Dabur India Limited · NSE:DABUR
Dabur India — UBS India CEO/CFO Forum 2012
29 slides from Dabur India's conference presentation, September 2012
Slide 1: UBS India CEO/CFO Forum
DABUR INDIA LIMITED UBS India CEO/CFO Forum Mumbai, September 2012
Slide 2: Indian Economy
Indian Economy Real GDP Growth Rate – YoY (%) Gross National Disposable Income (Per Capita) in Rs. ‘000 10.0% 9.3% 8.4% 8. % 8.4% 8. % 80.0 75.4 66 1 66.1 8.0% 6.7% 6.5% 70.0 57.0 60.0 6.0% 50.0 4.0% 40.0 30.0 2.0% 20.0 0.0% 10.0 FY08 FY09 FY10 FY11 FY12 0.0 FY10 FY11 FY12 Source: CSO estimates Sour
Slide 3: FMCG Sector Overview
FMCG Sector Overview FMCG Industry Size (in Rs. bn) FMCG Industry Urban (in Rs. bn) FMCG Industry Rural (in Rs. bn) 2,000 1,800 1 807 1,807 1,400 800 1,600 1,566 1,201 700 606 1,200 1,400 1,040 600 526 1,000 1,200 500 1,000 800 400 800 600 300 600 400 200 400 200 100 200 0 0 0 MAT Jun '11 MAT Jun '1
Slide 4: FMCG Industry Growth Drivers
FMCG Industry Growth Drivers Shift from Rise in per Increase in Rural unorganised to capita category penetration Consumption organised consumption • Category • Driven by a • Evidenced by • Level of per capita penetration combination of growth in hair oils increase in continues to be increasing incom
Slide 5: Rural Growth
Rural Growth Rural India Contributes to a third of the FMCG FMCG Growth Urban v/s Rural sector in India Rural consumers’ wallet has expanded driven by factors such higher MSPs (Minimum Support Prices) for agricultural produce, loan waivers and employment guarantee schemes Aspiration levels con
Slide 6: Category Penetration Levels
Category Penetration Levels Rural Penetration Urban Penetration 90% 80% 80% 77% 70% 67% 57% 59% 60% 50% 42% 40% 37% 32% 30% 26% 18% 18% 19% 20% 10% 3% 5% 4% 2% 0% Toothpaste Shampoo Hair Oil Skin Cream Mosquito Instant Hair Dyes Floor Cleaners Repellants Noodles Source: Industry data Low penetrati
Slide 7: Per Capita Consumption
Per Capita Consumption Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) 9 3 2.7 7.4 7.7 8 2.5 2.4 7 6 2 5 1.1 1.5 4 3.2 1.0 3 1 2 0.8 0.5 0.3 1 0.3 0 0 China Indonesia India Malaysia Thailand China Indonesia India Malaysia Thailand Toothpaste – Per Capita Consump
Slide 8: Dabur Overview
Dabur Overview Established in 1884 - more than 125 Twelve Billion Rupee Brands Years of Trust & Excellence Among top 4 FMCG companies in India World’s largest in Ayurveda and natural healthcare Revenue of Rs. 53.2 billion and profits of Rs. 6.4 6 billion b ll in FY2011-12 20 2 Strong brand
Slide 9: Performance at a Glance (5 years)
Performance at a Glance (5 years) Net Sales (Rs.Sales billion) Net Profit (Rs. billion) 6.5 52.8 5.7 5.0 40.8 33.9 3.9 28.1 3.3 23.6 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 EBITDA (Rs. billion) Shareholders Funds (Rs. billion) 9.5 8.3 17.2 6.7 13.9 5.2 44 4.4 9.3 8.2 6.2 FY08 FY09 FY10 FY1
Slide 10: Global Footprint
Global Footprint UK Turkey y Canada Nepal UAE U.S. Egypt B’Desh Nigeria Domestic Mfg. Locations Key markets Manufacturing Facilities Our strategy is to localize manufacturing, manufacturing supply chain and product offerings to suit consumer requirements in each geography 10
Slide 11: Distribution Overview
Distribution Overview Factory Depot (Carry & Forward Agents) Stockists Super stockists Insti Stockists Modern Trade Military / CSD Stockist Wholesalers Sub stockists Retail trade R Rural l ttrade d Unit Canteens Insti customers Direct reach Shoppers & Consumers 0.7 Mln outlets Direct + Indirect Reac
Slide 12: Presence in FMCG Categories
Presence in FMCG Categories Category Position Market Share Key Brands Dabur Amla hair Oil, Vatika hair oil & Hair Care 3 12% V tik Shampoos Vatika Sh Red toothpaste, Babool, Meswak, Red Oral Care 3 13% toothpowder Ayurvedic 1 67% Dabur Chyawanprash Tonics Digestives 1 56% Hajmola Fruit Juices 1 52%
Slide 13: Business Structure
Business Structure Dabur India Li it d Limited Domestic Business International (69.7%) Business (30.3%) Consumer Dabur Hobi Namaste Foods Retail Others* Care International Group Labs. LLC (10.1%) (0.8%) (2.7%) (56.0%) (17.5%) (2.6%) (10.3%) Note: % figure in brackets indicate % share in Consolidated
Slide 14: Consumer Care Overview
Consumer Care Overview Category‐wise Share of Consumer Care Sales Health Oral Care Supplements 17% 21% Skin Care 6% Digestives Home Care 8% 6% OTC & Ethicals Hair Care 12% 30% Hair Care is the largest category and contributes to 30% of Consumer Care sales Health H lth Supplements S l t contribut
Slide 15: Consumer Care Categories: Hair Oils and Shampoo
Consumer Care Categories Hair Oils Key Brands #2 player in Hair Oils Vatika: Value added Dabur Amla: Largest coconut oil brand in the portfolio Shampoo Key Brands #4 player l in i Shampoos Vatika range of shampoos 15
Slide 16: Consumer Care Categories: Oral Care and Skin Care
Consumer Care Categories Oral Care Key Brands #3 player in Toothpastes #2 player in Dabur Red: Ayurvedic Meswak: Premium Toothpowder Toothpaste & Toothpowder Babool: Herbal toothpaste for economy herbal toothpaste segment Skin Care Key Brands #2 player in Ski Skin Lightening Gulabari range of rose U
Slide 17: Consumer Care Categories: Health Supplements and Digestives
Consumer Care Categories Health Supplements Key Brands #1 p player y in Ayurvedic Tonics #2 player in Glucose #1 player in Dabur Chyawanprash: Dabur Glucose: Dabur Honey: Largest Largest selling health 2nd largest player branded honey in the branded Honey supplement in the in the country country cou
Slide 18: Consumer Care Categories: Home Care
Consumer Care Categories Home Care Key Brands #1 player in Air Fresheners #1 player in Mosquito Repellant Creams Odonil: Air freshner Odomos: Mosquito Sanifresh: #2 player in Toilet range repellant skin cream Toilet cleaner Cleaners Odonil became one of the Billion Rupee Brands during 2011-12 18
Slide 19: Consumer Care Categories: OTC and Ethicals
Consumer Care Categories OTC and d Ethicals Ethi l Description CHD Structure Repository of Dabur’s Ayurvedic Healthcare knowledge Range of over 260 products Focusing on multiple therapeutic areas. OTC (64%) ETHICAL (36%) Distribution coverage of 200,000 chemists, Generics Tonic ~12,000 v
Slide 20: Foods Business
Foods Business Foods portfolio comprises Fruit Juices and Culinary range Fruit Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Foods business has surpassed the Rs. 5 billion mark in sales during FY2011-12 Foods Key Brands #1 player in Fruit Juices R
Slide 21: Sales & Distribution Initiatives
Sales & Distribution Initiatives Project SPEED Distribution structure re‐organised during 2011‐12 to build scale and maintain focus on 3 specialized categories : Health care, Home and Personal care, Foods Project j completed p byy October 2011 – Distributor count rationalized to 3,600 as compare
Slide 22: International Business
International Business Started as an Set up a franchisee at Acquired & renamed franchisee as Building scale- scale c. c 30% of Exporter Dubai in 1989 Dabur International Ltd Consol. Sales Focus on Order Demand generation Local operations further strengthened High Levels of Localizati
Slide 23: Africa and Middle East Potential
Africa and Middle East Potential Real GDP Growth Rates (YoY) in % Africa’s Bulging Base Source: IMF Source: McKinsey on Africa Africa, June 2010 Middle East and Africa have witnessed stable GDP growth rates Total GDP of African economies is around US$ 1 trillion i.e. similar to India Between B
Slide 24: Our Strategy
Our Strategy Three pronged Growth Strategy Expand Innovate Acquire Our differentiation is the herbal and ayurvedic platform E Expand d Strengthening presence in existing categories and markets as well entering new geographies Maintain dominant share in categories where we are category builders l
Slide 25: Recent Performance: Q1 FY2012-13
Recent Performance: Q1 FY2012-13 16000 14,620 Consolidated Sales grew by 21.4% during 14000 12,046 12000 Q1FY13 10000 Revenue 8000 Sales growth was a combination of volume ( Rs. mn)) (in 6000 growth growth, price increases and marginal 4000 2000 translation gains 0 Q1 FY12 Q1 FY13 3,000 EBITDA
Slide 26: Market Cap & Shareholding
Market Cap & Shareholding Cumulative Returns to Shareholders^ Shareholding Structure* 250% Others, Others 200% 188% 193% DIIs, 6.7% 6.9% 166% FIIs, 17.7% 150% 100% 59% Promoters, 50% 68.7% 0% Jun 09 Jun‐09 Jun 10 Jun‐10 Jun 11 Jun‐11 Jun 12 Jun‐12 ^Based on an investment made in June 2008 *As on Jun
Slide 27: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L Q1FY13 Q1FY12 YoY (%) FY12 FY11 YoY (%) Net Sales 14,619.7 12,045.8 21.4% 52,831.7 40,774.3 29.6% Other Operating Income 97.3 65.0 222.5 270.8 Material Cost , 7,316.4 6,289.8 , 16.3% 26,851.8 , 19,375.1 , 38.6% % of Sales 50.0% 52.2% 50.8% 47.5% Employee Costs
Slide 28: Consol. Statement of Assets & Liabilities
Consol. Statement of Assets & Liabilities As at As at In Rs. mn (Period ended) 30/06/2012 (previous year end) 31/03/2012 A EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1,743 1,742 (b) Reserves and surplus 16,708 15,427 (c) Money received against share warrants Sub-total - Sharehold
Slide 29: Disclaimer
Disclaimer Some of the statements made in this presentation contain forward looking information that involve a number of risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncerta