Emami Ltd — Earnings Release 2018

Oct 30, 2018

cmami limited

The Secretary The National Stock Exchange of India Ltd. Exchange Plaza, Plot No. Cl1, G. Block Bandra Kurla Complex, Bandra (E) Mumbai - 400051

The Secretary The Calcutta Stock Exchange Limited 7, Lyons Range Kolkata -700 001

Date: 30th October, 2018

The Secretary BSELimited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001

Dear Sir,

Sub: Press release

Enclosed please find the Press Release issued in relation to Unaudited Financial Results of the Company for the Second Quarter and Half year ended 30th September 2018.

This is for your information and record.

Thanking YClU,

Yours faithfully, For Emami Limited

A.K. Ioshi Company Secretary & VP- Legal (Encl.: As above)

1Z017-18

Turnover: '{ 2,541 er cash Profit: '{ 618 er

One of the fastest growing MC panies in India ith % CAG~Rin"topline r t st 10 years

Power Brands- BoroPlus, Navratna, Zandu Balm, Fair and Handsome and Kesh King "are mark€!t leade'fs in .Indi,(in their respective categories

Brand Ambassadors over the years - Amitabh Bachchan, Pt Birju Maharaj,Shah Rukh ,··Khan, Hrithik Roshan, Shahld kapoo~: Madhuri Dixit, Kareena Kapoor Khan, Yami Gautam, Kangana Ranaut, Shilpa shettv, sonakshi Sinha, Shruti Haasan, Juhi Chawl a, Vidyut Jamwal, Kartik Aryaan, Milkha Singh, sachin Tendulkar, Surva, Jr. NTR, Sania Mirza, Saina Nehwal, Bipasha Basu among others

.

Covers more than 9.1 lac direct retail outlets across India through -3,150 distributors

Listed among the "~ost Valuable Companies" by BT 500

Listed among the SUPER 50 by Forbes India in 2015 & 2016

"Received MODI-Making of Developed India" Award for "Excellence in Global Reach - Company of the Year" category in 2018.

Rated (by CARE& CRISIL)Al+ (highest rating) for shortterm borrowings, signifying highest safety; and AA+ for long- term borrowings.

EMAMI'S TOPLlNE & EBIDTA GROWS BY 9% & 11% IN H1FY19

HIFY19 HIGHLIGHTS

.---------------------------------------------, I I

I I I .:. Revenues at ^~ 1,242 crore grew by 9% on ^a Like to Like basis. I I I

I I : .:. Domestic Revenues grew by 9% on a Like to Like basis. : i I

I I : .:. EBIDTA at ~ 313 crore grew by 11% : I I

I I : .:. Cash Profits** at ~ 275 crore grew by 10%. : I I

I ^t : **Cash Profit = PAT + Depreciation & Amortization : IL ~i

Kolkata, October 30th 2018: The Board of Directors of Emami Limited met on Tuesday, 30th October 2018 to consider the unaudited financial results of the company for the quarter and half year ended 30th September 2018.

The first and second quarter of previous year were impacted due to destocking and restocking on account of GST implementation. Half yearly performance is therefore a better indicator as it neutralizes the impact of both destocking and restocking in the base year.

The company closed the half year with a revenue of ~ 1,242 cr with a like to like growth of 9%. Despite continued challenges like erratic monsoons, transport strike and CSD channel disruption, Domestic business grew by 9% with major brands like Navratna, Healthcare range, Male Grooming range, Pain Management Range and 7 Oils in One performing well in H1FY19. Market share gains continued for key brands.

Company's gross margins at 67.4% grew by 30 bps, despite increasing prices of material costs. EBIDTA grew by 11% and Cash Profit grew by 10%. EBIDTA margins at 25.2% grew by 110 bps and Cash Profit margins at 22.1% grew by 70 bps.

Mr Mohan Goenka, Director, Emami Limited said: IJOur growth in the first half of FY19 has been modest. Rising input cost of key raw materials has been a challenge. Wholesale recovery has been moderate and is expected to pickupfurther. ~

One of the fastest growing FMCG companies in India with a 17% CAGR in topline for the past 10 years

Brand Ambassadors over the years - Amitabh Bachchan, Pt Birju Maharaj, Shah Rukh Khan, Hrithik Roshan, Shahid Kapoor, Madhuri Dixit, Kareena Kapoor Khan, Yami Gautam, Kangana Ranaut, Shilpa Shetty, Sonakshi Sinha, Shruti Haasan, Juhi Chawla, Jamwal, Kartik Aryaan, Milkha Sing~, Sachin Tendulkar, Surya, Jr. NTR, Sania Mirza, Saina Nehwal, Bipasha Basu among others

Covers more than 9.1 lac. direct retail outlets across India through -3,150 distributors

Listed among the "Most Valuable Companies" by BT 500

Listed among the SUPER 50 by Forbes India in 2015 & 2016

"Received MODI-Making of Developed India" Award for "Excellence in Global Reach - Company of the Year" category in 2018.

Rated (by CARE& CRISIL)A1+ (highest rating) for shortterm borrowings, signifying highest safety; and AA+ for long- term borrowings.

While Modern Trade performance has been good, rural too is picking up. With erratic monsoon and winter being slightly delayed, offtakes were affected. However, our outlook is positive and we expect to close FY19in double digits."

Mr Harsha V Agarwal, Director, Emami limited said: "Our male grooming range has performed well during the quarter. Younger brands and brand extensions like Fairand Handsome FaceWash, HE Deo and 7 Oils-in-One have contributed significantly during this period. We are very positive on the prospects of Kesh King post its recent rejuvenation. All our Power Brands have continued to gain market shares.

During the period, the Company has increased its direct reach to 9.15 lac outlets, increasing the reach by ~65000 outlets."

MARKETING:

During the quarter, the company relaunched Kesh King in new premium look with comb applicator for targeted oil application. Kesh King has also been certified by National Institute of Ayurveda for being 2x more effective than other Ayurvedic Oils and also proven to grow new hair.

About Emami ltd

Emami: (NSE: EMAMILTD, BSE: 531162) Emami Ltd, founded in 1974, is one of India's leading FMCG Companies engaged in manufacturing & marketing of personal care & healthcare products. It is the flagship company of the diversified Emami Group.

With over 300 diverse products, Emami's portfolio includes trusted power brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm & Mentho Plus. In 2015, the Company acquired the business of 'Kesh King' and forayed into the Ayurvedic hair & scalp care segment. Emami products are available in over 4.3 million retail outlets across India through its network of 3100+ distributors and its global footprint spans over 60 countries including GCC,Europe, Africa, ClS countries & the SAARC.

Emami has maintained a 17% CAGR in topline for the past 10 years through its consistent business performance. Emami is well known for its aggressive marketing powered by celebrity endorsements like Amitabh Bachchan, Shah Rukh Khan, Hrithik Roshan, Shahid Kapoor, Madhuri Dixit, Kareena Kapoor Khan, Kangana Ranaut, Yami Gautam, Juhi Chawla, Shruti Haasan, Shilpa Shetty, Bipasha Basu, Sonakshi Sinha, Parineeti Chopra, Tapsee Pannu, Pt.Birju Maharaj, Milkha Singh, Mahendra Singh Dhoni, Sourav Ganguly, Mary Kern, Saina Nehwal, Sushi I Kumar, Sania Mirza etc over the years.

With a market cap of around Rs. 19,000 er, Emami Ltd is the flagship Company ofthe diversified Emami Group.

Pleasevisit www.emamltd.in for further information.

Forfurther information, please contact:

Mahasweta Sen I Head -Corporate Communications Email: mahasweta.sen@emamigroup.com Handphone: +919836292392