Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2012-13 Earnings Presentation
30 slides from Hindustan Unilever's earnings presentation, Oct 26, 2012
Slide 1: September Quarter 2012 Results Presentation
September Quarter 2012 Results Presentation – October 26, 2012 1
Slide 2: Safe Harbour Statement
Safe Harbour 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
Slide 3: Agenda
Agenda 1 Strategy 2 Business Environment 3 Current Quarter & First Half Performance 4 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: SQ 2012 – Business Context
SQ 2012 – Business Context Challenging macro economic environment FMCG markets sustain levels of double digit growth • Soaps and Detergents growth continues to be led by pricing • Volume growth moderation in discretionary categories Volatile cost environment 5
Slide 6: Volatile Cost Environment
Volatile Cost Environment Crude holding steady USD/INR remains volatile PFAD^ softens Source: Bloomberg data and internal estimates 6 *$/barrel; ^$/tonne
Slide 7: SQ 2012 - Sustaining Robust Performance
SQ 2012 - Sustaining Robust Performance Growth profitable and broad based Domestic Consumer business grows by 16% • Strong 7% Underlying Volume Growth • Growth continues to be led by Modern Trade and Rural • Budget rationalization in Canteen Stores Department adversely impacts quarter growth Ope
Slide 8: Double digit growth in all segments
Double digit growth in all segments Growth % SQ ’12 Soaps & Detergents 22 Personal Products 12 Beverages 10 Packaged Foods 10 Domestic FMCG^ 16 16 Domestic Consumer^ ^ Excludes Other Operational Income 8 Domestic Consumer business = Domestic FMCG + Water
Slide 9: Winning with Brands
Winning with Brands Continued focus on innovations TRESemmé: For Salon style hair at home everyday Lakmé eyeconic range Bru Exotica Guatemala Surf Excel Easywash Closeup: Deep Action Clinic Plus: Milk Protein Comfort 1 Rinse Formula A++ Pureit Marvella UV with Advance Alert System Vim Anti Germ bar
Slide 10: Media Intensity Heightens
Media Intensity Heightens Investing for growth Overall media intensity significantly up; highest levels in 15 quarters Competitive spends maintained • A&P spends up Rs. 118 crores • +70 bps to 12.5% of sales • Brand investments stepped up in all FMCG segments • Focus on 360° engagement and ROMI
Slide 11: Category Highlights
CATEGORY HIGHLIGHTS
Slide 12: Skin Cleansing
Skin Cleansing Double digit growth across all segments All key brands grow in double digits • Dove and Pears continue to drive premiumization • Lux growth momentum sustained • Lifebuoy delivers one of its strongest quarters Liquids portfolio growth accelerates 12
Slide 13: Home Care
Home Care Strong broad based growth Laundry – All brands & formats grow in double digits • Sustaining momentum on premium portfolio • Surf and Rin deliver double digit volume growth • Fabric conditioners continue to drive market development • Comfort One Rinse launched Household Care - Double di
Slide 14: Skin Care
Skin Care Modest growth Double digit growth in Pond’s, Vaseline and Dove • Pond’s performs well at the premium end led by Age Miracle Fair & Lovely re-launch well received • Momentum on tubes sustained • Sachet price increase transition underway 14
Slide 15: Hair and Oral
Hair and Oral Growth steps up Hair: Broad based double digit growth • Dove Hair Fall Rescue range and Clinic Plus re-launched • TRESemmé range launched • Conditioners – growing acceptance, gaining consumer franchise Oral: Both toothpaste brands grow in double digits • Close-up re-launched during
Slide 16: TRESemmé: Salon Style Hair, at Home Everyday
TRESemmé Salon Style Hair, at Home Everyday 16
Slide 17: Beverages
Beverages Growth driven by Premium Tea & Coffee Tea growth led by Modern Trade • Double digit growth in the top end • Taaza growth revival on the back of re-launch Strong performance in Coffee sustained • Growth broad based; across Instant and Roast & Ground • Premium coffee momentum continues •
Slide 18: Red Label
Red Label Successful Interactive consumer campaign – 2.6 million+ callers 18
Slide 19: Packaged Foods
Packaged Foods Led by key brands Kissan – Double digit growth in Ketchup in non-CSD channels Knorr - Double digit growth in Soups • Actions underway to step up growth in balance portfolio Kwality Walls sustains double digit growth 19 CSD: Canteen Stores Department
Slide 20: Pureit
Pureit Double digit growth in a challenging environment Slowdown in consumer durables market Strengthening portfolio • Foray into the premium UV segment with ‘Marvella UV’ • ‘Marvella RO’ & Germ Kill Kits continue to grow well • ‘Advanced’ gaining strong consumer franchise Leveraging IT to dri
Slide 21: SQ 2012 – Results
SQ 2012 – Results FMCG exports demerged – reported numbers not comparable Rs Cr HUL (as reported) HUL (ex FMCG exports) Particulars SQ’11 SQ’12 Growth% SQ’11 SQ’12 Growth% Net Sales 5,516 6,155 11.6 5,266 6,155 16.9 PBITDA 827 977 18.2 797 977 22.6 PBIT 770 919 19.4 743 919 23.6 PBIT margin (%) 14.0
Slide 22: SQ 2012 - PBIT to Net Profit
SQ 2012 - PBIT to Net Profit Rs Cr Particulars SQ’11 SQ’12 Growth PBIT 770 919 19% Add : Other Income 81 149 83% Less : Finance Costs 1 6 Exceptional Items – Credit / (Charge) 44 2 PBT 895 1063 19% Less : Tax (206) (256) 25% Net Profit 689 807 17% • Other income includes interest income, dividend in
Slide 23: SQ 2012 – Summary
SQ 2012 – Summary Robust business results • 16% growth in Domestic Consumer business with 7% UVG • Operating Profit up 19%; margin expansion (+100 bps) • PAT (bei) grows by 23% Strategy on track and delivering 23 Domestic Consumer Business = Domestic FMCG + Water; UVG – Underlying Volume Growth
Slide 24: First Half 2012-13
FIRST HALF 2012-13
Slide 25: FH 2012-13: Delivered on Goals
FH 2012-13 Delivered on Goals Competitive growth Consistent growth Profitable growth Ahead of market Healthy volumes Margin expansion 25 Domestic Consumer business = Domestic FMCG + Water
Slide 26: FH 2012-13 Results
FH 2012-13 Results FMCG exports demerged – reported numbers not comparable Rs Cr HUL (as reported) HUL (ex FMCG exports) Particulars FH’11-12 FH’12-13 Growth% FH’11-12 FH’12-13 Growth% Net Sales 11,012 12,405 12.7 10500 12405 18.2 PBITDA 1,581 1,943 22.9 1525 1943 27.4 PBIT 1,468 1,828 24.6 1420 182
Slide 27: Interim Dividend
Interim Dividend FH’11-12 FY’11-12 FH’12-13 Particulars Interim Final Interim Dividend Per Share 3.5 4.0 4.5 No. of Share (Crs.) 216 216 216 Total Dividend (Rs. Crs.) 756 865 973 Div. Dist. Tax (Rs. Crs.) 123 140 158 Total Div. Outflow (Rs. Crs.) 879 1005 1130 27
Slide 28: Special Dividend
Special Dividend Special Dividend of Rs 8 per share (Face Value Re. 1) Paid out of Accumulated P&L Balance and Exceptional Income Funded from current cash balance Particulars Special Dividend Dividend Per Share 8.0 No. of Share (Crs.) 216 Total Dividend (Rs. Crs.) 1729 Dividend Distribution Ta
Slide 29: Looking Ahead
Looking Ahead HUL : Driven by a clear & compelling strategy Medium-Long Term • India growth potential • Consumer demand drivers intact • Opportunities from emerging trends Near Term Consistent Growth Competitive Growth • Challenging market environment Profitable Growth Responsible Growth • Inflation
Slide 30: September Quarter 2012 Results Presentation
September Quarter 2012 Results Presentation – October 26, 2012 30 For more information please visit http://www.hul.co.in
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