Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q1 FY2023-24 Earnings Presentation
22 slides from Hindustan Unilever's earnings presentation, Jul 20, 2023
Slide 1: JQ'23 Results
. Os < : la al | n re | u stan . : | SPECIALLY DESIGNED FOR MEN’S HAIR ° Panic | Unilever resins ee 2 TeoNDition: Limited CONDITIONER JQ‘23 Results 20* July 2023
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: Market growth (Total and Rural)
Total Rural Total Rural 2Y CAGR Flat -4% 5% 5% 0% 0% 5% 5% -10% MAT L6M L3M MAT L6M L3M JQ22 JQ’23 JQ22 JQ23 Market growth as per Nielsen FMCG Market Report for June 2023 (HUL relevant categories) 3 Sensitivity: Public
Slide 4: Inflation softening on a YoY basis
Inflation softening on a YoY basis Commodities remain stable Crude 1.9X Coffee 1.8X Soda Ash 1.7X Palm Oil 1.3X Tea 0.9X 2020 2021 MQ'22 JQ'22 SQ'22 DQ'22 MQ’23 JQ'23 15% Market price growth tailing off $Q’22 DQ23.- MQ’23. Trade destocking | JQ’23 Consumers consuming high price inventory Market Sens
Slide 5: Increased competitive intensity
Increased competitive intensity Media GRPs for FMCG Market (HUL relevant categories) x 0.95x JQI9 JQ20 JQ21 JQ22 JQ23 GRP Trend as per BARC report (HUL relevant categories) ‘Market growth as per Nielsen FMCG Market Report May 2023 Sensitivity: Public Market Value Growth (YoY) (L3M May‘23) 1.6X
Slide 6: Topline
Topline Underlying Sales Growth' 7% 3% Underlying Volume Growth2 EBITDA Margin 23.6% +40 bps Change YoY PAT (bei)? INR 2,500 cr. 9% Growth YoY it HUL JQ’23 results INR 2,472 cr. 8% EPS Growth YoY Sensitivity: Public 1. Underlying Sales Growth (USG) refers to the increase in turnover for the period,
Slide 7: Competitive growth
Competitive growth Business winning market shares Significantly outperformed the market on a 2-year basis 20% 10% USG UVG 2Y CAGR 13% 5% JQ22 JQ23 JQ?22 JQ’'23 ‘As per June 2023 MAT Business winning report based on Nielsen market data (HUL relevant categories) Sensitivity: Public
Slide 8: JQ'23: Segmental performance
u me JQ’23 : Segmental performance eh a & INR 5,425 cr. INR 5,601 cr. INR 3,797 cr. 10% 4% om 18% 26% 18% Mid Mid single-digit single-digit Near flat ‘Segment Revenue = Segment Turnover + Other Operating Income, Segment Margins (EBIT) excludes exceptional items. Excludes ‘Others’ segment, proportion
Slide 9: JQ'23: Underlying Volume Growth composition
J me JQ'23: Underlying Volume Growth composition Mid-single Double- digit decline digit growth Home Care Beauty & Personal Care Skin Skin Care & Cleansing Care Care Cosmetics Foods & J Refreshment = Coffee Ice Cream Health Food Foods Tea Drinks sensibaetyngvotume Growth (UV) refers to volume growth
Slide 10: JQ'23: Innovations (1/2)
JQ’23 : Innovations (1/2) aa DURAViva" | ___ BEST-IN-CLASS) purelb) Revito Series Fi TRATION TECHNOLOGY IN-TANK indulekha HELPS REPAIR indulekha VISIBLE SIGNS OF SKIN DAMAGE Sensitivity: Public
Slide 11: JQ'23: Innovations (2/2)
JQ’23 : Innovations (2/2) ONLY Horlicks) a0 CELOTG, CFITATLD, CSTE natu ralé » > take a Sip of Coodnes o 10% vy 6OWINTER. Natural Yuzu Lemon & Honey Fon refreshed & a as My a eo —— — 4 r Sensitivity: Public 1
Slide 12: JQ'23: Activations and communications
JQ’23 : Activations and communications ~ GLAM UP YOUR _ BRIDAL LOOK WITH ~=) § India Gl GUTZ & GOLD é 7d) > Favourile- “ / cial LAKME sf i Ht YOUR FAVOURITES, NOW IN CUPS wo) pos Sensitivity: Public
Slide 13: Home Care performance
a high base QsFabric Wash: Double-digit growth balanced between price and volume. Premium portfolio outperforms = Market share gains continue Q Household Care: Double-digit volume led growth driven by outperformance in Dishwash 13 Sensitivity: Public
Slide 14: Beauty & Personal Care performance
Sensitivity: Public = Ha mam Hamam Skin Cleansing: Modest volume-led growth driven by Lux and Hamam. Price reductions taken in soaps portfolio * Market development actions in bodywash continue to yield good results Hair Care: Mid-single digit volume growth led by Tresemme, Indulekha and Clinic Plus
Slide 15: Foods & Refreshment performance
Sensitivity: Public Beverages: Modest growth as consumers downgrading continued due to inflation differential between premium and loose tea. Coffee grew in mid-single digit Health Food Drinks: Price led growth with both Horlicks and Boost performing well Foods: Mid-single digit growth led by Ketchup
Slide 16: Building back gross margins, stepping up A&P
t Building back gross margins, stepping up A&P Gross Margin up sequentially Stepped-up A&P investments 52.7% 50.1% 47.8% 46.4% 46.6% 44.9% Avg.FY'19 ——FY'22 JQ-22 $Q-22 DQ-22 MQ-23 to FY'21 49.2% JQ-23 11.6% 9.4% 9.5% 8.8% 8.0% 7.2% Avg. FY'19 FY'22 JQ22 $Q22 DQ’22 MQ’23 to FY'21 Continue to drive p
Slide 17: JQ'23: Results summary
Sensitivity: Public JQ’23 : Results summary Particulars Rs. Crores Sales 14,931 14,016 7% EBITDA Syo2 3,247 8% EBITDA Margin 23.6% 23.2% +40 bps Other Income (Net) 138 111 PBT BisG5) 3,086 9% Tax 893 797 Net Profit 2,472 2,289 8% PAT before exceptional items 2,500 2,289 9% 17
Slide 18: Launch of Centre for Sustainability Leadership
Launch of "i Centre for (ricer SUSTAINABILITY Ss LEADERSHIP To accelerate India’s Net Zero Transition Application window: May 22nd to June 05th, 2023 a uz 10 new Suvidha Centres ‘Be.Seen’: scaling minority- ‘Centre for Sustainability to be set up owned businesses Leadership’ Sensitivity: Public 18
Slide 19: Looking ahead
Looking ahead ae
Slide 20: Operating environment remains volatile
Operating environment remains volatile Weather related risks continue Gradual recovery in volumes Impact on inflation and High levels of cumulative inflation, rural demand to be monitored consumption to recover gradually Sensitivity: Public 20
Slide 21: Near-term outlook
t Near-term outlook Q If commodities remain where they are, our price growth to be flattish/negative in the coming quarters Q Competitive intensity to go up further, focused on growing our consumer franchise and sustaining our volume growth momentum * Right price-value equation and building back gro
Slide 22: MENY
MENY +CARE F) Hindustan © SPECIALLY DESIGNED FOR MEN’S HAIR | A fs : SHAMPOO + Unilever 2" Tesnbimoner Limited SOS PAE} Results 20% July 2023 Hindustan Unilever Lomited
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