Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — FY2017-18 Earnings Presentation
30 slides from Hindustan Unilever's earnings presentation, May 14, 2018
Slide 1: Hindustan Unilever Limited cover letter to exchanges
. . 6 Hiadustauw Unilever Limited Hindustan Unilever Limited 14th May, 2018 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, Corporate Relationship Department, 2nd Floor, New Trading Wing, Rotunda Building, P.J. Towers, Dalal Street, Mumbai — 400 001 Dear Sir, Sub: Investor Pre
Slide 2: MQ'18 & FY'17-18 Results Presentation
Hindustan Unilever Limited MQ ’18 & FY’ 17-18 Results Presentation : 14th May 2018
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 Financial Year Performance 5 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: MQ'18: Market Context
MQ’18: Market Context Trade conditions have normalized ▪ Pipelines now stable Gradual improvement in demand Input costs continue to inflate in select categories; crude led 5
Slide 7: MQ'18: Strong volume-led growth sustained
MQ’18: Strong volume-led growth sustained Comparable* Domestic Consumer Growth 16%; Underlying Volume Growth 11% EBITDA at Rs. 2048 Crores up 24%; Comparable* margin up 160 bps ▪ Strong savings program supports reduction of COGS* ▪ A&P* spends stepped up on innovations and activations PAT (bei
Slide 8: Recap: 'Accounting' impact of GST on HUL results
Recap: ‘Accounting’ impact of GST on HUL results With effect from 1st July’17 With effect from 1st Oct’17 Net Excise Duty Net Input taxes Fiscal exemption/ refund Input tax credit availed partially. Benefit of Indirect tax fiscal exemption and PRE GST Excise a cost; Turnover gross of excise Balance
Slide 9: 'Accounting' impact of GST on Growth
‘Accounting’ impact of GST on Growth *Exports + KCLL Traded Turnover 8
Slide 10: 'Accounting' impact of GST on margins; No impact on absolute EBITDA
‘Accounting’ impact of GST on margins; No impact on absolute EBITDA 9
Slide 11: Volume led growth across segments
Volume led growth across segments ▪ Home Care: Double-digit volume growth ▪ Personal Care: Broad based double-digit growth across Personal Products and Personal Wash ▪ Refreshment: Robust growth across categories ▪ Foods: Good growth in Kissan & Knorr *Reported Sales growth = Segment Turnover growth
Slide 12: Continued focus on innovations and activations
Continued focus on innovations and activations 11
Slide 13: Progressively building the naturals portfolio
Progressively building the naturals portfolio 12
Slide 14: Home Care
Home Care Double-digit volume growth Fabric Wash: Robust double-digit growth across key brands ▪ Launched Comfort Pure - fabric conditioner for delicate baby skin Household Care: Growth led by strong performance in Vim Purifiers: Premium range continues to perform well 13
Slide 15: Personal Care
Personal Care Broad based double-digit growth across Personal Products & Personal Wash Personal Wash: Premium range continues to perform remarkably well; growth in popular segment relatively muted Skin Care: Fair & Lovely and Pond’s lead category growth Hair Care: Broad based volume led growth
Slide 16: Personal Care : Contd.
Personal Care : Contd. Broad based double-digit growth across Personal Products & Personal Wash Colour Cosmetics: Robust growth sustained ▪ Lakmé Nudes: A new range of products tailormade for Indian skin tones launched Oral Care: Close up growth driven by launch of new Naturals variant Deodora
Slide 17: Refreshment
Refreshment Robust growth across categories Tea: Sustained delivery of double-digit growth through our WiMI strategy and market development Coffee: Strong volume led growth delivered Ice Cream & Frozen Desserts: Double-digit volume growth delivered on the back of geographic expansion ▪ New Kwa
Slide 18: Foods
Foods Good growth in Kissan and Knorr Kissan: Strong growth led by Ketchups Knorr: Instant Soups led growth ▪ New Knorr pasta masalas in red & white sauce variants launched in select geographies ▪ New range of noodles launched last quarter saw further geographic expansion 17
Slide 19: MQ'18: Results Summary
MQ’18: Results Summary Rs. Crores ▪ Comparable* Domestic Consumer Growth at 16%^ ▪ Other Income up due to higher interest income in current quarter ▪ Exceptional item in current quarter includes true up of deferred consideration payable on account of Indulekha acquisition *Comparable basis – Adjuste
Slide 20: Full Year Performance FY'17-18
FULL YEAR PERFORMANCE FY’ 17-18 19
Slide 21: FY 2017-18: Strong performance delivered
FY 2017-18: Strong performance delivered Comparable* Domestic Consumer Growth 12%; Underlying Volume Growth 6% EBITDA at Rs. 7276 Crores up 20%; Comparable* margin up 155 bps ▪ Enabled by our strong savings program and mix improvement PAT (bei) at Rs. 5135 crores up 21%; Net Profit at Rs. 5237
Slide 22: Strengthening the core
Our enablers of growth Segments of the future WiMI: Central STRENGTHENING THE CORE DIALLING UP Growth ~2X HUL average Last 3 years growth ~1.5X All India Average Innovations & Naturals Brands with purpose Naturals portfolio growing ~2.5X A clear ‘purpose’ makes our brands HUL average ‘Most Trusted’
Slide 23: Fuel for growth: consistently driving margins
Fuel for growth: consistently driving margins A Business Model Max the Mix that Works Channel, Portfolio Geography Margin accretive Pricing innovation Organisation wide End-to-end cost focus ownership mindset 2017 savings: 1.7X savings of 2014 22
Slide 24: FY 2017-18: Results Summary
FY 2017-18 : Results Summary Rs. Crores ▪ Comparable* Domestic Consumer Growth at 12%^; underlying volume growth at 6% ▪ Comparable* EBITDA margin improvement at 155 bps *Comparable basis – Adjusted for accounting impact of GST; See slides 24 and 25 23
Slide 25: 'Accounting' impact of GST on Growth
‘Accounting’ impact of GST on Growth *Exports + KCLL Traded Turnover 24
Slide 26: 'Accounting' impact of GST on margins; No impact on absolute EBITDA
‘Accounting’ impact of GST on margins; No impact on absolute EBITDA 25
Slide 27: Broad based growth across segments
Broad based growth across segments *Reported Sales growth = Segment Turnover growth excluding Other Operational Income (Excludes impact of A&D) ^Comparable Sales growth = Segment Turnover growth excluding Other Operational Income but including Fiscal exemption/ refund and net of excise & input tax c
Slide 28: Proposed Final Dividend
Proposed Final Dividend *Final Dividend number for FY 2017-18 is subject to approval by the shareholders at the AGM 27
Slide 29: Looking ahead
Looking ahead Near term Gradual improvement in demand Step up in competitive intensity anticipated Further inflation in input costs; crude and currency as key watch outs Our strategy Focus on volume driven growth and improvement in operating margin Consistent, Competitive, Profitable, Resp
Slide 30: For more information and updates
For more information and updates Visit our website http://www.hul.co.in/investorrelations/ 29