February, 2016

Dabur India Ltd
Investor Presentation
i
February 2016
FMCG Overview
Fourth largest sector in the economy
Current size of the Indian FMCG Market is around USD 45 bn
Grown at an annual average of 11 per cent over the last decade *
Urban segment is the largest contributor to the sector- accounting for
two-thirds of total revenue
Sector is likely to touch sales of USD 100 bn by 2020
1
*Source: IBEF Report on FMCG
FMCG Growth Drivers
Rising Income driving Purchases
Growth of Modern Trade & E
Commerce
Low Penetration & Consumption
Evolving consumer lifestyle
Favorable demographics
2
Dabur – An Overview
One of the oldest and largest
FMCG Companies in the country
World’s largest in Ayurveda and
natural healthcare
Total reach of 5.3mn outlets, one
of the highest among FMCG
companies
20 world class manufacturing
facilities catering to needs of
diverse markets
Strong overseas presence with
31% contribution to consolidated
sales
3
Dabur & Ayurveda
4
Health and Well
Well-Being
Being
Health & Well being - The underlying theme across the portfolio
Dabur Honey
Weight Management
5
Dabur Baby Massage Oil
Free of paraffin and
parabens -Safe for babies
p
Focus on Ayurvedic
OTC- No.1 in Women
Health Tonics
Innovations in
Healthcare
Category
g y
Health and Well
Well-Being
Being
Health & Well Being focus has been extended to HPC and Foods
Red Tooth PasteFocused on Ingredient
Effectiveness
Recentlyy introduced the
‘Real Wellnezz” range with
the Jamun flavour
Odomos
Protection from Dengue
Sanifresh- Toilet Cleaner
To safeguard the health of the
family by ensuring hygiene
6
Activ
Juices for a healthy
y
lifestyle
Distribution Framework
GT Sockist
S ki t
Factory
Factory
C&F
C&F
MT STockist
ST ki t
I ti Stockist
Insti
St ki t
Wholesaler
Sub Sockist
Retailer
Retailer
Consumer
Consumer
7
S
Super
S ki t
Sockist
Retailer
Consumer
Consumer
Key Milestones
8
1884
• Established by Dr SK Burman in Kolkata
1994
• Came out with first public issue
1998
• Inducted professional management
2000
• Crossed the 1000 crs turnover mark
2005
• Dabur acquired Balsara
2008
• Acquired Fem Pharma
2010
• Acquired Hobi and Namaste
2012
• Dabur crosses billion dollar turnover mark
Global Business Footprint
9
Dabur Performance Snapshot
in INR bn
in INR bn
40.8
52.8
61.5
70 7
70.7
78 1
78.1
FY11 FY12 FY13 FY14 FY15
5.7
6.4
FY11
FY12
7.6
FY13
91
9.1
FY14
10.7
FY15
Dabur has had a strong & PAT growth trajectory on the back of a robust business
model
10
Strong Financial Profile
ROIC
Net Worth (INR Bn)
33.5
26.6
13 9
13.9
FY11
11
17.2
FY12
12
32.7%
34.0%
FY11
11
FY12
12
FY13
13
FY14
1
FY15
1
FY13
13
FY14
1
FY15
1
61
6.1
EPS
20.4%
11
45 2%
45.2%
21.0
*EBITDA Margin
g
FY11
38.3%
43 6%
43.6%
5.2
17.9%
17.8%
18.2%
FY12
FY13
FY14
18.9%
4.4
3.3
FY15
FY11
3.7
FY12
FY13
FY14
FY15
*includes Non- Operating income
Business Structure
Domestic
FMCG (66%)
Domestic (69%)
Oth
Others
(3%)
Dabur India
Ltd.
Ltd
Organic
International
(22%)
International
(31%)
Namaste Labs
(6%)
Hobi Group
(3%)
* Others include Retail, Commodity exports etc
Note: % figure in brackets indicate % share in Consolidated Sales for FY15
12
Sales By Business Vertical
Healthcare
(33%)
Domestic
FMCG*
HPC(48%)
Healthcare
Foods
19%
Skin Care
5%
Oral Care
14%
Foods(19%)
HPC
* Breakdown of Domestic FMCG business basis FY15 Sales
13
Health
Supplemen
ts
18%
Digestives
6%
Hair Care
23%
OTC &
Ethicals
9%
Home Care
6%
Europe
12%
International Business
Region Wise Breakdown
Foods
America
16%
Asia
17% Africa
23%
Middle East
32%
India Business Strategy
Healthcare
14
Home &
Personal Care
Foods
Increasing
Doctor
Advocacy
Premiumization
& Differentiation
Leveraging
g g the
Fruit equity
associated with
the ‘Real’ brand
Thrust on
building the
OTC portfolio
Strong
innovation
pipeline
Focus on
Healthy range
of products
Increasing Doctor Advocacy
Project
j
LEAD: Leveraging
g g Through
g Empowered Anchoring
g & Detailing
g
Doctor Advocacy is the key
to enhance consumer
franchise
• Front end teams to be separated for Healthcare (OTC &
Ethicals)) and the rest of the Domestic FMCG business to
have focused attention on both segments of the business
• Demand generation from doctors shall be the key focus:
 Advocacy platform being built
 Both Ayurvedic and Allopathic doctor reach to be ramped up
 Building the detailing team
team- Around 170 Medical
representatives hired; Number will increase to 275 by end of
the fiscal
 Head of business inducted for Medical detailing and marketing
Doctor Detailing for Dabur Products
using hand held devices
15
 IT Platform and hand held devices for seamless information
flow for the detailing team
Continue to build bigger brands
16
14 brands with turnover of INR 1bn+ with 3 brands over 10bn
Competitive Position
We continue to lead across verticals- Healthcare , HPC and Foods
#Relative Competitive Position
#1
#1
#2
Healthcare
17
#2
#2
#1
#
#1
#2
Home and Personal Care
#3
#1
#1
Foods
* Position basis Nielsen Market Share data MAT Dec’15
Product Innovation
India
Ratnaprash Sugarfree
Fem Diamond
Bleach
Gulabari Facewash
Sanifresh
Germguard
International
Dermoviva Bodywash Range
18
Vatika Enriched Hair
OilOil Gerghir
Herbal Olive Enamel
Care Toothpaste
Distribution Expansion
•
•
Project Double
•
•
Project 50-50
•
•
•
Project CORE
19
•
•
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
g is currently
y 213,000
Direct Chemist Coverage
Strategy is to increase coverage and range for better throughput
International Business Overview
23108 24226
In INR Mn
16161
Key Markets
18338
Middle
East
Africa
South
Asia
Hair
Care
Skin
Care
Oral
Care
8992
Key
Categories
FY11
FY12
FY13
FY14
FY15
International Sales FY15
Europe
12%
•Comprises 31% of Consolidated Sales in FY15
•Localized supply chain network for efficient business operations
Sustained investment in brands and innovation to grow the topline
•Sustained
•Business foray had been entirely organic since 1980’s, until
FY2010-11 when we acquired Hobi Group and Namaste Labs
20
America
16%
Asia
17%
%
Africa
23%
Middle
East
32%
International Competitive Position
International-Competitive
44.1%
H i Cream*
Hair
C
*
36 5%
36.5%
KSA
64.8
%
Hair Oils*
Oils
KSA
21
No.1 Position in the Hair
Cream Category in KSA,UAE
and Egypt
36 6%
36.6%
UAE
27.5
%
UAE
Egypt
67.3
%
Egypt
No.1 Position in the Hair Oils
C t
Category
iin KSA & E
Egyptt and
d
No.2 in UAE
*Volume Market Share Mat March 2015
Region Wise Strategy
Middle
East
Africa
Asia
America
Europe
Increase
penetration in
Hair Care
across markets
Increase share
of Ethnic Hair
Care by scaling
up
ORS(Namaste)
Increase
product width
p
and penetration
in neighboring
markets
Leveraging
product
technology
gy and
consumer
insights for
African Hair
Care
Cross pollinate to
grow the Turkish
and Export sales
Cross pollinate
with products
from MENA and
Turkeys
Enter emerging
markets like
Myanmar with
personal care
products such
as Toothpastes
and Shampoos
Continue to
cater to large
Indian Diaspora
through the
ethnic channels
Expand consumer
base in UK and
rest of Europe by
adding products,
improving
distribution and
focused marketing
Strengthen
Oral Care and
Skin Care
22
Financial Highlights 9MFY16
Growth
7 1%
7.1%
16 9%
16.9%
Sales
EBITDA
Rs. 6278.6 crs
23
Rs. 1267.3 crs
17 9%
17.9%
PAT
Rs. 920.8 crs
Margin Profile 9MFY16
55.1%
14.7%
20.2%
13.3%
52%
Q3FY15
18.5%
Q3FY16
Gross Margin
p
308bps
24
Q2FY15
Q2FY16
EBITDA Margin
g
p
169bps
Q2FY15
PAT Margin
g
134bps
Q2FY16
Sustainability: A Key Focus
Dabur is committed to being a responsible company and making a positive
contribution to Society and Environment
1,141
acres under
cultivation for rare
medicinal herbs in
India
13 States covered
under our Agronomical
Initiatives
25
2 028
2,028
beneficiary
b
fi i
families of our Self –
Help Group initiatives
1,674
,
farmers/beneficiaries
of our Agronomical
initiatives in India
9,13,750 school
kids benefitting from
our Healthcare
Initiatives
586 women trained
at our vocational
training centers
Share Price Performance, Dividends and
Shareholding
Share Holding Pattern As on 31st
December 2015
Market Capitalization
Others
DII 6%
5%
in INR bn
466.5
FII
20%
313.1
167.2
185.4
FY11
FY12
238.9
Promoters
P
t
68%
FY13
FY14
FY15
Dividend History
History*
250% 250%
200%
140%
175%
150%
175%
200%
150%
130%
115%
175%
200%
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15
26
*Bonus issue in FY07 & FY11
Consolidated P&L
DIL (Consolidated) P&L in Rs. million
Net Sales
Other Operating Income
Material Cost
% of Sales
Employee Costs
% of Sales
Ad Pro
% of Sales
Other Expenses
% of Sales
Other Non Operating Income
Other Non Operating Income
EBITDA
% of Sales
Interest Exp. and Fin. Charges
Depreciation & Amortization
Profit Before Tax (PBT)
Exceptional Item
Tax Expenses
PAT(Before extraordinary item)
% of Sales
%
f
Extraordinary Item
PAT(After extraordinary Items)
Minority Interest ‐ (Profit)/Loss
PAT (After Extra ordinary item & Minority Int)
% of Sales
27
Q3FY16
21,224
46
9,232
43.5%
2,028
9.6%
3,500
16.5%
2,728
12.9%
604
4,386
20.7%
109
323
3,954
0
766
3,188
15.0%
%
0
3,188
3
Q3FY15
20,736
55
9,881
47.7%
1,778
8.6%
3,194
15.4%
2,418
11.7%
386
3,904
18.8%
95
309
3,500
0
663
2,837
13.7%
%
0
2,837
10
YoY (%)
2.4%
3,185
2,828
12.6%
15.0%
13.6%
‐6.6%
14.1%
9.6%
12.8%
56 6%
56.6%
12.3%
14.1%
4.6%
13.0%
15.5%
12.4%
12.4%
9M FY16
62,786
141
28,207
44.9%
5,928
9.4%
9,590
15.3%
8,157
13.0%
1 629
1,629
12,673
20.2%
349
978
11,346
0
2,126
9,220
14.7%
%
0
9,220
13
9M FY15
58,616
159
28,141
48.0%
5,172
8.8%
8,590
14.7%
7,164
12.2%
1 134
1,134
10,841
18.5%
298
868
9,675
0
1,839
7,836
13.4%
%
0
7,836
25
YoY (%)
7.1%
9,208
7,811
17.9%
14.7%
13.3%
0.2%
14.6%
11.6%
13.9%
43 7%
43.7%
16.9%
17.2%
12.7%
17.3%
15.6%
17.7%
17.7%
Statement of Assets and Liabilities
28
in Rs. million
 EQUITY AND LIABILITIES
1 Shareholders’ funds
(a) Share capital
(b) Reserves and surplus
Sub-total - Shareholders' funds
2. Minority interest
3. Non-current liabilities
(a) Long-term borrowings
(b) Deferred tax liabilities (net)
( )O
(c)
Other
h llong-term liabilities
li bili i
(c) Long-term provisions
Sub-total - Non-current liabilities
4. Current liabilities
(a) Short-term borrowings
((b)) Trade ppayables
y
(c )Other current liabilities
(d) Short-term provisions
Sub-total - Current liabilities
TOTAL - EQUITY AND LIABILITIES
B ASSETS
1 Non
1.
Non-current
current assets
(a) Fixed assets
(b) Goodwill on consolidation
(c)
Non-current investments
(d)
Long-term loans and advances
(e) Other non-current assets
Sub-total - Non-current assets
2 Current assets
(a) Current investments
(b) Inventories
(c) Trade receivables
(d) Cash and bank balances
(e) Short-term loans and advances
(f) Other current assets
Sub-total - Current assets
Total -Assets
As at 31/03/2015)
As at 31/03/2014)
1756.5
31784.99
31784
33541.4
181.6
1743.8
24815.88
24815
26559.6
159.1
2105.7
587.1
12
1.2
462.1
3154.9
2604.0
448.3
00
0.0
408.9
3461.2
5229.9
10958.4
5436.4
2560.2
24184.9
61062.8
4477.4
10965.3
4794.2
2703.2
22940.1
53120.0
13060.3
6214.0
14074.0
207.5
201.3
33757.1
11672.1
6214.0
4926.4
245.4
180.7
23238.6
4059.7
9732.7
7108.4
2760.4
2788.7
855.8
27305.7
61062.8
5838.3
9725.1
6753.0
5193.8
1955.1
416.1
29881.4
53120.0
Th k Y
Thank
You