Hindustan Unilever Limited · NSE:HINDUNILVR
Hindustan Unilever — JP Morgan Investor Conference, Goa 2002
30 slides from Hindustan Unilever's conference presentation, Oct 30, 2002
Slide 1: SQ '02 Results - Snapshot
A-PDF Split DEMO SQ ‘02 Results - Snapshot • HPC Power Brands up by 6.8%, driving HPC growth of 4.9% • Foods decline by 15.7% leading to flat FMCG sales • Operating Profits (PBIT) up 16.6%, Margin Expansion by 390 bps • Declining yields impact financial income (-9.5%) despite increase in invested su
Slide 2: HPC Category Performance
A-PDF Split DEMO HPC Category Performance • Detergents grow by 2.8% – Growth led by Personal Wash (+11.1%) : Lux, Lifebuoy, Pears do well – Mass markets do well in laundry, however impacting value growth (-2.0%) – Dishwash sales bounce back - up 5.5% driven by market activation in Vim • Personal Pro
Slide 3: Foods Performance
A-PDF Split DEMO Foods Performance • Tea sales impacted by weak commodity prices & intense low cost local competition • Instant coffee registers strong growth • Oils & Fats affected by structural issues & tariffs • Branded staples - focus on margin correction Portfolio restructuring & margin expansi
Slide 4: SQ 2002 Sales Summary
A-PDF Split DEMO SQ 2002 Sales Summary R s C ro re s SQ 2001 S Q 2 0 0 2 G r o w th % D o m e s tic F M C G 2066 2048 (0 .9 ) - HPC 1486 1559 4 .9 - Foods 579 489 (1 5 .7 ) E x p o rts 273 280 2 .5 - FM CG 173 164 (5 .2 ) - Non FM CG 101 116 1 5 .6 O th e rs 52 39 (2 5 .2 ) C O N T IN U IN G B U S I
Slide 5: YTD 2002 Sales Summary
A-PDF Split DEMO YTD 2002 Sales Summary R s C ro re s Y T D 2 0 0 1 Y T D 2 0 0 2 G ro w th % D o m e s tic F M C G 6342 6301 (0 .6 ) - HPC 4613 4746 2 .9 - Foods 1729 1556 (1 0 .0 ) E x p o rts 883 853 (3 .4 ) - FM CG 539 485 (1 0 .0 ) - Non FM CG 344 368 6 .9 O th e rs 123 116 (5 .9 ) C O N T IN U
Slide 6: SQ 2002 Results
A-PDF Split DEMO SQ 2002 Results Rs.Crores SQ 2001 SQ 2002 Growth % PBIT 389 454 16.6 Fin Income (net) 89 81 -8.9 PBT 478 535 11.9 Tax ( incl Deferred ) 101 115 14.2 PAT ( bei ) 378 420 11.2 Exceptional Item 22 (7) Net Profit 399 413 3.5 JP M organ Investor C onference,G oa 30th O ct,2002
Slide 7: YTD 2002 Results
A-PDF Split DEMO YTD 2002 Results Rs.Crores YTD 2001 YTD 2002 Growth % PBIT 1094 1300 18.8 Fin Income (net) 239 207 (13.5) PBT 1333 1506 13.0 Tax ( incl Deferred ) 292 332 13.6 PAT ( bei ) 1041 1174 12.8 Exceptional Item 164 115 (30.0) Net Profit 1205 1289 7.0 JP M organ Investor C onference,G oa 30
Slide 8: Segmental Revenue
A-PDF Split DEMO Segmental Revenue SQ SQ % YTD YTD % Rs.Crores 2001 2002 Change 2001 2002 Change Soaps & Detergents 1032 1062 3.0 3151 3253 3.2 Personal Products 459 508 10.7 1473 1524 3.5 Beverages 336 270 (19.6) 1046 914 (12.6) Foods 203 184 (9.1) 550 522 (5.2) Ice Cream 33 23 (29.6) 124 90 (27.6)
Slide 9: Segmental Results
A-PDF Split DEMO Segmental Results SQ SQ % YTD YTD % Rs.Crores 2001 2002 Change 2001 2002 Change Soaps & Detergents 271 288 6.4 675 800 18.6 Personal Products 145 164 12.8 436 502 15.2 Beverages 52 54 5.3 156 173 10.9 Foods (10) (7) 24.2 (7) (22) (241.9) Ice Cream (9) (2) 81.7 (18) (4) 75.1 Exports
Slide 10: Segmental Margins
A-PDF Split DEMO Focus on Profitability … … im proved segm entalm argins in SQ ‘02 % 40 35 31.6 32.2 Segmental Margins 30 26.3 27.1 25 22.5 20.0 18.8 20 15.3 15 10 4.2 5 2.6 0 Detergents Personal Prod Beverages Exports Overall SQ 2001 SQ 2002 JP M organ Investor C onference,G oa 30th O ct,2002
Slide 11: Segmental Margins
A-PDF Split DEMO Focus on Profitability … … continued trend on im proved segm entalm argins % 40 35 32.9 Segmental Margins 29.6 30 24.6 25 21.4 20.5 19.0 20 16.8 15.0 15 10 6.5 5 3.4 0 Detergents Personal Prod Beverages Exports Overall YTD SQ 2001 YTD SQ 2002 JP M organ Investor C onference,G oa 30t
Slide 12: Focus on profitability continues
A-PDF Split DEMO Focus on profitability continues Rs Crore SQ 2001 SQ 2002 % Growth Operating Profit (PBIT) 389 454 16.6 Operating Margin % 15.3 19.2 +390 bps % YTD 2001 YTD 2002 Return on Net Worth 49.1 45.3 ROCE 61.9 58.1 JP M organ Investor C onference,G oa 30th O ct,2002
Slide 13: EBITDA Margin Progression
A-PDF Split DEMO EBITDA Margin Progression Portfolio Focus on Foods Cost Management Rationalisation Profitability Initiatives % Sales 20 18 16 14 12 Rolling 12-month EBITDA Margins 10 2000 2001 2002 8 1996 1997 1998 1999 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 JP M organ Investor C onference,G oa 30th O ct
Slide 14: 2003 & Beyond….
A-PDF Split DEMO H IN D U STA N LEVER LIM ITED JP Morgan Conference , Goa 2003 & Beyond….
Slide 15: Shaping Brands for Growth
A-PDF Split DEMO Shaping Brands for Growth brand vision grow th opportunities g new categories g new consum ers g new consum ption opportunities innovation JP M organ Investor C onference,G oa 30th O ct,2002
Slide 16: The 'HLL Way in Sales'
A-PDF Split DEMO The ‘HLL Way in Sales’ i R eorganised sales force by custom er type i Single m inded focus on secondary sales i “B ack-to-B asics” JP M organ Investor C onference,G oa 30th O ct,2002
Slide 17: A New Exports Horizon
A-PDF Split DEMO A New Exports Horizon grow ing a $ B ln sourcing business outofIndia g Leveraging on cost arbitrage opportunities with Unilever 3P the West & Unilever sourcing 13 g Focus on categories with company / country 27 specific advantage g Build sourcing partnerships on the basis of 100 - W
Slide 18: A New Paradigm Supply Chain
A-PDF Split DEMO A New Paradigm Supply Chain • RS-net implementation - Connectivity with HLL RSs ...m ake today i B enefits w hatw e q System cost reduction q Secondary Sales Tracking sold yesterday q Robust sales & production planning q Higher ROI for Redistribution Stockist q Field force focus on
Slide 19: Driving New Initiatives
A-PDF Split DEMO Driving New Initiatives Water Rural Connectivity E-Tailing JP M organ Investor C onference,G oa 30th O ct,2002
Slide 20: Enterprise Culture
A-PDF Split DEMO Team w orking drives Enterprise Culture i Goal Alignment i Emotional Bonding i Shared Values Truth Courage Growth Action Caring Values form the bedrock of our Culture to drive Growth JP M organ Investor C onference,G oa 30th O ct,2002
Slide 21: Performance Trends
A-PDF Split DEMO H IN D U STA N LEVER LIM ITED JP Morgan Conference , Goa Performance Trends
Slide 22: Net Sales
A-PDF Split DEMO Net Sales C A G R 8.8% 120 100 80 R s B ln 60 40 20 0 1997 1998 1999 2000 2001 Net Sales 78.2 94.8 101.5 106.0 109.7 JP M organ Investor C onference,G oa 30th O ct,2002
Slide 23: Operating Profits / Margins
A-PDF Split DEMO Operating Profits / Margins Rs Bln % Sales 25 20% 20 16% 15 12% 10 8% 5 4% 0 0% 1997 1998 1999 2000 2001 EBITDA % on Sales EBITDA=PBT ( bei ) + Depn + Interest JP M organ Investor C onference,G oa 30th O ct,2002
Slide 24: Net Margins
A-PDF Split DEMO Net Margins % Sales 15 12 14.0 12.4 9 10.6 8.8 6 7.4 3 0 1997 1998 1999 2000 2001 Based on PAT (before exceptionalitem s ) JP M organ Investor C onference,G oa 30th O ct,2002
Slide 25: Earnings Per Share
A-PDF Split DEMO Earnings Per Share C A G R 27.6% 8 7 R upees per Share 6 5 4 3 2 1 0 1997 1998 1999 2000 2001 EPS ( Re 1 ) 2.81 3.67 4.86 5.95 7.46 JP M organ Investor C onference,G oa 30th O ct,2002
Slide 26: Dividend Per Share
A-PDF Split DEMO Dividend Per Share C A G R 31 % 6 5 R upees per Share 4 3 2 1 0 1997 1998 1999 2000 2001 DPS ( Re 1 ) 1.7 2.2 2.9 3.5 5.0 JP M organ Investor C onference,G oa 30th O ct,2002
Slide 27: Asset Turnover
A-PDF Split DEMO Asset Turnover Tim es 70 WW or orki king ng CCapi apittal al 60 Negative 63.9 Working Capital 50 54.2 40 41.9 30 20 Fi Fixed xed AAsset ssetss 9.8 9.0 9.3 8.8 8.3 10 0 1997 1998 1999 2000 2001 JP M organ Investor C onference,G oa 30th O ct,2002
Slide 28: Returns
A-PDF Split DEMO Returns % 70 65 61 62 62 59 60 RROO CCEE 50 53 54 51 RROO NNWW 49 46 40 30 1997 1998 1999 2000 2001 R O N W based on PAT (before exceptionalitem s ) JP M organ Investor C onference,G oa 30th O ct,2002
Slide 29: Economic Value Added
A-PDF Split DEMO Economic Value Added C A G R 31.2 % Rs. Bln 12 10.8 10 8.6 8 6.9 6 5.5 4 3.7 2 0 1997 1998 1999 2000 2001 EVA / Cap Empl % 28.4 33.2 33.5 35.9 38.4 * EVA = Net Operating Profit after Taxes - Cost of capital Employed JP M organ Investor C onference,G oa 30th O ct,2002
Slide 30: Thank You
A-PDF Split DEMO H IN D U STA N LEVER LIM ITED JP Morgan Conference , Goa Thank You
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