hindustan unilever limited

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Hindustan Unilever

LimitedANNUAL REPORT 2013-2014


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HINDUSTAN UNILEVER AT A GLANCE

WHO WE ARE

Hindustan Unilever Limited is one of the leadingfast-moving consumer goods companies in India.We own some of the best-known and best-loved

brands like Dove, Surf, Kissan, Bru and Pureit.

WHAT WE DO

We build our brands and develo

products through extensive consumerelentless innovation, and crystal-cleand marketing.

We are committed to making sustaliving commonplace and work to d

new ways of doing business that wilour environmental footprint and incr

positive social impact.


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Pros Cons

Company is virtually debt free. Stock is trading at 36.57 times itvalue

Promoter's stake has increased The company has delivered a pof 6.44% over past five years.

Company has a good return on equity(ROE) track record: 3 Years ROE 112.05%

Company has been maintaining a healthydividend payout of 68.10%

Hindustan Unilever LimitedMarket Cap: 158511.97 Crores Current Price: 732.80 Book Value: 20.04

Stock P/E: 42.35 Dividend Yield: 1.48% Stock is 1.00 paid upCurrent ratio: 0.74 Net profit: 3905.09Rs.Cr

EPS: 18.05 Rs. Return on equity: 129.98 %


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HindustanUnilever Limited


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49

29.1

11.9

5.94.1

SEGMENTAL REVENUE (%)

Soaps and Detergents Personal Products

Beverages Packaged Foods

Others

40.1

46.4

131.4-0.8

SEGMENTAL RESULTS (%)

Soaps and Detergents Personal Product

Beverages Packaged Foods

Others


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FINANCIAL

NET REVENUE

2013-14

Rs. 28,019crores

The domesticconsumerbusiness grewby 9% with 4%underlyingvolumegrowth in achallengingenvironment

OPERATINGPROFIT

2013-14

Rs. 4,215crores

Operatingprofit grew by12% withoperatingmarginsimproving +40bps

EPS (BASIC)

2013-14

Rs. 17.88 pershare

Last yearbasic EPS: Rs.17.56 pershare

CAOP

201

Rs. cro

Caopewa462ovepre


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NON-FINANCIALManufacturing 2013

27%

2012: 22%

Reduction in CO2 per tonne of production compared to 200

2013

37%

2012: 29%

Reduction in water use per tonne of production compared tbaseline

2013

>84%

2012: 77%

Reduction in total waste per tonne of production compared

baseline


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NON-FINANCIAL

BETTER

LIVELIHOODS

2013

65,000

2012: 48,000

No. ofShaktiammas(women ShaktiEntrepreneurs)selling ourproducts.

SUSTAINABLE

SOURCING

2013

80%

2012: 60%

Tomatoes usedin Kissanketchupsourcedsustainably.

HEALTH A

WELL-BEIN

2013

58 million

2012: 47 M

Peoplereached wLifebuoyHandwashProgrammsince 2010


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BUSINESS MODEL

PROFITABLE VOLUME GROWTH

COST LEVERAGE + EFFICIENCY

INNOVATION + MARKETING INVESTMENT


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CHAIRMANS STATEMENT

The financial year ended March 2014 was another successful year, wher

challenging environment, the business grew well ahead of competition. During the year, Unilever increased its stake in the Company from 52.48%

through an open offer.

Despite the Indian economy witnessing a slowdown, the Company delivresults. The domestic consumer business grew by 9% with 4% underlying vgrowth which was ahead of the market.

The final dividend of Rs. 7.50 per share proposed by the Board of Directointerim dividend of Rs. 5.50 per share already paid, the total dividend foryear ending 31 March 2014 amounts to Rs. 13.00 per share.


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CHAIRMANS STATEMENT

We made good progress on the Unilever Sustainable Living Plan. In line widoing well by doing good, we launched the Perfect Village programme

states. Under this initiative, we created awareness about health and wellbrural consumers and at the same time, improved the availability of our prvillages. The Lifebuoy Handwashing Programme now touches 58 million cIndia.

In our endeavour to serve the consumers in the farthest corners of Iexpanded our direct retail reach and strengthened our in store executio

our Perfect Stores programme to 1 million stores by the end of 2013.


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INNOVATIONSInnovations touched most of our product portfolio and delivered strong growth. Wea host of innovations across our businesses by leveraging Unilevers global portfolio

research and technology.

Surf Excel launched the firstmain-wash liquid detergent in

May

Domex Zero Stain was launchedreinstating the cleaning

properties of Domex

In personal care we the Best Ever Fair

Ponds BB+ cream, Lcream and Vaseline

White

Hair Care and Skin Care brandswere premiumised with Lakm

Pro-Stylist, TRESemm andToni&Guy being some of the

innovations this year.

In beverages, green tea wasadded to the Lipton and Taj

Mahal range. Magnum,Unilevers most premium icecream brand globally, was

launched in Chennai in 2013and has been extended to

more cities this year.


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Our People

EMPLOYER OF CHOICE

ATTRACTING THE RIGHT

TALENT

DEVELOPINGLEADERS

FOR THE FUTURE

A LEARNINGCULTURE

OF 70:20:10

UPHOLDING BRAND

IMAGE DIGITALLY

CREATING ANAGILE,FLEXIBLEORGANISATION

DRIVINGEMPLOYEE

ENGAGEMEN


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Our Operations

GENERATING CUSTOMER DELIGHT

STRENGTHENINGPARTNERSHIPS

EXECUTINGEXCELLENCE

IMPROVING

ECO-EFFICIENC

DELIVERINGSAVINGS

hindustan unilever limited

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