Marico Limited · NSE:MARICO
Marico — Investor Presentation (February 2019)
65 slides from Marico's investor presentation, February 2019
Slide 1: Investor Presentation February 2019
INVESTOR PRESENTATION February 2019
Slide 2: 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 3: Table of Contents
TABLE OF CONTENTS • Company Overview………………… 4 • Strategy Framework……………….. 14 • India Business…………………......... 17 • International Business……………... 31 • Key Areas of Transformation…........ 38 • Financial Highlights………………… 51 • Sustainability …………………......... 54 • Stock Information………………...... 61 • A
Slide 4: Company Overview
COMPANY OVERVIEW Investor Presentation | February 2019 4 < Previous | Next >
Slide 5: Marico at a Glance
MARICO AT A GLANCE One of India’s leading Consumer Products companies operating in the Beauty & Wellness space. 25+ Years $ 6.7 bn. 26% Operating since 1990 Market Capitalisation as on 31 January 2019 Total Shareholder Return CAGR since listing in 1996 15,750 INR 6,333 cr. INR 814 cr. ($ 982 mn.) ($
Slide 6: Interesting Facts
INTERESTING FACTS Parachute World’s largest coconut oil brand 2,348 >5,000 Population of towns Size of Company workforce largely covered by Marico’s distribution network 1 out of 10 Coconuts grown in India are used by Marico 50% 185+ million of our talent in consumer facing functions in Technology a
Slide 7: Milestones in Marico's Journey So Far
MILESTONES IN MARICO’S JOURNEY SO FAR Harsh Mariwala, a young Harsh discovers the Marico launches First overseas Nihar enters graduate, joins the family ubiquitous Parachute Hair & Care, non- manufacturing facility Marico’s fold business blue bottle sticky hair oil in Bangladesh 1971 1974 1980 1990
Slide 8: Portfolio: Beauty & Wellness
PORTFOLIO : BEAUTY & WELLNESS Coconut Oil Leave-in Hair Healthy Foods Male Grooming Nourishment • Parachute • Parachute Advansed • Saffola • Set Wet • Nihar Naturals • Nihar Naturals • Parachute Advansed • Oil of Malabar • Hair & Care Men • Livon Investor Presentation | February 2019 8 < Previous |
Slide 9: Geographical Presence
GEOGRAPHICAL PRESENCE Marico aspires to be a leading emerging MNC with a leadership position in the two core categories of Nourishment and Male Grooming in its chosen markets in Asia and Africa. South India Africa Middle South East & East Asia North Bangladesh Africa The Company also exports its pro
Slide 10: Board of Directors
BOARD OF DIRECTORS Mr. Harsh Mariwala Mr. Saugata Gupta Mr. Ananth Narayanan Chairman & Non-Executive Director Managing Director & CEO Additional (Independent) Director Mr. B. S. Nagesh Ms. Hema Ravichandar Mr. Nikhil Khattau Independent Director Independent Director Independent Director Mr. Rajeev
Slide 11: Management Team
MANAGEMENT TEAM Mr. Saugata Gupta Mr. Ashish Joshi Mr. Amit Prakash Mr. Gaurav Mediratta Managing Director & CEO Chief Operating Officer, SE Asia, Middle Chief Human Resources Executive Vice-President East & Africa Business Officer & Head - Legal Mr. Jitendra Mahajan Mr. Koshy George Mr. Sanjay Mish
Slide 12: Core Values
CORE VALUES Our value system in 3 simple words – “Make A Difference”. Boundarylessness Opportunity Innovation Transparency Consumer Bias For Excellence Global Seeking & Openness Centric Action Outlook Our values form the base of our unique culture and is the guiding force behind our actions. Investo
Slide 13: Living Marico's Purpose
LIVING MARICO’S PURPOSE “To transform in a sustainable manner, the lives of those we touch, by nurturing and empowering them to maximise their true potential.” CUSTOMERS SHAREHOLDERS SOCIETY MEMBERS BUSINESS ASSOCIATES Investor Presentation | February 2019 13 < Previous | Next >
Slide 14: Strategy Framework
STRATEGY FRAMEWORK Investor Presentation | February 2019 14 < Previous | Next >
Slide 15: Choice Making Framework - Where to Play
CHOICE MAKING FRAMEWORK - WHERE TO PLAY Per Capita Population Maturity Retail Income Emerging Economies with Large Young Population – Low Penetration in our chosen High Proportion of Traditional Lower but Fast Growing Per Demographic Dividend categories. Lower Intensity of Retail Capita Income Compe
Slide 16: Inorganic Growth Opportunities - Playbook
INORGANIC GROWTH OPPORTUNITIES - PLAYBOOK Key Attributes Select Hair Male Existing Markets in Categories Nourishment Grooming Markets Markets Asia and New Markets Africa o Market Leader Brand o Strong Distribution Past Acquisitions/Strategic Investments 2006 2007-08 Existing Markets o Helps Build Sc
Slide 17: India Business
INDIA BUSINESS Investor Presentation | February 2019 17 < Previous | Next >
Slide 18: Macro-Economic Overview
MACRO-ECONOMIC OVERVIEW o India remains the fastest growing economy in the world - economic fundamentals are strong, and reform momentum India is ranked 100 continues. India’s sovereign in World Bank’s credit rating Baa2 ‘Ease of Doing o India is estimated to surpass USA to become the 2nd largest wi
Slide 19: FMCG Sector Overview
FMCG SECTOR OVERVIEW o FMCG is the 4th largest sector in the Indian economy. o FMCG Sales in India - Household and Personal Care -> 50 % and Food and Beverages ->19%. Hair Care constitutes 23%. o Rural India accounted for 60 per cent of the total FMCG market in FY17. o Total rural income, which is c
Slide 20: India Business Overview
INDIA BUSINESS OVERVIEW India Business Revenue (in INR cr.) India Business EBITDA (in INR cr.) CAGR 10% CAGR 15% Share of Group Revenues 78% 2012 2018 2012 2018 MEDIUM TERM EXPECTATIONS Revenue Operating Volume Growth Growth Margins 13-15% 8-10% (depending on 20%+ levels inflation) Investor Presenta
Slide 21: Coconut Oil
COCONUT OIL Market : ~INR 55 bn* (~USD 775 mn) Only Player with Nation-wide Reach – Dominant Market Leader Parachute 50% Nihar 8% Oil of Malabar 1% Total Volume Share ~59% Parachute Nihar Oil of Malabar ~5% 30-35% ~44% Last 5 Year Volume CAGR Estimated % of the Market (in volumes) FY18 India in Para
Slide 22: Value Added Hair Oils (1/2)
VALUE ADDED HAIR OILS (1/2) Market : ~INR 78 bn (~USD 1.1 bn) 25% 26% 14% 2% 18% 15% Not present Light Hair Oils Amla Oils Value Added Cooling Oils Anti-Hair Fall Others Coconut Oils Likely Medium Term Volume Growth – Double Digit Likely to see sustained growth Market Leader in Hair Oils FY18 India
Slide 23: Value Added Hair Oils (2/2)
VALUE ADDED HAIR OILS (2/2) Belief in benefits of Leave-in v/s Rinse-off solutions Improves Reduces Reduces Softens Improves Thickness, Protein Breakage Hair Shine Strength And Loss Length Over the years, with economic growth, consumers have been upgrading Base Oils Better Sensorials Functional Bene
Slide 24: Healthy Foods - Saffola
HEALTHY FOODS - SAFFOLA Evolution from an edible oil brand to a leading healthy lifestyle brand o On the back of rising incomes and increasing relevance of healthy living ~20% FY18 India o Extension of brand equity into Healthy Foods for breakfast and in-between meals in 2010. now a Recently launche
Slide 25: Premium Hair Nourishment
PREMIUM HAIR NOURISHMENT Market : ~INR 1.1 bn (~USD 17 mn) Likely Medium Term Value Growth: Mid-Teens o Tail wind category with low penetration o Focus on driving category growth through ~76% Volume Market Share ~1 % innovation and consumer engagement Leader in Leave-in Hair Conditioners India Busin
Slide 26: Male Grooming
MALE GROOMING o Marico acquired Set Wet in May 2012 o Tail wind category with low penetration o Caters to millennials – therefore huge growth potential Hair Gels/ Creams Deodorants Market: INR 2.7 bn (~USD 42 mn) Market: INR 21.8 bn (~USD 338 mn) Likely Medium Term Value Growth: Mid-Teens Medium Ter
Slide 27: Strong Distribution Network
STRONG DISTRIBUTION NETWORK OVERALL REACH: 4.9 MILLION OUTLETS OUT OF 10.1 MILLION OUTLETS – HUGE HEADROOM FOR GROWTH Channel Split: Modern Trade (includes E-Commerce) has Urban – Rural Split : Rural sales up from 26% in FY10 to 32% in outpaced the other channels. E-Commerce, currently at ~1%, FY18.
Slide 28: Advertising: Crisp Messaging Through Popular Personalities
ADVERTISING : CRISP MESSAGING THROUGH POPULAR PERSONALITIES Investor Presentation | February 2019 28 < Previous | Next >
Slide 29: Brands with a Purpose
BRANDS WITH A PURPOSE o Nihar Shanti Amla “Chhote Kadam Pragati Ke Aur” o Saffolalife “Chhote Kadam – Dil ke Bade Kaam ke” o Promoting healthy recipes by engaging with the consumer via “Fitfoodie.com” Investor Presentation | February 2019 29 < Previous | Next >
Slide 30: India Strategy: Key Pillars
STRATEGY INDIA STRATEGY: 4 KEY PILLARS New Engines Grow the Core of Growth: Strengthen Drive ‘One Marico’ Execution Synergies by Portfolio Expansion Capabilities Leveraging in Existing and New Centers of Markets Excellence Investor Presentation | February 2019 30 < Previous | Next >
Slide 31: International Business
INTERNATIONAL BUSINESS Investor Presentation | February 2019 31 < Previous | Next >
Slide 32: Macro-Economic Overview
MACRO-ECONOMIC OVERVIEW BANGLADESH AND VIETNAM ON A FIRM FOOTING. HOPEFUL OF RECOVERY IN MENA AND SOUTH AFRICA. GDP Per Capita Projected Inflation Rate GDP Per Capita Projected Inflation Rate $1,083 $1,292 by 2020 5.6% $1,850 $2,091 by 2020 3.2% Bangladesh Vietnam 7.5 6.7 6.7 7 7.2 7.1 6.7 7 6.5 6.5
Slide 33: Marico International
MARICO INTERNATIONAL Share of International Business Revenues (%) International Business Revenues (in INR cr.) 1,345 1,356 1,364 1,284 FY10 53% 33% 11% 3% 1,168 1,008 FY18 45% 14% 9% 26% 6% Bangladesh MENA South Africa South East Asia Others FY13 FY14 FY15 FY16 FY17 FY18 MEDIUM TERM EXPECTATIONS Sha
Slide 34: International Portfolio
INTERNATIONAL PORTFOLIO Bangladesh Vietnam Middle East South Africa Egypt 45% 22% 10% 9% 4% Categories : Coconut Oil, Categories: Male Categories : Coconut Oil Categories : Ethnic Hair Categories : Male Styling Hair Nourishment, Hair Grooming & Foods & Hair Nourishment Care & OTC Health Care Colors
Slide 35: International Portfolio - Brands
INTERNATIONAL PORTFOLIO - BRANDS X-Men - Vietnam Thuan Phat - Vietnam Parachute Gold – Middle East & Egypt Parachute, VAHO and Hair Colours - Bangladesh Hair Code & Fiancee - Egypt Caivil, Black Chic, Hercules & Ingwe – South Africa Code 10 – Malaysia & Myanmar Investor Presentation | February 2019
Slide 36: Market-wise Focus Areas
MARKET-WISE FOCUS AREAS Bangladesh Vietnam Middle East South Africa Egypt 45% 22% 10% 9% 4% • Leverage distribution • Grow market in male • Gain back lost share in • Build Scale in South • Grow core market network shampoo/shower gels hair oils, creams/gels Africa • Establish Value Added Hair Oils •
Slide 37: International Strategy: Key Pillars
STRATEGY INTERNATIONAL STRATEGY: 3 KEY PILLARS Scale Up Male Drive ‘One Marico’ Build Execution Grooming and Synergies by Capabilities in Sales, Nourishment Leveraging Marketing and Platforms Centers of Excellence Supply Chain with Tight Cost Management Investor Presentation | February 2019 37 < Pre
Slide 38: Key Areas of Transformation
KEY AREAS OF TRANSFORMATION Investor Presentation | February 2019 38 < Previous | Next >
Slide 39: Key Areas of Transformation
KEY AREAS OF TRANSFORMATION INNOVATION GO TO MARKET TALENT VALUE IT & ANALYTICS VALUE STRATEGY PROPOSITION & MANAGEMENT CULTURE Investor Presentation | February 2019 39 < Previous | Next >
Slide 40: Innovation - Premiumise Within Core Hair Oils
INNOVATION – PREMIUMISE WITHIN CORE HAIR OILS Parachute Advansed Aloe Vera Enriched Coconut Hair Oil Nihar Naturals Extra Care Hairfall Control Oil Hair & Care Dry Fruit Oil Investor Presentation | February 2019 40 < Previous | Next >
Slide 41: Innovation - Building Categories of the Future
INNOVATION – BUILDING CATEGORIES OF THE FUTURE Premium Personal Care Healthy Foods Male Grooming Parachute Advansed Saffola FITTIFY Gourmet Set Wet Livon Coco Soul Set Wet Studio X True Roots Kaya Youth O2 Investor Presentation | February 2019 41 < Previous | Next >
Slide 42: Innovation - Premium Hair Care
INNOVATION – PREMIUM HAIR CARE Su stai n Hai r O il in g Hab it S o lu ti o n to Un me t Co nsu m er Ne ed s Address Varying Ne eds Livon Serum for Dry Livon Serum Pre-Wash Hair Nourisher and Unruly Hair Colour Protect True Roots Botanical Hair Tonic Intense Nourishment Serum Oil Livon Shake and Spr
Slide 43: Innovation - Premium Skin Care
INNOVATION – PREMIUM SKIN CARE Kaya Youth O2 Skin Care Range – Face Wash | Day Cream | Micellar Water | Face Wipes Investor Presentation | February 2019 43 < Previous | Next >
Slide 44: Innovation - Broaden and Scale-up of Healthy Foods Portfolio
INNOVATION – BROADEN AND SCALE-UP OF HEALTHY FOODS PORTFOLIO Green Coffee Moringa Green Tea (5 Flavours) (6 Flavours) Virgin Coconut Oil (including infused versions) Peanut Coconut Butter Coconut Sugar Coconut Spread Hi-Protein Slim Meal-Shake Hi-Protein Meal-Soup Coconut Chips (7 Flavours) (3 Flavo
Slide 45: Innovation - Extend into Complete Range in Male Grooming
INNOVATION – EXTEND INTO COMPLETE RANGE IN MALE GROOMING Set Wet Global Edition Set Wet Go Pocket Set Wet Studio X Range Perfume Sprays Perfume Spray Set Wet Waxes Investor Presentation | February 2019 45 < Previous | Next >
Slide 46: Innovation - Diversify Play in Key International Markets
INNOVATION – DIVERSIFY PLAY IN KEY INTERNATIONAL MARKETS Parachute Advansed Petroleum Jelly in Bangladesh ‘Parachute Just for Baby’ Baby Skin Care range in Bangladesh ‘Sedure’ Female Grooming range in Vietnam Investor Presentation | February 2019 46 < Previous | Next >
Slide 47: Go-to-Market: Building Future-Ready Distribution
GO-TO-MARKET : BUILDING FUTURE-READY DISTRIBUTION Leverage IT & Analytics • PDAs, ISRO, RETINA New-Age & Specialty Channels • Specialist GT, Modern Trade, E- Commerce Distribution Expansion • Direct Reach & Wholesale Investor Presentation | February 2019 47 < Previous | Next >
Slide 48: Talent Value Proposition & Culture
TALENT VALUE PROPOSITION & CULTURE Early Empowerment Tapping global resources for Learning & Development Young Board & Reverse Mentoring Deploying Artificial Intelligence Seeding “Engine 2” Investor Presentation | February 2019 48 < Previous | Next >
Slide 49: IT & Analytics
IT & ANALYTICS Digitize Operations AUTOMATION LISTEN ANALYTICS INTEGRATED CONSUMER REACH End EXPERIENCE Consumers SELL ENGAGE Innovate Business INNOVATE Models ~15% of Media Spends is now invested in the Digital Medium Investor Presentation | February 2019 49 < Previous | Next >
Slide 50: Value Management - A Virtuous Cycle
VALUE MANAGEMENT - A VIRTUOUS CYCLE MarVal Volume Value Based Growth Pricing ₹ Reinvest in Improve Spend S&M Efficiency Improve Gross Margins Investor Presentation | February 2019 50 < Previous | Next >
Slide 51: Financial Highlights
FINANCIAL HIGHLIGHTS Investor Presentation | February 2019 51 < Previous | Next >
Slide 52: 5 Years Trends
5 YEARS TRENDS Revenues & EBITDA Margin PAT & PAT Margin 13.5% 12.9% 19.5% 11.8% 17.5% 18.0% 16.0% 15.2% 10.4% 10.0% 4,687 5,733 6,024 5,936 6,333 485 573 711 799 814 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Revenue (in INR cr.) EBITDA Margin (%) PAT (in INR cr.) PAT Margin (%) Net Worth an
Slide 53: Dividend Payout & Cash Deployment
DIVIDEND PAYOUT & CASH DEPLOYMENT Focus on maximization of shareholder value Payout has been increasing over the years with higher cash generation FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Dividend Payout Ratio 19% 24% 30% 70% 64% 78% With focus on organic growth, dividend pay-out shall remain in 60
Slide 54: Sustainability
SUSTAINABILITY Investor Presentation | February 2019 54 < Previous | Next >
Slide 55: Key Focus Areas and 2022 Targets
KEY FOCUS AREAS AND 2022 TARGETS RESPONSIBLE RESOURCE PRODUCT RESPONSIBILITY CONSUMPTION • Ensure adherence to all consumer health and • Reduce energy intensity by 50% safety standards and compliance • Water Stewardship - Offsetting 100% of water consumed in operations CLIMATE CHANGE COMMUNITY DEVEL
Slide 56: Impact Till Date (1/4)
IMPACT TILL DATE (1/4) Marico’s environmental agenda is to achieve resource efficiencies and reduce the impact of our operations on the environment ENERGY EMISSIONS Achieved 31% reduction in 72% of total energy sourced in Achieved 54% reduction in GHG We account Scope I and II GHG Energy Intensity f
Slide 57: Impact Till Date (2/4)
IMPACT TILL DATE (2/4) WATER SUSTAINABLE PACKAGING We have adopted the 3R approach – Reduce, Recycle and Replenish • We have implemented plastic EPR action plan in-line with CPCB Marico has undertaken requirement. initiatives like construction of In FY2017-18, we offset 80% of • About 93% of plastic
Slide 58: Impact Till Date (3/4)
IMPACT TILL DATE (3/4) FARMERS MARICO INNOVATION FOUNDATION (MIF) Marico flagship program: Conducted 100+ farmer KALPAVRIKSHA launched in trainings and about 12,626 2017 – has improved coconut farmers enrolled under the MIF aims to nurture innovation MIF Scale Up program has tackled farmer’s yield b
Slide 59: Impact Till Date (4/4)
IMPACT TILL DATE (4/4) BRANDS WITH A PURPOSE EDUCATION “Saffolalife” continues with the vision of creating a Heart Healthy India. • We have touched the lives of nearly 200,000 consumers through “Nihar Mobile Pathshala” Nihar has contributed to the health check and awareness camps till date. houses q
Slide 60: External Ratings
EXTERNAL RATINGS Marico has been rated by MSCI ESG Ratings from 2015 onwards. Our 2018 rating stands at ‘A’. A BBB BBB BB 2015 2016 2017 2018 Marico has submitting its first Marico is preparing for Dow Jones response to CDP’s “Climate Change” Sustainability Indexes (DJSI) & “Water” 2018 questionnair
Slide 61: Stock Information
STOCK INFORMATION Investor Presentation | February 2019 61 < Previous | Next >
Slide 62: Stock Information
STOCK INFORMATION Top Institutional Shareholders Stock Data First State Investments Premji Invest Bloomberg Ticker MRCO IN EQUITY BSE Ticker 531642 Arisaig Partners BlackRock NSE Ticker Marico Morgan Stanley Investment Mgmt. Wellington Management Market Capitalization (INR Cr.) – January 2019 47,331
Slide 63: Awards & Accolades
AWARDS & ACCOLADES Investor Presentation | February 2019 63 < Previous | Next >
Slide 64: Awards & Accolades
AWARDS & ACCOLADES Featured among the Top 5 Companies in the Ranked 32nd in India's Best Companies Featured as one of the "Best S&P BSE 100 Index in Corporate Governance to Work For in 2018 Workplaces in Manufacturing 2019” Marico CQA Team received Special Recognized as one of the ‘Most Honored Reco
Slide 65: Marico Limited Investor Relations
MARICO LIMITED CIN - L15140MH1988PLC049208 7th Floor, Grande Palladium 175, CST Road, Kalina, Santa Cruz (East) Mumbai- 400 098 www.marico.com More Websites: www.artofoiling.com www.saffolalife.com www.hairsutras.com www.saffolafittify.com www.parachuteadvansed.com www.fitfoodie.in www.livonilovemyh