TATACONSUM

April 25, 2023 National Stock Exchange of India BSE Limited The Calcutta Stock Limited Phiroze Jeejeebhoy Towers Exchange Limited Exchange Plaza, C-1, G Block Dalal Street 7 Lyons Range Bandra Kurla Complex, Bandra (E) Mumbai 400001 Kolkata 700 001 Mumbai 400 051 Scrip Code – 10000027 Scrip Code – TATACONSUM Scrip Code - 500800 (Demat) 27 (Physical) Sub: Investor Presentation on Financial Results for the quarter and year ended March 31, 2023 Dear Sir/Madam, Please find enclosed a copy of the Investor Presentation related to the Audited Financial Results of the Company for the quarter and year ending on March 31, 2023. The above information is also being made available on the website of the Company at https://www.tataconsumer.com/investors/investor-relations/results-and-presentation/analyst- presentation Thanking you, Yours Truly, 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 Investor Presentation For the quarter and fiscal year ended March 2023 25th April 2023 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. 2 Agenda Executive summary Performance overview Progress against strategic priorities Macro environment Business performance Financial performance Concluding remarks Other 3 We are Tata Consumer Products In a nutshell Integrated F&B company #2 branded tea player with rich heritage of Tata, globally aspiring for a larger share of the FMCG World Reach north of 200mn ₹ 13.8K crore consolidated households in India and revenue in FY23 with current distribute to ~3.8mm retail market cap of ~₹66k*Cr outlets Largest salt brandin India 2ndLargest tea brand in 4thlargest tea brand in UK & India largest tea brand in Canada Among the top 10 FMCG ~3500+ employees worldwide 4thlargest R&G coffee National brand companies in India #1 natural mineral water brand in USA in pulses, spices and mixes brand in India * As of 31stMar 2023 4 Executive Summary ▪ We had a strong fourth quarter with consolidated revenue growth of 14% and a consolidated EBITDA margin of 14.3%. During the quarter, o India Beverages1 business grew 8%, with tea volumes returning to growth, up 3% YoY. o India Foods2 business continued its strong trajectory, with volumes up 8%. The Salt business margin was almost back to the normative range. o International business recorded 11% revenue growth (1% ex acquisitions in constant currency)3, with EBITDA in line with last year. ▪ During the year, consolidated revenue grew 11%, with India business4 growth of 10%; o India Beverages1 business grew 1%, with -1% volume growth o India Foods2 business grew 26%, with 2% volume growth o International business was +8%3 during the year (+4% ex acquisitions in constant currency)3, primarily led by price increases. ▪ We continued to drive “India Growth”4 businesses – combined, they grew 53% and accounted for 15% of India business during FY23. ▪ During the year, we gained market share in salt, but the tea volume share saw a marginal dip due to demand challenges in some of our key markets. ▪ On profitability, India business EBITDA margin expanded by 90bps during the year, despite inflation in the salt costs which we offset through pricing, albeit with a lag. Importantly, the profitability profile of growth businesses improved YoY. ▪ At the company level, the EBITDA margin contracted by 50bps in FY23, led by steep inflation in the International business. However, we have seen a sequential improvement in International business margins and expect it to normalize by Q1FY24. ▪ We continued to accelerate innovation with Innovation-to-Sales at 3.4% in FY23; and are on track to achieving 4mn outlets in total reach by Sep’23. ▪ We continued our focus on driving efficiencies with a strong Free Cash Flow conversion. ▪ Dividend proposed at Rs 8.45/share, up 40% YoY. 1Includes NourishCo revenue, but volume doesn’t include Nourishcovolumes 2Includes Tata Soulfull, Sampann Yumsiderevenues. Volume doesn’t include Soulfull/Sampann Yumsidevolumes 3Excludingthe impact of Joekelsand Bangladesh stake consolidation that happened in Q4FY23 4 Includes India beverages & India Foods business, including NourishCo. 5 Includes Nourishco, Tata Sampann, Tata Soulfull, and Tata Sampann Yumsidebusinesses. 66 Key Businesses Snapshot – Q4FY23 In ₹ Cr India India International Tata Coffee US Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 1,286 960 377 607 352 3,619 Revenue growth 8% 26% 6% 14% [6%]* 16% 14% Constant currency growth -4% 12% [4%]* 13% 12% Volume growth 3% 8% -20% 3% 14% KeyBrands Notes: a)India Beverages revenue includes India Packaged Beverages + NourishCo, but volume doesn’t include NourishCovolumes b)India Foods revenue includes Tata Soulfulland Tata SmartFoodz c)International tea business includes UK, Canada, USA, Australia, Europe, Middle East, South Africa and Bangladesh d)Tata Coffee incl. Vietnam and excl. USCoffee (EOC) e)Consolidated revenue includes other non-branded business and Inter-segment eliminations * [ ] Revenue growth on a like-to-like basis, excluding the impact of Joekelsand Bangladesh stake consolidation that happened in Q4FY23 8 Key Businesses Snapshot – FY23 In ₹ Cr India India International Tata Coffee US Coffee Consolidated (unless specified) Beverages Foods Tea* (incl. Vietnam) Revenue 5,051 3,666 1,489 2,100 1,360 13,783 Revenue growth 1% 26% 15% 3% [1%]* 27% 11% Constant currency growth 7% 5% [3%]* 25% 10% Volume growth -1% 2% -11% -4% 3% KeyBrands Notes: a)India Beverages revenue includes India Packaged Beverages + NourishCo, but volume doesn’t include NourishCovolumes b)India Foods revenue includes Tata Soulfulland Tata SmartFoodz c)International tea business includes UK, Canada, USA, Australia, Europe, Middle East, South Africa and Bangladesh d)Tata Coffee incl. Vietnam and excl. USCoffee (EOC) e)Consolidated revenue includes other non-branded business and Inter-segment eliminations * [ ] Revenue growth on a like-to-like basis, excluding the impact of Joekelsand Bangladesh stake consolidation that happened in Q4FY23 9 Summary of Group Performance – Q4FY23 ₹ 3,619 Cr. ₹ 518 Cr. ₹ 456 Cr. ₹ 290 Cr. ₹ 293 Cr. ₹ 2,945 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 14% [12%] 13% 13% 21% 15% Margin 14.3% 12.6% 8% 8.1% Margin expansion (YoY) -10bps -10bps 50bps 10bps EPS 2.89 EPS growth (YoY) 22%* [ ] Constant currency growth. ^ before exceptional items. $ Cash and cash equivalents (net of total borrowings) as of 31 March 2023. ^ Group Net Profit and EPS growth rates differ owing to acquisition of residual minority stake in Tata Consumer Products UK Group Limited from Tata Enterprises (Overseas) AG (TEO), by issuing shares of Tata Consumer Products Limited, thereby making it a wholly owned subsidiary in the preceding quarterended 31st December 2022. 10 Summary of Group Performance – FY23 ₹ 13,783 Cr. ₹ 1874 Cr. ₹ 1,634 Cr. ₹ 1,320 Cr. ₹ 1,174 Cr. ₹ 2,945 Cr. Group Net Group Net Revenue EBITDA PBT (bei)^ Net Cash$ Profit Profit (bei)^ Growth (YoY) 11% [10%] 7% 8% 30% 11% Margin 13.6% 11.9% 9.6% 8.5% Margin expansion (YoY) -50bps -30bps 140bps Flat EPS 13.02 EPS growth (YoY) 28%* [ ] Constant currency growth. ^ before exceptional items. $ Cash and cash equivalents (net of total borrowings) as of 31 March 2023. ^ Group Net Profit and EPS growth rates differ owing to acquisition of residual minority stake in Tata Consumer Products UK Group Limited from Tata Enterprises (Overseas) AG (TEO), by issuing shares of Tata Consumer Products Limited, thereby making it a wholly owned subsidiary in the preceding quarterended 31st December 2022. 11 Strategic Priorities Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 13 13 Progress on S&D – delivering on commitments Direct reach (m outlets) Total reach (m outlets) S&D Agenda for FY24 4.0 3.8 ✓ Increase total reach to 4m outlets 3x direct reach ✓ Increase bandwidth at the front end through split routes for salesmen in 1.5 Ten Lac Plus Population (TLP) towns. 1.3 0.7 ✓ Add distributors/upgrade sub-Ds 0.5 down the pop strata Sep’20: Target to Mar’22: Direct reach of double direct reach in 1.3m outlets 12 months and total reach in 36 months Sep’21: Direct reach of Mar’23: Direct reach of 1.1m outlets - target to 1.5m outlets. Well on move to 1.3m outlets by our way to achieving 4m Mar’22 total reach by Sep’23 14 14 Alternate channels continue to fuel growth and innovation Modern Trade E-commerce FY23 revenue growth FY23 revenue growth FY23 contribution to FY23 contribution to India revenue India revenue (ex. NourishCo) (ex. NourishCo) New SKUs on shelf in FY23 NPD contribution in FY23 All numbers above are for FY23, and growth is for FY23 vs FY22 15 15 Continuing our hyperlocal approach Tata Tea Premium celebrated Lohriin Punjab with limited-edition festive packs and an impactful 360°campaign. Tetley’s made a bold statement this International Women’s Day with its viral #everyBODYcan campaign. Market share – Tea Tata Tea Premium celebrated India’s 75th Volume -50 bps1 Republic Day with its #DeshKiJhanki Value -113 bps1 campaign. 1 Source: Nielsen –MAT basis, Mar’23 vs Mar’22 16 Strengthening our Salt business through a multi-brand play From mostly vacuum-evaporated salt, we now offer consumers a complete assortment across various types, benefits, and price points. Segment Assortment Price index Market share Super Premium >4.0x Salt +76bps1 Premium, 1.0-3.0x Fortified, H&W Share of Value-Added Salts ~5%+ Popular 1.0x <1% FY20 FY23 Mass 0.6x 1 Source: Nielsen –Value Share, MAT basis, Mar’23 vs Mar’22 17 Upping the ante on innovation Innovation to sales Beverages Foods 3.4% 2.7% 1.4% 0.8% FY20 FY21 FY22 FY23 Number of new launches per year 34 19 14 New Categories FY21 FY22 FY23 18 18 Continued focus on Digital Journey So Far Shift to cloud Single Instance Integrated S&D IBP Clearview of SAP Backbone Analytics Next Frontier – Lead Themes Data-driven Revenue Data-driven Mktg & AI/ML Led Data-driven NPD Growth Management ROI-led spend Procurement Org (RGM) allocation 19 19 Simplify, Align & Synergize Simplify Align Synergize Consolidation of legal structure to drive efficiencies Reduce the number of entities from 45 to ~25 Consolidating ownership in JVs Bangladesh Composite Scheme of South Africa Demerger & Merger 20 20 Momentum continues in the new Engines of Growth Growth Businesses as a % of India Branded Business 15% 10% 8% 6% Combined YoY revenue growth FY20 FY21 FY22 FY23 FY23 Growth businesses include Tata Sampann, NourishCo, Tata Soulfull, and the RTE/RTC business (Tata Smartfooz). Tata Soulfull & Tata SmartFoodZbecame subsidiaries effective Feb’21 & Nov’21, respectively. 21 21 Progress during the year on our acquisitions Rebranded TataQ to Tata Sampann Scaled to a net sales of INR 621 cr. in Soulfull revenue grew 100%+ YoY Yumside for domestic markets and FY23, up from Rs 180 cr. in FY20. Tata Raasa for international markets. Continued to capitalize on TCPL’s extensive distribution network. Revamped our recipes and Innovation-to-sales at 13% formulations keeping consumer tastes Drove accessibility and affordability with and feedback at the forefront. Rs. 10 No Maida Choco which now Increased capacity to 2X of last year for reaches 300k+ outlets. Introduced a host of new products and Tata Gluco Plus and 2.5X for Tata SKUs to augment the existing portfolio. Copper + Since its launch, Tata Soulfull Masala Oats + has been tracking ahead of Tata Raasa delivered its first 600k outlets covered, up 70%+ YoY internal KPIs. shipments to USA, UK, and Canada. Gearing up for the International Year of Millets, 2023. 22 2222 Tata Starbucks scaling rapidly 1,087 333 41 71 Rs. Cr. FY23 Net Sales Total stores Cities New stores added in FY23 Pilot programme Tata Starbucks is looking to rapidly expand its We ran a pilot in 2022 across four cities in India to: presence in the coming years. To achieve this, we ✓ Drive familiarity among consumer segments are looking to enhance its relevance for more ✓ Create more occasions for consumers to visit Starbucks segments of consumers ✓ Grow the consideration set for different types of consumers Introduced familiar and Introduced a new 6oz Revamped our food Refurbished store 1 much loved options in 2 ‘Picco’ size in hot 3 menu to offer freshly 4 interiors to make them our beverage menu beverages made, sharable plates more inviting The pilot stores demonstrated improved operating metrics. As such, these workstreams will be rolled out nationally in 2023. 23 Striving towards a sustainable future – our sustainability goals ▪ During the year, we released our ESG strategy along with specific commitments across parameters. ▪ In the UK, we have switched to Green Electricity procurement completely.​ ▪ TCPL won GoldAward in the Climate Change category at the “ICAI International Sustainability Reporting Awards 2021-22”.​ 2424 3-years since TCPL: driving profitable growth… Revenue – India Revenue – International Revenue – Consolidated 3Y CAGR 3Y CAGR 3Y CAGR 8877..22 17% 3322..66 3355..99 3% 137.8 13% 96.4 5544..00 FFYY2200 FFYY2233 FFYY2200 FFYY2233 FY20 FY23 EPS Cons. EBITDA Cons. Group Net Profit 3Y CAGR 3Y CAGR 3Y CAGR 18.7 13% 13.2 42% 13.0 38% 13.1 4.6 5.0 FY20 FY23 FY20 FY23 FY20 FY23 All figures in INR billion except EPS 25 …While unlocking efficiencies Net working capital days Dividend per share 50 ₹ 8.45 35 ₹ 2.70 FY20 FY23 FY20 FY23 Operating cash flow to EBITDA FY23 closing net cash of INR 2,945 cr 99% 92% Adequate resources to pursue value-creating organic and inorganic opportunities FY20 FY23 26 2626 Key Commodities’ movement Tea Coffee N. India Tea (INR/kg) S. India Tea (INR/kg) Kenya Tea ($c/kg) Arabica Coffee ($c/lbs) Robusta Coffee ($c/lbs) 236 233 234 246 229 224 225 223 222 215 217 194 191 212 177 177 180 173 195 188 186 147 177 158 128 144 145 149 105 103 94 96 93 86 88 128 122 115 117 68 62 100 101 101 104 1 2 2 2 2 3 3 3 3 1 2 2 2 2 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 '4 '1 '2 '3 '4 '1 '2 '3 '4 '4 '1 '2 '3 '4 '1 '2 '3 '4 Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q Q • North India tea prices continued to come off sequentially, in line • Arabica prices for the quarter remained stable QoQ on projections withhistoricalannual trends, as weenterednon-pluckingseason. forhigherBrazilcoffeeproduction. • SouthIndiateapricesforthe quarterwere11%higherYoY. • Robustawashighersequentiallybut10% lowerYoY. • Kenyanteapricessoftenedsequentially Source: North India and South India tea auction(Tea Board of India) Mombasa tea auction (EATTA) | International Coffee Exchange 2828 Market context – category growth rates (value) US UK Canada India • US markets saw category growth in Coffee 14.5% (both Bags and K-cups) and Tea on account of price increases. In volume terms, the +8.3% category saw a decline. +7.3% +7.0% • UK – The tea category in both regular and F&H saw growth led by pricing. +3.4% • Canada – Both regular black tea and 2.8% 2.7% specialty tea grew, led by pricing. +1.0% • India branded tea category saw muted growth, lower than its long-term average. -5.5% +3.2% +6.7% -2.2% -6.4% -3.1% +0.2% +6.1% US Regular Black Tea UK Regular Black Tea Canada Regular Black Tea India Branded Tea US Bags Coffee UK Fruit & Herbals Tea Canada Speciality Tea US K-cup Coffee Source:Nielsen: 12 weeks (Value) –Mar’23 Base period growth rates 29 India Packaged Beverages Performance commentary +1% • Revenue for the quarter grew 1%, • TCPL retained market leadership in Tata Tea Premium with 3% volume growth, recording a tea in the e-com channel for the 23rd Celebrated Utkala sequential recovery from the 9% consecutive month. Dibasa(Odisha Day) Revenue Growth revenue decline seen in Q3FY23. with its #UtkalaKiKala campaign inspired by • Revenue for the year declined 5%, • Coffee revenue grew 31% YoY Handlooms of Odisha during the year. with 1% volume decline owing to weakness in some of our key markets and price corrections. +3% • This brings the 3-year CAGR of the business to 15% Volume Growth1 Other updates • Premium segment recorded • Kanan Devan & TeaVedacontinued Tata Tea Teaveda growth during the year while the their momentum during the year. was one of the Economy segment was impacted fastest-growing by rural slowdown. brands during the -113bps year. Market Share gain2 Note: all numbers in the grey panel are for Q4FY23, and growth is vs Q4FY22 unless specified otherwise 1 Tea volume growth 2 Source: Nielsen –Value share, Moving Annual Total (MAT) basis Mar’23 vs Mar’22 31 31 India Foods Performance commentary +26% • Salt revenue grew 24% during the • Tata Sampann continued its strong quarter, on a high base of last year trajectory in Q4, growing 35%, (Q4FY22 salt grew 15%). bringing FY23 growth to 29%. Revenue Growth • For the year, salt grew 25%, • Salt margin is almost back to its primarily led by pricing, after growing normative range now. Exploring fast growing consumer 17% in FY22 trends: Tapped into the growing health and wellness trend with the • The value-added salts portfolio grew • Tata Soulfull portfolio grew 100%+ launch of Makhana. to 4.5X, in part led by new during the year, led by distribution +8% innovations like Tata Salt Immuno. gains for the existing portfolio and new innovations. Volume Growth Other updates • India Foods business is now • Tata Sampann growth was led by larger than International business broad-based performance. +76bps Localizing Staples: Catering to the state with the highest poha Market share gain1 consumption, with a state-specific variant Note: all numbers in the grey panel are for Q4FY23, and growth is vs Q4FY22 unless specified otherwise 1 Source: Nielsen –Value share, Moving Annual Total (MAT) basis Mar’23 vs Mar’22 32 32 NourishCo (100% Subsidiary) Performance commentary 181Cr • Nourishco had a landmark year, • Himalayan grew 74% during the recording Rs 621 cr. in net sales quarter,profitably. fortheyear,up80%YoY. Revenue* • The business recorded a strong • Despite steep inflation, continued revenue growth of 79% during the cost-saving initiatives have helped quarter. The growth was broad- drive margin improvement over based across products and theprevious year. geographies. +79% • Tata Copper+ is >7x, Tata Gluco Plus is 2.2x and Himalayan is 3.3x theirrespectivesizes inFY21. Revenue growth Tata Gluco+ rolled out its first national campaign Other updates • Tata Gluco+ continued to expand • The business now reaches nearly its geographic footprint and rolled 650koutlets. out its first national campaign During the year, Himalayan duringthequarter. 2.2x strengthened its story of provenance by expanding into • The new Tata Gluco+ Cola Honey and Preserves. This new Tata Copper+1 variant is off to an encouraging foray has been doing well start. Note: all numbers in the grey panel are for Q4FY23, and growth is vs Q4FY22unless specified otherwise 1 120% revenue growth YoY 33 33 Tata Coffee (inc Vietnam ex EOC) (~58% Subsidiary) Performance commentary +13%# Extractions • Revenue for the quarter grew 13%# • Overall extractions business grew by led by extractions business. This 20%#during the quarter, bringing Revenue Growth brought FY23 revenue growth to FY23 growth to 26%# 25%# • EBIT margin for the extractions business expanded handsomely YoY • The plantations business recorded led by the Vietnam business. 11% revenue growth during the quarter, bringing FY23 growth to +11% 17%, primarily led by higher realization in coffee. Plantations Revenue Growth TCPL proposed a merger with Tata Coffee Limited (TCL) in March 2022 with the objective of unlocking synergies and creating a simpler organizational structure. TCPL and TCL shareholders have Other updates approved the merger. • Tata Coffee Vietnam received the • We commissioned a coffee liquid The process of obtaining regulatory approvals is underway. The +20% # “Food Safety Excellence Award” extraction plant in Vietnam. matter is currently pending with the NCLT in Kolkata and Bangalore from the Confederation of Indian for hearing of the petition seeking approval of the scheme. Industry at the 13th CII Food safety Extractions awards function. Revenue Growth Note: all numbers in the grey panel are for Q4FY23, and growth is vs Q4FY22 unless specified otherwise # Tata Coffee including Vietnamin constant currency terms. Does not include EOC 34 34 Tata Starbucks (JV) Performance commentary • Revenue for the quarter grew 48% • The business was EBIT-positive for 22 YoY, bringing FY23 growth to 71%, the year. albeit on a base that was impacted by the pandemic. Continued momentum with Net new stores strong new city openings opened during the • Added 71 new stores and entered quarter 15 new cities during the year –the highest-ever annual store addition. 333 Other updates Launched the Starbucks Tribute Blend, an ode to 3 Total stores • The My Starbucks Rewards • FY23 women representation closed coffee growing regions in the loyalty program crossed 2.3 at 40.3% across the organization, world million, a 100% growth YoY. with 20 all womenstores. • Tata Starbucks, Great Place to • Partnership with TRRAIN : Work certified for the period Supported skilling of 1000 women 41 ‘ ending Mar 2023. to provide a sustainable career, sponsored by Starbucks Foundation. Cities present Launched Barista Pride –320 unique creations by our baristas in 320 stores in January 35 International operations UK USA Canada • Revenue for the quarter grew 8%^ , bringing • Coffee revenue for the quarter declined 4%^ , • Revenue for the quarter grew 5%^ , bringing FY23 growthtoflat^. bringingFY23 growthto7%^. FY23 growthto9%^. • Implemented ~15% price increases across the • US business saw strong sequential margin • Implemented price increases to mitigate portfolio starting in February leading to strong improvementduringthequarter. inflation, leading to strong sequential margin sequentialmarginimprovement. improvement. • Tetley outpaced category growth in Q4FY23, • Completed the integration of Teapigs with our led byhotblackteasegment. • Theyear sawthe launchof “Liveteas” specialty UK business todrive synergies. range and the introduction of the Tata World • Teapigs continued to outpace the specialty tea Foods portfolio. • TCP UK is working to deliver the new Tetley segment. tea - superior blend and tea bags along with • After the successful launch of Tata Raasa in cyclable packaging in 2023 in order to unlock ethnic channels, we are gearing up for its brand equity, future-proof the business, and mainstreamlaunch. drive oursustainability agenda. Coffee revenue - 4% +5% +8% Revenue growth^ Revenue growth^ growth^ Revenue growth in -12% Tea revenue +5% specialty tea^ growth^ Value market share* 19.1% (everyday black) Coffee bags 4.2% Value market share* 27.7% market share* (overall tea) Note: all numbers in the grey boxes are for Q4FY23, and growth is vs Q4FY22unless specified otherwise ^ Constant currency * Nielsen –Value share, Moving Annual Total (MAT) basis –Mar’23 36 36 Standalone (in ₹ Cr) Consolidated (in ₹ Cr) Consolidated Revenue at Rs 3,619 Crs m • India Business +15% o s r n • International Business +6% (constant currency); on a f o e i t like-to-like basis +1% (excluding acquisitions) u a n r e e • Non-branded Business +9% (constant currency) v p e o R EBITDA at Rs 518 Crs, +13%, and EBITDA margin at 14.3%, in line with last year • India Business +19%, EBITDA margin higher by 0.6%, mainly due to optimization of other expenses. Gross Margin in line with last year. • International Business -3%, EBITDA margin lower by - A D 1% mainly due to commodity/input cost inflation and T I B lag in price increases. E • Non-Branded Business -8%, EBITDA margin lower by 2% led by Input cost inflation and adverse impact of fair valuation of inventory partly offset by revenue growth [ ] constant currency growth 38 38 Q Q 1 4 2 4 , 9 F 8 F 4 Y 8 Y 8 2 2 2 2 G G 2 3 + 1 r o w 6 4 + 2 2 r o w 0 2 t % t h % h Q Q 2 , 4 F 3 4 F 1 Y 5 Y 7 8 2 2 2 3 3 Q 3 4 , 1 F 7 Y 5 2 2 G 4 + r o 4 1 w 4 4 % t h Q 4 3 F , Y 6 1 2 9 3 Performance Highlights – Q4FY23 [12%] 60 518 458 +13% [11%] Q4FY22 Growth Q4FY23 Financials: Consolidated Quarter ended Mar’23 Financial year ended Mar’23 Profit and Loss statement (all nos. in ₹ Crores) Q4FY23 Q4FY22 Change % FY23 FY22 Change % 3,619 3,175 14 % Revenue from operations 13,783 12,425 11 % 518 458 13 % EBITDA 1,874 1,749 7 % 14.3 % 14.4% % 13.6 % 14.1 % 436 386 13 % EBIT 1,570 1,471 7 % 12.0 % 12.2% % 11.4 % 11.8 % 456 403 13 % PBTbefore exceptional items 1,634 1,508 8 % (6) (19) Exceptional items 159 (52) (105) (95) Tax (447) (377) 346 289 19% PAT 1,347 1,079 25 % 9.5% 9.1% % 9.8 % 8.7 % 290 239 21 % Group Net Profit (incl. JVs & Associates) 1,320 1,015 30 % Group Consolidated Net Profit for the quarter grew 21% YoY led by: Group Consolidated Net Profit for the year grew 30% YoY led by: • Revenue growth in both Branded and Non-branded business • Revenue growth in both Branded and Non-branded business • EBITDA Margin expansion YoY • Partly offset by margin decline in International business. India business margins were • Lower exceptional items, lower taxes, and improved performance of Tata marginally higher. Starbucks • Higher exceptional income on account of sale of investment property in Tata Coffee and conversion of Joekelsand Bangladesh JVs into subsidiaries, partly offset by higher restructuring and reorganization costs. 39 Financials: Standalone Quarter ended Mar’23 Financial year ended Mar’23 Profit and Loss statement (all nos. in ₹ Crores) Q4FY23 Q4FY22 Change % FY23 FY22 Change % 2,178 1,948 12 % Revenue from operations 8,539 7,932 8 % 352 288 22 % EBITDA 1,323 1,111 19 % 16.2 % 14.8 % % 15.5 % 14.0 % 314 253 24 % EBIT 1,177 969 21 % 14.4% 13.0% % 13.8 % 12.2 % 344 283 21 % PBTbefore exceptional items 1,306 1,178 11 % (13) (11) Exceptional items (39) (27) (80) (66) Tax (317) (265) 250 206 21 % PAT 950 886 7 % 11.5 % 10.6 % % 11.1 % 11.2% Profit after tax for the quarter grew by 21% led by: Profit after tax for the year grew by 7% driven by: • Revenue growth and margin improvement in India business • Revenue growth and margin improvement in India business • Margin improvement was driven by India Foods. • Partly offset by lower other income in the current year due to higher dividend received in the previous year from subsidiaries 40 Segment-wise Performance Q4FY23 Particulars Segment Revenue Segment Results/PBT Revenue – Branded business ₹ Cr Q4 FY23 Q4 FY22 Change Q4 FY23 Q4 FY22 Change India Business 2,246 1,954 15% 312 258 21% 70% India Business International Business 984 890 11% 127 128 (1)% 30% International Business Total Branded Business 3,231 2,844 14% 439 386 14% Non Branded Business 385 345 12% 26 29 (12)% Segment results – Branded business Others / Unallocated items 3 (13) (15) (31) Total 3,619 3,175 14% 450 385 17% 71% India Business 29% International Business 41 41 Segment-wise Performance FY23 Particulars Segment Revenue Segment Results/PBT Revenue – Branded business ₹ Cr FY23 FY22 Change FY23 FY22 Change India Business 8,717 7,914 10% 1,193 1,012 18% 71% India Business International Business 3,589 3,336 8% 380 478 (21)% 29% International Business Total Branded Business 12,306 11,249 9% 1,573 1,490 6% Non Branded Business 1,500 1,214 24% 122 93 32% Segment results – Branded business Others / Unallocated items (23) (38) 99 (127) Total 13,783 12,425 11% 1,794 1,456 23% 76% India Business 24% International Business 42 42 To conclude – FY23 in a nutshell Macros ▪ We have seen some green shoots in some of our salient markets for tea and remain cautiously optimistic going forward. ▪ The impact of inflation and monetary tightening on the economic growth and demand in our key International markets remains a monitorable. Business ▪ In FY23, we delivered double-digit topline growth while balancing margins in an extremely volatile & inflationary environment. ▪ While the tea business in India was subdued due to demand challenges in some of our key markets, the interventions we put in place have yielded positive results, with volume growth returning this quarter. ▪ In spite of the steep price increases taken to mitigate input cost inflation, we continued to gain market share in salt, driven by in-market execution. The margin in the business has been improving sequentially and is now almost in its normative range. ▪ Our growth businesses have been on a strong growth trajectory and have increased their salience significantly over the last couple of years. Ready-to-drink business hit a milestone of Rs 621 cr in net sales this year, up from ~ Rs 180 cr when we acquired it. Tata Soulfull grew 100%+ and Tata Sampann grew 29% during the year. ▪ Our JV Tata Starbucks recorded a 4-digit topline in FY23 and now has 333 stores with the highest-ever store addition during the year. ▪ In the international business, input cost inflation and adverse currency movements impacted margins, but we mitigated it via pricing actions and have seen a sequential improvement in margins QoQ for 2 quarters now. Additionally, we have made structural changes to unlock further efficiencies going forward. ▪ Despite significant input cost inflation and increasing salience of the new businesses, we minimized the consolidated EBITDA margin contraction YoY. Going forward we will continue to stay focused on driving profitable growth. 44 44 Shareholding information Quarter Ended June’20 Pattern as on 31st March, 2023 Stock data BSE Ticker 500800 Others 6% Promoter and NSE Ticker TATACONSUM promoter Group Market Capitalization (Mar 31, 2023) ₹ 659.6 bn Individual 34% 20% Number of Shares Outstanding 929.0 Mn MFs/ UTI/ AIFs 6% Insurance Foreign Companies/ Institutional Banks Investors 9% 25% 4747 Thank You For more information Institutional investors – Contact Nidhi Verma Head –Investor Relations & Corporate Communication nidhi.verma@tataconsumer.com Kaiwan Olia Manager –Investor Relations Kaiwan.olia@tataconsumer.com Retail investors - Contact Call us at investor.relations@tataconsumer.com +91-22-61218400 For media queries nidhi.verma@tataconsumer.com satya.muniasamy@tataconsumer.com Last 10-year financials are available on Historical financial data tataconsumer.com TataConsumer tata-consumer-products/ tataconsumerproducts/ 48