
Tea
Savoury
Ice Cream
Brazil Russia
1
1
1
1
1 1 1
2
1
1
1
1
1
2
1
1 1
1
1
1
1
2 2
2
2
2
2
1
2
2 2
1
1
1
Argentina
1
1
1
1
1
2
1
1
1
1
1
Pakistan
1
2
1
2
1
2
South Africa
1
2
1
1
1
1
1
1
Turkey
2
2
1
1
2
1 1 2 1 1 1
Source: Nielsen / IR estimates
![Page 19: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/19.jpg)
19
Rapid urbanisation 1.3 billion new consumers
D&E markets: more consumers of our products
2.6 1.9
2.2 2.7
2.2 3.0
2013 2020
Population (bn)
Haves lots
Haves
Have nots
Urban population % total* India
32%
34%
2013
2020
China
53%
60%
*Source: Oxford Economics
![Page 20: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/20.jpg)
Russia Indonesia Thailand India
Body Lotion Ice cream
D&E markets: more consumption
€ per capita consumption € per capita consumption
15X 13X
Source: Euromonitor
![Page 21: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/21.jpg)
21
D&E: More penetration opportunity
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
White space
Present % o
f tot
al e
mer
ging
mar
ket c
ount
ries
![Page 22: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/22.jpg)
Africa, an underexploited opportunity: e.g. Ethiopia
Vietnam Ethiopia
92 million
> USD 1000
Zero
> €0.5bn
92 million
> USD 1000
Zero
~ Zero
Population
GDP
Sales 20 yrs ago
Sales now
Source: UN /US Census Bureau
![Page 23: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/23.jpg)
Many Indias : Rural is a large opportunity
380 million
~ 850 USD
€4
830 million
~ USD 2500
€15
Population
GDP per capita
HUL categories Per Capita Consumption
Source: Ac Nielsen
![Page 24: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/24.jpg)
Population (Mln)
GDP per capita € PPP
Rest of India
740
2750
Central India
470
1600
GDP Share 78% 22%
Rajasthan Uttar Pradesh
Madhya Pradesh
Bihar
Many Indias : Central India presents a large opportunity
Population Share 60% 40%
1.75 times GDP growth 40% Population ; 49 cities
![Page 25: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/25.jpg)
Continuing to capitalise on our strengths
Deepen distribution reach
China: Reaching more cities & modern trade outlets
India: Adding 17,000 Shakti entrepreneurs
Indonesia: Adding 50 more distribution centres
Chicken cubes in Nigeria
Vitamin A fortified bouillon in Vietnam
Chicken jelly bouillon in China
Global leverage and local relevance
Straddle the pyramid
![Page 26: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/26.jpg)
The emerging market opportunity is intact
![Page 27: HUL annual investor meet 2014 · 2020. 7. 7. · ANNUAL INVESTOR MEET 2014 . ... Hair Care . Face Care Skin Cleansing Deos . Tea . Savoury Ice Cream . Brazil . Russia . 1 . 1 1](https://reader033.vdocument.in/reader033/viewer/2022060905/60a028356b7bea54af00b815/html5/thumbnails/27.jpg)
NAVIGATING IN THE NEW WORLD ANNUAL INVESTOR MEET 2014 HARISH MANWANI
27