Tata Consumer Products Limited · NSE:TATACONSUM

Tata Consumer Products — Tata Tea — FY2007/08 Earnings Presentation

24 slides from Tata Consumer Products's earnings presentation, May 30, 2008

  1. Slide 1: Tata Tea Ltd Analysts Meet Annual Results 2007/08

    Tata Tea Ltd Analysts Meet Annual Results 2007/08 May 30, 2008

  2. Slide 2: Contents

    Contents  Year Happenings  Group Performance  Tata Tea – Stand Alone  Tetley  Coffee Business  Mount Everest Mineral Water  Strategy & Future Outlook

  3. Slide 3: Year Happenings

    Year Happenings Event Impact Market Leadership Global sales growth of 10% Volume share leadership in India  Continued share leadership in UK and Canada Equity Investments Mount Everest Mineral Water  Entry into the water segment China JV  Entry into polyphenols, green tea Vitax  Strengtheni

  4. Slide 4: 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 Ltd 31.73 Zhejiang Tata Tea Extraction

  5. Slide 5: Group Highlights 2007/08

    Group Highlights –2007/08  Robust operating performance across the Group  Improved Income from Operations by 9% driven by higher branded tea & coffee sales partly offset by adverse fx translation  Domestic brand volume sales higher by  Record market shares in international markets  PBT prior to

  6. Slide 6: Group Financial Review: Operating Income

    Tata Tea Ltd Group Financial Review Rs in Crores 2007/08 2006/07 Increase % Operating Income 4392 4045 9%  Operating Income  Rs 4392 crores is 9 % higher than the previous year’s figure of Rs 4045 crores despite transfer of North India Plantations and a stronger Rupee. Growth attributable to:  Im

  7. Slide 7: Group Financial Review: EBIT and PBT

    Tata Tea Ltd Group Financial Review Rs in Crores 2007/08 2006/07 % Operating EBIT 618 607 2% Investment Income 40 59 (33)% Interest (222) (273) 19% Exchange Gain/(Loss) 56 34 64% PBT prior to 493 428 15% Exceptionals  Operating EBIT higher by 2% despite higher investments in advertisement ,adverse

  8. Slide 8: Group Financial Review: Exceptionals and PAT

    Tata Tea Ltd Group Financial Review Rs in Crores 2007/08 2006/07 % PBT prior to 493 428 15% Exceptionals Exceptionals 1567 138 - Profit Before Tax 2059 566 363% Tax (153) (108) (41%) PAT 1906 458 415%  Exceptionals includes Profits of Rs 1607 crores on Sale of EBI and Transfer of North India partly

  9. Slide 9: Branded Tea - Market Shares (12 months MAT)

    Branded Tea - Market Shares (12 months MAT) Volume % Value % Geography Mar ‘08 Change Mar ‘08 Change GB 30.1 +1.2 26.1 -0.1 Australia 18.8 -0.9 12.4 -1.3 Canada 41.3 +1.1 36.6 +0.8 France 9.1 +0.5 9.0 +0.5 USA 7.7 +0.4 5.5 -0.1 India 20.2 +2.3 20.4 +1.8 (Source A.C.Nielson)

  10. Slide 10: Tata Tea Stand Alone - Highlights

    Tata Tea Ltd Stand Alone - Highlights  Strong operating performance  Improved income from operations by 8% reflecting higher brand sales despite North India Plantation exit  Domestic brand sales- higher volumes by 15%  PBT before exceptional improve by 6%  Higher tax incidence  Financial Highl

  11. Slide 11: Tata Tea Company Financial Review: Income

    Tata Tea Ltd Company Financial Review Rs in Crores 2007/08 2006/07 Increase % Operating Income 1153 1070 8% Investment Income 110 75 47%  Total Income for the year ended March, 2008 at Rs 1153 crores is 8% higher than the previous year’s figure of Rs 1070 crores despite transfer of North India  Do

  12. Slide 12: Tata Tea Company Financial Review: Expenditure

    Tata Tea Ltd Company Financial Review Rs in Crores 2007/08 2006/07 Increase % Expenditure 987 891 (11)% EBIT 276 255 8% Interest (46) (38) (21)% PBT prior to exceptional 230 217 6%  Expenditure  Material Consumption :Increase reflects higher volume sales and increased purchases to fill the gap for

  13. Slide 13: India Brands Performance to-date

    India Brands Performance to-date Portfolio performs strongly- market leader in volume share  Tata Tea Premium, Tata Tea Agni and Tata Tea Gold : India’s largest brand-  Demonstrates healthy growth  Impressive gains in volumes post Jago Re  Stromg growth over PY despite price increase - through n

  14. Slide 14: Tata Tea Company Financial Review: PBT and PAT

    Tata Tea Ltd Company Financial Review Rs in Crores 2007/08 2006/07 Increase % PBT prior to exceptional 230 217 6% Exceptionals 156 133 17% PBT 386 350 10% Tax (73) (43) (70)% PAT 313 307 2%  Exceptionals include profit on sale of North India plantations  Higher tax incidence on account of increase

  15. Slide 15: Tata Tea GB Ltd Financial Review: Operating Income

    Tata Tea GB Ltd Company Financial Review Rs in Crores 2007/08 2006/07 Increase % Operating Income 2304 2298 -  6% increase at constant fx rates  Top line growth in most core markets  Record shares achieved in UK and Canada  Strong performances in GB, Canada, Australia, France and Poland offsetti

  16. Slide 16: Tata Tea GB Ltd Financial Review: Expenditure and EBIT

    Tata Tea GB LTD Company Financial Review Rs in Crores 2007/08 2006/07 Increase % Expenditure 2002 1952 (3)% EBIT 301 319 (6)%  EBIT would have been higher by Rs 18 cr on constant fx  Higher spends on promotional costs largely driven by a higher weight of promotional mainly in GB with volume led in

  17. Slide 17: Glaceau Proceeds

    Glaceau Proceeds  Profit on sale of EBI  Investible surplus  Investment of surplus  Returns from Investment

  18. Slide 18: Tata Tea GB Ltd Financial Review: PBT and PAT

    Tata Tea GB Ltd Company Financial Review Rs in Crores 2007/08 2006/07 % EBIT 301 319 (6)% Interest (103) (178) 42% Exchange Gain on Loan 56 34 64% PBT before 254 175 45% Exceptionals Exceptional Items 1491 - - Tax (45) (49) 8% PAT 1701 127 -  Interest cost lower on account of debt reduction and hig

  19. Slide 19: Consolidated Tata Coffee Financial Review: Operating Income

    Consolidated Tata Coffee Ltd Company Financial Review Rs in Crores 2007/08 2006/07 Increase % Operating Income 978 746 31%  Includes full year sales of Eight O Clock Coffee acquired in August, 2008  Stand alone Tata Coffee sales at Rs 307 crores improve by 15% due to increased instant coffee expor

  20. Slide 20: Consolidated Tata Coffee Financial Review: EBIT and PAT

    Consolidated Tata Coffee Ltd Company Financial Review Rs in Crores 2007/08 2006/07 Increase % Expenditure 872 670 (30)% EBIT 152 102 49% Interest (70) (62) (12)% Exceptionals - 4 - PBT 72 43 67% PAT 39 32 22%  Profit would have been Rs 13 crores higher for constant fx  Full year expenditure of Eig

  21. Slide 21: Mount Everest Mineral Water Financial Review

    Mount Everest Mineral Water Ltd Company Financial Review Rs in Crores April – Aug Sep- Mar April – Mar Apr – Mar Pre Acquisition Post Acquisition 2007 2007 2007/08 2006/07 Sales 9 16 25 24 PBT (5) (1) (6) 1  Acquired in August,2008  Profitability was impacted by costs incurred for gearing up the d

  22. Slide 22: Strategy & Future Outlook

    <p TATA Strategy & Future Outlook

  23. Slide 23: Drivers for accelerated growth

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

  24. Slide 24: Thank You

    TATA Thank You

Tata Tea — FY2007/08 Earnings Presentation on 6ix