Dabur India Limited · NSE:DABUR
Dabur India — Motilal Oswal 11th Annual Global Investor Conference 2015
35 slides from Dabur India's conference presentation, September 2015
Slide 1: Investor Presentation – Dabur India Ltd
INVESTOR PRESENTATION Dabur India Ltd
Slide 2: FMCG Growth Drivers
FMCG Growth Drivers Overview FMCG G th D Growth i Drivers Fourth largest sector in the economy Rising income driving purchases Current size of the Indian FMCG Market is around Growth of Modern Trade & USD 45 bn* Ecommerce Low penetration and Grown at an annual average of 11 per cent over the Consump
Slide 3: FMCG Sector Recent Performance
FMCG Sector Recent Performance FMCG Growth Rate Pi Price V l Volume V l Value 13.3% 10.3% The FMCG Industry has started to 8.0% show some revival in demand 6 1% 6.1% 10 1% 10.1% 5.3% 7.0% 3.5% 0.6% 1.5% 4.7% 4.6% 4.5% 3.3% 3.3% Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Consumer Confidence Index #1 #1 #1 #1
Slide 4: Dabur Overview
Dabur Overview Dabur Gastrina wins One of the oldest and largest FMCG Silver at Cannes 2015 Companies in the country Dedicated to the Health and Well- Being of every household World’s largest g in Ayurveda y and natural Dabur ranked amongst healthcare India's Super 50 Companies by Forbes India Ltd 2
Slide 5: Key Milestones
Key Milestones • Established by Dr SK Burman in Kolkata 1884 • Came out with first public issue 1994 • Inducted professional management 1998 • Crossed the 1000 crs turnover mark 2000 • Dabur acquired Balsara 2005 • Acquired Fem Pharma 2008 • Acquired Hobi and Namaste 2010 • Dabur crosses billion dol
Slide 6: Global Business Footprint
Global Business Footprint UK Turkey Nepal UAE U.S. Egypt B’Desh Nigeria Sri Lanka Key markets Manufacturing Facilities 5
Slide 7: Domestic Distribution Structure
Domestic Distribution Structure Factory Total reach at 5.3 mn retail outlets, one of the highest among FMCG companies Depot (Carry & Forward Agents) Stockists Super stockists Insti Stockists Modern Trade Stockist Sub stockists Wholesalers Rural trade Retail trade Insti customers Shoppers & Consumers
Slide 8: Dabur Performance Snapshot
Dabur Performance Snapshot Sales in INR bn Market Cap 70.7 78.1 61.5 in INR bn 52.8 40.8 466.5 313.1 FY11 FY12 FY13 FY14 FY15 238.9 167.2 185.4 Profit After Tax in INR bn 10 7 10.7 FY11 FY12 FY13 FY14 FY15 9.1 7.6 5.7 6.4 Robust profitable growth translating into superior shareholder returns FY11 FY
Slide 9: Strong Financial Profile
Strong Financial Profile Net Worth (INR Bn) ROIC 33.5 45.2% 43.6% 26.6 38.3% 32.7% 34.0% 21.0 17.2 13 9 13.9 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 *EBITDA Margin EPS 6.1 20.4% 5.2 4.4 18.9% 18 2% 18.2% 37 3.7 17.9% 17.8% 3.3 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 *includes Non
Slide 10: Business Structure
Business Structure Domestic FMCG (66%) Domestic (69%) Others (3%) Dabur India Organic Ltd. I t International ti l (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 9
Slide 11: Sales By Business Vertical
Sales By Business Vertical Domestic FMCG Business FY15 Healthcare Health HPC Foods care Health (33%) Supplements 18% Foods Domestic Skin Care 19% Digestives HPC(48%) 5% 6% FMCG* Oral Care OTC & Hair 14% Ethicals Care 9% 23% Foods(19%) Home Care 6% International Sales FY15 Europe 12% International Bu
Slide 12: Continue to build bigger brands
Continue to build bigger brands INR 10bn+ INR 1bn+ 14 brands with turnover of INR 1bn+ with 3 brands over 10bn 11
Slide 13: Competitive Position
Competitive Position We continue to lead across verticals- Healthcare , HPC and Foods #Relative Competitive Position #1 #1 #2 #2 #2 #1 #1 #2 #3 #1 #1 H Home and dPPersonall Care C Foods Healthcare * Position basis Nielsen Market Share data MAT June’15 12
Slide 14: Domestic Growth Strategy
Domestic Growth Strategy Continued Focus on Innovation Building Consumer Connect Distribution Expansion Focus on Health and well being 13
Slide 15: Continued Focus on Innovation
Continued Focus on Innovation 14
Slide 16: Recently launched
Recently launched India Dabur Almond Dabur Baby Massage Hajmola Yoodley- Six Real Wellnezz- Jamun Shampoo Oil flavours International Dermoviva Baby Range- Olive Enriched Vatika Naturals Damage Repair Vatika Shampoo- Black Powder and Olive Baby Soap Leave On Cream Olive 15
Slide 17: Product Evolution
Product Evolution Chyawanprash Red Toothpowder Hajmola Amla Hair Oil 16
Slide 18: Building Consumer Connect
Building Consumer Connect 17
Slide 19: Key Activations
Key Activations •Initiated I iti t d the th association i ti with ith ‘S ‘Sulabh’ l bh’ iin our endeavour d tto jjoin i hhands d with ith IIndia’s di ’ Sanifresh: Swachh ‘Swachh Bharat Mission’ Bharat Initiative •This initiative was designed to help educate consumers on the need to use toilets to ma
Slide 20: Increasing Doctor Advocacy
Increasing Doctor Advocacy Project LEAD: Leveraging Through Empowered Anchoring & Detailing Doctor Advocacy is the key to • Front end teams to be separated for Healthcare (OTC & Ethicals) and the rest of the Domestic FMCG business to enhance consumer franchise have focused attention on both segments
Slide 21: Distribution Expansion
Distribution Expansion 20
Slide 22: Enhancing Reach
Enhancing Reach • R ll d outt iin FY13 tto expand Rolled d di directt coverage iin rurall markets k t • Direct Village coverage has increased from 14000 villages in FY11 to 44,000 Project Double villages in FY15 • We plan to increase the coverage to 50,000 villages in FY16 and 60,000 in FY17 • Aimed
Slide 23: Focus on Health and Well being
Focus on Health and Well being g 22
Slide 24: Health & Well Being – Ayurveda core philosophy
Health & Well Being Health & Well being - The underlying theme across the portfolio • Ayurveda – Dabur’s core philosophy • y Pioneered extension of Ayurveda into p personal care and OTC healthcare Dabur Baby Massage Oil Focus on Ayurvedic Innovations in Dab r Honey Dabur Hone Free of paraffin and pa
Slide 25: Health & Well Being focus extended to HPC and Foods
Health & Well Being Health & Well Being focus has been extended to HPC and Foods Recently Red Tooth Paste- introduced the Focused on Ingredient ‘Real Wellnezz” Effectiveness range with the Jamun flavour Odomos Protection from Dengue Sanifresh- Toilet Cleaner Activ To safeguard the health of the Juic
Slide 26: International Business Overview
International Business Overview In INR Mn 24226 23108 Key Markets Middle South 18338 Africa 16161 East Asia 8992 Key Categories Hair Skin Oral Care Care Care FY11 FY12 FY13 FY14 FY15 International Sales FY15 •Comprises 31% of Consolidated Sales in FY15 Europe 12% •Localized supply chain network for
Slide 27: International – Competitive Position
International- Competitive Position 44.1% Hair Cream* 36.5% 36.6% No.1 Position in the Hair Cream Category in KSA, UAE and Egypt gyp KSA UAE Egypt 64.8% 67.3% Hair Oils* No 1 Position in the Hair Oils No.1 27.5% Category in KSA & Egypt and No.2 in UAE KSA S UAE Egypt *Volume Market Share Mat March 2
Slide 28: Region wise Strategy
Region wise Strategy Middl Middle Africa Asia America Europe East Increase product Leveraging Increase Increase share of width and product technology Cross pollinate to penetration in Hair Ethnic Hair Care penetration in and consumer grow the Turkish Care across by scaling up neighboring insights fo
Slide 29: Financial Highlights FY2014-15
Financial Highlights FY2014-15 Growth 10.7% 14.5% 16.6% Sales EBITDA PAT Rs. 7806 crs Rs. 1474 crs Rs. 1066 crs 28
Slide 30: Margin Profile FY 2014-15
Margin Profile FY 2014-15 52 3% 52.3% 18 9% 18.9% 13.7% 51.8% 18.3% 13.0% FY14 FY15 FY14 FY15 FY14 FY15 Gross Margin EBITDA Margin PAT Margin g 55bps 63bps 70bps p 29
Slide 31: Sustainability: A Key Focus
Sustainability:A Key Focus Dabur is committed to being a responsible company and making a positive contribution to Society and Environment 1 141 acres under 1,141 2 028 beneficiary families 2,028 9 13 750 school kids 9,13,750 cultivation for rare medicinal of our Self – Help Group benefitting from o
Slide 32: Share Price Performance, Dividend & Shareholding
Share Price Performance , Dividend & Shareholding Share Holding Pattern As on 30th June 2015 Share Price Trend Others DII 6% 5% FII 21% Promoters 68% Dividend History* 250% 250% 200% 200% 200% 175% 175% 175% 140% 150% 150% 130% 115% FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 *B
Slide 33: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L in Rs. million Q1FY16 Q1FY15 YoY (%) Net Sales 20,641 18,639 10.7% Oh O Other Operating i IIncome 54 50 Material Cost 9,557 9,226 3.6% % of Sales 46.3% 49.5% Employee Costs 1,892 1,569 20.6% % of Sales 9.2% 8.4% Adpro 3,306 2,863 15.5% % of Sales 16.0% 15.4% O
Slide 34: Statement Of Assets & Liabilities
Statement Of Assets & 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 1756.5 1743 8 1743.8 (b) Reserves and surplus 31784.9 24815.8 Sub-total - Shareholders' funds 33541.4 26559.6 2. Minority interest 181.6 159.1
Slide 35: Thank You
THANK YOU OU
Dabur India — Motilal Oswal 11th Annual Global Investor Conference 2015 on 6ix