KARV Y IEEE (October 18,2012 Marico Exhibit 7: Marico’s Sales Mix (%) Sepments Fyo9 FIO FYI _FYI2_FYISE_FYME FY Coconut ofl 3% 3% 92% «HTM —«2% «2M Other hai oil 2% «21% «21% AWB: «21% Saffola Oil 20% 16% 16% 164 1SK 16% 16% 1B 19% 3% 2% UH BR HH 25H Kaya Sales Te 7h MOTH OTH Paras's Personal Care Business 0% 0% 0% O% 3% Total 100% 100% 100% 100% 100% ‘Source: Company, Karey Institutional Research Exhibit 8: Volume Market Share in Key Categories Exhibit 9: Copra Consist ~40% of Total 7300 6000 5,00 44000 3,000 oFvIO nrvio ryt corvin 55 sopra OES rv QurvO9 Qurvio rvs auevos arnt Brand & Territory Market Share (%o) Rani Coconut Oils - (Parachute and Nika) 56 Ist Saffola Oils - Premium Refined Oils in Consumer Packs 58 Ist Hair Oils Parachute Advansed, Nihar, Hair & Care) 2 and Kaya Skincare solutions 35 Ist Deodorants - (Setwet and Zatak) 63 and Parachute Coconut Oil- (Bangladesh) 80 Ist PPost wash Leave -On Serums (Livon and silk & Shine) 84 st * X-Men Mens Shampoo (Vietnam) ” Ist * Hair Code & Fiancée- Egypt 57 Ist Hair Creams/Gels (india) Setwet) 7 Ist ‘Source: Compuny, Karey Institutional Research, * Value marketshare 2. Expect Better Operational Profitability We expect Marico's operational profitability would improve on account of softening of key raw material prices, acquisition of high-margin personal care business of Paras Pharma, and better operational excellence in the international business. We expect Marico can show 24% EBITDA CAGR in FYI2-15E as compared to 19% CAGR in FY09-12. RM Cost Exhibit 10: Sunflower Oils Consist ~13% of Total RM Cost ily Ill orviz eva aurvis aorvis orig @rvio urvi0 evi ary evo avin ayia rvia rv curva Quis omnl Quevos rvs BFVO nEYO9 evo 8 Source: Company, Karey Institutional Research ‘Source: Company, Karey Institutional Research EBITDA Mix to Improve: We expect better operational performance of global business due to backward integration and inclusion of high-margin personal care business of Paras Pharma would reduce the profitability dependence on coconut oil. aKARV Y ||| EEE (October 18,2012 Marico Exhibit 11: Marico’s EBITDA Mix (%) EBITDA Mix (%) ya FYE EYISE Coconut 192% 358% Other hair oil 231% 21.0% 21.6% Saffola Oil MI% 120% 129% 1D 205% 154% 211% Kaya Sales 63% -43% 10% Paras's Personal Care Business 00% 41% 47% Total 100% 100.0% 100% “Sources Company, Karay Insttational Research EBITDA Margin to Rise: We expect improved overall EBITDA margin profile of Marico in coming years. Marico is expected to maintain ~14% EBITDA margin in FYI2-15E as compared to average 12% EBITDA margin in past nine years and average 19% in the past three years. Exhibit 12: EBITDA margin 150 130 no 90 70 FYOS FYO4 FYOS FYOS FYO7 FYOS FYO9 FYIO FYI FYI2 FYISE FYMEFYISE sme EBITDA Margin (%)_- Avg. EBITDA Margin (%) “Sources Company, Karvy Istttional Research 3. Kaya Business — Expect Breakeven by FY13-end Marico runs skin care businesses though Kaya brand and operates 82 stores in India and 25 stores overseas. The Company has been running this business since over last nine years and today it contributes ~7% to its total sales, However, even though Marico is in this business since a long time, it continues to incur losses even at operational level. Marico has incurred loss to the tune of Rs. 1 bn in the past five years for just operating this business Meanwhile, Kaya business has improved its operational performance post acquisition of high-margin Derma Rx. While the domestic Kaya business reached almost the breakeven level in FY12, Marico's Management expects the overall Kaya business to breakeven by FY13-end, 2STOCK BROKING (October 18,2012 KARVYiIIl Marico Exhibit 13: Key Assumptions Key Assumptions RAY AYE FYE Parachute Rigid Pack Volume Growih(%) 103. «ASSOC Coconut Hait Oil Sales Mix 31932550883 Saffola Sales Growth (%) 6s 28298 920.9 Saffola Sales Mix (%) 500 «SSSR 8D TBD Sales Mix (%) BB 36 30D Kaya Sales Mix (%) 76 70 676 [Bective Tax Rate (%) m6 9S SSO Source: Company, Karey Institutional Research a