#1Hindustan Unilever Limited Investor Presentation February, 2010#2Safe 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.#3Agenda Our Vision Market Context Strategy & Execution Current Performance#4Our Vision To earn the love and respect of India, by making a real difference to every Indian.#5Agenda Our Vision Market Context Strategy & Execution Current Performance#6Market Context: DQ'09 FMCG market continues to grow, albeit at a slower pace • Lower pricing component due to Laundry price reductions ● Downtrading in Laundry and Tea • High food inflation Commodity costs firming up Intensifying competitive environment • Step up in media spends across categories Several new brand and category entries But India opportunity remains Strong#7Market Growth FMCG O 20.8 18.9 18.6 18.1 17.1 16.1 14.9 Value Growth 9 MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 DQ09 . Market continues to grow Value growth tempered by price reductions Volume continues to grow albeit at slower pace. Source AC Nielsen- DQ market growth#8Market Growth - Categories 26.7 26.2 24.2 23.4 17.1 17.5 17.9 13.7 16.3 16.0 16.4 14.5 13.0 10.1 12.1 10.6 6.8 7.4 2.2 2.5 3.0 2.2 3.0 1.3 0.8 (0.8) (2.2) (6.3) (4.7) (0.2) 11 5.4 3.2 MQ08 JQ08 $Q08 D008 MQ09 JQ09 SQ09 DQ09 MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 DQ09 Laundry Soaps 24.9 24.7 22.8 19.6 19.1 17.6 16.0 16.4 14.1 13.1 14.2 13.2 16.1 12.7 11.3 11.8 11.4 10.8 10.0 12.5 10.5 8.8 7.5 7.0 7.3 5.7 7.71 2.1 1.0 (4.5) MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 DQ09 MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 DQ09 Hair (Shampoo + Conditioners) Source AC Nielsen- DQ market growth Tea Value Growth Volume Growth M#9Downtrading in Laundry & Tea 70 40 8285432 80 MASS POPULAR PREMIUM 70 73 72 72 71 70 71 71 69 70 70 72 74 60 +61 61 61 60 59 60 59 60 61 62 62 63 62 60 50 50 500 bps shift 40 300 bps shift 30 30 20 20 10 0 10 MQ07 SQ07 MQ08 SQ08 MQ09 SQ09 Mass Bars 0 -Mass MQ07 JQ07 SQ07 DQ07 MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 Oct'09 Nov'09 Popular Premium Laundry - Downtrading continues Mass powders Source AC Nielsen- DQ market growth 53 -300 bps up in a year 48 +47 47 46 46 46 44 44 44 44 44 43 43 43 38 33 33 28 23 18 13 8 MQ07 JQ07 SQ07 DQ07 MQ08 JQ08 SQ08 DQ08 MQ09 JQ09 SQ09 DQ09 Tea - Witnesses Downtrading 50#10Intensified Competitive Environment 140 120 Indexed GRP Trend - FMCG 116 118 110 105 100 100 80 MQ08 JQ08 SQ08 DQ08 FH'09 SH '09 Step up in media investment within FMCG - several entries in new categories &segments 136#11Changing Income Patterns 2003 2013 181 mn households 231 mn households 3 Affluent 11 46 Aspirers 124 Affluent Top End Business Changing attitudes Aspirers Trebling Credit Culture 131 Strivers 96 Strivers B.O.P Opportunity The shape of India is changing... from a pyramid to a diamond a diam Source: National Council of Agriculture & Economic Research#12The Consumption Opportunity Per Capita Consumption (US $ ) 1.4 Detergents 2.2 1.9 0.3 Shampoos 1.1 1 India China Indonesia India China Indonesia 0.2 Ice-Cream 2.8 India Source: Euromonitor, 2006 0.9 0.3 Skin Care 3.2 0.8 China Indonesia India China Indonesia donesia#13Agenda Our Vision Market Context Strategy & Execution Current Performance#14Strategy & Execution ● Leverage brand portfolio and consumer understanding by • Straddling the pyramid & deploying full portfolio • Driving consumption & penetration opportunity Winning with consumers, channels, segments/markets of tomorrow Build markets and capabilities for the future . Leverage Unilever scale and know how • Drive increased execution rigour • Step-up in cost efficiency initiatives Integrate economic, environment & social objectives with business agenda#15Key Interventions • Improved competitiveness of mass laundry • Active deployment of full portfolio in Soaps • Entire portfolio relaunched Continue to drive Personal Products and Foods • Enhanced brand investment across the portfolio • Step-up in cost saving programmes and better operating leverage Increased focus on in-market execution 50#16Strategy & Execution ● Leverage brand portfolio and consumer understanding by ● • Straddling the pyramid & deploying full portfolio • Driving consumption & penetration opportunity Winning with consumers, channels, segments/markets of tomorrow • Build markets and capabilities for the future ● Leverage Unilever scale and know how Drive increased execution rigour Step-up in cost efficiency initiatives . Integrate economic, environment & social objectives with business agenda#17Portfolio Straddling the Pyramid Fabric Personal Shampoo Skin Wash Wash Tooth Paste Affluent Surf Surf excel excel Liril 2000 Pears Dove Can Be Dove CLEAR Aspiring RID Hamam SUNSILK Closeup TH MANAL Tea Coffee BAL Bu Lipton Pepsodent Red Cabel BRU BRU Closeup Taaza Pepsodent SUNSILK 10/ Striving Wheel Active by-Wash Lifebuoy Niew Clinic Plus Daily Came Breeze CLEAR Strong brands across categories addressing needs of every consumer Identifying the opportunity and filling it is important BRU#18Restoring Competitiveness in Laundry Time to Shine Affluent Surf excel ckwash TOP LOAD • Price Correction on Bars 1kg RIN Surf excel matic RID Surf excel Sunlight . • • Aggressive Consumer Promotion Drive Machine Wash - Surf Matic Adjusting relative price Aspiring Whitel Striving Wheel Active New Active Wheel Bronal grail did appra site eligebienoki Wheel मेहनत से आजादी • Aggressive Consumer Promotion • Price Correction on Wheel bars & powders • Competitive Brand Investment · Improved Product Quality Laundry - Straddling the Pyramid#19Strengthening Mass Laundry Price reductions on Powders and Bars SKU Sep 08 Dec 08 Mar'09 Sep'09 Dec'09 Rin Adv Bar 200 Gms SOV % Rs 9 Rs 14 Rs 14 Rs 12 Rs 10 Wheel Blue Powder Rs 10/- 275 gms Wheel Blue Bar Rs 10/- 200 gms 250 gms 200 gms 200 gms 275 gms 350 gms 350 gms 3.4 235 gms 235 gms Improved product quality both in Bars and Powders Jun'09 Jul'09 Aug '09 Sep'09 Oct'09 Nov'09 → Has a great fragrance ― Cleans clothes thoroughly More enjoyable apprach to laundry Wheel Share of endorsement (IMRB) - JQ'09 Brand investments - Wheel 7.7 SQ'09 15.1 DQ'09 Value through consumer promotions ऐक्टिव व्हील पाउडर के रु.10/- के पैक में अब पाएं 25 ग्रा. ज़्यादा मुफ्त रु. 5/-* कीमत का लाइफबॉय, 1 कि.ग्रा. व्हील पाउडर के साथ 25g Extra Active Wheel FREEL Activer Wheel#20Deploy the full Portfolio in Soaps LUX Gold Coin offer Buy Lux and you could find a gold coin inside. מון LUX W face test Pears Innocent skin WASH HANDS WITH SOAP TO PREVENT SWINE FLU Hamam with neem, tulsi & aloe ve Dove Liril 2000 soft aloe vera with lemon Pesh hai naya Breeze International Jo bana hai Paris ke behtarin chuninda scents se. Aab scent ka kamal sabun mein. cream beauty bathing bar moisturising cream Breze 45 gm 5 90 gm x 3 R30 90 gm x-4 40 120 gm x 4 Rs.50 Rexona Brzze Breeze Breeze Breeze Breeze Portfolio Rejuvenation He pean porno per C Storyteller "I believe in Dove." They gave us half their faces belove#21Relaunching Lux with new proposition Create intrigue about new Lux PR: 10 second teasers across 45 channels LUX LUX AISHWARYA RAI BACHCHAN, Ator FODAY TOP NEWS TODAY exclusive footage for new Lux coming up' Lead TV channels popular anchors creating intrigue 'What is new about new Lux?' Build awareness and engage Get consumers to try Lux. TVC launch through reality show integration Unveil by TV stars Impactful visibility in 50,000 outlets LUX Coming Up LUX Gold Coin offer Buy Lux and you could find a gold coin inside. LUX PR Amplification 66 print publication Free air time. Print innovations: simultaneous disruptive campaign across 21 national dailies Consumer Promotion of gold coins in a soap THE TIMES OF INDIA GOLD PRICES CRASH. GET 3gms FOR ONLY RS.18. Sampling - consumers experiencing the new Lux through a joint property built with the biggest media house in North India#22Rejuvenating Breeze International Proposition & Pack Pesh hai naya Breeze International Jo bana hai Paris ke behtarin chuninda scents se. Aab scent ka kamal sabun mein. Breeze Breeze Rs. 5 Product •Enhanced TFM •Improved Perfumes International FRUIT BURST INAGRANCE 45gm 90 gm x 3 90 gm x 4 Rs 30 Rs.40 120 gm x 4 Rs. 50 Breeze Breeze Breeze Breeze Breeze Promotion •Aggressive Sale Plan International Breeze Price •Benchmarked with market International Breeze T 50% International DIVINE SANDAL FACHANCE#23Driving Premium Cleansing: Dove To build Superiority face test On pack Innovations Dove Storyteller Inviting women to take the Face Test Experience/ Amplification TVC and Visibility to become complete believers They give us half the m Dove Real Women Testimonial Digital: Starting a debate on PR Editorial real beauty "I believe in Dove." Print Innovations Meet the new believers of Dove. More than 2% of Market Share Building on Unilever Global experience Rahka Sh Thousands gave Dove holl their faces. Then they gave Dove a perfect score Dove Home to Home: Litmus Test in Households#24Driving consumption: FAL variants & uptrading Fair & Lovely Fair & Lovely multivitamin™ WINTER FAIRNESS CREAM with ACTIVE MOISTURIZERS FAIRNESS MULTIVITAMIN Fair & Lovely multivitamin WINTER FAIRNESS multivitamin WINTER FAIRNESS CREAM with ACTIVE MOISTURIZERS and FARNESHUNTAINS" CREAM ACTIVE MOISTURIZERS Successful Launch – Fair & Lovely Winter Fairness Cream - Fair & lovely multivitamin Fair & Lovely Improved Mix - Consumers uptrading from sachet to Tube V#25Strategy & Execution . Leverage brand portfolio and consumer understanding by • Straddling the pyramid & deploying full portfolio • Driving consumption & penetration opportunity Winning with consumers, channels, segments/markets of tomorrow • Build markets and capabilities for the future . Leverage Unilever scale and know how . Drive increased execution rigour ● Step-up in cost efficiency initiatives . Integrate economic, environment & social objectives with business agenda#26Building new segments: Vaseline Healthy White Product is Hero FACE Attack current habit Is your body as fair as your face Aligned Promo Strategy TAKE PATIOPATE COMMUNITY, what's your body vibe? PLAY game Educational Campaign seline celine seline ine line aselin UPLOAD YOUR PHOTO FEM THE MOST AMAZING Skin Get lucky tonight Drive Experience Amazing skin on - ground activation Aligned Promo Strategy FEMINA line Vaseline healthy when 95% ADVERTORIAL The Amazing skin revealations We all want perfect skin. But what actly is perfect skin? Anushka Patodia dout with the pof attempts to find o The Wengkurvy Are you one EXPERT of them? 100 the hint of TTEA O pon La BUYS Target Early Adopters: Youth thru digital Chaw Hy C Media for Habit change: Impact#27Building Dove across Categories & segments Win first in Markets of future: Modern Trade Dove Hair: Launched May 2007 Now No.1 in Modern Trade Dove T expert vice products interactive others & ponce try dove, try something new. Are worries about hair fall stopping you from trying new things with your hair? Petal Therapy protect amage to educate you can try the new karty and has mat you alway register now 2 TRY DOVE. TRY SOMETHING NEW the DFT Expert Get Cick here arge Click Adopt new mediums Dove THERAPY All India Urban Dove Funny isn't it, the Celebrating anniversary of beautiful hair Meet the Hal celebrities The Dove keeps them beautiful. DOVE BAR FREE WITH ve DOVE SHAMPOO. Base Metro Modern Store 30 Consistently make her feel Beautiful 16 14 12 10 8 15.2 25 20 11.6 20 15 8.8 7.2 60 10 5 5.4 5.3 4 4.2 5 4.7 2 0 0 Yr 2008 Yr 2009 Yr 2007 25.1 Yr 2008 Yr 2009 Yr 2007 Dove Hair Market Share % (Value) Dove Hair Conditioner Market Share % (Value)#28Segments of tomorrow - Hair Conditioners 3x 3x 3x Dove Dove Dove DAILY DRY ERAPY SUNSILK Permanent branding and shelf presence at POS Canoe UNSILK new 16 BREAKAGE SUNSILK SUNSILK thick Jorg Conditioners Market 40 in India Growing Fast with huge potential Sachets to generate trials "SUNSILK कंडिशनर सै SUNSILK कंडिशनर से Impactful execution across mediums edna.sunday Daily News & Analysis Reduces hair fall from 100 to 2" Sports sunday CPU and a CP e000 brad ND The missiles boomerang SUOSI SUNSILK nsi SURS SUNSILK Conditioner SUNSILK Any unas Condom unyon Conditioner reduces hair fall from a HUL Shares and Market Growth% 45 36.3 35 41.8 HUL Shares Market Growth% 28.4 40 32.2 35 30 32.9 3281 30 27.4 25.1 25 25 25 22.2 20 20 18.7 15 17.2 15 10 MQ'08 JQ'08 SQ'08 DQ'08 MQ'09 JQ'09 SQ'09 DQ'09 Source: AC Nielsen Share of Hair Conditioners in Hair Care India is still approx 3% only 21.10% 18.40% 14.40% Who wanted to 10.60% be a millionair 9.40% 9.30% → Philippines China 23.30% 15.70% 1997 2000 2004 2008 Source: Euromonitor 10 5 0#29Segments of tomorrow - Surface Cleaners Cif Surface Cleaner current market size at $ 63 mln Growing at CAGR of 14.1% with accelerating growth rate 2.2 0.9 Per Capita Consumption US$ Surface Cleaner Market (2008) 0.5 Cif Cif Cream LEMON partides cream micro particles Removes toughest dirt with minimum effort Tough CLEANING minimum EFFORT Tough CLEANING minimum EFFORT Cif Cream mowe Extensive TV plan Extensive sampling Philippines Thailand China Print to drive engagement and education 360° High In-Store visibility Deployment Large Scale demos plan Modern trade prioritization Digital and Sms plans All India Presence 52,000 stores 0.01 India Source: Euromonitor#30Building New Markets: Pure-it Product Superiority: Unchallenged pure 1 CRORE SAFETY CHALLENGE Innovative Offerings If you can find any other in-home water purifier with the 3 essential safety features of Pureit, you can win Rs. 1 crore. Just make sure it: set by EPA, the US government agency 1) Meets USA's tough Germkill criteria 2) Has advanced Auto Switch-Off facility that ensure you never drink unsafe water 3) Needs no electricity, no running water to provide as sale as boiled water all the time Pure - it Auto Fill Broadens Portfolio UNCLAIMED Foc free-hopea 922235 Introducing a Pureit that fills itself Get 100% safe water' with 0% effort punca New Now get as safe as boiled water without the hassle of having to fill it up. Introducing New Pureit Autofill-fully loaded with 3 special features. Jandre sensors 18 tres capacity Manual backup that start, fill and store water automatically without any manual intervention. that ensures 18 liters of water storage even without running tap water that allows you to fill water manually when you don't have running tap water. Hindestan Unileve pure Auto-fill As Safe As Boiled Water" Rs. 2000 only Extension of Reach: Retail Channel 14500 outlets 40 -50% revenue Pure - it Compact Entry in Discount Segment#31Market /Category Development: Soups & Savoury Knorr Soups Re-launched with Improved Taste and World Class Packaging NEW CLASSIC Knorr Thick 100% Real Wegetables NO ADDED MSG Tomato Soup जॉगर्स पार्क JOGGERS PARK थुनियन पार्क UNION PARK Tastier Knorr MUMBAI POLIC POLKE STATION KHAR Unique claim: 100% real vegetables which has high resonance with Consumers & is brought alive in TVC Packaging a benchmark for global Knorr Packaging - Knorr - Meal Maker Opportunity ARROT FEEL 42. Knorr Knorr Knorr Ready to Cook Hyderabadi Biryani Ready to Cook Paneer Butter Masala Knorr Fly la Cook Punjabi Chana Masala Ready to Cook Punjab Chicken Curry#32Building new Capabilities - Brilliant Activation AXE 'Call Me' interactive campaign AXE call me 09987 333 333 AXE AXE AXE BOOST DEODORANT BO AXE AXE Generated over 3 million unique calls >2% market share gain in Non Metros AXE THE AXE EFFECT 89% WOMEN 70% CONFESS JUDGE A GUY WOMEN by on the mobile phone. way the he talks to them THE AXE RESEARCH LAB FOR A DEEPER UNDERSTANDING OF WOMEN k every r time they feel like • loving care, they call up a guy. bers AXE RESEARCH LAB DEEPER UNDERSTANDING OF WOMEN Launch of Axe Boost Accelerated Growth achieved after campaign IN OUR QUEST TO UNDERSTAND WOMEN, PHONES AND RELATIONSHIPS WE SURVEYED 964 WOMEN ACROSS CITIES IN INDIA te. THE AXE RESEARCH LAB FOR A DEEPER UNDERSTANDING OF WOMEN IO WOMEN, PHONES AND RELATIONSHIPS, WE SURVEYED WOMEN ACROSS CITER IN INDIA at when w they will call up a guy. IN OUR QUEST TO UNDERSTAND WOMEN, PHONES AND RELATIONSHIPS, WE SURVEYED WOMEN ACROSS CITES IN INDIA THE AXE RESEARCH LAB FOR A DEEPER UNDERSTANDING OF WOMEN IN OUR QUEST TO UNDERSTAND WOMEN, PHONES AND RELATIONSHIPS WE SURVEYED 994 WOMEN ACRO CITIES IN INDIA 4AH Wh CALL ME#33Expanding footprint: Out of Home capabilities SWIRLS KWALITY WALLY SWIRL'S The SWI Expe SWIRL'S - a successful concept in Europe 85 parlours SWIRLS KWALITY WALL'S SWIRL'S JUL 10 2 SWIRL'S ש SIP SLURP LICK. CHEW. SWIRL'S SWIRL'S Various shop and product formats FRESH Fresh Ingredients CHOICE Create Your Own . THEATER & FUN: Specially for You No. of Swirl Parlours 40 20 2007 2008 1.2 million consumer experience moments were created in '09 85 Current#34Strengthening capabilities: Winning at Point of Sale RID ADVANI FO DVANCED RID Ri ADVANCED Winning In MT Power of Analytics 2004 103 Winning In GT Power of One Unilever Shopper Insights People iQ GTM (U) Channel Programs Lean & Agile Organization GTM (R)#35Creating a million perfect stores... 200 Creation of Perfect Stores + Mass Customization Intelligent Information Systems • • • Business insights from execution and sales data to seamlessly support business decisions To enable superior execution and planning of events Appropriate product assortment to maximize sales Already in pilot... @#36Leveraging Unilever: Global R&D Centres Fabric Wash, Hair Care, Deos, Oral Care, Surface Cleaners, etc. Skin Care, Deos, Shampoos, etc. Beverages, Processed Foods, etc. Vlaardingen, Colworth, NL Port Sunlight, UK Trumbull, US UK Fabric Wash, Beverages, Processd Foods, etc. Shanghai, China Bangalore India " Skin Care, Fabric Wash, Beverages, Ice Creams, Processed Foods, Water etc. Shampoos, Skin Care, Ice Creams, Beverages, Processed Foods, etc.#37Unilever Research and Development Strengths Spray Technology Deodorants Skin Mildness and Moisturizing Product Processing e.g. Ice Cream Hair Technology Structured Science of Tea Oils and Emulsions#38Leveraging Global Technology: Pond's White Beauty Product is Hero ALL YOU NEED TO KNOW ABOUT SPOTLESS SKIN 69% PONDS 71% SPOT-LESS FAIRNESS IN JUST DAYS POND'S Reframe vocabulary: Spots removal too! Aligned Promo Strategy R ΟΙ POND'S white beauty Bowl Him Over With Spot-less Fairness LIVE 26 Target top end: Heavy Niche Right Size / Right Value POND'S POND'S Mite beauty as Malfole UV protecties white beauty Delighting Affordable formats: Mini Jar + Sachet Aligned Promo Strategy FIMIN spotlight POND'S WHITE BEAUTY spot-less skin survey inside POND'S REDUCES AND LIGHTING SON WOVES FRONT SYGEND बेस्ट ITR Media for expertise: Impact thru Non TV Non T✓#39Strategy & Execution • Leverage brand portfolio and consumer understanding by • Straddling the pyramid & deploying full portfolio • Driving consumption & penetration opportunity Winning with consumers, channels, segments/markets of tomorrow Build markets and capabilities for the future . Leverage Unilever scale and know how ● Drive increased execution rigour • Step-up in cost efficiency initiatives . Integrate economic, environment & social objectives with business agenda#40115 DOH Inventory Order Servicing Enhancing execution capability 1500 100 50 50 Field Execution All India 100 175 50 50 25 25 0 0 2008 Sep '09 Dec'08 Jun'09 Dec'09 I Days on Hand (Finished Goods) Field Execution Scores Indexed Chart (vs Dec 2008) 95 95 75 Dec'09 Customer Order Servicing Enhanced Customer Service with higher cash delivery#41• Step up in cost efficiencies Indexed CEPS 100 100 144 181 226 2005 2006 2007 2008 2009 Tight focus on discretionary costs • Sustained Improvement in Cost Savings Programme 100 95.77 Indexed Indirects 2007 2008 84.5 2009 20#42To Recap..... Key Interventions • Improved competitiveness of mass laundry • Active deployment of full portfolio in Soaps • • Entire portfolio relaunched Continue to drive Personal Products and Foods Enhanced brand investment across the portfolio • Step-up in cost saving programmes and better operating leverage Increased focus on in-market execution 50#43DQ Volume Growth > Market Value Market shares expected to improve going forward Market Leader 35.8 45.8 56.4 48.6 45.3 ALL 10.5 10.1 7.3 6 Fabric Personal Dishwash Wash Wash Strong No. 2 66.7 50.2 41.42.8 30.9 31.2 27.2 23.8 24 22.1 21.9 11.5 4.7 Skin Shampoo Deos Packet Jams Toothpaste Coffee Tea Ketchups HUL - Market Share (%) Competition Market Share (%) Reversing recent share decline: Top Priority Source A.C Nielsen YTD 2009 Value shares -#44Strategy & Execution • . . Leverage brand portfolio and consumer understanding by • Straddling the pyramid & deploying full portfolio • Driving consumption & penetration opportunity Winning with consumers, channels, segments/markets of tomorrow • Build markets and capabilities for the future . Leverage Unilever scale and know how Drive increased execution rigour Step-up in cost efficiency initiatives ● Integrate economic, environment & social objectives with business agenda#45Embedding sustainability Prosperity (Economic) People (Social) Planet (Environment) Eco efficiency Enhance livelihoods Health (Hygeine and Nutrition) (Water, GHG, Packaging) Who :Brands will lead the effort KACY LITERACY Where: Around our units of operation How: Through Partnerships UNTOUCHED#46Corporate Responsibility: Our Approach Grow Markets Strategy in a responsible Manner Ensure Sustainable practices @HUL Actions Responsible leadership for a sustainable tomorrow Our Brands Our People Our Processes Grow Markets Societal Outcome and Fuel Innovations legitimacy and Competitive edge Building Reputation for HUL#47Corporate Responsibility: Key Actions in 2009 Strategic Thrusts Brands People Processes Key Actions ■ HUL Foundation set up ■ 12 tea estates identified; initiated sustainable tomato sourcing ■ Volunteering of 100,000+ hrs (2 X 2008) ■ Contributed towards disaster relief ■ Bihar floods, 26/11 trust, AP/Karnataka floods ■ Contribution from Employees ▪ Reduced GHG by 28% (vs 2004 C#48Agenda Our Vision Market Context Strategy & Execution Current Performance#49DQ'09: Performance Highlights • • • • • . Volume growth accelerates through the year to 5% Sales growth 5%; Soaps shares stabilise - 10 bps increase Volumes shares grow in Laundry - 100 bps in powders and 60 bps in Bars Personal Products growth momentum sustained through the year Underlying operating margins* up 10 bps despite high brand investments *Excluding MTM impact#50DQ'09: Financial Results Rs Crores DQ'09 DQ'08 Growth% Net Sales 4504 4308 4.6 EBITDA 788 764 3.1 PBIT 742 723 2.6 PBIT margin (%age) 16.5 16.8 Underlying PBIT 757 718 5.4 Underlying PBIT margin(%age) 16.8 16.7 Exceptional Items 44.5 (38.5) PBT bei 781 753 3.8 PBT 826 714 15.6 PAT bei 599 612 (2.1) Net Profit 649 616 5.4#51Looking Ahead • FMCG market growth to sustain • Short term impact of food inflation Overall growth opportunity remains strong Competitive environment intensifies significantly • Especially in Laundry, Hair & Skin • Reflected in increased media spends Several new entries in emerging segments Our focus is to • • • Deploy our full portfolio & brands to strengthen market leadership Invest behind our brands competitively to gain share Improve execution and speed to market Competitive growth is the No 1 priority across our business#52Thank You#53Hindustan Unilever Limited Investor Presentation February, 2010