Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — FY2018 Earnings Presentation
36 slides from Tata Consumer Products's earnings presentation, May 2018
Slide 1: Investor Presentation May 2018
INVESTOR PRESENTATION May 2018
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
Group set up in 1868 by Jamsetji Tata with a vision that placed the community at the core of its purpose AGENDA AGENDA COMPANY PROFILE KEY HIGHLIGHTS OF THE YEAR OUR REGIONAL PROFILE FINANCIAL OVERVIEW 3
Slide 4: Company Profile
Tata Tea 1868, a specially curated COMPANY range of teas, to celebrate 150 years of PROFILE Tata group, debuted at World Economic Forum 2018, Davos Tata Starbucks opens 100th store in India Himalayan Sparkling Jaago Re submits Tetley celebrates 180 years elevates the fine-dine 1.8m petitions to HRD
Slide 5: A Snapshot of Tata Global Beverages
A Snapshot of Tata Global Beverages Focused on natural beverages – TEA, COFFEE, WATER 330 MILLION + SERVINGS of our brands consumed everyday Tata heritage with GLOBAL BRANDS $1.4 BN* in revenues 2ND LARGEST tea company in the world Over 3000 EMPLOYEES worldwide Presence in over 40 COUNTRIES * At 100
Slide 6: Our journey
Our journey 1960s Investment in Plantations in India 1980s Internal Domestic Acquisition restructure & branded of Eight JV formed exits from loss Acquisition O’clock Acquisition New Corporate play in tea with making of Tetley Coffee of Vitax Identity formed Starbucks businesses 1960- 2000 2005 2006
Slide 7: Business Profile
Business Profile 88% OF OUR SALES COMES THROUGH OUR BRANDED BUSINESS Total Turnover - 2018 Region-wise Branded 12% Turnover - 2018 29% Branded Business 49% CAA Non Branded EMEA Business South Asia 22% 88% converted at USDINR rate of 65 7
Slide 8: Our Brand Positioning
Our Brand Positioning EUROPE AND US UK OTHER MARKETS INDIA 8
Slide 9: Key Business Highlights during the Year
Key Business Highlights during the Year Increased focus on domestic branded business • India tea : started journey of transitioning to higher growth trajectory • JVs: Crossed 100-store milestone for Starbucks (reached 116 by year end); Achieved breakeven for Nourishco Strong re-look into Interna
Slide 10: Financial performance for the year
Financial performance for the year Revenue (USD million) PBT (USD millon) +1% +2% +1% +2% +18% +14% Growth rate Growth rate at constant - 8% - 69% currency Group revenue calculated as sum of Branded business and Unbranded business net of intersegment revenues converted at USDINR rate of 65 10
Slide 11: Recent innovations and product launches (India)
Recent innovations and product launches INDIA MARKET Tetley Green Tea Tata Tea - Chakra Gold Tata Tea Masala RTD – Fruski Himalayan - Orchard Pure Tata Cha Activ+ and Sparkling & Kanan Devan Deut 11
Slide 12: Recent innovations and product launches (International)
Recent innovations and product launches INTERNATIONAL MARKETS Tetley Super Teas Tetley Squash Good Earth Kombucha Eight O’ Clock Infusions (UK) (UK) (Australia) (USA) 12
Slide 13: Tetley Green Tea – Andar se Clean and Bahar se Active
Tetley Green Tea – “Andar se Clean and Bahar se Active” Tetley Green Tea has 5 times more DEEPIKA PADUKONE antioxidants than an apple the new brand It cleanses you from within leaving ambassador for you feeling refreshed and active Tetley Green Tea An enabler of a healthy lifestyle Link to Tet
Slide 14: Our Regional Profile
TATA GLOBAL BEVERAGES qa OUR REGIONAL PROFILE ge
Slide 15: India
India BUSINESS PROFILE KEY FACTS AND MARKET STRUCTURE Contributes to c. 40%+ of the total Revenue ~ $2.2 bn* tea market dominated by Black tea Volume market leaders in overall tea category, with a Tea categories growing with scope for premiumisation – Green Tea market share of 19.5%* MAT and
Slide 16: Jaago Re
IS EDUGETION Too WY wv. PRE-ACTTO Las CHAMPIONS o i Strononnow & 2 1 3 nae (ehitrerrrenreeremmrersre LB MILLION PETITIONS oN Pre-Acting to build abetter future for India, TATA GLOBAL BEVERAGES Prarares Je Tetley tae pay SSS
Slide 17: Europe, Middle East and Africa (EMEA)
Europe, Middle East and Africa (EMEA) BUSINESS PROFILE KEY FACTS AND MARKET STRUCTURE Contributes to c.20% of the total Revenue UK Tea market is c.£550m* with Everyday Black constituting c.58% UK the largest market with primary presence in tea (declined by c.2% yoy in value terms) o Volume sha
Slide 18: Landmark year for Tetley – 180th anniversary!
Landmark year for Tetley – 180th anniversary!
Slide 19: Canada, America and Australia (CAA)
Canada, America and Australia (CAA) BUSINESS PROFILE KEY FACTS AND MARKET STRUCTURE Contributes to c.25% of the total Revenue US: Largest coffee market (c.$9 bn)* with “Single Serve” category Presence in Pod’s category through being 1.7 x the bags category (value) o Keurig in both tea and coff
Slide 20: Tata Coffee Limited (Non Branded Business)
Tata Coffee Limited (Non Branded Business) BUSINESS PROFILE RECENT UPDATES Tata Coffee is the leading player in B2B business segment Operating Income and Profit lower yoy impacted by abnormal with presence in plantations weather conditions resulting in lower coffee crop coupled with Contribute
Slide 21: JV/Partnerships
JV/PARTNERSHIPS Nourishco – Pepsico Tata Starbucks Other Businesses
Slide 22: Nourishco – JV with Pepsico
Nourishco – JV with Pepsico BUSINESS PROFILE RECENT UPDATES 50:50 JV company formed between Tata Global Revenue growth of 8% yoy driven by volume. First year of profits Beverages and Pepsico Marketing and distribution of products in the area of Himalayan: non-carbonated ready-to-drink bevera
Slide 23: Tata Starbucks
Tata Starbucks BUSINESS PROFILE 50:50 JV company formed between Tata Global Beverages and Starbucks Coffee International Inc which owns and operates Starbucks café in India More than 90% of the coffee sourced from Tata Coffee Stores also offering Himalayan brand water and organic tea from Hath
Slide 24: Other Businesses
Other Businesses BANGLADESH (JV) topline improves 25% in underlying terms over previous year driven by higher volumes. • Reduction in losses aided by improved sales. • Tata Tea Gold Launched. INSTANT TEA (B2B business and supplier to major RTD players in the western markets) Stable performance in
Slide 25: Awards
AWARDS Tata Tea – No.2 Tetley in UK - Tetley in UK – India’s Most Foodservice Great Taste Trusted Brands Brand of the Award for in Hot Year 2017 three products Beverages CII’s Jaago Re and Aranya Significant Tetley Super Naturals – Achievement Green - Time’s First in Food Safety Network Internationa
Slide 26: Sustainability Initiatives
SOURCING IT RIGHT SUSTAINABILITY IMPROVING LIVES INITIATIVES Specific Project with ETP and Tea Research Association PROTECTING THE ENVIRONMENT 26
Slide 27: Financial Overview
TATA GLOBAL BEVERAGES FINANCIAL OVERVIEW
Slide 28: Financial Highlights for the Quarter - Q4FY18
Financial Highlights for the Quarter - Q4FY18 USD million Quarter ended March • Operating income increased by by 4% in underlying PARTICULARS 2018 2017 % Change currency excluding the impact of Russia Total Operating Income 260 259 0% • Profit before exceptional items lower by 7% mainly due to adver
Slide 29: Financial Highlights for the Year
Financial Highlights for the Year USD million REVENUE FROM OPERATIONS higher by c.2% in underlying terms (excludes Fx impact) REVENUE Growth led by Branded business - Improvement in India and US (change in K-cup agreement) partially offset by underperformance in UK Non branded business mainly im
Slide 30: Consolidated Financial Highlights
Consolidated Financial Highlights All figures are in USD million FY18 FY17 % Growth Total Operating Income 1,049 1,043 +1% EBIT 111 102 +9% EBIT% 11% 10% Profit before Exceptional Items 119 101 +18% Exceptional Items (3) 1 PBT 116 102 +14% PAT 87 71 +22% PAT% 8% 7% Group Net Profit 86 70 +22% Market
Slide 31: Consolidated Financial Highlights – OCI
Consolidated Financial Highlights – OCI Quarter Ended March USD million 12 months ended March 2018 2017 Variance PARTICULARS 2018 2017 Variance 11 8 3 Consolidated Group Net Profit 86 70 16 0 17 -17 Changes in Fair Value of Equity Instruments 9 40 -31 Exchange difference on translation of 32 -22 54
Slide 32: Segment Performance – YTD March 2018
Segment Performance – YTD March 2018 Particulars Segment Revenue Segment Results Capital Employed USD million March 18 March 17 % Change March 18 March 17 % Change March 18 March 17 Branded Business Tea 757 739 +2% 106 89 +19% 558 515 Coffee 166 172 -3% 31 28 +11% 248 244 Others 6 6 -3 -2 -18% 5 1 T
Slide 33: Region-wise Revenue from Operations
Region-wise Revenue from Operations Quarter Ended March USD millon 12 months ended March 2018 2017 Variance % PARTICULARS 2018 2017 Variance % 75 66 9 +14% CAA 267 245 22 +9% 52 62 -10 -17% EMEA 1 207 238 -31 -13% 98 97 1 +1% South Asia 451 432 19 +5% 225 225 0 0% Total Branded Operations 925 915 10
Slide 34: Consolidated Balance Sheet as on 31st Mar'18
Consolidated Balance Sheet as on 31st Mar’18 Details FY18 FY17 USD millon Total Equity 1,237 1,105 Non-Current Liabilities 147 133 Current Liabilities 244 237 Liabilities of Disposal group 2 4 TOTAL EQUITY & LIABILITIES 1,630 1,479 Goodwill 573 538 Other Non Current Assets 359 425 Current Asset 692
Slide 35: Strategy for the financial year FY19
Strategy for the financial year FY19 Enhanced focus on India businesses Continue to invest behind incubatory businesses Expand into adjacent categories Continue to invest behind key power brands in India and Globally Sustain efforts on creating successful innovations and new product launch
Slide 36: Company Information
COMPANY INFORMATION Equity Share details Bombay Stock Exchange (BSE) – 500800 National Stock Exchange (NSE) – TATAGLOBAL ISIN No – INE192A01025 (International Securities Identification Number) Depository Receipt Luxembourg Stock Exchanges - US8765692038 London Stock Exchange - TGBL www.tataglobalbev