Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — FY2012-13 Earnings Presentation
34 slides from Hindustan Unilever's earnings presentation, Apr 29, 2013
Slide 1: MQ'13 & FY 2012-13 Results Presentation
MQ’13 & FY 2012-13 Results Presentation – April 29, 2013 1
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: Agenda
Agenda 1 Strategy 2 Business Context 3 Current Quarter Performance 4 Financial Year Performance 5 Looking Ahead 3
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
Slide 5: Challenging business environment
MQ 2013 – Context Challenging business environment Moderation in volume & value growth across categories • Pronounced in MT and discretionary categories • Price growth in Soaps and Detergents fading Input costs environment relatively benign Overall competitive intensity remains high 5
Slide 6: Input costs relatively benign
Input costs relatively benign Brent Crude Premium North India Tea ($/barrel) (Rs/Kg) 119 186 193 110 112 170 MQ 12 DQ'12 MQ'13 MQ 12 DQ'12 MQ'13 Exchange Rate PFAD USD/INR 826 ($/Ton) 54.2 54.2 680 561 50.3 MQ 12 DQ'12 MQ'13 MQ 12 DQ'12 MQ'13 6 Source: Bloomberg data and internal estimates
Slide 7: MQ 2013 - Consistent broad based growth and profit improvement
MQ 2013 - Consistent broad based growth and profit improvement Domestic Consumer business grows by 13% • 6% Underlying Volume Growth • Home and Personal Care (HPC) grows by 13% and Food & Beverages (F&B) by 15% Operating Margin (PBIT) expands to 14.3%; up 60 bps • PBIT at Rs. 910 crores grows at
Slide 8: Broad based growth
Broad based growth Growth % MQ ’13 Soaps & Detergents 13 Personal Products 12 Beverages 18 Packaged Foods 7 Domestic FMCG^ 13 13 Domestic Consumer^ ^ Excludes Other Operational Income 8 Domestic Consumer business = Domestic FMCG + Water
Slide 9: Continued focus on innovations
Winning with Brands Continued focus on innovations Axe Apollo Lux Fresh Splash Deo Lakme Nourishing Glow Dove Body wash with Pond’s White Beauty Clean – Up: for Salon like Glow nutrium moisture tan removal scrub Dove hair therapy Pepsodent Expert Protection Paddle Pop Jiggly Jelly Cornetto Pistachio
Slide 10: Impactful activation at Maha Kumbh 2013
Winning with Brands Impactful activation at Maha Kumbh 2013 Lifebuoy 2 million Roti reminders Close-up 1 million human tags 10
Slide 11: Category Highlights
CATEGORY HIGHLIGHTS
Slide 12: Skin Cleansing: Broad based growth
Skin Cleansing Broad based growth Volume led double digit growth • Dove, Lux & Lifebouy grow double digit volume • Price deflation in quarter • Commodity cost benefit passed on to consumers Bodywash portfolio strengthened with relaunch of Dove 12
Slide 13: Home Care: Double digit growth across formats
Home Care Double digit growth across formats Laundry – Growth led by premium segment • Surf & Rin deliver another quarter of double digit volume growth • Surf growth buoyed by Easy wash relaunch • Rin led by strong performance in the bars portfolio • Wheel performance improving – actions in progre
Slide 14: Skin Care: Growth led by premium segment
Skin Care Growth led by premium segment Significant slowdown in market growth Double digit growth in Lakme and Pond’s • Pond’s Age Miracle sustains its strong growth momentum • Lakme led by Perfect Radiance; innovation received well Fair & Lovely holds share in a slowing segment Facewash por
Slide 15: Hair Care: Volume led double digit growth
Hair Care Volume led double digit growth Sunsilk, Clinic Plus & Dove bottles grow strongly • Clinic Plus relaunch delivering; Sunsilk led by impactful activation • Dove range further strengthened with a new Split ends variant TRESemmé well received; continues to gain ground Conditioners regist
Slide 16: Oral Care: Strong growth
Oral Care Strong growth Broad based growth across portfolio • Both brands grow double digit volumes Growth in Pepsodent and Close-up core step up Toothbrushes portfolio rationalized; Expert Protection brushes launched 16
Slide 17: Beverages: Stepped up growth across portfolio
Beverages Stepped up growth across portfolio Tea sustains strong growth • Growth broad based with robust volumes • All brands grow in double digits driven by impactful activation • Taaza performs well on the back of a strong marketing mix Coffee maintains its double digit growth momentum 17
Slide 18: Packaged Foods: Growth led by Kissan and Knorr
Packaged Foods Growth led by Kissan and Knorr Kissan grows in double digits with new ‘Inspire’ campaign Growth further accelerates on Knorr soups portfolio Encouraging response to Soupy Noodles relaunch Kwality Walls registers modest growth – impacted by a market slowdown • Range of exciting
Slide 19: Pureit: Strengthening leadership
Pureit Strengthening leadership Pureit continues to grow in a slowing durables market • Innovations leading growth – recent UV launch well received Building trusted service standards as a differentiator through the ‘Pureit promise’ Initiatives to step up marketplace execution progressing well
Slide 20: MQ 2013 – Results
MQ 2013 – Results Rs Cr Particulars MQ'12 MQ'13 Growth % Net Sales 5,660 6,367 12.5 PBITDA 833 972 16.6 PBIT 776 910 17 .3 PBIT margin (%) 13.7 14.3 60 bps PAT bei 664 781 17.7 Net Profit 687 787 14.7 Strong performance in Domestic Consumer Business 20 Domestic Consumer Business = Domestic FMCG +
Slide 21: MQ 2013 - PBIT to Net Profit
MQ 2012 - PBIT to Net Profit Rs Cr Particulars MQ’12 MQ’13 Growth % PBIT 776 910 17.3 Add : Other Income 70 106 51.3 Less : Finance Costs 0 6 Exceptional Items – Credit / (Charge) 28 9 PBT 874 1020 16.6 Less : Tax (188) (232) 23.9 Net Profit 687 787 14.7 • Other income includes interest income, divi
Slide 22: MQ 2013 – Results Summary
MQ 2013 – Results Summary Consistent broad based growth and profit improvement • 13% growth in Domestic Consumer business with 6% UVG • PBIT up 17%, margin expands +60 bps • PAT (bei) grows by 18% 22 Domestic Consumer Business = Domestic FMCG + Water; UVG – Underlying Volume Growth
Slide 23: Financial Year Ending 31st March 2013
FINANCIAL YEAR ENDING 31ST MARCH 2013
Slide 24: FY 2012-13: Delivered on goals
FY 2012-13: Delivered on goals Consistent & Competitive Growth Profitable Growth Domestic Consumer 14.9% 14.1% +3300 +80 Crs bps Turnover 2011-12 2012-13 USG 18 16 PBIT Margin UVG 9 7 Domestic Consumer Business = Domestic FMCG + Water 24 USG: Underlying Sales Growth; UVG: Underlying Volume Growth
Slide 25: Soaps and Detergents: Broad based growth in a competitive market
Soaps and Detergents Broad based growth in a competitive market FY’12-13 growth 19% All segments and formats grow in double digits Growth - mix of strong volumes and inflation led pricing 10% 8% • Price fade in the second half of the year Leading category premiumization UVG UPG USG Segmental
Slide 26: Personal Products: Healthy growth in a challenging environment
Personal Products Healthy growth in a challenging environment Double digit growth across Skin, Hair and Oral FY’12-13 growth 13% • Skin led by the top end; FAL competitive in a slowing segment • Hair growth broad based across key brands and formats 7% • Oral growth accelerates across quarters on b
Slide 27: Beverages: Stepped up growth
Beverages Stepped up growth FY’12-13 growth Broad based growth across Tea and Coffee 13% • Strong activation led growth in Tea driven by top end 7% • Coffee sustains momentum on back of strong core 5% Thrust on building new consumer segments • Teabags & Premium Coffee do well UVG UPG USG Segme
Slide 28: Packaged Foods: Growth led by core
Packaged Foods Growth led by core FY’12-13 growth Kissan Ketchups - 3 years of double digit growth 10% Performance in Knorr led by step up in Soups growth 6% • Soupy Noodles relaunched with a new mix 3% Double digit growth in Kwality Walls • Led by a strong performance in first half UVG UPG US
Slide 29: FY 2012-13: P&L Summary
Financial Year ending 31st March 2013: P&L Summary Rs Cr Particulars FY'12 FY'13 Growth% Net Sales 21,736 25,206 16 PBITDA 3,291 4,004 22 PBIT 3,073 3,768 23 PBIT margin (%) 14.1 14.9 80 bps PAT bei 2,592 3,314 28 Net Profit 2,691 3797 41 Domestic Consumer: 16% USG, 7% UVG EBIT grows 23%, margin
Slide 30: FY 2012-13: Cash Flow Summary
Financial Year ending 31st March 2013: Cash Flow Summary Rs Cr Particulars FY'12 FY'13 Operating profit before working capital changes 3,360 4,073 Net working capital movement 183 473 Taxes paid (net of refunds) -657 -1,005 NET CASH FROM OPERATING ACTIVITIES - [A] 2,872 3,530 Purchase of tanglinble/
Slide 31: Financial Year 2012-13 – Dividend
Financial Year 2012-13 – Dividend Particulars FY'11-12 FY‘12-13 Dividend Per Share 7.5 18.5 Interim 3.5 4.5 Special - 8.0 Final 4.0 6.0 No. of Share (Crs.) 216 216 Total Dividend (Rs. Crs.) 1621 4000 Div. Dist. Tax (Rs. Crs.) 263 656 Total Div. Outflow (Rs. Crs.) 1884 4656 31
Slide 32: FY 2012-13 Summary
FY 2012-13 Summary Another year of competitive and profitable growth • Strong 16%* growth with UVG of 7% in a challenging environment • Double digit growth across all segments • PBIT up 23%; margins expand by +80 bps • PAT (bei) grows by 28% Cash from operations up Rs. 1002 crores Total divide
Slide 33: Looking Ahead
Looking Ahead Positive medium-long term outlook for FMCG HUL well positioned to deliver consistent, competitive, profitable and responsible growth Near term concerns • Moderation in market growth rates and inflationary pressures on consumers • Particularly impacting discretionary categories 33
Slide 34: MQ'13 & FY 2012-13 Results Presentation
MQ’13 & FY 2012-13 Results Presentation – April 29, 2013 34