sub: investor presentation for hindustan unilever limited ... · tap into distribution and unlock...

64
Hindustan Unilever Limited Unilever House B D Sawant Marg Chakala, Andheri East Mumbai 400 099 Tel: +91 (22) 3983 0000 Web: www.hul.co.in 12th September, 2018 CIN: L15140MH1933PLC002030 Stock Code: BSE: 500696 NSE: HINDUNIL VR /SIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Sandra - Kurla Complex, Dalal Street, Sandra (E), Mumbai - 400 001 Mumbai - 400 051 Dear Sir, Sub: Investor Presentation Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of the presentation to be made at CLSA Investor Conference 2018 at Hong Kong today. You are requested to take the above information on record. Thanking You. Yours faithfully, Executive Director (Legal & Corporate Affairs) and Company Secretary DIN: 00050516 / FCS No. 3354 For Hindustan Unilever Limited ev Bajpai

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Page 1: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

Hindustan Unilever Limited

Unilever House B D Sawant Marg Chakala Andheri East Mumbai 400 099

Tel +91 (22) 3983 0000 Web wwwhulcoin

12th September 2018 CIN L15140MH1933PLC002030

Stock Code BSE 500696

NSE HINDUNIL VR

SIN INE030A01027

BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department Exchange Plaza 5th Floor 2nd Floor New Trading Wing Plot No C1 G Block Rotunda Building PJ Towers Sandra - Kurla Complex Dalal Street Sandra (E) Mumbai - 400 001 Mumbai - 400 051

Dear Sir

Sub Investor Presentation

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 we are enclosing herewith a copy of the presentation to be made at CLSA Investor Conference 2018 at Hong Kong today

You are requested to take the above information on record

Thanking You

Yours faithfully

Executive Director (Legal amp Corporate Affairs) and Company Secretary DIN 00050516 FCS No 3354

For Hindustan Unilever Limited

ev Bajpai

CLSA INVESTOR CONFERENCE | 12 SEP 2018

RE-IMAGINING HUL

Sanjiv Mehta Chairman amp Managing Director

SAFE HARBOUR STATEMENT

This Release Communication except for the historical information may contain statements including the words or phrases such as lsquoexpects anticipates intends will would undertakes aims estimates contemplates seeks to objective goal projects shouldrsquo 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

2

RAPID PACE OF CHANGE LAST 5 YEARS

Market Context

2012 2013 2014 2015 2016 2017

Market Growth

2012 2013 2014 2015 2016 2017

Urban ndash Rural Growth

Urban Rural

Rural Growth subdued till 2017

GST Biggest Tax

Disruptions amp Climate Extremities

Growing affluence reform in India and aspirations

481Mn Foods safety

Rapid increase in 130Mn Internet and

Demonetization of mobile usage 86 currency in

Consumers amp Competition

20172012 No of Internet users In India circulation

Increased competitive Floods and Droughts intensity

Source IAMAI

3

PERFORMANCE IN THE LAST 6 YEARS

Net Sales

~$19bn added^

EBITDA

~$573 Mn added

~$37bn added

Market Capitalization

All nos compared with FYrsquo11-12 which is reinstated to reflect key IND AS accounting impact ^Not adjusted for GST accounting impact amp hence the net sales number looks deflated Difference in market capitalization converted to USD based on rate as of 7th Sep 2018

4

A FEW EXAMPLES OF CONSISTENT HIGH PERFORMANCE

Laundry Hair Care Tea

5

LAUNDRY ndash LAST 6 YEARS

Consistent Growth in Topline amp Bottom line

Turnover

18 X

Profitability

37 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

6

HAIR CARE ndash LAST 6 YEARS

Consistent delivery on all fronts powered by strong portfolio

Turnover

19 X

Market Share

~700bps

All nos are basis internal management reporting amp compared with FYrsquo11-12 Market share increase is as of MAT July18

7

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 2: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

CLSA INVESTOR CONFERENCE | 12 SEP 2018

RE-IMAGINING HUL

Sanjiv Mehta Chairman amp Managing Director

SAFE HARBOUR STATEMENT

This Release Communication except for the historical information may contain statements including the words or phrases such as lsquoexpects anticipates intends will would undertakes aims estimates contemplates seeks to objective goal projects shouldrsquo 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

2

RAPID PACE OF CHANGE LAST 5 YEARS

Market Context

2012 2013 2014 2015 2016 2017

Market Growth

2012 2013 2014 2015 2016 2017

Urban ndash Rural Growth

Urban Rural

Rural Growth subdued till 2017

GST Biggest Tax

Disruptions amp Climate Extremities

Growing affluence reform in India and aspirations

481Mn Foods safety

Rapid increase in 130Mn Internet and

Demonetization of mobile usage 86 currency in

Consumers amp Competition

20172012 No of Internet users In India circulation

Increased competitive Floods and Droughts intensity

Source IAMAI

3

PERFORMANCE IN THE LAST 6 YEARS

Net Sales

~$19bn added^

EBITDA

~$573 Mn added

~$37bn added

Market Capitalization

All nos compared with FYrsquo11-12 which is reinstated to reflect key IND AS accounting impact ^Not adjusted for GST accounting impact amp hence the net sales number looks deflated Difference in market capitalization converted to USD based on rate as of 7th Sep 2018

4

A FEW EXAMPLES OF CONSISTENT HIGH PERFORMANCE

Laundry Hair Care Tea

5

LAUNDRY ndash LAST 6 YEARS

Consistent Growth in Topline amp Bottom line

Turnover

18 X

Profitability

37 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

6

HAIR CARE ndash LAST 6 YEARS

Consistent delivery on all fronts powered by strong portfolio

Turnover

19 X

Market Share

~700bps

All nos are basis internal management reporting amp compared with FYrsquo11-12 Market share increase is as of MAT July18

7

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 3: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

SAFE HARBOUR STATEMENT

This Release Communication except for the historical information may contain statements including the words or phrases such as lsquoexpects anticipates intends will would undertakes aims estimates contemplates seeks to objective goal projects shouldrsquo 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

2

RAPID PACE OF CHANGE LAST 5 YEARS

Market Context

2012 2013 2014 2015 2016 2017

Market Growth

2012 2013 2014 2015 2016 2017

Urban ndash Rural Growth

Urban Rural

Rural Growth subdued till 2017

GST Biggest Tax

Disruptions amp Climate Extremities

Growing affluence reform in India and aspirations

481Mn Foods safety

Rapid increase in 130Mn Internet and

Demonetization of mobile usage 86 currency in

Consumers amp Competition

20172012 No of Internet users In India circulation

Increased competitive Floods and Droughts intensity

Source IAMAI

3

PERFORMANCE IN THE LAST 6 YEARS

Net Sales

~$19bn added^

EBITDA

~$573 Mn added

~$37bn added

Market Capitalization

All nos compared with FYrsquo11-12 which is reinstated to reflect key IND AS accounting impact ^Not adjusted for GST accounting impact amp hence the net sales number looks deflated Difference in market capitalization converted to USD based on rate as of 7th Sep 2018

4

A FEW EXAMPLES OF CONSISTENT HIGH PERFORMANCE

Laundry Hair Care Tea

5

LAUNDRY ndash LAST 6 YEARS

Consistent Growth in Topline amp Bottom line

Turnover

18 X

Profitability

37 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

6

HAIR CARE ndash LAST 6 YEARS

Consistent delivery on all fronts powered by strong portfolio

Turnover

19 X

Market Share

~700bps

All nos are basis internal management reporting amp compared with FYrsquo11-12 Market share increase is as of MAT July18

7

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 4: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

RAPID PACE OF CHANGE LAST 5 YEARS

Market Context

2012 2013 2014 2015 2016 2017

Market Growth

2012 2013 2014 2015 2016 2017

Urban ndash Rural Growth

Urban Rural

Rural Growth subdued till 2017

GST Biggest Tax

Disruptions amp Climate Extremities

Growing affluence reform in India and aspirations

481Mn Foods safety

Rapid increase in 130Mn Internet and

Demonetization of mobile usage 86 currency in

Consumers amp Competition

20172012 No of Internet users In India circulation

Increased competitive Floods and Droughts intensity

Source IAMAI

3

PERFORMANCE IN THE LAST 6 YEARS

Net Sales

~$19bn added^

EBITDA

~$573 Mn added

~$37bn added

Market Capitalization

All nos compared with FYrsquo11-12 which is reinstated to reflect key IND AS accounting impact ^Not adjusted for GST accounting impact amp hence the net sales number looks deflated Difference in market capitalization converted to USD based on rate as of 7th Sep 2018

4

A FEW EXAMPLES OF CONSISTENT HIGH PERFORMANCE

Laundry Hair Care Tea

5

LAUNDRY ndash LAST 6 YEARS

Consistent Growth in Topline amp Bottom line

Turnover

18 X

Profitability

37 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

6

HAIR CARE ndash LAST 6 YEARS

Consistent delivery on all fronts powered by strong portfolio

Turnover

19 X

Market Share

~700bps

All nos are basis internal management reporting amp compared with FYrsquo11-12 Market share increase is as of MAT July18

7

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 5: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

PERFORMANCE IN THE LAST 6 YEARS

Net Sales

~$19bn added^

EBITDA

~$573 Mn added

~$37bn added

Market Capitalization

All nos compared with FYrsquo11-12 which is reinstated to reflect key IND AS accounting impact ^Not adjusted for GST accounting impact amp hence the net sales number looks deflated Difference in market capitalization converted to USD based on rate as of 7th Sep 2018

4

A FEW EXAMPLES OF CONSISTENT HIGH PERFORMANCE

Laundry Hair Care Tea

5

LAUNDRY ndash LAST 6 YEARS

Consistent Growth in Topline amp Bottom line

Turnover

18 X

Profitability

37 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

6

HAIR CARE ndash LAST 6 YEARS

Consistent delivery on all fronts powered by strong portfolio

Turnover

19 X

Market Share

~700bps

All nos are basis internal management reporting amp compared with FYrsquo11-12 Market share increase is as of MAT July18

7

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 6: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

A FEW EXAMPLES OF CONSISTENT HIGH PERFORMANCE

Laundry Hair Care Tea

5

LAUNDRY ndash LAST 6 YEARS

Consistent Growth in Topline amp Bottom line

Turnover

18 X

Profitability

37 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

6

HAIR CARE ndash LAST 6 YEARS

Consistent delivery on all fronts powered by strong portfolio

Turnover

19 X

Market Share

~700bps

All nos are basis internal management reporting amp compared with FYrsquo11-12 Market share increase is as of MAT July18

7

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 7: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

LAUNDRY ndash LAST 6 YEARS

Consistent Growth in Topline amp Bottom line

Turnover

18 X

Profitability

37 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

6

HAIR CARE ndash LAST 6 YEARS

Consistent delivery on all fronts powered by strong portfolio

Turnover

19 X

Market Share

~700bps

All nos are basis internal management reporting amp compared with FYrsquo11-12 Market share increase is as of MAT July18

7

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 8: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

HAIR CARE ndash LAST 6 YEARS

Consistent delivery on all fronts powered by strong portfolio

Turnover

19 X

Market Share

~700bps

All nos are basis internal management reporting amp compared with FYrsquo11-12 Market share increase is as of MAT July18

7

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 9: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

TEA ndash LAST 6 YEARS

No 1 Tea Company in India

Turnover

18 X

Profitability

20 X

All nos are basis internal management reporting amp compared with FYrsquo11-12

8

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 10: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

BEING RECOGNISED

Best Performing 3 Company globally Economic Times ndash 8 Globally and Corporate Citizen of

Unilever Business for building leaders Company of the year 1 in India the year 2014 2015 2018 20182014

lsquoDream Employerrsquo for 9 years in a row among top Indian universities

9

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 11: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

HUL SHARE PERFORMANCE

2011 2012 2013 2014 2015 2016 2017 2018

$ 12 billion 2012

$ 49 billion

Current

41 X

BSE FMCG

BSE SENSEX

HUL

Performance vs Indices

HUL among the top 5 most valuable companies in India

Market Capitalization

Markets rewarding our Consistent Competitive Profitable and Responsible Growth

USD to INR conversion rate used as of 7th Sep 2018 Based on market capitalization as of 7th Sep 2018

10

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 12: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

THE WORLD AROUND US IS CHANGING

With dramatic disruptions hellip

A 20 word tweet can start a revolution today

11

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 13: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

ITrsquoS AN AGE OF CHANGE AND DISRUPTION

There is a thrill of purpose

Changing family dynamics Millennials Gen Z

Digital disruptions Globally connected but Uncertainties and Volatility reshaping business models there is a search for

are the new normal authenticity

12

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 14: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

AND HENCE THERE IS A NEED FOR

Consumer Centricity Speed amp Agility Digital Connectivity Being Glocal

13

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 15: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

FMCG CONTINUES TO BE A BIG OPPORTUNITY IN INDIA

PER CAPITA FMCG CONSUMPTION

INDIA INDONESIA CHINA PHILIPPINES

~2X INDIA ~4X INDIA ~ 5X INDIA US$ 29

To tap this big opportunity we need more money in the hands of more people ie Inclusive Growth

Source Nielsen as of MAT Marchrsquo18 14

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 16: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

MARKETS SHOWING EARLY SIGNS OF REVIVAL

13X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban value growth

Currency amp Crude Tailwinds

Good monsoon

Increasing MSP

Upcoming elections

15X

1X

2013 Q218

Rural Growth Indexed

Urban Growth

Rural vs Urban volume growth

Rural growth on an upward trajectory Gradual improvement in demand

MSP Minimum Support Price Source Nielsen

15

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 17: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

16

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 18: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

17

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 19: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

18

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 20: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

19

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 21: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

INDIA IS A HETEROGENOUS COUNTRY

Varied affluence levels

Different media habits

Differential category adoption

Diverse demographics

Multiple languages 8 Major religions

LSM 7+ = 9 nationally (Range of 5-48)

Market share in adjacent states also not the same

Mobile internet penetration Rural- 18 Urban- 59

A report published jointly by the Internet and Mobile Association of India (IAMAI) and KANTAR-IMRB Marchrsquo18 20

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 22: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

WINNING IN MANY INDIAS (WiMI)

Madhya Pradesh Chhattisgarh

Rajasthan

14 Consumer Clusters

WiMI in action

Distinctive strategy at a cluster level

Empowered Cluster Heads enabling faster decision

Customized product making closest to

propositions amp the point of action

media deployment for every cluster

21

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 23: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

CCBTs 15 MINI-BOARDS IN ACTION

Building a stronger sense of empowerment amp ownership

Multi functional representations in CCBTs

Customer Marketing Development

Supply Finance

Chain

Research amp Development

Responsible for delivering in-year PampL

Merger of Brand Development amp Brand Building

CCBT Cluster Category Business Teams

22

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 24: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

LIBERATING THE MANAGEMENT COMMITTEE TO FOCUS ON LONGER TERM GOALS

Build new business models

Greater focus on talent amp capabilities

Explore Inorganic growth opportunities

Coach amp Mentor CCBTs

CCBT Cluster Category Business Teams

23

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 25: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

24

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 26: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

STRENGTHENING THE CORE

Offering multiple Focus on driving Constantly Focused SKUs at value additions penetration amp innovating and cluster level to Making the core across the core weighted renovating the address demands more aspirational

portfolio distribution core of all Indias

25

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 27: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

CREATING CATEGORIES OF THE FUTURE

Opportunities to premiumize and up trade huge headroom to grow

India Nascent Category Penetration

20

1

Penetration

Consumption

Up-Trading

Bo

dy

Wa

sh

Dis

hw

as

h

Liq

uid

s

So

up

s

Ha

ir

Co

nd

itio

ne

r

Wa

shin

g

Liq

uid

s

Bo

dy

Lo

tio

n

Fa

ce W

ash

Ins

tan

t C

off

ee

Ha

nd

Wa

sh

Source IMRB As of MAT Junersquo18 (Urban + Rural) Urban only 26

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 28: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

MARKET DEVELOPMENT amp PREMIUMIZATION

Powered by education demos and sampling

X 8X

2014 2017

Consumer contacts

Growing at ~2X HUL Average

Business Results Science of Sampling

27

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 29: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

Pioneering Trends BB cream

Male grooming range co-created with Amazon

Building the Anti Perspirant category

BRIDGING PORTFOLIO GAPS

No 1 in Green Tea

Toilet cleaning powder made for Indian toilets

Tailormade for the Indian skin tones

Making Traditional Ingredients

Contemporary

Indiarsquos No1 Fabric Conditioner brand

28

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 30: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

BUILDING NATURALS

Naturals portfolio growing ~25X of overall HUL average

29

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 31: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

X

5x

MQ 17 JQ 17 SQ 17 DQ 17 MQ 18 JQ 18

Turnover

BUILDING SPECIALIST BRANDS - INDULEKHA

Growth exceeding our acquisition business case

30

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 32: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

Tap into Distribution and Unlock Portfolio Synergies

EXPANDING ICE CREAM PORTFOLIO

Acquisition

Innovations Rs 10 Access Packs

Equivalent to $014

31

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 33: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

32

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 34: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

BUILDING BRANDS WITH PURPOSE

33

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 35: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

CONSISTENTLY EVOLVING BRAND COMMUNICATION

2005 2011 2013 2017

Pride Loyalty amp Forgiveness Empathy amp Love Learning from Failure

2008 2010 2014 20172005

A cup of motherly love

A cup with little sips of life

Health amp Taste

Surf AV

Taste amp Togetherness

Taste amp Togetherness

34

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 36: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

BUILDING ICONIC ENGAGEMENT PLATFORMS

Lux Golden Rose Awards

Lakmeacute Fashion Week

FAL Foundation Lifebuoy help a child

reach 5

Surf Excel Haar Ko Harao

Rin Career Academy Red Label Taste and

Togetherness Kissan Tiffin

Timetable

35

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 37: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

BUILDING DIFFERENTIATED CONTENT

LFW Content Social Media PR amp Influencers Ecommerce Digital Video

Massive outreach with bloggers amp

influencers

LFW Lakmeacute Fashion Week

36

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 38: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

37

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 39: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

GENERAL TRADE WILL CONTINUE TO REMAIN BIG

More throughput from more stores

All GT channels will remain relevant Driving effective coverage amp assortment

Wholesale

Aids Width of distribution

Retail

Accessibility at armrsquos reach of desire

EFFECTIVE COVERAGE ASSORTMENT

2015 2018 2015 2018

X X

17X18X

Shakti

Deep Rural distribution

In a country of ~600k villages amp 10Mn outlets GT even after 10 years will remain an important channel

Effective coverage is measured as no of outlets with monthly average billing gtINR 500 ($70) 2018 nos are as of Julyrsquo18

38

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 40: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

BUILDING CHANNELS OF THE FUTURE

Modern Trade ECommerce

Driving visibility across Modern Trade Exclusive male grooming range co-

created with partner

Our Growth amp Profitability in ECommerce gt Modern Trade gt Traditional Trade

39

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 41: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

40

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 42: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

TECHNOLOGY AVAILABLE TODAY OPENS UP A LOT OF OPPORTUNITIES

Internet of Things Cloud Technology Artificial intelligence

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

41

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 43: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

OUR DATA STRATEGY

What data do we have today and

what more we need to meet

the business strategy

42

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 44: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

WE CHOSE TO DISRUPT THAN BE DISRUPTED

Insights

Distribution Communication Consumer

Journey

RampD Manufacturing

43

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 45: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

RE-IMAGINING HUL OUR VISION

ldquoRe-imagine HUL of the future by choreographing a holistic approach across the value chain to completely transform the way we do business in a connected worldrdquo

44

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 46: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

RE-IMAGINING SUPPLY CHAIN

bull Integrated e-bull 1 Day Planning

Plan

Cycle (real-time)

Source

tendering

Make

bull Digital Factory bull New Logistic models

bull Realtime Forecast bull Smart Robotics bull Integrated SampOP bull Efficient

bull Segmentation bull Smart Inventory bull Network redesign Fulfilment Centres modelling 20

Deliver

Robotization AV 45

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 47: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

RE-IMAGINING MARKETING

Advanced Analytics amp Decision Support System

Social Listening Always on Conversation

Granular data analysis and tracking

Precision Marketing Consumer Journey

Precision Targeting and Deployment

MAXIMA

Re-imagining Marketing AV 46

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 48: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

RE-IMAGINING CUSTOMER DEVELOPMENT

Demand CaptureDemand Capture Demand Fulfilment Demand Generation

Providing superior customer service through vertical task specialization across the three pillars interlinked through modular IT capabilities

47

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 49: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

Understanding

DEMAND CAPTURE

Salesman Chatbots

Enhance salesman

Advanced Analytics AI

Driving better and All inclusive retailer productivity with chatbots sharper assortment engagement tool

User friendly Customer Algorithmic Smarter Product Know your Interface Engagement Segmentation recommendation Discovery Current QOC of Outlets

Retailer Product Answer Unlock Self-service Information Outlet Queries Potential

Learn Information Convenient Easy Policies your speed

Transparency Tracking behaviors

Shikhar app

48

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 50: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

DEMAND FULFILMENT

Redistribution Stockist Demand Fulfilment

Depot Outlet

bull Project Shogun Deliver with speed to trade and ensure efficient fulfilment

bull Impact App A delivery interface to unlock benefits for retail stockist Eliminate RS

delivery cost Improved quality

of delivery Leverage technology

for automation

Project Shogun AV 49

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 51: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

DEMAND GENERATION

Demand Generation

bull Scaling up B2C (HumaraShop)

bull Leverage technology to improve shelf presence

50

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 52: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

51

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 53: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- -

GENERATING FUEL FOR GROWTH BY CONSTANT REINVENTION

Powered by

End to end cost focus

Leveraging Technology

Investing back into virtuous cycle of growth

2014 2015 2016 2017

x

17x

Savings as a of Turnover

52

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 54: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

- - -

- - -

-

RE-IMAGINING HUL

Re imagining our structure

Re imagining our portfolio

Re imagining magic in marketing

Re imagining the value chain

Re imagining fuel for growth

Re imagining culture of the organisation

Re imagining our trade channels

53

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 55: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

ENGRAINING NEW STANDARDS OF LEADERSHIP

54

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 56: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

BRINGING AN ORGANIZATION WIDE CHANGE

Building an Ownerrsquos mindset

Nurturing an experimentation culture

Diversity and Inclusion

ESOP

Holistic Wellbeing

Distinctive Technology giving Competitive Advantage

Appropriate Large Part

of the Value Chain

Consumer Need Unmet

Problem

55

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 57: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

FOCUSSED ON WELLBEING DIVERSITY amp INCLUSION

Physical Mental Emotional amp Purposeful Wellbeing

Leadership commitment to gender balance Gender

neutral policies

Embracing inclusion beyond gender - hire the best PwD

talent

Embracing inclusion and diversity in all forms

Driving cultural interventions to break

Adopting technology for unwanted stereotypes Wide ranging initiatives health improvement

Persons with Disabilities

56

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 58: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

WHILE WE RE-IMAGINE HUL WHAT WE

WILL NOT CHANGE IS

OUR PURPOSE amp VALUES

57

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 59: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

LEGACY OF DOING WELL BY DOING GOOD

Founderrsquos Vision in the 19th century

Our Purpose today

ldquoI believe that nothing can be greater than a business however small it may be that is governed by conscience and that nothing can be meaner or more petty than a business however large governed

without honesty and without brotherhoodrdquo -William Hesketh Lever

58

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 60: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

UNILEVER SUSTAINABLE LIVING PLAN

Health amp Wellbeing Sustainable Sourcing

80000+ Shakti 100

Water Conservation

entrepreneurs TOMATOES are network

sourced from sustainable

sources 17 million people

benefitted 450 billion litres gt67 million people reached - of water potential Lifebuoy Handwashing created 52 TEA is Programme Over 420000

sourced from people trained estates certified 83 billion litres of safe drinking as sustainable water provided by Pureit

200000 women ~11 million people impacted

enrolled through Domex Toilet Academy

Enhancing Livelihoods

59

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 61: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

THOUGHT LEADERSHIP ON PLASTICS

Our Commitment

bull All our plastics packaging to be reusable recyclable or compostable by 2025

bull 25 of our plastic usage to come from recycled sources by 2025

bull Reduce the weight of the packaging we use by one third by 2020

bull Factory and packaging

wastage reduced by 54 amp

33 respectively

bull gt1800 tons of plastic laminates collected and safely disposed

bull ~23000 tons of plastic waste converted to energy

in last 12 months

Progress Way Forward

bull Co-create with the Government - National Framework for Extended Producers Responsibility (EPR) for plastics

bull Create a Model segregation collection waste movement value chain

60

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 62: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

IN SUMMARY

The external context is fast Focussed on Leveraging Building

evolving and FMCG The new structure delivering consistent technology to re- capabilities and in India continues to (WIMI CCBTs) has competitive imagine our ways re-imagining our

be an immense made HUL more profitable and of working across culture to be opportunity agile and resilient responsible growth the value chain future ready

Our purpose and values remain unchanged

61

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 63: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

62

HUL IS RE-INVENTING ITSELF TO BE FUTURE READY

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018
Page 64: Sub: Investor Presentation For Hindustan Unilever Limited ... · Tap into Distribution and Unlock Portfolio Synergies EXPANDING ICE CREAM PORTFOLIO Acquisition Innovations Rs. 10*

For more information amp updates THANK YOU For More Information

63

  • scan
  • HUL Presentation - CLSA HK 12th Sep 2018