GODREJ CONSUMER PRODUCTS INVESTOR PRESENT INVESTOR PRESENTATION - - PowerPoint PPT Presentation

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GODREJ CONSUMER PRODUCTS INVESTOR PRESENT INVESTOR PRESENTATION - - PowerPoint PPT Presentation

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GODREJ CONSUMER PRODUCTS INVESTOR PRESENT INVESTOR PRESENTATION TION 1 GODREJ CONSUMER PRODUCTS SNAPSHOT GODREJ CONSUMER PRODUCTS SNAPSHOT largest home gr home grown HPC company own HPC company US $1.2 billion India leading market

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GODREJ CONSUMER PRODUCTS

INVESTOR PRESENT INVESTOR PRESENTATION TION

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2 leading market share in core categories

India business

hair colours household insecticides liquid detergents

1

soap

2

excellent track record of

trust

value creation

among FMCG companies in India

US $1.2 billion

largest home gr home grown HPC company

  • wn HPC company

in sales in FY 13

internationally

strong positions in cor in core categories e categories

home care hair care

acquisitions established a platform for a leading

emerging markets FMCG company

  • ver 45%

revenues come fr come from

  • m

inter international businesses national businesses

  • GODREJ CONSUMER PRODUCTS SNAPSHOT

GODREJ CONSUMER PRODUCTS SNAPSHOT

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WE HAVE DELIVERED ROBUST OPERATIONAL RESULTS OVER WE HAVE DELIVERED ROBUST OPERATIONAL RESULTS OVER THE LAST FEW YEARS THE LAST FEW YEARS

2,041 3,676 4,851 6,391 FY10 FY11 FY12 FY13

∆ 46% 46% ∆ 80% 80% ∆ 32% 32%

CONSOLIDATED NET SALES CONSOLIDATED EBITDA

∆ 32% 32% 411 653 876 1,015 FY10 FY11 FY12 FY13 ∆ 59% 59% ∆ 34% 34% ∆ 16% 16% ∆ 35% 35%

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Home Care 44% Hair Care 24% Personal Wash 21% Others 11%

WE HAVE A SCALE PRESENCE ACROSS WE HAVE A SCALE PRESENCE ACROSS MULTIPLE GEOGRAPHIES MULTIPLE GEOGRAPHIES WITH A BALANCED MIX OF CATEGORIES WITH A BALANCED MIX OF CATEGORIES

GEOGRAPHYWISE SALIENCE* CATEGORYWISE SALIENCE*

*FY13 Europe 5% Latin America 8% Africa 11% Indonesia 20% SAARC 1% India 55%

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WE HAVE LEADING MARKET POSITIONS IN MOST OF WE HAVE LEADING MARKET POSITIONS IN MOST OF OUR GEOGRAPHIES OUR GEOGRAPHIES

INDIA

hair colours household insecticides liquid detergents

1

soaps

2

SAARC

hair colours (Sri Lanka)

1 3

hair colours (Bangladesh) household insecticides (Sri Lanka & Bangladesh)

INDONESIA

air fresheners wet tissues

1

household insecticides

2

UK

stretch marks skin treatment

1

sanitisers

2 4

sun care female deodorants

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WE HAVE LEADING MARKET POSITIONS IN MOST OF WE HAVE LEADING MARKET POSITIONS IN MOST OF OUR GEOGRAPHIES OUR GEOGRAPHIES

LATIN AMERICA

hair colours* (Argentina, Uruguay, Paraguay, Bolivia)

1

hair colours & colour cosmetics (Chile)

2

SUB SAHARAN AFRICA

ethnic hair colours (14 countries) hair extensions (10 countries)

1 2 3

hair extensions (1 country) caucasian hair colours (South Africa) * Volume Share

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IN INDIA, WE HA IN INDIA, WE HAVE DELIVERED CONSISTENT VE DELIVERED CONSISTENT, HEAL , HEALTHY SALES THY SALES GROWTH GROWTH

INDIA NET SALES GROWTH (%)*

15% 13% FY12 FY13

EBITDA EBITDA + A&P GROWTH + A&P GROWTH

16% 16% 21% 21%

EBITDA GROWTH (%)

15% 18% 21% 20% FY12 FY13 India FMCG GCPL * Nielsen data for India FMCG growth

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THERE IS SIGNIFICANT HEADROOM FOR GROWTH IN HAIR THERE IS SIGNIFICANT HEADROOM FOR GROWTH IN HAIR COLOURS AND HOUSEHOLD INSECTICIDES COLOURS AND HOUSEHOLD INSECTICIDES

37% 44% 99% Hair colour/dye/ henna Insecticides Toilet soaps

PENETRATION - % OF HOUSEHOLDS

Source: Nielsen

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PAR ARTICULARL TICULARLY A LOT OF POTENTIAL TO INCREASE PENETRA Y A LOT OF POTENTIAL TO INCREASE PENETRATION TION IN RURAL FOR HAIR COLOURS AND HOUSEHOLD INSECTICIDES IN RURAL FOR HAIR COLOURS AND HOUSEHOLD INSECTICIDES

PENETRATION - % OF HOUSEHOLDS

Source: Nielsen

HAIR COLOURS HOUSEHOLD INSECTICIDES

60% 26% Urban Rural 77% 28% Urban Rural

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0.5 1.0 1.5 1.6 3.9

India China Indonesia Thailand Malaysia 0.3 0.2 0.2 1.1 1.1 India Indonesia China Malaysia Thailand

SIGNIFICANT UPSIDE IN DRIVING CONSUMPTION SIGNIFICANT UPSIDE IN DRIVING CONSUMPTION

CONSUMPTION / CAPITA (USD)

Source: Euromonitor, Nielsen

HAIR COLOURS HOUSEHOLD INSECTICIDES

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OUR HOUSEHOLD INSECTICIDES BUSINESS CONTINUES TO OUR HOUSEHOLD INSECTICIDES BUSINESS CONTINUES TO PERFORM WELL AHEAD OF THE MARKET PERFORM WELL AHEAD OF THE MARKET

VALUE GROWTH (%)*

10% 13% 31% 25% FY12 FY13 Category GCPL * Nielsen data for category growth

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OUR TOILET SOAPS BUSINESS TOO, OUTPERFORMED OUR TOILET SOAPS BUSINESS TOO, OUTPERFORMED THE MARKET THE MARKET

VALUE GROWTH (%)* VOLUME GROWTH (%)*

10% 20% 27% 26% FY12 FY13 Category GCPL

  • 2%

4% 15% 9% FY12 FY13 Category GCPL

* Nielsen data for category growth

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NEW INNOV NEW INNOVATIONS ARE DRIVING AHEAD OF THE CA TIONS ARE DRIVING AHEAD OF THE CATEGOR TEGORY Y GROWTH IN HAIR COLOURS GROWTH IN HAIR COLOURS

ANNUAL VALUE GROWTH (%)*

21% 19% 14% 14% FY12 FY13 Category GCPL

QUARTERLY VALUE GROWTH TREND (%)

* Nielsen data for category growth

5% 10% 17% 27% 32% Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14

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WE ARE AGGRESSIVELY BACKING OUR NEW LAUNCHES WE ARE AGGRESSIVELY BACKING OUR NEW LAUNCHES THAT WILL FURTHER STRENGTHEN OUR THAT WILL FURTHER STRENGTHEN OUR FUTURE GROWTH PLATFORM FUTURE GROWTH PLATFORM

17% 3% 20% Base NPD Overall 42% 18% 24% Base NPD Overall

INDIA NET SALES GROWTH (%) A & P GROWTH (%)

* FY13

Q1 FY14 - Over one third of our Net Sales Growth came from new product launches

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OUR INTERNATIONAL BUSINESS IS SCALING OUR INTERNATIONAL BUSINESS IS SCALING UP WELL UP WELL

INTERNATIONAL SALES BREAKUP* INTERNATIONAL NET SALES GROWTH (%)

* FY13 SAARC 3% Indonesia 43% Latin America 18% Africa 25% Middle east 1% Europe 10% 53% 49% FY12 FY13

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GROWTH IN OUR INTERNATIONAL PORTFOLIO HAS BEEN GROWTH IN OUR INTERNATIONAL PORTFOLIO HAS BEEN STRONG ACROSS GEOGRAPHIES STRONG ACROSS GEOGRAPHIES

Indonesia Indonesia

GEOGRAPHIES GEOGRAPHIES KEY BRANDS KEY BRANDS

Latin Latin America America Africa Africa Europe Europe

FY 12 FY 12 GROWTH* GROWTH* FY 13 FY 13 GROWTH* GROWTH*

29% 29% 19% 19% 22% 22% 84% 84% 11% 11% 26% 26% 68% 68% *Constant currency sales growth

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INDONESIA AND AFRICA CONTINUE TO BE THE INDONESIA AND AFRICA CONTINUE TO BE THE LEAD GROWTH DRIVERS LEAD GROWTH DRIVERS

FY 13 SALES GROWTH (%) * FY 13 EBITDA MARGIN (%)

35% 68% 84% 41% Indonesia Africa Latam UK 19%* 16% 5% 11% Indonesia Africa Latam UK

*Sales growth in INR. *Indonesia EBITDA margin is before payment of technical & business support fee

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WE ARE ACTIVEL WE ARE ACTIVELY CROSS POLLINA Y CROSS POLLINATING THE POR TING THE PORTFOLIO TFOLIO

Hair Colour Hair Colour Household Household Insecticides Insecticides Air Air Fresheners Fresheners

INDIA INDIA SOUTH AFRICA SOUTH AFRICA

Hair colour creme in sachet (Argentina) Renew hair colour (India) Goodknight coils & aerosols (India) Evaluating Hit Magic, paper based mosquito repellent (Indonesia) Aer air fresheners (Indonesia)

INDIA INDIA NIGERIA NIGERIA INDIA INDIA

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WE CONTINUE TO FOCUS ON INTEGRA WE CONTINUE TO FOCUS ON INTEGRATING OUR TING OUR ACQUISITIONS ACQUISITIONS

Successful integration of inter Successful integration of international businesses national businesses in the Godr in the Godrej way ej way, maintaining the right balance between localization and creating the right Godrej culture Implemented one performance and

  • ne performance and

rewar ewards pr ds programme

  • gramme across the globe

Str Strong Contr

  • ng Controls & IT infrastructur
  • ls & IT infrastructure

e India best practices being incorporated in the

  • perations processes. SAP Implementation

underway ¡ Disciplined M&A appr Disciplined M&A approach based on 3 by 3

  • ach based on 3 by 3

focus on emerging markets in Asia, Africa and Latin America in 3 core categories Inter International Centr national Centre dedicated expertise in product supply chain, R&D, marketing, finance and human capital Investing in Investing in training and and development

  • f talent
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OUR INNOV OUR INNOVATION PIPELINE CONTINUES TO REMAIN ROBUST TION PIPELINE CONTINUES TO REMAIN ROBUST

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WE HA WE HAVE SIX KEY PRIORITES VE SIX KEY PRIORITES

Core category Core category leadership leadership International International growth growth Innovation and Innovation and renovation renovation Future ready Future ready sales system sales system Best in class Best in class supply chain supply chain Agility and high Agility and high performance performance culture culture

2 3 1 5 6 4

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22 470 490 563 700 952 1,103 1,393 2,041 3,676 4,851 6,391 82 88 107 150 182 219 211 411 653 876 1,015 17.4 18.1 19.0 21.4 19.2 19.8 15.1 20.1 17.8 18.1 15.9

FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY13

Percentage (%) ` Crore

Net Sales EBITDA EBITDA Margin Note: Values in ` Crore

Sales CAGR: 30% EBITDA CAGR: 29%

WE REMAIN COMMITTED TO DELIVERING CONSISTENTL WE REMAIN COMMITTED TO DELIVERING CONSISTENTLY STRONG PERFORMANCE STRONG PERFORMANCE

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23 NET DEBT TO EQUITY RATIO IMPROVEMENT IN WORKING CAPITAL DAYS 0.96 0.43 0.48

FY11 FY12 FY13

25 23

FY12 FY13 Note: NWC without Cash and Bank balances improves by ~ ` 40 Crore on organic businesses

OUR BALANCE SHEET IS ALSO HEAL OUR BALANCE SHEET IS ALSO HEALTHY AND IS IMPROVING THY AND IS IMPROVING

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Q1FY14 Snapshot Q1FY14 Snapshot

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BUSINESS SNAPSHOT BUSINESS SNAPSHOT

Ahead of the category performance in all three categories Improving product mix and lower palm oil prices is driving gross margin benefits New launches witnessing good success and driving penetration in relatively underpenetrated categories

DOMESTIC BUSINESS CONTINUES TO DOMESTIC BUSINESS CONTINUES TO DELIVER STRONG PERFORMANCE DELIVER STRONG PERFORMANCE

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BUSINESS SNAPSHOT BUSINESS SNAPSHOT

Indonesia business continues to deliver robust growth rates while expanding market leadership Africa business - new product rollouts such as household insecticides, wet hair care product to leverage existing distribution capabilities Margin improvement projects in Latin America underway; business holding up market share amidst tough competition

INTERNATIONAL BUSINESS CONTINUES INTERNATIONAL BUSINESS CONTINUES TO SCALE UP TO SCALE UP

UK business gains extra scale after acquisition of S&G while continuing to witness healthy organic growth rates

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BUSINESS SNAPSHOT BUSINESS SNAPSHOT

Weakening macro environment in a few of our operating countries Currency volatility – Indian Rupee, South African Rand, Argentinian Peso, Indonesian Rupiah Rising inflation – fuel costs, employee costs, etc.

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1,389 Q1 FY13 Q1 FY14 Net Sales *Net profit w/o exceptional items and one time tax reversal All ¡values ¡` cr ¡

HEAL HEALTHY Q1FY14 OPERA THY Q1FY14 OPERATING PERFORMANCE TING PERFORMANCE

∆ 24%

202 225 Q1 FY13 Q1 FY14 EBITDA 122 130 Q1 FY13 Q1 FY14 Net Profit *

∆ 11% ∆ 7%

  • Consolidated business at constant currency grows

27%

  • Consolidated organic business at constant currency

grows 19%

  • Consolidated EBITDA + A&P grows 30%
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DOMESTIC SALES GROWTH MOMENTUM INTENSIFIED IN DOMESTIC SALES GROWTH MOMENTUM INTENSIFIED IN Q1FY14 Q1FY14

32% 24% 13% Hair colours Household Insecticides Soaps

India business gross sales growth (%)

  • India business branded sales growth of 21% driven by ahead of the category

performance for all core categories

  • Domestic EBITDA + A&P spends grew +37%
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INTERNA INTERNATIONAL BUSINESSES CONTINUES TO TIONAL BUSINESSES CONTINUES TO SCALE UP SCALE UP

319 214 130 115

Indonesia Africa Latin America Europe

Net Sales Growth (%) Constant currency + 21 + 58 + 31 + 59 Exchange (4) (9) (10)

  • YOY Reported + 17

+ 49 + 21 + 59

International organic business at constant currency grows 19% in Q1FY14

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FOR FORWARD OPPOR ARD OPPORTUNITIES TUNITIES

Drive penetration and consumption in core categories Expand into adjacencies under three core categories Drive margin improvement through cost saving initiatives and better product mix Drive margins through scale up of international business Cross pollination initiatives to harness distribution and product technology strengths Domestic Domestic Business Business International International Business Business

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As on 28th Jun 2013

Major FII’s

STOCKHOLDING P STOCKHOLDING PATTERN TTERN

Promoter, 63% FII, 28% DII, 1% Retail, 7%

Aberdeen Temasek Arisaig ADIA Vanguard Blackrock First State GIC Invesco UBS Others

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P Ganesh CFO p.ganesh@godrejcp.com D +91 22 2519 4313 Sameer Shah Associate Vice President - Finance & Investor Relations sa.shah@godrejcp.com D +91 22 2519 4467 for more details please visit :-

  • CONT

CONTACT US @ ACT US @

http://www.godrejcp.com

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34 THANK YOU FOR YOUR TIME AND CONSIDERATION