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October 2016

A snapshot

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
> 60 years
Operational
experience

Global
Revenues &

~ $ 4.9 bn

9th largest
Generic co. in
US in
prescriptions

Market Cap

1st Company
To launch
biosimilar of
Adalimumab
anywhere in
the world

19,000+
employees
across the
globe, with
~1200 for
R&D

>16% CAGR
In global
revenues
and net
profits
(FY’11-FY’16)

~20% CAGR
In net worth
(FY’11-FY’16)

25+ mfg.
sites
Producing
> 15bn pills
annually

1190
patents
filed globally

1st Indian
Company To
discover NCE
in-house:
Lipaglyn
(Saroglitazar
)

8 R&D
Centers For
NCE, APIs,
Generic
formulations
, Biosimilars
&Vaccines

Among top 5
Pharma
companies in
India

Important Recognitions
$ 1.5 Bn
CNBC – TV
18 India
Innovator
Award
2013

CII
Industrial
Innovation
Awards
2015

$ 1 Bn
$ 400 Mn
₹ 1000 cr
₹ 200 cr
•1995

•2000

•2016

•2010

•2006

Performance Tracker

49x Growth
In 20 Years

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Zydus Wellness - An Introduction

Zero Debt
Company
Market Cap
USD ~440
Mio
Market
Leading
Brands

2
Manufacturing Sites

Over 25
Years of
Operational
Excellence
1000+
Employees

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The Journey of Zydus Wellness

2009
2005
1991
1988

Everyuth
Skincare
range

SugarFree
Natura
with
Sucralose

2006
Acquisition
of
Carnation
Nutra
(CANFL)

Restructured
&
Renamed
Zydus
Wellness
( Subsidiary
of CHL)

2013

2014~
Distribution
revamp

Everyuth
relaunched

Sugar Free
with
Aspartame
Cadila Healthcare
(Consumer Div.)

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Segments

Sugar Substitute

3 Categories
4 Brands

Skincare

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
hourglass shape
pack
SugarFree Diet
Sugar: Spoonful
equivalent
SugarFree Sweet
Drops : Sweetness in
liquid format

Everyuth Scrubs:
Pioneers in India

Everyuth Peel-offs:
Pioneers in India
Nutralite in microwavesafe tubs
Later fortified with O3

Everyuth Face
Wash in sachets

Everyuth
Hydrogel Srcub
Everyuth Golden
Glow Peel-off

Better User experience + Superior Benefits + Accessibility and convenience

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Infrastructure & Operations

Manufacturing
facilities :
Ahmedabad &
Sikkim
Unit-II coming
up in Sikkim

Pan India operations through
23 Cold chain warehouses
27 Ambient warehouses

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 &
Development
focus

Quality
Manufacturing

In-house Emphasis on
Research
Quality.
team
Cost saving
developing Initiatives
future
like SLIM,
products
etc.

Supply Chain
Efficiency

Marketing
Initiatives

Sales &
Distribution
Expansion

Managing Innovations In Revamped
G2M
cold as well Communication
Strategy
And Sales
as non-cold
Total Reach*
Promotion
chain.
at 800 k
Cost saving
outlets.
Initiatives
like PRISM,
PSM, etc.
* Source: Nielsen

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Strong Financial Position

FY 2016

Gross Sales

• ₹ 4570 Mio
• US$ ~ 69 Mio

Net Profit

• ₹ 1017 Mio
• US$ ~ 15 Mio

Net Worth

• ₹ 4772 Mio
• US$ ~ 72 Mio

Cash Position**

• ₹ 3962 Mio
• 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

21.2%

19.9%

1947

FY09

FY12

Net Profit

FY16

FY09

₹ Mio.

FY12

Market Cap.

1017
678

FY16*

$ in Mio.

438

23.7%

291

20.1%

238
12.2%

FY09

45

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%

28.2%

28.4%

FY13

FY14

60%

50%
40%
28.8%

30%

30.5%

33.5%

30.2%

30.1%
25.9%

15%

FY09

FY10

FY11

FY12

Dividend(%)

FY15

FY16

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)

502

2,293

2,084

437

▲ 10.0%

▲ 14.8%

21.9%

21.0%

YTD 15-16

YTD 16-17

PBT (Rs. Mio. and % to Op. Income)

YTD 15-16

YTD 16-17

Profit After Tax (Rs. Mio.)

555

635
486

553

▲ 14.7%

▲ 14.2%
27.7%

26.5%

YTD 15-16

24.2%

23.3%

YTD 16-17

YTD 15-16

YTD 16-17
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Brand wise Initiatives
“Smartness
Wali
Sweetness”

Maintained leadership position in the sugar substitute category
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

Dialing Innovation

• Everyuth: Relaunch in the face wash space with
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

Thrust on brand building

• Enhanced consumer touch points through relevant
activations focused on consumer recruitment, E.g.
Culinary programmes for SugarFree
• Consumer advocacy through digital and medical
marketing routes

Expanding Geographical foot
print

• Enter new markets in GCC and Africa led by SugarFree

Pillars of Success

A Clear
Strategy For
Continuous
Growth

Merit driven
Professional
Organization

Strong
Distribution that
Feeds
Consumers
Demand

Portfolio of
Strong Brands

Endeavoring To
Improve Quality
Of Life Through
Innovation

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
International
Business
Width & Depth
of Distribution

Inorganic
Growth
New Product
Development

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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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