Slide 1: Unaudited Financial Results – Media Statement and Presentation
ITC Limited Virginia House 37 J. L. Nehru Road Kolkata 700 071, India Tel. : 91 33 2288 9371 Fax : 91 33 2288 4016 / 1256 / 2259 / 2260 20th October, 2022 The Manager The General Manager The Secretary Listing Department Dept. of Corporate Services The Calcutta Stock National Stock Exchange of India
Slide 2: cc: Securities Exchange Commission
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 Financial Results Q2 FY23
ITC Limited Virginia House 37 J. L. Nehru Road Kolkata, 700 071, India Tel.: 91 33 2288 9371 Fax: 91 33 2288 4016 / 1256 / 2259 / 2260 Media Statement October 20, 2022 Standalone Financial Results for the Quarter ended 30th September, 2022 Highlights • Strong performance continues across segments -
Slide 4: Media statement: results and FMCG Others
Amidst such a challenging operating environment, the Company’s focus on accelerated digital adoption, customer centricity, execution excellence and agility enabled it to continue to deliver strong growth across operating segments during the quarter, both sequentially and on YoY basis. Gross Revenue
Slide 5: FMCG Others continued
- Product availability and accessibility continues to be augmented by leveraging new routes-to- market through multiple strategic partnerships covering a range of brands including ‘B Natural’, ‘Sunfeast’, ‘ITC Master Chef’, etc. • The ICML at Medak, Telangana, commissioned in March 2022 is being sca
Slide 6: FMCG Others and Cigarettes
recently launched range of thin potato biscuits, ‘Sunfeast All Rounder’ was augmented with the launch of All Rounder ‘Cream and Herb’ variant. • Dairy & Beverages Business posted strong growth during the quarter, gaining strong consumer traction on the back of best-in-class quality standards, differ
Slide 7: Cigarettes and Hotels
imperatives of the country and tobacco control objectives, cognising for the unique tobacco consumption pattern in India. HOTELS Stellar performance across properties; Segment Revenue at Rs. 536 cr. (up 25.6% over Q2 FY20); Segment EBITDA up 138 cr. YoY and 68 cr. over Q2 FY20. • ARR and Occupancy a
Slide 8: Paperboards and sustainable packaging
cost optimisation across the value chain. The multi-dimensional digital interventions encompass Industrial IoT for Smart Operations, Integrated Data Infra/Platform, AI/ML algorithms for optimisation in the manufacturing process, AI/ML based image analytics and IoT based crop monitoring & advisory. •
Slide 9: Sustainability ratings and links
ITC has also been rated at the 'Leadership Level' score of 'A-' for both Climate Change and Water Security (Asia and Global average at ‘B-’ for climate change and ‘B’ for water security) by CDP, a reputed independent global platform for disclosures on environmental impacts. The Sustainability & Inte
Slide 10: Q2 FY23 Results
Enduring Value NATION FIRST: SAB SAATH BADHEIN Q2 FY23 Results 20th October, 2022 |1|
Slide 11: 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 12: Macro Economic Context
Macro Economic Context |3|
Slide 13: Global Macro headwinds
Global Macro headwinds High Inflation + High Interest rates → Growth Slowdown Rising Inflation US Interest rates : Steepest rise in history 10.0% 10.0% 8.2% 5.4% 4.1% pp 3.4% 2.8% 0.7% Euro Area Germany US China Sep'22 Sep'21 0 5 10 15 20 25 30 35 40 Source : Statista, Trading Economics Months since
Slide 14: India Persistently high Inflation
India Persistently high Inflation Downward revision to GDP Estimates CPI, Core CPI (% y-o-y) Interest Rates on the rise (%) 7.8% 7.0% 7.4% 7.0% 6.7% 6.1% 5.9% 6.2% 6.0% 5.9% 6.0% 4.3% CPI Core CPI RBI Upper Limit 4.5% Source : MOSPI Source : RBI, Fed FY23 Inflation estimates revised upwards (% y-o-y
Slide 15: External headwinds weigh on macro outlook
External headwinds weigh on macro outlook Trade Deficit; Q1 FY23 CAD highest since Sep’18 ($bn) Net FII flows ($bn) 40 19 4.0% 20 3.7% 15 7.5 7 2.4% 0.9% 2.0% 0 -1.5% 0.0% 3.1 3.0 -0.3% -2 -8 -10 -20 -10 -13 0.9 1.0 -16 -1.0% -1.3% -22 -2.0% 0.5 -24 -40 -31 -2.6% -35 -4.0% -0.3 -41 -45 -2.8% -1.2 -2
Slide 16: Bright Spots
Bright Spots Normal monsoon |Stable tax collections| Credit growth pickup Stable GST collections (Rs. Lakh crore) Net Direct Tax collections (Rs. Lakh crore) Rainfall +6% LPA (1st Jun’22 – 30th Sep’22) 1.68 1.41 1.45 1.49 1.44 1.48 1.42 1.40 2.66 1.99 0.98 0.93 1.68 2.08 0.62 FY23 FY22 FY21 YTD Aug'
Slide 17: India Macro
India Macro Key Positives Key Monitorables Pickup in economic High Inflation activity continues Rising interest rates Capex cycle yet Tax collections stable to pick up Rising Current Account Pickup in credit growth deficit / Currency Depreciation Structural Interventions by Global Macro Headwinds Go
Slide 18: Headline Financials & Business Highlights
Q2 FY23 Results Headline Financials & Business Highlights |9|
Slide 19: Key Highlights: Q2 FY23
Key Highlights: Q2 FY23 Gross Revenue EBITDA Overall Segment PBIT Margin ex – Agri Business Strong performance +27.1% +27.1% 37.3% 150 bps continues across segments PAT EPS +20.8% +20.3% For the quarter ended 30th Sept, 2022, YoY change | 10 |
Slide 20: Key Highlights: Q2 FY23
Key Highlights: Q2 FY23 ▪ Strong and broad-based growth in FMCG – Others across markets & channels; Segment Revenue up 21.0% YoY, at appx. 1.5x of Q2 FY20 ̶ Staples & Convenience Foods and Discretionary/Out of Home categories drive growth ̶ Education & Stationery Products Business continues to witne
Slide 21: Key Highlights: Q2 FY23
Key Highlights: Q2 FY23 ▪ Robust growth in Agri Business; Segment Revenue up 44.0% YoY ̶ Wheat, Rice and Leaf Tobacco exports ▪ Paperboards, Paper & Packaging Segment continues to deliver strong performance; Segment Revenue up 25.0% YoY while Segment PBIT up 54.0% YoY; Segment PBIT margins at 27.5%
Slide 22: ITC Next Strategy
ITC Next Strategy Future Ready | Consumer Centric | Agile Multiple Growth Drivers Innovation and R&D Cost Optimization Best fit - market opportunity & enterprise strengths Agile & purposeful innovation to win Structural interventions across value Science-based research platforms chain Disruptive mod
Slide 23: FMCG Others
(Ws Dit ke aage CabkiGtaay hai our eyes! Some Curls fill our tummy. ‘noobie heab in your gang! Enduring Value — WHICH VERMICELL! DISH WOULD YOU LOVE TO TASTE? Me FMCG Others Ge uh. Pack, ENGAGE LAMANTE CLCK AND BRUSH ——
Slide 24: FMCG Others – Q2 FY23
Segment Revenue up 21.0% YoY FMCG Others – Q2 FY23 at ~1.5x of Q2 FY20 OFMCG Segment Revenue Rs. cr. Rs. ▪ Strong and broad-based growth across markets and channels 5,200 +48.5% - Strong growth in Staples & Convenience Foods (Biscuits, Atta, Noodles) and +21% Discretionary/Out-Of-Home categories (Sn
Slide 25: FMCG Others – Q2 FY23 EBITDA
Segment EBITDA +15% YoY FMCG Others – Q2 FY23 More than doubled over Q2 FY20 ▪ Segment EBITDA Margin at 9.5% (Q2 FY22: 10.0%) ‒ Sequential improvement of 170 bps ▪ Sharp escalation in input costs mitigated through multi-pronged interventions: ̶ Strategic cost management, premiumisation, supply chain
Slide 26: Creating Structural Competitive Advantages
World Class Distributed Infrastructure Creating Structural Competitive Advantages Scale| Productivity| Costs Solar Plant, Dindigul ICML Trichy AMLF Kapurthala ICML Medak Diversity & Inclusion: Industry leading gender diversity AMLF: Ancillary Manufacturing cum Logistics Facility ICML: Integrated Con
Slide 27: Driving Cost Agility & Productivity
Driving Cost Agility & Productivity Remove | Reduce | Re-engineer Manufacturing ICMLs Next Generation Agile Supply Chain Industry 4.0 Network Optimization (AI/ ML Enabled) TPM Direct to Market Lean, Six Sigma ITC One Supply chain Smart Transportation Delayering Operations Smart Last Mile Execution S
Slide 28: Addressing Emerging Consumer Need Spaces with Agility
Addressing Emerging Consumer Need Spaces Robust innovation pipeline with Agility Aashirvaad Meri Chakki Atta Bingo! Snacks Mom’s Magic Sunfeast Dark Fantasy Pick Your Mix Differentiated Flavors & Textures Centre Filled with Cashews Premium Filled Cookies & Molten Butter Creme Fiama Charcoal & Grapef
Slide 29: Future-Ready Portfolio
Augmenting ‘Good For You’/ Future-Ready Portfolio ’Free From’ range Aashirvaad Nature’s Super Foods Roasted Vermicelli Aashirvaad Svasti Aashirvaad Svasti Milk Gluten Free & Multi Millet Mix | Organic No Added Preservatives Organic Cow Ghee Select Milk Easy Digest Milk (Lactose Free) Aashirvaad Salt
Slide 30: Building Brands with Purpose
Building Brands with Purpose #Farmerettes Nimyle Eco-Friendly India Mission Supporting Women Farmers State Level YiPPee! A Better World Inter School Quiz Competition 3000+ Schools 6000+ students Generating awareness and driving Creating awareness amongst children about environmental concerns conscio
Slide 31: Leveraging Festive Occasions
Leveraging Festive Occasions Aashirvaad ‘Aamar Maa’ pandal: A Tribute to fearless, strong, compassionate mothers Real life mothers visiting the pandal projected as Maa Durga Aashirvaad associates with Rath Yatra Sunfeast Dark Fantasy Sunfeast Marie Mangaldeep 3in1 Agarbatti Aashirvaad Svasti Celebra
Slide 32: Expanding Reach in Emerging Channels
Expanding Reach in Emerging Channels Winning in Emerging Channels New Routes to Market Modern Trade Fast-tracking E-Com, D2C, Cash & Carry Direct Marketing On the Go Strategic Partnership QSR Channel Specific Launches Climate Controlled Supply Chain E-Com | Modern Trade| Strategic Tie-Ups Dairy | Fr
Slide 33: Leveraging Digital to expand reach
Leveraging Digital to expand reach eB2B: UNNATI VIRU: Virtual Salesman VISTAAR: Rural App Project Zen Next Generation Agile FMCG Supply Chain Over 4.4 lakh Outlet penetration | 24 |
Slide 34: FMCG Cigarettes
MM ENA Enduring Value FMCG Cigarettes
Slide 35: FMCG Cigarettes – Q2 FY23
FMCG Cigarettes – Q2 FY23 ▪ Net Segment Revenue* up 23.4% YoY; Segment PBIT up 23.6% YoY Segment Revenue ▪ Innovation & democratising premiumisation across segments 6954 cr. 23.3% ▪ Portfolio Vitality | Product Accessibility | Execution Excellence ̶ Recent launches continue to gain traction Segment
Slide 36: FMCG Cigarettes Reinforcing market standing
FMCG Cigarettes Reinforcing market standing Innovation Portfolio Fortification • Classic Connect • Gold Flake Neo SMART Filter • American Club Clove Mint • Navy Cut Deluxe • Gold Flake Indie Mint • Player’s Gold Leaf Chase • Gold Flake Neo • Gold Flake Star • Capstan Fresh Recent Introductions Other
Slide 37: Hotels Business
MEN Enduring Value Hotels Business a | 28 |
Slide 38: Hotels – Q2 FY23
Stellar performance across properties Hotels – Q2 FY23 Segment Revenue up 25.6% over Q2 FY20 Segment Revenue ▪ ARR and Occupancy ahead of pre-pandemic levels; Retail, Leisure, Weddings and MICE drive growth 536 cr. ▪ Segment EBITDA margin at 29.0% (Vs. 20.4% in Q2 FY20); margin expansion driven by h
Slide 39: ITC Narmada launched in Aug’22
ITC Narmada launched in Aug’22 Responsible Luxury LEED Platinum Certification - 1st in Gujarat | 30 |
Slide 40: Executing ‘Asset Right’ Strategy
Executing ‘Asset Right’ Strategy Healthy Pipeline of Management Contracts Two launches during the quarter Phased openings over the next few quarters Storii Shanti Morada, Goa Mementos Udaipur Storii Amoha Retreat, Dharamshala Welcomhotel Corbett | 31 |
Slide 41: Special Occasions leveraged to drive demand
Special Occasions leveraged to drive demand ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ ' ~ ~ ~ ~ ~ ..."4 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1 ~ CELEBRATING ~~ ~ ~ ~ ; ~ ~ ~ ~ ~ ~ ~ 75 Year Celebration ~ ~ ~ ~ ~ ~ Celebrating the generation which built the ~ ~ nation with a special culinary offer. ~ ~ Pay 75% of your bill. ~ ~
Slide 42: Driving Value through Digitalisation
Driving Value through Digitalisation Brand/Guest Experience CRM One stop shop for all guest needs Room Reservation | Restaurant Booking Analytics & Insight driven personalisation Takeaway | Loyalty | Room Controls | 33 |
Slide 43: Agri Business
MM ENA Enduring Value Agri Business
Slide 44: Agri Business – Q2 FY23
Agri Business – Q2 FY23 Robust Growth in Revenue ▪ Segment Revenue up 44.0% YoY driven by wheat, rice and leaf tobacco exports ̶ Strategic sourcing support to Branded Packaged Foods Businesses – Wheat, Dairy and Spices Segment Revenue ▪ ITCMAARS* – a crop-agnostic ‘phygital’ full stack AgriTech plat
Slide 45: ITCMAARS
ITCMAARS Advisory Inputs Outputs Services 460+ FPOs ~1.8 lac ~1.2 lac 50+ 9 states Farmer registrations App downloads Tie-ups with partners | 36 |
Slide 46: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging | 37 |
Slide 47: Paperboards, Paper & Packaging – Q2 FY23
Paperboards, Paper & Packaging – Q2 FY23 Growth Momentum Continues Paperboards & Specialty Paper ▪ Paperboards, Paper & Packaging Segment continues to deliver strong performance Segment Revenue ▪ Robust growth in Revenue driven by higher realisation ̶ Strong demand across end-user segments and expor
Slide 48: Sustainable Packaging Solutions New Growth Vector
Sustainable Packaging Solutions ITC LSTC | External Collaborations New Growth Vector Extrusion Coated Boards Bio-based Coated Boards Antimicrobial Coating Laminating Anti fungal Base Boards Laminating Base Oxyblock 200 180 Sustainable Products >2x portfolio 160 140 120 100 80 x 60 Water, Oil & Greas
Slide 49: Financials
Financials | 40 |
Slide 50: Key Financials Q2 FY23
Key Financials Q2 FY23 YoY Rs. Cr. Q2 FY23 Q2 FY22 growth Gross Revenue 16,971 13,356 27.1% Net Revenue 15,976 12,543 27.4% EBITDA 5,864 4,615 27.1% PBT 5,939 4,880 21.7% PAT 4,466 3,697 20.8% Strong performance continues across segments Standalone basis | 41 |
Slide 51: Segment Revenue Q2 FY23
Segment Revenue Q2 FY23 • FMCG Others Q2 - Segment Revenue up 21.0% YoY, at approx. 1.5x of Q2 FY20 YoY - Staples & Convenience Foods and Discretionary/OOH Rs. cr. FY23 FY22 growth categories drive growth Segment Revenue - ‘Fiama’ & ‘Vivel’ range of Personal Wash products performed a) FMCG - Cigaret
Slide 52: Segment Results Q2 FY23
Segment Results Q2 FY23 Q2 YoY Rs. cr. FY23 FY22 • FMCG-Others: growth Segment Results ‒ Segment EBITDA at 463 cr. a) FMCG - Cigarettes 4429 3583 24% • at 2.1x of Q2 FY20 - Others 321 272 18% ‒ EBITDA margin at 9.5% Total FMCG 4750 3855 23% • -50 bps YoY; +170 bps QoQ; +280 bps vs. Q2 FY20 b) Hotels
Slide 53: ITC – A Global Exemplar in Sustainability
ITC – A Global Exemplar in Sustainability | 44 |
Slide 54: Impactful Social Performance
Impactful Social Performance ITC e-Choupal Afforestation Watershed Development Livestock Development Solid Waste Management Over 10,00,000 acres Over 1.37 million acres Well-being Out of Waste 4 Million Farmers Over 20,73,000 milch programme has covered empowered greened covered animals covered ~20
Slide 55: Sustainability 2.0 Sustainability Targets 2030
Sustainability 2.0 Sustainability Targets 2030 REDUCE I RECYCLE I RESTORE Raising the Bar Strategic Interventions to Combat Climate Change Renewable Specific GHG Recyclable Plastic Plastic Energy Emissions Packaging Neutrality De-Carbonization Climate Adaptation and 100% Resilience 50% 50% 100% Coll
Slide 56: Sustainability – Highlights
Sustainability – Highlights • All Businesses aligned with 2030 targets • Comprehensive set of policies & guidelines institutionalised • Exceeded commitment on Plastic Neutrality; collected and sustainably managed over 54000 MT of plastic waste in FY22 across 35 states/UT • The only enterprise in the
Slide 57: ITC Infotech
ITC Infotech | 4848|
Slide 58: ITC Infotech
ITC Infotech Revenue (Rs. cr.) EBITDA (Rs. cr.) 14 50 Revenue (Rs.cr.) EBITDA (Rs.cr.) 84 0 25 0 30 00 82 0 33 00 20 0 3 Yr Cagr: 80 0 Revenue: 12.4% 15 0 12 50 78 0 31 00 25 00 76 0 10 0 2853 74 0 50 29 00 10 50 211 135 72 0 749 821 70 0 0 20 00 27 00 85 0 Q2 Q2 Q2 Q2 FY22 FY23 FY22 FY23 717 15 00
Slide 59: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. | 50 |
Slide 60: Links
Links Product/initiative Link Bingo! on Instagram https://www.instagram.com/bingo_snacks/ YiPPee! on Instagram https://www.instagram.com/sunfeast_yippee/ Aashirvaad on Instagram https://www.instagram.com/aashirvaad/ Sunfeast Dark Fantasy on Instagram https://www.instagram.com/sunfeastdarkfantasy/ Mo