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JP M organ Investor Conference, Goa 30th Oct, 200230th October , 2002
JP M organ Investor Conference, Goa 30th Oct, 2002
ContentsContents
• Company Overview
• Indian Economy - Snapshot
• Strategy Update
• SQ & YTD SQ Results - Highlights
• 2003 & Beyond…..
• Performance Trends
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
Company OverviewCompany Overview
JP M organ Investor Conference, Goa 30th Oct, 2002
Hindustan Lever…. India’s largest & leading FM CG com pany
Hindustan Lever…. India’s largest & leading FM CG com pany
Turnover Rs 110 Bln
EBITDA (Operational) Rs 18 Bln
Net Profit (bei) Rs 16 Bln
EPS (Re 1) Rs 7.46
Economic Value Added Rs 11 Bln
Market Capitalisation - Oct ‘02 Rs 385 Bln
ROCE 62 %
* Figures based on last published Annual Accounts - 2001
JP M organ Investor Conference, Goa 30th Oct, 2002
Corporate PurposeCorporate Purpose
Our purpose is to meet the
everyday needs of people everywhere -
to anticipate the aspirations of our
customers and consumers and to
respond creatively and competitively
with branded products and services
which raises the quality of life
JP M organ Investor Conference, Goa 30th Oct, 2002
200
250
300
350
400
450
500
550
Market Cap 537 385 340 340 247% of Total Mkt 9.8 7.0 6.2 6.2 4.5
ONGC HLL Reliance Wipro Infosys
M arket Capitalisation M arket Capitalisation
Source : Mkt Capitalisation at BSE ( 16th October 2002 )
Rs
Bln
JP M organ Investor Conference, Goa 30th Oct, 2002
Personal Prod21%
Beverages13%
Foods7%
Ice Creams1%
Exports12%
Others3% Soaps &
Dets43%
Soaps 3.9 LTPA
Synthetic Detergents 8.9 LTPA
Personal Products 4.8 Bln units
Beverages 1.5 LTPA
Branded Staple Foods 3.7 LTPA
Product PortfolioProduct Portfolio
* Based on 2001 volumes* Based on FH 2002 segmental revenues
VOLUMES SOLD
Home & Personal Care 64%Foods & Beverages 21%FMCG (HPC + Foods) 85%Exports 12%Others 3%
SALES PROFILE
JP M organ Investor Conference, Goa 30th Oct, 2002
Source : ORG Value Shares (urban+rural)
Market Share % Aug 2002
Personal Wash 59.6
Detergent Powders 39.3
Detergents Bars 46.6
Dishwash 58.8
Toothpaste 34.2Shampoo 59.5Skin (excl. Talc) 53.6Talcum Powder 65.4
Market SharesMarket Shares
Market Share % Aug 2002
Packet Tea 34.5Coffee 45.7Atta 11.1Branded Salt 14.5Jams 75.0Ketchup 32.5Vanaspati 20.4
FOODSHPC
JP M organ Investor Conference, Goa 30th Oct, 2002
0
10
20
30
40
50
60
70
80
90
100P
ers
on
al W
ash
Fab
ric
Wa
sh
Ho
use
ho
ld C
are
Sk
in
To
oth
pa
ste
Ta
lcu
m P
ow
de
r
Ha
ir W
ash
Ha
ir O
ils
De
od
ran
ts
Pa
cke
t T
ea
R&
G C
off
ee
Inst
an
t C
off
ee
Jam
s
Ke
tch
up
s
Ice
Cre
am
s
Bra
nd
ed
Sta
ple
s
Bra
nd
ed
Sa
lt
Oils
& F
ats
Market Leader Strong No. 2
Hindustan Lever….dom inant player across FM CG
categories
Hindustan Lever….dom inant player across FM CG
categories
Mark
et
Sh
are
%
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
Indian EconomyIndian Economy
JP M organ Investor Conference, Goa 30th Oct, 2002
• GDP 2002-03 estimated at USD 500 Bln
• Preponderance of population in agriculture
• Rising share of services
• Per Capita Income growing at 9% CAGR
• Concern over Fiscal Deficit
• Infrastructure constraints
- power, telecom, roads
Intellectual capital to leverage ‘knowledge’ industries
The Indian Economysnapshot
The Indian Economysnapshot
67%
12%21%
29% 24%
47%
Agriculture Industry Services
Popluation GDP
JP M organ Investor Conference, Goa 30th Oct, 2002
• GDP growth for 2002-03 estimated to be 5%
• Poor monsoons lead to a fall in Kharif output - overall impact on agri growth to be assessedbased on Rabi crop ( 50% contribution )
– impact on inflation curtailed in view of adequate foodgrain stocks of 60 Mln Tons
• Industrial growth showing marginal upturn - buoyed by infrastructure projects
• Steady rupee - can affect exports if remains overvalued
• Fiscal deficit continues to be under pressure - divestments remain critical
• Foreign exchange reserves of USD 63 Bln at all time high
• Interest rates remain soft - yield on 10-yr Govt bonds fall below 7%
• Marginal increase in inflation - likely to be contained at single digit level
• FMCG markets continue to remain depressed - slight pick up in July
The Indian Economyem erging scenario
The Indian Economyem erging scenario
JP M organ Investor Conference, Goa 30th Oct, 2002
G row th % 2000 2001 Y T D A u g ‘02
P erso n a l W ash 6 .1 (9 .6 ) (8 .1 )
F ab ric W ash 5 .7 (2 .1 ) (3 .4 )
D ishw ash 19 .2 12 .4 0 .1
T o o th paste 10 .0 2 .0 (4 .9 )
S h am p o o 12 .5 11 .1 10 .1
S k in P ro d u c ts 12 .9 3 .1 (3 .2 )
P ackag ed T ea 0 .3 (6 .6 ) (10 .5 )
A tta 38 .1 6 .9 (11 .6 )
H P C 7 .6 (1 .7 ) (4 .3 )
F M C G 6.7 (1 .9 ) (3 .5 )
Source: ORG Value
Market GrowthMarket Growth
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
Strategy UpdateStrategy Update
JP M organ Investor Conference, Goa 30th Oct, 2002
Growth thru’ focus on
Power Brands
ImprovingFoods
Profitability
Securing the future of the Non-FMCG businesses
KEY STRATEGIC OBJECTIVES
Strategy RecapStrategy Recap
…..sustained profitable “quality” growth
JP M organ Investor Conference, Goa 30th Oct, 2002
sustainable profitable “quality” growth
Focus on Power Brands
ImproveFoods
Profitability
Secure thefuture of non FMCG
Strategy RecapStrategy Recap
JP M organ Investor Conference, Goa 30th Oct, 2002
• Focus on fewer , stronger Power Brands
• Creating space for growth by redefining potential
• Growth the the Power Brands by
– consumer relevant innovation– cross category extensions– leveraging channel opportunities
Profitable growth of FMCG businessProfitable growth of FMCG business
JP M organ Investor Conference, Goa 30th Oct, 2002
• Focus resources on 30 Power brands
• Power brands selected to deliver
sustainable profitable growth
• Marketing spend, level of innovation
supported by consumer insight & new
technology platforms
Focus on Power BrandsFocus on Power Brands
✔ Greater rigour
✔ Focused advertising and promotion spend
✔ Reduction in brand cannibalisation
✔ Brand extension across categories toleverage brand personality
✔ Efficient supply chain
✔ Effective market activation
moremoremoreisisisisisisisisisisisislesslessless
30 30 PowerPowerBrandsBrands
1010RegionalRegionalJewelsJewels
63 Brands63 Brands110 Variants110 Variants
JP M organ Investor Conference, Goa 30th Oct, 2002
20.0
10.0
3.7 2.7
02468
10121416182022
West Europe USA Phillipines India
902 843
353
200
100200300400500600700800900
1000
UK USA Argentina India
DETERGENTSPer Capita ( Kgs )
SKIN CARE PRODUCTSPer Capita ( Rs )
Redefining Potentialopportunity in ‘m ature’ HPC categories… ...
Redefining Potentialopportunity in ‘m ature’ HPC categories… ...
358.0299.0
4.00
50
100
150
200
250
300
350
400
Brazil USA India
1018.0
444.0
16.00
100200300400500600700800900
10001100
USA Brazil India
TOOTHPASTEPer Capita ( Ml )
SHAMPOOPer Capita ( Ml )
JP M organ Investor Conference, Goa 30th Oct, 2002
22.00
1.00 0.9802468
1012141618202224
USA Pakistan India
2.60
0.950.64
0
1
2
3
4
5
UK Pakistan India
ICE CREAMSPer Capita ( Ltr )
TEAPer Capita ( Kgs )
Redefining Potential… … … .& in Foods
Redefining Potential… … … .& in Foods
JP M organ Investor Conference, Goa 30th Oct, 2002
G rowth in current categoriesG rowth in current categories
Clearly differentiated strategies for :• High penetration categories > 50%
- drive upgradation / consumption• Low penetration categories
- drive penetration
Penetration %
Growth %
Toilet Soaps
Laundry - NSD
Sham poo
Toothpaste
Skin Cream s
5% 10% 15%
Ice-Cream s
Tea
Tom ato
StaplesDeodorant
Colour Cosm etics
DishW ash
90%
50%
30%
70%
JP M organ Investor Conference, Goa 30th Oct, 2002
LIRIL
LEVER AYUSH
FAL AYURVEDA
KNORR ANNAPURNA RICE
DALDA ACTIV
KISSAN
LIFEBUOY
LIPTON ICE TEA
Growing the Power Brands consum er relevant innovation
Growing the Power Brands consum er relevant innovation
JP M organ Investor Conference, Goa 30th Oct, 2002
FAIR & LOVELYSkin Creams to Soaps
MAXIce Creams to Confectionery
LAKMEColour Cosmetics to SkinProducts & Beauty Salons
Growing the Power Brands cross category extensions
Growing the Power Brands cross category extensions
JP M organ Investor Conference, Goa 30th Oct, 2002
• New ‘OOH’ consumption opportunities for Tea, Coffee, Ice Cream
• Develop services business (Lakme, Aviance)
• Out-of-Home business unit in Bangalore to lead the activity
• Dedicated resources to grow institutional business in 3 regions
• Wholesale channel opportunity
• Concern approach to Modern Trade servicing - differentiated service mix,
key account management
• E-Tailing
Growing the Power Brands leveraging channel opportunities
Growing the Power Brands leveraging channel opportunities
JP M organ Investor Conference, Goa 30th Oct, 2002
Leveraging Channel Opportunitiesprom oting ‘OOH’ consum ption thru’ Tea
Vending
Leveraging Channel Opportunitiesprom oting ‘OOH’ consum ption thru’ Tea
Vending
JP M organ Investor Conference, Goa 30th Oct, 2002
Leveraging Channel Opportunitiesprom oting ‘OOH’ consum ption thru’ Softy
Vending
Leveraging Channel Opportunitiesprom oting ‘OOH’ consum ption thru’ Softy
Vending
JP M organ Investor Conference, Goa 30th Oct, 2002
Leveraging Channel OpportunitiesLakm e Beauty Salons
Leveraging Channel OpportunitiesLakm e Beauty Salons
JP M organ Investor Conference, Goa 30th Oct, 2002
Leveraging Channel OpportunitiesAviance
Leveraging Channel OpportunitiesAviance
JP M organ Investor Conference, Goa 30th Oct, 2002
Power Brands drive HPC growth… ...beat the m arket
Power Brands drive HPC growth… ...beat the m arket
-5.7-4.5
-1.6-3.0
5.44.3
-6.6
5.9 6.3
-8
-6
-4
-2
0
2
4
6
8
HPC MARKET HLL GROUP HPC GROUP POWER BRANDS
MQ 2002 JQ 2002%SQ 2002
* Figures restated for change in policy
JP M organ Investor Conference, Goa 30th Oct, 2002
Fair & Lovely : 43% Lifebuoy : 35% Pears : 24%
Wheel : 12% Lux : 11% Clinic : 9%Ponds : 11%
Lakme : 16%
Power Brands lead HPC growth… … .yet again in SQ’ 02
Power Brands lead HPC growth… … .yet again in SQ’ 02
JP M organ Investor Conference, Goa 30th Oct, 2002
Focus on Power Brands
ImproveFoods
Profitability
Secure thefuture of non FMCG
Strategy RecapStrategy Recap
sustainable profitable “quality” growth
JP M organ Investor Conference, Goa 30th Oct, 2002
• Reasonable scales of operations achieved
• Focus now on improving profitability
• Portfolio rationalisation
• Value added innovation
• Re-engineering the supply chain
• Improve margins on traditional portfolios -Tea, Oils
• Stop value destruction in Ice Creams - new strategy formulated
• Turnaround Modern Foods
•Aggressive investments in brand building & developing new categories
Profitability of the Foods businessProfitability of the Foods business
Foods business to be “fit for growth & scale”
JP M organ Investor Conference, Goa 30th Oct, 2002
SQ YTD2001 2002
Sustained improvement inunderlying profitability of Foods
Sustained improvement inunderlying profitability of Foods
SQ YTD2001 2002
G ross M argin Im provem ent
+330 bps +140 bps+350 bps +810 bps
FoodsBeverages
• Beverages & Foods gross margins up by 530 bps in YTD ‘02 (SQ ‘02 : + 240 bps)
• Modern Foods continues to perform well - margins up 580 bps in YTD ‘02
JP M organ Investor Conference, Goa 30th Oct, 2002
focus
onin
in
prem ium productsprem ium productsprem ium outletsprem ium outletsfew citadelsfew citadels
Ice Creams : new strategy paying off...Ice Creams : new strategy paying off...
SQ YTD2001 2002
+1600 bps +1250 bps
• New Strategy delivers sustained improvement inGross Margins
• Focussed business model• Significantly improved results
G ross M argin Im provem ent
JP M organ Investor Conference, Goa 30th Oct, 2002
Focus on Power Brands
ImproveFoods
Profitability
Secure thefuture of non FMCG
Strategy RecapStrategy Recap
sustainable profitable “quality” growth
JP M organ Investor Conference, Goa 30th Oct, 2002
NonFM CGbusinessAFS
Quest
Nickel Catalyst
Adhesives
Seeds
Diversey Lever
DIVESTED TRANSFER
Leather
Mushrooms
Sales impact of Divestments / TransfersRs 202 Crores ( YTD ‘02 vs ‘01 )
Transferred to subsidiariesfor potential JV / disposal
Securing the future of Non FMCGSecuring the future of Non FMCG
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
Results HighlightsResults Highlights
JP M organ Investor Conference, Goa 30th Oct, 2002
• 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 surpluses
• Profit after tax ( before exceptional items ) grows by 11.2%
• Exceptional Cost of Rs 6.8 Cr ( SQ’01 - Income Rs 21.5 Cr ) due to Mushrooms transfer
• Progress on strategy well on course
SQ ‘02 Results - SnapshotSQ ‘02 Results - Snapshot
JP M organ Investor Conference, Goa 30th Oct, 2002
• 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 Products back on track for near double digit growth (+9.5%)– Skin continues to report strong growth (+48.6%)– Shampoo bounces back to growth (+2.9%) - driven by strategic responses on pricing & volume gains from introduction of new sachets / bottles– Talcs recover - driven by Ponds, Lakme drives growth in colour cosmetics– Toothpaste & Hair Oil sales decline - impact overall growth
HPC Category Performance HPC Category Performance
HPC Share YTD 01 YTD 02% Revenue 56.4 64.1% Profit 83.8 86.6
JP M organ Investor Conference, Goa 30th Oct, 2002
• 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
Foods Performance Foods Performance
Portfolio restructuring & margin expansion well on course
JP M organ Investor Conference, Goa 30th Oct, 2002
R s C ro res S Q 2 00 1 S Q 2 00 2 G ro w th %
D o m es tic F M C G 20 66 20 48 (0 .9 )
- H P C 14 86 15 59 4 .9
- F o o d s 57 9 48 9 (15 .7 )
E x p o rts 27 3 28 0 2 .5
- F M C G 17 3 16 4 (5 .2 )
- N o n F M C G 10 1 11 6 15 .6
O th e rs 52 39 (25 .2 )
C O N T IN U IN G B U S IN E S S E S 23 91 23 66 (1 .0 )
D is p o s a ls / D isc o n tin u ed 16 0 1 (99 .1 )
N E T S A L E S 25 51 23 67 (7 .2 )
SQ 2002 Sales SummarySQ 2002 Sales Summary
JP M organ Investor Conference, Goa 30th Oct, 2002
R s C ro res Y TD 2001 Y TD 2002 G row th %
D o m estic FM C G 6342 6301 (0 .6 )
- H P C 4613 4746 2 .9
- Foo ds 1729 1556 (10 .0)
E xports 883 853 (3 .4 )
- FM C G 539 485 (10 .0)
- N on F M C G 344 368 6 .9
O th ers 123 116 (5 .9 )
C O N TIN U IN G B U S IN E S S E S 7348 7270 (1 .1 )
D isposa ls / D isco ntinued 623 50 (91 .9)
N E T S A LE S 7971 7320 (8 .2 )
YTD 2002 Sales SummaryYTD 2002 Sales Summary
JP M organ Investor Conference, Goa 30th Oct, 2002
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
SQ 2002 ResultsSQ 2002 Results
JP M organ Investor Conference, Goa 30th Oct, 2002
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
YTD 2002 ResultsYTD 2002 Results
JP M organ Investor Conference, Goa 30th Oct, 2002
Rs.Crores SQ2001
SQ2002
%Change
YTD2001
YTD2002
%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)
Exports 420 280 (33.3) 1361 888 (34.8)
Others 149 86 (42.2) 490 261 (46.6)
Total Segment Revenue 2632 2415 (8.2) 8196 7451 (9.1)
Less: Inter Segment Revenue (74) (28) (61.7) (207) (71) (65.4)
Net Segment Revenue 2558 2386 (6.7) 7989 7380 (7.6)
Segmental RevenueSegmental Revenue
JP M organ Investor Conference, Goa 30th Oct, 2002
Rs.Crores SQ2001
SQ2002
%Change
YTD2001
YTD2002
%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 11 12 7.2 46 58 25.3
Others 1 2 97.6 36 (2)
Total Segment Results 461 511 10.8 1325 1504 13.6
Less: Interest Expense (3) (2) (30.7) (6) (8) (34.1)
Add: Unallocable net income 20 26 30.3 14 10 (30.6)
Total Profit Before Tax 478 535 11.9 1333 1506 13.0
Segmental ResultsSegmental Results
JP M organ Investor Conference, Goa 30th Oct, 2002
Focus on Profitability… … im proved segm ental m argins in SQ ‘02
Focus on Profitability… … im proved segm ental m argins in SQ ‘02
26.3
31.6
15.3
2.6
18.8
27.1
32.2
20.0
4.2
22.5
0
5
10
15
20
25
30
35
40
Detergents Personal Prod Beverages Exports Overall
SQ 2001 SQ 2002
%
Segm
enta
l Mar
gins
JP M organ Investor Conference, Goa 30th Oct, 2002
Focus on Profitability… … continued trend on im proved segm ental m argins
Focus on Profitability… … continued trend on im proved segm ental m argins
21.4
29.6
15.0
3.4
16.8
24.6
32.9
19.0
6.5
20.5
0
5
10
15
20
25
30
35
40
Detergents Personal Prod Beverages Exports Overall
YTD SQ 2001 YTD SQ 2002
%
Segm
enta
l Mar
gins
JP M organ Investor Conference, Goa 30th Oct, 2002
Focus on profitability continuesFocus on profitability continues
% YTD 2001 YTD 2002
Return on Net Worth 49.1 45.3
ROCE 61.9 58.1
Rs Crore SQ 2001 SQ 2002 % Growth
Operating Profit (PBIT) 389 454 16.6
Operating Margin % 15.3 19.2 +390 bps
JP M organ Investor Conference, Goa 30th Oct, 2002
PortfolioRationalisation
Focus on FoodsProfitability
Cost ManagementInitiatives
8
10
12
14
16
18
20
1996 1997 1998 1999 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2000 2001 2002
Rolling 12-month EBITDA Margins
EBITDA Margin ProgressionEBITDA Margin Progression
% Sales
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
2003 & Beyond….2003 & Beyond….
JP M organ Investor Conference, Goa 30th Oct, 2002
brand vision
innovation
growthopportunitiesg new categories
g new consum ers
g new consum ptionopportunities
Shaping Brands for GrowthShaping Brands for Growth
JP M organ Investor Conference, Goa 30th Oct, 2002
i Reorganised sales force by custom er type
i Single m inded focus on secondary sales
i “Back-to-Basics”
The ‘HLL Way in Sales’The ‘HLL Way in Sales’
JP M organ Investor Conference, Goa 30th Oct, 2002
A New Exports Horizongrowing a $ Bln sourcing business out of India
A New Exports Horizongrowing a $ Bln sourcing business out of India
g Leveraging on cost arbitrage opportunities withthe West & Unilever sourcing
g Focus on categories with company / countryspecific advantage
g Build sourcing partnerships on the basis of- World class quality- Technological / process expertise- Customer service- Cost competitiveness
g Export sourcing opportunities not at the cost ofdomestic business
g Sourcing business will improve Exports marginbasket
87 73
27
100
13
HPC Foods Others
Unilever 3P
LeveragingUnilever
JP M organ Investor Conference, Goa 30th Oct, 2002
• RS-net implementation- Connectivity with HLL RSsi Benefits
qSystem cost reductionqSecondary Sales TrackingqRobust sales & production planningqHigher ROI for Redistribution StockistqField force focus on “the HLL Way of Sales”
• Project Leap- Personal wash pilot- Phased roll-out
• Shared services:- Technical capability established- Roll-out in progress
A New Paradigm Supply ChainA New Paradigm Supply Chain
...m ake today what we
sold yesterday
...m ake today what we
sold yesterday
JP M organ Investor Conference, Goa 30th Oct, 2002
Driving New InitiativesDriving New Initiatives
E-TailingE-Tailing
WaterWaterRuralRural
ConnectivityConnectivity
JP M organ Investor Conference, Goa 30th Oct, 2002
Team working drives Enterprise CultureTeam working drives
Enterprise Culture
i Goal Alignment
i Emotional Bonding
i Shared Values
Truth
CaringAction
Courage
Growth
Values form the bedrock of our Culture to drive Growth
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
Performance TrendsPerformance Trends
JP M organ Investor Conference, Goa 30th Oct, 2002
0
20
40
60
80
100
120
Net Sales 78.2 94.8 101.5 106.0 109.71997 1998 1999 2000 2001
Rs Bln
CAG R 8.8%
Net SalesNet Sales
JP M organ Investor Conference, Goa 30th Oct, 2002
0
5
10
15
20
25
1997 1998 1999 2000 20010%
4%
8%
12%
16%
20%
EBITDA % on Sales
EBITDA=PBT ( bei ) + Depn + Interest
% SalesRs Bln
Operating Profits / MarginsOperating Profits / Margins
JP M organ Investor Conference, Goa 30th Oct, 2002
7.48.8
10.612.4
14.0
0
3
6
9
12
15
1997 1998 1999 2000 2001
% Sales
Based on PAT ( before exceptional item s )
Net MarginsNet Margins
JP M organ Investor Conference, Goa 30th Oct, 2002
0
1
2
3
4
5
6
7
8
EPS ( Re 1 ) 2.81 3.67 4.86 5.95 7.461997 1998 1999 2000 2001
CAGR 27.6%
Rupees per Share
Earnings Per ShareEarnings Per Share
JP M organ Investor Conference, Goa 30th Oct, 2002
0
1
2
3
4
5
6
DPS ( Re 1 ) 1.7 2.2 2.9 3.5 5.0
1997 1998 1999 2000 2001
CAGR 31 %
Rupees per Share
Dividend Per ShareDividend Per Share
JP M organ Investor Conference, Goa 30th Oct, 2002
9.8 9.0 8.38.89.3
54.2
41.9
63.9
0
10
20
30
40
50
60
70
1997 1998 1999 2000 2001
Tim es
W orking CapitalW orking Capital
Fixed AssetsFixed Assets
NegativeWorking Capital
Asset TurnoverAsset Turnover
JP M organ Investor Conference, Goa 30th Oct, 2002
6159
62 62
4649
5153 54
65
30
40
50
60
70
1997 1998 1999 2000 2001
%
RONW based on PAT ( before exceptional item s )
ROCEROCE
RONWRONW
ReturnsReturns
JP M organ Investor Conference, Goa 30th Oct, 2002
3.7
5.5
6.9
8.6
10.8
0
2
4
6
8
10
12
1997 1998 1999 2000 2001
* EVA = Net Operating Profit after Taxes - Cost of capital Employed
Rs. BlnCAGR 31.2 %
Economic Value AddedEconomic Value Added
EVA / Cap Empl % 28.4 33.2 33.5 35.9 38.4
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
HINDUSTAN LEVER LIM ITEDJP Morgan Conference , Goa
Thank YouThank You