Godrej Consumer Products Limited · NSE:GODREJCP

Godrej Consumer Products — Investor Presentation (October 2002)

28 slides from Godrej Consumer Products's investor presentation, October 2002

1. Slide 1: Godrej Consumer Products Limited

   Godrej Consumer Products Limited October 2002

2. Slide 2: Agenda

   Agenda  Background  Product Profile  Performance  Shareholder Value  Initiatives 2

3. Slide 3: Background

   Background 3

4. Slide 4: The Company

   The Company  GCPL is a result of the demerger of the Consumer Products Division of Godrej Soaps Limited (now renamed Godrej Industries Ltd.)  Focused FMCG company  Presence in Personal, Hair, Fabric & Household care market categories  Market Leadership in Hair Colour & Liquid Detergents  High S

5. Slide 5: Godrej Consumer - A new focus

   Godrej Consumer - A new focus Godrej Soaps Limited Godrej Consumer  Consumer business was part of the  GCPL emerges as one of the fastest conglomerate, with core profitability of the growing FMCG companies with a CAGR of consumer segment not being unlocked 20% for past 3 years  Godrej Industries

6. Slide 6: Godrej Consumer Products Ltd: A new management

   Godrej Consumer Products Ltd: A new management Board of Directors Qualifications  Adi Godrej - Chairman & Managing Director M.S. (MIT)  Jamshyd Godrej B.S. (Illinois Institute of Technology)  Nadir Godrej B.S. (MIT), M.S.(Stanford), M.B.A. (Harvard)  Bala Balachandran Distinguished Professor at

7. Slide 7: Current Shareholding Pattern & Shareholder Information

   Current Shareholding Pattern & Shareholder Information Individuals  GCPL shares are traded on The & Other Bodies Stock Exchange, Mumbai (BSE), Corporate National Stock Exchange (NSE) & Promoter 17.4% stock exchanges at Chennai, Group Kolkata, Delhi and Ahmedabad. 69.4%  Listed on BSE on 18-June-01

8. Slide 8: Facilities & Network

   Facilities & Network Manufacturing Facilities - 3 Branches - 4 C & F Agents - 32 Distributors - 2000 Retail Outlets covered - Above 500,000 Retail Coverage of any Godrej Soap - 1.6 mn Retail Coverage of any Godrej Hair Dye - 1.2 mn 8

9. Slide 9: Product Profile

   Product Profile 9

10. Slide 10: GCPL Brand Matrix

    GCPL Brand Matrix Rs mn Categories Industry GCPL's Market Key Godrej brands size sales share (%) Toilet soap 41,047 2,409 5.8 Cinthol Lime, Cinthol Regular, Cinthol International, FairGlow, Godrej No.1 Hair colour 2,572 1,117 44.6 Godrej Hair Dye - Liquid, Powder, ColourSoft, Nupur, Kesh Kala, Kali

11. Slide 11: Key Brands

    Key Brands Personal Care Hair Care Fabric & Household Care 11

12. Slide 12: Performance

    Performance 12

13. Slide 13: GCPL Performance Highlights

    GCPL Performance Highlights  GCPL outperformed its peers in the FMCG sector Market Growth GCPL Growth Q2 FY03 FY02 Q2 FY03 FY02 Toilet Soaps -3.1% -6% 16% 10% Hair Colour -1.5% 10% 18% 17% Liquid Detergents 22.4% -11% 51% 10% YoY Sales Growth (%) - 1400 30% GCPL vs FMCG Industry Total Sales (net of

14. Slide 14: Toilet Soaps

    Toilet Soaps  Contributed 63% to own branded sales in 700 Sales (net of excise) (Rs mn) H1 FY03 (58% in FY02) 600  Soap industry faced an extremely 500 challenging environment in FY02. The top 400 10 brands contracted and overall sales for 300 the industry was down by 6% 200  “Godrej No. 1” conti

15. Slide 15: Hair Colour

    Hair Colour Sales (net of excise) (Rs mn)  Contributed 27% to own branded sales in 300 H1 FY03 (25% in FY02) 250  Leader in this category with a 44.5% 200 market share in H1 FY03 (44.6% in FY02) 150  Presence across all price points: powder, 100 oil, liquid and high end fashion colours 50  Low p

16. Slide 16: Liquid Detergents

    Liquid Detergents  Contributed 8% to own branded sales in Sales (net of excise) (Rs mn) FY02 250  Ezee is the market leader with a share 200 of 83.3% in H1 FY03 (82% in FY02) 150  Demand is seasonal in nature with 100 application on woolens and soft clothing 50  Plans to introduce a product targ

17. Slide 17: Toiletries

    Toiletries Sales (net of excise) (Rs mn)  Contributed 8% to own branded sales in H1 120 FY03 (9% in FY02) 100  Presence in shaving cream, fairness cream, 80 talcum powder and deodorant 60  40 High growth category providing exciting 20 opportunities 0  Gaining market share in shaving creams Q1 Q2

18. Slide 18: Market Shares

    Market Shares 2000-01 2001-02 Apr-Sep’02 Toilet Soaps 5.6% 5.8% 5.8% Hair Colour 42.1% 44.6% 44.5% Liquid Detergents 75.9% 81.9% 83.3% Fairness Cream 2.1% 3.4% 2.5% Shaving Cream 10.3% 10.5% 12.1% Talcum Powder 1.7% 1.3% 1.7% Deodorant - - 1.5% Source : ORG Data All figures shown are % for All India

19. Slide 19: GCPL's Performance Highlights

    GCPL’s Performance Highlights Growth drivers for future earnings  Low incremental capex (Rsmn) FY2002 H1FY03 Depreciation (Rs mn) 94 45 Depreciation to net revenues % 2% 2% Net Block 935 906  Growth in revenues expected to exploit economies of scale in purchases and manufacturing, further enhancin

20. Slide 20: H1 FY03 Performance

    H1 FY03 Performance Power Brands:  Cinthol, Godrej FairGlow, Godrej No.1, Godrej Hair Colour, Ezee.  Power Brands sales grew by 17% Toilet Soaps  Godrej Brand Soaps sales grew by 14% (against degrowth of the category) from Rs.1158mn in H1 FY02 to Rs.1314mn in H1 FY03, led by Godrej No1 which grew

21. Slide 21: Summary Financials

    Summary Financials Rsmn FY2002 H1 FY03 Net sales * 4,586 2,335 Operating profit 755 425 Depreciation 94 45 Interest & Financial charges (net) 45 14 PBT 632 371 PAT 420 268 Networth 531 601 Debt 225 344 Net Fixed Assets 935 906 Net Current Assets (285) (63) Cash & cash equivalents 132 132 Operating P

22. Slide 22: Shareholder Value

    Shareholder Value 22

23. Slide 23: High Free Cash Flow Generation

    High Free Cash Flow Generation Strong EVA growth  Lower capital expenditure coupled with negative working capital enabled a high EVA of Rs301mn for FY02 (Rs.202mn for H1 FY03). EVA to capital employed at 40% for FY02 (41% in HI FY03)  GCPL generates significant free cash flows, which are returned

24. Slide 24: High Free Cash Flow Generation

    High Free Cash Flow Generation GCPL has completed the shares buyback  Shares bought back Number % of share capital Amt utilised Avg price Period 1,456,593 2.5 Rs.92.6mn Rs.64 Jan-Jun 2002 411,962 0.7 Rs.46.0mn Rs.111 Jul-Sep 2002 Third shares buyback  Approved by the Board of Directors on October

25. Slide 25: Share Price Performance

    Share Price Performance 210 BSE 200 Index BSE Sensex Godrej Consumer 190 140 Godrej Consumer Volume (RHS) 2500000 170 120 2000000 150 100 130 1500000 80 110 60 1000000 90 40 70 500000 20 50 0 0 Jul-01 Jul-02 Jun-01 ct-01 Jan-02 Jun-02 ct-02 Feb-02 ar-02 ec-01 ov-01 ay-02 ep-01 ep-02 pr-02 Jul-01 Jul

26. Slide 26: Initiatives

    Initiatives 26

27. Slide 27: Initiatives

    Initiatives  Divisionalisation of business carried out with the formation of Soap and Personal Care teams effective 1st Oct ’02 with mfg, procurement and marketing under one roof  Focus on Personal, Hair & Fabric care categories  Consumer centricity to guide all business actions  Restructuring o

28. Slide 28: Thank You

    Thank You 28

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