Slide 1: Investor Presentation November 2019
INVESTOR PRESENTATION November 2019
Slide 2: 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
Slide 3: Table of Contents
TABLE OF CONTENTS • Company Overview………………… 4 • Strategy Framework……………….. 13 • India Business…………………......... 16 • International Business……………... 27 • Key Areas of Transformation…........ 32 • Financial Highlights………………… 44 • Sustainability …………………......... 47 • Stock Information………………...... 54 • A
Slide 4: Company Overview
COMPANY OVERVIEW Investor Presentation | November 2019 4 < Previous | Next >
Slide 5: Marico at a Glance
MARICO AT A GLANCE One of India’s leading Consumer Products companies operating in the Beauty & Wellness space. 25+ Years $ 6.6 bn. 25% Operating since 1990 Market Capitalisation as on 31 October 2019 Total Shareholder Return CAGR since listing in 1996 16,909 INR 7,334 cr. INR 930 cr. ($ 1.05 bn.) (
Slide 6: Interesting Facts
INTERESTING FACTS Parachute World’s largest coconut oil brand 2,348 >5,000 Population of towns Size of Company workforce largely covered by Marico’s distribution network 1 out of 10 Coconuts grown in India are used by Marico 50% 185+ million of our talent in consumer facing functions in Technology a
Slide 7: Milestones in Marico's Journey So Far
MILESTONES IN MARICO’S JOURNEY SO FAR Harsh Mariwala, a young Harsh discovers the Marico launches First overseas Nihar enters graduate, joins the family ubiquitous Parachute Hair & Care, non- manufacturing facility Marico’s fold business blue bottle sticky hair oil in Bangladesh 1971 1974 1980 1990
Slide 8: Geographical Presence
GEOGRAPHICAL PRESENCE Marico aspires to be a leading emerging market MNC with a leadership position in the categories of Leave-in Hair Nourishment, Foods, Skin Care and Male Grooming in a few chosen markets in Asia and Africa. South India Africa Middle South East & East Asia North Bangladesh Africa
Slide 9: Board of Directors
BOARD OF DIRECTORS Mr. Harsh Mariwala Mr. Saugata Gupta Mr. Ananth Narayanan Chairman & Non-Executive Director Managing Director & CEO Additional (Independent) Director Mr. B. S. Nagesh Ms. Hema Ravichandar Mr. Nikhil Khattau Independent Director Independent Director Independent Director Mr. Rajeev
Slide 10: Management Team
MANAGEMENT TEAM Mr. Saugata Gupta Mr. Ashish Joshi Mr. Amit Prakash Mr. Gaurav Mediratta Managing Director & CEO Chief Operating Officer, SE Asia, Middle Chief Human Resources Executive Vice-President East & Africa Business Officer & Head - Legal Mr. Jitendra Mahajan Mr. Koshy George Mr. Sanjay Mish
Slide 11: Core Values
CORE VALUES Our value system in 3 simple words – “Make A Difference”. Boundarylessness Opportunity Innovation Transparency Consumer Bias For Excellence Global Seeking & Openness Centric Action Outlook Our values form the base of our unique culture and is the guiding force behind our actions. Investo
Slide 12: Living Marico's Purpose
LIVING MARICO’S PURPOSE “To transform in a sustainable manner, the lives of those we touch, by nurturing and empowering them to maximise their true potential.” CUSTOMERS SHAREHOLDERS SOCIETY MEMBERS BUSINESS ASSOCIATES Investor Presentation | November 2019 12 < Previous | Next >
Slide 13: Strategy Framework
STRATEGY FRAMEWORK Investor Presentation | November 2019 13 < Previous | Next >
Slide 14: Choice Making Framework - Where to Play
CHOICE MAKING FRAMEWORK - WHERE TO PLAY Per Capita Population Maturity Retail Income Emerging Economies with Large Young Population – Low Penetration in our chosen High Proportion of Traditional Lower but Fast Growing Per Demographic Dividend categories. Lower Intensity of Retail Capita Income Compe
Slide 15: Inorganic Growth Opportunities - Playbook
INORGANIC GROWTH OPPORTUNITIES - PLAYBOOK Key Attributes Select Hair Male Existing Markets in Categories Nourishment Grooming Markets Markets Asia and New Markets Africa o Market Leader Brand o Strong Distribution Past Acquisitions/Strategic Investments 2006 2007-08 Existing Markets o Helps Build Sc
Slide 16: India Business
INDIA BUSINESS Investor Presentation | November 2019 16 < Previous | Next >
Slide 17: India Business Overview
INDIA BUSINESS OVERVIEW India Business Revenue (in INR cr.) India Business EBITDA (in INR cr.) CAGR 11% CAGR 14% Share of Group Revenues 78% 2012 2019 2012 2019 MEDIUM TERM EXPECTATIONS Revenue Operating Volume Growth Growth Margins 13-15% 8-10% (depending on 20%+ levels inflation) Investor Presenta
Slide 18: Portfolio: Beauty & Wellness
PORTFOLIO : BEAUTY & WELLNESS Coconut Oil Leave-in Hair Healthy Foods Male Grooming Nourishment • Parachute • Parachute Advansed • Saffola • Set Wet • Nihar Naturals • Nihar Naturals • Parachute Advansed • Oil of Malabar • Hair & Care Men • Livon Investor Presentation | November 2019 18 < Previous |
Slide 19: Coconut Oil
COCONUT OIL Market : ~INR 55 bn* (~USD 775 mn) Only Player with Nation-wide Reach – Dominant Market Leader Parachute 53% Nihar 6% Oil of Malabar 1% Total Volume Share ~60% Parachute Nihar Oil of Malabar ~5% 30-35% ~46% Last 5 Year Volume CAGR Estimated % of the Market (in volumes) FY19 India in Para
Slide 20: Value Added Hair Oils (1/2)
VALUE ADDED HAIR OILS (1/2) Market : ~INR 81 bn (~USD 1.1 bn) 25% 27% 14% 2% 18% 14% Not present Light Hair Oils Amla Oils Value Added Cooling Oils Anti-Hair Fall Others Coconut Oils Likely Medium Term Volume Growth – Double Digit Likely to see sustained growth Market Leader in Hair Oils FY19 India
Slide 21: Value Added Hair Oils (2/2)
VALUE ADDED HAIR OILS (2/2) Belief in benefits of Leave-in v/s Rinse-off solutions Improves Reduces Reduces Softens Improves Thickness, Protein Breakage Hair Shine Strength And Loss Length Over the years, with economic growth, consumers have been upgrading Base Oils Better Sensorials Functional Bene
Slide 22: Healthy Foods - Saffola
HEALTHY FOODS - SAFFOLA Evolution from an edible oil brand to a leading healthy lifestyle brand o On the back of rising incomes and increasing relevance of healthy living ~20% FY19 India o Extension of brand equity into Healthy Foods for breakfast, in-between meals, superfood nutrition and meal repl
Slide 23: Premium Hair Nourishment
PREMIUM HAIR NOURISHMENT Market : ~INR 1.9 bn (~USD 27 mn) Likely Medium Term Value Growth: Mid-Teens o Tail wind category with low penetration o Focus on driving category growth through ~64% Volume Market Share ~1 % innovation and consumer engagement Leader in Leave-in Hair Conditioners India Busin
Slide 24: Male Grooming
MALE GROOMING o Marico acquired Set Wet in May 2012 o Tail wind category with low penetration o Caters to millennials – therefore huge growth potential Hair Gels/ Creams Deodorants Market: INR 3.4 bn (~USD 49 mn) Market: INR 21.8 bn (~USD 338 mn) Likely Medium Term Value Growth: Mid-Teens Medium Ter
Slide 25: Strong Distribution Network
STRONG DISTRIBUTION NETWORK OVERALL REACH: 5.0 MILLION OUTLETS OUT OF 10.1 MILLION OUTLETS – HUGE HEADROOM FOR GROWTH Channel Split: Modern Trade (includes E-Commerce) has Urban – Rural Split : Rural sales up from 26% in FY10 to 32% in outpaced the other channels. E-Commerce, currently at ~4%, FY19.
Slide 26: Brands with a Purpose
BRANDS WITH A PURPOSE o Nihar Shanti Amla “Chhote Kadam Pragati Ke Aur” o Saffolalife “Chhote Kadam – Dil ke Bade Kaam ke” o Promoting healthy recipes by engaging with the consumer via “Fitfoodie.com” Investor Presentation | November 2019 26 < Previous | Next >
Slide 27: International Business
INTERNATIONAL BUSINESS Investor Presentation | November 2019 27 < Previous | Next >
Slide 28: Marico International
MARICO INTERNATIONAL Share of International Business Revenues (%) International Business Revenues (in INR cr.) 1,578 1,345 1,356 1,364 FY10 53% 33% 11% 3% 1,284 1,168 FY19 46% 15% 8% 26% 5% Bangladesh MENA South Africa South East Asia Others FY14 FY15 FY16 FY17 FY18 FY19 MEDIUM TERM EXPECTATIONS Sha
Slide 29: International Portfolio
INTERNATIONAL PORTFOLIO Bangladesh Vietnam Middle East South Africa Egypt 46% 22% 11% 8% 4% Categories : Coconut Oil, Categories: Male Categories : Coconut Oil Categories : Ethnic Hair Categories : Male Styling Hair Nourishment, Hair Grooming & Foods & Hair Nourishment Care & OTC Health Care Colors
Slide 30: International Portfolio - Brands
INTERNATIONAL PORTFOLIO - BRANDS X-Men - Vietnam Thuan Phat - Vietnam Parachute Gold – Middle East & Egypt Parachute, VAHO and Hair Colours - Bangladesh Hair Code & Fiancee - Egypt Caivil, Black Chic, Hercules & Ingwe – South Africa Code 10 – Malaysia & Myanmar Investor Presentation | November 2019
Slide 31: Market-wise Focus Areas
MARKET-WISE FOCUS AREAS Bangladesh Vietnam Middle East South Africa Egypt 46% 22% 11% 8% 4% • Leverage distribution • Grow market in male • Gain back lost share in • Build Scale in South • Grow core market network shampoo/shower gels hair oils, creams/gels Africa • Establish Value Added Hair Oils •
Slide 32: Key Areas of Transformation
KEY AREAS OF TRANSFORMATION Investor Presentation | November 2019 32 < Previous | Next >
Slide 33: Key Areas of Transformation
KEY AREAS OF TRANSFORMATION INNOVATION GO TO MARKET TALENT & CULTURE IT & ANALYTICS STRATEGY Investor Presentation | November 2019 33 < Previous | Next >
Slide 34: Innovation - Premiumise Within Core Hair Oils
INNOVATION – PREMIUMISE WITHIN CORE HAIR OILS Parachute Advansed Aloe Vera Enriched Coconut Hair Oil Hair & Care Dry Fruit Oil Investor Presentation | November 2019 34 < Previous | Next >
Slide 35: Innovation - Building Categories of the Future
INNOVATION – BUILDING CATEGORIES OF THE FUTURE Premium Personal Care Healthy Foods Male Grooming Livon Saffola FITTIFY Gourmet Set Wet Kaya Youth O2 Coco Soul Set Wet Studio X Investor Presentation | November 2019 35 < Previous | Next >
Slide 36: Innovation - Premium Hair Care
INNOVATION – PREMIUM HAIR CARE Livon Serum for Dry and Livon Serum Unruly Hair Colour Protect Livon Shake and Spray Serum Investor Presentation | November 2019 36 < Previous | Next >
Slide 37: Innovation - Premium Skin Care
INNOVATION – PREMIUM SKIN CARE Kaya Youth O2 Skin Care Range – Face Wash | Day Cream | Micellar Water | Face Wipes Investor Presentation | November 2019 37 < Previous | Next >
Slide 38: Innovation - Broaden and Scale-up of Healthy Foods Portfolio
INNOVATION – BROADEN AND SCALE-UP OF HEALTHY FOODS PORTFOLIO Green Coffee Virgin Coconut Oil (including infused Moringa Green Tea versions) Hi-Protein Meal Soups Peanut Coconut Butter Hi-Protein Meal Shakes Coconut Sugar Superfood Quinoa - – Poha and Upma Coconut Spread Superfood Millet – Poha and U
Slide 39: Innovation - Extend into Complete Range in Male Grooming
INNOVATION – EXTEND INTO COMPLETE RANGE IN MALE GROOMING Set Wet Global Edition Set Wet Waxes Set Wet Studio X Range | Charcoal Range Perfume Sprays Investor Presentation | November 2019 39 < Previous | Next >
Slide 40: Innovation - Diversify Play in Key International Markets
INNOVATION – DIVERSIFY PLAY IN KEY INTERNATIONAL MARKETS Parachute Advansed Petroleum Jelly in Bangladesh ‘Parachute Just for Baby’ Baby Skin Care range in Bangladesh ‘Sedure’ Female Grooming range in Vietnam Investor Presentation | November 2019 40 < Previous | Next >
Slide 41: Go-to-Market: Building Future-Ready Distribution
GO-TO-MARKET : BUILDING FUTURE-READY DISTRIBUTION Leverage IT & Analytics • PDAs, ISRO, RETINA New-Age & Specialty Channels • Specialist GT, Modern Trade, E-Commerce Distribution Expansion • Direct Reach & Wholesale Investor Presentation | November 2019 41 < Previous | Next >
Slide 42: Talent Value Proposition & Culture
TALENT VALUE PROPOSITION & CULTURE Early Empowerment Tapping global resources for Learning & Development Young Board & Reverse Mentoring Deploying Artificial Intelligence Seeding “Engine 2” Investor Presentation | November 2019 42 < Previous | Next >
Slide 43: IT & Analytics
IT & ANALYTICS Digitize Operations AUTOMATION LISTEN ANALYTICS INTEGRATED CONSUMER REACH End EXPERIENCE Consumers SELL ENGAGE Innovate Business INNOVATE Models Investor Presentation | November 2019 43 < Previous | Next >
Slide 44: Financial Highlights
FINANCIAL HIGHLIGHTS Investor Presentation | November 2019 44 < Previous | Next >
Slide 45: 5 Years Trends
5 YEARS TRENDS Revenues & EBITDA Margin PAT & PAT Margin 12.7% 13.5% 12.9% 19.5% 11.8% 17.5% 18.0% 17.5% 15.2% 10.0% 5,733 6,024 5,936 6,333 7,334 573 711 799 814 930 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Revenue (in INR cr.) EBITDA Margin (%) PAT (in INR cr.) PAT Margin (%) Net Worth an
Slide 46: Dividend Payout
DIVIDEND PAYOUT Focus on maximization of shareholder value Payout has been increasing over the years with higher cash generation FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Dividend Payout Ratio 24% 30% 70% 64% 78% 76% Dividend pay-out shall remain at current levels, unless any organic/inorganic growt
Slide 47: Sustainability
SUSTAINABILITY Investor Presentation | November 2019 47 < Previous | Next >
Slide 48: Key Focus Areas and 2022 Targets
KEY FOCUS AREAS AND 2022 TARGETS RESPONSIBLE RESOURCE PRODUCT RESPONSIBILITY CONSUMPTION • Ensure adherence to all consumer health and • Reduce energy intensity by 50% safety standards and compliance • Water Stewardship - Offsetting 100% of water consumed in operations CLIMATE CHANGE COMMUNITY DEVEL
Slide 49: Impact Till Date (1/4)
IMPACT TILL DATE (1/4) Marico’s environmental agenda is to achieve resource efficiencies and reduce the impact of our operations on the environment ENERGY EMISSIONS Achieved 25% reduction in 73% of total energy sourced in Achieved 56% reduction in GHG We account Scope I and II GHG energy intensity f
Slide 50: Impact Till Date (2/4)
IMPACT TILL DATE (2/4) WATER SUSTAINABLE PACKAGING We have adopted the 3R approach – Reduce, Recycle and Replenish • We have implemented plastic EPR action plan in-line with CPCB Marico has undertaken requirement. In FY 2018-19, we created • About 93% of plastics used in our packaging is recyclable
Slide 51: Impact Till Date (3/4)
IMPACT TILL DATE (3/4) FARMERS MARICO INNOVATION FOUNDATION (MIF) Marico flagship program: Conducted 100+ farmer KALPAVRIKSHA launched in trainings and about 11,800+ 2017 – has improved coconut farmers enrolled under the MIF aims to nurture innovation MIF Scale Up program has tackled farmer’s yield
Slide 52: Impact Till Date (4/4)
IMPACT TILL DATE (4/4) BRANDS WITH A PURPOSE EDUCATION “Saffolalife” continues with the vision of creating a Heart Healthy India. • We have touched the lives of nearly 200,000 consumers through “Nihar Mobile Pathshala” Nihar has contributed to the health check and awareness camps till date. houses q
Slide 53: External Ratings
EXTERNAL RATINGS Marico has been rated by MSCI ESG Ratings from 2015 onwards. Our 2019 rating stands at ‘A’. A A BBB BBB BB 2015 2016 2017 2018 2019 Marico has submitted its first Marico is preparing for the Dow response to CDP’s “Climate Change” Jones Sustainability Indexes (DJSI) & “Water” questio
Slide 54: Stock Information
STOCK INFORMATION Investor Presentation | November 2019 54 < Previous | Next >
Slide 55: Stock Information
STOCK INFORMATION Top Institutional Shareholders Stock Data First State Investments Premji Invest Bloomberg Ticker MRCO IN EQUITY BSE Ticker 531642 Arisaig Partners BlackRock NSE Ticker Marico Morgan Stanley Investment Mgmt. Wellington Management Market Capitalization (INR Cr.) – October 2019 47,255
Slide 56: Awards & Accolades
AWARDS & ACCOLADES Investor Presentation | November 2019 56 < Previous | Next >
Slide 57: Awards & Accolades
AWARDS & ACCOLADES Featured among the Top 5 Companies in the Ranked 32nd in India's Best Companies Featured as one of the "Best S&P BSE 100 Index in Corporate Governance to Work For in 2018 Workplaces in Manufacturing 2019” Marico CQA Team received Special Recognized as one of the ‘Most Honored Reco
Slide 58: Marico Limited Investor Relations
MARICO LIMITED CIN - L15140MH1988PLC049208 7th Floor, Grande Palladium 175, CST Road, Kalina, Santa Cruz (East) Mumbai- 400 098 www.marico.com More Websites: www.artofoiling.com www.saffolalife.com www.niharnaturals.com www.saffolafittify.com www.hairsutras.com www.fitfoodie.in www.parachuteadvansed