cmami limited JIHGFEDCBA * em a rru ZYXWVUTSRQPONMLKJIHGFEDCBA D a te : 7 th A u g u s t, 2 0 1 8 T h e S e c r e ta r y T h e S e c r e ta r y T h e N a tio n a l S to c k E x c h a n g e o f I n d ia L td . B S E L im ite d N o . c / i . G . B lo c k E x c h a n g e P la z a , P lo t P h ir o z e J e e je e b h o y T o w e r s B a n d r a K u r la C o m p le x , B a n d r a ( E ) D a la l S tr e e t M u m b a i - 4 0 0 0 5 1 M u m b a i - 4 0 0 0 0 1 T h e S e c r e ta r y T h e C a lc u tta S to c k E x c h a n g e L im ite d 7 , L y o n s R a n g e K o lk a ta - 7 0 0 0 0 1 D e a r S ir , P u r s u a n t to P r o v is io n o f R e g u la tio n 3 0 o f th e S E B I ( L is tin g O b lig a tio n s a n d D is c lo s u r e R e q u ir e m e n ts ) R e g u la tio n s , 2 0 1 5 , w e a r e e n c lo s in g h e r e w ith c o p y o f p r e s e n ta tio n p r e s e n te d in th e I n v e s to r s / A n a ly s t m e e tin g s h e ld o n 7 th A u g u s t, 2 0 1 8 , o r g a n is e d b y th e C o m p a n y . T h e a f o r e s a id P r e s e n ta tio n is a ls o a v a ila b le o n th e w e b s ite o f th e c o m p a n y w w w .e m a m iltd .in T h is is f o r y o u r in f o r m a tio n a n d r e c o r d s . T h a n k in g y o u , Y o u r s f a ith f u lly , For Emami Limited AshJfsi A s s is ta n t C o m p a n y S e c r e ta r y C M cJ..fH..e.- fry) C', regd. office: 687 anandapur e. m . bypass kolkata 700107 india phone: 91 3366136264 tele tax: 91 3366136600 e-m ail: contact@ em am igroup.com w ebsite: w w w .em am iltd.in C IN : L63993V V B 1983P LC 036030
Investor/ Analyst Meet 7 th August 2018
Some of the statements made in this presentation may look forward looking information that involves number of risks and uncertainties. Such statements are based on certain assumptions, estimates, projections or plans that are inherently subject to significant risks, uncertainties and contingencies that are subject to change. Actual results can differ materially from those anticipated in the Company’s forward‐looking statements as a result of a variety of factors, including those set forth from time to time in the Company ´ s press releases and reports and those set forth from time to time in the Company’s analyst calls and discussions. We do not assume any obligation to update the forward‐looking statements contained in this presentation. No part of this presentation shall form the basis of or may be relied upon in connection with any contract or commitment. This presentation is being presented solely for your information and is subject to change without notice. Previous years’ financials re -casted as per Ind-AS. All market shares mentioned in this presentation are as per AC Nielsen MAT Mar’18 in volume terms. 1 Conversion rate : 1 US$ = ₹ 65.1/- (As on 1 st April 2018)
Agenda 1. FMCG Sector Overview 2. Company Overview 3. Our Power Brands 4. International Business 5. Drivers of Business 2
FMCG Sector Overview 3
FMCG Sector Overview Indian FMCG Sector is Higher incomes to aid growth. Low penetration levels expected to grow at a India’s Per Capita Income has indicate long term CAGR of 20.6% by 2020 grown at a 5 yr CAGR of 10.2% growth story Size of the Indian FMCG Sector India's Per Capita Income (₹ in lacs) Men's Fairness 4% (US$ bn) Winter Lotion 6% Deodorants 8% 1.12 1.03 104 0.94 Facewash 8% 0.86 Ayurvedic Oil 9% 0.75 Petroleum Jelly 12% 49 Cooling Oil 16% Light Hair Oil 24% 9 Antiseptic Crm 27% Balms 29% Talcum Powder 41% 2000 2017 2020e FY14 FY15 FY16 FY17 FY18e 92% Hair Oil Source: MOSPI Source: IMRB Source: IBEF, April 2018 4
Key Growth Drivers Climbing up the ladder - Per Bigger population, stronger Capita Income to grow 5x in 2 01 income and higher demand decades to ₹ 2.7 lacs by 2030 Increased acceptance of 02 1% 1% 3% Ayurveda 6% 25% Shift to branded/ organized 03 46% sector due to GST Increasing 93% 04 74% Premiumisation 51% Emergence of Male Grooming 05 Segment 2005 2015 2025 Emergence of e-commerce Deprived Middle Class Rich 06 and growth of Modern Trade Source: Hitting the sweet Spot, EY, McKinsey Global Institute 5
Company Overview 6
Key Facts More than 120 products 46x returns Flagship sold every second since Public Issue company of the across the globe in 2005 Emami Group 5 Power brands Reach in 4 mn + with market Retail Outlets leadership Established in 1974. Market Cap of Promoted by Presence in 60+ ~ ₹ 26,000 cr Mr. R.S. Agarwal & Countries Mr. R.S. Goenka Category creator Entered mainstream with a differentiated categories to reach out niche positioning to a wider consumer base 7
Past Performance – Last 10 years Revenues* grew by EBIDTA grew by Market Cap grew by 3.6 x 5.6 x 19.1 x 24,240 719 2,506 690 129 1,271 FY09 FY18 FY09 FY18 FY09 FY18 *Adjusted for Ind AS & GST ₹ in crore 8
Our Power Brands 9
Navratna Penetration Volume Levels Market Share Cool Oils 17% 64% Leveraging Growth Opportunities 3 1 2 Expanding Strengthen Develop New Traditional New Usership Markets Markets • Cool Oil penetration low at 16% • Core Markets (UP, Bihar, Jharkhand) • Development of Identified whereas Hair Oil penetration is at 92% contribute to almost 40% of total emerging markets (Gujarat, category sales Maharashtra, AP, Telengana, • With Urbanisation and rising lifestyle WB) by recruiting new users in disorders, there is an increase in • Market Share in Core Markets has the category and drive incidences of stress or physical increased from 40% to 45% in last 5 penetration has helped in discomforts →Thus, the need for safe years. growing the brand. 10 and natural remedies go up
Navratna Strengthen Traditional Markets Develop New Markets Expanding Usership (UP, Bihar, Jharkhand) (Gujarat, Maharashtra, AP, WB) Focused on-ground activations done in Connect with New users Expanding Usership by recent past will continue to drive share • These markets still have mass appeal increasing occasions of use gains in the core markets: of mega stars like Amitabh Bachchan where regionalization of • Focus on multiple problems – • Expanding reach through Bhojpuri in- communication (like language edits headache, body ache, film integration and movie screening of popular campaign ‘ Sar Jo Tera tension, sleeplessness etc. through Caravan activity (Video on Chakraye ’) has helped in creating Wheels) relevant connect. • Recent communication ‘ Sar Jo Tera Chakraye ’ campaign • Extensive on-ground wet and dry Substitute existing products (e.g. was built on same and giving sampling in Melas , saloons, door-to-door, Anti-Coconut Strategy) us room for further growth etc. • Continue to target coconut oil (MOUB in South) application for • Leveraging local media through a Print massage, head on with a activation in association with Amar Ujala comparative communication creating a unique property called Navratna Shreshtha Pradhan • Leveraged the star power of local icon- Jr. NTR • Wide-spread visibility campaign through branding in wall paintings, dealer • Household Penetration in AP boards, Railway time-tables and rural increased by 3% from FY17 to FY18 sales van through this stance. While penetration is still below 10%. 11
BoroPlus One of India’s most trusted brands over the years Penetration Levels BoroPlus Antiseptic Cream Volume BoroPlus BoroPlus Market Share BoroPlus Prickly Heat Antiseptic Body Lotion Powder Cream 74% 0.2% 0.5% 23% Leveraging the growth Opportunities To strengthen the brand as an expert multipurpose skin solution by providing efficacious do good solutions 10.9% Skincare penetration @ 79% Increase brand relevance, consumption Skincare amongst top 2 Big room to grow for BoroPlus Strong growth in rural led Emergence of MT as a & penetration by strong range having much lesser fastest growing non- by accessibility, growth driver with B2B 360 degree food categories penetration affordability & awareness helping to increase indirect communication distribution 12
BoroPlus Growth Opportunities BoroPlus Antiseptic Cream surging ahead Strengthen brand relevance as an everyday skin expert based on strong heritage Increase in volume market Year on year Year on year share in the emollient increase in increase in category (excluding lotion); average household Build portfolio by Strong gaining from petroleum product launches consumption penetration innovation jelly and cold cream market around related funnel of addressable skincare products needs Cross Consumer promotion of Establishing New Launches recruitment by product sampling portfolio To target younger users and shift dependency of mother brand from winter season Presence in category Reinforce recruitment • Address younger audience product channels: MT & superiority • Generate brand momentum ecommerce Role in through differentiated promise, portfolio packaging & communication • Add skincare values to portfolio BOROPLUS • Build brand awareness amongst consumers through sustained TRUSTWORTHY NATURAL/AYUR ANTISEPTIC media PURPOSE HEALING MULTI - Way VEDIC • Leverage Emami distribution to forward widen availability • Ensure product trials by consumers leading to repurchase 13
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