Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Shareholder Meeting (June 2022)
38 slides from Tata Consumer Products's shareholder meeting presentation, Jun 27, 2022
Slide 1: 59th Annual General Meeting, Financial Year 2021-22
59th Annual General Meeting Financial Year 2021-22 Presentation by Sunil D’Souza Managing Director & CEO 27th June 2022
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such expectation
Slide 3: Agenda
Agenda About Us Key Highlights & Progress against Strategic Financial Performance Priorities Business performance – Business performance – Awards & Recognitions India International
Slide 4: We are Tata Consumer Products
We are Tata Consumer Products In a nutshell Integrated F&B company #2 branded tea player with rich heritage of Tata, globally aspiring for a larger share of the FMCG World ₹ 12.4K crore consolidated Reach north of 200mn revenue in FY22 with current households in India and market cap of ~₹72k* Cr. di
Slide 5: Key Highlights & Financial Performance
TATA CONSUMER PRODUCTS ) CO ORRIN SC CC Key Highlights & Qi Financial Performance
Slide 6: Key Highlights - FY22
Key Highlights - FY22 • Consolidated Revenue up 9% (like Consolidated EBITDA for the for like), net of International year up 11% YoY, with an Foodservice business exits EBITDA margin expansion of • Group Net Profit up 9%. 50bps YoY • Overall, India business1 up 13% with Proposed Dividend Rs 6.05/sha
Slide 7: Key Highlights - FY22 (contd.)
Key Highlights - FY22 (contd.) During the year we gained market We continued to power our brands – In line with our strategic share in both the core India business A&P up 29% YoY. priority of exploring new categories of tea (~100bps)3 and opportunities, we acquired Tata We continue to invest in buil
Slide 8: Key Businesses snapshot – FY22
Key Businesses snapshot – FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 5,001 2,913 1,295 2,040 1,070 12,425 Revenue Growth 10% 19% 0% 1% 11% 7%[9%] Constant currency growth 0% -3% 11%
Slide 9: Group Performance at a glance – FY22
Group Performance at a glance – FY22 ₹ 12,425 Cr. ₹ 1,749 Cr. ₹ 1,508 Cr. ₹ 1015 Cr. ₹ 1056 Cr. ~₹ 2,486 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 7%[9%]# 11% 12% 9% 12% Margin% 14.1% 12.1% 8.2% 8.5% Margin expansion +50 bps +60 bps +20 bps +40
Slide 10: Dividend and Market Capitalization
Dividend and Market Capitalization Consistent growth in dividend pay out Step change in Market Capitalization 600 7 80,000 800 6.05 760 500 6 70,000 664 700 5 60,000 600 400 4.05 50,000 500 4 300 40,000 367 400 2.7 2.35 2.5 2.5 3 30,000 269 244 300 200 2 20,000 200 149 100 1 10,000 100 0 0 0 0 FY17
Slide 11: Progress against Strategic Priorities
ORO SC CC Progress agains Strategic Priorities
Slide 12: Strategic Priorities
Strategic Priorities The picture can't be displayed. Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 12
Slide 13: New milestones in S&D transformation
New milestones in S&D transformation Direct reach Total Numeric reach1 +18% Increase +15% Increase 0.6M By Mar’23 Mar’22 Tea Salt Digital transformation Distributors Rural/Semi-Urban distributors DMS DMS Lite SSFA All numbers are for FY22 vs FY21 unless specified otherwise 1 Increase in average numb
Slide 14: Winning in alternate channels – MT & E-commerce
Winning in alternate channels – MT & E-commerce A fit for purpose assortment Modern trade business crosses 1000 cr. MT up 30% y-o-y E-commerce market share for Tea at 41.9% way ahead of competition E-commerce up 56% y-o-y E- commerce channel (% of sales) 7.3% 5.2% 2.5% FY20 FY21 FY22 All numbers are
Slide 15: Powering our brands
Powering our brands India business1 A&P FY22 +29% YoY Tata Tea Premium continued its hyperlocal campaign by Tata Coffee Grand activated the festival of Pongal in the state of TN with a celebrating the unique diversity of our nation with the ‘Desh ki TVC led campaign which celebrated the sounds of fe
Slide 16: Powering our brands
Powering our brands The new Tata Salt Lite and Superlite TVC addresses a relevant consumer tension to reduce their salt intake by Guaranteed quality, authentic taste, hygienically packed; pivoting to an alternative Shuddh by Tata Salt is an iodized salt that is sourced from Market share option of lo
Slide 17: Driving premiumization
Driving premiumization Tata Sampann Values Added Salt Volumes Revenue Coffee Tea TTG care as % of TTG Volumes All numbers for FY22 vs FY21 17 17
Slide 18: Growth across key metrics
Growth across key metrics India Packaged Beverages India Foods International Beverages Revenue growth Revenue growth Revenue growth (like for like, net of exits) 32.8% 18.3% 17.7% 11.9% 2-year CAGR 11.6% 2-year CAGR 2-year CAGR 6.6% 6.4% 19% 18% 0.4% 6% 0.1% FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 F
Slide 19: Continuing the momentum on innovation – FY22
Continuing the momentum on innovation – FY22 Innovation to sales contribution FY22 vs FY21 19 19
Slide 20: Creating an agile and efficient supply chain
Creating an agile and efficient supply chain Transformation journey to an integrated and digitised supply chain well underway Optimization of India Cost-saving from Digital journey well Future-readiness Integrated Production efficiencies in the underway IOT enabled flagship factory & Delivery networ
Slide 21: Global Simplification Plan announced…
Global Simplification Plan announced… Proposed Transactions Consolidation of minority interest from Tata Coffee & TCP UK Group to TCPL #1 #2 TCL combines with TCPL /WOS Purchase of minority interest in of TCPL, through a composite UK business from Tata scheme of demerger and Enterprise Overseas (TEO
Slide 22: …to unlock synergies and value for shareholders
…to unlock synergies and value for shareholders Operational efficiencies ► Align corporate structure with management & administrative structures 01 for management, legal & administrative costs ► Significant reduction in # of entities ► Converge the minority interests of subsidiaries at TCPL level 02
Slide 23: New engines of growth
New engines of growth Revenue growth – FY22 23
Slide 24: Progress on inorganic acquisitions
Progress on inorganic acquisitions Tata Soulfull NourishCo 1st Himalayan broke even at Tata Copper Plus Water Expanded distribution 100-day integration Soulfull to Tata Soulfull EBIT level for the 1st time scaled to > 3x in FY22 by 80% rebranding since inception Forayed into new Signed an MOU with I
Slide 25: Embedding sustainability
Embedding sustainability Sustainable Sourcing Sustainably Sourced tea ~100% internationally and ~60% in India Water Management Water, sanitation and hygiene for 25,000 members in Assam and Himachal Climate Change Reduced GHG EMISSIONS by 26%*; Improved renewable energy to 24%** Sustainability Initia
Slide 26: Business performance – India
0 OOO Ss e © 6© ©~ & 8 . S * ee Business performance — India
Slide 27: India Packaged Beverages
India Packaged Beverages Performance commentary Continuing the innovation agenda , +6% • Revenue for the year grew 6% lapping 32% growth in FY21. • EBIT margin for India Beverages (old segment classification) was up 400bps YoY in FY22.3 we launched an FY22 Revenue • Coffee Volume grew 44% YoY with A
Slide 28: India Foods
India Foods Tata Q launched 6 new variants - Hot & Spicy Performance commentary +19% Noodles, Pepper Masala • For the year, salt grew 17%, after • Tata Sampann continued its strong Noodles, Classic Chicken growing 17% in FY21. trajectory bringing FY22 volume Seekh Kebab, Spicy growth to 28%. Jalapen
Slide 29: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) 221% Performance commentary 191% 191% Sales as a % of PY 344Cr 186% • For the year, revenue grew 83% • The business unlocked new 151% albeit on a low base that was geographies and markets with good impacted by the pandemic, consumer acceptance. 109% FY22 Revenue bringing
Slide 30: Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)
Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary +11%# • Revenue for the year continued on Extractions a strong trajectory, up 11%, after • Overall extraction business grew growing 14% in FY21. 19% in FY22 driven by both Vietnam FY22 Revenue extractions (premiumization and G
Slide 31: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary 96% • Revenue for the year grew 76%, despite two waves of the pandemic, bringing the 2-year CAGR into • Added 50 new stores and entered 8 new cities during the year. Stores re-opened* positive territory. • Delivery channel salience remained ahead of pre-Cov
Slide 32: Business performance – International
0 OOO Ss 5 2 OCR SO Business performance - International
Slide 33: UK
UK Performance commentary -2% • Revenue for the year declined 2%# on an elevated base that saw pantry loading last year. 2-year revenue • We gained market share in F&H category driven by strong performance of Good Earth, Tetley Supers and FY22 Revenue CAGR was marginally positive. # Tetley Herbals i
Slide 34: USA
USA Performance commentary Flat • Coffee: Revenue for the year stayed flat (constant currency) after growing 9% in FY21. • Tea (excluding Empirical): Revenue declined 8% (constant currency) in FY22 on an elevated FY22 Coffee Revenue base of 16% growth in FY21. Growth^ • Despite unprecedented inflati
Slide 35: Canada
Canada Performance commentary -7% • Revenue declined 7% (constant currency) in FY22 due to pantry up- stocking that led to 15% growth • During the year, the ecommerce channel performed well and delivered double digit growth. FY22 Revenue (constant currency) in FY21. Growth^ Tetley emerged as the Mos
Slide 36: 09 Awards
Slide 37: Awards & recognition
Awards & recognition 1. Corporate Governance 2. Most Chosen FMCG Brand Featured in the ‘Leadership’ category Tata Consumer Products awarded as the on the Indian Corporate Governance 5th Most Chosen FMCG Brand of India for assessment for second year in a row 2020 by Kantar Worldpanel by IiAS – a test
Slide 38: Thank You
Thank You Last 10-year financials are available on Historical financial data tataconsumer.com TataConsumer tata-consumer-products/ tataconsumerproducts/ 38
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