Slide 1: Exchange cover letter: participation in investor conference
8th December, 2020 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 00
Slide 2: cc: Securities Exchange Commission
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 la Bourse de Luxembourg 35A Boulevard Joseph II L-1840 Luxembourg
Slide 3: ITC: Securing the Future
ITC : Securing the Future Jefferies India ESG Summit 7th December 2020
Slide 4: Contributing to all sectors of the economy
CONTRIBUTING TO ALL SECTORS OF THE ECONOMY AGRICULTURE, MANUFACTURING & SERVICES Leading FMCG Marketer 2nd largest Hotel chain; Trailblazer in Green Hoteliering Foremost Agri Player pioneering rural transformation Clear Market leader in Paperboards, Paper & Packaging Industry
Slide 5: ITC: A Snapshot
ITC: A SNAPSHOT 02 An Exemplar in Triple Bottom Line Performance * Gross Sales Value includes all taxes (GST, Compensation Cess, VAT, Excise Duty, NCCD, etc.)
Slide 6: Track Record – Last 10 Years: Robust Financial Performance
Track Record – Last 10 Years ROBUST FINANCIAL PERFORMANCE Rs. cr. 02 ROIC at 58% Vs. 44% in FY10 Growth largely organic-led and funded through Retained Earnings Zero Debt Company; Consistent & Increasing Dividend Payouts Gross Sales Value includes all taxes (GST, Compensation Cess, VAT, Excise Duty,
Slide 7: ITC: FMCG Business Transformation
ITC: FMCG BUSINESS TRANSFORMATION 2001-02 2019-20 1 Categories 40+ Diversity of Portfolio <100 SKUs 1,800+ 3 Channels 10 Scale of 72K Markets Serviced 1,00,000+ Distribution 0.75 Mn Outlets Serviced 2 Mn+ 6 Factories 200+ Strength of 0.4 Mn sqft Warehousing Space 5.4 Mn sq.ft Resources 0.1 Mn MT Thr
Slide 8: Consumer Spend ~Rs 20,000 Crs Market Leadership
CONSUMER SPEND ~ RS 20,000 CRS MARKET LEADERSHIP # 1 in Branded Atta # 1 in the Cream Biscuits # 1 in Bridges segment # 1 in Notebooks # 2 in Noodles # 2 in Agarbattis # 1 in Dhoop segment # 2 in body wash # 2 in Deodorants No. 1 in women’s segment
Slide 9: ITC's Sustainability Vision
ITC’s Sustainability Vision
Slide 10: Sustainability Challenges
SUSTAINABILITY CHALLENGES One-third 12 million 54% of Increasing of the join India incidents of world’s the work is Extreme poor lives force every water Weather in India year stressed events
Slide 11: New Paradigm Needed
NEW PARADIGM NEEDED BUSINESS CANNOT RESPONSIBLE SUCCEED COMPETITIVENESS IN SOCIETIES THAT FAIL ✓ COMPETITIVE ✓ INCLUSIVE ✓ SUSTAINABLE
Slide 12: ITC Approach to Sustainability
ITC APPROACH TO SUSTAINABILITY Create innovative, synergistic models that reinforce sustainable competitive advantage & foster inclusive growth as well as create sustainable value chains ➢ Embed sustainability in Business operations • Low Carbon footprint, Water and Solid waste management ➢ Deepen e
Slide 13: ITC: An Exemplar in Triple Bottom Line Performance
ITC: An Exemplar In Triple Bottom Line Performance Carbon Water Solid Waste Positive Positive Recycling Positive 15 years 18 years 13 years Sustainable Livelihoods for 6 million people ITC e-Choupal – Empowering 4 million farmers 41% of Total Energy consumed from renewable sources Trailblazer as a l
Slide 14: Recognitions
Recognitions ITC rated AA by MSCI-ESG Highest amongst Global Tobacco cos ITC included in the Dow Jones Sustainability Emerging Markets Index, a distinction that is a reflection of being a sustainability leader in the industry and a recognition of the Company’s continued commitment to people and plan
Slide 15: Awards & Accolades
AWARDS & ACCOLADES World Business & Development Award 2012 at the Rio+20 UN Summit Inaugural UNDP-ICC Award Sustainability Leadership Award, Zurich Porter Prize 2017 for 'Excellence in Corporate Governance and Integration' The Stockholm Challenge Award Development Gateway Award
Slide 16: ITC Sustainability Report
ITC SUSTAINABILITY REPORT Publishing a stand-alone Integrated Report since The Sustainability Report is 2017-18 also mapped to TCFD recommendations. Highest level of third party Publishing a GRI based assurance by Deloitte - Sustainability Report since 'Reasonable Level' as per 2004. ISAE 3000 Align
Slide 17: Responsible Competitiveness: Robust ESG Framework
RESPONSIBLE COMPETITIVENESS CHAMPIONING TRIPLE BOTTOM LINE PERFORMANCE Robust ESG Framework • Sustainability Policies • Ambitious Goals & Targets • Stakeholder engagement • Performance & Reporting from each Unit • Materiality Analysis • Transparent Communication • Identification of Risks • Strategic
Slide 18: ESG Key Focus Areas
ESG KEY FOCUS AREAS Environment Social Governance • Climate Resilience • Sustainable Livelihoods • 3-tier Governance Structure • Water Security • Empowering Farmers • Ethics & Integrity • Afforestation • NextGeneration Agriculture • Code of Conduct • Strategic Risk • Bio-Diversity • Building Resilie
Slide 19: Addressing Climate Risk & Competitiveness
Addressing Climate Risk & Competitiveness
Slide 20: Low Carbon Footprint
LOW CARBON FOOTPRINT Renewable Energy – 41% of energy consumed 30 Platinum rated Green Buildings; World’s Greenest Luxury Hotels chain ITC Sankhya: World's First LEED Platinum Data Continuous Reduction in Specific Energy/Water Centre Consumption
Slide 21: Replenishing Natural Resources
REPLENISHING NATURAL RESOURCES WATER AFFORESTATION BIODIVERSITY
Slide 22: ITC's Paper Value Chain: Leveraging Technology & Innovation
ITC’S PAPER VALUE CHAIN LEVERAGING TECHNOLOGY & INNOVATION
Slide 23: Clonal Saplings grown in Nursery
Clonal Saplings grown in Nursery
Slide 24: Wasteland Conversion
Wasteland Conversion
Slide 25: ITC's Afforestation Initiative
ITC’S AFFORESTATION INITIATIVE
Slide 26: ITC's Social & Farm Forestry Initiative
ITC’S SOCIAL & FARM FORESTRY INITIATIVE Greening over 8,20,000 acres Social Contribution Providing Livelihoods to poor Tribals and Marginal Farmers Creating 150 million person days of employment Environmental Impact Carbon Sequestration Augmenting Green Cover Top Soil Retention Water Recharge Econom
Slide 27: Carbon Positive for 15 years
Carbon Positive for 15 years in a row Target Over As part of its 2030 Goals ITC is committed 2 times to achieving sequestration of over The amount of carbon dioxide emissions from ITC’s operations are being sequestered through 4 times its Social & Farm Forestry The CO2 emissions from Initiatives ope
Slide 28: Packaging solutions powering the paper value-chain
Packaging solutions POWERING THE PAPER VALUE-CHAIN
Slide 29: Biodiversity Conservation
Biodiversity Conservation Before Ahmednagar, Maharashtra After Actions Spread & Coverage • Eco-restoration of village commons & • 31,000 acres pasture land developed pasturelands – Mosaic Restoration • PPP with Rajasthan Govt to develop 2,47,000 acre • Reduce pressures on forest through commons frin
Slide 30: Pioneering Green Buildings
World’s largest LEED Platinum Luxury PIONEERING Hotel – ITC Grand Chola, Chennai GREEN BUILDINGS World’s Highest Rated LEED Platinum building – ITC Green Centre, Gurugram
Slide 31: Renewable Energy Mix
41.2% of ITC’s energy is from renewable sources Renewable Energy Mix 7 ITC units met more than 90% 91.5% Biomass 0.2% of their electrical energy Solar 8.3% requirements from renewable Wind sources in 2019-20
Slide 32: Water Security for All
Water Security for All
Slide 33: Offset Consumption, Water Balance, Drought Proofing Agriculture
Offset Drought Consumption Proofing +Water Balance Agriculture
Slide 34: Climate Change in India's Agriculture
Climate Change in India’s Agriculture “…..The last time we saw crops was during our grandfather’s time…..”
Slide 35: Participatory Watershed Planning
PARTICIPATORY WATERSHED PLANNING
Slide 36: Rainwater harvesting potential and water targets
RAINWATER HARVESTING POTENTIAL 1.2 MILLION Target ACRES 3 times 5 times Net Water Consumption Net Water Consumption 19,000 in 2020 in 2030 WATER STRUCTURES
Slide 37: ITC's Water Stewardship Mission
ITC’S WATER STEWARDSHIP MISSION REPLENISHING NATURAL RESOURCES
Slide 38: Water User Groups
WATER USER GROUPS
Slide 39: Improving Water Use Efficiency in Agriculture
Improving Water Use Efficiency in Agriculture More Crop Per Drop Others (Onion, Banana, Sugarcane Wheat Rice Coconut) 30,000 acres 1.52 lakh acres 500 acres 8,400 acres Pune: drip & Seedling Munger – Zero Till Chandauli – DSR Coimbatore – Banana Drip 82.63 m cu.m 45.09 m cu.m 0.65 m cu.m 7.39 m cu.m
Slide 40: ITC's Unit Water Security Programme
ITC’s Unit Water Security Programme • Ambitious plan to achieve water positive status in all its catchments • Two phased approach 1. Phase -1 (Offsets): Water harvesting equal to factory usage 2. Phase -2 (Water Positive status): Fill entire catchment’s water balance gap through supply & demand mana
Slide 41: Towards a Circular Economy – ITC WOW
TOWARDS A CIRCULAR ECONOMY – ITC WELL-BEING OUT OF WASTE (WOW) ✓ Covering 12.5 million citizens ✓ Livelihoods for 16,200 waste collectors
Slide 42: Managing Waste
MANAGING WASTE ✓ Plant to recycle Multi- Layered Plastic in Pune
Slide 43: Developing Sustainable Paperboard & Packaging Solutions
nenion Developing Sustainable Paperboard & Packaging soluti Bio-degradable boards Recyclable boards Sustainable Packaging ny) z \, Bio-Seal - BY ay Sar ir 6 Se rvé ce) Pack Bio compostable packaging solutions for packaged/fast-food & Personal Care industries. Launched on commercial scale. 2 g iy Com
Slide 44: Empowering Farmers & Next Generation Agriculture
Empowering Farmers & Next Generation Agriculture
Slide 45: Powering Next Generation Agriculture
POWERING NEXT GENERATION AGRICULTURE Agri Sector Critical Core Challenges to India’s Growth Story ✓ Productivity Employs 50% of ✓ Sustainability workforce but ✓ Market Access accounts for only 14% of India’s GDP
Slide 46: ITC in Agriculture: e-Choupal Ecosystem
ITC IN AGRICULTURE : E-CHOUPAL ECOSYSTEM Empowering 4 Million Farmers
Slide 47: e-Choupal Digital Infrastructure
e-Choupal Digital Infrastructure
Slide 48: Demonstration Farms: Choupal Pradarshan Khet
Demonstration Farms Choupal Pradarshan Khet
Slide 49: Leveraging Technology & Innovation to Enhance Productivity
ITC in Agriculture : Baareh Mahine Hariyali Leveraging Technology & Innovation to Enhance Productivity Varietal Improvement Choupal Pradarshan Khet Zero Tillage Short Duration Varieties Water Management Cropping Intensity Agri Best Practices Farm Mechanisation
Slide 50: Collaboration with NITI Aayog for 27 aspirational districts
Collaboration with NITI Aayog for improvement of agriculture in 27 aspirational districts – trained 1.5 million farmers
Slide 51: ITC Foods Brands - Driving Agri Value Chains
ITC FOODS BRANDS - DRIVING AGRI VALUE CHAINS
Slide 52: e-Choupal 4.0: Aspiration to benefit 10 million farmers by 2030
4.0 Leveraging the Digital Revolution to reinforce ITC e-Choupal as a Platform to provide the full array of new age solutions to empower the farmer Aspiration to benefit 10 million farmers by 2030
Slide 53: An Illustrative Example in Andhra Pradesh
An Illustrative Example in Andhra Pradesh, India Targeting 32% increase in farmer income in one year 25,000 10,000 acres GUNTUR Farmers KURNOOL KRISHNA PRAKASAM
Slide 54: Key Interventions: Target 32% Increase in Net Returns
Current Key Interventions Target Productivity Productivity 21.5 24 Quintals/Acre Quintals/Acre Digital Advisory e-Krishi Sevaks / FPOs Remote Sensing Avg. Price Avg. Price 86 91 Rs./Kg* Rs./Kg * As per 2019-20 season Crop Monitoring Post-Harvest Technologies Digital Quality Assaying Cost of Cultivat
Slide 55: Climate Smart Villages
CLIMATE SMART VILLAGES Weather Water Seed / Carbon/ Market Smart Smart Breed Nutrient Smart Smart Smart Coverage : 6,54,000 acres and 2,47,000 farmers, 23 crops, 17 states
Slide 56: Livestock Development adds to non-farm incomes
Livestock Development adds to non-farm incomes – Providing integrated animal husbandry services to nearly 20,00,000 milch animals.
Slide 57: Empowering women
Empowering women Over 76,000 rural women entrepreneurs
Slide 58: Skill Development Initiative
Skill Development Initiative Over 70,000 youth trained
Slide 59: ITC's rural education programme
ITC’s rural education programme has benefitted 780,000 children
Slide 60: Sanitary units constructed
Nearly 37,700 individual sanitary units constructed
Slide 61: Scale and Impact
SCALE AND IMPACT 6,100 e-Choupals, 35,000 villages, 4 million farmers 8,27,000 acres of forestry • – 150 million person-days of employment 11,56,000 acres of watershed development 20,00,000 milch animals covered 7,81,000 children benefiting from supplementary education 76,000 sustainable livelihoods
Slide 62: ITC's Social Investments Initiatives
ITC’s Social Investments Initiatives Horizon 1- Sustainable Livelihoods Today Sustainable Biodiversity Women’s Watershed Social Forestry Agriculture Empowerment Development Achieved:364,240* Achieved: 1,133,703* Achieved: 567,737* Achieved: 17,456* Covered: 72,402 Target: 630,000* Target: 2,200,000
Slide 63: Contribution to UN SDGs
Contribution to UN SDGs Women’s Sustainable Primary Diversity Water Occupational Climate Climate Water Economic Products Education and Equal Security for Health & Resilience Resilience Security Empower- Opportunity All Safety for All ment Sustainable Managing Social Supply Chains Women’s Sanitation
Slide 64: Governance: Trusteeship, Transparency, Ethical Conduct
Governance : Trusteeship, Transparency, Ethical Conduct
Slide 65: Strategy of Organization: 3-Tiered Governance Structure
STRATEGY OF ORGANIZATION Trusteeship, Transparency, Ethical Conduct Audit Committee Nomination & 3-Tiered Compensation Governance Committee Structure Independent Directors Committee Securityholders Relationship Committee
Slide 66: Governance Structure
RESPONSIBLE COMPETITIVENESS CHAMPIONING TRIPLE BOTTOM LINE PERFORMANCE Governance Structure Board Committee on CSR & Sustainability Headed by Chairman Corporate Management Committee (CMC) Headed by Chairman Sustainability Compliance & Review Committee chaired by Group Head Sust., EHS and Member CMC
Slide 67: Clearly Defined Policies - Sustainability
CLEARLY DEFINED POLICIES - SUSTAINABILITY Life Cycle Stakeholder Responsible Product Responsible Sustainability Engagement Advocacy Responsibility Sourcing Diversity and Environment, Prohibition of Freedom of CSR Child Labour Equal Health and Association Policy and Opportunity Safety Prevention of F
Slide 68: Clearly Defined Policies
CLEARLY DEFINED POLICIES Corporate Governance Policy Food Related Determination Dividend Products Party of a material Distribution Remuneration Policy Transactions subsidiary Policy Policy Bribery & Privacy Whistleblower Corruption Policy Policy Prevention of Sexual Harassment Labour at the Work Pla
Slide 69: Social Contract: ITC's Consumers, Partners, Employees
Social Contract : ITC’s Consumers, Partners, Employees
Slide 70: Helping Consumers Make Sustainable Choices
HELPING CONSUMERS MAKE SUSTAINABLE CHOICES ITC Life Sciences & Technology Centre Over 350 scientists and 900 patents filed Delivering Future Products Aimed at Health, Hygiene, Immunity and Well-being
Slide 71: WeAssure
f Fl WeAssure The commitment in collaborati
Slide 72: Creating a Workplace of Tomorrow
Creating a Workplace of Tomorrow
Slide 73: Encouraging Women Participation
ENCOURAGING WOMEN PARTICIPATION Reflections Series Inspiring stories
Slide 74: Slide 74
Slide 75: Looking Beyond: Ambitious Goals & Targets
LOOKING BEYOND: AMBITIOUS GOALS & TARGETS ITC’s Sustainable Packaging Plan Renewable Specific GHG Specific Water Recyclability Plastic Neutrality Energy (RE) Specific Energy Emissions 50% 30% 50% 40% 100% RE Energy 100% Plastic To enable sustainable 50% 30% reduction in 50% reduction in 40% reductio
Slide 76: Looking Beyond: Ambitious Goals & Targets
LOOKING BEYOND: AMBITIOUS GOALS & TARGETS Sequester over four times Create rainwater harvesting Create sustainable the CO2 emissions from potential equivalent to 5 times livelihoods for operations the net water consumption from 10 million people operations
Slide 77: A passion for profitable growth, sustainable and inclusive
A passion for profitable growth…. …..in a way that is sustainable……. …. and inclusive
Slide 78: Thank You
THANK YOU MF ENO “ Enduring Value > > —