Slide 1: Marico - May 2015
marico make a difference May 2015
Slide 2: Marico: Snapshot
Marico : Snapshot Beauty & Wellness Solutions Hair Care, Health Care, Skin Care, Male Grooming A leading Indian MNC Group INR USD Market Capitalization 25,000 Cr 4.1 Billion Turnover FY 15 5,733 Cr 940 Million Profit FY 15 573 Cr 94 Million Turnover from overseas : 22% Sustained Profitable Growth Tu
Slide 3: Portfolio: Beauty & Wellness
Portfolio : Beauty & Wellness Hair Care Hair Nourishment Hair Colour Healthcare Healthy refined edible oils Functional Foods Male grooming/ styling Deodorants Hair Creams/Gels/Wax Skincare Body Lotion 2
Slide 4: Category Choice Making Framework
Category Choice Making Framework • Enter Categories/Segments with ‘Right to Win’ – Strong Brand, shared channel, shared consumer and shared supply chain • Developing & Emerging markets of Asia and Africa • Underpenetrated categories with potential to grow – Changing consumer habits or affluence • Wi
Slide 5: Focus on Growth
Focus on Growth • Prioritize volume growth (consumer franchise expansion) over short term profit – Emerging markets with low/moderate penetration – Maintain unit gross margin within a band • Re-invest profits to reinforce established brands and build new growth engines for the future – Prototyping :
Slide 6: Inorganic Growth
Inorganic Growth • Focused on hair care, skin care and health care in India – International : primarily hair care, skin care and male grooming • Internationally focused on developing markets in Asia and Africa • Provides opportunity to enter a new market – New category in a core market – Achieve sca
Slide 7: Market Leadership: Key to Category Choice
Market Leadership: Key to Category Choice Penetr Indicative Market Brand Category Rank ation Share (%) # Level Parachute/Nihar Coconut Oil (India) ~ 57% 1 High Parachute Coconut Oil (Bangladesh) ~ 81% 1 High Super Premium Refined Edible Saffola ~ 58% 1 Low Oils (India) Saffola Oats (India) ~ 21%* 2
Slide 8: Coconut Oil
Coconut Oil The only Company with a national presence in INR 45 bn (~USD 738 mio) branded CNO market Volume Market Share Parachute 47% Nihar 8% 35-40% market (by volume) Oil of Malabar 2% estimated to be in loose form Total 57% 5 yr volume CAGR in Parachute rigid packs ~8% Headroom for growth Conver
Slide 9: Hair Oils
Hair Oils Value Added Hair Oils Market : INR 58 bn (~USD 950 mio) Value Added Light Hair Oils Amla Oils Cooling Oils Anti-Hair Fall Others Coconut Oils 25% 25% 16% 13% 4% 17% Category Play : Significant participation in most key sub-segments • Marico’s Volume Market Share in Hair Oil Market ~ 29% •
Slide 10: Hair Oiling Category
Hair Oiling Category • Likely to see sustained growth – Category growth one of the fastest 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 – Stress management – Reduc
Slide 11: 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 (58% Volume Market Share) Entry into breakfast cereals market in 2010 (Plain oats and
Slide 12: 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/C
Slide 13: Recent Launches
Recent Launches Body Lotion (FY12) • Market Size : INR 1000 cr (USD 164 mn) • Market Growth Rate : ~10% • Marico Market Share : ~6% • No. 3 position Oats (FY13) • Market Size : INR 250 cr (USD 40 mn) • Market Growth Rate : ~15% • Marico Market Share : ~21% • No. 2 position Livon Moroccan Silk Serum
Slide 14: Strong Distribution Network (India)
Strong Distribution Network (India) • Direct Reach: Over 850,000 outlets 67% 33% • Indirect Reach: ~ 3.6 million outlets Revenue Revenue Urban Rural Leveraged Modern Trade Channel to drive urban growth • 7% of India sales comes from modern trade GTM Transformation initiatives planned Leveraged techn
Slide 15: 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 NA R
Slide 16: International Portfolio
International Portfolio Bangladesh Middle East Egypt Vietnam South Africa 45% 9% 8% 23% 8% Categories : Coconut Oil, Value Categories : Categories : Categories: Added Hair Oils, Categories : Hair Dyes, Coconut Oil, Hair Hair Male Ethnic Hair Care, Oils, Hair Grooming, Deodorants, Edible Creams/Gels
Slide 17: International Strategy
International Strategy Bangladesh Middle East Egypt Vietnam South Africa 45% 9% 8% 23% 8% * Leverage * Grow core market * Grow market in distribution male network * Gain back lost * Establish Value shampoo/shower * Build Scale in share in hair oils, * Grow Value Added Hair Oils gels SA creams/gels A
Slide 18: Future Growth Strategy
Future Growth Strategy • Expand Markets where we have significant leadership – Parachute coconut oil in India and Bangladesh – Saffola – Premium healthy refined edible oil – Hair Code/Fiancee – hair gels/creams in Egypt – Livon Serum in India • Increase Share in other categories – Hair Oils in India
Slide 19: 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, increased dividend in FY15 to 250% (Rs.2.50 per share) – Payout : 30% • Could increase payout further if there are
Slide 20: Financial Highlights
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 Worth 915 1,1
Slide 21: The Most Awarded FMCG
The Most Awarded FMCG • 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’ by Economic Times & Hay Group • Marico Bangladesh received Best Corporate Award 2014 under Multinational Category by In
Slide 22: Shareholding Pattern as on March'15
Shareholding Pattern as on March’15 21
Slide 23: Investor Relations Communications
Investor Relations Communications • One on one meetings with the Buy side and Sell side • Marico Website • Annual Report • Latest Quarterly Updates • AGM Notice • Shareholding Pattern • http://www.marico.com/html/investor/overview.php • Quarterly Results • Information Update • Media Release • Earnin
Slide 24: 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 25: Thank You
Thank You