Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2009-10 Earnings Presentation
15 slides from Hindustan Unilever's earnings presentation, Jul 29, 2009
Slide 1: Results – JQ ’09 Investor Presentation
Results – JQ ’09 Investor Presentation 29th July 2009 Safe Harbour Statement ThisRelease/Communication,exceptforthehistoricalinformation,maycontainstatements, includingthewordsorphrasessuchas‘expects,anticipates,intends,will,would,undertakes, aims, estimates, contemplates, seeks to, objective, goal,
Slide 2: Market Context and Results Summary : JQ'09
Market Context : JQ'09 • FMCG markets continue to grow well • Strong growth in both Urban and Rural • Broad based across categories • In organised retail • De-stocking continues • No further outlet consolidation in JQ • Downtrading in few categories especially Laundry • Focus on consumer value in MQ
Slide 3: Key Actions from MQ’09
Key Actions from MQ’09…..(1) • Strengthen Brands & Portfolio • Continuous improvement of our mixes • Right pricing to deliver better consumer value • Time bound action plan for each category • Results visible progressively JQ'09 Results - 29th July‘09 Key Actions from MQ’09…..(2) • Compress Executio
Slide 4: June Quarter ‘09 highlights
June Quarter‘09 highlights (1) • Return to volume growth • Strong performance in Personal Products and Foods • Time bound actions plans • Strengthening and deploying full portfolio - To cover all price & benefit positions in key categories • Pricing actions taking effect; residual transition impact
Slide 5: FMCG Sales Trend and Sales Performance
FMCG Sales Trend Sales Growth% Vol Growth % 18.8 % 21.6 % 21.2 % 11.8 % 12.8 % JQ'08 SQ'08 DQ'08 MQ'09 JQ'09 UVG 8.3% 6.8% 2.3% -4.2% 2.0% JQ'09 Results - 29th July‘09 Sales Performance % 23.5 22.5 20.8 19.8 17.5 17.3 14.1 13.2 11.5 11.9 JQ'08 SQ'08 DQ'08 MQ'09 JQ'09 HPC Foods JQ'09 Results - 29th J
Slide 6: Investment behind Brands and PBIT Margin Trends
Investment behind Brands A&P as a % of Net Sales % 12.5 10.7 11.3 10.0 8.6 JQ '08 SQ '08 DQ '08 MQ '09 JQ'09 New launches and higher media spends JQ'09 Results - 29th July‘09 PBIT Margin Trends % 16.8 14.4 15.0 13.9 12.9 JQ '08 SQ '08 DQ '08 MQ '09 JQ'09 PBIT margins improve 60 bps from lower input
Slide 7: Category wise Revenue growth and HPC Topline
Category wise Revenue growth Growth % JQ'09 Soaps & Detergents 9.5 Personal Products 14.7 Beverages 18.6 Processed Foods 14.7 Ice Cream 23.0 FMCG 12.8 ^ ^ Excludes Other Operational Income JQ'09 Results - 29th July‘09 HPC Topline Personal Wash Laundry Shampoo Skin Toothpaste HPC Growth 11.9% JQ'09 R
Slide 8: Home Care and Soaps & Skin Care category performance
Home Care category performance • In Laundry, actions to improve competitiveness of our portfolio have been implemented; lower input costs drive category margins • Surf and Rin drive category growth • Wheel grammage increases taking effect; share loss primarily in the mass end during transition JQ'08
Slide 9: Hair and Oral category performance, Foods Topline
Hair and Oral category performance • Hair category performs well with good volumes; shares improve over MQ’09 • Clinic Plus and Sunsilk drive volumes and category growth • Dove doubles in size • Clinic All Clear re-launched as ‘Clear’ JQ'08 Value Share MQ'09 JQ'09 46.5 Shampoo 44.9 45.4 • In Oral, C
Slide 10: Beverages, Processed Foods and Ice Cream performance
Beverages category performance • Strong price led growth across the portfolio • High commodity costs still a concern; signs of downtrading • Price corrections in key packs implemented to improve competitiveness JQ'08 Value Share MQ'09 JQ'09 23.3 Tea 23.4 21.8 • Instant Coffee registers good growth d
Slide 11: Water Purifier – Business Update and Exports
Water Purifier – Business Update • Consumer base now expanded to over 2 million households • Increased penetration; now reaching >1500 towns (covering towns >50K population) • Distribution capability further strengthened • Business progress as per plan JQ'09 Results - 29th July‘09 Exports FMCG Speci
Slide 12: Financial performance: Results JQ’09
Financial performance JQ’09 Results: JQ’09 Rs Crores JQ'09 JQ'08 Growth% Net Sales 4476 4153 7.8 EBITDA 715 635 12.5 PBIT 673 597 12.6 PBIT margin (percentage) 15.0 14.4 - Exceptional Items 2.8 18.0 - PBT bei 701 670 4.7 PBT 704 688 2.3 PAT bei 538 540 (0.4) Net Profit 543 558 (2.7) JQ'09 Results -
Slide 13: Exceptional Items and Analysis of Net Profit
Results: Exceptional Items Rs Cr Particulars JQ'09 JQ'08 Assets Sale 5 14 Restructuring Costs (2) (15) Others 19 Total 3 18 JQ'09 Results - 29th July‘09 Analysis of Net Profit Rs Crores JQ'09 JQ'08 Growth% Net Profit 543 558 (2.7) Less: Exceptional/Extraordinary Items (Net of Tax) 6 18 Profit After
Slide 14: In Summary / Thank you
In Summary • FMCG growth 12.8%; return to volume growth • Time bound action plans implemented • Strong volume growth in Personal Products and Foods • Hair and Toothpaste market shares improve over MQ’09 • Pricing actions taking effect • Residual transition impact in Soaps and Detergents in June quar
Slide 15: Results – JQ ’09 Investor Presentation
Results – JQ ’09 Investor Presentation 29th July 2009 15
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