5th June, 2020 Stock Code: BSE-500696 NSE- HINDUNILVR ISIN: INE030A01027 BSE Limited National Stock Exchange of India Limited Corporate Relationship Department, Exchange Plaza, 5th Floor, 2nd Floor, New Trading Wing, Plot No. C/1, G Block, Rotunda Building, P.J. Towers, Bandra – Kurla Complex, Dalal Street, Bandra (E), Mumbai – 400 001 Mumbai – 400 051 Dear Sir, Sub.: Annual Report for the financial year ended 31st March, 2020 This is further to our letter dated 27th May, 2020 wherein the Company had informed that the Annual General Meeting of the Company is scheduled to be held on Tuesday, 30th June, 2020 through Video Conference / Other Audio-Visual Means, in accordance, with the relevant circulars issued by Ministry of Corporate Affairs and Securities and Exchange Board of India (SEBI). In terms of the requirements of Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are submitting herewith the Annual Report of the Company including the Business Responsibility Report and the Notice of AGM for the financial year 2019-20, which is also being sent through electronic mode to the Members. The Annual Report containing the Notice of Annual General Meeting is also uploaded on the Company’s website at https://www.hul.co.in/investor-relations/annual-reports/. You are requested to kindly take the above information on record. Thanking You, Yours faithfully, For Hindustan Unilever Limited Dev Bajpai Executive Director, Legal & Corporate Affairs and Company Secretary DIN : 00050516 / FCS : F3354 Encl. as above Purpose-led, future-fit Hindustan Unilever Limited Integrated Annual Report 2019-20 Basis of Preparation and Presentation INTEGRATED ANNUAL REPORT 2019-20 Summary by the Companies Act, 2013, Listing Your Company’s USLP performance is a Contents The terms ‘HUL’, ‘the Company’, ‘your Regulations and the Secretarial Standards. subset of the Unilever PLC’s reported USLP Company’,‘we’, ‘our’ and ‘us’ refer to performance. Independent assurance has Hindustan Unilever Limited. Our Reporting Scope been provided by PricewaterhouseCoopers OVERVIEW Integrated Annual Report encompassing The Annual Report including the Integrated LLP over the Unilever PLC aggregated USLP About Us 02 the Statutory Reports, (page nos. 2 to 96), Report, Statutory Reports and Audited and Environmental and Occupational Chairman’s Statement 04 Safety performance indicators for contains information about us, how we Financial Statements provides information Board of Directors 06 create value for our stakeholders and with respect to the Company’s operations 2019, details of which are provided Management Committee 07 how we run our business. It includes for the Financial Year 2019-20 (unless online at https://www.unilever.com/ Our Performance 08 our strategy, business model, market specifically mentioned otherwise). investor-relations/annual-report-and- Financial Performance 09 outlook and key performance indicators. accounts/#Downloads. Unilever Sustainable Living Plan 10 The Report of Board of Directors and the Accountability Statement The Company has obtained Certificate Management Discussion and Analysis The Company’s Board of Directors confirm from M/s. B S R Co. & LLP, Statutory Auditors Our Fast-changing World 12 include details of our performance as well that the HUL Annual Report, taken as a confirming the compliance of conditions of Our Strategy 15 as our approach to sustainability and risk whole, is fair, balanced and provides fair Corporate Governance as stipulated under Our Value Creation Model 16 management. Our Corporate Governance and necessary information to shareholders Listing Regulations and Certificate from Report, which forms a part of the Report on the Company’s performance, M/s. S. N. Ananthasubramanian & Co., REPORTS of Board of Directors, (page nos. 71 to 96), business model and strategy, together Company Secretaries confirming Report of Board of Directors and contains an analysis of steps taken with a description of the material risks compliance with the Companies Act, 2013 Management Discussion & Analysis 18 in the area of Corporate Governance and opportunities. (the Act), applicable Rules made under the including information as required under Act, Listing Regulations issued by Securities Annual Report on Corporate Social Responsibility 54 the Securities and Exchange Board of Cautionary Statement and Exchange Board of India (SEBI). Business Responsibility Report 60 India (Listing Obligations and Disclosure Statements in this Annual Report, The Certificates form part of this Report. Corporate Governance Report 71 Requirements) Regulations, 2015 (Listing particularly those that relate to the Secretarial Audit Report 94 Regulations). Our Financial Statements Management Discussion and Analysis, Materiality Determination Economic Value Added 97 and Notes are on (page nos. 99 to 215). The describing the Company’s objectives, This Report provides fair and balanced Integrated Report, Statutory Reports and projections, estimates and expectations, information about the relevant matters Financial Statements have been approved FINANCIAL STATEMENTS may constitute ‘forward-looking that substantively affect your Company’s by the Board of Directors. Standalone Financial Statements statements’ within the meaning of ability to create value both positively applicable laws and regulations. and negatively, including risks and Independent Auditors’ Report 100 Standards & Frameworks Although the expectations are based opportunities and favourable and Balance Sheet 108 The Integrated Report is prepared in on reasonable assumptions, the actual unfavourable performance or prospects. Statement of Profit and Loss 110 accordance with the guiding principles of results might differ. To identify material information or matters, Statement of Changes in Equity 112 the Integrated Reporting <IR> Framework we have taken a holistic perspective by Statement of Cash Flows 114 recommended by the International regularly engaging with the various Assurance by Notes 116 Integrated Reporting Council (IIRC). key stakeholders. Statutory Reports, including the Report Independent Auditor of Board of Directors, the Management The enclosed standalone and Consolidated Financial Statements consolidated Financial Statements of Discussion and Analysis (MD&A) and the Consolidated Independent Auditors’ Report 160 your Company have been audited by Corporate Governance Report, are as per Consolidated Balance Sheet 167 the regulatory requirements mandated Independent Auditors M/s. B S R & Co. LLP, Consolidated Statement of Profit and Loss 169 Chartered Accountants. Consolidated Statement of Changes in Equity 171 Consolidated Statement of Cash Flows 173 Consolidated Notes 175 Read more online Form AOC-1 215 l You can find more information about HUL at: www.hul.co.in/ l Unilever Sustainable Living Plan (USLP) at: www.hul.co.in/sustainable-living/ l Annual Report along with other related documents can be downloaded at: www.hul.co.in/investor-relations/annual-reports/ OTHERS hul-annual-report-related-documents.html Awards & Recognition 216 Corporate Information 217 NOTICE OF ANNUAL GENERAL MEETING 218 Kind Attention Members: PROFILE OF DIRECTORS 226 Instructions for joining the AGM For detailed instructions to join the AGM through Video Conference (VC)/ Other Audio Visual Means (OAVM) and the procedure to raise questions / seek clarifications with respect to the Annual Report 2 | Hindustan Unilever Limited refer (page nos. 219 to 222) of this Report. Overview Reports Financial Statements About Us AT A GLANCE Hindustan Unilever Limited (HUL) is India’s largest fast-moving consumer goods Company with a heritage of over 80 years. More than nine out of ten Indian households use one or more of our brands to feel good, look good and get more out 21,000 of life, giving us a unique opportunity to build a brighter future. Employees Each of our divisions – Home Care, Our portfolio includes leading brands Beauty & Personal Care, Foods and such as Surf excel, Rin, Wheel, Sunlight, Refreshment – include a portfolio of brands Vim, Pureit, Lux, Lifebuoy, Dove, Fair & that serve consumers across the length and Lovely, Pond’s, Vaseline, Clinic Plus, Sunsilk, breadth of India. With more than 44 brands Indulekha, Lakmé, Pepsodent, Closeup, 44+ across 14 distinct categories including Axe, Brooke Bond, Lipton, BRU, Kwality Brands across Fabric Solutions, Home and Hygiene, Wall’s, Knorr and Kissan. Effective 14 distinct categories Life Essentials, Skin Cleansing, Skin Care, 1st April, 2020, your Company, after the Hair Care, Colour Cosmetics, Oral Care, merger of the business of GlaxoSmithKline PURPOSE-DRIVEN Deodorants, Tea, Coffee, Ice Cream & Consumer Healthcare Limited (GSK CH), PERFORMANCE Frozen Desserts, Foods, Health Food Drinks has also acquired iconic brands like (HFD), the Company is part of the daily life Horlicks and Boost, amongst others. More than nine out of ten Indian of millions of consumers. Our products are available in over 8million+ households use our brands. With this reach eight million outlets across India. Outlets across India comes responsibility and opportunity. That is why we have made it our purpose Following the merger of GSK CH into your business models, your Company is to make sustainable living commonplace. Company effective 1st April, 2020, we now re-imagining itself to stay ahead. We are To help people live well within the limits of have around 21,000 employees working embedding technology across all our the planet. This is not just