Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — FY2015-16 Earnings Presentation
33 slides from Hindustan Unilever's earnings presentation, May 9, 2016
Slide 1: MQ 2016 & FY 2015-16 Results Presentation
MQ 2016 & FY 2015-16 Results Presentation May 9, 2016 1
Slide 2: 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 3: Agenda
Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 Financial Year Performance 5 Looking Ahead 3
Slide 4: Clear and Compelling Strategy
Clear and Compelling Strategy Strategic Framework Sustainable Living Plan Goals Consistent Growth Competitive Growth Profitable Growth Responsible Growth 4
Slide 5: MQ 2016 – Context: Business environment challenging
MQ 2016 – Context Business environment challenging Market growth remains soft, particularly in Rural Growth continues to be led by volumes Commodity costs show signs of upturn Competitive activity remains high 5
Slide 6: Commodity costs show signs of upturn
Commodity costs show signs of upturn PFAD Exchange Rate Brent Crude 67.6 66.2 65.9 66.3 45.0 43.2 62.2 38.2 3.5 3.3 $723 2.9 31.9 $639 2.7 28.5 $57 2.4 $565 $50 $44 $482 $40 $35 $432 MQ'15 SQ'15 DQ'15 MQ'16 Exit MQ'15 SQ'15 DQ'15 MQ'16 Exit MQ'15 SQ'15 DQ'15 MQ'16 Exit INR / USD $/ Barrel INR(000)/
Slide 7: MQ 2016: Profitable volume-led growth sustained
MQ 2016 Profitable volume-led growth sustained Reported Domestic Consumer growth at 4%, underlying volume growth at 4% • Intrinsic growth at 5% (net impact from phase out of excise benefits and one-off credits: -90bps) Operating Profit (PBIT) at Rs.1379 crores, up 11%; margin expands +115 bps •
Slide 8: Volume led performance across segments
Volume led performance across segments Reported Sales Segments Growth (%) Soaps and Detergents 2 Personal Products 2* Beverages 7 Packaged Foods 12 Domestic Consumer 4 • Soaps and Detergents: Volume growth partially offset by price deflation • Personal Products: Healthy intrinsic growth at 7%* o Rep
Slide 9: Category Highlights
CATEGORY HIGHLIGHTS 9
Slide 10: Winning with Brands: Continued focus on innovations
Winning with Brands Continued focus on innovations 10
Slide 11: Winning with Brands: Impactful activation
Winning with Brands Impactful 360 activation Red Label Lakme Lifebuoy 6 pack band Tete-a-tete with Shraddha Star Wars association Tresemme Taj Mahal Cornetto Decoding styles at Oscars Celebrating 50 years Leveraging Valentine’s Day 11
Slide 12: Skin Cleansing: Sustained volume growth
Skin Cleansing Sustained volume growth Dove, Lifebuoy and Hamam drive volume growth Continued price deflation as commodity benefits passed on to consumers Significant uptick in commodity costs towards quarter end 12
Slide 13: Home Care: Growth led by premium segment
Home Care Growth led by premium segment Laundry • Surf maintains its volume led double digit growth momentum • Wheel continues to recover turnover post relaunch • Comfort sustains its strong growth led by market development Household Care • Performance led by Vim liquids Continued price deflat
Slide 14: Skin Care: Healthy intrinsic growth
Skin Care Healthy intrinsic growth FAL performance led by BB Cream; ‘Ayurvedic Care’ variant relaunched Pond’s delivers strong growth led by premium skin lightening Lakme growth buoyed by CC cream and Perfect Radiance Vaseline registers robust double digit growth 14 Intrinsic growth = net of
Slide 15: Hair Care: Volume led growth sustained
Hair Care Volume led growth sustained Dove delivers another quarter of double digit volume growth TRESemmé maintains its strong growth momentum Conditioners grow well on focused market development 15
Slide 16: Oral Care: Subdued performance
Oral Care Subdued performance Close Up sustains its good underlying performance Pepsodent: • Core relaunched in quarter • ‘Clove and Salt’ variant continues to do well 16
Slide 17: Color Cosmetics: Innovation led double digit growth
Color Cosmetics Innovation led double digit growth Lakme sustains its strong double digit growth momentum • Robust performance across Absolute and 9 to 5 ranges whilst driving trends • Impactful launch of Lakme Absolute Eye Shadow Palette • Shade additions made to the ‘Lip Love’ lip balm and ‘Abso
Slide 18: Beverages: Consistent growth
Beverages Consistent growth Tea growth driven by impactful activation & market development • Broad based growth across brands • Natural care continues to do well • Green Tea sustains its strong growth momentum Bru Coffee registers another quarter of double digit growth 18
Slide 19: Packaged Foods: Double digit growth
Packaged Foods Double digit growth Sustained volume led growth in Kissan, Knorr and Kwality Walls Focus on market development continues Innovations across brands adding to the portfolio • Premium range of Kissan Jams • New range of Knorr wraps and rolls mix • Magnum ‘Choco Brownie’ and Cornett
Slide 20: Pureit: Double digit growth
Pureit Double digit growth Portfolio extended to play in the wider market • Growth driven by the RO devices • Pureit Ultima with Oxytube launched in quarter Modern Trade and Pureit Perfect Stores lead growth E-commerce channel continues to grow rapidly 20
Slide 21: MQ 2016 Results: Growth & Margin
MQ 2016 Results: Growth & Margin Rs Crores Particulars MQ'16 MQ'15 Growth % Net Sales* 7809 7555 3 PBIT 1379 1248 11 PBIT margin (%) 17.7 16.5 115 bps • Reported Domestic Consumer growth at 4%; underlying volume growth at 4% • Intrinsic growth at 5% (net impact from phase out of excise benefits and
Slide 22: MQ 2016 Results: PBIT to Net Profit
MQ 2016 Results: PBIT to Net Profit Rs Crores Particulars MQ’16 MQ’15 Growth % PBIT 1379 1248 11 Add : Other Income 82 98 Less : Finance Costs 0 0 Exceptional Items – Credit / (Charge) 43 179 PBT 1504 1525 Less : Tax 415 507 Net Profit 1090 1018 7 • Other income includes – o Interest, dividend and g
Slide 23: MQ 2016 Summary
MQ 2016 Summary Profitable volume-led growth sustained • Reported Domestic Consumer growth at 4%, underlying volume growth at 4% o Intrinsic growth at 5% (net impact from phase out of excise benefits and one-off credits: -90bps) • PBIT margin expands +115 bps o Impacted by phase out of excise benefi
Slide 24: Financial Year Ending 31st March 2016
FINANCIAL YEAR ENDING 31ST MARCH 2016 24
Slide 25: FY 2015-16: Profitable volume-led growth sustained
Financial Year ending 31st March 2016 Profitable volume-led growth sustained Rs Crores Particulars FY 2015-16 FY 2014-15 Growth % Net Sales 31,425 30,171 4 PBIT 5,409 4,922 10 PBIT margin (%) 17.2 16.3 90 bps PAT bei 4,078 3,843 6 Exceptional Items -39 664 Net Profit 4,082 4,315 -5 • Domestic Consum
Slide 26: FY 2015-16: Strong track record of cash generation sustained
Financial Year ending 31st March 2016 Strong track record of cash generation sustained Higher cash from operations; another year of > 5000 crores • Approval to the Scheme for transfer of General Reserve Balance to P&L Account underway Higher dividends paid* (FY16: 3998 crores, up 570 crores) Cas
Slide 27: FY 2015-16: Dividend
Financial Year ending 31st March 2016 Dividend Particulars FY 2015-16 FY 2014-15 Dividend Per Share 16 15 Interim 6.5 6 Final* 9.5 9 No. of Share (Crs.) 216.39 216.35 Total Dividend (Rs. Crs.) 3462 3245 Div. Dist. Tax (Rs. Crs.) 677 636 Total Div. Outflow (Rs. Crs.) 4140 3881 27 *Final dividend numb
Slide 28: FY 2015-16: Broad based volume growth across segments
Financial Year ending 31st March 2016 Broad based volume growth across segments Growth in % Intrinsic* Underlying Segmental Categories Sales Growth Volume Growth Profit Growth Soaps and Detergents 2 6 5 Personal Products 10 6 14 Beverages 7 4 6 Packaged Foods 12 8 52 Total Business 5 6 10 28 * Intri
Slide 29: FY 2015-16: Segment highlights
Financial Year ending 31st March 2016 Segment highlights SOAPS AND DETERGENTS PERSONAL PRODUCTS BEVERAGES PACKAGED FOODS • Volume led growth in a • Healthy double digit intrinsic • Steady performance in a • Ten successive quarters of deflationary environment growth benign commodity context double di
Slide 30: Update on M&A transactions
Update on M&A transactions Divestment of Modern Acquisition of Sale of Rice Brands Bakery Business Indulekha Hair Oil • Agreement signed on 8th • Agreement signed on 17th • Agreement signed on 17th September 2015 December 2015 March 2016 • Transaction concluded in • Transaction concluded on • Transa
Slide 31: FY 2015-16: Delivered on strategy
Financial Year ending 31st March 2016 Delivered on strategy RESPONSIBLE GROWTH Continued progress on our Sustainability priorities USG 4% | 6% UVG | PBIT +10% | Cash > Rs. 5000 Cr 31
Slide 32: Near term outlook
Near term outlook • Market growth improvement largely dependent on Rural • Pick-up in commodity costs • Continued focus on driving volume led growth with improvement in operating margin • Strategy unchanged: Consistent, Competitive, Profitable, Responsible Growth 32
Slide 33: For more information & updates
For more information & updates VISIT OUR WEBSITE HUL INVESTOR APP 33