Dabur India Ltd. — Interim / Quarterly Report 2020

May 27, 2020

•Scrip Symbol: NSE- DABUR, BSE Scrip Code: 500096

To, India Ltd. BSE Ltd. Exchange Plaza, 5th Floor Dalal Street, Mumbai- 400001 Bandra [E], Mumbai - 400051

Corporate Relation Department National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers Plot No. C/l, G Block Bandra - Kurla Complex

Sub: Investors Communication

Dear Sir,

In compliance of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to enclose a copy of Press Release and Investors Communication being issued by the company today for your records.

This is for your information and records.

Thanking You,

Yours faithfully,

For Dabur India Limited

^

(AlK^in> Exectrfive V P (Finance) and Company Secretary

End: as above

Q4 FY20 – Results Presentation

27th May 2020

Agenda

Coronavirus in India

FY20 and Q4 FY20 – Performance Overview

How are we coping with Covid-19 pandemic

Coronavirus in India

3

The curve in India hasn't flattened yet

• According to the Public Health Foundation of India (PHFI), at the current rate, with the expectation that lockdown will be lifted after May 31, India's peak should occur in mid-July

• FMCG sector is recovering sequentially as lockdowns are being lifted; Some categories and channels are showing a faster recovery

Agenda

Coronavirus in India

How are we coping with Covid-19 pandemic

FY20 – Performance Summary

	FY20Reported Growth %	11 months ending 29 Feb'20*
Consolidated Revenue Growth	2.0%	6.4%
India FMCG Volume Growth	1.1%	6.2%
International BusinessGrowth	4.9%	6.9%
Operating Profit Growth	3.0%	11.3%
Consolidated PAT Growth	0.2%	7.9%
Consolidated PAT beforeExceptional Growth	5.8%	12.8%

Impact of Covid-19 on FY20 Financials

• Dabur was on track to deliver around 6% revenue growth for FY20 if Covid-19 had not happened
• With an impact of INR 360 crore on sales, revenue grew by 2% in FY20

• Dabur was on track to deliver growth of around 14% in PAT before exceptional items for FY20 if Covid-19 had not happened
• Reported growth in PAT before exceptional items was 5.8%

Domestic FMCG Growth – By Verticals – FY20

7

Domestic Business – Category Wise Growths

8

Q4 FY20 – Performance Summary

	Q4 FY20Reported Growth %	2 months ending29 Feb'20*
Consolidated Revenue Growth	(12.3%)	4.5%
India FMCG Volume Growth	(14.6%)	4.6%
International Business Growth	(0.6%)	8.4%
Operating Profit Growth	(22.9%)	5.9%
Consolidated PAT Growth	(24.1%)	4.1%
Consolidated PAT beforeExceptional Growth	(18.9%)	4.1%

Impact of Covid-19 on Dabur's Q4 FY20 Performance

• Dabur was on track to deliver 4.5% revenue growth for Q4 FY20 if Covid-19 had not happened
• With an impact of INR 360 cr on sales, revenue declined by 12.3%

• Dabur was on track to deliver 12.5% PAT before exceptional growth for Q4 FY20 if Covid-19 had not happened
• Reported PAT Before exceptional item declined by 18.9%

Domestic FMCG Growth – By Verticals – Q4 FY20

11

International Business – Q4 FY20 and FY20

MENA

Egypt

Hobi

SSA

SAARC

12

Namaste

• International Business reported -0.6% growth in Q4FY20
• The business grew by 5% in FY20.
• Egypt recorded growth of 14.3% during Q4FY20
• Hobby had a strong quarter in spite of Covid, growing by

47.9% in Q4FY20

• Namaste business reported 11.3% growth in Q4FY20 with a

strong performance in the international business

• MENA was impacted by Covid and macroeconomic

headwinds in Q4FY20

• SAARC markets were under some pressure due to lockdowns

Constant Currency Growth

SSA numbers include ORS business in Africa

Agenda

Coronavirus in India

FY20 and Q4 FY20 – Performance Overview

How are we coping with Covid-19 pandemic

Strategy to manage Covid-19

Employee Well-Being

As we progressed through various phases of lockdown, we ensured employee safety and productive work practices

• Work from Home was swiftly implemented with comprehensive guidelines
• Frequent employee communication from CEO and HR

• As our factories re-opened and sales force went to field, comprehensive guidelines were implemented to ensure safety and protection
• Also covered 600 CFA staff and 1,550 SSMs with Medical Insurance
• With our offices opening and employees coming back to office, we are making sure that Social Distancing and Hygiene and safety practices are rigorously followed

Re-purpose Brand Communication in COVID Context

Retool Media Mix in current context

Higher Focus on Healthcare and Hygiene

Entry into newer categories and launch of relevant NPDs

1. Repurpose Brand Communication in Covid Context

Vocal for Local – Created special videos emphasizing our local roots and heritage

3. Higher Focus on Health and Hygiene

Relevant Launches in these categories Higher media spends on Relevant Categories

New Product Launches – Healthcare

New Product Launches – HPC

New Product Launches - Foods

New Product Launches – International Business

New Product Launches – International Business

GTM Approach

Sales Order Taking

• Enabled SSMs to telecall and take order on SFA directly from home at start of Covid
• Piloted order taking through WhatsApp & Centralized Tele-Agents
• Realigned Parlour Team to GT Channel Launch of Retailer App now reaching close to 40,000 retailers for self-service

Automation in Order Taking under Covid

GTM Approach

Streamlining Manufacturing

CovidTimeline in Factories
All factories had to be shut down in•last week based of Mar'20 postGovernment notification of lockdown•Factory operations re-startedselectively from 2nd week of April,post approvals from local authorities,
with limited manpower.•Detailed shop-floor precautions &safety systems implemented with	Adopted and ImplementedSafe Work Practices	Sanitization of factory roadsand entrance areas	Social distancing normsbeing strictly followed incafeteria	Hygiene Station at Factories
appropriate training to staff andworkmen.•Despite constraints on manpoweravailability due to restrictions oninter-state movements, mostfactories are currently running atoperational capacity of 60-70%.We are adding capacities and 3Ps•
where there is shortage ofcapacity	Safety and Hygiene trainingof all employees beforecommencing operations	Fumigation at Offices andShop Floors	Sanitization and ThermalScanning of Employees,Truck Drivers and LoadingVehicles at the Entry Gates	Social Distancing beingstrictly followed at factories

29

Cost and Cash Flow Management

Samriddhi

Initiated Project Samriddhi in India for cost optimisation and value enhancement across various levers of business

Areas under consideration include:

• Raw and Packaging Material Spends
• Logistics Spend
• Indirect Spends
• Net Revenue Management (Pricing, CP and TP Spends)
• Manufacturing Costs
• Employee Costs

Cash Flow Management Project

• Debtors: The collections were driven by regular follow ups and

selective incentives to distributors for early payments and

collection through RTGS and NACH (National Automated Clearing

House)

• Extended supplier credit period
• Cash flows were managed through daily monitoring of Collections and Payments to optimize the same
• No liquidity issues faced as the company has sufficient cash

reserves of around INR 3,800 crore as on 31st March 2020

Community Welfare

Dabur Health and Safety kits, comprising a hand sanitizer, face masks, immunity building medicine and nutritious food distributed to Police personnel across the country

Health and Safety kits were donated to frontline Health workers and Sanitation workers across India to offer them protection from COVID-19

Nutritious meals were provided to families of migrant workers and urban poor, who were the most severely hit by the lockdown across India

Women at our Stitching-Tailoring centres have been engaged to stitch face masks, which were distributed free-ofcost to community members to protect them from COVID-19

thank frontline Corona Warriors

On-going impact in Q1 FY21

• The month of April and part of May 2020 saw complete lockdown which led to a significant impact on the company's revenue but with the easing of restrictions, we are seeing sequential improvement in the revenue trajectory of the company.
• Impact on revenue from operations has been partially mitigated by higher focus on health and hygiene categories, launch of new products, driving sales through new channels such as delivery platforms and e-commerce and aggressive monitoring of sales in GT channel.
• In spite of the above, the impact of Covid-19 on Q1 FY21 Revenue from Operations (based on best judgement and normal growth scenario) is likely to be in the range of INR 400-450 crore.
• Impact on PAT of Q1 FY21 is likely to be in the range of INR 60-80 crore

Consolidated Profit & Loss Statements

Allfiguresare inINRcr	Q4 FY20	Q4 FY19	Y-o-Y (%)	FY20	FY19	Y-o-Y (%)
Revenue from operations	1,865.4	2,128.2	(12.3%)	8,703.6	8,533.1	2.0%
Other Income	75.7	66.1	14.6%	305.2	296.2	3.1%
Total Income	1,941.1	2,194.3	(11.5%)	9,008.8	8,829.2	2.0%
Material Cost	949.6	1,069.3	(11.2%)	4,360.2	4,309.0	1.2%
of%Revenue	509%	502%		501%	505%
Employee expense	230.1	241.9	(4.9%)	947.7	937.9	1.0%
%ofRevenue	123%	114%		109%	110%
Advertisement and publicity	100.2	97.8	2.5%	650.0	608.3	6.8%
of%Revenue	4%5	6%4		5%7	1%7
Other Expenses	233.2	262.0	(11.0%)	953.2	938.2	1.6%
%ofRevenue	125%	123%		110%	110%
Operating Profit	352.3	457.2	(22.9%)	1,792.4	1,739.6	3.0%
of%Revenue	189%	215%		206%	204%
EBITDA	428.1	523.3	(18.2%)	2,097.7	2,035.7	3.0%
of%Revenue	229%	246%		241%	239%
Finance Costs	8.6	12.4	(30.9%)	49.5	59.6	(16.8%)
Depreciation & Amortization	58.8	46.2	27.3%	220.5	176.9	24.6%
Profit before exceptional items, tax and shareof profit/(loss) from joint venture	360.7	464.7	(22.4%)	1,827.7	1,799.3	1.6%
of%Revenue	193%	218%		210%	211%
Share of profit / (loss) of joint venture	(0.4)	(0.1)	680.0%	(0.0)	1.0	(101.0%)
Exceptional item(s)	20.0	75.3	(73.5%)	100.0	75.3	32.7%
Tax Expenses	58.6	17.8	229.9%	279.7	278.6	0.4%
Net profit after tax and after share ofprofit/(loss) from joint venture	281.6	371.5	(24.2%)	1,447.9	1,446.3	0.1%
%ofRevenue	151%	175%		166%	169%
Non controlling interest	0.4	1.1	(59.4%)	3.0	3.9	(24.5%)
Net profit for the period/year	281.2	370.4	(24.1%)	1,445.0	1,442.3	0.2%
%ofRevenue	151%	174%		166%	169%

Standalone Profit & Loss Statements

Allfiguresare inINRcr	FY20	FY19	Y-o-Y (%)	FY20	FY19	Y-o-Y (%)
Revenue from operations	1,321.2	1,598.4	(17.3%)	6,309.8	6,273.2	0.6%
Other Income	67.1	63.1	6.3%	276.9	274.7	(75.5%)
Total Income	1,388.2	1,661.5	(16.4%)	6,586.7	6,547.9	0.6%
Material Cost	676.6	820.5	(17.5%)	3,244.7	3,257.5	(0.4%)
%ofRevenue	512%	513%		514%	519%
Employee expense	133.6	143.2	(6.7%)	578.3	572.3	1.0%
of%Revenue	101%	90%		92%	91%
Advertisement and publicity	69.2	76.9	(10.1%)	514.3	490.8	4.8%
%ofRevenue	52%	48%		82%	78%
Other Expenses	143.7	164.1	(12.4%)	591.8	585.4	1.1%
of%Revenue	109%	103%		94%	93%
Operating Profit	298.1	393.7	(24.3%)	1,380.8	1,367.2	1.0%
%ofRevenue	226%	246%		219%	218%
EBITDA	365.2	456.8	(20.1%)	1,657.7	1,642.0	1.0%
%ofRevenue	276%	286%		263%	262%
Finance Costs	2.6	6.3	(58.2%)	19.3	29.8	(35.3%)
Depreciation & Amortization	33.2	28.6	15.9%	129.9	108.8	19.4%
Profit before exceptional items, tax and shareof profit/(loss) from joint venture	329.3	421.8	(21.9%)	1,508.5	1,503.4	0.3%
of%Revenue	249%	264%		239%	240%
Exceptional item(s)	20.0	0.0	n.a.	100.0	0.0	n.a.
Tax Expenses	52.3	7.5	596.8%	238.1	239.1	(0.4%)
Net profit for the period/year	257.0	414.3	(38.0%)	1,170.4	1,264.3	(7.4%)
%ofRevenue	195%	259%		185%	202%

Consolidated Balance Sheet

Particulars	As at31/03/2020(Audited)	As at31/03/2019(Audited)	Particulars	As at31/03/2020(Audited)	As at31/03/2019(Audited)
AAssets			BEquity and Liabilities
1Non-current assets			1Equity
(a)Property, plant and equipment	1,821	1,548	(a)Equity share capital	177	177
(b)Capital work-in-progress	147	64	(b)Other Equity	6,430	5,455
(c)Investment property	52	52	Equity attributable to shareholders of the
(d)Goodwill	336	336	Company	6,607	5,632
(e)Other Intangible assets	44	33	Non-Controlling Interest	36	31
(f)Financial assets			Total equity	6,643	5,663
(i)Investments	1,409	2,633
(ii)Loans	20	18	2Non-current liabilities
(iii)Others	528	78	(a)Financial liabilities
(g)Deferred tax assets	23	0	(i)Borrowings	175	26
(h)Non-current tax assets (net)	1	1	(ii)Other financial liabilities	1	5
(i)Other non-current assets	112	88	(b)Provisions	63	60
Total Non-current assets	4,492	4,850	(c)Deferred tax liabilities (Net)	17	23
			Total Non-current liabilities	256	113
2Current assets
(a)Inventories	1,380	1,301	3Current liabilities
(b)Financial assets			(a)Financial liabilities
(i)Investments	1,387	725	(i)Borrowings	304	498
(ii)Trade receivables	809	834	(ii)Trade payables
(iii)Cash and cash equivalents	167	108	Due to micro and small
Bank Balances other than (iii)			enterprises	0	55
(iv)above	645	220	Due to
(v)Loans	12	11	others	1,480	1,401
(vi)Others	3	26	(iii)Other financial liabilities	232	328
(c)Current tax asset(net)	1	1	(b)Other current liabilities	230	198
(d)Other current assets	462	360	(c)Provisions	166	130
(e)Assets held for sale	0	0	(d)Current tax Liabilities (Net)	47	51
Total current assets	4,865	3,586	Total Current liabilities	2,458	2,660
Total Assets	9,357	8,437
			Total Equity and Liabilities	9,357	8,437

36

Standalone Balance Sheet

	Particulars	As at31/03/2020(Audited)	As at31/03/2019(Audited)	As atParticulars31/03/2020(Audited)	As at31/03/2019(Audited)
A	Assets			BEquity and Liabilities
1	Non-current assets			1Equity
	(a)Property, plant and equipment	1,061	972	(a)Equity share capital177	177
	(b)Capital work-in-progress	106	22	(b)Other Equity4,399	3,792
	(c)Investment property	48	49	Total equity4,575	3,969
	(d)Other Intangible assets	25	15
	(e)Financial assets			2Non-current liabilities
	(i)Investments	1,084	2,237	(a)Financial liabilities
	(ii)Loans	12	13	(i)Borrowings25	26
	(iii)Others	403	78	(ii)Other financial liabilities1	5
	(f)Deferred tax assets	23	0	(b)Provisions55	53
	(g)Non-current tax assets (net)	1	1	(c)Deferred tax liabilities (Net)0	8
	(h)Other non-current assets	91	68	Total Non-current liabilities80	92
	Total Non-current assets	2,854	3,454
				3Current liabilities
2	Current assets			(a)Financial liabilities
	(a)Inventories	809	733	(i)Borrowings89	109
	(b)Financial assets			(ii)Trade payables
	(i)Investments	1,379	725	Due to micro and small enterprises0	55
	(ii)Trade receivables	374	431	Due to others1,030	944
	(iii)Cash and cash equivalents	6	23	(iii)Other financial liabilities156	265
	(iv)Bank Balances other than (iii)	521	102	(b)Other current liabilities46	57
	(v)Loans		5	(c)Provisions123	81
	(vi)Others	9	14	(d)Current tax Liabilities (Net)5	8
	(c)Other current assets	0	0	Total Current liabilities1,448	1,518
	(d)Current tax assets(net)	152	91
	Total current assets	3,250	2,124	Total Equity and Liabilities6,103	5,579

Note: All figures are in INR cr

Total Assets 6,103 5,579

37

Revenue from Operations Breakdown

All figures are in INR crores, unless otherwise stated

Division	Q4FY20	Q4FY19	Q4FY20Growth%	FY20	FY19	FY20Growth%	YTDFeb'20Growth%
HealthSupplements	242	268	(9.5%)	1,115	1,030	8.2%	12.9%
Digestives	87	96	(9.5%)	372	345	8.0%	14.2%
OTC&Ethicals	110	139	(20.6%)	518	519	(0.1%)	6.7%
HealthCare	440	503	(12.6%)	2,006	1,894	5.9%	11.4%
Shampoo&PostWash	40	48	(168%)	192	187	2.7%	7.9%
HairOil	225	284	(208%)	1,057	1,077	(18%)	3.7%
HairCare	265	333	(20.2%)	1,249	1,263	(1.1%)	4.3%
OralCare	219	260	(15.8%)	1,005	987	1.8%	7.0%
HomeCare	73	89	(18.4%)	409	405	1.1%	5.1%
Skin&Salon	56	74	(24.2%)	301	310	(2.7%)	1.8%
HPC	613	755	(18.9%)	2,964	2,965	(0.0%)	5.0%
Foods	189	238	(20.6%)	942	1,003	(6.1%)	0.1%
Sales- DomesticFMCG	1,241	1,496	(17.0%)	5,912	5,862	0.9%	6.3%
Other(DomesticFMCG)OperatingIncome- ABE	9	14	(35.5%)	50	64	(218%)
- DomesticRevenueFMCG	1,250	1,510	(17.1%)	5,962	5,926	0.6%	6.2%
Others(GuarPharma, Exports), Fem	71	89	(19.7%)	348	347	0.1%
StandaloneRevenue- DIL	1,321	1,598	(17.3%)	6,310	6,273	0.6%	5.9%
International	543	546	(06%)	2,430	2315,	4.9%	69%
Retail	28	31	(9.7%)	125	124	0.5%	5.0%
Company(Net)InterExports	(28)	(48)	n.m.	(161)	(180)	(10.5%)	n.m.
fromOperations- ConsolidatedRevenue	1,865	2,128	(12.3%)	8,704	8,533	2.0%	6.4%

For more information & updates, visit : http://www.dabur.com/in/en-us/investor