Dabur India Ltd. — Interim / Quarterly Report 2021

Jan 29, 2021

Ref:SEC/SE/2020-21 Date: January 29, 2021

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

To, Corporate Relation Department BSE Ltd Phiroze Jeejeebhoy Towers Dalal Street, Mumbai- 400001

National Stock Exchange of India Ltd Exchange Plaza, 5th Floor Plot No. C/l, G Block Bandra - Kurla Complex Bandra (E), Mumbai - 400051

Sub: Investors Communication

Dear Sir,

In compliance ofSEBI (Listing Obligations and Disclosure Requirements] Regulations, 2015, we are pleased to enclose a copy of 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

^_

(AKjlln) Executive V P (Finance) and Company Secretary

End: as above

Q3 FY21 – Results Presentation

29th Jan 2021

Agenda

Agenda

GDP growth estimated to be flattish in Q3 and Q4

India Real GDP Contracted By 23.9% In Q1FY21 and 7.5% in Q2 FY21; Expected to stay flat in Q3 and Q4

Most agencies upgraded their FY21 forecast post narrower contraction in Q2 than expectations

FY21 GDP Growth Forecasts

Key Macro Indicators

Unemployment rate jumps to 9.1% in Dec'20

Current Consumer Confidence at ever lowest levels

Source: Ministry of Statistics and Program Implementation, Centre for Monitoring of Indian Economy, Ministry of Commerce, RBI

Agenda

Q3 FY21 – Performance Summary

Q3 FY21 – Financials

398 492 493 574 Q3 FY20 Q3 FY21 2,353 2,729 Q3 FY20 Q3 FY21 Revenue • Standalone business revenue grew by 18.5% (FMCG India saw 19.5% growth) on the back of 18.1% volume growth • Growth in International Business was 13.0% with constant currency growth of 14.1% +16.0% • Consolidated Operating Profit saw a growth of 16.5% and the operating margin saw an improvement of 10 bps, reaching 21.0% in Q3 FY21 • Standalone Operating Profit saw a growth of 15.7%, operating margin of 21.9% in Q3 FY21 Operating Profit PAT • Consolidated PAT reported an increase of 23.7% • Consolidated PAT margin improved by 113 bps to touch 18% • Excluding exceptional item, PAT grew by 19.1% +16.5% +23.7%

Q3 FY20 Q3 FY21

• Effective tax rate for Consol business decreased from 17.3% to 16.5% on account of country mix

Domestic FMCG Growth – By Verticals – Q3 FY21

Agenda

Healthcare – Q3 FY21

	HealthSupplements	Digestives	OTC	Ethicals
Growth %	34.7%	(0.3%)	34.1%	23.2%
CategoryHighlights	•Recorded strong growth on•PudinHara portfolio sawthe back of robust doublestrong double-digit growth indigit growth of DaburQ3 FY21Chyawanprash and Dabur		•Driven by strong growth inHonitus, Lal Tail and ShilajitPortfolio	•Ethicalsgrew in double digitson the back of distributionexpansion, visibilityinitiatives and activations
	Honey•Market share in Chyawanprashcategory increased by ~120 bps•Market share in Honey categoryincreased by ~700 bps	Hajmolaportfolio was impacted•due to lower outdoor activity,reduced outside foodconsumption and closure ofrestaurants -seeing sequentialimprovement	NPDs like Dabur Health•Drops, Health Juices andother immunity boostingproducts added to themomentum of the portfolio	•Immunity@Doorstepinitiativeentered phase 4 with an additionof 10 cities

Bharat ka Vishwaas, Har Din Dabur Chyawanprash

Dabur Honey – New Communication

Pudin Hara Pait Rahe Set – Digital Campaign

New Product Launches - Healthcare

Home and Personal Care – Q3 FY21

	Oral Care	Hair Oils	Shampoo	Home Care	Skin & Salon
Growth %	28.0%	11.6%	27.1%	(1.0%)	9.1%
CategoryHighlights	•Red Toothpastecontinues to see gooddemand momentum	•Witnessed a strongrecovery	•Shampoos portfolioregistered strong growthin spite of decline in thecategory	•Air freshener categorycontinued to be impactedbeing more discretionaryin nature. However,Odonil'sMS improvedby ~210 bps•Mosquito repellantcreams also saw adecline, but Odomos'MS increased ~250bps	•Driven by strong growthin Fem Handwashesportfolio
	•Meswakand BaboolFranchise also reportedrobust double-digitgrowthsToothpaste market•share improved by~120 bps	•Perfumed oils andcoco oils portfoliosreported double digitgrowth•Market shareimproved by ~20 bps	Market share in•shampoo categoryincreased by ~50 bps		•Gulabariand Fem areseeing sequentialimprovement as mobilityand social activity aregoing up

Desh ka Lal

Dabur Red Toothpaste – Vatika Ayurvedic Shampoo – New TVC

Fem – Salon like glow at home (New TVC)

New Product Launches - HPC

Foods – Q3 FY21

	Beverages	Culinary
Growth %	3.9%	16.1%
CategoryHighlights	Juices business excluding Enterprise (HORECA, FS and CSD) saw•a growth of ~8%Market share of Real increased by 20 bps•ActivCoconut Water reported strong double-digit growth•Recent launches of Real Mango Drink in PET, Dabur Amla Plus and Real•Frappe showed good traction	Hommadebrand performed well driven by increased cooking at home•Excluding the HORECA business, Culinary business recorded•growth of 43%Recent launches like chutneys & pickles added to the growth momentum•
Real –	New Communication on RangeReal –#PhirSeGlassBharo Campaign	Dabur HommadeChutney Range –

Real – New Communication on Range and Quality Credentials

15

Consumer Connect through Activations

No. of Activities: 56No. of Activities: 56 Consumer Reach: 6.6 cr

Ratnaprash- Majboot Rishto ki Buniyaad

Wifes of 21 ITBP Jawans travelled from across India to celebrate karwa chauth with their life partner at ITBP's Shimla Base Camp Digital reach of 12 lakh

Immunity@doorstep –Phase 4 10 cities selected for phase-4 Sell out of NPDs & Ayurvedic products Vans moved around the suburban areas for higher impact

Durga Pooja (22-26 Oct)

14 feet Hajmola Chatpati hing bottle Immunity Sandesh, made with Ratnaprash Rheumatil Foot massage for murtikars Ayushkwath Kadha – Sampling drive for police personnel and pandal visitors Consumer reach of 10 lakh+

Sanitize Soap – Hand Washing Day (15th Oct)

Initiative aimed at creating awareness about the importance of washing hands regularly and for thanking frontline workers Consumer reach of 5 lakhs across 120 locations

Bharat ka swasthya Rakshak (Oct to Dec)

40 branded vans across India at sub-stockist towns (Bihar, UP, MP , CG and Karnataka)

Chitrakoot Mela (10-14 Nov)

Boat Branding by Honitus & Dabur Amla Women cloth changing rooms by Dabur Amla, Ashokaristha & Dashmularistha Rheumatil foot massage for devotees Consumer reach of 15 lakhs+

International Business – Q3 FY21 Performance

• International Business reported a growth of 13% (CC growth of 14.1%)
• MENA saw a turnaround and clocked a growth of 11.1%
• Egypt recorded an increase of 9.5%
• Hobby had a strong quarter, growing by 33.4%
• Namaste business posted 8.2% growth
• Nepal business grew by 12.9% and Bangladesh saw a growth of 17.4%

Q3 FY21 Constant Currency Growth %

Product Launches in MENA – Q3 FY21

Vatika Oilfusion – Hair Colour Crème Range

Product Launches in SAARC – Q3 FY21

Annexure

Consolidated Profit and Loss Statement

Allfiguresare inINRcr	Q3 FY21	Q3 FY20	Y-o-Y (%)	9M FY21	9M FY20	Y-o-Y (%)
Revenue from operations	2,728.8	2,353.0	16.0%	7,224.9	6,838.2	5.7%
Other Income	80.9	74.5	8.7%	240.3	229.5	4.7%
Total Income	2,809.8	2,427.4	15.8%	7,465.2	7,067.8	5.6%
Material Cost	1,353.7	1,174.4	15.3%	3,591.2	3,410.6	5.3%
%ofRevenue	496%	499%		497%	499%
Employee expense	274.0	244.8	12.0%	765.1	717.7	6.6%
of%Revenue	100%	104%		106%	105%
Advertisement and publicity	282.4	203.5	38.8%	630.2	549.8	14.6%
%ofRevenue	103%	86%		87%	80%
Other Expenses	244.5	237.4	3.0%	678.2	720.1	(5.8%)
%ofRevenue	90%	101%		94%	105%
Operating Profit	574.2	492.9	16.5%	1,560.2	1,440.1	8.3%
of%Revenue	210%	209%		216%	211%
EBITDA	655.1	567.4	15.5%	1,800.5	1,669.6	7.8%
of%Revenue	240%	241%		249%	244%
Finance Costs	6.9	10.5	(34.6%)	22.2	41.0	(45.9%)
Depreciation & Amortization	57.2	54.4	5.1%	173.5	161.6	7.4%
Profit before exceptional items, tax and share of	591.1	502.5	17.6%	1,604.8	1,467.0	9.4%
profit/(loss) from joint venture
%ofRevenue	217%	214%		222%	215%
Share of profit / (loss) of joint venture	(0.1)	(0.2)	(32.4%)	(0.4)	0.4	(210.5%)
Exceptional item(s)	0.0	20.0	(100.0%)	0.0	80.0	(100.0%)
Tax Expenses	97.5	83.5	16.8%	286.7	221.1	29.7%
Net profit after tax and after share of profit/(loss)	493.5	398.9	23.7%	1,317.6	1,166.3	13.0%
from joint venture
of%Revenue	181%	170%		182%	171%
Non controlling interest	1.5	1.2	26.5%	2.2	2.5	(13.8%)
Net profit for the period/year	492.0	397.7	23.7%	1,315.5	1,163.8	13.0%
%ofRevenue	180%	169%		182%	170%

Standalone Profit and Loss Statement

	Q3 FY21	Q3 FY20	Y-o-Y (%)	9M FY21	9M FY20	Y-o-Y (%)
Revenue from operations	2,071.1	1,748.2	18.5%	5,462.9	4,988.6	9.5%
Other Income	68.1	67.3	1.2%	206.1	209.9	(65.1%)
Total Income	2,139.2	1,815.4	17.8%	5,669.0	5,198.5	9.1%
Material Cost	1,061.9	895.1	18.6%	2,772.3	2,568.1	8.0%
%ofRevenue	513%	512%		507%	515%
Employee expense	171.6	149.7	14.6%	489.3	444.7	10.0%
of%Revenue	83%	86%		90%	89%
Advertisement and publicity	229.3	166.3	37.9%	526.6	445.1	18.3%
of%Revenue	111%	95%		96%	89%
Other Expenses	155.4	145.5	6.8%	448.0	448.1	(0.0%)
%ofRevenue	75%	83%		82%	90%
Operating Profit	452.9	391.6	15.7%	1,226.5	1,082.7	13.3%
of%Revenue	219%	224%	(53.1)	225%	217%
EBITDA	521.0	458.8	13.5%	1,432.7	1,292.5	10.8%
of%Revenue	252%	262%		262%	259%
Finance Costs	1.7	4.7	(63.0%)	6.1	16.6	(63.2%)
Depreciation & Amortization	35.9	32.6	9.8%	106.0	96.8	9.6%
Profit before exceptional items, tax and share ofprofit/(loss) from joint venture	483.4	421.5	14.7%	1,320.6	1,179.1	12.0%
of%Revenue	233%	241%		242%	236%
Exceptional item(s)	0.0	20.0	(100.0%)	0.0	80.0	(100.0%)
Tax Expenses	83.9	71.5	17.3%	238.9	185.8	28.6%
Net profit for the period/year	399.5	330.0	21.1%	1,081.6	913.4	18.4%
%ofRevenue	193%	189%		198%	183%

Breakdown of Revenue from Operations

figuresAllinINRunlessotherwisestatedarecrores,	Q3 FY21	Q3 FY20	Y-o-Y (%)	9M FY21	9M FY20	Y-o-Y (%)
Health Supplements	561	417	34.7%	1,304	873	49.4%
Digestives	100	101	(0.3%)	276	285	(3.2%)
OTC & Ethicals	205	159	28.5%	526	408	28.9%
Healthcare	866	677	28.1%	2,106	1,566	34.5%
Shampoo & Post Wash	54	42	27.1%	167	151	10.0%
Hair Oils	298	267	11.6%	771	832	(7.4%)
Hair Care	352	309	13.7%	937	984	(4.7%)
Oral Care	333	260	28.0%	927	786	17.9%
Home Care	106	107	(1.0%)	291	336	(13.5%)
Skin & Salon	99	90	9.1%	277	246	12.9%
HPC	890	768	15.9%	2,432	2,352	3.4%
Beverages	198	191	3.9%	601	712	(15.6%)
Culinary	17	15	16.1%	47	42	11.6%
Foods	215	205	4.7%	648	753	(14.1%)
Sales -Domestic FMCG	1,971	1,649	19.5%	5,186	4,671	11.0%
Others (Guar, Fem Pharma, Exports, etc)	100	99	1.0%	277	318	(12.8%)
Revenue -DIL Standalone	2,071	1,748	18.5%	5,463	4,989	9.5%
International	688	609	13.0%	1,857	1,886	(1.6%)
Retail	21	35	(38.9%)	34	97	(64.6%)
Inter Company Exports (Net)	(51)	(39)	32.7%	(129)	(133)	(3.3%)
Revenue from Operations -Consolidated	2,729	2,353	16.0%	7,225	6,838	5.7%

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