Slide 1: Company Overview June 2016
© emami limited Making people healthy & beautiful, naturally Company Overview June 2016 emami f BORO ZANDU weno BUT us uieg Naviatna Navratna “25° “Baume ccs PIMIINIIG Kesh King © Coot TALC
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 Q3FY16 GDP grows by 7.3%. CPI rose to 5.4% , WPI rises to 0.3% after 17 FY16 GDP growth estimated at 7.6% successive months of disinflation 12.0% 8.4% 7.5% 7.6% 7.7% CPI WPI 6.7% 6.6% 7.3% 9.0% 6.0% 3.0% Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 0.0% Jan'14 Apr'14 July'14 Oct
Slide 4: FMCG Sector…Key Growth Drivers
FMCG Sector…Key Growth Drivers Rural FMCG Market to grow @14% CAGR Climbing up the ladder - Per Capita Income India’s Consumer Confidence Index To reach $ 220 bn by 2025 to grow 5x in 2 decades to ` 2.7 lacs by 2030 highest among 61 global markets 1% 1% 3% 6% 134 25% 131 131 131 129 130 46% 128 126
Slide 5: Company Overview
Company Overview Flagship company of the Category creator with a Established in 1974, the Emami Group and one of differentiated niche Entered mainstream Company was promoted the leading & fastest positioning thereby categories to reach out to by Mr. R.S. Agarwal and growing personal and gaining mark
Slide 6: The Journey
The Journey Emami started with Launched Boroplus meagre capital Antiseptic cream Launched Navratna Oil Listed on BSE Acquired Himani Ltd. Issued 1:1 Bonus. Launched Stock Split from ` 10 to ` 2/- Mentho Plus Balm Public issue of 50 Lac shares. Acquired controlling stake in Listed on NSE Fravin PTY L
Slide 7: Shareholding Pattern …as on 31.03.2016
Shareholding Pattern…as on 31.03.2016 Others 9.8% Listed on the NSE, BSE and Kolkata stock exchanges FII & MF's Market capitalization of nearly ` 250 bn (US$ 3.7 bn) 17.5% Major Institutional Investors Smallcap World Fund Promoters Others 72.7% Matthews ~47x returns to investors following the public
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 E&Y, India 2 Sri R. S. Goenka 10 Sri Y. P. Trivedi, eminent tax expert & advocate, Ex-Rajya Sabha member 3 Sri S. K. Goenka 11 Smt. Rama Bijapurkar, Eminent consumer and m
Slide 9: Consumer Care Range
Consumer Care Range Snapshot of Major Brands Market Size Market Size Market Share (%) Brands Segment (` in bn.) ($ in Mn) 2011 2016 Navratna Oil Cooling oil 8.6 bn 128 mn 54% 60% BoroPlus Cream Antiseptic Cream 4.3 bn 64 mn 75% 72% Fair & Handsome Men's Fairness Cream 3.9 bn 58 mn 57% 59% Navratna C
Slide 10: Navratna Oil
Navratna Oil Growing at a CAGR of 13% in last 5 years Market Size ` 8.6 bn ($ 128 mn) Navratna Brand has been ranked 3rd among India’s most Market Share 60% trusted brands in hair oil category by Brand Equity Survey, 2015 Formulation improved with goodness of Brahmi & Amla. Commissioned some of the
Slide 11: BoroPlus
BoroPlus Antiseptic Cream growing at a CAGR of 11% in last 5 years Market Size ` 4.3 bn ( $ 64 mn) Largest selling antiseptic cream not only in India but also in Ukraine, Market Share 72% Russia and Nepal Boroplus Brand ranked 18th among India’s most trusted brands in Personal care category by Brand
Slide 12: Fair & Handsome
Fair & Handsome Fairness cream growing at a CAGR of 15% in last 5 years Market Size ` 3.9 bn ( $ 58 mn) Market Share 59% Re-launched with new formulation and packaging providing 5 Key benefits namely –Sweat Absorption, Oil Control, Sun Protection, Dark Spot Reduction and Long Lasting fairness. Fair
Slide 13: Navratna Cool Talc
Navratna Cool Talc Growing at a CAGR of 19% over last 5 years. Market Size ` 4.9 bn ($ 73 mn) An innovative launch in the talcum powder category; with Market Share 27% cooling properties. Launched new variant “Navratna i-Cool Talc” with intelligent sweat sense technology releasing instant cooling wh
Slide 14: Kesh King
Kesh King Acquired control on 12th June, 2015. Market Size ` 6.4 bn ( $ 96 mn) Launched in 2009, Kesh King brand portfolio includes Ayurvedic Market Share 36% Medicinal Oil, Aloe Vera Herbal Shampoo and Ayurvedic Capsules for complete hair scalp treatment. Superior Gross & EBIDTA Margins. Launched 6
Slide 15: HE Deodorants / 7 Oils in One
HE Deodorants Relaunched HE Deodorants with an easy to use premium packaging Introduced a new fragrance “HE Respect” Forayed into “No-Gas” Category”– Passion & Hypnotic fragrances. ICY Collection- Offering cooling effect on users along with long lasting fragrance Advantage for Emami over competitors
Slide 16: Health Care Range
Health Care Range Indian Healthcare Opportunity Leveraging the India Health Opportunity: Key health need areas identified Rise in chronic health issue due to unhealthy lifestyle Robust innovation funnel with breakthrough products in place Growing consciousness that health needs to be actively manage
Slide 17: Zandu Balm & Mentho Plus Balm
Zandu Balm & Mentho Plus Balm Growing at a CAGR of 13% over last 5 years Zandu, a dominant player in pain management category, ranked 3rd among India’s most trusted brands in OTC Personal care category by Brand Equity Survey, 2015 Zandu Balms re-launched with new formulation with better sensory and
Slide 18: New Launches
New Launches Fair and Handsome Zandu Pure Honey Complete Winter Solution Launched in Dec’15 Launched in Nov’15 100% Pure Honey with First ever winter cream in no added sugar India for men with 8 Action formula to fight tough Scientifically tested for “no added sugar” in an winters. independent labor
Slide 19: Domestic Distribution
Domestic Distribution Initiated Secondary Factory Sales Automation Process- “Outreach” Mother Depots 1,200+ Installations Depots contributing 94% of Sales. Modern Trade Rural Super Direct Coverage in Distributors Stockist Distributors Stockists 13,300+ villages with population less than 50,000. Whol
Slide 20: International Business
International Business CAGR of 17% over last 5 years 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 14% of the total consolidated revenues. Presence in International Ma
Slide 21: International Business
International Business MENAP CISEE Targeting Arab consumers along with Indian diaspora Launch of new products are on track to boost with relevant products and increased media spends. the sales. New product launch planned till Increased marketing inputs with improved 2016-17. distribution. Apart from
Slide 22: Celebrity Endorsements
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Slide 23: Research & Development
Research & Development 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 cGMP
Slide 24: Operations
Operations 7 manufacturing facilities; 2 in Guwahati and 1 in Pantnagar, Uttaranchal enjoying fiscal benefits Overseas manufacturing facility at Bangladesh Most of the facilities are cGMP and ISO 9000 compliant Units follow highest standards of safety and environment protection State of the art new
Slide 25: Growing Robustly
Growing Robustly Revenues Cash Profits* ` in crores 2,624 2,217 614 1,821 520 1,699 438 1,454 337 278 2011-12 2012-13 2013-14 2014-15 2015-16 2011-12 2012-13 2013-14 2014-15 2015-16 EBIDTA Market Capitalization 25,000 684 21,900 540 441 297 347 8,808 9,917 6,101 2011-12 2012-13 2013-14 2014-15 2015-
Slide 26: A&P Expenses as a % to sales
A&P Expenses Rs. in Million % to sales 6,000 25.0% 20.2% A&P Expenses as a % to sales 5,000 17.7% 20.0% 15.8% 16.4% 4,000 15.2% ` in Mn. 15.0% 5,307 3,000 10.0% 2,000 2,290 2,790 3,919 2,774 5.0% 1,000 - 0.0% 2011-12 2012-13 2013-14 2014-15 2015-16 Nearly `17 bn invested in A&P in last 5 years 25
Slide 27: Dividend (%)
Dividends 900% 60% 54% Special Dividend Dividend Payout 800% 46% 50% 700% 45% 39% 600% 400% 40% Dividend (%) Pay-Out (%) 500% * 31% 30% 400% 800% 700% 700% 700% 300% 20% 200% 400% 10% 100% 0% 0% 2011-12 2012-13 2013-14 2014-15 2015-16 *FY16 Dividend Payout on Cash Profits 26
Slide 28: Summarized Balance Sheet
Summarized Balance Sheet ` in Mn As at As at As at As at S.N. LIABILITIES S.N. ASSETS 31.03.2016 31.03.2015 31.03.2016 31.03.2015 1 Shareholders Fund 14,031 12,306 1 Non-Current Assets 21,606 5,328 a. Share Capital 227 227 Net Fixed Assets 20,379 4,776 b. Reserves and Surplus 13,804 12,079 - Tangibl
Slide 29: FY16 Performance
FY16 Performance ` in Million 26,238 6,838 6,141 22,173 5,401 5,199 FY15 FY16 FY15 FY16 FY15 FY16 SALES EBIDTA CASH PROFIT* However, PAT at `3,591 mn was lesser compared to FY15 because of amortization of Kesh King intangibles by ` 2,101 mns. *Cash Profits = PAT+ Depreciation & Amortization. ROE at
Slide 30: Awards & Accolades
Awards & Accolades Emami ranked 84th among BT-500 Most Valuable Companies of India Rankings 2015 by Business Today. Emami featured in the maiden “SUPER 50 Companies” listing by Forbes India with knowledge support from PwC, India. Emami Limited won the ET Bengal Corporate Awards 2016 in the category
Slide 31: Operations
Operations Emami’s manufacturing units have received many awards in the sectors of Manufacturing excellence, Health & Safety- Received “Greentech Safety Award - 2014” in the Gold Category. Awarded, Arogya World’s - “Healthy Workplace Gold Award– 2014”. Abhoypur unit accredited with ISO 14001:2004 an
Slide 32: 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 Bigger basket of power brands and entry in new se
Slide 33: Thank you
Thank you No, emami Making people Healthy & Beautiful, Naturally f