Slide 1: Cover letter to stock exchanges
3rd February, 2022 The Manager The General Manager The Secretary Listing Department Dept. of Corporate Services The Calcutta Stock National Stock Exchange of BSE Ltd. Exchange Ltd. India Ltd. P. J. Towers 7, Lyons Range Exchange Plaza Dalal Street Kolkata 700 001 Plot No. C-1, G Block Mumbai 400 001
Slide 2: Copy distribution list
Enduring Value cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A. cc: Societe de Ia Bourse de Luxembourg 35A Boulevard Joseph II L-1840 Luxembourg
Slide 3: Media Statement: Standalone Financial Results for Quarter ended 31st December 2021
ITC Limited Virginia House 37 J. L. Nehru Road Kolkata, 700 071, India Tel.: 91 33 2288 9371 Fax: 91 33 2288 4016 / 1256 / 2259 / 2260 Media Statement February 03, 2022 Standalone Financial Results for the Quarter ended 31st December, 2021 Highlights • Board recommends Interim Dividend of Rs. 5.25 p
Slide 4: Media statement: quarter performance commentary
Economic activity gathered further momentum during the quarter with the decline in Covid caseload intensity. Enhanced vaccination coverage coupled with uptick in business and consumer sentiments led to broad-based growth across markets and channels even as leading indicators reflected deceleration i
Slide 5: FMCG Others: channels and digital initiatives
- Modern Trade sales accelerated on the back of improved mobility and store footfalls. - The Company continues to augment product availability and accessibility by leveraging new routes- to-market through strategic partnerships with multiple organisations covering a range of brands including ‘B Natu
Slide 6: FMCG – Cigarettes
FMCG – CIGARETTES Segment Net Revenue and Segment Results up 13.6% and 14.4% y-o-y respectively • Robust recovery continued across markets aided by increase in mobility and, agile supply chain and market servicing. • Market standing reinforced leveraging portfolio vitality, product accessibility and
Slide 7: Paperboards, Paper and Packaging
- Value Added Paperboard segment grew at a rapid pace aided by higher realisation, strategic capacity expansion and strong exports performance. - Higher realisations, investments in pulp import substitution, cost-competitive fibre chain, sharper focus on operational efficiency leveraging data analyt
Slide 8: Sustainability and LEED Zero Carbon certification
Building Council (USGBC), this certification recognizes buildings operating with net zero carbon emission. Earlier this year, ITC Windsor, Bengaluru achieved the distinction of being the first hotel in the world to achieve LEED Zero Carbon Certification. During the quarter, the Company commissioned
Slide 9: Q3 FY22 Results
Oliii)GflL O.tr,a Enduring Value NATION FIRST: SAB SAATH BADHEIN Q3 FY22 Results 3rd February, 2022
Slide 10: Forward-Looking Statements
Forward-Looking Statements This presentation contains certain forward-looking statements including those describing the Company’s strategies, strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements” are based on certain assumptions o
Slide 11: Decline in Covid caseloads; progressive recovery in economic activity
Decline in Covid caseloads in Q3 Progressive Recovery in economic activity Omicron led Third Wave in Dec / Jan Sharp Reduction in case count, accelerated vaccination Improved mobility improves Business environment India: New Cases – Moving 7-day Average (‘000) 60.0 Google Mobility Index 450 400 50.0
Slide 12: Improving Business Sentiments
Improving Business Sentiments India Services PMI ( > 50 denotes expansion) Manufacturing PMI ( > 50 denotes expansion) 58.9 57.6 57.5 54.1 55.3 54.0 56.7 58.4 58.1 56.8 56.4 57.5 55.5 55.3 55.9 52.3 54.5 49.3 49.8 51.8 50.8 46.4 55.2 55.5 47.2 55.5 52.3 33.7 48.1 41.2 27.4 5.4 Source : IHS Markit So
Slide 13: Pickup in External Trade
Pickup in External Trade Increased Capital Flows GST collections remain robust Merchandise Export / Import ($ bn) Net FPI and FDI ($ bn) Trade Deficit Export Import 59 19 Net FPI FDI 56 48 11 12 43 42 31 6 7 6 22 35 33 33 37 17 27 21 28 3 10 -2 0 1 -3 -14 -9 -7 -16 -23 Jan-21 -22 -15 May-20 May-21 J
Slide 14: Persistent Inflation; Surge in Crude Oil Prices
Persistent Inflation Surge in Crude Oil Prices Headline CPI (y-o-y%) Core CPI (y-o-y%) 6.4% 6.4% 6.3% 6.2% 5.5% 5.9% 5.9% 5.6% 6.0% 5.9% 4.6% 4.9% 4.3% 4.5% 5.6% 4.3% 5.5% Source: MOSPI Source: MOSPI Source: MOSPI Brent Crude ($ / bbl) Diesel (Rs /Litre) 93.2 93.4 87.4 82.4 77.5 75.6 68.3 Q1 Q2 Q3 Q
Slide 15: Challenging Macro Environment
Challenging Macro Environment Global Macro India Macro Key Positives Key Monitorables Slowdown in global growth momentum - 2022 Global GDP growth revised down to 4.4% Vs. 4.9% earlier GoI’s bold reform High Inflation - Rising caseloads agenda and Infra push Rising Crude prices - Supply chain disrupt
Slide 16: Headline Financials & Business Highlights
Q3 FY22 Results Headline Financials & Business Highlights 8
Slide 17: Strong growth across operating segments
Key Highlights: Q3 FY22 Overall Segment PBIT Margin Gross Revenue EBITDA ex – Agri Business +31.3% +18.2% 36.5% 80 bps Strong growth ex Agri, up 16.2% across operating Profit After Tax EPS Interim Dividend segments +12.7% +12.3% Rs. 5.25 per share For the quarter ended 31st December, 2021, YoY chang
Slide 18: Key Highlights: Q3 FY22
Gross Revenue up 31.3% YoY (Ex-Agri +16.2%) Key Highlights: Q3 FY22 EBITDA up 18.2% YoY ▪ Robust broad-based recovery in Cigarettes ̶ Net Segment Revenue up 13.6% YoY; Segment EBIT up 14.4% YoY ▪ FMCG-Others Segment Revenue up 9.3% YoY on a relatively high base; up 23.5% vs. Q3 FY20 ̶ EBITDA up 46%
Slide 19: FMCG Others
MM ENA Enduring Value FMCG Others Sartaj pe sabko Hai Naa: The glass that would never be replaced. A wai wth bright tights andthe geodnes of ee MASTER —CHEF coy - i 1 ‘armiite H nimyle chou
Slide 20: FMCG Others Segment Revenue up 23.5% over Q3FY20
Resilient Performance FMCG Others Segment Revenue up 23.5% over Q3FY20 OFMCG Segment Revenue Rs. cr. ▪ Segment Revenue up 9.3% YoY; +23.5% over Q3 FY20 4,40 0 4,20 0 +23.5% 4,091 ꟷ Staples & Convenience Foods posted resilient performance 4,00 0 ꟷ Discretionary/Out-of-Home categories recorded robust
Slide 21: FMCG Others Segment EBITDA up 46% over Q3 FY20
FMCG Others Segment EBITDA up 46% over Q3 FY20 Seg. EBITDA margins at 9.1% despite inflationary headwinds Rs. cr. ▪ Q3 Segment EBITDA margin at 9.1% (+140 bps Vs. Q3 460 +46%; 140 bps margin expansion 9.1% FY20, -50 bps YoY) 410 9.6% ▪ Persistently high commodity prices largely offset through 360 31
Slide 22: Unprecedented Rise in Commodity Prices
FMCG Others Unprecedented Rise in Commodity Prices Edible Oil Soap Noodles Metallocene 1700 149 172 1600 1500 1400 1300 1200 110 1100 100 1000 Oct-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Q2 FY21 Q3 FY21 Q4 FY21 Ql FY22 Q2 FY22 Q3 FY22 Oct-20 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 BOPP Kraft Paper 135 210
Slide 23: Driving Cost Agility & Productivity
Driving Cost Agility & Productivity Remove | Reduce | Re-engineer Manufacturing ICMLs Supply Chain Industry 4.0 Network Optimization (AI/ ML Enabled) TPM Direct to Market Lean, Six Sigma ITC One Supply chain Smart Transportation Delayering Operations Smart Buying Marketing Efficiency & ROI AI/ML eng
Slide 24: Purposeful Innovation
Purposeful Innovation Leveraging Science-based R&D Platforms @ ITC LSTC Bingo! ITC Master Chef No Rulz Tomato Curlz; Chatar Punjabi Samosa Sunrise Spices Fabelle Savlon Matar; Cream & Onion Plant Based Protein Nuggets, Clove, Heart of Gold Collection HandWash Powder Burger Patty Green Cardamom Fiama
Slide 25: Augmenting the 'Fills' range
Purposeful Innovation Augmenting the ‘Fills’ range Sunfeast Dark Fantasy Sunfeast Bounce Bounce Fills (Orange/Strawberry) Choco Fills Desserts Collection Coffee Fills Choco Nut Fills Vanilla Fills Bounce Fills (Choco) 17
Slide 26: Building Brands With Purpose
Building Brands With Purpose Healthier & Safer Women Responsible Citizens for Saluting India Empowerment the Future Mothers Women Empowerment 18
Slide 27: Driving Digital Engagement
Driving Digital Engagement Leveraging OTT platforms AI Based Fragrance Finder 100% Share of Voice Fiama’s association with movie release Personalize your shopping experience with Engage Fragrance Finder https://www.engagedeo.com/search/ Impactful Campaign Partnering with Celebrities & Influencers A
Slide 28: Augmenting Multi-Channel Go-to-Market Capability
Augmenting Multi-Channel Go-to-Market Capability Scaling up E-Com Channel New Routes to Market On-the-Go Direct Marketing QSR Strategic Partnerships 800 Salience 7% 3x 700 600 500 400 300 x 200 ITC e-Store Operational in 15 cities 100 0 1.5x 2.3x 9M'20 9M'21 9M'22 Visitors No. of Orders Baseline – A
Slide 29: FMCG Cigarettes
FMCG Cigarettes Investor Day 2021
Slide 30: FMCG Cigarettes: Robust Broad-based Recovery
FMCG Cigarettes Robust Broad-based Recovery Agile Supply Chain and Market Servicing ▪ Segment Net Revenue* up 13.6% YoY and 10.8% QoQ; Segment EBIT margins up 55 bps ▪ Robust recovery continued across markets Segment Revenue – Aided by increase in mobility, agile supply chain and market servicing 62
Slide 31: Recent Portfolio Interventions
FMCG Cigarettes Recent Portfolio Interventions Innovation Portfolio Fortification • Classic Connect • Gold Flake Luxury Filter • Gold Flake Neo • Gold Flake Neo SMART Filter • American Club Clove Mint • Navy Cut Deluxe • Gold Flake Indie Mint • Player’s Gold Leaf Chase • Capstan Fresh • Gold Flake S
Slide 32: Hotels Business
Hotels Business ITC Grand Goa Resort & Spa
Slide 33: Hotels: Sustained recovery momentum
Sustained recovery momentum Hotels PBIT Turns Positive at 51 cr. Rs. cr. ▪ Occupancy recovers to pre-pandemic levels; strong sequential improvement in ARRs but still below pre- Segment Revenue pandemic levels ̶ Domestic leisure travel and festive/wedding season boost demand; progressive improvement
Slide 34: New Welcomhotel Properties Launched
New Welcomhotel Properties Launched Healthy pipeline of management contracts Welcomhotel Guntur Welcomhotel Bhubaneswar A first-of-its-kind premium property offering an immersive Drawing inspiration from the magnificence of 500+ temples regional experience (104 keys) adorning the city (107 keys) Wel
Slide 35: Trailblazer in Responsible Luxury
Trailblazer in Responsible Luxury ITC Windsor ITC Grand Chola ITC Gardenia World’s 1st Hotel with World’s Largest Hotel with World’s 3rd Hotel with LEED Zero Carbon Certification LEED Zero Carbon Certification LEED Zero Carbon Certification 27
Slide 36: Driving Value through Digitalisation
Driving Value through Digitalisation Launch of Full Stack ITC Hotels App Reservations | Food Delivery | Loyalty | Exclusive offers and more… 28
Slide 37: Agri Business
MM ENA Enduring Value Agri Business sadn Neg mney ; re rig = vik ¢ peat ati
Slide 38: Agri Business: Strong Revenue growth driven by Exports
Agri Business Strong Revenue growth driven by Exports ▪ Robust growth in Segment revenue ̶ Wheat, rice, spices, leaf tobacco exports leveraging strong customer relationships, robust sourcing network & agile execution Segment Revenue ̶ Proactive supply chain mgmt. ensured on-time execution despite su
Slide 39: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging
Slide 40: Paperboards, Paper & Packaging: Strong Revenue Growth
Strong Revenue Growth Paperboards, Paper & Packaging Paperboard Volumes at Record High Paperboards & Specialty Paper Segment Revenue ▪ Robust growth in Volume & Realisation; volumes at record high ̶ Revival of demand across most end user segments and higher exports 2046 cr. 38.5% ▪ ▪ VAP^ grew at ra
Slide 41: Sustainable Solutions
Sustainable Solutions ITC LSTC | External Collaborations Bio-degradable Barrier Boards Recyclable Solutions Toughpack E-com packaging bags Indobowl Cupstock QSR Packing Ice-cream Packaging Sustainable Packaging 33 Bioseal Oxyblock Antimicrobial Coating 33
Slide 42: Financials
Financials 34
Slide 43: Headline Financials: Q3 FY22
Headline Financials: Q3 FY22 Rs. cr. Q3 FY22 Q3 FY21 GOLY Gross Revenue 16,634 12,673 31.3% Net Revenue 15,741 11,887 32.4% EBITDA 5,102 4,315 18.2% PBT 5,492 4,880 12.5% PAT 4,156 3,688 12.7% Other Comprehensive Income -23 63 (net of tax) Total Comprehensive Income 4,133 3,751 35
Slide 44: Segment Revenue: Robust growth across Segments
Segment Revenue Robust growth across Segments Q3 FY22 • FMCG Others (Rs. cr.) - Segment Revenue up 9.3% vs. LY (+23.5% Vs. Q3 Q3 FY20) FY22 FY21 Goly - Staples & Convenience foods portfolio remains Segment Revenue resilient a) FMCG - Cigarettes 6244 5498 14% - Robust growth in Discretionary/OOH port
Slide 45: Segment Results: Robust growth across Segments
Segment Results Robust growth across Segments Q3 FY22 (Rs. cr.) • FMCG Others Q3 ‒ Segment EBITDA at 373 cr. (+4% YoY on a FY22 FY21 Goly high base) Segment Results • 1.46x of Q3 FY20 a) FMCG - Cigarettes 3951 3453 14% ‒ EBITDA margins at 9.1% in spite of - Others 242 239 1% unprecedented commodity
Slide 46: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability 38
Slide 47: Impactful Social Performance
Impactful Social Performance ITC e-Choupal Afforestation Watershed Development Livestock Development Solid Waste Management Over 926,000 acres Over 12,93,000 acres Well-being Out of Waste 4 Million Farmers Over 20,18,000 milch programme covers empowered greened covered animals covered 15 million cit
Slide 48: Sustainability 2.0: Targets 2030
Sustainability 2.0 Sustainability Targets 2030 REDUCE I RECYCLE I RESTORE Raising the Bar Strategic Interventions to Combat Climate Change Renewable Electricity (Grid Specific GHG Recyclable Plastic Plastic Energy Purchased) from Emissions Packaging Neutrality Renewable Sources Building Green De-Car
Slide 49: ITC Infotech
~FOTECH ITC Infotech 41
Slide 50: ITC Infotech: Robust Revenue Growth & Margin Expansion
ITC Infotech Robust Revenue Growth & Margin Expansion Rs. cr. Revenue EBITDA PBT PAT Goly: 21.3% Margin% Goly: 41.9% Margin% Goly: 45.8% Margin% Goly: 48.3% 240 0 700 27.5% 30. 0% 700 27.6% 30. 0% 20.8% 23.5% 23.0% 500 220 0 600 25. 0% 600 25. 0% 450 17.0% 20. 0% 200 0 2181 500 599 20. 0% 500 602 20
Slide 51: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. 43
Slide 52: Links
Links Product/initiative Link Bingo! on Instagram https://www.instagram.com/bingo_snacks/ YiPPee! on Instagram https://www.instagram.com/sunfeast_yippee/ Aashirvaad on Instagram https://www.instagram.com/aashirvaad/ Sunfeast Dark Fantasy on Instagram https://www.instagram.com/sunfeastdarkfantasy/ Cl