INVESTOR PRESENTATION - February 2019 - Marico
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INVESTOR PRESENTATION
February 2019
DISCLAIMER
This investor presentation has been prepared by Marico Limited (“Marico”) and does not constitute a prospectus or placement memorandum or an offer to acquire any
securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should not be deemed to constitute an offer.
No representation or warranty, express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of such
information or opinions contained herein. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may
not be based on historical information or facts and may be “forward looking statements”, including those relating to the general business plans and strategy of Marico, its
future financial condition and growth prospects, future developments in its industry and its competitive and regulatory environment, and statements which contain words
or phrases such as ‘will’, ‘expected to’, ‘horizons of growth’, ‘strong growth prospects’, etc., or similar expressions or variations of such expressions. These forward-looking
statements involve a number of risks, uncertainties and other factors that could cause actual results, opportunities and growth potential to differ materially from those
suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to risks with respect to its hair care, its healthcare business and its
skin care business.
Marico may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes. This
presentation cannot be copied and disseminated in any manner.
No person is authorized to give any information or to make any representation not contained in and not consistent with this presentation and, if given or made, such
information or representation must not be relied upon as having been authorized by or on behalf of Marico.
Investor Presentation | February 2019 2 < Previous | Next >
TABLE OF CONTENTS
• Company Overview………………… 4
• Strategy Framework……………….. 14
• India Business…………………......... 17
• International Business……………... 31
• Key Areas of Transformation…........ 38
• Financial Highlights………………… 51
• Sustainability …………………......... 54
• Stock Information………………...... 61
• Awards & Accolades ………….......... 63
Investor Presentation | February 2019 3 < Previous | Next >
COMPANY OVERVIEW Investor Presentation | February 2019 4 < Previous | Next >
MARICO AT A GLANCE
One of India’s leading Consumer Products companies operating in the Beauty & Wellness space.
25+ Years $ 6.7 bn. 26%
Operating since 1990 Market Capitalisation as on 31 January 2019 Total Shareholder Return CAGR since
listing in 1996
15,750
INR 6,333 cr. INR 814 cr.
($ 982 mn.) ($ 126 mn.)
FY18 Revenue FY18 Net Profit 100
16% 24% 1996 2017
Top-line CAGR since inception Bottom-line CAGR since inception
INR 100 invested in
Marico in 1996 was
22% 95% worth INR 15,750 on
Revenues from International Business % of Market leading (No. 1 or No. 2 ) brands March 31, 2018
Investor Presentation | February 2019 5 < Previous | Next >
INTERESTING FACTS
Parachute
World’s largest coconut oil brand
2,348 >5,000
Population of towns
Size of Company workforce largely covered by Marico’s
distribution network 1 out of 10
Coconuts grown in India
are used by Marico
50% 185+ million
of our talent in consumer facing
functions in Technology and Households touched every month
Marketing are women
155+ million
Packs sold every month
56% 1 out of 3
of the total workforce are millennials Indians’ lives is touched by Marico
11
acquisitions in 12 years
Investor Presentation | February 2019 6 < Previous | Next >
MILESTONES IN MARICO’S JOURNEY SO FAR
Harsh Mariwala, a young Harsh discovers the Marico launches First overseas
Nihar enters
graduate, joins the family ubiquitous Parachute Hair & Care, non- manufacturing facility
Marico’s fold
business blue bottle sticky hair oil in Bangladesh
1971 1974 1980 1990 1991 1996 1999 2002 2006
Harsh envisions a branded 2nd April 1990 – Marico lists on the Marico enters Skin Care
FMCG market for coconut and Marico is born Indian Stock Exchanges solutions – Kaya is born
refined edible oils
Marico Bangladesh Marico enters Kaya Skin Care Investment in Startup
lists on Dhaka Stock Vietnam through demerged Ecosystem - Beardo and
Exchange acquisition of ICP
Revofit
2006-07 2009 2010 2011 2012 2013 2014 2017-18
Marico enters Egypt and Marico introduces Marico acquires Livon & Harsh steps down as MD
South Africa through Saffola Breakfast Set Wet and Saugata Gupta takes
acquisitions over
Investor Presentation | February 2019 7 < Previous | Next >
PORTFOLIO : BEAUTY & WELLNESS
Coconut Oil Leave-in Hair Healthy Foods Male Grooming
Nourishment
• Parachute • Parachute Advansed • Saffola • Set Wet
• Nihar Naturals • Nihar Naturals • Parachute Advansed
• Oil of Malabar • Hair & Care Men
• Livon
Investor Presentation | February 2019 8 < Previous | Next >
GEOGRAPHICAL PRESENCE
Marico aspires to be a leading emerging MNC with a leadership position in the two core categories of Nourishment and Male
Grooming in its chosen markets in Asia and Africa.
South India
Africa
Middle South
East & East Asia
North
Bangladesh
Africa
The Company also exports its products to markets in the Indian-sub continent such as Nepal, Bhutan & Sri Lanka as well as
Indian diaspora markets across the globe.
Investor Presentation | February 2019 9 < Previous | Next >
BOARD OF DIRECTORS
Mr. Harsh Mariwala Mr. Saugata Gupta Mr. Ananth Narayanan
Chairman & Non-Executive Director Managing Director & CEO Additional (Independent) Director
Mr. B. S. Nagesh Ms. Hema Ravichandar Mr. Nikhil Khattau
Independent Director Independent Director Independent Director
Mr. Rajeev Bakshi Mr. Rajen Mariwala Mr. Rishabh Mariwala
Independent Director Non-Executive Director Additional (Non-Executive) Director
Investor Presentation | February 2019 10 < Previous | Next >MANAGEMENT TEAM
Mr. Saugata Gupta Mr. Ashish Joshi Mr. Amit Prakash Mr. Gaurav Mediratta
Managing Director & CEO Chief Operating Officer, SE Asia, Middle Chief Human Resources Executive Vice-President
East & Africa Business Officer & Head - Legal
Mr. Jitendra Mahajan Mr. Koshy George Mr. Sanjay Mishra
Chief Operating Officer – Chief Marketing Officer Chief Operating Officer -
Supply Chain & IT India Sales & Bangladesh Business
Dr. Sudhakar Mhaskar Mr. Vivek Karve
Chief Technology Officer Chief Financial Officer
Investor Presentation | February 2019 11 < Previous | Next >CORE VALUES
Our value system in 3 simple words – “Make A Difference”.
Boundarylessness Opportunity Innovation Transparency Consumer Bias For Excellence Global
Seeking & Openness Centric Action Outlook
Our values form the base of our unique culture and is the guiding force behind our actions.
Investor Presentation | February 2019 12 < Previous | Next >LIVING MARICO’S PURPOSE
“To transform in a sustainable manner, the lives of those we touch,
by nurturing and empowering them to maximise their true potential.”
CUSTOMERS
SHAREHOLDERS
SOCIETY
MEMBERS
BUSINESS
ASSOCIATES
Investor Presentation | February 2019 13 < Previous | Next >STRATEGY FRAMEWORK Investor Presentation | February 2019 14 < Previous | Next >
CHOICE MAKING FRAMEWORK - WHERE TO PLAY
Per Capita Population Maturity Retail
Income
Emerging Economies with Large Young Population – Low Penetration in our chosen High Proportion of Traditional
Lower but Fast Growing Per Demographic Dividend categories. Lower Intensity of Retail
Capita Income Competition from MNCs
Investor Presentation | February 2019 15 < Previous | Next >INORGANIC GROWTH OPPORTUNITIES - PLAYBOOK
Key Attributes
Select
Hair Male Existing Markets in
Categories
Nourishment Grooming
Markets
Markets Asia and
New Markets
Africa o Market Leader Brand
o Strong Distribution
Past Acquisitions/Strategic Investments
2006 2007-08
Existing Markets
o Helps Build Scale ->
Consolidate Market
2010 2011
o Broaden the Portfolio
o Accelerate Category
Leadership
2012 2017-18
o Entry in New Category
o New Capabilities
Investor Presentation | February 2019 16 < Previous | Next >INDIA BUSINESS Investor Presentation | February 2019 17 < Previous | Next >
MACRO-ECONOMIC OVERVIEW
o India remains the fastest growing economy in the world -
economic fundamentals are strong, and reform momentum
India is ranked 100
continues. India’s sovereign in World Bank’s
credit rating Baa2 ‘Ease of Doing
o India is estimated to surpass USA to become the 2nd largest with a ‘Stable’ Business’ Index
outlook
economy in terms of purchasing power parity (PPP) by the
year 2040. (Source: PWC Report, 2017)
o India is expected to be 3rd largest consumer economy as its Fiscal Deficit (% of GDP)
consumption may triple to US$ 4 trillion by 2025. (Source: 4.5% 4.3%
5.0 %
4.0%
4.5 %
3.5% 3.2% 3.3%
BCG Report, 2017) 4.0 %
3.5 %
3.0 %
2.5 %
2.0 %
1.5 %
1.0 %
India Real GDP Growth (%) 0.5 %
0.0 %
FY14 FY15 FY16 FY17 FY18E FY19E
8.0% 8.2%
7.5%
9.0 %
8.0 % 7.1% 6.7% Nominal GDP Per Capita (USD)
7.0 %
6.0 %
180 0.0
1,403 1,539
5.0 %
160 0.0
1,179 1,287
4.0 % 140 0.0
120 0.0
946 1,058
3.0 %
100 0.0
2.0 %
800 .0
600 .0
1.0 %
400 .0
0.0 %
200 .0
2014 2015 2016 2017 2022E
0.0
FY14 FY15 FY16 FY17 FY18E FY19E
Source: IMF, GOI, World Bank
Investor Presentation | February 2019 18 < Previous | Next >FMCG SECTOR OVERVIEW
o FMCG is the 4th largest sector in the Indian economy.
o FMCG Sales in India - Household and Personal Care -> 50 % and Food and Beverages ->19%. Hair Care constitutes 23%.
o Rural India accounted for 60 per cent of the total FMCG market in FY17.
o Total rural income, which is currently at around US$ 572 billion, is projected to reach US$ 1.8 trillion by FY21. India’s rural per capita
disposable income is estimated to increase at a CAGR of 4.4 per cent to US$ 631 by 2020.
o Growth in Modern trade is surpassing growth of general trade. Source: IBEF, February 2018
FMCG Market in India (US$ billion) Total Consumption Expenditure (US$ billion)
CAGR 23%
CAGR 20%
3,600
104
1,596
49
2016 2020F 2016 2020F
Investor Presentation | February 2019 19 < Previous | Next >INDIA BUSINESS OVERVIEW
India Business Revenue (in INR cr.) India Business EBITDA (in INR cr.)
CAGR 10% CAGR 15%
Share of Group
Revenues
78%
2012 2018 2012 2018
MEDIUM TERM EXPECTATIONS
Revenue Operating
Volume Growth Growth Margins
13-15%
8-10% (depending on
20%+ levels
inflation)
Investor Presentation | February 2019 20 < Previous | Next >COCONUT OIL
Market : ~INR 55 bn*
(~USD 775 mn) Only Player with Nation-wide Reach – Dominant Market Leader
Parachute 50%
Nihar 8%
Oil of Malabar 1%
Total Volume Share ~59%
Parachute Nihar Oil of Malabar
~5% 30-35% ~44%
Last 5 Year Volume CAGR Estimated % of the Market (in volumes) FY18 India
in Parachute Rigid packs selling coconut oil in loose/unbranded Business Revenue
form Share
Likely Medium Term Volume Growth: 5-7%
Headroom for Growth Conversion from loose to branded Drive penetration in rural Gain share from unorganised
*Market size as per latest management estimates. Market Shares - AC Nielsen - December 2018 MAT
Investor Presentation | February 2019 21 < Previous | Next >VALUE ADDED HAIR OILS (1/2)
Market : ~INR 78 bn
(~USD 1.1 bn)
25% 26% 14% 2%
18% 15%
Not present
Light Hair Oils Amla Oils Value Added Cooling Oils Anti-Hair Fall Others
Coconut Oils
Likely Medium Term Volume Growth – Double Digit
Likely to see sustained growth Market Leader in Hair Oils FY18 India
~ 34% Volume Share & ~ 26% Value Share Business
One of the fastest growing • 5 year volume CAGR in VAHO ~ 9% Revenue Share
amongst all large entrenched
categories in India • Nihar Naturals Shanti Amla Badam – Volume
Market Leader in Amla Oils ~26%
*Market Shares – AC Nielsen - December 2018 MAT
Investor Presentation | February 2019 22 < Previous | Next >VALUE ADDED HAIR OILS (2/2)
Belief in benefits of Leave-in v/s Rinse-off solutions
Improves
Reduces
Reduces Softens Improves Thickness,
Protein
Breakage Hair Shine Strength And
Loss
Length
Over the years, with economic growth, consumers have been upgrading
Base Oils Better Sensorials Functional Benefits
Category Play : Product Proposition based on Sensorial /Functional Benefits; Tremendous Potential for Further Innovation
Drive Premiumisation Promote Dual Usage Expanding rural reach Packaging Innovations
Investor Presentation | February 2019 23 < Previous | Next >HEALTHY FOODS - SAFFOLA
Evolution from an edible oil brand to a leading healthy lifestyle brand
o On the back of rising incomes and increasing relevance of healthy living
~20%
FY18 India
o Extension of brand equity into Healthy Foods for breakfast and in-between meals in 2010. now a
Recently launched Meal Replacement Nutri-shakes and High-Fibre Soups.
Business Revenue
Share
Likely Medium Term Volume Growth – Double Digit
~70% Volume Market Share ~70% Value Market Share
Leader in Super Premium Refined Edible Oil segment Leader in Value Added Oats segment
*Market Shares – AC Nielsen – December 2018 MAT
Investor Presentation | February 2019 24 < Previous | Next >PREMIUM HAIR NOURISHMENT
Market : ~INR 1.1 bn
(~USD 17 mn)
Likely Medium Term Value Growth: Mid-Teens
o Tail wind category with low penetration
o Focus on driving category growth through ~76% Volume Market Share ~1 %
innovation and consumer engagement Leader in Leave-in Hair Conditioners India Business
o Key Channels: Specialty Modern Trade and E-
segment Revenue Share
Commerce Channels
*Market Shares – AC Nielsen – December 2018 MAT
Investor Presentation | February 2019 25 < Previous | Next >MALE GROOMING
o Marico acquired Set Wet in May 2012
o Tail wind category with low penetration
o Caters to millennials – therefore huge growth potential
Hair Gels/ Creams Deodorants
Market: INR 2.7 bn (~USD 42 mn) Market: INR 21.8 bn (~USD 338 mn)
Likely Medium Term Value Growth: Mid-Teens
Medium Term Strategy
~62% Value Market Share o Growing the market through continuous product and marketing
innovations
~3 %
Leader in Hair Creams/Gels India Business
o Leveraging the widespread distribution network and gain access to
segment cosmetics/chemist outlets Revenue Share
*Market Shares – AC Nielsen – December 2018 MAT
Investor Presentation | February 2019 26 < Previous | Next >STRONG DISTRIBUTION NETWORK
OVERALL REACH: 4.9 MILLION OUTLETS OUT OF 10.1 MILLION OUTLETS – HUGE HEADROOM FOR GROWTH
Channel Split: Modern Trade (includes E-Commerce) has
Urban – Rural Split : Rural sales up from 26% in FY10 to 32% in
outpaced the other channels. E-Commerce, currently at ~1%,
FY18.
is expected to be more than 2% of the India Business by FY19.
85% 74%
81% 68%
32%
26%
7% 8% 12% 7%
FY12 FY18 FY10 FY18
General Trade Modern Trade & E-Commerce CSD Urban Rural
Direct Reach: ~900,000 outlets Increased by ~220,000 outlets
Initiatives in place to increase the reach. over the last 5 years.
Project ONE – Targeting direct coverage
Leveraged technology coupled with
increase in top 20 towns (Incremental Turnover
robust IT Infrastructure to drive impact
~INR circa 88 crores in FY 2017)
Investor Presentation | February 2019 27 < Previous | Next >ADVERTISING : CRISP MESSAGING THROUGH POPULAR PERSONALITIES Investor Presentation | February 2019 28 < Previous | Next >
BRANDS WITH A PURPOSE
o Nihar Shanti Amla “Chhote Kadam Pragati Ke Aur”
o Saffolalife “Chhote Kadam – Dil ke Bade Kaam ke”
o Promoting healthy recipes by engaging with the
consumer via “Fitfoodie.com”
Investor Presentation | February 2019 29 < Previous | Next >STRATEGY
INDIA STRATEGY: 4 KEY PILLARS
New Engines
Grow the Core of Growth: Strengthen Drive ‘One Marico’
Execution Synergies by
Portfolio Expansion Capabilities Leveraging
in Existing and New Centers of
Markets Excellence
Investor Presentation | February 2019 30 < Previous | Next >INTERNATIONAL BUSINESS Investor Presentation | February 2019 31 < Previous | Next >
MACRO-ECONOMIC OVERVIEW
BANGLADESH AND VIETNAM ON A FIRM FOOTING. HOPEFUL OF RECOVERY IN MENA AND SOUTH AFRICA.
GDP Per Capita Projected Inflation Rate GDP Per Capita Projected Inflation Rate
$1,083 $1,292 by 2020 5.6% $1,850 $2,091 by 2020 3.2%
Bangladesh Vietnam
7.5 6.7 6.7 7
7.2
7.1 6.7 7 6.5 6.5
6.4 6.7 6.5 6.5
6.5 6.2 6
6.6
6 5.5
FY2015 FY2016 FY2017 FY2018e FY2019e FY2020e FY2015 FY2016 FY2017 FY2018e FY2019e FY2020e
GDP Growth (%) GDP Growth (%)
Recovery in Oil prices & Increase in Purchasing Power likely to GDP Per Capita Projected Inflation Rate
overturn their fortune by 2020. $7,417 $7,156 by 2020 5.0%
MENA (Middle East & North Africa) South Africa
6.0 1.7 2
5.0 1.3 1.7
3.0 4.0
1.8 3.2 0.3 1.1 1
2.8 3.2 2.0 0.8
0.0 0
FY2015 FY2016 FY2017 FY2018e FY2019e FY2020e FY2015 FY2016 FY2017 FY2018e FY2019e FY2020e
GDP Growth (%) GDP Growth (%)
Source: World Bank
Investor Presentation | February 2019 32 < Previous | Next >MARICO INTERNATIONAL
Share of International Business Revenues (%) International Business Revenues (in INR cr.)
1,345 1,356 1,364
1,284
FY10 53% 33% 11% 3% 1,168
1,008
FY18 45% 14% 9% 26% 6%
Bangladesh MENA South Africa South East Asia Others
FY13 FY14 FY15 FY16 FY17 FY18
MEDIUM TERM EXPECTATIONS
Share of Group
Revenues Likely Organic Growth : 12-15% (constant currency)
Operates in geographic hubs leading
22% to supply chain and media synergies Maintain Operating Margin at 16-17%
Investor Presentation | February 2019 33 < Previous | Next >INTERNATIONAL PORTFOLIO
Bangladesh Vietnam Middle East South Africa Egypt
45% 22% 10% 9% 4%
Categories : Coconut Oil, Categories: Male Categories : Coconut Oil Categories : Ethnic Hair Categories : Male Styling
Hair Nourishment, Hair Grooming & Foods & Hair Nourishment Care & OTC Health Care
Colors & Male Grooming Brands: Hair Code &
Brands : X-Men, Thuan Brands: Parachute, Brands : Caivil, Black Fiancee
Brands : Parachute, Phat Parachute Secrets, Chic, Just for Kids,
Parachute Advansed, Parachute Gold Hercules
Hair Code, Set Wet,
Saffola, Livon
Emerging Markets of Asia & Africa
Investor Presentation | February 2019 34 < Previous | Next >INTERNATIONAL PORTFOLIO - BRANDS
X-Men - Vietnam Thuan Phat - Vietnam Parachute Gold – Middle East & Egypt
Parachute, VAHO and Hair Colours - Bangladesh Hair Code & Fiancee - Egypt
Caivil, Black Chic, Hercules & Ingwe – South Africa Code 10 – Malaysia & Myanmar
Investor Presentation | February 2019 35 < Previous | Next >MARKET-WISE FOCUS AREAS
Bangladesh Vietnam Middle East South Africa Egypt
45% 22% 10% 9% 4%
• Leverage distribution • Grow market in male • Gain back lost share in • Build Scale in South • Grow core market
network shampoo/shower gels hair oils, creams/gels Africa
• Establish Value Added
Hair Oils
• Grow Value Added • Gain share in male • Return to profitability • Expand in East Africa
Hair Oils deodorants • Expand into North
Africa
• Introduce products • Extend into other SEA
• Improve Direct Reach
from India portfolio countries
Gain scale by leveraging common product platforms
Investor Presentation | February 2019 36 < Previous | Next >STRATEGY
INTERNATIONAL STRATEGY: 3 KEY PILLARS
Scale Up Male Drive ‘One Marico’ Build Execution
Grooming and Synergies by Capabilities in Sales,
Nourishment Leveraging Marketing and
Platforms Centers of Excellence Supply Chain with
Tight Cost
Management
Investor Presentation | February 2019 37 < Previous | Next >KEY AREAS OF TRANSFORMATION Investor Presentation | February 2019 38 < Previous | Next >
KEY AREAS OF TRANSFORMATION
INNOVATION GO TO MARKET TALENT VALUE IT & ANALYTICS VALUE
STRATEGY PROPOSITION & MANAGEMENT
CULTURE
Investor Presentation | February 2019 39 < Previous | Next >INNOVATION – PREMIUMISE WITHIN CORE HAIR OILS
Parachute Advansed Aloe Vera Enriched Coconut Hair Oil
Nihar Naturals Extra Care Hairfall Control Oil
Hair & Care Dry Fruit Oil
Investor Presentation | February 2019 40 < Previous | Next >INNOVATION – BUILDING CATEGORIES OF THE FUTURE
Premium Personal Care Healthy Foods Male Grooming
Parachute Advansed Saffola FITTIFY Gourmet Set Wet
Livon Coco Soul Set Wet Studio X
True Roots
Kaya Youth O2
Investor Presentation | February 2019 41 < Previous | Next >INNOVATION – PREMIUM HAIR CARE
Su stai n Hai r O il in g Hab it S o lu ti o n to Un me t Co nsu m er Ne ed s Address Varying Ne eds
Livon Serum for Dry Livon Serum
Pre-Wash Hair Nourisher
and Unruly Hair Colour Protect
True Roots Botanical Hair
Tonic
Intense Nourishment Serum Oil
Livon Shake and Spray Serum
Shampoo
Investor Presentation | February 2019 42 < Previous | Next >INNOVATION – PREMIUM SKIN CARE
Kaya Youth O2 Skin Care Range – Face Wash | Day Cream | Micellar Water | Face Wipes
Investor Presentation | February 2019 43 < Previous | Next >INNOVATION – BROADEN AND SCALE-UP OF HEALTHY FOODS PORTFOLIO
Green Coffee Moringa Green Tea
(5 Flavours) (6 Flavours)
Virgin Coconut Oil (including infused versions)
Peanut Coconut Butter
Coconut Sugar
Coconut Spread
Hi-Protein Slim Meal-Shake Hi-Protein Meal-Soup Coconut Chips
(7 Flavours) (3 Flavours)
Investor Presentation | February 2019 44 < Previous | Next >INNOVATION – EXTEND INTO COMPLETE RANGE IN MALE GROOMING
Set Wet Global Edition Set Wet Go Pocket
Set Wet Studio X Range
Perfume Sprays Perfume Spray Set Wet Waxes
Investor Presentation | February 2019 45 < Previous | Next >INNOVATION – DIVERSIFY PLAY IN KEY INTERNATIONAL MARKETS
Parachute Advansed Petroleum Jelly in Bangladesh
‘Parachute Just for Baby’
Baby Skin Care range in
Bangladesh
‘Sedure’ Female Grooming range in Vietnam
Investor Presentation | February 2019 46 < Previous | Next >GO-TO-MARKET : BUILDING FUTURE-READY DISTRIBUTION
Leverage IT & Analytics
• PDAs, ISRO, RETINA
New-Age & Specialty Channels
• Specialist GT, Modern Trade, E-
Commerce
Distribution Expansion
• Direct Reach & Wholesale
Investor Presentation | February 2019 47 < Previous | Next >TALENT VALUE PROPOSITION & CULTURE
Early Empowerment
Tapping global resources for Learning & Development
Young Board & Reverse Mentoring
Deploying Artificial Intelligence
Seeding “Engine 2”
Investor Presentation | February 2019 48 < Previous | Next >IT & ANALYTICS
Digitize
Operations
AUTOMATION LISTEN
ANALYTICS INTEGRATED
CONSUMER REACH End
EXPERIENCE Consumers
SELL ENGAGE
Innovate
Business INNOVATE
Models
~15% of Media Spends is now invested in the Digital Medium
Investor Presentation | February 2019 49 < Previous | Next >VALUE MANAGEMENT - A VIRTUOUS CYCLE
MarVal
Volume Value Based
Growth Pricing
₹
Reinvest in Improve Spend
S&M Efficiency
Improve Gross
Margins
Investor Presentation | February 2019 50 < Previous | Next >FINANCIAL HIGHLIGHTS Investor Presentation | February 2019 51 < Previous | Next >
5 YEARS TRENDS
Revenues & EBITDA Margin PAT & PAT Margin
13.5% 12.9%
19.5% 11.8%
17.5% 18.0%
16.0% 15.2% 10.4% 10.0%
4,687 5,733 6,024 5,936 6,333 485 573 711 799 814
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18
Revenue (in INR cr.) EBITDA Margin (%) PAT (in INR cr.) PAT Margin (%)
Net Worth and RONW Capital Employed and ROCE
36.0% 37.0% 36.8% 46.8%
33.5% 45.1%
30.1% 41.7%
38.7%
30.4%
1,361 1,825 2,017 2,326 2,543 2,086 2,274 2,386 2,600 2,874
FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18
Net Worth (in INR cr.) RONW (%) Capital Employed (in INR cr.) ROCE (%)
Investor Presentation | February 2019 52 < Previous | Next >DIVIDEND PAYOUT & CASH DEPLOYMENT
Focus on maximization of shareholder value
Payout has been increasing over the years with higher cash generation
FY2013 FY2014 FY2015 FY2016 FY2017 FY2018
Dividend Payout Ratio 19% 24% 30% 70% 64% 78%
With focus on organic growth, dividend pay-out shall remain in 60-65% range in the medium term.
The Company declared a one-time Silver Jubilee Third Interim Dividend of 175% and a total dividend of 350% in FY14. The dividend payout
ratio increased to 47% in FY14 as compared to 19% in FY13. Excluding the one-time dividend, the payout ratio for FY14 is 24% which is
reflected in the table above.
Investor Presentation | February 2019 53 < Previous | Next >SUSTAINABILITY Investor Presentation | February 2019 54 < Previous | Next >
KEY FOCUS AREAS AND 2022 TARGETS
RESPONSIBLE RESOURCE PRODUCT RESPONSIBILITY
CONSUMPTION • Ensure adherence to all consumer health and
• Reduce energy intensity by 50% safety standards and compliance
• Water Stewardship - Offsetting 100% of water
consumed in operations
CLIMATE CHANGE COMMUNITY DEVELOPMENT
• Reduce GHG emissions intensity by 75% • Increase farmer beneficiaries year on year by 5%
• Influence 2,00,000 children y-o-y for education
SUSTAINABLE SUPPLY CHAIN FUTURE READY CAPABILITY
• Certify 20% of critical suppliers for Level 1
criteria of Marico’s Responsible Sourcing (MARS)
BUILDING
• Drive competency building programs based on
Policy
current needs
Investor Presentation | February 2019 55 < Previous | Next >IMPACT TILL DATE (1/4)
Marico’s environmental agenda is to achieve resource efficiencies and reduce the impact of our operations on the environment
ENERGY EMISSIONS
Achieved 31% reduction in 72% of total energy sourced in Achieved 54% reduction in GHG
We account Scope I and II GHG
Energy Intensity from FY2013 our operations is from emission intensity from FY2013
emissions from our operations
baseline renewable sources baseline
Investor Presentation | February 2019 56 < Previous | Next >IMPACT TILL DATE (2/4)
WATER SUSTAINABLE PACKAGING
We have adopted the 3R approach – Reduce, Recycle and Replenish
• We have implemented plastic EPR action plan in-line with CPCB
Marico has undertaken requirement.
initiatives like construction of In FY2017-18, we offset 80% of • About 93% of plastics used in our packaging is recyclable
farm ponds, check dams and our operations water • Executed project to convert 12.5 MT of community plastic waste into
dam de-silting, and created consumption through polyfuel.
harvest capacities about 300 community harvest initiatives • We are exploring opportunities to use recycled plastic for packaging and
million litres till date hence replace virgin plastic
Investor Presentation | February 2019 57 < Previous | Next >IMPACT TILL DATE (3/4)
FARMERS MARICO INNOVATION FOUNDATION (MIF)
Marico flagship program: Conducted 100+ farmer
KALPAVRIKSHA launched in trainings and about 12,626
2017 – has improved coconut farmers enrolled under the MIF aims to nurture innovation MIF Scale Up program has tackled
farmer’s yield by 16%. program till date in India across business and 25+ business challenges till date
social sectors alike across 13+ sectors
The program aims to increase farmer income by INR 5 billion by 2022
and INR 10 billion by 2027.
Investor Presentation | February 2019 58 < Previous | Next >IMPACT TILL DATE (4/4)
BRANDS WITH A PURPOSE EDUCATION
“Saffolalife” continues with the vision of creating a Heart Healthy India.
• We have touched the lives of nearly 200,000 consumers through “Nihar Mobile Pathshala”
Nihar has contributed to the
health check and awareness camps till date. houses quality education
education of 860,825
• The School Outreach Program – Safe and Nutritious Food at Home content to influence education
children in the last 5 years.
touched the lives of ~68,000 students. of underprivileged children
Investor Presentation | February 2019 59 < Previous | Next >EXTERNAL RATINGS
Marico has been rated by MSCI ESG Ratings from 2015 onwards.
Our 2018 rating stands at ‘A’.
A
BBB BBB
BB
2015 2016 2017 2018
Marico has submitting its first Marico is preparing for Dow Jones
response to CDP’s “Climate Change” Sustainability Indexes (DJSI)
& “Water” 2018 questionnaire rating disclosure
Investor Presentation | February 2019 60 < Previous | Next >STOCK INFORMATION Investor Presentation | February 2019 61 < Previous | Next >
STOCK INFORMATION
Top Institutional Shareholders Stock Data
First State Investments Premji Invest Bloomberg Ticker MRCO IN EQUITY
BSE Ticker 531642
Arisaig Partners BlackRock
NSE Ticker Marico
Morgan Stanley Investment Mgmt. Wellington Management
Market Capitalization (INR Cr.) – January 2019 47,331
Life Insurance Corporation of India Franklin Templeton Mutual Fund No. of Shares Outstanding (Cr.) 129.09
Shareholding Pattern – December 2018 Relative Stock Chart – 2002-2018
3.97% 4.3%
12000
4.47%
10000
Indexed to 100
8000
6000
26.44% 4000
59.71%
2000
1.15% 0
2006
2002
2003
2004
2005
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Promoters Banks/FI/Insurance Cos.
FIIs Mutual Funds Marico BSE FMCG Index
Individuals (incl NRIs) Others
Investor Presentation | February 2019 62 < Previous | Next >AWARDS & ACCOLADES Investor Presentation | February 2019 63 < Previous | Next >
AWARDS & ACCOLADES
Featured among the Top 5 Companies in the Ranked 32nd in India's Best Companies Featured as one of the "Best
S&P BSE 100 Index in Corporate Governance to Work For in 2018 Workplaces in Manufacturing 2019”
Marico CQA Team received Special
Recognized as one of the ‘Most Honored Recognition at the Sixth CII National Awarded SAP ACE Award for
Companies’ by Institutional Investor Excellence Practice Competition 2018 Operation Excellence -Supply Chain
Investor Presentation | February 2019 64 < Previous | Next >MARICO LIMITED
CIN - L15140MH1988PLC049208
7th Floor, Grande Palladium
175, CST Road, Kalina, Santa Cruz (East)
Mumbai- 400 098
www.marico.com
More Websites:
www.artofoiling.com www.saffolalife.com
www.hairsutras.com www.saffolafittify.com
www.parachuteadvansed.com www.fitfoodie.in
www.livonilovemyhair.com www.setwet.com
www.truerootslab.com www.cocosoul.in
www.hairsutras.com www.maricoinnovationfoundation.org
www.pblskin.com
Investor Relations
Mr. Pawan Agrawal - Executive Vice-President and Head – Finance & Investor Relations - pawan.agrawal@marico.com
Mr. Harsh Rungta - Manager - Investor Relations – harsh.rungta@marico.comYou can also read
