Slide 1: Cover letter to stock exchanges
0 TATA February 17,2020 The National Stock Exchange BSE Ltd. The Calcutta Stock of India Ltd. Corporate Relationship Dept, Exchange Ltd., Exchange Plaza, 5ttl Floor, 1st Floor, New Trading Wing, 7, Lyons Range, G Block, Bandra-Kurla Rotunda Building, PJ Towers, Kolkata - 700 001 Complex, Dalal Stree
Slide 2: Tata Consumer Products Investor Update - February 2020
Tata Consumer Products (Formerly known as Tata Global Beverages Limited) Investor Update - February 2020
Slide 3: 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 4: Creation of TATA Consumer Products
Creation of TATA Consumer Products
Slide 5: Transaction Overview
Transaction Overview TCL FY19 Rev.: INR 11,296 cr CHEM ICALS CONSUM ER PRODUCTS BUSINESS CPB Revenue 16% (INRcr) 7,252 1,847 EBITDA (INRcr) 838 316 Other India Reach Business (#households) 110 mn 140 mn 84% TGBL FY19 Rev.: INR 7,252 cr TCPL FY19 Rev.: INR 9,099 cr Others Categories Others (1) 12% 12
Slide 6: Deal Summary
Deal Summary ▪ Tata Chemicals (TCL) to de-merge its Consumer Products Business (CPB) as a going concern into TGBL in an-all equity Pre- Transaction ** transaction Shares O/S (cr) Holding (%) Proposed ▪ CPB to include all of its consumer businesses including salt, Promoters 21.7 34.5% Transaction spi
Slide 7: Creating India's Premier Diversified Consumer Company
Creating India’s Premier Diversified Consumer Company Branded Revenue by Geographies Creates a sizeable Consumer player with enhanced scale and financial strength Others ➢ Combined revenue of over INR 9,000 cr, EBITDA of over INR 1,150 cr Canada 5% 4% ➢ India to contribute >60% revenues of the com
Slide 8: Consolidated Revenue (Post Merger) by geography
Consolidated Revenue (Post Merger): FY2019 - 9099 INR Cr (Branded Business - 91%) CANADA Tetley, TataTea 60% EUROPE Tata Tea,Tata Salt Tetley, Teapigs, Vitax Tetley, Himalayan Tata Starbucks (50:50 JV), Fruski, TataCha, TataSampann 4% 19% 15% US AUSTRALIA Tetley, Tetley, Teapigs, Map Tata Tea, Good
Slide 9: Our Portfolio of Products
Our Portfolio of Products FOODS TEA LIQUID BEVERAGES COFFEE 8
Slide 10: 3rd Quarter Performance
3rd Quarter Performance
Slide 11: Agenda
Agenda 1 Executive Summary 2 Business Profile 3 Performance at a Glance 4 Business Performance 5 M&A Update 6 Quarterly Financial Performance 7 Recognition and Awards 8 Sustainability Initiatives 10
Slide 12: Executive Summary
Executive Summary Consolidated Revenue grew by 3% to INR 1,962Cr (Q3) and by 4% to INR 5,693Cr (YTD) with overall volume 1 growth of 5% in Q3 and 6% for YTD 2 Consolidated EBITDA grew by 23% to INR 248Cr (Q3) and by 14% to INR 753Cr (YTD) over the last year 3 Consolidated Net Profit is higher by 22%
Slide 13: Consolidated Revenue: Q3 and 9M
Consolidated Revenue: Q3 – 1,962 INR Cr | 9M – INR 5,693 Cr (Branded Business – 87%) CANADA 52% INDIA Tetley, EUROPE Tata Tea Tata Tea, Tetley Tetley, Teapigs, Jemca, Vitax Himalayan, Fruski, Tata Cha 4% 18% 23% US Tetley, Teapigs, Tata Tea, Good Earth Eight O’ Clock Non-Branded Business: Q3 – INR 2
Slide 14: Market Context
Market Context FMCG growth in India* Exchange rates 25% 80.0 USD/INR 100.0 GBP/INR 94.6 94.4 20% 75.0 74.0 72.5 95.0 16.2% 15.7% 15% 13.4% 71.7 92.6 10.6% 70.0 90.0 91.9 10.0% 70.9 70.9 10% 69.6 7.3% 88.8 6.6% 65.0 85.0 87.3 5% 60.0 80.0 0% Oct. Nov. Dec. Oct. Nov. Dec. Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY
Slide 15: Market Context
Market Context 2 years CAGR Commodity Costs# Category Growth Trends (Quarter)* 200 Rs/kg 200 $c/lb India 146 149 145 US UK Canada 150 -0.1% 150 126 5% 5% 100 111 113 109 92 94 +1% 100 -5% 50 0 50 1% Q3 FY18 Q3 FY19 Q3 FY20 Q3 FY18 Q3 FY19 Q3 FY20 North India Tea South India Tea Arabica Coffee 400 25
Slide 16: Performance at a Glance (Q3)
Performance at a Glance (Q3) In INR Cr INDIA US Coffee Other International Tata Coffee CONSOLIDATED (TGBL Standalone) (UK, Canada and Others) Revenue 933 290 529 210 1962 Revenue Growth -3% -4% 3% [Underlying Growth] 6%* 25% [-2%] [-2%] [+4%] Branded Volume 7% -2% -1% 14% 5% Growth Key Brands Notes:
Slide 17: Business Performance
Business Performance QUARTER ENDED DECEMBER 2019 16
Slide 18: India
India GROWTH DRIVERS OTHER UPDATES • India branded tea sales grew 6% in Q3 and 7% for YTD • Tata Tea Premium kick-started its ‘Desh Ki Chai’ campaign +6% • led by both National and Regional brands Branded volumes grew by 7% in Q3 and 8% for YTD with the launch of multi-regional marketing across UP,
Slide 19: CPB Business of Tata Chemicals
CPB Business of TATA Chemicals* GROWTH DRIVERS FINANCIAL HIGHLIGHTS * • Salt Revenue grew by 10% in Q3 Q3 FY20 Change % 9M FY20 Change % +13% • Pulses and spices revenue grew by 22% in Q3 Revenue 531 13% 1,539 12% Revenue • Nutri-mixes grew steadily PBT 82 45% 233 6% Growth • Poha has had a steady p
Slide 20: UK
UK GROWTH DRIVERS OTHER UPDATES • Revenue almost flat, growth in Discounters partly • Tetley’s #NowWereTalking campaign has gained positive offset by decline in Grocery channel response on TV, Social media and Digital media platforms • Tetley Black tea 12week and 4 week shares grows • Focus is on ma
Slide 21: USA
USA GROWTH DRIVERS OTHER UPDATES • EOC K-cups and Private labels Coffee segments volumes • Masterbrand Tetley ‘Now We’re Talking’ campaign has grew in Q3, along with some decline in Bags coffee segment. now been extended to USA. It has received very strong However, on a YTD basis, Overall Coffee Vol
Slide 22: Canada
Canada GROWTH DRIVERS OTHER UPDATES • Revenue is up by +5% driven by higher black tea sales • 3 new flavors launched in the Supers range Matcha, Antiox and +5% • Super teas continue to grow and has achieved 3.2% Boost Revenue Market share of Specialty tea category • Integrated marketing campaign for
Slide 23: Tata Coffee (inc Vietnam)
Tata Coffee* (inc Vietnam) GROWTH DRIVERS OTHER UPDATES • • 210Cr Topline grew by 25% driven by Vietnam sales, partly offset by lower TCL performance Profitability improved mainly due to higher volumes and one time credit partly offset by lower realisation Revenue • Instant Coffee [IC] volumes at 20
Slide 24: JV - Tata Starbucks
JV- Tata Starbucks GROWTH DRIVERS OTHER UPDATES • 28 new stores opened this quarter. • Barista Pride campaign re-introduced. A unique campaign where • New city added- Vadodra. 174 stores across India serve a specially curated beverage 27% • Strong focus on social media and loyalty program continues
Slide 25: JV - NourishCo
JV - NourishCo GROWTH DRIVERS OTHER UPDATES • Himalayan grew in Q3, both in value and volume terms • TGP volume decline, mainly in the states of Odisha -4%* • Himalayan continues to leverage its partnership with Conde and AP, impacted by adverse weather. Volume Nast to build connect with the F&B wor
Slide 26: Marketing Campaigns/Initiatives
Marketing Campaigns/Initiatives Tata Tea Premium Delhi Campaign: • An interesting route to evoke Dilli's regional pride by wrapping the Delhi metro, with visuals of its rich heritage. The restage is backed by a complete pack change. • In Digital, a film on ‘Dili Wali Wedding’ has also been aired on
Slide 27: M&A Update
M&A Update Tata Chemicals Limited - Consumer Products Business • The scheme for acquiring the Consumer Products Business of Tata Chemicals Limited is on track. • The merger has been approved by the Hon’ble NCLT, Kolkata Bench and Mumbai Bench. • Merger consummated in record time, 7th Feb being the e
Slide 28: Management Updates
Management Updates Appointment of Mr. Sunil Alaric D’Souza as MD and CEO (w.e.f. 4-Apr-20) Mr. Sunil Alaric D’Souza has been appointed as Managing Director and CEO of TGBL with effect from 4th April 2020. Sunil has 25+ years of rich experience in the consumer goods industry, and in-depth understandi
Slide 29: Financial Performance
Financial Performance QUARTER ENDED DECEMBER 2019 28
Slide 30: Highlights - For the Quarter ending Dec 19
Highlights – For the Quarter ending Dec 19 In INR Cr STANDALONE CONSOLIDATED REVENUE: Group Revenue grew by 3% (4% in constant currency terms) India Branded Business grows (Vol +7%; Value +3% +6%) REVENUE FROM +5% 933 1,962 OPERATIONS 890 1,913 Tata Coffee incl. Vietnam +25% – higher volumes and com
Slide 31: Highlights - For nine months ending Dec 19
Highlights – For nine months ending Dec 19 In INR Cr STANDALONE CONSOLIDATED REVENUE: Group Revenue grew by 4% 5,693 India Business grows (Vol +8%; Value +7%) 5,476 +4% Tata Coffee incl. Vietnam - higher volumes and REVENUE FROM 5476 5693 commencement of Vietnam sales +6% OPERATIONS 2815 2646 Intern
Slide 32: Financials: Standalone
Financials: Standalone Quarter Ended December PARTICULARS YTD December Full year Q3FY20 Q3FY19 Change% Q2FY20 INR Cr 9MFY20 9MFY19 Change% FY19 933 890 5% 914 Revenue from operations 2,815 2,646 6% 3,430 128 114 12% 125 EBITDA 401 404 (1%) 464 13.7% 12.8% 13.7% % 14.2% 15.3% 13.5% (1) 0 (2) Exceptio
Slide 33: Financials: Consolidated
Financials: Consolidated Quarter Ended December PARTICULARS YTD December Full year Q3FY20 Q3FY19 Change% Q2FY20 INR Cr 9M FY20 9M FY19 Change% FY19 1,962 1,913 3% 1,834 Revenue from operations 5,693 5,476 4% 7,252 248 201 23% 237 EBITDA 753 661 14% 837 12.6% 10.5% 12.9% % 13.2% 12.1% 11.5% (1) - (1)
Slide 34: Segment-wise performance (For the Quarter)
Segment-wise performance (For the Quarter) PARTICULARS SEGMENT REVENUE SEGMENT RESULTS BRANDED BUSINESS REVENUE INR Cr Q3FY20 Q3FY19 Change% Q3FY20 Q3FY19 Change% 1% India Tea Branded Business 17% Europe Tea Tea 1,412 1,389 2% 175 168 4% 49% Other Markets-Tea Coffee 314 326 (4%) 63 44 44% 14% US Cof
Slide 35: Shareholding Pattern
Shareholding Pattern SHAREHOLDING PATTERN as on 31st Jan 2020 STOCK DATA BSE Ticker 500800 3.5% Promoter and NSE Ticker TATAGLOBAL Promoter Group 21.2% Market Capitalization (03-Feb-2020) INR 235 Bn. Foreign Institutional 34.5% Investos Number of Shares Outstanding 631.13 Mn. Insurance Companies/ Ba
Slide 36: Recognition and Awards
Recognition and Awards INFORMATION TECHNOLOGY WORKPLACE SUSTAINABILITY TGB won the “Cyber Risk Quantification Champion of Tata Starbucks received awarded as Top #100 Best Tata Coffee awarded ‘Best Indian Coffee’ at 4th the Year” by Data Security Council of India (DSCI) Companies for Women in India 2
Slide 37: Sustainability for Value Chain and Communities
Sustainability for Value Chain and Communities Tata Global Beverages aims to support development programs for 1 million people in its supply chain Trustea spreads sustainable agricultural practices to 500,000 workers UNICEF’s Improving Lives program to reach 250, 000 beneficiaries Project Jalodari t
Slide 38: Sustainability for Climate & Business
Sustainability for Climate & Business CLIMATE LEADERSHIP DECOUPLING EMISSIONS FROM GROWTH We are one of the 6 Carbon footprint companies in India decreased 30% in on CDP A- list 2010-19 RENEWABLE ENERGY CARBON NEUTRAL 12% of the energy Himalayan for USA in production is certified Carbon from solar p
Slide 39: For More Information
For More Information www.tataconsumer.com w https://twitter.com/TataConsumer Contact Us: https://www.linkedin.com/company/tata-consumer-products/ Rakesh R Sony rakesh.r.sony@tataconsumer.com +91-22-6121 8465 Abhishek Musahib abhishek.musahib@tataconsumer.com +91-22-6121 8452 Tanya Dere tanya.dere@ta