Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q3 2009 Earnings Presentation
18 slides from Hindustan Unilever's earnings presentation, Nov 2, 2009
Slide 1: Results – SQ '09 Investor Presentation
Results – SQ ’09 2nd Nov 2009 Investor Presentation Safe Harbour Statement ThisRelease/Communication,exceptforthehistoricalinformation,maycontainstatements, includingthewordsorphrasessuchas‘expects,anticipates,intends,will,would,undertakes, aims, estimates, contemplates, seeks to, objective, goal, p
Slide 2: Agenda / Market Context: SQ'09
Agenda • Market Context • SQ’09 Highlights • Category Overview • Financial Results • Looking Ahead SQ'09 Results - 2nd Nov‘09 Market Context : SQ'09 • FMCG markets continue to grow • Downtrading in laundry • Personal Products momentum sustained • Consumer price inflation remains high • Slower pace o
Slide 3: Results Summary: SQ'09
Results Summary : SQ'09 • Domestic consumer* business grows 8%; FMCG grows 7% • Double digit growth in Personal Products and Foods; Modest growth in Soaps & Detergents • Underlying volumes growth in FMCG +1.0% • Strong growth momentum in Water business • Net sales grows +5.0%; Exports down • A&P gro
Slide 4: Portfolio Growth in relation to market
Portfolio Growth in relation to market Hair Care High Skin Care Laundry Tea Mass Premium Premium Laundry Laundry Soaps FMCG Market Medium Soaps Growth Mass Oral Soaps Low Coffee Low Medium High HUL Sales Growth SQ'09 Results - 2nd Nov‘09 Category wise Revenue growth Growth % SQ'09 Soaps & Detergents
Slide 5: Key Interventions
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
Slide 6: Active deployment of Soaps portfolio
Active deployment of Soaps portfolio Avg Price 42 32 24 per 100 gms* Driving Relevance New Communication Cleans all 2000 parts 15 17 16 With beauty oils Goodness of tulsi and neem Soft silky skin positioning 13 10 Germkill credentials reinforced International fragrance All brands relaunched; strong
Slide 7: In Summary: Interventions across portfolio
In Summary: Interventions across portfolio Fabric Personal Shampoo Skin Tooth Tea Coffee Proc Ice Wash Wash Paste Foods Creams Premium Popular Mass New introductions/Relaunches in FH Launch/ Relaunch Price intervention SQ'09 Results - 2nd Nov‘09 Strong investment behind brands A&P as a % of Net Sale
Slide 8: Step up in cost efficiencies
Step up in cost efficiencies 200 SupplyChainCostSavings%T/O Indexed Chart (Base=2005) 100 Excluding Water and exceptional items 0 100 2005 2008 FH09-10 Overheadsasa%ofturnover 80 60 2005 2008 FH09-10 SQ'09 Results - 2nd Nov‘09 Enhancing execution capability FieldExecution AllIndia DOHInventory Order
Slide 9: Key Interventions / Home Care category highlights
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
Slide 10: Soaps and Skin Care category highlights
Soaps category highlights • Premium soaps portfolio continues to deliver strong performance • Growth in Dove, Pears, Liril driven by volume • Popular and mass segment rejuvenated • Lux, Hamam, Rexona and Breeze relaunched • New Lifebuoy with reinforced ‘Germkill’ proposition starting to show good co
Slide 11: Hair, Oral and Beverages category highlights
Hair and Oral category highlights • Portfolio relaunched and step up in growth momentum across brands – Dove grows rapidly with launch of new range – Volume growth in Clear post relaunch – Sunsilk grows well in all packs and in conditioners – Clinic Plus relaunched in July • 2nd consecutive quarter
Slide 12: Processed Foods and Ice Cream category highlights
Processed Foods category highlights • Market development activities continue to build this emerging category • Knorr Soups relaunched and franchise expanded with very positive consumer response • Kissan brand continues to grow well across all segments • Annapurna & Modern Foods grow well and profita
Slide 13: Water Purifier Update / Financial highlights
Water Purifier – Business Update • Pure-it continues to expand rapidly • Increasing reach to consumers – New extension into multiple channels • Focus on product innovations • Nearly 3 million households now protected SQ'09 Results - 2nd Nov‘09 September Quarter‘09 financial highlights • PBIT margins
Slide 14: Results: SQ'09 and Exceptional Items
Results: SQ’09 Rs Crores SQ'09 SQ'08 Growth% Net Sales 4228 4028 5.0 EBITDA 652 559 16.6 PBIT 606 520 16.5 PBIT margin (percentage) 14.3 12.9 - Exceptional Items (135.2) 108.7 - PBT bei 652 561 16.1 PBT 516 670 (22.9) PAT bei 500 456 9.5 Net Profit 429 547 (21.6) SQ'09 Results - 2nd Nov‘09 Results:
Slide 15: Analysis of Net Profit; Results: FH 2009-10
Analysis of Net Profit –SQ’09 Rs Crores SQ'09 SQ'08 Growth% Net Profit 429 547 (21.6) Less: Exceptional/Extraordinary Items (Net of Tax) (71) 90 Profit After Tax bei 500 456 9.5 Less: Foreign Exchange (MTM) Impact (Net of Tax)* (6) 14 Profit after Tax before Excep./ Extraordinary items 506 442 14.4
Slide 16: Analysis of Net Profit: FH'09-10; Interim Dividend
Analysis of Net Profit: FH’09-10 Rs Crores FH 09-10 FH 08-09 Growth% Net Profit 972 1105 (12.0) Less: Exceptional/Extraordinary Items (Net of Tax) (66) 109 Profit After Tax bei 1037 996 4.1 Less: Foreign Exchange (MTM) Impact (Net of Tax)* (27) 31 Profit after Tax before Excep./ Extraordinary items
Slide 17: In Summary / Looking Ahead
In Summary • Domestic Consumer business grows 8.0%; FMCG growth 7.0% • PP, Foods and Water grow strongly in double digits • Downtrading impacts Mass laundry – actions to improve consumer value implemented • Full portfolio deployed in Soaps • In-market execution substantially improved • Operating mar
Slide 18: Thank you
Thank you For more information, please visit http://www.hul.co.in http://www.hul.co.in SQ'09 Results - 2nd Nov‘09 Results – SQ ’09 2nd Nov 2009 Investor Presentation 18