Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — FY2009/10 Earnings Presentation
41 slides from Tata Consumer Products's earnings presentation, 2010
Slide 1: Analyst Meet 2009/2010 Performance
Analyst Meet 2009/2010 Performance Peter Unsworth
Slide 2: Performance
Performance Strong financial performance in a challenging environment; Group integrated and transformed Group operating income up 19% at Rs 5821 crores Group PBT before exceptional up 19% at Rs 625 crores
Slide 3: Some Big Wins This Year
Some Big Wins This Year • Tata Tea value share at - 21.6% achieves value market leadership in India • Eight O’Clock coffee performs strongly; value share up to 4.7% • Growth in Poland following Premium Foods acquisition - No 1 in Earl Grey with 19% value market share • Launch of Tetley in the Middle
Slide 4: 2009/2010 Key Highlights
2009/2010 Key Highlights Growth in distribution + Strength of brands + An excellent sourcing strategy = Strong performance in the face of difficult economic conditions and unprecedented increases in raw commodity prices
Slide 5: 2010 Key Results – Total Income
2010 Key Results – Total Income +19.4% +12.4% Rs Crores 5821 4874 4336
Slide 6: Branded Sales Trend
Branded Sales Trend Region wise sales 1,800 1,600 24% 1400 -115% 9% 4,200 6 1,000 ~ 800 « 91% oe 200 be © 0 O 03 s x) ZS 8S £2 ey 38 $8 a oO < os as cs O & 5 Regions 62009 2010 TATA GLOBAL BEVERAGES ets GD tisiaien me
Slide 7: 2010 Key Results - Gross Profit
2010 Key Results - Gross Profit 52% 43% 43%
Slide 8: 2010 Key Results - EBITDA
2010 Key Results - EBITDA 12% 12% 11% Rs Crores 710 722 646
Slide 9: Commodity Price and Exchange Pressure: Tea prices
Commodity Price and Exchange Pressure Tea prices Mombasa Average Monthly Auction Hammer Prices 2006-2010 Price (US Cents) 2007 2008 2009 2010
Slide 10: Commodity Price and Exchange Pressure: Coffee prices
Commodity Price and Exchange Pressure Coffee prices 2009 2010
Slide 11: Commodity Price and Exchange Pressure: GBP to USD
Commodity Price and Exchange Pressure GBP to USD Movement US Dollars 2008 2009 2010
Slide 12: Strong Balance Sheet and Cash Flow
Strong Balance Sheet and Cash Flow Net Cash Rs Crores 653 706 504
Slide 13: Our sources of growth – Strong Brands
Our sources of growth – Strong Brands Brandwise Sales Breakup YTD MAR 2010 29% 40% 1% 9% 2% 18% 1% Tetley Good Earth Eight O'Clock Others Vitax Jemca Indian Tea Brands
Slide 14: Brand Investment Continues
Brand Investment Continues Good Earth Tea Advert in the UK
Slide 15: Brand Investment Continues
Brand Investment Continues Jaago Re TV advert
Slide 16: Sources of Growth – Innovation
Sources of Growth – Innovation • Green tea based jelly drink concept developed • SUKK brand is ready for UK city-test launch • ‘Fills You UP between meals’ is the brand proposition • Two initial flavours • Significant marketing programme designed for a young target audience across the summer 2010
Slide 17: Sources of Growth – Innovation
Sources of Growth – Innovation • Liquid concentrates launched in Canada at the start of 2009 • Initial performance projections were achieved • Range has been extended to 2010 • Planning underway to extend infusions into other geographic markets and across a wider range of products and brands
Slide 18: Sources of Growth – Innovation Products
Sources of Growth – Innovation Products • Tetley Tea4Kidz has been launched in the UK through major supermarket - with a great Redbush/Honeybush product and a very innovative consumer support plan targeting schools
Slide 19: Sources of Growth – New Routes to Market
Sources of Growth – New Routes to Market • Tetley launched into Middle East • Entry into Russian market with Grand • Expansion of Joekels in South Africa
Slide 20: Sources of Growth – New Routes to Market
Sources of Growth – New Routes to Market • US grows in Mass and Club • Tata Tea grows liquid distribution for T!on and Himalayan
Slide 21: Regional Performance – South Asia
Regional Performance – South Asia • Achievements – Leading price activity in the market – Tata Tea Gold 12% growth in value packs and successful rebranding – New phase of Jaago Re campaign ‘social awakening’ – Restaged the flavoured tea bags with a new flavour – Tulsi & Lemon – T!on obtains 5% value
Slide 22: Regional Performance – US
Regional Performance – US • Achievements – Robust consumer reports continue to drive strong EOC performance – EOC continues to embrace social media to penetrate the market – Region consolidated EOC, Tetley, Good Earth Tea and Empirical Group to single entity
Slide 23: Regional Performance – UK and Africa
Regional Performance – UK and Africa • Achievements – Successfully led market price up – Tetley Redbush now No 1. with 29% value market share* – Tetley Green tea range has 30.5% market share – Two new innovative products launched: • Tetley On-the-Go • Tetley Tea4Kidz *source: AC Neilsen
Slide 24: Regional Performance – Canada and South America
Regional Performance – Canada and South America • Achievements – Successfully led market price up (Competitors did not move) – Tetley voted No 1. by Canadian families – Packaging changes and new varieties helps to grow herbal tea category – Tetley Red hits 63% market share – ‘Alice in Wonderland’ pa
Slide 25: Regional Performance – Europe and Middle East
Regional Performance – Europe and Middle East • Achievements – Grand acquisition more than doubles size of the Region – Grand currently holds 4% market share in coffee and 3% in tea market – Tetley in Poland regained No 1 brand leadership in Earl Grey with 19% value share* – Jemca VIVA range launche
Slide 26: Operational Efficiency Improves
Operational Efficiency Improves • New blend optimisation model for all non India factories introduced saving $1.1m per annum • Full integration of UK and Indian tea buying and blending teams • Private Buying in India increased by 29% • Consolidated global procurement and process improvements • UK fa
Slide 27: Sustainability and Social Responsibility
Sustainability and Social Responsibility • Four core issues identified for the group: – Ethical Sourcing - Rainforest Alliance certification for the Tetley brand by 2016 – Climate Change – appointment of CarbonNeutral Company – Packaging – ‘zero to landfill by 2015’ goal – Water • Community Investme
Slide 28: Going Forward in 2010/2011
Going Forward in 2010/2011 Grow in core tea markets Build scale in US and Russia Disruptive innovation in beverages Expand across beverage categories in India Leverage scale and operations capability to improve efficiency Accelerate culture change
Slide 29: In Summary
In Summary Strong performance steered by Strong brands New sources of growth through innovation and New routes to market
Slide 30: Twelve Months Ended March 2009/10 Financial Results
Twelve Months Ended March 2009/10 Financial Results
Slide 31: Financial Review
a Financial Review TATA GLOBAL BEVERAGES
Slide 32: Group Financial Review – YTD
Group Financial Review – YTD • Strong performance despite commodity cost increases and investment behind brands. • Strong performance by EOC Coffee. • Impact of Russian acquisition • Increase in input costs largely recovered through price increases. • Benefits in interest due to reduction in interes
Slide 33: Group Financial Review – YTD
Group Financial Review – YTD • Group operating income up by 19% for the year- attributable to volume increases, strong performance by US coffee, price increases, favorable currency coupled with improvement due to Russia acquisition. • Group PBT before exceptional items up by 19% for the year – impro
Slide 34: Group Financial Review – YTD
Group Financial Review – YTD • Group PBT lower than previous year on account of one off items. • One of items in current year includes sale of Rallis shares (Rs 186 crores) offset by Reversal of prior year gains Rs 102 crores, Restructuring costs Rs 20 crores, Acturial Provisions in UK Rs 40 crores
Slide 35: Performance for the year 2009-10
Performance for the year 2009-10
Slide 36: Category Sales Composition
Category Sales Composition • Higher Coffee sales - attributable to US and Russia
Slide 37: Region wise Total Income
Region wise Total Income Rs Crores 37
Slide 38: Significant Increase in Dividend Payout
Significant Increase in Dividend Payout
Slide 39: Performance over Time
Performance over Time 2007-08 2008-09 2009-10
Slide 40: Consolidated Balance Sheet
Consolidated Balance Sheet Rs in Crores
Slide 41: Thank You
a Thank You TATA GLOBAL BEVERAGES
Tata Global Beverages — FY2009/10 Earnings Presentation on 6ix