Hindustan Limited Annual Investor Seminar 2012

Agenda

Winning TToday, Winning tomorrow 8.45 am to 9.45 am

Brand and Capability experience Business heads 10.00 am to 1.00 pm

Q&A CEO & CFO 1.00 pm to 1.30 pm Limited Winning Today, Winning Tomorrow and compelling strategy

Strategic framework Sustainable Living Plan Our Goals

Consistent Growth

Competitive Growth

Profitable Growth

Responsible Growth A business model that works

Virtuous circle of growth

Cost Profitable Leverage Volume + Growth Efficiencies

Cost Savings Innovation A&P/R&D

Focused on execution FY 2011-12: Delivered on goals

Competitive growth Consistent growth Profitable growth Ahead of market Volume led Margin expansion

18 140 bps ↑ 18 17.5% 10 14 8

UVG Price USG Domestic consumer HUL Market HUL Sales growth EBIT FMCG growth % HUL FMCG growth % Stepped up the growth momentum

Increasing FMCG USG (%) Higher PP contribution (%) Higher Foods contribution to F&B

18 34 31

31 10 28 8

FY10 FY11 FY12 FY10 FY12 FY10 FY12 Straddling the pyramid

1 Compass - How will we win

2 Strengthening capabilities - Widening competitive gap

3 Sustainability - USLP 5 Winning Principles

Our first priority is to our consumers, then customers, employees and communities. When we fulfill our responsibilities to them our shareholders will be rewarded. Embedding consumer and customer centricity

Consumer & Customer License Customer Credo Mission Bushfire – Perfect stores

Project Popeye Our approach to Winning Step up in innovations Covering 60%+ of portfolio

Fair & Lovely Future Tube: : Nourishing Oil Care range Lakme Absolute range relaunch with silk protein Aspirational & affordable with Vita Oils extract

Fair & Lovely Facewashes Keratinology for G relaunched salon treated hair Rin bar relaunch with superior formulation and packaging

Vim relaunched with “100 Face Wash: Range expansion Nimbuon ki Shakti” hand and body across brands Clear Relaunched Step up in innovations Covering 60%+ of portfolio

Fruttare Naturally Selection Soupy Noodles Cup–a–Soup refreshing flavours 5 Rich and Creamy Kissan range expanded and relaunched extension instant soups with 100% Fruit International flavours

Lipton Ice Tea

Green and flavored Teabags Bru Gold Bru Exotica 100% coffee Pureit Marvella RO Better quality products, stronger brands

Tripled blind product wins % Improved brand equity scores

3X

2011

2X 3/4th of portfolio 2010 holding/gaining *

X

2009 Driving mix through premiumization

Skin care Moving up the ladder (Face)

Market Segments Market CAGR construct (%) 2009-11 (%)

20 Premium 40

30 Mid 35

50 Mass 10 Building segments of future

Facewashes Hand & Body Size: >Rs. 900 crs. Size: >Rs. 1300 crs. Growth: c. 50% Growth: c. 30%

Handwashes Noodles Size: >Rs. 1700 crs. Size: >Rs. 200 crs. Growth: c. 30% Growth: c. 30% Building segments of future

Premium Skin Anti Aging lightening Size: >Rs. 200 crs. Size: >Rs. 800 crs. Growth: c. 30% Growth: c. 30%

Conditioners Tea bags Size: >Rs. 200 crs. Size: >Rs. 80 crs. Growth: c. 30% Growth: c. 40% Building segments of future Delivering results

Portfolio contribution Growth contribution

Core Categories Future Categories Our approach to Winning Leading market development

More Users Drive preference

More Usage Drive consumption

More Benefits Develop segments Repeatable models Successful deployment in Skin and Hair

More users More usage More benefits Stepping up front end execution

More stores Better Stores Better served*

310 bps ↑

DISTRIBUTED: 6.5 Mn Proposition Product

CORE SERVICED : 2 Mn+ Place

Direct Pack

Price 2010 2011 Promotion Delivering results

Perfect Stores Modern Trade Rural Increasing contribution, higher growth Accelerating Distribution gains

Growth in perfect stores significantly higher contribution growth contribution growth

Average Perfect stores 2010-11 2011-12 2010-11 2011-12 Our approach to Winning Differentiated Supply Chain Driving benefits across value chain

Live Superior Service. Delivery Sustainable, Profitable Growth

World class Consumer E2E service perceived competitive quality costs

Flawless execution, Safety and Sustainability Focus on cash and savings

Step up in cost savings Maximizing ROCE Delivering cash Savings as a % of Turnover Optimizing investments TWC as a % of turnover

2010-11 2011-12 % Contributed by

52% Productivity Capacity Improvement increase in 2011 48% New Capital Investments 2008-09 2011-12 Driving Return on Marketing Investments Getting more out of advertising

More ads pre-tested Improvement in Ad preview scores Production and media fees Up by 50% Up by 800 bps Lower by 900 bps

70% n i o s a u s r e P

2010 2010 2011 2011 Awareness Driving Return on Marketing Investments Optimizing promotional spends

More activities evaluated More green activities Higher ROI Up by > 50% Higher by 1100 bps Up 200 bps

e i v i t + s o P I O R -/- +

TO Growth

2010 2010 2011 -/- 2011 Our approach to Winning Performance culture that respects our values A broad based systematic approach

PERFORMANCE CULTURE Strengthening Performance culture

Aligned goals Sharper Reward linked to differentiation performance

Fixed Variable

i p h s r e d a e L f o s d r a d n a t S

2006-07 2011-12 Delivery

Performance culture index is up by 14% in 2011 Engaged to win

Step up in employee Near Nil man days lost engagement scores

2009 2010 2011 preceding 2009 2010 2011 5 year average Building a talent powerhouse

# 1 Employer of choice by Nielsen Campus track

# 1 Best employer in , 2011 awarded by Aon Hewitt

# 1 Dream employer across campuses Survey by Nielsen Straddling the pyramid

1 Compass - How will we win

2 Strengthening capabilities - Widening competitive gap

3 Sustainability - USLP 5 Widening competitive gap Capability thrusts

Winning with Winning in Foods Winning in Rural Segmented Leveraging beauty business models technology

•Target right for •Robust supply •Shakti/Shaktiman •Differentiated •Business planning growth chain •Telecom models - Lean and and operations •Expertise and •CD capabilities •Financial Inclusion agile •Transactions authority program •Relevant •Business analytics •World class in- experience models •Digital Media store experience •Talent and culture •Beauty training Winning in Rural Sizeable opportunity

Large Significant Growing Rising Consumption Consumer base contribution rapidly Income and uptrading

146 million ~40% Double 3.6X Strong Households of FMCG digits increase in growth in government emerging expenditure categories HUL rural: fast growing and profitable Expanded distribution, stepped up execution

Expanding Consumer Leveraging Direct Distribution presence awareness partnerships Tripled Project Shakti Khushiyon Ki Doli Project Express

Winning in rural Expanding HUL Rural presence ‘Project Shakti’

45,000 Shaktiammas

30,000 Shaktimaans

15 States

100,000 Villages Driving consumer awareness and retail contact ‘Khushiyon ki Doli’

2010 2011

3 States 5

28,000 Villages 70,000

10 mln Consumers 25 mln

170,000 Retailers 400,000 Addressing rural cost to serve challenge ‘Project Express’

 HUL – TTSL Distribution Alliance

• <20k markets across India

 Win – win model

IN PROGRESS

COMPLETED • Coverage expansion

• Improved servicing

• Higher income for Shakti entrepreneurs

 Rolled out in four states

• Scale up in progress Widening competitive gap Capability thrusts

Winning with Winning in Foods Winning in Rural Segmented Leveraging beauty business models technology

•Target right for •Robust supply •Shakti/Shaktiman •Differentiated •Business planning growth chain •Telecom models - Lean and and operations •Expertise and •CD capabilities •Financial Inclusion agile •Transactions authority program •Relevant •Business analytics •World class in- experience models •Digital Media store experience •Talent and culture •Beauty training Building competitive gaps Leveraging IT for growth

Supporting Customer Enhancing brand Driving S&OP Supporting Development engagement transactions

Improving coverage, Global digital Enabled by End to End Simplified payment quality of information capability systems for business processing and insights in traditional planning and operations trade Leveraging IT for growth Supporting customer development Leveraging IT for growth Driving new age communication - digital

Digital Engagement Mobile, Social Consumer Build consumer Readiness based search, gaming insights, centric communication and DTH analytics, ROI platforms

•Building capability •Focus on earned media • 500% increase in • CMI integration on • Angels Club search, 100% in social DTH, mobile and -Top 10 FB page in • More brands, more • 4.2 Mn Social and 90% on mobile display India nd platforms, always on networking fans added -2 largest Unilever in 2011 • Online video is 10% of • Pre-testing of digital FB page • Significant step up in total digital spends creatives •JammyArt.com: India’s investment • >1 billion social • Digital campaign largest Kida UGC impressions generated effectiveness platform •BeBeautiful.in: India’s largest beauty platform Driving new age communication Mobile gaming

Impact Reach Avg. of 4.5 plays per person 10 million game downloads Excellent User Reviews Driving new age communication Mobile activation Driving new age communication Integrated video plus social networking

1st ever FMCG campaign from India to enter the ‘Facebook Studio hall of fame’

3.3 lakhs channel views 126 subscriptions 60 videos Straddling the pyramid

1 Compass - How will we win

2 Strengthening capabilities - Widening competitive gap

3 Sustainability - USLP 5 Unilever Sustainable Living Plan Three big goals Unilever Sustainable Living Plan India Highlights 2011

30 million people reached with soap handwashing programmes in 2010-11

30 million people have gained access to safe drinking water by using Pureit in-home water purifier, since 2005

Around 60%of our major food and beverage brands – , Bru, , Kissan and Kwality Wall’s – comply with the ‘Healthy Choice’ guidelines’

Reduced CO2 emissions by 14.7%, water use by 21.5% and waste by 52.8% in our factories, over 2008 baseline

Improved CO2 efficiency in transportation by 17.8%

60% of tomatoes in Kissan Ketchup are sourced sustainably

Winning today winning tomorrow Driven by a clear and compelling strategy

Strategic framework Sustainable Living Plan Our Goals

Consistent Growth

Competitive Growth

Profitable Growth

Responsible Growth