Britannia Industries Ltd · NSE:BRITANNIA
Britannia Industries — Investor Presentation (February 2011)
37 slides from Britannia Industries's investor presentation, Feb 21, 2011
Slide 1: Analyst Meet 21st February 2011
Analyst Meet 21st February 2011
Slide 2: Disclaimer
Disclaimer This presentation may contain statements which reflect Management’s current views and estimates and could be construed as forward looking statements. The future involves risks and uncertainties that could cause actual results to differ materially from the current views being expressed. Po
Slide 3: Will talk about
Will talk about • The opportunity in food - - market, consumers, growth • How Britannia is positioned to tap that opportunity – Consumer & Brands – Customers & Markets – Go To Market Approach • The trajectory of our performance
Slide 4: Food is a large and growing space
Food is a large and growing space Source: Ministry of Food Processing Industries, India http://www.worldoffoodindia.com/thefair/market_data.php * Projected
Slide 5: Mostly unbranded - branded food is a big opportunity
Mostly unbranded --- Therefore branded food is a big opportunity Source: Ministry of Food Processing Industries, India Industry estimates, Nielsen Retail Audit
Slide 6: Branded, packaged biscuits dominate food
Branded, packaged biscuits dominate food Food Non-Food % Contribution to total FMCG Total Sales (Rs Billion) 669 617 Top 5 Categories by Sales (Rs Billion) Source: Nielsen Retail Audit
Slide 7: Branded Food growth has outstripped Non-Food growth
Branded Food growth has outstripped Non-Food growth Source: Nielsen Retail Audit
Slide 8: Driven by income growth, convenience, preference for branded
… Driven by Income growth Higher preference for branded foods because Convenience of better quality and sensorial experience
Slide 9: Household/individual level shifts that have equally big impact
However there are less noticed household/individual level shifts that have an equally big impact on business
Slide 10: Key insights driving our business
Key insights driving our business • Affordable Delight • Health and Taste • Any Time, Any Where -- on-the-go consumption • Indulgent Delight • Morphing of Categories
Slide 11: Any Time, Any Where and on-the-go consumption
Any Time, Any Where and on-the-go consumption
Slide 12: Delight that is affordable to all
Delight that is affordable to all
Slide 13: Combining Health and Taste
Combining Health and Taste
Slide 14: Food as entertainment: Delighting through morphing
Food as entertainment: Delighting through morphing Rusk? Biscuit ? Salty Snack? Biscuit or Chocolate?
Slide 15: Understanding helps us diversify our portfolio
A deep understanding of this phenomenon is helping us diversify our portfolio
Slide 16: Increasing relevance and footprint of Britannia
Increasing relevance and footprint of Britannia Anytime Main Meal • Biscuits Anywhere • Dahi • Rusks • On-the-go Packs • Butter. Cheese • Bread • Cake • Time Pass • Milk • Healthy Start • Daily Bread In-between Meal meals @ home Accompaniment
Slide 17: The Bread, Cake and Rusk Growth Story
The Bread, Cake and Rusk Growth Story Source: BIL
Slide 18: The Dairy Growth Story
The Dairy Growth Story 190 161 139 116 100 2005-06 2006-07 2007-08 2008-09 2009-10 NSV (Indexed to 2005-06) Source: BIL
Slide 19: Ideally placed to benefit from current trends
We are ideally placed to benefit from the current trends
Slide 20: Key Momentum Fulcrums
Key Momentum Fulcrums Strong Brands Right Position Supply Chain in the delight Infrastructure Chain Rich Go-to-market Innovation Infrastructure Funnel
Slide 21: Strong Brands (1)
Strong Brands (1) Consumer connect 9 decades Universality of of Appeal Credentials Enjoyable food that is good for you; Anytime, Anywhere, Everyday Delight And Enjoyment In every Bite Umpteen Britannia Special Moments
Slide 22: Among the top brands in this country for the last 10 years
Among the top 10 brands in this country for the last 10 Years. No 1 food brand 2010
Slide 23: Strong Pillar Brands make for diversified consumption footprint
Strong Pillar Brands make for a diversified consumption foot print
Slide 24: NutriChoice our seventh pillar brand
Strong and versatile NutriChoice our seventh pillar brand Digestive Nature Spice Cracker Diabetes Friendly 5 Grain
Slide 25: Innovation to drive profitable growth
Innovation to drive profitable growth
Slide 26: Activation of the Britannia Credo
Activation of the Britannia Credo
Slide 27: Distribution infrastructure delivers to lakhs of outlets
The conventional Distribution infrastructure delivers to 35 Lakhs outlets. 8.5 Lakhs outlets are serviced directly Institutions/Chain retailers AW Urban Retailer (Direct) Wholesalers Consumers Urban Retailer (Indirect) BIL Rural Retailer (Indirect) RPD Super Stockist Rural Retailer (Direct) mk mkmk
Slide 28: And our brands are where people are
And our brands are where people are Railway Station Coffee Day Xpress Kiosk Corporate Canteen
Slide 29: CSR - Integral to our business proposition
CSR – Integral to our business proposition Britannia @ PDS Britannia at the closing plenary of the CGI Annual Meeting in 2009
Slide 30: Britannia - India's Most Respected FMCG Company
Britannia – India’s Most Respected FMCG Company
Slide 31: The trajectory of our performance
The trajectory of our performance
Slide 32: NSV Doubled In 4 Years
NSV Doubled In 4 Years 35,000 30,000 25,000 Rs. MM 20,000 15,000 10,000 05-06 06-07 07-08 08-09 09-10 NSV - Standalone 17,133 21,992 25,848 31,122 34,014 NSV - Consolidated 22,662 27,769 34,212 37,708 YTD December 10- Growth of 25%
Slide 33: Sustained Investment Behind Brands
Sustained Investment Behind Brands 10 2,800 7.9 9 2,300 6.8 Rs. MM % NSV 8 7.0 1,800 7 6.3 6.2 1,300 6 800 5 2005-06 2006-07 2007-08 2008-09 2009-10 A & SP 1,071 1,356 1,797 2,112 2,688 YTD Dec 10 – Increase of 14%
Slide 34: Inflationary And Volatile Commodity Scenario
Inflationary And Volatile Commodity Scenario….
Slide 35: And Competitive Intensity - Impacted Profit
…..And Competitive Intensity - Impacted Profit…. …..Despite cost reduction of over Rs. 2,000 MM 1,800 PAT Rs. MM 1,300 800 2005-06 2006-07 2007-08 2008-09 2009-10 PAT - Standalone 1,464 1,076 1,910 1,804 1,165 PAT - Consolidated 1,051 1,774 1,515 1,032 YTD Dec 10 – Rs. 1,020 MM
Slide 36: To Summarize
To Summarize • The opportunity is large and Britannia is well positioned to exploit it • Subsidiary losses curtailed • Biscuit continues to be the most affordable packaged food, registering robust growth • Commodity inflation will stress operating margin – being addressed through fundamental cost re
Slide 37: Investor Relations Contact
Investor Relations Contact: [email protected]
Britannia Industries — Investor Presentation (February 2011) on 6ix