Winning Today Winning Tomorrow

Transcription

1 Winning Today Winning Tomorrow

2 Safe harbour 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 expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or otherwise, which are forward looking statements. These forward looking statements are based on certain expectations, assumptions, anticipated developments and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth, intense competition and the pricing environment in the market, consumption level, ability to maintain and manage key customer relationship and supply chain sources and those factors which may affect our ability to implement business strategies successfully, namely changes in regulatory environments, political instability, change in international oil prices and input costs and new or changed priorities of the trade. The Company, therefore, cannot guarantee that the forward looking statements made herein shall be realized. The Company, based on changes as stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral 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 to update forward looking statements that may be made from time to time by or on behalf of the Company to reflect the events or circumstances after the date hereof.

3 Context Turbo charging the Compass

4 Context Turbo charging the Compass

5 India: Large consumption opportunity FMCG - $ bln FY 10 E FY 15 P FY 20 P Base Case High Case CAGR of 12% in base case; 17% with high estimates *Source: Industry Reports

6 Penetration & Consumption: Head room for growth Penetration All India penetration Consumption $ per capita consumption 79 Skin Care 7.9 Skin Care Annual Monthly China Indonesia India 88 Hair Care Shampoo Annual Monthly China Indonesia India 89 Oral Care 3.3 Ice cream Annual *Data Source: IMRB Factbook Monthly *Data Source: Euromonitor, 2010 China Indonesia India

7 Changing consumer aspirations: Favourable Demand Elasticity Personal Care/Foods Explosion LSM 8+ (new categories) LSM 8+ LSM 5-7 LSM x 4.9 x 3.1 x 1.7 x LSM 1 LSM 2-4 LSM 5-7 LSM 8 LSM 1 1x Laundry, Cleansing Pers Prod Foods Exp per HH / year (INR) HUL Participating Categories Source : Family Budget Survey, Consumer Panel

8 HUL uniquely positioned to leverage the opportunity Portfolio Capabilities Strong Brands Across Benefits & Price Points Global Leverage Consumer Understanding, Supply Chain, Go-to-Market Talent R&D, Brand Development, Buying No.1 Employer*, Diverse Talent Pool *awarded by Aon Hewitt in 2011

9 We have sharpened our strategy and stepped up focus on execution

10 Results Domestic Consumer Business Growth 11% 12% 14% 15% 8% 8% MQ'10 JQ'10 SQ'10 DQ'10 MQ'11 JQ'11 UVG* 11% 11% 14% 13% 14% 8% Financials Growth Turnover $4.2 bn $410 mn EBIT margin 12.8% -190 bps EPS Cents % *Underlying Volume Growth; Conversion rate: 1$=INR 45.76

11 Externally recognized Consumers Customers Most responsive supplier of the year 6 EMVIES in th most innovative company globally - Forbes eq* at 89 (world class level) Value Award by TESCO India *Nielsen Equity Management Program Score Employees Communities Golden Peacock Global Award for Corporate Social Responsibility for the year 2011 No.1 Employer by Aon Hewitt Best Employer Brand in Asia, 2011 Golden Peacock Environment Management Award for 2011 in the FMCG category

12 Context Turbo charging the Compass

13 Turbo charging the Compass Driving virtuous circle of growth

14 How will we win

15 Deliver superior products Portfolio with blind product wins: tripled >50% of portfolio launched/ relaunched 3X 2X X Soaps & Detergents Personal Products Packaged Foods Beverages Water

16 Win in core Soaps & Detergents Beverages

17 and drive categories of tomorrow Personal Products Packaged Foods

18 Winning in Skin & Hair Care Reshaping our portfolio Building future segments Transforming the experience Integrated communication

19 Reshaping our portfolio Towards aspirational beauty and expertise

20 Leading market development New benefits Anti Aging Premium Whitening Colour Cosmetics New regimes Hair Conditioners Hair treatments New consumers Male consumers

21 Transforming experience Through Point of Sale Beauty Salons Assisted sales with professionally trained Beauty Advisors: Largest footprint Lakme Salons: Evolving beauty experience

22 With integrated communication Traditional media CRM Online CRM: Consumer Relationship Module

23 Strategy delivering results Premium Skin Lightening Hand & Body Market Size in $ Mln HUL Share Market Size in $ Mln VHW Share Hair Conditioners Face Wash Market Size in $ Mln HUL Share Market Size in $ Mln HUL Share Market growth / share source: AC Nielsen; VHW: Vaseline Healthy White; Market size and HUL shares are on different scale; 2011: annualised estimates

24 Personal Products: Driving growth Portfolio contribution Growth contribution PP* / Total sales (FY ) PP incremental/ Total incremental sales (FY ) Personal Products Rest *PP: Personal Products

25 Building Packaged Foods with Knorr & Kissan Building Savoury Soups Soupy Noodles Dish Penetration Building Spreads & Dressings

26 Accelerating growth in Ice Creams Leveraging strong portfolio Leading market development Creating Successful out implementation of home experience of MDM Delivering results $ mn revenue - CAGR 22% More than 150 parlours * Calendar Year; ^ Financial Year

27 How will we win

28 Win with winning customers: Rural Rural coverage tripled in 2010 Every village in the country mapped Technology leveraged for blueprinting Rigorous ROI model for each state Shakti & Shaktiman Khushiyon ki Doli Shakti Ammas & Shaktiman across villages Largest ever consumer contact programme

29 Win with winning customers: Modern Trade MT Share > GT Shares Increasing (145 bps gain Market in 09) Shares eq* at 89 Continuous (world class improvement level) in Customer Service Profitability Improved *Nielsen Equity Management Program Score

30 Execution powerhouse: Project iq Rolled out Nationally Drive higher throughput through perfect stores

31 How will we win

32 Lean, responsive & consumer led value chain Consumer Perceived Quality Product incidents Consumer complaints Service & Execution E2E Competitive Cost Manufacturing & Distribution excellence Commodity Risk Management CCFOT OSA *CCFOT: Customer Case Fill On Time; OSA: On Shelf Availability; E2E: End to End

33 Results Integrated Quality Culture Service & Execution Competitive Cost Distributors Global Buying Scale MT Distribution & Collaboration Multi-functional Savings Reduction in consumer complaints Improvement in Shelf QDI # Current Indexed CCFOT* Indexed CEPs^ #Quality Demerit Index *Customer Case Fill On Time ^CEPs: Cost effectiveness programmes; Financial year

34 ROMI: Comprehensive approach Optimum allocation to advertisement, promotions & trade spends Optimised promotional sell out Optimal advertising production & fee ROMI: Return on Marketing Investment

35 Results AD Preview Score Indexed production & media fees Driving promotional efficiencies CY2010 YTD June'11

36 How will we win

37 Winning with People # 1 Dream employer across campuses High people engagement HUL TAS P&G BCG.McKinsey & Co # 1 Best employer in India, 2011 awarded by Aon Hewitt Indexed Employee Engagement Scores

38 Building a consumer & customer centric organisation Consumer & Customer Centricity 3500 employees on street, 16,000 outlets converted into perfect stores Customer Credo

39 Driving a new performance culture Comprehensive Framework Measured by Business Results Performance Culture Index

40 How will we win

41 Leading responsible growth GROW MARKETS RESPONSIBLY ENSURE SUSTAINABLE PRACTICES RESPONSIBLE LEADERSHIP

42 Launched India Water Body

43 Business Goals unchanged Winning with Brands and Innovations Competitive Growth Profitable Growth Sustainable Growth

44 Thank You