Dabur India Limited · NSE:DABUR
Dabur India — ICICI Securities 14th Annual Investor Conference - India Unlimited 2016
30 slides from Dabur India's conference presentation, February 2016
Slide 1: Dabur India Ltd Investor Presentation
Dabur India Ltd Investor Presentation i February 2016
Slide 2: FMCG Overview
FMCG Overview Fourth largest sector in the economy Current size of the Indian FMCG Market is around USD 45 bn Grown at an annual average of 11 per cent over the last decade * Urban segment is the largest contributor to the sector- accounting for two-thirds of total revenue Sector is likely to touch
Slide 3: FMCG Growth Drivers
FMCG Growth Drivers Rising Income driving Purchases Growth of Modern Trade & E Commerce Low Penetration & Consumption Evolving consumer lifestyle Favorable demographics 2
Slide 4: Dabur – An Overview
Dabur – An Overview One of the oldest and largest FMCG Companies in the country World’s largest in Ayurveda and natural healthcare Total reach of 5.3mn outlets, one of the highest among FMCG companies 20 world class manufacturing facilities catering to needs of diverse markets Strong overseas presen
Slide 5: Dabur & Ayurveda
Dabur & Ayurveda Synonymous with Ayurveda since 130yrs _ y AYU RVE DA: DABUR’S The No. 1 Ayurvedic Brandin 50 countries y co RE PHILOSOPHY Stringent quality test of every ingredient ae and herb y Team of world’s best Ayurvedic Doctors & l Experts Over 4000 acres of farms to protect the close to exti
Slide 6: Health and Well-Being
Health and Well Well-Being Being Health & Well being - The underlying theme across the portfolio Dabur Baby Massage Oil Focus on Ayurvedic Innovations in Dabur Honey OTC- No.1 in Women Healthcare Free of paraffin and Weight Management parabens -Safe for babies p Health Tonics Category g y 5
Slide 7: Health and Well-Being
Health and Well Well-Being Being Health & Well Being focus has been extended to HPC and Foods Red Tooth Paste- Focused on Ingredient Effectiveness Recentlyy introduced the ‘Real Wellnezz” range with the Jamun flavour Odomos Protection from Dengue Activ Sanifresh- Toilet Cleaner To safeguard the heal
Slide 8: Distribution Framework
Distribution Framework Factory Factory C&F C&F GT Sockist S ki t MT STockist ST ki t I ti Stockist Insti St ki t S Super S ki t Sockist Wholesaler Sub Sockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer 7
Slide 9: Key Milestones
Key Milestones • Established by Dr SK Burman in Kolkata 1884 • Came out with first public issue 1994 • Inducted professional management 1998 • Crossed the 1000 crs turnover mark 2000 • Dabur acquired Balsara 2005 • Acquired Fem Pharma 2008 • Acquired Hobi and Namaste 2010 • Dabur crosses billion dol
Slide 10: Global Business Footprint
Global Business Footprint Dabur has 12 domestic facilities, the key locations being Badd ( Himachal Pradesh) & = Key markets “ty” Pantneger (Uttaranchal) + Manufacturing Facilities
Slide 11: Dabur Performance Snapshot
Dabur Performance Snapshot in INR bn in INR bn 78 1 78.1 10.7 70 7 70.7 91 9.1 61.5 7.6 52.8 5.7 6.4 40.8 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Dabur has had a strong & PAT growth trajectory on the back of a robust business model 10
Slide 12: Strong Financial Profile
Strong Financial Profile ROIC Net Worth (INR Bn) 43 6% 43.6% 45 2% 45.2% 33.5 38.3% 32.7% 34.0% 26.6 21.0 17.2 13 9 13.9 FY11 11 FY12 12 FY13 13 FY14 1 FY15 1 FY11 11 FY12 12 FY13 13 FY14 1 FY15 1 *EBITDA Margin g EPS 61 6.1 20.4% 5.2 18.9% 4.4 17.9% 17.8% 18.2% 3.7 3.3 FY11 FY12 FY13 FY14 FY15 FY11
Slide 13: Business Structure
Business Structure Domestic FMCG (66%) Domestic (69%) Oth Others (3%) Dabur India Organic Ltd. Ltd International (22%) International Namaste Labs (31%) (6%) Hobi Group (3%) * Others include Retail, Commodity exports etc Note: % figure in brackets indicate % share in Consolidated Sales for FY15 12
Slide 14: Sales By Business Vertical
Sales By Business Vertical Healthcare Healthcare HPC Foods Health (33%) Supplemen ts Foods 18% Domestic Skin Care 19% Digestives HPC(48%) 5% FMCG* 6% OTC & Oral Care Hair Care Ethicals 14% 23% 9% Foods(19%) Home Care 6% Europe Middle East 12% 32% International Business America Region Wise Breakdown
Slide 15: India Business Strategy
India Business Strategy Home & Healthcare Foods Personal Care Leveraging g g the Increasing Premiumization Fruit equity Doctor & Differentiation associated with Advocacy the ‘Real’ brand Thrust on Strong Focus on building the innovation Healthy range OTC portfolio pipeline of products 14
Slide 16: Increasing Doctor Advocacy
Increasing Doctor Advocacy Project j LEAD: Leveraging g g Through g Empowered Anchoring g & Detailing g • Front end teams to be separated for Healthcare (OTC & Doctor Advocacy is the key Ethicals)) and the rest of the Domestic FMCG business to to enhance consumer have focused attention on both segme
Slide 17: Continue to build bigger brands
Continue to build bigger brands 16 14 brands with turnover of INR 1bn+ with 3 brands over 10bn
Slide 18: Competitive Position
Competitive Position We continue to lead across verticals- Healthcare , HPC and Foods #Relative Competitive Position #1 #1 #2 #2 #2 #1 # #1 #2 #3 #1 #1 Home and Personal Care Foods Healthcare 17 * Position basis Nielsen Market Share data MAT Dec’15
Slide 19: Product Innovation
Product Innovation India Fem Diamond Sanifresh Ratnaprash Sugarfree Gulabari Facewash Bleach Germguard International Vatika Enriched Hair Herbal Olive Enamel Dermoviva Bodywash Range Oil- Oil Gerghir Care Toothpaste 18
Slide 20: Distribution Expansion
Distribution Expansion • Rolled out in FY13 to expand direct coverage in rural markets • Direct Village coverage has increased from 14000 villages in FY11 to Project Double 44,000 villages in FY15 • Focus on increasing efficiency and productivity of the channel • Aimed at leveraging the potential of
Slide 21: International Business Overview
International Business Overview In INR Mn 23108 24226 Key Markets Middle South Africa 18338 East Asia 16161 8992 Key Hair Skin Oral Categories Care Care Care FY11 FY12 FY13 FY14 FY15 International Sales FY15 •Comprises 31% of Consolidated Sales in FY15 Europe 12% •Localized supply chain network for
Slide 22: International Competitive Position
International Competitive Position International-Competitive 44.1% 36 5% 36.5% 36 6% 36.6% No.1 Position in the Hair H i Cream* Hair C * Cream Category in KSA,UAE and Egypt KSA UAE Egypt 64.8 67.3 % 27.5 % No.1 Position in the Hair Oils Hair Oils* Oils % C t Category iin KSA & E Egyptt andd No.2 in
Slide 23: Region Wise Strategy
Region Wise Strategy Middle Africa Asia America Europe East Leveraging Increase share Increase product Increase of Ethnic Hair product width p technology gy and Cross pollinate to penetration in Care by scaling and penetration consumer grow the Turkish Hair Care and Export sales up in neighboring in
Slide 24: Financial Highlights 9MFY16
Financial Highlights 9MFY16 Growth 7 1% 7.1% 16 9% 16.9% 17 9% 17.9% Sales EBITDA PAT Rs. 6278.6 crs Rs. 1267.3 crs Rs. 920.8 crs 23
Slide 25: Margin Profile 9MFY16
Margin Profile 9MFY16 55.1% 14.7% 20.2% 52% 13.3% 18.5% Q3FY15 Q3FY16 Q2FY15 Q2FY16 Q2FY15 Q2FY16 Gross Margin EBITDA Margin g PAT Margin g p 308bps p 169bps 134bps 24
Slide 26: Sustainability: A Key Focus
Sustainability: A Key Focus Dabur is committed to being a responsible company and making a positive contribution to Society and Environment 1,141 acres under 2 028 beneficiary 2,028 b fi i 9,13,750 school cultivation for rare kids benefitting from families of our Self – medicinal herbs in our Health
Slide 27: Share Price Performance, Dividends and Shareholding
Share Price Performance, Dividends and Shareholding Share Holding Pattern As on 31st December 2015 Market Capitalization Others DII 6% in INR bn 5% FII 466.5 20% 313.1 238.9 167.2 185.4 Promoters P t 68% FY11 FY12 FY13 FY14 FY15 Dividend History History* 250% 250% 200% 200% 200% 175% 175% 175% 140%
Slide 28: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L in Rs. million Q3FY16 Q3FY15 YoY (%) 9M FY16 9M FY15 YoY (%) Net Sales 21,224 20,736 2.4% 62,786 58,616 7.1% Other Operating Income 46 55 141 159 Material Cost 9,232 9,881 ‐6.6% 28,207 28,141 0.2% % of Sales 43.5% 47.7% 44.9% 48.0% Employee Costs 2,028 1,778 1
Slide 29: Statement of Assets and Liabilities
Statement of Assets and Liabilities in Rs. million As at 31/03/2015) As at 31/03/2014) Â EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1756.5 1743.8 (b) Reserves and surplus 31784.99 31784 24815.88 24815 Sub-total - Shareholders' funds 33541.4 26559.6 2. Minority interest 181.6 159.
Slide 30: Thank You
Th k Y Thank You
Dabur India — ICICI Securities 14th Annual Investor Conference - India Unlimited 2016 on 6ix