INVESTOR PRESENTATION SEPTEMBER 2017 DABUR OVERVIEW One of the - - PDF document

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INVESTOR PRESENTATION SEPTEMBER 2017 DABUR OVERVIEW One of the - - PDF document

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INVESTOR PRESENTATION SEPTEMBER 2017 DABUR OVERVIEW One of the oldest and largest FMCG Companies in the country Worlds largest in Ayurveda and natural healthcare Total reach of 6 mn outlets, one of the highest among FMCG companies

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SLIDE 1

INVESTOR PRESENTATION SEPTEMBER 2017

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SLIDE 2

DABUR OVERVIEW

One of the oldest and largest FMCG Companies in the country World’s largest in Ayurveda and natural healthcare Total reach of 6 mn outlets, one of the highest among FMCG companies Nineteen world class manufacturing facilities catering to needs of diverse markets Strong overseas presence with 30% contribution to consolidated sales

1.

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SLIDE 3

STRONG FINANCIAL PROFILE

In INR Bn

2. 61.5 70.7 78.1 78.5 76.8 FY13 FY14 FY15 FY16 FY17

Sales

7.6 9.1 10.7 12.5 12.8 12.4% 12.9% 13.7% 15.9% 16.6%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

  • 1.0

1.0 3.0 5.0 7.0 9.0 11.0 13.0

FY13 FY14 FY15 FY16 FY17

Profit After Tax (PAT)

PAT PAT margin (%)

FY16 and FY17 are basis IND AS

10.0 11.6 13.2 15.1 15.2 16.3% 16.3% 16.9% 19.2% 19.8%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0

FY13 FY14 FY15 FY16 FY17

Operating Profit

Operating Profit Operating margin (%)

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SLIDE 4

STRONG FINANCIAL PROFILE

3.

21.0 26.6 33.5 41.7 48.5 FY13 FY14 FY15 FY16 FY17

Shareholders' Funds

4.4 5.2 6.1 7.1 7.2 FY13 FY14 FY15 FY16 FY17

Earnings Per Share

38.3% 43.6% 45.2% 53.0% 47.9% FY13 FY14 FY15 FY16 FY17

ROIC

FY16 and FY17 are basis IND AS

In INR Bn In INR

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SLIDE 5

MANUFACTURING FACILITIES

Nepal Bangla desh Sri Lanka Turkey Nigeria Egypt UAE

Seven International Manufacturing Locations

Baddi, Himachal Pradesh Pantnagar, Uttaranchal Sahibabad, Uttar Pradesh Jammu, J&K

Silvasa,Dadra & NagarHaveli

Alwar, Rajasthan Katni, Madhya Pradesh Narendrapur,West Bengal

Pithampur, Madhya Pradesh

Newai, Rajasthan Nasik, Maharashtra

4.

Tezpur, Assam

Twelve Domestic Manufacturing Locations in India

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SLIDE 6

TEZPUR PLANT

  • New manufacturing facility commissioned in Tezpur, Assam in March’17.
  • Investment of Rs 250 Crore
  • Largest production facility for Dabur across the globe
  • Will manufacture entire range of Dabur's Ayurvedic Medicines, Health Supplements, Hair

Oils, Shampoos, Toothpastes, Skin Care and Home Care products

  • Spread over 30 acres of land, this factory features fully automated processing lines and

automated packing lines to optimize supply chain and quality management with special focus on environment and sustainability

5.

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SLIDE 7

DISTRIBUTION NETWORK

Factory C&F Retailer Retailer Consumer Consumer

Wholesaler Insti Stockist

Consumer

Super Sockist Sub Sockist Retailer Consumer

Distribution reach of 6 mn retail outlets; Cover over 45000 villages directly

6.

URBAN RURAL

GT Stockist

MT Stockist

Factory C&F

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SLIDE 8

DISTRIBUTION INITIATIVES

Focus on enhancing field efficiencies

  • Inducted around 1000 Village salesmen on

company rolls

  • Increase the outlet coverage per SSM

Increasing Direct Reach

  • Near term target to increase direct reach to 1 mn
  • utlets

Product Focus

  • Rural Focused Product Mix
  • Innovative launches in Urban

Capability enhancement through training and IT enablement Focus on alternative channels- Increased role of Modern Trade, Cash & Carry and E Commerce

7.

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SLIDE 9

WHAT IS AYURVEDA?

“

Ayurveda is the traditional system of healthcare which promotes PREVENTION and CURE

  • Ayurveda is based upon Natural Remedies which

incorporate the healing properties of plants and herbs.

  • It is a holistic system which heals by activating

the natural inherent curative force of the body

8.

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SLIDE 10

DABUR & AYURVEDA

9.

Dabur has created the Ayurveda eco system over many decades involving R&D, medical fraternity, hospitals, patients along with manufacturing and selling the entire product range of Classical Ayurveda

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SLIDE 11

CLAIM BASED COMMUNICATION

Double immunity 2X faster physical growth Clinically proven formula Stay fit, feel young Clinically proven formula

10.

Dabur focuses on evidence based claims for its products

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SLIDE 12

PROMOTING AYURVEDA: DOCTOR REACH

Connecting Engaging Collaborating Promoting

Directly reaching

32000+

Doctors

  • Detailing and

Product sampling

Association with 50 + Ayurvedic Colleges Key Opnion Leaders www.dabur mediclub.com 11.

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SLIDE 13

DABUR BUSINESS STRUCTURE

Dabur India Ltd.

Domestic (70%) Domestic FMCG (66%) Others (4%) International (30%)

Note: % figure in brackets indicate % share in Consolidated Sales for FY17

* Others include Retail, Commodity exports etc

12.

Organic (69%) Acquired (31%)

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SLIDE 14

INDIA BUSINESS

13.

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SLIDE 15

SALES BY BUSINESS VERTICAL

Domestic FMCG* Healthcare (31%) HPC (50%) Foods (19%)

Domestic FMCG* Business Breakdown

* Breakdown of Domestic FMCG business basis FY17 Sales

14.

Health Supplements 17% Digestives 5% OTC& Ethicals 9% Hair Care 22% Oral Care 16% Home Care 7% Skin & Salon 5% Foods 19%

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SLIDE 16

MARKET LEADER IN 6 CATEGORIES

* Position basis Nielsen Market Share data MAT Mar’17

#Relative Competitive Position

#1 #1 #2 #2 #2 #1 #1 #2 #3 #1 #1

Healthcare Home and Personal Care Foods

15.

Leading position in key categories across verticals

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SLIDE 17

BUSINESS STRATEGY

  • Leadership in Ayurveda – scientific evidence & research
  • OTC portfolio to be scaled up through innovation & awareness creation
  • Doctor advocacy through Medico Marketing channel

Healthcare

  • Ayurvedic / Herbal focus
  • Premiumization & Differentiation
  • Strong innovation agenda

Home & Personal Care

  • Maintain leadership in Juices & Nectars category
  • Leveraging the Fruit equity associated with the ‘Real’ brand
  • Focus on ‘Healthy’ range of products

Foods

16.

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FOCUS ON INNOVATIONS

17.

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SLIDE 19

CONTINUE TO BUILD BIGGER BRANDS

16 brands with turnover of INR 1bn+ with 3 brands over 10bn

18.

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MOST TRUSTED BRANDS

  • Dabur Red Paste and Dabur Hajmola – have been

ranked amongst the biggest gainers in the latest Brand Equity Most Trusted Brands List

  • Dabur Red Paste moved up 66 places and was ranked

34 in the Brand Equity Most Trusted Brands 2016 list, released by The Economic Times, up from its ranking of 100 in the previous year

  • In the Oral Care category list, Dabur Red Paste took

the third place, a gain of one rank from the previous

  • year. The year 2016 had seen Dabur Red Paste also

break into the Top 3 in the market, becoming the third largest toothpaste brand in the country.

  • Hajmola gained 38 places and was ranked 85 in the list.

The brand was also ranked in the Top 5 in the OTC category for 2016

19.

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SLIDE 21

INTERNATIONAL BUSINESS

20.

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SLIDE 22

BUSINESS OVERVIEW

  • Saudi Arabia, UAE

Middle East

  • Egypt, Nigeria, Kenya, South

Africa

Africa

  • Turkey, UK

Europe

  • Nepal, Bangladesh, Pakistan

Asia

  • USA

America

In INR Mn 21.

Middle East 31% Africa 20% Asia 19% Europe 13% Americas 17%

Regionwise Sales:FY 2016-17

18338 23108 24226 24520 23199 FY13 FY14 FY15 FY16 FY17

FY16 and FY17 are basis IND AS

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SLIDE 23

THE JOURNEY…

2002 2003-2006 2007-10 2011-2014 2015-2018

  • Trading Model

through a franchisee

  • Hair Oil was

mainstay

  • No localization
  • Franchisee bought
  • ut and renamed

Dabur International

  • Portfolio expansion

beyond Hair Oils

  • Focus on building

demand

  • Entry into Personal

Care segments

  • Manufacturing

locations expanded

  • Systems and

processes implemented

  • Hobi and Namaste

acquired which led to geographic expansion

  • Innovative product
  • fferings
  • Management

bandwidth expanded

  • Enter into African

Markets

  • Expand portfolio
  • Cross pollinate

ideas and leanings from different units

22.

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ORGANIC INTERNATIONAL BUSINESS

Hair Oil 93% Oral Care 2% Others 5%

The Organic International Business has evolved from being just a Hair Oil business to a diversified personal care entity

23.

Hair Oil 37% Hair Cream 12% Shampoo 14% Hamamzaith & Styling 12% Oral Care 12% Skincare 8% Others 5%

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SLIDE 25

RECENT INNOVATIONS - IBD

24.

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SLIDE 26

IBD : BUSINESS STRATEGY

Capitalize on the “Herbal Wave” trend Focus on Core Categories like Hair Care, Oral Care and Skin Care Leveraging Digital platform to enhance consumer awareness and brand visibility Optimize Advertising spends and capture better efficiencies Continued focus on brand innovation and renovation

25.

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SLIDE 27
  • Sales for FY17 declined by 2.2% and stood at Rs.76.8 bn. However, Sales were flattish in

constant currency terms

  • PAT increased by 2.1% and stood at Rs.12.77 bn.
  • Operating margin increased from 19.3% in FY16 to 19.6% in FY17
  • Domestic business was impacted because of trade disruption and pipeline correction

during demonetisation

  • International business faced headwinds because of geo political disturbance in the Middle

East and currency volatility in Egypt, Nigeria and Turkey

26.

78507 76801 FY16 FY17 12511 12770 FY16 FY17

Sales PAT

In INR Mn

CONSOLIDATED PERFORMANCE : FY17

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GST IMPACT

  • Netting of GST from sales will reduce topline by around 5%
  • No material impact on bottomline as net effect of GST is more or less neutral
  • GST roll off has been smooth with all direct channel partners coming on

board

  • Wholesale trade yet to come back to normalcy; however other channels

such as Cash & Carry, Modern Trade, E commerce and Super-Sub networks have picked up

  • Trade de-stocking preceding the GST implementation hurt sales in Q1FY18
  • However longer term GST should be positive for the sector with increasing

compliance and streamlining of logistics and supply chain.

27.

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SUSTAINABILITY: A KEY FOCUS

2537

farmers/beneficiaries

  • f our Agronomical

initiatives in India

9.3 lakh

saplings of rare herbs distributed free of cost to farmers

2374 students

benefited from School Support Programmes

393

Women gained literacy at our Adult literacy centres

1253 Household

toilets constructed

510 women trained

at our vocational training centers

28.

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SHAREHOLDING, M CAP AND DIVIDEND

29. 175% 150% 175% 200% 115% 130% 150% 175% 200% 225% 225% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17

Dividend History

FIIs, 17.5% DIs, 8.9% Retail , 5.6% Promoters, 68.1% 439 488 546 Mar'16 Mar'17 Aug'17

Market Cap

In INR Bn

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SLIDE 31

CONSOLIDATED P&L : FY2016-17

In INR Mn

Note: IND AS implemented w.e.f 1St April, 2016 30. DIL (Consolidated) P&L FY17 FY16 YoY (%)

Net Sales 76,801 78,507

  • 2.20%

Other Operating Income 214 180 18.40% Material Cost 38,432 38,496

  • 0.20%

% of Sales 50.0% 49.0% Employee Expense 7,896 7,941

  • 0.60%

% of Sales 10.3% 10.1% Advertising & Publicity 6,461 7,716

  • 16.30%

% of Sales 8.4% 9.8% Other Expenses 9,135 9,352

  • 2.30%

% of Sales 11.9% 11.9% Operating Profit 15,089 15,183

  • 0.60%

% of Sales 19.6% 19.3% Other Non Operating Income 2,983 2,172 37.40% EBITDA 18,073 17,355 4.10% % of Sales 23.5% 22.1% Finance Costs 540 485 11.40% Depreciation & Amortization 1,429 1,332 7.30% Profit Before Tax (PBT) 16,104 15,538 3.60% Tax Expenses 3,303 2,999 10.10% PAT 12,801 12,539 2.10% Minority Interest - Profit/(Loss) 34 27 Share of profit / (loss) of associates & joint venture 3

PAT (After Minority Int) 12,770 12,511 2.10% % of Sales 16.6% 15.9%

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STATEMENT OF ASSETS AND LIABILITIES

31.

In INR Mn

Particulars 31.3.2017 31.3.2016 ASSETS Non-current assets (a) Property, plant and equipment 14,790 12,388 (b) Capital work-in-progress 421 448 (c) Investment property 550 606 (d) Goodwill 4,105 4,105 (e) Other Intangible assets 139 181 (f) Financial assets (i) Investments 24,994 18,809 (ii) Others 124 132 (g) Other non-current assets 1,023 498 Total Non-current assets 46,146 37,166 Current assets (a) Inventories 11,067 10,965 (b) Financial assets (i) Investments 7,408 7,492 (ii) Trade receivables 6,504 8,092 (iii) Cash and cash equivalents 1,632 1,312 (iv) Bank Balances other than (iii) above 1,416 887 (v) Others 341 291 (c) Current Tax Asset(Net) 31 (c) Other current assets 2,797 3,088 Total current assets 31,165 32,157 TOTAL ASSETS 77,310 69,323 EQUITY AND LIABILITIES (a) Equity share capital 1,762 1,759 (b) Other Equity 46,712 39,947 Equity attributable to shareholders of the Company 48,474 41,706 Non Controlling Interest 248 217 Total equity 48,722 41,923 Non-current liabilities (a) Financial liabilities (i) Borrowings 4,712 3,424 (ii) Other financial liabilities 37 50 (b) Provisions 534 509 (c) Deferred tax liabilities (Net) 1,080 882 Total Non-current liabilities 6,364 4,865 Current liabilities (a) Financial liabilities (i) Borrowings 4,403 4,497 (ii) Trade payables 13,027 13,301 (iii) Other financial liabilities 1,737 1,203 (b) Other current liabilities 1,754 2,317 (c) Provisions 919 905 (d) Current tax Liabilities (Net) 385 310 Total Current liabilities 22,225 22,535 TOTAL EQUITY AND LIABILITIES 77,310 69,323

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SLIDE 33

Thank You

For any queries and feedback please contact : investors@mail.dabur