1. UNILEVER PAKISTAN

2. Meeting Everyday Needs of People Everywhere

3. Key Drivers of Industry
.
• GDP Growth
The continuing trend of GDP growth in Pakistan restores confidence in the future prospects of
increasing revenues.
• Low Inflationary Trends
Low inflationary trend has helped in keeping the cost of inputs in check.
• Favorable Exchange Rate
The strengthening of the rupee has resulted in lower the cost of inputs that are imported
• Response to Advertising
The company recorded its highest sales revenue in 2002 which it attributed to a 43% increase in
advertising expenditure. The company gives credit to schemes such as the “Supreme Inami Khazana”
and advertisement of songs such as “Supreme Ishq”
• Lower Tariffs
Lower raw material costs due to lower tariffs
• Lower Interest Rates
Lower interest rates have resulted in creation of a conducive environment for investment.

4. Industry Sales Trend
.
Sales - Industry vs UniLever
70,000.00
60,000.00
50,000.00
40,000.00
30,000.00
20,000.00
10,000.00
0.00
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Sales(Industry)
Sales(UniLever)

5. Market Share
|

6. Operating, EBT & Net Margins
.
.

7. Income Statement
.

8. DuPont Analysis
.
.
DUPONT Analysis
200%
180%
160%
140%
120%
100%
80%
60%
40%
20%
0%
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
1996
1997
1998
1999
2000
2001
2002
Net Margins
2003
ROE
2004
2005
Leverage
2006
2007
Asset Turnover
2008
2009
2010
2011
2012

9. Cash Flow (I)
|

10. Cash Flows (II)
.

11. Valuation of Firm
.
Risk Free Rate = 4%
Market Risk Premium = 5%
Required Return of Equity Holders = 9.25%
WACC = 6.6%
Assuming growth rate to be 2%,
10
Value of firm = Σ [FCFF/(1+WACC)] + [FCFF/(WACC-g)] / (1+WACC )
= Rs. 54,989.53 million
Value of Equity = Value of Firm – Value of Debt = 43,578.4
Fair Value of Stock = Value of Equity / No. of Outstanding shares = Rs. 2,178.88
Current Stock Price = Rs. 1,495

12. Rating
|
• Valuation of Management
(High)
• Earnings Momentum
( 2003 - 2004)