Hindustan Unilever Limited · NSE:HINDUNILVR

Hindustan Unilever — Q3 FY2016-17 Earnings Presentation

20 slides from Hindustan Unilever's earnings presentation, Jan 23, 2017

  1. Slide 1: Hindustan Unilever Limited DQ 2016 Results Presentation

    Hindustan Unilever Limited DQ 2016 Results Presentation, 23rd January 2017 1

  2. Slide 2: 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

  3. Slide 3: Agenda

    Agenda 1 Strategy 2 Quarter Summary 3 Current Quarter Performance 4 Nine months results 5 Looking Ahead 3

  4. 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

  5. Slide 5: DQ 2016: Summary

    DQ 2016: Summary  Uncertain market conditions  In-quarter market growth adversely impacted by demonetisation  Input costs continue to inflate  HUL : Resilient performance in a challenging business environment 5

  6. Slide 6: DQ'16: Resilient performance in a challenging business environment

    DQ’16: Resilient performance in a challenging business environment  Domestic Consumer business flat; underlying volume growth at -4%  Performance across categories impacted by adverse market conditions  EBITDA at Rs. 1,355 Crores down 5%; margin down 70 bps  COGS higher due to rising input costs

  7. Slide 7: Segmental Performance

    Segmental Performance: Impacted by reduced trade pipelines and lower consumer offtake Sales growth = Segment Turnover growth excluding Other Operational Income 7 *Excludes impact of A&D

  8. Slide 8: Impact of Demonetisation on our market

    Impact of Demonetisation on our market Consumers Channels Geographies • Purchase basket size • Most channels starting to •Recovery correlated to bank reduces recover after initial stress density • Frequency of shop visits • Large rural wholesale still •South & West least impacted increases under pre

  9. Slide 9: HUL's response to market challenges

    HUL’s response to market challenges Categories Distribution Finance Supply Chain Continue to land breakthrough innovations Expand sustainable direct Support trade with Agile response to volatile coverage and assortment extended credit demand Leverage WiMI Gradual recovery underway Secondary Sales Gr

  10. Slide 10: Continued focus on innovations

    Continued focus on innovations 10

  11. Slide 11: Building Naturals

    Building Naturals Within the existing portfolio Extending to new geographies Building a master brand Natural variants well appreciated Expanding Consumer LEVER Ayush launched in South by consumers footprint India across all channels 11

  12. Slide 12: Home Care

    Home Care  Premium laundry continues to lead category performance  Surf maintains its strong double-digit growth momentum  Home Care liquids sustain strong performance 12

  13. Slide 13: Personal Care

    Personal Care  Premium Personal Care continues its growth momentum across formats  Personal Wash volumes impacted by calibrated price increases taken to manage steep rise in commodity costs  Baby Dove well received 13

  14. Slide 14: Foods & Refreshment

    Foods & Refreshment  Tea delivers broad based double-digit growth by leveraging WiMI  Ice Cream & Frozen Desserts delivers robust activation-led growth  Focus on market development continues in foods 14

  15. Slide 15: DQ 2016: Results Summary

    DQ 2016: Results Summary Rs. Crores  Domestic Consumer growth at 0% (*Reported growth includes impact of A & D)  Exceptional item includes profit on sale of properties (Rs. 159 Crores)  Other income includes dividend from subsidiaries (DQ’16: Nil, DQ’15: Rs. 46 Crores) 15

  16. Slide 16: Nine Months Ending 31st December 2016

    NINE MONTHS ENDING 31ST DECEMBER 2016 16

  17. Slide 17: Nine Months 2016-17: Results Summary

    Nine Months 2016-17: Results Summary Rs. Crores  Domestic Consumer grows at 2%, underlying volume growth at -1%  Modest and consistent improvement in operating margins sustained Base numbers adjusted as per IND AS 17

  18. Slide 18: Effective Tax Rate FY 2018

    Effective Tax Rate FY 2018  Assam new unit ramp up more than offsets impact of:  Few existing units moving out of fiscal exemption  Changes in IT rules – R&D & Investment Allowance Reserve  ETR to be lower by ~ 50 bps for FY 2018 ETR = ETR on non exceptional income 18

  19. Slide 19: Looking Ahead

    Looking Ahead Near term outlook:  Market growth expected to improve gradually  Rising trend in input costs to continue Strategy unchanged:  Focus on volume growth and improvement in operating margin  Consistent, Competitive, Profitable, Responsible Growth 19

  20. Slide 20: For more information & updates

    For more information & updates Visit our website HUL Investor App 20

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