WINNING IN THE INDIA OF TODAY & TOMORROW

CLSAInvestorsForum,HongKong 11Sept2012

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Hindustan Unilever Limited : Winning in India Drivenby yaclearandcompelling p gstrategy gy

Strategic framework Sustainable Living Plan Our Goals

Consistent Growth

Competitive Growth

Profitable Growth

Responsible Growth

WINNING IN THEACTION INDIA OF COMPASS INTO CLSAInvestorsForum,HongKong,11Sept2012 TODAY & TOMORROW Strategyon Course

Compass Into Action : Strategy on Course Stepped pp up pg growthmomentum

Increasing FMCG USG (%)

Consistent UVG (%)

15.0

18
10.0

10 8
5.0

JQ2008

SQ2008

JQ2009

SQ2009

JQ2010

SQ2010

JQ2011

SQ2011

MQ2008

DQ2008

MQ2009

DQ2009

MQ2010

DQ2010

MQ2011

DQ2011

(5.0)

USG: Underlying Sales Growth; UVG: Underlying Volume Growth

MQ2012

JQ2012

FY10

FY11

FY12

0.0

Compass Into Action : Strategy on Course Operating p gMargin g 4q quartersof frecovery y

OperatingMargin(EBIT)%
16.5 15.6 15.0 13.9 12.6 12.1 13.7 13.1 12.7 12.6 14.5 14 3 14.3 13.9 13.3

MQ'09

MQ'10

MQ'11

MQ'12

DQ'09

DQ'10

Benefittedfromlowbase

DQ'11

JQ'09

JQ'10

JQ'11

JQ'12

SQ'09

SQ'10

SQ'11

Compass Into Action : Strategy on Course FY2011 12:Deliveredong goals

C Competitive titi growth th

Ahead of market

C Consistent i t t growth th
Volume led

P fit bl growth Profitable th

Margin expansion

18 18 14 10 8 17.5% 140bps

UVG Market HUL

Price

USG

Domesticconsumer Salesgrowth

HUL EBIT

FMCGgrowth%

HULFMCGgrowth%

India macro-economic environment

NearTerm
GDPGrowth CurrencyDepreciation Inflation Monsoon

MediumLongTerm IndiaGrowthPotential
FMCGSectorGrowth(1217%CAGR) *Source:CIIFMCGRoadmap2020

Opportunitiesfromemergingtrends

Significantheadwinds

Consumerdemanddriversintact

Trends that are shaping India

Winning in India The HUL experience

1. Changing attitudes and rising aspirations

Traditional Address basic necessities

Contemporary p y Experimentative, aware & discerning

2. Growing incomes amidst continued disparity

2004 196mn households

2009 219mn households

2015 251mn households

3 15 178

9 48 162

23 125 104
BOP will remain large New consumers Extending reach

LSM8+ LSM57 LSM14

Affluence will keep rising New categories New benefits

3. The changing landscape of Urban India

Rapid Urbanization Growing at 2.4%

Source:CIAworldfactbook

Hybrid Trade Structure Co-existence of GT & MT

The emerging Urban Poor > 20% of Urban live in slums

Source:Census2001&2011projections

4. Rural whilst evolving will continue to remain large

Sizable Footprint

Rising Income

Diversifying income

Consumptionand uptrading

Majorityof Indiawill continuetolive inRural

>3xincreasein government expenditure*

Significant diversificationin Ruralincome

Stronggrowth inemerging categories

*Overthelast5years Source:NREGAImplementationStatusReport

5. Technology creating a wave of change

and they come with a set of opportunities and challenges

Trends
Changing attitudes and rising aspirations

Implications
Explosion of choice Emerging segments of future

Growing incomes amidst continued disparity

Opportunity across the pyramid Headroom for growth

The changing landscape of Urban India

Managing a hybrid trade structure

Rural whilst evolving will continue to remain large

Pressing need for sustainable practices

Technology creating a wave of change

Newer ways of engaging consumers

Trends that are shaping India

Winning in India The HUL experience

A strategy focussed on delighting our consumers

BEHA AVIOURS S

We focus on consumers and customers with a bias for action

Our first priority is to our consumers, then customers, employees and communities. communities When we fulfil our responsibilities to
them, our shareholders will be rewarded. We will win through a growth mentality and a positive approach to all our stakeholders, based on clear accountability and bias for action

Embedding consumer and customer centricity

Consumer
Blind Product Win

Customer
Credo

Consumer & Customer License

Consumer Shoes Popeye CoIns

Lever Care

Our approach to Winning

Our approach to Winning

Portfolio which straddles the pyramid

Premium

BottomofPyramid

Better quality products, stronger brands

T i l d blind Tripled bli d product d t wins i %

I Improved d brand b d equity i scores

3X

2011

2X

3/4th
2010
of portfolio holding/gaining *

2009

Measured for the top 25 brands; *Exit 2011 Vs second half 2009

Stepped up level of innovation Covering g60%+of fp portfolio f inthelastyear y

Leading market development SuccessfuldeploymentinSkinandHair

More usage More users More benefits

Building capabilities to win in Beauty

ReshapingthePortfolio

PointofPurchaseExperience

EngagingwithConsumers

Leveraging the strength of brands

Across Geographies g p

Across Categories

Driving premiumization

SKINCLEANSING

LAUNDRY

SKINCARE(FACE)

PREMIUM

Building segments of future

Facewashes
Growth

Fabric Conditioners
Growth

50%

30%

Hair Conditioners
Growth

Teabags
Growth

30%

40%

Growth numbers are market growths (rounded off) for 2011

Connecting with the evolving Indian

Digital Readiness

Engagement based communication

Mobile,Social search,gaming and dDTH

Consumer insights, analytics, l i ROI

Buildconsumer centric platforms l f

Newer ways of engaging consumers Integrated g videop plussocialnetworking g

1st everFMCGcampaignfrom IndiatoentertheFacebook Studiohalloffame

3.3lakhschannelviews 126subscriptions 60videos

Driving innovative new age communication Mobileactivation

Our approach to Winning

Stepping up front end execution

Morestores

BetterStores

Betterserved*
310bps

DISTRIBUTED:

6.5 Mn
Proposition

Product

CORE SERVICED

: 2 Mn+
Place

Direct
Price

Pack

2010
Promotion

2011

* Modern Trade on shelf availability

Winning in the Channel of Tomorrow : Modern Trade

WorldClassService

Growingcontribution

StrengthenedPartnerships

contribution

growth

No.1 N 1 Supplier S li of f Choice Ch i eQ^ scores highest in industry

201011

201112

AwardedSupplieroftheYearfrom WalMart,Tesco,Metro&Hypercity

Winning in the Geography of Tomorrow : Gateway to Rural

ProjectShakti h k Expandingpresence

Khushiyon h h Ki Doli l Increasingconsumer awareness

Project P j Express E Leveragingpartnerships

45,000 Shaktiammas 30,000 Shaktimaans 100,000 Villages

70,000 Villages 25mln Consumers 400,000 Retailers

HUL TTSL Alliance >20,000 marketsacrossIndia Rolledoutin4states,4moreWIP

Building differentiated capabilities to win in the market MumbaiCustomerInsight g andInnovationCentre(CiiC) ( )

1st CiiC for Traditional Trade Building competitive edge through Customer Collaboration Enabled by Superior Shopper Understanding and Leading Edge Technology

Our approach to Winning

Deploying Segmented Business Models

Driving savings and leverage

Higher Savings

Indexed CEPs 130 100 110 Indexed Overheads as % of turnover 100 95

200910

Operating Leverage i

89
201011 201112

200910

201011

201112

CEPs - Cost effectiveness programmes

Driving Return on Marketing Investments (ROMI) Getting spends gmoreoutof fadvertising g&promotional p p
Improvement in Ad preview scores
Up by 800 bps

Higher ROI
Up 200 bps

70%
Persuasion

-// -/-

ROI Positive

+
+
TO Growth

Awareness

Production and media fees

Lower by 900 bps

More green activities

Higher by 1100 bps

2010

2011

2010

2011

Our approach to Winning

Building a talent powerhouse

# 1 Employer of choice by Nielsen Campus track

# 1 Best employer in India, 2011 awarded d db by A Aon H Hewitt itt

# 1 Dream employer across campuses Survey by Nielsen

Strengthening Performance culture

Aligned goals

Sharper differentiation

R Reward d li linked k dt to performance

Fixed Variable

Standardsof fLeadership

200607 Delivery

201112

Performance culture index is up by 14% in 2011

Engaged to win

Step up in employee engagement scores

Near Nil man days lost

2009

2010

2011

preceding 5year average

2009

2010

2011

Engagement scores for WL2+

At the heart of our strategy is doing business responsibly Sustainable Susta ab e Living g Plan a with t ambitious a b t ous goals goa s

And we are making steady progress

30 million people touched by Lifebuoy handwashing programs in 2010-11 30 million people have gained access to safe drinking water through Pureit since 2005 ~60% of our major food and beverage brands comply with the Healthy Choice C o ce guidelines g e e Reduced CO2 emissions by 14.7%, water use by 21.5%, waste by 52.8%* Improved CO2 efficiency by 17.8% in transportation p are sourced sustainably y 60% of tomatoes in Kissan Ketchup

*in our factories, over 2008 baseline

WINNING IN THE INDIA OF TODAY & TOMORROW

CLSAInvestors Investors Forum, Forum HongKong 11Sept2012