Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 2012 Earnings Presentation
29 slides from Hindustan Unilever's earnings presentation, Jul 24, 2012
Slide 1: Results JQ'12 Investor Presentation – July 24, 2012
Results JQ’12 Investor Presentation – July 24, 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 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: JQ'12 – Business environment
JQ’12 – Business environment FMCG markets grow in double digits • Soaps and Detergents growth led by pricing Competitive intensity sustains Inflationary pressures continue • Currency offsets commodity 5
Slide 6: Inflationary pressures continue; currency offsets commodity
Inflationary pressures continue Currency offsets commodity Crude* softens USD/INR under pressure PFAD^ up despite Palm softening 119 117 56.0 977 54.5 847 826 752 790 112 51.9 50.3 109 109 44.7 JQ 11 SQ 11 DQ 11 MQ 12 JQ 12 JQ'11 MQ'12 Apr-12 May-12 Jun-12 JQ 11 SQ 11 DQ 11 MQ'12 JQ'12 Source: Bloom
Slide 7: JQ'12 - Strong Performance
JQ’12 - Strong Performance Growth profitable and broad based Domestic Consumer business grows by 18.7% • Strong 9% Underlying Volume Growth • Double digit growth across both Home & Personal Care and Foods • Growth continues to be led by Modern Trade and Rural Operating Profit grows by 30%; margi
Slide 8: Broad based growth
Broad based growth Growth % JQ ’12 Soaps & Detergents 23.7 Personal Products 16.7 Beverages 7.4 Packaged Foods 17.3 Domestic FMCG^ 18.7 18.7 Domestic Consumer^ ^ Excludes Other Operational Income Domestic Consumer business = Domestic FMCG + Water 8
Slide 9: Sustaining strong volume led growth
Winning consistently Sustaining strong volume led growth UVG UPG FH 2011-12 SH 2011-12 JQ'12 Domestic Consumer Business Growth Domestic Consumer business = Domestic FMCG + Water UVG: Underlying Volume Growth; UPG: Underlying Price Growth 9
Slide 10: Continued focus on innovations
Winning with brands Continued focus on innovations Axe soap bars Engineered for guys Fair and Lovely advanced multi vitamin with benefits of a skin treatment Pepsodent Expert Pepsodent protection range Mouthwashes Vaseline moisture therapy Heel Cream Selection 100 ml cups in four international flavo
Slide 11: Bushfire 2012
Winning in the marketplace Bushfire 2012 6000 EMPLOYEES ACROSS INDIA 48000 STORES CONVERTED PERFECT 11
Slide 12: Investing for growth
Media intensity sustains Investing for growth Industry GRP – indexed chart Overall media intensity up sequentially 112 109 Competitive spends maintained 105 107 103 • A&P spends up Rs. 187 crs to Rs. 820 crs 100 o +160 bps to 13.1% of sales MQ'11 JQ'11 SQ'11 DQ'11 MQ'12 JQ'12 360 degree engageme
Slide 13: Operating Margin expansion
Operating Margin expansion Recovering the dip in base year Operating Margin % 16.5 15.6 15.0 14.5 14.3 13.9 13.7 13.9 13.1 13.3 12.6 12.7 12.6 12.1 MQ'09 MQ'10 MQ'11 MQ'12 DQ'09 DQ'10 DQ'11 JQ'09 JQ'10 JQ'11 JQ'12 SQ'09 SQ'10 SQ'11 Benefitted from low base 13
Slide 14: Category Highlights
CATEGORY HIGHLIGHTS
Slide 15: Skin Cleansing
Skin Cleansing Double digit growth across all segments Growth ahead of market with strong volumes All key brands grow in double digits • Dove and Pears drive strong premium segment growths • Lux growth momentum further accelerates Axe Bar launched during the quarter Liquids continue on high
Slide 16: Home Care
Home Care Strong broad based growth Laundry: Growth ahead of market • All brands and formats grow in double digits • Strong performance in premium portfolio • Surf and Rin deliver double digit volume growth • Comfort more than doubled during the quarter Magic water saver launched in a test marke
Slide 17: Skin Care
Skin Care Sustained double digit volume-led growth Double digit growth in FAL, Pond’s and Lakme • Broad based growth in FAL; core relaunched during the quarter • Pond’s performs well at the premium end led by Age Miracle • Lakme strengthened with the relaunch of Perfect Radiance range o Capsule Tr
Slide 18: Fair and Lovely advanced multi vitamin relaunch
Fair and Lovely advanced multi vitamin relaunch Not just a cream, it’s a Fairness Treatment! 18
Slide 19: Hair and Oral
Hair and Oral Volume led double digit growth Hair - double digit growth across formats • Dove momentum sustained; volumes double again • Conditioners continue to lead market development Oral – growth stepped up; led by Pepsodent • Pepsodent Expert Protection range launched in end June 2012 • For
Slide 20: Beverages
Beverages Growth led by Coffee Tea growth led by Modern Trade • Red Label delivered volume led double digit growth • Taj Mahal Tea Bags & Lipton Ice Tea do well • Taaza under pressure Strong performance in Coffee sustained • Growth broad based; across Instant and Roast & Ground • Innovations con
Slide 21: Packaged Foods
Packaged Foods Driven by core Kissan – growth led by volumes • Ketchup delivers 11th consecutive quarter of double digit growth o Portfolio expanded with Sweet and Spicy launch Knorr – mixed performance • Double digit growth in Soups • Step up needed in balance portfolio Kwality Walls continue
Slide 22: Pureit
Pureit Business on track Business delivers double digit growth • Marvella RO continues to grow volumes • 3000 litres germ kill kit grows strongly Pureit Advanced with double protection launched Leveraging IT to step up execution and efficiencies 22
Slide 23: JQ'12 – Results
JQ’12 – Results FMCG exports demerged – reported numbers not comparable Rs Cr HUL (as reported) HUL (ex FMCG exports) Particulars JQ’11 JQ’12 Growth% JQ’11 JQ’12 Growth% Net Sales 5496 6250 13.7 5233 6250 19.4 PBITDA 754 966 28 728 966 33 PBIT 698 909 30 677 909 34 PBIT margin (%) 12.7 14.5 180 bps
Slide 24: JQ'12 – Exceptional items
JQ’12 – Exceptional items Rs Cr Particulars JQ’11 JQ’12 Assets Sale 51 607 Others 8 (2.5) Total 59 605 JQ ’12 assets sale includes sale of Gulita (Mumbai) and Whitefield (Bangalore) 24
Slide 25: JQ'12 – PBIT to Net Profit
JQ’12 – PBIT to Net Profit Rs Cr Particulars JQ’11 JQ’12 Growth PBIT 698 909 30% Add : Other Income* 51 219 Less : Finance Costs (0) (5) Exceptional Items – Credit / (Charge) 59 605 PBT 807 1727 114% Less : Tax # (180) (396) Net Profit 627 1331 112% • * Other Income includes – o Interest income, div
Slide 26: JQ'12 summary
JQ’12 summary Strong 18.7%* growth with 9% UVG in a challenging environment Operating Profit up 30%; margin recovery (+180 bps) PAT (bei) grows by 48% Strategy on track and delivering * Domestic Consumer Business (Domestic FMCG + Water); UVG – Underlying Volume Growth 26
Slide 27: Looking ahead
Looking ahead Medium Term • Consumer growth drivers and market trends positive Near Term Challenges • Monsoon • Currency • Inflation Competitive intensity will sustain 27
Slide 28: We remain committed to our strategy
We remain committed to our strategy Strategic framework Sustainable Living Plan Goals Consistent Growth Competitive Growth Profitable Growth Responsible Growth 28
Slide 29: Results JQ'12 Investor Presentation – July 24, 2012
Results JQ’12 Investor Presentation – July 24, 2012 For more information please visit http://www.hul.co.in 29