TATACONSUMNSE20 October 2022

TATA CONSUMER PRODUCTS LIMITED has informed the Exchange about Investor Presentation

TATA CONSUMER PRODUCTS LIMITED

October 20, 2022

National Stock Exchange of India Limited Exchange Plaza, C-1, G Block Bandra Kurla Complex, Bandra (E) Mumbai 400 051 Scrip Code – TATACONSUM

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400001

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 half year ended September 30, 2022

Dear Sir/Madam,

We enclose a copy of the Press Release and Investor Presentation with regard to the Company's Unaudited Financial Results for the quarter and half year ended September 30, 2022.

We request you take this on record and treat the same as compliance with the applicable provisions of the Listing Regulations.

Thanking you,

Yours Sincerely,

For Tata Consumer Products Limited

Neelabja Chakrabarty Company Secretary & Compliance Officer

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

Oct 20th, 2022

Results for the Quarter ended 30th September 2022

Consolidated Results:

Revenue from Operations for the quarter at Rs 3,363 Crs up 11%. For six months ended, Revenue at Rs 6,690 Crs up 11%

Consolidated EBITDA for the quarter at Rs 438 Crs, grew 4% and for six months ended EBITDA at Rs 897 Crores grew 9%.

Group Net Profit for the quarter at Rs 389 Crs grew 36%, Group Net Profit for six months at Rs 666 Crs grew by 37%

Tata Consumer Products Ltd. today announced its results for the quarter ended 30th September 2022.

For the quarter, Revenue from operations increased by 11% (10% in constant currency) as compared to the corresponding quarter of the previous year. Profit before exceptional items and tax at Rs 370 Crores is 2% higher reflecting the impact of inflationary pressures, weakness in currency and some lag in pricing in the International business. Group Consolidated Net Profit at Rs 389 Crores is higher by 36%

Some of the key Business updates are:

India

• For the quarter, the India Packaged Beverages business recorded 7% revenue decline due to pricing corrections and overall softness in the category. We continued to record volume market share gains in branded tea.

• Coffee continued its strong performance with a revenue growth of 39% during the

quarter.

• We continued the momentum on innovation with the launch of Tata Tea Gold Saffron- signature Assam tea with natural saffron flavour, and the launch of a new season range for Sonnets by Tata Coffee- our premium coffee range.

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

• We continued to drive premiumisation, as the premium tea portfolio continued to

grow faster than the base portfolio.

• Tata Tea Premium celebrated 75 years of India’s Independence with a special collection of tin cans, teacups, and plates commemorating great moments of pride from India’s post independence history.

• Tata Tea Gold launched its festive edition series celebrating the various art forms of West Bengal, bringing alive the joy of Durga Puja. Chakra Gold Tea launched an exclusive campaign in AP & Telangana during Navaratri supporting Kondapalli toys, an art form with a rich tradition in these states. Tata Tea Kanan Devan recorded its highest-ever volumes in Kerala led by on-ground activations during Onam.

• For the quarter, the India Foods business registered 29% revenue growth despite

an elevated base that saw 23% growth in the same period last year.

• The salt portfolio continued its momentum and recorded double-digit revenue growth during the quarter despite a high base in Q2 last year. The salt portfolio also continued to record market share gains.

• Tata Salt Immuno was launched with new & improved packaging to better showcase the Zinc proposition. The brand was successfully launched in newer markets in the western part of the country.

• The Tata Sampann portfolio recorded strong double-digit growth led by broad

based performance across pulses, poha and spices.

• Tata Sampann launched a new campaign with Manoj Bajpayee to build awareness about the goodness of unpolished pulses and the promise of Tata Sampann. https://www.youtube.com/watch?v=WVF0kjHuUrA

• Tata Sampann spices launched a customized mix for AP and Telangana to better serve the South Indian market. The spices range expanded its portfolio in India into high-value spices with the launch of Asafoetida (Hing).

• Tata Sampann Dry Fruits is scaling up well with strong growth and share gains

across e-commerce platforms.

• Tata Consumer Products launched another addition to its protein platform with the launch of Tata GoFit- plant protein powder, a health supplement range for women who are on their journey to be fitter every day. Tata GoFit has been specially developed for women and has an innovative and differentiated formulation with probiotics. digestion-friendly

gut-friendly

enzymes

and

https://www.tataconsumer.com/news/tata-consumer-products-enters-health- supplements-segment-launches-plant-protein-powder-under

• We relaunched our Ready-To-Eat (RTE) business (formerly Tata Q) under the new brand name of Tata Sampann Yumside with a revamped and expanded portfolio. This includes reformulation of existing products to enhance overall consumer experience and expansion into the ethnic Ready to Eat (RTE) category. The brand will also be launching ethnic innovations in the Ready to Cook (RTC) category. https://www.tataconsumer.com/news/tata-consumer-products-renovates-and- rebrands-tata-q-tata-sampann-yumside-new-and-larger-range

• Tata Soulfull delivered strong growth during the quarter. Tata Soulfull Masala Oats+, a ‘better for you’ offering with oats and millets, saw good consumer response across key channels. A new enhanced Tata Soulfull millets muesli with 25% millets was launched to further strengthen the health proposition and provide a better crunchier taste experience to consumers.

• NourishCo sustained strong growth momentum during the quarter with a 63% revenue growth led by growth across products and geographies. Himalayan recorded excellent growth and continued to remain EBIT positive during the quarter. Himalayan honey and preserves saw good consumer response. The Himalayan brand celebrated ‘Himalayan Day’ by partnering with Ladakh marathon for the world’s highest Ultra Marathon ‘ Himalayan Khardungla Challenge 2022’ with the objective of giving back to its source and supporting the cause of protecting local communities affected by melting Himalayan glaciers in the Ladakh region. https://www.tataconsumer.com/news/himalayan-celebrates-himalayan- day-support-communities-affected-melting-himalayan-glaciers

• We reached new milestones in our Sales & Distribution transformation agenda. Our direct reach is now 1.4 million outlets and the number of our super stockists has grown by 20%

• We continued to see strong growth in alternate channels, with Modern Trade channel growing 18% YoY. The Ecommerce channel grew 40% contributing to 9.2% of India business sales. Additionally, alternate channels continued to support the innovation agenda with 11% of Ecommerce revenue coming from NPD (New Product Development) sales during the quarter.

International

• For the quarter, the International Beverages business revenue grew 7%

•

In the UK, TCPL became the third largest branded tea company by market share, displacing Twinnings.

• Teapigs in UK launched an iced tea range supported with ‘Summer of teapigs’

campaign across print and digital platforms.

• Eight O’ Clock (EOC) coffee in the USA recorded share gains, with EOC K cups

growing ahead of the category.

• The newly launched Tetley Sweet Tea Cold Brew strengthened our presence in the specialty tea segment in the USA. Tetley Irish Breakfast tea continued to do well led by distribution gains and ongoing promotion activity.

•

In Canada, launched a new range of teas under Tetley Live teas. The range features 3 variants – Live Cool (Peppermint spearmint), Live Bold (Cinnamon chai rooibos) and Live Calm (Camomile, spearmint, orange)

Tata Starbucks

• Tata Starbucks recorded strong revenue growth of 57% for the quarter, led by

normalized store operations and a revival in out of home consumption.

• Started its 10th anniversary celebration with ‘Brew your own Starbucks’ campaign giving customers a chance to create beverages to be featured on the menu.

• Opened 25 new stores during Q2, the highest ever number of quarterly store openings in its history and entered 5 new cities. This brought the total number of stores to 300 across 36 cities.

Awards Update

• Tata Consumer Products has been ranked in Kantar India as Brand Footprint

Report 2022 as the 5th Most Chosen FMCG Brand in India.

• Tata Tea was awarded as the ‘Most Purposeful FMCG brand’ in India by Kantar

Brandz 2022 Most Valuable Indian Brands.

• Tata Tea Chakra Gold won the Brand of the Year at Exchange4media’s Indian

Marketing Awards South 2022.

• Tata Consumer Soulfull emerged as the winner of exchange4media D2C award at

the e4m D2C Revolution Awards 2022.

• Tata Consumer Products’ Beverages packeting centres in Gopalpur & Kellyden won Silver in the India Green Manufacturing Challenge 2021-22 by the International Research Institute for Manufacturing.

• Tata Consumer Products won Gold for the Best Business/ Financial Content (Print) at the India Content Leadership Awards & Conference 2022 by Inkspell & India Creative Industries Council.

Sunil D’Souza, Managing Director & CEO of Tata Consumer Products said

“We delivered another quarter of double digit revenue growth while balancing margins despite inflationary pressures, weakness of currency and some lag in pricing in International Markets.

While the branded tea category in India is tepid, we continued to gain volume market share. In our other core business of salt, despite significant inflation-led pricing, we have continued to gain market share and strengthen our leadership position. We have accelerated the pace of innovation this year with the number of new launches being twice as much as the same period last year. Our new engines of growth- Tata Sampann, NourishCo, Tata Soulfull have delivered significant growth and are expanding their portfolio and reach. Our out of home businesses- NourishCo and Tata Starbucks have recorded strong growth during the quarter.

While unprecedented inflation & adverse currency movements in our International business have weighed on our margin this quarter, we will be driving structural cost- saving initiatives to improve the trajectory going forward. Our transformation agenda to become a leading FMCG company continues to be on track. We are making consistent progress in expanding our reach across channels, strengthening our innovation capabilities, and embedding digital transformation across the organization. We will continue to stay focused on growth while fuelling our new businesses.”

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 and Tata Soulfull. In India, Tata Consumer Products has a reach of over 201 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.

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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 ended September 2022

20th October 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 ~₹74k* Cr

Reach north of 200mn households in India and distribute to ~2.7mm 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 30th Sep 2022

Executive Summary

 During the quarter, Consolidated Revenue grew 11% YoY (10% constant currency), despite a difficult demand environment. On a 3-year CAGR

basis, this translates to ~13% revenue growth.

 Consolidated EBITDA for the quarter grew 4%, with EBITDA margin down 100bps YoY, impacted by International business profitability.

Consolidated EBITDA for H1FY23 grew 9%.

 During the quarter, India business1 grew 9% driven by

o India Beverages2 business decline of 2%, with a 1% volume decline, on a 3-year CAGR basis, the business grew revenues at 14% p.a. o India Foods3 business growth of 29%, with flat volumes, on a 3-year CAGR basis, the business grew revenues at 22% p.a.



International business revenue was up 7% during the quarter (+6% constant currency).

 EBITDA for the India business grew 24% YoY however inflationary pressures, currency weakness, and lag in pricing in the International business

dragged down the Consolidated EBITDA.

 Volume market share gains continued in both the core categories of tea & salt, even as value market share in tea declined marginally due to price cuts.

 Growth businesses continued their strong trajectory, growing 50% YoY during the quarter.

 This year we have accelerated our innovation efforts, with # of NPD launches in H1 at 2X last year.

 We have relaunched our Ready-To-Eat (RTE) business (formerly Tata Q) under the new brand name of Tata Sampann Yumside with a revamped and

expanded portfolio. The portfolio will be launched as Tata Raasa in the International markets.

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

6 6

Key Businesses snapshot – Q2FY23

India Business

International Business

India Beverages

India Foods

US Coffee

International Tea

Tata Coffee (incl. Vietnam)

Consolidated

1,238

-2%

-1%

922

29%

376

463

342

3,363

25% 16%

-4% -0%

41% 39%

11% 10%

-2%

-5%

-1%

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 Smartfoodz (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)

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

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

Key Businesses snapshot – H1FY23

India Business

International Business

India Beverages

India Foods

US Coffee

International Tea

Tata Coffee (incl. Vietnam)

Consolidated

2,547

1,758

732

944

644

6,690

24%

-1%

23% 16%

-1% 2%

33% 31%

11% 10%

-2%

-4%

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 Smartfoodz (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)

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

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

Group Performance at a glance – Q2FY23

₹ 3,363 Cr.

₹ 438 Cr.

₹ 370 Cr.

₹ 389 Cr.

₹ 303 Cr. ~₹ 2,013 Cr.

Revenue

EBITDA

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

Net Cash$

Growth (Y-on-Y)

11%[10%] #

Margin%

Margin expansion (Y-on-Y)

EPS

EPS Growth (Y-on-Y)

# [ ] is the constant currency growth

^ before exceptional items

13.0%

11.0%

36%

11.6%

9.0%

-80 bps

-100 bps

+220 bps

-80 bps

3.56 (EPS)

+22% (EPS)

$ Cash and Cash equivalents (net of total borrowings) as at September 30, 2022

Group Performance at a glance – H1FY23

₹ 6,690 Cr.

₹ 897 Cr.

₹ 774 Cr.

₹ 666 Cr.

₹ 598 Cr. ~₹ 2,013 Cr.

Revenue

EBITDA

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

Net Cash$

Growth (Y-on-Y)

11%[10%]#

Margin%

Margin expansion (Y-on-Y)

EPS

EPS Growth (Y-on-Y)

# [ ] is the constant currency growth

^ before exceptional items

13.4%

10%

11.6%

37%

10.0%

19%

8.9%

-20 bps

+0 bps

+190 bps

+60 bps

6.33 (EPS)

29% (EPS)

$ Cash and Cash equivalents (net of total borrowings) as at September 30, 2022

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

Making consistent progress on reach

Strong impetus reach

Alternate channels fuelling Growth and Innovation agenda

0.6M

Mar’22

Sep’22

+18% YoY

Direct reach

Super stockists1

Modern Trade

E-commerce continues to be a strong pillar & testing ground for NPDs

9.2% of Sales

YoY

NPD contribution

Ecommerce

1 Sep’22 vs Mar’22 All numbers above are for Q2FY23, and growth is for Q2FY23 vs Q2FY22

Powering our brands – India Packaged Beverages

Tata Tea Premium, celebrated 75 years of India’s Independence with a special collection of Tin cans as well as Teacups and plates commemorating great moments of pride from India’s post- independence history

Tata Tea Gold brought to life the story of Premalata Agarwal, the first Indian woman to climb 7 summits. This TVC is the first in a series of films made to bring alive real and inspiring stories of today’s women.

Tetley activated the campaign for Tetley Naturally Sweet variant Mango, which addresses the biggest barrier in the green tea category – taste.

TTG care as % of TTG

Coffee Sales (Val)

All numbers are for Q2FY23, and growth is vs Q2FY22 1 Source: Nielsen –MAT basis, Aug’22 vs Aug’21

Market share - Tea

Volume : +46 bps, Value: -20 bps1

Powering our brands – India Foods

Tata Sampann launched a new campaign with Manoj Bajpayee to build awareness about the goodness of unpolished pulses and the promise of Tata Sampann

Tata Sampann Spices expands its offerings to Asafoetida (Hing) The launch helps us expand into high-value spices

Market share

Salt 128bps1

Tata Sampann Spices has launched a customized mix for AP and Telangana, to better serve the South India market

1 Source: Nielsen –Value Share, MAT basis, Aug’22 vs Aug’21

Continuing the momentum on innovation

Tata Tea Gold Saffron

Sonnets premium R&G coffee

Tata Sampann Shahi Besan Plus

Tata Sampann Hing

Tata Soulfull Millet Muesli

Signature Assam tea with natural ‘Saffron’ flavour to give consumer the experience of luxury tea

Launch of new season range with revised nomenclature and Tag architecture

Launch of Blended besan variant for crispy texture

Launch of Hing in pure spices range to add to our existing portfolio

Launch of the new enhanced Tata Soulfull millet Muesli with 25% millets (up from 13% earlier)

Tata Q relaunch - Tata Sampann Yumside & Tata Raasa

Post acquisition of TSFL, the strategic direction on the ready foods portfolio

was to establish leadership in the domestic market and foray into international

markets

Domestic portfolio revamped in line with category and consumer needs

 Re-launch as “Tata Sampann Yumside” to leverage Sampann brand equity

 Proposition crafted to address category consumption barriers - “Yum Meals

with Home-style Goodness”

 Portfolio refresh - revamped RTE portfolio by improving recipes and

expanding into the ethnic range

 Entered the fast-growing category of Ready-to-Cook (RTC)

Launch Indian RTE in International markets under the brand “Tata Raasa”

•

Indian exports of RTE is a significant market growing in double digits

TCPL will foray into the segment with a new brand “Tata Raasa” starting

with the US, UK, and Canada in Q3 FY23

18 18

A look at our F&B platforms

Current core

Pantry platform

Liquids platform

Mini-meals platform

Horizon 3

Tea, Coffee

Pulses, spices

Water

Breakfast cereals

Protein platform

Salt

Besan, poha, other staples

RTDs

RTEs

RTCs

Dry Fruits

Snacks

19 19

Another addition to the Protein platform

The Indian protein supplement market was estimated at INR 2000Cr in ‘211

It is expected to grow at a CAGR of ~18% over 2022-27, reaching INR 5000Cr by ‘271

The plant-based protein supplement market growth is being driven by 3 key factors:

Growing interest in ‘feel-good’ fitness beyond physicality

Active search for more ‘natural’ alternatives

Increase in understanding of nutraceuticals

The category is on a structural uptrend enabled by digital

A 2017 survey shows that 73% of Indians are deficient in protein2

1 iMarc Analysis, Feb 2022 2 Observer Research Foundation 3 Internal and external estimates

50%+ of the population in the age bracket of 15-49 years is digitally connected with global trends and looking to improve their lifestyle3

~40%+ of the category sells digitally on marketplaces, D2C sites and health stores1

New engines of growth

YoY Revenue growth – Q2FY23

ESG Report – For Better Living

For the report click here

22 22

Macro and commodity overview

Global GDP growth trend

Commodity price trend

Tea Prices

Coffee Prices

20.1

24.5

12.2

6.9

8.4 4.9

5.4

6.6

5.5

-2.9

-7.7

0.7 -2.3

-6.6

2.5

0.5

-6.3

-5.0

194

233

246

229

224

$c / KG

8.7

3.7

4.1

13.5

4.4

6.2

2.2

1.8

1.5

188

187

212

149

115

100

102

₹ / KG

195

₹ / KG

115

101

104

180

210

$c/ LB

Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23E

Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23

Q2 FY21

Q2 FY22

Q2 FY23

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 is expected to be in the normative range due to normalized economic activity. Inflation however remains outside the target range of RBI.

• US & UK GDP growth estimates continue to come down sequentially owing to rapid monetary tightening and other macroeconomic headwinds. Geopolitical developments continue to weigh on the outlook and the overall situation remains uncertain.

• The tea prices in North India came off from Q1 levels but trended slightly higher YoY. South

India tea prices remained rangebound during the quarter and slightly higher YoY.

• Kenya tea prices remained stable sequentially but were higher YOY

• Arabica and Robusta coffee prices were significantly higher YOY.

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

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

Market context – category growth rates

Canada

India

+8.6% +8.8%

+5.8%

+7.3%

+5.2%

Base period growth rates

-3.6%

-4.8%

• US Markets saw category growth in

Coffee (both Bags and K-cups) and Tea on account of price increases . In volume terms the category has declined.

3.0%

• UK – Tea category in both regular and

Fruit & Herbal saw a decline.

• Canada – Both regular black tea and specialty tea categories grew, led by pricing. In volume terms category saw a decline.

•

India branded tea category saw muted growth, much lower than its long-term normalised rate.

US Regular Black Tea

US Bags Coffee

US K-cup Coffee

UK Regular Black Tea

UK Fruit & Herbals Tea

Canada Regular Black Tea

Canada Speciality Tea

India Branded Tea

Source: Nielsen: 12 weeks (Value) – Sep’22 for International markets other than India (based on Aug ’22)

India Packaged Beverages

Tata Tea Gold launched its Festive Edition series celebrating the various art forms of West Bengal to bring alive the joy of Durga Puja

Performance commentary

-7%

Revenue Growth

• Revenue for the quarter declined 7% primarily led by pricing corrections and overall softness in the category

• Margins for India beverages expanded YoY, led by lower commodity costs.

• On a 3-year CAGR basis, this

translated to 10% revenue growth.

• Continue to maintain #1 position in

Ecommerce

-1% Volume Growth1

• Coffee continued its strong

performance with revenue growth of 39% during the quarter.

Other updates

• Tata Tea Gold Care continues to

• Premium portfolio (Chakra, TT Gold,

see strong traction post its all India roll out.

Chakra Care, Gold care, etc.) continues to perform better than the base portfolio.

• Kanan Devan recorded highest

• Tata Tea Premium TeaVeda restage

ever volumes in Kerala led by on- ground activations during Onam

is yielding results.

-20bps Market Share gain2

1 Tea volume growth 2 Source: Nielsen – Value share, Moving Annual Total (MAT) basis Aug’22 vs Aug’21

Chakra Gold launched an exclusive campaign in AP and Telangana during Navaratri supporting Kondapalli toys – the pride of Telugu speaking states

India Foods

Tata Salt Immuno launched with new and improved packaging to better showcase the Zinc Proposition. The brand was also successfully launched in newer markets in the western part of the country

+0%

Volume Growth

Tata Sampann launches a new variant Shahi Besan Plus to expand the current base range with value-added variants

+128bps Market share gain1

Performance commentary

+29%

Revenue Growth

• Salt revenue grew 27% during the quarter on a high base (Q2FY22 salt grew 20%).

• Tata Sampann portfolio delivered

strong growth of 37%, led by broad- based performance across pulses, poha, and spices.

• Tata Soulfull continued its strong

growth trajectory.

• Salt margins started to normalize with the latest round of pricing.

• Tata Soulfull Masala Oats+ off to a good start across key channels

• The flat volume growth came on

the back of 16% volume growth in Q2 last year.

• Rock salt registered its highest

ever volume with a revenue growth of 43% during the quarter.

Other updates • Tata Sampann Dry Fruits scaling up well with strong growth and share gains across E-commerce platforms

• Tata Sampann staples saw strong

growth led by a distribution expansion drive in GT

1 Source: Nielsen – Value share, Moving Annual Total (MAT) basis Aug’22 vs Aug’21

NourishCo (100% Subsidiary)

Flagship brands Tata Gluco Plus and Tata Copper + Water continue to be supported in key markets

Newly launched Himalayan Honey and Preserves off to an encouraging start

Performance commentary

138Cr

Revenue

• Delivered strong revenue growth of

64% during the quarter.

• Himalayan revenue grew 72% YOY and continued to remain EBIT+ve during the quarter.

• The growth was led by all products

and geographies

• The business is seeing inflation in COGS and freight, but it was mitigated through cost-saving initiatives and operating leverage during the quarter.

+64%

Revenue growth

1.9x Tata Water Plus#

Other updates

• Himalayan celebrated “Himalayan Day” and partnered with 'Ladakh Marathon’ for the World’s highest Ultra Marathon ‘Himalayan Khardungla Challenge 2022’, with the objective of giving back to its source and supporting the cause of protecting local communities affected by melting Himalayan glaciers in the Ladakh region

• GTM expansion and capacity expansion drive continues

#91% revenue growth YoY

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

Tata Coffee Vietnam plant continues to operate at peak capacity

Performance commentary

• Revenue for the quarter grew 39%# led by strong growth across both the extractions and the plantations business.

Plantations

• Strong growth driven by higher

realization and sales of Robusta coffee and pepper.

Extractions

• Overall extractions business grew by 26% driven by both the domestic and the Vietnam business.

• Vietnam plant continued to operate at peak capacity utilization. Vietnam sales grew 43% driven by higher sales of premium products and superior realization.

•

Other updates Inflationary challenges continued during the quarter, but they were mitigated through cost management efforts.

+39%#

Revenue Growth

+73%

Plantations Revenue Growth

+26%

Extractions Revenue Growth

# Tata Coffee including Vietnam in constant currency terms. Does not include EOC

3030

Tata Starbucks (JV)

Performance commentary

99%

Stores re-opened*

• Revenue for the quarter saw strong growth of 57%, led by normalized store operations and a revival in out- of-home consumption.

• Opened 25 new stores during the

quarter – highest-ever quarterly store openings in its history.

• The business continued to remain

EBIT-positive for the quarter.

• Entered 6 new cities, with the 300th store being opened in Dehradun.

Piloting a new small size beverage – ‘Picco’ in select stores to recruit new consumers

‘

Expanded the health-forward portfolio with salads, protein boxes & a vegan menu

300

Total Stores

Cities

Other updates • Started its 10th anniversary

celebration with `Brew Your Own Starbucks` campaign giving customers a chance to create beverages to be featured on the menu.

• Pilot with new beverage size,

localized drinks, and food offerings is showing good initial response.

• Expanded the health-forward portfolio with a Vegan menu, salads, and protein boxes.

• Continued its coffee leadership with the launch of Peru and Diwali Blend Blonde Roast

* As of end of Sep’22

31 31

Introduced Teapigs Iced Tea range supported with ‘Summer of teapigs campaign’ across print and digital platforms

Performance commentary

-7%

Revenue Growth#

• Revenue for the quarter declined 7% (constant currency) owing to category softness driven by significant inflation.

• Tetley gained share in everyday

black segment in the latest 4-week period.

-16%

Teapigs revenue Growth^

• Teapigs declined 16%, cycling an elevated base (Q2FY22 growth of 17%) and driven by hot weather and moderation in OOH.

• TCPL became the third-largest

branded tea company by Market Share during the quarter, displacing Twinnings.

• Next phase of integration of teapigs

•

with Tetley is underway.

Inflation and GBP depreciation impacted profitability during the quarter. These will be addressed through pricing actions and structural cost-saving measures.

19.2%

Value Market share* (in everyday black)

Other updates • Tetley specialty tea segment grew led by Tetley Gold brew listing

• Teapigs continues to expand and

secure new listings

Tetley limited-edition 185th anniversary caddy launched in stores and e-commerce

New artwork for Tetley Super restage rolled out in September

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

USA

Newly launched Tetley Sweet Tea Cold Brew offers convenience and strengthens our presence in the specialty tea segment

Launched at one of the largest Southern chains – Food Lion.

New pack, price, and packaging relaunch of EOC

Performance commentary

• Coffee: Revenue for the quarter

grew 16% (constant currency) driven by EOC gaining share.

• Tea: Revenue grew 9% (constant

currency) led by Tetley and Teapigs outperforming their respective categories.

• EOC K Cups grew 2X the category during the quarter, led by 48 count SKU.

• The business profitability has been impacted by an increase in coffee and freight costs and delayed implementation of pack/price initiatives.

• Teapigs is now the fastest-growing

tea brand in the US.

• Tetley witnessed share gains in the latest period led by performance in mainstream Black with distribution gains and increased activity.

Other updates

• EOC Barista Blends got listed at

• Tetley Irish Breakfast continued to

Walmart

do well led by distribution gains and ongoing promotional activity

+16%

Coffee Revenue Growth^

+9%

Tea Revenue Growth^

4.4%

*Coffee Bags Market Share

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

Canada

Performance commentary

16%

Revenue Growth^

• Revenue for the quarter grew 16% (constant currency).

• The tea category growth is being led by pricing as inflation impacts volumes.

• New distribution for Tata tea is helping the brand grow rapidly, albeit off a small base.

11%

Revenue growth in Specialty tea^

27.3%

*Market share

Kicked off new Tetley Live Tea & Value Pack communication via social media & e-blasts, driving traffic to Tetley.ca and Amazon.ca, as part of a larger integrated campaign.

Other updates • Undertook direct-to-home

sampling program for specific Super Teas and new Live Teas to drive trial and awareness

• Rolled out digital ads on popular South Asian websites supporting Tata Tea Premium targeted at Indian diaspora, as part of a larger digital campaign

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

3535

Performance Highlights - Q2 FY23

Standalone

(in ₹ Cr)

Consolidated

(in ₹ Cr)

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

1,988

143

+7%

2,131

3,033

330

3,363

+11%

[10%]

Q2FY22

Growth

Q2FY23

Q2FY22

Growth

Q2FY23

269

336

+25%

420

438

+4%

[3%]

• Revenue at Rs 3,363 Crs

•

India Business +9%

International Business +6% (U/L)

• Non branded Business +30% (U/L)

• EBITDA at Rs 438 Crs, +4% and EBITDA marging at

13.0% (-0.8%) over PY.

•

India Business EBITDA +24%, led by gross

margin improvement and optimization of other

expenses.

•

International Business EBITDA -41%, owing to

input cost inflation, currency weakness and lag in

pricing.

• Non-Branded Business EBITDA +20%, led by

revenue growth and fair value gains partly offset

Q2FY22

Growth

Q2FY23

Q2FY22

Growth

Q2FY23

by input cost inflation.

[ ] constant currency growth

37 37

Financials: Consolidated

Quarter ended Sep’22

Q2FY23

Q2FY22

Change %

Profit and Loss statement

(all nos. in ₹ Crores)

Year to date Sep’22

H1FY23

H1FY22

Change %

3,363

438

13.0 %

365

10.8 %

370

111

(127)

355

10.6%

389

3,033

420

13 9%

351

11.6%

364

(16)

(86)

261

8.6%

286

11 % Revenue from operations

4 % EBITDA

4 % EBIT

2 % PBT before exceptional items

Exceptional items

Tax

36 % PAT

36 % Group Net Profit (incl. JVs & Associates)

Group Consolidated Net Profits for the quarter grew 36% YoY on account of the following : • • •

Revenue growth in both branded and Non-branded business Partly offset by margin decline due to inflation and weakness of GBP for International markets Higher exceptional income on account of sale of land in Tata Coffee

6,690

897

13.4 %

751

11.2 %

774

(230)

631

9.4 %

666

6,042

823

13.6 %

687

11.4 %

704

(20)

(182)

502

8.3 %

486

11 %

9 %

10 %

26 %

37 %

Financials: Standalone

Quarter ended Sep’22

Q2FY23

Q2FY22

Change %

Profit and Loss statement

(all nos. in ₹ Crores)

Year to date Sep’22

H1FY23

H1FY22

Change %

2,131

336

15.8 %

300

14.1 %

317

(7)

(80)

230

1,988

269

13.5 %

233

11.7 %

256

(7)

(60)

188

7 % Revenue from operations

25 % EBITDA

29 % EBIT

24 % PBT before exceptional items

Exceptional items

Tax

22 % PAT

4,208

643

3953

543

15.3 %

13.7 %

572

13.6 %

635

(18)

(155)

462

472

11.9 %

634

(7)

(134)

492

10.8 %

9.5 %

11.0 %

12.4 %

Profit after tax on a standalone basis for the quarter grew 22%, driven by • •

Revenue growth and margin improvement in India Business Margin improvement driven by lower tea costs and pricing action in salt

6 %

18 %

21 %

0 %

(6) %

Segment-wise Performance Q2FY23

Particulars

₹ Cr

Segment Revenue

Segment Results

Q2 FY23 Q2 FY22 Change

(%)

India Business

2,160

1,978

308

245

26%

International Business

839

781

110

(46)%

Revenue - Branded business

72% India Business 28% International Business

Total Branded Business

2,999

2,759

367

354

Segment results – Branded business

Non Branded Business

372

280

33%

Others / Unallocated items

(8)

(6)

39%

(28)

Total

3,363

3,033

11%

482

348

39%

84 % India Business

16% International Business

4040

Segment-wise Performance H1FY23

Particulars

₹ Cr

Segment Revenue

Segment Results

H1FY23 H1FY22 Change

(%)

India Business

4,305

3,950

581

491

18%

International Business

1,675

1,549

164

206

(20)%

Revenue - Branded business

72% India Business 28% International Business

Total Branded Business

5,981

5,499

745

697

Segment results – Branded business

Non Branded Business

724

558

30%

Others / Unallocated items

(14)

(15)

73%

(53)

Total

6,690

6,042

11%

861

684

26%

78 % India Business

22% International Business

4141

To conclude

Macros 

Inflation continues to weigh on demand in the International markets, even as India has been relatively more resilient, except for rural.

 The US Fed’s monetary tightening is causing unprecedented strength in USD – impacting cross-currency exposures.

 The impact of inflation and monetary tightening on the economies & currencies of our key markets remains monitorable going forward.

Business

 We have been able to deliver double-digit growth while balancing margins in an extremely challenging global macro environment this fiscal.

 While the tea business in India remains tepid due to category slowdown, we have been able to gain volume market share. We will continue to focus

on strengthening our competitive position.

 The pricing we took in salt has helped us mitigate input cost inflation during the quarter; the forward trajectory on these costs remains monitorable.

Despite the pricing, we have continued to gain market share in salt- a testament to the strength of the brand and the team’s execution capabilities.

 Our “growth businesses” have sustained their strong growth trajectory and we will continue to drive them further.

 Our Out of Home businesses i.e. both NourishCo & Starbucks have delivered yet another strong quarter and we expect continued momentum.

 Tata Soulfull has seen another quarter of robust growth and we expect an upward trajectory for the RTE business after its recent relaunch.



In the international business, input cost inflation, adverse currency movement, and lag in pricing have impacted margins; we will be looking at

pricing and structural cost-saving actions to mitigate that.

 Given the inflationary environment and investments required for some of the new businesses, we will continue to manage margins at the company

level while remaining focused on maintaining growth momentum.

4343

Awards & recognition

1. Most Chosen FMCG Brand TCPL has been ranked in Kantar India Brand Footprint Report 2022 as the 5th Most Chosen FMCG Brand in India

2. Most Purposeful Brand Tata Tea awarded as the Most Purposeful FMCG brand in India by Kantar Brandz 2022 Most Valuable Indian Brands

3. Brand of the Year

4. Best D2C Brand

Tata Tea Chakra Gold won the Brand of the Year at Exchange4media’s Indian Marketing Awards South 2022, with 6 awards for Tata Chakra Gold, Tata Tea Chakra Gold Care and Shuddh by Tata Salt

Tata Consumer Soulfull emerged as the winner of exchange4media D2C award at the e4m D2C revolution Awards 2022

5. Manufacturing Excellence Beverages packeting centres in Gopalpur & Kellyden won Silver in the India Green Manufacturing Challenge 2021-22 by the International Research Institute for Manufacturing

6. Best Annual Report

TCPL won Gold for the Best Business/ Financial Content (Print) at the India Content Leadership Awards & Conference 2022 by Inkspell & India Creative Industries Council

Shareholding information

Quarter Ended June’20

Stock data

BSE Ticker

NSE Ticker

500800

TATACONSUM

Market Capitalization (Sep 30, 2022)

₹ 739.9 bn

Number of Shares Outstanding

921.6 Mn

Pattern as on 30th September, 2022

Others 5%

Individual 20%

MFs/ UTI/ AIFs 7%

Insurance Companies/ Banks 8%

Promoter and promoter Group 35%

Foreign Institutional Investors 25%

Quarter Ended June’20

Q&A

Thank You

For more information

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

Retail investors - Contact investor.relations@tataconsumer.com

Call us at +91-22-61218400

For media queries nidhi.verma@tataconsumer.com satya.muniasamy@tataconsumer.com

Last 10-year financials are available on Historical financial data

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