Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2020-21 Earnings Presentation
27 slides from Hindustan Unilever's earnings presentation, Oct 20, 2020
Slide 1: Exchange filing cover letter for investor presentation
20th October, 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, Dala
Slide 2: SQ'20 Results Presentation
HINDUSTAN UNILEVER LIMITED SQ’20 Results Presentation 20th October, 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 20th October, 2020 Sensitivity: Public
Slide 5: Our strategy is serving us well
Our strategy is serving us well Guiding framework 4G growth model Fundamentals of growth Consistent, Competitive, Profitable, Purpose-led, Future-Fit Responsible Growth Sensitivity: Public 4
Slide 6: Operating environment
Operating environment Commodity and currency Sequential easing Rural performing better volatility continues 1.7X 1.4X 1.1X X 0.7X SQ'19 DQ'19 MQ'20 JQ'20 SQ'20 Good monsoon | Higher MSPs | Economic activities picking up Tea Crude Palm Oil USDINR Govt support | Demand relocation Progressively improvi
Slide 7: People #1 priority
People #1 priority Safety Wellbeing Morale 90% Employee engagement score Tiered operating protocol | Leadership check-ins | Purpose and inspiration | COVID Insurance coverage for >44K HUL learns together | Mental health week Growth mindset | Employee NPS We look after our people and they look after
Slide 8: Resilience and agility in operations
Resilience and agility in operations Service levels @ Pre-COVID 120+ Alternate 100% Factories & depots operational suppliers ~90 Flex 8 Wage settlements during COVID formulations Sensitivity: Public 7
Slide 9: Sharpening our execution edge
Sharpening our execution edge Stepping up coverage Digitizing general trade Accelerating e-commerce and assortment Effective Coverage* Demand Capture 1.1X X 2.7 Lakh 2X eB2B app Outlets onboarded Sequential growth & Jun'20 exit Sep'20 exit YoY Channel contribution Assortment Demand Generate 1.7X Par
Slide 10: Repurposing our brands
Repurposing our brands Sensitivity: Public 9
Slide 11: Dialling up consumer-relevant innovations
Dialling up consumer-relevant innovations 100+ innovation-led SKUs launched in last 6 months Sensitivity: Public 10
Slide 12: Contributing to communities #HULStandsWithTheNation
Contributing to communities # HULStandsWithTheNation Soap donations Health support UNICEF campaign Supporting essential workers Food distribution BMC campaign 100 cr. Pledge; 70% already deployed Sensitivity: Public 11
Slide 13: SQ'20: Growth competitive & profitable
SQ’20: Growth competitive & profitable Strong fundamentals Sequential step-up Health, Hygiene and Nutrition outperform 3% 70% -7% 10% -9% MQ'20 JQ'20 SQ'20 % Business gaining penetration^ Domestic consumer growth USG: SQ’20 ^ As per Kantar Worldpanel for MAT August 2020 on relative basis Sensitivity
Slide 14: Srinivas Phatak, Chief Financial Officer
Srinivas Phatak Chief Financial Officer 20th October, 2020 Sensitivity: Public
Slide 15: SQ'20: Growth competitive and profitable
SQ’20: Growth competitive and profitable Growth EBITDA PAT (bei) Net Profit Reported Turnover Growth Margin Gr % Gr % 16% 25% 11% 9% 3% +30 bps 2,035 Cr 2,009 Cr Domestic Consumer Growth Sensitivity: Public Difference between Reported Turnover Growth and Domestic Consumer Growth reflects the impact
Slide 16: Foods & Refreshment accelerates; HC & BPC stabilize
Foods & Refreshment accelerates; HC & BPC stabilize HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT 30% 40% 30% Sales Growth* -1% 0% 19% *Sales growth excludes the impact of merger of GSK CH and acquisition of VWash 15 Sensitivity: Public
Slide 17: Home Care
Home Care Portfolio of purposeful brands well positioned Household Care: Double digit growth across segments, penetration gains continue • Innovation intensity stepped up cater to ‘clean living’ needs • Domex range expanded pan India Fabric Wash: Lower commodity prices passed on; category consum
Slide 18: Beauty & Personal Care
Beauty & Personal Care Good performance in Skin Cleansing, Hair and Oral; Skin Care revives Skin Cleansing: Double digit growth led by Lifebuoy, Lux performs well • Penetration led gains drive strong growth in handwash & sanitizers • VWash off to good a start Oral Care: Double-digit growth led b
Slide 19: Foods & Refreshment
Foods & Refreshment High growth momentum sustained Foods: ‘In-home consumption’ trend aids double digit portfolio growth • Both Kissan and Knorr seeing strong consumer traction Beverages: Tea and coffee continue to outperform • Tea: Double digit growth across brands; unprecedented tea inflation
Slide 20: Health, Hygiene & Nutrition accelerate
Health, Hygiene & Nutrition accelerate Health, Hygiene & Nutrition Discretionary SQ’20 USG SQ’20 USG + 10% -25% c.15%* c.80%* Skin Care, Color Cosmetics, Deos Out of home SQ’20 USG -25% c.5%* Water, Ice Cream, Food Solutions, Vending Skin Cleansing, Home Care, Hair Care, Oral Care, Packaged Foods, T
Slide 21: Playing all lines of P&L to deliver profitable growth
Playing all lines of P&L to deliver profitable growth Net Revenue Management Savings Competitive investments Synergies from Nutrition Calibrated pricing | Sharper choices | Heightened intensity | Procurement | A&P | Overheads Trade spends rationalised Fixed to variable cost Brand Reach & SOVs sustai
Slide 22: Segmental Performance
Segmental Performance HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT INR 3,318 Cr INR 4,535 Cr INR 3,379 Cr Segmental Revenue Growth* -2% 0% 83% Segmental Margins** 20% 29% 17% *Segment Revenue Growth = Segment Turnover growth + Other Operating Income + Impact of merger of GSK CH + Acquisition
Slide 23: SQ'20: Results Summary
SQ’20: Results Summary Rs. Crores Particulars SQ’20 SQ’19 Growth % Sales 11,276 9,708 16%* EBITDA 2,869 2,443 17% Other Income (Net) 122 149 Exceptional Items – Credit / (Charge) (81) (47) PBT 2,661 2,308 15% Tax 652 460 PAT bei 2,035 1,832 11% Net Profit 2,009 1,848 9% *Domestic Consumer Growth a
Slide 24: First Half F.Y. 2020-21: Results Summary
First Half F.Y. 2020-21: Results Summary Rs. Crores Particulars FH 20-21 FH 19-20 Growth % Sales 21,682 19,692 10%* EBITDA 5,513 5,090 8% PAT bei 3,908 3,583 9% Net Profit 3,890 3,603 8% *Domestic Consumer Growth at -2% Exceptional items include costs related to restructuring and Nutrition busin
Slide 25: Interim dividend: Proposed Rs.14 per share
Interim dividend: Proposed Rs.14 per share Particulars F.Y. 2020-21 F.Y. 2019-20 Dividend per share (Rs.) 14.0 11.0 No. of shares (Crores) 235 216 Total Dividend (Rs. Crores) 3,289 2,381 Sensitivity: Public 24
Slide 26: Looking ahead
Looking ahead Near-term outlook Organizational strengths Cautious Optimism: The worst is possibly behind us; Brand portfolio business picking up momentum Demand : Rural growths looking resilient and need to Talent & capabilities sustain. Urban demand outlook uncertain Inflation in select categ
Slide 27: For more information and updates
For more information and updates Visit our website Sensitivity: Public 26
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