NEW AGE AGILE FINANCE –THE HUL EXPERIENCE

SRINIVAS PHATAKCFO, HUL

24TH AUGUST 2018

HINDUSTAN UNILEVER LIMITEDINDIA’S LARGEST FMCG COMPANY FOR 86+ YEARS

2

Turnover of ~$ 5 billion

Market capitalisation of

~$ 55 billion

India’s MostInnovativecompany.

World’s No. 8.

More than 9 out of 10

households use one or more of

our brands

Presence in > 8 Mnoutlets

3.3 million tons / 45

billion pieces sold every

year

THE WORLD AROUND US IS CHANGING..

A decade ago...

No one owned a smartphone

Twitter was an English word for bird-song

We didn’t know ‘the Facebook’

We shopped almost exclusively in ‘real’ shops

3

IT IS AN AGE OF CHANGE AND DISRUPTION

Aspirations: RISING

Consumers: GLOCAL & WITH PURPOSE

Channels: TRANSFORMING

World: VUCA

Competition: INTENSE

Tech:DISRUPTIVE

Regulatory:EVOLVING

Cu

sto

me

rs a

nd

Co

nsu

me

rsEn

viro

nm

en

t

4

THE FUTURE OF INDUSTRY IS ALREADY HERE

PersonalisationCurated and tailored experiences

Convenience = NowExpectation of instant gratification

Every routine automatedAutomated replenishment

Immersive shopping experienceShopping, media & entertainment together

Third-party everythingAsset-light operations, open talent economy, ubiquitous automation and run by algorithms

Best-in-class today... "New Normal" tomorrow

5

IN THIS RAPIDLY CHANGING INDUSTRY LANDSCAPE …

6

THE ROLE OF FINANCE IS ALSO BEING REDEFINED..

CONSUMER: PATH TO PURCHASE IS MORE COMPLICATED

From: Linear path to purchase To: Multiple touch points

How we make our brands more relevant ?

7

MEDIA: CHALLENGING TRADITIONAL MODELS

5 years ago Next 5+ years

How do we allocate resources for efficacy and effectiveness ?

8

CHANNELS: DIFFERENTIATED APPROACH

Traditional Trade Emerging channels of the future

How do we target consumers, correlate spends to sales ?9

EXCITING TIMES FOR FINANCE TO PLAY AN EVEN BIGGER ROLE

Drive Return on Resources:

Capital, Revenue and People

10

WHAT DO THE STAKEHOLDERS EXPECT FROM FINANCE ?

World class Governance More Impact Forecast the future Catalyst of change

11

Leading with Impact

FUTURE FINANCE : THE AGENDA

Unlock Value Drive Agility

Protect Value

Fuel Growth

13

Leverage Technology

KEY BUILDING BLOCKS

Organisation

Talent

1

2

3

4

Technology

Culture and Values

14

1. FINANCE ORGANISATIONRESHAPED FOR AGILITY

Finance Shared Services

Financial Controlling

Exp

ert

ise

HUL Finance Leadership Team

Information & Analytics

Finance ExcellenceTeam (FET)

Finance Business Partners (Agile)

CFO

There is no such thing as good or bad organisation, it just has to be appropriate and fit for purpose

15

Proactive risk management with real time controls monitoring

Standardisation and centralisation for high quality accounting and reporting

Seek and deploy global expertise effectively

Unlock value through process transformation

THE CONTROLLER ORGANISATIONSHARPER FOCUS ON PROTECTING AND UNLOCKING VALUE

Global Financial Controls Framework (GFCF)

RTR/Gen PTP MTD OTC

16

5

10 + 5

236

3

11 + 6

19

15

916

7

2

15 Access Controls

IT General Controls

Process Controls

Centralized Monitoring & Reporting capability

Treasury, Tax, Pensions,

Payroll, + other

Global and local controls

Local Framework

LEGEND: Automated : Service provider

/central functions

: Unit : OC/Control Tower

Global Controls framework

GST Roll out

16

Truly agile pool –

Not dedicated to a person/category

High Value bets

End to end thinking

THE FINANCE BUSINESS PARTNERSSHARPER FOCUS ON VALUE CREATION

Generating fuel for growth

M&A

Market Development

17

2. TALENTCREATING FUTURE-READY TALENT

IDPs

Building capabilitiesAttracting right talent Diversity & Inclusion

Well-being

18

AI and Data Science

3. TECHNOLOGYLEVERAGE FOR COMPETITIVE EDGE

What data do we

have today and

what more we

needto meet

the business

strategy

Data Strategy Finding the sweet spot

Distinctive Technology giving

Competitive Advantage

Appropriate

Large Part

of the Value

Chain

Consumer

Need/ Unmet

Problem

19

TECHNOLOGY ARCHITECTURE

Juicing out our core Systems

Data Analytics and Visualisation

Intelligent automation and AI

5

Technology is cool, but you have got to use it !

20

LIVE WIREREAL TIME DATA ANALYTICS AND VISUALISATION

21

4. CULTURE AND VALUES

Alongside the enduring values of Unilever

Values ledPurpose driven

Integrity

Coach Curious

Own

Pride

Respect | Pioneering | Integrity | Responsibility

22

THE JOURNEY OF DISCOVERING PURPOSEPEOPLE WITH PURPOSE THRIVE

100% Finance personnel with

Purpose

23

FOSTERING A CULTURE OF..

Entrepreneurial mindset Experimentation

Doing well by doing good

CollaborationEmpowerment

Having FUN…Glocalization

24

• Integrated with business with a strong consumer centricity

• Change Mindset… catalyst

• Purpose-driven and Values led

• Agility in decision making

• Building Capabilities in self and teams

• Leverage Technology

IN SUMMARY..FINANCE LEADING WITH “IMPACT”

25

26