55th Annual General Meeting - Tata Global Beverages

55th Annual General Meeting Financial Year 2017-18

Presentation by Ajoy Misra, Managing Director

MILESTONE MOMENTS

Tata Starbucks opens 100th store in India

Tata Tea 1868, a specially curated range of teas, to celebrate 150 years of Tata group, debuted at World Economic Forum 2018, Davos

Himalayan Sparkling elevates the fine-dine experience

Jaago Re submits 1.8m petitions to HRD minister on women’s safety and sports culture

Tetley celebrates 180 years

Key Highlights GOOD IMPROVEMENT IN OPERATING PERFORMANCE AND GROUP NET PROFIT

SUSTAINED EFFORT ON INNOVATIONS & NEW CATEGORY LAUNCHES

INCREASED FOCUS ON DOMESTIC BRANDED BUSINESS

CONSOLIDATION OF INTERNATIONAL BUSINESS TO DRIVE FOCUS AND EFFICIENCY

BUSINESS RESTRUCTURING

SIGNIFICANT INCREASE IN MARKET CAPITALISATION

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Financial Highlights

In INR Cr

PROFIT BEFORE EXCEPTIONAL ITEMS & TAX

REVENUE

GROUP NET PROFIT

+1% 6815

+22%

+18%

6780

557

774 455

657

FY17

FY18

Higher by 2% in underlying terms

FY17

FY18

Higher by 19% in underlying terms

FY17

FY18

Higher by 22%

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Dividend Dividend Payout (Rs cr)

250% 235%

133

142

142

139

158

225%

225%

148

215%

225%

215% 215%

124

Steady increase in Dividend Payout over the years

133

225%

Dividend proposed is at Rs 2.50 per share as against a dividend of Rs 2.35 per share in the PY 6

Market Capitalisation One Year Period

As at 31st of March 2018 the market capitalisation stood at Rs 16330 cr • An increase of 72% for the year whilst the NSE Nifty increased by 10% • An increase of 101% over a period of 5 years whilst NSE Nifty increased by 78%

As of 4th of July our share price Mar-17 closed at Rs 277.30 & market capitalisation stands at Rs 17500 cr

% increase 110%

TGBL

NSE Nifty

72%

14%

Apr-17

May-17

Jun-17

Jul-17

Aug-17

Sep-17

Oct-17

Nov-17

Dec-17

10%

Jan-18

Feb-18

Mar-18

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Recent innovations and product launches INDIA MARKET

Tata Tea - Chakra Gold Activ+ & Kanan Devan Deut

Tata Tea Masala

RTD – Fruski

Himalayan - Orchard Pure and Sparkling

Cha by Tata Tea

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Recent innovations and product launches INTERNATIONAL MARKETS

Tetley Super Teas (UK)

Tetley Squash (UK)

Good Earth Kombucha (Australia)

Eight O’ Clock Infusions (USA)

Good Earth Tea (USA)

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BUSINESS PERFORMANCE HIGHLIGHTS

Branded Business - India Tata Tea brand moved to #2 from #13 in ET Brand Equity ranking of India’s Most Trusted Brand in Hot Beverages Category  Good sales growth

 Tea portfolio grows both in volume and value terms  Coffee shows good growth on a small base.  Good management of commodity costs and spends  Volume market leaders in overall tea category  Recent Launches –  Tata Tea - Chakra Gold Activ+ & Kanan Devan Deut  Spice mix range - Tata Tea Masala & Elaichi Chai,

 Ready to drink beverage – Tata Tea Fruski  New Initiative - Successful pilot for out of home experience stores Cha by Tata Tea in Bangalore. Three store opened till date.  Conclusion to Jaago Re version 2 campaign with petition submitted with the HRD Ministry 11

Tetley Green Tea – “Andar se Clean and Bahar se Active”

DEEPIKA PADUKONE the new brand ambassador for Tetley Green Tea

 Tetley Green Tea has 5 times more antioxidants than an apple  It cleanses you from within leaving you feeling refreshed and active  An enabler of a healthy lifestyle

Link to Tetley Ad

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Jaago Re

Branded Business - EMEA  In UK - #1 in Decaffeinated and #2 in Everyday Black, Redbush and Green in volume terms  Teapigs, our premium teas offering continues growth trajectory  Stable performance in France with Tetley Signature roll-out  Good growth in Western Europe led by Portugal with Super Teas  UK market – Subdued performance due to category decline in everyday black, high competitive intensity and impact on account of brexit.  However non-everyday black tea category growing  Recent Launches in UK  Tetley’s Super Squash listed with major retailers  Super Green Tea – Sunshine and Matcha flavours  Specialty Tea - Indulgence  Business restructuring  Russia business exited during the year  Internal restructuring and cost transformation projects 14

Landmark year for Tetley – 180th anniversary!

Branded Business - CAA US  Improved Sales performance driven by  Direct Keurig K-cups sales  Addition of private label sales  Growth in Good Earth sales  Good Earth brand relaunched with new identity and positioning  New Coffee varieties launched in US – Super Spice, B6 Metabolism and Acai Glow  Himalayan enters US (with Carbon Neutral certification) - Distribution arrangement with Talking Rain Beverage Company

CANADA & AUSTRALIA  Good performance in Canada & Australia despite aggressive competitive intensity and retailer pressures  Continues to be the No 1 tea brand in Canada with history of innovation  New Launches  Kombucha – pilot launch in Australia

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Non Branded Business TATA COFFEE LIMITED •

•

Operating Income and Profit impacted mainly due to • Abnormal and extreme weather conditions resulting in lower plantation crop • Lower terminal prices for Robusta Coffee • Lower sales in coffee extraction business State-of-the-art Freeze Dried Instant Coffee plant in Vietnam – setup progressing well

INSTANT TEA (B2B Business) • •

Stable performance in sales and profit Exited from China

Vietnam - Artistic impression

ASSOCIATES (Plantations) KDHP • Higher profitability due to improved volumes & realisation APPL

•

Improved performance – driven by higher volumes, realisation and better sales mix

EMSPL, Sri Lanka •

Exited during the year 17

JV/PARTNERSHIPS - India Nourishco – Pepsico Tata Starbucks

NourishCo – JV with PepsiCo Good Revenue growth driven by improved volumes Himalayan: New products gaining traction o Himalayan Orchard Pure range of flavoured water – Strawberry, Apple and Peach o Himalayan Sparkling water launched with premium chain of hotels Tata Gluco Plus:  Growing in both volume and value terms  Now launched in Odisha and Goa

 New variant TGP + juice Tata Water Plus continues to grow on distribution gains 19

Tata Starbucks  Topline growth of 28% yoy - better in store performance and growth through new stores. First year of positive EBITDA  Opened its 100th store, 118 stores opened till

date across 7 cities  The Food share of + 20% and increasing

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Tata Starbucks opens stores in Kolkata  Opens three stores in the City of Joy, couple more planned during the year  Intend to become the new “ADDA” for customers in Kolkata  Store designed to have a fusion of Starbucks heritage and culture of Kolkata

Curated exclusively for Kolkata market

Chomchom Tiramisu

Chocolate Rossomalai Mousse

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AWARDS & RECOGNITIONS

AWARDS Jaago Re and Tetley Super Green - Time’s Network National Award

Tetley in UK Foodservice Brand of the Year 2017

Tetley in UK – Great Taste Award for three products

CII’s Significant Achievement in Food Safety to three plants in India

Excellence in Coffee quality for Nullore and Coovercolly estates, by Ernesto Coffee International Coffee Award in New York

Aranya Naturals – First International Craft Award (part of Srishti Trust, Munnar supported by TGB)

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SOURCING IT RIGHT

SUSTAINABILITY INITIATIVES

IMPROVING LIVES

Specific Project with ETP and Tea Research Association

PROTECTING THE ENVIRONMENT

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Thank you