Emami Ltd — Investor Presentation 2021

Oct 29, 2021

emami limited

Date: 29th October 2021

The Secretary The National Stock Exchange of India Ltd. Exchange Plaza, Plot No. C/1, G. Block Bandra Kurla Complex, Bandra (B) Mumbai - 400 051 Mumbai - 400 001

The Secretary BSE Limited Phiroze Jeejecbhoy Towers Dalal Street

Dear Sirs,

Pursuant to Provision of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith copy of Presentation on Company's Performance update for the quarter ended 30th September, 2020.

The aforesaid information is also is also disclosed on the website of the company www.emamiltd.in

This is for your information and records.

Thanking you,

Yours faithfully, For Emami Limited

A.K.Joshi Company Secretary & VP- Legal

(Encl.: As above)

29th October 2021

Revenue Growth

	Key Financials	Growth	in Q2FY22	Growth in H1FY22	Q2FY22 Revenue Split
		Over PY	2 yr CAGR	Over PY	Institutional 3%
•	Domestic Business	9%	11%	22%
•	International Business	-6%	2%	3%	International 15%
•	Institutional Business	29%	12%	31%
	Consolidated Net Sales	7%	10%	19%	Domestic 82%
•	Other Operating Income	43%	-6%	8%
	Total Revenues	7%	9%	19%

• ▹ 7% Consolidated revenue growth in Q2FY22 on a higher base of 11% growth in Q2FY21
• ▹ 6.2% volume growth in Domestic including Institutional Business;

Pain Management Range

• ▹ Sales grew by 6% in Q2; 2 year CAGR of 18%
• ▸ 29% growth in H1FY22
• ▹ Launched TV & Print campaign – "Chale Chalo" with celebrity Sonu Sood for Zandu Balm
• ▸ Also started Digital campaign with Sonu Sood recognizing Real Life Heroes
• ▹ Launched TV, Print & Digital campaign with world renowned wrestler "Khalli" establishing Zandu Balm Ultra Power as "Kadak Balm" (Strong Balm)

BoroPlus Range

• ▹ Sales grew by 29% in Q2; 22% growth in H1
• ▹ Launched light and non-sticky BoroPlus SOFT Ayurvedic Antiseptic Cream in Sep'21
• ▹ Launched a new 360° communication for BoroPlus lotions highlighting Soft, Glowing #HuggableSkin for 24 hours.
• ▹ Vasocare brought under BoroPlus umbrella. Repositioned as "BoroPlus Vasocare Herbal Petroleum Jelly" to attract Petroleum Jelly users.
• ▹ Launched TVC and print campaign for BoroPlus Antiseptic Moisturizing Handwash with Ayushmann Khurrana.

Kesh King Range

• ▹ Sales grew by 15% in Q2; 2 year CAGR of 29%
• ▸ 28% growth in H1FY22
• ▹ Building Kesh King Onion Range in e-commerce and Modern Trade.
• ▸ Promoter Activity done in cash & carry stores in Modern Trade

Male Grooming Range

• ▹ Sales grew by 15% in Q2; 38% growth in H1FY22
• ▹ Launched HE Active series Deodorants with core claim – "bacteria gone, odour gone" in Jul'21.
• ▸ Ranked #1 in Hot new releases under Deodorants category on Amazon

Navratna Range

• ▹ Sales declined by 9% in Q2; 2 year CAGR of 2%
• ▸ 8% growth in H1FY22
• ▹ Launched Garmi campaign in 6 major cities of UP with customized creatives for each city
• ▹ Conducted BTL drives to drive consumer awareness in H1 –
• ▸ Van activations in rural regions,
• ▸ Salon activities across 5800 salons,
• ▸ 1500 dealer boards
• ▸ Railway time table branding across 7 stations in Bihar
• ▸ Activations at 4 Fairs/ festivals
• ▹ Launched national campaigns targeting students and southern markets
• ▹ Engaged influencers for Navratna Maxx Cool Talc on Instagram.

Healthcare Range

• ▹ Sales grew by 5% in Q2; 2 year CAGR of 26%
• ▸ 25% growth in H1FY22
• ▹ Relevance of Immunity has gone down as vaccination picking up
• ▸ Launched Immune India offer (Rs. 100 off) on Zandu Chyavanprash Jaggery & Chyavanprasad during Sep'21
• ▸ Launched Zandu Chyawan Chews on Amazon & Zanducare in Sep'21
• ▹ Launched 3 tab LUP of Zandu Nityam Tablet priced at Rs. 10/-
• ▸ Focus on trial generation through small outlets and increased penetration through sub-stockist and retail network

International Business Performance

• ▹ Sales declined by 6% in Q2; 2 year CAGR of 2%
• ▹ Sales declined in Q2 due to the impact of the 2nd wave of Covid-19 as well as high base of personal hygiene sales in the previous year.
• ▹ H1FY22 sales grew by 3%

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

10

Ad Campaigns

2.11
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BECAVE EMP text of the of

Digital Campaigns

11

BTL Activities

BTL Activities

Q2FY22 Profitability (Consolidated)

Q2FY22	in crore ₹	Growth over Q2FY21	2 year CAGR	Q2FY22 Margins	Margin Growth over Q2FY21	Margin Growth over Q2FY20
Revenues	789	7%	9%
Gross Profit	542	5%	9%	68.8%	-150 bps	-90 bps
EBIDTA	277	8%	20%	35.1%	+10 bps	+590 bps
PAT	185	56%	39%	23.5%	+740 bps	+900 bps
Cash Profit	269	15%	23%	34.1%	+240 bps	+720 bps

• ▹ Record profits and margins despite input cost pressure
• ▹ Board of Directors declare Interim Dividend at 400% i.e. Rs. 4/- per equity share

Q2FY22 Financial Analysis

H1FY22 Financial Analysis

482

Q2FY22 Summarized Financials

₹ in Millions

Particulars	Q2FY22	%	Q2FY21	%	Growth	FY21	%
Net Sales	7,788.2	98.7%	7,277.9	99.0%	7.0%	28,542.6	99.1%
Other Operating Income	100.2	1.3%	70.3	1.0%	42.5%	262.7	0.9%
Revenue from Operations	7,888.4	100.0%	7,348.2	100.0%	7.4%	28,805.3	100.0%
Materials Cost	2,463.8	31.2%	2,184.8	29.7%	12.8%	9,292.3	32.3%
A&P	1,053.2	13.4%	1,080.8	14.7%	-2.6%	4,581.3	15.9%
Staff Cost	820.7	10.4%	783.8	10.7%	4.7%	3,091.7	10.7%
Admn & Other Exp	778.9	9.9%	727.9	9.9%	7.0%	3,009.4	10.4%
EBIDTA	2,771.8	35.1%	2,570.9	35.0%	7.8%	8,830.6	30.7%
Other Income	376.1	4.8%	78.9	1.1%	376.7%	702.7	2.4%
Interest	7.8	0.1%	24.8	0.3%	-68.5%	132.7	0.5%
Amortisation of acquired TM's/ brands	602.7	7.6%	932.2	12.7%	-35.3%	2,678.5	9.3%
Depreciation/Amortisation of other assets	236.1	3.0%	216.1	2.9%	9.3%	991.0	3.4%
PBT	2,301.3	29.2%	1,476.7	20.1%	55.8%	5,624.3	19.5%
Tax	410.4	5.2%	284.0	3.9%	44.5%	1,142.1	4.0%
PAT	1,890.9	24.0%	1,192.7	16.2%	58.5%	4,482.2	15.6%
Share of Minority Interest & P/L of Associate	(38.4)	-0.5%	(8.5)	-0.1%	351.8%	64.9	0.2%
PAT After Minority Interest & Associate	1,852.5	23.5%	1,184.2	16.1%	56.4%	4,547.1	15.8%
Cash Profit (PAT + Dep. & Amortization)	2,691.3	34.1%	2,332.5	31.7%	15.4%	8,216.6	28.5%

H1FY22 Summarized Financials

₹ in Millions

Particulars	H1FY22	%	H1FY21	%	Growth	FY21	%
Net Sales	14,330.6	98.8%	12,006.1	98.7%	19.4%	28,542.6	99.1%
Other Operating Income	167.3	1.2%	155.5	1.3%	7.6%	262.7	0.9%
Revenue from Operations	14,497.9	100.0%	12,161.6	100.0%	19.2%	28,805.3	100.0%
Materials Cost	4,710.0	32.5%	3,798.2	31.2%	24.0%	9,292.3	32.3%
A&P	2,151.8	14.8%	1,677.9	13.8%	28.2%	4,581.3	15.9%
Staff Cost	1,665.7	11.5%	1,565.1	12.9%	6.4%	3,091.7	10.7%
Admn & Other Exp	1,501.5	10.4%	1,319.7	10.9%	13.8%	3,009.4	10.4%
EBIDTA	4,468.9	30.8%	3,800.7	31.3%	17.6%	8,830.6	30.7%
Other Income	483.3	3.3%	145.9	1.2%	231.3%	702.7	2.4%
Interest	14.2	0.1%	71.8	0.6%	-80.2%	132.7	0.5%
Amortisation of acquired TM's/ brands	1,198.8	8.3%	1,486.5	12.2%	-19.4%	2,678.5	9.3%
Depreciation/Amortisation of other assets	470.0	3.2%	409.7	3.4%	14.7%	991.0	3.4%
PBT	3,269.2	22.5%	1,978.6	16.3%	65.2%	5,624.3	19.5%
Tax	585.2	4.0%	378.8	3.1%	54.5%	1,142.1	4.0%
PAT	2,684.0	18.5%	1,599.8	13.2%	67.8%	4,482.2	15.6%
Share of Minority Interest & P/L of Associate	(53.6)	-0.4%	(19.6)	-0.2%	173.5%	64.9	0.2%
PAT After Minority Interest & Associate	2,630.4	18.1%	1,580.2	13.0%	66.5%	4,547.1	15.8%
Cash Profit (PAT + Dep. & Amortization)	4,299.2	29.7%	3,476.4	28.6%	23.7%	8,216.6	28.5%

Summarized Balance Sheet

₹ in Millions

Sl.	Liabilities Equity &	As at 30.09.2021	As at 31.03.2021	Sl.	Assets	As at 30.09.2021	As at 31.03.2021
		Unaudited	Audited			Unaudited	Audited
	EQUITY			1	Non -Current Assets
(a)	Share capital Equity	445	445	(a)	Plant and Equipment Property,	6,850	7,143
(b)	Other Equity	20,154	17,182	(b)	Capital work-in-progress	97	58
	Total attributable to owners of the Equity Parent	20,598	17,627	(c)	Investment Property	535	530
(c)	Non-Controlling Interest	- 9	- 9	(d)	Other Intangible Assets	2,336	3,534
	Total Equity	20,589	17,618	(e)	Right of Use Assets	91	111
				(f)	Intangible assets under development	14	6
				(g)	Financial Assets
	LIABILITIES				(i) Investments
1	Non-Current Liabilities				a) Investment in Associates	656	176
(a)	Financial Liabilities				b) Others	1,985	1,488
	(i) Lease Liabilities	36	42		(ii) Loans	42	57
	(i) Other Financial Liabilities	67	67		(iii) Other Financial Assets	624	672
(b)	Provisions	268	230	(h)	(net) Deferred Tax Assets	-	-
(c)	Deferred Liabilities (Net) Tax	3	42	(i)	(Net) Non-Current Tax Assets	1	4
(d)	Other Liabilities Non-Current	188	197	(j)	Other Non-Current Assets	89	149
		563	578			13,320	13,929
2	liabilities Current			2	Current assets
(a)	Financial Liabilities			(a)	Inventories	3,256	3,005
	(i) Borrowings	1,209	919	(b)	Financial Assets
	(ii) Liabilities Lease	33	46		(i) Investments	2,970	889
	(ii) Trade Payables				(ii) Trade Receivables	2,945	2,318
	Total oustanding dues of Small Micro & Enterprises	108	121		(iii) Cash Cash Equivalents &	329	198
	Total oustanding dues of creditors Other than Micro	Small & Enterprises 3,172	3,385		(iv) Bank Balances other than (iii) above	3,730	3,406
	(iii) Other Financial Liabilities	591	563		(v) Loans	22	30
(b)	Other Liabilities Current	196	301		(vi) Other Financial Assets	660	363
(c)	Provisions	1,526	1,429	(c)	(Net) Current Tax Assets	-	-
(d)	(Net) Current Tax Liabilities	365	237	(d)	Other Current Assets	1,119	1,060
		7,199	7,002			15,031	11,268
	Total Equity and Liabilities	28,351	25,197		Total Assets	28,351	25,197

Net Cash Surplus of over ₹ 500 crore

Thank You