Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2016-17 Earnings Presentation
28 slides from Hindustan Unilever's earnings presentation, Jul 18, 2016
Slide 1: Investor Presentation filing letter to BSE and NSE
18th July, 2016 Stock Code BSE; 500696 NSE: HINDUNILVR ISIN: INEO30A01027 BSE Limited, Corporate Relationship Department, 2nd Floor, New Trading Wing, Rotunda Building, P.J. Towers, Dalal Street, Mumbai — 400 001 Dear Sir, Sub: Investor Presentation ° ° Wile Limited Hindustan Unilever Limited Unilev
Slide 2: Hindustan Unilever Limited JQ 2016 Results Presentation
Hindustan Unilever Limited JQ 2016 Results Presentation, 18th July 2016 1
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: Agenda
Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 Looking Ahead 3
Slide 5: Clear and compelling strategy
Clear and compelling strategy Strategic Framework Sustainable Living Plan Goals Consistent Growth Competitive Growth Profitable Growth Responsible Growth 4
Slide 6: JQ 2016: Quarter Summary
JQ 2016: Quarter Summary Challenging business environment Market value growth Market growth further slows down – volume and value Higher commodity costs Competitive activity remains high JQ'15 MQ'16 JQ'16 Business tracking ahead of market with sustained margin improvement 5
Slide 7: JQ 2016: Profitable volume-led growth sustained
JQ 2016 : Profitable volume-led growth sustained Domestic Consumer growth at 4%, underlying volume growth at 4% Impact of phase out of Excise Duty benefits on topline -40 bps Operating Profit (PBIT) at Rs. 1543 crores, up 7%; margin expands +70 bps Impact of phase out of Excise Duty benefits
Slide 8: New Reporting Segments
New Reporting Segments Old Segments New Segments Fabric Wash • Fabric Wash Home Care Soaps and Detergents • • Household Care • Household Care • Personal Wash • Water • Oral Care • Personal Wash Personal Care Personal Products • Skin Care • Oral Care • Hair Care • Skin Care • Deodorant • Hair Care •
Slide 9: Broad based growth across segments in a slowing market
Broad based growth across segments in a slowing market Segments Sales Growth (%) Home Care 7 Personal Care 2 Refreshment 5 Foods 4 Domestic Consumer 4 • Home Care: Growth led by healthy volumes • Personal Care: Step up in Personal Products, offset by deflation in Personal Wash • Refreshment: Continu
Slide 10: Continued focus on innovations
Continued focus on innovations 9
Slide 11: Impactful 360 activation
Impactful 360 activation FAL: Association with TV Series Surf Excel: Ready for Life Bru: Summer thrills with taste Axe: Movie tie up Dove: Break the rules of Beauty Knorr: World on a plate 10
Slide 12: Home Care
Home Care Fabric Wash | Household Care | Water 11
Slide 13: Home Care
Home Care Growth led by healthy volumes Fabric Wash: Growth driven by the premium segment Surf, our largest brand, maintains its strong growth momentum Household Care: Vim liquids continues to do well Water: Strategic interventions starting to deliver; robust devices growth 12
Slide 14: Personal Care
Personal Care Personal Wash | Skin Care | Hair Care | Oral Care | Deodorants | Color Cosmetics 13
Slide 15: Personal Care
Personal Care Step up in Personal Products, offset by deflation in Personal Wash Personal Wash: Lifebuoy, Pears and Dove drive volume growth Skin Care: Growth led by the premium segment BB & CC creams performing very well Hair Care: Volume led growth sustained; broad based across brands 14
Slide 16: Personal Care (contd.)
Personal Care ….(contd.) Step up in Personal Products, offset by deflation in Personal Wash Oral Care: Subdued performance Sampling on Pepsodent core underway to drive trials on ‘best ever flavor’ Colour Cosmetics: Lakme delivers strong innovation led growth on premium make-up Deodorants: Ax
Slide 17: Indulekha acquisition completed in-quarter
Indulekha acquisition completed in-quarter 16
Slide 18: Refreshment
Refreshment Tea | Coffee | Ice Cream & Frozen Desserts 17
Slide 19: Refreshment
Refreshment Steady growth Tea: Green Tea and Natural Care lead growth, driven by market development Coffee: Strong competitive position maintained in a deflationary cost environment Ice Cream & Frozen Desserts: Another quarter of robust growth 18
Slide 20: Foods
Foods 19
Slide 21: Foods
Foods Healthy underlying growth driven by market development Kissan sustains strong growth on Ketchups; Jams impacted by one-off event Knorr delivers robust growth on Instant Soups and Noodles 20
Slide 22: JQ 2016: Results Summary
JQ 2016 : Results Summary Rs. Crores Particulars JQ’16 JQ’15 Growth % Sales 7,988 7,713 4 PBIT 1,543 1,437 7 Add : Other Income 108 123 Less : Finance Costs 6 5 Exceptional Items – Credit / (Charge) 71 10 PBT 1,715 1,565 10 Less : Tax 541 496 PAT bei 1,128 1,063 6 Net Profit 1,174 1,069 10 • Excepti
Slide 23: HUL Ind AS transition: Points to note
HUL Ind AS transition : Points to note 1 Relaxations provided by SEBI (5th July ’16) not availed SEBI Relaxation Details Published by HUL Mandatory only for 1 Quarter Comparatives All quarters published corresponding quarter of PY 2 FY15-16 (YTD) Comparatives Mandatory only in MQ’17 Published Limite
Slide 24: HUL Ind AS transition: Key impacts
HUL Ind AS transition : Key impacts JQ ’15 JQ ’16 IGAAP Ind AS Change Ind AS Net Sales (Rs cr.) 7973 7713 -261 7988 PBIT margin (%) 17.95% 18.63% + 68 bps 19.31% Net Profit margin (%) 13.28% 13.86% +58 bps 14.70% * A&P % Sales 14.47% 11.57% -289 bps 11.01% * A&P – Advertising and Promotion 23
Slide 25: Outlook
Outlook Near term market growth likely to remain muted; concern on recent volume trends Optimistic about medium term impact of Monsoon & 7th Pay Commission payouts Higher input costs likely Continued focus on driving volume led growth with improvement in operating margin Strategy unchanged
Slide 26: Update 1: New Capital Investment in Assam
Update 1: New Capital Investment in Assam Intend to set up a new manufacturing unit with an investment of about Rs.1000 crores Location planned near the existing factory in Doom Dooma, Upper Assam. Investment is subject to receipt of requisite approvals. New unit to be commissioned in early
Slide 27: Update 2: Intention to divest KCLL JV stake
Update 2: Intention to divest KCLL JV stake Intention to divest 50% shareholding in Kimberly-Clark Lever Pvt Ltd to JV partner, Kimberly-Clark Corporation (KCC) 50:50 JV formed in 1995; Baby & Child Care and Feminine Care business in India under the brands ‘Huggies’ and ‘Kotex’ Decision is in
Slide 28: For more information & updates
For more information & updates Visit our website HUL Investor App 27
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