Dabur India Limited · NSE:DABUR
Dabur India — JP Morgan Investor Conference 2012
31 slides from Dabur India's conference presentation, June 2012
Slide 1: Dabur India Limited
Dabur India Limited JP Morgan Investor Conference London, June 2012
Slide 2: Indian Economy
Indian Economy Real GDP Growth Rate – YoY (%) Gross National Disposable Income (Per Capita) in Rs. ‘000 10.0% 9.3% 9.0% 8.4% 8.4% 80.0 75.4 8.0% 66 1 66.1 6.7% 6.5% 70.0 57.0 7.0% 60.0 6.0% 50.0 5.0% 40.0 4.0% 30.0 3.0% 20.0 2.0% 10.0 1.0% 0.0% 0.0 FY08 FY09 FY10 FY11 FY12 FY10 FY11 FY12 Source: CSO
Slide 3: FMCG Sector Overview
FMCG Sector Overview FMCG Industry Size (in Rs. bn) FMCG Industry Urban (in Rs. bn) FMCG Industry Rural (in Rs. bn) Source: AC Nielsen Overview FMCG sector in India continued on a strong growth path with both Urban and Rural India contributing to growth. Rural India contributes to c. one third of
Slide 4: FMCG Industry Growth Drivers
FMCG Industry Growth Drivers Shift from Rise in per Increase in Rural unorganised to capita category penetration Consumption organised consumption • Category • Driven by a • Evidenced by • Level of per capita penetration combination of growth in hair oils increase in continues to be increasing incom
Slide 5: Strong Rural Growth
Strong Rural Growth Rural India Contributes to a third of the FMCG FMCG Growth Urban v/s Rural sector in India Rural consumers’ wallet has expanded driven by factors such higher MSPs (Minimum Support Prices) for agricultural produce, loan waivers and employment guarantee schemes Aspiration p l
Slide 6: Category Penetration Levels
Category Penetration Levels Rural Penetration Urban Penetration 90% 80% 80% 77% 70% 67% 57% 59% 60% 50% 42% 40% 37% 32% 30% 26% 18% 18% 19% 20% 10% 3% 5% 4% 2% 0% Toothpaste Shampoo Hair Oil Skin Cream Mosquito Instant Hair Dyes Floor Cleaners Repellants Noodles Source: Industry data Low penetrati
Slide 7: Per Capita Consumption
Per Capita Consumption Skin Care – Per Capita Consumption (in US$) Shampoo – Per Capita Consumption (in US$) 9 3 2.7 7.4 7.7 8 2.5 2.4 7 6 2 5 1.1 1.5 4 3.2 1.0 3 1 2 0.8 0.5 0.3 1 0.3 0 0 China Indonesia India Malaysia Thailand China Indonesia India Malaysia Thailand Toothpaste – Per Capita Consump
Slide 8: Dabur Overview
Dabur Overview Established in 1884 - more than 125 Twelve Billion Rupee Brands Years of Trust & Excellence Among top 4 FMCG companies in India World’s largest in Ayurveda and natural healthcare Revenue of Rs. 53.2 billion and profits of Rs. 6.4 6 billion b ll in FY2011-12 20 2 Strong brand
Slide 9: Performance at a Glance (5 years)
Performance at a Glance (5 years) Net Sales (Rs.Sales billion) Net Profit (Rs. billion) 6.5 52.8 5.7 5.0 40.8 33.9 3.9 28.1 3.3 23.6 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 EBITDA (Rs. billion) Shareholders Funds (Rs. billion) 9.5 8.3 17.2 6.7 13.9 5.2 44 4.4 93 9.3 8.2 6.2 FY08 FY09 FY10
Slide 10: Global Footprint
Global Footprint UK Turkey y Canada Nepal UAE U.S. Egypt B’Desh Nigeria Domestic Mfg. Locations Key markets Manufacturing Facilities Our strategy is to localize manufacturing, manufacturing supply chain and product offerings to suit consumer requirements in each geography 10
Slide 11: Distribution Overview
Distribution Overview Factory Depot (Carry & Forward Agents) Stockists Super stockists Insti Stockists Modern Trade Military / CSD Stockist Wholesalers Sub stockists Retail trade R Rural l ttrade d Unit Canteens Insti customers Direct reach Shoppers & Consumers 0.7 Mln outlets Direct + Indirect Reac
Slide 12: Presence in FMCG Categories
Presence in FMCG Categories Category Position Market Share Key Brands Dabur Amla hair Oil, Vatika hair oil & Hair Care 3 12% Vatika Shampoos Red toothpaste, Babool, Meswak, Red Oral Care 3 13% toothpowder Ayurvedic 1 67% Dabur Chyawanprash Tonics Digestives 1 56% Hajmola Fruit Juices 1 52% Real Frui
Slide 13: Business Structure
Business Structure Dabur India Li it d Limited Domestic Business International (69.7%) Business (30.3%) Consumer Dabur Hobi Namaste Foods Retail Others* Care International Group Labs. LLC (10.1%) (0.8%) (2.7%) (56.0%) (17.5%) (2.6%) (10.3%) Note: % figure in brackets indicate % share in Consolidated
Slide 14: Consumer Care Overview
Consumer Care Overview Category‐wise Share of Consumer Care Sales Health Oral Care Supplements 17% 21% Skin Care 6% Digestives Home Care 8% 6% OTC & Ethicals Hair Care 12% 30% Hair Care is the largest category and contributes to 30% of Consumer Care sales Health H lth Supplements S l t contribut
Slide 15: Consumer Care Categories: Hair Oils and Shampoo
Consumer Care Categories Hair Oils Key Brands #2 player in Hair Oils Dabur Amla: Vatika: Value added Largest brand in coconut oil the portfolio Shampoo Key Brands #4 player l in i Shampoos Vatika range of shampoos 15
Slide 16: Consumer Care Categories: Oral Care and Skin Care
Consumer Care Categories Oral Care Key Brands #3 player in Toothpastes #2 player in Dabur Red: Ayurvedic Meswak: Premium Toothpowder Toothpaste & Toothpowder Babool: Herbal toothpaste for economy herbal toothpaste segment Skin Care Key Brands #2 player in Ski Skin Lightening Gulabari range of rose U
Slide 17: Consumer Care Categories: Health Supplements and Digestives
Consumer Care Categories Health Supplements Key Brands #1 p player y in Ayurvedic Tonics #2 player in Glucose #1 player in Dabur Chyawanprash: Dabur Glucose: Dabur Honey: Largest Largest selling health 2nd largest player branded honey in the branded Honey supplement in the in the country country cou
Slide 18: Consumer Care Categories: Home Care
Consumer Care Categories Home Care Key Brands #1 player in Air Fresheners #1 player in Mosquito Repellant Creams Odonil: Air freshner Odomos: Mosquito Sanifresh: #2 player in Toilet range repellant skin cream Toilet cleaner Cleaners Odonil became one of the Billion Rupee Brands during 2011-12 18
Slide 19: Consumer Care Categories: OTC and Ethicals
Consumer Care Categories OTC and d Ethicals Ethi l Description CHD Structure Repository of Dabur’s Ayurvedic Healthcare knowledge Range of over 260 products Focusing on multiple therapeutic areas. OTC (64%) ETHICAL (36%) Distribution coverage of 200,000 chemists, Generics Tonic ~12,000 v
Slide 20: Foods Business
Foods Business Foods portfolio comprises Fruit Juices and Culinary range Fruit Juices are under the brands – Real, Activ and Burrst Culinary range is under Hommade brand Foods business has surpassed the Rs. 5 billion mark in sales during FY2011-12 Foods Key Brands #1 player in Fruit Juices R
Slide 21: Sales & Distribution Initiatives
Sales & Distribution Initiatives Project SPEED Distribution structure re‐organised during 2011‐12 to build scale and maintain focus on 3 specialized categories : Health care, Home and Personal care, Foods Project j completed p byy October 2011 – Distributor count rationalized to 3,600 as compare
Slide 22: International Business
International Business Started as an Set up a franchisee at Acquired & renamed franchisee as Building scale- scale c. c 30% of Exporter Dubai in 1989 Dabur International Ltd Consol. Sales Focus on Order Demand generation Local operations further strengthened High Levels of Localizati
Slide 23: Africa and Middle East Potential
Africa and Middle East Potential Real GDP Growth Rates (YoY) in % Africa’s Bulging Base Source: IMF Source: McKinsey on Africa Africa, June 2010 Middle East and Africa have witnessed stable GDP growth rates Total GDP of African economies is around US$ 1 trillion i.e. similar to India Between 2
Slide 24: Our Strategy
Our Strategy Three pronged Growth Strategy Expand Innovate Acquire Our differentiation is the herbal and ayurvedic platform E Expand d Strengthening presence in existing categories and markets as well entering new geographies Maintain dominant share in categories where we are category builders l
Slide 25: Acquisition of Hobi Group, Turkey
Acquisition of Hobi Group, Turkey Acquisition A i ii off Hobi H bi Group, G T k Turkey f for a totall consideration of US$ 69 Million completed on October 7, 2010 Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era Product range of the company is
Slide 26: Acquisition of Namaste Laboratories
Acquisition of Namaste Laboratories Dabur India Limited through its subsidiary Dabur International Limited acquired 100% stake in Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011 Namasté is a leading ethnic hair care products company, having products for women of
Slide 27: Recent Performance: Q4 FY2011-12
Recent Performance: Q4 FY2011-12 Consolidated Sales grew by 23.0% during Q4FY12. Revenue Sales growth was a combination of volume (in Rs. Cr.) growth and price increases and marginal translation gains Volume growth was at 12.4% EBITDA increased by 4.2% while EBITDA margin was lower at 17.8%
Slide 28: Market Cap & Shareholding
Market Cap & Shareholding Market Capitalization in Rs. billion Shareholding Structure* Others, 195 174 DIIs, 6.4% 6.4% FIIs, 18.4% Promoters, 17 68.7% 2001 2012 2011 *As on March 31, 2012 Dabur ranked as the organization that offers the best return to investors by the 6th Social & Corporate Governan
Slide 29: Consolidated P&L
Consolidated P&L I R In Rs. crores Q4FY12 Q4FY11 Y Y (%) YoY FY12 FY11 Y Y (%) YoY Net Sales 1363.6 1108.2 23.0% 5,283.2 4,077.4 29.6% Other Operating Income 9.0 5.9 53.7% 22.2 27.1 ‐17.9% Material Cost 684.9 521.3 31.4% 2,685.2 , 1,937.5 , 38.6% % of Sales 50.2% 47.0% 50.8% 47.5% Employee Costs 95.
Slide 30: Consol. Statement of Assets & Liabilities
Consol. Statement of Assets & Liabilities As at As at Particulars (in ( Rs. crores)) ((current year end)) ((previous year end)) 31/03/2012 31/03/2011 A EQUITY AND LIABILITIES 1 Shareholders’ funds (a) Share capital 174 174 (b) Reserves and surplus 1,543 1,217 ( ) Money (c) M received i d against i t
Slide 31: Disclaimer
Disclaimer Some of the statements made in this presentation contain forward looking information that involve a number of risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncerta