Tata Consumer Products Limited · NSE:TATACONSUM

Tata Consumer Products — Tata Global Beverages — Q1 2017-18 Earnings Presentation

20 slides from Tata Consumer Products's earnings presentation, Aug 11, 2017

1. Slide 1: Analyst Call – Q1 2017-18

   Analyst Call – Q1 2017-18 August 11, 2017

2. Slide 2: Agenda

   Agenda 1. BUSINESS PERFORMANCE 2. FINANCIAL OVERVIEW 2

3. Slide 3: Business Performance

   We rasa Business Performance

4. Slide 4: Key Highlights

   Key Highlights 5th consecutive quarter of operating profit growth despite higher spends behind brands and competitive intensity in developed markets  Improvement in tea volumes whilst softer volumes in coffee  Improvement in India despite impact of transition in India  Promotional phasing in most

5. Slide 5: Snapshot of Financials

   Snapshot of Financials Rs Crores (2%) (up 1% in underlying terms) 9% 1704 218 1735 201 19% Current Year Q1 Previous Year Q1 Current Year Q1 Previous Year Q1 Revenue from operations Profit before exceptional items and tax 142 120 Current Year Q1 Previous Year Q1 Group Consolidated Net Profit 5

6. Slide 6: Aggressive focus on Strategic Priorities

   Aggressive focus on Strategic Priorities Strategic Priorities Opportunities Initiatives • Focus on Power Brands • Build Core Brands • Jaago Re Version 2 campaign – Tata Tea • Tetley Super focus in UK • Tea Veda launch in India, Ayurveda Balance in Canada • Infusion Coffee range in US • Indulgence la

7. Slide 7: Aggressive focus on Strategic Priorities

   Aggressive focus on Strategic Priorities Strategic Priorities Opportunities Initiatives Nourishco – • Launch of variants for Tata Gluco Plus which has been the star performer. • Himalayan Flavoured Water / Himalayan Sparking Water launched • Good improvement in operating profits • Focus on incubator

8. Slide 8: Aggressive focus on Strategic Priorities

   Aggressive focus on Strategic Priorities Strategic Priorities Opportunities Initiatives • Exit from loss making geographies (eg Russia/China) • Cost Opportunities • Restructure/reassess stressed markets (eg Poland) • Reinforce organizational capabilities • Drive operational improvements Drive Operat

9. Slide 9: Performance Update – Branded Business: India

   Performance Update – Branded Business INDIA  Volume & sales growth for the quarter despite the impact of GST role out  Continue to maintain volume and value leadership, gains market shares  Effective management of commodity cost  Pilot launch - Fruski a tea based ready to drink beverage  Tata T

10. Slide 10: Performance Update – Branded Business: UK

    Performance Update – Branded Business UK  Strong performance in UK growth in market shares across all major categories despite  declining overall tea category, specially in everyday black  continuing competitor intensity  Green tea continues to grow with improvement in Super Greens  Multimedia

11. Slide 11: Performance Update – Branded Business: USA, Canada, Rest of EMEA

    Performance Update – Branded Business USA  Promotional phasing and higher commodity costs impacts coffee performance in Q1.  New Launches - new Infusions range – Super Spice, B6 Metabolism, Acai Glow  Tetley Green Tea reflects modest growth despite decline in category Canada  Topline performance

12. Slide 12: Performance Update – Non Branded Business

    Performance Update – Non Branded Business Tata Coffee Limited  Tata Coffee impacted by lower sales both in ICD and plantation Instant Tea  Instant tea business reflects a stable performance Associate (APPL,KDHPC and EMSPL)  Improved performance across all associates driven by higher realisations

13. Slide 13: Other Significant Events

    Other Significant Events China JV Sale – Disposal completed, Gain on disposal in Group books – Rs 5 crs and Standalone books – Rs 19 crs. Russia – SPA signed in August with Russian companies for the sale of the Russian operations. Royalty agreement with the buyers as brand still owned by us. Tata Co

14. Slide 14: Financial Overview

    Financial Overview 14

15. Slide 15: Financial Overview

    Financial Overview • Operating Performance • Fifth consecutive quarter of operating profit growth • During Q1 • Operating income higher by 1% in underlying currency • Growth in India Tea Brands aided by new launches, despite impact of GST transition. Offset by • Phasing of promotional sales • Underp

16. Slide 16: Financial Highlights - PL

    Financial Highlights - PL Particulars YTD June, 2017 (In Rs crores) CY PY Variance Revenue from Operations 1704 1735 (31) Other Income 14 21 (7) Total Income 1718 1756 (38) Expenses other than Finance costs (1489) (1533) 44 Finance Cost (11) (22) 11 Profit Before Exceptional Items 218 201 17 Excepti

17. Slide 17: Financial Highlights - OCI

    Financial Highlights - OCI Particulars YTD June, 2017 (In Rs crores) CY PY Variance Consolidated Group Net Profit 142 119 23 Changes in Fair Value of Equity Instruments 9 67 (58) Exchange difference on translation of foreign operations 111 (244) 355 Others 6 28 (22) Other Comprehensive Income 126 (1

18. Slide 18: Region-wise Revenue from Operations

    Region-wise Revenue from Operations Particulars YTD June, 2017 (In Rs Crores) CY PY Variance CAA 392 369 23 EMEA* 316 383 (67) India Brands 796 766 30 Total Brands 1504 1518 (14) Total Non Branded Operations 209 232 (23) Other and Eliminations (9) (15) 6 Revenue from Operations 1704 1735 (31) * Impa

19. Slide 19: Segment – Quarter 1

    Segment – Quarter 1 Particulars Segment Revenue Segment Results Capital Employed (In Rs Crores) June 17 June 16 June 17 June 16 June 17 June 16 Branded Business Tea 1245 1215 183 164 3380 3337 Coffee 250 296 40 55 1599 1735 Others 9 7 (3) (3) 26 18 Total Branded Business 1504 1518 220 216 5005 5090

20. Slide 20: Thank you

    Thank you

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