GODREJ CONSUMER PRODUCTS INVESTOR PRESENT INVESTOR PRESENTATION - PowerPoint PPT Presentation

GODREJ CONSUMER PRODUCTS INVESTOR PRESENT INVESTOR PRESENTATION TION 1

� GODREJ CONSUMER PRODUCTS SNAPSHOT GODREJ CONSUMER PRODUCTS SNAPSHOT � largest home gr home grown HPC company own HPC company US $1.2 billion India leading market � share � business in sales in FY 13 in core categories hair colours 1 household insecticides liquid detergents strong positions home care 2 in cor in core categories e categories hair care soap internationally over 45% excellent track record of value revenues come fr come from om trust inter international businesses national businesses creation emerging markets � acquisitions established among FMCG companies in India FMCG company � a platform for a leading 2

WE HAVE DELIVERED ROBUST OPERATIONAL RESULTS OVER � WE HAVE DELIVERED ROBUST OPERATIONAL RESULTS OVER THE LAST FEW YEARS THE LAST FEW YEARS CONSOLIDATED NET SALES CONSOLIDATED EBITDA ∆ 46% 46% ∆ 35% 35% 6,391 � 1,015 � ∆ 16% 16% ∆ 32% 32% 876 � ∆ 34% 34% 4,851 � ∆ 32% 32% 653 � 3,676 � ∆ 59% 59% ∆ 80% 80% 411 � 2,041 � FY10 � FY11 � FY12 � FY13 � FY10 � FY11 � FY12 � FY13 � 3

WE HAVE A SCALE PRESENCE ACROSS WE HAVE A SCALE PRESENCE ACROSS � MULTIPLE GEOGRAPHIES MULTIPLE GEOGRAPHIES � WITH A BALANCED MIX OF CATEGORIES WITH A BALANCED MIX OF CATEGORIES GEOGRAPHYWISE SALIENCE* CATEGORYWISE SALIENCE* Europe 5% Latin Others America 11% 8% Africa 11% Personal Wash Home Care 21% 44% India 55% Indonesia 20% Hair Care 24% SAARC 1% *FY13 4

WE HAVE LEADING MARKET POSITIONS IN MOST OF WE HAVE LEADING MARKET POSITIONS IN MOST OF � OUR GEOGRAPHIES OUR GEOGRAPHIES SAARC � INDIA � 1 hair colours 1 hair colours (Sri Lanka) household insecticides liquid detergents hair colours 2 (Bangladesh) 3 household insecticides soaps (Sri Lanka & Bangladesh) INDONESIA � UK � 1 stretch marks skin treatment 1 air fresheners 2 wet tissues sanitisers 2 4 household sun care insecticides female deodorants 5

WE HAVE LEADING MARKET POSITIONS IN MOST OF � WE HAVE LEADING MARKET POSITIONS IN MOST OF OUR GEOGRAPHIES OUR GEOGRAPHIES LATIN AMERICA � SUB SAHARAN AFRICA � ethnic hair colours 1 � 1 (14 countries) hair colours* hair extensions (Argentina, Uruguay, Paraguay, Bolivia) (10 countries) 2 � hair extensions (1 country) 2 hair colours & 3 colour cosmetics caucasian hair colours (Chile) (South Africa) * Volume Share 6

IN INDIA, WE HA IN INDIA, WE HAVE DELIVERED CONSISTENT VE DELIVERED CONSISTENT, HEAL , HEALTHY SALES THY SALES GROWTH GROWTH INDIA NET SALES GROWTH (%)* EBITDA GROWTH (%) 21% � 20% � 18% � 15% � 13% � 15% � FY12 � FY13 � FY12 � FY13 � India FMCG � GCPL � EBITDA EBITDA 16% 16% 21% 21% + A&P GROWTH + A&P GROWTH 7 * Nielsen data for India FMCG growth

THERE IS SIGNIFICANT HEADROOM FOR GROWTH IN HAIR THERE IS SIGNIFICANT HEADROOM FOR GROWTH IN HAIR COLOURS AND HOUSEHOLD INSECTICIDES COLOURS AND HOUSEHOLD INSECTICIDES PENETRATION - % OF HOUSEHOLDS 99% Toilet soaps Insecticides 44% Hair colour/dye/ 37% henna Source: Nielsen 8

PAR ARTICULARL TICULARLY A LOT OF POTENTIAL TO INCREASE PENETRA Y A LOT OF POTENTIAL TO INCREASE PENETRATION TION IN RURAL FOR HAIR COLOURS AND HOUSEHOLD INSECTICIDES IN RURAL FOR HAIR COLOURS AND HOUSEHOLD INSECTICIDES PENETRATION - % OF HOUSEHOLDS HAIR COLOURS � HOUSEHOLD INSECTICIDES � Rural 26% Rural 28% Urban 77% Urban 60% 9 Source: Nielsen

SIGNIFICANT UPSIDE IN DRIVING CONSUMPTION SIGNIFICANT UPSIDE IN DRIVING CONSUMPTION CONSUMPTION / CAPITA (USD) HAIR COLOURS � HOUSEHOLD INSECTICIDES � Thailand 1.1 Malaysia 3.9 1.1 Malaysia Thailand 1.6 China 0.2 Indonesia 1.5 Indonesia 0.2 China 1.0 India 0.3 India 0.5 Source: Euromonitor, Nielsen 10

OUR HOUSEHOLD INSECTICIDES BUSINESS CONTINUES TO OUR HOUSEHOLD INSECTICIDES BUSINESS CONTINUES TO � PERFORM WELL AHEAD OF THE MARKET PERFORM WELL AHEAD OF THE MARKET VALUE GROWTH (%)* 31% 25% 13% 10% FY12 FY13 Category GCPL 11 * Nielsen data for category growth

OUR TOILET SOAPS BUSINESS TOO, OUTPERFORMED OUR TOILET SOAPS BUSINESS TOO, OUTPERFORMED � THE MARKET THE MARKET VALUE GROWTH (%)* VOLUME GROWTH (%)* 27% 26% 15% 20% 9% 10% 4% FY12 FY13 FY12 FY13 -2% Category GCPL Category GCPL 12 * Nielsen data for category growth

NEW INNOV NEW INNOVATIONS ARE DRIVING AHEAD OF THE CA TIONS ARE DRIVING AHEAD OF THE CATEGOR TEGORY Y � GROWTH IN HAIR COLOURS GROWTH IN HAIR COLOURS ANNUAL VALUE GROWTH (%)* 21% 19% 14% 14% FY12 FY13 Category GCPL QUARTERLY VALUE GROWTH TREND (%) 32% 27% 17% 10% 5% Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1FY14 13 * Nielsen data for category growth

WE ARE AGGRESSIVELY BACKING OUR NEW LAUNCHES � WE ARE AGGRESSIVELY BACKING OUR NEW LAUNCHES THAT WILL FURTHER STRENGTHEN OUR THAT WILL FURTHER STRENGTHEN OUR � FUTURE GROWTH PLATFORM FUTURE GROWTH PLATFORM INDIA NET SALES GROWTH (%) A & P GROWTH (%) 20% � 3% � 24% � 42% � 17% � 18% � Base � NPD � Overall � Base � NPD � Overall � Q1 FY14 - Over one third of our Net Sales Growth came from new product launches 14 * FY13

OUR INTERNATIONAL BUSINESS IS SCALING � OUR INTERNATIONAL BUSINESS IS SCALING UP WELL UP WELL INTERNATIONAL SALES BREAKUP* INTERNATIONAL NET SALES GROWTH (%) 53% 49% SAARC Middle east 3% 1% Europe 10% Africa Indonesia 25% 43% Latin America 18% FY12 FY13 * FY13 15

GROWTH IN OUR INTERNATIONAL PORTFOLIO HAS BEEN GROWTH IN OUR INTERNATIONAL PORTFOLIO HAS BEEN � STRONG ACROSS GEOGRAPHIES STRONG ACROSS GEOGRAPHIES FY 13 FY 13 FY 12 FY 12 GEOGRAPHIES GEOGRAPHIES KEY BRANDS KEY BRANDS GROWTH* GROWTH* GROWTH* GROWTH* 29% 29% 19% 19% Indonesia Indonesia 84% 84% 22% 22% Latin Latin America America 68% 68% Africa Africa 26% 26% Europe Europe 11% 11% 16 *Constant currency sales growth

INDONESIA AND AFRICA CONTINUE TO BE THE INDONESIA AND AFRICA CONTINUE TO BE THE � LEAD GROWTH DRIVERS LEAD GROWTH DRIVERS FY 13 SALES GROWTH (%) * FY 13 EBITDA MARGIN (%) 19%* 84% 16% 68% 11% 41% 35% 5% Indonesia Africa Latam UK Indonesia Africa Latam UK *Sales growth in INR. 17 *Indonesia EBITDA margin is before payment of technical & business support fee

WE ARE ACTIVEL WE ARE ACTIVELY CROSS POLLINA Y CROSS POLLINATING THE POR TING THE PORTFOLIO TFOLIO INDIA INDIA SOUTH AFRICA SOUTH AFRICA Hair Colour Hair Colour Hair colour creme in sachet Renew hair colour (Argentina) (India) INDIA INDIA NIGERIA NIGERIA Household Household Insecticides Insecticides Evaluating Hit Magic, paper Goodknight coils & aerosols based mosquito repellent (India) (Indonesia) INDIA INDIA Air Air Fresheners Fresheners Aer air fresheners (Indonesia) 18

WE CONTINUE TO FOCUS ON INTEGRATING OUR WE CONTINUE TO FOCUS ON INTEGRA TING OUR � ACQUISITIONS ACQUISITIONS Disciplined M&A approach based on 3 by 3 Disciplined M&A appr oach based on 3 by 3 Strong Contr Str ong Controls & IT infrastructur ols & IT infrastructure e India best practices being incorporated in the focus on emerging markets in Asia, Africa operations processes. SAP Implementation and Latin America in 3 core categories underway ¡ International Centr Inter national Centre Successful integration of inter Successful integration of international businesses national businesses in the Godrej way in the Godr ej way, dedicated expertise in product supply chain, maintaining the right balance between localization R&D, marketing, finance and human capital and creating the right Godrej culture Implemented one performance and one performance and Investing in Investing in training and and development rewar ewards pr ds programme ogramme across the globe of talent 19

OUR INNOVATION PIPELINE CONTINUES TO REMAIN ROBUST OUR INNOV TION PIPELINE CONTINUES TO REMAIN ROBUST 20

WE HA WE HAVE SIX KEY PRIORITES VE SIX KEY PRIORITES 1 � 2 � 3 � Core category Core category International International Innovation and Innovation and leadership leadership growth growth renovation renovation 4 � 5 � 6 � Agility and high Agility and high Future ready Future ready Best in class Best in class performance performance sales system sales system supply chain supply chain culture culture 21

WE REMAIN COMMITTED TO DELIVERING CONSISTENTLY � WE REMAIN COMMITTED TO DELIVERING CONSISTENTL STRONG PERFORMANCE STRONG PERFORMANCE 21.4 20.1 19.8 19.2 19.0 6,391 18.1 18.1 17.8 17.4 15.9 15.1 4,851 Percentage (%) Sales CAGR: 30% ` Crore 3,676 EBITDA CAGR: 29% 2,041 1,393 1,103 876 1,015 952 700 653 563 490 470 411 219 211 182 150 107 88 82 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY13 Net Sales EBITDA EBITDA Margin 22 Note: Values in ` Crore

OUR BALANCE SHEET IS ALSO HEALTHY AND IS IMPROVING OUR BALANCE SHEET IS ALSO HEAL THY AND IS IMPROVING NET DEBT TO EQUITY RATIO IMPROVEMENT IN WORKING CAPITAL DAYS 25 0.96 23 0.48 0.43 FY11 FY12 FY13 FY12 FY13 Note: NWC without Cash and Bank balances improves by ~ ` 40 Crore on organic businesses 23

Q1FY14 Snapshot Q1FY14 Snapshot 24

BUSINESS SNAPSHOT BUSINESS SNAPSHOT DOMESTIC BUSINESS CONTINUES TO DOMESTIC BUSINESS CONTINUES TO DELIVER STRONG PERFORMANCE DELIVER STRONG PERFORMANCE Ahead of the category performance in all three categories Improving product mix and lower palm oil prices is driving gross margin benefits New launches witnessing good success and driving penetration in relatively underpenetrated categories 25