Upload
ruchamuranjan
View
217
Download
0
Embed Size (px)
Citation preview
8/14/2019 Ir Laundry in Asia Tcm13 114448
1/15
Fabric Cleaning in Asia
Laurent Kleitman
SVP Home Care Asia Africa Mumbai
14th November 2007
Safe harbour statement
This presentation may contain forward-looking statements, including 'forward-lookingstatements' within the meaning of the United States Private Securities Litigation Reform Act of1995. Words such as 'expects', 'anticipates', 'intends' or the negative of these terms and othersimilar expressions of future performance or results, including financial objectives to 2010, and
their negatives are intended to identify such forward-looking statements. These forward-lookingstatements are based upon current expectations and assumptions regarding anticipated
developments and other factors affecting the Group. They are not historical facts, nor are theyguarantees of future performance. Because these forward-looking statements involve risks anduncertainties, there are important factors that could cause actual results to differ materially from
those expressed or implied by these forward-looking statements, including, among others,competitive pricing and activities, consumption levels, costs, the ability to maintain and managekey customer relationships and supply chain sources, currency values, interest rates, the abilityto integrate acquisitions and complete planned divestitures, physical risks, environmental risks,
the ability to manage regulatory, tax and legal matters and resolve pending matters withincurrent estimates, legislative, fiscal and regulatory developments, political, economic and social
conditions in the geographic markets where the Group operates and new or changed priorities ofthe Boards. Further details of potential risks and uncertainties affecting the Group are described
in the Group's filings with the London Stock Exchange, Euronext Amsterdam and the USSecurities and Exchange Commission, including the Annual Report & Accounts on Form 20-F.
These forward-looking statements speak only as of the date of this presentation
8/14/2019 Ir Laundry in Asia Tcm13 114448
2/15
8/14/2019 Ir Laundry in Asia Tcm13 114448
3/15
Competitive growth : Building on leadership position
20.3%
21.8%
22.1%
22.7%
FY 04 FY 05 FY 06 'Aug 07
Unllever Asia Market Share %
Source: ACNielsen & Unilevers internal sources
35.5%
35.1%
35.4%
35.9%
37.1%
38.3%
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07
Unilever market leader in South Asia
Unilever South Asia
12.3%
11.9%
11.6%
11.9%
10.8%
10.5%
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07
Local Competitor 1
8.5%
9.0%
9.4%
9.0%
9.6%
10.0%
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07
Local Competitor 2
7.3%7 .4 % 7 .4 %
7.2%
7.8%7.9%
Q1 06 Q2 06 Q3 06 Q4 06 Q1 07 Q2 07
Global Competitor
Source: ACNielsen & Unilevers internal estimates
8/14/2019 Ir Laundry in Asia Tcm13 114448
4/15
High income consumers have double the expenditure
In last 3 years 30m more high income Households
Washing machines has gone up by more than 2m in one year
Asia: 60% of worlds population but only 36% of worlds water
Asia Fast evolving consumers
LowIncome
MiddleIncome
HighIncome
% households 38 43 19
Monthly expenditure(indexed) 100 130 200
Strategy
Exploit full portfolio of brands and price points
Upgrade consumers through innovations and formats
Product is Hero
8/14/2019 Ir Laundry in Asia Tcm13 114448
5/15
DurbanDeploy
BangaloreDiscovery
MumbaiDesign & Deploy
Sao PauloDeploy
VlaardingenDesign & Deploy
Port SunlightDiscovery,Design & Deploy
TrumbullDeploy
Laundry R&D centres
Strategy
Exploit full portfolio of brands and price points
Upgrade consumers through innovations and formats
Product is Hero
Improve category profitability
8/14/2019 Ir Laundry in Asia Tcm13 114448
6/15
100
73
58 59
80
69
48
31
FY 04 FY 05 FY 06 YTD Sep 07
Home Care operating marginsCrude oil price/barrel
NYMEX Sweet Crude Oil prices are for Jan 04, Jan 05, Jun 06 & Sep 07 price pointsOperating Margins indexed to 2004 = 100
Strategic investment & input costs putpressure on margins
Improve profitability
Strategic pricing
Supply Chain strategyand
Cost reductions
Leadershipand Scale
Innovation andPortfolio strategy
Market investment
8/14/2019 Ir Laundry in Asia Tcm13 114448
7/15
Summary - Asia
Scale and leadership in fast-growing market
Track record of share growth in Asia and South Asia
Clear consumer drivers for competitive growth
Strong action plan to improve profitability
South Asia Case Study
8/14/2019 Ir Laundry in Asia Tcm13 114448
8/15
South Asia : A booming economy
25% of the worlds consumers -1.6 Billion
Over 300 languages and 2000 ethnic groups
Oldest surviving civilization 5000 yrs old
Fastest Growing Cluster @ 9% pa outside China
8 %
0.07
6 %
19
Sri Lanka
11 %5 %12 %12%Marketgrowth
1.70.120.151.4Market size
9 %7 %7 %9 %GDP growth
7534587602Economy
S. AsiaBangladeshPakistanIndia
Economy Size IMF website 2006 Data, GDP Growth Euromonitor, Laundry Mkt size 2006, Mkt Growth CAGR 04-06
South Asia
Bn Euro
Economic growth propels lifestyle changes
250%
growthin the middle
500%Growth
At the topHighincome
Middle
income
Lowincome
8/14/2019 Ir Laundry in Asia Tcm13 114448
9/15
Successful deployment of portfolio across markets& segments
YTD Aug 07 market shares
42%
81%
32%
36%
Total MarketShare
# 1# 1# 1Bangladesh
# 1# 1# 1Sri Lanka
# 2# 2# 1Pakistan
# 1# 1# 1India
Bottom tierMid tierTop tier
Source: ACNielsen, Unilever estimates
Driving up-gradation throughsuperior product differentiation at each level
Deploying the portfolio for profitableup gradation
Surf ExcelAutomatic
SurfExcel
RinAdvanced
Wheel
Cost-per-washindex410256160100
BasicClea
n
Clean+
White
Clean++
Stains
CleanEx
treme
Machine
s
Profit
Index
100
300
Indicative Not to scale
8/14/2019 Ir Laundry in Asia Tcm13 114448
10/15
Leading to up gradation opportunities in Laundry
1. Driving machine wash
2. Driving premiumization(powders and bars)
3. Direct application (bars only) tosolution wash (bars + powders)
60%
morevalue
65%
morevalue
65%
more
value
70%morevalue
85% of machine households use regular
handwash powder
Poor wash results in machines
Launch of Surf Excel Matic Specialist powder
50% increase in market share
Rapidly growing usership
Driving up-gradation Machine specialists
Sales trend
97
166
157
157
149
148
100
MQ 06 JQ 06 SQ 06 DQ 06 MQ 07 JQ 07 SQ 07
Salesindex
8/14/2019 Ir Laundry in Asia Tcm13 114448
11/15
100113
127
164
189
2003 2004 2005 2006 2007
Product is Hero Surf Excel Bar
Traditional Bars use china clay forstructuring leaving residues
Patented technology : NIL mineral bar
No residue, better cleaning.
Rin Supreme SFXL Bars - T/O (Indexed to 2003)
TV with social activist Press and PR Branded Water Tankers
Reducing our environmental impact
1.4 billion water stressed consumers globally.
Laundry consumes a third of household water
Surf Excel re launch in 2005 to Save two buckets of water
Grew sales by >20% in water stressed areas.
Saved over 30 million litres of water in 2 years
8/14/2019 Ir Laundry in Asia Tcm13 114448
12/15
Mass
Mid-priced
Premium
Unilever
brands
+
++
++
Marketgrowth(due to
upgradation)
Unilever Relative Position(To nearest competitor)
1.4
1.8
2.4
RelativeShare
105
101
107
PriceSize
60%
25%
15%
Example IndiaDriving up-gradation through complete portfolio
100
200
600
Price Index
Surf Excel : Winning with Dirt is Good
11.511.2
10.910.810.4
SQ06 DQ06 MQ07 JQ07 SQ07
DiG value market share
8/14/2019 Ir Laundry in Asia Tcm13 114448
13/15
8/14/2019 Ir Laundry in Asia Tcm13 114448
14/15
Strong performance across South Asia
India Pakistan
Bangladesh Sri Lanka
100113
131151
2004 2005 2006 2007
100
163
239
322
2004 2005 2006 2007
100116
141
183
2004 2005 2006 2007
100117 121
141
2004 2005 2006 2007
T/Oindexed
to2004
YTD Sep 07 Turnover annualized for 12 months
Summary South Asia
Strong portfolio deployment
Strengthening brand equity leading share growth
Leveraging up gradation for profitable growth
8/14/2019 Ir Laundry in Asia Tcm13 114448
15/15
Conclusions
Strategy in action yielding results
Scale and leadership in fast growing markets
Clear consumer drivers for competitive growth
R&D in key emerging markets
Strong action plan to improve profitability
THANK YOU