Dabur India Limited · NSE:DABUR
Dabur India — Investor Presentation (December 2005)
34 slides from Dabur India's investor presentation, December 2005
Slide 1: Dabur India Limited Presentation to Analysts / Investors
DABUR INDIA LIMITED PRESENTATION TO ANALYSTS / INVESTORS December 2005 1
Slide 2: Agenda
AGENDA INDUSTRY SCENARIO BUSINESS PERFORMANCE GROWTH STRATEGY KEY FINANCIALS & UPDATES 2
Slide 3: Consumer Sector Overview
CONSUMER SECTOR OVERVIEW Buoyancy in FMCG Sector Companies gaining pricing power GDP Growth Steady Steady growth in all sectors Erratic Monsoons in South & West Sales Impacted Cost Pressures Rise in Petro-products prices impacting material costs 3
Slide 4: Strong Economic Outlook
STRONG ECONOMIC OUTLOOK 12.00% 9.60%9.10% 9.00% 10.00% 8.90% 7.90% 8.00% 7.80% 8.00% 6.80% 6.60% 6.80% 6.60% 6.00% 3 YRS OF STABLE GROWTH Growth in % 4.00% 3.30% 3.00% 2.00% 1.10% 0.00% -2.00% FY02 FY03 FY04 FY05 FY06E -4.00% -6.00% Agriculture -8.00% -7.2% Industry -10.00% Services Years 8.50% 9.00
Slide 5: FMCG Sector Performance - Snapshot
FMCG SECTOR PERFORMANCE - SNAPSHOT KEY CATEGORY GROWTHS - April - October 05 35.0% 29.1% 28.1% 30.0% 25.5% 25.0% GROWTH % 20.0% 16.9% 15.0% 11.1% 10.5% 10.0% 6.3% 4.7% 4.1% 3.3% 5.0% 0.0% Coc onut Oil Perfumed Hair Normal Shampoo Anti Dandruff Toothpastes Oil Shampoo Volume Value CATEGORIES Source:
Slide 6: Agenda
AGENDA INDUSTRY SCENARIO BUSINESS PERFORMANCE GROWTH STRATEGY KEY FINANCIALS & UPDATES 6
Slide 7: Revenue Break Up - DIL Consolidated
REVENUE BREAK UP – DIL Consolidated HY 2005-06 Misc Balsara 1% 10% Foods 11% HY 2004-05 IBD 10% Foods Misc CCD 1% 9% 60% IBD CHD 12% 8% CHD 7% CCD 71% 7
Slide 8: Category Overview - CCD
CATEGORY OVERVIEW - CCD Category Category drivers Category size CAGR (3 Yr) Market Share Hair Care Dabur Amla Hair Oil Rs 4.2 bn 8% 14% Dabur Red Toothpaste Oral Care Rs 3 bn 11% 12% /Babool Health 10% 61% Chyawanprash / Honey Rs 2.4 bn Supplements ( DCP only) Digestives Hajmola Rs 1.3 bn 2% 44% 17%
Slide 9: Category Overview - Others
CATEGORY OVERVIEW - OTHERS Category Category drivers Category size CAGR (3 yr) Market Share Real Fruit Rs 1.3 bn 34% + 57% Foods Juices Consumer Asavas / 8% + NA Rs 1.1 bn Health OTC Brand Division International Hair Care Rs 1.8 bn 39% + NA Business & Oral Division Care Category Sizes Based on FY 04
Slide 10: Agenda
AGENDA INDUSTRY SCENARIO BUSINESS PERFORMANCE GROWTH STRATEGY KEY FINANCIALS & UPDATES 10
Slide 11: Growth Strategy
GROWTH STRATEGY EXPAND ACQUIRE INNOVATE THREE PRONGED STRATEGY FOR SUSTAINING GROWTH 11
Slide 12: Growth Strategy - Expand
GROWTH STRATEGY - EXPAND EXPAND ACROSS PLATFORMS ACROSS MARKETS 12
Slide 13: Platform - Ayurveda & Beyond
PLATFORM – AYURVEDA & BEYOND • Starting from Ayurveda, the company successfully ventured into herbal arena becoming the ‘Herbal Specialist’ • While herbal businesses form the core with 85% of revenues, the company’s growth ambitions are not limited by it. • A robust brand architecture ensures that t
Slide 14: Expansion into Newer Categories
EXPANSION INTO NEWER CATEGORIES Skin Care portfolio strengthened SKIN CARE Entered the Rs 40 bn Personal Wash Market with Vatika Honey & Saffron Soap Relatively untapped HOME CARE Home Care market (estimated size Rs 20 bn) OTC Health Care Product OTC HEALTH Range strengthened With focus on lifestyle
Slide 15: Growth Strategy - Expand
GROWTH STRATEGY - EXPAND EXPAND ACROSS PLATFORMS ACROSS MARKETS 15
Slide 16: The South India Focus
THE SOUTH INDIA FOCUS RENEWED COMMUNICATION IMPROVISED EXPANDING PRODUCT DISTRIBUTION OFFERING SOUTH INDIA TO CONTRIBUTE 15% TOWARDS TOTAL CCD REVENUES 16
Slide 17: Expanding Globally
EXPANDING GLOBALLY… Drive Acquisitions & Alliances Grow Organically Ride the “Natural Wave” and Inorganically Occupy Differentiated competitive niches in personal Geographical Expansion care and health care segments • Identify markets based on Strategic Model Choice • Commit major investments and hu
Slide 18: Focus Markets - An Overview
FOCUS MARKETS – An Overview DABUR IBD – FOCUS MARKETS South Asian Arabia Africa Europe & America Subcontinent Pakistan, Nepal & GCC Countries Egypt & Nigeria U.K & U.S.A Bangladesh FOCUS MARKETS TO GROW AGRESSIVELY Note: % of Sales on FY 2004-05 Levels 18
Slide 19: Potential Markets - An Overview
POTENTIAL MARKETS – An Overview DABUR IBD – POTENTIAL MARKETS South Asia Arabia CIS Sri Lanka & Malaysia Iran, Iraq & Sudan Russia POTENTIAL MARKETS CONTRIBUTION TO INCREASE FROM 8% CURRENTLY TO 15% -20% OF IBD TOP LINE IN THE NEXT 4 YEARS 19
Slide 20: New Product Development
NEW PRODUCT DEVELOPMENT In last 7 years, the company has Entered more than 5 businesses Launched more than 20 successful brands Exciting New Product funnel – New products to contribute 6-7% of total revenue 20
Slide 21: Current New Product Program - Skin Care
CURRENT NEW PRODUCT PROGRAM SKIN CARE Vatika Honey & Anmol Cold Cream Saffron Soap 21
Slide 22: Current New Product Program - Health Supplements
CURRENT NEW PRODUCT PROGRAM HEALTH SUPPLEMENTS Chyawanprash Variant for Rejuvenation & Fighting stress 22
Slide 23: Current New Product Program - Consumer Health Division
CURRENT NEW PRODUCT PROGRAM CONSUMER HEALTH DIVISION Honitus – Cough Rheumatil – pain Lozenges Dabur Mensta Relief Syrup 23
Slide 24: Current New Product Program - Foods
CURRENT NEW PRODUCT PROGRAM FOODS Musk Melon Jamun Lemon Barley 24
Slide 25: Current New Product Program - Foods
CURRENT NEW PRODUCT PROGRAM FOODS The New Activ Range of Mixed Fruit & Vegetable Juice 25
Slide 26: Newer Variants - Home Care
CURRENT NEW PRODUCT DEVELOPMENT – HOME CARE NEWER VARIANTS ALLETHRIN PRODUCTS SURFACE CLEANERS AIR FRESHENERS (Mosquito Repellants) STRENGTHEN HOME CARE PORTFOLIO 26
Slide 27: Growth Strategy - Acquisition
GROWTH STRATEGY - ACQUISITION Acquired Balsara - Rs1.4 bn, the largest acquisition by Dabur Strengthen the core – oral care portfolio with strong brands like Babool, Meswak and Promise, now 12% of total market Newer Category – Penetrating the newer & relatively untapped home care category with
Slide 28: Agenda
AGENDA INDUSTRY SCENARIO BUSINESS PERFORMANCE GROWTH STRATEGY KEY FINANCIALS & UPDATES 28
Slide 29: The Growth Momentum
THE GROWTH MOMENTUM SALES GROWTH 25% 23% 20% 15% 16% 10% 12% 5% 7% 0% 2002-03 2003-04 2004-05 HY 05-06 PAT GROWTH 60% 50% 53% 40% 43% 30% 37% 20% 29% 10% 0% 2002-03 2003-04 2004-05 HY 05-06 29
Slide 30: Focus on Efficiency - EBIDTA
FOCUS ON EFFICIENCY – EBIDTA 18.0% 16.0% 14.2% 15.3% 14.0% 12.0% 10.0% 12.0% 12.6% 8.0% 6.0% 4.0% 2.0% 0.0% FY 2002-03 FY 2003-04 FY 2004-05 HY 2005-06 Over the last 3 years, the EBIDTA Margin has significantly improved on account of Fiscal Benefits from setting up facilities in Excise free locati
Slide 31: Performance Snapshot: H1 2005-06
PERFORMANCE SNAPSHOT: H1 2005-06 CONSOLIDATED SALES GROWTH: 23.3% DIL STANDALONE SALES GROWTH: 7.4% CONSOLIDATED PAT GROWTH: 53% DIL STANDALONE PAT GROWTH: 27.1% CONSOLIDATED EBIDTA GROWTH: 39.6% DIL STANDALONE EBDITA GROWTH: 28.2% BALSARA PROFITABILITY: Rs 7.3 cr BALSARA SALES GROWTH: 26.4% 31
Slide 32: Accolades 2005
ACCOLADES 2005 • Dabur India selected amongst the top 200 in the list of “Best Under a Billion”, in Forbes Asia • Ranked 42 in the ET list of 500 Top Companies in India. Number 2 in FMCG • Nominated for the Best company of the year award by ET • Ranked among top 3 value creators in the FMCG sector b
Slide 33: The Way Forward
THE WAY FORWARD…. Deliver shareholder value in terms of Inorganic growth Strong free cash strategy to flows, acquire EVA businesses/ ROCE and brands that Sharp focus on Dividend provide good operational payouts strategic fit and efficiencies to synergies Continue to help reach outperform profit goal
Slide 34: Thank You
THANK YOU 34