Slide 1: Cover letter to stock exchanges
A ITC Limited Virginia House 37 J. L. Nehru Road Kolkata 700 071, India Tel. : 91 3322889371 Enduring Value Fax: 91 3322884016/ 1256/2259/2260 6th November, 2020 The Manager The General Manager The Secretary Listing Department Dept. of Corporate Services The Calcutta Stock National Stock Exchange of
Slide 2: Copy distribution list
Enduring Value cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A. cc: Societe de la Bourse de Luxembourg 35A Boulevard Joseph II L-1840 Luxembourg
Slide 3: Media Statement: Standalone Results Q2 FY21 Highlights
~i J~i~i~~hru Road '11.'~ {61 ~ Kolkala 700071, India Tel.: 91-33-22889371 Enduring Value Fax: 91-33-22880655 Media Statement November 06,2020 Standalone Financial Results for the Quarter ended 30th September, 2020 Highlights • Strong sequential recovery across all operating segments including Cigar
Slide 4: FMCG - Others
Progressive normalization was witnessed across all operating segments with increased mobility and recovery in economic activity. The Company continues to closely monitor the situation and respond with agility to strengthen its market standing while sharply focusing on cost reduction measures. The sa
Slide 5: FMCG segment performance and digital leverage
of rural markets in certain states that witnessed reverse migration due to the pandemic, led to strong growth in rural sales. As demand levels fluctuated significantly during the various phases of lockdown and unlock, associated risks and uncertainties were managed with agility leveraging shorter op
Slide 6: FMCG product highlights
Savlon Germ protection Wipes, Savlon Hexa Hand Sanitizer, Savlon Hexa Advanced Bodywash, etc. Liquids portfolio comprising Handwash & Bodywash continued to grow rapidly. Fragrances category witnessed progressive recovery as demand for 'on-the-go' consumption products picked up; however, still below
Slide 7: Cigarettes and Paperboards, Paper & Packaging
Localised lockdowns in several regions and restricted hours of convenience store operations impacted the recovery momentum witnessed towards the end of the last quarter. Certain markets in the South, metros and large towns were relatively more impacted due to disruption in sales operations. Temporar
Slide 8: Paperboards and Packaging performance
Consumer offtake in pharma, home care, packaged foods, personal care recovered to pre- Covid levels while wedding cards, publication, notebooks remain subdued. Exports recorded strong growth. Maintained Segment margins at last year levels despite volume and pricing pressure through product mix enric
Slide 9: ITC global exemplar in sustainability
ITe is a global exemplar in sustainability, the key highlights of which are given below: e The only Company in the world to be: The Board of Directors, at its meeting in Kolkata on 6th November, 2020, approved the financial results for the quarter ended 30th September, 2020, which are enclosed. Prod
Slide 10: Q2 FY 2020/21 Results
Q2 FY 2020/21 Results 6th November, 2020 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 state
Slide 11: Daily Covid cases and Industry recovery
Daily Covid cases rose sharply in Aug & Second Wave in Europe & USA Sep’20; sharp fall in Oct’20 India : New Cases – Moving 7‐day Average (‘000s) Global : New Cases – Moving 7‐day Average (‘000s) 100 17 Sep’20 160 90 Daily New Cases – 97,894 140 80 7 Day Average – 93,199 120 70 100 60 80 50 60 40 40
Slide 12: Aggregate Demand below pre-Covid levels; Agri resilient
Aggregate Demand remains significantly below pre‐Covid Levels Supply side relatively better Aggregate Demand Aggregate Supply 99.6 93.4 91.7 79.6 84.5 76.8 82.1 81.1 86.8 85.6 67.8 70.5 71.8 56.6 50.6 43.1 47.3 20.0 Nomura estimates Aggregate Demand at 77% and Aggregate Supply at 92% of pre‐COVID le
Slide 13: GDP estimates and ITC's Strategic Responses to Covid-19
Downward revisions to FY21 GDP estimates FY21 GDP Forecast in Mar'20 in Jul'20 post Aug'20 Citi SBI Research Bank of America ICRA ‐3.5 ‐4.0 ‐5.0 ‐5.0 ‐6.0 ‐6.8 ‐7.5 ‐8.0 ‐9.5 ‐10.9 ‐11.0 FY21 GDP de‐growth estimated at ~10% 7 Agile in Adversity ITC’s Strategic Responses ‐ Covid 19 Compassionate in C
Slide 14: Contributing to the Fight Against Covid; Q2 FY21 Results
Contributing to the Fight Against Covid Contribution to Covid Relief Food Products to the needy Saluting Frontline Warriors 215 Cr. Contingency fund set up; over 80% deployed https://www.itcportal.com/about‐itc/shareholder‐value/pdf/lodr26062020‐d.pdf 9 Q2 FY21 Results Headline Financials & Business
Slide 15: Key Highlights: Q2 FY21
Key Highlights: Q2 FY21 Strong Sequential recovery across segments; localised lockdowns weighed on recovery momentum ‒ Gross Revenue & PBT up 26% & 37% sequentially ‒ Gross Revenue up 1.2% & PBT down 11% y‐o‐y FMCG‐Others Segment delivers strong growth ‒ Highest ever quarterly sales for all FMCG
Slide 16: FMCG Others Q2 FY21: FMCG Industry Trends
FMCG Others Q2 FY21 FMCG Industry Trends Essential products & ‘at‐home’ consumption witnessed moderation; remain at elevated levels Strong traction continued for Hygiene products Discretionary and Out‐of‐Home consumption categories witness recovery ‒ Snacks regain traction with increased mobil
Slide 17: FMCG industry trends and segment revenue growth
Rural > Urban FMCG industry trends Traditional Trade > Modern Trade Base Period=100 Lockdown 3 & 4 Unlock 1.0 Unlock 2.0 Unlock 3.0 Unlock 4.0 Dec + Jan + Feb 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Overall FMCG Value Index 100 75 98 106 94 100 117 108 109 104 100 Market Index 100 84 100 92 95 95 92 8
Slide 18: Sustained improvement in Profitability; 70+ new launches
FMCG‐Others Segment EBITDA margin up 300 bps Sustained improvement in Profitability Robust Purposeful Brand 9.7% Innovation Portfolio 6.7% 5.0% Levers of 3.2% Margin 2.4% Power Expansion Operating Of Leverage Digital 65 90 159 221 366 FY17 FY18 FY19 FY20 FY21 Q2 Supply Chain Segment EBITDA (Rs. cr.)
Slide 19: 70+ New launches in H1
70+ New launches in H1 (2) Insight + Innovation >> Impact Mangaldeep ITC Master Chef Aashirvaad God Series Agarbatti, Treya Cones & Cooking Pastes Marigold Dhoop Organic Atta & Dals Aashirvaad Farmland On‐the‐Go Range Frozen Vegetables Sunfeast Caker 19 70+ New launches in H1 (3) Insight + Innovatio
Slide 20: Cutting Edge Digital Campaigns, Deepening Consumer Engagement
Cutting Edge Digital Campaigns Deepening Consumer Engagement Purpose led brand campaigns #AbSamjhautaNahin Global Handwashing Day # No Hand Unwashed Savlon Mask Hai Mazak Nahi Gender Inequality Festival Activations Leveraging IPL Building Brand Advocacy Nim Wash – Michelin chef Engaging Influencer
Slide 21: FMCG Cigarettes
FMCG Cigarettes Net Revenue up 33% vs. Q1; y‐o‐y decline of 14.4% Segment Revenue ₋ Localised lockdowns in July & Aug’20 impacted recovery momentum ₋ South, Metros and large town markets relatively more impacted 5121 cr. 3.9 % ₋ Temporary disruption in certain wholesale markets impacted sales ₋ Ea
Slide 22: Hotels Business Q2 FY21
Smuggled Cigarettes remain widely available, FMCG Cigarettes despite deterrent actions by authorities 25 Hotels Business Q2 FY21 ITC Royal Bengal
Slide 23: Hotels: marginal sequential recovery
Marginal sequential recovery; leisure locations gain traction Hotels Aggressive cost reduction Severe impact on Business a/c restrictions on Travel & Tourism ̶ Segment Revenue at 82 cr. down 81% Vs. LY ̶ Leisure locations witness strong demand pick up ̶ New F&B initiatives receive excellent respon
Slide 24: Agri Business Q2 FY21
Excellent response to new F&B Initiatives Hotels Digital interventions ensure continued Guest Connect Launch of Takeaway/Delivery menu 29 Food for thought series Well Being Master Series 29 29 Agri Business Q2 FY21
Slide 25: Agri Business: resilient performance
Resilient performance Agri Business Continued Value Addition to Foods Businesses Segment Revenue • Revenue growth driven by trading opportunities in Rice, Mustard, Coffee & 2985 cr. Wheat for Aashirvaad Atta 12.8 % • Value Added business up 25% (Ex. Aqua) Segment Results Strong performance in Froz
Slide 26: Paperboards, Paper & Packaging
Paperboards, Paper & Continued robust performance in Exports Packaging Sharp sequential recovery in Domestic market • Segment Revenue Robust growth in Exports partly offset by subdued demand in Domestic market • Strong recovery in Liquor, Tobacco, Cup‐Stock, Décor & Personal Care segments 1,459 cr.
Slide 27: Key Financials: Q2 FY21
Key Financials: Q2 FY21 ` cr. Q1 CY GOLY Q2 CY Q2 LY GOLY 9,436 ‐16.9% Gross Revenue 11,892 11,750 1.2% 8,875 ‐20.5% Net Revenue 11,150 11,542 ‐3.4% 2,647 ‐42.0% EBITDA 4,061 4,562 ‐11.0% 3,128 ‐35.0% PBT 4,274 4,808 ‐11.1% 2,343 ‐26.2% PAT 3,232 4,023 ‐19.7% • Strong Sequential recovery across segm
Slide 28: Segment Results Q2 FY21
Segment Results Q2 FY21 (Rs. cr.) Q1 Q2 2020‐21 2020‐21 2019‐20 GOLY% Segment Results • FMCG Others: Segment EBITDA up 66% to 366 cr. (+300 2356 a) FMCG ‐ Cigarettes 3245 3844 (15.6) bps) 125 ‐ Others 253 90 179.3 ‐ Enhanced scale and operating efficiencies despite 2482 Total FMCG 3497 3935 (11.1) g
Slide 29: Segment Results growth
Segment Results Cigarettes FMCG Others Hotels Agri Paper Q2 FY20/Q2 FY21 Growth Vs. # SPLY ‐16% 1.8x 17/‐185 3% ‐7% Q1 FY21/Q2 FY21 Growth Vs. Q1 FY21 38% 100%+ ‐243/‐185# 43% 1.1x # Represents absolute profit / loss (Rs. Cr.) in the corresponding periods 39 ITC – A Global Exemplar Impactful Social
Slide 30: ITC: Creating Enduring Value
Top ESG ratings by Sustainalytics & MSCI ^ ITC Rated AA by MSCI‐ESG Highest amongst Global Tobacco cos. & ahead of FMCG peers ^ 41 ITC: Creating Enduring Value A passion for profitable growth…. …..in a way that is sustainable……. …. and inclusive 42
Slide 31: Thank You
Links Product/initiative Link ‘Yippee!’ Noodles https://youtu.be/0zk6Hke_uVY Disinfectant Spray https://www.youtube.com/watch?v=6Wpa2nLiYdk Mangaldeep Temple Fragrance of God range https://youtu.be/3E7Ccy13WXY https://www.youtube.com/watch?v=I‐ Candyman Fantastik iYYyg7hgI&feature=emb_rel_end Bingo!