Dabur India Limited · NSE:DABUR
Dabur India — Deutsche Equities, IIFL Institutional Equities and J. P. Morgan Investor Conferences Septe (September 2017)
33 slides from Dabur India's conference presentation, September 2017
Slide 1: Investor Presentation September 2017
INVESTOR PRESENTATION SEPTEMBER 2017
Slide 2: Dabur Overview
DABUR OVERVIEW One of the oldest and largest FMCG Companies in the country World’s largest in Ayurveda and natural healthcare Total reach of 6 mn outlets, one of the highest among FMCG companies Nineteen world class manufacturing facilities catering to needs of diverse markets Strong overseas presen
Slide 3: Strong Financial Profile
STRONG FINANCIAL PROFILE In INR Bn Sales Profit After Tax (PAT) PAT PAT margin (%) 78.1 78.5 76.8 12.5 12.8 70.7 13.0 18.0% 61.5 11.0 10.7 16.0% 9.1 16.6% 15.9% 14.0% 9.0 7.6 12.0% 13.7% 7.0 12.4% 12.9% 10.0% 5.0 8.0% 6.0% 3.0 4.0% 1.0 2.0% FY13 FY14 FY15 FY16 FY17 -1.0 FY13 FY14 FY15 FY16 FY17 0.0%
Slide 4: Strong Financial Profile
STRONG FINANCIAL PROFILE Shareholders' Funds ROIC In INR Bn 53.0% 48.5 47.9% 43.6% 45.2% 41.7 38.3% 33.5 26.6 21.0 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Earnings Per Share 7.1 7.2 In INR 6.1 5.2 4.4 FY16 and FY17 are basis IND AS 3. FY13 FY14 FY15 FY16 FY17
Slide 5: Manufacturing Facilities
MANUFACTURING FACILITIES Twelve Domestic Manufacturing Locations in India Baddi, Himachal Pradesh Pantnagar, Uttaranchal Sahibabad, Uttar Pradesh Jammu, J&K Silvasa,Dadra & NagarHaveli Alwar, Rajasthan Katni, Madhya Pradesh Narendrapur,West Bengal Pithampur, Madhya Pradesh Tezpur, Assam Newai, Rajas
Slide 6: Tezpur Plant
TEZPUR PLANT • New manufacturing facility commissioned in Tezpur, Assam in March’17. • Investment of Rs 250 Crore • Largest production facility for Dabur across the globe • Will manufacture entire range of Dabur's Ayurvedic Medicines, Health Supplements, Hair Oils, Shampoos, Toothpastes, Skin Care a
Slide 7: Distribution Network
DISTRIBUTION NETWORK URBAN RURAL Factory Factory C&F C&F GT Stockist MT Stockist Insti Stockist Super Sockist Wholesaler Sub Sockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer Distribution reach of 6 mn retail outlets; Cover over 45000 villages directly 6.
Slide 8: Distribution Initiatives
DISTRIBUTION INITIATIVES Focus on enhancing field efficiencies • Inducted around 1000 Village salesmen on company rolls • Increase the outlet coverage per SSM Increasing Direct Reach • Near term target to increase direct reach to 1 mn outlets Product Focus • Rural Focused Product Mix • Innovative la
Slide 9: What is Ayurveda?
WHAT IS AYURVEDA? “ Ayurveda is the traditional system of healthcare which promotes PREVENTION and CURE • Ayurveda is based upon Natural Remedies which incorporate the healing properties of plants and herbs. • It is a holistic system which heals by activating the natural inherent curative force of t
Slide 10: Dabur & Ayurveda
DABUR & AYURVEDA Dabur has created the Ayurveda eco system over many decades involving R&D, medical fraternity, hospitals, patients along with manufacturing and selling the entire product range of Classical Ayurveda 9.
Slide 11: Claim Based Communication
CLAIM BASED COMMUNICATION Double immunity 2X faster physical growth Clinically proven formula Clinically proven formula Stay fit, feel young Dabur focuses on evidence based claims for its products 10.
Slide 12: Promoting Ayurveda: Doctor Reach
PROMOTING AYURVEDA: DOCTOR REACH Directly reaching • Detailing and Product 32000+ sampling Connecting Engaging Doctors Collaborating Promoting Association with 50 + Ayurvedic Colleges www.dabur Key Opnion Leaders mediclub.com 11.
Slide 13: Dabur Business Structure
DABUR BUSINESS STRUCTURE Dabur India Ltd. International Domestic (70%) (30%) Domestic Organic Acquired Others (4%) (69%) (31%) FMCG (66%) * Others include Retail, Commodity exports etc Note: % figure in brackets indicate % share in Consolidated Sales for FY17 12.
Slide 14: India Business
The Science of Ayurveda 13.
Slide 15: Sales by Business Vertical
SALES BY BUSINESS VERTICAL Domestic FMCG* Healthcare HPC Foods (31%) (50%) (19%) Health Supplements 17% Foods Skin & Salon 19% 5% Digestives 5% Domestic FMCG* OTC& Business Breakdown Home Care 7% Ethicals 9% Oral Care Hair Care 16% 22% * Breakdown of Domestic FMCG business basis FY17 Sales 14.
Slide 16: Market Leader in Categories
MARKET LEADER IN 6 CATEGORIES Leading position in key categories across verticals #Relative Competitive Position #1 #1 #2 #2 #2 #1 #1 #2 #3 #1 #1 Healthcare Home and Personal Care Foods * Position basis Nielsen Market Share data MAT Mar’17 15.
Slide 17: Business Strategy
BUSINESS STRATEGY Healthcare • Leadership in Ayurveda – scientific evidence & research • OTC portfolio to be scaled up through innovation & awareness creation • Doctor advocacy through Medico Marketing channel Home & Personal Care • Ayurvedic / Herbal focus • Premiumization & Differentiation • Stron
Slide 18: Focus on Innovations
FOCUS ON INNOVATIONS Dabur Red Gel Dabur Woman Dabur Restorative Tonic Ginger Madhurakshak Honitus Fem Ultra Gold Bleach 17. Dabur Brahmi Amla Hair Oil Real Wellnezz Amla
Slide 19: Continue to Build Bigger Brands
CONTINUE TO BUILD BIGGER BRANDS 16 brands with turnover of INR 1bn+ with 3 brands over 10bn 18.
Slide 20: Most Trusted Brands
MOST TRUSTED BRANDS • Dabur Red Paste and Dabur Hajmola – have been ranked amongst the biggest gainers in the latest Brand Equity Most Trusted Brands List • Dabur Red Paste moved up 66 places and was ranked 34 in the Brand Equity Most Trusted Brands 2016 list, released by The Economic Times, up from
Slide 21: International Business
INTERNATIONAL BUSINESS 20.
Slide 22: Business Overview
BUSINESS OVERVIEW In INR Mn 24226 24520 23108 23199 18338 FY16 and FY17 are basis IND AS FY13 FY14 FY15 FY16 FY17 Regionwise Sales:FY 2016-17 • Saudi Arabia, UAE Middle East • Egypt, Nigeria, Kenya, South Americas Africa Africa 17% Middle East • Turkey, UK Europe 31% Europe 13% • Nepal, Bangladesh,
Slide 23: The Journey
THE JOURNEY… 2015-2018 2011-2014 2007-10 2003-2006 •Enter into African •Hobi and Namaste Markets acquired which led to •Expand portfolio •Entry into Personal geographic expansion •Cross pollinate Care segments •Innovative product ideas and leanings •Manufacturing offerings from different units 2002
Slide 24: Organic International Business
ORGANIC INTERNATIONAL BUSINESS Others Oral Care Others Skincare 5% 2% 5% 8% Hair Oil Oral Care 37% 12% Hamamzaith & Styling 12% Hair Oil Hair Cream 93% Shampoo 14% 12% The Organic International Business has evolved from being just a Hair Oil business to a diversified personal care entity 23.
Slide 25: Recent Innovations - IBD
RECENT INNOVATIONS - IBD : 3, Herbal Olive Enamel Care iva Facial Flui Amla Men eT orTv—o Demoviva Facial Fluid Range Halr Tonic Toothpaste ae we ' . A ‘ aie) =' es es Pan - - | (Ex ses 4 “ STAND Vatika i Vatika Vatika : TOUGH \ hice: Be. Natika 3 bows a oe , — os @eeoe © STYLING GEL — Vatika Shampo
Slide 26: IBD: Business Strategy
IBD : BUSINESS STRATEGY Capitalize on the “Herbal Wave” trend Focus on Core Categories like Hair Care, Oral Care and Skin Care Leveraging Digital platform to enhance consumer awareness and brand visibility Optimize Advertising spends and capture better efficiencies Continued focus on brand innovatio
Slide 27: Consolidated Performance: FY17
CONSOLIDATED PERFORMANCE : FY17 In INR Mn Sales PAT 12770 78507 76801 12511 FY16 FY17 FY16 FY17 • Sales for FY17 declined by 2.2% and stood at Rs.76.8 bn. However, Sales were flattish in constant currency terms • PAT increased by 2.1% and stood at Rs.12.77 bn. • Operating margin increased from 19.3%
Slide 28: GST Impact
GST IMPACT • Netting of GST from sales will reduce topline by around 5% • No material impact on bottomline as net effect of GST is more or less neutral • GST roll off has been smooth with all direct channel partners coming on board • Wholesale trade yet to come back to normalcy; however other channe
Slide 29: Sustainability: A Key Focus
SUSTAINABILITY: A KEY FOCUS 2537 9.3 lakh farmers/beneficiaries saplings of rare herbs 1253 Household of our Agronomical distributed free of toilets constructed initiatives in India cost to farmers 2374 students 393 510 women trained Women gained literacy benefited from School at our vocational at o
Slide 30: Shareholding, M Cap and Dividend
SHAREHOLDING, M CAP AND DIVIDEND Market Cap In INR Bn 546 488 439 FIIs, 17.5% DIs, 8.9% Promoters, Retail , 5.6% 68.1% Mar'16 Mar'17 Aug'17 Dividend History 225% 225% 200% 200% 175% 175% 175% 150% 150% 130% 115% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 29.
Slide 31: Consolidated P&L: FY2016-17
CONSOLIDATED P&L : FY2016-17 In INR Mn DIL (Consolidated) P&L FY17 FY16 YoY (%) Net Sales 76,801 78,507 -2.20% Other Operating Income 214 180 18.40% Material Cost 38,432 38,496 -0.20% % of Sales 50.0% 49.0% Employee Expense 7,896 7,941 -0.60% % of Sales 10.3% 10.1% Advertising & Publicity 6,461 7,71
Slide 32: Statement of Assets and Liabilities
STATEMENT OF ASSETS AND LIABILITIES In INR Mn Particulars 31.3.2017 31.3.2016 ASSETS Non-current assets (a) Property, plant and equipment 14,790 12,388 (b) Capital work-in-progress 421 448 (c) Investment property 550 606 (d) Goodwill 4,105 4,105 (e) Other Intangible assets 139 181 (f) Financial asse
Slide 33: Thank You
Thank You For any queries and feedback please contact : investors@mail.dabur