1

A snapshot

October 2016
Agenda

2
Our Vision

We Bring Wellness To Your Life …

We Will Create New Experiences
By Our Products That Will
Nourish, Nurture And Energize
Your Life.
We Shall Lead The Way Through
Innovation.

3
Our DNA …

To Build New
Emergent Categories
With Differentiated
Product Propositions.

Philosophy Of Building
Products That Are
“Good For You”.

4
Our Values

5
Promoters : The force behind Zydus Group

Late Shri Ramanbhai Patel

Founder – Zydus Group

Pankaj. R. Patel
CMD – Zydus Cadila

Dr. Sharvil. P. Patel

DMD – Zydus Cadila
Chairman – Zydus Wellness

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Zydus Cadila Group : An Introduction

~ $ 1.5bn 1st Indian

9th largest 19,000+ 1st Company Company To
> 60 years Global Generic co. in employees To launch discover NCE
Operational Revenues & US in biosimilar of in-house:
across the
experience ~ $ 4.9 bn prescriptions Adalimumab Lipaglyn
globe, with
~1200 for anywhere in (Saroglitazar
Market Cap the world
R&D )

>16% CAGR 8 R&D

~20% CAGR 25+ mfg. Centers For Among top 5
In global 1190 NCE, APIs,
revenues In net worth sites Pharma
patents Generic
and net (FY’11-FY’16) Producing companies in
filed globally formulations
profits > 15bn pills India
, Biosimilars
(FY’11-FY’16) annually &Vaccines

Important Recognitions
$ 1.5 Bn
CII $ 1 Bn •2016
CNBC – TV
Industrial $ 400 Mn •2010
18 India
Innovation
Innovator
Awards
₹ 1000 cr •2006
Award ₹ 200 cr •2000 49x Growth
2015
2013
•1995
Performance Tracker In 20 Years

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Zydus Wellness - An Introduction

Zero Debt
Company
Market Cap
USD ~440
Mio
Market 2
Leading Manufactu-
Brands ring Sites
Over 25
Years of
Operational
Excellence
1000+
Employees

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The Journey of Zydus Wellness

2014~
2009 2013
2006 Restructured Distribution
2005 Acquisition &
Everyuth
revamp

of Renamed
SugarFree relaunched
Zydus
1991 Natura
Carnation
Nutra Wellness
Everyuth with ( Subsidiary
(CANFL)
Skincare Sucralose of CHL)
range
1988
Sugar Free
with
Aspartame

Cadila Healthcare
(Consumer Div.)

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Segments

Sugar Substitute

3 Categories Skincare
4 Brands

Health foods

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Brand’s market position

Category Position Share %

Sweetener 1 93.6

*
Fat Spread 1 39.8

Scrub 1 30.6

Peel-off 1 92.1

Face Wash 9 1.4

Facial Cleansing 6 6.0

Source: Nielsen data MAT Mar 2016 * Source : MAT December’15

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 A Healthier Sugar Alternative

Journey from prescription product to

direct to consumer route

Leading in sugar substitute category with

market share > 93%

Continuous efforts to promote health & fitness through media

campaigns and celebrity endorsements

Sugar Free Natura – For culinary usage, Sugar Free Gold – For
Table top Usage

Available in pellets, powder & liquid drops format to suite

different usage occasions.

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 Nutralite is India’s No.1 Table
Spread

Healthier alternative to Butter

Cholesterol Free, has no Trans

Fats and enriched with Omega-3.

Pan-India dedicated network to handle

cold-chain products.

Expanding in the retail & Food Service

segment.

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 India’s leading brand in skin cleansers
category

Leading in Scrubs and Peel-offs segment

despite heavy competition

new Offers unique solutions for healthy

skincare

Revamped the Face wash Range

Delivered in tubes and convenient

single-use sachets.

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Celebrity Endorsements

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Innovation Wall

SugarFree in Everyuth Scrubs: Everyuth Face

hourglass shape Pioneers in India
pack Wash in sachets

SugarFree Diet Everyuth Peel-offs: Everyuth

Sugar: Spoonful Pioneers in India
equivalent Hydrogel Srcub

SugarFree Sweet Nutralite in microwave-

safe tubs Everyuth Golden
Drops : Sweetness in
liquid format Later fortified with O3
Glow Peel-off

Better User experience + Superior Benefits + Accessibility and convenience

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Infrastructure & Operations

Manufacturing
facilities :
Ahmedabad &
Sikkim Pan India operations through
23 Cold chain warehouses
Unit-II coming 27 Ambient warehouses
up in Sikkim
Sikkim
R&D center
Ahmedabad

1000+ Distributors
700+ Feet-on-street
200 K outlets direct coverage

ISO 22000 and

ISO 14001 certified
GMP certified

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End-to-end process

Research & Sales &

Development Quality Supply Chain Distribution
Marketing
focus Manufacturing Efficiency Expansion
Initiatives

In-house Emphasis on Managing Innovations In Revamped

Research Quality. cold as well Communication G2M
team Cost saving as non-cold And Sales Strategy
developing Initiatives chain. Promotion Total Reach*
future like SLIM, Cost saving at 800 k
products etc. Initiatives outlets.
like PRISM,
PSM, etc.
* Source: Nielsen

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Strong Financial Position

FY 2016
• ₹ 4570 Mio
Gross Sales • US$ ~ 69 Mio

• ₹ 1017 Mio
Net Profit • US$ ~ 15 Mio

• ₹ 4772 Mio
Net Worth • US$ ~ 72 Mio

• ₹ 3962 Mio
Cash Position** • US$ ~ 60 Mio
*Conversion at closing exchange rate as on 31st March 16 at 1 USD = ₹ 66.23
** Cash & Bank Balances includes liquid investments

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 Healthy Financials

Gross Sales ₹ Mio. EBIDTA Margin

4570 22.9%
3446 19.9% 21.2%

1947

FY09 FY12 FY16 FY09 FY12 FY16*

₹ Mio. $ in Mio.
Net Profit Market Cap.

1017
438
23.7%
678
291
20.1%

238
12.2%
45

FY09 FY12 FY16* FY09 FY12 FY16*

• On a like to like basis
• (% mentioned within the bar represents % of total operating income)

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Consistent Dividend Payout

65%
60% 60% 60%

50%

40%
33.5%
28.8% 30% 30.5% 30.1%
28.2% 28.4%
25.9%
30.2%
15%

FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16

Dividend(%) Payout(% of NP)

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 Zydus Wellness Limited

H1 FY- 2017 Investor Update

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Key Performance Highlights (H1 – Apr 16 to Sep 16)
Total Income from Operations (Rs. Mio.) EBIDT (Rs. Mio. and % to Op. Income)

2,293 502
2,084 437
▲ 10.0% ▲ 14.8%
21.9%
21.0%

YTD 15-16 YTD 16-17

YTD 15-16 YTD 16-17

PBT (Rs. Mio. and % to Op. Income) Profit After Tax (Rs. Mio.)

635 555
553 486

▲ 14.7% ▲ 14.2% 24.2%

27.7%
26.5% 23.3%

YTD 15-16 YTD 16-17 YTD 15-16 YTD 16-17

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 Brand wise Initiatives

“Smartness
Wali • Maintained leadership position in the sugar substitute category
Sweetness” with market share greater than 93%.
(Source, MAT Sept’16 report)

• Launched two new advertising campaigns “Smartness Wali

Sweetness” with our new brand ambassador Parineeti Chopra
and our existing culinary brand ambassador Sanjeev Kapoor

• Recognition of the new

campaign amongst the
top three advertisements
as per the national
publication.

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 Brand wise Initiatives

• Growth led by maintaining leadership position in the facial cleansing segment of Peel Off and
Scrub.

• EverYuth Scrub has maintained its number one position with a market share of 30.4%.

• EverYuth Peel Off Mask has maintained its number one position with a market share of 91.7%.
(Source, MAT Sept’16 report)

• Continued support for Scrub and Peel Off to drive the category penetration through various
media activities and TV campaign.

• A new campaign focusing on

recruiting new users for EY
scrub has been rolled out
recently.

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Brand wise Initiatives

• The brand maintained its market leadership

in butter substitute category.

• Supported the key cities with various brand

building activities like campaigns around
World Health Day and Mother’s Day were
amongst the most successful and talked
about campaigns on digital platform.

• Growth rate is largely led by institutional

segment.
Plans for Financial Year 17

• SugarFree: New variant launch to address the adoption

barriers through natural ingredients

• Everyuth: Relaunch in the face wash space with

Dialing Innovation stronger claims and new campaign

• Nutralite: Brand Restage with new products to widen

fat spread consumption in the retail segment

• Drive expansion in small towns through small packs

Leveraging the route to
market • Grow modern retail on the back of sharper executions
and shopper insights
Plans for Financial Year 17

• Continue investments on mass media around the new

campaigns

• Enhanced consumer touch points through relevant

Thrust on brand building activations focused on consumer recruitment, E.g.
Culinary programmes for SugarFree

• Consumer advocacy through digital and medical

marketing routes

Expanding Geographical foot

• Enter new markets in GCC and Africa led by SugarFree
print
Pillars of Success

A Clear
Strategy For
Continuous
Growth

Merit driven
Portfolio of
Professional
Strong Brands
Organization

Strong
Endeavoring To
Distribution that
Improve Quality
Feeds
Of Life Through
Consumers
Innovation
Demand

People centric and Values driven

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Key business Challenges & Opportunities

Expand the
consumer base

Build
competitive
ness

Continue to
Maintain
Leadership in
all categories

Building
Inorganic
International
Growth
Business

New Product
Width & Depth
Development
of Distribution

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Agenda

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Wellness Strategy for future..

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Organic Growth - Pillar Brand Focus

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International Growth Strategy

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M&A – Domestic / Overseas

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Agenda

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Summary – To Focus on core business

Strategy For Profitable Growth

Thrust On Power Brands

Innovation - The Way Of Life

Building International Presence

Inorganic Growth Opportunities

Maximize Share Holder Value

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Thank You

Contact details:
Zydus Wellness Limited
House No. 6,7 Sigma Commerzone,
Nr. Iskcon Temple, S G Highway,
Ahmedabad (Gujarat) INDIA
Pincode : 380015
www.zyduswellness.in
Landline: +91 79 6777 5888

No part of this presentation may be reproduced, quoted or circulated without prior written approval from Zydus Wellness Ltd.
This presentation may include certain “forward looking statements” , based on current expectations, within the meaning of applicable laws and
regulations. Actual results may differ and the company does not guarantee realization of these statements. The Company also disclaims any obligation
to revise any forward-looking statements . The viewers may use their own judgment and are advised to make their own calculations before deciding
on any matter based on the information given herein

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