Tata Consumer Products Limited · NSE:TATACONSUM

Tata Consumer Products — Tata Tea — H1 2007/08 Earnings Presentation

37 slides from Tata Consumer Products's earnings presentation, Oct 29, 2007

1. Slide 1: Tata Tea Group HYE, 2006/07

   Tata Tea Group HYE, 2006/07 October 29, 2007

2. Slide 2: Tata Tea Jaago Re advertisement

3. Slide 3: Tata Tea Jaago Re advertisement

4. Slide 4: Tata Tea brand portfolio

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5. Slide 5: Contents

   Contents  Highlights  Milestones  Consolidated Financials  Tata Tea – Stand Alone  Tetley  Coffee Business  Way Forward

6. Slide 6: Developing a Global Branded Business

   Developing a Global Branded Business 2006/07 Post Year End  Acquisitions  China Joint Venture  Jemca  Eight O’ Clock Coffee  Acquisition of Vitax  Energy Brands Inc  Joekels  Divestment of Energy Brands Inc. (Glaceau)  Tata Freeze Dried Coffee  “Himalaya” Acquisition  North India plantati

7. Slide 7: Milestone: volume share overtakes nearest competitor

   MILESTONE According to the AC Nielsen survey, for the first time ever, in the month of June 2007, the company outperformed its nearest competitor with a volume share of 19.2 %, as compared to the competitor's 18.6 %. Volume share (%) Nearest Year Tata Tea competitor 2002 26.1 16.3 March 2006 21.5 16

8. Slide 8: Group Highlights – 2006/07

   Group Highlights – 2006/07  Robust operating performance across the Group  Improved turnover including new acquisitions  Domestic brand value sales higher by 12%  Market share improvements in international markets  Higher investments for growth  Consolidated Results improve  Income - Rs 4045

9. Slide 9: Tata Tea Ltd Milestones

   Tata Tea Ltd Milestones  Acquisitions  Mount Everest Mineral Water Co  New Launches  North India plantations transfer approval  China Joint Venture  Tata Coffee Freeze Dried

10. Slide 10: Group Consolidated Financials

    Group Consolidated Financials

11. Slide 11: Consolidation Group Companies

    Consolidation Group Companies Nature of Holding Company Ownership % Directly or through a subsidiary Subsidiary Tata Tea (GB) Ltd,UK 77.78 Companies Tata Coffee Ltd, India 57.48 Tata Tea Inc, USA 100.00 Eight O Clock Coffee Co 62.00 Mount Everest Mineral Water 24.00 Associate Estate Management Servi

12. Slide 12: Group Financial Performance Overview

    Group Financial Performance Overview Rs Crores  Turnover: Higher by Rs 921 crores (29%) of which Rs 558 crores (61%) is on account of new acquisitions (Jemca , Good Earth & Eight O Clock Coffee). Rest include increased brand volumes in Tata Tea Ltd, favourable exchange rate in TTGB and higher insta

13. Slide 13: Geography Wise Sales

    Geography Wise Sales Rs Crores  Increased proportion of business shares in US/Canada due to acquisition of Eight O Clock Coffee

14. Slide 14: Product Mix

    <p TATA Product Mix Tetley” Instant Tea, 2% Bulk Tea, 3% Others, 2% Coffee, 16% Branded Tea, 77% @ Branded Tea @ Coffee @ Others G Bulk Tea Olnstant Tea

15. Slide 15: Tata Tea Ltd Stand Alone Performance

    Tata Tea Ltd Stand Alone Performance 2006/07

16. Slide 16: Tata Tea Ltd Stand Alone - Highlights

    Tata Tea Ltd Stand Alone - Highlights  Strong performance  Improved income from operations reflecting higher brand sales, and improved auction realizations  Domestic brand sales- higher volumes by 9%; value by 12%  Higher dividend from long term investments  Stand Alone Results improve by  Inc

17. Slide 17: 16 quarters of continuous Operating Profit Growth

    Tata Tea Ltd 16 quarters of continuous Operating Profit Growth Quarter on Quarter 8.14

18. Slide 18: Tata Tea Ltd Company Financial Review

    Tata Tea Ltd Company Financial Review Rs in Crores Quarter 4 Year To Date Details 2006/07 2005/06 Increase % 2006/07 2005/06 Increase % Operating Income 251 219 15% 1070 982 9  Total Income for the year ended March, 2007 at Rs 1070 crores is 9% higher than the previous year’s figure of Rs 982 crore

19. Slide 19: Tata Tea Ltd Company Financial Review

    Tata Tea Ltd Company Financial Review Rs in Crores Quarter 4 Year To Date Details 2006/07 2005/06 Increase % 2006/07 2005/06 Increase % Expenditure 236 208 (13)% 873 806 (8)% PBIT 10 6 73% 179 156 14% Interest 2 2 (26)% 12 9 (30)% Operating PBT 8 4 91% 168 147 14% Expenditure  Material Consumption

20. Slide 20: Tata Tea Ltd Company Financial Review

    Tata Tea Ltd Company Financial Review Rs in Crores Quarter 4 Year To Date Details Actual Variance % Actual Variance % Operating PBT 8 4 91% 168 147 14% Investment Income 8 24 - 76 58 31% Interest on Acquisition (14) - - (27) - - Exceptional Items 6 (2) - 133 25 - Tax (4) (7) - 43 44 - PAT 4 19 - 307

21. Slide 21: Growing in India

    Growing in …… India  Tata Tea Premium:  High Growth despite increase in price to trade  Tata Tea Agni: Impressive gains post price reduction in September,2007  Tata Tea Gold:  Double digit growth over PY despite price increase - through new thematic communication  Tata Tea Gold Single Original

22. Slide 22: Growing in India

    Growing in …… India  Chakra Gold growth y-o-y– through consumer packs, consistent thematic media & merchandizing support and initiative in value packs  Kanan Devan: Higher than PY through the new variant and ground level merchandising activity  Gemini sales higher through initiatives in rural mar

23. Slide 23: North India Plantation Status

    North India Plantation Status  Scheme of arrangement and reconstruction for transfer of NI plantations business to APPL approved by shareholders u/s 391 & 394 of Co Act  Transfer will be effective on receipt of final approval of the High Court and completion of related formalities  Approved date

24. Slide 24: China JV Status

    China JV Status  TTL signs a JV contract with Zhijiang Tea Co, China - to manufacture polyphenols and instant tea extracts  TTL will hold 70% stake  Products to cater to beverage and nutraceutical industries  Facility to be operative within the next 12 months

25. Slide 25: The Tetley Group Performance Review

    The Tetley Group Performance Review 2006/07

26. Slide 26: Tata Tea GB Ltd Company Financial Review

    Tata Tea GB Ltd Company Financial Review Rs in Crores Quarter 2 Year To Date Details 2007/08 2006/07 Increase % 2007/08 2006/07 Increase % Operating Income 553 542 2% 1066 1040 2%  Top line growth in core markets like UK,Canada & France  Market share leadership maintained in UK & Canada  Acquisit

27. Slide 27: Branded Tea - Market Shares

    Branded Tea - Market Shares (12 months MAT) Volume % Value % Geography Sep ‘07 Change Sep ‘07 Change GB 29.2 +1.0 26.1 -0.4 Australia 19.6 -1.5 13.4 -7.9 Canada 41.4 +1.8 37.3 +1.5 France 10.9 +0.5 10.3 +0.5 USA 7.7 +0.2 5.5 -0.1 (Source A.C.Nielson)

28. Slide 28: Tata Tea GB Ltd Performance Review

    Tata Tea GB LTD Performance Review Rs in Crores Quarter 2 Year To Date Details 2007/08 2006/07 Increase % 2007/08 2006/07 Increase % EBIT 74 56 31% 121 134 (10%)  Strong performance during the second quarter- recoups lag of the first quarter.  Strong performance driven by a variety of matrix viz.

29. Slide 29: Tata Tea GB Ltd Financial Performance - PAT

    Tata Tea GB Ltd Financial Performance -PAT Rs in Crores Quarter 2 Year To Date Details 2007/08 2006/07 Increase % 2007/08 2006/07 Increase % Operating PBT 48 32 47% 68 88 (22%) Interest on acquisitions 9 4 - 47 8 - Exchange Gain on (9) - - (22) - - Loan Exceptional Items 11 1 - 15 1 - Share of assoc

30. Slide 30: Update on acquisitions

    Update on acquisitions  Vitax- Delivers growth in the Polish market  Jemca: Begins to settle down. In line with expectations.  Good Earth: stable vis-à-vis previous year  Joekels: Great base for South African strategy

31. Slide 31: Tata Coffee Performance Review

    Tata Coffee Performance Review 2006/07

32. Slide 32: Tata Coffee – Consolidated

    Tata Coffee – Consolidated Rs Crores  Improved turnover reflects growth on acquisition  Consolidated Results improve by  Income - Rs 750 crores, up by 293%  PBT - Rs 44 crores - up 67%  PAT (before minority interest) at Rs 36 crores – up by 59%  PAT (after minority interest) at Rs 28 crores –

33. Slide 33: EOC Acquisition

    EOC Acquisition  Performance of EOC is in line with projections  During FY 2006, Folgers & EOC are the fastest growing brands among the top 10 competitors  EOC retained its position as 3rd largest brand after Folgers and Maxwell House. The market share increased from 4.2% to 4.5% during the calen

34. Slide 34: Strategy & Future Outlook

    <p TATA Tetley Strategy & Future Outlook

35. Slide 35: Drivers for accelerated growth: building portfolios

    Drivers for accelerated growth ….building portfolios through co-creation  High value specialty and green teas  RTD/Beverages  Coffee portfolio  Water  New products  Geographies

36. Slide 36: Drivers for accelerated growth: building capabilities

    Drivers for accelerated growth ….building capabilities through co-creation  Environment  Employees  Customers  Channel Partners & suppliers  Regulatory Authorities  Shareholders

37. Slide 37: Q&A

    Q&A

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