Slide 1: Cover letter to stock exchanges
The Manager Listing Department National Stock Exchange of India Ltd. Exchange Plaza, Plot No. C-1, G Block Bandra-Kurla Complex Bandra (East) Mumbai 400 051 Dear Sirs, ITC Limited Virginia House 37 J. L. Nehru Road ANY Kolkata 700 071, India VA Tel. : 91.33 2288 9371 Enduring Value — Fax : 91 33 228
Slide 2: cc: Securities Exchange Commission, Luxembourg Stock Exchange
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: Media Statement: Standalone Results Highlights
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 June 01, 2021 Standalone Financial Results for the Quarter and Year ended 31st March, 2021 Highlights -----------------------------------------------
Slide 4: Agri Business, Paperboards and Hotels in Q4
Agri Business posts robust growth in Q4 - Q4 Segment Revenue & Segment Results up 78.5% & 54.2% respectively. - Wheat, rice, oilseeds, exports of value-added food safe spices and higher supplies to support enhanced scale in Branded Packaged Foods Businesses drive growth. Paperboards, Paper & Pac
Slide 5: Company response and FY21 performance
Company also formed strategic partnerships, deployed innovative delivery models and enhanced usage of digital technologies for efficient market servicing. With safety and wellbeing of the Company’s employees, partners and associates accorded paramount importance, the Company instituted the highest s
Slide 6: Dividend recommendation and FMCG-Others
for the year stood at Rs. 10.59 (previous year Rs. 12.33). In line with the Company’s track record of consistent increase in annual dividend payouts, the Directors are pleased to recommend Final Dividend of Rs. 5.75 per Ordinary Share of Re. 1 each for the financial year ended 31st March, 2021. Toge
Slide 7: FMCG-Others segment performance
Notwithstanding the challenging conditions prevailing during the year, the Company’s FMCG- Others businesses recorded Segment Revenue of Rs. 14,728.21 crores representing an increase of 14.7% y-o-y. On a comparable^ basis, FMCG-Others Segment Revenue grew by 15.8%. Segment EBITDA grew at a robust pa
Slide 8: Staples business: Aashirvaad
In the Staples Business, ‘Aashirvaad’ atta fortified its market standing across geographies leveraging a robust product portfolio anchored on the Company’s agri-sourcing expertise. The value-added portfolio, consisting of Multigrain, Select and Sugar Release Control atta, posted robust growth driven
Slide 9: Dairy & Beverages business
In the Dairy & Beverages Business, the ‘Aashirvaad Svasti’ fresh dairy portfolio comprising pouch milk, pouch curd and paneer, gained strong consumer traction on the back of highest quality standards and superior taste profile. The products are currently available in Bihar and West Bengal. ‘Aashirva
Slide 10: Hygiene products: Savlon and Nimyle
Refreshing Spray, Spray and Wipe, Multi-purpose Disinfectant Liquid, Germ Protection Wipes, Face Mask, ‘Hexa’ range of soaps and hand sanitizing liquid. These products received excellent consumer response and have been scaled up across markets. ‘Savlon’ witnessed significant growth in revenue and ac
Slide 11: Incense Sticks and Safety Matches
Incense Sticks (Agarbattis) and Safety Matches The Agarbatti industry witnessed significant challenges in the wake of the COVID-19 pandemic marked by severe disruptions in market and outlet operations across the country along with a drop in ‘out-of-home’ consumption due to closure of temples. ‘Manga
Slide 12: Cigarettes business and illicit trade
strategic markets with the launch of differentiated offerings to fortify the portfolio across segments. Punitive taxes on the legal cigarette industry have resulted in rapid growth in the illicit cigarette trade, making India the 4th largest illicit cigarette market globally as per Euromonitor estim
Slide 13: Cigarettes manufacturing and outlook
set in areas of quality, sustainability, supply chain responsiveness and productivity. Cutting-edge technologies such as Industry 4.0 and Data Sciences were leveraged to build a smart manufacturing environment of connected systems. As aforestated, after a challenging first half, the Business staged
Slide 14: Hotels: new properties and asset-right strategy
Construction of 3 new properties - ITC Narmada, a Luxury Collection hotel in Ahmedabad and Welcomhotels at Bhubaneswar and Guntur - with around 500 rooms is nearing completion. The Company’s ‘asset-right’ strategy envisages a large part of incremental room additions to accrue through management cont
Slide 15: Agri business: leaf tobacco
inspections for all major customers leveraging digital technologies. Against the backdrop of a challenging business environment, the Business continued to leverage its crop development expertise, superior product quality and world-class processing facilities and consolidate its leadership position i
Slide 16: Agri business: dairy and wheat exports
significant increase in daily milk collection. The Business strengthened its network in West Bengal and Bihar to support the growing requirement for fresh dairy products and in Punjab towards supporting the requirements of ‘Sunfeast’ dairy beverages. The capability to source superior quality milk en
Slide 17: Paperboards and sustainable packaging
and strengthening the fibre chain for securing cost-competitive wood supplies. These augmented capabilities have made the Business stronger and more resilient and have helped it to effectively navigate the emergent challenges in the aftermath of the pandemic. The Company is actively engaged in devel
Slide 18: Sustainability and product links
As a testament to Responsible Luxury and the organisation’s Triple Bottom Line philosophy, ITC Windsor, Bengaluru, became the first hotel in the world to receive the prestigious LEED Zero Carbon Certification. Awarded by US Green Building Council (USGBC), this certification recognizes buildings oper
Slide 19: Q4 FY21 Results
Q4 FY21 Results 1st June, 2021
Slide 20: 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 21: FY21 Operating Context
FY 21 Operating Context ▪ Sharp contraction of 7.3% in GDP – multi-decadal low! ̶ Industry (7.0)%; Services (8.4%); Agriculture +3.6% ̶ Fixed Capital Formation declined 10.8% & Private Consumption degrew by 9.1% ̶ MSME, Unorganised, Contact-intensive sectors deeply impacted ̶ Monetary/liquidity stim
Slide 22: ITC Responded with Speed and Agility
Winning in the New Normal ITC Responded with Speed and Agility 3 Pronged Approach ▪ Safety protocols, health advisories rolled out ▪ Reinforce Trust – superior product quality & across all nodes of operations hygiene standards ▪ Proactive engagement with authorities to Survive Revive Do the Best to
Slide 23: FY21 Results: Headline Financials & Business Highlights
FY21 Results Headline Financials & Business Highlights 5
Slide 24: Key Highlights: FY21
Key Highlights: FY21 ▪ Strong sequential recovery momentum in H2 ‒ Significant improvement in y-o-y growth trajectory ▪ FMCG Business posts strong performance ‒ Comparable Revenue* up 16% ‒ 120+ innovative products launched – hygiene, health & wellness, naturals, convenience ‒ Sunrise amalgamated w.
Slide 25: FMCG Others
MENA Enduring Value FMCG Others RW AASHIRVAAD a Nash Vegetable & Fruit Wash ENGAGE ciama DER N Sunfeast Farmlite —e MAFIQE =s== cell by cell Vivel CHARMIS
Slide 26: FMCG Industry Trends – Update
FMCG Industry Trends – Update ▪ Demand for Health & Hygiene, Immunity, Ayurveda products remained elevated; albeit at lower levels Vs. H1 ▪ Staples & Convenience foods demand normalised after a surge in H1 ̶ Broadening of purchase assortment by consumers and lower ‘at-home’ consumption on the back o
Slide 27: FMCG Others: Robust growth in Revenue
FMCG Others Robust growth in Revenue Segment Revenue* up 16% in Q4 as well as full year FY21 Staples, Convenience Foods, Discretionary / Health & Hygiene Products Hygiene OOH FY21 +20% +2% Q4: +13% Q3: +11% Q4: +23% Q3: +11% Q2: +25% Q1: +34% Q2: -2% Q1: -25% c. 75% → 78%^ c. 25% → 22%^ *Ex ESPB, LR
Slide 28: FMCG Others: Sustained improvement in Profitability
FMCG Others Sustained improvement in Profitability Q4 Full Year Robust Purposeful Brand Innovation Portfolio Levers of Margin Power Expansion Operating Of Leverage Digital Supply Chain Efficiencies Segment EBITDA up 19% in Q4 FY21 Segment EBITDA up 44% in FY21 Comparable* Margins up 115 bps in Q4 FY
Slide 29: Cutting-edge R&D capability: LSTC
Cutting-edge R&D capability Fuelling Growth through Innovation Life Sciences & Technology Centre, Bengaluru Capabilities 350 highly Partnerships with qualified scientists; Global R&D over 900 patent centers & applications Academia LSTC Pilot Plants for all State of the Art product categories Analyti
Slide 30: 120+ New Launches in FY21
120+ New Launches in FY21 Insight + Innovation >> Impact Hygiene++ , Protection & Care ‘Good For You ’ & ‘Free From’ Convenience & On-the-Go Aashirvaad Aashirvaad Aashirvaad Nature’s Super Food On-the-Go Range Ready to Cook Savlon Organic Atta & Dals Hexa range, Disinfectants, Masks & Wipes Sunfeast
Slide 31: 120+ New Launches in FY21 (continued)
120+ New Launches in FY21 Insight + Innovation >> Impact Indulgence Skin Care Interactive Education Fabelle Sunfeast Luxury Chocolates Milkshakes Charmis Facewash, Face Serum & Hand Cream Sunfeast Dark Fantasy Sunfeast Sunfeast Choco Chip, Choco Nut Fills, All Rounder Caker Choco Creme Classmate Int
Slide 32: Building Brands With Purpose
Building Brands With Purpose Healthier & Safer Women Responsible Citizens India Empowerment for the Future Women Empowerment 14
Slide 33: Driving Digital Engagement: Focused Communication
Driving Digital Engagement Improving “quality of awareness” Focused Communication Community Marketing High Frequency Campaigns 15
Slide 34: Driving Digital Engagement: Influencers & Communities
Driving Digital Engagement Building Influencers & Communities Leveraging social media influencers Engaging with Michelin Chefs of India 16
Slide 35: Creating Impactful Communications
Creating Impactful Communications Building Brand Awareness Garnering Consumer Attention Generating Digital PR 14 mn impressions with influencers such as Neha Kakkar Leveraging Social media and News apps Unboxing the New Sunfeast Dark Fantasy on the Bingo! Comedy Adda internet - all things New 17
Slide 36: Innovative Outdoor Campaigns
Innovative Outdoor Campaigns India’s 1st Floating LED Billboard Refreshed Brand Communication Sunfeast Dark Fantasy Bingo! Snacks 18
Slide 37: Awards & Accolades
Awards & Accolades Industry Recognition – Marketing Excellence #NoHandsUnwashed #NoHeartUntouched Award for excellence in design, creativity and advertising 19
Slide 38: Strategy Pillars FMCG Others
FMCG Others Strategy Pillars Insights ITC Wide & Deep & Synergy Distribution Innovation Agile & Value Future Ready Purposeful Efficient Accretive Portfolio Brands Supply Chain M&A Power of Digital Extreme Quality & Cost Focus 20
Slide 39: FMCG Others Strong Growth Platforms
FMCG Others Strong Growth Platforms Fortifying the Core Addressing Adjacencies through Mother Brands Building the New Core No.1 In Branded Atta No.1 In Cream Biscuits No.1 In Bridges Snacks No.1 In Notebooks No.1 In Dhoop No.2 In Noodles No.2 in Agarbatti Annual Consumer Spends ~22,000 cr. 21
Slide 40: Creating Structural Advantage
Distributed Manufacturing & Agile Supply Chain Creating Structural Advantage ICML Network Reduce Distance-to-Market Fresher Products Responsive supply chain 01 04 02 Delayering Operations Direct shipments Eliminate Multiple Handling Smart Manufacturing Industry 4.0 03 Automation Energy, Quality, Yie
Slide 41: Building A Robust FMCG Business
SMART | AGILE | RESPONSIVE Building A Robust FMCG Business Leveraging cutting-edge Digital technologies Smart Consumer Smart Trade • App for online ordering/engagement with Retail top outlets Tech • Virtual Salesman App for online ordering/scheme communication Continuous Superior Consumer Tracking &
Slide 42: Sunrise Foods - Update
Sunrise merged with Company pursuant to approval of Sunrise Foods - Update scheme by NCLT, Kolkata bench (Appointed date: 27th July’20) Integration process New product/channel/market First Year Business completed expansion underway targets achieved • People & Process integration • Market / outlet se
Slide 43: FMCG Cigarettes - Q4 FY21
Sequential recovery momentum sustained FMCG Cigarettes - Q4 FY21 Q4 Volumes at nearly pre-Covid levels ▪ Q4 Net Revenue up 6.7% y-o-y; margins up 70 bps Segment Revenue ₋ Continued progressive volume recovery to reach nearly pre-Covid levels 5860 cr. 14.2% ₋ Smart recovery in metros and large town m
Slide 44: FMCG Cigarettes: Recent Portfolio Interventions
FMCG Cigarettes Recent Portfolio Interventions Innovation @ Premium End 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
Slide 45: Smuggled cigarettes remain widely available
Smuggled Cigarettes remain widely available, FMCG Cigarettes despite deterrent actions by authorities 27
Slide 46: Hotels Business
/// Hotels Business Responsible Luxury Highest Standards of hygiene & safety Sustainability | Authenticity| Well Being & Safety ITC Royal Bengal
Slide 47: Hotels Business – Q4 FY21
Sequential improvement in performance Hotels Business – Q4 FY21 Q4 Segment EBITDA at 25 cr. ➢ Sequential improvement in revenues; still behind pre-Covid levels ̶ Wedding business, staycations/motorable getaways key drivers of revenue ̶ Leisure locations continued to witness strong demand ̶ Robust re
Slide 48: Hotels: New F&B Initiatives gain traction
Hotels New F&B Initiatives gain increasing traction Digital interventions ensure continued Guest Connect New Launches in F&B initiatives – Season’s festivities & Digital Series for Guest Takeaway/Home Delivery menu exclusive dining Connect Food for Thought Series Well Being Master Series 30
Slide 49: Hotels: Special Packages drive demand
Hotels Special Packages drive demand Room Initiatives – Special Packages 31
Slide 50: Hotels Business Strategy Refresh
Hotels Business Strategy Refresh Refreshed & Distinctive Identity & Positioning of Loyalty Programs: Maximise Welcomhotel brand enrollments and drive engagement Launch boutique Gifting: Partnership, experiential brand - Engagement and Offers curated experiences for ASSET RIGHT AUGMENT REVENUE Takeaw
Slide 51: Agri Business
MM ENA Enduring Value Agri Business
Slide 52: Agri Business – Q4 FY21
Agri Business – Q4 FY21 Strong performance in Agri Segment Segment Revenue ▪ Revenue growth driven by export opportunities in Wheat, Rice and Oilseeds ‒ Wheat exports to Bangladesh, Malaysia, Sri Lanka & UAE 3369 cr. 78.5 % ▪ Strong growth in Value Added spices to Food Safe markets Segment Results ▪
Slide 53: Agri Business Transformation Pillars
Agri Business Transformation Pillars Deliver sustainable competitive advantage to ITC Businesses High quality & cost competitive agri-sourcing Develop a Future Ready portfolio of value-added products to drive growth & margins Organic/Food safe Develop a robust business model to scale up e-Choupal 4.
Slide 54: Agri SBU: Moving up the Value Chain
Agri Business – Agri SBU Moving up the Value Chain ‒ Customised supply chain & infrastructure ‒ Food safe, Organic, Certified ‒ End-use specific offerings Value Added – Niche & Brands ‒ Focus on product development ( Spices, Fruits & Vegetables, MAPE) ‒ Long-term supply commitments ‒ Long-term suppl
Slide 55: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging
Slide 56: Paperboards, Paper & Packaging – Q4 FY21
Paperboards, Paper & Continued strong sequential Packaging – Q4 FY21 recovery momentum • Strong recovery in domestic demand and robust growth in Exports Segment Revenue - Higher offtake across most end-user segments barring Publications, Notebooks & Wedding cards - Strong growth in Specialty papers
Slide 57: Innovation: Sustainable Paperboard & Packaging solutions
Developing Sustainable Innovation Paperboard & Packaging solutions Bio-degradable Boards Recyclable Boards Sustainable Packaging Bioseal Biodegradable packaging solutions for packaged/fast-food & Personal Care industries. Launched on commercial scale. Completely Biodegradable Completely Recyclable i
Slide 58: Paperboards Business Strategy Pillars
Paperboards, Paper & Packaging Business Strategy Pillars Augment Value Added product portfolio Proactive Capacity augmentation; New substrates A One-stop Packaging Solutions Provider Leverage multi-platform capability to ensure world-class quality and speed-to-market at competitive cost Augment Rene
Slide 59: Financials
Financials 41
Slide 60: Key Financials
Key Financials Strong Revenue growth in Q4 All Segments perform well; Hotels improves sequentially (Rs. cr.) Q4 Q4 GOLY FY21 FY20 GOLY FY21 FY20 Gross Revenue 14,023 11,300 24.1% 48,151 46,324 3.9% Net Revenue 13,176 10,865 21.3% 45,216 45,266 -0.1% EBITDA 4,473 4,164 7.4% 15,522 17,904 -13.3% PBT (
Slide 61: Segment Revenue: Q4 FY21
Segment Revenue: Q4 FY21 Rs. cr. Q4 2020-21 2019-20 GOLY% • FMCG – O Comparable revenue up 16%^ Segment Revenue (Gross) - Staples, Convenience Foods, Health & Hygiene Products up 13%; a) FMCG - Cigarettes 5860 5131 14.2% Discretionary/OOH up 23% - Others 3688 3184 15.8% Total FMCG 9547 8314 14.8% b)
Slide 62: Segment Results: Q4 FY21
Segment Results: Q4 FY21 Rs. cr. Q4 2 Yr. 2020-21 2019-20 GOLY% CAGR Segment Results % a) FMCG - Cigarettes 3666 3403 7.7% -2.5% % - Others 189 147 28.4% -3.1% • Hotels: EBITDA positive at 25 cr. % Total FMCG 3855 3550 8.6% -2.5% % b) Hotels -40 43 • Agribusiness: driven by strong growth in revenue
Slide 63: FY21: Segment Revenue & Results
FY21: Segment Revenue & Results Rs. cr. Rs. cr. Full Year Full Year 2020-21 2019-20 GOLY% 2020-21 2019-20 GOLY% Segment Results Segment Revenue (Gross) a) FMCG - Cigarettes 12720 14853 -14.4% a) FMCG - Cigarettes 20333 21202 -4.1% - Others 833 423 96.8% - Others 14728 12844 14.7% Total FMCG 13553 15
Slide 64: Quarterly Trends - Segment Revenue
Quarterly Trends - Segment Revenue Figs. in Rs. cr. Segment Revenue 2 Y-O-Y% 70 00 0 60 00 5,860 50 00 5,498 5,121 40 00 3,854 3,922 3,744 3,688 3,746 3,375 3,369 30 00 2,985 20 00 2,482 235 288 10 00 23 82 1,459 1,478 1,656 1,026 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FMCG Ci
Slide 65: ITC – a Global exemplar in Sustainability
ITC – a Global exemplar in Sustainability 47
Slide 66: ITC: A Global Exemplar in Triple Bottom Line Performance
ITC: A Global Exemplar in Triple Bottom REDUCE I RECYCLE I RESTORE Line Performance Action on Climate Water Security for 360₀ Approach to Future-Ready Agri Recent Global Change All Plastic Waste Value Chains Sustainable Recognitions Livelihoods 41.2% Energy from Renewables Rainwater Harvesting (RWH)
Slide 67: Sustainability 2.0: ITC's 2030 Sustainability Targets
Sustainability 2.0 ITC’s 2030 Sustainability Targets Raising The Bar Bolder Goals Renewable Specific Energy Specific GHG CO2 Sustainable Creating Sustainable Energy (RE) Consumption* Emissions* Sequestration Packaging Plan Livelihoods 4X 50% 30% 50% From 2X, as compared 100% 10 million RE Energy to
Slide 68: Looking Ahead
Looking Ahead 50
Slide 69: Second wave intensified from March 2021
2nd wave intensified from Surge in Daily New Cases March’21 onwards India : New Cases – Moving 7-day Average (‘000s) Top 5 States : Daily Active Cases Karnataka Tamil Nadu Maharashtra 450 7 May’21 17 Sep’20 3,42,031 2,74,601 400 Daily New Cases – 97,894 Daily New Cases – 4,14,188 Active cases 3,05,5
Slide 70: Covid 2.0 – A key monitorable
Economic recovery momentum Covid 2.0 – A key monitorable interrupted by second wave ‘Putting India First’ - Supporting the Nation’s fight against the pandemic ▪ Ensuring safety and well-being of employees, partners and associates ▪ Debottlenecking transportation of medical oxygen, commencing supply
Slide 71: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. 53
Slide 72: Links
Links Product/initiative Link Aashirvaad https://www.facebook.com/watch/?v=2580570025575537 Aashirvaad Svasti Select Milk https://www.aashirvaadsvasti.in/select-milk.aspx YiPPee! Saucy Masala Noodles https://youtu.be/7EL60151PRE https://www.instagram.com/sunfeast_yippee/ YiPPee! and Bingo! on Instag
Slide 73: Thank You
Thank You 55