2. Safe harbour statement
This Release / Communication, except for the historical information, may contain statements, including
the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates,
contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of these
expressions or negatives of these terms indicating future performance or results, financial or
otherwise, which are forward looking statements. These forward looking statements are based on
certain expectations, assumptions, anticipated developments and other factors which are not limited
to, risk and uncertainties regarding fluctuations in earnings, market growth, intense competition and
the pricing environment in the market, consumption level, ability to maintain and manage key customer
relationship and supply chain sources and those factors which may affect our ability to implement
business strategies successfully, namely changes in regulatory environments, political instability,
change in international oil prices and input costs and new or changed priorities of the trade. The
Company, therefore, cannot guarantee that the forward looking statements made herein shall be
realized. The Company, based on changes as stated above, may alter, amend, modify or make
necessary corrective changes in any manner to any such forward looking statement contained herein
or make written or oral forward looking statements as may be required from time to time on the basis
of subsequent developments and events. The Company does not undertake any obligation to update
forward looking statements that may be made from time to time by or on behalf of the Company to
reflect the events or circumstances after the date hereof.
2
3. Contents
1 About the Company
2 India FMCG Market Opportunity
3 Our Strategy
4 Financial Information, Shares & Governance
5 Contact Information
3
5. Our Vision
We work to create a better future everyday.
We help people feel good, look good and get more out of life with brands and
services that are good for them and good for others.
We will inspire people to take small everyday actions that can add up to a big
difference for the world.
We will develop new ways of doing business that will allow us to double the size
of our company while reducing our environmental impact.
5
6. HUL: India’s largest FMCG Company
More than 75 years
of experience in
India Products touch the
lives of 2 out of 3
Get more Indians everyday
out of life
Direct distribution
reach of > 2 Mn
stores No.1 and strong
No.2 in more than
95% of the
business
7 brands > Rs. 1000 crs; 13 brands > Rs. 500 crs
17 out of top 100 most trusted brands in India^
^Brand Equity Survey, 2011 6
7. Pan India footprint
Population 1.2 billion
•
5545 Towns 2.5 million outlets
• •
638,000 villages 5 million outlets
•
• • •
• • • •
• •
• •
• •
• • • • • •
• • •
• •
• • ~ 15,000 employees
• • • ~ 2,000 suppliers & associates
• •
• • ~ 70 Manufacturing locations
• •
• • • 40+Depots, 2700+ Distributors
• • • Direct coverage 2 mn+ outlets
Source: Statistics on India, Total Coverage : Nielsen, Census of India 2011
•HUL manufacturing locations (own and outsourced)
Mn = Million 7
8. Portfolio straddling the pyramid
Fabric Cleaning Skin Cleansing Hair Skincare Tooth Paste
Soaps & Detergents: 48% Personal Products: 31%
% contribution of the segment to total revenue (April - December 2011) 8
9. Portfolio straddling the pyramid
Tea Coffee Processed Foods Ice Creams Water
Beverages: 12% Packaged Foods: 6% Others: 3%
% contribution of the segment to total revenue (April - December 2011) 9
10. External Recognition
Consumers Customers
Most responsive supplier of
the year
6 EMVIES in 2011
6th most innovative company eQ* at 89
Value Award by TESCO
globally - Forbes (world class level) India
*Nielsen Equity Management Program Score
Employees Communities
No.1 Employer of choice by
Nielsen Campus track
Golden Peacock Global Award for Corporate
Social Responsibility for the year 2011
Golden Peacock Environment Management
Award for 2011 in the FMCG category
No.1 Employer by Aon Hewitt Best Employer Brand in Asia,
2011
10
12. Large consumption opportunity
FM CG - $ bln
137
62
87
50
28
FY 10 E FY 15 P FY 20 P
Base Case High Case
CAGR of 12% in base case; 17% with high estimates
Source: FMCG roadmap to 2020 – CII Report, 2010 12
13. Head room for growth
Consumption Penetration
€ per capita consumption All India penetration
Skin Care Skin Care
2011 2010 2011 2010
79 79
5.9 5.3 63 65
3.2 2.7 45 48
0.6 0.6
China Indonesia India
Annual DQ Dec
Shampoo
Hair Care
2011 2010
2011 2010
1.7 1.6 1.6 1.5 89 88
79 75
63 60
0.5 0.4
China Indonesia India Annual DQ Dec
Ice cream Oral Care
2011 2010
2011 2010
91 89
80 78
63 60
2.4 2.4
1.2 1.1
0.3 0.3
China Indonesia India
Annual DQ Dec
Data Source: Euromonitor Data Source: IMRB Factbook 13
14. Rising incomes to favor Personal Care and Foods
Demand elasticity Personal Care / Foods explosion
LSM 8+ (new 7.7 x
categories)
4.9 x
LSM 8+
LSM 5-7 3.1 x
LSM 2-4 1.7 x
LSM 1 1x LSM 1 LSM 2-4 LSM 5-7 LSM 8+
0 5000 10000 Laundry, Skin Cleansing Pers Prod Foods
Exp per HH / year (INR)
*HUL Participating Categories; HH: Households *Source : Family Budget Survey, Consumer Panel
14
15. HUL: Uniquely positioned to exploit the opportunity
Portfolio Capabilities
Strong brands across benefits & price points Consumer understanding, supply chain,
go-to-market
Talent Global leverage
No.1 Employer*, diverse talent pool
R&D, brand development, buying
*awarded by Aon Hewitt in 2011 15
17. Clear and compelling strategy
Strategic framework Sustainable Living Plan Our Goals
Consistent Growth
Competitive Growth
Profitable Growth
Responsible Growth
17
18. A business model that works
Virtuous circle of growth
Cost
Profitable Leverage
Volume +
Growth Efficiencies
Cost
Savings
Innovation
A&P/R&D
Focused on execution
19. FY 2011-12: Delivered on goals
Competitive growth Consistent growth Profitable growth
Ahead of market Volume led Margin expansion
18
140 bps ↑
18
17.5%
10
14
8
UVG Price USG Domestic consumer HUL
Market HUL Sales growth EBIT
FMCG growth % HUL FMCG growth %
19
20. Winning Principles
Our first priority is to our consumers,
then customers, employees and
communities. When we fulfill our
responsibilities to them our
shareholders will be rewarded.
23. Better quality products, stronger brands
Tripled blind product wins % Improved brand equity scores
3X
2011
2X
3/4th
of portfolio
2010 holding/gaining *
X
2009
Measured for the top 25 brands; *Exit 2011 Vs second half 2009 23
24. Bigger, better and faster innovations
Covering 60%+ of portfolio
Fair & Lovely Future Tube: Fair & Lovely Facewashes
Aspirational & affordable Lakme Sun expert
Lux relaunch with silk protein
extract
Sunsilk Keratinology
Haircare range for salon treated hair Dove Body lotions with Pepsodent G relaunched
Rin bar relaunch with superior advanced deep care
formulation and packaging complex
Vim relaunched with “100 Dove: Nourishing Oil Care Now more accessible with
Nimbuon ki Shakti” range with Vita Oils Re.1 sachet Clear Relaunched
24
25. Bigger, better and faster innovations
Covering 60%+ of portfolio
0
Soupy Noodles Cup–a–Soup
Kissan range expanded and relaunched Rs.5 pack instant soups
Pureit Marvella RO
Taj Mahal green Teabags Taj Mahal flavoured Teabags
Brooke Bond 3 Roses
relaunched
Bru Gold Bru Exotica Bru Lite
25
28. Lead market development: Hair
More usage More users More benefits
Increasing Consumption in Driving Hair conditioners Serums, Masks, Treatments
Rural for Salon treated hair
28
29. Stepping up front end execution
More stores Better Stores Better served*
310 bps ↑
DISTRIBUTED: 6.5 Mn
Proposition Product
CORE SERVICED : 2 Mn+
Place
Direct Pack
Price 2010 2011
Promotion
* Modern Trade on shelf availability 29
31. Differentiated Supply Chain
Driving benefits across value chain
Live Superior Service.
Delivery Sustainable, Profitable Growth
World class Consumer E2E
service perceived competitive
quality costs
Flawless execution, Safety and Sustainability
31
32. Focus on cash and savings
Step up in cost savings Maximizing ROCE Delivering cash
Savings as a % of Turnover Optimizing investments TWC as a % of turnover
% Contributed by 2010-11 2011-12
52%
Productivity
Capacity Improvement
increase
in 2011
48%
New Capital
Investments
2008-09 2011-12
TWC: Trading working capital; includes debtors, creditors and inventory excludes cash; ROCE: Return on Capital employed 32
33. Driving Return on Marketing Investments
Getting more out of advertising
More ads pre-tested Improvement in Ad preview scores Production and media fees
Up by 50% Up by 800 bps Lower by 900 bps
Persuasion 70%
2010
2010 2011
2011
Awareness
33
34. Driving Return on Marketing Investments
Optimizing promotional spends
More activities evaluated More green activities Higher ROI
Up by > 50% Higher by 1100 bps Up 200 bps
ROI Positive
+
-/- +
TO Growth
2010 2010
2011 2011
-/-
ROI: Return on Investment 34
36. Winning with People: Building a talent powerhouse
# 1 Best employer in India, 2011 No.1 Employer of choice by Nielsen
awarded by Aon Hewitt Campus track
# 1 Dream employer across campuses* High people engagement
108
HUL 65
100
TAS 62
P&G 59
BCG 55
.McKinsey & Co 53
2010 2011
* Survey by Nielsen Indexed Employee Engagement Scores
38. Strengthening Performance culture
Aligned goals Sharper differentiation Reward linked to
performance
Fixed Variable
Standards of Leadership
2006-07
2011-12
Delivery
Performance culture index is up by 14% in 2011
41. Unilever Sustainable Living Plan
India Highlights 2011
30 million people reached with Lifebuoy soap handwashing
programmes in 2010-11
30 million people have gained access to safe drinking water by
using Pureit in-home water purifier, since 2005
Around 60%of our major food and beverage brands – Brooke Bond,
Bru, Knorr, Kissan and Kwality Wall’s – comply with the ‘Healthy
Choice’ guidelines’
Reduced CO2 emissions by 14.7%, water use by 21.5% and
waste by 52.8% in our factories, over 2008 baseline
Improved CO2 efficiency in transportation by 17.8%
60% of tomatoes in Kissan Ketchup are sourced sustainably
41
44. HUL Financial Performance
Rs. Crore 2005 2006 2007 2008-09^ 2009-10 2010-11 2011-12
Net Sales 11,061 12,103 13,675 20,239 17,524 19,381 21,736
Operating Profit 1,471 1,709 1,934 2,845 2,566 2,458 3,073
Operating Profit Margin 13.3 14.1 14.1 14.1 14.6 12.7 14.1
Net Profit 1,408 1,855 1,925 2,496 2,202 2,306 2,691
Earning Per Share (Rs.) 6.4 8.41 8.73 11.46 10.10 10.58 12.46
Net Cash Flow from Operating
1967 1595 1680 2029 3441 1892 2870
Activities
Operating Profit - Profit from Operations Before Other Income, Interest and Exceptional Items 44
45. Financial year 2011-12 – Results
FMCG exports demerged – reported numbers not comparable
Rs Cr HUL (as reported) HUL (ex FMCG exports)
Particulars FY'10-11 FY'11-12 Growth% FY'10-11 FY'11-12 Growth%
Net Sales 19,381 21,736 12% 18,451 21,736 18%
PBITDA 2,678 3,291 23% 2,584 3,291 27%
PBIT 2,458 3,073 25% 2,382 3,073 29%
PBIT margin (%) 12.7% 14.1% 140 bps 12.9% 14.1% 120 bps
PAT bei 2,156 2,592 20% 2,096 2,592 24%
Net Profit 2,306 2,691 17% 2,246 2,691 20%
Domestic Consumer Business grows at 17.5%
EBIT margins up 140 bps
PAT (bei) up 20%
45
46. Performance trends – EPS and DPS
Earnings per Share (Rs.)
14.0
12.0
Dividend per Share (Rs.)
10.0
8.0
10.0
6.0
9.0
4.0 8.0
7.0
2.0
6.0
- 5.0
2008-09
2009-10
2010-11
2011-12
2006
2007
4.0
3.0
2.0
1.0
-
2008-09
2009-10
2010-11
2011-12
2006
2007
2008-09: 15 months period
Calendar year 2007, includes Platinum Jubilee special dividend of Rs.3 per share
47. Share Listing & Ownership
Shareholding pattern
Listing Details
Others
General 4%
Stock Exchange Stock Code Public
14%
Bombay Stock Exchange 500696
National Stock Exchange Hindunilvr FIIs
Uniliver
19%
53%
DII
8% MFs
2%
FII: Foreign Institutional Investors
Status as on 31st March, 2011
48. Corporate Governance
HUL firmly believes in maintaining high standards of
Corporate Governance
To succeed, we believe, requires the highest standards of corporate behaviour towards everyone we
work with, the communities we touch, and the environment on which we have an impact. This is our
road to sustainable, profitable growth and creating long-term value for our shareholders, our people,
and our business partners.
The Board of Directors of the Company represents an optimum mix of professionalism, knowledge and
experience. The total strength of the Board of Directors of the Company is nine Directors, comprising
Non-Executive Chairman, four Executive Directors and four Non-Executive Independent Directors.
“I 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 brotherhood.”
– William Hesketh Lever
For details, refer investor center at:
http://www.hul.co.in/investorrelations/CorporateGovernance/?WT.LHNAV=Corporate_Governance
51. Further information & contact details
More information is available at http://www.hul.co.in/investorrelations/
The IR team can be contacted by
telephone as follows:
+91 22 39832211
Or by e-mail at:
Investor.Relations-hul@unilever.com
