Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q4 FY2020 Earnings Presentation
29 slides from Hindustan Unilever's earnings presentation, Apr 30, 2020
Slide 1: Exchange filing cover letter: Investor Presentation
30th April, 2020 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra – Kurla Complex, Dalal
Slide 2: MQ'20 Results Presentation
HINDUSTAN UNILEVER LIMITED MQ’20 Results Presentation 30th April, 2020 Sensitivity: Public
Slide 3: Safe Harbor Statement
Safe Harbor Statement This Release / Communication, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar e
Slide 4: Sanjiv Mehta, Chairman & Managing Director
Sanjiv Mehta Chairman & Managing Director 30th April, 2020 Sensitivity: Public
Slide 5: Market context: Challenging
Market context: Challenging Heightened volatility in Slowing market growth crude & currency 10% 80 78.0 9% 78 76 74 76.0 72 70 68 74.0 66 64 62 60 72.0 58 56 54 70.0 52 50 2% 48 68.0 46 1% 44 42 40 66.0 38 36 34 64.0 32 30 -1% -1% 28 62.0 26 24 22 20 60.0 2018 2019 L3M Mar'20 Mar'20 MQ'18 DQ'18 SQ'1
Slide 6: COVID-19: Adverse impact in March second half
COVID-19: Adverse impact in March second half State governments’ response in fight against COVID-19 Nation-wide lockdown 1st case Junta curfew West Bengal Haryana Lockdown in India till 3rd May Punjab Uttar Pradesh Himachal Pradesh Delhi Delhi Rajasthan Karnataka Punjab Madhya Pradesh Karnataka Guja
Slide 7: Clear imperatives and consistent strategy
Clear imperatives and consistent strategy People Supply Demand Community Cost & Cash Drive agility and responsiveness across the value chain Sensitivity: Public 6
Slide 8: In a crisis like this, HUL stands with the nation…
In a crisis like this, HUL stands with the nation… Our consumers and customers Broader society • Price reduction for Lifebuoy handwash and Domex • Donating Lifebuoy soaps & sanitizers floor cleaners • Upgrading health care facilities • Protect the interests of distributors & partners • Creating larg
Slide 9: In a crisis like this, HUL stands with the nation…
In a crisis like this, HUL stands with the nation… Local administration UNICEF Apollo, SBI, Oyo & Others BMC Corona se mat darona partnerships #VirusKiKadiTodo Project Stay Strengthening infrastructure National campaign to inform 5000 isolation rooms with Arming people with corona Haridwar: Built 30
Slide 10: Our M&A: Enhances nutrition and hygiene
Our M&A: Enhances nutrition and hygiene GSK CH merger effective 1st April 2020 Announced the proposed acquisition of VWash Iconic brands and ~3500 strong nutrition team in Market leader in Intimate Hygiene category Hindustan Unilever fold Sensitivity: Public 9
Slide 11: FY 2019-20: Growth competitive and profitable
FY 2019-20 : Growth competitive and profitable 2% USG for FY 20 with PAT increase of 12% F.Y. 2019-20 Domestic Consumer Growth 2% Underlying Volume Growth 2% Comparable* EBITDA Improvement (bps) 100 PAT Growth 12% Cash from operations^ Rs. 9,770 Cr * Comparable EBITDA improvement arrived after adjus
Slide 12: Srinivas Phatak, Chief Financial Officer
Srinivas Phatak Chief Financial Officer 30th April, 2020 Sensitivity: Public
Slide 13: MQ'2020: Performance impacted by COVID-19 disruptions
MQ’2020: Performance impacted by COVID-19 disruptions Growth EBITDA PAT (bei) Net Profit Domestic Consumer Growth Comparable* EBITDA Growth PAT (bei) Growth PAT Growth -9% -15% -8% -1% -7% -160 bps 1,469 Cr 1,519 Cr Comparable* Margin Underlying Volume Growth PAT (bei) PAT Change Our growths are com
Slide 14: MQ'2020: Health, hygiene and foods resilient
MQ’2020: Health, hygiene and foods resilient HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT 38% 42% 20% Sales Growth -4% -14% -7% Impacted: Water Impacted: Skin, Hair, Color Impacted: ICD, OOH Sensitivity: Public 13
Slide 15: Continued progress on fundamentals
Continued progress on fundamentals Core of the core Market development Premiumization Execution prowess Enhanced sales and operational planning New models to ramp up distribution Sensitivity: Public 14
Slide 16: Segmental Performance
Segmental Performance HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT Segmental Revenue Growth* -4% -13% -7% Segmental Margins** 19% 25% 13% *Segment Revenue Growth = Segment Turnover growth including Other Operating Income (Excludes impact of A&D) ** Segment Margins (EBIT) excludes exceptional
Slide 17: MQ'20: Results Summary
MQ’20: Results Summary Rs. Crores MQ’20 Particulars MQ’19 Growth % (Reported) Sales 8,885 9,809 -9%^ EBITDA 2,065 2,321 -11%* Other Income 266 118 Exceptional Items – Credit / (Charge) (58) (71) PBT 1,992 2,227 -11% Tax 473 689 PAT bei 1,469 1,590 -8% Net Profit 1,519 1,538 -1% Domestic Consumer G
Slide 18: FY 19-20: Growth competitive and profitable
FY 19-20: Growth competitive and profitable Sales EBITDA# PAT (bei) Net Profit Cash^ INR 38,273 Cr INR 9,600 Cr INR 6,743 Cr INR 6,738 Cr INR 9,770 Cr Domestic Consumer Growth Comparable* EBITDA Growth PAT (bei) Growth EPS (Basic) Growth Comparable* Cash^ Growth +2% +6% +11% +12% +11% +2% 100 bps 18
Slide 19: Segmental Performance: FY 19-20
Segmental Performance: FY 19-20 HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT Segmental Revenue Growth* 6% -2% 4% Segmental Margins** 19% 28% 17% *Segment Revenue Growth = Segment Turnover growth including Other Operating Income (Excludes impact of A&D) ** Segment Margins (EBIT) excludes exce
Slide 20: F.Y. 2019-20: Proposed Final Dividend
F.Y. 2019-20: Proposed Final Dividend Particulars F.Y. 2019-20 F.Y. 2018-19 Dividend per share 25 22 Interim 11 9 Final* 14 13 Total Dividend (Rs. Crores) 5671 4762 *Final Dividend number for F.Y. 2019-20 is subject to approval by the shareholders at the AGM. Sensitivity: Public 19
Slide 21: Looking ahead: Our strategy serves us well
Looking ahead: Our strategy serves us well Guiding framework Consistent growth model Fundamentals of growth Consistent, Competitive, Profitable, Purpose-led, Future-Fit Responsible Growth Sensitivity: Public 20
Slide 22: Clear imperatives to navigate through COVID-19
Clear imperatives to navigate through COVID-19 People Supply Demand Community Cost & Cash Drive agility and responsiveness across the value chain Sensitivity: Public 21
Slide 23: People: #1 priority
People Supply Demand Community Cost & Cash People: # 1 priority Highest safety standards Working from home Support our partners Sensitivity: Public 22
Slide 24: Supply chain and distribution resilience
People Supply Demand Community Cost & Cash Supply chain and distribution resilience Focus on key SKUs Supply continuity Innovative delivery models Enhanced direct dispatch New last mile delivery models Multiple manufacturing sources New and alternate sources for materials Sensitivity: Public 23
Slide 25: Portfolio agility: Staying close to consumers
People Supply Demand Community Cost & Cash Portfolio agility: Staying close to consumers Essentials Contextual communication Consumer relevant innovations Sensitivity: Public 24
Slide 26: Community: HUL stands with the nation
People Supply Demand Community Cost & Cash Community: HUL stands with the nation Strengthening health Price drop on essentials Creating awareness Helping the needy infrastructure 15% price cuts in essentials Better value to consumers Sensitivity: Public 25
Slide 27: Cash and Cost: Protect our financial model
People Supply Demand Community Cost & Cash Cash and Cost : Protect our financial model Review sources and use of cash Fuel for growth Laser focus on receivables; judicious Dial up savings across value chain; leverage our deployment of credit scale Dynamic inventory management Dynamic re-allocation o
Slide 28: Outlook and approach
Outlook and approach Near term outlook • Unprecedented times : Difficult to estimate market growths and / or consumer demand • Volatility in inputs costs and currency to continue. Liquidity pressures to remain elevated Our approach : Protect our business model, grow competitively and contribute to t
Slide 29: For more information and updates
For more information and updates Visit our website Sensitivity: Public 28