Slide 1: Company Overview
@ emami limited Making people healthy & beautiful, naturally Company Overview May 2018 AIR AND Pee ‘fs meNTHO 3 / ANDSOM iii. PLUS ! Navratna E / ZANDU E i : =
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: Contents
Contents 1. Economy Overview………………………………………….. 03 2. Company Overview………………………………………….. 07 3. Brand Overview…………………………………………………. 14 4. International Business Overview……………….. 24 5. Business Overview………………………………………….... 28 6. Sustainability Initiatives………………………………….. 40 7. CSR Initiatives………………………………
Slide 4: Economy & Sector Overview
Economy & Sector Overview 3
Slide 5: Economy Overview
Economy Overview One of the fastest growing economies, India’s India’s “Ease of doing Business” Real GDP is poised to grow by 7.4% in 2018. ranking improves significantly in 2018. World Real GDP India Real GDP Ease of Doing Business - India Ranking 8.5% 7.9% 142 131 7.8% 130 7.1% 7.4% 6.7% 100 3.8%
Slide 6: FMCG Sector Overview
FMCG Sector Overview Indian FMCG Sector is Higher incomes to aid growth. Low penetration levels expected to grow at a India’s Per Capita Income has indicate long term CAGR of 20.6% by 2020 grown at a 5 yr CAGR of 10.2% growth story Size of the Indian FMCG Sector India's Per Capita Income (₹ in lacs)
Slide 7: Key Growth Drivers
Key Growth Drivers Climbing up the ladder - Per Bigger population, stronger Capita Income to grow 5x in 2 01 income and higher demand decades to ₹ 2.7 lacs by 2030 02 Increasing Premiumisation 1% 1% 3% 6% 25% Emergence of Male 03 46% Grooming Segment Increased acceptance 93% 04 of Ayurveda 74% 51% E
Slide 8: Company Overview
Company Overview 7
Slide 9: Key Facts
Key Facts Flagship More than 120 products sold every second 46x returns company of the since Public Issue* Emami Group across the globe 5 Power brands with market Reach in 4 mn + leadership Retail Outlets Established in 1974. Promoted by Presence in 60+ Market Cap of more Mr. R.S. Agarwal & Countrie
Slide 10: Business Highlights
Business Highlights Revenue Split One of the fastest growing personal and healthcare businesses in India- CSD • Revenues growing at a 10 year CAGR of 17%. 4% • EBIDTA growing at a 10 year CAGR of 22%. Int'l Business 11% • Cash Profits growing at a 10 year CAGR of 20%. Superior gross margins in t
Slide 11: The Journey
The Journey Acquired Himani Ltd Launched BoroPlus Antiseptic Cream Launched Navratna Oil Emami started with a meagre capital Listed on BSE Issued 1:1 Bonus. Stock Split from ₹ 10 to ₹ 2/- Public issue of 50 Lac shares Listed on NSE Launched Fair & Handsome Strategic Investments in “The Launched Man
Slide 12: Ownership Structure
Ownership Structure As on 31st March 2018 Shareholding Breakup Major FII’s & MF’s Matthews Aberdeen FII & MF's 18.8% Nomura BMO Others 8.5% Others Birla Sunlife Promoters 72.7% Jo Hambro F&C Management Vanguard Capital World Mondrian 11
Slide 13: Board of Directors
Board of Directors Promoter Directors Mr. R.S. Agarwal Mr. R.S. Goenka Mr. S.K Goenka Mr. Mohan Goenka Mr. A.V. Agarwal Mr. H.V. Agarwal Ms. Priti A Sureka Mr. Prashant Goenka Executive Chairman Whole Time Director Managing Director Whole Time Director Non Executive Director Whole Time Director Whol
Slide 14: Returns to Investors
Returns to Investors As on 31st March 2018 24,470x 45.9x 10.4x QIP Public Issue Maiden Issue 2009 2005 1980 13
Slide 15: Brand Overview
Brand Overview 14
Slide 16: Snapshot of Major Brands
Snapshot of Major Brands ₹ 600 cr + ₹ 400 cr + ₹ 200 cr + Therapeutic Cooling Oils & Cool Talc Antiseptic Creams, Body Lotion, Fairness Cream and Prickly Heat Power & Face Wash Facewash for Men ₹ 500 cr + ₹ 100 cr + Ayurvedic Hair and Scalp Balms & Ayurvedic Pain Balm care Healthcare Products New Br
Slide 17: Snapshot of Major Brands
Snapshot of Major Brands Market Size Market Size Market Share (%) Brands Segment (₹ in bn.) ($ in mn.) 2013 2018 Navratna Oil Cooling oil 9.3 142.9 55% 64% BoroPlus Cream Antiseptic Cream 5.6 85.3 74% 74% Zandu & Mentho Plus Balms 9.0 139.0 58% 54% Fair & Handsome Men's Fairness Cream 3.9 59.2 58% 6
Slide 18: Navratna
Navratna Brand Snapshot Product Portfolio Navratna Cool Oil - India’s No. 1 Therapeutic Cool Oil Penetration 16% (Cool Oils) levels 41% (Talcum Powder) Navratna Extra Thanda Cool Oil - With extra cooling effect those Endorsed by Amitabh Bachchan, consumers who prefer to have a stronger experienc
Slide 19: BoroPlus
BoroPlus Brand Snapshot Product Portfolio Penetration 27% (Antiseptic Cream) BoroPlus Antiseptic Cream- Largest selling antiseptic cream levels 41% (Talcum Powder) 8% (Facewash) not only in India but also in Ukraine, Russia and Nepal. Endorsed by Amitabh Bachchan, BoroPlus Total Results Moisturi
Slide 20: Pain Management Range
Pain Management Range Brand Snapshot Product Portfolio Penetration 29% (Balms) Zandu Balm- Largest selling balm in the world. levels Most Trusted Ranked among India’s most Zandu Balm Ultra Power- Safe & effective remedy for severe Brand trusted brands by Brand pain and aches.. Equity Survey, 201
Slide 21: Male Grooming Range
Male Grooming Range Brand Snapshot Product Portfolio Penetration 4% (Men’s Fairness Cream) Fair and Handsome Fairness Cream- A category creator in the male levels 8% (Deodorants) grooming space in India. Endorsed by Shah Rukh Khan, Hrithik Roshan Fair and Handsome Laser 12 Advanced Whitening- An
Slide 22: Kesh King
Kesh King Brand Snapshot Product Portfolio Penetration 9% (Ayurvedic Medicinal Oil) Kesh King Ayurvedic Medicinal Oil- Proprietary levels medicinal preparation offering a complete solution for Formulation Prepared using Tel Pak Vidhi & hair related problems especially hair fall. enhanced formulati
Slide 23: Healthcare Range
Healthcare Range Brand Snapshot Major products Leveraging Extending the goodness of Digestives & Laxatives- Zandu Pancharishtha, Zandu Nityam the Indian Ayurveda in scientifically- Churna & Tablets. Healthcare proven effective products by Opportunity providing long-term relief Immunity & Lifesty
Slide 24: Other Brands
Other Brands 7 Oils in One - Launched in April 2014, it combines 7 different types of oils - almond, coconut, Amla, argan, olive, walnut and jojoba offering an expert formulation for damage repair and give superior nourishment. Endorsed by Bollywood actress Yami Gautam. Diamond Shine Luxury Crèm
Slide 25: International Business Overview
International Business Overview 24
Slide 26: International Presence
International Presence Cluster Wise Revenue Contribution Presence in CIS 60+ Countries OTHERS 2% AFRICA 9% MENAP CIS 13% SAARC & SEA SAARC 47% MENAP 29% AFRICA SEA SAARC South Asian Association for Regional Cooperation (Major countries – Bangladesh, Nepal, Sri Lanka etc.) SEA South East Asia (Major
Slide 27: International Brand Portfolio
International Brand Portfolio Leadership in International Markets #1 Cooling Oil in Bangladesh, UAE and Saudi Arabia International Sales grew by #1 Antiseptic & Healing topical Cream in Russia 3.2x #1 Men’s Fairness Cream in UAE in 10 years #2 Men’s Fairness Cream in Saudi Arabia & Bangladesh 26
Slide 28: International Business
International Business MENAP SAARC CIS AFRICA • Targeting Arab • Having its own • Launch of new • Huge potential and consumers along manufacturing products are on special focus given with Indian unit in Bangladesh track to boost the to grow the brands diaspora with and a 3P unit in Sri sales. in the
Slide 29: Business Overview
Business Overview 28
Slide 30: Domestic Footprint
Domestic Footprint Increased Direct Reach by 2.1 lac Domestic Reach outlets in last 2 years Outlets in Lacs ~3,150 2,700+ Distributors Sales Force 8.5 7.3 6.3 6.4 6.4 250+ 8.5 lac + 6.0 Super Stockists Direct Retail reach 5.0 6,500+ 4.3 mn Sub Stockists Indirect Reach FY12 FY14 FY16 FY18 29
Slide 31: Domestic Distribution Network
Domestic Distribution Network Factory Region wise Sales Split Mother Depots Depots South 20% North 32% Modern Trade Rural Super Distributors Stockist Distributors Stockists West 29% Sub East Wholesalers Stockists 19% Retail Trade Rural Trade 30
Slide 32: Operations
Operations Fiscal Benefits Key Recognitions 3 units in Guwahati and 1 Uttaranchal enjoying fiscal benefits Abhoypur unit accredited with ISO 14001:2004 and ISO 18001:2007 Best in Class accreditation Most of the facilities are cGMP and ISO 9000 compliant and follow Received “Health & Safety awards” h
Slide 33: Operations
Operations Manufacturing Units Domestic International Business Business Amingaon, BT Road, Guwahati Kolkata Abhoypur, Dongari, Guwahati Maharashtra Pacharia Unit Pantnagar, Gazipur Uttarakhand Bangladesh Pacharia, Guwahati Vapi, Gujarat Abhoypur Unit BT Road Unit Masat, 32 Silvassa
Slide 34: Research & Development
Research & Development Focus: Product innovation, product differentiation, cost control and maintaining excellent product quality Advisory panel Team comprises qualified comprising top Ayurvedic Ayurvedacharyas and specialized experts Ayurveda scientists; Set up a 30,000 sq. ft. State- A modern full
Slide 35: Research & Development
Research & Development Sustained Investments Emami Limited was the proud recipient of the in Research & Development “Golden Peacock Innovation Management Award” for the year 2016 in the FMCG Sector. INR in Mns 231.0 234.2 216.8 222.0 163.0 FY14 FY16 FY18 34
Slide 36: A&P Spends
A&P Spends ₹ in Mns % of Sales 5,000 18.5% 20.0% 18.0% 17.5% 4,500 18.0% 15.9% 4,696 4,000 4,428 16.0% 14.7% 4,305 3,500 14.0% More than 3,000 3,292 12.0% ₹19 bn 2,500 10.0% invested in 2,000 2,547 8.0% A&P in last 5 1,500 6.0% years 1,000 4.0% 500 2.0% 0 0.0% FY14 FY15 FY16 FY17 FY18 35
Slide 37: Celebrity Endorsements
Celebrity Endorsements Emami is a pioneer in engaging celebrities to endorse its brands. These comprise renowned names from India’s film industry, sportspersons and performing artists. Emami has more than 60 celebrities associated with its brands. Every year, Emami invests ₹ 50-150 mn to engage new
Slide 38: Growing Robustly
Growing Robustly ₹ in Millions Revenues* grew by EBIDTA grew by Cash Profits** grew by 3.6x in last 10 years. 5.6x in last 10 years. 6.1x in last 10 years 7,194 6,180 25,058 6,903 1,295 1,006 FY09 FY18 FY09 FY18 FY09 FY18 *Adjusted for Ind AS & GST **Cash Profit = PAT + Depreciation & Amortization 3
Slide 39: Dividend History
Dividend History Special Dividend Dividend Payout(%) 900% 60% 54% 800% 46% 50% 700% 45% 46% Dividend (%) Pay-Out (%) 600% 400% 39% 40% 500% 31% 27% 31% 31% 30% 29% 400% 800% 700% 700% 700% 700% 700% 300% 20% 200% 400% 350% 300% 10% 100% 225% 0% 0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16* FY17* FY18*
Slide 40: Summarized Balance Sheet
Summarized Balance Sheet ₹ in Millions As at As at As at As at SL. EQUITY AND LIABILITIES SL. ASSETS 31.03.2018 31.03.2017 31.03.2018 31.03.2017 Equity 1 Non -Current Assets (a) Equity Share capital 227 227 (a) Property, Plant and Equipment 7,446 6,966 (b) Other Equity 19,909 17,320 (b) Capital work
Slide 41: Key Sustainability Initiatives
Key Sustainability Initiatives Minimising Fossil Fuel Usage Reduction in usage of Plastics Initiated use of renewable energy sources Reduced plastic usage by adopting paper tray and energy efficient techniques to minimize technology, foil modification, PVC film fossil fuel usage. modification and Co
Slide 42: CSR Initiatives
CSR Initiatives Enhancing Promoting Vocational Skills Education Promoting Social Upliftment Healthcare Programs Providing Clean Sanitation facilities Water in rural areas More than ₹ 380 mn contributed towards CSR initiatives in the last 5 years 41
Slide 43: Major Awards & Rankings
Major Awards & Rankings Awarded by the Economic Times Bengal Corporate Awards for its ‘Best Financial performance - 2018’ Ranked Awarded the 97th among top “Golden Peacock 500 companies by Innovation Business Today in Management its BT500 rankings Award” for the year in 2017 2016 in the FMCG Sector
Slide 44: Ratings & Accreditations
Ratings & Accreditations Accreditations Credit Ratings Internal Audit Division accredited with ISO 9001:2008 certification. AA+ ratings for long/ short- term bank facilities and A1+ for short-term debt by CRISIL signifying high levels of safety. Abhoypur unit Enterprise accredited Risk with ISO Mana
Slide 45: Key Investment Highlights
Key Investment Highlights Niche category player + innovator – in Therapeutic and Ayurvedic segment Strong entry Production from barriers for the tax free zones competition Key brands are Superior gross strong market margins in the leaders in their industry respective categories Focus on each Brand w
Slide 46: Thank you
Thank you Contact us Emami Limited Contact - +91-33-66136264 Emami Tower Fax - +91-33-66136600 687, Anandapur, E.M. Bypass Email- investors@emamigroup.com Kolkata, 700107, West Bengal, India Website- www.emamiltd.in