Emami Limited · NSE:EMAMILTD
Emami — Investor Presentation (August 2011)
36 slides from Emami's investor presentation, August 2011
Slide 1: Investor Presentation August 2011
Investor Presentation August’ 2011
Slide 2: Industry Overview
Industry Overview The Indian FMCG industry at INR 1300 bn (around USD 30bn) accounts for 2.2% of the GDP (growing at robust 9%) In the last decade, the sector grew by 11% annually The FMCG industry is expected to grow at a base rate of atleast 12% annually to become an INR 4000 bn (around USD 90bn)
Slide 3: Key Drivers of the FMCG industry in India
Key Drivers of the FMCG industry in India Source: Industry Reports 3
Slide 4: Low penetration ….Big opportunity
Low penetration ….Big opportunity 100.0% 95.6% 92.3% 88.6% 90.0% 80.0% 74.2% 70.0% 64.3% 60.0% 55.7% 51.6% 50.0% 40.0% 30.0% 20.0% 17.1% 10.0% 1.7% 1.3% 0.0% Toilet Washing Detergent Hair Toothpaste Shampoo Talcum Fairness Antiseptic Cold Soap Powders Bar Oil Powder Cream Cream Cream Low penetration
Slide 5: Company Overview
Company Overview Emami Limited, the flagship company of the Emami Group, is a leading FMCG player in India The Company is promoted by Mr. R.S. Agarwal and Mr. R.S. Goenka Emami has been in the health, beauty and personal care since the last 35 years and has sustained its prominent position in Ayurve
Slide 6: Shareholding Pattern
Shareholding Pattern Others, MFs / 10.2% FIIs, 17.1% Promoters 72.7% Listed on the NSE, BSE and Kolkata stock exchanges Market capitalisation in excess of Rs. 65 bn (USD 1.4bn) Return to investors of over 175% following its QIP in July 2009 6
Slide 7: Board of Directors
Board of Directors S.N. Promoter Directors S.N. Independent Directors 1 Sri R. S. Agarwal 8 Sri Viren j. Shah, Industrialist, ex-Governor of West Bengal 2 Sri R. S. Goenka 9 Sri K. N. Memani, ex-Country Head of E&Y, India 3 Sri S. K. Goenka 10 Sri Y. P. Trivedi, eminent tax expert & advocate, Rajya
Slide 8: The Journey
Emami started emami Launched Boroplus ata a ca ha Antiseptic cream _—— Launched _ ie —— Crossed Nest Sales __Mentho plus Balm Fee — Aquired Himani Limited of Rs. 1000 Cr; Launched Boroplus Exceeded market prickly heat powder capitalisation of Rs. 5000cr ($1 bn) Taunched Split of shares from Navratna
Slide 9: Strategy
Strategy Aggressive promotion through celebrities Expand distribution – reach rural Differentiated ‘Value For Money’ products Drive Product innovation to enter new categories Brand extensions Revenue Entry in new geographies – drive exports Leveraging existing distribution network Benchmark A&P spen
Slide 10: Snapshot of Power Brands
Snapshot of Power Brands Market Market Emami’s Market Share in % Power Brand Segment Size Size 2005 2010 (INR in (USD in Millions) Millions) Navratna Oil Cooling oil 5,800 129 47 49 Boroplus Cream Antiseptic Cr. 2,600 58 65 75 Zandu & Mentho Balm 4,900 109 13* 57 Plus Balm Fair & Handsome Men's fair
Slide 11: Domestic Reach
Domestic Reach Strong foothold in rural India Nation-wide domestic distribution network • 2800+ distributors, • 500,000+ retail outlets, • Brand reach 2.6mn outlets Team of 2500 front line sales force Domestic Sales on cash basis South, East, 22% 23% North, West, 29% 26% Geographical breakup of Sale
Slide 12: Global Reach
Global Reach a ae . on age os Spe Emami InternationalzFocused Markets NORTH AFRICA _ 13. EGYPT 14. SUDAN N \ i SEA Markets 15. MOROCCO 16. ALGERIA 20. MYANMAR Rest of AFRICA ye > bo SAARC Markets 4 os Ault. ss Ji 10.BANGLADESH << r 18. KENYA a ‘. 11, NEPAL ~ 49. UGANDA 42, SRILANKA ME HEAD OFFICE @R
Slide 13: Internationally, products available in 75 countries
International business contributes around 14% of the total revenue Growing at a CAGR of 34% over last 5 years CIS, 11% Others, 3% Africa, 35% GCC, 21% SAARC, 30% Internationally, products available in 75 countries – strong growth coming from Middle East, CIS and SAARC 13
Slide 14: Research Capabilities
Research Capabilities Focus: Product innovation, product differentiation, cost control and maintaining excellent product quality Team comprises qualified Ayurvedacharyas and specialized Ayurveda scientists; advisory panel comprising top Ayurvedic experts A modern fully equipped laboratory with cGMP
Slide 15: Celebrity Endorsements
ce | se emami Celebrity Endorsements Brand ambassadors Celebrated and acclaimed personalities from entertainment and sport have endorsed Emami products over the years.
Slide 16: New Launches
New Launches The new launches like Navratna Cool Talc, Boroplus Body Lotion, Navratna Extra Thanda Oil, Malai Kesar Cold Cream and Vasocare Petroleum Jelly are performing very well Launched Boroplus Healthy and Fair Winter Cream last winter, Navratna Coconut Cool Oil and Boroplus Sun Protection Loti
Slide 17: Navratna Oil
Navratna Oil o Market size of Rs. 5800 mn ($129 mn) o Market leader with 49% market share o Grew by 20% in FY11 o Growing at CAGR of 15% in last 6 years o Commissioned some of the most visible brand ambassadors (Amitabh Bachchan, Shahrukh Khan, and Mahesh Babu, Chiranjeevi and Upendra for South) o N
Slide 18: Boroplus Antiseptic Cream
Boroplus Antiseptic Cream o Market size of Rs. 2600 mn ($58 mn) o Leader in the antiseptic cream market with a 75% share o Largest selling antiseptic cream not only in India but also in Ukraine, Russia and Nepal o Sales grew by 9 in FY11 o Growing at CAGR of 17% in last 6 years o Boroplus Brand impr
Slide 19: Fair & Handsome Fairness Cream
Fair & Handsome Fairness Cream o Launched in October 2005; first fairness cream for men in India o Market size at Rs. 2100 mn ($47 mn) with a market share of 60% o Sales grew by 11% in FY11 o Launched 7ml and 15ml LUPs. Five power formula contains double-strength peptide complex (patented in US) for
Slide 20: Zandu & Menthoplus Balm
Zandu & Menthoplus Balm o Market size of Rs. 4900 mn ($109 mn) o Zandu, a dominant player in pain management category o Sales grew by 22% in FY11 o Market share of 57% o CAGR of 20% over the last 6 years in Menthoplus Relief from headaches, body aches and cold 20
Slide 21: Zandu & Sona Chandi Chyawanprash
Zandu & Sona Chandi Chyawanprash o Market size of Rs. 2100 mn ($47 mn) o Market share of 15% o Grew by 12% in FY11 o Sona Chandi endorsed by Shah Rukh Khan, Sunny Deol and Dharmendra. Immunity builder - Surakshit tan aur tez dimag 21
Slide 22: Navratna Cool Talc
Navratna Cool Talc o Market size of Rs. 3150 mn ($70 mn) o A new launch in the talcum powder category; with cooling properties o Market share at 13% o Growing by over 100% since last 2 years Brings the much-required cool and icy sensation in the scorching summers 22
Slide 23: Fast Relief
Fast Relief o Market size of Rs. 4000 mn ($89 mn) o Market share of 9% o Grown at a CAGR of 18% in last 6 years. o Brand revamped with enhanced formulation in new packaging as Himani Fast Relief ultra fast formula o Launched Fast Relief Max – in cream based not sticky format o Amitabh Bachchan is th
Slide 24: Operations
Operations 7 manufacturing facilities; 2 in Guwahati and 1 in Pantnagar, Uttaranchal enjoying fiscal benefits Most of the facilities are cGMP and ISO 9000 compliant. Units follow highest standards of safety and environment protection 24
Slide 25: Summarised Balance Sheet
Summarised Balance Sheet As at March 31, 2011 LIABILITIES Rs. in USD in ASSETS Rs. in USD in Millions Millions Millions Millions Share Capital & Reserves 6,898.5 153.3 Net Fixed Assets 2,257.7 50.2 Deferred Tax 137.0 3.0 Goodwill 2,651.6 58.9 Loan Funds 2,293.7 51.0 Investments 66.2 1.5 Less : Cash
Slide 26: Growth: Net Sales
Net Sales In Millions Aggressive 14,000 Growth $284.0 12,778 continues 35.5% 12,000 34.2% 30.3% 22.2% 23.1% 12.7% 10,380 10,000 $230.7 $170.3 Growth 8,000 7,662 $130.7 $115.9 5,881 6,000 $94.9 5,217 4,269 4,000 2,000 - 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Consolidated Growing at CAGR of 2
Slide 27: Growth: PAT
PAT 2,500 In Millions 84.8% 2,287 $50.8 66.3% 2,000 $37.7 34.0% 36.2% 1,697 34.8% 1,500 Growth 1.9% $20.0 $20.4 1,000 902 919 $14.7 $11.0 662 494 500 - 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Consolidated Growing at CAGR of 36% over last 5 years 27
Slide 28: A&P Expenses
A&P Expenses In Millions A&P Expenses 2400 $51.2 26% A&P Expenses as a % of Sales 23.8% 2305 24% 2000 $43.2 1944 22% 21.2% 1600 $32.0 Rs in Millions 19.3% 20% $27.8 1200 1441 18.7% 18% $21.6 1250 18.0% 973 16% 800 14% 400 12% 0 10% 2005-6 2007-8 2008-9 2009-10 2010-11 Higher A&P spends well reflecti
Slide 29: Dividend and Pay-Out
Dividend 350% Dividend % Pay-Out % 50% 350% 43.1% 43.4% 45% 300% 300% 40% 250% 36.3% 35% 225% Pay-Out (%) Dividend (%) 200% 200% 30% 31.3% 150% 225% 27.0% 25% 100% 20% 50% 15% 0% 10% 2006-07 2007-08 2008-09 2009-10 2010-11 Stock Split from Rs. 2/- per share to Rs. 1/- per share in FY11 29
Slide 30: Market Capitalization
Market Capitalization 70000 68090 60000 Market Cap (Rs. in Mn) 50000 40000 30000 19266 20000 10000 4281 0 2005 2009 2010 Public issue of Present price of Rs. 450/- QIP of 10 mn shares 5 mn shares per share after split – at Rs. 310/- each at Rs. 70/- each from Rs. 2/- to Re.1 each 30
Slide 31: Q1FY12 Update
Q1FY12 Update 3500 2999 3000 450 415 +24.0% +17.7% 2420 400 353 2500 350 2000 300 250 1500 200 1000 150 100 500 50 0 0 Q1FY11 Q1FY12 Q1FY11 Q1FY12 SALES PAT 31
Slide 32: Q1FY12 Results
Q1FY12 Results Rs. in Millions Particulars Q1FY12 % of Q1FY11 % of Growth FY11 % of Sales Sales % Sales Net Sales 2,999.1 100% 2,419.5 100% 24.0% 12,777.8 100% Other Income 31.1 1.0% 8.9 0.4% 249.4% 185.1 1.4% Materials Cost 1,347.0 44.9% 931.0 38.5% 44.7% 5,231.8 40.9% A&P 585.7 19.6% 544.1 22.5% 7
Slide 33: Ratings, Awards & Recognitions
Ratings, Awards & Recognitions Corporate Emami among Asia's 'Best Under A Billion' 2010 list of companies compiled by the Forbes magazine Ranked 125th (PY:179th) among BT-500 Most Valuable Companies of India in private Sector (Business Today) Ranked 272nd among Fortune 500 India’s largest Corporatio
Slide 34: INDIASTAR 2010 National Awards and Individual Recognition
Received INDIASTAR 2010 NATIONAL AWARDS for excellence in packaging in : - Emami VasoCare Petroleum Jelly in In-Built Flip Top Cap - Zandu Balm 10 G Pack in Bi-Colour Container and Cap - Emami 5-in-1 shampoo Sachet - Emami Hairlife Single Piece Carton Individual Recognition Mr. Naresh Bhansali, CEO-
Slide 35: Key Investment Highlights
Key Investment Highlights One of the fastest growing FMCG company Niche category player + innovator – in Therapeutic and Ayurvedic segment - strong entry barriers for the competition Key brands are strong market leaders in their respective categories With the acquisition of Zandu, we have one the st
Slide 36: Thank You
Thank You wrth emami GE FAIR AND Ye) HANDSOME FAIRNESS CREAM FOR MEN wee | i FAST RELIET-