Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Hindustan Lever — Q4 2005 Earnings Presentation
20 slides from Hindustan Unilever's earnings presentation, Feb 14, 2006
Slide 1: HLL Results – DQ ’05 Analyst Meet
February 14, 2006 HLL Results – DQ ’05 Analyst Meet 14 February 2006 Highlights DQ’05 • Sales grow by 14.4% for the quarter • FMCG grows by 15.8%; HPC (+17%), Foods (+9%) • Growth broadbased and ahead of market • A&P spends higher by 49% • PBIT grows by 13.5% • PAT and Net Profit grow by 22.7% and 5
Slide 2: Growth momentum sustained DQ’05
February 14, 2006 Growth momentum sustained DQ’05 Sales Growth % 14.4 13.8 10.3 6.9 0.7 DQ'04 MQ'05 JQ'05 SQ'05 DQ'05 Underlying volume growth at 7.0% DQ’05 Results - 14 Feb ‘06 HLL (FMCG) growth DQ’05 FMCG Sales Growth % 15.9 15.8 11.9 7.1 1.0 DQ'04 MQ'05 JQ'05 SQ'05 DQ'05 DQ’05 Results - 14 Feb ‘0
Slide 3: Sales summary DQ’05
February 14, 2006 Sales summary DQ’05 Rs Crores DQ'05 DQ'04 Growth% HPC 2141 1826 17.3 Foods 442 405 9.1 FMCG 2583 2231 15.8 Exports 357 320 11.6 Others 34 50 (31.4) Net Sales 2974 2601 14.4 • Sales include impact of merger of subsidiaries / demerger of plantations DQ’05 Results - 14 Feb ‘06 Strong
Slide 4: All key HPC categories grow DQ’05
February 14, 2006 All key HPC categories grow DQ’05 Laundry Shampoo Skin Personal Wash Toothpaste Total HPC growth at 17.3% DQ’05 Results - 14 Feb ‘06 HPC - Category performance - Laundry DQ’05 • Strong growth maintained • Rin and Wheel grow double digits; Surf flat • Wheel becomes a Rs.1000 crore b
Slide 5: HPC - Category performance - Shampoo and Skin
February 14, 2006 HPC - Category performance - Shampoo DQ’05 • Strong value growth, primarily volume led • All brands - Sunsilk, Clinic Plus, Clinic All Clear grow well • Sunsilk Pink (“Silky Strength”) relaunched as “Thick & Strong” under the proposition of reduction in ‘thinning of hair’ • Launch
Slide 6: HPC - Category performance - Personal Wash and Toothpaste
February 14, 2006 HPC - Category performance - Personal Wash DQ’05 • Volume led growth momentum maintained • Lux records strong growth in 75th year – Gains 100 bps share in 6 months – Introduction of 2 limited edition variants - Chocolate seduction & Aromatic glow • Lifebuoy continues its steady gro
Slide 7: Foods Topline DQ’05
February 14, 2006 Foods Topline DQ’05 Tea Coffee Icecream Salt Atta Culinary Foods growth at 9.1% DQ’05 Results - 14 Feb ‘06 Foods - Category performance - Beverages DQ’05 • Tea achieves modest growth on the back of an impressive DQ’04 performance, declining markets and falling commodity prices • Br
Slide 8: Foods - Processed Foods and Icecream
February 14, 2006 Foods - Category performance - Proc Foods DQ’05 • Strong growth albeit on a low base, aided by revamped supply chain and significant improvement in stock freshness • All brands (Knorr, Kissan, Annapurna) and product categories grow • Knorr relaunched with a superior mix; new varian
Slide 9: Key Innovations/Activations - SH’05
February 14, 2006 Key Innovations/Activations - SH’05 Lux Chocolate & Aromatic Lux Har Star Lucky Star Rin Advanced Jasmine Fresh Lakme Hairnext New Sunsilk variants CAC Hairfall Defense Lakme Lakme Mosaic 9 to 5 lip color collection DQ’05 Results - 14 Feb ‘06 Key Innovations/Activations - SH’05 Fai
Slide 10: Exports Topline DQ’05
February 14, 2006 Exports Topline DQ’05 HPC Foods Total FMCG Specialty (Non-FMCG) DQ’05 Results - 14 Feb ‘06 Investment behind brands maintained DQ’05 Rs Crores 52% FMCG A&P 172 261 % of NPS 7.8 10.1 261 172 DQ'04 DQ'05 DQ’05 Results - 14 Feb ‘06 10
Slide 11: Results DQ’05
February 14, 2006 Results DQ’05 Rs Crores DQ'05 DQ'04 Growth% PBIT 488 430 13.5 PBIT margin 16.4% 16.5% Financial Income (Net) 23 16 41.7 PBT 511 446 14.5 PAT 439 358 22.7 Exceptional Items 82 (24) Net Profit 521 334 56.1 • PAT higher due to tax incentives Includes impact of merger of subsidiaries /
Slide 12: Understanding PBIT
February 14, 2006 Understanding PBIT DQ’05 DQ’05 DQ’04 PBIT margin (%) 16.4 16.5 •Margin improvements from: – Selective price increases – Savings from cost effectiveness programs – Better product mix •Offset by: – Aggressive brand innovation spends – Investments in A&P ( Rs 88 crores) – Cost increas
Slide 13: Results - Exceptional items (Net of tax) DQ’05
February 14, 2006 Results - Exceptional items (Net of tax) DQ’05 Rs crores PARTICULARS DQ’05 Profit on transfer of Plantation divisions to subsidiaries 89 Profit on disposal of trade investment 44 One time reduction in tax liability on account of integration of TOCDL 23 Provision for diminution in v
Slide 14: 2005 Highlights
February 14, 2006 2005 Highlights • Double digit topline growth (+11.4%) after a gap of 6 years • FMCG grows by 12.7%; HPC (+13.9%), Foods (+7.8%) • Growth broadbased and ahead of market • A&P spends higher by 20% • PBIT grows by 1.1% • PAT and Net Profit grow by 12.9% and 17.6% • EPS grows by 17.6%
Slide 15: Broad Based Growth in HPC & Foods 2005
February 14, 2006 Broad Based Growth in HPC & Foods 2005 Value Growth % Beverages Tea Coffee Ice Cream Ice Cream Pr Foods Salt Atta Culinary Total Foods growth at 8% DQ’05 Results - 14 Feb ‘06 Investment behind brands maintained 2005 Rs Crores 20% Total A&P 823 985 % of NPS 9.7 10.3 985 823 2004 200
Slide 16: Sales and Results - 2005
February 14, 2006 Sales and Results - 2005 2005 Rs Crores 2005 2004 Growth% Sales 11061 9927 11.4 PBIT 1471 1455 1.1 PBT 1604 1505 6.6 PAT 1355 1199 12.9 Net Profit 1408 1197 17.6 EPS (Rs) 6.40 5.44 17.6 Includes impact of merger of subsidiaries / demerger of plantations DQ’05 Results - 14 Feb ‘06 2
Slide 17: Dividend
February 14, 2006 Dividend • Board recommends a final dividend of Rs 2.50 per share Dividend Per Share of Re 1 2005 2004 Interim 2.50 2.50 Distribution Tax 0.35 0.33 Total Interim Dividend 2.85 2.83 Final 2.50 2.50 Distribution Tax 0.35 0.33 Total Final Dividend 2.85 2.83 Total Distribution (Incl Ta
Slide 18: Capability building - Few examples
February 14, 2006 Capability building - Few examples 2005 • Key customer measures improve by 35% • Distributor stocks reduction achieved - 15% • Continuos Replenishment System (CRS) cover 100% of our business • In Beverages, Household Care, Popular Detergents categories, over 85% of customer orders
Slide 19: To sum up.. Looking ahead..
February 14, 2006 To sum up.. 2005 • Return to topline growth (double-digit) • Substantial increase in brand building investments • Growth ahead of market; partly reflected in shares; continuing agenda • Good progress in competitive categories of Laundry & Hair; ongoing battle • Inflationary commodi
Slide 20: Thank you
February 14, 2006 Standard background – white/icon Thank you For more information, please visit http://www.hll.com DQ’05 Results - 14 Feb ‘06 HLL Results – DQ ’05 Analyst Meet 14 February 2006 20