Marico Limited · NSE:MARICO
Marico — Investor Presentation (February 2016)
33 slides from Marico's investor presentation, Feb 17, 2016
Slide 1: Exchange filing cover letter
M marico make a difference February 17, 2016 The Secretary, The Manager, BSE Limited, Listing Department, 1st Floor, Phiroze Jeejeebhoy Towers, National Stock exchange of India Limited, Dalal Street, ‘Exchange Plaza’, C-1 Block G, Mumbai - 400001 Bandra Kurla Complex, Bandra(E) Scrip Code: 531642 Mu
Slide 2: Marico Investor Presentation February 2016
Marico Investor Presentation February 2016 0
Slide 3: Marico: Snapshot
Marico : Snapshot Beauty & Wellness Solutions Hair Care, Health Care, Skin Care, Male Grooming A leading Indian MNC Group INR USD Market Capitalization 30,000 Cr 4.1 Billion Turnover FY 15 5,733 Cr 940 Million Profit FY 15 573 Cr 94 Million Turnover from overseas : 22% Sustained Prof
Slide 4: Portfolio: Beauty & Wellness
Portfolio : Beauty & Wellness Hair Care Hair Nourishment Oils/Serums/Tonic Healthcare Healthy refined edible oils Oats Male grooming/ styling Deodorants Hair Creams/Gels/Wax Skincare Body Lotion 2
Slide 5: Choice Making Framework - Where to Play
Choice Making Framework - Where to Play • Emerging Markets of Asia & Africa – Hair & Skin Nourishment – Male Grooming • Regional Jewels – Foods in India and Vietnam – Ethnic Hair Care in Sub Saharan & South Africa 3
Slide 6: Geography Choice Making Framework
Geography Choice Making Framework Emerging economies with lower but fast Where We Will Play : Markets Per Capita Income growing Per Capita income Large young population – Demographic Population dividend Low penetration in our chosen categories Maturity Lower intensity of competition from MNCs Retail
Slide 7: Focus on Growth
Focus on Growth • Focus on volume growth and Market Share gain – Subject to threshold operating margins • Innovation and Renovation to fuel growth – Follow prototyping approach for learning and adapting • Leverage Scale advantage for improving cost structure – Re-invest for building capabilities • O
Slide 8: Inorganic Growth Opportunities - Play Book
Inorganic Growth Opportunities - Play Book Categories Hair Care, Skin Care, Healthy Foods, Male Grooming Markets Existing Markets, East Africa, Other South East Asian Markets Key • New Markets • Market Leader Brand attributes • Strong distribution • Existing Markets • Helps build scale -> consolidat
Slide 9: Market Leadership: Key to Category Choice
Market Leadership: Key to Category Choice Indicative Market Penetration Brand Category Rank Share (%) # Level Parachute/Nihar Coconut Oil (India) ~ 57% 1 High Parachute Coconut Oil (Bangladesh) ~ 82% 1 High Super Premium Refined Edible Saffola ~ 60% 1 Low Oils (India) Saffola Oats (India) ~ 25%* 2 L
Slide 10: India Business
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Slide 11: Coconut Oil (CNO)
Coconut Oil (CNO) The only Company with a national presence in INR 45 bn (~USD 738 mio) branded CNO market Volume Market Share Parachute 48% Nihar 8% 35-40% market (by volume) estimated to Oil of Malabar 1% be in loose form Total 57% 5 yr volume CAGR in Parachute rigid packs ~8% Headroom for growth
Slide 12: Hair Oils
Hair Oils Value Added Hair Oils Market : INR 58 bn (~USD 950 mio) Value Added Light Hair Oils Amla Oils Cooling Oils Coconut Oils Anti-Hair Fall Others 25% 25% 16% 17% 13% 4% Category Play : Significant participation in most key sub-segments Marico’s Volume Market Share in Hair Oil Market ~ 30% • Fu
Slide 13: Hair Oiling Category
Hair Oiling Category • Likely to see sustained growth – One of the fastest growing amongst all large entrenched categories in India • Belief in benefits of leave-in conditioner (oil) versus rinse off • Research to support benefits of hair oiling – Reduces breakage – Reduces protein loss – Softens ha
Slide 14: Saffola
Saffola Evolution from an edible oil brand to a leading healthy lifestyle brand Riding a health care tailwind in India : Saffola 5 yr volume CAGR ~10% Leadership position in super premium refined edible oil segment (60% Volume Market Share) Entry into breakfast cereals market in 2010 (Plain oats and
Slide 15: Male Grooming
Male Grooming •Marico acquired SetWet & Zatak in May 2012 •Tail wind categories with low penetration •Synergies with existing business – Leverage widespread Distribution network • Gain access to cosmetic/chemist outlets Hair Gels/Creams Rs.200 Cr (USD 33 mn) •Achieved market leadership in Gels/Cream
Slide 16: Successful Launches – Big Bets for the Future
Successful Launches – Big Bets for the Future Parachute Advansed Ayurvedic Oil (FY11) • No 4 player in Hair Fall solution • MS in South India: 31% (Exit Dec) • Large Category: INR 900 cr (USD 164 mn) • Robust Growth: CAGR of 48% from launch Body Lotion (FY12) • No 4 player: MS of 6% • Large Category
Slide 17: Recent Launches and Prototypes
Recent Launches and Prototypes Parachute Advansed Ayurvedic Gold Oil (Hair Fall Solution) - Different Formulation to suit the rest of India - Being Scaled up Nihar Naturals Sarson Kesh Tel (Mustard Hair Oil) - Large Loose Mustard Oil Market in North and East India - Benefits of Mustard Oil with bett
Slide 18: Strong Distribution Network (India)
Strong Distribution Network (India) • Indirect Reach: ~ 3.6 million outlets out of ~9 million outlets – Huge Headroom for growth • Direct Reach: Over 850,000 outlets - Initiatives in place to increase the reach – Project ONE – Targeting direct coverage increase in top 20 towns (Incremental Turnover
Slide 19: International Business
ing marico MALAYSIA VIETNAM MIDDLE EAST SOUTH AFRICA BANGLADESH International Business 17
Slide 20: Marico International
Marico International • Focus on : – Emerging markets of Asia & Africa – Nourishment and Grooming • Operates in Geographic hubs leading to supply chain and media synergies • Opportunities for expanding footprint – From Bangladesh, Malaysia, Vietnam to Rest of South East Asia – From GCC, Egypt to Nort
Slide 21: International Portfolio
International Portfolio Bangladesh Middle East Egypt Vietnam South Africa 45% 9% 8% 23% 8% Categories : Coconut Oil, Hair Categories : Categories: Categories : Nourishment, Coconut Oil, Hair Categories : Male Ethnic Hair Care, Colours, Male Nourishment Male Styling Grooming, OTC Health Care Grooming
Slide 22: International Strategy
International Strategy Bangladesh Middle East Egypt Vietnam South Africa 45% 9% 8% 23% 8% * Leverage * Grow core * Grow market in distribution * Gain back lost market male shampoo/shower * Build Scale in network share in hair oils, * Establish Value gels South Africa * Grow Value creams/gels Added H
Slide 23: Recent Launches - International
Recent Launches - International Marico Vietnam ⁻ New Variant in Shampoos - Cool Water ⁻ Innovation in Deodorants - New range of No-Gas Perfumed Body Spray - 1st No-gas Deo in Vietnam! Marico Myanmar ⁻ Sep-15 - ‘Parachute Advansed Hair Tonic’ launched ⁻ Cross-pollination opportunity in other markets
Slide 24: Recent Restages - International
Recent Restages - International Marico Middle East - Parachute Gold hair nourishment range ⁻ Value-added hair oils, creams, hammam zait & oil replacement ⁻ Targeted at the Arab consumers Marico Egypt – Hair Gels ⁻ New non-alcohol & nourishing formulation ⁻ includes benefit of Olive Oil ⁻ Refreshed c
Slide 25: Future Growth Strategy – India and International
Future Growth Strategy – India and International Strategy Opportunity Grow the Core by expanding the Coconut Oil in India & Bangladesh category where we are market leaders Saffola Oils, Gels & Serums in India Gain Market Share by leveraging Hair Code/Fiancee – hair gels/creams in Egypt Hair Oils in
Slide 26: Dividend Distribution & Cash Deployment
Dividend Distribution & Cash Deployment • Focus on maximization of shareholder value • Marico has been increasing its payout over the last couple of years with higher cash generation FY 2013 FY 2014 FY 2015 Dividend Payout Ratio 19% 24% 30% • Depending on M&A, dividend pay-out will be steadily incre
Slide 27: Disclaimer
Disclaimer This investor presentation has been prepared by Marico Limited (“Marico”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not
Slide 28: Thank You
ing marico Thank You
Slide 29: Exhibits
ing marico Exhibits
Slide 30: Exhibit 1: Financial Highlights
Exhibit 1: Financial Highlights Particulars (INR Crores) FY11 FY12 FY13 FY14 FY15 Revenue from Operations 3128 3980 4596 4,687 5,733 Profit Before Tax 376 400 552 695 822 Profit After Tax 286 317 396 485 573 EPS: (INR) 4.7 5.2 6.1 7.5 8.9 Book Value per Share (INR) 14.90 18.59 30.77 21.1 28.3 Net Wo
Slide 31: Exhibit 2: Awards and Accolades
Exhibit 2: Awards and Accolades • Marico is the best domestic company on Corporate Governance by Asiamoney’s Corporate Governance Poll 2015 • Marico ranked 4th in the Economic Times and Aon Hewitt Top Companies for Leaders India Study • Marico was featured in the list of ‘India’s Best Boards 2014’ b
Slide 32: Exhibit 3: Shareholding Pattern December 2015
Exhibit 3: Shareholding Pattern December 2015 30
Slide 33: Exhibit 4: Communication Protocol
Exhibit 4: Communication Protocol • One on one meetings with the Buy side and Sell side • Conferences and Non-Deal Roadshows • Marico Website • Annual Report • Latest Quarterly Updates • AGM Notice • Shareholding Pattern • http://www.marico.com/html/investor/overview.php • Quarterly Results • Inform