Emami Limited · NSE:EMAMILTD
Emami — Investor Presentation (February 2013)
36 slides from Emami's investor presentation, February 2013
Slide 1: Investor Presentation February 2013
Investor Presentation February’ 2013
Slide 2: Industry Overview
Industry Overview The Indian FMCG industry at INR 1300 bn (around USD 30bn) accounts for 2.2% of the GDP 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) industry by 2020.
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% 95.8% 92.3% 88.6% 90.0% 80.0% 75.1% 72.1% 70.0% 60.0% 60.0% 51.7% 50.0% 40.0% 30.0% 20.0% 18.1% 10.0% 1.6% 1.1% 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
Slide 6: Shareholding Pattern
Shareholding Pattern Others, MFs / FIIs, 8.8% 18.5% Promoters 72.7% Listed on the NSE, BSE and Kolkata stock exchanges Market capitalisation of over Rs. 90 bn (USD 1.65bn) Return to investors of over 300% following the 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
The Journey …………. Crossed Net Sales 8
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 Be
Slide 10: Snapshot of Power Brands
Snapshot of Power Brands Market Market Emami’s Market Share in % Power Brand Segment Size Size 2005 2012 (INR in (USD in Millions) Millions) Navratna Oil Cooling oil 8,100 151 47 55 Boroplus Cream Antiseptic Cr. 3,600 67 65 73 Zandu & Mentho Balm 6,800 127 13* 58 Plus Balm Fair & Handsome Men's fair
Slide 11: Domestic Reach
Domestic Reach Strong foothold in rural India Nation-wide domestic distribution network • 3000+ distributors, • 600,000+ retail outlets, • Brand reach 4mn outlets Team of 2500 front line sales force Domestic Sales on cash basis East, South, 21% 23% North, West, 29% 27% Geographical breakup o
Slide 12: Global Reach
Global Reach ee. ‘a : oti ease Emami InternationalzFocused Markets — CIS Markets NORTH AFRICA EGYPT 14. SUDAN 15. MOROCCO 16. ALGERIA Rest of AFRICA } ; = OSes = SAARC Markets _ 17. ANGOLA Eas 40.BANGLADESH “ 4 « 18. KENYA : \. 41. NEPAL < t 49. UGANDA 42, SRILANKA ME HEAD OFFICE @REGIONAL OFFICE bb
Slide 13: International business contribution by region
International business contributes around 13% of the total revenue Growing at a CAGR of 26% over last 3 years Others, 10% CIS, 21% Africa, 14% SAARC, 34% GCC, 21% Internationally, products available in 75 countries – strong growth coming from SAARC and Middle East 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
Slide 15: Celebrity Endorsements
Celebrity Endorsements 15
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 Sun Protection Lotion and Vasocare Lotion in FY12 Continue to launch 2-3 innovative products /
Slide 17: Navratna Oil
Navratna Oil o Market size of Rs. 8100 mn ($151mn) o Market leader with 55% market share o Grew by 27% in FY12 o Growing at CAGR of 23% in last 3 years o Commissioned some of the most visible brand ambassadors (Amitabh Bachchan, Shahrukh Khan, and Mahesh Babu, Chiranjeevi and Upendra for South) o Na
Slide 18: Boroplus Antiseptic Cream
Boroplus Antiseptic Cream o Market size of Rs. 3600 mn ($67mn) o Leader in the antiseptic cream market with a 73% share o Largest selling antiseptic cream not only in India but also in Ukraine, Russia and Nepal o Sales grew by 10% in FY12 o Growing at CAGR of 12% in last 3 years o Boroplus Brand ran
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. 3330 mn ($62mn) with a market share of 57% o Fair and Handsome ranked 25th among India’s most trusted brands in Personal care category by Brand Equity Survey, 2012 o Sales grew by 35
Slide 20: Zandu & Menthoplus Balm
Zandu & Menthoplus Balm o Market size of Rs. 6800 mn ($127mn) o Zandu, a dominant player in pain management category o Zandu ranked 3rd among India’s most trusted brands in OTC Personal care category by Brand Equity Survey, 2012 o Sales grew by 23% in FY12 o Market share of 56% o CAGR of 23% over la
Slide 21: Zandu & Sona Chandi Chyawanprash
Zandu & Sona Chandi Chyawanprash o Market size of Rs. 3450 mn ($63mn) o Market share of 10% o Sona Chandi endorsed by Shah Rukh Khan. Immunity builder ‐ Surakshit tan aur tez dimag 21
Slide 22: Navratna Cool Talc
Navratna Cool Talc o Market size of Rs. 4300 mn ($80mn) o A new launch in the talcum powder category; with cooling properties o Introduced attractive ‘twisted pack’ o Market share at 18% Brings the much‐required cool and icy sensation in the scorching summers 22
Slide 23: Fast Relief
Fast Relief o Market size of Rs. 9900 mn ($185mn) o Market share of 5% o Brand revamped with enhanced formulation in new packaging as Himani Fast Relief ultra fast formula o Launched Fast Relief Max – in cream based non sticky format o Amitabh Bachchan is the Brand Ambassador o Widely accepted in th
Slide 24: Operations
Operations 7 manufacturing facilities; 2 in Guwahati and 1 in Pantnagar, Uttaranchal enjoying fiscal benefits Set up first overseas manufacturing facility at Bangladesh in 2012 Most of the facilities are cGMP and ISO 9000 compliant Units follow highest standards of safety and environment pro
Slide 25: Net Sales Growth
Net Sales 16,000 14,535 36.4% 14,000 27.8% 22.1% 23.3% 12,471 13.1% 16.6% 12,000 10,217 10,000 Rs. in Mn Growth 8,000 7,489 5,859 6,000 5,183 4,000 2,000 ‐ 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 Consolidated Growing at CAGR of 23% over last 5 years 25
Slide 26: PAT Growth
PAT 3,000 84.8% 2,588 2,500 2,287 36.3% 34.1% 34.8% 2,000 1,697 13.2% Rs. in Mn Growth 1.8% 1,500 1,000 902 919 662 500 ‐ 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 Consolidated Growing at CAGR of 31% over last 5 years 26
Slide 27: A&P Expenses
A&P Expenses A&P Expenses 2400 A&P Expenses as a % of Sales 22% 21.2% 2194 2290 2000 19.3% 20% 1944 18.7% Rs in Millions 1600 18% 17.6% 1441 1200 16% 1250 15.8% 800 14% 400 12% 0 10% 2007‐8 2008‐9 2009‐10 2010‐11 2011‐12 Higher A&P spends well reflecting in revenue growth 27
Slide 28: Dividend
Dividend 800% Dividend % Pay‐Out % 60% 800% 55% 700% 54.4% 50% 600% 43.4% 45% 500% 40% Dividend (%) Pay‐Out (%) 36.3% 400% 31.3% 35% 350% 30% 300% 300% 27.0% 25% 200% 225% 225% 20% 100% 15% 0% 10% 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 Stock Split from Rs. 2/‐ per share to Rs. 1/‐ per share in FY11
Slide 29: Summarised Balance Sheet
Summarised Balance Sheet Rs. In Mn As at 31st March As at 31st March S.N. EQUITY & LIABILITIES S.N. ASSETS 2012 2011 2012 2011 1 Shareholders Fund 1 Non-Current Assets a. Share Capital 151 151 Net Fixed Assets 4,803 4,909 b. Reserves and Surplus 6,915 6,747 Godwill On Consolidation 42 8 2 Minority I
Slide 30: Key Highlights 2012
Key Highlights…….2012 Working Capital : - Inventory holding days reduced from 36 to 28 days - Debtors reduced from 32 to 25 days - Payment period increased from 20 to 27 days Net Cash of over Rs. 1900mn Current Ratio at 1.68 indicates high level of liquidity RONW improved from 33.2% to 36.7%
Slide 31: Market Capitalization
Market Capitalization 100000 93813 90000 80000 Market Cap (Rs. in Mn) 70000 60000 50000 40000 30000 19266 20000 10000 4281 0 2005 2009 2012 Public issue of Share price of Rs. 620/‐ 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 31
Slide 32: 9MFY13 Update
9MFY13 Update 18.2% 18.3% 12481.4 2,207.2 14,000 2,500 10550.7 1,866.4 12,000 2,000 10,000 Rs. in Mn 8,000 1,500 6,000 1,000 4,000 500 2,000 0 0 9MFY12 9MFY13 9MFY12 9MFY13 SALES PAT 32
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 136th among BT-500 Most Valuable Companies of India in private Sector (Business Today) Rated (by CARE) PR1+ (highest rating) for Short Term borrowi
Slide 34: Awards and Individual Recognition
Amingaon & BT Road units won GOLD Award at CCQC, Kolkata Pantnagar unit received Best Model Award for Kaizen by NCQC, Hyderabad BT Road unit stood first in CII Works Skill competition – Refrigeration category Individual Recognition Mr. Naresh Bhansali, CEO‐Finance, Strategy and Business Deve
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 on
Slide 36: Thank You
: ZANDU fy = BALM’ ‘ap |