#1bajaj Corp Ltd. Investor Presentation January 2016- Version 2 Please note that Nielsen has changed its sample size and hence this presentation contains recast Retail data numbers#2Industry Overview#3INDUSTRY SIZE AND STRUCTURE Shampoo Rs. 5,563 cr (31%)* Coconut based Oils (33%)** FMCG Rs. 2,59, 055 cr Hair Care Rs. 18,412 cr 7% CONTRIBUTION Perfumed Oil Rs. 6,319 cr (29%)* Coconut Based Oil Rs. 3119 cr (22%)* Hair Oil Market Hair Conditioners Rs. 431 cr (2%)* Hair Dyes Rs. 2,982 cr (16%)* Amla based Oils (17%)** Light Hair Oils (17%)** Cooling Oils (10%) ** Others (23%)** Source: AC Nielsen Retail Audit Report. Only branded products data for MAT SEP 15 Perfumed Hair Oil Segment * Value based share of Hair Care Market ** Value based share of Hair Oil Market#4(In KLtr) Hair Oil Market in India 3,00,000 Overall Hair Oil Market - Volume 8.3% CAGR 2,38,28347,47869,0162,51,407 1,97,014,00235,539 1,72,528 2,50,000 2,00,000 1,50,000 13256 1,00,000 50,000 0 06-07 07-08 1,91,282 08-09 09-10 10-11 11-12 35,000 (In KLtr) 0 06-07 30,000 25,000 20,000 15,000 1176 10,000 5,000 Y-o-Y 33% 15,603 12.9% CAGR 18,39019,908 Light Hair Oil - Volume 12-13 13-14 (Rs. Cr.) 10,000 9,000 8,000 7,000 6,000 5,000 14-15 15-16 (9M) 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 (9M) Y-o-Y 18% Y-o-Y 8.3% Y-O-Y 12.5% Y-o-Y 19.5% Y-0-Y 11.9% Y-0-Y 6.6% Y-o-Y (-3.1%) 9M-0-9M 5% 29,958 31,94930,969 26,768 24,192 22,406 0 4,000 2,827.3 3,000 2,000 1,000 06-07 07-08 08-09 Source: New AC Nielsen Retail Audit Report, DEC 2015. Hair Oil category remains flat on volumes, Light Hair Oil is growing steady at 5%. (Rs. Cr.) 0 009 472 335.6 400 200 06-07 07-08 08-09 Y-o-Y 29% 610 Y-O-Y 16.4% Light Hair Oil - Value 1,600 1,400 1,474 1,503 20.6% CAGR 1311 1,200 1,197 1,080 1,000 800 710 831 09-10 Y-o-Y 31% Y-o-Y 21% Y-o-Y 12.9 Y-o-Y 13.6% Y-o-Y 22% 16% CAGR 5,728 6,981 7,867 Overall Oil Market - Value 10-11 11-12 12-13 13-14 Y-o-Y 12.7% Y-o-Y 6.9% Y-O-Y 6.9% 9M-0-9M 7.5% 8,675.8,277.7 7,489.1 14-15 15-16 (9M) 09-10 10-11 Y-O-Y 17.1% Y-o-Y 30% 11-12 Y-o-Y 21.4% 12-13 Y-o-Y 12.5% 13-14 14-15 Y-O-Y 1.9% 9M-0-9M 7.3% 15-16 (9M) 3#5Light Hair Oil Market in India 06-07 07-08 08-09 09-10 25,000 20,000 15,000 11764 10,000 5,000 15,603 12.9% CAGR 18,39019,908 22,406 Y-o-Y 33% Y-o-Y 18% Y-o-Y 8.3% Y-O-Y 12.5% Y-o-Y 19.5% 26,768 Y-o-Y 11.9% 35,000 30,000 Light Hair Oil - Volume 29,958 31,94930,969 24,192 Almond Drops Hair Oil Market - Volume 10-11 11-12 12-13 13-14 14-15 Y-o-Y 6.6% Y-o-Y (-3.1%) 9M-0-9M 5% (Rs. Cr.) 009 15-16 (9M) 335. 400 200 0 06-07 Y-o-Y 40% Y-o-Y 29% Y-o-Y 16.4 07-08 08-09 09-10 10-11 1,600 Light Hair Oil - Value 1,474 1,503 1,400 20.6% CAGR 1311 1,200 1,080 1,000 831 800 710 61080 1,197 Y-o-Y 17.1% Y-o-Y 30% 1,000 18,07617,883 900 800 16,298 20,000 14,043 700 18,000 16,000 20.7%% CAGR 13,895 600 14,000 11,006 (In KLtr) 12,000 10,000 8,000 6,000 3978 4,000 ,988 8,10 2,000 Y-o-Y Y-o-Y 35% Y-o-Y 17. Y-o-Y 15.1% Y-o-Y 26.2% Y-o-Y 17.3% 0 06-07 07-08 60-80 09-10 10-11 11-12 12-13 13-14 14-15 15-16 (9M) Y-0-Y 10.9% Y-o-Y (-1.1%) 10M-0-10M 5.9% (Rs. Cr.) 500 400 300 123 200 100 0 Source: New AC Nielsen Retail Audit Report, DEC 2015. Almond Drops is the brand which is driving light hair oils and in turn the overall market Y-o-Y 54.5% Almond Drops Hair Oil Market - Value 28.2% CAGR 284 360 44 Y-o-Y 48. Y-o-Y 26. Y-o-Y 22.6% Y-o-Y 34.8% 06-07 07-08 191 08-09 09-10 594 746 Y-o-Y 25.6% Y-O-Y 17.3% 897 861 722 Y-o-Y 4.2% 9M-0-9M 9.1% 10-11 11-12 12-13 13-14 14-15 15-16 (9M) 11-12 12-13 13-14 Y-o-Y 21.4% Y-o-Y 12.5% Y-O-Y 1.9% 9M-0-9M 7.3% 14-15 15-16 (9M) 4#6Market Shares Trends (All India - Urban Plus Rural) Volume MS 70% 70% 60% 56.6% 57.7% 58.0% 54.4% 60% 51.9% 50% 48.0% 49.1% 44.1% 38.4% 40% 30% 20% 10% Value MS 58.4% 59.7% 60.3% 56.9% 55.0% 53.0% 50.7% 50% 46.5% 40.3% 40% 30% 20% 10% 0% 0% 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 (9M) (9M) *Market Share in the Light Hair Oil Category Source: New AC Nielsen Retail Audit Report, DEC2015 5#7ADHO - Relative Market Share - Value Trend Relative Market share is the ratio of Almond Drops market share to the next largest competitor in LHO segment Relative MS - Val 5.0 4.3 4.5 4.2 4.3 4.0 4.0 3.4 3.5 3.2 3.0 2.7 2.5 2.1 2.0 1.5 1.0 0.5 III 0.0 2008 2009 2010 2011 2012 2013 2014 2015 Source New AC Nielsen Retail Audit Report, DEC 2015 - Strong Relative market share demonstrates the strength of the brand 6#8ADHO - Relative Market Shares - Value State Relative MS Rank State Relative MS Rank Delhi 4.2 1st Uttar Pradesh 4.2 1st Rajasthan 1.4 1st Uttaranchal 4.3 1st Punjab 3.3 1st Madhya Pradesh 3.6 1st HP-JK 4.0 1st Chhattisgarh 8.0 1st Haryana Central Zone 4.5 1st 4.7 1st Uttaranchal 4.3 1st Gujarat 2.2 1st North Zone 2.6 1st Mumbai 3.4 1st Assam 5.3 1st Maharashtra 4.2 1st North East 2.9 1st West Zone 3.7 1st Bihar 9.0 1st Andhra Pradesh 1.1 2nd Orissa 5.3 1st Karnataka 6.6 1st West Bengal 2.9 1st Kerala 2.4 1st Jharkhand 6.5 1st Tamil Nadu 0.8 2nd East Zone 5.3 1st South Zone 1.7 1st All India 4.2 1st All India 4.2 1st Relative Market share is the ratio of Almond Drops market share to the next largest competitor in LHO segment Rank is the position of ADHO in respective state Source -New AC Nielsen Retail Audit Report, DEC 2015 7#9Statewise Market Share Feb 15- Jan 16 All India (U+R) Delhi Punjab LHO Volume Saliency Proportion % ADHO Market Share % (Vol) Urban Rural Total Urban Rural 61% 39% 58% 55% 63% 6% 100.0% 57% 4% 73% 27% 53% 52% 57% Haryana 6% 83% 17% 58% 56% 69% HP-JK 1% 45% 55% 53% 48% 58% Rajasthan 8% 48% 52% 47% 49% 45% Uttar Pradesh 22% 46% 54% 64% 61% 68% Uttaranchal 1% 64% 36% 58% 53% 67% Assam 3% 43% 57% 60% 58% 62% NE 2% 60% 40% 44% 40% 50% Bihar 5% 50% 50% 76% 69% 83% Jharkhand 2% 63% 37% 70% 67% 75% Orissa 9% 59% 41% 63% 59% 68% West Bengal 1% 64% 36% 46% 42% 53% Gujarat 5% 73% 27% 54% 50% 66% Madhya Pradesh 9% 55% 45% 61% 59% 63% Chattisgarh 4% 49% 51% 74% 64% 83% Maharashtra 8% 72% 28% 58% 60% 54% Karnataka 1% 76% 24% 61% 60% 66% Andhra Pradesh 2% 84% 16% 34% 37% 20% Tamil Nadu 1% 88% 12% 25% 28% 1% Kerala 0.2% 91% 9% 23% 23% 26% Source: New AC Nielsen Retail Audit Report, MAT DEC 2015 8#10Light Hair Oil Market - - Key Characteristics Rural -Urban break up of LHO market Share of Distribution Channels in LHO market 7% 6% 7% Urban dominated 39% 61% All India Urban All India Rural segment due to its 3% relatively higher pricing but Rural is leading the growth. SKU wise break up of LHO market %-Market share ■Upto 15ml 14% 32% ■15-50ml Mid Size SKUs 20% ■50-100ml contribute the maximum in the repertoire. 48% 34% ■100ml and Above Source: New AC Nielsen Retail Audit Report, DEC 2015 ■Grocers Modern Trade ■ Pan Plus ■Chemists 77% Cosmetics Grocers dominate distribution, but alternate channels like modern retail demonstrating higher growth rate Region wise break up of LHO market 4% 26% 22% ■South Zone ■West Zone ■East Zone ■North Zone Sales tend to be concentrated in the Northern parts of the country, but East is the fastest growing region 9#11Lakh outlets Cooling Hair Oil Market in India Rs. Cr. 1,000 800 600 400 200 Cooling Hair Oil – Value 8.2% CAGR 594 485 Y-O-Y-23% Y-O-Y-12% - 667 760 897 Y-O-Y - 14% Y-O-Y - 18% Y-o-Y - 4% Y-o Y-(-4.5)% Y-O-Y-4.3% Cooling Hair Oil - Volume 934 930 25,000 892 5.2% CAGR 20,000 18,520 20,128 19,486 16,610 14,655 15,000 12,416 KLtr 10,000 5,000 0 CY08 CY09 CY10 CY11 0 CY12 CY13 CY14 CY 15 Kailash Parbat - Distribution Trend 5.0 4.7 4.5 4.3 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 JAN13 APR13 JUL13 OCT13 JAN14 APR14 JUL14 OCT14 4.6 JAN15 OCT 15 JAN 16 AUG14 NOV14 APR15 JUL15 FEB15 MAY15 Source - New AC Nielsen Retail Audit Report, DEC 2015 AUG15 NOV 15 18,000 18,470 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY 15 Kailash Parbat - Volume Market Share Trend 3.5% 3.0% 3.1% 2.5% 2.5% 2.0% 2.5 1.5% 1.0% 0.5% 0.0% MAR13 JAN13 MAY13 JUL13 SEP13 NOV13 JAN14 MAR14 2.5% 1.8% 1.5% 1.5% 1.4% MAY14 JUL14 SEP14 NOV14 JAN15 MAR15 MAY15 JUL15 SEP15 NOV 15 10#12Company Overview#13Bajaj Corp Ltd. (BCL) - An Overview Part of Bajaj Group which has business interests in varied industries including sugar, consumer goods, power generation & infrastructure development Subsidiary of Bajaj Resources Ltd. (BRL) BCL is the exclusive licensee of brands owned by BRL Brands licensed to BCL for 99 years from 2008 Key brand - Bajaj Almond Drops Hair Oil 2nd largest brand in the overall hair oils segment Market leader with over 60.3% market share* of LHO market Premium positioning commands one of the highest per unit prices in the industry New Product Launch: Bajaj Amla Hair Oil - Other brands Brahmi Amla, Bajaj Kailash Parbat Cooling Oil and Jasmine (all hair oil brands) and Black tooth powder *Source: New AC Nielsen Retail Audit Report, DEC 2015. Haircare Portfolio bajaj OCTRI परबत BRAHMI Jasmine deft बजाज काला दन्त मन्जन Bajaj Almond Drops Hair Oil - A premium perfumed hair oil containing almond oil and Vitamin E Competitors - Keo Karpin (Dey's Medical), Hair & Care (Marico), Clinic All Clear (HUL) Bajaj Kailash Parbat Cooling Oil - An ayurvedic formulation containing Sandal & Almond extracts Competitors: Himani Navratna Bajaj Brahmi Amla Hair Oil - Traditional heavy hair oil. Brand has been in existence since 1953 Competitors - Dabur Amla, Dabur Sarson Amla Bajaj Amla - Variant in the low price amla hair oil segment catering to price conscious consumers Competitors - Shanti Badam Amla Hair Oil (Marico) Bajaj Jasmine Hair Oil - A Jasmine flower perfumed hair oil. In demand due to cultural significance. Bajaj Kala Dant Manjan - An oral care product for the rural market. 12#14Skincare Portfolio baja NOMARKS Most trated & preferred brand The FMCG A INDIA'S NO. ANTI-MARKS CREAM BRAND bajaj NOMARKS NEW WITH TURMERIC LEMON & WHEAT GERM OIL bajaj NOMARKS Most trusted & preferred brand The proud winner of FMCG Awards INDIA'S NO. ANTI-MARKS CREAM BRAND FOR OILY NEW bajaj NOMARKS WITH EMBLICA, MON bala NOMARK'S Most trated & preted bran The owner of FMCG A FOR CHRY INDIA'S NO. ANTI-MARKS CREAM BRAND FOR bajaj NOMARKS NEW WITH ALOE EMBLICA & ALMOND OIL Bajaj NOMARKS Creams for All Skin, Oily Skin & Dry Skin Types, available in sizes 12g & 25g Bajaj NOMARKS Facewash for All Skin, Oily Skin & Dry Skin Types & Neem Facewash, available in FREE 20% EXTRA FREE 20% EXTRA FREE 20% EXTRA FREE 20% EXTRA NEW NEW NEW NEW bajaj NOMARKS ALL SKIN FACE WASH FOR CLEAR GLOWING FAIRNESS bajaj NOMARKS OILY SKIN FACE WASH FOR PIMPLE-FREE SKIN bajaj NOMARKS DRY SKIN FACE WASH CAND FREE & HYDRATED SKIN hajaj NOMARKS NEEM FACE WASH HELPS PREVENT PIMPLES bajaj NOMARKS HERBAL SCRUB SCAP OKT POWDER AND NEW NOMARKS bajaj NOMARKS MOISTURISING SCAP bajaj NOMARK'S OIL CONTROL SOAP WITH AL NOMARKS NEW bajaj NOMARKS NEEM SOAP TURAL ANTON NEW sizes 15g, 50g, 100g Bajaj NOMARKS Soaps for All Skin, Oily Skin & Dry Skin Types & Neem Soap, available in sizes 125g & 75g Bajaj NOMARKS Exfoliating Walnut Scrub, 50g & 100g and Bajaj NOMARKS Dry Face Pack 25g bajaj NOMARKS DRY FACE PACK WITH BALANCED FORMULA NEW bajaj а спома NEW NOMARKS EXFOLIATING SCRUB WITH WALNUT & APRICOT#1542 60 60 70% 60% 50% 48.0% 49.1% 54.4% 51.9% 57.7% 56.6% 58.0% 44.1% 38.4% 40% 30% 30 20% 20 10% 10 285822 70 60 50 40 28 29 20 0% 0 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 (9M) Mar-03 (MRP of 100ml (Rs.) 2020 70 60 50 40 50 45 42 42 33 30 25 20 10 0 Amla Hair Brahmi Amla Almond Oil Drops Kailash Parbat Parachute Keo Karpin Dabur Vatika Dabur Amla Hair & Care Navratna Source: AC Nielsen Retail Audit Report NOV 2015, Kotak Institutional Research Almond Drops has created a unique positioning for itself through initiatives like product differentiation (Almond based), focused marketing, unique packaging (glass vs. plastic used by competition etc.) 14 Comparative Price of Different Brands for 100 ml in the Hair Oil Segment Competitor Brands Bajaj Almond Drops - A Premium Brand Strong Market Share Growth in Recent Years . . But not at the cost of pricing power 30 30 52 32 35 38 40 40 Mar-05 Dec-05 58 55 50 46 42 60 60 Jul-06 May-08 Jul-08 Jan-10 May-10 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 65#16Consumer Profile- Almond Drops For Almond Drops the consumer is: - - Gender ☐ Male- 54% ☐ Female- 46% Age Group ☐ 15 to 39 yrs ( 59% of users) Urban Vs Rural ☐ 61% are Urban consumers Socio Economic Class (SEC)- Urban ☐ A1- 10.4% □ A2- 14.4% □ B1- 14.4% ☐ B2- 11.5% Source IRS, Q42012 - 15#17Strong Distribution Network 539 Distribution Network 45 The company reaches consumers through 3.6 mn retail outlets serviced by 7321 distributors and 15,122 wholesalers Distribution Structure Factory (8) OWN - Himachal Pradesh -2, Uttarakhand- 1 THIRD PARTY - Himachal Pradesh-2, Rajasthan-1,Uttarakhand-2 213 154 45 20 70 0 1805 635 688 417 179 236 45 523 247 277 198 516 352 Central Warehouse (1) Regional Distribution Centre (29) Urban Distribution Rural Distribution MT -79 Super Stockist (199) Redistribution Stockist (1,557) Sub-Stockist (5694) 30 124 Total Stock points- (Direct + Indirect) ● Regional Zonal Office Retail Outlets (1494036)1 Registered Zonal Office 1 - as on DEC 2015. Nielsen New Sample Retail Outlets (21,27,999)1 Over the years, BCL has created a large distribution network (that continues to grow) which can be leveraged to introduce new products 16#18Van Operations ■Started in FY 13 with a objective of increasing Rural Sales Piloted 39 Vans in Q4 FY 13 ■ Currently operating 114 vans (for Sales) Vans cover 7583 uncovered Towns and Villages on a monthly basis In MAT DEC 2015 - Bajaj Almond Drops Hair Oil got 40 % of its sales from Rural India Volume Growth in Rural India - 8% (Urban Rural = 6%) Market share in Rural India - 63% (Urban + Rural = 58.1%) *Source: AC Nielsen Retail Audit Report, MAT DEC 2015. 17#19Organization Structure Chairman Mr. Kushagra Nayan Bajaj Managing Director Mr. Sumit Malhotra VP-HR Mr. Subhamay President-Sales & Chatterjee Marketing- Mr.Sandeep Verma Head- Internal Audit Mr. Manoj Gupta President Operations Mr. Apoorv Bajaj Head International Business Head - Supply Chain & Procurement Mr. Devendra Jain, VP- Marketing Mr. Gurpreet S Amrit Chief Financial officer Mr. V.C. Nagori Country Manager- Bangladesh, Nepal, GCC and SEAN Vice President (Finance) Mr. D.K. Maloo Head -Purchase Mr. Subroto Ghosh DGM-Key Accounts DGM-South & West DGM-IT Mr. Dharmesh J. Sanghavi Senior Manager- Purchase AGM North Manager Planning & Logistics - AGM Central GM-Operations Company Secretary Head- Treasury Regional Commercial Manager- 5 in Senior Manager Finance AGM- Finance Mr. Kabir Sahni No's Works Manager – Head- QC & R&D 3 in No's(3 MUs) AGM-East Sales Head 18#20Financial Information Summary Income Statement Summary Balance Sheet Particulars Particulars Q3FY16 Q3FY15 9M FY 169M FY 15 As on As on As on (Rs. In Crore) (Rs. In Crore) 31.12.2015 31.03.2015 31.03.2014 Sales (Net) EBITDA EBITDA Margin 212.77 68.83 32.35% 205.40 638.78 584.07 60.06 201.96 167.69 29.24% 31.62% 28.71% Shareholders Equity 635.70 491.81 522.08 Profit Before Tax & Net Fixed Assets 78.09 110.38 160.89 Exceptional Item 74.79 64.71 218.15 185.73 Investments Exceptional Item (Trademark & Intellectual Properties) 11.74 11.74 35.24 35.24 (including Bank FDs, Bank CDs and Government Securities & Bonds) 516.54 370.09 337.97 Profit Before Tax(PBT) 63.05 Net Profit after Tax 49.60 Net Profit Margin 23.31% 52.97 182.91 41.84 143.88 20.37% 22.52% 150.49 118.89 20.36% Net Current Assets 41.07 11.34 23.22 Brandwise Sales Break-Up for 9M FY 2016 ASHO 0.0% BAHO BTP 0.2% NOMARKS AHO 4.8% 2.0% 1.5% JHO 0.5% KPCO 0.3% ADHO 90.7% Key Highlights Strong demonstrated growth track record Among the highest EBITDA margins in the industry Company is a Debt free company. 19#21EBITDA & PAT Performance Rs. in Crore Particulars Q3FY16 Q3FY15 YOY% 9M FY 16 9M FY 15 YOY% EBITDA 68.83 60.06 14.60% 201.96 167.69 20.43% Profit Before Tax & Exceptional Item 74.79 64.71 15.57% 218.15 185.73 17.45% Exceptional Item (Trademark & 11.74 11.74 Intellectual Properties) 35.24 35.24 Profit Before Tax 63.05 52.97 19.03% 182.91 150.49 21.54% (PBT) Profit After Tax (PAT) 49.60 41.84 18.52% 143.88 118.89 21.02% 20#22Profit & Loss Q3 FY2016 and for 9M FY2016 Particulars Q3FY16 Q3FY15 Net Sales 212.77 Other Operating Income 0.39 205.40 0.39 YOY% 3.59% 9M FY 16 638.78 Rs. in Crore 9M FY 15 YoY% 584.07 9.37% 1.67 1.04 Material Cost 72.61 76.96 222.85 227.32 % of Sales 34.12% 37.47% 34.89% 38.92% Employees Cost 11.46 9.08 33.78 28.18 % of Sales 5.39% 4.42% 5.29% 4.82% Advertisement & Sales Prom. 38.06 40.24 113.93 104.21 % of Sales 17.89% 19.59% 17.84% 17.84% Other Expenses 22.20 19.45 67.93 57.71 % of Sales 10.43% 9.47% 10.63% 9.88% EBITDA % of Sales Other Income Finance Cost Depreciation 68.83 60.06 14.60% 201.96 167.69 20.43% 32.35% 29.24% 31.62% 28.71% 8.13 6.66 22.40 24.01 0.01 0.01 0.03 0.04 1.12 1.08 3.09 3.18 Corporate Social Responsibility 1.04 0.92 3.09 2.75 Profit Before Tax & Exceptional Item 74.79 64.71 15.57% 218.15 185.73 17.45% Exceptional Item (Trademark & Intellectual Properties) 11.74 11.74 35.24 35.24 Profit Before Tax(PBT) 63.05 52.97 19.03% 182.91 150.49 21.54% Tax Expenses 13.45 11.13 39.03 31.60 Profit After Tax(PAT) 49.60 41.84 18.52% 143.88 118.89 21.02% % of Sales Basic & Diluted EPS (Rs.) 23.31% 20.37% 22.52% 20.36% 3.36 2.84 9.75 8.06 21#23Sales Performance In ` Crores 250 200 150 € 100 Sales (Value): Q3FY15 v/s Q3FY16 205.40 212.77 50 0 Q3 FY15 Q3 FY16 In Crores Sales (Value) : 9MFY15 v/s 9MFY16 700 600 500 400 300 584.07 638.78 200 100 0 9M FY 15 9MFY 16 Sales for the quarter ended December'15 has increased by 3.59% value wise and 2.96% volume wise. Sales for the 9M ended December'15 has increased by 9.37% value wise and 7.68% volume wise. 22#24Statement of Quarter wise Sales (Volume & Value) STATEMENT OF QUARTERWISE SALES (VOLUME - In Cases) ADHO KPCO BAHO AHO Nomarks Others Total % Inc over PY FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 61 FY 15 14,073 Q1 1,241,928 1,123,144 7,435 15,805 9,671 49,630 40,210 58,222 7,538 7,032 1,360,814 1,213,874 12.11% 22 Q2 1,191,034 1,120,081 1,856 2,380 16,751 10,218 45,290 - 41,136 54,811 8,445 16,571 1,304,512 1,204,061 8.34% Q3 41,315 48,913 6,764 12,903 1,344,011 1,305,332 2.96% Total 1,238,671 1,226,347 986 2,017 13,069 15,152 43,207 122,661 161,946 22,747 36,506 4,009,337 3,723,267 7.68% 3,671,6333,469,572 10,277 20,202 43,892 35,041 138,127 STATEMENT OF QUARTERWISE SALES (VALUE - In Rs. Crores) ADHO KPCO BAHO AHO Nomarks Others Total % Inc over PY FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 FY 16 FY 15 15 FY FY 16 6 FY FY 15 Q1 197.85 170.91 1.48 2.92 3.05 2.00 4.66 9.92 14.13 1.42 1.12 218.37 191.07 14.29% Q2 187.46 168.89 0.30 0.37 3.65 2.15 4.25 10.31 13.92 1.66 2.27 207.64 187.61 10.68% Q3 194.18 186.07 0.16 0.42 2.79 3.23 4.02 - 10.22 13.57 1.40 2.12 212.77 205.40 3.59% Total 579.49 525.86 1.95 3.70 9.48 7.38 12.94 30.45 41.62 4.48 5.51 638.78 584.07 9.37% 23#25-5.00% -10.00% 35.00% 25.00% Consistent Performance over the last 15 successive quarters 32.35% 31.88% 31.67% 30.86% 30.00% 28.19% 28.76% 29.03% 28.25% 28.37% 28.65% 28.58% 28.27% 29.24% 27.09% 27.04% 20.00% 15.00% 10.00% 5.00% 29.53% 22.35% 27.25% 18.70% 31.84% 22.33% 25.31% 19.12% 23.18% 20.16% 16.48% 14.96% 6.85% 0.90% 0.26% 0.00% Q1FY13 Q2FY13 Q3FY13 Q4FY13 Q1 FY14 Q2FY14 Q3FY14 Q4F4 Q1FY15 Q2FY15 Q3FY15 Q4FY15 Q1FY16 Q2FY16 Q3FY16 -6.40% 12.36% 3.51% 18.55% 8.80% 29.83% 21.06% 27.82% 23.03% 14.29% 12.11% 10.68% 8.34% 3.59% 2.96% Gr (Value) Gr (Vol) EBIDTA 24#26Breakup of RM/PM Costs (for Q3 FY 16) Key Raw & Packing Material LLP % to Sales % to Total Cost 10.34% 30.24% Glass Bottles 7.95% 23.26% Refined Veg. Oil 4.80% 14.04% Perfumes & other additives 2.48% 7.26% Corrugated Boxes 1.53% 4.49% Caps 2.01% 5.87% Others 5.07% 14.84% TOTAL 34.18% 100.00% * Consumption is 34.18 % of Sales *For Bajaj Almond Drops 25#2780 93.76 82.88 70.92 70.37 Change in Prices of Key Ingredients 100 Per Kg Rates of LLP Per Kg Rates of Oil 100 80 00 60 60 Amount (Rs.) 40 40 20 20 60 60 Amount (Rs.) 40 40 20 20 0 0 Qtr3 FY15 vs FY16 9M FY15 vs FY16 Qtr3 FY15 vs FY16 9M FY15 vs FY16 81.81 75.01 54.70 57.87 During the quarter average price of LLP decreased to Rs. 54.70/kg from Rs. 75.01/kg in corresponding quarter of previous year. ✓ During the quarter average price of Refined Oil increased to Rs. 93.76/kg from Rs. 70.92/kg in corresponding quarter of previous year. 26#28Fund Position Fund Position: The total Fund available with the company as on 31st December' 2015 is Rs. 462.08 Crores This has been invested in Bank Fixed Deposits, PSU Bonds and Liquid MFs. There is no investment in ANY Inter Corporate Deposit Particulars Amount (Rs. in Crores) Bank FDs 101.43 Liquid Plans of Mutual Funds 26.70 Bonds 330.95 Current Account 3.00 Total 462.08 27#29Dividend Payout History Dividend per No. of Shares Face Dividend Payout Year % to Capital share (in Lacs) Value (Rs in Lacs) (Rs.) 2015-16 1,475 1 16962.50 1150% 11.50 2014-15 1,475 1 16962.50 1150% 11.50 2013-14 1,475 1 9,587.50 650% 6.50 2012-13 1,475 1 9,587.50 650% 6.50 2011-12 1,475 1 5,900.00 400% 4.00 2010-11 295 5 2,802.50 190% 9.50 28#30Managerial Bandwidth ■ As a constant endeavour to add to the Managerial capabilities within the company we constantly engage in in-house and out bound training programs Further to make all the functions better equipped in terms of bench strength the company is also in the process of recruiting experienced managers from well known FMCG companies ■In this process - Mr. Sandeep Verma has joined the organisation as President- Sales & Marketing. He is an Mechanical Engineer from Motilal Nehru Engineering College, Allahabad and holds a Management Degree from IIM, Lucknow. Mr. Verma has worked more than 14 years in different function in HUL. ■Mr. Sandeep Verma will lead the Sales & Marketing Department and contribute towards the companys change management process. 29#31Corporate Governance Bajaj Corp Ltd is a part of the Bajaj Group of companies. The other listed entity in the group is Bajaj Hindusthan Ltd Bajaj Corp Ltd has not and will not transfer funds from and to from any other company within the Bajaj Group ■ The Company acquired in September 2011 (Uptown Properties) owns a piece of land and building in Worli, Mumbai. Uptown Properties was previously owned by the C.K. Raheja Group (i.e. Mr. Chandu Raheja) ■The corporate Headquarters of Bajaj Corp Ltd will be constructed on this land. The Construction is expected to be completed by end of 2016. ■The Bajaj Group is well aware of issues regarding Corporate Governance and would like to state that they will be no financial interaction between any of the listed entities within the group. 30#32Growth Strategy Strategy Market share gains from other hair oil segments Focus on rural penetration Leverage existing strengths to introduce new products Action Steps Convert coconut hair oil users to light hair oil users through sampling, targeted advertising campaigns, product innovation and creating awareness about product differentiation including communicating the advantages of switching to lighter hair oils. Aim for a market share of 65% by the year 2016-17 Tap the increase in disposable income of rural India and convert rural consumer from unbranded to branded products by providing them with an appropriate value proposition Among its key competitors, our Almond Drops is the only brand which is available in sachets - a marketing initiative to penetrate the rural market BCL has over the years created a strong distribution network across 3.6 mn. retail outlets which can be optimally utilized by introducing new products BCL intends to extend 'Almond Drops' platform developed by its Almond Drops Hair Oil brand to other personal care products to leverage on the strong connotation of Almonds with nutrition Pursue inorganic Opportunities Will seek inorganic growth opportunities in the FMCG and hair oil market as part of growth strategy The inorganic growth opportunities will focus on targeting niche brands which can benefit from BCL's strong distribution network so that they can be made pan India brands 31#33Thank You