UNILEVER INVESTOR EVENT

04 DEC 2018

Sanjiv Mehta, Chairman & Managing Director

Hindustan Unilever Limited
INDIA’S LARGEST FMCG COMPANY

22
Hindustan Unilever Limited : €4.5bn powerhouse

HUL performance Our footprint Recognition

‘Dream Employer’ for 9

10% CAGR over years in a row among
10 years* top Indian universities
Nearly every
household uses one
or more of our brands
530 bps EBIT
improvement
#8 Globally and
#1 in India

Among the top 5 most Our brands are

valuable companies in available in
India with market cap 8mn+ stores 13 HUL brands
of $51b** in India’s Top 50 Most
Trusted Brands

*HUL performance as per India local reporting 3

** Market capitalization converted to USD based on rate as of 22nd Nov 2018
Consistent high performance across Divisions
A few examples in the last 6 years

Beauty & Personal Care Home Care Foods & Refreshment*

Hair Fabric Solutions Tea

Turnover Market Share Turnover Profitability Turnover Profitability

1.9x ~ 700 bps 1.8x 3.7x 1.8x 2.0x

Largest Beauty & Personal Care Largest Home Care Largest Tea
company in India company in India company in India

* On completion of merger with GSKCH, our

F&R business will become one of the largest
in the country
4
All nos are basis internal management reporting & compared with FY’11-12. Market share increase is as of MAT Sep’18
Our strategy is anchored around..

Growth Underpinned by
Unilever Sustainable Living Plan

Consistent, Competitive,
Profitable, Responsible
Growth

5
Strategy in action

Building Blocks

Strengthening Creating categories Driving Fuel for Execution

the Core of future premiumization growth Excellence

Enabled by

Structure Capabilities Culture

Being Future Fit

6
Strategy in action

Building Blocks

Strengthening Creating categories Driving Fuel for Execution

the Core of future premiumization growth Excellence

Enabled by

Structure Capabilities Culture

Being Future Fit

7
Our Core portfolio
Straddling the price-benefit pyramid
For e.g. Hair

Rs. 432
($5) High end naturals

Salon care

Anti-dandruff

Daily damage care

Mass beauty

Sachet at
Re.1 Family
(1.5 US cents)

8
Strengthening the Core

Making the Core more Constantly innovating Focused SKUs at Focus on driving
aspirational through and renovating deaveraged level penetration &
purpose led brands the Core using local insights weighted distribution

9
Building iconic engagement platforms

Lakmé Fashion Week Fair & Lovely Foundation Lifebuoy Help a child reach 5 Lux Golden Rose Awards

Red Label taste of

Rin Career Academy Surf Excel Haar ko Harao togetherness Kissan Tiffin Time Table

10
Innovations driving our growth

11
Our Market development portfolio
Nascent categories penetration

Hand Wash* 22

Instant Coffee

Face Wash

Body Lotion

Washing Liquids

Hair Conditioner

Soups*

Dishwash Liquids

Body Wash* 2

12
Source: IMRB As of MAT Aug’18 (Urban + Rural) ; *Urban only.
Creating categories of the future

Market development model Driving category penetration

Growing at ~ 2x of
20% HUL average
of Business
SEED ACCELERATE EXPLODE

Doubled in size in the last 5 years 2.2 x

UPTO 10% 10% TO 20% 20% AND ABOVE

CATEGORY PENETRATION
200 million
consumer contacts

13
Leading with trends
Naturals Perfume on the go Fabric sensations

Male grooming Health Reinvent Indian look

14
Driving Premiumization

Market growing faster in the premium segment Example : Fabric Solutions

HUL share Price HUL share
2017
of segment* of segment*

Premium 28% 1.3x Premium 3.0x 3.5x

Mid 39% 1.2x Mid 1.5x 2.0x

Mass 33% x Mass x x

*Source: Nielsen MAT Sep’18 (Urban + Rural) 15

Fuel for growth

End-to-end cost focus Powered by Savings

1.7x

Non Material
Materials Supply
Chain Costs x

Return on
Marketing Overheads
Investments 2014 2015 2016 2017

% of Turnover

Organization wide Crowd sourcing of Driving virtuous

effort ideas cycle of growth

16
Execution excellence

Agile Supply Chain Front end execution Speed to market

Inventory days Service 1.8x x

x Effective 0.6x Faster landing of

55
x +1000bps 0.94

innovations
0.92
Coverage*
2015 2018
50

2015 2018
0.9

0.88

45
0.86
No. of days
0.7x 0.84
1.7x
Art of pricing
40

0.82

0.8

x
35

0.78 Assortment
30 0.76

2015 2018 2015 2018

Driving high customer service Leveraging analytics to drive better

while optimizing inventory coverage and sharper assortment

* Effective coverage is measured as no. of outlets with monthly average billing >INR 500 ($7.0); 2018 nos are as of Oct’18 17
India is a heterogenous country

Diverse Varied affluence Different media Differential category

demographics levels habits adoption

Multiple languages LSM 7+ = 8% nationally Mobile internet penetration: Penetration in adjacent

8 Major religions (Range of 5-48%) Rural- 18%*; Urban- 59%* states also not the same

*A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB: March’18 18
Customer Development
Sharper strategy leveraging Traditional trade channels Building channels of
the ecosystem will remain relevant the future

Demand Capture
Wholesale
Right outlets, Right
Aids  Width of
frequency, Right
distribution
assortment Modern Trade - Driving visibility

Retail
Demand Fulfill
Accessibility at
On time delivery at
arm’s reach of
optimal cost
desire
Explode Ecommerce - Partnerships
Demand Generate Shakti and exclusive ranges
World class in store Deep rural
execution distribution Growth and profitability in
E-Com > Modern Trade > Traditional
Trade

19
Strategy in action

Building Blocks

Strengthening Creating Categories Driving Fuel for Execution

the Core of future premiumization growth Excellence

Enabled by

Structure Capabilities Culture

Being Future Fit

20
Winning in Many Indias

WiMI in action

From 4 branches to
Distinctive strategy
14 consumer
at a cluster level
clusters

Empowered Cluster
Customized product
Heads enabling
propositions &
faster decision
media deployment
making closest to
for every cluster
the point of action

WiMI is a competitive edge for HUL

21
Winning in Many Indias – few examples

Proposition in face care Pricing and proposition in fabric solutions Product in Refreshment

Low penetration markets Punjab and

Uttar Tamil
Pradesh Nadu Karnataka

Grow by removing barriers Majority mass Majority mid

of proxy usage
Designed for
color and
Other markets taste
preference

Upgradation through Upgradation through

mid and premium bars top end formats –
Leverage by increasing
and powders Matic liquids
usage occasions
22
C4G in action
Country Category Business Team : 15 Mini – Boards

Functions in a CCBT
Empowered to More consumer & Land bigger, faster
deliver in-year P&L customer centric innovations

Liberating HUL Leadership Team to focus on longer term goals,

Merger of brand building exploring inorganic growth opportunities and managing disruptions
and brand development

23
Digital trends shaping India

Rise of vernacular Exponential data growth

content

Rapidly evolving digital

Rs. 205/GB infrastructure
in 2016
Plummeting data
costs driving
480+ million internet increased usage
users with more (4 hours video per day) 3rd largest start-up
mobile viewers Rs. 19/GB ecosystem in the world
in 2017

Data Sources: Decoding Digital Impact; 2017 Report by BCG & Google; YT data extracted in April 2018 24
Kantar IMRB Internet Report 2016, 2017; 2017 KPMG Google Report on Indian Languages – Defining India’s Internet
Leading the disruption along our value chain

AI Augmented Digital Factory Robotics Automation @ Digitization of Stores Precision Marketing

Decision Making & Robotics Warehouses

Distribution Store
Performance Factory Distributor Consumers
Center
Management

B2B Model and

assured N+1 Delivery

Harnessing the power of ‘Data as an enterprise asset’

25
Winning culture: Focus on Wellbeing, Diversity & Inclusion

Nurturing an Building an Inclusive

experimentation culture Workplace Holistic Wellbeing

Distinctive Technology giving

+1200 bps
Competitive Advantage improvement in
gender balance

Embracing
inclusion beyond
Consumer Appropriate
Need/ Unmet Large Part gender and
Problem of the Value breaking
Chain
stereotypes People with Physical and
purpose mental wellbeing

26
 UNILEVER
SUSTAINABLE
LIVING PLAN
Unilever Sustainable Living Plan

Health & Wellbeing Sustainable Sourcing Enhancing Livelihoods Thought Leadership

90,000+ Shakti
100% tomatoes 450 billion
entrepreneurs
are sourced from network
litres
sustainable of water saving
sources potential
created
1.7 million
people
>67 million people reached - benefitted
Lifebuoy Handwashing
100% of our
Programme
plastics
52% tea is Over 420,000
83 billion litres of safe packaging to
sourced from people trained
drinking water provided by be reusable,
estates recyclable or
Pureit
certified as compostable
~1.1 million people impacted sustainable by 2025
600,000+ women
through Domex Toilet enrolled
Academy

28
Key Messages

• Unilever has a rich history and deep heritage in South Asia spanning over 100 years

• South Asia has huge headroom to grow being home to the largest millennial population,
growing affluence, rising urbanization and burgeoning digital connectivity

• Unilever has strong business in South Asia and a clear and compelling strategy across
divisions

• We are future proofing our business through market development, agile organization
structures and building distinctive capabilities across the value chain leveraging data and
technology

• USLP continues to be our key differentiator

29
Thank you
For more information