Bajaj Consumer Care Limited · NSE:BAJAJCON
Bajaj Consumer Care — Q1 FY2021 Earnings Presentation
34 slides from Bajaj Consumer Care's earnings presentation, Jul 16, 2020
Slide 1: Exchange filing cover letter
bajaj coNsuMrn cARE July 16, 2020 DCS-CRD Listing Compliance BSE Limited National Stock Exchange of India Ltd. First Floor, New Trade Wing Exchange Plaza, 5th Floor Rotunda Building, Plot No. C/1, ‘G’ Block Phiroze Jeejeebhoy Towers Bandra- Kurla Complex Dalal Street, Fort, Mumbai 400 023 Bandra Eas
Slide 2: Investor Presentation Q1 FY 2021
b~~ CONSUMER CARE INVESTOR PRESENTATION Q1 FY 2021 MAKING CONSUMERS FEEL AND LOOK GOOD
Slide 3: Key Indicators – Q1 FY 2021
Key Indicators – Q1 FY 2021 SALES Growth: -17.63% (Y-o-Y) Gross Margin: 63.6% Market Share (Val) = 10.2% ASP to Sales: 12.97% Household Penetration = 21.1% EBITDA Margin:30.42% PAT Margin: 28.30% Nielsen Retail Audit Report, May 2020, All India 2 Source: HH Penetration Kantar, Feb 2020, Bajaj Consum
Slide 4: Performance in Q1 FY 2021
Performance in Q1 FY 2021 Q1FY21 performance was impacted due to nation wide lockdown to contain outbreak of COVID 19. We witnessed significant disruptions during the first fortnight of April but since then the company has been able to steadily revive its operations and reverted to near normal busin
Slide 5: Key Focus Areas in Q1 FY 21
Key Focus Areas in Q1 FY 21 ➢Agility and Response to COVID - 19 ➢Specific Channels/Geographies ➢E-commerce ➢Rural India ➢Leveraging new opportunities ➢ Employee Engagement 4 Bajaj Consumer Care Ltd
Slide 6: Agility & Response to COVID-19
Agility & Response to COVID - 19 5 Bajaj Consumer Care Ltd
Slide 7: Focus on Customer Service & Operations Agility
Focus on Customer Service & Operations Agility ➢ The organization decided to connect with the channel partners giving them assurance of company support during these difficult times ➢ All employees took part in the initiative and around 40,000 calls were made per day to reach out to Distributors, Sub
Slide 8: Safety at Factory during Covid-19
Safety at Factory during Covid - 19 Hand Temperature After sanitizer checking at checking installed at entrance temperature, entrance PPE is given Training imparted at different work locations for maintaining social distancing to ensure safety against COVID-19 bajaj CONSUMER CARE 7
Slide 9: Safety on Shop floor during Covid–19
Safety on Shop floor during Covid – 19 ➢ Ensuring 1 meter gap between workstations – social distancing ➢ Sanitizer made available at designated location ➢ Thorough Shop Floor cleaning ➢ Manufacturing vessels were sanitized ➢ Fumigation was done at key areas of the Plant bajaj CONSUMER CARE
Slide 10: General Trade Sales under COVID 19
General Trade Sales under COVID 19 ➢ Physical selling came to standstill in April and May ➢ Majority of Field Force were in market with adequate precautions from June ➢ Depot operations gradually started from mid April ➢ Urban markets, both Retail and Wholesale, were under severe stress due to curta
Slide 11: Alternate Trade Channel Sales under COVID
Alternate Trade Channel Sales under COVID 19 ➢ Modern Trade business got impacted due to closure of Malls and Hyper Market stores for large part of the quarter, in Metro cities ➢ E Commerce Channel was leveraged to drive sales ➢ Bajaj Nomark Sanitisers was introduced in few Modern Trade stores ➢ Foc
Slide 12: Hair Oil Market
Hair Oil Market Bajaj Consumer Care Ltd 11
Slide 13: Hair Oil Category Growth
Hair Oil Category Growth Value Growth % Volume Growth% Total Hair Oils YTD Feb 20 Mar-20 Apr-20 May-20 APR+ MAY'20 rt'TD Feb 20 Mar-20 Apr-20 May-20 APR+ MAY'20 All India {U+R} 3.7 -6.9 -50.6 -25.2 -37.7 0.9 -5.5 -45.6 -20.2 -32.7 All India - Urban 4.4 -6.4 -54.8 -33.3 -43.9 1.9 -4.9 -49.8 -28.4 -38
Slide 14: MAT Value Market Share trend
MAT Value Market Share trend 10.3 10.2 10.1 10.1 10.0 10.1 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 9.9 9.9 9.9 9.9 9.9 9.7 9.4 MAT JUN18 MAT AUG18 MAT OCT18 MAT DEC18 MAT FEB19 MAT APR19 MAT JUN19 MAT AUG19 MAT OCT19 MAT DEC19 MAT FEB20 MAT APR20 Nielsen Retail Aud
Slide 15: Market Share Progression - Monthwise
Market Share Progression - Monthwise Monthly Monthly Value Value Share Share % % Change Change in in Market Market share share Vs Vs Same Same 11.5 Month Month LY LY 1.0 11.0 0.8 0.8 10.5 0.6 0.5 10.0 0.4 0.4 0.3 0.3 0.3 9.5 0.2 0.2 0.1 0.1 9.0 0.0 8.5 0.0 -0.2 -0.2 -0.2 8.0 -0.4 -0.3 -0.3 -0.4 - -
Slide 16: Specific Channels / Geographies
Specific Channels - /Geographies Bajaj Consumer Care Ltd 15
Slide 17: Driving Growth through Ecommerce
Driving Growth through Ecommerce Grofers Flipkart Supermart ADHO in shop by category on Home Page- Grofers , = i ... ,,11 ,t 0 f t+ l () l 1 ~ P e r sonal Care• Q ~ ~ -400 SAVINGS { 250 CASHBACK Featured Brands u • ., Cod., B8F10 I ._.m T~n •1!,.00 - -o - - Home Essentials See all USE100% r..:J't,t,
Slide 18: Focus on Rural India
Focus on Rural India ➢ Distribution Expansion in Rural Markets through scale up of Vans ➢ Vans are operational PAN India across 15 states ➢ Overall coverage expanded to over 50,000 villages across country ➢ Range selling of ADHO along with Sanitizers ➢ TV + Digital Media with focus on Key Rural mark
Slide 19: Leveraging New Opportunities
Leveraging New Opportunities Bajaj Consumer Care Ltd 18
Slide 20: Sanitizer Launch in Response to COVID
Sanitizer Launch in Response to COVID 19 ➢ Bajaj Nomarks Hand Sanitizer was launched in Q1’ 21 ➢ Launched in April with 50ml, 100ml, 200ml and 5 litre SKUs ➢ 500 ml Pump pack added in June ➢ Bajaj Multipurpose Sanitizer (5 Litre Pack) launched in June to cater to Institution requirements ➢ Can be us
Slide 21: Bajaj Zero Grey through E-commerce
Bajaj Zero Grey through E-commerce ➢ Premium Hair Oil launched through E-commerce Platforms ➢ Anti Greying Hair Oil with Natural Ingredients known for stopping greying ➢ Premium Pricing – Rs. 199/ Rs. 360 for 100ml / 200 ml respectively ➢ Supported with Digital -. ~ I , • Continue Your Search trop1c
Slide 22: Employee Engagement
HUMAN ESOURCE Employee Engagement bajaj coNsuMrn cAnE 21 Bajaj Consumer Care Ltd
Slide 23: Winning with People
Winning with People ➢ Priority during COVID-19 has been to maintain regular communication with Employees and ensure that they are Safe, Engaged and Motivated ➢ Our virtual learning & communication platform “Aaj Ki Charcha” was utilised to roll out multiple initiatives during the quarter ➢ 7 Virtual
Slide 24: Engagement with People during Covid-19
Engagement with People during Covid - 19 * Employee * *Appreciation Week ( 12'" May -16'h May'20) 11 '-' 1, ths tough b-nes wt ire II tt, s togetfter iill'ld or 1g from HO"'le To cherish the memories of Lodl:down P1u.se share us one of the f°'low,ng : 1. Pictures I videos of any hobby I passion you
Slide 25: Management team as on June 2020
Management team as on 30 June 2020 Kushagra Nayan Bajaj ~ Sumit Malhotra Managing Director n Jaideep Nandi CEO Ankit Chudiwala Head - Internal Audit ~ Chairman T-------------------------------·-- _______________________________ J Dilip Kumar Devendra Dipankar Rajat Abhishek Naresh Apoorv Maloo Jain
Slide 26: Key Indicators
Key Indicators 25 Bajaj Consumer Care Ltd
Slide 27: Strong Distribution Network
Strong Distribution Network Distribution Structure 53 Factory (6) OWN – Himachal Pradesh -1, Uttarakhand- 1, Assam-1 80 THIRD PARTY - Himachal Pradesh-1, Gujarat -1 294 Uttarakhand- 1 84 265 04 20 02 Central Warehouse (2) 713 2381 04 317 774 17 08 Depots - 18 247 60 01 786 757 386 Urban Distribution
Slide 28: Sales & Distribution
Sales & Distribution ✓ Distribution was at 41 lakh outlets in March 20 , dropped to 39.4 lakh outlets in May 20 due to nation wide lockdown Distribution Outlets ADHO (in Lacs) 42 41 41.0 40.4 40 40.1 40.1 39.7 39.9 ---------------- 39.6 40.1 39.4 ------------------ 39 39 38 38 37.9 37.6 37.5 37.4 37
Slide 29: Sales Value Breakup by Channel (Q1 FY 21)
Sales Value Breakup by Channel (Q1 FY 21) Rs. Crs Channel Q1FY21 Q1FY20 Growth% Salience% Salience% Q1FY21 Q1FY20 General Trade 170.18 208.00 (18.18%) 88.87% 89.47% Modern Trade 13.66 17.65 (22.62%) 7.13% 7.59% Total Domestic excluding CSD 183.84 225.65 (18.53%) 96.01% 97.07% Canteen Stores Departme
Slide 30: Standalone Financials for Q1 FY 2021
Standalone Financials for Q1 FY 2021 Rs. Crs Particulars Q1FY21 Q1FY20 Growth % Q4 FY 20 Sales 191.49 232.46 -17.63% 168.63 Revenue from Operations 196.06 240.24 -18.39% 175.39 EBITDA 58.24 71.89 -18.98% 25.04 EBITDA % 30.42% 30.93% 14.85% Other Income 10.56 5.97 8.36 Profit Before Tax 65.67 74.77 -
Slide 31: Breakup of Material Costs (Q1 FY 21)
Breakup of Material Costs (Q1 FY 21) Material costs as as%% to Total Cost ■ LLP 21% 30% ■ Bottles ■ Refined Mustard Oil 10% ■ Perfumes & other 14% additives 25% ■ Others *Based on Almond Drops Hair Oil Bajaj Consumer Care Ltd b~aj coNsuMrn cAnE 30
Slide 32: Change in prices of Key Ingredients
Change in prices of Key Ingredients Per Kg Rates of LLP Per Kg Rates of RMO 100 100 80 80 Amount (Rs.) Amount (Rs.) 60 60 94.92 84.01 84.97 88.84 40 40 60.74 56.64 61.96 60.01 20 20 0 0 Q1FY20 vs Q1FY21 FY19 v FY20 Q1FY20 vs Q1FY21 FY19 v FY20 bajaj coNsuMrn cAnE 31
Slide 33: Performance over last 13 quarters
Performance over last 13 quarters 250.0 35% 40.00% 34.08% 32.79% 32.61% 33.17% 31.51% 30.10% 30.93% 30.12% 30.42% 29.26% 225.0 27.10% 30.00% 200.0 20.00% 14.85% 175.0 10.00% 12.50% 11.10% 9.45% 8.14% 150.0 5.86% 5.01% 0.00% 3.84% 2.65% 1.01% -3.60% 125.0 -10.00% -7.44% 100.0 -20.00% -17.63% -29.23%
Slide 34: Thank you
b~~ CONSUMER CARE Thank you For more information & updates Contact: Mr. Kushal Maheshwari kushal@bajajconsumer.com 33
Bajaj Consumer Care — Q1 FY2021 Earnings Presentation on 6ix