Emami Ltd — Investor Presentation 2020

Aug 18, 2020

cmami limited

To,

The Secretary,

The National Stock Exchange of India Ltd. Exchange Plaza, Plot No. C/1, G. Block Bandra Kurla Complex, Bandra (E) Mumbai - 400 051

The Secretary,

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

The Secretary, BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001

17th August, 2020

Dear Sirs,

Intimation of Schedule of Investor Conference

Pursuant to Regulation ³⁰ of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to inform you that the Senior Management of the Company will be participating in the following investor e-conferences, the name of the host and dates are mentioned hereunder:

• Edelweiss India on 18th August, 2020
• Kotak Consumer on 19th August, 2020
• MOSL 16th Annual Global Investor on 2nd September, 2020

The presentation on the Company's Overview to be discussed at the conferences is attached.

This is for your information and record.

Thanking You, Yours faithfully, For Emami Limited,

.Jr( Ashok Purohit

Assistant Company Secretary

Company Overview

August 2020

Some of the statements made in this presentation may look forward looking information that involves number of risks and uncertainties. Such statements are based on certain assumptions, estimates, projections or plans that are inherently subject to significant risks, uncertainties and contingencies that are subject to change. Actual results can differ materially from those anticipated in the Company's forward‐looking statements as a result of a variety of factors, including those set forth from time to time in the Company´s press releases and reports and those set forth from time to time in the Company's analyst calls and discussions. We do not assume any obligation to update the forward‐looking 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.

Previous years' financials re-casted as per Ind-AS.

All market shares mentioned in this presentation are as per AC Nielsen MAT Dec'19 in volume terms. Conversion rate : 1 US\$ = ₹ 75.36/- (As on 31st March 2020)

Company Overview

Key Facts

Business Highlights

• One of the fastest growing personal and healthcare businesses in India-
• Revenues growing at a 10 year CAGR of 10%.
• EBIDTA growing at a 10 year CAGR of 11%.
• Cash Profits growing at a 10 year CAGR of 13%.
• Superior gross margins in the industry EBITDA margin before A&P at 43.8%
• Production from tax free zones.
• Keen on opportunities for acquisitions in India and in International focused Markets.
• Building best-in-class IT system coming up from a tactical IT capability blueprint.
• Building capabilities by roping in best talents from the FMCG industry to catalyse growth.

The Journey

Ownership Structure

As on 7th August 2020

8

Board of Directors

Promoter Directors

Non Executive Director

Ms. Priti A Sureka Whole Time Director Mr. Prashant Goenka Whole Time Director

Independent Directors

Ex-Country Head of E&Y, India Eminent Tax expert & Advocate

Ms.Rama Bijapurkar Eminent consumer & marketing strategist

Mr. P.K. Khaitan Advocate & Sr. Partner Khaitan & Co

Mr. A.K. Deb Ex-Chief Secretary, Govt. of West Bengal

Mr. S.B. Ganguly

Professional Mr. C.K. Dhanuka

Industrialist

Mr. Debabrata Sarkar Banker

Mr. R.S. Goenka Whole Time Director Mr. S.K Goenka Managing Director Mr. Mohan Goenka Whole Time Director Mr. A.V. Agarwal

Mr. H.V. Agarwal Whole Time Director

Returns to Investors

As on 14th August 2020

Brand Overview

Snapshot of Major Brands

₹ 700 cr +

Therapeutic Cooling Oils & Cool Talc

Ayurvedic Hair and Pain Balm Scalp care

~₹ 450 cr

Antiseptic Creams, Body Lotion, Prickly Heat Power & Hygiene Range

Fairness Cream and Facewash for Men

₹ 150 cr +

₹ 200 cr + ~ ₹ 100 cr

Light Hair Oil

Other Brands -

Deodorants & Perfumes Crème Hair Colour

08 Sample text

Herbal Petroleum Jelly

Ayurvedic Pain Relief Ointment

Snapshot of Major Brands

Brands	Segment	Market Size (₹ in bn.)	Market Size (\$ in mn.)	Market Share (%)*
Navratna Oil	Cooling oil	10.3	136.1	66%
Zandu & Mentho Plus Balms	Balms	12.6	167.5	55%
BoroPlus Antiseptic Cream	Antiseptic Cream	6.5	85.6	74%
Fair and Handsome Fairness Cream	Men's Fairness Cream	4.0	53.2	65%
Kesh King Oil	Ayurvedic Hair and Scalp Oil	9.9	131.5	27%
Navratna Cool Talc^	Cool Talc	7.6	101.1	26%
Fair and Handsome Facewash	Men's Facewash	4.0	53.3	12%

*AC Nielsen, MAT December 2019 ^AC Nielsen, MAT September 2019 12

Navratna

Penetration levels	15% (Cool Oils)
Endorsed by	Salman Khan, Varun Dhawan Jr. NTR
Most Trusted Brand	Ranked among India's 100 most trusted brands by Economic Times Brand Equity Survey, 2019

• Navratna Cool Oil - India's No. 1 Therapeutic Cool Oil
• Navratna Extra Thanda Cool Oil - With extra cooling effect those consumers who prefer to have a stronger experience.
• Navratna Garam Tel– a one of its kind warm oil that provides warmth on application enriched with 9 ayurvedic ingredients.
• Navratna Cool Talc– Talc with cooling properties.
• Navratna Maxx Cool Talc– the only cooling talcum powder in India with sweat activated cooling technology. Its unique cooling action releases cooling immediately when one sweats

BoroPlus

Penetration levels	24% (Antiseptic Cream)
Endorsed by	Amitabh Bachchan, Kangana Ranaut
Most Trusted Brand	Ranked among India's 100 most trusted brands by Economic Times Brand Equity Survey, 2019

Brand Snapshot Product Portfolio

• BoroPlus Antiseptic Cream- Largest selling antiseptic cream not only in India but also in Ukraine, Russia and Nepal.
• BoroPlus Doodh Kesar Moisturizing Lotion- Effective solution for moisturizing 8 signs of dry skin.
• BoroPlus Prickly Heat Powder– Provides quick & long lasting relief from prickly heat.
• BoroPlus Aloe Vera Gel– Formulated with 100% organic Aloe Vera leaf extract which moisturizes & nourishes skin and hair..
• BoroPlus Hygiene range– Expert range, designed to kill 99.99% germs..

14

Pain Management Range

Penetration levels	37% (Balms)
Most Trusted Brand	Zandu, ranked among India's 100 most trusted brands by Economic Times Brand Equity Survey, 2019

• Zandu Balm- Largest selling balm in the world.
• Zandu Balm Ultra Power- Safe & effective remedy for severe pain and aches..
• Mentho Plus Pain Balm– Specialist pain reliever for headaches.
• Fast Relief– Provides instant & long lasting relief from the body aches with special ayurvedic active ingredients

Male Grooming Range

Penetrati	4% (Men's Fairness
on levels	Cream)
Endorsed by	Shah Rukh Khan, Kartik Aryan Vidyut Jamwal Tiger Shroff

• Fair and Handsome Cream- A category creator in the male grooming space in India.
• Fair and Handsome Laser 12 An advanced whitening and multi benefit cream.
• Fair and Handsome Complete Winter Solution– Unique 8 action formula which gives a well-moisturised, oil-free, fair look.
• Fair and Handsome Facewash– Specially designed for masculine skin with Acti-Fair Peptide, ensuring thorough cleansing.
• HE Deodorants– Includes 9 variants of Aerosol and No Gas Fragrances. Launched HE Magic Duo with 2 fragrances in 1 bottle.

Kesh King

Penetration levels	9% (Ayurvedic Medicinal Oil)
Relaunch	Relaunched Kesh King in new premium look with comb applicator for targeted oil application.
Profitability	Superior Gross & EBIDTA Margins
Endorsed by	Juhi Chawla Shilpa Shetty Sania Mirza

• Kesh King Ayurvedic Medicinal Oil- Proprietary medicinal preparation offering a complete solution for hair related problems especially hair fall. Certified to be 2x more effective than other Ayurvedic Oils and also proven to grow new hair.
• Kesh King Shampoo & Conditioner- Proven remedy for hair and scalp problems like hairfall, dandruff and dry hair.
• Kesh King Ayurvedic Capsules- Prepared using 6 selected herbs which help in protecting and nourishing the hair.

Healthcare Range

Leveraging the Indian Healthcare Opportunity Extending the goodness of Ayurveda in scientificallyproven effective products by providing long-term relief from various lifestyle-related problems Portfolio Portfolio includes OTC products, Generics and Ethicals Endorsed by Pancharishta and Nityam endorsed by Amitabh Bachchan

Brand Snapshot Major products

• Digestives & Laxatives- Zandu Pancharishtha, Zandu Nityam Churna & Tablets.
• Immunity & Lifestyle- Zandu Kesari Jivan, Zandu Sona Chandi Chyawanplus, Zandu Chyawanprash, Zandu Pure Honey.
• Men's Healthcare – Zandu Vigorex
• Launched Sugarfree variants of Zandu Kesari Jivan, Zandu Pancharishtha and Zandu Chyawanprash with focus on improving health of consumers.

Other Brands

• 7 Oils in One Launched in April 2014, it combines 7 different types of oils almond, coconut, Amla, argan, olive, walnut and jojoba offering an expert formulation for damage repair and give superior nourishment. Endorsed by Bollywood actress Yami Gautam.
• Diamond Shine Luxury Crème Hair Colour- Enriched with Diamond Serum and 11 Ayurvedic herbs, this ammonia free hair colour gives the hair amazing shine & superior softness and ensures the colour lasts twice as long. Endorsed by Bollywood actress Shilpa Shetty.
• Vasocare Herbal Petroleum Jelly - Restores the skin's natural glow by healing, protecting and revitalizing the skin and offers a pleasant usage experience with it's mild fragrance.
• Malai Kesar Cold Cream 5 Power Winter formula enriched with benefits of saffron and aloevera which nourishes, moisturises, protects and revitalizes the skin.

New Launches

BoroPlus Advanced Anti-Germ Hand Sanitizer

BoroPlus Antiseptic Moisturizing Soap

BoroPlus Aloe Vera Gel

Zandu Ayurvedic Hand Sanitizer

Zandu Ayush Kwath

Powder Zandu Single Herb Range

International Business Overview

International Presence

• SAARC South Asian Association for Regional Cooperation (Major countries – Bangladesh, Nepal, Sri Lanka etc.)
• SEA South East Asia (Major countries – Malaysia, Myanmar & Singapore)
• MENAP Middle East, North Africa & Pakistan (Major countries – UAE, Qatar, Oman, Kuwait, Bahrain etc.)
• CIS Commonwealth of Independent States (Major Countries – Russia, Ukraine etc.)

International Brand Portfolio

Leadership in International Markets

#1 Cooling Oil in Bangladesh, UAE and Saudi Arabia

#1 Antiseptic & Healing topical Cream in Russia

#1 Men's Fairness Cream in UAE #2 Men's Fairness Cream in Saudi Arabia & Bangladesh

International Business

MENAP	SAARC	CIS	AFRICA
• Targeting Arab consumers along with Indian diaspora with relevant products and increased media spends. • Increased marketing inputs with improved distribution.	• Having its own manufacturing unit in Bangladesh and a 3P unit in Sri Lanka. • Introducing brand extensions & New launches	• Launch of new products are on track to boost the sales. • Apart from Russia, increasing focus on Ukraine, Kazakhstan and Belarus.	• Huge potential and special focus given to grow the brands in the region, especially in Kenya, Uganda and Angola in existing markets. • Distributors identified, registrations under process in Nigeria.

Business Overview

26

Domestic Footprint

As on 31st March 2019

Domestic Distribution Network

Operations

Fiscal Benefits

3 units in Guwahati and 1 Uttaranchal enjoying fiscal benefits

Best in Class

Most of the facilities are cGMP and ISO 9000 compliant and follow highest standards of safety and environment protection

Overseas Unit

Overseas manufacturing facility at Bangladesh and 3P unit in Sri Lanka

New unit at Pacharia

Spread over 30 acres of land, this is Emami's largest unit with a total outlay of ₹ 300 crore

Key Recognitions

Abhoypur unit accredited with ISO 14001:2004 and ISO 18001:2007

accreditation

Received "Health & Safety awards" from Greentech & Arogya World in

the Gold Category

Abhoypur unit awarded Gold Award for excellence in manufacturing at the ET India Manufacturing Excellence Awards

Abhoypur Unit also received the Global Performance Excellence Award by Asia Pacific Quality Organisation

Operations

Pacharia Unit

Abhoypur Unit 300 UPM Fully Automatic Bottle Packing Line from CRONES at Pacharia

Research & Development

Research & Development

Sustained Investments in Research & Development

Awarded the "Golden Peacock Innovation Management Award" for the year 2016 in the FMCG Sector and "Golden Peacock Innovative Product/Service Award" for the year 2019 for "Kesh King Oil Applicator"

INR in Mns

A&P Spends

₹ in Mns % of Sales

Emami is a pioneer in engaging celebrities to endorse its brands. These comprise renowned names from India's film industry, sportspersons and performing artists.

Emami has more than 60 celebrities associated with its brands.

Every year, Emami invests ₹ 50-150 mn to engage new celebrities.

Bollywood icons like Amitabh Bachchan and Shah Rukh Khan have been endorsing Emami brands since more than a decade.

Emami was first to engage in 'infilm' advertising in the 1980's through the film 'Agar Tum Na Hote' starring the superstar Rajesh Khanna and Rekha

Growing Robustly

₹ in Millions

Revenues CAGR of 10% in last 10 years.

EBIDTA CAGR of 11% in last 10 years.

Cash Profit* CAGR of 13% in last 10 years

*Cash Profit = PAT + Depreciation & Amortization

Dividend History

*Payout (%) on Cash Profits

Summarized Balance Sheet

₹ in Millions

Sl.	ASSETS	As at 31.03.2020	As at 31.03.2019	Sl.	EQUITY AND LIABILITIES	As at 31.03.2020	As at 31.03.2019
1	Non -Current Assets				Equity
(a)	Property, Plant and Equipment	7,685	7,490	(a)	Equity Share capital	453	454
(b)	Capital work-in-progress	69	352	(b)	Other Equity	17,784	20,307
(c)	Investment Property	545	548		Total Equity attributable to owners of the Parent	18,238	20,761
(d)	Goodwill	-	41	(c)	Non-Controlling Interest	(9)	(2)
(e)	Other Intangible Assets	6,191	8,722		Total Equity	18,229	20,759
(f)	Right of Use Assets	172	-
(g)	Intangible assets under development	12	11
(h)	Financial Assets
	(i) Investments				LIABILITIES
	a) Investment in Associates	212	160	1	Non-Current Liabilities
	b) Others	669	1,631	(a)	Financial Liabilities
	(ii) Loans	117	143		(i) Other Financial Liabilities	154	69
	(iii) Other Financial Assets	394	291
(i)	Deferred Tax Assets (net)	0	38
(j)	Non-Current Tax Assets	135	126	(b)	Provisions	231	200
(k)	Other Non-Current Assets	253	178	(c)	Deferred tax liabilities (Net)	35	160
				(d)	Other Non-Current Liabilities	216	237
		16,452	19,730			636	666
2	Current assets
(a)	Inventories	2,447	2,217	2	Current liabilities
(b)	Financial Assets			(a)	Financial Liabilities
	(i) Investments	683	79		(i) Borrowings	2,102	1,099
	(ii) Trade Receivables	3,080	2,164		(ii) Trade Payables
					Total oustanding dues of Micro & Small
	(iii) Cash & Cash Equivalents	108	1,165		enterprise	230	30
					Total oustanding dues of creditors others than
	(iv) Bank Balances other than (iii) above	1,082	869		Micro & Small Enterprises	3,014	2,883
	(v) Loans	663	29		(iii) Other Financial Liabilities	520	1,326
	(vi) Other Financial Assets	785	498	(b)	Other Current Liabilities	486	245
				(c)	Provisions	1,455	1,153
(c)	Other Current Assets	1,484	1,473	(d)	Current Tax Liabilities (Net)	112	63
		10,333	8,493			7,920	6,800
	Total Assets	26,785	28,224		Total Equity and Liabilities	26,785	28,224

Key Sustainability Initiatives

CSR Initiatives

Major Awards & Rankings

Ratings & Accreditations

Key Investment Highlights

Niche category player + innovator – in Therapeutic and Ayurvedic segment

Production from tax free zones

Superior gross margins in the industry

Focus on each Brand with patience and continuous investment.

Strong entry barriers for the competition

Key brands are strong market leaders in their respective categories

ROE at 35.1% & ROCE at 31.4% on Cash Profits.

Thank you

Contact us

Emami Limited

Emami Tower 687, Anandapur, E.M. Bypass Kolkata, 700107, West Bengal, India Contact - +91-33-66136264 Fax - +91-33-66136600 Email- investors@emamigroup.com Website- www.emamiltd.in