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Update

SECTOR: FMCG

Hindustan Unilever
STOCK INFO. BLOOMBERG
23 March 2010
BSE Sensex: 17,451 HUVR IN
REUTERS CODE
Neutral
S&P CNX: 5,225 HLL.BO Previous Recommendation: Neutral Rs228
Equity Shares (m) 2,177.5 YEAR NET SALES PAT EPS EPS P/E P/BV ROE ROCE EV/ EV/
52-Week Range (Rs) 306/215 END (RS M) (RS M) (RS) GR. (%) (X) (X) (%) (%) SALES EBITDA
03/09A* 167,617 20,636 9.5 18.4 24.0 24.1 121.3 122.8 2.4 15.8
1,6,12 Rel. Perf. (%) -13/-17/-90
03/10E 175,683 20,256 9.3 -1.9 24.5 21.0 85.7 103.7 2.7 17.9
M.Cap. (Rs b) 495.8
03/11E 194,147 20,082 9.2 -0.9 24.7 19.2 77.7 95.2 2.5 17.7
M.Cap. (US$ b) 10.9 03/12E 217,112 23,590 10.8 17.5 21.0 17.7 84.2 104.5 2.2 15.0
* EPS for 12 months (April 08-March 09)

Takeaways from management meeting


„ Volume growth is increasing (5% in 3QFY10), but value growth will remain subdued due to realization de-growth.
„ Detergent price war has been triggered by consumer downtrading from mid-priced segment.
„ Regaining lost market share in toilet soaps would depend upon regional brands like Hamam, Rexona, Liril and
Breeze, as Lifebuoy and Lux cannot provide market share beyond 40% in a fragmented market like India.
„ Cost of gaining incremental market share will be very high from now on; ad spend will be at least 13% of sales.
„ HUL is nurturing new categories like Deodorants, Surface Cleaners, Hair Conditioners and Premium Skin care;
however the benefits of the same would accrue only in the long term.

Realization de-growth may overshadow benefits of improving volume growth in near term
Pressure on realizations is likely to sustain in the near term; we believe volume growth and market share would take
priority, probably at the expense of profit growth. We note that HUL has been aggressive in taking price correction across
categories where market share pressure has been intense. While price cuts in detergents have been more pronounced,
HUL has improved the price value equation in Toilet Soaps, Dish Washing and Toothpaste. HUL has effected price cuts
of 11-17% in detergents, 7-17% in Toilet Soaps and 6.7% in Toothpaste (Pepsodent) in past three months. We are
factoring in 5% decline in detergents realizations for FY11 versus an estimated 9% YoY decline in detergent prices as of
now. We are factoring in flat realizations in soaps in FY11 versus an estimated 4% decline in soap realizations.

Downgrading FY10-12 estimates by 4-11%; our estimates are 10-19% lower than consensus
We are downgrading FY10-12 estimates by 4-11% to factor in lower realizations, input cost pressures (Palm Fatty Acid
Distillate prices are up 57% in past four months) and sustained high ad-spend (13.8% of sales in 3QFY10). We estimate
160bp decline in EBITDA margin in FY11 to 13.7% (earlier 15.3%) and 70bp increase in FY12 to 14.4% (15.7% earlier).
We are downgrading FY10 EPS estimates by 4.2% to Rs9.3 (Rs9.7 earlier), FY11 EPS by 10.6% to Rs9.2 (Rs10.3
earlier) and FY12 EPS by 10.7% to Rs10.8 (Rs12.1 earlier). We note that our estimates are lower than consensus by 10-
19% (despite recent downgrades by the street).

Competitive intensity to sustain; PAT CAGR of 8.3% over FY10-12; Re-iterate Neutral
We believe HUL is likely to face strong headwinds in the coming quarters as the combined effect of price based competition,
consumer downtrading, higher input costs, and media inflation gets reflected in financials. We believe that HUL is more
committed than ever to regain market share and invest in new categories for future growth although this will impair near
term profitability. Although the stock trades at trough valuations and discount to the FMCG sector (as against premium
of 10-25% historically), competitive price actions and market share trend in key categories would be key factors to watch
out for. The stock trades at 24.7x FY11E EPS of Rs9.2 and 21x F Y12E EPS of Rs10.8. We re-iterate Neutral.

Amnish Aggarwal (AmnishAggarwal@MotilalOswal.com); Tel:+9122 39825404


Nikhil Kumar (Nikhil.N@MotilalOswal.com); Tel: +922 39825120
Hindustan Unilever

We met the management of Hindustan Unilever to get an update on the rising competitive
intensity across product categories and the benefits of various market intervention strategies
undertaken in the past 2-3 quarters. Following are the key takeaways:
„ Volume growth is improving due to better consumer value proposition offered by HUL's
products. However, sales value growth would be lower than volume growth due to
price cuts in various product segments.
„ Detergent price war has been triggered by volume pressure in the mid-priced segment
due to consumer downtrading. P&G has launched Tide Naturals at lower price point
to prevent loss of consumers to economy segment (brands like Wheel, Ghari, Fena
and Nirma priced at Rs30/kg). HUL has re-launched Wheel Active (improved fragrance
and lemon extract); it does not expect price war to escalate to Surf Excel Blue and
Surf Excel Quick wash Segments.
„ Regaining lost market share in toilet soaps would be a function of bounce back in
Volume growth and market
regional brands like Hamam, Rexona, Liril and Breeze, as Lifebuoy and Lux on their
share is management
own cannot provide market share beyond 40% in a fragmented market like India. We
priority earnings to get
believe HUL's entire portfolio has to grow in sync to regain lost market share in toilet
impacted in the near term
soaps.
„ Cost of gaining incremental market share will be very high from now on; HUL will
increase spends on advertising, sales promotions and improving the consumer value
proposition to retain its market share. Ad spends of 11-12% of sales are history; ad
spends would not go below 13% in future (partly due to rising sales proportion of
personal care which has higher proportion of ad spends). HUL's ad spend had increased
by 66% to 13.8% of sales in 3QFY10.
„ HUL is nurturing new categories/brands for next leg of growth. These include
Deodorants (Axe, Dove, Rexona), Surface Cleaners (Cif and Domex), Hair
Conditioners (Sunsilk, Dove), Premium Skin care (Ponds, Vaseline), Savory (Knorr),
Ice Creams (Swirl Parlours) and Water (Pure IT). These categories would be
instrumental in changing the sales mix of the company in the medium to long term.

Price cuts in key categories facing market share pressure; realization de-
growth may overshadow benefits of improving volume growth
We note that HUL has been aggressive in taking price correction across categories where
market share pressure has been intense. While price cuts in detergents have been more
pronounced, HUL has improved the price value equation in Toilet Soaps, Dish Washing
and Toothpaste. HUL has affected price cuts of 11-17% in detergents, 7-17% in Toilet
Soaps and 6.7% in Toothpaste (Pepsodent) in past three months. We note that market
share in these categories have been under severe pressure over past 12 months. We
believe volume growth and market share would take priority in HUL, probably at the
expense of profit growth.

23 March 2010 2
Hindustan Unilever

PRICE CUTS IN VARIOUS FMCG PRODUCTS/BRANDS

PRICE CHANGES (RS) MAR'10 DEC'09 MAR'09 3M CHG. (%) 12M CHG. (%)

Detergents Powder (Rs/Kg)


Wheel 30 30 32 0 -6.3
Rin 50 60 70 -16.7 -28.6
Surf Excel Blue 110 124 131 -11.3 -16.0
Tide Natural 40 50 N.A -20.0
HUL has affected an average
Tide 56 70 83 -20.0 -32.5
price cut of 9% in Detergent Cake (Rs/100gm)
detergents, 4% in toilet Wheel Bar 2.5 2.5 3.3 0 -25.0
soaps and 3% in toothpaste Rin Shakti Bar 5.0 5.0 7.0 0.0 -28.6
Tide bar 3.6 6.8 6.8 -47.1 -47.1
Toilet Soaps (Rs/100gm)
Lux 16.6 18 18 -7.8 -7.8
Lifebuoy 12.5 15 13.3 -16.7 -6.0
Godrej No 1 10.9 10.0 10.0 9.0 9.0
Santoor 18 18 17.4 0.0 3.4
Toothpaste (Rs/200gm SKU)
Pepsodent 56 60 60 -6.7 -6.7
Colgate (CDC) 56 56 52 0.0 7.7
Source: Company/MOSL

HUL HAS LOST 170-810BP MARKET SHARE IN KEY CATEGORIES

VALUE MARKET JUN-08 SEP-08 DEC-08 MAR-09 JUN-09 SEP-09 DEC-09 CHG. CHG.

SHARE (%) (BP) 18M (BP) 6M

Detergents 38.3 37.9 38.2 37.0 36.2 35.0 34.6 (370) (160)
Soaps 52.7 50.3 49.6 48.2 46.3 44.5 44.6 (810) (170)
Shampoo 46.5 46.1 46.0 44.9 45.4 45.2 44.8 (170) (60)
Toothpaste 30.0 29.6 29.1 28.0 28.0 27.1 26.1 (390) (190)
Tea 23.2 23.3 22.7 23.4 21.8 22.3 21.1 (210) (70)
Source: Company/MOSL

Secular downtrading in mid-tier detergents; P&G's Tide Naturals launch


aimed at retaining consumers
Launch of tide naturals has HUL management indicated that the mid-priced detergent segment is witnessing a secular
disturbed the pricing downtrading with consumers moving to the price point of Rs30/kg to brands like Wheel,
environment in Rs30-70 per Nirma, Ghari and Fena. The trend has been evident for both Rin and Tide; while HUL has
kg segments in detergents presence in economy segment (Wheel), P&G lost out due to its absence. Launch of Tide
market Naturals is aimed at retaining consumers within the P&G umbrella, even if they downtrade
from Tide.

Tide Naturals launch has disturbed the delicate balance in Rs30-70/kg mass and mid
priced detergent segments. Nevertheless, our channel check suggest that Tide Naturals
had impacted sales of both Wheel (for consumers keen to up-trade at attractive price
point) and Rin (Lower pricing), although there has been some cannibalization of Tide's
sales. P&G has gone one step ahead with an aggressive 47% price cut in Tide detergent
cake. What followed in the form of the Rin-Tide Ad and the recent price cuts across
brands has re-aligned the competitive position in mass and mid priced detergent segment.
The premium of Tide Naturals to Wheel Active effectively stand reduced to 25% (8% in
certain states like UP, Bihar, MP and Chattisgarh), which we believe is too low for steady
growth of Wheel.

23 March 2010 3
Hindustan Unilever

We believe the intent of P&G to launch Tide Naturals at this price point extends beyond
market share in detergents. Tide Naturals launch is to increase presence in mass market
Tide naturals is competing and provide P&G's portfolio a platform to increase marketing reach (estimated reach
not only with Rin but also ~1m direct outlets v/s 2.5m of HUL and ~2-2.5m indirect outlets v/s 8m of HUL). We
Wheel brand of HUL believe the resulting distribution muscle is likely to be leveraged for new products (in
existing as well as new categories). P&G has target to add 1bn additional consumers
globally in the coming decade, much of the incremental consumers coming from India and
China.

Although HUL has re-launched Wheel as Wheel Active with new perfume, packaging
and advertising campaign (Salman Khan and Parachi Desai), it would impact the profit
margins in the medium term. In addition we don't rule out further price action from HUL
to protect market share and prevent P&G making from making inroads in the lucrative
rural consumer space.

RIN AND TIDE ARE LOCKED IN AGGRESSIVE PRICE BASED COMPETITION

Source: Company/MOSL

Premium skincare a focus area but competition is rising fast


HUL is likely to face tough Premium skincare has been a focus area for HUL with brand portfolio comprising Ponds,
competition in premium Vaseline and Lakme. HUL has launched lower entry price for Ponds white beauty and
skin care market new Vaseline range for Men. However we note that HUL has 35% market share in
premium skin care versus 65% market share it has in the mass segment. In addition the
distribution advantage of HUL in premium segment is far lower than the mass segment.
Premium segment is witnessing new launches from P&G, L'Oreal, Garnier, J&J etc.
Premium segment is witnessing small sized SKU's from these players which aim at enabling
consumer uptrading and long term consumer conversions. We would closely watch for
success of players like Dabur and any mid priced product launch by these MNC's.

Input costs on an uptrend, media inflation to further add to margin pressure


We highlight that major inputs for HUL are on an uptrend. Palm Oil (up 57% in past 4
months), LAB (up 11% YoY), Tea (up 23%% YoY) and HDPE (up 45% YoY) are likely
to pressurize gross margins in the coming quarter, more so given the price corrections
taken by the company in recent months. We do not expect company to increase product
prices until volume growth returns to double digits and market share loss is stemmed
(unlikely before 2QFY11, in our opinion). We have assumed flat realizations in Toilet
Soaps and 5% decline in detergents for FY11, with a likely downside risk.

23 March 2010 4
Hindustan Unilever

PFAD UP 57% IN PAST FOUR MONTHS LAB PRICES UP 11% YOY

Palm Fatty Acid LAB Prices


122.1
750 120
699
650

USD/MT
595 105

Rs/Kg
550 90.1
90.0
510 90
450 85.1
PFAD prices have increased 350 75
312.5 67.8 71.1
57% in past four months 63.5
250 60
Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jun-06

Jun-07

Jun-08

Jun-09
Sep-06

Sep-07

Sep-08

Sep-09

Dec-06

Dec-07

Dec-08

Dec-09
May-06

May-07

May-08

May-09
HDPE PRICES UP 45% YOY TEA PRICES UP 23% YOY

HDPE Tea Price Index


300
1,850
250
USD/MT

1,650
1,450 1,310
1,350 200
1,080
1,050 150

650 100

Jan-08

Jan-09

Jan-10
Sep-07

Sep-08

Sep-09
May-08

May-09
Jul-08
Feb-08

Feb-10
Jan-09

Jun-09
Mar-09

Sep-09
May-08

Nov-09
Oct-08

Source: Company/MOSL

In addition, we note that media inflation is likely to be in double digits as players across
sectors increase their ad-spend and focus on brand building. We have assumed 70bp
contraction in ad-spend (~4% value growth), with a likely downside risk.

AD-SPEND TO REMAIN ABOVE 13%

30,000 Advertising (Rs m) - LHS Advertising % of Sales - RHS 16.0

23,000 14.0

16,000 12.0

9,000 10.0

2,000 8.0
CY03 CY04 CY05 CY06 CY07 FY09* FY10E FY11E

Source: Company/MOSL

23 March 2010 5
Hindustan Unilever

INPUT COST/REALIZATION PRESSURE TO CONTRACT MARGINS; AD-SPEND ADD TO THE FRAY

Gross Margin (%) EBITDA Margin (%)

47.6 47.9
47.0 47.4 49.6 48.2
46.2
45.0

15.7
14.4
14.8 14.9 15.2 15.1
14.2 13.7

CY04 CY05 CY06 CY07 FY09* FY10E FY11E FY12E

Source: Company/MOSL

Downgrading FY10-12 estimates by 4-11%; 4QFY10 Adj PAT to decline in


double digits; our estimates are 10-19% lower than consensus
We are downgrading FY10-12 estimates by 4-11%. We estimate that HUL's PAT growth
would decline by 14.5% in 4QFY10. Our change in estimates is based on:
„ Pressure on realizations is likely to sustain in the near term; we believe volume growth
and market share would take priority, probably at the expense of profit growth. We
are factoring in 5% decline in detergents realizations for FY11 versus an estimated
9% YoY decline in detergent prices as of now. We are factoring in flat realizations in
soaps in FY11 versus an estimated 4% decline in soap realizations.
„ Input costs have bottomed out, PFAD (Palm Fatty Acid Distillate) prices are up 57%
in past four months while other inputs like LAB, Tea and Packaging costs are ruling
firm.
„ HUL's ad spends (% of sales) have increased from 10.5% over FY07-09 to 13.8% in
3QFY10 (13.2% in 9mFY10); ad spends are unlikely to decline below 13% in the
coming years. We are factoring in ad spends at 13.9% of sales in FY10 (13.2%
earlier), 13.3% in FY11 (12% earlier) and 13% in FY12 (12% earlier).
„ We estimate 130bp decline in EBITDA margin in FY11 to 13.8% (earlier 15.3%) and
60bp increase in FY12 to 14.4% (15.7% earlier).
„ We are factoring in Rs510m as rental income from lease of office property at Backbay
Reclamation, Mumbai in FY11 and Rs675m in FY12 (Rs450/sq ft for 150,000 sq ft).
„ We are downgrading FY10 EPS estimates by 4.2% to Rs9.3 (Rs9.7 earlier) which,
implies Adj PAT decline of 14.5% in 4QFY10. FY11 EPS stands reduced by 10.6% to
Rs9.2 (Rs10.3 earlier) while FY12 EPS estimate is Rs10.8 (Rs12.1 earlier).
„ We note that our estimates are lower than consensus by 10-19% (despite recent
downgrades by the street). We believe that there exists further downside risk to our
estimates.
TREND IN HUL'S EPS ESTIMATES: MOSL V/S CONSENSUS (RS)

PARTICULARS MAY'09 NOV'09 JAN'09 MAR'09

FY10E FY11E FY10E FY11E FY10E FY11E FY10E FY11E

Consensus Estimates 11.5 12.8 10.7 12.2 10.4 11.9 10.3 11.4
MOSL Estimates 10.6 11.7 10.2 11.4 9.7 10.4 9.3 9.2
% Variance -7.8 -8.6 -4.7 -6.6 -6.7 -12.6 -9.7 -19.3
Source: MOSL

23 March 2010 6
Hindustan Unilever

Valuation and view: Competitive intensity to sustain; PAT CAGR of 8.3%


over FY10-12; Re-iterate Neutral
We believe HUL is likely to face strong headwinds in the coming quarters as the combined
effect of price based competition, consumer downtrading, higher input costs, and media
inflation is reflected in financials. We believe that HUL is more committed than ever to
regain market share and invest in new categories for future growth; however, this will
impair the near term profitability.

We maintain Neutral Although the stock trades at trough valuations and discount to the FMCG sector (as
against premium of 10-25%), competitive price actions and market share trend in key
categories would be key factors to watch out for. We believe competition this time around
is multi-pronged and it would require HUL considerable time and cost to return to mid-
teen profit growth. The stock trades at 24.7x FY11 EPS of Rs9.2 and 21xF Y12 EPS of
Rs10.8. We re-iterate our Neutral rating on HUL.

STOCK PERFORMANCE (1 YEAR)

Hind. Unilever (Rs) - LHS Rel. to Sensex (%) - RHS


320 0

290 -25

260 -50

230 -75

200 -100
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

23 March 2010 7
Hindustan Unilever

Financials and Valuation

INCOME STATEMENT (RS MILLION) RATIOS


Y/E MARCH CY07 FY09 FY10E FY11E FY12E Y/E MARCH 2007 FY09 FY10E FY11E FY12E
N e t S a le s 136,754 202,393 173,844 190,848 213,504 B asic (Rs)
Other Operating Inco me 1,937 3,622 1,838 3,298 3,608 EP S 8.0 11.5 9.3 9.2 10.8
T o t a l R e v e nue 138,691 206,016 175,683 194,147 217,112 Cash EP S 8.6 12.4 10.1 10.1 11.8
Change (%) 13.0 48.5 -14.7 10.5 11.8 B V/Share 6.6 9.5 10.8 11.9 12.9
COGS 72,685 108,379 88,498 101,159 112,531 DP S 9.1 7.5 6.7 7.0 8.4
G ro s s P ro f it 6 6 ,0 0 6 9 7 ,6 3 6 8 7 ,18 5 9 2 ,9 8 7 10 4 ,5 8 1 P ayo ut % 113.4 65.4 72.1 76.0 77.6
Operating Exp 45,281 67,235 60,612 66,314 73,424
V a lua t io n ( x)
E B ID T A 20,724 30,402 26,573 26,673 31,157
P /E 28.4 19.8 24.5 24.7 21.0
Change (%) 13.7 46.7 -12.6 0.4 16.8
Cash P /E 26.4 18.4 22.5 22.5 19.3
M argin (%) 14.9 14.8 15.1 13.7 14.4
EV/Sales 3.5 2.4 2.7 2.5 2.2
Depreciatio n 1,384 1,953 1,814 2,006 2,132
EV/EB ITDA 23.2 15.8 17.9 17.7 15.0
Int. and Fin. Charges 255 253 75 112 91
P /B V 34.4 24.1 21.0 19.2 17.7
Other Inco me - Recurring 2,379 2,056 1,692 1,457 1,623
Dividend Yield (%) 4.0 3.3 2.9 3.1 3.7
P ro f it be f o re T a xe s 21,464 30,251 26,376 26,013 30,557
Change (%) 15.3 40.9 -12.8 -1.4 17.5 R e t urn R a t io s ( %)
M argin (%) 15.7 14.9 15.2 13.6 14.3 Ro E 121.1 121.3 85.7 77.7 84.2
Tax 3,643 5,244 5,644 5,463 6,417 Ro CE 142.2 122.8 103.7 95.2 104.5
Deferred Tax 389 0 475 468 550
Wo rk ing C a pit a l R a t io s
Tax Rate (%) 18.8 17.3 23.2 22.8 22.8
Debto r (Days) 12 10 12 12 12
P ro f it a f t e r T a xe s 17,432 25,007 20,256 20,082 23,590
A sset Turno ver (x) 9.0 8.1 6.8 7.0 7.3
Change (%) 13.2 43.5 -19.0 -0.9 17.5
M argin (%) 12.7 12.4 11.7 10.5 11.0 Le v e ra ge R a t io
No n-rec. (Exp)/Inco me 1,824 -43 -144 0 0 Debt/Equity (x) 0.1 0.2 0.1 0.1 0.0
R e po rt e d P A T 19,256 24,965 20,112 20,082 23,590

BALANCE SHEET (RS MILLION) CASH FLOW STATEMENT (RS MILLION)


Y/E MARCH 2007 FY09 FY10E FY11E FY12E Y/E MARCH 2007 FY09 FY10E FY11E FY12E
Share Capital 2,177 2,180 2,180 2,180 2,180 OP /(lo ss) befo re Tax 20,724 30,402 26,573 26,673 31,157
Reserves 12,215 18,435 21,449 23,677 25,843 Int./Div. Received 2,379 2,056 1,692 1,457 1,623
N e t Wo rt h 14,392 20,615 23,628 25,857 28,023 Interest P aid -255 -253 -75 -112 -91
Lo ans 885 4,219 1,883 1,594 1,305 Direct Taxes P aid -3,643 -5,244 -5,644 -5,463 -6,417
C a pit a l E m plo ye d 15,278 24,835 25,512 27,451 29,328 (Incr)/Decr in WC 2,641 -742 2,251 717 2,494
Change in Deff 122 -424 -172 -184 -196
Gro ss B lo ck 26,691 28,817 34,817 36,817 39,317 C F f ro m O pe ra t io ns 21,968 25,794 24,624 23,090 28,569
Less: A ccum. Depn. -11,466 -12,750 -14,563 -16,569 -18,701
Extrao rdinary Items 1,824 -43 -144 0 0
N e t F ixe d A s s e t s 15,225 16,068 20,254 20,248 20,617
(Incr)/Decr in FA -2,818 -4,991 -2,779 -2,000 -2,500
Capital WIP 1,856 4,721 1,500 1,500 1,500
(P ur)/Sale o f Investments 9,731 -4,786 -1,660 -1,654 -3,674
Investments 14,408 19,194 20,854 22,507 26,181
C F f ro m Inv e s t . 8,737 -9,819 -4,583 -3,654 -6,174
Deferred Charges 2,124 2,548 2,720 2,904 3,100
Change in Netwo rth -8,782 381 -11 0 0
C urr. A s s e t s , L&A 32,774 40,142 42,482 46,903 51,709 (Incr)/Decr in Debt 159 3,334 -2,336 -289 -289
Invento ry 19,536 25,289 26,745 29,361 32,847 Dividend P aid -23,316 -19,123 -17,088 -17,853 -21,424
A cco unt Receivables 4,434 5,369 5,715 6,274 7,019 Others -927 -669 -475 -468 -550
Cash and B ank B alance 2,009 1,906 2,037 2,862 2,994 C F f ro m F in. A c t iv it y -32,866 -16,077 -19,910 -18,610 -22,263
Others 6,796 7,579 7,984 8,405 8,849
C urr. Lia b. a nd P ro v . 51,110 57,838 62,298 66,612 73,780 Inc r/ D e c r o f C a s h -2,161 -102 131 826 132
A cco unt P ayables 28,785 33,050 37,150 40,463 44,190 A dd: Opening B alance 4,169 2,009 1,906 2,037 2,862
Other Liabilities 15,610 16,068 16,349 17,807 19,598 C lo s ing B a la nc e 2,008 1,906 2,036 2,862 2,994
P ro visio ns 6,716 8,720 8,800 8,341 9,992
N e t C urre nt A s s e t s -18,336 -17,696 -19,817 -19,709 -22,070
A pplic a t io n o f F unds 15,278 24,834 25,512 27,451 29,328
E: M OSL Estimates; FY09 Fifteen mo nth ending

23 March 2010 8
Hindustan Unilever

N O T E S

23 March 2010 9
Hindustan Unilever

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Disclosure of Interest Statement Hindustan Unilever


1. Analyst ownership of the stock No
2. Group/Directors ownership of the stock No
3. Broking relationship with company covered No
4. Investment Banking relationship with company covered No

This information is subject to change without any prior notice. MOSt reserves the right to make modifications and alternations to this statement as may be required
from time to time. Nevertheless, MOSt is committed to providing independent and transparent recommendations to its clients, and would be happy to provide
information in response to specific client queries.

23 March 2010 10