Dabur India Limited · NSE:DABUR
Dabur India — Shareholder Meeting (September 2020)
58 slides from Dabur India's shareholder meeting presentation, Sep 3, 2020
Slide 1: Cover letter to stock exchanges on 45th AGM presentation
^J^IA^. »i^t'(%^ <^^ ?^'^o^^S^ f f ^f ^\ s ir Ref: SEC/SE/2020-21 wr Date: September 3, 2020 India Ltd. Scrip Symbol: NSE - DABUR, BSE Scrip Code: 500096 To, Corporate Relation Department National Stock Exchange of India Ltd. BSE Ltd. Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot No. C/1,
Slide 2: Annual General Meeting 2020
Dedicated to Innovation Committed to Care ‘ Annual General Meeting 2020 - Presentation by Mohit Malhotra, fazey
Slide 3: Agenda
Agenda 1 2 3 FY20 Performance Our Growth Strategy Dabur - Brief Overview 2
Slide 4: Dedicated to Innovation Committed to Care
Dedicated to Innovation Committed to Care AALeader Leaderin inAyurveda Ayurvedaand and Dedicated Dedicatedtotothe theHealth Health&&Well-being Well-being NaturalHealthcare Natural Healthcare of ofevery everyhousehold household 3
Slide 5: Our Journey
Our Journey Established Among the One of the 20 world class Strong Market Cap: in 1884 – 136 Top 4 FMCG largest manufacturing overseas US$ 12 bn years of trust companies distribution facilities presence and heritage in India network in with ~27% India, contribution covering ~6.7 mn outlets 4
Slide 6: Agenda
Agenda 1 2 3 Dabur - Brief Overview Our Growth Strategy FY20 Performance 5
Slide 7: FY20 Performance Summary
FY20 Performance Summary INR 8,704 cr INR 1,445 cr 20.6% FY20 Revenue FY20 PAT FY20 Operating Margin FY20 Growth in 11 months Reported Growth % ending 29 Feb’20* Consolidated Revenue 2.0% 6.4% India FMCG Volume 1.1% 6.2% International Business 4.9% 6.9% Operating Profit 3.0% 11.3% Consolidated PAT 0
Slide 8: Domestic FMCG Business – By Verticals – FY20
Domestic FMCG Business – By Verticals – FY20 Foods Healthcare Foods Healthcare 17.1% 32.3% 15.9% 33.9% FY19 Sales FY20 Sales Contribution Contribution HPC HPC 50.6% 50.1% Healthcare Home & Personal Care (HPC) Foods 11.4% 5.0% 0.1% 5.9% (6.1%) YTD Feb'20 Growth % FY20 Growth % (0.0%) YTD Feb'20 Growt
Slide 9: Strong Gains in Market Share across Categories
Strong Gains in Market Share across Categories MAT Mar’20 vs MAT Mar’19 – Increase in Volume MS (in bps) Glucose 94 Shampoo 43 Toothpaste 37 Digestive Tablets 288 Bleaches 125 MRC 182 Hair Oils 44 Chyawanprash 325 Juices & Nectars 324 • Source: AC Nielsen 8
Slide 10: International Business – FY20 Performance
International Business – FY20 Performance International Business grew by 4.9% in FY20 Markets like Egypt, SSA, Hobi and Namaste posted strong CC growths in FY20 FY20 Constant Currency Growth % Hobi Namaste MENA Egypt SSA 43.4% 7.3% 1.6% 8.0% 6.8% 9
Slide 11: International Business – FY20 Performance
International Business – FY20 Performance Dabur continues to be the market leader in key categories across regions Saudi Arabia Egypt United Arab Emirates #1 #2 #1 #2 #3 #1 #2 #3 • Hair Oil • Hair Serums • Hair Oil • Hair Gel • Hair Serums • Hair Cream • Hair Oil • Leave-On • Hair Cream • Depilatori
Slide 12: Strong balance sheet and cash flow metrics
Strong balance sheet and cash flow metrics Net Worth (INR cr) Net Cash (INR cr) Operating Cash Flow (INR cr) Current Ratio 6,643 3,802 1,614 1.98 1,506 1.41 1,088 1.35 5,733 3,176 5,663 3,066 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY18 FY19 FY20 FY20 ROIC: 43.5% 11
Slide 13: Agenda
Agenda 1 2 3 Dabur - Brief Overview FY20 Performance Our Growth Strategy 12
Slide 14: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Consumer Excellence in Technology Brands Marketing Manufacturing and Enhancement and Strategy Reorientation Supply Chain Employee Well-being Driving GTM Cost and Cash ESG Innovation Approach Flow Management Focus 13
Slide 15: Pillars of Our Growth Strategy: Power Brands Strategy
Pillars of Our Growth Strategy Power Brands Strategy Staying the course on power brand strategy and driving growth through investments, innovation and distribution reach expansion for these brands 14
Slide 16: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Surge in penetration during Covid on account of its immunity benefits • Extended usage beyond winters • Entering adjacent categories through modern formats for youth & kids 15
Slide 17: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Surge due to health and immunity benefits • Launched value added variants • Extending usage through modern and convenient formats 16
Slide 18: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Modernizing formats • Extended portfolio through Dabur Soda Fizz • Using Digital Media to connect with millennials 17
Slide 19: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Extending the Dabur Lal Tail equity with the launch of Dabur Baby Care products • Communicating Ayurvedic positioning • Enhancing distribution 18
Slide 20: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Reinforcing Ayurvedic positioning • Extending the range through convenient formats like lozenges and hot sip • Launched Dabur Honitus Adulsa Cough Syrup 19
Slide 21: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Communicating World’s No. 1 hair oil proposition • Connecting with millennials through premium variants - Dabur Amla Aloe Vera Hair Oil • Dabur Badam Amla Hair Oil added as third flanker brand • Strengthening core brand through aggressive spends 20
Slide 22: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Fastest growing toothpaste in the country • Extending the brand to premium formats • Growing the rural franchise through LUPs • Connecting digitally with millennials 21
Slide 23: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Scaling up the Vatika franchise in India • Launched Vatika Ayurvedic Shampoo • Cross-pollinating international portfolio in India through premium variants • Extending distribution reach 22
Slide 24: Continue to drive the power brand strategy
Continue to drive the power brand strategy • Entered PET category • Entered value added milk category through Real Frappe • Launching premium health focused variants 23
Slide 25: Driving Innovation
Pillars of Our Growth Strategy Driving Innovation 24
Slide 26: Driving innovation and renovation
Driving innovation and renovation Healthcare HPC Foods International Business Range of Health Juices, Wellness Range of Products in the Oral Care and Products in the Oral Care Immunity Boosting Juices, Golden Milk Personal and Home Hygiene and Hair Care Space Products and Real FrutORS Space 25
Slide 27: Entering New Product Segments
Entering New Product Segments Personal and Home Hygiene Baby Care Drinks in PET 26
Slide 28: Entering New Product Segments
Entering New Product Segments Value Added Milk Apple Cider Vinegar Entering new categories in International Business 27
Slide 29: Consumer Marketing Reorientation
Pillars of Our Growth Strategy Consumer Marketing Reorientation 28
Slide 30: Consumer Marketing Reorientation
Consumer Marketing Reorientation Re-purpose Brand Retool Media Mix Communication in current context in COVID Context T Beefing up #VocalforLocal Digital Presence 29
Slide 31: Consumer Marketing Reorientation
Consumer Marketing Reorientation Around Immunity and Germ Protection in Healthcare Repurpose Brand Communication 30
Slide 32: Consumer Marketing Reorientation
Consumer Marketing Reorientation Around Germ Protection in Personal Care Repurpose Brand Communication 31
Slide 33: Consumer Marketing Reorientation
Consumer Marketing Reorientation Around Immunity and Wellness in Foods Repurpose Brand Communication 32
Slide 34: Consumer Marketing Reorientation: Retool Media Mix
Consumer Marketing Reorientation Retool Media Mix in current context Medium TV TV (GEC) Digital Print Outdoor (News, Kids, Movies, DD) Change News News registered 43% Growth Widely advertised on news like Mann ki Baat, PM Modi’s Nation Address
Slide 35: Consumer Marketing Reorientation: Retool Media Mix
Consumer Marketing Reorientation Retool Media Mix in current context DD DD garnered unprecedented ratings Presence on old classic mythological content like Ramayan & Mahabharat ------------ Sponsorships across Shri Krishna & Vishnu Puran 34
Slide 36: Consumer Marketing Reorientation: Beefing up Digital Presence
Consumer Marketing Reorientation 1. Content 2. Purpose Driven Content Marketing Digital Films/ Post with relevant messages Digital Films on key brands. – Corporate – 192 + digital contents and brand films Beefing up Digital Presence 14% 3. Dominate Contextual Events 4. Influencer Marketing 4% Activa
Slide 37: Consumer Marketing Reorientation: #VocalforLocal
Consumer Marketing Reorientation #VocalforLocal INVESTOR PRESENTATION | SEPTEMBER 2019 36
Slide 38: GTM Approach
Pillars of Our Growth Strategy GTM Approach 37
Slide 39: Strategic Initiatives on GTM
Strategic Initiatives on GTM Go Direct for 95% Rapid S&OP E comm Business Weekly Rapid S&OP with Cross-Functional 95%+ of E-Com Team reviewing of secondary trends to business moved respond to changing demand patterns direct Continuous Replenishment System E-comm first Roll-Out of New CRS Module for
Slide 40: Continue to expand on our GTM Strength
Continue to expand on our GTM Strength Our GTM Strength 28 4,000+ 12,599 6.7 mn Warehouses across India Super stockists & Distributors Sub-stockists Total outlets reached Go-to-Market (GTM) Strategy Direct Reach Expansion from Expand Village Coverage Expand chemist coverage Field Efficiency 1.2 mn o
Slide 41: Excellence in Manufacturing and Supply Chain
Pillars of Our Growth Strategy Excellence in Manufacturing and Supply Chain 40
Slide 42: Manufacturing Locations in India
Manufacturing Locations in India Manufacturing Excellence 300 bps Improvement in OEE in FY20 to touch 75% 7% Increase in production over previous year INR 377 cr Capex in FY20 41
Slide 43: Manufacturing Locations in International Business
Manufacturing Locations in International Business 8 Manufacturing Locations 42
Slide 44: Streamlining Supply Chain during Covid
Streamlining Supply Chain during Covid Severe disruptions in Supply Chain with units Procured permissions and commenced of Suppliers and Vendors under lockdown operations at all CFAs and suppliers All CFAs closed in the initial days Deployed smaller vehicles to transport key raw materials in the abs
Slide 45: Streamlining Manufacturing
Streamlining Manufacturing Streamlining Manufacturing All factories are Safety protocols Greater Capacity currently implemented to ensure outsourcing Augmentation operational at near the facilities remain normal levels COVID-Free 44
Slide 46: Cost and Cash Flow Management
Pillars of Our Growth Strategy Cost and Cash Flow Management 45
Slide 47: Cost and Cash Flow Management
Cost and Cash Flow Management Project in India for cost optimisation and Cash Flow Management value enhancement across various levers of business using ZBB methodology Levers under consideration include Raw and Packaging Material Spends Selectively extended credit to our distribution partners wherev
Slide 48: Technology Enhancement and Employee Well-being
Pillars of Our Growth Strategy Technology Enhancement and Employee Well-being 47
Slide 49: Investing in Technology and Human Capital
Investing in Technology and Human Capital Technology Upgradation Human Capital Organisation Building Female employees in India (%) Migrated to SAP Hana Digital Transformation Head recruited ---------- Parlour Promoters 43% ---------- Shifted from SAP APO to SAP IBP for Finance & Accounts 18% GTM Str
Slide 50: Employee Well-being
Employee Well-being As we progressed through various phases of lockdown, we ensured employee safety and productive work practices 1 2 3 4 5 WFH Medical Insurance Safety Protocols Employee Recognition Resource Mobilization Work from Home was Comprehensive guidelines With our offices Recognising Redep
Slide 51: Key Initiatives to ensure Employee Well-being
Key Initiatives to ensure Employee Well-being Virtual Webinar by Dr. Parmeshwar Arora on “Employee Distribution of Safety and Immunity Kits to employees Wellness in times of Covid-19 – the Ayurvedic Way” Home Isolation Service tie up with For PAN India Covid related Hospitalizations For COVID medica
Slide 52: ESG Focus
Pillars of Our Growth Strategy ESG Focus 51
Slide 53: Community Welfare
Community Welfare Dabur Group has committed INR 21 crores towards Support and Relief Activities for Covid 1 2 3 4 5 For Frontline Police For Covid Support For Migrant For Communities Special Communication Personnel, Health and and Relief Workers to thank frontline Sanitation workers Corona warriors
Slide 54: CSR Initiatives
CSR Initiatives Swasthya Aur Suraksha Water, Sanitation & Promotion of Environment Water Hygiene (WaSH) Education Sustainability Project Conservation Conducted Safe & Constructed around 14,482 kids in 55 4,820 acres of land 1,200 families benefited Nutritious Foods (SNF) 4,000 household toilets scho
Slide 55: Our efforts towards conserving the environment
Our efforts towards conserving the environment Plastic Waste Collected and Raw Water Used Effluent Generation Energy Consumed Processed/Recycled (KL/MT) (KL/MT) (GJ/MT) (%) 2.07 5.05 2.12 60% 2.03 4.32 3.41 3.35 1.38 1.96 1.25 1.19 1.92 20% FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
Slide 56: Pillars of Our Growth Strategy
Pillars of Our Growth Strategy Power Consumer Excellence in Technology Brands Marketing Manufacturing and Enhancement and Strategy Reorientation Supply Chain Employee Well-being Driving GTM Cost and Cash ESG Innovation Approach Flow Management Focus 55
Slide 57: Remaining dedicated to the Health and Well-Being of every Household
Remaining dedicated to the Health and Well-Being of every Household… 56
Slide 58: Thank You
Thank You 57