Dabur India Ltd

Investor Communication
Financial year ended March 31, 2010

Investor Communication FY2009-10

FY10: Strong Growth Continues

Dabur India Limited : Sales and Sales Growth Rate Sales in Rs.crores
Balsara acquisition added 10% to topline in FY06 FEM added 3% to topline in FY10

4500 4000 3500 3000 2500 2000 1500 1000 500 0

24.0% 12.0% 14.7% 9.2% 9 2% 7.0% -3.8% 1,100 1,200 1,285 1,236 1,417 1,757

18.3%

15.2%

18.3%

19.6% 3,391 3 391

2,834 2,080 2,396

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

Note: Sales show a decline in FY04 on account of de-merger of Pharma business

Robust growth driven by 13.3% volume growth, 2.3% price increases and 0.7% translation gain
Investor Communication FY2009-10
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Performance Overview FY2009-10 (Unaudited results)

Dabur recorded another year of strong growth with sales going up by 19.6% to Rs. 3,390.9 crores for FY2009-10 International Business Division (IBD) achieved growth of 26.3% while CCD grew by 14.6% & CHD grew by 15%. EBITDA margins for consolidated business increased by 150 bps to 19.8% as compared to 18.3% last year. PAT increased by 28.7% to Rs. 503.5 crores for FY10 on consolidated basis. Audited results for FY2009-10 will be declared post the completion of FY2009 10 Fem Merger which is expected in May / June 2010.

Investor Communication FY2009-10

Sales Performance
Sales: FY10 v/s FY09
in Rs. Crores in Rs. Crores

Sales: Q4FY10 v/s Q4FY09

1200 1000 800 600 400 200 0

3600 3400 3200 3000 2800 2600 2400

3,391 2,834

737

855

FY09

FY10

Q4FY09

Q4FY10

Sales for FY10 increased by 19.6% and for Q4FY10 BY 16.0% Growth led primarily by continued double digit volume growth Fem Care Pharma which was acquired in 2008-09 and consolidated with DIL w.e.f. June, 25 2009 added about 3% to topline

Investor Communication FY2009-10

EBITDA Margin
EBITDA Margin: FY10 v/s FY09
20.00% 19.50% 19 50% 19.00% 18.50% 18.00% 17.50%

EBITDA Margin: Q4FY10 v/s Q4FY09

21.00% 20.50% 20.00% 19.50% 19.00% 18.50% 18.00% 17.50%

19.8% 18.3%

20.6% 18.8%

FY09

FY10

Q4FY09

Q4FY10

EBITDA margin for FY10 expanded by 150 bps to touch 19.8% led by lower input costs and efficient buying even though there were higher spends on p y g g g p Adpro. EBITDA margin expanded by 180 bps during Q4FY10 led by lower input costs and stable overheads overheads.

Investor Communication FY2009-10

PAT Performance
PAT: FY10 v/s FY09
in Rs. Crores in Rs. Crores

PAT: Q4FY10 v/s Q4FY09

150

600 500 400 300 200 100 0

503.5

391.2 391 2

104.3 104 3
100 50 0

135.3

FY09

FY10

Q4FY09

Q4FY10

PAT increased by 28.7% during the FY10 due to strong topline, improved gross margins and operating leverage despite higher ad spend & increased taxation.

Note: PAT refers to Net Profit after Minority Interest Investor Communication FY2009-10
6

FY 2009-10 EBITDA Analysis

Material costs lower by 316 bps due to benign input costs environment especially in first half of the year. Inflation during second half did not have a major impact due to effective procurement strategies. j p p g A&P spend to sales higher at 14.3% in FY10 v/s 12.1% in FY09 Employee costs were flat at 8.3% of sales vis--vis 8.3% in the previous year year. Other expenditure was lower at 12.6% vis--vis 13.4% in the previous vis vis year due to efficiencies / savings in fixed and variable overheads Other non-operating income stood at 0.43% of sales as compared to 0.75% in the previous year
Investor Communication FY2009-10
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Consolidated Capital Employed

in Rs. Crore Rs

1,501.9 1,081.5 559.2 559 2

31st Mar '09 903.2 347.0 264.1 Investments 143.2 305.5

31st Mar '10

-5.3

109.4

Total capital employed

Net Fixed Assets

Net current assets

Net current assets (w/o Cash and Equiv.)

Increase in fixed assets due to Fem acquisition and Capital expenditure on new manufacturing units at Baddi and Pantnagar Net working capital excluding cash and bank balance was at 12 days of sales (which excludes provision for dividend) for FY10 vis--vis negative 1 day for FY09 (including dividend provision). Net cash position (including investments and net of debt) at Rs.277 crores Debt reduced to Rs 179 3 crores in FY10 from 227 6 crores in FY09 Rs. 179.3 227.6
Investor Communication FY2009-10
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Dabur India : SBU Performance FY10

SBU Sales Contribution: FY10
IBD 17.8% Fem 2.7% 2 7% Others 2.8% 2 8%
30% 25% 20% 15%

SBU Wise Growth : FY10

26.3% 14.6% 15.0%

CCD 68.6% CHD 8.1%

10% 5% 0%

CCD

CHD

IBD

CCD growth during FY10 was at 14.6% driven by double digit volume growth CHD growth was at 15.0% during FY10 IBD posted growth of 26.3% in FY10 led by continued strong growth in volumes

Investor Communication FY2009-10

CCD Category Performance

Category growth during FY10 g yg g
33.2% 20.4% 13.6% 11.5% 10.8% 3.3%
Digestives Home Care Skin Care Health Supplemen ts Hair Care Oral Care Foods

Category wise break up of Sales (FY10) g y p ( )

Home Care 5.2%
20.0%

Foods 14.2%

Hair Care 31.4%

Skin Care 2.4% Digestives 8.6% Health Supplemen ts 19.9%

Oral Care 18.2%

Hair care the largest category posted growth of 13.6% during FY10 with Shampoos growing at 27% Oral care posted 11.5% growth during FY10 with growth in toothpastes at 19.4% Foods reported robust growth of 20% during FY10 Skin care grew by 33.2%
Investor Communication FY2009-10 10

Hair Oils
Dabur Amla Hair Oil witnessed growth of 10.6% driven by aggressive activations in rural areas and conversion from unbranded to branded hair oils. Vatika Hair Oil recorded growth of by 6% due to low institutional sales and lower growth in modern trade. Anmol Coconut Oil recorded a growth of 15.4% performing well in its focus markets. Vatika E i h d Al V tik Enriched Almond Hair Oil G d i iti l response; t b scaled up f th i FY11 d H i Oil: Good initial to be l d further in FY11. Dabur Amla Flower Magic: Received positive response during test launch in North India

Key Initiatives:

NPD: Dabur Amla Flower Magic

Vatika Enriched Almond Hair Oil

Investor Communication FY2009-10

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Shampoos
Shampoos continued strong performance with 27% growth for FY10 p gp g Vatika Normal Shampoo grew at an impressive 40.5% in FY10 aided by strong marketing initiatives. Vatika Dandruff Control hi h is b t V tik D d ff C t l which i about 10% of th Sh f the Shampoo category d li d d t declined due t to overall category contraction. Vatika Black Shine performed well with 23.5% growth. Dabur Total Protect: Brand Test Marketed and rolled out nationally in July 09

Key Initiatives:

Marketing initiatives to drive growth in Shampoo bottles

Ayurvedic health shampoo : Dabur Total protect rolled out nationally in July

Investor Communication FY2009-10

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Oral Care
Oral Care category reported growth of 11 5% for FY10 with growth in toothpastes of 11.5% 19.4% Daburs growth in toothpastes continues to outpace category growth which was at 6% as per AC Nielsen for MAT Mar 2010 2010. Daburs Market share in toothpastes increased to 10.2% (MAT Mar 2010) from 9.3% (MAT Mar 2009) as per AC Nielsen . Dabur Red Tooth Paste posted growth of 17.4% during FY10. Babool brand grew by 19.4% for the year FY10. Babool Mint Gel variant which was launched during the year met with positive response and performed well. Meswak toothpaste grew by 26.8% for FY10. Dabur Red Toothpowder witnessed a decline of 2.8% in view of contraction in overall category

Key Initiatives:

Babool Mint Fresh Gel launched in Aug 2009

Investor Communication FY2009-10

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Health Supplements
Health Supplements recorded 20.4% growth during FY10 20 4%
Dabur Chywanprash grew by 13% led by initiatives like Immune India campaign and school activations. Dabur Honey recorded 15% growth backed by Replace Sugar strategy. Replace Sugar strategy Dabur Glucose achieved highest ever growth of 52.1% led by aggressive marketing activities.

Dabur Chyawanprash garnered a market share of 62.7% for MAT March 2010 as compared to 61.9% for MAT March 2010 (AC Nielsen retail audit) Dabur Chyawan Junior clocked 50% growth during FY10 to touch sales of Rs.6 crore

Key Initiatives:

DCP : Topical initiatives: Campaign against swine flu

Dabur Honey : Rs.10 pack

Investor Communication FY2009-10

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Digestives and Baby Care

The Digestives and Baby Care category witnessed a growth of 10 8% during FY10 10.8%
Brand performance during FY10: Hajmola Tablets:11.6% Hajmola Candy:13.1%

For Hajmola, new variants and innovative consumer activations have been key growth drivers. Proposition of Post Meal Consumption has p g p p panned out well Lal Tail has grown at 8% during FY10, driven by launch of new sharper proposition of 2 Times Faster Physical Growth

Key Initiatives:

New Proposition: 2 Times Faster Physical Growth F t Ph i l G th

Investor Communication FY2009-10

Skin Care
Skin care portfolio grew by 33.2% Gulabari brand continued to perform well p p posting 34.5% g g growth. Gulabari cold cream & lotion driving strong growth in brand. Uveda test marketed in Delhi and Maharashtra
To be rolled out to other geographies during FY11 FY11.

Key Initiatives: y

Successful launch of Gulabari cold cream & lotion

Dabur Uveda launched in select markets

Investor Communication FY2009-10

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Home Care
Home care recorded growth of 3 3% in FY10 3.3% Key brand performance during FY10 : Sanifresh recorded 15.2% growth and is the second largest brand in the category Odomos grew by 10.2% with good performance of the newly launched Odomos Naturals Odonil grew by 1.8%: Odonil Blocks have been re-launched in new attractive 1 8%: packaging and improved fragrances.

Key Initiatives:

Odonil re-launched

Investor Communication FY2009-10

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Foods
Foods delivered a growth of 20% for FY10 g Brand growth in FY09 Real Fruit juices grew by 21% with gains in market share Activ Fruit Juices reported 6% growth. Hommade Paste grew by 49% driven by new contemporary packs and marketing pp support Activ Brand received a boost in Q4 with the No Added Sugar campaign Entered Fruit Drinks category with Real Burrst

Key Initiatives:
Entered E t d Fruit Drinks category with Real Burrst

Hommade Relaunched

Investor Communication FY2009-10

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Fem Care
Fem reported growth in sales of 16 6% during the period 1st July 2009 to 31st March 2010 16.6% inspite of discontinuation of Speciality Chemicals business and portfolio rationalization. During the period 1st July 2009 to 31st March 2010, PAT of Fem Care increased to Rs.18.5 crore led by expansion in EBIDTA margins from 12% to 28% Personal care portfolio of Fem reported 29% growth in sales. Fem Bleach grew by 28.8% driven by strong marketing inputs, re-staging of the brand and increased thrust on parlour activations p Successful Launch of Herbal Bleach which clocked Rs. 4.5 Crs Revenue (5% MS) in first year of launch. Relaunch of HRC as a Complete Hair Removal System, first of its kind. Preity Zinta taken as Brand Ambassador for the brand FEM. Increased coverage in the retail and parlour channel : strengthened the parlour network which went up from 18000 to 25000.

Key I i i i K Initiatives:
Launch of Fem Herbal Bleach Launch of FEM Hair Removal System

Investor Communication FY2009-10

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Consumer Health Division (CHD)

CHD continued its strong growth registering 15% growth in FY10. Brand Performance in FY10:
Pudin Hara: 17.7% plan to extend to lemon flavour Honitus franchise: 13% Shilajit: 27% Dashmularishta: 19%

ATL initiatives (TVCs) for Badam Tail, Shilajit and Hingoli carried out Strategic review for CHD completed and new initiatives p g p planned during FY11 g

Key Initiatives

First Fi t ever Ad on Hi g li and B d Ads Hingoli d Badam Tail

Investor Communication FY2009-10

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International Business Division (IBD)

IBD registered a topline growth of 26.3% for FY10 with strong growth in key markets of Egypt, GCC, Nigeria, North Africa and Levant Region wise growth in key markets:
GCC 39.4% Egypt 34 4% 34.4% Bangladesh 46.7% Nepal 9.0%

Key Initiatives

High growths driven by: g g y

Impressive growth trajectory for all key brands across markets NPDs and Re-launches Media initiatives M di i i i i
Newly launched Vatika Shampoo range

New products launched : Vatika Shampoo range, Amla Hair Creams, Vatika Hot Oil Treatment Dermoviva Treatment, moisturising soap and Vatika Enriched Coconut Oil

Vatika Entriched Coconut Oil

Investor Communication FY2009-10

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Update on Retail Business: Newu

Retail venture recorded revenue of Rs.9.2 crore during FY10. 13 stores currently operational Outlets re-positioned as a lifestyle beauty store, offering a one-stop solution for all beauty product needs Stores being rolled out in Punjab and Rajasthan Loss in FY2009-10 at Rs.9.3 crore vs Rs.17.8 crore during FY2008-09. Significant reduction in losses due to re-organization of business and lower average rentals.
NEWU store at DLF Promenade, Delhi

Investor Communication FY2009-10

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Operations
New Manufacturing facilities commissioned Phase I of Baddi Greenfiled Project commissioned. Includes lines for manufacturing hair oils , skin care and Ayurvedic products Pantnagar, Uttaranchal : Added new manufacturing lines for toothpastes and shampoos Both units follow principles of GREEN MANUFACTURING using eco-friendly materials and enhancing efficiencies Overseas units Egypt : Expansion of capacity for hair oils and hair creams Nigeria : toothpaste capacity doubled RAK : Increase in capacity from 15000 MT to 17000 MT
Investor Communication FY2009-10 23
Newly commissioned greenfield facility at Baddi, HP ,

DIL Consolidated P&L FY10 & Q4FY10 (Unaudited)

in Rs. Crore i R C
Gross Sales Less:Excise Duty Net Sales Other Operating Income Material Cost % of Sales Employee Costs % of S l f Sales Ad Pro % of Sales Other Expenses % of Sales Other Non Operating Income EBITDA % of Sales Interest Expenses Depreciation/Amortization Profit Before Tax (PBT) Taxes PAT(Before exceptional item) % of Sales PAT(After exceptional Items) PAT (After Extra ordinary item & MI) Diluted EPS (Rs) ( )

Q4FY10
855.3 6.5 848.8 9.5 384.3 44.9% 75.4 8.8% 8 8% 115.6 13.5% 111.5 13.0% 13 0% 4.8 176.2 20.6% 2.5 25 14.9 158.9 23.6 135.3 15.8% 135.3 135.3 1.56

Q4FY09
737.1 5.4 731.7 4.7 342.3 46.4% 59.2 8.0% 8 0% 96.3 13.1% 104.4 14.2% 14 2% 4.3 138.5 18.8% 8.3 83 14.4 115.8 10.6 105.3 14.3% 105.3 104.3 1.21

YoY Y Y (%)
16.0% 16.0% 103.4% 12.3% 27.4% 20.1% 6.8% 11.7% 27.2% -70.3% -70 3% 3.6% 37.2% 123.5% 28.5% 28.5% 29.7%

FY10
3,390.9 25.3 3,365.7 24.1 1,539.4 45.4% 280.4 8.3% 8 3% 484.5 14.3% 428.4 12.6% 12 6% 14.7 671.7 19.8% 13.2 13 2 55.7 602.8 98.5 504.3 14.9% 504.3 503.5 5.79

FY09
2,834.1 28.7 2,805.4 25.6 1,376.2 48.6% 234.7 8.3% 8 3% 343.3 12.1% 380.8 13.4% 13 4% 21.3 517.3 18.3% 23.2 23 2 49.2 444.8 54.0 390.8 13.8% 390.8 391.2 4.50

YoY Y Y (%)
19.6% 20.0% -5.8% 11.9% 19.5% 41.1% 12.5% -31.1% 29.9% -43.3% -43 3% 13.2% 35.5% 82.3% 29.1% 29.1% 28.7%

Investor Communication FY2009-10 24

DIL Consolidated Balance Sheet: Mar 31, 2010 (Unaudited)

In Rs. Crores Sources Of F d S Funds Shareholders' Fund: Share Capital Reserves & Surplus Minority Interest Loan Funds: Secured Loans Unsecured Loans Deferred Tax Liability TOTAL Application of funds: Fixed Assets: Gross Block less: D l Depreciation i ti Net block Investments Current Assets,Loans & Advances Inventories Sundry Debtors Cash & Bank balances Loans & Advances Less: Current Liabilities and Provisions: Current Liabilities Provisions Net Current Assets Miscellaneous Expenditure Deferred T Assets D f d Tax A t TOTAL As on March 31, 2010 As on March 31, 2009

86.8 1,189.2 1,276.0 , 8.4 70.2 109.0 179.3 38.2 38 2 1,501.9

95.7 131.9

86.5 732.3 818.8 4.6

227.6 30.5 30 5 1,081.5

1,242.7 339.5 339 5 903.2 264.1 428.3 134.7 192.4 370.6

858.5 299.3 299 3 559.2 347.0 375.5 177.9 148.4 249.0

1,126.0 494.5 494 5 326.0 820.6 305.5 2.7 26.3 26 3 1,501.9

950.8 481.7 481 7 326.0 807.7 143.2 8.6 23.5 23 5 1,081.5

Investor Communication FY2009-10 25

Thank Y Th k You

Investor Communication FY2009-10