Dabur India Ltd. — Investor Presentation 2018

Nov 13, 2018

Ref: SEC/SE/2018-19/23 Date: November 13,2018 5

Scrip Code: NSE - DABUR, BSE-500096

To,

Corporate Relation Department Bombay Stock Exchange Ltd. Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400 001.

National Stock Exchange of India Ltd. Exchange Plaza, 5th Floor Plot No. C/l, G Block Bandra - Kurla Complex Bandra (E) Mumbai-40005L

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India Ltd.

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Sub: Submission of information under Regulation 30 of the SEBI (Listing Obligations & Disclosure Reauirements) Reeulations, 2015

Schedule of Analyst/ Institutional investor Meet

Dear Sir,

Pursuant to provisions of Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, we wish to inform you that the officials of the Company shall participate in 21st CLSA India Forum (Organized by CLSA Ltd) on 15th November, 2018 at The Oberoi, Gurgaon.

Copy of presentation to be shared with investors in the above said conference is attached.

The aforesaid infomiation is also being disclosed on the website of the Company at www^laburcam.

This is for information and records please.

Thanking you,

Yours faithfully,

For Dabur India Limited

End: as above

Dabur India Limited

Investor Presentation CLSA India Forum – November 2018 1

Agenda

1. Dabur – Overview

• 1. Business Structure
• 1. India Business
• 1. International Business
• 1. The way forward
• 1. Annexure

Dabur is the largest science-based Ayurveda company

Overview Awards

Established in 1884 – 134 years of trust and excellence

One of the world's largest in Ayurveda and natural healthcare

Having one of the largest distribution network in India, covering ~6.4 mn outlets

20 world class manufacturing facilities catering to needs of diverse markets

Strong overseas presence with ~28% contribution to consolidated sales

Dabur Red Paste rated as 2nd most trusted brand by the consumers in the Oral Care category by the Brand Equity India's Most Trust Brands 2017

Dabur moves up 4 Places in Fortune India 500 List; ranked 163 in the list for 2015

Dabur ranked 25 in the list of Best Companies for CSR in India, according to the Economic Times

Dabur India successfully held the firstever Guinness World Record attempt for the largest simultaneous Nasya Panchkarma Treatment session

Manufacturing facilities located across the globe

One of the largest distribution network in India

Distribution reach of 6.4 mn retail outlets with direct reach of 1.1 mn+

Strong financial profile

• optically static due to change in accounting standards, demonetization and implementation of GST
• Steady increase in operating margin, touching 20.9% in FY18

• PAT has grown at a CAGR of 15% over the last 10 years
• PAT margin went up to 17.5% in FY18

Note: All figures are in INR bn

FY09 to FY15 is basis IGAAP, FY16 and FY17 are as per IndAS and FY18 is as per IndAS and takes into account GST

Agenda

• 1. Dabur Overview
• 2. Business Structure
• 1. India Business
• 1. International Business
• 1. The way forward
• 1. Annexure

Business Structure

Agenda

• 1. Dabur Overview
• 1. Business Structure

3. India Business

• 1. International Business
• 1. The way forward
• 1. Annexure

The domestic business has seen recovery in the past fiscal year with growth picking up since Q2 FY18…

10 * GST Adjusted Growth The value growth from Q2 FY18 to Q1 FY19 refers to GST adjusted growth

…with broad-based growth…

	Category	KeyBrands	RevenueContribution(FY18)	FY18Growth	H1 FY19Growth
	HealthSupplements		17%	9.4%	18.6%
Healthcare(32%)	Digestives		6%	10.2%	16.1%
	OTC&Ethicals		9%	3.8%	11.7%
	Hair Care		21%	4.1%	18.0%
HPC	Oral Care		17%	14.4%	10.0%
(50%)	Home Care		7%	13.0%	13.7%
	SkinCare		5%	11.0%	19.2%
Foods(18%)	Foods		18%	0.7%	14.3%

…and market leadership in most categories

Leading position in key categories across verticals

#Relative Competitive Position 1

Healthcare Home and Personal Care Foods

Drivers of growth – Project Buniyaad 1

Urban Strategy

Leveraging potential through Channel based approach

Rural Strategy

Split the front line teams into two to increase reach and frequency – Showing significant positive gains

Portfolio Focus

Leveraging split teams for focused portfolio building

Enabling Technology

Using technology to track and improve performance and automate processes

New Avenues of Growth

Leveraging the alternate channels of MT and E-comm to grow at a rapid pace

Continue Engagement

Using initiatives and technology to build and continuously motivate the trade and front line teams

Project Buniyaad achieved its direct reach target of 1 mn outlets and also led to doubling of rural sales people to ~1,400

Direct Reach – No. of Outlets

Drivers of growth – 2 Channel Changes

Superstockist, MT and E-comm gaining saliency; Wholesale and Enterprise continues to shrink

Recent Product Launches

Agenda

• 1. Dabur Overview
• 1. Business Structure
• 1. India Business

4. International Business

• 1. The way forward
• 1. Annexure

International Business – Financial Profile

Sales (INR bn)

• International Business comprises the Organic and Acquired business
• Organic business (67% of international) is an extension of Indian portfolio with the same personal care brands operating internationally
• Acquired business (32% of international) comprises Hobi and Namaste
• FY17 and FY18 were impacted due to geopolitical headwinds and severe currency devaluation in our key markets

Region-wise Sales (FY18) Performance of Key Markets (H1 FY19)

Constant Currency Growth Rate – H1 FY19

Organic International Business

Organic International Business has evolved from being just a Hair Oil business to a diversified personal care entity

Agenda

• 1. Dabur Overview
• 1. Business Structure
• 1. India Business
• 1. International Business

5. The way forward

1. Annexure

Key Elements

(a) Focus on Core and Scalable Brands

(b) Creating Competitive Leverage

Superiority over mineral oils

Superiority over other Almond HO

2x stronger hair vs Other Amla HO

(d) Driving NPDs

Cost Optimisation and Improving Service Levels

4

Agenda

• 1. Dabur Overview
• 1. Business Structure
• 1. India Business
• 1. International Business
• 1. The way forward

6. Annexure

Consolidated Profit & Loss

	Q2 FY19	Q2 FY18	Y-o-Y (%)	H1 FY19	H1 FY18	Y-o-Y (%)
Revenue from operations	2,125.0	1,958.9	8.5%	4,205.7	3,749.0	12.2%
Other Income	81.2	84.3	(3.7%)	154.9	165.6	(6.5%)
Total Income	2,206.2	2,043.2	8.0%	4,360.5	3,914.6	11.4%
Material Cost	1,075.8	977.1	10.1%	2,124.4	1,891.7	12.3%
of%Revenue	506%	499%		50.5%	50.5%
Employee expense	234.3	203.7	15.0%	458.4	407.2	12.6%
%ofRevenue	11.0%	10.4%		109%	109%
Advertisement and publicity	133.5	145.7	(8.4%)	332.5	295.7	12.4%
of%Revenue	63%	7.4%		7.9%	7.9%
Other Expenses	230.5	212.5	8.5%	453.4	425.6	6.5%
%ofRevenue	108%	108%		108%	11.4%
Operating Profit	450.8	419.9	7.4%	836.9	728.8	14.8%
%ofRevenue	21.2%	21.4%		19.9%	19.4%
EBITDA	532.1	504.2	5.5%	991.8	894.4	10.9%
of%Revenue	25.0%	25.7%		23.6%	23.9%
Finance Costs	15.6	13.3	16.8%	30.4	26.6	14.4%
Depreciation & Amortization	43.1	40.1	7.5%	85.8	79.1	8.5%
Profit before exceptional items, tax andshare of profit/(loss) from joint venture	473.4	450.8	5.0%	875.5	788.6	11.0%
%ofRevenue	223%	230%		208%	210%
Share of profit / (loss) of joint venture	0.3	(0.2)	n.m.	0.5	0.3	n.m.
Exceptional item(s)	0.0	0.0	n.a.	0.0	14.5	(100.0%)
Tax Expenses	96.1	87.9	9.3%	168.5	146.8	14.7%
Net profit after tax and after share ofprofit/(loss) from joint venture	377.6	362.7	4.1%	707.5	627.5	12.8%
%ofRevenue	17.8%	18.5%		168%	16.7%
Non controlling interest	0.9	0.7	25.2%	1.7	1.5	16.4%
Net profit for the period/year	376.6	361.9	4.1%	705.8	626.1	12.7%
%ofRevenue	17.7%	18.5%		16.8%	16.7%

Standalone Profit & Loss

	Q2 FY19	Q2 FY18	Y-o-Y (%)	H1 FY19	H1 FY18	Y-o-Y (%)
Revenue from operations	1,537.2	1,416.4	8.5%	3,010.3	2,650.1	13.6%
Other Income	75.7	76.2	(0.7%)	144.3	151.8	(4.9%)
Total Income	1,612.9	1,492.6	8.1%	3,154.6	2,801.9	12.6%
Material Cost	790.7	737.8	7.2%	1,573.1	1,411.3	11.5%
%ofRevenue	51.4%	52.1%		523%	533%
Employee expense	143.3	117.3	22.2%	281.3	236.5	18.9%
%ofRevenue	93%	83%		93%	89%
Advertisement and publicity	111.2	114.7	(3.0%)	266.9	233.4	14.3%
of%Revenue	7.2%	8.1%		89%	88%
Other Expenses	140.5	127.8	10.0%	281.1	260.5	7.9%
%ofRevenue	9.1%	90%		93%	98%
Operating Profit	351.5	318.8	10.3%	608.0	508.4	19.6%
%ofRevenue	22.9%	22.5%		20.2%	19.2%
EBITDA	427.2	395.0	8.1%	752.3	660.2	13.9%
of%Revenue	27.8%	27.9%		25.0%	24.9%
Finance Costs	8.1	5.0	62.3%	13.9	10.8	29.6%
Depreciation & Amortization	26.2	25.5	2.6%	52.2	50.0	4.4%
Profit before exceptional items, tax andshare of profit/(loss) from joint venture	392.9	364.5	7.8%	686.1	599.4	14.5%
of%Revenue	256%	25.7%		228%	226%
Exceptional item(s)	0.0	0.0	n.a.	0.0	14.5	(100.0%)
Tax Expenses	85.7	81.1	5.6%	148.3	131.9	12.4%
Net profit for the period/year	307.3	283.4	8.4%	537.8	453.0	18.7%
%ofRevenue	20.0%	20.0%		17.9%	17.1%

Consolidated Balance Sheet

	Particulars	As at30/09/2018(Unaudited)	As at31/03/2018(Audited)
A	Assets
1	Non-current assets
	(a)Property, plant and equipment	1,552	1,552
	(b)Capital work-in-progress	39	42
	(c)Investment property	54	54
	(d)Goodwill	411	412
	(e)Other Intangible assets	35	10
	(f)Financial assets
	(i)Investments	3,042	3,092
	(ii)Loans	15	13
	(iii)Others	7	4
	(g)Non-current tax assets (net)	3	3
	(h)Other non-current assets	79	80
	Total Non-current assets	5,237	5,262
2	Current assets
	(a)Inventories	1,282	1,256
	(b)Financial assets
	(i)Investments	271	713
	(ii)Trade receivables	772	706
	(iii)Cash and cash equivalents	96	154
	Bank Balances other than (iii)(iv)above	96	152
	(v)Loans	8	35
	(vi)Others	3	28
	(c)Current tax asset(net)	2	2
	(d)Other current assets	373	391
	(e)Assets held for sale	2	2
	Total current assets	2,906	3,440

Particulars	As at30/09/2018(Unaudited)	As at31/03/2018(Audited)
BEquity and Liabilities
1Equity
(a)Equity share capital	177	176
(b)Other Equity	4,956	5,530
Equity attributable to shareholders of theCompany	5,133	5,707
Non Controlling Interest	31	27
Total equity	5,163	5,733
2Non-current liabilities
(a)Financial liabilities
(i)Borrowings	42	364
(ii)Other financial liabilities	4	4
(b)Provisions	58	57
(c)Deferred tax liabilities (Net)	99	109
Total Non-current liabilities	203	534
3Current liabilities
(a)Financial liabilities
(i)Borrowings	671	464
(ii)Trade payables	1,343	1,410
(iii)Other financial liabilities	349	238
(b)Other current liabilities	223	173
(c)Provisions	139	107
(d)Current tax Liabilities (Net)	50	41
Total Current liabilities	2,776	2,434
Total Equity and Liabilities	8,143	8,702

Standalone Balance Sheet

	Particulars	As at30/09/2018(Unaudited)	As at31/03/2018(Audited)
AAssets
1	Non-current assets
(a)	Property, plant and equipment	951	971
(b)	Capital work-in-progress	31	27
(c)	Investment property	50	50
(d)	Other Intangible assets	16	9
(e)	Financial assets
	(i)Investments	2,620	2,720
	(ii)Loans	10	10
	(iii)Others	7	4
(f)	Non-current tax assets (net)	3	3
(g)	Other non-current assets	59	60
	Total Non-current assets	3,747	3,854
2	Current assets
(a)	Inventories	739	705
(b)	Financial assets
	(i)Investments	269	713
	(ii)Trade receivables	313	321
	(iii)Cash and cash equivalents	13	78
	Bank Balances other than (iii)(iv)above	10	9
	(v)Loans	1	1
	(vi)Others	8	4
(c)	Other current assets	111	127
	Total current assets	1,465	1,959

		Particulars	As at30/09/2018(Unaudited)	As at31/03/2018(Audited)
B		Equity and Liabilities
1	Equity
	(a)	Equity share capital	177	176
	(b)	Other Equity	3,262	4,051
		Total equity	3,438	4,227
2		Non-current liabilities
	(a)	Financial liabilities
		(i)Borrowings	26	201
		(ii)Other financial liabilities	4	4
	(b)	Provisions	52	50
	(c)	Deferred tax liabilities (Net)	84	96
		Total Non-current liabilities	167	351
3		Current liabilities
	(a)	Financial liabilities
		(i)Borrowings	251	85
		(ii)Trade payables	955	961
		(iii)Other financial liabilities	242	82
	(b)	Other current liabilities	58	38
	(c)	Provisions	89	64
	(d)	Current tax Liabilities (Net)	11	4
		Total Current liabilities	1,607	1,234
		Total Equity and Liabilities	5,212	5,813

For more information & updates, Contact: Gagan Ahluwalia (gagan.ahluwalia@mail.dabur)

Ankit Joshi (ankit.joshi@mail.dabur)