#1NEW Dabur ALMOND HAIR OIL Dabur Amla Hair Oil Dabur Lal Tail Dabur The Science of Ayurveda Vatika PREMIUM NATURALS Fem Dabur Dabur Honitus HAJMOLA Dabur Chyawanprash Dabur Glucose-D Dabur Honey ODOMOS Investor Presentation November 2017 Gulabari MESWAK odonil Nature OXYLIFE Real Fruit Dabur RED PASTE Real activ#2Contents ➤ Ayurveda - Science of Life Dabur - Overview Business Structure India Business International Business The next growth wave Annexure Dabur 2#3Ayurveda - Science of Life What is Ayurveda? Salient features of Ayurveda 1 Heals by activating the natural inherent curative force of the body Dabur 2 Believes in complete cure and not only control of signs and symptoms "Ayur" + "Veda" = Science of Life 3 Gives more stress on why is the problem rather than what is the problem • Ayurveda is the traditional system of healthcare which promotes PREVENTION FIRST and CURE NEXT 4 Being natural, its relative safety is better than conventional chemical drugs • Based upon Natural Remedies which incorporate the healing properties of plants and herbs 5 Believes not only in restoration of Health, but also the dynamic internal balance 6 Holistic in nature and cures the patient as a whole and not the symptoms of disease alone 3#4Growing preference for Herbal/Ayurvedic products Dabur Dabur Honitur shChyawanprash 3 TIMES ATACIO -Mit-Official Home COACH DM Chanter Stat Micros Consumers are going herbal Daily Home Needs Sale The Cleaning Stove Dettol Store Get Star Hers Grooming Protex Stone The Health Store Women's Health & Peroral Care Offers & Deals in HPC No Time for Salon v Heath Care v Medical Supples & V Equipment General Personal Care v Sexual × Wel Why Ayurveda? Originating in 50008C, Ayurvedic solutions continue to help people live healthier lives by offering simple solutions to complex health issues. Explore more Shop by Product Type O Juices Chyawanprash TR 9 XB EN 1 - 640 2 3 Single herbs Classical formulations Others 4 Dabur Growth drivers Growing emphasis on natural regimes and desire for holistic lifestyles Increasing health awareness 'Back to roots': tradition / heritage gaining ground Concern about chemicals Consumers are gravitating towards herbal products not only in healthcare but also personal care segments Millennials moving towards natural & herbal products due I to their concerns about health & ill effects of chemicals Source: Euromonitor Note: Herbal/traditional market includes Ayurveda and Unani and excludes homeopathic remedies Companies with herbal traditions and deep product knowledge are better placed 4#5Dabur & Ayurveda Ayurveda = Dabur's Core Philosophy Dabur Synonymous with Ayurveda since 133 years Known for making Ayurveda accessible to every household in India Dabur The Science of Ayurveda Anchored by Heritage Stringent quality test of every ingredient and herb Propelled by Science Strong R&D infrastructure including in-house Ayurvedic doctors & scientists Over 4,000 acres of cultivation of endangered herbs and plants Governed by Trust 5#6Contents » Ayurveda - Science of Life Σ Dabur - Overview Business Structure India Business International Business The next growth wave Annexure Dabur 6#7Dabur - Overview Overview - Established in 1884 – 133 years of trust and excellence One of the world's largest in Ayurveda and natural healthcare Awards effie awards FORTUNE Dabur Dabur Vatika #BraveandBeautiful campaign wins 2 Effies Having one of the largest distribution network in India, covering 6 mn+ outlets 19 world class manufacturing facilities catering to needs of diverse markets Strong overseas presence with ~30% contribution to consolidated sales 500 IACC INDO-AMERICAN CHAMBER OF COMMERCE Business Leadership Awards Dabur moves up 4 Places in Fortune India 500 List; ranked 163 in the list for 2015 Dabur named Outstanding Indian Company in US, by Indo-American Chamber of Commerce INR:USD F/X Rate: 65.06 Market cap: US$ 9.2bn Best Companies For CSR in India Dabur ranked 25 in the list of Best Companies for CSR in India, according to the Economic Times GUIN WORLD ESS CORDS Dabur India successfully held the first- ever Guinness World Record attempt for the largest simultaneous Nasya Panchkarma Treatment session 7#8Key milestones Established by Dr. S.K. Burman in Kolkata Inducted professional management Acquired Balsara Acquired Hobi and Namaste Dabur Foods business crossed INR 10.0 bn turnover mark 1884 1994 1998 2000 2005 2008 2010 2012 2016 2017 Came out with first public issue Crossed the INR 10.0 bn turnover mark Acquired Fem Pharma Crossed the USD 1 bn turnover mark Market cap of $9.2 bn 8#9Strong financial profile (1/2) 84.4 78.1 76.8 61.5 70.7 FY13 FY14 FY15 FY16 Note: All figures are in INR bn, unless otherwise stated Sales FY17 (Ind AS) PAT Dabur Revenue declined due to: • . Shift to the new Indian Accounting Standards (IndAS) led to the restatement of financials Demonetisation led to reduced consumer demand for few months Currency devaluation in overseas markets PAT PAT margin (%) 16.60% 14.80% 13.70% 12.40% 12.90% 12.5 12.8 10.7 9.1 7.6 FY13 FY14 FY15 FY16 FY17 (Ind AS) 9#10Dabur Strong financial profile (2/2) Operating Profit Operating Profit -Operating Profit margin (%) Return on Invested Capital (ROIC) 19.80% 17.80% 43.60% 45.20% 16.30% 16.30% 16.90% 38.30% 15.2 14.9 13.2 11.6 10.0 ill 52.50% 47.90% High upfront capex towards new greenfield facility in Assam FY13 FY14 FY15 FY16 FY17 (Ind AS) FY13 FY14 FY15 FY16 Note: All figures are in INR bn, unless otherwise stated Shareholders' Funds 48.5 41.6 33.5 26.6 21.0 FY13 FY14 FY15 FY16 FY17 (Ind AS) FY17 (Ind AS) 10#11Manufacturing facilities 12 manufacturing locations in India Jammu Newai Alwar Silvasa Baddi Sahibabad Pantnagar Tezpur Katni Dabur 7 international manufacturing locations UAE Egypt Nigeria C⭑ Turkey Narendrapur Nasik Pithampur Sri Lanka Bangladesh Nepal 11#12Distribution network Urban Factory C&F GT Stockist MT Stockist Insti Stockist Retailer Wholesaler Consumer Retailer Consumer Consumer Rural Factory C&F Super Stockist Sub Stockist Retailer Consumer Distribution reach of 6 mn retail outlets; Cover over 40,000 villages directly Dabur 12#13Contents > Ayurveda - Science of Life Σ Dabur - Overview Business Structure India Business International Business The next growth wave Annexure Dabur 13#14Business structure Domestic (70%) Dabur India Ltd International (30%) Dabur Domestic FMCG (66%) Others Organic (4%) (69%) Acquired (31%) Note: Figures in brackets are based on FY17 revenue 14#15Contents > Ayurveda - Science of Life Σ Dabur - Overview Business Structure India Business International Business The next growth wave Annexure Dabur 15#16Sales by Business Vertical Domestic FMCG - Business Verticals¹ Key categories Revenue Domestic FMCG 1. Based on FY17 Revenue Category Contribution (FY17) Hair Care 22% Dabur Amla Hair Oil Healthcare (31%) Foods 19% Real Fruit P Key Brands Dabur Vatika PREMIL NATURALS NEW Dabur ALMOND HAIR OIL Dabur HOMMADE HPC (50%) Health Supplements Dabur 17% Honey Dabur Chyawanprash Oral Care Dabur Foods (19%) 16% RED PASTE Dabur OTC & Ethicals 9% Dabur Lal Tail Others 17% odonil Nature Dabur Babool TOOTHPASTE MESWAK Dabur Honitus Odomos Dabur QUALITY SEAL 16#17Market leader in 6 categories Leading position in key categories across verticals #Relative Competitive Position¹ Dabur #1 #1 #2 #2 #2 #3 #1 #2 #1 #1 #1 Honey Chyawanprash Baby Glucose Hair Oils Oral Care Massage Oil Skin Care - Bleaches Toilet Cleaners Air Fresheners Mosquito Juices Repellant Creams Healthcare 1. Position basis Nielsen Market Share data MAT Mar'17 Home and Personal Care Foods 17#18Continue to build bigger brands 10 bn+ Real Fruit Power Dabur Amla Hair Oil Dabur Vatika PREMIUM NATURALS Dabur Dabur Lal Tail 1 bn+ Dabur Dabur Gulabari Honey Dabur RED PASTE Fem AUTHENTIC ATREVIDA डाबर Dabur Chyawanprash HAJMOLA Dabur Glucose-D odonil Nature लाल मंजन Dabur Babool TOOTHPASTE ORS FORMERLY ORGANIC ROOT STIMULATOR" HOBBY 16 brands with turnover of INR 1bn+ with 3 brands which are 10bn+ 18#19Business strategy Dabur Healthcare Leadership in Ayurveda - scientific evidence & research OTC portfolio to be scaled up through innovation & awareness creation Doctor advocacy through Medico Marketing channel • Home & Personal Care Ayurvedic / Herbal focus Premiumization & Differentiation Strong innovation agenda Potential to expand in adjacencies within current categories Foods Maintain leadership in Juices & Nectars category Leveraging the Fruit equity associated with the 'Real' brand Focus on 'Healthy' range of products 19#20Recent Innovations NEW Vatika Enriched COCONUT HAIR OIL in 4 weeks Vatika Enriched Coconut Hair Oil Dabur Anmol Jasmine Anmol Jasmine Hair Oil Dabur Woman FOR THOSE TOUGH DAYS Dabur Dabur Honey Ginger Honey 246min Tulsi INTELIN COUGH A COLD HEPS KONTORIST Dabur Women Restorative Tonic Dabur Vatika BLACK SHINE Vatika HEALTH SHAMPOO Vatika ANTI DANDRUFF SHAMPOO Vatika 14% EXTRA DORG Vatika Vatika Dabur Honey Tulsi & Ginger Dabur Vatika Shampoo with Satt Poshan Dabur Honitus HOT SIP Cough and Cold Remedy GRANULES SACHET-4g Fortified with 15 HERBS Just add to hot water, milk or tea. PRICE 25 20 Real Wellnezz amla plus NO ADDED PRESERVATIVES 100% JUICE CONTENT MAS APPLES INTRODUCTORY PRICE 19 Real 99 Wellnezz odonil Nature amla plus NO ADDED PRESERVATIVES 100% JUICE CONTENT AMLA APPLE JU DAYS Zipper Blissful Citrus Honitus Hot Sip LASTS UFTO DAYS odonil Nature Zipper Joyful Lavender Real Wellnezz Amla Odonil Zipper 20 20#21Project Buniyaad - Distribution enhancement Dabur Urban Strategy Leveraging potential through Channel based approach Rural Strategy Split the front line teams into two to increase reach and frequency - Showing significant positive gains Portfolio Focus Leveraging split teams for focused portfolio building Enabling Technology Using technology to track and improve performance and automate processes New Avenues of Growth Leveraging the alternate channels of MT and C&C to grow at a rapid pace Continue Engagement Using initiatives and technology to build and continuously motivate the trade and front line teams 21#22Project Lead - Doctor advocacy initiative Project Lead was initiated in 2015 with an aim to create the Doctor advocacy platform • • Building the detailing team - Started with 163 Medical Representatives, which is currently at 178; plans to increase to 230 by year end Both Ayurvedic and Allopathic doctors being covered - Number of doctors increased from 25,000 to 36,000 currently States covered - Initially Maharashta, UP and West Bengal; Bihar and Orissa have been added in current year Head of business inducted for Medical detailing and marketing Key Products (Project Lead) Dabur Stresscom Dabur Stresscom Honitus COUCH REMEDY Honitus COUGH REMEDY Dabur Honitus Cough Syrup Dabur ImuDab Dabur Hepano Dabur Dabur Hepano Debur Laxirid Dabur Laxirid Dabur ImuDab Dabur Lipistat Dabur Lipistat Woman • IT Platform and hand held devices for seamless information flow and detailing support for the medical reps Dabur Woman Restorative Tonic Dabur Chyawanpras Dabur Chyawanprash 22#23Contents > Ayurveda - Science of Life Σ Dabur - Overview Business Structure India Business International Business The next growth wave Annexure Dabur 23#24Business Overview Key markets NIN Middle East Saudi Arabia UAE Sales (INR bn) CAGR: 17% Dabur 27.1 23.1 24.2 23.2 18.3 16.2 8.9 Africa FY11 FY12 FY13 FY14 FY15 FY16 FY17 Egypt Nigeria Kenya South Africa (IndAS) C⭑ Europe Turkey UK Impacted by currency devaluation and shift to IndAS Region-wise sales (FY17) Americas 17% Middle East 31% Asia Nepal Pakistan Bangladesh Europe 13% Americas USA Asia Africa 19% 20% 24#25The Journey... Franchisee bought out in UAE and renamed Dabur International · 2003-06 Acquired Hobby Kozmetik In Turkey and Namaste Labs in USA Dabur 2007-10 2015-18 2011-14 2002 • Trading Model through a franchisee -Hair Oil was mainstay Expansion into Skin Care and Oral Care Localisation & expansion 25#26Organic International Business FY06 Oral Care. 2% Others 5% Hair Oil 93% FY17 Others Skin Care 5% 8% Oral Care 12% Hamamzaith & Styling 12% 14% Shampoo Hair Cream 12% Hair Oil 37% Organic International Business has evolved from being just a Hair Oil business to a diversified personal care entity Dabur 26#27Dabur Amla Dabur AMLA AMLA AMLA AMLA AMLA Hair Oils Variants Dabur AMLA AMLA Hair Oils 2003 AMLA GOLD Oldest brand in IBD portfolio Hair creams Styling products AMLA AMLA AMLA keratr fish oil snake Leave on Oils AMLA Shampoos & Conditioners Dabur AMLA LEAVE-ON OILS AMLA 27#28Vatika Vatika Vatika Naturals Vatika Vatika Vatika Vatika Vatika VHO EHO Hair Cream 2003 Vatika Vatika Vatika Largest brand in IBD portfolio Vatika Vitika Shampoo Vatika Vatika Conditioners Vatika Vatika Vatika Vatika Matka Vaka Vatika Hair Serum Dabur Vitikal Vitka Vatika Hair Colors Hair Gels 28#29Dermoviva DermoViva TM DermoViva DermoViva Dermoviva DermoViva Soaps Youngest brand in IBD portfolio DermoViva Creams Hand Wash Skin Serum Launched in 2011 Face Scrub Skin Lotions Wipes Face Wash DermoViva DermoViva Antibacterial Deep Cleansing Dermova Dermolive Dermoviva Toners DermoViva Make-Up DermoViva 29 Dabur#30Oral Care Dabur Herb'I NO FLUORIDE ⚫ NO HARMFUL CHEMICALS MISWAK HERBAL TOOTHPASTE WITH PURE AL-ARAK EXTRACT Herbal Dabur Herbal.com COMPLETE CARE PROTECT PROTECT Dabur MISWAK FREE 45 PAL PROMOTION P Dabur MISWAK FREE 20 GEL Doter ALSWAK Herbal Toothpaste 2006 Herbal dental care products range Miswak Dabur RED Dabur RED Herbal Toothpaste Herbal Gel Herbal GEL Herbal GEL Dabur Herb RTP FREE FREE Dabur Herb CLOVE FREE-FREE MINT GEMON Dabur Herb' FREE FREE Dabur Herbl Dabur Herb NEEM Mouthwash FREE BASIL FREE SALT LEMON MISWAK Dabur MISWAK Minis Fresh 30#31DermoViva Recent Innovations - IBD DermoVivo DermoVivo DermoViva Dermoviva Facial Fluid Range Vatika Vatika repair and restore moisture treatment Vatika hair fall control SHAMPOO Vatika nourish and protect Vatika dandruf quard يحافظ على الرهونة STRENGTHEN AND NOUSH Deling fill للحماية من تساقط الشعر الحماية من الكلية Vatika Shampoo Relaunch Vatika volume and thickness Dabur AMLA FOR MEN HAIR FALL DEFENDE ROOT STRENGTHENING STYLING HUR TONKS GINSENG & Amla Men Hair Tonic Demog DermoViva Baby OVE viched Powder FREE TOOTH BRUSH CH Herb'l OLIVE ENAMEL CARE DENTIFRICE AEOLIVE GEANTY SING TEEN HEALTHY GEMS FREE TOOTHBRUSH Dabur CAVITY PROTECTION STRONG TEEH HEALTHY GUMS( Herbal Olive Enamel Care Toothpaste Olive Baby Soap Naturals STYLING GEL Vatika STAND TOUGH STYLING GEL MEGA HOLD Dermoviva Baby Range- Olive Enriched Powder and Olive Baby Soap Vatika Stand Tough Styling Gel 31#32IBD - Business Strategy J Brands positioned on "Herbal and Natural” platform Product portfolio customized to local preferences Strong investments in brands and business Leveraging Digital platform to enhance consumer awareness and brand visibility Local supply chain & management offers strategic advantage Dabur 32#33Contents > Ayurveda - Science of Life Σ Dabur - Overview Business Structure India Business International Business The next growth wave Annexure 33 33 Dabur#34The next growth wave BF וד O H8 Build bigger brands More than 15 brands in the range of INR >0.1 to 1 bn which can grow to INR 1bn+ Dabur Continued Innovation NPD pipeline primed to deliver new products in key categories - 4-5 new products every year Driving distribution expansion Direct reach of 1 mn +, increasing the no. of SKUs, rural potential, IT enablement, data analytics Consumer Health Strong core competence, low competitive intensity, strong profitability, low penetration Geographical expansion Expand into overseas focus markets where our brands are relevant - MENA, Africa, SAARC 34#35Contents > Ayurveda - Science of Life Σ Dabur - Overview Business Structure India Business International Business The next growth wave Annexure Dabur 35#36Q2 FY18 - Consolidated Financials Revenue (INR cr) Profit After Tax (INR cr) 1,982 (1.1%) 1,958.9 1.3% 361.9 357.3 Dabur Q2 FY17 Q2 FY18 Although Consolidated revenue declined by 1.1% on reported basis, underlying GST adjusted constant currency growth was 8% Domestic business revenue grew by ~10% led by volume growth of 7.2% International Business grew by 3.9% on constant currency basis on the back of strong growth in Egypt, Nigeria and Turkey Currency devaluation in overseas markets resulted in significant loss in translation Q2 FY17 Q2 FY18 • Consolidated Profit After Tax (PAT) grew by 1.3%. One time transition impact of INR 10 crore impacted PAT growth ⚫ Other expenditure came down from 12.1% of sales to 10.8% of sales on the back of cost synergies Operating margin at 21.4% in Q2 FY18 vs 20.6% in Q2 FY17 although not comparable due to GST Although not comparable, PAT margin increased from 18.1% to 18.5% 36#37Shareholding, Market Cap and Dividends Shareholding pattern Market Cap (INR bn) Retail 5.5% DIIS FIIS 8.9% 17.6% Dividend history Promoters 68.1% 200% 175% 175% 150% 488 439 599 Dabur Mar-16 Mar-17 Nov-17 225% 225% 200% 175% 150% 130% 115% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 37#38Consolidated Profit & Loss (1 of 2) All figures are in INR crores, unless otherwise stated Revenue from operations Other Income Total Income Material Cost % of Revenue Q2 FY18 1,958.9 84.3 Q2 FY17 Y-O-Y (%) H1 FY18 1,981.6 (1.1%) 3,749.0 H1 FY17 3,933.8 Y-O-Y (%) (4.7%) 89.2 (5.5%) 165.6 150.3 10.2% 2,043.2 2,070.9 (1.3%) 3,914.6 4,084.1 (4.2%) 977.1 967.4 1.0% 1,891.7 1,928.8 (1.9%) 49.9% 48.8% 50.5% 49.0% Employee expense 203.7 215.8 (5.6%) 407.2 427.3 (4.7%) % of Revenue 10.4% 10.9% 10.9% 10.9% Advertisement and publicity 145.7 149.4 (2.5%) 295.7 345.9 (14.5%) % of Revenue 7.4% 7.5% 7.9% 8.8% Other Expenses 212.5 240.3 (11.6%) 425.6 474.3 (10.3%) % of Revenue 10.8% 12.1% 11.4% 12.1% Operating Profit 419.9 408.7 2.8% 728.8 757.5 (3.8%) % of Revenue 21.4% 20.6% 19.4% 19.3% EBITDA 504.2 497.9 1.3% 894.4 907.7 (1.5%) % of Revenue 25.7% 25.1% 23.9% 23.1% Finance Costs 13.3 16.6 (19.8%) 26.6 28.4 (6.4%) Depreciation & Amortization 40.1 35.7 12.2% 79.1 70.1 13.0% Profit before exceptional items, tax and share of profit/(loss) from joint 450.8 445.6 1.2% 788.6 809.3 (2.5%) venture % of Revenue 23.0% 22.5% 21.0% 20.6% Exceptional item(s) 0.0 0.0 n.a. 14.5 0.0 n.a. 38#39Consolidated Profit & Loss (2 of 2) All figures are in INR crores, unless otherwise stated Q2 FY18 Q2 FY17 Y-o-Y (%) H1 FY18 H1 FY17 Y-o-Y (%) Tax Expenses Current Tax 84.4 82.4 2.5% 140.0 Deferred Tax 3.5 4.9 (28.7%) 6.8 148.0 9.4 (5.4%) (27.7%) Net profit after tax but before share 362.9 358.2 1.3% 627.3 651.8 of profit/(loss) from joint venture (3.8%) % of Revenue 18.5% 18.1% 16.7% 16.6% Share of profit / (loss) of joint venture (0.2) 0.1 (313.4%) 0.3 0.2 64.8% Net profit after minority 361.9 % of Revenue 18.5% 357.3 18.0% 1.3% 626.1 16.7% 650.1 16.5% (3.7%) 39#40Consolidated Balance Sheet (1 of 2) All figures are in INR crores, unless otherwise stated A Assets 1 Non-current assets Particulars As at 30/09/2017 (Unaudited) As at 31/03/2017 (Audited) (b) (a) Property, plant and equipment Capital work-in-progress 1,508 55 1,479 42 (c) Investment property 55 55 (d) Goodwill 411 411 (e) Other Intangible assets 12 14 (f) Biological assets other than bearer plants 0 (g) Financial assets (i) Investments 2,486 2,499 (ii) Others 13 12 (g) Other non-current assets 98 102 Total Non-current assets 4,638 4,615 2 Current assets (a) Inventories 1,000 1,107 (b) Financial assets (i) Investments 1,041 741 (ii) Trade receivables 767 650 (iii) Cash and cash equivalents 123 163 (iv) Bank Balances other than (iii) above 147 142 (v) Others 56 34 (c) Other current assets 330 280 (d) Assets held for sale 2 Total current assets 3,467 3,116 Total Assets 8,105 7,731 40#41Consolidated Balance Sheet (2 of 2) All figures are in INR crores, unless otherwise stated Particulars As at 30/09/2017 (Unaudited) As at 31/03/2017 (Audited) B Equity and Liabilities 1 Equity (a) Equity share capital (b) Other Equity Equity attributable to shareholders of the Company Non Controlling Interest Total equity 176 176 5,100 4,671 5,276 4,847 25 5,301 25 4,872 2 Non-current liabilities (a) Financial liabilities (i) Borrowings 474 471 (ii) Other financial liabilities 1 4 (b) Provisions 56 53 (c) Deferred tax liabilities (Net) 114 108 Total Non-current liabilities 645 636 3 Current liabilities (a) Financial liabilities (i) Borrowings 507 440 (ii) Trade payables 1,218 1,303 (iii) Other financial liabilities 96 174 (b) Other current liabilities 189 175 (c) Provisions 106 92 (d) Current tax Liabilities (Net) 42 38 Total Current liabilities Total Equity and Liabilities 2,158 2,223 8,105 7,731 41#42For more information & updates, visit http://www.dabur.com/in/en-us/investor Dabur 42