United Spirits Limited has informed the Exchange about Investor Presentation
United Spirits Limited
Registered Office: ‘UB Tower’ #24, Vittal Mallya Road, Bengaluru – 560 001 Tel: +91 80 4544 8000 Fax: +91 80 3985 6862 www.diageoindia.com
National Stock Exchange of India Limited Exchange Plaza, C-1 Block G, Bandra Kurla Complex, Bandra East, Mumbai- 400051 Scrip Code: MCDOWELL-N
28th October 2021
BSE Limited Listing Department Dalal Street, Mumbai 400 001 Scrip Code: 532432
Dear Sirs,
Sub: Investor presentation
Further to our intimation dated 26th October 2021 regarding investor meet, enclosed herewith copy of the presentation on strategy refresh to be used in the meeting.
This is for your information & records.
Thank you,
For United Spirits Limited
Mital Sanghvi Company Secretary
Encl: as Above
Corporate Identity Number: L01551KA1999PLC024991
contactus.india@diageo.com
USL STRATEGY REFRESH INVESTOR PRESENTATION, OCTOBER 28TH, 2021
WHERE WE ARE TODAY..
Transformation & setting runway for the future
Profitable Growth
Transformed reputation
Big shifts in talent & culture
Total NSV
P&A NSV
EBITDA %
16.6%
14.3%
11.6%
12.5%
11.4%
9.7%
6.0%
F15
F16
F17
F18
F19
F20
F21
F15
F16
F17
F18
F19
F20
F21
F15
F16
F17
F18
F19
F20
F21
Debt
₹ 5320 Cr
FY 2015
>90% Reduction
₹443 Cr
Q2 FY22
WELL PLACED TO SHIFT GEAR…
* Confidential *
2
…TOWARDS A NEW MISSION
Top performing CPG company in India delivering sustained double-digit, profitable topline growth
&
long-term value to all our Stakeholders
* Confidential *
3
TAPPING INTO TRANSFORMATIONAL CONSUMER & CATEGORY ENERGIES TO FUEL OUR MISSION
* Confidential *
4
RISING AFFLUENCE providing breakout opportunity at the top
Consumer Prices (in INR) *
Diageo India portfolio
Annual HH income
> INR 28L High
INR 4.8 - 28L Upper Mid
INR 2.4 - 4.8L Lower Mid
< INR 2.4L Low
l
l
n o i t a u p o P d o h e s u o H s ’ a d n
i
I
2021 (GDP- INR 250 tn)
2024: (GDP-INR 340 tn)
316m
296m
9m(3%)
68m (23%)
12m(4%)
85m (26%)
85m (29%)
95m (29%)
>2000
800-2000
400-800
t n e u l f f A
m a e r t s n a M
i
l
/ e d d M
i
134m (45%)
2021
125m (39%)
2024
g n i r i p s A
<400
y r u x u L
i
m u m e r P
e g i t s e r P
l
r a u p o P
Source : WEF/Future of Consumption, India report, PRICE projections based on ICE 360 degree surveys (2014, 16, 18)
* Confidential *
5
Big consumer shifts post-Covid
Community,
Sustainability
Premiumization
Changed Work,
Socializing
Phy-gital Living
Semi-essential
Moderation and
‘drinking better’
Global & Local
Pride
Experiential,
Repertoire
* Confidential *
6
Emerging Consumer Cohorts
Dominant & emerging cohorts
Emerging, fast growing
Affluent / HNI
LDA-30 youth
Women
Boom Towns
Dominant
30yrs + Adult Male
SEC BC Middle India
* Confidential *
7
Our new Mission
Top performing CPG company in India delivering sustained double-digit, profitable topline growth
&
long-term value to all our Stakeholders
Portfolio Re-shape
Organization of the Future
Diageo in Society
* Confidential *
8
Pillar 1 : Portfolio Re-shape
P o r t f o l i o R e - s h a p e
Breakout growth on P&A
New growth engines
Value Chain efficiency extraction
* Confidential *
9
Pillar 1 : Portfolio Re-shape
Breakout growth on P&A
Accelerate in Luxury / Premium
Scotch
Global Portfolio
Embed our Scotch leadership
Step up focus on global portfolio for consumer repertoire
Strengthen Play in Upper Prestige
Signature
New positioning of Nature & Craft
RC American Pride
Unique offering with Bourbon, Scotch and select Indian malts & grain spirits
1
2
3
Reshape Value Proposition in Lower & Mid Prestige
Invest & Premiumize No 1
Restage RCW to drive recruitment
* Confidential *
10
* Confidential *
11
Supported by Retail Transformation
* Confidential *
Pillar 1 : Portfolio Re-shape
New growth engines
1
2
Transformational Innovation
Winning Liquids made in India
Emerging Opportunity Spaces & Fast growing segments
Indian Craft – Epitome Reserve : India’s first 100% Rice Grain whisky
Premium Beer – seed Guinness
Watch this space!!
* Confidential *
13
Pillar 1 : Portfolio Re-shape
Value Chain efficiency extraction
1
2
3
Net Revenue Management
Pricing, Mix and Trade spends
Productivity
Continue to build robust productivity pipeline for year-on-year delivery
Invest smartly
For Growth & Efficiency
* Confidential *
14
Pillar 2 : Organization of the Future
O r g a n i z a t i o n o f t h e F u t u r e
Digital Acceleration
Talent & Culture as growth drivers
Speed & Simplicity
* Confidential *
15
Pillar 2 : Organization of the Future
Digital Acceleration
1
2
3
Consumer & Customer
Supply Chain Transformation
Technology for Impact
S u p p l y 2 . 0
Cutting edge technology in areas of maximum impact
Amber Chief Engagement Officer
* Confidential *
16
Pillar 2 : Organization of the Future
Talent & Culture as growth drivers
1
Strong leadership bench
2
Purpose driving Performance
3
Building capabilities for the Future
* Confidential *
17
Pillar 2 : Organization of the Future
Speed & Simplicity
1
Op Model & Ways of Working reset for Speed
2
Simplification
Embed “Sprints”
#RadicalLiberation
* Confidential *
18
Pillar 3 : Diageo in Society
D i a g e o i n S o c i e t y
Driving ESG from ‘Grain to Glass’
Moving India towards ‘Drink Better, not More’
Leading Inclusion & Diversity
* Confidential *
19
Pillar 3 : Diageo in Society
Driving ESG from ‘Grain to Glass’
P i o n e e r ‘ G r a i n t o G l a s s ’ s u s t a i n a b i l i t y
M a r k e t l e a d i n g p r a c t i c e s t o w a r d s E m p l o y e e s , S u p p l y c h a i n & L o c a l c o m m u n i t i e s
E x e m p l a r y G o v e r n a n c e & D i s c l o s u r e s
* Confidential *
20
P i o n e e r ‘ G r a i n t o G l a s s ’ s u s t a i n a b i l i t y
M a r k e t l e a d i n g p r a c t i c e s
55% water usage reduction since 2007
Citizenship during Covid
40% further reduction by 2030
Water Positive by 2026
Sanitizers, medical equipment, public health infrastructure, Raise The Bar
95% reduction in carbon emission*, 100%
Rene renewable Energy in Own Operations
Net ZERO carbon operations by 2025*
Human Rights Impact Assessment
Brand Promoter Standards
Employee Wellness Policy
Elimination of 2k MT from Packaging &
Covering 8 dimensions of Wellness
Collection of 20k MT of plastic waste
Plastic Waste Positive by end of F22
26 weeks Paternity Leave Policy
*Scope 1 & scope 2
* Confidential *
21
Pillar 3 : Diageo in Society
Moving India towards ‘Drink Better, not More’
Moderation
Shaping drinking attitudes by championing Moderation
Tackling Harmful Drinking
Multi-year scale programs on Drink Driving & Underage Drinking
Responsible Marketing
Diageo Marketing Code & Digital Code as minimum mandatory standards
* Confidential *
22
Moving India towards ‘Drink Better, not More’
Moderation
Anti-Drink Driving
1.6 Lakh+ people reached
40L by 2024
Capacity building for 1.2L enforcement officials, in 65 cities across 22 states
8L by 2024
Underage Drinking
2.3L trained in 300 schools in 15 States 15L by 2024
“Where I work, people feel confident and able to play a role in promoting positive drinking” - 95%* * Confidential *
*Diageo India internal ‘Your Voice survey’
23
Pillar 3 : Diageo in Society
Leading in Inclusion & Diversity
Inclusive Workplace Women, People with Disabilities & LGBTQ
Progressive Portrayal
Empowering Women in Communities
* Confidential *
24
Leading Inclusion & Diversity
Leading Inclusion & Diversity
Progressive Portrayal
“In Diageo, people from different backgrounds and opinions can be themselves and thrive”: 87%*
*Diageo India internal ‘Your Voice survey’
* Confidential *
25
Bringing it all Together
Top performing CPG company in India delivering sustained double-digit, profitable topline growth
&
long-term value to all our Stakeholders
Great Place to Work
Leveraged Growth
Organization of the Future
Portfolio
Re-shape
Diageo in Society
* Confidential *
ESG for Stakeholder Value
26
Key Shifts
FROM
Distributed focus on Transformation, Margin and Moderate Growth
Core i.e. Lower & Mid Prestige
Present Forward - i.e. today's Core
Enterprise Focus
Portfolio Focus
Consumer Focus
TO
Focus on sustained double digit, profitable topline Growth
Broader Based Break-out growth on P&A
Present Forward AND Future Back
Transformed Culture
Culture Shift
‘Best in Class’ Culture, Speed & Simplicity
Corporate Citizenship
Role in Society
ESG* for Stakeholder Value
* Confidential *
*Environmental, Social & Governance
27
An Invitation!
* Confidential *
28
Q&A
29
29