Dabur India Limited · NSE:DABUR
Dabur India — Bank of America Merrill Lynch, Edelweiss & IIFL Investor Conferences 2016
35 slides from Dabur India's conference presentation, February 2016
Slide 1: Dabur India Ltd Investor Presentation
Dabur India Ltd Investor Presentation February 2016
Slide 2: Dabur Overview
Dabur Overview One of the oldest and largest FMCG Companies in the country World’s W ld’ llargestt iin Ayurveda A d and d natural healthcare Total reach of 5 5.3mn 3mn outlets outlets, one of the highest among FMCG companies 20 world ld class l f t i manufacturing facilities catering to needs of div
Slide 3: Dabur & Ayurveda
Dabur & Ayurveda Synonymous y y with Ayurveda y since 130 years The No.1 Ayurvedic brand in 50 countries Stringent St i t quality lit ttests t off every ingredient and herb Team of world’s best Ayurvedic doctors and experts Over 4000 acres of farms to protect the close to extinction herbs and plants
Slide 4: Global Business Footprint
Global Business Footprint Dabur has 12 domestic facilities, the key locations being Badal ( Himachal Pradesh) & = Key markets “ty” Pantneger (Uttaranchal) + Manufacturing Facilities
Slide 5: Dabur Performance Snapshot
Dabur Performance Snapshot in INR bn in INR bn 78 1 78.1 10.7 70 7 70.7 91 9.1 61.5 7.6 52.8 5.7 6.4 40.8 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Strong Sales & PAT growth trajectory on the back of a robust business model 4
Slide 6: Strong Financial Profile
Strong Financial Profile 43 6% 43.6% 45 2% 45.2% 33.5 38.3% 32.7% 34.0% 26.6 21.0 17 2 17.2 13.9 FY11 11 FY12 12 FY13 13 FY14 1 FY15 1 FY11 11 FY12 12 FY13 13 FY14 1 FY15 1 61 6.1 20.4% 5.2 18.9% 4.4 17.9% 17.8% 18.2% 3.7 3.3 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 5 *includes Non- Operati
Slide 7: Distribution Framework
Distribution Framework Factory Factory C&F C&F GT Stockist St ki t MT Stockist St ki t I ti Stockist Insti St ki t S Super S ki t Sockist Wholesaler Sub Sockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer 6
Slide 8: Distribution Expansion
Distribution Expansion • Rolled out in FY13 to expand direct coverage in rural markets • Direct Village coverage has increased from 14000 villages in FY11 to 44,000 villages in FY15 • Focus on increasing efficiency and productivity of the channel • Aimed at leveraging the potential of Top 130 towns
Slide 9: Business Structure
Business Structure Domestic FMCG (66%) Domestic (69%) Oth Others (3%) Dabur India Organic Ltd. Ltd International (22%) International Namaste Labs (31%) (6%) Hobi Group (3%) * Others include Retail, Commodity exports etc Note: % figure in brackets indicate % share in Consolidated Sales for FY15 8
Slide 10: Sales By Business Vertical
Sales By Business Vertical Healthcare Healthcare HPC Foods (33%) Health Supplements Foods 18% Domestic Skin Care 19% Digestives HPC(48%) 5% 6% FMCG* OTC & Ethicals Oral Care Hair Care 9% 14% 23% Foods(19%) Home Care 6% Europe 12% Middle International Business America E t East Region Wise Breakdown 1
Slide 11: India Business
INDIA BUSINESS 10
Slide 12: Business Strategy
Business Strategy Home & Healthcare Foods Personal Care Leveraging g g the Increasing Premiumization Fruit equity Doctor & Differentiation associated with Advocacy the ‘Real’ brand Thrust on Strong Focus on building the innovation Healthy range OTC portfolio pipeline of products 11
Slide 13: Health and Well-Being
Health and Well Well-Being Being The underlying theme of Health and Well-Being cuts across the product portfolio including recent innovations 12
Slide 14: Building Doctor Advocacy
Building Doctor Advocacy • Front end teams to be separated for Healthcare (OTC & Doctor Advocacy is the key Ethicals)) and the rest of the Domestic FMCG business to to enhance consumer have focused attention on both segments of the business franchise • Demand generation from doctors shall be the key
Slide 15: Continue to build bigger brands
Continue to build bigger brands 14 14 brands with turnover of INR 1bn+ with 3 brands over 10bn
Slide 16: Competitive Position
Competitive Position #Relative Competitive Position #1 #1 #2 #2 #2 #1 # #1 #2 #3 #1 #1 Home and Personal Care Foods Healthcare 15 * Position basis Nielsen Market Share data MAT Dec’15
Slide 17: Disruptive Innovation
Disruptive Innovation •Chyawanprash y p is a leading g Health Supplement pp and Dabur has been instrumental in buildingg this category •Dabur took the lead in creating flavours and variants to widen the portfolio and cater across age groups •Portfolio of seven variants- variants inducting more consu
Slide 18: Disruptive Innovation
Disruptive Innovation •Real Fruit Juices were launched in 1998 and we have more than 30 variants in the portfolio •First to launch variants like Litchi, Guava, Pomegranate, Cranberry, Supafruits, and the ‘Activ’ range of fruit and veggie blends •Continuing C as market leader and focusing f on strong
Slide 19: Premiumization is the key …
Premiumization is the key … 18
Slide 20: International Business
INTERNATIONAL BUSINESS 19
Slide 21: Business Overview
Business Overview Dabur I t International(FY15) ti l(FY15) In INR Mn 23108 24226 18338 16161 8992 Organic Inorganic Business(70%) Business(30%) FY11 FY12 FY13 FY14 FY15 Europe • Saudi Arabia, UAE 12% Middle East Middle • Egypt, Nigeria, Kenya, South East Africa Africa America 32% • Turkey, Turkey UK
Slide 22: The Journey…
The Journey Journey… 2015-2018 2011-2014 2007-10 •Enter into African •Hobi and Namaste Markets acquired which led to •Expand portfolio 2003-2006 2003 2006 •Entry into Personal geographic hi expansion i •Cross pollinate Care segments •Innovative product ideas and leanings •Manufacturing offerings fro
Slide 23: Evolution of Amla brand
Evolution of Amla brand Oldest brand in IBD’s portfolio Hamam Zaith Leaveon Oils Shampoos & Conditioners Snake Oil Hair creams Hair Oils Variants Hair Oils 2003 22
Slide 24: Evolution of Vatika brand
Evolution of Vatika brand Largest brand in IBD’s portfolio tf li Hair Serum Hair Colors Hair H i Gels Hamam Zaith Conditioners Shampoo Hair Cream VHO 2003 23
Slide 25: Evolution of Dermoviva brand
Evolution of Dermoviva brand Launched in 2011 Toners Face scrub Face wash Wipes Skin Lotions Creams Hand Wash Skin Serum Soaps 24
Slide 26: Evolution of Oral Care
Evolution of Oral Care Launched in 2006 Anti- ageing Mouth wash RTP Herbal Toothpaste Miswak Herbal Gel Herbal ToothPaste 2006 25
Slide 27: Organic International Business
Organic O ga c International e a o a Business us ess Styling & Others Oral Care Others 5% Hamamzaith 4% 2% 11% Skin Care 6% Hair Oil 40% Oral Care 11% Shampoo Hair Hair Oil 13% Cream 93% 15% The Organic International Business has evolved from being just a Hair Oil business to a diversified personal
Slide 28: Inorganic Business
Inorganic o ga c Business us ess Key Geographies USA & Africa Key Geography Turkey Hair Straightening g g Styling y g Shampoo p Styling Liquid Skin & Shampoo & Conditioner Soapp y Care Body 27
Slide 29: Consolidated Financial Highlights 9MFY16
Consolidated Financial Highlights 9MFY16 Growth 7 1% 7.1% 16 9% 16.9% 17 9% 17.9% Sales EBITDA PAT Rs. 6278.6 crs Rs. 1267.3 crs Rs. 920.8 crs 28
Slide 30: Consolidated Margin Profile 9MFY16
Consolidated Margin Profile 9MFY16 55.1% 14.7% 20.2% 52% 13.3% 18.5% Q3FY15 Q3FY16 Q2FY15 Q2FY16 Q2FY15 Q2FY16 Gross Margin EBITDA Margin g PAT Margin g p 308bps p 169bps 134bps 29
Slide 31: Sustainability: A Key Focus
Sustainability: A Key Focus 1,141 acres under 2 028 beneficiary 2,028 b fi i 9,13,750 school cultivation for rare kids benefitting from families of our Self – medicinal herbs in our Healthcare Help Group initiatives India Initiatives 13 States covered 1,674 , 586 women trained farmers/beneficiaries
Slide 32: Share Price Performance, Dividends and Shareholding
Share Price Performance, Dividends and Shareholding Others DII 6% in INR bn 5% FII 466.5 20% 313.1 238.9 167.2 185.4 Promoters P t 68% FY11 FY12 FY13 FY14 FY15 Dividend History History* 250% 250% 200% 200% 200% 175% 175% 175% 140% 150% 130% 150% 115% FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
Slide 33: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L in Rs. million Q3FY16 Q3FY15 YoY (%) 9M FY16 9M FY15 YoY (%) Net Sales 21,224 20,736 2.4% 62,786 58,616 7.1% Other Operating Income 46 55 141 159 Material Cost 9,232 9,881 ‐6.6% 28,207 28,141 0.2% % of Sales 43.5% 47.7% 44.9% 48.0% Employee Costs 2,028 1,778 1
Slide 34: Statement of Assets and Liabilities
Statement of Assets and Liabilities in Rs. million As at 31/03/2015) As at 31/03/2014) Â EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 1756.5 1743.8 (b) Reserves and surplus 31784.99 31784 24815.88 24815 Sub-total - Shareholders' funds 33541.4 26559.6 2. Minority interest 181.6 159.
Slide 35: Thank You
Th k Y Thank You
Dabur India — Bank of America Merrill Lynch, Edelweiss & IIFL Investor Conferences 2016 on 6ix