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Profile
ITC & its Group Companies employ over 34,000 people directly; Sustainable development
models and value chains have supported creation of ~6 million sustainable livelihoods
Aglobal exemplar in sustainable businesspractices
- Only enterprise in the world of comparable dimensions to have achieved and sustained the 3 key global indices of
environmental sustainability of being 'water positive' (for 17 years), 'carbon positive' (for 14 years), and 'solid waste
recyclingpositive'(for 12years)
^ FY19 Reported Gross Revenue (US$ 6.5 billion) not comparable a/c GST transition; Gross Sales Value includes all taxes (GST, Compensation Cess, VAT,
Excise Duty, NCCD,etc.)
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ITC Performance TrackRecord
(` crs)
10-yrCagr
2008-09 2018-19 08-09to
18-19
Net Revenue 15,612 44,415 11.0%
PBT 4,826 18,444 14.3%
PAT 3,264 12,464 14.3%
Capital Employed 14,780 60,005 15.0%
SegmentROCE% 39.7% 70.3%
Market Capitalisation 69,751 3,63,714 18.0%
Total Shareholder Returns% 20.3%
Gross Revenue (Rs. 45,221 cr.) not comparable a/c GST transition; Market Cap and TSR based on FY-end prices for FY09 and FY19
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ITC’s ranking
Amongst all listed private sector cos.
PBT: No.5
PAT: No. 5
Market Capitalisation: No. 6
Note: Based on Published Results for FY19, Market Capitalisation based on BSEclosing as on 28th Jun2019
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ITC’s VisionStatement
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ITC’s Vision
By
• creating multiple drivers of growth while sustaining leadership in
tobacco, and
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Key CorporateStrategies
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Strategy of Organisation
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ITC’s Business Portfolio
FMCG
Cigarettes Foods Personal Care Lifestyle Retailing^
Market leadership
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Cigarette Industry in India
India is the 4th largest market for illegal cigarettes in the World; causing a
Revenue loss of over 13,000 cr. p.a. to the Exchequer
42% of adult Indian males consume tobacco. Only 7% of adult Indian males smoke
cigarettes as compared to 14% who smoke bidis and 30% who use smokeless tobacco
(Source: Global Adult Tobacco Survey India2016-17)
Annual per capita adult cigarette consumption in India is approx. one-ninth of world
average
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Legal Cigarettes contribute 86% of TaxRevenue, despite constituting
only 10% of Tobacco consumption
Legal
Cigarettes Legal Other
Other
10% Cigarettes Tobacco
Tobacco
86% Products
Products
14%
90%
Cigarette taxesremain, effectively, about 55times higher than on other tobacco products (on aper Kgbasis of tobacco
consumption)
Note: Consumption Share and Tax Revenue based on 2016/17 data
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Cigarettes are least affordable in India
4.38 4.38
2.81 3.01
As shown above, in GDPper Capita terms, Cigarettes in India are less affordable than in other
countries viz. USA, Germany, China,Australia, Malaysia & Pakistan.
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Per Capita Cigarette Consumption – 11% of World average
1583
1017
828
748
363
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• Although India accounts for over 17% of world population, its share of world cigarette consumption is less than 2%
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FMCG Cigarettes
• Graphic health warnings covering 85% of the surface area of the packet,
amongstthelargestin the world. ThecurrentGHWwith evenmoregruesomeimages hasbeenin place
sinceSep’18.Onthe other hand, the smuggledillegal cigarettesdo not bear anysuchpictorial or textual
warnings or bear muchsmaller pictorial warnings as per the tobacco laws of the countries from where
thesecigarettesaresourced.
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Creating World-class brands for Indian Consumers
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Rapid scale up of FMCG businesses
(` crs)
12505
11329
10512
9731
9038
8122
7012
5545
4482
3642
2511 3014
1704
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Note: Reported Gross Revenue for FY18 & FY19 not comparable a/c GST transition; Comparable FMCG Business growth
for FY19 at 12% as compared to reported growth of 10.4%
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Annual Consumer Spends of over 18000 cr.(FY19)
>4500cr.
>3800cr.
~2500cr.
>1400cr.
>1100cr.
>500cr.
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Branded Packaged FoodsPortfolio
Biscuits, Staples, Snacks, Noodles & Pasta, Confectionery, Ready to Eat, Juices,
Dairy, Chocolates and Coffee
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Branded Packaged Foods: Some recent launches
Candyman
Aashirvaad Pouch BNatural Juiceswith Sunfeast WonderzDairy Fantastik
Milk, Dahi andPaneer regional flavours Beverages
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Refreshed & High Decibel Campaigns across KeyBrands
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Moment Marketing Campaigns during Cricket World Cup
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Integrated Manufacturing and Logistics facilities
The manufacturing capability of ICML Trichy was augmented with the commissioning of state-of-the-art
lines for Finger Snacks,Atta and Biscuits.
Capacity Utilisation at Kapurthala, Panchla, Uluberia, Mysuru and Guwahati being
progressively rampedup.
Steady progress is being madetowards development of other such facilities which are expected to be
commissioned in the near to medium term.
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Personal Care: Some recent launches
Vivel
EngageDeo – CharmisCream Dermafique rangeof
Bodywash
Nudge & Tickle PremiumSkincare
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Refreshed & High Decibel Campaigns across KeyBrands
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Education & Stationery Products Business
Leverage Company’s paper & printing expertise and distribution network
- Classmate, Saathi and Paperkraft brands continue to enhancemarket standing
Industry growth driven byincreasing literacy and enhanced scale of government and public- private education
initiatives
Classmate is the Market leader in Notebookssegment
− Deepening consumer engagementthrough Classmateshop.com and MyClassmate app to deliver customised
notebooks
Increase presence in writing instruments and scholastic products segment leveraging the Classmate
brand
MyClassmateAPP
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Incense sticks (Agarbattis) & Safety Matches
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Hotels
• Leader in Profitability
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Hotels & Tourism industry
Foreign TouristArrivals (FTA)growth has been steady with significant headroom for growth.
– FTAinto India at 10.5 million but remains far behind China (~60million)
[Source: Ministry of Tourism, UNWTO Tourism Highlights 2018 edition]
– Going forward, aseconomic conditions and infrastructure improve, leisure tourism and business related
travel is also projected to growfaster
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Hotels Business
The Chain: More than 108properties over 70 locations
− 4 Brands: ‘ITC Hotels’ in the Luxury segment, ‘Welcomhotels’ in the Upper-Upscale segment,
‘Fortune’ in the Mid-market to Upscale segment and ‘WelcomHeritage’ in the Leisure & Heritage
segment
• 28Five-Star Deluxe/ Five-Star Properties with over 5650rooms
• 46Fortune Hotels with nearly 3500rooms
• 34WelcomHeritage Properties with over 850rooms
Projects underway:
⁻ ITC Hotel atAhmedabad
⁻ Welcomhotels at Bhubaneswar, Guntur andAmritsar
ITCNarmada
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ITC Royal Bengal, Kolkata – Launched on 1st Jun 2019
ITC RoyalBengal
456 Keys
(254 Keysin
Phase-1)
5 Signature restaurants
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ITC Hotels: Trailblazer in Green Hoteliering
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Paperboards & Packaging Business
• No. 1 in Size
• Best-in-class Profitability
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Indian Paperboard market
Low per capita usageof paper at around 13kgsp.a. (world average– over 57kgsp.a.)
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ITC’s Paperboards, Paper & Packagingbusinesses
ITC’s packaging SBU- India’s largest converter of Paperboard into high qualitypackaging
– Provides superior packagingsolutions to cigarettes and other FMCG businesses
– Leadingsupplier to Indian FMCGindustry
– Strengthened its capabilities asaone-stop-shop for packagingsolutions with the addition of a
rigid boxand aflexo corrugation line
TPA: Tonnes per annum
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Agri Business
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ITC’s Agri CommodityBusiness
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ITC’s Agri Commodity Business-Value-Added Segment
FarmlandApples FarmlandPotatoes ITCMaster Chef ITC Master Chef Super ITC Master Chef
prawns Safe Smart Onions Mango Puree
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ITC’s Leaf TobaccoBusiness
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Headline Financials : FY18-19
GrossRevenue for the year ended Mar’19 is not comparable with the previous period a/c GSTtransition.
(` crs)
• Cigarettes: Stability in taxesduring the year provided somerelief to the legal cigarette industry; growth in volumes on softbase
• FMCGOthers: Comparable Revenue^up 12%with most major categories enhancingtheir marketstandings
• Hotels: Improvementin RevPar and addition of two world-class properties to theportfolio
• Agri Business: Tradingopportunities in Wheat, Coffee, Oilseeds & Spices;leaf exports flat
• Paperboards, Paper & Packaging: Enriched mix, higher volumes,Décor& PM1A capacity, improvedrealisation
^ ex-Lifestyle RetailingBusiness 43
Segment Results – Full Year
(` crs)
Full Year
2019 2018 Goly(%)
Segment Results
a) FMCG - Cigarettes 14551 13341 9.1
- Others 316 164 92.4
- Restructuring of Lifestyle
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Retailing Business
Total FMCG 14937 13505 10.6
b) Hotels 178 140 27.1
c) Agri Business 777 849 (8.5)
d) Paperboards, Paper & Packaging 1239 1042 18.9
Total 17131 15536 10.3
Less : i) FinanceCost 34 87
ii) Other un-allocable (income) net of
un-allocable expenditure (1347) (990)
• FMCG-Others SegmentEBITDAup 51%to 688cr.aided byenhancedscale, mix enrichment & operating leverage; despite steppedup
marketing expenses, input cost increases, gestation of new categories & start-up costs of new facilities and ongoing Lifestyle Retailing
Business restructuring
• Hotels growth driven byhigher room rates andoperating leverage;gestation cost of newpropertiesabsorbed
• Agribusiness impactedbysubdueddemandfor leaf tobaccoin international marketsandleaf costescalation pertainingto Andhra2017
crop
• Paperboards, Paper & Packaging margin expansion driven by product mix enrichment, higher realisation, strategic investments in
importedpulpsubstitution,processinnovationandacost-competitivefibre chain.
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ITC - Key Financials – Q119-20
(` crs)
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Gross Segment Revenue – Q1 19/20
(` crs)
Q1
2019-20 2018-19 GOLY%
Segment Revenue (Gross)
a) FMCG - Cigarettes 5433 5128 6.0
- Others 3060 2870 6.6
Total FMCG 8493 7998 6.2
b) Hotels 393 341 15.0
c) Agri Business 3611 3151 14.6
d) Paperboards, Paper & Packaging 1528 1356 12.7
Total 14025 12846 9.2
Less : Inter segment revenue 2663 2124 25.4
Gross Revenue from sale of products &
11361 10722 6.0
services
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Segment Results – Q1 19/20
(` crs)
Q1
2019-20 2018-19 GOLY%
Segment Results
a) FMCG - Cigarettes 3849 3558 8.2
- Others 78 50 55.7
Total FMCG 3927 3609 8.8
b) Hotels 10 13 (21.4)
c) Agri Business 203 195 4.3
d) Paperboards, Paper & Packaging 330 296 11.5
Total 4470 4112 8.7
Less : i) Finance Cost 15 7
ii) Other un-allocable (income) net of un-
(357) (195)
allocable expenditure
Profit Before Tax 4812 4300 11.9
• FMCGOthers: Segment EBITDAup 41% to 181 cr. – Enhancedscaleand mixenrichment despite steppedup marketing expenses,
gestation & start-up cost of newcategories/facilities
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Segment Capital Employed
(` crs)
Q1
2019-20 2018-19 Mvt
Segment CapitalEmployed
a) FMCG - Cigarettes 3412 3211 201
- Others 7456 6711 744
Total FMCG 10868 9923 945
b) Hotels 5494 5092 402
c) Agri Business 3607 2561 1046
d) Paperboards, Paper & Packaging 6172 6097 75
Total Segment CapitalEmployed 26141 23673 2468
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ITC’s Economic Contribution to the Nation
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Social Performance
e-Choupal: world’s largest rural digital infrastructure serving more than 4 million farmers
Social and Farm forestry initiative has greened nearly 733,000 acres and generated nearly
135 million person days of employment for rural households, including poor tribal and
marginal farmers.
– Natural resourcemanagement
– Sustainable livelihoods
– Community development programmes in the economic vicinity of operating
locations
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Making Agri value chains competitive
Quality, productivity, market access, sustainable practices
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Environmental Performance
ITC won the prestigious Porter Prize 2017 for 'Excellence in Corporate Governance and
Integration' and for its exemplary contribution in 'Creating Shared Value'.
ITC ranked 3rd amongst leading corporates in India in terms of Corporate Reputation
(Nielsen Corporate Image Monitor 2014-15)
ITC ranked asthe most admired company in India in 2014(Fortune-Hay Group survey)
ITC recognised amongst the Top 10 employers in India byRandstadEmployer Brand Research
survey 2018.
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Awards in 2019/20
Sunfeast Farmlite bagged Bronze for ‘Video Craft’ in Music category at ABBYAwards 2019.
Mangaldeep wins Digital Crest Awards 2019 for ‘Best Mobile App’.
Dermafique wins Cosmopolitan Awards 2019 for ‘Best Body lotion’ and ‘ Best BBCream’
Essenza Di Wills wins Silver for ‘Video Craft’ in Cinematography category at ABBYAwards 2019
Club ITC won the ‘210 Award’ at the 29th Annual Freddie Awards held in Seattle USA.
ITC PSPD,Unit Kovai has been awarded the prestigious “GreenCo Platinum” Award by CII in2019.
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Major Awards in 2018/19
Mr Sanjiv Puri, Chairman & Managing Director, was honoured with the ‘Distinguished Alumnus Award
of the Year 2018’ conferred by IIT, Kanpur in recognition of his achievements of exceptional merit.
ITC’s leading hygiene brand Savlon, became the ITC’s Paperboards Business was recognised as the
first Indian brand to win the Grand Prix for Best Performer in the pulp & paper sector by the
‘Creative Effectiveness’ at the coveted Cannes Bureau of Energy Efficiency under the Perform,
Lions2018 Achieve and Trade Scheme.
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Major Awards & Accolades over the years
ITC conferred the prestigious ‘World Rainforest Alliance awarded ITC's Businessworld
Business and Development Award Bhadrachalam Unit, the Forest FICCICSRaward in
2012’ at the Rio+20 UN Summit for its Stewardship Council Forest Large Enterprise
Socialand FarmForestry Initiatives. Management certification category
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Forward-looking Statements
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For More Information & Updates
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