Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Shareholder Meeting (June 2021)
35 slides from Tata Consumer Products's shareholder meeting presentation, Jun 25, 2021
Slide 1: 58th Annual General Meeting, Financial Year 2020-21
58th Annual General Meeting Financial Year 2020-21 Presentation by Sunil D’Souza Managing Director & CEO 25th June 2021
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such expectation
Slide 3: Agenda
Agenda About Us Performance Highlights Progress against Strategic Priorities Business performance – Business performance – Awards & Recognitions India International
Slide 4: About Us
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Slide 5: We are Tata Consumer Products
We are Tata Consumer Products In a nutshell Integrated F&B company #2 branded tea player with rich heritage of Tata, globally aspiring for a larger share of the FMCG World ₹ 11.6K crore consolidated Reach to almost 200mn revenue in FY21 and current households in India and market cap of ~₹61k Cr. dis
Slide 6: Performance Highlights
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Slide 7: Key Highlights - FY21
Key Highlights - FY21 • Consolidated Revenue up 20% Consolidated EBITDA for the year with Group Net Profit up 102%. up 20% YoY, with strong margin expansion in International & India • We added c.Rs. 2000cr to Foods business. India beverages topline this year business faced margin pressure due to unp
Slide 8: Key Highlights - FY21 (contd.)
Key Highlights - FY21 (contd.) During the year we gained market India business integration is now In line with our strategic share in both the core complete. priority of exploring new categories of tea (190bps)3 and opportunities, we acquired We continue to invest in building 100% stake in Ready to
Slide 9: Key Businesses snapshot – FY21
Key Businesses snapshot – FY21 International Beverages In ₹ Cr India Beverages India US Coffee International Foodservice Tata Coffee Consolidated (unless specified) Foods Tea (International) (incl. Vietnam) Revenue 4,601 2,441 1,293 1,983 193 964 11,602 Revenue Growth 36% 18% 15% 10% -35% 15% 20% Co
Slide 10: Group Performance at a glance – FY21
Group Performance at a glance – FY21 ₹ 11,602 Cr. ₹ 1,569 Cr. ₹ 1,342 Cr. ₹ 930 Cr. ~₹ 2,421 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Net Cash$ Growth (Y-on-Y) 20% 20% 24% 102% Margin% 13.5% 11.6% 8.0% Margin expansion -10 bps +40 bps +320 bps (Y-on-Y) EPS 9.30 (EPS) EPS Growth (Y-on-Y) +86% (
Slide 11: Dividend and Market Capitalization
Dividend and Market Capitalization Consistent growth in dividend pay out Step change in Market Capitalization 400 4.05 4.50 70,000 664 700 350 4.00 60,000 600 3.50 300 2.70 3.00 50,000 500 250 2.50 2.50 40,000 367 400 2.35 2.50 200 2.00 30,000 269 300 150 244 1.50 20,000 200 100 149 1.00 50 10,000 1
Slide 12: Progress against Strategic Priorities
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Slide 13: Strategic Priorities
Strategic Priorities Strengthen & Drive Digital Unlock Create future Explore new Embed accelerate core & Innovation synergies ready org opportunities sustainability business 13
Slide 14: Jump shifting S&D execution
Jump shifting S&D execution Numeric distribution Direct coverage +15% Increase +11% On track for Increase by Sep’21 TSOs1 # Rural distributors Tea Salt Ecommerce contribution (% of Sales ) Market share Channel growth 5.2% MT 2.5% Tea +190 bps2 MT +31% YoY Salt + 160 bps2 Ecomm +130% YoY FY20 FY21 Al
Slide 15: Powering our brands
Powering our brands TATA Tea Gold celebrated Women’s day by launching ‘Dil Ki Suno’ Tata Tea Agni highlighting its value and strength positioning Kanan Devan restage campaign celebrating the ‘Unique Diversity’ of Kerala Tata Salt #SawaalDeshKiSehatKa campaign Influencer- led Digital & PR campaign to
Slide 16: Driving premiumization
Driving premiumization Beverages Foods D2C https://tatacoffeesonnets.com https://www.tatatea1868.com 16
Slide 17: Volume growth acceleration across India business
Volume growth acceleration across India business India beverages volume growth trend India foods volume growth trend 25% 25% 20% 3 year CAGR 20% 3 year CAGR FY21 FY21 (FY17-20) (FY17-20) 7.1% 11.6% 3.4% 11.4% 15% 15% 10% 10% 5% 5% 0% 0% Q1FY20 Q2FY20 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY20
Slide 18: Digital transformation
Digital transformation Distributor Management Integrated Business System (DMS) Planning (IBP) Sales Force Chief Digital Officer Automation (SFA) onboard Enterprise Resource Planning (S4 Hana) Improved sales Lower cost to Lower working Improved Lower supply outcomes serve capital service levels chain
Slide 19: Fueling the innovation funnel
Fueling the innovation funnel 19
Slide 20: On track to deliver committed synergies
On track to deliver committed synergies Initial pre-tax synergy estimate of INR 100-150 Cr in 18-24 months Post-merger, dedicated team set Adopted a first principle design, internal up to analyze and realize best practices and benchmarking with best- synergies in-class FMCG companies Optimization of
Slide 21: Capitalising on inorganic opportunities
Capitalising on inorganic opportunities NourishCo Soulfull Ragi Bites Millet Muesli Smoothix Oat Millets Meal ▪ Platform for future growth. ▪ Strategic fit for our Health & Wellness portfolio. ▪ Significant scope for geographic expansion (~35% country) ▪ Significant scope for geographic expansion (1
Slide 22: Building a future ready organisation
Building a future ready organisation R&D Structure Shopper Talent in Dedicated CDO Revenue Dedicated IR & Resources marketing Ecommerce Integration Management Management Office (IMO) 22
Slide 23: Continued focus on sustainability
Continued focus on sustainability Sustainable Sourcing Sustainably Sourced tea ~100% internationally and ~60% in India Water Management Water, sanitation and hygiene for 25,000 members in Assam and Himachal Climate Change Reduced GHG EMISSIONS by 16%*; Improved renewable energy to 26%# Sustainabilit
Slide 24: Business performance - India
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Slide 25: India Packaged Beverages
India Packaged Beverages Performance commentary Tata Tea Premium celebrates the +32% • Revenue for the year grew 32%, with 12% volume growth in tea. State's pride on Odisha Day by FY21 Revenue collaborating with Odisha’s well Growth known sand artist. • Coffee revenue grew 36% YoY with a volume grow
Slide 26: India Foods
India Foods An initiative to celebrate home cooked food & create awareness Performance commentary about wholesomeness of Indian quintessential thali (plate) #SampannPoshanThali +18% • Salt revenue grew 17% during the year with 11% volume growth. FY21 Revenue Growth • Continued to drive premiumizatio
Slide 27: NourishCo (100% Subsidiary)
NourishCo (100% Subsidiary) * 186% Performance commentary Sales as a % of PY 109% 188Cr • Revenue for the year grew 4%, impacted by COVID induced lockdowns and reduced OOH consumption. FY21 Revenue 82% 64% • TWP achieved highest ever volume during the year, growing 60% in volume terms in FY21. • Fit
Slide 28: Tata Coffee (inc Vietnam) (~58% Subsidiary)
Tata Coffee (inc Vietnam) (~58% Subsidiary) Performance commentary Tata Coffee offers unique customized blends in Instant Coffee +14%# • Revenue for the year grew 14% with EBIT growth of 69%. to cater to its diverse FY21 Revenue B2B customer base. Growth Extractions • Overall extraction business gre
Slide 29: Tata Starbucks (JV)
Tata Starbucks (JV) Performance commentary • Revenue for the year declined 33%, driven by the adverse 94% impact of COVID on out-of-home consumption. Stores re-opened* • The business was EBITDA+ for the year. • Business saw sequential recovery till February, but the second wave of COVID has impacted
Slide 30: Business performance - International
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Slide 31: UK
UK Performance commentary • Revenue for the year grew 2% (constant currency) with +2% substantial growth in EBIT, partly benefitting from increased in- FY21 Revenue home consumption of tea led by the pandemic. Growth^ • EBIT growth was driven by strong overheads management and lower trade promotion
Slide 32: USA
USA New espresso-based and flavored coffee offerings added to EOC Barista Blends Performance commentary • Coffee: Coffee had a strong year with revenue growth of 9% +9% (constant currency) & volume growth of 7%, with K-cup growth FY21 Coffee Revenue outpacing Coffee bags. Growth^ • Innovation moment
Slide 33: Canada
Canada Performance commentary • Robust revenue growth of 15% (constant currency) in FY21. +15% FY21 Revenue • Tetley continues to be the #1 brand in the market with both Growth^ regular and specialty teas outgrowing the category during the year. • We are now the volume leaders in Specialty tea also
Slide 34: Awards & recognition
Awards & recognition 1. India Foods 2. India Beverages Tata Salt received several awards at Tata Tea Premium won ‘Disruptive India Digital Marketing Awards 2020 brand of the year’ at The Brands and India Digiplus Awards 2021. Disruption Awards’21. 3. Sustainable 4. Operational Development Excellence
Slide 35: Thank You
TATA CONSUMER PRODUCTS Thank You
Tata Consumer Products — Shareholder Meeting (June 2021) on 6ix