Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q4 2009 Earnings Presentation
15 slides from Hindustan Unilever's earnings presentation, Jan 29, 2010
Slide 1: Results – DQ '09 Investor Presentation
Results – DQ ’09 29th Jan 2010 Investor Presentation Safe Harbour Statement ThisRelease/Communication,exceptforthehistoricalinformation,maycontainstatements, includingthewordsorphrasessuchas‘expects,anticipates,intends,will,would,undertakes, aims, estimates, contemplates, seeks to, objective, goal,
Slide 2: Agenda; Market Context: DQ'09
Agenda • Market Context • DQ’09 Highlights • Category Overview • Financial Results • Looking Ahead DQ'09 Results - 29th Jan‘10 Market Context : DQ'09 • FMCG market continues to grow, albeit at a slower pace • Lower pricing component due to Laundry price reductions • Downtrading in Laundry and Tea •
Slide 3: Performance highlights; Results Summary: DQ'09
Performance highlights • Volume growth accelerates through the year to 5% • Sales growth 5%; • Soaps shares stabilise – 10 bps increase • Volumes shares grow in Laundry – 100 bps in powders and 60 bps in Bars • Personal Products growth momentum sustained through the year • Underlying operating margi
Slide 4: Segmental highlights – DQ'09
Segmental highlights – DQ’09 • Volume led growth both in Soaps & Detergents • Rejuvenated Soaps portfolio delivers volume growth; Recent launches meet good consumer response • Actions in Mass Laundry powders yield positive results; deliver double digit volume growth • Personal Products maintains gro
Slide 5: Volume Growth Accelerates; Strong investment behind brands
Volume Growth Accelerates Underlying Volume Growth (QoQ) 4.6 % 2.3 2 1 -4.2 DQ'08 MQ'09 JQ'09 SQ'09 DQ'09 Return to Volume Growth DQ'09 Results - 29th Jan‘10 Strong investment behind brands A&P as a % of Net Sales % 14.1 13.5 12.5 11.3 8.6 DQ '08 MQ '09 J Q'09 SQ'09 DQ'09 UVG +2.3% -4.2% +2.0% +1.0%
Slide 6: Strengthening the portfolio; Strengthening Mass Laundry Portfolio
Strengthening the portfolio Fabric Personal Shampoo Skin Tooth Tea Coffee Proc Ice Wash Wash Paste Foods Creams Premium Popular Mass Recent introductions/relaunches DQ'09 Results - 29th Jan‘10 Strengthening Mass Laundry Portfolio Price reductions on Brand investments - Wheel Powders and Bars SOV % S
Slide 7: Home Care and Soaps category highlights
Home Care category highlights • Sequential volume share improves +100 bps Powder; +60 bps Bars • Strong volume growth in powder; Bar portfolio strengthened • Interventions in Wheel Powders meet good response • Results visible in Wheel market share gains DQ'08 Value Share SQ'09 DQ'09 38.7 Laundry 35.
Slide 8: Skin Care, Hair and Oral category highlights
Skin Care category highlights • Strong volume led growth in Face Care driven by FAL and Pond’s • Pond’s White Beauty leads strong growth in premium skin lightening segment • FAL grows well with successful launch of Winter Fairness Cream • In Hand and Body care; both Vaseline and Pond’s Talc grow wel
Slide 9: Beverages and Processed Foods category highlights
Beverages category highlights • Tea Growth driven by pricing – At premium end, Taj Mahal does well; tea bags grow rapidly – Downtrading in Tea due to increase in commodity cost – Market Share eroded due to absence in discount segment • Brooke Bond Sehatmand being launched; new differentiated offerin
Slide 10: Ice Cream highlights; Water Purifier – Business Update
Ice Cream category highlights • Category gains momentum – Impulse and Take Home lead growth – Launch of Litchi Zap • 85 Swirl’s parlours now in operation; positive consumer response DQ'09 Results - 29th Jan‘10 Water Purifier – Business Update • Pure-it continues to grow strongly through new channels
Slide 11: Superior cost management; December Quarter '09 financial highlights
Superior cost management through buying efficiencies CPO Benzene Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Tea Levers -Buying Efficiency -CEPs -Operating leverage 8 8 8 9 9 9 8 9 '0 '0 '0 '0 '0 '0 '0 '0 Q JQ SQ Q Q JQ SQ Q M M D D COGS down -48
Slide 12: Results: DQ'09; Exceptional Items
Results: DQ’09 Rs Crores DQ'09 DQ'08 Growth% Net Sales 4504 4308 4.6 EBITDA 788 764 3.1 PBIT 742 723 2.6 PBIT margin (%age) 16.5 16.8 - Underlying PBIT 757 718 5.4 Underlying PBIT margin(%age) 16.8 16.7 Exceptional Items 44.5 (38.5) - PBT bei 781 753 3.8 PBT 826 714 15.6 PAT bei 599 612 (2.1) Net Pr
Slide 13: Analysis of Net Profit – DQ'09; In Summary
Analysis of Net Profit –DQ’09 Rs Crores DQ'09 DQ'08 Growth% Net Profit 649 616 5.4 Less: Exceptional/Extraordinary Items (Net of Tax) 50 3 Profit After Tax bei 599 612 (2.1) Less: Foreign Exchange (MTM) Impact (Net of Tax)* (10) 3 Profit after Tax before Excep./ Extraordinary items 609 609 0.1 and M
Slide 14: Looking Ahead; Thank you
Looking Ahead • FMCG market growth to sustain • Short term impact of food inflation • Overall growth opportunity remains strong • Competitive environment intensifies significantly • Especially in Laundry, Hair & Skin • Reflected in increased media spends • Several new entries in emerging segments •
Slide 15: Results – DQ '09 Investor Presentation
Results – DQ ’09 29th Jan 2010 Investor Presentation 15