TATACONSUMNSE4 May 2022

TATA CONSUMER PRODUCTS LIMITED has informed the Exchange about Investor Presentation

TATA CONSUMER PRODUCTS LIMITED

May 4, 2022

National Stock Exchange of India Limited Exchange Plaza,5th floor Plot No. C/1, G Block Bandra Kurla Complex Bandra (E) Mumbai 400 051 Scrip Code – TATACONSUM

BSE Limited Corporate Relationship Dept. 1st Floor, New Trading Wing Rotunda Building, PJ Towers Dalal Street Mumbai 400 001

Scrip Code - 500800

The Calcutta Stock Exchange Limited 7 Lyons Range Kolkata 700 001

Scrip Code – 10000027 (Demat) 27 (Physical)

Sub: Press Release & Investor Presentation - Financial Results for the quarter and year ended March

31, 2022

Dear Sir/Madam,

We also enclose herewith the copy of the Press Release and Investor Presentation with regards to the Audited Financial Results of the Company for the quarter and year ended on March 31, 2022.

This is for your information and records.

Thanking you,

Yours faithfully, For Tata Consumer Products Limited

Neelabja Chakrabarty Company Secretary

Encl: as above

11/13 Botawala Building 1st Floor Office No 2-6 Horniman Circle Fort Mumbai 400 001 India Tel: 91-22-6121-8400 | Fax: 91-22-61218499 Registered Office: 1, Bishop Lefroy Road, Kolkata – 700 020 Corporate Identity Number (CIN): L15491WB1962PLC031425 Email: investor.relations@tataconsumer.com Website: www.tataconsumer.com

May 4th, 2022

Results for the Quarter and Year ended 31st March 2022

Consolidated Results:

Revenue from Operations for the quarter at Rs 3175 Crs, up 5% on reported basis, and up 6% on a like to like basis, net of exits

Revenue from Operations for the year at Rs 12425 Crs, up 7% on reported basis and up 9% on a like to like basis, net of exits

Consolidated EBITDA for the quarter at Rs 458 Crs grew by 45% and for the full year at Rs 1749 Crs grew by 11%

Group Net Profit for the quarter at Rs 239 Crs and for the full year Rs 1015 Crs

Tata Consumer Products Ltd. today announced its results for the quarter and fiscal year ended 31st March 2022.

For the quarter, Revenue from operations increased by 5% (4% in constant currency) as compared to corresponding quarter of the previous year, mainly driven by growth in the India branded business. Profit before exceptional items and tax at Rs 403 Crores is higher by 54%. Group Consolidated Net Profit at Rs 239 Crores is higher by 222% mainly aided by growth in underlying profitability and lower exceptional costs.

Some of the key Business updates are:

India

• For the year, the India Packaged Beverages business recorded 6% growth in

revenues, on an elevated base that saw 32% revenue growth last year.

•

In addition to recording market share gains in branded tea, we maintained our leadership position in the tea category in the e-commerce channel.

• Continuing the innovation agenda, during the quarter, we launched an adrak (ginger) flavoured tea under the Tata Tea Agni brand in core markets of the North.

• The premium portfolio in tea continued to gain market share. This includes brands such as Tata Tea Gold, Chakra Gold, Tata Tea Gold Care and Chakra Gold Care.

Kirloskar Business Park, 3rd & 4th Floor, Hebbal, Bangalore – 560 024 Tel: 91-80-6717 1200 | Fax: 91-80-6717 1201 Registered Office: 1, Bishop Lefroy Road, Kolkata – 700 020 Corporate Identity Number (CIN): L15491WB1962PLC031425 Email: investor.relations@tataconsumer.com Website: www.tataconsumer.com

• Coffee revenues grew 46% during the year, led by several new launches and distribution expansion. These new launches included Tata Coffee Gold, Tata Coffee Quick Filter and new Sonnets range.

• For the year, the India Foods business registered 19% revenue growth, on an

elevated base that saw 18% revenue growth last year.

• The salt portfolio continued its momentum and recorded double digit growth during the year along with market share gains. The premium salts portfolio recorded 26% growth during the year, continuing its strong trajectory in line with our premiumisation agenda.

• The newly launched Tata Salt Immuno offers consumers a category-first unique proposition of added Zinc, driving premiumization for the portfolio and upgrading consumers to a more value added offering.

• Tata Sampann had a strong quarter and year, recording double digit volume

growth.

• Tata Q, our Ready to Eat (RTE) brand became the #2 brand in the category in India (Source: Nielsen RMS MAT Dec’21 All India Urban) and launched 6 new variants to strengthen its product portfolio.

• NourishCo sustained strong growth momentum during the year with a 83% revenue growth, albeit on a low base, led by strong growth across products and geographies. The business unlocked new geographies and markets with good consumer acceptance. The business recorded several milestones during the year, with Himalayan breaking even at EBIT level for the first time since its inception, Tata Copper Water franchise scaling to >3x and Innovation contributing c.10% to sales.

• We reached new milestones in our Sales & Distribution transformation agenda. Our direct reach is now c.1.3 million outlets, and we have taken on a new target of 1.5 million direct outlets coverage by March’23. We have strengthened our distributor network- the total number of distributors has grown 25% y-o-y and the number of rural/ semi-urban distributors has quadrupled.

• Ecommerce channel continued its strong trajectory during the year, accounting for

c.7.3% of India business sales, up from 2.5% in FY20.

International

• For the year, the International Beverages business revenue grew 1%, like for like,

net of exits, cycling an elevated base that saw 12% growth last year.

• Gained market share in the Fruit & Herbal category in UK, driven by strong performance of Good Earth, Tetley Supers and Tetley Herbals innovations.

• Teapigs in UK continued its strong growth trajectory. The newly launched Teapigs

Decaf blend received great consumer response.

• Eight O’ Clock coffee in the USA introduced three new Barista blends and a new

campaign around ‘Be your own Barista’ to build awareness and trial.

•

In the USA, recent innovations in tea- Good Earth Sensorial blends, Tetley Flavours of Britain and Tetley Irish Breakfast continue to perform well.

In Canada, Tetley emerged as the Most Trusted tea brand for the 8th consecutive year. The Tetley Supers range in Canada continued to register strong performance.

Tata Starbucks

• Tata Starbucks recorded revenue growth of 76% for the year, despite two waves of the pandemic. For the quarter, revenue grew 32% partially impacted by the third wave of Covid19.

• Growth is back on a strong trajectory led by swift re-opening post the third wave.

• Delivery channel salience remained ahead of pre-Covid levels in FY22.

• Opened 23 new stores during Q4 and entered

four new cities- Goa, Bhubaneshwar, Nashik and Guwahati. This brought the total number of store additions to 50 during FY22.

Sustainability Update

• Tata Tea through its Jaago Re initiative launched an initiative on World Water Day to spread awareness about water conservation through a short digital film on ‘how a small step can make a huge difference.’

•

In our international markets, Tetley, Good Earth & Teapigs all carry the climate- friendly seal on Amazon, which helps consumers discover and shop for more sustainable products on the platform.

• Tata Coffee, a subsidiary of Tata Consumer Products, won four awards at OHSSAI HSE Excellence & Sustainability Awards 2021 for its continuous initiatives to make units and processes more environment friendly and sustainable.

• Tata Starbucks continued its focus on sustainability by educating consumers

on how to make better use of its carry bags and other accessories

Awards Update

• Tata Consumer Products was featured in the ‘Leadership’ category on the Indian Corporate Governance assessment for second year in a row by IiAS–a testimony to the robust corporate governance practices of the Company.

• Tata Consumer Products was recognized with a Gold at Grocery Aid Award for the support extended to Grocery Aid UK –a charity that offers emotional, financial and practical assistance to UK’s grocery industry and its workers.

• TCPL, Tata Chemicals and Tata Insights & Quants came together to optimize Rail Logistics Planning for Salt and Chemicals and won the Best Paper award at the 8th International Conference on Business Analytics and Intelligence (ICBAI) organized by IIM B, IISC.

• TCPL won the Masters of Risk award for the 3rdconsecutive year in the FMCG Sector Large Cap category at the 8thedition of the CNBC-TV18 India Risk Management Awards.

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said “Despite all the macro & operating challenges during the year, we delivered reasonable revenue growth along with improved profitability for the company.

In the core businesses, we delivered competitive growth with market share gains in both tea and salt. Our out-of-home businesses – NourishCo and Starbucks both delivered robust performance during the year. With tea inflation tapering off, India Beverages business saw a return to normalized margins but the foods business margin was impacted by significant inflation during the year. We dynamically managed the P&L to expand the EBITDA margin for the company, while significantly increasing the A&P in India business and investing behind new businesses to accelerate future growth.

Our transformation agenda is on track and we made substantial progress against our strategic priorities during the year. We entered the value added, high margin Ready- to- Eat category with the acquisition of Tata SmartFoodz. We expanded and strengthened our S&D infrastructure, accelerated momentum on innovation, invested in new drivers of growth and embarked on a global simplification plan to drive further efficiencies and synergies.”

About Tata Consumer Products Limited

Tata Consumer Products Limited is a focused consumer products company uniting the principal food and beverage interests of the Tata Group under one umbrella. The Company’s portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals. Tata Consumer Products is the 2nd largest branded tea company in the world. Its key beverage brands include Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand, Himalayan Natural Mineral Water, Tata Water Plus and Tata Gluco Plus. Its foods portfolio includes brands such as Tata Salt, Tata Sampann, Tata Soulfull and Tata Q. In India, Tata Consumer Products has a reach of over 200 million households, giving it an unparalleled ability to leverage the Tata brand in consumer products. The Company has a consolidated annual turnover of ~Rs. 12,400 Crs with operations in India and International markets. Last 10-year financials are available on Historical financial data.

For more information on the Company, please visit our website www.tataconsumer.com

Disclaimer: Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether express or implied. These forward-looking statements are based on various assumptions, expectations and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, competitive intensity, pricing environment in the market, economic conditions affecting demand and supply, change in input costs, ability to maintain and manage key customer relationships and supply chain sources, new or changed priorities of trade, significant changes in political stability in India and globally, government regulations and taxation, climatic conditions, natural calamity, commodity price fluctuations, currency rate fluctuations, litigation among others over which the Company does not have any direct control. These factors may affect our ability to successfully implement our business strategy. The Company cannot, therefore, guarantee that the ‘forward-looking’ statements made herein shall be realized. The Company, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward-looking statements as may be required from time to time on the basis of subsequent developments and events.

Investor Presentation

For the quarter and fiscal year ended March 2022

4th May 2022

Disclaimer

Certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such expectations, projections etc., whether express or implied. These forward-looking statements are based on various assumptions, expectations and other factors which are not limited to, risk and uncertainties regarding fluctuations in earnings, competitive intensity, pricing environment in the market, economic conditions affecting demand and supply, change in input costs, ability to maintain and manage key customer relationships and supply chain sources, new or changed priorities of trade, significant changes in political stability in India and globally, government regulations and taxation, climatic conditions, natural calamity, commodity price fluctuations, currency rate fluctuations, litigation among others over which the Company does not have any direct control. These factors may affect our ability to successfully implement our business strategy. The company cannot, therefore, guarantee that the ‘forward-looking’ statements made herein shall be realized. The Company, may alter, amend, modify or make necessary corrective changes in any manner to any such forward looking statement contained herein or make written or oral forward-looking statements as may be required from time to time on the basis of subsequent developments and events.

Agenda

Executive summary

Performance overview

Progress against strategic priorities

Macro environment

Business performance – India

Business performance – International

Financial performance

Concluding remarks

Other

We are Tata Consumer Products

In a nutshell

Integrated F&B company with rich heritage of Tata, aspiring for a larger share of the FMCG World

#2 branded tea player globally

₹ 12.4K crore consolidated revenue in FY22 with current market cap of ~₹72k* Cr.

Reach north of 200mn households in India and distribute to ~2.6mm retail outlets

Largest salt brand in India

2nd Largest tea brand in India

4th largest tea brand in UK & largest tea brand in Canada

4th largest R&G coffee brand in USA

National brand in pulses, spices and mixes

#1 natural mineral water brand in India

Among the top 10 FMCG companies in India

~3000 employees worldwide

* As of 31 March 2022

Executive Summary

 During the quarter, Consolidated Revenue grew 6%, bringing FY22 revenue growth to 9% (net of International Foodservice business exits). On a

2-year CAGR basis, this translated to 15% revenue growth in FY22, net of International Foodservice business exits.

 Consolidated EBITDA for the quarter grew 45%, bringing FY22 EBITDA growth to 11%. On a 2-year CAGR basis, EBITDA grew 16%.

 During the year, India business1 grew 13% led by

o India Beverages2 business growth of 10%, with 3% volume growth o India Foods3 business growth of 19%, with 8% volume growth



International business was +1%4 during the year (-2% in constant currency terms), cycling an elevated base (FY21 growth of 12%).

 With tea inflation tapering off, India Beverages margins saw significant improvement during the year. We invested some of that in new businesses and still expanded the consolidated EBITDA margin for the company, despite significant inflation in the foods business and, despite a 29% increase in A&P for the India business YoY.

 Strong Free Cash Flow conversion – FCF to EBITDA ratio (FCF before Capex and tax) for FY22 was 100%.

 Dividend proposed at Rs 6.05/share, up 49% YoY.

 During the year, we continued to gain market share in both the core categories of tea and salt.  We continued making progress against our strategic priorities – we acquired Tata SmartFoodz Ltd. (TSFL) to foray into value added, high margin

Ready-to-Eat (RTE) category. We expanded and strengthened our S&D infrastructure, continued the momentum on innovation, invested in new drivers of growth, and announced a Global Simplification plan to drive efficiencies and synergies.

1 Includes India beverages & India Foods business, including NourishCo. 2 Including NourishCo revenue, but volume doesn’t include Nourishco volumes 3 Including Tata Soulfull, Tata Q revenues. Volume doesn’t include Soulfull/Tata Q volumes 4 Like for like, adjusted for the impact of exit from International Foodservice business last year (Empirical in the US+ MAP coffee in Australia )

6 6

Key Businesses snapshot – Q4FY22

India Beverages

India Foods

US Coffee

International Tea

Tata Coffee (incl. Vietnam)

Consolidated#

International Beverages

1,190

-1%

764

19%

-1%

355

535

303

3,175

13% 11%

3% 3%

8% 7%

5%[ 6%] 4%[ 6%]

-8%

In ₹ Cr (unless specified)

Revenue

Revenue Growth Constant currency growth

Volume Growth

Key Brands

Note:

a) India Beverages revenue includes India Packaged Beverages + NourishCo (subsidiary effective May’2020), but volume doesn’t include Nourishco volumes

b) India Foods revenue includes Tata Soulfull (subsidiary effective Feb’21) and Tata Q (subsidiary effective Nov’21)

c) International tea business includes UK, Canada, USA, Australia, Europe and Middle East (Middle East has been regrouped from India Beverages in FY21 to International tea from FY22). It doesn’t include International foodservice business

d) Tata Coffee incl. Vietnam and excl. USCoffee (EOC)

e) Consolidated revenue includes other non-branded business and Inter-segment eliminations

f) # Reported growth, [like for like growth, adjusted for International Food service business exits]

Key Businesses snapshot – FY22

India Beverages

India Foods

US Coffee

International Tea

Tata Coffee (incl. Vietnam)

Consolidated#

International Beverages

5,001

10%

2,913

1,295

2,040

1,070

12,425

19%

0% 0%

-4%

-3%

11% 11%

7%[9%] 6% [8%]

In ₹ Cr (unless specified)

Revenue

Revenue Growth Constant currency growth

Volume Growth

Key Brands

Note:

a) India Beverages revenue includes India Packaged Beverages + NourishCo (subsidiary effective May’2020), but volume doesn’t include Nourishco volumes.

b) India Foods revenue includes Tata Soulfull (subsidiary effective Feb’21) and Tata Q (subsidiary effective Nov’21).

d) Tata Coffee incl. Vietnam and excl. USCoffee (EOC)

e) Consolidated revenue includes other non-branded business and Inter-segment eliminations

f) # Reported growth, [like for like growth, adjusted for International Food service business exits] .

Group Performance at a glance – Q4FY22

₹ 3,175 Cr.

₹ 458 Cr.

₹ 403 Cr.

₹ 239 Cr.

₹ 254 Cr. ~₹ 2,486 Cr.

Revenue

EBITDA

PBT (bei)^ Group Net Profit Group Net Profit (bei)^

Net Cash$

Growth (Y-on-Y)

5%[6%]#

Margin%

Margin expansion (Y-on-Y)

EPS

EPS Growth (Y-on-Y)

# [like for like growth net of International food service business exits]

^ before exceptional items

$ Cash and Cash equivalents (net of total borrowings) as at March 31, 2022

45%

14.4%

54%

12.7%

222%

7.5%

89%

8.0%

+400 bps

+410 bps

+510 bps

+360 bps

2.36 (EPS)

+307% (EPS)

Group Performance at a glance – FY22

₹ 12,425 Cr.

₹ 1,749 Cr.

₹ 1,508 Cr.

₹ 1015 Cr.

₹ 1056 Cr. ~₹ 2,486 Cr.

Revenue

EBITDA

PBT (bei)^ Group Net Profit Group Net Profit (bei)^

Net Cash$

Growth (Y-on-Y)

7%[9%]#

Margin%

Margin expansion (Y-on-Y)

EPS

EPS Growth (Y-on-Y)

# [like for like growth net of International food service business exits]

^ before exceptional items

$ Cash and Cash equivalents (net of total borrowings) as at March 31, 2022

11%

14.1%

12%

12.1%

8.2%

12%

8.5%

+50 bps

+60 bps

+20 bps

+40 bps

10.15 (EPS)

9% (EPS)

Strategic Priorities

The picture can't be displayed.

Strengthen & accelerate core business

Drive Digital & Innovation

Unlock synergies

Create Future Ready Org

Explore new opportunities

Embed sustainability

New milestones in S&D transformation

Direct reach

0.6M

Mar’22

By Mar’23

Total Numeric reach1

+18% Increase

+15% Increase

Tea

Salt

Digital transformation

Distributors

Rural/Semi-Urban distributors

DMS

DMS Lite

SSFA

All numbers are for FY22 vs FY21 unless specified otherwise 1 Increase in average number of dealers in FY22 vs FY21 (AC Nielsen)

Winning in alternate channels – MT & E-commerce

A fit for purpose assortment

Modern trade business crosses 1000 cr. MT up 30% y-o-y

E-commerce market share for Tea at 41.9% way ahead of competition

E-commerce up 56% y-o-y

E- commerce channel

(% of sales)

7.3%

5.2%

2.5%

FY20

FY21

FY22

All numbers are for FY22 vs FY21, unless specified otherwise.

Powering our brands

Tata Tea Premium continued its hyperlocal campaign by celebrating the unique diversity of our nation with the ‘Desh ki Jhanki’ initiative on the occasion of 73rd Republic Day

Tata Coffee Grand activated the festival of Pongal in the state of TN with a TVC led campaign which celebrated the sounds of festival in line with the sound of our coffee proposition.

Chakra Gold concluded its association with Big Boss in TN with Pongal special episodes and integrations.

1 Standalone Financials – includes India Packaged Beverages and India Foods 2 Source: Nielsen – Value share, MAT basis, Mar’22 vs Mar’21

Tata Tea Premium adopted a unique approach to connect with consumers by making its debut in the metaverse world and hosting a first of its kind Holi party

India business1 A&P FY22

+29% YoY

Market share

Tea ~100bps2

Powering our brands

The new Tata Salt Lite and Superlite TVC addresses a relevant consumer tension to reduce their salt intake by pivoting to an alternative option of low sodium salt

Tata Soulfull No Maida Chocos TVC went live, which highlights the goodness and crunchiness coming from 7 grains and no junk – making it a wholesome snack, loved by kids and approved by moms

Guaranteed quality, authentic taste, hygienically packed; Shuddh by Tata Salt is an iodized salt that is sourced from the sea. Specially crafted for South India markets to strengthen the portfolio. The TVC went live to communicate this message.

Market share

Salt + 400 bps2

The imitator and look alike brands are so identical to Tata Salt that consumers mistakenly pick them up instead. The new 360- degree marketing campaign for UP is an intervention – to educate trade and consumers to choose the real Tata Salt

1 Standalone Financials – includes India Packaged Beverages and India Foods 2 Source: Nielsen – Value share, MAT basis, Mar’22 vs Mar’21

Driving premiumization

Tata Sampann

Values Added Salt

Volumes

Coffee

Volumes

All numbers for FY22 vs FY21

Revenue

Tea

TTG care as % of TTG

18 18

Growth across key metrics

India Packaged Beverages

India Foods

International Beverages

Revenue growth

32.8%

Revenue growth

Revenue growth (like for like, net of exits)

18.3%

17.7%

11.9%

2-year CAGR

11.6%

2-year CAGR

6.6%

6.4%

19%

FY20

FY21

FY22

FY20

FY21

FY22

18%

0.1%

0.4%

FY20

FY21

FY22

Tata Consumer Products Consolidated performance

Consolidated Revenue

PBT (before exceptional items)

Group Net Profit

20%

2-year CAGR

24%

2-year CAGR

102%

14%

12%

18%

FY21

FY22

FY21

FY22

FY21

FY22

Corresponding Consolidated Revenue growth, PBT (bei) growth, and GNP growth for FY20 is not available as the foods business was not in the base in FY19

2-year CAGR

49%

Continuing the momentum on innovation – FY22

Innovation to sales contribution

FY22 vs FY21

20 20

Creating an agile and efficient supply chain

Transformation journey to an integrated and digitised supply chain well underway

Optimization of India Integrated Production & Delivery network

Cost-saving from efficiencies in the network

~11,000 drop off points serviced through

38 centers across India

>25% reduction in secondary freight/kg for the integrated CFAs

Digital journey well underway

Integrated Business Planning activated - Automated demand and supply planning

Inventory Optimization and S&OP enabled as the first step to a digitised and future ready supply chain

Future-readiness

IOT enabled flagship factory at Gopalpur – now being scaled up.

Sustainability

Rapid integration of acquired businesses

Renewable energy now accounts for 24%* of our current needs in the India supply chain network

Tata SmartFoodz and Soulfull – successful integration within 3 months of transaction close.

* As of FY22 exit

Global Simplification Plan announced…

Proposed Transactions

Consolidation of minority interest from Tata Coffee & TCP UK Group to TCPL

TCL combines with TCPL /WOS of TCPL, through a composite and scheme merger

demerger

business

Purchase of minority interest in UK Tata (TEO) Enterprise through preferential allotment by TCPL

Overseas

from

Further reorganization initiatives* in international business to be undertaken in future to…

* Further re-organization initiatives proposed to be undertaken, will be subject to the requisite approvals/ processes

…to unlock synergies and value for shareholders

Operational efficiencies for management, legal & administrative costs

► Align corporate structure with management & administrative structures ► Significant reduction in # of entities

Faster decision making and execution

► Converge the minority interests of subsidiaries at TCPL level ► Single listed entity capturing the full value of TCPL group ► Stepping-stone for further consolidation and simplification in the international

business

Creation of focused business verticals

► Combination of extraction businesses ► Creation of a dedicated plantation vertical

Unlocking potential synergies

► Material revenue, cost and other synergies expected over medium to long term* ► Single holding company for International branded business

* Post execution of the current and future reorganization initiatives following receipt of the requisite approvals and processes

New engines of growth

Revenue growth – FY22

Progress on inorganic acquisitions

Tata Soulfull

NourishCo

100-day integration

Soulfull to Tata Soulfull rebranding

Himalayan broke even at EBIT level for the 1st time since inception

Tata Copper Plus Water scaled to > 3x in FY22

Expanded distribution by 80%

1st

Signed an MOU with Indian Institute of Millet Research (IIMR) ahead of 2023 International Year of millets

Rs 10/- No Maida Chocos launch with 3 lakhs + outlets, supported by national TVC

Forayed into new geographies of Bihar, Jharkhand, West Bengal, Delhi NCR, UP, Maharashtra, Karnataka and Kerala

Expanded capacity - number of lines up 50%, through an asset light model

Accelerated innovation –contribution at c.10% of sales

Striving for better - Sustainability efforts

Amazon’s climate-friendly pledge helps consumers discover and shop for more sustainable products on their platform. Our family of brands including Tetley, Good Earth & Teapigs all carry the climate-friendly seal which highlights that they meet Amazon’s sustainability standards through our Rainforest Alliance & Soil Association certifications.

Tata Tea took an initiative to spread awareness about water conservation on ‘how a small step can make a huge difference’ through a short digital film on World Water Day

Tata Coffee team won four awards at OHSSAI HSE Excellence & Sustainability Awards 2021 for its continuous initiatives to make units and processes more environment friendly and sustainable

Sustainability at Starbucks

Tata Starbucks remains committed to creating a better tomorrow by enlightening the consumers on how to make better use of its handbags and other accessories

Macro and commodity overview

Global GDP growth trend

Commodity price trend

24.5

20.3

12.2

8.5

6.9

4.9

6.6

5.5

5.4

8.8

4.2

4.0

Tea Prices

Coffee Prices

194

158

145

180

215

122

233

247

$c / KG

194

188

187

100

102

₹ / KG

149

₹ / KG

115

111

128

236

$c/ LB

103

3.0

0.6

-2.0

-9.1 -2.9 -7.4

-21.1

-24.4

0.5

1.6

0.5

-2.3

-7.7

-6.3

-5.0

Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22E

Q4 FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22

Q4 FY20

Q4 FY21

Q4 FY22

North India Tea

South India Tea

Arabica Coffee

Robusta Coffee

UK GDP growth

India GDP growth

US GDP growth

Kenya Tea

•

India’s GDP growth for the quarter got impacted due to the third wave of the pandemic. However, recovery was sharp led by a faster opening up. Persistent and unprecedented inflation across consumer categories is a key monitorable going forward.

• US & UK GDP growth estimates remain strong led by low unemployment level, pickup in labor force participation, improved corporate profits and investments. Monetary tightening and inflation which has been exacerbated by the geopolitical situation remain the key watch-outs going forward.

• The tea prices in India have come off significantly from the peak levels. South India tea prices

saw a slight uptick sequentially but were down significantly YOY.

• Kenya tea prices continued to rise QoQ and YOY led by the minimum reserve regime

introduced by the Government.

• Arabica and Robusta coffee prices climbed to new highs, led by bad weather and supply chain

disruptions caused by geopolitical developments.

Source: North India and South India tea auction (Tea Board of India) | Mombasa tea auction (EATTA) | International Coffee Exchange

Source: BCG, NSO, tradingeconomics.com and Kotak Institutional Research

Market context – category value growth rates

Canada

India

+6.7%

+3.2%

-5.5%

Base period growth rates

+6.1%

0.2%

-2.2%

-6.4%

-3.1%

-18.2% -2.8% +3.7%

-15.7%

+6.7%

-12.9%

+8.8%

+17.4%

US Regular Black Tea

US Bags Coffee

US K-cup Coffee

Source: Nielsen: 12 weeks (Value) – Mar’22

UK Regular Black Tea

UK Fruit & Herbals Tea

Canada Regular Black Tea

India Branded Tea

Canada Speciality Tea

• Regular black tea category saw a decline

in international markets, driven by increased mobility that led to a fall in at- home consumption.

• Non-black tea (Fruit & Herbal, Specialty,

Decaf, Cold Infusions, etc.) saw a marginal uptick in Canada and a decline in the UK, on a high comparator that benefitted from increased home consumption last year.

•

India branded tea category grew, on a high comparator of last year. The value growth was evenly driven by volume and pricing.

• US Coffee (both Bags and K-cups) grew

with K-cups growing much faster.

India Packaged Beverages

Continuing the innovation agenda , we launched an Adrak flavoured tea under the Tata Tea Agni Masterbrand, in core markets of the North.

Chakra Gold franchise saw a second consecutive year of Market Share gains in TN

Performance commentary

+6%

FY22 Revenue Growth

• Revenue for the quarter declined

• EBIT margin for India Beverages (old

4%, with 2% volume growth, on an elevated base that saw 53% revenue growth and 23% volume growth last year.

segment classification) was up 400bps YoY in FY22.3

• Continue to maintain #1 position in

Ecommerce.

+3%

FY22 Volume Growth1

~100bps Market Share gain2

• Revenue for the year grew 6% lapping 32% growth in FY21.

• Coffee Volume grew 44% YoY with a revenue growth of 46% during FY22.

Other updates

• Kanan Devan became the 2nd largest brand in Karnataka (by volume).

• Premium portfolio (Chakra, TT Gold,

Chakra Care, Gold care, etc.) continues to gain market share.

• TTP is strengthening its foothold in

key markets of Maharashtra and Bihar led by effective hyperlocal campaigns and improved distribution.

1 Tea volume growth 2 Source: Nielsen – Value share, Moving Annual Total (MAT) basis Mar’22 vs Mar’21 3 estimated on proforma basis with allocation of common costs of India business in proportion to Sales

India Foods

Tata Q launched 6 new variants - Hot & Spicy Noodles, Pepper Masala Noodles, Classic Chicken Seekh Kebab, Spicy Jalapeno Chicken Sausages, Cheesy Pasta with Corn & Gujarati Daliya Khichdi.

Performance commentary

• Salt revenue grew 15% during the quarter, on a high base of last year (Q4FY21 salt grew 26%).

• Tata Sampann continued its strong trajectory in Q4, growing volumes by 30%, bringing FY22 volume growth to 28%.

• For the year, salt grew 17%, after

growing 17% in FY21.

• Rock salt delivered exceptional growth of 82%; with the overall premium salts portfolio growing 27%.

• EBIT margin for India Foods (old segment classification) declined 700bps YoY in FY22. 3

• Profitability for the year was

impacted by inflation in input costs, higher A&P, and continued investment in new businesses.

+19%

FY22 Revenue Growth

+8%

FY22 Volume Growth

Newly launched Tata Salt Immuno offers consumers a category-first unique proposition of added Zinc, Driving premiumization for the portfolio and upgrading consumers to a more Value-Added offering

400bps Market share gain1

Other updates • Tata Sampann Dry Fruits pilot

launch has been a success. This marks the extension of the Tata Sampann master brand to a new and premium category.

• Poha delivered exceptional growth

of >100% YoY.

• Tata Q became the #2 Ready-to-

Eat (RTE) brand in India 2

1 Source: Nielsen – Value share, Moving Annual Total (MAT) basis Mar’22 vs Mar’21 2 Source – Nielsen RMS MAT Dec21 All India Urban 3 estimated on proforma basis with allocation of common costs of India business in proportion to Sales

NourishCo (100% Subsidiary)

221%

186% 191%

191%

151%

344Cr

FY22 Revenue

Y P

f o % a s a s e l a S

109%

82%

64%

Q1 FY21

Q2 FY21

Q3 FY21

Q4 FY21

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

TGP launched a new TVC for the new jelly drink in core markets.

+83%

FY22 revenue growth

3.2x Tata Water Plus#

Performance commentary • Revenue for the quarter grew

• The business unlocked new

51% on a high base that saw 86% growth last year.

geographies and markets with good consumer acceptance.

• For the year, revenue grew 83% albeit on a low base that was impacted by the pandemic, bringing 2-year CAGR to 38%.

• The growth was broad-based

across products and geographies.

• Himalayan grew 1.8x and reached

breakeven at an EBIT level in FY22, the first time since its inception.

•

Inflation is persisting across freight and packaging materials which was partly mitigated by cost-saving initiatives and net pricing actions during the quarter.

Other updates

• Himalayan registered strong growth in E-commerce channel and added key institutional accounts during the quarter

• GTM expansion and capacity expansion plans on track.

#215% revenue growth during the year

Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary)

+11%#

FY22 Revenue Growth

-3%

FY22 Plantations Revenue Growth

+19%

FY22 Extractions Revenue Growth

Tata Coffee won several awards for Health & Safety and Environment friendly and sustainable practices implemented at its various units

Tata Coffee Instant Coffee Division (ICD) also received Bronze Award for HSE Excellence by CII-SR

Performance commentary • Revenue for the quarter grew 7% led by coffee plantations & the extractions business in Vietnam.

• Revenue for the year continued on a strong trajectory, up 11%, after growing 14% in FY21.

Extractions

• Overall extraction business grew

19% in FY22 driven by both Vietnam extractions (premiumization and higher volumes) and domestic extractions, despite several challenges in the operating environment

Plantations

• Growth in Robusta coffee and Pepper revenue offset lower revenue in tea plantations, where realizations came off vs last year highs.

Other updates

• Record production and sales in

•

Vietnam despite disruption caused by COVID-induced lockdowns.

India extractions business (Instant . coffee division) recorded 2nd highest ever sales.

• Vietnam plant operated at 98% capacity utilization for the year

• Continued the focus on cost-saving initiatives to mitigate some of the inflationary pressures.

# Tata Coffee including Vietnam. Does not include EOC

Tata Starbucks (JV)

Entered 4 new cities during the quarter, including Goa, Bhubaneshwar, Nashik, and Guwahati

Strong sequential recovery

275%

118% 120%132%139% 131%133%

129%

110%

‘

83%

64%

36%

o t d e x e d n

i s e l a S

e n

i l e s a b 0 2 Y F

Performance commentary

96%

Stores re-opened*

• Revenue grew 32% during the

• Added 50 new stores and entered 8

quarter, partially impacted by the third wave of COVID-19. Growth back on a strong trajectory led by swift re-opening post the third wave.

new cities during the year.

• Q4FY22 marked the highest number of store openings for Tata Starbucks in a quarter, at 23 new stores.

268

Total Stores

Cities

• Revenue for the year grew 76%,

despite two waves of the pandemic, bringing the 2-year CAGR into positive territory.

• Delivery channel salience remained

ahead of pre-Covid levels.

Other updates •

‘Starbucks 190’ promotion on delivery on Republic day helped recruit new customers.

• Two flagship locations opened

during the quarter including Golden Temple Complex in Amritsar and Brahmaputra Riverfront store in Guwahati (pic above).

• The business was EBITDA positive

for the quarter.

• Limited time offerings (LTO), new offerings and merchandise led to higher productivity and improved offtakes.

* As of end of Mar’22

35 35

TCPL UK received Best Supplier Service Award by Tesco

Partnered with Oscar wining actor, Jim Broadbent, who came to Tetley HQ to try out new and specially curated blend of tea

Performance commentary

• Revenue for the quarter grew 5%#

• We gained market share in F&H

with 6% volume growth.

• Revenue for the year declined 2%#

on an elevated base that saw pantry loading last year. 2-year revenue CAGR was marginally positive. #

•

• Teapigs continued its strong

trajectory growing 7% in FY22, after growing 18% last year.

category driven by strong performance of Good Earth, Tetley Supers and Tetley Herbals innovations.

In terms of channels, Mainstream OOH, Specialty and Wholesale continue to see good traction, offsetting the decline in Grocery.

-2%

FY22 Revenue Growth#

+7%

FY22 Teapigs revenue Growth^

19.4%

Value Market share* (in everyday black)

Other updates • Newly launched Teapigs Decaf blend secured key listings and received great response and offtakes on D2C.

• D2C channel of Teapigs and Tetley off to a good start and building better consumer engagement

# Constant currency including teapigs ^ Constant currency * Source: Nielsen – Value share, Moving Annual Total (MAT) basis – Mar’22

USA

Celebrated 50 years of Good Earth with limited edition range – Chai & Lemongrass tea.

Introduced 3 new Barista Blends SKUs and a new campaign around “Be Your Own Barista” to build brand awareness and trial

Performance commentary

• Coffee: Revenue for the quarter

• Tea (excluding Empirical):

Flat

FY22 Coffee Revenue Growth^

grew 11% (constant currency) driven by strong performance in K-cups

• Revenue for the year stayed flat

(constant currency) after growing 9% in FY21.

-8%

FY22 Tea Revenue Growth^

• Despite unprecedented inflation in coffee prices during the year, EBIT for EOC grew YoY, led by a proactive hedging approach and price increases.

Revenue declined 8% (constant currency) in FY22 on an elevated base of 16% growth in FY21.

Initiated the integration of 3 tea brands, similar to the UK.

Innovations led by Good Earth Sensorial blends, Tetley Flavors of Britain and Tetley Irish Breakfast continue to perform well.

•

Other updates

• Mainstream black tea category in the

US continues to lose share to Specialty category.

• During the quarter, we saw robust performance of 32 count and 48 count K-cups in EOC.

4.3%

*Coffee Bags Market Share

^ Constant Currency, excluding Foodservice (Empirical) Source: *Nielsen – Value share, Moving Annual Total (MAT) basis – Mar’22

Canada

Tetley emerged as the Most Trusted Brand for 8th consecutive year

Executed influencer campaign of teapigs along with cross-promotion with COBS bread – resulting in 1.3 million impressions

Performance commentary

• Revenue for the quarter declined 1% (constant currency) on a high base (6% growth in Q4FY21).

• Tetley Supers range continued to

• Revenue declined 7% (constant

currency) in FY22 due to pantry up- stocking that led to 15% growth (constant currency) in FY21.

• Tea category in Canada is seeing a decline YoY, lapping an extremely strong base of COVID induced in- home consumption

Other updates • Launched our D2C website

• During the year, the ecommerce channel performed well and delivered double digit growth.

• Continued with the integrated

media campaign for Super Teas in Fall/ Winters to build trial and awareness

-7%

FY22 Revenue Growth^

-9%

FY22 Revenue growth in Specialty tea^

27.8%

*Market share

^ Constant Currency Source: *Nielsen – Value share, Moving Annual Total (MAT) basis – Mar’22

39 39

Highlights – for the quarter ended Mar’22

m o r f

e u n e v e R

s n o i t a r e p o

A D T B E

Standalone

(in ₹ Cr)

Consolidated

(in ₹ Cr)

REVENUE:

1,850

+5%

1,948

3,037

138

3,175

constant currency +6%)

• Revenue at Rs 3,175 Crs, net of exits +6% (at

•

India Branded Business +6%

International Business (U/L +6%), net of

+5%

[6%]#

exits

• Non branded Business +6% (U/L)

Q4FY21

Growth

Q4FY22

Q4FY21

Growth

Q4FY22

• EBITDA at Rs 458 Crs, (+45%)

146

288

317

142

+102%

141

458

+45%

Q4FY21

Growth

Q4FY22

Q4FY21

Growth

Q4FY22

# [like for like growth net of International food service business exits]

•

India Branded - Gross Margin improvement

India Beverages

partly

offset

inflationary headwinds in India Foods, and

investment in new businesses.

•

International Business - improved margins,

lower weight of A&P and other expense.

• Non-Branded - lower margin, mainly led by

lower realization in tea plantations.

Financials: Standalone

Quarter ended Mar’22

Q4FY22

Q4FY21

Change %

Profit and Loss statement

(all nos. in ₹ Crores)

1,948

288

14.8 %

253

13.0 %

283

(11)

(66)

206

1,850

142

7.7 %

109

5.9 %

129

(14)

(33)

5 % Revenue from operations

102 % EBITDA

132 % EBIT

119 % PBT before exceptional items

Exceptional items

Tax

152 % PAT

10.6 %

4.4 %

Profit after tax on a standalone basis for the quarter improved by 152% YoY on account of following : • •

Gross margin improvement that was partly offset by Higher investment behind brands and higher other expenses, led by inflation.

Financial Year ended Mar’22

FY22

7,932

1,111

14.0 %

969

12.2 %

1,178

(27)

(265)

886

11.2%

FY21

Change %

7,154

919

12.8 %

792

11.1 %

897

(61)

(217)

620

8.7 %

11 %

21 %

22%

31 %

43%

Financials: Consolidated

Quarter ended Mar’22

Q4FY22

Q4FY21

Change %

Profit and Loss statement

(all nos. in ₹ Crores)

3,175

458

14.4 %

386

12.2 %

403

(19)

(95)

289

9.1 %

239

3,037

317

10.4 %

251

8.3 %

262

(64)

(65)

133

4.4 %

5 %1

Revenue from operations

45 % EBITDA

54 % EBIT

54 % PBT before exceptional items

Exceptional items

Tax

117 % PAT

222 % Group Net Profit (incl. JVs & Associates)

Group Consolidated Net Profits for the quarter grew 222% YoY on account of following : • • • •

Revenue growth in both branded and Non-branded business Gross Margin improvement in India Beverages Improved performance in International Business, lower A&P and other expense Lower exceptional items

1 like for like growth net of International food service business exits in Q4FY22 was 6% 2 like for like growth net of International food service business exits in FY22 was 9%

Financial Year ended Mar’22

FY22

12,425

1,749

14.1 %

1,471

11.8 %

1,508

(52)

(377)

1,079

8.7%

1,015

FY21

Change %

11,602

1,569

13.5 %

1,315

11.3 %

1,342

(31)

(317)

994

8.6 %

930

7 %2

11 %

12 %

9 %

Segment-wise performance – Q4FY22

Particulars

₹ Cr

Segment Revenue

Segment Results

Q4 FY22 Q4 FY21 Change

(%)

India Business4

1,954

1,842

258

141

83%

International Business

890

880

1%1

128

109

18%

Revenue - Branded business

69% India Business 31 % International Business

Total Branded Business

2,844

2,722

4%2

386

249

55%

Segment results – Branded business

Non Branded Business

345

324

(24)%

Others / Unallocated items

(13)

(8)

(31)

(90)

Total

3,175

3,037

5%3

385

198

94%

67 % India Business

33 % International Business

NOTE: The Group has revised the composition of its reporting segments to align with the new structure in place w.e.f. FY22 1. Like for like revenue growth for International business, net of International foodservice business exits, +6% in constant currency 2. Like for like revenue growth for Overall branded business, +6% in constant currency 3. Like for like revenue growth for Total Group, +6% in constant currency 4. Revenue and results for the quarter, for India Beverages and India Foods on a proforma basis, with an estimated allocation of common costs:

•

India Beverages : Revenue: FY22 Rs 1190 Crs (FY21:Rs 1200 Crs) ; Results: FY22 Rs 199 Crs (FY21: Rs 54 Crs) - (Middle East has been regrouped from India Beverages in FY21 to International tea from FY22) India Foods: Revenue: FY22 Rs 764 Crs (FY21: Rs 642 Crs) ; Results: FY22 Rs 58 Crs (FY21: Rs 87 Crs)

Segment-wise performance FY22

Particulars

₹ Cr

Segment Revenue

Segment Results

FY22

FY21 Change

FY22

FY21 Change

(%)

India Business4

7,914

7,003

13%

1,012

876

16%

International Business

3,336

3,508

(5%)1

478

467

Revenue - Branded business

70 % India Business

30 % International Business

Total Branded business

11,249

10,512

7%2

1,490

1,343

11%

Segment results – Branded business

Non branded business

1,214

1,122

Others / Unallocated items

(38)

(32)

(127)

(123)

Total

12,425

11,602

7%3

1,456

1,311

11%

68 % India Business

32 % International Business

NOTE: The Group has revised the composition of its reporting segments to align with the new structure in place w.e.f. FY22 1. Like for like revenue growth for International business, net of International foodservice business exits, -2% in constant currency 2. Like for like revenue growth for Overall branded business, +8% in constant currency 3. Like for like revenue growth for Total Group, +8% in constant currency 4. Revenue and results for the year, for India Beverages and India Foods on a proforma basis, with an estimated allocation of common costs

•

India Beverages: Revenue: FY22 Rs 5001 Crs (FY21: Rs 4562 Crs); Results : FY22 Rs 740 Crs (FY21: Rs 488 Crs) - Middle East has been regrouped from India Beverages in FY21 to International tea from FY22) India Foods: Revenue : FY22 Rs 2913 Crs (FY21: Rs 2442 Crs) ; Results : FY22 Rs 272 Crs (FY21: Rs 388 Crs)

To conclude Macros  The recovery following the third wave of the pandemic in India has been swift. The geopolitical situation is exacerbating inflationary pressures.

Inflation and its impact on consumer behaviour is going to be the key monitorable going forward in India.

 With the normalization of activity in our key international markets (US, UK, Canada), the in-home consumption is tapering off and the impact of

broad-based inflation needs to be monitored.

Business



In FY22, we have continued to deliver competitive growth in our core businesses - gaining market share both in tea and salt.

India Packaged Beverages business has seen a return to normalized margins and moderation of in-home consumption. In terms of growth, we

are cautiously optimistic, given the macro environment. We will continue to focus on execution to drive growth.

 For the year, the foods business has seen good volume growth, driven by both Salt and Sampann. However, we will be lapping an extraordinary

comparator next quarter. In terms of margins, we expect the cost pressure to continue for a while.

 Our Out Of Home businesses i.e. both Starbucks & NourishCo have delivered a robust performance, despite two waves of the pandemic during

the year. We expect continued momentum in both these businesses, subject to no new waves of the pandemic.

 We will continue to focus on growing Tata Soulfull and drive portfolio expansion. TSFL is on track for International expansion by Q2/Q3.



In the international business, with a largely normalized operating environment, the focus will be on executing against plans, especially the

3 -brand strategy in tea. We will also be taking pricing actions as appropriate.

 Given the inflation and investments required for some of the new businesses, we will continue to optimize margins at the Consolidated level for

the company.

Awards & recognition – Q4FY22

1. Corporate Governance Featured in the ‘Leadership’ category on the Indian Corporate Governance assessment for second year in a row by IiAS – a testimony to the robust corporate governance practices of the Company.

2. Grocery Aid Award

TCPL got recognized with a Gold at Grocery Aid Award for the support extended to Grocery Aid UK – a charity that offers emotional, financial and practical assistance to UK’s grocery industry and its workers

3. Unlocking synergies TCPL, Tata Chemicals and Tata Insights & Quants came together to optimize Rail Logistics Planning for Salt and Chemicals and won the Best Paper award at 8th International Conference on Business Analytics and Intelligence (ICBAI) organized by IIM B, IISC

4. Environmental Leadership Tata Coffee won four awards at the OHSSAI HSE Excellence and Sustainability Awards 2021, a recognition of its efforts and commitment toward the environment and H&S of its employees.

5. Best Risk Management Practices TCPL won the Masters of Risk award for the 3rd consecutive year in the FMCG Sector Large Cap category at the 8th edition of the CNBC-TV18 India Risk Management Awards

Shareholding information

Quarter Ended June’20

Stock data

BSE Ticker

NSE Ticker

500800

TATACONSUM

Market Capitalization (March 31, 2022)

₹ 716.4 bn

Number of Shares Outstanding

921.6 Mn.

Pattern as on 31st March, 2022

Others 5%

Individual 22%

MFs/ UTI/ AIFs 6%

Insurance Companies/ Banks 7%

Promoter and promoter Group 35%

Foreign Institutional Investors 25%

Thank You

For more information

Nidhi Verma Head – Investor Relations & Corporate Communication nidhi.verma@tataconsumer.com

For media queries Satya Muniasamy satya.muniasamy@tataconsumer.com

Write to us at investor.relations@tataconsumer.com

Call us at +91-22-61218400

Last 10-year financials are available on Historical financial data

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