Hindustan Unilever Limited · NSE:HINDUNILVR

Hindustan Unilever — Q1 FY2017-18 Earnings Presentation

22 slides from Hindustan Unilever's earnings presentation, Jul 18, 2017

  1. Slide 1: Investor Presentation filing letter to stock exchanges

    Hindustan Unilever Lumited Hindustan Unilever Limited Unilever House B D Sawant Marg Chakala, Andheri East Mumbai 400 099 Tel: +91 (22) 3983 0000 Web: www.hul.co.in CIN: L15140MH1933PLC002030 18th July, 2017 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INEO30A01027 BSE Limited, National Stock Exchan

  2. Slide 2: JQ '17 Results Presentation: 18th July 2017

    Hindustan Unilever Limited JQ ‘17 Results Presentation : 18th July 2017 1

  3. 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

  4. Slide 4: Agenda

    Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 Looking Ahead 3

  5. 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

  6. Slide 6: JQ'17: Market context

    JQ’17: Market context  In the run up to GST, cautious sentiment in trade despite high promotional intensity  Input costs stable  Rural markets remained challenging 5

  7. Slide 7: HUL JQ'17: Resilient & Profitable growth delivered in a volatile environment

    HUL JQ’17: Resilient & Profitable growth delivered in a volatile environment  Domestic Consumer growth 6%; underlying volume growth flat  Price growth from actions in previous quarters  Trade spends and stocks optimized to manage GST transition  EBITDA at Rs. 1,866 Crores up by 14%; margin up 16

  8. Slide 8: Differential impact on segments

    Differential impact on segments  Home Care & Refreshment continued their strong growth momentum  Personal Care & Foods impacted disproportionately by thinning of trade pipelines, particularly in CSD CSD : Canteen stores department Sales growth = Segment Turnover growth excluding Other Operational

  9. Slide 9: HUL's transition to GST has been swift and smooth

    HUL’s transition to GST has been swift and smooth Invoicing to trade Internal systems Vendors  No disruption in trade  HUL systems working  In-bound supplies normal servicing normally from Day 1  Payments from the  First GST invoice at 1st working day 00:08 hrs on 1st July 8

  10. Slide 10: GST led pricing actions start to land

    GST led pricing actions start to land Net benefits at a company level to be passed on Pricing landed with impactful press advertisements from Day 1 Output tax changes Detergent bars Skin cleansing Toothpastes Hair oils Detergent powders Hair Care (excl. hair oil) Skin creams & colour cosmetics Insta

  11. Slide 11: Initial days – Issues & Our response

    Initial days – Issues & Our response Consumer Trade Footfalls and off-takes normal, Sections of trade, particularly however trade pipelines are thin wholesale and small retailers still unclear on rules, delaying return to normalcy Response Response Restore trade pipelines on priority Step up communi

  12. Slide 12: 'Accounting' impact of GST (w.e.f SQ 2017)

    ‘Accounting’ impact of GST (w.e.f SQ 2017) Reporting for excise Impact for input taxes & fiscal Pre GST Post GST Pre GST Post GST Excise a cost; Turnover is net of GST Input tax credit 1. Costs lower as full input tax credit availed Turnover gross of excise availed partially 2a. CENVAT availed fully

  13. Slide 13: Continued focus on innovations

    Continued focus on innovations 12

  14. Slide 14: Progressively building the naturals portfolio

    Progressively building the naturals portfolio Within the existing portfolio Building specialist brands Building a master brand Multiple natural variants introduced Launched 12 SKUs under Citra in the in existing brands across categories Face Care segment 13

  15. Slide 15: 'Lever Ayush' going national

    ‘Lever Ayush’ going national Oral Care Skin Care* Body Lotions Hand Wash Hair Care Soaps After a successful South launch, Lever Ayush now being rolled out nationally * Includes Face wash & Face creams 14

  16. Slide 16: Home Care

    Home Care  Strong growth across mass & premium laundry  Surf sustains robust volume led growth momentum  Water witnessed a muted quarter due to challenges in trade, pre - GST 15

  17. Slide 17: Personal Care

    Personal Care  Growth subdued due to thinning of trade pipelines, particularly in CSD  Broad based growth across all brands in Personal Wash  Fair & Lovely relaunch well received  Colour cosmetics delivered yet another robust quarter 16

  18. Slide 18: Foods & Refreshment

    Foods & Refreshment  Refreshments delivered broad based growth  Tea continues to deliver robust double- digit growth by leveraging WiMI  Soups & Jams drive category growth for Foods WiMI: Winning in Many Indias 17

  19. Slide 19: Strong margin delivery aided by savings agenda

    Strong margin delivery aided by savings agenda Thinking and delivering end to end savings of ~6% of turnover 18

  20. Slide 20: JQ'17: Results Summary

    JQ’17: Results Summary Rs. Crores  Domestic Consumer growth at 6%  Exceptional item in the base includes one-time write back of provision for employee benefits 19

  21. Slide 21: Looking ahead

    Looking ahead Near term  Expect gradual improvement in rural demand  Trade stocks to build back to normative levels over the next few months  Input costs to remain stable Our strategy  Focus on volume driven growth and improvement in operating margin  Consistent, Competitive, Profitable, Respon

  22. Slide 22: For more information & updates

    For more information & updates Visit our website HUL Investor App 21

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