HUL Annual Report

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HUL Annual Report MAKING SUSTAINABLE LIVING COMMONPLACE ANNUAL REPORT 2015-16 SWACHH AADAT SWACHH BHARAT ‘SWACHH AADAT, SWACHH BHARAT’ (SASB) PROGRAMME IS IN LINE WITH GOVERNMENT OF INDIA’S SWACHH BHARAT ABHIYAN (CLEAN INDIA MISSION) TO PROMOTE GOOD HEALTH AND HYGIENE PRACTICES. The Swachh Aadat, Swachh Bharat programme has three key thrusts: An on-ground behaviour change model, a mass media campaign to drive engagement and awareness and mobile education on health and hygiene led by our factory workers. A MASS MEDIA CAMPAIGN ON SASB HAS BEEN LAUNCHED TO PROMOTE AWARENESS ACROSS THE COUNTRY. TILL DATE, THE CAMPAIGN HAS REACHED 75 MILLION PEOPLE THROUGH TELEVISION AND PRESS COVERAGE. IT HAS RECEIVED MORE THAN 20 MILLION VIEWS ON YOUTUBE. PEOPLE REACHED 75million people reached through television and press coverage 20million views on YouTube OUR PURPOSE UNILEVER HAS A SIMPLE BUT CLEAR PURPOSE – TO MAKE SUSTAINABLE LIVING COMMONPLACE. WE BELIEVE THIS IS THE BEST LONG-TERM WAY FOR OUR BUSINESS TO GROW. Our distinct Purpose and our operational expertise across our business model will help realise our vision of accelerating growth in the business, while reducing our environmental footprint and increasing our positive social impact. Our Purpose and vision are ambitious but are consistent with the changing attitudes and expectations of consumers. Our unswerving commitment to sustainable living is increasingly delivering both more trust from consumers and a strong business for shareholders with lower risks and consistent, competitive and profitable long-term growth. CONTENTS Overview Financial Statements – About Us 2 Standalone Financial Statements – Our Performance 4 – Economic Value Added 86 – Unilever Sustainable Living Plan 5 – Independent Auditors’ Report 88 – Financial Performance 6 – Balance Sheet 96 – Performance Trends 7 – Statement of Profit and Loss 97 – Chairman’s Statement 8 – Cash Flow Statement 98 – Board of Directors 9 – Notes 100 – Our Business Model 10 – Our People 12 Consolidated Financial Statements – Our Brands 14 – Independent Auditors’ Report 144 – Our Operations 16 – Balance Sheet 148 – Strategic Focus 18 – Statement of Profit and Loss 149 – Management Committee 20 – Cash Flow Statement 150 – Notes 152 Reports – Form AOC-1 198 – Notice 21 – Profile of Directors (seeking re-appointment) 26 Shareholder Information – Directors’ Report and Management – Investor Safeguards 200 – Corporate Information 201 This programme promotes good Discussion and Analysis 28 health and hygiene practices by – Corporate Governance Report 64 – Proxy stressing the need to adopt three – Secretarial Audit Report 84 simple good habits (Swachh Aadat) – washing hands five times a day, using a toilet for defecation and ONLINE adopting safe drinking water You can find more information about Hindustan Unilever Limited online at www.hul.co.in. For further information on practices. the Unilever Sustainable Living Plan (USLP) visit www.hul.co.in/sustainable-living/ 2 ABOUT US NINE OUT OF TEN INDIAN HOUSEHOLDS USE OUR PRODUCTS EVERYDAY TO FEEL GOOD, LOOK GOOD AND GET MORE OUT OF LIFE. 11 BR ANDS > Rs. 1,000 CRORE OUR CATEGORIES AND BRANDS Each of our categories - Home Care, Personal Care, Foods and Refreshments, include a portfolio of brands that aim to deliver consistent, competitive, profitable and responsible growth. Our endeavour is supported by consistent investment in product innovation and marketing activities. With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Our portfolio includes leading household brands such as Lux, Lifebuoy, Surf excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit. Rs. 1,000 CRORE + BRANDS 1. Lux 2. Dove 3. Clinic Plus 4. Pond’s 5. Vim Rs. 2,000 CRORE+ BRANDS 1. Surf excel 2. Brooke Bond 3. Wheel 4. Rin 5. Lifebuoy 6. Fair & Lovely Hindustan Unilever Limited Annual Report 2015-16 Overview Reports Financial Statements Shareholder Information 3 18,000 EMPLOYEES ARE OUR BIGGEST STRENGTH WHERE WE OPERATE Hindustan Unilever Limited operates across the length and breadth of India. We have over 18,000 employees working across our factories and offices. Conducting our operations with integrity and with respect for the many people, organisations and environments, our business touches, has always been at the heart of our corporate responsibility. Annual Report 2015-16 Hindustan Unilever Limited 4 OUR PERFORMANCE THE BENEFITS THAT OUR VISION AND STRATEGY DELIVERS, TRANSLATES INTO GROWTH ORIENTED PERFORMANCE FOR SHAREHOLDERS AND SOCIETY AT LARGE. SEGMENTAL PERFORMANCE SEGMENTAL REVENUE (%) SEGMENTAL RESULTS (%) Soaps and Detergents 47.1 Soaps and Detergents 38.0 Personal Products 30.2 Personal Products 48.9 Beverages 12.2 Beverages 11.6 Packaged Foods 6.6 Packaged Foods 2.2 Others 3.9 Others -0.7 FINANCIAL NET REVENUE OPERATING PROFIT EPS (BASIC) CASH FROM OPERATIONS 2015-16 2015-16 2015-16 Rs. 31,987 Rs. 5,409 Rs. 18.87 2015-16 crores crores crores Rs. 5,000+ The Domestic Consumer Operating profit grew by 10% Last year basic EPS: crores business grew by 4% with 6% with operating margins Rs. 19.95 per share Cash from operations was up underlying volume growth in a improving +90 bps Rs. 620 crores over the challenging environment previous year NON-FINANCIAL MANUFACTURING 2015 2015 2015 42% 48% 92% Reduction in CO2 per tonne of Reduction in water usage (per Reduction in disposed waste production compared to 2008 tonne of production) in our generated (kg per tonne of baseline manufacturing operations production) compared to 2008 compared to 2008 baseline baseline BETTER LIVELIHOODS SUSTAINABLE HEALTH AND 2015 SOURCING WELL-BEING ~70,000 2015 2015 No. of Shakti Ammas (women 100% >125 million Shakti Entrepreneurs) Tomatoes used in Kissan People reached through our empowered ketchup sourced sustainably health and hygiene programmes Hindustan Unilever Limited Annual Report 2015-16 Overview Reports Financial Statements Shareholder Information 5 UNILEVER SUSTAINABLE LIVING PLAN IMPROVING HEALTH AND WELL-BEING ENHANCING LIVELIHOODS By 2020, we will help more than a billion people By 2020, we will enhance the livelihoods of millions of people as we grow take action to improve their health and well-being our business. HEALTH AND NUTRITION FAIRNESS IN THE OPPORTUNITIES INCLUSIVE HYGIENE TARGET WORKPLACE FOR WOMEN BUSINESS TARGET By 2020, Unilever will TARGET TARGET TARGET By 2020, Unilever will double the proportion of By 2020, Unilever will By 2020, Unilever will By 2020, Unilever will help more than a billion portfolio across the advance human rights empower five million have a positive impact on people globally to globe, that meets the across global operations women across the globe. the lives of 5.5 million improve their health and highest nutritional and extended supply people across the world. hygiene. This will help standards, based on chain. PERFORMANCE reduce the incidence of globally recognised In India, our Shakti PERFORMANCE life-threatening dietary guidelines. This PERFORMANCE programme empowered 7,500 people across diseases like diarrhoea. will help hundreds of 100% of the factory sites nearly 70,000 Shakti India have been provided millions of people to and offices in HUL Entrepreneurs by end of entrepreneurship PERFORMANCE achieve a healthier diet. adhere to Collective 2015. opportunities through In India, our health and Bargaining Agreements. ‘I Am Wall’s’ - the hygiene programmes PERFORMANCE Kwality Wall’s vending have reached over 125 In India, 46% of our total operation. million people. foods and refreshment portfolio met the highest nutrition standards in 2015. REDUCING ENVIRONMENTAL IMPACT By 2020, our goal is to halve the environmental footprint of the making and use of our products as we grow our business. GREENHOUSE GASES WATER WASTE SUSTAINABLE TARGET TARGET TARGET SOURCING Halve the greenhouse gas Halve the water used across the Halve the waste associated TARGET impact of Unilever products global value chain by 2020. with the disposal of Unilever By 2020, Unilever will source across the lifecycle by 2020. products by 2020. 100% of agricultural raw PERFORMANCE materials for global operations PERFORMANCE In 2015, water usage (cubic PERFORMANCE sustainably. In 2015, your Company reduced meter per tonne of production) In 2015, compared to 2008 CO2 emissions per tonne of in HUL manufacturing baseline, there was over 92% PERFORMANCE production by 42% compared to operations reduced by 48% reduction in disposed waste In 2015, your Company sourced 2008 baseline. compared to 2008 baseline. generated (kg per tonne of 100% of tomatoes used in production) and 30% reduction Kissan ketchup from in total waste generated in our sustainable sources. In India, operations (disposed waste and over 28% of tea is sourced for recycled waste). Unilever from sustainable sources. Our USLP commitments and targets are subject to internal verification. For details of the definitions and reporting periods used in the preparation of these commitments and targets, see our Sustainable Living Section at www.hul.co.in/sustainable-living. Annual Report 2015-16 Hindustan Unilever Limited 6 FINANCIAL PERFORMANCE 10 YEAR RECORD Standalone Rs. crores Statement of Profit and 2006 2007 2008-09 2009-10 2010-11^ 2011-12^ 2012-13^ 2013-14^ 2014-15^ 2015-16^ Loss (15 months) Gross Sales* 13,035.06 14,715.10 21,649.51 18,220.27 20,285.44 22,800.32 26,679.76 28,947.06 32,086.32 33,855.58 Other Income 354.51 431.53 589.72 349.64 627.38 659.08 1,210.73 1,231.87 1,253.51 1,062.53 Interest (10.73) (25.50) (25.32) (6.98) (0.24) (1.24) (25.15) (36.03) (16.82) (0.18) Profit Before Taxation @ 1,861.68 2,146.33 3,025.12 2,707.07 2,730.20 3,350.16 4,349.48 4,799.71 5,523.12 5,909.62 Profit After Taxation @ 1,539.67 1,743.12 2,500.71 2,102.68 2,153.25 2,599.23 3,314.35 3,555.32 3,842.86 4,077.84 Earnings Per Share of Re.
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