Slide 1: Q4 FY21 Results
Q4 FY21 Results 1st June, 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: FY21 Operating Context
FY 21 Operating Context ▪ Sharp contraction of 7.3% in GDP – multi-decadal low! ̶ Industry (7.0)%; Services (8.4%); Agriculture +3.6% ̶ Fixed Capital Formation declined 10.8% & Private Consumption degrew by 9.1% ̶ MSME, Unorganised, Contact-intensive sectors deeply impacted ̶ Monetary/liquidity stim
Slide 4: Winning in the New Normal: ITC Responded with Speed and Agility
Winning in the New Normal ITC Responded with Speed and Agility 3 Pronged Approach ▪ Safety protocols, health advisories rolled out ▪ Reinforce Trust – superior product quality & across all nodes of operations hygiene standards ▪ Proactive engagement with authorities to Survive Revive Do the Best to
Slide 5: FY21 Results: Headline Financials & Business Highlights
FY21 Results Headline Financials & Business Highlights 5
Slide 6: Key Highlights: FY21
Key Highlights: FY21 ▪ Strong sequential recovery momentum in H2 ‒ Significant improvement in y-o-y growth trajectory ▪ FMCG Business posts strong performance ‒ Comparable Revenue* up 16% ‒ 120+ innovative products launched – hygiene, health & wellness, naturals, convenience ‒ Sunrise amalgamated w.
Slide 7: FMCG Others
MENA Enduring Value FMCG Others RW AASHIRVAAD a Nash Vegetable & Fruit Wash ENGAGE ciama DER N Sunfeast Farmlite —e MAFIQE =s== cell by cell Vivel CHARMIS
Slide 8: FMCG Industry Trends – Update
FMCG Industry Trends – Update ▪ Demand for Health & Hygiene, Immunity, Ayurveda products remained elevated; albeit at lower levels Vs. H1 ▪ Staples & Convenience foods demand normalised after a surge in H1 ̶ Broadening of purchase assortment by consumers and lower ‘at-home’ consumption on the back o
Slide 9: FMCG Others: Robust growth in Revenue
FMCG Others Robust growth in Revenue Segment Revenue* up 16% in Q4 as well as full year FY21 Staples, Convenience Foods, Discretionary / Health & Hygiene Products Hygiene OOH FY21 +20% +2% Q4: +13% Q3: +11% Q4: +23% Q3: +11% Q2: +25% Q1: +34% Q2: -2% Q1: -25% c. 75% → 78%^ c. 25% → 22%^ *Ex ESPB, LR
Slide 10: FMCG Others: Sustained improvement in Profitability
FMCG Others Sustained improvement in Profitability Q4 Full Year Robust Purposeful Brand Innovation Portfolio Levers of Margin Power Expansion Operating Of Leverage Digital Supply Chain Efficiencies Segment EBITDA up 19% in Q4 FY21 Segment EBITDA up 44% in FY21 Comparable* Margins up 115 bps in Q4 FY
Slide 11: Fuelling Growth through Innovation: Life Sciences & Technology Centre
Cutting-edge R&D capability Fuelling Growth through Innovation 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 Analyti
Slide 12: 120+ New Launches in FY21
120+ New Launches in FY21 Insight + Innovation >> Impact Hygiene++ , Protection & Care ‘Good For You ’ & ‘Free From’ Convenience & On-the-Go Aashirvaad Aashirvaad Aashirvaad Nature’s Super Food On-the-Go Range Ready to Cook Savlon Organic Atta & Dals Hexa range, Disinfectants, Masks & Wipes Sunfeast
Slide 13: 120+ New Launches in FY21
120+ New Launches in FY21 Insight + Innovation >> Impact Indulgence Skin Care Interactive Education Fabelle Sunfeast Luxury Chocolates Milkshakes Charmis Facewash, Face Serum & Hand Cream Sunfeast Dark Fantasy Sunfeast Sunfeast Choco Chip, Choco Nut Fills, All Rounder Caker Choco Creme Classmate Int
Slide 14: Building Brands With Purpose
Building Brands With Purpose Healthier & Safer Women Responsible Citizens India Empowerment for the Future Women Empowerment 14
Slide 15: Driving Digital Engagement
Driving Digital Engagement Improving “quality of awareness” Focused Communication Community Marketing High Frequency Campaigns 15
Slide 16: Driving Digital Engagement: Building Influencers & Communities
Driving Digital Engagement Building Influencers & Communities Leveraging social media influencers Engaging with Michelin Chefs of India 16
Slide 17: Creating Impactful Communications
Creating Impactful Communications Building Brand Awareness Garnering Consumer Attention Generating Digital PR 14 mn impressions with influencers such as Neha Kakkar Leveraging Social media and News apps Unboxing the New Sunfeast Dark Fantasy on the Bingo! Comedy Adda internet - all things New 17
Slide 18: Innovative Outdoor Campaigns
Innovative Outdoor Campaigns India’s 1st Floating LED Billboard Refreshed Brand Communication Sunfeast Dark Fantasy Bingo! Snacks 18
Slide 19: Awards & Accolades
Awards & Accolades Industry Recognition – Marketing Excellence #NoHandsUnwashed #NoHeartUntouched Award for excellence in design, creativity and advertising 19
Slide 20: 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 20
Slide 21: 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. 21
Slide 22: Creating Structural Advantage
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 23: Building A Robust FMCG Business
SMART | AGILE | RESPONSIVE Building A Robust FMCG Business Leveraging cutting-edge Digital technologies 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 &
Slide 24: Sunrise Foods - Update
Sunrise merged with Company pursuant to approval of Sunrise Foods - Update scheme by NCLT, Kolkata bench (Appointed date: 27th July’20) Integration process New product/channel/market First Year Business completed expansion underway targets achieved • People & Process integration • Market / outlet se
Slide 25: FMCG Cigarettes: Sequential recovery momentum sustained
Sequential recovery momentum sustained FMCG Cigarettes - Q4 FY21 Q4 Volumes at nearly pre-Covid levels ▪ Q4 Net Revenue up 6.7% y-o-y; margins up 70 bps Segment Revenue ₋ Continued progressive volume recovery to reach nearly pre-Covid levels 5860 cr. 14.2% ₋ Smart recovery in metros and large town m
Slide 26: FMCG Cigarettes: Recent Portfolio Interventions
FMCG Cigarettes Recent Portfolio Interventions Innovation @ Premium End 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
Slide 27: Smuggled Cigarettes remain widely available
Smuggled Cigarettes remain widely available, FMCG Cigarettes despite deterrent actions by authorities 27
Slide 28: Hotels Business
/// Hotels Business Responsible Luxury Highest Standards of hygiene & safety Sustainability | Authenticity| Well Being & Safety ITC Royal Bengal
Slide 29: Hotels Business – Q4 FY21
Sequential improvement in performance Hotels Business – Q4 FY21 Q4 Segment EBITDA at 25 cr. ➢ Sequential improvement in revenues; still behind pre-Covid levels ̶ Wedding business, staycations/motorable getaways key drivers of revenue ̶ Leisure locations continued to witness strong demand ̶ Robust re
Slide 30: Hotels: New F&B Initiatives gain increasing traction
Hotels New F&B Initiatives gain increasing traction Digital interventions ensure continued Guest Connect New Launches in F&B initiatives – Season’s festivities & Digital Series for Guest Takeaway/Home Delivery menu exclusive dining Connect Food for Thought Series Well Being Master Series 30
Slide 31: Hotels: Special Packages drive demand
Hotels Special Packages drive demand Room Initiatives – Special Packages 31
Slide 32: Hotels Business Strategy Refresh
Hotels Business Strategy Refresh Refreshed & Distinctive Identity & Positioning of Loyalty Programs: Maximise Welcomhotel brand enrollments and drive engagement Launch boutique Gifting: Partnership, experiential brand - Engagement and Offers curated experiences for ASSET RIGHT AUGMENT REVENUE Takeaw
Slide 33: Agri Business
MM ENA Enduring Value Agri Business
Slide 34: Agri Business – Q4 FY21
Agri Business – Q4 FY21 Strong performance in Agri Segment Segment Revenue ▪ Revenue growth driven by export opportunities in Wheat, Rice and Oilseeds ‒ Wheat exports to Bangladesh, Malaysia, Sri Lanka & UAE 3369 cr. 78.5 % ▪ Strong growth in Value Added spices to Food Safe markets Segment Results ▪
Slide 35: 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 36: 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 37: Paperboards, Paper & Packaging
Paperboards, Paper & Packaging
Slide 38: Paperboards, Paper & Packaging – Q4 FY21
Paperboards, Paper & Continued strong sequential Packaging – Q4 FY21 recovery momentum • Strong recovery in domestic demand and robust growth in Exports Segment Revenue - Higher offtake across most end-user segments barring Publications, Notebooks & Wedding cards - Strong growth in Specialty papers
Slide 39: Innovation: Developing Sustainable Paperboard & Packaging solutions
Developing Sustainable Innovation Paperboard & Packaging solutions Bio-degradable Boards Recyclable Boards Sustainable Packaging Bioseal Biodegradable packaging solutions for packaged/fast-food & Personal Care industries. Launched on commercial scale. Completely Biodegradable Completely Recyclable i
Slide 40: Paperboards, Paper & Packaging Business Strategy Pillars
Paperboards, Paper & Packaging Business Strategy Pillars Augment Value Added product portfolio Proactive Capacity augmentation; New substrates A One-stop Packaging Solutions Provider Leverage multi-platform capability to ensure world-class quality and speed-to-market at competitive cost Augment Rene
Slide 41: Financials
Financials 41
Slide 42: Key Financials
Key Financials Strong Revenue growth in Q4 All Segments perform well; Hotels improves sequentially (Rs. cr.) Q4 Q4 GOLY FY21 FY20 GOLY FY21 FY20 Gross Revenue 14,023 11,300 24.1% 48,151 46,324 3.9% Net Revenue 13,176 10,865 21.3% 45,216 45,266 -0.1% EBITDA 4,473 4,164 7.4% 15,522 17,904 -13.3% PBT (
Slide 43: Segment Revenue: Q4 FY21
Segment Revenue: Q4 FY21 Rs. cr. Q4 2020-21 2019-20 GOLY% • FMCG – O Comparable revenue up 16%^ Segment Revenue (Gross) - Staples, Convenience Foods, Health & Hygiene Products up 13%; a) FMCG - Cigarettes 5860 5131 14.2% Discretionary/OOH up 23% - Others 3688 3184 15.8% Total FMCG 9547 8314 14.8% b)
Slide 44: Segment Results: Q4 FY21
Segment Results: Q4 FY21 Rs. cr. Q4 2 Yr. 2020-21 2019-20 GOLY% CAGR Segment Results % a) FMCG - Cigarettes 3666 3403 7.7% -2.5% % - Others 189 147 28.4% -3.1% • Hotels: EBITDA positive at 25 cr. % Total FMCG 3855 3550 8.6% -2.5% % b) Hotels -40 43 • Agribusiness: driven by strong growth in revenue
Slide 45: FY21: Segment Revenue & Results
FY21: Segment Revenue & Results Rs. cr. Rs. cr. Full Year Full Year 2020-21 2019-20 GOLY% 2020-21 2019-20 GOLY% Segment Results Segment Revenue (Gross) a) FMCG - Cigarettes 12720 14853 -14.4% a) FMCG - Cigarettes 20333 21202 -4.1% - Others 833 423 96.8% - Others 14728 12844 14.7% Total FMCG 13553 15
Slide 46: Quarterly Trends - Segment Revenue
Quarterly Trends - Segment Revenue Figs. in Rs. cr. Segment Revenue 2 Y-O-Y% 70 00 0 60 00 5,860 50 00 5,498 5,121 40 00 3,854 3,922 3,744 3,688 3,746 3,375 3,369 30 00 2,985 20 00 2,482 235 288 10 00 23 82 1,459 1,478 1,656 1,026 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FMCG Ci
Slide 47: ITC – a Global exemplar in Sustainability
ITC – a Global exemplar in Sustainability 47
Slide 48: 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 Recent Global Change All Plastic Waste Value Chains Sustainable Recognitions Livelihoods 41.2% Energy from Renewables Rainwater Harvesting (RWH)
Slide 49: 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 CO2 Sustainable Creating Sustainable Energy (RE) Consumption* Emissions* Sequestration Packaging Plan Livelihoods 4X 50% 30% 50% From 2X, as compared 100% 10 million RE Energy to
Slide 50: Looking Ahead
Looking Ahead 50
Slide 51: 2nd wave intensified from March'21 onwards: Surge in Daily New Cases
2nd wave intensified from Surge in Daily New Cases March’21 onwards India : New Cases – Moving 7-day Average (‘000s) Top 5 States : Daily Active Cases Karnataka Tamil Nadu Maharashtra 450 7 May’21 17 Sep’20 3,42,031 2,74,601 400 Daily New Cases – 97,894 Daily New Cases – 4,14,188 Active cases 3,05,5
Slide 52: Covid 2.0 – A key monitorable
Economic recovery momentum Covid 2.0 – A key monitorable interrupted by second wave ‘Putting India First’ - Supporting the Nation’s fight against the pandemic ▪ Ensuring safety and well-being of employees, partners and associates ▪ Debottlenecking transportation of medical oxygen, commencing supply
Slide 53: ITC: Enduring Value
ITC: Enduring Value A passion for in a way that is and Profitable growth... Sustainable… Inclusive. 53
Slide 54: Links
Links Product/initiative Link Aashirvaad https://www.facebook.com/watch/?v=2580570025575537 Aashirvaad Svasti Select Milk https://www.aashirvaadsvasti.in/select-milk.aspx YiPPee! Saucy Masala Noodles https://youtu.be/7EL60151PRE https://www.instagram.com/sunfeast_yippee/ YiPPee! and Bingo! on Instag
Slide 55: Thank You
Thank You 55