Marico Limited · NSE:MARICO
Marico — Investor Presentation (November 2017)
31 slides from Marico's investor presentation, November 2017
Slide 1: Marico Limited Investor Presentation
Marico Limited Investor Presentation November 2017
Slide 2: An Indian MNC valued at $6.0 billion
An Indian MNC valued at $ 6.0 billion More than 25 Years of Sustained Value Creation Emerging Markets MNC Excellence 27% compounded annual High growth markets of Operating since 1991 return since listing in 1996 Asia and Africa LAST 5 YEARS Revenue CAGR 10% | Operating Margin Improvement 730 bps 1
Slide 3: Portfolio: Beauty & Wellness
Portfolio : Beauty & Wellness COCONUT OILS HAIR OILS HEALTHY FOODS MALE GROOMING 2
Slide 4: Market Leadership in Key Segments
Market Leadership in Key Segments Presence in growing emerging Market Leader in 90% of the segments in our markets portfolio Core Portfolio Emerging Portfolio 23% Coconut Oil Hair Styling (India) RANK Hair Oils Serums 1 (India) 77% Premium Refined Hair Styling Edible Oils (India) (Egypt) India Inter
Slide 5: Geography Choice Making Framework
Geography Choice Making Framework Emerging economies with lower but fast Where We Will Play : Markets Per Capita Income growing Per Capita income Large young population – Demographic Population dividend Low penetration in our chosen categories Maturity Lower intensity of competition from MNCs Retail
Slide 6: India Business (77% of FY17 Revenues)
India Business (77% of FY17 Revenues)
Slide 7: Coconut Oil
Coconut Oil The only Company with a national presence in ~USD 669 mn branded CNO market Volume Market Share Parachute 50% Nihar 8% 30-35% market (by volume) estimated to Oil of Malabar 1% be in loose form Total 59% 5 yr volume CAGR in Parachute rigid packs ~6% Headroom for growth Conversion from lo
Slide 8: Value-Added Hair Oils
Value - Added Hair Oils Value Added Hair Oils Market : ~USD 1 bn Light Hair Oils Amla Oils Cooling Oils Value Added Anti-Hair Fall Others Coconut Oils 25% 25% 15% 18% 14% 3% Category Play : Significant participation in most key sub-segments Marico’s Volume Market Share in Hair Oil Market ~ 34% • Fut
Slide 9: Hair Oiling Category
Hair Oiling Category • Likely to see sustained growth – One of the fastest growing 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 – Reduces protein loss – Softens ha
Slide 10: 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 ~8% Leadership position in super premium refined edible oil segment (67% Volume Market Share) Entry into breakfast cereals market in 2010 (Plain oats and
Slide 11: 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 Market: ~USD 36 mn • Achieved market leadership in Gels/Crea
Slide 12: Strong Distribution Network (India)
Strong Distribution Network (India) • Indirect Reach: 4.7 million outlets out of 9.9 million outlets – Huge Headroom for growth • Direct Reach: Over 853,000 outlets - Initiatives in place to increase the reach – Project ONE – Targeting direct coverage increase in top 20 towns – Leveraged technology
Slide 13: India Strategy – 5 Key Pillars
India Strategy – 5 Key Pillars Grow the Core Drive Premiumization Focus on the Bottom of Pyramid Drive E-commerce and Digital Build New Engines of Growth 12
Slide 14: International Business (23% of FY17 Revenues)
International Business (23% 0f FY17 Revenues)
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 Nort
Slide 16: International Portfolio
International Portfolio Bangladesh Middle East Egypt Vietnam South Africa 44% 10% 6% 25% 7% Categories : Coconut Oil, Hair Categories : Categories: Categories : Nourishment, Coconut Oil, Hair Categories : Male Ethnic Hair Care, Colours, Male Nourishment Male Styling Grooming, OTC Health Care Groomin
Slide 17: International Strategy – 5 Key Pillars
International Strategy – 5 Key Pillars Scale Up Male Grooming and Nourishment Platforms Drive “One Marico” Synergies Existing Core Markets: Drive to Full Potential Strategic Entry in New Markets in Africa and Asia Build Global Capability and Centres of Excellence 16
Slide 18: Key Areas of Transformation
Key Areas of Transformation Innovation Go-To-Market Talent Value IT & Value Strategy Proposition & Analytics Management Culture 17
Slide 19: Go-To-Market - Building Future-Ready Distribution
Go-To-Market - Building Future-Ready Distribution WINNING LEVERAGE OPTIMIZATION NURTURE NEW SPECIALTY THROUGH IT & OF SPENDS PRODUCT CHANNELS GO TO MARKET ANALYTICS DEVELOPMENT 18
Slide 20: Talent Value Proposition & Culture
Talent Value Proposition & Culture Building Talent for Future Learning Creating Workplace for Future Driving Internal Communication to #GetConnected Strengthening Employer Branding 19
Slide 21: IT & Analytics
IT & Analytics Digitise Operations End Consumers LISTEN AUTOMATION REACH INTEGRATED CONSUMER EXPERIENCE ANALYTICS ENGAGE Innovate Customers / Business Models Channel Partners SELL INNOVATE 20
Slide 22: Value Management - A Virtuous Cycle
Value Management - A Virtuous Cycle 21
Slide 23: Living Marico's Purpose
Living Marico’s Purpose CUSTOMERS MEMBERS SHAREHOLDERS SOCIETY BUSINESS ASSOCIATES 22
Slide 24: Commitment Towards Sustainability
Commitment Towards Sustainability Responsible Renewable Becoming Water Sustainable Corporate Energy Positive Procurement Citizenship 23
Slide 25: 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 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Dividend Payout Ratio 19% 24% 30% 69% 64% • In the absence of M&A, dividend p
Slide 26: Exhibit 1: Last 5 Years Financial Highlights
Exhibit 1 : Last 5 Years Financial Highlights Particulars (USD mn) FY13 FY14 FY15 FY16 FY17 Revenue from Operations 4,596 4,687 5,733 6,024 5,936 Profit Before Tax 552 695 822 1,029 1,150 Profit After Tax 396 485 573 711 799 Earnings per Share (INR) 6.1 7.5 8.9 5.5* 6.2* Book Value per Share (INR) 3
Slide 27: Exhibit 2: Awards & Accolades
Exhibit 2 : Awards & Accolades Featured in the list of Best Featured in the list of Investor Relations India’s Super 50 India’s Best Boards Programs 2016 Companies 2016 2014 Excellence in Corporate Among Top 100 Cos. for Rated 2nd among FMCG Governance Working Mothers Companies 26
Slide 28: Exhibit 3: Shareholding Pattern - September 2017
Exhibit 3 : Shareholding Pattern - September 2017 Individuals (incl Others NRIs), 4.12% 2.85% Mutual Funds 1.55% FIIs 27.81% Promoters 59.71% Banks/FI/Ins 3.97% 27
Slide 29: Exhibit 4: Communication Protocol
Exhibit 4 : Communication Protocol • One on one meetings with the Buy side and Sell side • Conferences and Non-Deal Roadshows • Marico Website • Annual Report • Latest Quarterly Updates • AGM Notice • Shareholding Pattern • http://www.marico.com/html/investor/overview.php • Quarterly Results • Infor
Slide 30: Thank You
Mw marico Thank You
Slide 31: 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