Transcription of GODREJ CONSUMER PRODUCTS
1 1 GODREJ CONSUMER PRODUCTS INVESTOR PRESENTATION2leading marketsharein core categoriesIndia businesshair colourshousehold insecticidesliquid detergents1soap2excellent track record ofvalue creationamong FMCG companies in IndiaUS $ billionlargesthome grown HPC companyin sales in FY 15internationallystrong positionsin core categorieshome carehair careacquisitionsestablished a platform for a leadingemerging markets FMCG company47%revenues come from international businessesGODREJ CONSUMER PRODUCTS SNAPSHOT3 INTERNATIONAL BUSINESS IS CONTRIBUTING NEARLY HALF OF OUR CONSOLIDATED REVENUES NOWREVENUEEBITDA55%53%53%45%47%47%FY13FY 14FY15 IndiaInternational63%64%61%37%36%39%FY13 FY14FY15 IndiaInternational4WE HAVE LEADING MARKET POSITIONS IN MOST OF OUR GEOGRAPHIESINDIA hair colourshousehold insecticidesliquid detergents1soaps2 SAARC hair colours (Sri Lanka)13hair colours(Bangladesh) household insecticides(Sri Lanka & Bangladesh)INDONESIAair fresheners wet tissues1household insecticides2 UKstretch marks skin treatment1sanitisers24sun carefemale deodorants 5WE HAVE LEADING MARKET POSITIONS IN MOST OF OUR GEOGRAPHIESLATIN AMERICA hair colours*(Argentina, Uruguay, Paraguay, Bolivia)1hair colours & colour cosmetics(Chile)2 SUB SAHARAN AFRICA ethnic hair colours (14 countries)hair extensions(10 countries)123hair extensions (1 country)caucasianhair colours (South Africa) * Volume Share6IN INDIA, WE HAVE DELIVERED CONSISTENT, HEALTHY AHEAD OF THE CATEGORY SALES GROWTH INDIA NET SALES GROWTH*EBITDA GROWTH (%)* nielsen data for India HPC growth15%8%6%20%14%9%FY13FY14FY15 India HPCGCPL13%17%12%FY13FY14FY15 EBITDA growth7 THERE IS SIGNIFICANT HEADROOM FOR GROWTH IN HAIR COLOURS AND HOUSEHOLD INSECTICIDES37%44%99%Haircolour/dye/henn aInsecticidesToilet soapsPENETRATION -% OF HOUSEHOLDSS ource.
2 Nielsen8 PARTICULARLY A LOT OF POTENTIAL TO INCREASE PENETRATION IN RURAL FOR HAIR COLOURS AND HOUSEHOLD INSECTICIDES PENETRATION -% OF HOUSEHOLDSHAIR COLOURSHOUSEHOLD INSECTICIDES60%26%UrbanRural77%28%UrbanR uralSource: UPSIDE IN DRIVING CONSUMPTIONCONSUMPTION / CAPITA (USD)HAIR COLOURSHOUSEHOLD INSECTICIDESS ource: Euromonitor, Nielsen10 OUR HOUSEHOLD INSECTICIDES BUSINESS CONTINUES TO PERFORM WELL AHEAD OF THE MARKET VALUE GROWTH (%)18%9%7%7%FY14FY15 GCPLC ategorySource: nielsen for category growth11 OUR SOAPS BUSINESS TOO, OUTPERFORMEDTHE MARKET VALUE GROWTH (%)6%10%3%2%FY14FY15 GCPLC ategorySource: nielsen for category growth12 NEW INNOVATIONS IN HAIR COLOURS ARE DRIVING GROWTH AHEAD OF THE CATEGORY VALUE GROWTH (%) GODREJ Expert cr me hair color features in nielsen breakthrough innovation report 201427%11%8%6%FY14FY15 GCPLC ategorySource: nielsen for category growth13 IMPROVEMENT IN EBITDA INTERNATIONAL BUSINESS IS SCALING UP WELL INTERNATIONAL SALES BREAKUP*INTERNATIONAL NET SALES GROWTH* FY1549%24%9%FY13FY14FY15 Indonesia37%Africa30%LATAM16%UK13%Others 4%15WE ARE ACTIVELY CROSS POLLINATING THE PORTFOLIOHair ColourHousehold InsecticidesAirFreshenersINDIASOUTH AFRICAHair colour creme in sachet (Argentina)Renew hair colour(India)Good knight coils & aerosols(India)Hit Magic, paper based mosquito repellent (Indonesia)Aerair fresheners(Indonesia)INDIANIGERIAINDIA16 OUR innovation PIPELINE CONTINUES TO REMAIN ROBUSTG odrej Expert cr me hair color becomes the highest selling cr me color by units within 20 months of its launchGood knight Fast Card becomes INR 100 crore brand in less than a year17 GCPL FORAYS INTO FACE WASH CATEGORY WITH INNOVATIVE PACKAGING AT DISRUPTIVE PRICES18 PREMIUMISING OUR HAIR CARE PORTFOLIOAn Oil based hair colour with Hennain a cr meformat 19 BBLUNT.
3 OUR FORAY IN PREMIUM HAIR CARE IN INDIAPREPSTYLETRANSFORMS hampoo-conditioner systems for every hair type. Prepare your hair for great PRODUCTS and tools bringing salon smarts into your hands. Switch up your look -do it your colourand hair extensions. for makeovers, short-term, long-term or just a few SIX KEY PRIORITESCore category leadershipInternational growthInnovation and renovationFuture ready sales systemBest in class supply chainAgility and high performance culture23156421563 700 952 1,103 1,393 2,041 3,676 4,851 6,391 7,583 8,242 107 150 182 219 211 411 653 876 1,015 1,184 1,369 - - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000FY05FY06FY07FY08FY09FY10FY11FY12FY1 3FY14FY15 SalesEBITDAEBITDA margin (%)Note: Values in INR crsWE HAVE CONSISTENTLY DELIVERED STRONG PERFORMANCES ales CAGR: 31%EBITDA CAGR: 29%224Q FY2015 SNAPSHOT234Q FY2015 PERFORMANCE OVERVIEW4Q FY2015 GrowthConsolidatedIndia InternationalNet Sales8%10%7%Net Sales Organic*8%10%6%Net sales -Organic constant currency*12%10%14%EBITDA 13%13%15%EBITDA Organic**12%13%11%EBITDA -Organic constant currency**15%13%20%Net profit12%13%12%* Excludes inorganic sales of INR crores from Ghana and Frikafor 4 QFY15** Excludes -Darling trademark licensing fees, Ghana and Frikaprofitability aggregating to INR crores for 4 QFY1524 BUSINESS SNAPSHOTG rowth well ahead of the category across three categories Continue to drive premiumisationstrategy and cost efficienciesNew launches witnessing good success and driving penetration in relatively underpenetrated categoriesSTRONG RECOVERY IN DOMESTIC BUSINESS ALONG WITH EXPANSION IN MARGINS25 BUSINESS SNAPSHOTI ndonesiabusiness continues its strong growth despite macro headwindsAfricabusiness strong outperformance in Darling business.
4 New product rollouts such as household insecticides, wet hair care PRODUCTS to leverage existing distribution capabilities Significant margin improvement in Latin America; business holding up market share amidst tough competitionINTERNATIONAL BUSINESS PERFORMANCE REMAINS STRONG AND ON TRACKUK business recovers driven by competitive performance of our owned brands along with some improvement in the sales of distributed brands264Q FY2015 REPORTED PERFORMANCE SNAPSHOTI ndiaConsolidated4Q FY144Q FY15Y/Y4Q FY144Q FY15Y/YSales1,0331,13410%1,9242,0838%Gro ss Profit53463920%1,0011,15115%Gross Margin (%) bpsEBITDA22024813%34238713%EBITDA Margin (%) bpsNet Profit 16718813%23626612%Net Profit Margin (%) bps27 WAY AHEADE xpect competitive, consistent and ahead of the category growth rate across businessesBenign commodity cost environment to aid margin expansionMacro environment headwinds in few of the countries we operate inCurrency volatility ZAR, IDR, Argentine Peso28 STOCKHOLDING PATTERNAs on March 31, 2015 MAJOR INVESTORSP romoter, 63%FII, 29%DII, 2%Others, 6%AberdeenFirst StateTemasekArisaig LICADIAB lackrockVanguardGICO thers 29 THREE OF OUR BRANDS FEATURED IN THE MOST TRUSTED BRANDS 2014 HOUSEHOLD CAREG oodknight Ranked 1stHITR anked 8thGodrej Aer Ranked 11thJet Ranked 12thPERSONAL CAREC intholRanked 11thGodrej No.
5 1 Ranked 15thGodrej Expert Powder Hair Colour Ranked 26th3ofourbrandsrankedin100 MostTrustedBrands2014byBrandEquity-Goodk night-Cinthol- GODREJ HAVE BEEN CONSISTENTLY RECOGNISED AS A GREAT PLACE TO WORKGCPL ranked #1in India FMCG#7in India overallAmong 25 best work places in AsiaGCPL ranked Among Best Employers In India -2015 31 OPPORTUNITIES GOING FORWARDD rive penetration and consumption in core categoriesExpand into adjacenciesDrive margin improvement through cost saving initiativesand better product mixDrive margins through scale up of international business and cost saving initiativesCross pollination initiatives to harness distribution and product technology strengthsDomesticBusinessInternationalBu siness32 CONTACT US @for more details please visit SRINIVASANE mail: +91 22 2519 4316 SAMEER SHAH Email: +91 22 2519 4467 TAPAN JOSHIE mail: +91 22 2519 720233 THANK YOU FOR YOUR TIME AND CONSIDERATION
