Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — Merger or Acquisition (May 2019)
33 slides from Tata Consumer Products's merger presentation, May 16, 2019
Slide 1: Investor Presentation
* Investor Presentation May 16, 2019 * Tata Global Beverages Limited to be renamed as Tata Consumer Products Limited
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Tata Global Beverages Limited ("Tata Global") for information purposes only in relation to a potential arrangement between Tata Global and Tata Chemicals Limited pursuant to a scheme of arrangement and is solely for the use of persons to whom it is a
Slide 3: Agenda
Agenda 1 Transaction Overview 2 Tata Consumer: Creation of a Unified Platform 3 Unlocking the Platform’s Potential 4 Deal Summary & Pro-Forma Financials 5 Appendix 3
Slide 4: Transaction Overview
Transaction Overview TATA GLOBAL BEVERAGES
Slide 5: Transaction Overview
Transaction Overview TCL FY19 Rev.: $ 1,637 Mn CHEM ICALS CONSUM ER PRODUCTS BUSINESS CPB Revenue 16% ($ Mn) $ 1,051 Mn $ 268 Mn EBITDA ($ Mn) $ 121 Mn $ 46 Mn Other India Reach Business (#households) 110 mn 140 mn 84% TGBL FY19 Rev.: $ 1,051 Mn TCPL FY19 Rev.: $ 1,318 Mn Others Categories Others (1
Slide 6: Tata Consumer: Creation of a Unified Platform
Tata Consumer: Creation of a Unified Platform
Slide 7: Creating India's Premier Diversified Consumer Company
Creating India’s Premier Diversified Consumer Company Branded Revenue by Geographies Creates a sizeable Consumer player with enhanced scale and financial strength Others Canada Combined revenue of over $ 1,320 Mn., EBITDA of over $ 170 Mn 5% 4% India to contribute >60% revenues of the combined
Slide 8: Large Addressable Market: Organized FMCG to Grow 3x by 2025
Large Addressable Market: Organized FMCG to Grow 3x by 2025 Strong growth in Consumption Growth Drivers 1,322 CAGR 11 10% Increasing (in $ Bn.) 1.4x between 2017 and 2025 Income levels 35 11% Urbanization 49% by 2030 from 34% in 2017 CAGR: ~14% 41 15% 1-3% yearly shift to premium products 31 13% Pre
Slide 9: Tata Consumer: Creation of a Unified Platform
Tata Consumer: Creation of a Unified Platform Deep Understanding of Consumers in India and Abroad Value Creation through Scale and Synergies Iconic Market Leading Brands Strong financial profile to support inorganic and organic growth Wide Consumer Reach Unified vehicle for Tata Fast Growing Market
Slide 10: Combination to Unlock Significant Synergies
Combination to Unlock Significant Synergies Distribution multiplier driving higher outlet coverage and higher throughputs Growth Focused new product development Drivers Stronger cash flows to invest in growth Superior terms of trade with channel partners Efficiency Supply chain opportunities Drivers
Slide 11: Unlocking the Platform's Potential
Unlocking the Platform’s Potential
Slide 12: Enablers to Turbocharge the Consumer Platform
Enablers to Turbocharge the Consumer Platform 1 2 Proven Brand Building Capabilities Strong Sales & Distribution Infrastructure Track record of creating category defining Combined reach of 200 mm households brands Broader portfolio to help deepen distribution Leverage TATA brand across categ
Slide 13: Proven Track Record of Building Category Defining Brands
1 Proven Track Record of Building Category Defining Brands TRUST Current Leading Brands Brands of the Future #1 in category Umbrella brand for staples/packaged foods #8 most trusted brand(1) #1 in category by volume Umbrella brand for liquid beverages #2 most trusted brand in hot beverag
Slide 14: Tata Salt: Undisputed Market Leadership
Tata Salt: Undisputed Market Leadership Tata Salt is India’s first Market Structure and Growth (Total Salt Market of ~$ 1 Bn) packaged Iodised salt Consumer Price/kg Vacuum evaporated and National 8% In million MT Regional 1% 5 year CAGR% Niche Salts $ 7+ untouched by hand across the value chain
Slide 15: TATA Sampann – Creation of a National Mega Food Brand
1 TATA Sampann – Creation of a National Mega Food Brand “Nourishing India”: Offering wholesome everyday nutritious food Pulses & derivatives Spices and Condiments Snacks/ Ready-to-Cook $ 23,000 Mn ~1% $ 21,700 Mn 10% $ 5,800 Mn 50% Unpolished dals , Besan and Organic dals Pure Spices, Blended Sp
Slide 16: Brand Defining Award Winning Campaigns
1 Brand Defining Award Winning Campaigns Tata Tea - Jaago Re Tata Salt - Desh ka Namak Awards Jaago Re ‘Tata Salt Sehat ki Chuski” Tetley - Green Tea Tata Sampann - Goodness ki Shuruaat Tetley Green Tea 16
Slide 17: Combined Distribution Prowess to Deepen Reach
2 Combined Distribution Prowess to Deepen Reach Distribution Product Basket Households Strength 2.5mm retail outlets(1) 5,000 Stockists/ Distributors(1) 200mm households(1) Reaching 2 lakhs outlets across 80K villages(1) S&D Transformation underway to enhance reach and improve channel effici
Slide 18: Robust Innovation & New Product Development Capabilities
3 Robust Innovation & New Product Development Capabilities Select New Product Launches Tetley Super Teas Tata Salt Plus Supers platform is first India's first national of its kind in the world brand of packaged salt Tea fortified with with iodine plus iron vitamins Aimed at addressing New
Slide 19: Value Enhancing Acquisitions and Partnerships
4 Value Enhancing Acquisitions and Partnerships Long Standing Partnerships to Experience in Executing and M&A and Partnerships will Bring World Class Experience to Integrating Complex Acquisitions Continue to be a Growth Driver Indian Consumers 50:50 partnership New category entry in India; premie
Slide 20: Vision: To Create a Multi-Category FMCG Major
Vision: To Create a Multi-Category FMCG Major Deepen Presence in F&B Market Entering into a Broader FMCG Play Consider high growth/high margin Deepen the core Aggressive expansion of existing new products New categories Products Beverages Staples Processed foods Others Home Personal Coffee Water Dai
Slide 21: International: Leverage the Complimentary Strengths
International: Leverage the Complimentary Strengths Leveraging Knowledge of International Focus on Core Markets and Core Brands Markets US Provides a front-seat view of changing consumer preferences Distribution expansion Regaining market share in coffee and tea Growing consumer consciousnes
Slide 22: Deal Summary & Pro-forma Financials
Deal Summary & Pro-forma Financials
Slide 23: Deal Summary
Deal Summary Tata Chemicals (TCL) to de-merge its Consumer Products Business (CPB) as a going concern into TGBL in an-all equity Pre- Transaction ** transaction Shares O/S Holding (%) (Mn) Proposed CPB to include all of its consumer businesses including salt, spices, pulses, snacks and nutri-sup
Slide 24: Pro-forma Financial Overview (FY19)
Pro-forma Financial Overview (FY19) Tata Global Beverages Limited Consumer Products Business Combined India - Branded Total India - Branded India - Branded Total Revenue ($ Mn) 458 1,051 268 725 1,318 EBITDA ($ Mn) 71 121 46 117 167 EBITDA Margin (%) 15.5% 11.6% 17.1% 16.1% 12.7% Net Profit ($ Mn) 5
Slide 25: To Conclude: Integrated Platform Poised For Growth
To Conclude: Integrated Platform Poised For Growth MULTI-CATEGORY INNOVATION Leading player in Tea, Salt and Water Cross-leverage know-how To grow rapidly in the fast growing categories of Fast-track new product development at lower Staples, Packaged Foods and Liquid Beverages costs F&B SERV
Slide 26: Appendix
Appendix TATA GLOBAL BEVERAGES
Slide 27: TGBL – Overview
TGBL – Overview Description Financial Snapshot Revenue ($ Mn) (1) TGBL operates in natural beverages segment globally with 1,200 982 (1) 987 (1) 1,051 portfolio of several international and domestic brands. 134 123 126 162 156 174 700 Portfolio of tea coffee and water with operations in 40+ coun
Slide 28: TGBL – Branded Products Portfolio
TGBL – Branded Products Portfolio Category Products Tea Coffee Water 28
Slide 29: Consumer Products Business – Overview
Consumer Products Business – Overview Description Financial Snapshot CPB operates in food & non-food segments Revenue (($ Mn) 300 251 219 268 Portfolio backed by strong innovation & research 12% 200 19% 6% Transformed itself from a single product business, “Iodising India”, to a business with
Slide 30: Consumer Products Business – Product Portfolio
Consumer Products Business – Product Portfolio Category Products (1) Salt Pulses Spices New products Notes : (1) First phase launches have achieved 5-13% market share while second phase launches achieved 1-3% market share 30
Slide 31: Tata Salt: The Journey of Iodizing to Nourishing India
Tata Salt: The Journey of Iodizing to Nourishing India I Shakti Salt launched in 2006 Launched various new New variants of Salt launched– followed by launch of Tata Salt Launched Tata Sampann as products like Chutneys, Flavoritz, Double Fortified Salt – Lite in 2007 and I Shakti Cooking umbrella bra
Slide 32: Sustainability Initiatives
Sustainability Initiatives SOURCING IT RIGHT IMPROVING LIVES Specific Project with ETP and Tea Research Association PROTECTING THE ENVIRONMENT Tata Salt – 10% packaging is 100% recyclable 32
Slide 33: For any questions/queries please contact
For any questions/queries please contact: Rakesh Sony rakesh.sony@tgbl.com +91 22 6121 8400 Ibrahim Lodhger ibrahim.lodhger@tgbl.com +91 80 6717 1200 Satya Muniasamy satya.muniasamy@tgbl.com +91 80 6717 1200 www.tataglobalbeverages.com Investor.relations@tgbl.com
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