Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — Q2 FY2017-18 Earnings Presentation
28 slides from Hindustan Unilever's earnings presentation, Oct 25, 2017
Slide 1: Investor Presentation filing letter to stock exchanges
Hinduatanw Unilever Lumited Hindustan Unilever Limited Unilever House B D Sawant Marg Chakala, Andheri East Mumbai 400 099 Tel: +91 (22) 3983 0000 Web: www.hul.co.in CIN: L15140MH1933PLC002030 25th October, 2017 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INEQ30A01027 BSE Limited, National Stock Ex
Slide 2: SQ '17 Results Presentation: 25th Oct 2017
Hindustan Unilever Limited SQ ‘17 Results Presentation : 25th Oct 2017 1
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 First Half 2017-18 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: SQ'17: Market context
SQ’17: Market context Trade: ▪ Transition to GST impacted trade in early part of the quarter; Now recovering ▪ Wholesale and CSD channels stabilizing gradually Consumer offtake stable Input costs starting to inflate 5
Slide 7: 'Accounting' impact of GST
‘Accounting’ impact of GST Net Excise Duty Net Input taxes Pre GST Post GST Pre GST Post GST Excise a cost; Turnover is net of GST Input tax credit Input taxes subsumed under GST and netted Turnover gross of excise availed partially. from turnover Balance accounted • Costs lower as full input tax cr
Slide 8: 'Accounting' impact on Growth
‘Accounting’ impact on Growth *Exports + KCLL Traded Turnover 7
Slide 9: 'Accounting' impact on margins; No impact on absolute EBITDA
‘Accounting’ impact on margins; No impact on absolute EBITDA Impact on EBITDA margin due to accounting impact on Turnover 8
Slide 10: SQ'17: Profitable volume-driven growth sustained
SQ’17: Profitable volume-driven growth sustained Comparable* Domestic Consumer Growth 10% ▪ Prices reduced by 3-4% to pass on net GST benefits ▪ Underlying Volume Growth 4% EBITDA at Rs. 1682 Crores up 20%; Comparable* margin up 180 bps ▪ High COGS* in base quarter ▪ Sequential margins sustained
Slide 11: Price reductions taken to pass on net GST benefits
Price reductions taken to pass on net GST benefits Personal Care 10
Slide 12: Price reductions taken to pass on net GST benefits: Contd.
Price reductions taken to pass on net GST benefits : Contd. Home Care Foods & Refreshment 11
Slide 13: Broad based growth across segments
Broad based growth across segments ▪ Home Care: Robust volume led growth sustained ▪ Personal Care: Broad based growth across Personal Products and Personal Wash ▪ Refreshment : Robust growth sustained ▪ Foods: Growth driven by Kissan *Revenue Growth = Sales and Other Operating Income ^Comparable Sa
Slide 14: Continued focus on innovations
Continued focus on innovations 13
Slide 15: Progressively building the naturals portfolio
Progressively building the naturals portfolio Within the existing portfolio Building a master brand Building specialist brands 14
Slide 16: Home Care
Home Care Robust volume led growth sustained Fabric Wash: Broad based double-digit growth across the category Household Care: Growth led by strong performance in Vim bar Water: New range of purifiers (RO 2-in-1) launched 15
Slide 17: Personal Care
Personal Care Broad based growth across Personal Products & Personal Wash Personal Wash: Broad based growth across key brands ▪ Dove & Lux lead category growth Skin Care: Growth driven by buoyant winter sell-in Hair Care: Segment growth led by Dove; Indulekha hair oil witnesses strong growth 1
Slide 18: Personal Care: Contd.
Personal Care : Contd. Broad based growth across Personal Products & Personal Wash Colour Cosmetics: Double-digit growth sustained Oral Care: ▪ Performance remained subdued ▪ Actions implemented during the quarter o GST led price reductions landed o Lever Ayush extended nationally Deodorants:
Slide 19: Refreshment
Refreshment Robust growth sustained Tea: Continued strong broad based growth ▪ Taj Mahal Tea relaunched during the quarter Coffee: Growth led by strong activations Ice Cream & Frozen Desserts: Festival sales drive robust volume led growth 18
Slide 20: Foods
Foods Growth driven by Kissan Kissan: Strong growth driven by Ketchup Knorr: Multiple new variants launched in Soups International flavour variants launched in noodles in select markets 19
Slide 21: Levers to drive 4G Growth
Levers to drive 4G Growth Profitable Volume Cost savings + Growth Leverage • Sustained focus on driving • Project Symphony volumes o Zero Based Budgeting • Maximize Revenue • Cost ownership realization (NRM) Innovation + Marketing Investments • Capability building • Market development • New brands
Slide 22: SQ'17: Results Summary
SQ’17: Results Summary Rs. Crores ▪ Comparable* Domestic Consumer Growth at 10%^ ▪ Exceptional income includes profit on sale of equity shares in KCLL Rs. 46 cr. *Comparable basis – Adjusted for accounting impact of GST; See slides 7 and 8 21
Slide 23: First Half 2017-18
FIRST HALF 2017-18 Hindustan Unilever Limited 22
Slide 24: First Half 2017-18: Results Summary
First Half 2017-18 : Results Summary Rs. Crores ▪ Comparable* Domestic Consumer Growth at 8%^ ▪ Comparable* EBITDA margin improvement at 170 bps *Comparable basis – Adjusted for accounting impact of GST; See slides 7 and 8 23
Slide 25: Interim Dividend
Interim Dividend Particulars aoe Interim Dividend Per Share [Rs.) 8.0 7.0 No. of Share (Crs.) 216 216 Total Dividend (Rs. Crs.) 1,732 1,515 Div. Dist. Tax (Rs. Crs.] 352 308 Total Div. Outflow (Rs. Crs.) 2,084 1,823 Hindustan Unilever Limited
Slide 26: Looking ahead
Looking ahead Near term Expect gradual improvement in rural demand Trade conditions to continue to improve Input costs to inflate further Our strategy Continue to remain agile in the face of uncertainty Focus on volume driven growth and improvement in operating margin Consistent, Competi
Slide 27: Welcome the new CFO
Welcome the new CFO Commercial Manager Head of Treasury GM Finance, Foods & Refreshment Head, Investor Relations VP Finance, Deodorants & Oral care categories VP Supply Chain Finance, Americas VP Finance Services Mr. Srinivas Phatak *Blue Text – Roles in HUL 26
Slide 28: For more information & updates
For more information & updates Visit our website HUL Investor App 27
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