Investor Presentation February 2020
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 2
Dabur – A Leader in Ayurveda & Natural Healthcare Established in 1884 – 135 years of trust and heritage Among the Top 4 FMCG companies in India One of the largest distribution network in India, covering ~6.7 mn outlets 20 world class manufacturing facilities Strong overseas presence with ~27% contribution Market Cap: ~US$ 12.5 bn 3
The Year Gone By – FY19 Performance Market Capitalization (Rs. crore) 72,586 Volume 57,602 Growth +26% 11% FY18 FY19 Revenue from Operations Operating Profit Net Profit/ PAT 8,533 1,740 1,442 +11% +7% 7,748 +8% 1,354 1,617 FY18 FY19 FY18 FY19 FY18 FY19 Note: 1. All figures are in INR cr 2. The figures in circle represent growth figures – for revenue from operations, the growth refers to like-to-like growth Market Cap refers to the market cap on the year ending 31 st March 4 3.
9M FY20 Performance Volume Growth 6.5% Revenue from Operations Operating Profit Net Profit/ PAT 6,838 1,440 1,164 +7% +9% 6,405 1,072 +12% 1,282 9M FY19 9M FY20 9M FY19 9M FY20 9M FY19 9M FY20 Note: 1. All figures are in INR cr 2. The figures in circle represent growth figures 5
Business Structure International Business India Business Others Home and Personal Healthcare Care Foods Full-year Net Sales grew by Full-year Net Sales grew by Full-year Net Sales grew by 8.1% on an adjusted basis, 14.7% on an adjusted basis, 13% on an adjusted basis, touching INR 1,003 crore in touching 1,894 crore in FY19 touching 2,965 crore in FY19 FY19 6
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 7
India Business – Category-Wise Revenue FY19 9M FY20 Category Key Brands Contribution Growth Growth (FY19) 14.6% 14.5% Health Supplements 17.6% Healthcare 16.4% 14.8% Digestives 5.9% (32.3%) 13.7% 7.3% OTC & Ethicals 8.9% 14.8% 5.6% Hair Care 21.6% Oral Care 9.5% 8.0% 16.8% HPC (50.6%) 13.0% 6.6% Home Care 6.9% 17.2% 3.9% Skin Care 5.3% Foods 8.1% (1.5%) Foods 17.1% (17.1%) Note: FY19 Growth refers to GST adjusted growth (like-to-like) 8
Market Leadership in Most Categories #Relative Competitive Position 1 #1 #1 #2 #2 #2 #3 #1 #2 #1 #1 #1 Honey Chyawanprash Baby Glucose Hair Oils Oral Care Skin Toilet Cleaners Air Mosquito Juices Massage Care - Fresheners Repellant Oil Bleaches Creams Healthcare Home and Personal Care Foods Leading position in key categories across verticals 1. Position basis Nielsen Market Share data MAT Dec’19 9
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 10
Key Regions in International Business • Key Regions in International Business NA Ethnic UK & Europe Turkey Namaste U.S. Egypt SAARC MENA Asia Middle East 24.8% 27.1% SSA Americas 13.8% Africa 22.1% Europe 12.2% Present in 100+ countries 11
Market Position in Key Markets Category Saudi Arabia Egypt UAE Nigeria Morocco Algeria US Turkey Hair Oil #1 #1 #2 #1 #1 Hair Cream #1 #1 #1 #1 #1 Hair Gel #1 #2 #1 #1 Hair Mask #1 #1 #1 Hair Serums #3 #3 #2 Shampoo #6 #6 #5 Leave-On #6 #3 Hair Color #5 Toothpaste #5 #4 #4 #3 #3 #3 Depilatories #3 #3 Relaxers #1 12
International Business – Initiatives to Drive Growth Winning in Winning in New Winning in New Sales & Distribution Consumers’ minds Geographies Categories Launching modern formats MT – JBPs with Key Seeding new markets Seeding new categories and variants Retailers in KSA and UAE Connecting with Younger GT – Expand Distribution Foraying into adjacencies Audience across Geographies Division for Merchandising & Enhancing Digital Footprint Activations 13
Agenda International Dabur - Overview Annexure Business India Business Our Growth Strategy 14
Pillars of Our Growth Strategy Power Brands Strategy Distribution Expansion Driving Innovation and Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 15
Pillars of Our Growth Strategy Power Brands Strategy Distribution Expansion Driving Innovation and Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 16
Power Brands Strategy • Power Brands Strategy FY19 Growth % 22.4% 21.1% Power brands to be 17.3% 17.3% 14.9% driven by: 13.7% Higher A&P • 9.3% 9.3% Investments Innovation and • Premiumisation Distribution • Expansion Healthcare Home Foods & Personal Care 17
Strengthen immunity positioning Develop Modern Formats & communication for youth & kids Extend usage beyond winters – monsoon campaign Enhance chemist reach 18
Strengthen fitness proposition Innovation – Launch premium variants Localised communication strategy Increase food usage of honey through new formats 19
Strengthen Ayurvedic positioning Renovation and contemporization Create a portfolio for baby care Distribution enhancement 20
Reinforce Ayurvedic positioning Regionalization New formats & variants: Lozenges, Hot Sip Distribution enhancement 21
Scale up the Modernization Powder Fizz of formats portfolio Use digital Extend Pudin media to Hara into connect with Food millennials 22
Strengthen the core brand ‘ Asli Amla Dabur Amla ’ Contemporization and Premiumization Create moats through flanker brands - Brahmi & Sarson Amla Improve Accessibility 23
Gain Focus on market low share from through put non-natural markets players Proposition Connect of ‘Keeps digitally dental with Problem Millennials Away’ 24
Scale up the Vatika franchise in India Launching Ayurvedic variants Connect digitally with millennials Strengthen distribution in weak geographies 25
Increasing Consumption Occasions Expansion in low through put geographies Premiumization through new health- based variants Entering the fruit drinks segment 26
Pillars of Our Growth Strategy Power Brands Strategy Distribution Expansion Driving Innovation and Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 27
Driving Innovation and Renovation – India Business Healthcare Hajmola NatureCare Glucoplus C Hajmola Chatpati Kabz – Mango Chat Cola Hing Over Flavour Vasant Arshoghani Dabur Dabur Meha Vati Hridayasava Dadimavaleha Ras 28
Driving Innovation and Renovation – India Business Healthcare Amla Churna Arjun Chhal Churna Brahmi Churna (Boosts immunity, relieves acidity and burning sensation, (Good for heart health, healthy cholesterol levels, helps relieve (Helps improve concentration, antioxidant properties) beneficial for eyes, antioxidant properties) excessive thirst) Giloy Churna Neem Churna Haritaki Churna (Boosts immunity, antioxidant properties. Useful in gout and (For healthy skin, useful in skin problems like acne, wounds (For constipation, healthy gut, improves digestion) arthritis, helps purify blood) etc and worm infestation) 29
Driving Innovation and Renovation – India Business Home & Personal Care Babool Dabur Amla Kids Ayurvedic Hair Oil & Shampoo Toothpaste Odonil Aerosol – Fem Fruit Ocean Breeze and Floral Crème Bleach Bliss 30
Driving Innovation and Renovation – India Business Foods Real Real Aloe Mixed Vera Berries Kiwi Real Masala Range INR 10 SKU of Real Fruit Lemoneez Real ORS Powder Koolerz Mango 31
Driving Innovation and Renovation – International Business Hobby – BB Dabur Honitus Hobby – Sea Salt Hobby - Kids Hair Dabur Organic Virgin Weightless Hair Herbal Lozenges Spray Gel Coconut Oil Mousse (UAE) (Turkey) (Turkey) (GCC) (Turkey) 32
Driving Innovation and Renovation – International Business Real Juices in UAE, Japan and ORS Olive Oil Fix It Range Olive Oil with Black Castor Bahrain Vatika Hair Food Vatika Hair Wax Vatika Afro Naturals Range 33
Pillars of Our Growth Strategy Power Brands Strategy Distribution Expansion Driving Innovation and Renovation Operational Excellence Capability Enhancement Sustainability/ ESG Focus 34
Increasing Reach One of the largest distribution networks in FMCG covering 6.7 mn+ outlets Increasing Total Reach Increasing Direct Reach Aim to increase direct reach to 1.2 mn outlets by end of FY20 (in mn outlets) 6.7 FY17 0.91 FY18 1.02 FY19 1.10 6.4 9M FY20 1.19 FY20E 1.20 FY18 FY19 35
Urban Focus Modern Trade E-commerce E-comm Business Partners Growing Growing Improved Engagement in by (Buniyaad Munafa – OFO Channel Program) double ~66% digits Enhance Shelf Share ~15% ~2.5% Shopper Engagement Saliency Saliency (In-shop promoters and in-store activations) 36
Rural Focus Portfolio as per Consumer Increasing Reach Building Rural Infrastructure Preferences 55,000 ~1,400 51,511 44,068 Rural Sales Force 41,473 45% FY19 Contribution to Sales FY18 FY19 9M FY20 FY20E 394 Increasing Village Coverage Super stockists 12,650 Sub-stockists (980 added in 9M FY20) Focus on LUPs 37
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