Dabur India Limited · NSE:DABUR
Dabur India — Morgan Stanley 17th Annual India Summit 2015
34 slides from Dabur India's conference presentation, June 2015
Slide 1: Investor Presentation - Dabur India Ltd
INVESTOR PRESENTATION Dabur India Ltd
Slide 2: FMCG Sector Overview
FMCG Sector Overview •FMCG is the fourth largest sector in the Indian economy and has grown at an annual average of 11 per cent over the last decade •The current size of the Indian FMCG Market is around USD 45 bn •The urban segment is the largest contributor to the sector- accounting for two-thirds
Slide 3: FMCG Sector Recent Performance
FMCG Sector Recent Performance FMCG Growth Rate Value Growth Price growth Volume growth 10.3% The FMCG Industry has started to 8.0% show a pick up in demand 6.1% 5.3% 4.7% 4.5% 7.0% 4.6% 3.3% 1.5% 3.5% 0.6% Consumer Confidence Index Q1'14-15 Q2'14-15 Q3'14-15 Q4'14-15 #2 #1 #1 #1 #1 Source: AC Niels
Slide 4: FMCG Growth Drivers
FMCG Growth Drivers FMCG Growth Drivers Category Penetration * Rising income driving purchases 91% Toothpaste 63% 84% Hair Oil 72% Favourable Growth of 69% demographics Modern Trade Shampoo 56% & Ecommerce Urban Growth 45% Toilet Cleaner 12% Rural Drivers 21% Glucose 10% 13% Toothpowder 22% Evolving
Slide 5: Dabur Overview
Dabur Overview Dabur Vatika B&B was awarded the Grand Prix Direct Award in the Goa Fest 2015. 130 years of Trust and Excellence One of the fastest growing FMCG Companies Dabur ranked amongst the Dedicated to the Health and Well- Being of every household Top 5 Indian companies with the best Board of
Slide 6: 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 7: Global Business Footprint
Global Business Footprint UK Turkey Nepal UAE U.S. Egypt B’Desh Nigeria Sri Lanka Key markets Manufacturing Facilities 6
Slide 8: Domestic Distribution Structure
Domestic Distribution Structure Total reach at 5.3 mn retail Factory 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 9: 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 FY11 FY12 FY13 FY14 FY15 9.1 7.6 5.7 6.4 Robust profitable growth translating into superior shareholder returns FY11 FY12 FY
Slide 10: Business Structure
Business Structure Domestic FMCG (66%) Domestic (69%) Others (3%) Dabur India Organic Ltd. International (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 Supplements (33%) 18% Foods 19% Digestives Skin Care Domestic 5% 6% HPC(48%) FMCG* Oral Care OTC & 14% Ethicals Hair Care 9% 23% Foods(19%) Home Care 6% International Sales FY15 Europe 12% Middle International Business America
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: 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 •Comprises 31% of Consolidated Sales in FY15 •Localized supply chain network for efficient business operations •Susta
Slide 14: International - Competitive Position
International- Competitive Position Hair Cream* 36.4% 36.0% 35.2% No.1 Position in the Hair Cream Category in KSA, UAE and Egypt KSA UAE Egypt 65.2% 65.7% Hair Oils* No.1 Position in the Hair Oils 27.4% Category in KSA & Egypt and No.2 in UAE KSA UAE Egypt *Volume Market Share Mat 2014 13
Slide 15: International Brand Architecture
International Brand Architecture 14
Slide 16: Growth Strategy
Growth Strategy 1.Continued Focus on Innovation 2.Building Consumer Connect 3.Distribution Expansion 4.Focus on Health and well being 15
Slide 17: Continued Focus on Innovation
1.Continued Focus on Innovation 16
Slide 18: Recently launched products
Recently launched India Dabur Baby Keratex Hair Oil Massage Oil Hajmola Chatpat Odomos Roll On International Vatika Oil Vatika Brillantine Dermoviva Face Vatika Argan replenishment AD Mask Cream 17
Slide 19: Product Evolution
Product Evolution Chyawanprash Red Toothpowder Hajmola Amla Hair Oil 18
Slide 20: Building Consumer Connect
2.Building Consumer Connect 19
Slide 21: Advocacy Initiatives
Advocacy Initiatives Key Advocacy Initiatives across categories will continue to build consumer connect •Mega comedy talent hunt which saw an overwhelming response from people •Auditions for this talent hunt was organised across various towns to identify the best in stand-up comedy. •Dil Se Dua and
Slide 22: Digital Campaigns
Digital Campaigns Vatika Brave & Beautiful campaign Fem Star Face Contest Sanifresh -700 se 7 kadam With a continued increase in the number of Internet users, Digital Media being leveraged for brand building and consumer connect 21
Slide 23: Distribution Expansion
3.Distribution Expansion 22
Slide 24: Distribution Expansion
Distribution Expansion • Rolled out in FY13 to expand direct coverage in rural markets • 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 at leveraging
Slide 25: Visibility Initiatives in Modern Trade
Visibility Initiatives in Modern Trade Hommade Hajmola Real Vatika Red Toothpaste Gulabari Key Initiatives in Modern Trade & E-Commerce enhancing product visibility and availability 23
Slide 26: Focus on Health and Well being
4.Focus on Health and Well being 24
Slide 27: Health & Well Being
Health & Well Being Health & Well being - The underlying theme across the portfolio • Ayurveda – Dabur’s core philosophy • Pioneered extension of Ayurveda into personal care and OTC healthcare Dabur Baby Massage Oil Focus on Ayurvedic Innovations in Dabur Honey Free of paraffin and parabens - OTC- N
Slide 28: Health & Well Being extended to HPC and Foods
Health & Well Being Health & Well Being focus has been extended to HPC and Foods Red Tooth Paste- Healthy Is Focused on Ingredient Happy- Effectiveness Campaign theme for Real Juices Odomos Protection from Dengue Activ Sanifresh- Toilet Cleaner Fiber based To safeguard the health of the Juices for a
Slide 29: Share Price Performance, Dividend & Shareholding
Share Price Performance , Dividend & Shareholding Share Holding Pattern As on 31st March 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 *
Slide 30: 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 26
Slide 31: Margin Profile FY 2014-15
Margin Profile FY 2014-15 52.3% 18.9% 13.7% 51.8% 18.3% 13.0% FY14 FY15 FY14 FY15 FY14 FY15 Gross Margin EBITDA Margin PAT Margin 55bps 63bps 70bps 27
Slide 32: Consolidated P&L
Consolidated P&L DIL (Consolidated) P&L in Rs. million Q4FY15 Q4FY14 YoY (%) FY15 FY14 YoY (%) Net Sales 19,448 17,640 10.2% 78,064 70,541 10.7% Other Operating Income 49 54 208 212 Material Cost 9,059 8,581 5.6% 37,201 34,000 9.4% % of Sales 46.6% 48.6% 47.7% 48.2% Employee Costs 1,723 1,529 12.7%
Slide 33: 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 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 3. Non-current
Slide 34: Thank You
THANK YOU
Dabur India — Morgan Stanley 17th Annual India Summit 2015 on 6ix