Dabur India Limited

Corporate Profile
May 2012

1 1

Agenda
Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance

2 2

Dabur India: Overview

Established in E t bli h d i 1884 - more th than 125 Years of Trust & Excellence Among top 4 FMCG companies in India g y Worlds largest in Ayurveda and natural healthcare Revenue of Rs. 53.2 billion and profits of Rs. 6.4 billion in FY2011-12 Strong brand equity
Dabur is a household brand Vatika and Real are Superbrands Hajmola , Real & Dabur ranked among Indias Most Admired Brands
Twelve Billion Rupee Brands l illi d

12 Brands with sales of over Rs. 1 billion each g Wide distribution network covering 3.4 million retailers across the country 17 world class manufacturing plants catering to needs of diverse markets Strong overseas presence with c. 30% c contribution to consolidated sales
Dabur has been ranked as the Most Trusted Leader in the Healthcare category in the Brand Trust Report 2012 Dabur ranked as No. 2 Most Social Brand of India, in the Social Media report launched at Click Asia Summit 2012 Dabur ranked the No. 2 Indian Green Brand by Green Brands Global Survey

Dabur has surpassed the US$ 1 billion mark in revenues

3 3

Dabur: Vision and Core Values

Vision
Dedicated to the health and well being of every household

Ownership

Integrity

Passion for Winning

Core Values
Innovation

People Development

Team Work

Consumer Focus

4 4

Key Milestones
1884 Dr. SK Burman started an Ayurvedic Pharmacy in Kolkatta 1972 The company shifted base to Delhi from Kolkata 1986 Registered as Public Limited Company

1994 Listed on the Bombay Stock B b St k Exchange

1998 Professionalized with Burman Family handing B F il h di over day to management

2003 Pharmaceutical Business de-merged t focus on core d d to f FMCG business

2004 International Business set up in Dubai to tap overseas opportunity

2005 Acquired Balsara strengthening Oral care & gaining entry into Home care

2006 Dabur Figured in Top 10 Great Places To Work

2008 Acquired Fem Care Pharma entering mainstream Skin care

2010 Overseas acquisitions -

2012

p, y Hobi Group, Turkey and Namaste Laboratories, US

Crossed Rs. 50 bn mark in annual revenues and Market Cap of c. US$4 billion

5 5

Dabur Consolidated : Overview

Sales
in Rs. million

60000 50000 40000 30000 20000 10000 0

23,963 28,341 17,565 20,803 12,004 12,849 12,356 14,170

34,158

40,774

52,832 ,

FY02

FY03

FY04^

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

EBITDA Margin (in %)

in % in Rs. million

Net Profit

22.0% 20.0% 18.0% 18 0% 16.0% 14.0% 12.0% 10.0%

17.1% 15.3% 13.3%

18.1% 18.5% 18.3%

19.8%

20.4% 17.90%
7000 6000 5000 4000 3000 2000 1000 0 5,032 2,817 3,329 3,913 5,686 6,449

1,065

1,558

2,142

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

^Sales show a decline in FY04 on account of de-merger of Pharma business

6 6

Global Footprint
UK Turkey Nepal

Canada U.S.

Egypt

UAE

BDesh Nigeria

Domestic Mfg. Locations

Key markets Manufacturing Facilities Our strategy is to localize manufacturing, supply chain and product offerings to suit consumer requirements in each geography 7 7

Robust Distribution Network

Factory
C&FA Stockist
(Carry & Forward Agents)

Super Stockist

Institutions & Modern trade

Wholesalers

Sub Stockist

RETAIL TRADE CONSUMERS

Direct + Indirect Reach covering c. 3.4 million retail outlets
8 8

Research & Development Focus

Team of scientists including Ayurvedic doctors, Pharmacists, Agronomists, Botanists, Tissue Culture specialists, etc. Strong New Product Development
Ayurvedic Medicines Personal Care Foods F d Home Care

Agro Biotech Initiatives

Protecting endangered herbs g g Technical assistance to farmers Contract cultivation of herbs Green House at Nepal

OTC Healthcare

Dabur introduced more than 20 new products/variants during FY11

Dabur Research Facilities

Agronomy Initiatives : Greenhouse at Dabur Nepal & Uttaranchal

9 9

Agenda
Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance

10 10

FMCG Industry Snapshot

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 continues on a strong growth path with both Urban and Rural India contributing to growth Rural India contributes to c one third of FMCG growth. c. sales in India Growth driven by increasing consumption led by rise in incomes, changing lifestyles and favorable demographics As per a study conducted by Booz & Company, FMCG sector is expected to grow in the range of 12% to 17% upto 2020 and would touch a market size between of Rs. 4,000 to Rs. 6,200 billion
11 11

Penetration Levels: Sufficient Headroom

Rural Penetration
90%

Urban Penetration

80%

77%

80%

70%

67% 57% 59%

60%

50%

42%
40%

37% 32%

30%

26% 18% 18% 19%

20%

10%

3%
0%

2%

5%

4%

Toothpaste

Shampoo

Hair Oil

Skin Cream

Mosquito Repellants

Instant Noodles

Hair Dyes

Floor Cleaners

Source: Industry Data

Low penetration levels offer room for growth across consumption categories Rural penetration catching up with urban penetration levels

12 12

Per Capita Consumption: Room for Growth

India has low per capita consumption as compared to other emerging economies
Skin Care Per Capita Consumption (in US$)
in US$
9 8 7 6 5 4 3 2 1 0 2 1.5 1

Shampoo Per Capita Consumption (in US$)

in US$
3 2.5

7.4

7.7 77

2.7 27

2.4

3.2 0.8 China Indonesia 0.3 India Malaysia Thailand

1.0

1.1 0.3

0.5 0

China

Indonesia

India

Malaysia

Thailand

Toothpaste Per Capita Consumption (in US$)

in US$ 3.5
3 2.5 2 1.5 1 0.5 0

2.9 2.0 20 1.0 0.5 0.4

China

Indonesia

India

Malaysia

Thailand

Source: MOSL

13 13

Key Players: FMCG

in Rs. million Rs Company Key Categories Soaps, Detergents, Personal Care, Foods Care Food, Beverages, Infant nutrition Personal, Health & , Homecare, Foods Hair Care, Soaps Oral Care & Toiletries Consumer Health Care Hair care, Food, Skincare Biscuits Feminine Hygiene, personal care Sales Profit Market Cap

Hindustan Unilever Ltd

196,910 ,

22,961 ,

826,445 ,

Nestle India Ltd* Dabur India Ltd Godrej Consumer Colgate Palmolive (I) Ltd* Glaxo Smithkline Consumer* Marico Ltd. Britannia Industries Ltd Procter & Gamble Hygiene and Health Care^

74,908 41,099 41 099 36,430 19,624 26,855 31,283 46,052 10,003

9,615 5,686 5 686 5,147 4,341 3,552 2,864 1,343 1,509

428,087 181,178 181 178 151,534 140,399 109,177 97,652 64,784 63,299

Source: Published results for year ending 31.03.11 *Year ending 31.12.11 ^Year ending 30.06.11

Market Cap as of Mar 5 2012 Cap. 5,

14 14

Dabur: Strong Presence in FMCG Categories

Category
Hair Care Oral Care Ayurvedic A di Tonics Digestives Fruit Juices Honey Glucose Skin Care (Bleaches)

Position
3 3 1 1 1 1 2 1

Market Share
12% 13% 67% 56% 52% 50% 25% 50%

Key Brands
Dabur Amla hair Oil, Vatika hair oil & Vatika Sh V tik Shampoos Red toothpaste, Babool, Meswak, Red toothpowder Dabur Chyawanprash

Hajmola

Real Fruit Juices, Real Activ

Dabur Honey

Dabur Glucose

Fem

Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Digestives includes herbal digestives 15

15

Agenda
Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance

16 16

Business Structure
Dabur India Limited

Domestic Business (69.7%)

International Business (30.3%)

Consumer Care (56.0%) (56 0%)

Foods (10.1%) ( )

Retail ( (0.8%) )

Others* ( (2.7%) )

Dabur International (17.5%) (17 5%)

Hobi Group (2.6%) (2 6%)

Namaste Labs. LLC (10.3%) (10 3%)

Note: % figure in brackets indicate % share in Consolidated Sales for FY12

*OthersincludesCommodityExportsetc 17 17

Consumer Care Overview

Category-wise Share of Consumer Care Sales

Hair Care is the largest category and contributes to 29% of Consumer Care sales Health Supplements contribute to 22% of Consumer Care sales Oral Care, comprising toothpastes and toothpowders contributes to 18% of Consumer Care sales

Note: Percentage share based on revenue for FY12

18 18

Consumer Care Categories

Hair Oils
Key Brands

#2 player in Hair Oils

Dabur Amla: Largest brand in the portfolio

Vatika: Value added coconut oil

Anmol Hair Oil: Value proposition

Shampoo
Key Brands

#4 player in Shampoos

Vatika range of shampoos 19 19

Consumer Care Categories

Oral Care
Key Brands

#3 player in Toothpastes

#2 player in Toothpowder

Dabur Red: Toothpaste & Toothpowder

Babool: Targeted at economy segment

Meswak: Premium therapeutic toothpaste

Skin Care
Key Brands

#2 player in l i Skin Lightening

Gulabari range of rose based skin care products: Moisturizer, Face freshener & Rose water

Uveda: Range of Ayurvedic Skin Care

Fem Gold Bleach: Launched recently

20 20

Consumer Care Categories

Home Care
Key Brands

#1 player in Air Fresheners #1 player in p y Mosquito Repellant Creams #2 player in Toilet l i T il t Cleaners
Odonil: Air freshner range: L Largest brand tb d in the portfolio Odomos: Mosquito repellant skin cream ll t ki Sanifresh: Toilet cleaner

21 21

Consumer Care Categories

Health S H lth Supplements l t
Key Brands

#1 player in Ayurvedic Tonics y #2 player in Glucose #1 player in branded Honey

Dabur Chyawanprash: Largest selling health supplement in the country Dabur Glucose: 2nd largest player in the country Dabur Honey: Largest branded honey in the country; growing category through replace sugar strategy g gy

Digestives
Key Brands

#1 player in Herbal Digestives

Hajmola: Flagship brand for branded Digestives Hajmola tasty digestive candy 22 22

Consumer Care Categories

OTC and Ethicals d Ethi l
Description Repository of Daburs Ayurvedic Healthcare knowledge Range of over 260 products Focusing on multiple therapeutic areas. Distribution coverage of 200,000 chemists, ~12,000 vaidyas & 12,000 Ayurvedic pharmacies Focus on growing the OTC Health-Care portfolio aggressively CHD Structure

OTC (64%) Generics Branded Products

ETHICAL (36%) Tonic Classicals Branded Ethicals

Healthcare Focus OTC Healthcare is Rs.130 billion size industry Expected to grow at 14-15% p.a. as preference for Over-the-Counter products accelerates Dabur to expand its presence by : Consolidating / expanding current portfolio Launching new products in emerging therapeutic areas Look at inorganic opportunities Acquired the energizer brand, Thirty Plus from Ajanta Pharma in May 2011

Promoting Dabur Ayurveda: Generating equity for Ethical portfolio

23 23

Foods Business
Foods portfolio comprises Juices and Culinary range 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

Foods
Key Brands

#1 player in Fruit Juices

Real: Flagship R l Fl hi beverages brand

Real Activ: Range of 100% pure juice

24 24

International Business
Started as an Exporter Focus on Order fulfillment through India Mfg. Set up a franchisee at Dubai in 1989 Demand generation led to setting up of mfg in Dubai & Egypt Renamed franchisee as Dabur International Ltd Local operations further strengthened Set up new mfg facilities in Nigeria,RAK & Bangladesh Building scale- c 30% of scale c. Consol. Sales High Levels of Localization Global Supply chain

1980s

Early 90s

2003 Onwards

Today

Highlights Dabur s Daburs overseas business contributes c c. 30% to consolidated sales led by CAGR of 32% in last 6 years Focus markets: GCC Egypt E t Nigeria Turkey Bangladesh Nepal p U.S. High level of localization of manufacturing and sales and marketing Leveraging the Natural preference among local consumers to increase share in personal care categories Sustained investments in brand building and marketing
18000 16000 14000 12000 10000 8000 6000 4000 2000 0

High Growth in IBD

in Rs million Rs.

16,161

8,922 3,760 3 760 4,770 , 6,025

2,258 2,917 1,281 1,807

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12

International Sales Breakdown (FY12)

25 25

Africa and Middle East Overview

Real GDP Growth Rates (YoY) in % Africas Bulging Base

Source: IMF

Source: McKinsey on Africa, June 2010

Middle East and Africa have witnessed stable GDP growth rates Between 2005 and 2015, it is estimated that in Africa, the share of individuals earning above US$1,000 will grow from 39% to 55%. The rapidly emerging African middle class could number as many as 300 million, out of a total population of one billion The sheer volumes and the growth in the number of aspirational consumers with disposable income creates huge opportunities for consumer products companies
26 26

Acquisition of Hobi Group, Turkey

Acquisition of Hobi Group, Turkey for a total 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 complementary to our product range is

Acquisition provides an entry into another attractive emerging market and a good platform to leverage this across the region

27 27

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 Namast is a leading ethnic hair care products company, having products for women of colour, with revenues of c. $95 million (CY2010) from US, Europe, Middle East and African markets The company markets a portfolio of hair care products under the brand Organic Root Stimulator and has a strong presence in ethnic hair care market for women of colour. Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5 billion and tap into significant market opportunity in the fast growing hugely populated (~1 growing, Bn) yet highly underpenetrated consumer markets of Sub Saharan Africa We intend to grow the non U.S. business ahead of U.S. business and are taking initiatives in this direction We have commenced local manufacturing for Namaste at our RAK facility in UAE

28 28

Agenda
Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance

29 29

Growth Strategy
Three pronged Growth Strategy
Expand Innovate Acquire

Our differentiation is the herbal and ayurvedic platform Expand Strengthening presence in existing categories and markets as well entering new geographies Maintain dominant share in categories where we are category builders like Health Supplements, Honey etc. and expand market shares in other categories Calibrated international expansion local manufacturing and supply chain to enhance flexibility p g pp y y / reduce response time to change in market demands Innovate Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a. 5 6% Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste) Acquire Acquisitions critical for building scale in existing categories & markets Should be synergistic and make a good strategic fit Target opportunities in our focus markets
30 30

Agenda
Dabur India-Introduction FMCG Industry Scenario Business Overview Growth Strategy Recent Performance

31 31

Recent Financial Performance

Revenue (inRs.Cr.)

Consolidated S l C lid t d Sales grew b 23 0% d i by 23.0% during Q4FY12. Sales growth was a combination of volume growth and price increases and marginal translation gains Volume growth was at 12.4%
EBITDA i increased b 4 2% while EBITDA margin d by 4.2% hil i was lower at 17.8% in Q4FY12 v/s 21.1% in Q4FY11 Material costs were at 50.2% of sales visvis 47% in Q4FY11 Adpro during the quarter increased to 13.4% as compared to 11.5% in previous year

EBITDA ( (inRs.Cr.) )

PAT (inRs.Cr.) (in Rs. Cr.)

Consolidated PAT reported growth of 16.0% This was despite severe input cost pressure and increase in advertising and promotional costs

32 32

Stock Performance & Shareholding Pattern

Market Capitalization in Rs. billion Shareholding Structure*

200 174

17

2001

2012 2011
*As on March 31, 2012

Dabur ranked as the o g u d s organization that offers the best return to investors by o o s s u o s o s y the 6th Social & Corporate Governance Awards, presented by the Bombay Stock Exchange

33 33

Consolidated P&L
InRs.crores I R NetSales OtherOperatingIncome MaterialCost %ofSales EmployeeCosts %ofSales AdPro %ofSales OtherExpenses %ofSales OtherNonOperatingIncome EBITDA %ofSales InterestExp.andFin.Charges Depreciation Amortization Depreciation +Amortization ProfitBeforeTax(PBT) TaxExpenses PAT(AfterexceptionalItems) MinorityInterest Minority Interest (Profit)/Loss PAT(AfterExtraordinaryitem&MinorityInt) %ofSales Q4FY12 1363.6 9.0 684.9 50.2% 95.6 7.0% 182.0 13.4% 185.7 13.6% 19.0 243.3 17.8% 5.7 29.3 208.3 37.7 170.5 0.0 00 170.5 12.5% Q4FY11 1108.2 5.9 521.3 47.0% 87.3 7.9% 127.4 11.5% 161.0 14.5% 16.3 233.4 21.1% 15.9 29.1 188.4 41.4 147.0 0.0 00 147.0 13.3% 16.0% 10.5% 8.9% 16.0% 16.7% 4.2% 15.4% 42.9% 9.6% YoY(%) Y Y (%) 23.0% 53.7% 31.4% FY12 5,283.2 22.2 2,685.2 50.8% 387.4 7.3% 659.5 12.5% 683.1 12.9% 57.4 947.6 17.9% 53.8 103.2 790.5 146.4 644.1 0.8 08 644.9 12.2% FY11 4,077.4 27.1 1,937.5 47.5% 308.7 7.6% 534.6 13.1% 522.5 12.8% 32.1 833.4 20.4% 30.3 95.2 707.9 139.0 568.9 0.3 03 568.6 13.9% 13.4% 34 34 11.7% 5.3% 13.2% 78.6% 13.7% 30.7% 23.4% 25.5% YoY Y Y (%) 29.6% 17.9% 38.6%

Consolidated Statement of Assets and Liabilities

Particulars (in Rs. crores) A 1 EQUITY AND LIABILITIES Shareholders funds (a) Share capital (b) Reserves and surplus (c) Money received against share warrants Sub-total - Shareholders' funds Share application money pending allotment Minority interest * Non-current liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions Sub-total - Non-current liabilities Current liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions Sub-total - Current liabilities TOTAL - EQUITY AND LIABILITIES ASSETS Non-current assets (a) Fixed assets (b) Goodwill on consolidation * (c) Non-current investments (d) Deferred tax assets (net) (e) Long-term loans and advances (f) Other non-current assets Sub-total - Non-current assets Current assets (a) Current investments (b) Inventories (c) Trade receivables (d) Cash and cash equivalents (e) Short-term loans and advances (f) Other current assets Sub-total - Current assets TOTAL - ASSETS As at (current year end) 31/03/2012 As at (previous year end) 31/03/2011

174 1,543 1,717 3 727 27 658 1,412 347 859 120 164 1,490 4,622

174 1,217 1,391 4 717 19 578 1,314 303 661 109 141 1,214 3,923

2 3 4

B 1

869 799 89 433 72 2,262 393 824 462 448 154 79 2,360 4,622

732 799 2 340 101 1,974 418 709 355 280 127 60 1,949 3,923

35 35

Recent Accolades

Dabur has been voted by consumers as Indian PowerBrand 2011 2012 2011-2012

Dabur has been ranked as the Most Trusted Leader in the Healthcare category in the Brand Trust Report 2012

Dabur ranked as No. 2 Most Social Brand of India, in the Social Media report launched at Click Asia Summit 2012

Dabur India Ltd has been ranked among the Top 10 Best Companies To Work Best For in the Manufacturing sector by Business Today

Dabur ranked 184 in the FE-500 list of India's Finest Companies

Dabur's greenfield unit in Baddi awarded LEED India Silver Rating for achieving Green Building Standards

Dabur's Baddi Units awarded Silver Certification for Enhancing Manufacturing & Supply Chain Excellence, by ETIndia Manufacturing Excellence cell

Dabur ranked 37 in list of India's Greatest Wealth Creators 2011. Dabur has been ranked 30 in the list of India's Top Employment Generators by Business & Economy magazine

36 36

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 uncertainties. assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. Actual results can differ materially from those anticipated in the Companys forwardlooking statements as a result of a variety of factors, including those set forth from time to time in the Companys press releases and reports and those set forth from time to time in the Companys analyst calls and discussions. We do not assume any obligation to update the forwardlooking p y y y g p g statements contained in this presentation. No part of this presentation shall form the basis of or may be relied upon in connection with any contract or commitment. This presentation is being presented solely for your information and is subject to change without notice.

37 37

Investor Relations Dabur India Ltd Contact:+91-11-42786000

38 38