Dabur India Limited

Investor Presentation
March 2012

Indian Economy
RealGDPGrowthRate Real GDP Growth Rate YoY (%)
10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 0.0% 5.0% 10.0%

Percapitapersonaldisposableincome GrowthRate YoY (%)

25.0%

9.3% 6.7%

8.4%

8.4% 7.0%

20.0%

19.6% 12.8% 13.3%

15.0%

10.6%

FY08

FY09

FY10

FY11

FY12

FY08

FY09

FY10

FY11

Source:CSOandRBIestimates

Source:CSOestimates

WPIInflation YoY (%)

12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 0 0%

Overview

9.4%

9.8%

10.0%

9.9%

9.1% 7.5%

Jul11 Aug11 Sep11 Oct11 Nov11 Dec11

Source:OfficeofEconomicAdviser

Indian economy continues on growth trajectory with RBI forecasting 7% growth in Real GDP for FY12 Per capita personal disposable income continues robust growth Inflation seems to be trending down over the last few months
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FMCG Sector in India

FMCGIndustrySize(inRs.bn) FMCG Industry Size (in Rs bn) FMCGIndustryUrban(inRs.bn) FMCG Industry Urban (in Rs bn)
1,400 1,200 1,000 , 800 400 600 300 400 200 0 200 100 0 800 700 600 500

FMCGIndustryRural(inRs.bn) FMCG Industry Rural (in Rs bn)

1,800 1,600 1,400 1,200 1,000 800 600 400 200 0

1,451

1,671

1,111 960

559 491

CY10

CY11

CY10

CY11

CY10

CY11
Source:ACNielsen

Overview

FMCG sector in India continues on a strong growth path with both Urban and Rural India contributing to growth. Rural India contributes to c. one third of FMCG sales in India Growth driven by increasing consumption led by rise in incomes, changing lifestyles and favorable demographics As per a study conducted by Booz & Company, FMCG sector is expected to grow in the range of 12% to 17% upto 2020 and would touch a market size between of Rs. 4,000 to Rs. 6,200 billion
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Penetration Levels: Sufficient Headroom

Rural Penetration
90%

Urban Penetration

80%

77%

80% 67% 57% 59%

70%

60%

50%

42%
40%

37% 32% 26% 18% 18% 19% 5% 2%

Hair Dyes

30%

20%

10%

3%
Toothpaste Shampoo Hair Oil Skin Cream Mosquito Repellants Instant Noodles

4%
Floor Cleaners

0%

Source:Industrydata

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

Per Capita Consumption: Room for Growth

SkinCare PerCapitaConsumption(inUS$) Skin Care Per Capita Consumption (in US$)
9 8 7 6 5 4 3 2 1 0 2 1.5 1

Shampoo PerCapitaConsumption(inUS$) Shampoo Per Capita Consumption (in US$)

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

Indonesia

India

Malaysia y

Thailand

Toothpaste PerCapitaConsumption(inUS$)
3.5 3 2.5 2 1.5 1 0.5 0

2.9 29 2.0 1.0 0.5 05 0.4 04

China

Indonesia

India

Malaysia

Thailand

Source: MOSL

India has low per capita consumption as compared to other emerging economies
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Dabur Overview
Established in E t bli h d i 1884 - more th than 125 Years of Trust & Excellence Among top 4 FMCG companies in India g y Worlds largest in Ayurveda and natural healthcare Revenue of Rs. 41.1 billion and profits of Rs. 5.7 billion in FY2010-11 Strong brand equity
Dabur is a household brand Vatika and Real are Superbrands Hajmola , Real & Dabur ranked among Indias M I di Most Ad i d Brands Admired B d

ElevenBillionRupeeBrands

11 Brands with sales of over Rs. 1 billion each g Wide distribution network covering 3.4 million retailers across the country 17 world class manufacturing plants catering to needs of diverse markets Strong overseas presence with around 30% contribution to consolidated sales
Dabur ranked the No. 2 Indian Green Brand by Green Brands Global Survey Dabur ranked 200 in the Fortune India 500 list Dabur, Hajmola, Babool ranked among Top 100 Most Trusted Brands of 2011 by 2011, Economic Times Brand Equity.

Financial Performance
Sales
in Rs. million

50000 40000 30000 20000 10000 0

12,004

12,849

12,356

14,170

17,565

20,803

23,963

28,341

34,158

41,099

FY02

FY03

FY04^

FY05

FY06

FY07

FY08

FY09

FY10

FY11

EBITDAmargin(%)
in % in Rs. million

NetProfit

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

17.1% 15.3% 13.3%

18.1% 18.5% 18.3%

19.8% 19.9%
6000 5000 4000 3000 2000 1000 0

1,065 1,558

2,142

2,817 3,329

3,913 3 913

5,032

5,686

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

^Sales show a decline in FY04 on account of de-merger of Pharma business 7

Global Footprint
UK Turkey Nepal

Canada U.S.

Egypt

UAE

BDesh Nigeria

Domestic Mfg. Locations

Key markets Manufacturing Facilities Our strategy is to localize manufacturing, supply chain and product offerings to suit consumer requirements in each geography 8

Robust Distribution Network

Factory
C&FA Stockist
( (Carry & Forward Agents) y g )

Super Stockist

Institutions & Modern trade

Wholesalers

Sub Stockist

RETAIL TRADE CONSUMERS

Direct + Indirect Reach covering c. 3.4 million Retail Outlets
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Presence in FMCG Categories

Category
Hair Care Oral Care Ayurvedic Tonics Digestives Fruit Juices Honey Glucose Skin Care (Bleaches) (Bl h )

Position
3 3 1 1 1 1 2 1

Market Share
12% 13% 67% 56% 52% 50% 25% 50%

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

Hajmola

Real Fruit Juices, Real Activ

Dabur Honey

Dabur Glucose

Fem

Hair care includes Hair Oils & Shampoos; Oral care includes Toothpastes & Toothpowder; Digestives includes herbal digestives

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Business Structure

Dabur India Limited

Domestic Business (69.4%)

International Business (30.6%)

Consumer Care (56.1%) (56 1%)

Foods (10.1%) ( )

Retail ( (0.8%) )

Others* ( (2.5%) )

Dabur International (17.5%) (17 5%)

Hobi Group (2.7%) (2 7%)

Namaste Labs. LLC (10.4%) (10 4%)

Note:%figureinbracketsindicate%shareinConsolidatedSalesfor9MFY12
*OthersincludesCommodityExportsetc 11

Realigned Distribution Framework

Hair Care Home & Personal Care Home Care Oral Care Skin Care

Consumer Care
DOMESTIC FMCG

DABUR

Health ea t Supplements Health Care Digestives OTC Ethicals Culinary

Foods Beverages

Distribution re-aligned to capture greater synergy and scale: Consumer Health Division merged into Consumer Care Business
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Consumer Care Overview

Category wise Share of Consumer Care Sales CategorywiseShareofConsumerCareSales
Health Supplements 22%

OralCare 18% SkinCare 6% HomeCare Home Care 6%

Digestives 8%

HairCare 29%

OTC& Ethicals Ethi l 11%

Hair Care is the largest category and contributes to 29% of Consumer Care sales Health Supplements contribute to 22% of Consumer Care sales Oral Care, comprising toothpastes and toothpowders contributes to 18% of Consumer Care sales

Note: Percentage share based on revenue for 9MFY12

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Consumer Care Categories

Hair Oils
Key Brands

#2 player in Hair Oils

Dabur Amla: Largest brand in the portfolio

Vatika: Value added coconut oil

Anmol Hair Oil: Value proposition

Shampoo
Key Brands

#4 player in Shampoos

Vatika range of shampoos 14

Consumer Care Categories

Oral Care
Key Brands

#3 player in Toothpastes

#2 player in p y Toothpowder

Dabur Red: Toothpaste & Toothpowder

Babool: Targeted at economy segment

Meswak: Premium therapeutic toothpaste

Skin Care
Key Brands

#2 player in l i Skin Lightening

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

Uveda: Range of Ayurvedic Skin Care

Fem Gold Bleach: Launched recently

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Consumer Care Categories

Home Care
Key Brands

#1 player in Air Fresheners #1 player in Mosquito Repellant M i R ll Creams #2 player in Toilet Cleaners
Odonil: Air freshner range: L Largest brand tb d in the portfolio Odomos: Mosquito repellant skin cream ll t ki Sanifresh: Toilet cleaner

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Consumer Care Categories

Health S H lth Supplements l t
Key Brands

#1 player in Ayurvedic Tonics y #2 player in Glucose #1 player in branded Honey

Dabur Chyawanprash: Largest selling health supplement in the country Dabur Glucose: 2nd largest player in the country Dabur Honey: Largest branded honey in the country; growing category through replace sugar strategy g gy

Digestives
Key Brands

#1 player in Herbal Digestives

Hajmola: Flagship brand for branded Digestives Hajmola tasty digestive candy 17

Consumer Care Categories

OTC and Ethicals
Description 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 CHD Structure

OTC (64%) Generics Branded Products

ETHICAL (36%) 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 Acquired the energizer brand, Thirty Plus from Ajanta Pharma in May 2011

Promoting Dabur Ayurveda: Generating equity for Ethical portfolio

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Foods Business
Foods portfolio comprises Juices and Culinary range Juices are under the brands Real, Activ and Burrst Culinary range is under Hommade brand

Foods
Key Brands y

#1 player in Fruit Juices

Real: Flagship beverages brand

Real Activ: Range p j of 100% pure juice

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International Business
Started as an Exporter E t Focus on Order fulfillment through India Mfg. Set up a franchisee at Dubai i D b i in 1989 Demand generation led to setting up of mfg in Dubai & Egypt Renamed franchisee as Dabur International Ltd I t ti l Local operations further strengthened Set up new mfg facilities in Nigeria,RAK & Bangladesh Building scale- c. 30% of Consol. S l C l Sales High Levels of Localization Global Supply chain

1980s

Early 90s

2003 Onwards

Today

Highlights Daburs overseas business contributes c. 30% to consolidated sales led by CAGR of f 32% in last 6 years Focus markets: GCC Egypt gyp Nigeria Turkey Bangladesh Nepal US U.S. 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
10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0

High Growth in IBD

in Rs. million

8,922 8 922 6,025 4,770 3,760

1,281 1 281

1,807

2,258

2,917

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

International Sales Breakdown (9MFY12) Others 3% US 28% MiddleEast 30%

Asia 14%

Africa 25% 20

Africa and Middle East Overview

Real GDP Growth Rates (YoY) in % ( ) Africas Bulging Base g g

Source: IMF

Source: McKinsey on Africa, June 2010

Middle East and Africa have witnessed stable GDP growth rates g Between 2005 and 2015, it is estimated that in Africa, the share of individuals earning above US$1,000 will grow from 39% to 55%. The rapidly emerging African middle class could number as many as 300 million, out of a total population of one billion The h Th sheer volumes and th growth i th number of aspirational consumers with l d the th in the b f i ti l ith disposable income creates huge opportunities for consumer products companies
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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 Supplements, Honey etc. and expand market shares in other categories Calibrated international expansion local manufacturing and supply chain to enhance flexibility / reduce response time to change in market demands Innovate 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 y p y and New Era Product range of the company complementary to our product range is

Acquisition provides an entry into another 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 g y q in Namaste Laboratories LLC for $100 million, in an all-cash deal on January 1, 2011 Namast is a leading ethnic hair care products company, having products for women of colour, with revenues of c. $95 million (CY2010) from US, Europe, Middle East and African markets The company markets a portfolio of hair care products under the brand Organic Root 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) B ) yet hi hl underpenetrated consumer markets of S b S h t highly d t t d k t f Sub Saharan Af i Africa We intend to grow the non U.S. business ahead of U.S. business and are taking initiatives in this direction We have commenced local manufacturing for Namaste at our RAK facility in UAE

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Recent Performance: Q3 FY2011-12

16000 14000 12000 10000 8000 6000 4000 2000 0

14,626 10,878

Revenue (inRs.mn)

Q3FY11

Q3FY12 2,446 2 446

Consolidated Sales grew by 34.5% during Q3FY12. Excluding acquisitions, sales grew at a robust 20.2% driven by combination of volume growth, price increases and marginal growth translation gains Volume growth was at 10.8% EBITDA increased by 12% while EBITDA margin was lower at 16.7% in Q3FY12 v/s 20.1% Material costs pressures continued, with material costs increasing to 50.6% of sales v/s 48.1% 48 1% previous year Adpro during the quarter increased to 13.6% as compared to 12.4% in previous year Consolidated PAT reported growth of 11 9% C lid t d t d th f 11.9%. There was some impact of adverse foreign currency movements which may be recovered if rupee continues to appreciate in Q4

2500 2000

2,184

EBITDA (inRs.mn)

1500 1000 500 0

Q3FY11
2000 1500

Q3FY12 1,728

1,544

PAT (inRs.mn)

1000 500 0

Q3FY11

Q3FY12
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Stock Performance and Shareholding Pattern

Market Capitalization in Rs. billion Shareholding Structure*

174

DIIs,5.7% FIIs,19.2%

Others,6.5%

17

Promoters, 68.7%

2001

2011
*As on Dec 31, 2011

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

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Consol. 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 Exp. and Fin. Charges Depreciation Amortization Profit Before Tax (PBT) Tax Expenses PAT % of Sales Minority Interest - (Profit)/Loss PAT (After Minority Int) % of Sales Q3FY12 14,626.2 99.4 14,526.8 104.0 7,404.0 7 404 0 50.6% 1,055.8 7.2% 1,982.4 13.6% 1,869.7 12.8% 127.2 2,446.1 16.7% 182.9 187.8 20.3 20 3 2,055.1 336.9 1,718.2 11.7% -10.0 1,728.2 11.8% Q3FY11 10,878.0 78.3 10,799.7 69.1 5,231.1 5 231 1 48.1% 801.3 7.4% 1,349.3 12.4% 1,322.6 12.2% 19.5 2,184.0 20.1% 53.7 159.6 73.3 73 3 1,897.4 356.9 1,540.5 14.2% -3.9 1,544.4 14.2% 11.9% 240.9% 17.7% -72 3% 72.3% 8.3% -5.6% 11.5% 553.6% 12.0% 41.4% 46.9% 31.8% 41.5% 41 5% 34.5% YoY (%) 34.5% 9MFY12 39,485.8 289.9 39,195.9 267.1 20,002.9 20 002 9 50.7% 3,021.2 7.7% 4,774.7 12.1% 5,109.2 12.9% 384.1 6,939.1 17.6% 481.2 516.7 119.1 119 1 5,822.1 1086.5 4,735.6 12.0% -8.2 4,743.8 12.0% 9MFY11 29,926.4 234.1 29,692.3 256.1 14,162.2 14 162 2 47.3% 2,307.7 7.7% 4,071.4 13.6% 3,659.9 12.2% 158.8 5,905.9 19.7% 144.3 436.7 130.4 130 4 5,194.5 975.8 4,218.7 14.1% 2.9 4,215.8 14.1% 12.5% 233.5% 18.3% -8 6% 8.6% 12.1% 11.3% 12.3% 141.9% 17.5% 39.6% 17.3% 30.9% 41.2% 41 2% 32.0% YoY (%) 31.9%

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Consol. Statement of Assets & Liabilities

in Rs. million SOURCES OF FUNDS : Shareholders' Funds : Capital Reserves & Surplus Minority Interest LOAN FUNDS: Secured Loans Unsecured Loans Deferred Tax Liability (Net) Total APPLICATION OF FUNDS : Fixed Assets : Gross Block Less : Depreciation Net Block Capital WIP (including capital advances) Investments Current Assets, Loans and Advances: Inventories Sundry Debtors Cash & Bank Balances Loans & Advances Less: Current Liabilities and Provisions Liabilities Provisions Net Current Assets Miscellaneous Expenditure (To the extent not written off or adjusted) Total As at Dec 31, 2011 Dec' 1,742 14,689 5,259 4,978 As at Dec 31 2010 Dec' 1,741 11,880 6,573 856

16,431 33

13,620 41

10,237 246 26,947

7,429 174 21,265

20,600 4,825 15,775 799 16573 7,287 4,029 4,129 6,657 22,102 9,085 6,995 , 16,079

16,574 3,570

13,729 4,278 9,451 414 9866 5,446 2,689 6,364 5,162 19,661 6,087 4,306 10,393 ,

9,866 1,200

6,023 781 26,947

9,269 930 21,265

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Disclaimer

Some of the statements made in this presentation contain forward looking information that involve a number of risks and uncertainties. Such statements are based on a number of assumptions, estimates, projections or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. Actual results can differ materially from those anticipated in the Companys forwardlooking statements as a result of a variety of factors, including those set forth from time to time in the Companys press releases and reports and those set forth from time to time in the Companys analyst calls and discussions. We do not assume any obligation to update the forwardlooking statements contained in this presentation. No part of this presentation shall form the basis of or may be relied upon in connection with any contract or commitment This presentation is being presented solely for your information and is subject to change commitment. without notice.

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ThankYou

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