Slide 1: Investor Presentation November 2014
Investor Presentation November 2014
Slide 2: Forward-looking statements disclaimer
Some of the statements made in this presentation may look forward looking information that involves number of risks and uncertainties. Such statements are based on certain assumptions, estimates, projections or plans that are inherently subject to significant risks, uncertainties and contingencies t
Slide 3: Economy Overview
Economy Overview Q1FY15 GDP grew by 5.7%. Economy expected to grow at Quarterly GDP Growth 5.6% in FY15 & by 6.5% in FY16. Sub 5% growth reversing 6.0% 5.2% 5.7% 4.7% 4.6% 4.6% 4.0% WPI Inflation eases to a 5 year low at 2.4%. CPI Inflation 2.0% softened to a low of 6.5% in September. 0.0% Q1FY14 Q2
Slide 4: FMCG Sector: Long Term Growth Drivers
FMCG Sector: Long Term Growth Drivers Vast population of ~1.27 bn with an annual growth rate of ~1.58% providing a large consumption base with growing potential. Increase in Per Capita Income by 11.7%, reflecting higher purchasing capability. Rural comprises around 70% of the total population and 40
Slide 5: Company Overview
Company Overview Flagship company of the Established in 1974, the Category creator with a Emami Group, it is one of the Entered mainstream Company was promoted by differentiated niche leading and fastest growing categories to reach out to a Mr. R.S. Agarwal and Mr. R.S. positioning thereby gaining p
Slide 6: The Journey
The Journey ……….. and Handsome 6
Slide 7: Shareholding Pattern
Shareholding Pattern Listed on the NSE, BSE and Kolkata stock exchanges Others, FII’s & 8.46% MF’s, Market capitalization of over Rs. 180 bn (USD 2.9 bn) 18.80% Promoters, 72.74% Major Investors Smallcap World Others Fund Nearly 800% returns to investors Matthews following the QIP in July 2009
Slide 8: Board of Directors
Board of Directors S.N. Promoter Directors S.N. Independent Directors 1 Sri R. S. Agarwal 9 Sri K. N. Memani, ex-Country Head of EY, India 2 Sri R. S. Goenka 10 Sri Y. P. Trivedi, eminent tax expert & advocate, Rajya Sabha member 3 Sri S. K. Goenka 11 Sri P. K. Khaitan, Advocate & Sr. Partner of Kha
Slide 9: Professional Management Team
Professional Management Team Mr. Neeraj Mr. Ajith Babu Mrs. Punita Dr. C.K. Katiyar Chandra Narsimha Kalra CEO- Technical CEO- Consumer CEO- Health CEO- R&D and Health Care Care Division Care Division Innovation Division MD, Ayurveda & PGDM (IIM-A) PGDM (IIM -A) Gold Medallist in PhD - B.Tech (IIT)
Slide 10: Professional Management Team
Professional Management Team Mr. N.H. Mr. Shridhar Mr. Mohan Mr. K.S. Bhansali Panshikar Panchabhai Arunkumar CEO- Finance, President- Sales President- President- IT Strategy & (CCD) Operations Business Devp. and CFO M.Sc. (Statistics) M.S.- B.E.(Mechanical) & M.M.S Technological FCA (Marketing) Ope
Slide 11: Domestic Distribution Structure
Domestic Distribution Structure Factory Mother Depots Depots Distributors Modern Trade Stockist Rural Distributors Super Stockists Wholesalers Sub Stockists Retail Trade Rural Trade Shoppers and Consumers 11
Slide 12: Sales & Distribution
Sales & Distribution Initiated Secondary Sales Automation 3,000+ 229 Process- “Outreach” Distributors Super Stockists 950+ Installations 1,800 + 6500+ contributing Front line sales force Sub Stockists 85% of Sales. Intend to cover 100% by March’15 6.54 Lac Direct Retail Outlets To be Expanded to ~8
Slide 13: Snapshot of Major Brands
Snapshot of Major Brands Market Market Emami’s Market Share in Power Brand Segment Size Size % (INR in (USD in 2010 2014 Millions) Millions) Navratna Oil Cooling oil 8,500 140 49 61 Boroplus Cream Antiseptic Cr. 4,250 70 74 77 Zandu & Mentho Balm 6,900 114 57 60 Plus Balm Fair & Handsome Men's fairn
Slide 14: Low penetration ….Big opportunity
Low penetration ….Big opportunity 99% 99% 94% 91% 89% 81% 70% 43% 32% 26% 17% 10% 9% Toilet Soaps Washing Toothpaste/ Shampoo Hair Oil Detergent Fairness Talcum Balms Antiseptic Cooling Oil Cold Cream Facewash Powder Powder Bars Cream Powder Cream Low penetration of major segments indicates long ter
Slide 15: Celebrity Endorsements
Celebrity Endorsements wi,
Slide 16: 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 17: New Launches
New Launches Boroplus Facewash Fair & Handsome Instant Fairness Facewash 7 Oils in One Category Size Rs. 12.5 bn Category Size Rs. 1.2 bn Category Size Rs. 14 bn Growth Rate 19% Growth Rate 41% Growth Rate 13% Fair & Handsome Instant Fairness Not just another “me too” Light Launched Boroplus Facewas
Slide 18: New Launches
New Launches HE Deodorants Zandu Balm Ultra Power She Comfort Category Size Rs. 16.9 bn Category Size Rs. 21.1 bn Market Size Rs. 6.9 bn Growth Rate 11% Growth Rate 19% Growth Rate 2.4% Largest and fastest growing category in Zandu Balm Ultra Power is Forayed in the feminine hygiene category the mal
Slide 19: Navratna Oil
Navratna Oil Growing at CAGR of 11% in last 3 years Market Size INR 8500 mn Commissioned some of the most visible brand Market Share 61% ambassadors (Amitabh Bachchan, Shahrukh Khan, and Mahesh Babu, Chiranjeevi and Upendra for South) Navratna Brand has been ranked 3rd among India’s most trusted bra
Slide 20: Boroplus Antiseptic Cream
Boroplus Antiseptic Cream Largest selling antiseptic cream not only in India but also in Market Size INR 4,250 mn Ukraine, Russia and Nepal Market Share 77% Growing at CAGR of 12% in last 3 years Boroplus Brand ranked 18th among India’s most trusted brands in Personal care category by Brand Equity S
Slide 21: Fair & Handsome
Fair & Handsome Launched in October 2005; first fairness cream for Market Size INR 3400 mn men in India Market Share 64% Growing at CAGR of 19% in last 3 years Fair and Handsome ranked 22nd among India’s most trusted brands in Personal care category by Brand Equity Survey, 2014 Launched extension: F
Slide 22: Zandu Balm & Mentho Plus Balm
Zandu Balm & Mentho Plus Balm Zandu, a dominant player in pain management category Zandu Balm ranked 3rd among India’s most trusted brands in OTC Personal care category by Brand Equity Survey, 2014 Launched extension Zandu Balm Ultra Power a strong formulation fortified with potent ayurvedic ingredi
Slide 23: Zandu Sona Chandi & Kesari Jivan Chyawanprash
Zandu Sona Chandi & Kesari Jivan Chyawanprash “Himani Sona Chandi” rebranded as ‘Zandu Sona Chandi’ Market Size INR 3450mn Chyawanprash Market Share 10% Pt. Birju Maharaj & Milkha Singh roped in as Brand Ambassadors Immunity builder - Surakshit tan aur tez dimag 23
Slide 24: Navratna Cool Talc
Navratna Cool Talc An innovative launch in the talcum powder category; with Market Size INR 4250mn cooling properties. Market Share 26% Introduced attractive “twisted pack” CAGR of 20% over last 3 years. Brings the much-required cool & icy sensation in the scorching summers 24
Slide 25: Fast Relief
Fast Relief Brand revamped with enhanced formulation in new packaging as Himani Fast Relief ultra fast formula Market Size INR 10000 mn Market Share 4% Amitabh Bachchan is the Brand Ambassador Widely accepted in the states of Delhi, UP and Punjab Provides instant relief from backache, muscle pain an
Slide 26: Health Care Division
Health Care Division Indian Healthcare Opportunity Rise in chronic health issue due to unhealthy lifestyle Growing consciousness that health needs to be actively managed & diseases need to be prevented Increase in per-capita spends on healthcare. Higher income & willingness to spend on health Consum
Slide 27: Health Care Division
Health Care Division Leveraging the India Health Opportunity: Key health need areas identified Robust innovation funnel with breakthrough products in place Launch plan starting FY15 under Zandu brand 27 27
Slide 28: International Marketing Division
International Marketing Division Divided into four clusters, which are : Middle East, North Africa & Pakistan (MENAP), SAARC & South East Asia (SSEA), CIS and Eastern Europe (CISEE) and AFRICA Contributes around 12% of the total consolidated revenues. Presence in International Markets Poised to grow
Slide 29: International Marketing Division
International Marketing Division MENAP CISEE Growing aggressively at a 3 year CAGR of 39% Launch of new products are on track to boost Targeting Arab consumers alongwith Indian diaspora the sales. New product launch planned till with relevant products and increased media spends. 2016-17. Increased m
Slide 30: Operations
Operations 7 manufacturing facilities; 2 in Guwahati and 1 in Pantnagar, Uttaranchal enjoying fiscal benefits Set up first overseas manufacturing facility at Bangladesh Most of the facilities are cGMP and ISO 9000 compliant Units follow highest standards of safety and environment protection
Slide 31: Growing Robustly
Growing Robustly Revenues Rs. in crores PAT 2,000 1,821 500 1,699 402 1,454 400 1,500 1,247 315 1,022 300 259 1,000 229 200 170 500 100 - - 2009-10 2010-11 2011-12 2012-13 2013-14 2009-10 2010-11 2011-12 2012-13 2013-14 EBIDTA Market Capitalization 500 441 20,000 18,000 400 347 297 15,000 300 245 25
Slide 32: A&P Expenses as a % to sales
A&P Expenses Rs. in Million % to sales 3,000 20.0% 18.7% 17.6% 18.0% A&P Expenses as a % to sales 15.8% 2,500 16.0% 16.4% 15.2% 14.0% 2,000 Rs. in Mns. 2,774 12.0% 1,944 2,194 2,290 2,790 1,500 10.0% 8.0% 1,000 6.0% 4.0% 500 2.0% - 0.0% 2009-10 2010-11 2011-12 2012-13 2013-14 Over Rs. 1,100 cr inves
Slide 33: Dividend (%)
Dividend 900% Special Dividend 60.0% Dividend 54.4% 800% Payout 46.0% 50.0% 45.0% 700% 600% 400% 40.0% 31.3% 500% Dividend (%) Pay-Out (%) 27.0% 30.0% 400% 800% 700% 300% 20.0% 200% 400% 350% 300% 10.0% 100% 0% 0.0% 2009-10 2010-11 2011-12 2012-13 2013-14 Interim Dividend of 400% in Sep’14 33
Slide 34: Summarised Balance Sheet
Summarised Balance Sheet Rs. In Mn As at As at As at As at S.N. LIABILITIES 31.03.2014 31.03.2013 S.N. ASSETS 31.03.2014 30.13.2013 1 Shareholders Fund 9,321 7,775 1 Non-Current Assets 4,566 4,852 a. Share Capital 227 151 Net Fixed Assets 4,078 4,397 b. Reserves and Surplus 9,094 7,623 Godwill On Co
Slide 35: Key Highlights 2014
Key Highlights…….2014 Working Capital (holding period) Inventory : increased from 25 days to 28 days Debtors : reduced from 24 days to 16 days Payables : increased from 22 days to 29 days Net Working Capital reduced from 41 days to 29 days Net Cash of over Rs. 5,000 mn Current Ratio improved from 1.
Slide 36: H1FY15 Performance
H1FY15 Performance Q1 Q2 Rs in Mns. H1 H1 H1 23% 28% 16% 1,132 928 4,896 Q2 Q2 Q2 800 4,067 20% 873 30% 16% 4,817 Q1 Q1 Q1 750 606 708 3,837 26% 592 27% 17% H1FY14 H1FY15 H1FY14 H1FY15 H1FY14 H1FY15 SALES E B I D TA PAT 36
Slide 37: 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 120th among BT-500 Most Valuable Companies of India in private Sector (Business Today) Emami Limited won the ET Bengal Corporate Awards 2014 in the
Slide 38: Operations awards and accreditations
Operations BT Road unit received “Greentech Safety Award - 2014” in the Gold Category. Abhoypur unit also accredited with ISO 14001:2004 and ISO 18001:2007 accreditation signifying compliance with Environment management system and Occupational health and safety management system Abhoypur uni
Slide 39: 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 40: Thank you
Thank you Q emami Making people Healthy & Beautiful, Naturally Y 2d Navratna | {AIR AND EAISME ZANDU | FASTSRELIEF | mentwo ptus Thanda Thanda CoolCoc§ —_| World's No.1 Fairness Cream for Men Desh ka balm Dard mitaye chutki mein Ll | License to Bre a sormal Ble | Beleiorecing BOROPLUS India's No. 1