Company Overview June 2016
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 that are subject to change. Actual results can differ materially from those anticipated in the Company´s forward ‐ looking statements as a result of a variety of factors, including those set forth from time to time in the Company´s press releases and reports and those set forth from time to time in the Company´s analyst calls and discussions. We do not assume any obligation to update the forward ‐ looking statements contained in this presentation. No part of this presentation shall form the basis of or may be relied upon in connection with any contract or commitment. This presentation is being presented solely for your information and is subject to change without notice. All market shares stated are as per AC Nielsen MAT Mar’16. Conversion rate : 1 US$ = ` 67.0 /-
Economy Overview CPI rose to 5.4 % , WPI rises to 0.3 % after 17 Q3FY16 GDP grows by 7.3%. FY16 GDP growth estimated at 7.6% successive months of disinflation 12.0% 8.4% CPI WPI 7.6% 7.7% 7.5% 7.3% 6.7% 6.6% 9.0% 6.0% 3.0% 0.0% Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 Jan'14 Apr'14 July'14 Oct'14 Jan'15 Apr'15 Jul'15 Oct'15 Jan'16 Apr'16 -3.0% Source: MOSPI Source: MOSPI -6.0% Sensex & Nifty degrew by 9 % each in FY16 Industrial Growth stood at 2.4 % in FY16. 30,000 8,900 9.8% Sensex Nifty 28,000 6.4% 8,400 26,000 3.4% 2.7% 3.8% 4.2% 3.8% 7,900 24,000 2.0% -3.4% -1.3% -1.5% 0.1% 7,400 22,000 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 20,000 6,900 01-04-2015 01-07-2015 01-10-2015 01-01-2016 Source: MOSPI 2
FMCG Sector …Key Growth Drivers Rural FMCG Market to grow @14% CAGR Climbing up the ladder - Per Capita Income India’s Consumer Confidence Index To reach $ 220 bn by 2025 to grow 5x in 2 decades to ` 2.7 lacs by 2030 highest among 61 global markets 1% 1% 3% 6% 134 25% 131 131 131 129 130 128 126 46% Rural 121 Rural 40% 93% Urban 115 74% Urban Split 51% 60% Q3FY14 Q2FY15 Q1FY16 Q4FY16 2005 2015 2025 Source: Nielsen Deprived Middle Class Rich Source: BCG, Dinodia Research Source: Hitting the sweet Spot, EY, McKinsey Global Institute Other Growth Drivers Low penetration indicates long term growth story … 89% 41% 35% 25% Modern Trade Leveraging the 16% Vast population of 11% 8% 8% expected to Indian Healthcare 4% ~1.27 bn growing increase its share opportunity using at ~1.58% p.a. to 30% in CY20E. ayurveda Hair Oil Talcum Balms Antiseptic Cooling Oil Facewash Ayurvedic Oil Deodorants Men's Fairness Powder Cream Source: IMRB 3
Company Overview Flagship company of the Category creator with a Established in 1974, the Emami Group and one of differentiated niche Entered mainstream Company was promoted the leading & fastest positioning thereby categories to reach out to by Mr. R.S. Agarwal and growing personal and gaining market a wider consumer base Mr. R.S. Goenka. healthcare businesses in leadership. India. Domestic Business and With a reach in 63 Increased its Market Keen on opportunities for International Business countries, focus on key capitalization by more acquisitions in India and growing at a 5 year CAGR markets to grow than 4 times to ~ ` 250 bn in International focused of 16% and 17% International Business in 5 years. Markets respectively Strong distribution Building best-in-class IT Building capabilities by Appointed senior network reaching out to 4 system coming up from a roping in best talents from industry veterans as mn. retail outlets across tactical IT capability the FMCG industry to advisors. the country. blueprint. catalyse growth. 4
The Journey Emami started with Launched Boroplus meagre capital Antiseptic cream Launched Navratna Oil Listed on BSE Acquired Himani Ltd. Issued 1:1 Bonus. Launched Stock Split from ` 10 to ` 2/- Mentho Plus Balm Acquired controlling stake in Public issue of 50 Lac shares. Fravin PTY Ltd. Listed on NSE Acquired Hair & Scalp Care Launched Fair & Handsome business of “Kesh King” Launched Navratna Cool Talc Acquired Zandu Pharmaceutical Works Ltd. Demerged Zandu FMCG into Emami Raised ` 310 cr. through QIP Stock Split from Overseas 1:2 Bonus Shares ` 2 to ` 1/- Launched Fair & Handsome Face Manufacturing Issued Wash, HE Deodorants, 7 Oils in facility set up in One, Zandu Balm Ultra Power Bangladesh Acquired Sanitary napkin brand “SHE Comfort” 5
Shareholding Pattern …as on 31.03.2016 Others Listed on the NSE, BSE and Kolkata stock exchanges 9.8% FII & MF's Market capitalization of nearly ` 250 bn (US$ 3.7 bn) 17.5% Major Institutional Investors Smallcap World Fund Promoters Others 72.7% Matthews ~47x returns to investors following the public issue in March 2005 BMO Birla Sunlife T. Rowe Price Wellington ~11x returns to investors following the QIP in July 2009 Mondrian Vanguard Jo Hambro 6
Board of Directors S.N. Promoter Directors S.N. Independent Directors 1 Sri R. S. Agarwal 9 Sri K. N. Memani , ex-Country Head of E&Y, India 2 Sri R. S. Goenka 10 Sri Y. P. Trivedi , eminent tax expert & advocate, Ex-Rajya Sabha member 3 Sri S. K. Goenka 11 Smt. Rama Bijapurkar, Eminent consumer and marketing strategist 4 Sri Mohan Goenka 12 Sri P. K. Khaitan , Advocate & Sr. Partner of Khaitan & Co. 5 Sri A. V. Agarwal 13 Sri Amit Kiran Deb , ex-Chief Secretary, Govt. of West Bengal 6 Sri H. V. Agarwal 14 Sri S. B. Ganguly , Professional 7 Smt. Priti A Sureka 15 Sri Sajjan Bhajanka , Industrialist 16 Sri M. D. Mallya , Banker 8 Sri P. Goenka 7
Consumer Care Range Snapshot of Major Brands Market Share (%) Market Size Market Size Brands Segment ( ` in bn.) ($ in Mn) 2011 2016 Navratna Oil Cooling oil 8.6 bn 128 mn 54% 60% BoroPlus Cream Antiseptic Cream 4.3 bn 64 mn 75% 72% Fair & Handsome Men's Fairness Cream 3.9 bn 58 mn 57% 59% Navratna Cool Talc Cool Talc 4.9 bn 73 mn 17% 27% Kesh King Ayurvedic Hair and Scalp care 6.4 bn 96 mn - 36% Source : AC Nielsen, MAT Mar’16 8
Navratna Oil Growing at a CAGR of 13% in last 5 years Market Size ` 8.6 bn ($ 128 mn) Navratna Brand has been ranked 3rd among India’s most Market Share 60% trusted brands in hair oil category by Brand Equity Survey, 2015 Formulation improved with goodness of Brahmi & Amla. Commissioned some of the most visible brand ambassadors (Amitabh Bachchan, Shahrukh Khan, and Mahesh Babu, Chiranjeevi and Upendra for South) Brand extension, Navratna Extra Thanda Oil receiving encouraging market response An ayurvedic ‘therapeutic cooling oil’ providing physical and mental stress relief, protection and nourishment 9
BoroPlus Antiseptic Cream growing at a CAGR of 11% in last 5 years Market Size ` 4.3 bn ( $ 64 mn) ` Largest selling antiseptic cream not only in India but also in Ukraine, Market Share 72% Russia and Nepal Boroplus Brand ranked 18th among India’s most trusted brands in Personal care category by Brand Equity Survey, 2015 Relaunched BoroPlus Moisturising Lotion as BoroPlus “Total Results” Moisturising Lotion and also launched a Cocoa Variant – “ BoroPlus Cocoa Soft Moisturizing Lotion ” Brand endorsed by superstars Amitabh Bachchan and Kangana Ranaut An ayurvedic antiseptic and protective cream ideal for harsh winter conditions and minor skin problems 10
Fair & Handsome Fairness cream growing at a CAGR of 15% in last 5 years Market Size ` 3.9 bn ( $ 58 mn) Market Share 59% Re-launched with new formulation and packaging providing 5 Key benefits namely – Sweat Absorption, Oil Control, Sun Protection, Dark Spot Reduction and Long Lasting fairness. Fair and Handsome ranked 22nd among India’s most trusted brands in Personal care category by Brand Equity Survey, 2015 Launched extensions: “ Fair & Handsome Instant Fairness Facewash” and “Fair & Handsome Complete Winter Solution” Brand endorsed by superstars Shah Rukh Khan & Hrithik Roshan Five power formula contains double-strength peptide complex (patented in US) for tougher male skin 11
Navratna Cool Talc Growing at a CAGR of 19% over last 5 years. Market Size ` 4.9 bn ($ 73 mn) An innovative launch in the talcum powder category; with Market Share 27% cooling properties. Launched new variant “ Navratna i-Cool Talc” with intelligent sweat sense technology releasing instant cooling when one sweats. Shruti Haasan joins the Navratna Cool Talc endorsers’ club along with Shah Rukh Khan. Brings the much-required cool & icy sensation 12 in the scorching summers
Kesh King Acquired control on 12th June, 2015. Market Size ` 6.4 bn ( $ 96 mn) ` Launched in 2009, Kesh King brand portfolio includes Ayurvedic Market Share 36% Medicinal Oil , Aloe Vera Herbal Shampoo and Ayurvedic Capsules for complete hair scalp treatment. Superior Gross & EBIDTA Margins. Launched 60ml SKU to increase rural penetration. Enhanced formulation by moving from 16 to 21 Ayurvedic herbs for higher efficacy. Shruti Haasan & Sania Mirza also roped in to promote the brand along with Juhi Chawla . Launched new ad campaign featuring Bollywood actress Huma Qureshi and directed by Imtiaz Ali 13
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