HUL April to June 2009 by fjzhangweiqun


									                                                              HUL Connect                                 April 1 - June 30, 2009

                                                        HUL – June Quarter 2009 Results
                                                      • FMCG sales and Operating profits grow 13%
      In this issue
                                                        • Strong volume growth in Personal Products and Foods
                                                        • 60bps improvement in operating margins after 180 bps increase
      News and Events                                     in brand investments
                                                      • PAT before exceptional items and mark-to-market charge
      Product Watch                                     grows 7%; PAT (bei) flat

      Spotlight                                         Key Statistics                                               Figures in Rs. Lakhs
                                                                                                       June Quarter       June Quarter
                                                          Account Item
      About HUL                                                                                           2009               2008
                                                          Net Sales                                       447,568            415,284
                                                          Domestic FMCG HPC                               340,582            304,453
      Edited & Published by                               Domestic FMCG Foods
                                                                                                            74,284             63,339
      Corporate Communications                            (including Ice cream)
      Hindustan Unilever Limited                          Domestic FMCG Total                             414,866            367,792
      165/166, Backbay Reclamation
                                                          Exports                                           25,558             39,151
      Mumbai 400020
                                                          Profit Before Interest and
                                                                                                            70,608             67,824
                                                          Exceptional Items

      Contact details                                     Net Profit                                        54,319             55,818
      Tel : 022 39830000                                Hindustan Unilever Limited (HUL) announced its results for June Quarter 2009.
      Fax : 022 22871970                                FMCG maintained strong growth of 13% with underlying volume growth,                      recovering to 2%. Underlying volume growth in June quarter showed an
                                                        improvement of 6% compared to March quarter. Net Sales grew 8% with planned
                                                        reduction in non core exports. PBIT (bei) grew 12.6% with operating margins
                                                        improving by 60 bps to 15.0%. This quarter had a mark to market (MTM) charge of
                                                        Rs 32 crores from restatement of forex exposures at closing exchange rates
                                                        (JQ'08 gain Rs 25 cr). Excluding the MTM impact, PAT (bei) grew by 7%. On a
                                                        reported basis, PAT bei was flat while Net Profit declined by -2.7% due to
                                                        exceptional income in the base.
                                                        HPC business grew at 12% driven by strong volume growth in Personal Products.
                                                        Soaps & Detergents grew 10% and Personal Products growth was higher at 15%.
                                                        Key actions to strengthen competitiveness in Laundry have been implemented;
                                                        Surf and Rin led category growth, while grammage increases in Wheel to improve
                                                        consumer value, are taking effect in the market. Pricing actions have been
                                                        implemented at the mass end resulting in strong volume growth in Breeze.
                                                        Shampoo category performed well with Clinic Plus and Sunsilk driving category
                                                        growth; In Skin care, Fair and Lovely continued to drive growth while Vaseline grew
                                                        on the back of strong volumes; In Oral, Close Up led category growth. In Personal
                                                        Products, Hair and Oral gained market shares compared to the previous quarter.
                                                        Foods business grew at 17% with growth momentum across all segments.
                                                        Beverages grew at 19% with all brands growing well. Processed Foods delivered
                                                        volume led growth of 15%, driven by Kissan and Annapurna. Ice-Creams grew
                                                        well at 23%, again led by volume. Swirl's Ice Cream Parlours are now present
                                                        across 65 locations in 18 cities.
                                                        Pureit expanded its footprint and has now reached 1500 towns nationally. The
                                                        business has a strong consumer franchise of 2 million households, and is
                                                        progressing as per plan.
                                                        Lower input costs combined with tight cost management and operating leverage
                                                        have led to higher operating margins in this quarter. Material costs, including
                                                        purchased goods, were lower by 110 bps as a % of sales. Our investment behind
Disclaimer : The content in this newsletter             brands continues with A&P growing by 26%. New launches and higher media
is current to the respective period of publication.
                                                        investments drove the step-up in A&P spends.
   News And Events
India's Most Trusted Brands

HUL brands continued to dominate India's Most Trusted Brands Survey rankings. Three of our brands (Lux, Lifebuoy and
Pepsodent) featured in the top 10 and seven brands in the top 20. All together there were 16 HUL brands among the
country's 100 most trusted brands.

The Most Trusted Brands from HUL in the top 100 list (their rankings in brackets) were Lux (3), Lifebuoy (4), Pepsodent (8),
Close Up (11), Clinic Plus (15), Pond's (16), Fair & Lovely (18), Surf (41), Rin (43), Sunsilk (52), Vim (74), Wheel (75),
Vaseline (79) Rexona (83), Dove (84) and Pears (95).

The Most Trusted Brands survey conducted by The Nielsen Company for brand equity is the largest, most diverse and most
prestigious survey of its kind, with over 8,000 respondents nation-wide.

                                                              Banaye Healthy Hindustan

                                                              Lifebuoy conducted a 17 state capital survey among mothers
                                                              to understand the perception and satisfaction levels of the
                                                              overall health of their children and the important factors that
                                                              influence them.

                                                              The findings of the health report led to 'Banaye Healthy
                                                              Hindustan' signature campaign which was launched on the
                                                              occasion of World Health Day. Hundreds of school children
                                                              between six and twelve years gathered at two of India's historic
                                                              monuments, India Gate, Delhi and Gateway of India, Mumbai
                                                              and signed an appeal to health experts and authorities to take
                                                              care of their health concerns. Lifebuoy also launched a health
                                                              rally in Chennai, Hyderabad & Jalandhar to generate
                                                              awareness about the latest threat – swine flu.

Cornetto music album

Kwality Wall's Cornetto launched the music album 'Ho Jaane De'
in collaboration with Universal Music to promote its two new
flavours – Black Forest Flirt and Strawberry Tease Cake.
The music album features talented singer Raghav Sachar and
the multi-faceted Shruti Hassan. Besides the album, a unique
campaign 'Dedicate and Win' was also rolled out. This campaign
promotes the expression of love by facilitating people to dedicate
songs to loved ones over the mobile or internet.

                                                                 Axe 'Call Me' campaign

                                                                 The study about phone conversations conducted on 750
                                                                 girls by Axe research labs across six cities in India showed
                                                                 that getting a girls phone number is a first step forward in the
                                                                 mating game. This insight drove the new Axe “Call me”
                                                                 campaign idea that shows girls giving out their phone
                                                                 numbers uncontrollably to guys who are wearing Axe.

                                                                 Besides the TVCs a full 360 media plan was used to drive
                                                                 consumers to call the Axe number. About 45 lakh calls were
                                                                 received on the Axe number and 10 lakh wake up alarms
                                                                 were registered.
                                                            Young Women Achiever Award

                                                            Lenna Nair, Executive Director - HR received the Young
                                                            Women Achiever Award 2009 for outstanding work in the field
                                                            of business. 'Young Women Achiever Awards - 2009' was
                                                            presented by Young FICCI Ladies Organisation (YFLO) in
                                                            partnership with Times Foundation.

    Recognition from CII in the field of patents

    HUL was recognised by Confederation of Indian
    Industry (CII) in partnership with Department of
    Industrial Policy and Promotion, Government of
    India, for outstanding contributions in the field of
    patents in India. About 200 patents were filed bu
    HUL in 2008.

                                                             Franchise Professional of the Year Award

                                                             Kwality Wall's won the Franchise Professional of the Year
                                                             Award for 2008 for the Swirl's parlour network in the ice
                                                             cream category. These awards, organised by Franchise
                                                             India Holdings Limited along with India Franchise
                                                             Association, recognise excellence in the franchising
                                                             industry. Our first Swirl's parlour was launched in 2004;
                                                             today, the channel has grown to 65 Swirl's parlours.

Safety Awards

HUL's bread manufacturing unit at Cochin won Kerala
State Safety Award for the outstanding safety performance in
the non-Chemical, non-Engineering category. The factory won
this award for the fourth time a row.

HUL's Goa factory won Gold Award of Greentech Award in the
manufacturing sector. Goa factory received the award for their
outstanding work in Safety Management.
Product Watch

HUL launched Cif, a unique surface cleaner which removes tough
stains and leaves the surface clean and shiny with minimum effort.
It's creamy powerful formula containing micro particles penetrates
the stubborn dirt from inside for removal, leaving the surface as
shiny as new. It comes in two variants – White & Lemon.

                                                      Liril 2000
                                                      Liril was relaunched with a new 'avatar' as Liril 2000.
                                                      The new Liril has a twist of lime and the touch of aloe
                                                      vera which promises to refresh all the 2000 parts of
                                                      human body.

The anti-dandruff shampoo Clinic All Clear is now launched as
'Clear'. The newly launched Clear shampoo has a unique
formulation of Clear-Tech soft technology combined with
essential oils which not only removes dandruff but also makes
your hair four times softer and shinier. The shampoo comes in
five variants – Clear Radiant Black, Clear Soft Gloss,
Clear Active Care, Clear Hair fall Defense, Clear Ice Cool.

                                                   Pond's White BeautyTM Daily Spot-less Lightening Cream
                                                   Pond's launched the Pond's White BeautyTM Daily Spot-less
                                                   Lightening Cream that works from within to help reduce dark spots,
                                                   leaving skin instantly brighter, nourished and more radiant in just
                                                   7 days. It has Pro Vitamin B3TM, an advanced skin lightening
                                                   formula which provides visible spot-less radiance by diluting the
                                                   accumulated melanin on the skin. The cream also contains a
                                                   lightening moisturiser and multiple UV sunscreens.

Kissan Squeezo
Kissan introduced an innovative packaging - Squeezo, which is an upside
down plastic bottle and is the first of its kind in the country. The packs
innovative format is much more convenient to use versus a glass bottle.
The new pack is easy to hold and squeeze. The launch was led by the
communication idea of “khud banaao khaana dilchusp”.
                                                   Lakmé Nine to Five Color Fix Lip Duo
                                                   Lakmé launched the Color Fix Lip Duo under the Nine to
                                                   Five collection. This unique 2-in-1 format has a lip color
                                                   and an ultra-moisturizing gloss. The lip color has a
                                                   unique breakthrough long-lasting color fix formula that
                                                   gives the lips smooth for rich, smudge-proof color. The
                                                   moisture-drenched gloss provides high-shine to the lips.

 Lakmé Bridal Sutra
 Lakmé launched the Bridal Sutra Summer 2009 collection.
 The Bridal Sutra range offers Silk Naturelle Daily
 Foundation, Pure Rouge Blusher, Just Kissed Cheek
 |and Lip Tint, Eye Artist, Glide On Lip Color and Enrich
 Matt lip colors.

                                                               Huggies Dry Pants
                                                               Huggies Dry Pants was launched to simplify the task
                                                               of putting diapers on the babies. The product comes in
                                                               an underwear format with a special “Winnie the Pooh
                                                               & friends” design cover. It is wearable back or front
                                                               which makes it extremely easy to put on a baby. It has
                                                               tear away sides that makes it easier to remove.

Huggies 1
Huggies 1 was launched to provide “freedom from
wetness”. It provides protection from leakage and has
superior absorbency compared to a cloth nappy.

               at HUL
At HUL, we are committed to living our mission of 'adding vitality to life' not just with our consumers and our communities,
but also with our people. It is our endeavour to make them 'feel good, look good and get more out of life'.

We realize that our employees, at all stages of lives, will be able to truly imbibe the spirit of our mission and get more out of
life when they have an optimal work-life balance. At HUL health of employees is health of the business.

The Vitality Index

We have implemented 'Personal Vitality' initiative for all our 15000 employees including the top management. Through
the initiative the employees are encouraged to lead healthy lifestyles.

At the heart of the Personal Vitality initiative is the Vitality Index. Vitality Index measures personal vitality of an individual
on the basis of four parameters – Body Mass Index (BMI), blood pressure, blood cholesterol and blood sugar.

In the first phase of the initiative, a scorecard was created for each employee on the basis of these parameters. Lower the
score, better is the personal vitality of the individual.

The scorecard is color coded as Green, Amber and Red. If the score is between 0 to 4 then the employee is in green zone.
If the score is in the range of 5 to 6 then the employee falls in the Amber zone and a score of 7 and above puts the
employee in the Red zone.

          Vitality                           Green                          Amber                             Red

      Personal Vitality
                                             0 to 4                          5 to 6                      7 and above

Each employee is communicated his vitality score and confidentiality is maintained. Employees who constantly remain in
the Red zone are counseled in confidence and are put on a health improvement programme. Their progress is
continuously monitored by the in house medical department.

In fact, some of these employees who have benefited from this programme have now become the internal champions of
the Vitality initiative. In the second phase, a lot of interesting initiatives were undertaken to help employees improve their
Vitality score. Vitality exhibitions, Family Day, Walkathons, nutritional menu counseling etc were conducted cross all
company locations.

Through interactive sessions employees were taught about the concept of Body Mass Index (BMI), its measurement,
ways of improving life style, stress management, healthy and controlled diet to avoid or reduce obesity and proper
scientific exercise techniques for weight management. Workshops were also conducted on health planning after
retirement for managers who were nearing retirement.

Besides these, HUL factories have also been assessed for occupational health risks such as heat stress, noise, whole
body vibration and respiratory or skin disorders. As a result of the Personal Vitality initiative the number of HUL
employees in the red zone has come down from 8% in 2006 to 4 % in 2008.

  About Hindustan Unilever Limited
Hindustan Unlilever Limited is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three
Indians. HUL's mission is to "add vitality to life" through its presence in over 20 distinct categories in Home & Personal
Care Products and Foods & Beverages. The company meets everyday needs for nutrition, hygiene, and personal care,
with brands that help people feel good, look good and get more out of life.

For more information visit

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