#116th July, 2018 Hindustan Unilever Limited Hindustan Unilever Limited Unilever House B D Sawant Marg Chakala, Andheri East Mumbai 400 099 Tel: +91 (22) 3983 0000 Web: www.hul.co.in CIN: L15140MH1933PLC002030 Stock Code BSE: 500696 NSE: HINDUNILVR ISIN: INE030A01027 BSE Limited, Corporate Relationship Department, 2nd Floor, New Trading Wing, Rotunda Building, P.J. Towers, Dalal Street, Mumbai - 400 001 National Stock Exchange of India Ltd Exchange Plaza, 5th Floor, Plot No. C/1, G Block, - Bandra Kurla Complex, Bandra (E), Mumbai - 400 051 Dear Sir, Sub: Investor Presentation 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 financial results of the Company for the quarter ended 30th June, 2018. Please take the above information on record. Thanking You. Yours faithfully, For Hindustan Unilever Limited DUSTAN NILEVER MUMBAI VER LTD Dev Bajpai Executive Director (Legal & Corporate Affairs) and Company Secretary DIN:00050516/ FCS: F3354#2JQ'18 Results Presentation : 16th July 2018 Hindustan Unilever Limited ALOE INFUSED SKINCARE & MAKEUP LAKME NATURALE MATTE STICKS 905 INFUSED VINE ALLE VEYA & TONE LAKME NATURALE MATTE STICKS TOO IRENSEL WITH ALOE VERA & HOME MOTURALE MATTE STICKS m LAKME NATURALE MATTE STICKS STOO INFUSED WITH ALOE VERA & HONEY LAKME 9T05 NATURALE RANGE LAKMĒ Этоб ALOE AQUA GEL NATURALE#3Safe Harbor Statement Hindustan Unilever Limited 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. 2#4Agenda 1 Strategy 2 3 Current Quarter Performance Looking Ahead Hindustan Unilever Limited 3#5Clear and compelling strategy NON-NEGOTIABLES VISION Strategic Framework THE COMPASS Winning through a time of exponential change WE ARE UNILEVER To grow our business whilst decoupling our environmental footprint from our growth and increasing our positive social impact We will lead for profitable, consistent, competitive and sustainable growth, inspiring people to take small everyday actions that will add up to a big difference. We will grow by winning shares and building markets everywhere. Through our USLP we will deliver More Growth, Less Cost, Less Risk and More Trust. PURPOSE To make sustainable living commonplace HOW WE WILL WIN We work to create a brighter future every day, with brands and services that help people feel good, look good, and get more out of life. At We put the consumer first then customers, employees, suppliers, and communities. In this way we reward our shareholders. 1 Build stronger, more sustainable brands for a connected world Winning with brands and 2 Drive penetration and distribution of our Core innovation Deliver bigger innovation, faster, in full, to more markets . Lead market development, reaching up, down and wide Winning in the S Win when and where shoppers choose, e-commerce a competitive advantage marketplace . Grow through excellence in Net Revenue Management 7 Step change organisation cost and agility, roll out zero based budgeting globally Winning through continuous Sustainable Living Plan Goals Consistent Growth Competitive Growth Profitable Growth improvement Step change returns on capital, IT and capability investments Step change cost and service levels in supply, leveraging global scale and Build diversity of leadership and put it where it counts, for longer ' local agility 10 Winning with people 11 Be faster, simpler, more market-facing 12 Build resilient, empowered and aligned teams Responsible Growth Hindustan Unilever Limited 4#6JQ'18: Summary ☐ Gradual improvement in demand continues ☐ HUL: Strong volume led growth sustained Hindustan Unilever Limited 5#7JQ'18: Strong volume led growth sustained . Comparable* Domestic Consumer Growth 16%; Underlying Volume Growth 12% ☐ ☐ Hindustan Unilever Limited EBITDA at Rs. 2251 crores up 21%; Comparable* margin up 100 bps COGS lower on account of mix, judicious pricing and savings Increased A&P spends driven by investments in innovations, activations and competitive actions PAT (bei) at Rs. 1567 crores up 21%; Net Profit at Rs. 1529 crores up 19% *Comparable basis - Adjusted for accounting impact of GST; See slides 8 and 9 6#8Recap: 'Accounting' impact of GST on HUL results Net Excise Duty PRE GST Excise a cost; Turnover gross of excise POST GST Turnover is net of GST IMPACT POST GST Hindustan Unilever Limited With effect from 1st July'17 Net Input taxes Input tax credit availed partially. Balance accounted in costs Input taxes subsumed under GST and netted from turnover Costs lower as full input tax credit and full CENVAT in fiscal sites availed With effect from 1st Oct'17 Fiscal exemption/ refund Benefit of Indirect tax fiscal exemption and refund in excise duty cost Reported as Other Operating Income, consequent to the budgetary support scheme released in October'17 Reported Turnover: Lower Reported Turnover: Absolute EBITDA: EBITDA margin: EPS: No impact Higher No impact Absolute EBITDA: EBITDA margin: EPS: Lower No impact Higher No impact Reported Turnover: Absolute EBITDA: EBITDA margin: Lower No impact Higher EPS: No impact 7#9Comparable sales growth at 16% Reported sales growth at 3% due to accounting impact of GST 3% 8% 4% Hindustan Unilever Limited 15% 1% 16% Reported Sales Growth Net Excise Duty Fiscal exemption/ refund Comparable Sales growth Impact of A&D + Non-Core* Comparable Domestic Consumer Growth + Net Input taxes HUL as consolidated in Unilever *Exports + KCLL Traded Turnover 8#10Comparable margin improvement at 100bps Reported margin improvement at 350bps due to accounting impact of GST 350 bps -80 bps -170 bps 100 bps Hindustan Unilever Limited Reported Margin improvement Fiscal exemption/refund Net Excise Duty + Net Input Taxes Comparable Margin improvement No change in absolute EBITDA 9#11A simpler, agile and more focused business Our business now managed in three Divisions Home Care Beauty & Personal Care Foods & Refreshment NEW Active Dove Fair & Lovely kissan 3ROSES Vaseline Knorr KWALITY WALL'S™ TM BRU Surf excel Wheel Unilever puret Rin Vim Lifebuoy Pears LAKMÉ UX CLINIC PLUS+ POND'S No change Sunsilk Closeup CO-CREATIONS TAJ MAHAL Red Label Personal Care is now Beauty & Personal Care Integration of Foods and Refreshment including Food solutions business Hindustan Unilever Limited Illustrative brands only 10#12Double digit volume growth across divisions Hindustan Unilever Limited Home Care Beauty & Personal Care Foods & Refreshment 20% 4% 14% 1% 14% 8% Robust growth sustained Broad based growth across Personal Wash & Personal Products Strong growth led by Tea and Ice Cream & Frozen Desserts Comparable sales growth^ Reported sales growth* *Reported Sales growth = Segment Turnover growth excluding Other Operational Income (Excludes impact of A&D) ^Comparable Sales growth = Segment Turnover growth excluding Other Operational Income but including Fiscal exemption/refund and net of excise & input tax costs in base quarter (Excludes impact of A&D) 11#13Continued focus on innovations and activations POND'S POND'S नॉन-ऑइली फ्रेश ग्लो हर सीझन में. FRIT POND'S LIGHT MOISTURISER शुक्र है आजें आपने closeip SEVER FRESH 12 FRESH BREATH से ब्रश किया अंदरः विटामिन E + ग्लिसरीन तुरंत समाए और गहराई से नमी पहुंचाए. PONDS बाहर: त्वचा दमके नॉन ऑइली फ्रेश ग्लो से हर सीझन में. A MOISTURISING BREAKTHROUGH BY THE POND'S INSTITUTE PONDS.IN BRYLCREEM BEARD AND HAIR GROOMING RANGE. महाराष्ट्र दिनाला निश्चय करूया, संपूर्ण महाराष्ट्र जलसमृद्ध बनवूया. वाचवा बादली बादली पाणी, बदलेल दुष्काळाची कहाणी. -रिन ने या मोहिमेच्या दिशेने उचललं आहे एक महत्वपूर्ण पाऊल. नवीन निवारथी स्मार्ट फोम टेक्नॉलॉजी कपडे ते फक्त अर्ध्या पाण्यान 70132 Rin Hindustan Unilever Limited Apno ko Kareeb Lana Surf #Ek Neki Rozana excel PARTH Red Label PRERNA RISHAAN ANJALI MAITREYA ANANYA INDIA'S 1ST ISSPESHAL BAND Y-Films ka 6PACK BAND 2.0 OPEN YOUR HEART! Join us in doing good deeds everyday. Log on to surfexcel.pk KWALITY WALLS © BLUSHING STRAWBERRY जलसमृद्ध महाराष्ट्र YOU ARE SOODO SWEET! नहीं तो कल नहीं • daag achhe hain NOW CREAMIER CATCH THEIR JHAKKAD PAKKAD DANCE NOW ON YOUTUBE.COM/YFILMS PRESENTING A NEW RANGE OF INTERNATIONAL SAUCES. #dipspreadcook kissan kissan Manchurian kissan NexicAN SALSA kissan kistan Pizza & Prenta SCHEZWAN with 100% REAL QUETABLE 12#14Home Care Robust growth sustained Surf excel THE FALLING TEST A Social Experiment #HaarKoHarao daag achhe hain NEW Domex 2 TIMES LONGER LASTING FRAGRANCE KILLS GERMS SMELLS FRESH FOR HOURS Domex FRESH &CLEAN 100% FRESHNESS Hindustan Unilever Limited Fabric Wash: Double digit growth across key brands; Momentum continues ☐ Household Care: Double digit volume growth led by strong performance in Vim Domex liquid relaunched in South India, Domex powders extended to new geographies ☐ Purifiers: Overall performance subdued; Premium range performed well Surf excel RIN Active RL wheel Sunlight Comfort Domex Cif Unilever pure 13#15Beauty & Personal Care Broad based growth across Personal Wash & Personal Products Fair ayurvedic Lovely care NOT JUST A CREAM, IT'S A GOLDEN GLOW TREATMENT. Fair Lovely POND'S STARLIGHT NEW STARLIGHT PERFUMED TALC FRAGRANCE LIKE AN INTERNATIONAL PERFUME Perfumed Talc Dies & bounce 100g POND'S Hindustan Unilever Limited ☐ Personal Wash: High growth trajectory sustained in Dove and Pears ם Skin Care: Double digit growth on the back of strong performance by Pond's and Fair & Lovely; Facial cleansing maintains strong momentum Hair Care: Double digit growth led by premium portfolio Another quarter of strong performance by Indulekha LUX Dove NEW Pears Rexona Hamam Lifebuoy Fair& Lovely POND'S Vaseline. Citra LAKMÉ ST. Ives CLINIC TRESemmé indulekha PLUS+ USED BY PROFESSIONALS Closeup Pepsodent ayush PURE DERM AXE sunsilk therapy 14 ANTI-DANDRUFF#16Beauty & Personal Care : Contd. Broad based growth across Personal Wash & Personal Products LAKME 9105 NATURALE ALDE AQUA GEL LAKME 905 NATURALE BI-PHASE FOUNDATION DROP Hindustan Unilever Limited Colour Cosmetics: Strong double digit growth sustained; Continued rollout of innovations Lakmé 9 to 5 launched its first ever Naturale range of makeup. and skincare products infused with aloe vera AXE TICKET AXE SIGNATURE Oral Care: Another quarter of growth ☐ Deodorants: Impressive growth with Axe Ticket gaining traction NEW AXETICKET 65 250 SPRAYS TICKET LUX Dove NEW Pears Rexona Hamam Lifebuoy Fair& Lovely POND'S Vaseline. Citra LAKMÉ ST. Ives CLINIC TRESemmé indulekha PLUS+ Closeup Pepsodent ayush PURE DERM AXE USED BY PROFESSIONALS sunsilk therapy 15 ANTI-DANDRUFF#17Hindustan Unilever Limited Foods & Refreshment Strong growth led by Tea and Ice Cream & Frozen Desserts BRU Beverages: Tea delivered broad based double digit growth. across key brands శ్రీకి రావా cked BRU ಕನ್ನಡಿಗರ 10/ ಕನ್ನಡಿಗರ ಕಾಫಿಯ ಅಪ್ಪಟ ರುಚಿ 10/- by 99 BREAKFAST MIX ayush MASALA MILLET UPMA LEVER ayush CLASSIC MILLET KHICHDI ayush AVAL MILLET PONGAL TAJ MAHAL Red Label ☐ BREAKFAST MIX ㅁ ☐ Bru Kannadigara introduced in select geographies Ice Cream & Frozen Desserts: Strong double digit growth during the season; Innovations perform well Foods: Double digit growth led by Kissan and Knorr Lever Ayush breakfast range launched in Tamil Nadu Brooke G 3 ROSES Taaza Lipton BRU M kissan KWALITY WALL'S™ MAGNUM Knorr LEVE ayush Annapurna BREAKFAST MIX 16#18JQ'18: Results Summary ☐ Rs. Crores Particulars Sales JQ'18 JQ'17 (Reported) Growth % 9356 9094 3^ EBITDA 2251 1866 21 Other Income 135 113 Exceptional Items - Credit / (Charge) (59) (13) PBT 2193 1846 19 Less : Tax 664 563 PAT bei 1567 1292 21 Net Profit 1529 1283 19 Comparable* Domestic Consumer Growth at 16%^ ☐ Comparable* EBITDA improvement 100bps ■ Other Income up due to higher investable funds in the quarter ☐ Exceptional items (net) in current quarter includes provision towards restructuring and few contested matters Hindustan Unilever Limited *Comparable basis - Adjusted for accounting impact of GST; See slides 8 and 9 17#19Looking ahead Near term ☐ Gradual improvement in demand ☐ ㅁ Crude volatility and currency led inflation key watch outs Step up in competitive intensity anticipated Our strategy ☐ Focus on volume driven growth and improvement in operating margin ☐ Consistent, Competitive, Profitable, Responsible Growth Hindustan Unilever Limited 18#20For more information and updates Visit our website http://www.hul.co.in/investorrelations/ June Quarter 2018 results Hindustan Unilever Limited will release its financial results for June Quarter 2018 on Monday 16 July, 2018. > View more m ALOE INFUSED SKINCARE & MAKEUP AKME 9TO5 NATURALE RANGE LAKME 95 NATURALE Hindustan Unilever Limited 19