Slide 1: Q2 FY22 Results
Q2 FY22 Results 27th October, 2021
Slide 2: 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 3: Second Wave impact recedes; Progressive Recovery in economic activity
Second Wave impact recedes Progressive Recovery in economic activity Sharp Reduction in case count, accelerated vaccination Improved mobility improves Business environment India: New Cases – Moving 7-day Average (‘000) 450 Google Mobility Index 400 7 May’21 350 4,14,188 300 3,89,803 250 200 150 17 S
Slide 4: Consumer Confidence Improves
Consumer Confidence Improves Uptick in Sentiments in Q2 Current Situation Index remains in contraction zone India Services PMI ( > 50 denotes expansion) Manufacturing PMI ( > 50 denotes expansion) 58.9 57.5 57.5 56.7 56.8 56.4 55.5 55.3 54.1 55.3 54.0 54.5 53.7 49.3 52.3 49.8 46.4 45.4 51.8 50.8 55.
Slide 5: Pickup in External Trade, Increased Capital Flows, GST collections
Pickup in External Trade Increased Capital Flows GST collections remain robust Merchandise Export / Import ($ bn) Net FPI and FDI ($ bn) Trade Deficit Export Import 19 Net FPI FDI 56 48 12 35 33 8 31 17 28 4 10 -7 -3 -14 -9 -16 -16 -23 Source : RBI Source : RBI, CDSL GST Collections (Rs lakh cr.) Re
Slide 6: Core inflation remains sticky; Crude Oil prices surge
Core inflation remains sticky Crude Oil prices surge past USD 85/barrel – 3 year high Headline CPI (y-o-y%) Core CPI (y-o-y%) Source: MOSPI Source: MOSPI CPI – Fuel & Light (y-o-y%) Diesel (Rs /Litre) Source: MOSPI Source: CMIE 6
Slide 7: Slowdown in Global Recovery Momentum
Slowdown in Global Recovery Momentum Resurgent Demand + Rising Commodity/Energy Prices + Supply Disruptions Surge in Inflation Source: IMF World Economic Outlook (WEO), Oct’21 Source: IMF World Economic Outlook (WEO), Oct’21 Freight Rates in key routes vs. LY Source: RBI Bulletin Oct’21 7
Slide 8: Q2 FY22 Results Headline Financials & Business Highlights
Q2 FY22 Results Headline Financials & Business Highlights 8
Slide 9: Key Highlights: Q2 FY22
Key Highlights: Q2 FY22 Gross Revenue up 11.1% y-o-y PAT up 13.7% y-o-y ▪ Strong pick-up across all operating segments after severe disruptions in Q1 ̶ Sequentially, Revenue (ex. Agri) up 12%; EBITDA up 16% ▪ FMCG delivers resilient performance growing on a high base quarter; Revenue up 23% vs. Q2 F
Slide 10: Key Highlights: Q2 FY22
Key Highlights: Q2 FY22 ▪ Marked improvement in Occupancy (3x of Q2 LY) drives faster recovery in Hotels ̶ Leisure destinations continue to perform well while Business travel gathers momentum ̶ Q2 turns EBITDA positive (+134 cr. swing vs. Q2 FY21) ▪ Paperboards, Paper & Packaging Segment delivers st
Slide 11: FMCG Others
Grin sa Ae AASHIRVAAD WEA 7 VAX GET YOUR MASKS ON, ot jeal he pecche man be pyons hai SAY YiPPec! TO SAFETY As dil be cage sobs hear hue Enduring Value FMCG Others
Slide 12: FMCG Others: Resilient Performance on a High Base
Resilient Performance on a High Base FMCG Others Segment Revenue up 23% over Q2 FY20 ▪ Resilient performance growing on a high base quarter which witnessed exceptional surge in sales (Q2FY21 up by 19%) ꟷ Sequential Revenue up 8% ꟷ Sharp recovery in Discretionary/OOH portfolio (Snacks, Confectionery
Slide 13: Segment EBITDA up 82% over Q2 FY20
Segment EBITDA up 82% over Q2 FY20 FMCG Others Q2 FY22 Margin Sustained @ 10% ▪ Unprecedented inflationary headwinds in key input commodities Robust Purposeful Brand ▪ Q2 Segment EBITDA margins sustained at 10.0% Innovation Portfolio ꟷ Inflation impact largely offset through focused cost management
Slide 14: FMCG Others Unprecedented Rise in Commodity Prices
FMCG Others Unprecedented Rise in Commodity Prices Kraft Paper Metallocene 142 1800 48 139 1700 150 143 46 1600 44 1500 42 130 1400 138 40 1300 38 1200 36 100 100 34 1100 1000 32 Oct-20 Dec-20 Jan-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Sep-21 Oct-20 Dec-20 Jan-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Se
Slide 15: Cutting-edge R&D capability: LSTC
Cutting-edge R&D capability Fuelling Growth through Innovation ITC 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 Ana
Slide 16: Purposeful Innovation
Purposeful Innovation Leveraging Science-based R&D Platforms @ ITC LSTC Health & Hygiene Indulgence Aashirvaad B Natural / Sunfeast Savlon Dark Fantasy Sunfeast Bounce Sunfeast Vermicelli Nutrilite Health Range Handwash Powder Vanilla Fills Fruit Fills All Rounder Nimeasy Spray; Nimyle Savlon Moistu
Slide 17: Purposeful Innovation
Purposeful Innovation Leveraging Science-based R&D Platforms @ ITC LSTC Convenience Range Expansion Mangaldeep Mangaldeep Savlon Premium - Lo Smoke Royal Popular – Upaveda Range Engage ON Nimyle Handwash Rose, Mystic Jasmine Camphor Tulsi, Panchamrit Chota Pocket Perfume Sachet Pichkiao Savlon Fiama
Slide 18: Deepening Consumer Connect
Deepening Consumer Connect Augmenting Multi-Channel Distribution Impactful Communication Sharpening Value Proposition On-the-Go Direct Marketing QSR 18
Slide 19: Purpose Led Brands
Purpose Led Brands Sustainable Products Focused Brand Campaigns Reduced Plastic Using Recycled Material Plastic Free #RespectWorkForHome #BruisesAreMedals #NoMoreMissedCalls Made with Temple Flowers Rural Women Engagement Lo Smoke Agarbatti #FeelGoodWithFiama Building Devotional Connect 19
Slide 20: Digital @ Consumer
Digital @ Consumer Deepening Consumer Connect Celebrity endorsements and influencers #HarRecipeKaPehlaStep Nimyle Nimwash: Chef Kunal Kapur Aiyyoshraddha ITC Connect: A platform to engage with consumers in Digital World (www.itc-connect.com) Interactive Cooking Get “Pujo Ready” with Vivel Bodywash:
Slide 21: High Intensity Activations and Strong Brand Associations
High Intensity Activations and Strong Brand Associations Multi-Pronged Initiatives Bundled Offers on ITC e-store Persuasive communication Regional initiatives Onam, Independence Day, Savlon Savlon school Collaboration with connect Durga Puja Activations Manorama Weekly High impact visibility drives
Slide 22: FMCG Others Strategy Pillars
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 22
Slide 23: 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. 23
Slide 24: Distributed Manufacturing & Agile Supply Chain
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 25: Power Of Digital
Power Of Digital SMART | AGILE | RESPONSIVE 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 & Insights & Feedback POS AI driven customised consumer offer
Slide 26: FMCG Cigarettes Robust Recovery
FMCG Cigarettes Robust Recovery – Exit volumes Near Pre-Covid Levels ▪ Q2 Segment Net Revenue* and Segment Results up 10.3% and 10.4% y-o-y respectively; Segment EBIT Margins up 10 bps Segment Revenue ▪ Progressive normalisation of convenience store operations across markets 5642 cr. 10.2% ̶ Faster
Slide 27: FMCG Cigarettes Recent Portfolio Interventions
FMCG Cigarettes Recent Portfolio Interventions Innovation 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 • Gold Flake S
Slide 28: Hotels Business
Hotels Business ITC Grand Goa Resort & Spa
Slide 29: Hotels: Smart Sequential Recovery
Smart Sequential Recovery Hotels Revenue Back to Q4 FY21 Levels Rs. cr. ▪ Sharp growth in revenue driven by domestic leisure travel & Staycations; Segment Revenue Business travel continues to gather momentum ̶ Strong recovery in Occupancy levels Q2 FY22: 295 (+2.6x vs. LY) ̶ ARR and RevPar improve s
Slide 30: Demand Creation Through Curated Offerings
Demand Creation Through Curated Offerings Culinary Tourism Accommodation Packages with Flexible Dining Benefits Revamped F&B Offerings 30 30
Slide 31: New Welcomhotel Properties Launched
2 New Welcomhotel Properties Launched Healthy pipeline of management contracts Welcomhotel Bhubaneswar Welcomhotel Katra A visual ode to architectural traditions and eventful history Located at the foothills of Mata Vaishno Devi temple; offers of the Golden Triangle of the East a perfect balance of
Slide 32: Executing 'Asset-Right' Strategy; New Brands Launched
Executing ‘Asset-Right’ Strategy 2 New Brands Launched Mementos Storii Collection of unique luxury hotels across varied destinations Collection of intimate sized handpicked properties in the ranging from modern retreats to historic treasures premium segment 32
Slide 33: Hotels Business Strategy Pillars
Hotels Business Strategy Pillars Loyalty Programs: Maximise enrollments and drive engagement Gifting: Partnership, Engagement and Offers ASSET Takeaways: Enhanced AUGMENT REVENUE RIGHT visibility, offers, etc. STREAMS/ SWEAT STRATEGY ASSETS Structural interventions across all nodes EXTREME • Sustain
Slide 34: Agri Business
MM ENA Enduring Value Agri Business
Slide 35: Agri Business: Robust Growth in External Business
Robust Growth in External Business Agri Business Margin expansion driven by favorable business and customer mix ▪ Robust growth in external business ̶ Wheat, Rice, Leaf Tobacco, Aqua and Spices exports Segment Revenue ̶ Shortage in availability of containers/port congestions & inclement weather dela
Slide 36: 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 37: Agri Business: 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 38: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging
Slide 39: Paperboards, Paper & Packaging: Strong Revenue Growth
Paperboards, Paper & Strong Revenue Growth Packaging Paperboard Volumes at Record High Paperboards & Specialty Paper: ▪ Segment Revenue Robust growth aided by revival of demand across most end user segments − Publications, Quick Service Restaurants (QSR) and wedding card segments, remain relatively
Slide 40: Innovation: Developing Sustainable Solutions
Innovation Developing Sustainable solutions Bio-degradable Boards Recyclable Boards Exclusively for Deep freeze Replacing takeaway Exclusively for Food serving Food delivery/ paper cups applications plastic bowls paper cups applications deep freeze application Completely Biodegradable under Complete
Slide 41: Paperboards, Paper & Packaging Business Strategy Pillars
Paperboards, Paper & Packaging Business Strategy Pillars Scale Up Value Added product portfolio Proactive Capacity augmentation; New substrates One-stop Packaging Solutions Provider Leverage multi-platform capability to ensure world-class quality and speed-to-market at competitive cost Augment Renew
Slide 42: Financials
Financials 42
Slide 43: Headline Financials: Q2 FY22
Headline Financials: Q2 FY22 Q2 FY20 Rs. Crs. Q2 FY22 Q2 FY21 GOLY 11,750 Gross Revenue 13,356 12,019 11.1% 11,542 Net Revenue 12,543 11,278 11.2% 4,562 EBITDA 4,615 4,088 12.9% 4,808 PBT 4,880 4,301 13.5% 4,023 PAT 3,697 3,253 13.7% Other Comprehensive Income -43 151 162 (net of tax) 3,980 Total Co
Slide 44: Segment Revenue Q2 FY22
Segment Revenue Q2 FY22 • FMCG Others (Rs. cr.) - Segment Revenue up 23% Over Q2 FY20 Q2 - Sequential Revenue up 8% Y20 - Sharp recovery in Discretionary/OOH portfolio FY22 FY21 GOLY% - High base effect in Staples, Convenience Foods & Segment Revenue Hygiene Portfolio 7 a) FMCG - Cigarettes 5642 512
Slide 45: Segment Results: Robust growth across Segments
Segment Results Robust growth across Segments Q2 FY22 (Rs. cr.) Q2 FY20 • FMCG Others FY22 FY21 GOLY% - Segment EBITDA at 403 cr. (+2.2% YoY on a high Segment Results base) 44 a) FMCG - Cigarettes 3583 3245 10.4% • 1.8x of Q2 FY20 0 - Others 272 279 -2.7% - EBITDA margins sustained at 10% in spite o
Slide 46: Shaping the Future: Powered by Data & Digital
Shaping the Future Powered by Data & Digital ITC Royal Bengal
Slide 47: Digital @ ITC Strategic Impact Areas
Digital @ ITC Strategic Impact Areas Insights Supply Chain & Platform Manufacturing Consumer Employee Experience Digital-first Culture Engagement DigiNext / Young Digital Leaders Forum State-of-the-Art Digital Technologies, Infrastructure and Security 47
Slide 48: Integrated Real Time Operations Execution Platform
Integrated Real Time Operations Execution Platform • Integrated & synchronized planning Next generation agile FMCG supply chain processes • Automated end-to-end processes • Flexible design • Advanced demand & forecasting models • Supply Chain Cockpit • Planning Control watch tower + Data Synchronise
Slide 49: Smart Consumer: Personalised Consumer Journey
Smart Consumer Personalised Consumer Journey across Touchpoints ITC SIXTH SENSE COMMAND CENTER MOMENT MARKETING • AI-powered hyper Contextual Communications & personalised platform Superior Consumer Impactful Brand Consumer Promotions Insights & Campaigns & 2000+ Content Assets created • Strong part
Slide 50: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability 50
Slide 51: 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 Sustainable Recent Global Change All Plastic Waste Value Chains Livelihoods Recognitions 41.3% Energy from Renewables Rainwater Harvesting (RWH)
Slide 52: Impactful Social Performance
Impactful Social Performance ITC e-Choupal Afforestation Watershed Development Livestock Development Solid Waste Management Over 900,000 acres Over 12,75,000 acres Well-being Out of Waste 4 Million Farmers Over 19,72,000 milch programme covers empowered greened covered animals covered 15 million cit
Slide 53: 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 Sustainable Supporting Sustainable Energy (RE) Consumption* Emissions* Packaging Plan Livelihoods 50% 30% 50% 100% 10 million RE Energy Recyclable Plastic From 6 million Packaging
Slide 54: ITC's Sustainability 2.0 Framework
ITC’s Sustainability 2.0 Framework Foundation Management Management of Key Sustainability/ESG Issues Reporting & System Communication Materiality Climate Water Sustainable Stakeholder Engagement Risks & Opportunities ITC’s Guidelines, Change Security Packaging ESG Ratings: Sustainability Standards &
Slide 55: ITC Infotech
ITC Infotech 55
Slide 56: ITC Infotech Robust Revenue Growth & Margin Expansion
ITC Infotech Robust Revenue Growth & Margin Expansion Revenue Revenue EBITDA PAT EBITDA EBITDA Margin% PAT PAT PAT Margin% 2500 (Rs. cr.) (Rs. cr.) Rs. cr. 700 25.2% 30.0% 18.4% 2400 600 25.0% 500 20.0% 2300 450 500 20.0% 2200 400 12.9% 15.0% 400 350 9.3% 15.0% 2100 300 8.0% 10.0% 300 5.2% 10.0% 250
Slide 57: ITC Infotech High Growth Trajectory Sustained in H1 FY22
ITC Infotech High Growth Trajectory Sustained in H1 FY22 Rs. cr. Revenue EBITDA PBT PAT Goly: 23.6% Goly: 62.5% Goly: 66.6% Goly: 69.3% Margin% Margin% Margin% 45 0 28.2% 45 0 30 .0 % 28.3% 35 0 29 .0 % 21.2% 21.4% 15.5% 20 .0 % 40 0 21.0% 40 0 25 .0 % 407 30 0 409 24 .0 % 306 35 0 35 0 15 .0 % 20 .
Slide 58: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. 58
Slide 59: Thank You
Thank You 59
Slide 60: Links
Links Product/initiative Link Aashirvaad Vermicelli https://www.facebook.com/Aashirvaad/videos/589090418787992/ Aashirvaad Happy Tummy https://happytummy.aashirvaad.com Sunfeast Dark Fantasy https://m.youtube.com/watch?v=kWPWUGFpv88&feature=youtu.be Moms Magic #NoMoreMissedCallsFromMom https://www.y