Slide 1: Investor Presentation September 2013
Investor Presentation September’ 2013
Slide 2: Forward-looking statements disclaimer
Some of the statements made in this presentation may look forward looking information that involves number of risks and uncertainties. Such statements are based on certain assumptions, estimates, projections or plans that are inherently subject to significant risks, uncertainties and contingencies t
Slide 3: Company Overview
Company Overview Emami Limited, the flagship company of the Emami Group, is a leading FMCG player in India The Company is promoted by Mr. R.S. Agarwal and Mr. R.S. Goenka Emami has been in the health, beauty and personal care since the last 35 years and has sustained its prominent position in
Slide 4: Shareholding Pattern
Shareholding Pattern Others, MFs / FIIs, 8.6% 18.7% Promoters 72.7% Listed on the NSE, BSE and Kolkata stock exchanges Market capitalisation of over Rs. 100 bn (USD 1.7bn) Return to investors of over 300% following the QIP in July 2009 4
Slide 5: Board of Directors
Board of Directors S.N. Promoter Directors S.N. Independent Directors 1 Sri R. S. Agarwal 8 Sri K. N. Memani, ex‐Country Head of E&Y, India 2 Sri R. S. Goenka 9 Sri Y. P. Trivedi, eminent tax expert & advocate, Rajya Sabha member 3 Sri S. K. Goenka 10 Sri P. K. Khaitan, Advocate & Sr. Partner of M/s
Slide 6: Strategy
Strategy Aggressive promotion through celebrities Expand distribution – reach rural Differentiated ‘Value For Money’ products Drive Product innovation to enter new categories Brand extensions Revenue Entry in new geographies – drive exports Leveraging existing distribution network St
Slide 7: Snapshot of Power Brands
Snapshot of Power Brands Market Market Emami’s Market Share in % Power Brand Segment Size Size 2010 2013 (INR in (USD in Millions) Millions) Navratna Oil Cooling oil 8,100 133 49 55 Boroplus Cream Antiseptic Cr. 3,600 59 74 74 Zandu & Mentho Balm 7,000 115 57 58 Plus Balm Fair & Handsome Men's fairn
Slide 8: Low penetration ….Big opportunity
Low penetration ….Big opportunity 100.0% 95.7% 92.3% 88.6% 90.0% 80.0% 74.5% 72.8% 70.0% 60.4% 60.0% 51.0% 50.0% 40.0% 30.0% 18.6% 20.0% 10.0% 1.6% 1.1% 0.0% Toilet Washing Detergent Hair Toothpaste Shampoo Talcum Fairness Antiseptic Cold Soap Powders Bar Oil Powder Cream Cream Cream Low penetration
Slide 9: Domestic Reach
Domestic Reach Strong foothold in rural India Nation-wide domestic distribution network • 3000+ distributors, • 600,000+ retail outlets, • Brand reach 4mn outlets Team of 2500 front line sales force Domestic Sales on cash basis East, North, 19% 30% South, West, 21% 30% Geographical breakup o
Slide 10: Global Reach
Global Reach age a Emami InternationiakFocused Markets NORTH AFRICA 3. EGYP 14. SUDAN A J x Ne ’ SEA Markets 15. MOROCCO \ r ‘ \ a a P 20. MYANMAR \ GCC Region 21, MALAYSIA z : { \ ©2454 22. VIETNAM 7 5. KSA | Rest of AFRICA 8. BAHRAIN | SAARC Markets ; 4 17. ANGOLA DG 10. BANGLADESH 18. KENYA h. 41
Slide 11: International business revenue breakdown
International business contributes around 11% of the total revenue Growing at a CAGR of 16% over last 4 years Others, 14% AFRICA, 9% SAARC, 45% CIS, 13% GCC, 20% Internationally, products available in 75 countries – strong growth coming from SAARC and Middle East 11
Slide 12: Research Capabilities
Research Capabilities Focus: Product innovation, product differentiation, cost control and maintaining excellent product quality Team comprises qualified Ayurvedacharyas and specialized Ayurveda scientists; advisory panel comprising top Ayurvedic experts A modern fully equipped laboratory with
Slide 13: Celebrity Endorsements
Celebrity Endorsements Celebrated and acclaimed personalities from entertainment and sport have endorsed Emami products over the years
Slide 14: New Launches
New Launches The new launches like Navratna Cool Talc, Boroplus Body Lotion, Navratna Extra Thanda Oil, Malai Kesar Cold Cream and Vasocare Petroleum Jelly are performing very well Continue to launch 2-3 innovative products / brand extensions every year Ayurvedic healthcare, Hair care and Skin
Slide 15: Navratna Oil
Navratna Oil o Market size of Rs. 8100 mn ($133mn) o Market leader with increased market share of 55% oGrowing at CAGR of 22% in last 3 years o Commissioned some of the most visible brand ambassadors (Amitabh Bachchan, Shahrukh Khan, and Mahesh Babu, Chiranjeevi and Upendra for South) o Navratna Bra
Slide 16: Boroplus Antiseptic Cream
Boroplus Antiseptic Cream o Market size of Rs. 3600 mn ($59mn) o Leader in the antiseptic cream market with a 74% share o Largest selling antiseptic cream not only in India but also in Ukraine, Russia and Nepal oGrowing at CAGR of 16% in last 3 years o Boroplus Brand ranked 16th among India’s most t
Slide 17: Fair & Handsome Fairness Cream
Fair & Handsome Fairness Cream o Launched in October 2005; first fairness cream for men in India o Market size at Rs. 3300 mn ($54mn) with a market share of 56% o Fair and Handsome ranked 25th among India’s most trusted brands in Personal care category by Brand Equity Survey, 2012 o Growing at CAGR
Slide 18: Zandu & Menthoplus Balm
Zandu & Menthoplus Balm o Market size of Rs. 7000 mn ($115mn) o Zandu, a dominant player in pain management category o Zandu ranked 3rd among India’s most trusted brands in OTC Personal care category by Brand Equity Survey, 2012 o Market share of 58% o CAGR of 20% over last 3 years Relief from heada
Slide 19: Zandu & Sona Chandi Chyawanprash
Zandu & Sona Chandi Chyawanprash o Market size of Rs. 3450 mn ($57mn) o Market share of 10% o Sona Chandi endorsed by Shah Rukh Khan. Immunity builder ‐ Surakshit tan aur tez dimag 19
Slide 20: Navratna Cool Talc
Navratna Cool Talc o Market size of Rs. 4300 mn ($70mn) o A new launch in the talcum powder category; with cooling properties o Introduced attractive ‘twisted pack’ o Market share at 18% Brings the much‐required cool and icy sensation in the scorching summers 20
Slide 21: Fast Relief
Fast Relief o Market size of Rs. 10000 mn ($164mn) o Market share of 4% o Brand revamped with enhanced formulation in new packaging as Himani Fast Relief ultra fast formula o Launched Fast Relief Max – in cream based non sticky format o Amitabh Bachchan is the Brand Ambassador o Widely accepted in t
Slide 22: Operations
Operations 7 manufacturing facilities; 2 in Guwahati and 1 in Pantnagar, Uttaranchal enjoying fiscal benefits Set up first overseas manufacturing facility at Bangladesh in 2012 Most of the facilities are cGMP and ISO 9000 compliant Units follow highest standards of safety and environment pro
Slide 23: Net Sales Growth
Net Sales 18,000 16,991 16,000 35.1% 36.4% 27.8% 14,535 23.3% 22.1% 14,000 16.9% 13.1% 16.6% 12,471 12,000 3.9% 10,217 1.5% 10,000 Rs. in Mn Growth 8,000 7,489 5,859 6,000 5,183 4,204 4,000 3,068 3,113 2,000 ‐ 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 Consolidat
Slide 24: PAT Growth
PAT 3,500 84.8% 3,147 65.9% 3,000 2,588 34.1% 36.3% 34.8% 2,500 13.2% 21.6% 35.3% 2,287 17.8% 1.8% 2,000 1,697 Rs. in Mn Growth 1,500 1,000 902 919 662 494 500 298 220 ‐ 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 Consolidated 2008‐9 – Zandu acquired – Interest bu
Slide 25: A&P Expenses
A&P Expenses A&P Expenses A&P Expenses as a % of Sales 2800 2790 20% 19.3% 18.7% 19% 2400 2290 2194 18% 2000 1944 17.6% 17% Rs in Millions 1600 16% 1441 16.4% 15.8% 15% 1200 14% 800 13% 12% 400 11% 0 10% 2008‐9 2009‐10 2010‐11 2011‐12 2012‐13 Over Rs. 1000 cr invested in A&P in last 5 years 25
Slide 26: Dividend
Dividend Incl. 400% 1000% Dividend % Pay‐Out % Special 60% 900% Dividend 55% 800% 54.4% 50% 800% 800% 700% 43.4% 45% 600% 45.0% 40% Dividend (%) Pay‐Out (%) 500% 31.3% 35% 400% 27.0% 30% 300% 300% 350% 25% 200% 225% 20% 100% 15% 0% 10% 2008‐09 2009‐10 2010‐11 2011‐12 2012‐13 Bonus Issue proposed in
Slide 27: Summarised Balance Sheet
Summarised Balance Sheet Rs. In Mn As at As at As at As at S.N. LIABILITIES 31.03.2013 31.03.2012 S.N. ASSETS 31.03.2013 31.03.2012 1 Shareholders Fund 7,775 7,066 1 Non‐Current Assets 4,852 5,193 a. Share Capital 151 151 Net Fixed Assets 4,397 4,803 b. Reserves and Surplus 7,623 6,915 Godwill On Co
Slide 28: Key Highlights 2013
Key Highlights…….2013 Working Capital (holding period) Inventory : reduced from 28 to 25 days Debtors : reduced from 25 to 24 days Payables : reduced from 26 to 22 days Net Cash of over Rs. 3000 m Current Ratio at 3.1 indicates very high level of liquidity Healthy RONW of 34.2% ROCE improved from 29
Slide 29: Q1FY14 Update
Q1FY14 Update 3836.5 13.2% 30.2% 3388.3 606.8 4000 600 466.1 3000 400 Rs. in Mn 2000 1000 200 0 0 Q1FY13 Q1FY14 Q1FY13 Q1FY14 SALES PAT 29
Slide 30: Ratings, Awards & Recognitions
Ratings, Awards & Recognitions Corporate Emami among Asia's 'Best Under A Billion' 2010 list of companies compiled by the Forbes magazine Ranked 136th among BT-500 Most Valuable Companies of India in private Sector (Business Today) Rated (by CARE) A1+ (highest rating) for Short Term borrowin
Slide 31: Awards and individual recognition
Received WORLDSTAR 2013 International Award for excellence in packaging in ‐ Himani Navratna Cool Talc in Twisted Pack ‐ Bi‐Colour Injection dibbi of Menthoplus Balm 1.1ml Pack Individual Recognition Mr. Naresh Bhansali, CEO‐Finance, Strategy and Business Development, has been awarded the 'Best
Slide 32: Key Investment Highlights
Key Investment Highlights One of the fastest growing FMCG company Niche category player + innovator – in Therapeutic and Ayurvedic segment - strong entry barriers for the competition Key brands are strong market leaders in their respective categories With the acquisition of Zandu, we have on
Slide 33: Thank You
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