Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — FY2015-16 Earnings Presentation
29 slides from Tata Consumer Products's earnings presentation, May 24, 2016
Slide 1: Letter to stock exchanges: Presentation to Analysts
TATA May 24, 2016 Bombay Stock Exchange Ltd. The Secretary Corporate Relationship Dept. National Stock Exchange of India Ltd. 4" Floor, New Trading Wing Exchange Plaza,5th floor Rotunda Building, PJ Towers Plot No. C/1, G Block Dalal Street Bandra Kurla Complex Mumbai 400 001 Bandra (E) Scrip Code -
Slide 2: Analyst Meet May 24, 2016
TATA GLOBAL BEVERAGES qb TATA
Slide 3: Agenda
1. EXTERNAL ENVIRONMENT AND EMERGING TRENDS Agenda 2. TGBL’S STRATEGIC PRIORITIES 3. FY2015-16 – BUSINESS PERFORMANCE 4. FINANCIAL OVERVIEW 2
Slide 4: External Environment and Emerging Trends
EXTERNAL ENVIRONMENT AND EMERGING TRENDS 3
Slide 5: External Environment
External Environment Implications • Mainstream black category volumes declining in key Focus on emerging trends – Shift in market international markets Health & Wellness, Premiumisation, trends Convenience • Premium and super-premium segments growing Expand non-black portfolio • High level of promot
Slide 6: Emerging trends: Health & Wellness
Emerging trends Category growth – USA 2010-2015 CAGR 12% • Growing preference for natural and healthy alternatives 7% 7% Health & Wellness 4% 0% • Carbonated Soft Drinks category growth declining in Sports and Carbonates RTD Coffee RTD Tea Bottled developed markets Water Energy Drinks Non-black vs B
Slide 7: Emerging trends
Emerging trends Coffee Pods % of total category - USA • Single-serve pod systems growing for coffee as well as tea 35% 30% 25% Premiumisation and • Innovative packaging formats emerging e.g. pyramid tea bags 17% format innovation 11% 7% • Tea and Coffee as artisanal products 2010 2011 2012 2013 2014
Slide 8: TGBL's Strategic Priorities
TGBL’S STRATEGIC PRIORITIES 7
Slide 9: TGBL's strategic priorities
TGBL’s strategic priorities • Focus on key brands in core categories: Tea, Coffee, Water • Profitable growth in core businesses: India, UK, Canada, USA (Coffee), Coffee Extractions Base business rejuvenation Focus on brand building, premiumisation and enhancing distribution reach Grow non-black tea
Slide 10: FY 15-16 Business Performance
FY 15-16 BUSINESS PERFORMANCE 9
Slide 11: Snapshot of financials
Snapshot of financials + 2% Rs Crs - 17% Rs Crs + 32% Rs Crs Total Operating Income Total Operating Profits Group Net Profits 10
Slide 12: FY 15-16 Business Summary
FY 15-16 Business Summary New product launches – drive towards premiumisation • 3 new launches in India • Successful Super Fruits launch in UK Brand building efforts • New Tetley logo, packaging and media campaign roll out • Tata Tea Premium restage Non-black portfolio growth • Green tea showing imp
Slide 13: New product launches
New product launches Tata Tea Gold Mixture Tata Tea Fusion Tata Coffee Grand (India) Tetley Signature Collection (Canada) Tetley Super Greens/Fruits (UK) EOC Coffee Instant Can/Jar (USA) Teapigs Matcha drink (USA) 12
Slide 14: Investing behind power brands
Investing behind power brands Sr. 13
Slide 15: Investing behind power brands: Tetley brand re-stage
Investing behind power brands: Tetley brand re-stage Tetley brand re-stage meets key objectives: Enhance brand positioning New logo and packaging Modernise & Premiumise brand identity Improve fixture navigation & shopability Celebrating success at iconic moments in British history where there is a c
Slide 16: Green tea and super premium segments growing in key markets
Green tea and super premium segments growing in key markets UK Green Tea India Green tea Our growth faster than Growth rate in double digits category growth in both Investments in Modern volume and value terms trade Supergreens gaining Brand activation - increasing momentum – voted product engagemen
Slide 17: Performance Update – India
Performance Update – India Base Business – Grow current brands and distribution • Maintained volume and value leadership • Growth in national as well as regional brands o Brand re-stage for Tata Tea Premium completed o Turnaround for Kanan Devan • White space: Successful new product launch in Mahara
Slide 18: Performance Update – Key International markets
Performance Update – Key International markets UK • Green tea sales continue to perform well – led by Supergreens • Moderate growth in retail channel; strong performance with top customers. • New packaging and media campaign well received • Successful launch of Super-fruits USA • Moderate growth in
Slide 19: Performance Update – Businesses in investment phase
Performance Update – Businesses in investment phase Starbucks JV • Topline growth with good store-level profitability • Currently operating 82 stores • Expansion to continue – new cities, new formats • Focus on reducing costs through localisation and other initiatives Nourishco • Tata Gluco Plus has
Slide 20: Performance Update – Non Branded Business
Performance Update – Non Branded Business Instant Tea • Topline growth in US and other export markets • Lower input costs boosts profitability • China business yet to stabilize Plantations • Topline growth aided by good pepper/ coffee sales • Coffee improvements due to Robusta • Tea plantations impa
Slide 21: Awards and Achievements
Awards and Achievements Over 50 accolades for the Power of 49 campaign Eight O’Clock Coffee wins Tetley Super Green Tea awarded two Reggies UK Product of the Year 2016 Tetley in UK wins five Great TGB wins at the Effie Website of the Year Award Tata Coffee wins two awards at the Taste Awards! Awards
Slide 22: Financial Overview
FINANCIAL OVERVIEW TATA GLOBAL BEVERAGES
Slide 23: Financial Overview
Financial Overview For the year Revenues are higher • Improvement in topline in underlying terms in India (branded tea business and JVs). • Higher revenue in Non Branded Business • Lower turnover in international business because of currency translation (RUB, GBP, AUD, CAD), market growth rates and
Slide 24: Financial Highlights
Financial Highlights Quarter ending March Particulars Year ending March Actual PY Variance (In Rs crores) Actual PY Variance 1966 1923 43 Total Operating Income 8111 7993 118 132 163 -31 EBIT 532 642 -110 16 8 8 Other Income 71 70 1 -18 -18 0 Finance Cost -69 -82 13 130 153 -23 Profit Before Excepti
Slide 25: SEBI unaudited results
> ' Unaudited Three months ended March 31 Decernmber 31 March 31 March 31 March 33 2016 2035 2025 2016 2035 Income from Operations Net Sates / Income fom Operations (Net of excise duty) 1927.99 2050.63 1874.58 7981.70 7832.67 Other Operating Income 37.58 33.84 428.07 128.81 160.72 Total Income from
Slide 26: Region-wise Income from Operations
Region-wise Income from Operations Quarter ending March Particulars Year ending March Actual PY Variance (In Rs Crores) Actual PY Variance 530 499 31 CAA 2,032 2,038 (6) 516 527 (11) EMEA 2,097 2,206 (109) 680 651 29 South Asia Brands 3,039 2,813 227 1,725 1,676 49 Total Brands 7,168 7,057 112 200 2
Slide 27: Balance Sheet
Balance Sheet Particulars March 2016 March 2015 (In Rs Crores) SOURCES OF FUNDS Shareholder’s Funds 6600 6368 Borrowings 1182 1324 Non Current Liabilities 446 461 Current Liabilities 1390 1358 TOTAL 9618 9511 APPLICATION OF FUNDS Fixed Assets: Goodwill 3792 3892 Others Fixed Assets 1101 1077 Investm
Slide 28: Dividend
Dividend Dividend declared 225%, same as PY. 27
Slide 29: Thank you
Thank you TATA GLOBAL BEVERAGES een EI tienciayan
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