DABUR INDIA LIMITED

Deutsche Bank - Access India Conference

March 2011, Mumbai

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FMCG GROWTH STORY

India FMCG Sector Volume and Value Growth Rate (Y-o-Y %)

High Growth Phase

Source: Industry data, Standard Chartered Research

Indias FMCG sector reported steady sales CAGR of 11.2% over FY00-10 on the back of strong annual volume growth of ~8.5%. Growth being driven by increasing consumption led by rise in incomes, changing lifestyles and favorable demographics FMCG industry expected to grow in mid to high teens going ahead

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FMCG CURRENT SCENARIO

FMCG Split: OTC, Food and Non-Food

140,000

Rs.Crores 97,276 82,615

4 46 (14%) 48 4 (10%) ( )

128,580 116,053
4 (14%) 45 (8%) 46 (19%)
OTCPRODUCTS NonFood FoodProducts

FMCG industry billion in CY10

pegged

at

US$30

120,000

(11%)

Of the entire FMCG sector, Food is 52%, Non-Food at 45% and OTC 3% Rural sector accounts for about 33% of total revenue

100,000

80,000

60,000

40,000

50 (20%)
20,000

52 (14%)

48
MATSep'07

50 (22%)

FMCG Sales Channel Breakdown

MATSep'08 MATSep'09 MATSep''10

Source: AC Nielsen
5.8% 5 8%

5.0% 3.3% 5.9%

8.2%

Of the 7.8 million retail outlets for FMCG, Grocers are the dominant format Modern Trade contributes to 6% of FMCG sales

58.6% 13.2%

Grocers PaanPlus ModernTrade

Source : AC Nielsen

GeneralStores General Stores FoodStores

Chemists Others

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FMCG INDUSTRY GROWTH DRIVERS

Shiftfrom unorganised to organised

Evidencedbygrowthin hairoils Current level of un Currentlevelofun organised presenceisa keydriverforfuture volumegrowth

Riseinpercapita category consumption

Levelofpercapita increaseinconsumption inthefutureisakey y variableforfuture volumegrowth Demonstratedbyrecent stronggrowthin strong growth in brandedfoods

Increasein penetration
Categorypenetration continuestobe abysmallylowinvarious categorieslikeinstant brandedfoods,OTC,skin creams,etc.indicating scopeforvolume growththroughincrease inpenetration i i

Above drivers aided by favourable demographics and rise in disposable incomes

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PENETRATION LEVELS: SUFFICIENT HEADROOM

Rural Penetration
90%

Urban Penetration

80%

77%

80%

70%

67% 57% 59%

60%

50%

42%
40%

37% 32%

30%

26% 18% 18% 19%

20%

10%

3%
0%

2%

5%

4%

Toothpaste

Shampoo

Hair Oil

Skin Cream

Mosquito Repellants

Instant Noodles

Hair Dyes

Floor Cleaners

Source: Industry Data

Low penetration levels offer room for growth across consumption categories Rural penetration catching up with urban p p g p penetration levels

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PER CAPITA CONSUMPTION: ROOM FOR GROWTH

India has low per capita consumption as compared to other emerging economies
Skin Care Per Capita Consumption (in US$)
in US$
9 8 7 6 5 4 3 2 1 0 2 1.5 1

Shampoo Per Capita Consumption (in US$)

in US$
3 2.5

7.4

7.7

2.7

2.4

3.2 0.8 China Indonesia 0.3 India Malaysia Thailand

1.0

1.1 0.3

0.5 0

China h

Indonesia d

India d

Malaysia l

Thailand h l d

Toothpaste Per Capita Consumption (in US$)

in US$ 3.5
3 2.5 2 1.5 1 0.5 0

2.9 2.0 1.0 0.5 0.4

China

Indonesia

India

Malaysia

Thailand

Source: MOSL

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DABUR OVERVIEW
Established in 1884 - more than 125 Years of Trust & Excellence Among top 4 FMCG companies in India Worlds largest in Ayurveda and natural healthcare Revenue of Rs. 34 billion and profits of Rs. Rs Rs 5 billion in FY2009-10 Strong brand equity
Dabur is a household brand Vatika and Real are Superbrands Hajmola , Real & Dabur ranked among Indias Most Admired Brands
Ten Billion Rupee Brands

10 Brands with sales of over Rs. 1 billion each Wide distribution network covering 2.8 million retailers across the country 17 world class manufacturing plants catering to needs of diverse markets Strong overseas presence with 20% contribution to consolidated sales
Dabur ranked 200 in the Fortune India 500 list Dabur moves up to take the 78th spot in the Super-100 list, released by Business India Dabur ranked 45 among Most Trusted Brands in India, according to Brand Trust Report, India Study, 2011

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FINANCIAL PERFORMANCE
Sales
in Rs. million
40000 35000 30000 25000 20000 15000 10000 5000 0

10,997

12,004

12,849

12,356

14,170

17,565

20,803

23,963

28,341

34,167

FY01

FY02

FY03

FY04^

FY05

FY06*

FY07

FY08

FY09

FY10**

EBITDA Margin (in %)

in % in Rs. million

Net Profit

22.0% 20.0% 18.0% 16.0% 14.0% 14 0% 12.0% 10.0%

17.1% 15.3% 13.3%

18.1% 18.5% 18.3%

19.6% 19 6%

6000 5000 4000 3000 2000 1000 0

5,032 2,817 3,329 3,913

1,065

1,558 1 558

2,142

FY04 FY05 FY06 FY07 FY08 FY09 FY10

FY04 FY05 FY06 FY07 FY08 FY09 FY10

^Sales show a decline in FY04 on account of de-merger of Pharma business *Balsara acquisition added 10% to topline in FY06 ** Fem acquisition added 3.5% to topline in FY10

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PORTFOLIO
Health Care

Personal Care

Home Care

Foods

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GLOBAL FOOTPRINT
UK Turkey y Nepal

Canada U.S.

Egypt

UAE

BDesh Nigeria

Australia Domestic Mfg. Locations

Key markets Manufacturing Facilities Our strategy is to localize manufacturing, supply chain manufacturing and product offerings to suit consumer requirements in each geography 10 10

ROBUST DISTRIBUTION NETWORK

Factory
C&FA Stockist St ki t
(Carry & Forward Agents)

Super St ki t S Stockist

Institutions & Modern trade

Wholesalers

Sub Stockist

RETAIL TRADE CONSUMERS

Direct + Indirect Reach covering 3 million Retail Outlets
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PRESENCE IN FMCG CATEGORIES

Category
Hair Care Oral Care Skin Care Ayurvedic Tonics Digestives Fruit Juices Honey Glucose

Position
3 3 3 1 1 1 1 2

Market Share
12% 13% 7% 66% 55% 52% 50% 26%

Key Brands
Dabur Amla hair Oil, Vatika hair oil & Vatika Shampoos Red toothpaste, Babool, Meswak, Red toothpowder Dabur Gulabari, Fem, Dabur Uveda

Dabur Chyawanprash

Hajmola

Real Fruit Juices, Real Activ

Dabur Honey

Dabur Gl D b Glucose

Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Skin care includes moisturizers, face cleaning, lightening, anti ageing & other skin care products; Digestives includes herbal digestives 12

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BUSINESS STRUCTURE
Dabur operates through three focused Strategic Business Units Business Unit Description
FMCG portfolio comprising p p g distinct businesses: Personal Care Consumer Health Care Home Care Foods four

Revenue Share

Consumer Care Division

72%

Consumer Health Division

Range of ethical and OTC products that deliver the age-old benefits of age old Ayurveda in modern ready-to-use formats

8%

International Business

Catering to health & personal care needs of customers across different international markets spanning Middle East, North & West Africa, South Asia Africa Asia, EU and US through its brands Dabur and Vatika

18%

Note: Percentage share in revenue based on FY10 Financials ; Fem Care included in Consumer Care Division

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CONSUMER CARE DIVISION OVERVIEW

FPD HCPD Balsara Foods FEM

2003-2004

2006-2007

2007-2008

2008-2009

CCD

FPD: Family Products Division HCPD: Health Care Products Division Balsara and Fem were acquisitions Foods division was a 100% subsidiary of DIL
Category-wise Share of CCD Sales
Home Care 6% Skin Care 6% Digestives 8% Health Supplemen ts 17%
Note: Percentage share in revenue for H1 FY11

CCD Sales - Historical

in Rs. million

Foods 16%

Hair Care 29%

Oral Care 18%

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CONSUMER CARE CATEGORIES

Hair Oil
Market Share
7% 37% 16% 3%

Key Brands

6%

Bajaj Emami

31%

Dabur Marico

Dey's Medical Others

Value Share ACN June 09 Share-ACN June,

Dabur Amla: Largest brand in the portfolio

Vatika: Value added coconut oil

Anmol Hair Oil: Value proposition

Shampoo
Market Share
6%

Key Brands

14% 24%

10%

46%

Cavinkare P&G

Dabur Others

HUL

Vatika range of shampoos

Value Share-ACN MAT Dec-2010

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CONSUMER CARE CATEGORIES

Oral Care
Market Share
13.9% 13.4% 50.0%

Key Brands

22.7%

Colgate

HUL

Dabur

Others

Value Share -ACN MAT Dec 2010 ACN Dec,

Dabur Red: Toothpaste & Toothpowder

Babool: Targeted at economy segment

Meswak: Premium therapeutic toothpaste

Health Supplements
Chyawanprash Market Share
2.9% 7.2% 65.8% 10.5% 13.6%

Key Brands

Baidyanath Dabur

Emami Zandu

Others

Volume Share-ACN MAT - Dec, 2010

Dabur Chyawanprash: Largest selling health supplement in the country

Dabur Glucose: 2nd largest player in the country

Dabur Honey: Largest branded h b d d honey in the h country; growing category through replace sugar strategy 16 16

CONSUMER CARE CATEGORIES

Foods
Market Share
13.0% 52.0%

Key Brands

35.0%
Dabur Pepsi Others

Company E t M C Est. Mar, 2010 for Fruit Juice category f F it J i t

Real: Flagship beverages brand

Real Activ: Range of 100% pure juice

Skin Care
Market Share*
18.0% 3.2% 6.4% 58.9%

Key Brands

6.6% 6.8%

Hindustan Lever Loreal

Emami Cavin Care

Dabur Others

*Company estimates; Includes Fem skin care portfolio

Gulabari range of rose based skin care products: Moisturizer, Face freshener & Rose water

Uveda: Range of Ayurvedic Skin Care

Fem Gold Bleach: F G ld Bl h Launched recently

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CONSUMER CARE CATEGORIES

Digestives
Market Share
37% 55%

Key Brands

8% Hajmola Satmola Others

Hajmola: Flagship brand for branded Digestives

Hajmola tasty digestive candy

Value Share-ACN MAT Dec, 2010 a ue S a e C ec, 0 0

Home Care
Air Fresheners Market Share
26% 20%

Key Brands

5%

20%

30%
Odonil Air wick Premium Ambipur Others

Value Share-ACN March, 2010 for Aerosols category

Odonil: Air freshner range: Largest brand in the portfolio

Odomos: Mosquito repellant skin cream

Sanifresh: Toilet cleaner 18 18

CONSUMER HEALTH DIVISION

Description CHD Structure

CHD: Repository of Daburs Ayurvedic Healthcare knowledge Range of over 260 products Focusing on multiple therapeutic areas. Distribution coverage of 200,000 chemists, ~12,000 vaidyas & 12,000 Ayurvedic pharmacies Focus on growing the OTC Health-Care portfolio aggressively

OTC (6 %) O C (64%) Generics Branded Products

ETHICAL (36%) C Tonic Classicals Branded Ethicals

Healthcare Focus

OTC Healthcare is Rs.130 billion size industry Expected to grow at 14-15% p.a. as preference for Over-the-Counter products accelerates Dabur to expand its presence by : Consolidating / expanding current portfolio Launching new products in emerging therapeutic areas Look at inorganic opportunities

Honitus: Day & Night for Cold and Flu relief

Pudin Hara Lemon Fizz for digestion

Promoting Dabur Ayurveda: Generating equity for Ethical portfolio

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INTERNATIONAL BUSINESS DIVISION

Started as an Exporter Focus on Order fulfillment through India Mfg Mfg. Set up a franchisee at Dubai in 1989 Demand generation led to setting up of mfg in Dubai & Egypt Renamed franchisee as Dabur International Ltd Local operations further strengthened Set up new mfg facilities in Nigeria,RAK & Bangladesh Building scale-18% of overall Dabur Sales High Levels of Localization Global Supply chain

1980s

Early 90s

2003 Onwards

Today

Highlights Daburs overseas business contributes 18% to consolidated sales led by CAGR of 29% in last 6 years Focus markets: GCC Egypt Nigeria Turkey Bangladesh Nepal U.S. US High level of localization of manufacturing and sales and marketing Leveraging the Natural preference among local consumers to increase share in personal care categories Sustained investments in brand building and marketing and new product launches
in Rs. million

High Growth in IBD

New products contributing significantly to overseas sales

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INTERNATIONAL BUSINESS - PRODUCT PORTFOLIO

Existing Products
Hair Oils

NPDs and Relaunches

Vatika Shampoos Vatika Hamam Zaith Hair Fall Control

Vatika Conditioners Hair Creams

Dabur Herbal Toothpaste

Hair Treatments a eat e ts

Vatika Hair Oil

Vatika D V tik DermoViva Soaps Vi S

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OUR STRATEGY
Three pronged Growth Strategy
Expand Innovate Acquire

Our differentiation is the herbal and ayurvedic platform Expand Strengthening presence in existing categories and markets as well entering new geographies Maintain dominant share in categories where we are category builders like Health g g y Supplements, Honey etc. Calibrated international expansion local manufacturing and supply chain to enhance flexibility / reduce response time to change in market demands Innovate I t Strong focus on innovation. Have rolled out new variants & products which have contributed to around 5-6% of our growth p.a. Renovation of existing products to respond to changing demands (Toothpowder to Toothpaste) Acquire Acquisitions critical for building scale in existing categories & markets Should be synergistic and make a good strategic fit Target opportunities in our focus markets
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ACQUISITION OF HOBI GROUP, TURKEY

Acquisition of Hobi Group, Turkey for a total consideration of US$ 69 Million completed on October 7, 2010 Hobi manufactures and markets hair, skin and body care products under the brands Hobby and New Era Product range of the company complementary to our product range is

Acquisition provides an entry into another g g g attractive emerging market and a good platform to leverage this across the region

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ACQUISITION OF NAMASTE LABORATORIES

Dabur India Limited through its subsidiary Dabur International Limited acquired 100% stake in Namaste Laboratories LLC for $100 million, in an all-cash deal on January1, 2011 Namast is a leading ethnic hair care products company, having products for women of colour, with revenues of about $93 million (Expected CY2010) from US, Europe, Middle East and African markets The company markets a portfolio of hair care products under the brand Organic Root gp Stimulator and has a strong presence in ethnic hair care market for women of colour. Acquisition to enable entry into Ethnic Hair Care products market valued at more than US$1.5 billion and tap into significant market opportunity in the fast growing, hugely populated (~1 Bn) yet highly underpenetrated consumer markets of Sub Saharan Africa At an acquisition price of $100 million, th d l value i at 1 1 S l and 8 3 EBITDA i iti i f illi the deal l is t 1.1x Sales d 8.3x

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FINANCIAL PERFORMANCE FY2009-10

Sales: FY10 v/s FY09
in Rs. million

EBITDA Margin: FY10 v/s FY09

40000 30000 20000 10000 0

28,341

34,167

20.00% 19.50% 19.00% 18.50% 18 50% 18.00% 17.50%

19.6% 18.3%

FY09

FY10

FY09

FY10

PAT*: FY10 v/s FY09

in Rs. million

Sales growth led primarily by continued double digit volume growth Fem C F Care Ph Pharma which was acquired i hi h i d in 2008-09 and merged with DIL w.e.f. April 1, 2009 added about 3.5% in FY10 to topline. EBITDA margin expanded by 130 bps during FY10 led by lower input costs.

6000 4000 2000 0

3,912

5,032

FY09

FY10

PAT increased by 28.6% during FY10 due to strong topline, improving gross margins and operating leverage despite higher ad spend & tax provisioning 25 25

FINANCIAL PERFORMANCE - 9M and Q3 FY 2010-11

Sales: 9MFY11 v/s 9MFY10
in Rs. million

Sales: Q3FY11 v/s Q3FY10

in Rs. million

25,607 25 607

29,926

10,878 9,323 9 323

9MFY10

9MFY11

Q3FY10

Q3FY11

Sales for 9MFY11 increased by 16.9% which was largely volume driven
PAT: 9MFY11 v/s 9MFY10
in Rs. million in Rs. million

PAT: Q3FY11 v/s Q3FY10

1,541

3,670

4,219

1,378

9MFY10

9MFY11

Q3FY10

Q3FY11

PAT increased by 15% during 9M FY11 despite input cost inflation and increased taxation

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STOCK PERFORMANCE AND SHAREHOLDING PATTERN

Market Capitalization in Rs. billion Shareholding Structure*

170
FIs/ MFs/Ins. Cos., 7.8% FIIs, 16.4 % Indian Public and Others, 7.1 %

17
Prom oters, 68.7%

2001

2010
*As on December 31, 2010

Dabur ranked as the organization that offers the best return to investors by the 6th Social & Corporate Governance Awards, presented by the Bombay Stock Exchange

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CONSOLIDATED P&L
in Rs. million Gross Sales Less:Excise Duty Net Sales Other Operating Income Material Cost % of Sales Employee Costs % of Sales Ad Pro % of Sales Other Expenses % of Sales Other Non Operating Income EBITDA % of Sales Interest Expenses Depreciation Amortization Profit Before Tax (PBT) Tax Expenses Provision for Taxation for Earlier years PAT(Before exceptional item) % of Sales PAT(After exceptional Items) PAT (After Extra ordinary item & MI) 1,541 14.2% 14 2% 1,541 1,544 1,378 14.8% 14 8% 1,378 1,393 11.8% 10.9% 11.8% 4,219 14.1% 14 1% 4,219 4,216 Q3FY11 10,878 78 10,800 10 800 69 5,231 48.1% 801 7.4% 1,349 12.4% 1,323 1 323 12.2% 20 2,184 20.1% 20 1% 54 160 73 1,897 1 897 357 Q3FY10 9,323 64 9,258 9 258 27 4,223 45.3% 735 7.9% 1,351 14.5% 1,192 1 192 12.8% 38 1,823 19.6% 19 6% 28 131 14 1,651 1 651 273 91.1% 22.2% 423.6% 15.0% 15 0% 30.9% -48.5% 19.8% 11.0% 11 0% -0.1% 9.1% 9 1% 16.6% 16 6% 153.1% 23.9% YoY (%) 16.7% 9M FY11 29,926 234 29,692 29 692 256 14,162 47.3% 2,308 2 308 7.7% 4,071 13.6% 3,660 3 660 12.2% 159 5,906 19.7% 19 7% 144 437 130 5,195 5 195 976 9MFY10 25,607 188 25,419 25 419 139 11,664 45.6% 2,093 2 093 8.2% 3,779 14.8% 3,213 3 213 12.5% 175 4,983 19.5% 19 5% 151 372 41 4,419 4 419 747 3 3,670 14.3% 14 3% 3,670 3,678 15.0% 14.6% 15.0% -4.2% 17.4% 215.0% 17.6% 17 6% 30.7% -9.0% 18.5% 13.9% 13 9% 7.7% 10.2% 10 2% 16.8% 16 8% 84.8% 21.4% YoY (%) 16.9%

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CONSOLIDATED BALANCE SHEET

in Rs. million Sources Of Funds Shareholders' Fund: Share Capital Reserves & Surplus Minority Interest Loan Funds: Secured Loans Unsecured Loans U dL Deferred Tax Liability TOTAL Application of funds: Fixed Assets: Gross Block less: Depreciation Net block Capital WIP Investments Current Assets,Loans & Advances Inventories Sundry Debtors Cash & Bank balances Loans & Advances Less: Current Liabilities and Provisions: Current Liabilities Provisions Net Current Assets N tC tA t Miscellaneous Expenditure Deferred Tax Assets TOTAL As on Dec 31, 2010 As on Dec 31, 2009

1,741 11,881 11 881 13,620 41 6,573 856 1,032 1,075 1 075

866 7,939 7 939 8,805 83

7,429 7 429 174 21,260

2,107 2 107 123 11,120

13,729 4,278 9,451 414 , 1,201 5,446 2,689 6,364 5,162

9,253 3,378 5,875 593 2,588 , 4,373 2,135 1,514 3,760

19,661 6,087 4,306 10,393 9,268 9 268 930 21,260

11,782 6,526 3,250 9,776 2,006 2 006 56 11,120

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Investor Relations Dabur India Ltd Contact:+91-11-42786000

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