Company Overview May 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)
Contents 1. Economy Overview ………………………………………….. 03 2. Company Overview ………………………………………….. 07 3. Brand Overview …………………………………………………. 14 4. International Business Overview ……………….. 24 5. Business Overview ………………………………………….... 28 6. Sustainability Initiatives ………………………………….. 40 7. CSR Initiatives …………………………………………………….. 41 8. Major Awards & Rankings ……………………………… 42 9. Ratings & Accreditations ……………………………..... 43 10. Key Investment Highlights …………………………... 44 2
Economy & Sector Overview 3
Economy Overview One of the fastest growing economies, India’s India’s “Ease of doing Business” Real GDP is poised to grow by 7.4% in 2018. ranking improves significantly in 2018. Ease of Doing Business - India Ranking World Real GDP India Real GDP 8.5% 142 7.9% 131 7.8% 130 7.4% 7.1% 6.7% 100 3.9% 3.9% 3.8% 3.8% 3.5% 3.2% 2015 2016 2017 2018e 2019e 2020e 2015 2016 2017 2018 Source: IMF, April 2018 Source: World Bank 4
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 5
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 02 Increasing Premiumisation 1% 1% 3% 6% 25% Emergence of Male 03 46% Grooming Segment Increased acceptance 93% 04 74% of Ayurveda 51% Emergence of e-commerce and 05 growth of Modern Trade 2005 2015 2025 Shrift to orgainsed sector Deprived Middle Class Rich 06 due to GST Source: Hitting the sweet Spot, EY, McKinsey Global Institute 6
Company Overview 7
Key Facts More than 120 products Flagship 46x returns sold every second company of the since Public Issue* across the globe Emami Group 5 Power brands Reach in 4 mn + with market Retail Outlets leadership Established in 1974. Market Cap of more Promoted by Presence in 60+ than ₹ 24,000 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 *As on 31 st March 2018 8
Business Highlights Revenue Split One of the fastest growing personal and healthcare businesses in India- CSD Revenues growing at a 10 year CAGR of 17% . • 4% EBIDTA growing at a 10 year CAGR of 22% . • Int'l Business 11% Cash Profits growing at a 10 year CAGR of 20% . • Superior gross margins in the industry – EBITDA margin before A&P at 47% Domestic Production from tax free zones. 85% Keen on opportunities for acquisitions in India and in International focused Markets. Building best-in-class IT system coming up from a tactical IT capability blueprint. Building capabilities by roping in best talents from the FMCG industry to catalyse growth. 9
The Journey Acquired Himani Ltd Launched BoroPlus Antiseptic Cream Launched Navratna Oil Emami started with a meagre capital Listed on BSE Issued 1:1 Bonus. Stock Split from ₹ 10 to ₹ 2/ - Public issue of 50 Lac shares Listed on NSE Launched Fair & Handsome Strategic Investments in “The Launched Man Company” and ‘ Brilliare ” Navratna Cool Talc Acquired Zandu Pharmaceutical Works Ltd. Demerged Zandu FMCG into Emami Raised ₹ 310 cr. through QIP Stock Split from ₹ 2 to ₹ 1/ - Overseas Manufacturing facility set up in Bangladesh 1:2 Bonus Shares Issued Launched Fair & Acquired Commenced Handsome Face Hair & Scalp operations at new Wash, HE Deodorants Care unit at Pacharia, 10 & 7 Oils in One, business of Guwahati. “Kesh King”
Ownership Structure As on 31 st March 2018 Shareholding Breakup Major FII’s & MF’s Matthews Aberdeen FII & MF's 18.8% Nomura BMO Others 8.5% Others Birla Sunlife Promoters 72.7% Jo Hambro F&C Management Vanguard Capital World Mondrian 11
Board of Directors Promoter Directors Mr. R.S. Agarwal Mr. S.K Goenka Mr. Mohan Goenka Mr. R.S. Goenka Mr. A.V. Agarwal Mr. H.V. Agarwal Mr. Prashant Goenka Ms. Priti A Sureka Executive Chairman Managing Director Whole Time Director Whole Time Director Non Executive Director Whole Time Director Whole Time Director Whole Time Director Independent Directors Mr. C.K. Dhanuka Mr. M.D. Mallya Mr. K.N. Memani Mr. Y.P. Trivedi Ms.Rama Bijapurkar Mr. P.K. Khaitan Mr. A.K. Deb Mr. S.B. Ganguly Industrialist Banker Ex-Country Head of Eminent Tax expert Eminent consumer & Advocate & Sr. Partner Ex-Chief Secretary, Professional E&Y, India & Advocate marketing strategist Khaitan & Co Govt. of West Bengal 12
Returns to Investors As on 31 st March 2018 24,470 x 45.9 x 10.4 x Public Issue QIP Maiden Issue 2005 2009 1980 13
Brand Overview 14
Snapshot of Major Brands ₹ 600 cr + ₹ 200 cr + ₹ 400 cr + Therapeutic Cooling Oils & Fairness Cream and Cool Talc Antiseptic Creams, Body Lotion, Facewash for Men Prickly Heat Power & Face Wash ₹ 500 cr + ₹ 100 cr + Ayurvedic Hair and Scalp Balms & Ayurvedic care Pain Balm Healthcare Products New Brands - Crème Hair Colour Deodorants, Perfumes Light Hair Oil 15 08 Sample text and Waterless Facewash
Snapshot of Major Brands Market Share (%) Market Size Market Size Brands Segment (₹ in bn.) ($ in mn.) 2013 2018 Navratna Oil Cooling oil 9.3 142.9 55% 64% BoroPlus Cream Antiseptic Cream 5.6 85.3 74% 74% Zandu & Mentho Plus Balms 9.0 139.0 58% 54% Fair & Handsome Men's Fairness Cream 3.9 59.2 58% 66% Fairness Cream Kesh King Ayurvedic Hair and Scalp Oil 7.1 109.5 - 28% Navratna Cool Talc ^ Cool Talc 5.5 84.5 18% 26% Fair & Handsome Face Men’s Facewash 3.0 46.7 - 16% Wash Source: AC Nielsen, MAT March 2018 ^AC Nielsen, MAT December 2016 16
Navratna Product Portfolio Brand Snapshot Navratna Cool Oil - India’s No. 1 Therapeutic Cool Oil Penetration 16% (Cool Oils) levels 41% (Talcum Powder) Navratna Extra Thanda Cool Oil - With extra cooling effect those Endorsed by Amitabh Bachchan, consumers who prefer to have a stronger experience. Shahrukh Khan, Shilpa Shetty, Navratna Almond Cool Oil – Non sticky cool oil with benefits of Mahesh Babu, almond along with 9 Ayurvedic herbs. Chiranjeevi & Upendra Navratna Cool Talc – Talc with cooling properties. Navratna i- Cool Talc – With “Intelligent Sweat Sense Technology”, which not only gives cooling at the time of application but also gives a second burst of cooling when one sweats. 17
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