I N V ESTOR PRESEN TAT I ON N OV EM BER 2 0 1 6 DABUR OVERVIEW 19 - PowerPoint PPT Presentation

I N V ESTOR PRESEN TAT I ON N OV EM BER 2 0 1 6

DABUR OVERVIEW 19 world class Strong Total reach of One of the manufacturing overseas World’s largest 5.3mn outlets, oldest and facilities presence with in Ayurveda one of the largest FMCG catering to 32% and natural highest among Companies in needs of contribution to healthcare FMCG the country diverse consolidated companies markets sales 1.

DABUR & AYURVEDA Anchored By Heritage Propelled by Science Governed by Trust Doctor LiveVeda.com Adcocavy Ayurveda – A Click Creating Ayurvedic ecosystem Away 2

KEY MANUFACTURING FACILITIES Sahibabad,Uttar Pradesh Baddi, Himachal Pradesh Pantnagar, Uttaranchal Silvasa,Dadra & NagarHaveli Alwar, Rajasthan Jammu, J&K Pithampur,Madhya Pradesh Katni,Madhya Pradesh Narendrapur,West Bengal Siliguri, West Bengal Nasik,Maharashtra Newai,Rajasthan Sri Bangla UAE Egypt Nigeria Turkey Nepal Lanka desh 3.

STRONG FINANCIAL PROFILE In INR Bn 84.4 78.1 PAT PAT margin (%) 14.8% 70.7 12.5 13.7% 1,300 16.0% 61.5 12.9% 10.7 12.4% 12.2% 14.0% 52.8 1,100 9.1 12.0% 900 7.6 6.5 10.0% 700 8.0% 500 6.0% 300 4.0% 100 2.0% -100 0.0% FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 EBITDA EBITDA margin (%) 20.6% 2,000 25.0% 17.4 18.9% 1,800 18.2% 17.9% 17.8% 14.7 1,600 20.0% 12.9 1,400 10.9 1,200 15.0% 9.5 1,000 800 10.0% 600 400 5.0% 200 0 0.0% FY12 FY13 FY14 FY15 FY16 4.

STRONG FINANCIAL PROFILE 41.6 52.5% 45.2% 43.6% 33.5 38.3% 26.6 34.0% 21 17.2 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 7.1 6.1 5.2 4.4 3.7 FY12 FY13 FY14 FY15 FY16 5. *includes Non- Operating income

DISTRIBUTION FRAMEWORK We reach to 5.3mn Factory Factory Outlets ! C&F C&F GT Stockist MT Stockist Insti Stockist Super Sockist Wholesaler Sub Sockist Retailer Retailer Retailer Consumer Consumer Consumer Consumer 6.

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 villages in FY15 • Focus on increasing efficiency and productivity of the channel • Aimed at leveraging the potential of Top 130 towns which contribute to 50% of urban consumption • Segregating the grocery channel teams for wholesale & retail • Initiative is in line with renewed focus on urban markets • To enhance chemist coverage and provide further impetus to our Health Care portfolio • Direct Chemist Coverage is currently 213,000 • Strategy is to increase coverage and range for better throughput 7.

BUSINESS STRUCTURE Domestic FMCG (65%) Domestic (68%) Dabur India Ltd. Others (4%) Organic International (22%) International (32%) Namaste Labs (6%) Hobi Group (3%) * Others include Retail, Commodity exports etc Note: % figure in brackets indicate % share in Consolidated Sales for FY16 8.

INDIA BUSINESS 9.

SALES BY BUSINESS VERTICAL Domestic FMCG* Healthcare HPC Foods (33%) (49%) (18%) Health Supplements 18% Foods 18% Skin Care Digestives 5% 6% Domestic FMCG* Business Breakdown Oral Care OTC& Ethicals 15% 9% Hair Care 23% * Breakdown of Domestic FMCG business basis FY16 Sales Home Care 6% 10.

BUSINESS STRATEGY Healthcare • Leadership in Ayurveda – scientific evidence & research • OTC portfolio to be scaled up through innovation & awareness creation • Doctor advocacy through Medico Marketing channel Home & Personal Care • Ayurvedic / Herbal focus • Premiumization & Differentiation • Strong innovation agenda Foods • Maintain leadership in Juices & Nectars category • Leveraging the Fruit equity associated with the ‘Real’ brand • Focus on Healthy range of products 11.

12. BUILDING CONSUMER CONNECT

13. FOCUS ON INNOVATIONS

14. 16 brands with turnover of INR 1bn+ with 3 brands over 10bn CONTINUE TO BUILD BIGGER BRANDS

MARKET LEADER IN 6 CATEGORIES #Relative Competitive Position #1 #1 #2 #3 #2 #1 #2 #1 #1 #2 #1 Home and Personal Care Foods Healthcare * Position basis Nielsen Market Share data MAT Aug’16 15.

INTERNATIONAL BUSINESS 16.

BUSINESS OVERVIEW 27121 In INR Mn 24226 23108 Dabur International(FY16) 18338 16161 Organic Inorganic Business(70%) Business(30%) FY12 FY13 FY14 FY15 FY16 • Saudi Arabia, UAE Middle East Americas • Egypt, Nigeria, Kenya, South Africa 17% Africa Europe Middle East 11% • Turkey, UK 33% Europe Asia • Nepal, Bangladesh, Pakistan Asia 17% Africa 22% • USA America 17.

THE JOURNEY… 2015-2018 2011-2014 2007-10 2003-2006 • Enter into African Markets • Hobi and Namaste • Expand portfolio acquired which led to • Cross pollinate • Entry into Personal geographic expansion ideas and leanings • Innovative product Care segments from different units offerings • Manufacturing 2002 • Management locations expanded • Franchisee bought • Systems and bandwidth expanded out and renamed processes Dabur International implemented • Portfolio expansion beyond Hair Oils • Focus on building • Trading Model demand through a franchisee • Hair Oil was mainstay • No localization 18.

ORGANIC INTERNATIONAL BUSINESS Styling & Others Oral Care Hamamzaith 5% 2% 12% Hair Skin Care Cream 7% 13% Shampoo 14% Hair Oil 39% Oral Hair Oil Care Others 93% 11% 4% The Organic International Business has evolved from being just a Hair Oil business to a diversified personal care entity 19.

20. RECENT INNOVATIONS IN IBD

INORGANIC BUSINESS Key Geographies USA & Africa Key Geography Turkey Hair Straightening Styling Shampoo Styling Liquid Skin & Shampoo & Conditioner Soap Body Care 21.

22. NAMASTE: FOCUS ON ‘NATURAL’ OFFERINGS

NAMASTE : LOCALISATION IN AFRICA Relaxer Kits-ORS & Argan Sheen Spray- ORS & Argan Egypt: ORS Oils Cairo Shampoo& Conditioner Range Hair Nourishment Range Nigeria: Lagos Sheen Spray- ORS & Argan ORS Oils Third Party manufacturer Shampoo& Conditioner Relaxer Kits-ORS & Argan Range Sheen Spray- ORS & Argan Hair Nourishment Range ORS Oils Shampoo& Conditioner Range SouthAfrica: Hair Nourishment Range 24 Johannesburg 23.

FINANCIAL HIGHLIGHTS FY 2015-16 Rs Crs Growth % 8.1% SALES 8436 17.9% EBITDA 1739 17.5% PAT 1253 24.

SUSTAINABILITY: A KEY FOCUS 18,00,000 school 2015 acres under 2,110 beneficiary kids benefited from cultivation for rare families of our Self – health & oral hygiene medicinal herbs in Help Group initiatives programmes India 1,228 8 States covered 569 women trained farmers/beneficiaries under our Agronomical at our vocational of our Agronomical Initiatives training centers initiatives in India 25.

SHAREHOLDING AND SHARE PRICE TREND Others DII 6% 6% 32% of Dabur’s shares are held by the Public FII 20% Promoters 68% 26.

SUPERIOR SHAREHOLDER RETURNS 526 INR Bn 467 440 313 239 185 167 138 95 85 82 FY07^ FY08 FY09 FY10 FY11^^ FY12 FY13 FY14 FY15 FY 16 Current 225% 200% 200% 175% 175% 175% 150% 150% 130% 115% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 ^ ^^Bonus issue in FY07 & FY11 27.

CONSOLIDATED P&L In INR Mn DIL (Consolidated) P&L in Rs. million Q2FY17 Q2FY16 YoY (%) Net Sales 19,757 19,553 1.0% Other Operating Income 59 41 Material Cost 9,674 9,523 1.6% % of Sales 49.0% 48.7% Employee Costs 2,158 2,006 7.6% % of Sales 10.92% 10.3% Ad Pro 1,494 1,657 ‐ 9.8% % of Sales 7.6% 8.5% Other Expenses 2,403 2,365 1.6% % of Sales 12.2% 12.1% Operating Profit 4,086.6 1.1% 4,042.6 % of Sales 20.7% 20.7% Other Income 892.5 557.7 60.0% EBITDA 4,979.1 8.2% 4,600.3 % of Sales 25.2% 23.5% Finance Costs 166.1 124.8 33.1% Depreciation & Amortization 357.4 327.8 9.0% Profit Before Tax (PBT) 4455.6 4147.8 7.4% Exceptional Item 0.0 0.0 Tax Expenses 873.1 744.3 PAT(Before extraordinary item) 3582.5 3403.5 5.3% 18.1% 17.4% % of Sales Extraordinary Item 0.0 0.0 PAT(After extraordinary Items) 3582.5 3403.5 Minority Interest ‐ Profit/(Loss) 10.8 0.3 3061.2% Share of profit / (loss) of associates & joint venture 0.92 ‐ 0.72 PAT (After Minority Int) 3,573 3,402 5.0% % of Sales 18.1% 17.4% Note: IND AS implemented w.e.f 1 St April,2016 28.