Dabur India Limited · NSE:DABUR
Dabur India — 19th Merrill Lynch India Investor Conference 2015
28 slides from Dabur India's conference presentation, March 2015
Slide 1: Dabur India Ltd Investor Presentation March'15
DABUR INDIA LTD INVESTOR PRESENTATION March’15 1
Slide 2: Indian Economy
Indian Economy Real GDP Growth Rate Inflation Trend 8.0% 7.8% 7.5% 8 % 8.9% 6.5% 7.4%* 5.4% 5.5% 6.7% 5.2% 5.1% 4.38% 4.3% 4.5% 4.9% 3.7% CPI WPI 2.4% 1.8% 0.0% 0.1% -0.4% FY11 FY12 FY13 FY14 FY15E Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Source: CSO & RBI estimates Source: Office of
Slide 3: FMCG Sector – Recent Performance
FMCG Sector – Recent Performance India FMCG Sector Growth Rate Growth Val YA (%) Growth Vol YA (%) Price Led Growth (%) 13% 13% i i l signs Initial I i off revival i l iin FMCG 10% 11% Consumption. However, consumer 9% 8.0% demand still sluggish in most 11% 10% 6% 5% % 6% categories 8% 6% 5% 5% 4.
Slide 4: FMCG Sector – Long Term Potential Intact
FMCG Sector – Long Term Potential Intact Indian Consumer industry is expected to grow ~12-17% pa over the next 5-6 years… S Source: C CII – ‘FMCG ‘ CG roadmap d to 2020 estimates’, i ’ Barclays l Research h estimates i The Indian FMCG sector could touch a market size between Rs. 4,000 to Rs. 6,200
Slide 5: Dabur Overview
Dabur Overview One of the fastest Dedicated to the 130 years of Trust and growing FMCG Health and Well Well- Being Excellence E ll Companies of every household 19 world class World’s largest in Sales of Rs. 70.7 billion manufacturing Ayurveda and natural and profits of Rs. 9.1 facilities catering to
Slide 6: Key Milestones
Key Milestones 1884- Established 1994- Comes out 1940- Personal Care by y Dr. S K Burman with first p public th through h Ayurveda A d at Kolkata issue 1998- Inducted 1998 I d t d 2000 Crossed the 2000- 2005 - Dabur Professionalised 1000 Crores aquired Balsara Management turnover mark 2010- Dabur 20
Slide 7: Dabur - Performance Snapshot
Dabur - Performance Snapshot Sales “Robust “ b profitable fi bl growth h translating into superior in INR bn 70.7 shareholder returns” 61 5 61.5 52.8 40.8 Market Capitalization 33.9 28.1 in INR bn 466.4 313.1 FY FY09 FY FY10 FY FY11 FY FY12 FY FY13 FY FY14 238.9 Profit after Tax 137.8 167.2 185.4 85
Slide 8: Global Business Footprint
Global Business Footprint UK Turkey y Nepal UAE U.S. Egypt B’Desh Nigeria Sri Lanka Key markets Manufacturing Facilities Our strategy is to localize manufacturing, supply chain and product offerings to suit consumer requirements in each geography 8
Slide 9: Continue to build bigger brands
Continue to build bigger brands INR 5 bn+ INR 1 bn+ 14 brands with turnover of INR 1bn + 9
Slide 10: Domestic Distribution Structure
Domestic Distribution Structure Factory (Carry & Forward Agents) Depot Stockists Super stockists Insti Stockists Modern Trade Stockist Wholesalers Sub stockists Retail trade Rural trade Insti customers Shoppers & Consumers Total reach at 5.3 mn retail outlets, one of the highest among FMCG companies
Slide 11: Business Structure
Business Structure Dabur India Ltd. Domestic (68%) • Domestic FMCG (65%) •OOthers (3%) International (32%) • Organic International (21%) • Namaste Labs ((8%)) • Hobi Group (3%) Note: % figure in brackets indicate % share in Consolidated Sales for FY14 * Others include Retail, Commodity exports etc 1
Slide 12: Sales by Business Vertical
Sales by Business Vertical Domestic Intl Others Dabur FMCG Business (3%) Consol (65%) (32%) Health HPC Foods Care (48%) (18%) ( (34%)) Domestic International FMCG(Contribution)* Business(Contribution)* Health HPC Foods 28% Middle East care Health Foods Supplements 18% Africa 21% 18% Skin Care 5% Dig
Slide 13: Healthcare (HC)
Healthcare (HC) Category Key Products and Brands Market Position Chyawanprash: Honey: Glucose: #1 in Ayurvedic Tonics Health (Chyawanprash) Supplements #1 in branded Honey #2 in i Glucose Gl Herbal Digestives: g Digestives #1 in Herbal Digestives Baby Care: Cough & Cold: Women’s Health: #1 in Ayurve
Slide 14: Home & Personal Care (HPC)
Home & Personal Care (HPC) C t Category Key Products and Brands Market Position Hair Oils: Shampoo: #2 in Hair Oils 4 in S #4 Shampoos p H i C Hair Care Toothpastes : Toothpowder: #3 in Toothpastes Oral Care #2 in Toothpowders Air Freshener: Mosquito q Rep. p Cream: Toilet Cleaner: #1 in Air Freshen
Slide 15: Foods
Foods Foods portfolio comprises Fruit Juices and Culinary range Fruit Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Key Products and Brands Market Position Juices & Nectars: #1 in Fruit Juices #Offer wide range of beverages-More th than i t 30 varia
Slide 16: Distribution Initiatives
Distribution Initiatives Project Core Project Double • To enhance chemist coverage and • Rolled out during 2012-13 to expand provide further impetus to our Health direct coverage in rural markets Care portfolio • This led to strong volume led growth in • Initial roll out in urban markets rural busin
Slide 17: Focus on Innovations
Focus on Innovations Healthcare Chocolate Chyawanprash y p Liver Protection& Functioning g Hajmola j Variants & Ratnaprash Home & Personal Care Foods Keratex Oil Anmol Jasmine Odonil Blocks- Night Queen Coconut Water Drinking Yogurt and White Rose & Supa Fruits
Slide 18: Visibility Drive in Modern Trade
Visibility Drive in Modern Trade Hommade Hajmola Real Vatika Red Toothpaste Gulabari 18
Slide 19: Impactful Activations & Digital Initiatives
Impactful Activations & Digital Initiatives Home & Personal Care Heathcare Foods Captain of Indian Football team endorsed Real at a press Vatika Brave & Beautiful Website for Honey Diet Plan conference Sanifresh 700 se 7 kadam 19
Slide 20: International Business Overview
International Business Overview Dabur’s international business comprises 32% of consolidated sales Focus markets are Africa, Middle East and South Asia offering substantial long term growthh opportunities ii International business foray had been entirely organic since 1980’s, until FY2010- 11
Slide 21: Dabur International- Brand Architecture
Dabur International- Brand Architecture 21
Slide 22: New Products Launched- International
New Products Launched- International Miswak Dabur Herbal Miswak i k Gold ld Vatika V tik Dermoviva D i Mouthwash Toothpaste(Sensitive) Toothpaste Soaps ORS - MONOI Oil Hobby Trendz Hajmola Hing variant Hair Gel 22
Slide 23: Dabur's Growth Strategy
Dabur’s Growth Strategy Healthcare- Deepen the HC portfolio & build Advocacy platform Home & Personal Care- Domestic Focus on Differentiation and expansion in existing categories Beverages- Continue to expand the g y and Innovate category Growth Strategy Key Focus Areas Expansion in Current Geograph
Slide 24: Financial Performance: 9MFY15
Financial Performance: 9MFY15 5 290 1 5,290.1 5,861.6 Consolidated sales grew by 10.8% 10.8% Domestic FMCG Business reported Revenue (In Rs.Crs) growth th off 12 12.6% 6% 9MFY14 9MFY15 954.1 1,084.1 EBITDA margin increased to 13.6% 18.5% v/s 18% in 9MFY14 EBITDA Material Costs remained stabl
Slide 25: Share price Trend & Shareholding Structure
Share price Trend & Shareholding Structure Share Price Trend Shareholding Structure* Others DII 6% 5% FII 21% Promoters 68% Interim Dividend 9MFY15 Dividend Per share (Rs.) 1.25 Dividend% 125% Total dividend(Rs.crs)* 256.8 *As of December 31,2014 25
Slide 26: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L in Rs. million Q3FY15 Q3FY14 YoY (%) YTD DEC FY15 YTD DEC FY14 YoY (%) Net Sales 20,736 18,996 9.2% 58,616 52,901 10.8% Other Operating Income 55 50 159 158 Material Cost 9,881 9,275 6.5% 28,141 25,420 10.7% % of Sales 47.7% 48.8% 48.0% 48.1% Employee Costs 1,
Slide 27: Consolidated Statement of Assets and Liabilities
Consolidated Statement of Assets and Liabilities Particulars(in Rs.Million) As at 30/09/2014 (Audited) As at 31/03/2014 (Audited) Â EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1,756.36 1,743.76 (b) Reserves and surplus 27,973.39 24,815.77 S b Sub-totall - Shareholders' Sh h ld ' f
Slide 28: 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
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