Dabur India Limited · NSE:DABUR
Dabur India — Morgan Stanley's Sixteenth Annual Asia Pacific Summit 2017
42 slides from Dabur India's conference presentation, November 2017
Slide 1: Investor Presentation
Investor Presentation November 2017
Slide 2: Contents
Contents Ayurveda – Science of Life Dabur – Overview Business Structure India Business International Business The next growth wave Annexure 2
Slide 3: Ayurveda – Science of Life
Ayurveda – Science of Life What is Ayurveda? Salient features of Ayurveda Heals by activating the natural inherent 1 curative force of the body Believes in complete cure and not only control of 2 signs and symptoms “Ayur” + “Veda” = Science of Life Gives more stress on why is the problem rather 3 th
Slide 4: Growing preference for Herbal/Ayurvedic products
Growing preference for Herbal/Ayurvedic products Growth drivers Growing emphasis on natural regimes and desire 1 for holistic lifestyles Consumers 2 Increasing health awareness are going herbal 3 ‘Back to roots’ : tradition / heritage gaining ground 4 Concern about chemicals Consumers are gravitatin
Slide 5: Dabur & Ayurveda
Dabur & Ayurveda Ayurveda = Dabur’s Core Philosophy Synonymous with Ayurveda since 133 years Known for making Ayurveda accessible to every household in India Anchored by Heritage Stringent quality test of every ingredient and herb Propelled by Science Strong R&D infrastructure including in-house Ayu
Slide 6: Contents
Contents Ayurveda – Science of Life Dabur – Overview Business Structure India Business International Business The next growth wave Annexure 6
Slide 7: Dabur – Overview
Dabur – Overview Overview Awards Established in 1884 – 133 years of trust and excellence Dabur Vatika #BraveandBeautiful campaign wins 2 Effies One of the world’s largest in Ayurveda and natural healthcare Dabur moves up 4 Places in Fortune India 500 List; ranked 163 in the list for Having one of th
Slide 8: Key milestones
Key milestones Foods business Established by Dr. S.K. Acquired Balsara crossed INR 10.0 bn Burman in Kolkata turnover mark Inducted professional Acquired Hobi and management Namaste 1884 1994 1998 2000 2005 2008 2010 2012 2016 2017 Crossed the INR 10.0 Crossed the USD 1 bn bn turnover mark turnover
Slide 9: Strong financial profile (1/2)
Strong financial profile (1/2) Sales Revenue declined due to: • Shift to the new Indian Accounting Standards (IndAS) led to the restatement of financials 84.4 61.5 78.1 76.8 • Demonetisation led to reduced consumer demand for 70.7 few months • Currency devaluation in overseas markets FY13 FY14 FY15
Slide 10: Strong financial profile (2/2)
Strong financial profile (2/2) Operating Profit Return on Invested Capital (ROIC) Operating Profit Operating Profit margin (%) 52.50% 19.80% 47.90% 43.60% 45.20% 16.30% 16.30% 16.90% 17.80% 38.30% High upfront capex towards new 13.2 15.2 14.9 greenfield facility in 10.0 11.6 Assam FY13 FY14 FY15 FY1
Slide 11: Manufacturing facilities
Manufacturing facilities 12 manufacturing locations in India 7 international manufacturing locations UAE Baddi Jammu Sahibabad Egypt ` Alwar Pantnagar Tezpur Newai Nigeria Katni Turkey Narendrapur Silvasa Sri Lanka Nasik Pithampur Bangladesh Nepal 11
Slide 12: Distribution network
Distribution network Urban Rural Factory Factory C&F C&F Super GT Stockist MT Stockist Insti Stockist Stockist Wholesaler Sub Stockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer Distribution reach of 6 mn retail outlets; Cover over 40,000 villages directly 12
Slide 13: Contents
Contents Ayurveda – Science of Life Dabur – Overview Business Structure India Business International Business The next growth wave Annexure 13
Slide 14: Business structure
Business structure Dabur India Ltd Domestic International (70%) (30%) Domestic Others Organic Acquired FMCG (4%) (69%) (31%) (66%) Note: Figures in brackets are based on FY17 revenue 14
Slide 15: Contents
Contents Ayurveda – Science of Life Dabur – Overview Business Structure India Business International Business The next growth wave Annexure 15
Slide 16: Sales by Business Vertical
Sales by Business Vertical Domestic FMCG – Business Verticals1 Key categories Revenue Category Contribution Key Brands Domestic FMCG (FY17) Hair Care 22% Healthcare (31%) Foods 19% HPC Health 17% (50%) Supplements Oral Care 16% Foods (19%) OTC & Ethicals 9% Others 17% 1. Based on FY17 Revenue 16
Slide 17: Market leader in 6 categories
Market leader in 6 categories Leading position in key categories across verticals #Relative Competitive Position1 #1 #1 #2 #2 #2 #3 #1 #2 #1 #1 #1 Honey Chyawanprash Baby Glucose Hair Oils Oral Care Skin Toilet Cleaners Air Mosquito Juices Massage Care - Fresheners Repellant Oil Bleaches Creams Heal
Slide 18: Continue to build bigger brands
Continue to build bigger brands 10 bn+ 1 bn+ 16 brands with turnover of INR 1bn+ with 3 brands which are 10bn+ 18
Slide 19: Business strategy
Business strategy Healthcare Home & Personal Care Foods • Leadership in Ayurveda – • Ayurvedic / Herbal focus • Maintain leadership in Juices scientific evidence & • Premiumization & & Nectars category research Differentiation • Leveraging the Fruit equity • OTC portfolio to be scaled • Strong innov
Slide 20: Recent Innovations
Recent Innovations Vatika Enriched Coconut Dabur Women Dabur Honey Tulsi & Dabur Vatika Shampoo Hair Oil Restorative Tonic Ginger with Satt Poshan Anmol Jasmine Hair Oil Honitus Hot Sip Real Wellnezz Amla Odonil Zipper 20
Slide 21: Project Buniyaad – Distribution enhancement
Project Buniyaad – Distribution enhancement Urban Strategy Leveraging potential through Channel based approach Rural Strategy Split the front line teams into two to increase reach and frequency – Showing significant positive gains Portfolio Focus Leveraging split teams for focused portfolio building
Slide 22: Project Lead – Doctor advocacy initiative
Project Lead – Doctor advocacy initiative Key Products (Project Lead) Project Lead was initiated in 2015 with an aim to create the Doctor advocacy platform • Building the detailing team – Started with 163 Medical Representatives, which is currently at 178; Dabur Stresscom Dabur Hepano plans to incre
Slide 23: Contents
Contents Ayurveda – Science of Life Dabur – Overview Business Structure India Business International Business The next growth wave Annexure 23
Slide 24: Business Overview
Business Overview Key markets Sales (INR bn) CAGR: 17% Middle East 27.1 23.1 24.2 23.2 Saudi UAE 18.3 Arabia 16.2 8.9 Africa FY11 FY12 FY13 FY14 FY15 FY16 FY17 Egypt Nigeria Kenya South (IndAS) Africa Impacted by currency devaluation and shift to IndAS Europe Region-wise sales (FY17) Turkey UK Ameri
Slide 25: The Journey…
The Journey… • Acquired Hobby Kozmetik In Turkey and Namaste Labs in USA 2015-18 • Franchisee bought out in UAE and renamed Dabur 2011-14 International 2007-10 • Localisation & expansion 2003-06 • Expansion into Skin Care 2002 and Oral Care • Trading Model through a franchisee -Hair Oil was mainstay
Slide 26: Organic International Business
Organic International Business FY06 FY17 Others Oral Care Others Skin Care 5% 2% 5% 8% Oral Care Hair Oil 12% 37% Hamamzaith & Styling 12% Hair Oil Shampoo Hair Cream 93% 14% 12% Organic International Business has evolved from being just a Hair Oil business to a diversified personal care entity 26
Slide 27: Dabur Amla
Dabur Amla Oldest brand in IBD portfolio Styling products Leave on Oils Shampoos & Conditioners Hair creams Hair Oils Variants Hair Oils 2003 27
Slide 28: Vatika
Vatika Largest brand in IBD portfolio Hair Serum Hair Colors Hair Gels Conditioners Shampoo Hair Cream EHO VHO 2003 28
Slide 29: Dermoviva
Dermoviva Youngest brand in IBD portfolio Toners Face Scrub Face Wash Wipes Skin Lotions Creams Hand Wash Skin Serum Soaps Launched in 2011 29
Slide 30: Oral Care
Oral Care Herbal dental care products range Mouthwash RTP Herbal Toothpaste Miswak Herbal Gel Herbal Toothpaste 2006 30
Slide 31: Recent Innovations – IBD
Recent Innovations – IBD Dermoviva Facial Fluid Range Amla Men Hair Tonic Herbal Olive Enamel Care Toothpaste Vatika Shampoo Relaunch Dermoviva Baby Range- Olive Vatika Stand Tough Styling Gel Enriched Powder and Olive Baby Soap 31
Slide 32: IBD – Business Strategy
IBD – Business Strategy Brands positioned on “Herbal and Natural” platform Product portfolio customized to local preferences Strong investments in brands and business Leveraging Digital platform to enhance consumer awareness and brand visibility Local supply chain & management offers strategic advan
Slide 33: Contents
Contents Ayurveda – Science of Life Dabur – Overview Business Structure India Business International Business The next growth wave Annexure 33
Slide 34: The next growth wave
The next growth wave Build bigger brands More than 15 brands in the range of INR >0.1 to 1 bn which can grow to INR 1bn+ Continued Innovation NPD pipeline primed to deliver new products in key categories – 4-5 new products every year Driving distribution expansion Direct reach of 1 mn +, increasing
Slide 35: Contents
Contents Ayurveda – Science of Life Dabur – Overview Business Structure India Business International Business The next growth wave Annexure 35
Slide 36: Q2 FY18 – Consolidated Financials
Q2 FY18 – Consolidated Financials Revenue (INR cr) Profit After Tax (INR cr) 1,982 (1.1%) 1,958.9 1.3% 361.9 357.3 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 • Although Consolidated revenue declined by 1.1% • Consolidated Profit After Tax (PAT) grew by 1.3%. on reported basis, underlying GST adjusted One time
Slide 37: Shareholding, Market Cap and Dividends
Shareholding, Market Cap and Dividends Shareholding pattern Market Cap (INR bn) Retail 5.5% 599 DIIs 8.9% 488 439 FIIs 17.6% Promoters 68.1% Mar-16 Mar-17 Nov-17 Dividend history 225% 225% 200% 200% 175% 175% 175% 150% 150% 130% 115% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 37
Slide 38: Consolidated Profit & Loss (1 of 2)
Consolidated Profit & Loss (1 of 2) All figures are in INR crores, unless otherwise stated Q2 FY18 Q2 FY17 Y-o-Y (%) H1 FY18 H1 FY17 Y-o-Y (%) Revenue from operations 1,958.9 1,981.6 (1.1%) 3,749.0 3,933.8 (4.7%) Other Income 84.3 89.2 (5.5%) 165.6 150.3 10.2% Total Income 2,043.2 2,070.9 (1.3%) 3,9
Slide 39: Consolidated Profit & Loss (2 of 2)
Consolidated Profit & Loss (2 of 2) All figures are in INR crores, unless otherwise stated Q2 FY18 Q2 FY17 Y-o-Y (%) H1 FY18 H1 FY17 Y-o-Y (%) Tax Expenses Current Tax 84.4 82.4 2.5% 140.0 148.0 (5.4%) Deferred Tax 3.5 4.9 (28.7%) 6.8 9.4 (27.7%) Net profit after tax but before share 362.9 358.2 1.3
Slide 40: Consolidated Balance Sheet (1 of 2)
Consolidated Balance Sheet (1 of 2) All figures are in INR crores, unless otherwise stated As at 30/09/2017 As at 31/03/2017 Particulars (Unaudited) (Audited) A Assets 1 Non-current assets (a) Property, plant and equipment 1,508 1,479 (b) Capital work-in-progress 55 42 (c) Investment property 55 55
Slide 41: Consolidated Balance Sheet (2 of 2)
Consolidated Balance Sheet (2 of 2) All figures are in INR crores, unless otherwise stated As at 30/09/2017 As at 31/03/2017 Particulars (Unaudited) (Audited) B Equity and Liabilities 1 Equity (a) Equity share capital 176 176 (b) Other Equity 5,100 4,671 Equity attributable to shareholders of the Co
Slide 42: For more information & updates, visit dabur.com investor page
For more information & updates, visit http://www.dabur.com/in/en-us/investor 42
Dabur India — Morgan Stanley's Sixteenth Annual Asia Pacific Summit 2017 on 6ix