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Hindustan Unilever Limited

Investor Presentation Citigroup India Conference

S Srinivasan

VP Treasury M&A & Investor Relations Hindustan Unilever Ltd. 11th & 12th March, 2008

2

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

Overview India Opportunity HUL - Uniquely Placed Financials & Summary

4

Agenda

Overview India Opportunity HUL - Uniquely Placed Financials & Summary

Hindustan Unilever ­ a 75year history

~ 15,000 employees

5

Population 1027 Mln

5,545 Towns 2.5 Mln outlets

· · · · · · · · · · · · · · · · · · · · · · · · · ·

11.5

~ 1,200 managers ~ 2,000 suppliers & associates ~ 75 Manufacturing Locations · · · · · · · · · · · · ~ 45 C&FAs, 4,000 Stockists ~ Total Coverage 6.3 Mln Outlets ~ Direct Coverage 1 Mln outlets

6,38,000 Villages 5.0 Mln outlets

·

Turnover $ Mln

3473

·

Market Cap $ Bln

847

631

Britannia

540

PG Combined

476

Dabur

388

Marico

361

Colgate

3.3

323

GSK

308

Tata Tea

218

Godrej CP

2.1

1.5

1.3

1.0

0.9

0.7

0.7

GSK

0.6

P&G

HUL

Nestle

HUL

Nestle

Dabur

Colgate Tata Tea Marico Britannia Godrej

* Source: (1) Statistics on India, Total Coverage : AC Nielsen, Census of India 2001 (2) Statistics on Market reach : MRUC, Hansa Research - Guide to Indian Markets 2006 (3) P&G Turnover estimated turnover of PG HH, PG HP and Gillette (4) Turnover 2007 for all companies as per published accounts, where available

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Leadership across Diverse FMCG Categories

Market Leader

67.5 54.3 57.3 59.7 54.5 47.8 37.5 23.7 13.6 9.7 8.7 7.4

Packet Tea Coffee

48.8

Strong No. 2

44.0 39.1

29.5 28.1 30.3

22.7 20.8 14.5 3.4

Jams Toothpaste Ketchups

Fabric Personal Dishwash Skin Shampoo Talcum Wash Wash Powder

HUL ­ Market Share (%)

Competition Market Share (%)

Source : A.C Nielsen - Quarter Ended Dec 2007 Value shares

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Financial Overview 2007

Mn $ Turnover EBIT EBIT % PAT (bei) Reported Profit EPS Market Capitalisation Operating Cash Flow 3473 499 14.4% 448 487 21c ~11500 419

Soaps and Detergents 46% Others 2%

Exports 10%

Processed Foods 4% Icecreams 1%

Breverages 11%

Personal Products 26%

* Figures based on FY 2007 Audited Results

++ Market Capitalization as per NSE as on 6th Feb 2008

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Agenda

Overview India Opportunity HUL - Uniquely Placed Financials & Summary

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Opportunities & Challenges

India and its consuming class Increasing per capita income drives FMCG growth Opportunity to grow consumption and penetration Large scale potential to grow Foods Evolving trade structure

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India: Leading Emerging market Economy

10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0%

China India Russia Thailand South Africa Brazil Mexico

10.0% 8.4%

12.0 10.0

6.5%

1200 9.0 7.9 6.9 5.4 3.9 4.5 9.7 8.9 8.4 1000 800 600 400 200 0 2000 2001 2002 2003 2004 2005 2006 2007 2008

8.0 6.0

4.5% 4.20% 4.0% 3.0%

4.0 2.0 0.0

GDP Growth

Per Capita Income

599

Leading Economies in the World USD Billion (PPP basis, 2006)

12,980 10,000

551 424 461 494 505

4,220

4,042 2,585 1,723 1,616

USA

China

Japan

India

Germany

Russia

Brazil

2002

2003

2004

2005

2006

2007

* Source Euromonitor

Per capita Disposable Income ($)

Favourable Demographics

55 45 35 25 15 Europe US 2005 C hina 2020 World India (%) Population below 25 years

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C ountry

People in 15-64 age group (m) 691 934 85 147 123 200 497 (26) (50) (10)

Additions to population in 15-64 age group during 2005-2020 (m) 198 58 31 24 20

India C hina Japan Indonesia Brazil US Europe

0

50

100

150

200

250

45 40 35 30 25 20 15 10 1950 1960 1970 1980 Urban population as a % of total (% of total population)

Age-wise Population Distribution (2006)

1990

2000

2010

2020

2030

* Family Budget Study

India - 2013

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2003

181 mn hhlds

2013 231 mn hhlds

Rich Classes

Top End Business Changing attitudes

3 46 131

Affluent Aspirers Strivers

11 124 96

Aspiring Classes

Trebling Credit Culture

Striving Classes

B.O.P Opportunity

The shape of India is going to change... from a pyramid to a diamond

Source : National Council of Agriculture & Economic Research

Evolving trade structure...

Modern Trade General Trade

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Year 2007 2010 2025

Modern Trade 5% 10% 25%

General Trade 95% 90% 75%

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Increasing per capita income drives FMCG growth

Disposable income per capita vs HPC spend per capita

HPC Spend Per Capita (USD)

500 R2 = 0.8627 400 300 200 100 0 0 5000 10000 15000 20000 25000 30000 35000

India

Per Capita disposable Income (USD)

Per capita incomes drive consumption

Source: Euromonitor, Morgan Stanley Research' 2006

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Opportunity to grow consumption

Per Capita Consumption (US $ )

Detergents Mkt Size Mln. $ 2247

16.6 12.1 1.4

India India

Shampoo

22.9

Mkt Size Mln. $ 542

7.5 6.0 6.7

2.2

China

1.9

Indonesia Brazil Germany USA

0.3

India India

1.0

China

1.0

Indonesia Brazil USA Germany

Ice Creams

49.4 33.9

Skin care Mkt Size Mln. $ 698

12.2 36.6 26.9

0.2

India India

1.0

Indonesia

3.0

China

5.9

Brazil Germany USA

0.3

India India

3.2

China

0.8

Indonesia Brazil USA Germany

Source : Euromonitor, 2006

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Opportunity to grow penetration

Penetration %* Category Deodorants Toothpaste Skin Cream Shampoo Utensil Cleaner Instant Coffee Washing Powder Detergent Bar Toilet Soap All India % 2.1 48.6 22.0 38.0 28.0 6.6 86.1 88.6 91.5 Urban % 5.5 74.9 31.5 52.1 59.9 15.5 90.7 91.4 97.4 Rural % 0.6 37.6 17.8 31.9 14.6 2.8 84.1 87.4 88.9

Source : MRUC, Hansa Research - Guide to Indian Markets 2006 *Penetration numbers based on study conducted by Indian Readership Survey, on a sample size of ~250,000 based on usage in 6 months

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Foods Opportunity...

Bln. $

196

Packaged Food Market $14 Billion Largely Urban (80%), rapid historical growth: 13% Poised to accelerate: Income Elasticity of 1.33

6.6 138 5.2

HPC Market Size Food Market Ratio of Food Market to HPMC Market

3.8 75 21

Eastern Europe

2.3 6 14

India

37 19

Latin America Africa and West Asia

Packaged 5%

But bulk of food is still consumed fresh....unpackaged

Unpackaged 95% Source: Euromonitor, Family Budget Study

Agenda

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Overview India Opportunity HUL - Uniquely Placed Financials & Summary

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HUL ­ Uniquely Positioned to Create Value

Our Strategy Competitive Strengths Innovation and R&D capabilities to straddle the pyramid Versatile distribution network Strong Corporate Responsibility and Governance Strong Local talent base

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Our vision

To earn the love and respect of India, by making a real difference to every Indian.

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Our Strategy

Grow ahead of the market by leading market development activities Leverage positive impact of growing Indian economy on consumer spending Grow a profitable foods and Top end business Grow the bottom-line ahead of top line Strong commitment to sustainable development

An unmatched brand portfolio

6 MEGA BRANDS ~ $ 150 to 200 mn each, 53% FMCG portfolio

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Portfolio straddling the pyramid across categories

Particulars Market Size - $ mln HUL Share Nearest Competitor Laundry 2247 37.5% 13.6% Soaps 1658 54.3% 9.7% Shampoo 542 47.8% 23.7% Skin 698 54.5% 7.4% Toothpaste 691 29.5% 48.8% Tea 1113 22.7% 20.8% Coffee 177 44.0% 39.1%

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Affluent

Aspiring

Striving

Category Leadership: Laundry

Laundry Market Shares

36.5 35.2 34.5 34.1 34.3 34.6 37.0 37.5

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Q1-06 Q2-06 Q3-06 Q4-06 Q1-07 Q2-07 Q3-07 Q4-07

Affluent

Aspiring

Striving

Strong Global Brands: Dove Hair Care

PR

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Top 23 Cities

12

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 May'07 Jun'07 Jul'07 Aug'07 Sep'07 Oct'07 Nov'07 Dec'07

Modern Trade

10 8 6 4 2 0

l'0 7 n' 07 '0 7 '0 7 '0 7 '0 7 N ov ay '0 7 D ec Au g Se p Ju Ju ct '0 7

M

O

Building Category: Ponds Top End

· Superior Product - Well trained Beauty Advisors - Product Knowledge - Skin Analysis methodology - Creating Awareness among the target consumer ·98+% feel Ponds Age Miracle has made a visible difference to them ·Gained ~1.5% market share in 6 months post launch

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Building category- Processed Foods

Large snacking moments

Snacking incidence Snack Potato Chips Mixture Bhajiya Muri (east) % HHlds 37 43 27 27

West 16%

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Chatakdaar

... but low ketchup penetration

Hhld Panel

Ketchup

Penetration

17%

North 21% Metros East 31% 25% South 7%

Conversion from home made dips in ethnic snacking occasions

Launched in Q407

28.1 26.9 26.0 25.5

Jan - Mar 07

Apr - Jun 07

Jul - Sep 07

Oct - Dec 07

Growing `Out of Home' Opportunity

Growing incidence of Out of Home consumption Creating a Large &Growing Market ­ 58% LSM 8+ consumers work between 9 a.m. to 6 p.m. ­ Market in Premium channel estimated at 1500 cr. Growing at 23% p.a. HUL uniquely poised to unlock the opportunity ­ Dominant presence in both tea coffee & soup ­ Currently serve 1.7 bill cups per annum Appropriate customer/ consumer solutions to unlock value

Segment Topend

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Solution

Products Connoisseur Tea Bags, Turbo Tea Freshly brewed coffee, Ice Tea & Cold coffee Cardamom Tea, Bru Coffee, Tea Bag Tea

Masstige

Penetration

Leverage key relationships for accelerated growth:

Amaze: Brain Food

· What Scientist say:

­ The school-going period is a critical period for a child's brain development ­ Functions like reasoning, problem solving, planning, memory develop at this age.

Omega-3 Iron Protein Iodine

31 29

Zinc

Vitamin A Vitamin B2 Folate Vitamin B6 Vitamin C Vitamin B12

· Why Amaze: Each serving provides the right type of brain nutrients, in the right combination, giving children 33% of the daily required dosage for their mental development."

Iron Vitamin C Vitamin A Calcium Vitamin B6 Folate = half Kg of spinach = 1 orange = 2 mangoes = 4 boiled eggs = 4 tomatoes = 1 cup of cooked rice

Every product also includes Omega 3&6, which are building blocks of the brain.

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Water

Context ~ 220 Mln Households, where safe drinking water in short supply

`as safe as boiled water' without hassles of boiling no harmful virus, bacteria, parasites, pesticides Works without electricity & piped water Business model based on sale of consumables Affordable price: Cost of Unit - ~$ 45; Cost of battery - $ 7 Being Rolled out across key towns and urban areas COST 220 liters of pure water for $ 1

Proposition:

Our Strategy

Build brand image leadership & strong consumer relationship through effective communication; secure ongoing sale of consumables

Opportunity from increased penetration

Unique innovations & promotions to drive category penetration

Rural shampoo penetration : % households bought once/quarter

31

45 39 40 35 30 25 20 15 23 21 27 31 35 39

40

42

42

42

SSK Black 8m Rural plan

Rollout of Rs 1 (2 cents) and Rs 0.50 (1 cent) sachets

MQ 04 JQ 04 SQ 04 DQ 04 MQ 05 JQ 05 SQ 05 DQ 05 MQ 06 JQ 06 SQ 06

Low price shampoo sachets have helped drive category penetration

32

Innovation and R&D capabilities

HUL leads global research in Oral, Skin and Laundry Some achievements:

·

Single Shot Soap making process

·

· · · ·

Skin Lightening Cream

Non Soap Detergent Bars Poly coated Dish Wash Bar Drinking water purifier (Pure-It) Amaze

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Winning with "Go to Market Approach"

Total population (In Bln.) Number of Retail Stores (Mlns) FMCG Market (Annual, $ Mln)* Urban : Rural Ratio FMCG Growth (Value %) Store Density (Stores Per 1000 People) Per Capita FMCG Spend (Annual,$)

Distribution Strength

1.1 7.74 16448 67:33 11 Portfolio of category and Brands give unique reach in Modern Trade 6.8 Project Shakti, a competitive advantage in Rural India 14.5 Strong IT capability, end to end connectivity Unique channel Initiatives to Win at "Point of Purchase" Direct coverage ­ 1milllion outlets Brands reach ­ 6.3 million outlets

HIGHEST STORE DENSITY IN THE WORLD !

Source AC Nielsen

New Channel Initiatives

Channels

Family Grocer s Chemis t

34

HUL Programs SVS/ FLO

Unicare

Fancy

Beauty zone

Kiosk

K- LINE

Rural

Superstar & Shakti

Wholes al e

Vijeta/ Sambandh

Toothpaste

Tooth brush

Dish Wash Jams, Squashes Soap Custards and jelly LAUNDRY

DAIRY

Skin

Sanitary napkins

Hair

DIAPERS

DEO Paper pdts Coffee

MEAT

Tea

SOUP

SEASONINGS SAUCE OIL CHECKOUTS PASTA SAUCE SNACKS BAKERY

DELI

DRESSINGS

What sets us apart - Reaching Shoppers

Ice cream

WINE

Cosmetics

35

36

Organized retail - A source of competitive advantage

HUL Market Shares in Modern Trade 90

80 70 60 50 40 30 20 10 0 Toilet Soaps Washing Detergent Powders Cakes Hand Dish Wash Hair Wash Tooth Paste Skin Tea Instant Coffee

GT

MT

HUL Modern Trade (MT) Shares are higher than its General Trade (GT) shares in many categories

Source : AC Nielsen shares Vs. MT shares

Project Shakti- Enabling direct rural reach

To Reach: Small, scattered settlements and poor infrastructure make distribution difficult Over 500,000 villages not reached directly by HUL To Communicate: Low literacy hampers effectiveness of print media Poor media-reach: 500 million Indians lack TV and radio

Accessibility

37

Conventional business models 500,000 villages

To Influence: Turnover per market Low category penetration, consumption, brand awareness Per capita consumption in Unilever categories is 33% of urban levels

Shakti

Three Shakti initiatives Shakti entrepreneur; currently ~ 44000 women cover 1,25,000 villages Shakti Vani: one-to-many communication for category growth iShakti: customized interaction with remote consumers Impact on community Business and social impact can go together Partnerships with diverse stakeholders

38

Capabilities :Leveraging IT for Growth

Planning Hub Supplier

39

Kirana

Daily

Distributor

Daily

C & FA

Daily

Factory

Daily

Hand ­ held terminal

On shelf availability Stocks sales

Dist Mgmt System

Sales Stocks

Central Unify

-

Prod. Plan ­ wkly Despatch - Daily

Prices, Invoicing

35 Brands, 1500 skus 45 Depots, 4000 stockist

40

Corporate Responsibility ­ Aiding in the Development of the Country

Lifebouy Swasthya Chetana - Health & Hygiene

Shakti ­ Empowerment of women through micro-enterprise Opportunity

Yashodadham - Relief and Reconstruction in Gujarat's Kutch district Asha Daan - Happy Home actively supported by HUL

Combining corporate responsibility and business strategies to aid development of rural India

41

Agenda

Overview India Opportunity HUL - Uniquely Placed Financials & Summary

42

Key Financials

2007 Reported Growth Continuing sales growth* EBIT/ Sales % EBIT Growth Operating cash flow* 13.3% 13.5% 14.4% 15.4% $419 Mn

2006 9.4% 10.0% 14.1% 16.2% $365 Mn

2005 11.4% 11.5% 13.3% 1.1% $489 Mn

* Before restructuring, disposal As per audited financial statements of the company; accounting as per Indian GAAP

43

Robust FMCG growth

HUL FMCG Sales growth %

14.5 12.7 12.8 12.9

3.7

4.8 -0.5

3.6 0.3

2003 2004 2005 2006 FH 07 SH 07

2000

2001

2002

As per audited financial statements of the company; accounting as per Indian GAAP; Sales growth is worked out on a continuing basis i.e. after adjusting the base for disposals etc.

44

EBIT Margins

EBIT Margins

19.3% 15.5% 13.2% 20.1%

14.7% 13.3%

14.1%

14.4%

2000

2001

2002

2003

2004

2005

2006

2007

As per audited financial statements of the company; accounting as per Indian GAAP. Sales for the above calculations is Net sales (Gross Sales- Excise Duty)

45

Earnings per Share

Figures in US $ cents

HUL Earnings per Share

19.7 18.3 14.6 13.3 15.7 19.9 20.6 21.4

2000

2001

2002

2003

2004

2005

2006

2007

As per audited financial statements of the company; accounting as per Indian GAAP Earnings per Share= Net Profit (aei) /No. of Shares; Calculations in constant turnover terms

46

Return On Capital Employed

79.4 64.6 68.7 62.4 59.4 60.2 45.9 67.0

2000

2001

2002

2003

2004

2005

2006

2007

As per audited financial statements of the company; accounting as per Indian GAAP ROCE= PBIT/Closing Capital Employed 2007 ROCE is calculated on Weighted Avg. Cap employed

47

Return On Net Worth

82.8 68.1 52.7 53.9 48.4 57.2 61.1 80.1

2000

2001

2002

2003

2004

2005

2006

2007

As per audited financial statements of the company; accounting as per Indian GAAP RONW= Net Profit (aei) / Closing Net Worth 2007 RONW is calculated on Weighted Avg. Net worth

48

Summary

3rd consecutive year of accelerated growth in FMCG portfolio. Growth broad based and across all categories FMCG markets expected to maintain current growth levels Successfully implement the Foods strategy Build momentum to the Water Business Build on competitive capabilities across business system Manage Cost inflation effectively to improve margins through pricing, cost savings and better mix Strong commitment to governance and CSR

Thank you

Hindustan Unilever Limited

Investor Presentation Citigroup India Conference

S Srinivasan

VP Treasury M&A & Investor Relations Hindustan Unilever Ltd. 11th & 12th March, 2008

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