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7/29/2019 winning hul

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Investor Seminar 2011

Winning in D&E Markets

Harish Manwani


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Agenda

Unilever 2010 D&E Opportunity & Trends

Unilever in D&E D&E Ambition

D&E Where we will play

How we will win

Summary 2


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Strong Underlying Sales Growth

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Delivered Against our Priorities

4


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Broad Based Volume Growth Led by D&E

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Agenda




How we will win

Summary 6


7/50Source: Unilever Estimates from Globegro

D&E

DEV

94% 72%

750 million $ 23 Trillion

Share of populationgrowth

Share of incrementalconsumer expenditure

D&E : Big opportunity

DEVELOPED

D&E

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Emerging Asia will be the largest market by 2020

Consumer Spending 2020($ tn @ PPP exchange rates)

Source: Unilever Estimates from Globegro

NA - $15.2

WE- $9.6

SA - $5.6

ANZ & NEA- $4.3

AMET - $6.5

CEE- $4.4

ASIA (ex ANZ & NEA) - $19.8

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Source: SES Report

NewProfessionalWomen

The NewRich

Hygienefor Urban

Functionalitywith lessWater

Emerging consumer groups Need for functionality

RapidDigitisation

Connectivity

Sustainability

D&E : Emerging trends

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Agenda




How we will win

Summary 10


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D&E: Consistent growth with 9% CAGR

52%of Unilever

20%of Unilever

9% CAGR

1990 2010

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D&E: Profitable growth

D&E D&E excl. Russia and China

Unilever average

Underlying operating margin% 2010

12At 2010 rates.


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13

2007 2008 2009 2010

Turnover (bn)

Continued Strong Performance in D&E

10% CAGR

Q1'10 Q2'11

Turnover (bn)

At constant 2010 average rates.

USG (%)9.9

7.3


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We have the best footprint in D&E

52%

15% 25% 35% 45% 55%

Source: Annual Report & Accounts, analysts estimates, Unilever estimates

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We compete effectively both withinternational and local competitors

Source: Nielsen/IRI MAT (only for markets/categories UL competes & tracks), Competitor Intelligence analysis

OtherMultinationals34%

Unilever30%

Local36%

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Agenda




How we will win

Summary 17


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50%70%

Unilever Ambition : Accelerate D&E

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Agenda




How we will win

Summary 19


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small

large

largesize of consumer expenditure in 2010(PPP exchange rates)

growth

ofconsumere

xpenditure2010-20

China

India

next 13BRIC bubble size refers to2020 population

Nascent market cluster( Central Africa + Central Asia )

Brazil

Russia

Mexico

Indonesia

Turkey

Argentina

Poland

South Africa

PhilippinesThailand

Pakistan

Egypt

Vietnam

Nascentmarkets

Bangladesh

Nigeria

D&E Key Markets: Follow the money and people

Source: Unilever Estimates from Globegro20


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small

large

large

BRIC

STRONGHOLDS

NASCENT

IndiaBrazil

Russia China

Mexico

Poland

Turkey

Nigeria

Egypt

IndonesiaThailandPakistan

Philippines

Vietnam

Bangladesh South Africa

Argentina

market size 2009

marketshare

bubble size refers to current turnover

D&E: Unilever in key markets

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Source: Unilever internal data, based on 15 countries in D&E

160 brand roll out opportunities

size of prize 2bn

Opportunity for brand portfolio deployment

0%

20%

40%

60%

80%

100%

Dove

R

exona

Clear

orr

World

Lipton

rnational

Lux

Sunsilk

Signal

Closeup

irtIs

Good

Axe

Ponds

Heart

Dom

estos

R

adiant

Lifebuoy

ligh

tHHC

Comfort

Family

Goo

dness C

if

thly

Heart

Surf

Im

pulse

TIGI

Present

D&E Brand Presence %

Not present

22


23/50

Brands into white spaces: Recent launches

Magnum - Indonesia

Cif Asia Vaseline - PhilippinesClear Asia & AMET

Dove Hair - China23Kissan - India


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Be Everywhere 700 Million consumers

Potential 1.5 bn opportunity

Nascent Markets: Accelerate geography fill

Source: Unilever internal estimates

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Summary : Key jobs to be done in D&E

Sustain strong leadership positions in India and Brazil

Build rapid scale in China and Russia

Lead full portfolio deployment in all strongholds

Accelerate geography fill in nascent markets

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Agenda

Unilever 2010

D&E Opportunity & Trends



How we will win

Summary 26


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market

development

70-80%

market

share gain

10-20%

white

space

10% +

Sources of Growth

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Straddle the pyramid in key

categories

Building competitive advantage

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At the bottom

Laundry India

At the top

Masstige Beauty

Straddle the pyramid

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categories

Lead market development


30


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Have lots

Haves

Have nots

billions of people

0.9

2.0

2.9

2.0

2.7

1.9

More benefits

More usage

More users

2010 2020

Source: Unilever estimates Globegro, updated upon LSM 2.0 baseline studies.

D&E : Huge market development opportunity

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More Users

More Usage

More Benefits

10 Step Market

Development Wheel32

Our repeatable model


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categories

Lead market development Be an execution powerhouse


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Be an execution powerhouse


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OUTLET UNIVERSE IN D&E: 20 M

4.3 M

OUTLETS WHERE UNILEVER PRODUCTS

ARE DISTRIBUTED: 10.5 M

OPPORTUNITY

INFLUENCED

DIRECT

Be an execution powerhouseMore storesbetter storesbetter served

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35/50

from 1 million (2010) to 5 million (2020)

GT MT

More stores better stores better served

Perfect Stores: D&E ambition

35

i i i h i


36/50

Investing in Customer Insight & Innovation CentresChina, India, Singapore

36


37/50


categories


Deploy low cost business models


37


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125 33 92

From

To

Cost

TargetCost

GrossProfit Price

TargetPrice

TargetGP

117 33 150

Deploy Low Cost Model : Deodorants India

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39/50


categories



Employer of choice


39


40/50

1

2

1

3

Indonesia

Turkey

Brazil

Russia

India

China

Mexico

Pakistan

Argentina

Chile

South Africa

1

1

1

1

1

1

1

Employer Brand FMCG Ranking

Employer of choice continue to build

Vietnam 1Source : Country surveys 40


41/50


categories



Employer of choice Locally relevant, globally efficient

organisation


41

ll l l b ll ffi i i i


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Build globalcapabilities in

D&E

Outstandinglocal insights

Scale-up

innovationresources in D&E

60% +

Locally relevant, globally efficient organisation

42

Gl b l i ti ith l l i i ht


43/50

Global innovations with local insights

Knorr Jelly Bullion - ChinaBroke Bond Tea - India

Knorr Soupy Noodles - India Ponds Asia 43

Focusing Innovation Resources in D&E


44/50

Focusing Innovation Resources in D&E

BANGALORE

SHANGHAI

BANGKOK

ISTANBUL

DURBAN

SAO PAULO

MEXICO CITY

BUENOS ARIES

INNOVATION CENTRES

GLOBAL R&D CENTRES

MUMBAI

42% of R&D

50% of Brand Development

DUBAI

44

B ildi titi d t


45/50


categories




organisation


45

Activate

UnileverBran

d

&U

SLP


46/50

USLP : Three Big Goals by 2020

SOURCE

100%OF AGRICULTURALRAW MATERIALS

SUSTAINABLY

HALVEENVIRONMENTAL

FOOTPRINT OFOUR PRODUCTS

HELP

1 BILLIONPEOPLE IMPROVE

THEIR HEALTH& WELLBEING

46

B ildi titi d t


47/50


categories




organisation


47

Activate

UnileverBran

d

&U

SLP

A d


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Agenda

Unilever 2010

D&E Opportunity & Trends


D&E Where we will play How we will win

Summary48

Wi i i D&E k t S


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Winning in D&E markets - Summary

D&E is a huge opportunity

We are strong and fit to compete.

Our ambition is to consistently outpace market growth

Lead market development and Grow share steadily

Key actions:

BRICs are a must win

Deploy full portfolio in Strongholds; early mover in nascent markets

Be an execution powerhouse

Substantially scale-up innovation and leadership capabilities in D&E

Lead the sustainability agenda (USLP) everywhere

49

D&E: 70% of Unilever


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0%

20%

40%

60%

80%

100%

1946 1956 1966 1976 1986 1998 2004 2008 2009 2015 2020

D&E: 70% of Unilever

Developed Markets

D&E Markets