Tata Consumer Products Limited · NSE:TATACONSUM

Tata Consumer Products — Q3 FY2021 Earnings Presentation

47 slides from Tata Consumer Products's earnings presentation, Feb 2, 2021

  1. Slide 1: Filing cover letter to stock exchanges

    0 TATA February 02,2021 The National Stock Exchange of BSE Ltd. The Calcutta Stock India Ltd. Corporate Relationship Dept. Exchange Ltd. Exchange Plaza,5th floor I Floor, New Trading Wing 7 Lyons Range Plot No. C/1,G Block Rotunda Building, PJ Towers Kolkata700001 Bandra Kurla Complex Dalal Street S

  2. Slide 2: Investor Presentation – Quarter ended December 2020

    Investor Presentation For the quarter ended December 2020 2nd February’21

  3. Slide 3: 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

  4. Slide 4: Agenda

    Agenda Executive summary Performance overview Progress against Strategic Priorities Macros Business performance – Business performance India – International Financial performance Outlook

  5. Slide 5: 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 ₹ 9.6K crore consolidated Reach to almost 200mn revenue in FY20 and current households in India and market cap of ~₹54k Cr. dist

  6. Slide 6: Executive Summary

    5 OC OURO 0 OCURPCMEP SRE © 0 O 9 | Executive Summary TATA CONSUMER PRODUCTS

  7. Slide 7: Executive Summary (Quarter ended 31st Dec'20)

    Executive Summary (Quarter ended 31st Dec’ 20)  During the quarter, Consolidated Revenue grew 23% with Group Net Profit growth of 29%.  India business topline accelerated sequentially while International markets also delivered strong performance.  Overall, India business# grew 36% led by o India

  8. Slide 8: Performance Overview

    5 OC OURO 0 OCURPCMEP SRE © 0 O 9 | Performance Overview TATA CONSUMER PRODUCTS

  9. Slide 9: Key Businesses snapshot – Q3FY21

    Key Businesses snapshot – Q3FY21 International Business In ₹ Cr India Beverages India US Coffee International Foodservice Tata Coffee Consolidated (unless specified) Foods Tea (International) (incl. Vietnam) Revenue 1,275 631 321 549 56 212 3,070 Revenue Growth 46% 19% 11% 14% -28% 1% 23% Constant c

  10. Slide 10: Key Businesses snapshot – 9MFY21

    Key Businesses snapshot – 9MFY21 International Business In ₹ Cr India Beverages India US Coffee International Foodservice Tata Coffee Consolidated (unless specified) Foods Tea (International) (incl. Vietnam) Revenue 3,396 1,800 980 1468 146 684 8,565 Revenue Growth 30% 17% 19% 13% -36% 10% 18% Const

  11. Slide 11: Group Performance at a glance – Q3FY21

    Group Performance at a glance – Q3FY21 ₹ 3,070 Cr. ₹ 365 Cr. ₹ 298 Cr. ₹ 237 Cr. ₹ 1,550 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$ Growth (Y-on-Y) 23% 12% 13% 29% Margin% 11.9% 9.7% 7.7% Margin expansion -120 bps -90 bps +30 bps (Y-on-Y) 2.37 (EPS) EPS +29% (EPS) EPS Growth (Y-on-Y) ^

  12. Slide 12: Group Performance at a glance – 9MFY21

    Group Performance at a glance – 9MFY21 ₹ 8,565 Cr. ₹ 1,253 Cr. ₹ 1,080 Cr. ₹ 856 Cr. ₹ 1,550 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$ Growth (Y-on-Y) 18% 26% 29% 47% Margin% 14.6% 12.6% 10.0% Margin expansion +80 bps +100 bps +190 bps (Y-on-Y) 8.71 (EPS) EPS +50% (EPS) EPS Growth (Y-

  13. Slide 13: Progress against Strategic Priorities

    5 OC OURO 5 © DR CN OO Cc Progress agains Strategic Priorities

  14. Slide 14: 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 13

  15. Slide 15: Strengthening & powering our brands

    Strengthening & powering our brands Tata Tea Gold - Shoojit Sircar directed film celebrates the unique Bengali culture code of extreme connoisseurship in F&B choices #Spiceupyourhealth – Digital campaign aimed to drive awareness around natural oils in spices & TATA Tea Chakra Gold, became the first

  16. Slide 16: Fueling the Innovation Funnel - India

    Fueling the Innovation Funnel - India Tata Tea Tulsi Tetley Green Tea Tata Tea Tata Sampann Tata Tea Immune Gold Care Poha (Thin) Quick Chai Goodness of green tea now Green tea now with immunity Tata Tea Gold with a blend High in fiber and a source Pre-boiled tea in exciting with immunity boosting p

  17. Slide 17: Fueling the Innovation Funnel - International

    Fueling the Innovation Funnel - International UK USA Australia & Canada Tetley Tea Good Earth Tetley British blends Quick Chai/ Tata Coffee Tetley Tea Tetley Immune+ Range of herbal infusions Good Earth Tetley British Blends Lift and Shift launches from Naturally fortified range of 2 more Super Teas

  18. Slide 18: Unlocking synergies

    Unlocking synergies Broad timelines Status Mar’20 Q1 ‘21 Q2 ‘21 Q3 ‘21 Q4 ‘21 • Integration expected to be substantially Integrated Org structure completed by Q4 FY21; to enable better Future Ready execution of strategic roadmap Process Harmonization Organization • Synergy identification completed a

  19. Slide 19: India integration update – S&D impact

    India integration update – S&D impact Combined F&B portfolio Consolidation of distributors Dedicated Sales Reps Outlets billed December ‘20 December ‘20 Selling the combined F&B portfolio to 100% of distributors March ‘20 March ‘20 Mar'20 Dec'20 Rural feet on street Modern Trade & Ecommerce Channel

  20. Slide 20: New engines of growth

    New engines of growth Sampann Values Added Salt Coffee Nourishco 19

  21. Slide 21: Acquisition of Kottaram Agro Foods Pvt. Ltd.

    Acquisition of Kottaram Agro Foods Pvt. Ltd. Summary Transaction Overview  In line with one of our strategic priorities to expand into new categories, we  Acquisition of 100% shares in Kottaram Agro Foods Pvt. for a have entered in a SPA to acquire Kottaram Agro Foods Pvt. Ltd, the owner considera

  22. Slide 22: Strategic fit for our Health & Wellness portfolio

    Strategic fit for our Health & Wellness portfolio Value Creation Key synergies with TCPL  Build a platform with differentiated offerings in the Health & Wellness space  Significant scope to expand distribution - 15,000 outlets (Soulfull) vs 2.4m (estimated market size of Rs. 20,000 Cr.) total nume

  23. Slide 23: Continued focus on ESG

    Continued focus on ESG For better planet  Climate Leadership - TCPL is on CDP A- list in 2020, placing us in CDP’s Leadership band, second year in a row.  Water Stewardship - Project Jalodari in Himachal and Assam benefitting 25000 people directly.  Energy consumption - Carbon footprint decreased

  24. Slide 24: Macros

  25. Slide 25: Macro and commodity overview

    Macro and commodity overview Sharp recovery in economic activity, post Volatile commodity prices weakness in Q1 Tea Prices Coffee Prices % 5.2 190 188 113 115 2.1 4.4 2.3 4.1 3.1 189 $c / KG 111 4.0 203 $c/ LB 2.0 0.3 -0.9 219 272 1.5 1.4 1.2 -2.8 194 ₹ / KG -2.4 -9.0 -7.5 -2.0 $c/ LB -8.6 74 104 16

  26. Slide 26: Quarterly category performance

    Quarterly category performance Growth across most categories and regions • Regular black hot tea category saw US UK Canada India declines in US in contrast to strong growth seen in Q1 and further decelerating from modest growth in Q2. In Canada, the category had a strong quarter, +26.4% accelerating

  27. Slide 27: Business performance - India

    5 OC OURO 5 6 SPREE Oc Business performance - India

  28. Slide 28: India Packaged Beverages

    India Packaged Beverages Performance commentary Celebrating the Diwali season +43% • Robust & broad-based growth with most brands recording high double-digit growth during • Margins for the quarter impacted by tea inflation & competitive pricing but we continued with special tin packs of Tata Revenu

  29. Slide 29: India Foods

    India Foods • Print initiative “How healthy is your Performance commentary 19% haldi” undertaken by Tata • Third consecutive quarter of • Tata Sampann portfolio grew in Sampann to raise awareness double-digit revenue growth across high double digits with in-home about the importance of curcumin. the

  30. Slide 30: NourishCo (100% Subsidiary)

    NourishCo (100% Subsidiary) * Performance commentary Sales as a % of PY 109% 33Cr • Revenue back in growth trajectory • TWP achieved highest ever 82% with strong growth momentum in volume growth in December. 62% December. Revenue • Strong cost optimization in • Tata Gluco Plus and Tata Water Himalay

  31. Slide 31: Tata Coffee (inc Vietnam) (~58% Subsidiary)

    Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary Tata Coffee’s Tamil +1%# Nadu and Vietnam • Topline grew 1% led by Vietnam Extractions coffee extraction plants extractions business and tea • Overall extraction business produce and export plantations which helped offset declined 3%

  32. Slide 32: Tata Starbucks (JV)

    Tata Starbucks (JV) Performance commentary 92% • Revenue on an upward trajectory with Dec ~90% of last year (77% on a like for like basis). • Opened 13 new stores & entered 3 new cities during the quarter, bringing the YTD new store count to Stores re-opened 24. • Non metro cities recovering faster.

  33. Slide 33: Business performance - International

    5 OC OURO 5 6 SPREE Oc Business performance - International TATA CONSUMER PRODUCTS

  34. Slide 34: UK

    UK Performance commentary 1% • Revenue growth of 1% (constant currency) with volume growth of 5%. • Good Earth Tea and Kombucha continue to see good traction especially in the ecomm. channel. Revenue Growth^ • Discounter channel continues to • Tetley continues to grow share in be the key growth driv

  35. Slide 35: USA

    USA Performance commentary 6% • Coffee: Revenue growth of 6% (constant currency), with volume growth of 7% - strong uptick from • Tea (excluding Empirical): Robust revenue growth of 18% against volume growth of 22% Coffee Revenue previous quarter when volume Alarmingly delicious- be sure to Growth^

  36. Slide 36: Canada

    Canada Performance commentary 24% • Exceptional revenue growth of 24% (constant currency) with volume growth of 19%, led by • Specialty tea sales were further boosted by the new Tetley Super 3.0 range. Revenue Growth^ promotions and further aided by COVID led lockdowns. • Tetley continues to be the

  37. Slide 37: Awards & recognition

    Awards & recognition 1. Silver for the Annual 2. Climate change Report leader Integrated Annual report 2019-20 Tata Consumer Products received an won Silver at the prestigious League A-, being recognised in CDP’s of American Communications leadership band for second Professionals awards – Integrated

  38. Slide 38: Financial Performance

    5 OC OURO 5 6 SPREE Oc Financial Performance TATA CONSUMER PRODUCTS

  39. Slide 39: Highlights – for the quarter ended Dec'20

    Highlights – for the quarter ended Dec’20 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) REVENUE: 577 3,070 Group Revenue grew by 23% (21% in constant Revenue from 2,493 currency terms) 500 1,963 operations 1,463 • India Beverages (including RTD) grew by 46% • India Foods higher by 19%. +23% +34% • Int

  40. Slide 40: Financials: Consolidated

    Financials: Consolidated Quarter ended Dec’20 Profit and Loss statement Year to date Dec’20 Q3FY21 Q3FY20 Change % (all nos. in ₹ Crores) 9MFY21 9MFY20 Change % 3,070 2,493 23 % Revenue from operations 8,565 7,232 18 % 365 326 12 % EBITDA 1,253 998 26 % 11.9 % 13.1 % % 14.6 % 13.8 % 300 265 13 % EBI

  41. Slide 41: Financials: Standalone

    Financials: Standalone Quarter ended Dec’20 Profit and Loss statement Year to date Dec’20 Q3FY21 Q3FY20 Change % (all nos. in ₹ Crores) 9MFY21 9MFY20 Change % 1,963 1,463 34 % Revenue from operations 5,304 4,355 22 % 197 208 (5) % EBITDA 777 646 20 % 10.0 % 14.2% % 14.6 % 14.8 % 165 179 (8) % EBIT 6

  42. Slide 42: Segment-wise performance

    Segment-wise performance Revenue - Branded business Particulars Segment Revenue Segment Results ₹ Cr Q3 FY21 Q3 FY20 Change Q3 FY21 Q3 FY20 Change 45 % India beverages (%) (%) 22% India foods India Beverages 1,275 873 46% 79 128 (38)% 33 % International beverages India Foods 631 531 19% 93 66 41% In

  43. Slide 43: Outlook

    Outlook TATA CONSUMER PRODUCTS

  44. Slide 44: Outlook

    Outlook Macros  Covid-19 vaccination programme is in progress in most countries and should help with economic growth returning next year.  Indian economy seems to be on a recovery path with key macro indicators moving up, and in-home consumption categories normalising.  The second wave of Covid-1

  45. Slide 45: Thank You

    TATA CONSUMER PRODUCTS Thank You

  46. Slide 46: Shareholding information

    Shareholding information Quarter Ended June’20 Pattern as on Dec 31, 2020 Stock data BSE Ticker 500800 Others 3% MFs/ UTI/ AIFs Promoter and NSE Ticker TATACONSUM 10% promoter Group Market Capitalization (Dec 31, 2020) ₹543.4 bn 35% Number of Shares Outstanding 921.6 Mn. Individual 22% Insurance Com

  47. Slide 47: For more information

    For more information Contact us: Nidhi Verma Rakesh R Sony Abhishek Musahib Satya Muniasamy Head – Investor Relations & Corporate Global Head of Strategy and M&A abhishek.musahib@tataconsumer.com satya.muniasamy@tataconsumer.com Communication rakesh.r.sony@tataconsumer.com nidhi.verma@tataconsumer.c

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