21st July, 2020 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: - - PDF document

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21st July, 2020 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: - - PDF document

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21st July, 2020 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block,

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21st July, 2020 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, National Stock Exchange of India Ltd Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra – Kurla Complex, Dalal Street, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Dear Sir / Madam, Sub: Investor Presentation This is further to our letter dated 12th July, 2020, intimating a presentation to be made to Analysts / Investors on Unaudited Standalone and Consolidated Financial Results of the Company for the quarter ended 30th June, 2020 post Board Meeting. Pursuant to the Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith a copy of the presentation to Analysts / Investors on Unaudited Standalone and Consolidated Financial Results

  • f the Company for the quarter ended 30th June, 2020.

Please take the above information on record. Thanking You. Yours faithfully, For Hindustan Unilever Limited

Digitally signed

DEVOPAM by DEVOPAM

NARENDRA

NARENDR BAJPAI

Date: 2020.07.21 16:22:06 +05'30'

A BAJPAI

Dev Bajpai Executive Director, Legal & Corporate Affairs and Company Secretary DIN:00050516 / FCS No: F3354

Sensitivity: Confidential

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HINDUSTAN UNILEVER LIMITED

JQ’20 Results Presentation

21st July, 2020

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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 expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or

  • therwise, which are forward looking statements. These forward looking statements are based on certain expectations, assumptions,

anticipated developments and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, market growth, intense competition and the pricing environment in the market, consumption level, ability to maintain and manage key customer relationship and supply chain sources and those factors which may affect our ability to implement business strategies successfully, namely changes in regulatory environments, political instability, change in international oil prices and input costs and new or changed priorities of the trade. The Company, therefore, cannot guarantee that the forward-looking statements made herein shall be realized. The Company, based on changes as stated above, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward looking statements as may be required from time to time on the basis of subsequent developments and events. The Company does not undertake any obligation to update forward looking statements that may be made from time to time by or on behalf of the Company to reflect the events or circumstances after the date hereof.

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Sanjiv Mehta

Chairman & Managing Director

21st July, 2020

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2 0 0 0 0 0 4 0 0 0 0 0 6 0 0 0 0 0 8 0 0 0 0 0 1 0 0 0 0 0 0 1 2 0 0 0 0 0 1 4 0 0 0 0 0
  • 6 %
6 0 . 0 6 2 . 0 6 4 . 0 6 6 . 0 6 8 . 0 7 0 . 0 7 2 . 0 7 4 . 0 7 6 . 0 7 8 . 0 2 0 2 2 2 4 2 6 2 8 3 0 3 2 3 4 3 6 3 8 4 0 4 2 4 4 4 6 4 8 5 0 5 2 5 4 5 6 5 8 6 0 6 2 6 4 6 6 6 8 7 0 7 2 7 4 7 6 7 8 8 0

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Market context : Remains challenging

Economic uncertainty in face of COVID-19 Heightened volatility in crude & currency

5.2% 3.1%

  • 4.5%

1,397 11,54,917

JQ'19 MQ'20 Today GDP Projection COVID-19 Cases

IMF Forecast 2020 As on 20th July

MQ'18 DQ'18 SQ'19 MQ'20 June'20

Crude USD 4

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Our strategy is serving us well

Guiding framework 4G growth model Fundamentals of growth

Consistent, Competitive, Profitable, Responsible Growth Purpose-led, Future-Fit

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Good progress on focus areas

People Demand Supply Community Cost & Cash

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Agility and responsiveness enables turnaround in operations

New demand capture & Portfolio prioritization Capacity unlocks fulfilment models

Sanitizer – 100X | Handwash - 5X Number of SKUs eB2B: A competitive advantage

X 0.2X 0.3X 0.3X 0.5X 0.8X

  • Vs. pre-COVID levels

2X

Average order value & #SKUs ordered

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Nutrition business: Seamless virtual integration

Competitive growth Value-added innovations Enhancing accessibility

Domestic Sales Growth

+ 5%

Gaining Market Shares

Structural growth and margin opportunity remains unchanged

Market share basis volume for L3M May 2020 as per Kantar Worldpanel

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Addressing the consumer needs during COVID-19

Clean living, Protection Cocooning Conscious E-everything & Immunity Consumption

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c.80% portfolio in Health, Hygiene & Nutrition Dialling up ‘In-home’ Straddling the price-benefit pyramid Re-imagining HUL: A competitive edge High income Mid income Low income

₹ ₹ ₹ ₹ ₹ ₹

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JQ 20 : Resilient performance

#HULStandsWithTheNation Performance summary (Rs. 100 Crore committed)

Product donations Healthcare partnerships Protecting our ecosystem Creating mass awareness

Reported Turnover Growth Domestic Consumer Growth

+ 4%

  • 7%
  • 110 bps

25%

EBITDA Margin EBITDA Margin change

Difference between Reported Turnover Growth and Domestic Consumer growth reflects the impact of merger of GSK CH

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Srinivas Phatak

Chief Financial Officer

21st July, 2020

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JQ’2020: Resilient performance in current context

Growth EBITDA PAT (bei) Net Profit

Reported Turnover Growth

+ 4%

  • 7%

Domestic Consumer Growth EBITDA Margin

25%

  • 110 bps

Margin Change PAT (bei) Growth

+ 7% 1,873 Cr

PAT (bei) PAT Growth

+ 7% 1,881 Cr

PAT

Growth competitive : 86% business winning share*

Difference between Reported Turnover Growth and Domestic Consumer growth reflects the impact of merger of GSK CH *Basis L3M May 2020 volume data as per Kantar Worldpanel

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Health, Hygiene and Nutrition perform well

HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT

Sales Growth*

  • 2%
  • 4%
  • 12%

33% 39% 28%

*Sales growth excludes the impact of merger of GSK CH

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Home Care

Solid portfolio performance across Household Care and Fabric Wash

 Household Care: Penetration gains leading to strong growth across home & hygiene portfolio

  • Domex with sodium hypochlorite proven to kill the

virus in 60 seconds

 Fabric Wash: Stable performance in both mass

and premium portfolio

  • Surf Excel remaining consumer and contextually

relevant with #DaagGharPeRahenge

 Purifiers: Performance impacted due ‘Consumer Durables’ nature of category to the

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Beauty & Personal Care

Skin Cleansing outperforms; Discretionary categories impacted

 Skin Cleansing: Strong double-digit growth across formats led by Lifebuoy

  • Handwash & Sanitizers witness demand upsurge

 Oral Care: Good delivery with momentum on CloseUp strengthening  Hair Care: Demand picks up during latter half of quarter; Hair care is a key part of consumers’ consideration set for ‘Hygiene’ needs  Discretionary segments of Skin, Deos and Color : Adversely impacted

  • Green shoots in parts of Skin Care portfolio

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Foods & Refreshment

Strong growth across brands riding the trends: ‘In-home, wellness & immunity’

 Foods: Broad-based double-digits growth across segments on back of ‘In-home’ consumption tailwind  Beverages: Both tea & coffee deliver strong double- digits growths with consumption shifting ‘In-home’

  • Heightened consumer interest around wellness and

immunity augurs well

 Nutrition: Addressing consumer needs around nutrition & immunity

  • Launched Horlicks with added Zinc to address immunity

boosting need

 Ice Cream, Food Solutions & Vending: Severely impacted due to out-of-home consumption loss

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Portfolio snapshot in the times of COVID

Discretionary and Health, Hygiene & Nutrition supply constrained

Skin Cleansing, Home Care, Hair Care, Oral Care, Packaged Foods, Tea, Coffee

+ 6% c.80%*

JQ’20 USG

  • 45%

c.15%*

JQ’20 USG

Out of home

Skin Care, Color Cosmetics, Deos

Water, Ice Cream, Food Solutions, Vending

  • 69%

c.5%*

JQ’20 USG

*% Portfolio Contribution USG excludes the impact of merger of GSK CH 17

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P&L: Deft management to address volatility & support growth

Headwinds due to COVID-19 Cost agility

Adverse mix De-leverage COVID-related on-cost Savings agenda dialled up BMI spends recalibrated, competitiveness maintained Unlocking synergies from Nutrition business

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Segmental Performance

HOME CARE BEAUTY & PERSONAL CARE FOODS & REFRESHMENT INR 3,392 Cr INR 4,039 Cr INR 2,958 Cr

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Segmental Revenue Growth*

  • 2%

+ 52%

  • 12%

Segmental Margins** 19% 20% 28%

*Segment Revenue Growth = Segment Turnover growth + Other Operating Income + Impact of merger of GSK CH ** Segment Margins (EBIT) excludes exceptional items

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JQ’20: Results Summary

  • Rs. Crores

Particulars JQ’20 JQ’19 Growth %

Sales 10,406 9,984 4%* EBITDA 2,644 2,647 Flat Other Income (Net) 127 123 Exceptional Items – Credit / (Charge) (118) 7 PBT 2,411 2,563

  • 6%

Tax 530 808 PAT bei 1,873 1,751 7% Net Profit 1,881 1,755 7%

  • *Domestic Consumer Growth at - 7%
  • Exceptional items include costs related to Nutrition business merger and integration

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Special Dividend

Special Dividend per share

  • Business operations are well funded, and our financial model continues

to be strong

₹ 9.50 ₹ 2,232 Cr

  • Scheme of Arrangement for transfer of balance in General Reserve of Rs.

2187.33 crores to Profit & Loss Account was approved by Shareholders in

  • 2016. Subsequently the scheme was sanctioned by the Hon’ble National

Company Law Tribunal, Mumbai Bench, vide its order dated 30th August 2018.

  • The Board has approved the distribution of the reserves to shareholders

by means of a special dividend of Rs.9.50 per share.

Total Special Dividend

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Looking ahead

Near-term outlook Organizational strengths

 Unprecedented times : Difficult to estimate market growths and / or consumer demand.  Volatility in input costs and currency to

  • continue. Liquidity pressures remain elevated

Brand portfolio designed for future normal Strengths and experience Growth fundamentals working well Organizational agility and speed

Key metrics

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Competitive volume-led growth Absolute profit Cash delivery

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For more information and updates

Visit our website

Sensitivity: Publi