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ITC Limited ITC Limited
ITC Limited ITC Limited
95-96 Net Turnover PBDIT PBIT PBT PAT EPS ` /Share * Net Worth Capital Employed Market Capitalisation Total Shareholders Returns %
*Adjusted for Bonus Issue and Stock Split
10-11 21,168 7,972 7,316 7,268 4,988 6.49 15,953 16,854 140,408
Cagr 95-96 to 10-11 15.2% 19.0% 19.0% 20.3% 21.7% 21.4% 19.4% 15.7% 24.0% 25.6%
ITCs ranking
Amongst all listed private sector cos. PBT: No. 5 PAT: No. 5 Market Capitalisation: No. 3
ITC ranked 6th amongst global consumer goods companies in sustainable value creation during 2005-09
(Boston Consulting)
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ITC
Sustained value creation (BT-Stern Stewart survey) Operating profits Cash Profits
Ranks No. 3 among Indian listed Private Sector Companies by market cap. No. 1 in FMCG Sector A comprehensive ranking of worlds biggest companies measured by a composite of sales, profits, assets & market value Only Indian FMCG Company to feature in Forbes 2000 List
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ITCs Vision
Sustain ITCs position as one of Indias most valuable and admired corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders
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ITCs Vision
Make a significant and growing contribution towards : mitigating societal challenges enhancing shareholder rewards
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By creating multiple drivers of growth while sustaining leadership in tobacco and focusing on Triple Bottom Line Performance
Enlarge contribution to the Nations
- Financial capital - Environmental capital - Social capital
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Blend diverse core competencies residing in various businesses to enhance the competitive power of the portfolio Position each business to attain leadership on the strength of world class standards in quality and costs Leverage the goodwill of trademarks to:
Capture emerging opportunities Further enhance current brand equity
Matches
Incense Sticks
Hotels
Agri Business
Information Technology
FMCG - Cigarettes
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1256 1145
China
USA
Pakistan
Nepal
India
World
Source:World Cigarettes ERC Statistics, Tob Board & Industry Estimates gms/Yr
391
274
172
Bangladesh
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India
Japan
China
USA
rd
Pakistan
Nepal
Edition
Cigarettes: Challenges
Competitive context
Competition including international majors becoming more active Domestic illegal volumes still very strong. Along with smuggled contraband, has emerged as substantive competition
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Strategic Rationale
Blend multiple competencies residing within the ITC Group to create new avenues of growth Best fit between internal capabilities and emerging market opportunities Each segment enhances the depth and width of ITCs FMCG distribution capability Business model retains critical elements of value chains within ITC with other elements outsourced Contributing to the competitiveness of SMEs
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Driven by seven brands Aashirvaad Staples (Wheat flour, Salt, Spices), RTE Sunfeast Biscuits & Pasta Bingo! Snack Food Yippee! Noodles mint-O & Candyman Confectionery Kitchens of India RTE, Premium conserves & chutneys
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Biscuits
#3 All India
Noodles
#2 All India (Urban)
Confectionery
Close #2 in operating segments
Ready-to-Eat
#1 in RTE Gourmet & popular cuisines - leveraging cuisine expertise of Hotels business Premium Conserves & Chutneys a first in India
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Brands
Classmate Paperkraft Colour Crew
- Utilizes Ozone chlorine free technology first of its kind in India made by ITC
Treated
elemental
Whitest and Brightest 75 GSM paper for office and home use
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Lifestyle Retailing
2 major brands:
Wills Lifestyle - a fashion destination, offers a choice of Wills Signature designer wear, Wills Classic work wear, Wills Classic Luxuria super-premium formals for men, Wills Sport relaxed wear, Wills Clublife evening wear & fashion accessories John Players - offers a complete fashion wardrobe to the youth
Wills Lifestyle - the title partner of Indias most premium fashion event Wills Lifestyle
Lifestyle Retailing
Leverages trademark and services expertise of hotels Upmarket product range available in exclusive Wills Lifestyle stores (80) and multi-branded outlets/ large format retail stores across the country Strong distribution network in place for the mid-market brand John Players availability in more than 334 Exclusive Branded outlets, 1600 multi branded outlets and departmental stores Wills Lifestyle rated amongst the top 5 Luxury brands in the country (Global Luxury Survey conducted by TIME Magazine)
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Safety Matches
Current industry consumer spend estimated at `2250 crores p.a. for 22 billion match boxes Fragmented supply base arising from policy of reservation for small scale industry Mass market has moved to ` 1.00 price point. ITC markets its brands with value added products across each price point Support SMEs with complementary marketing strengths AIM Indias largest selling Safety Matches brand Providing opportunities for employment to over 6000 people
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Personal Care
Our brands: Essenza Di Wills Fiama Di Wills Vivel Superia Product portfolio: Fine fragrances Soaps Shampoos Fairness Cream Conditioners Shower Gels Talc Hair Serum
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Essenza Di Wills (Prestige) Fiama Di Wills (Premium) Vivel (Mid) Superia (Popular)
Products well received in the market, gaining customer acceptance Supported by investments in brands celebrity endorsements Investments being made in Research & Development and strategic
manufacturing sites
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Hotels
No 2 in Size No 1 in Profitability
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ITC-Welcomgroup: fastest growing Hospitality chain in India Over 100 properties across 80 destinations 4 Brands ITC Hotels, WelcomHotel, Fortune & WelcomHeritage
No of Hotels 15 38 53 106 5 Star Deluxe Fortune Heritage Total Owned/ leased 2732 Rooms Managed 705 3088 1335 5128 Total 3437 3088 1335 7860
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Exclusive tie up with Starwoods Luxury Collection for 8 Hotels. The Hotels business achieved the unique distinction of being the first hotel chain in the
world to have all its premium luxury hotels certified at the highest LEED (Leadership in Energy and Environmental Design) Platinum Rating 40
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Agri Business
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Rural Indias largest Internet-based intervention Over 40000 villages linked through around 6500 e-Choupals servicing over 3.5 million farmers
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2010-11 Segment Revenue (Net) a) FMCG - Cigarettes - Others Total FMCG b) Hotels c) Agri Business d) Paperboards, Paper & Packaging Total Less : Inter segment revenue Net sales / income from operns. 10574 4472 15045 1001 4748 3507 24301 3134 21168
Full Year 2009-10 9321 3634 12955 851 3862 3108 20776 2623 18153
Goly 13.4 23.1 16.1 17.6 22.9 12.9 17.0 19.5 16.6
2010-11 Segment Results a) FMCG - Cigarettes - Others Total FMCG b) Hotels c) Agri Business d) Paperboards, Paper & Packaging Total Less : i) Interest (Net) ii) Other net un-allocable expenditure/ income Profit Before Tax 5767 (298) 5469 267 566 819 7121 48 (195) 7268
Full Year 2009-10 4938 (350) 4589 217 448 684 5937 65 (143) 6015
Goly 16.8 14.9 19.2 23.0 26.5 19.7 19.9 -25.7 -36.6 20.8
2010-11 Capital Employed a) FMCG - Cigarettes * - Others Total FMCG b) Hotels c) Agri Business d) Paperboards, Paper & Packaging Total Segment Capital Employed * Local Tax Provision not incl. 3062 1897 4959 2728 1562 3770 13019 756
Full Year 2009-10 2961 1666 4627 2457 1580 3711 12375 629
Q2 2011-12 Segment Revenue (Net) 2968 1341 4309 211 1435 1005 6960 986 5974 a) FMCG - Cigarettes - Others Total FMCG b) Hotels c) Agri Business d) Paperboards, Paper & Packaging Total Less : Inter segment revenue Net sales / income from operations
Q3 GOLY(%)
Q2 2011-12 1729 (56) 1673 43 239 290 2245 14 15 2215 Segment Results a) FMCG - Cigarettes - Others Total FMCG b) Hotels c) Agri Business d) Paperboards, Paper & Packaging Total Less: i) Interest (Net) ii) Other net un-allocable expenditure/ income Profit Before Tax
Q3 Actual Last Year 2011-12 2010-11 1844 (47) 1798 102 142 224 2265 16 (227) 2477 1533 (74) 1459 89 129 191 1869 11 (174) 2031
Q3 GOLY(%)
20.3 36.6 23.2 14.8 9.7 17.2 21.2 41.4 30.6 21.9
YTD Dec '11 2011-12 Segment Revenue (Net) a) FMCG - Cigarettes - Others Total FMCG b) Hotels c) Agri Business d) Paperboards, Paper & Packaging Total Less : Inter segment revenue Net sales / income from operations 9075 3909 12984 720 4281 2943 20928 2991 17937 7806 3159 10965 700 3666 2590 17922 2591 15331 16.2 23.7 18.4 2.8 16.8 13.6 16.8 15.5 17.0 2010-11 Goly(%)
YTD Dec '11 2011-12 Segment Results a) FMCG - Cigarettes 5150 - Others (179) Total FMCG 4971 b) Hotels 196 c) Agri Business 538 d) Paperboards, Paper & Packaging 741 Total 6446 Less: i) Interest (Net) 46 ii) Other net un-allocable expenditure/ income (229) Profit Before Tax 6629 2010-11 4296 (230) 4066 167 467 626 5325 34 (140) 5431 Goly(%) 19.9 22.2 22.2 17.7 15.2 18.5 21.0 35.7 63.8 22.1
Q2 2011-12 3899 1924 5823 2989 1487 4006 14306 797 Capital Employed a) FMCG - Cigarettes* - Others Total FMCG b) Hotels c) Agri Business d) Paperboards, Paper & Packaging Total Segment Capital Employed * Local Tax Provision not incl.
Q3 Actual Last Year 2011-12 2010-11 4176 1852 6028 3061 1559 4082 14731 821 3394 1719 5113 2600 1479 3734 12927 724
Q3 GOLY(%)
Social Impact
Direct employment ITC Group : 29,000 Indirect employment across the value chain : 5 million e-choupal: worlds largest rural digital infrastructure serving nearly 4 million farmers Social and Farm forestry initiative has greened over 125,000 hectares & provided approx. 51 million person-days of employment among tribals & marginal farmers Significant thrust on social sector investments
Natural resource management Sustainable livelihoods Community development programmes in the economic vicinity of operating locations
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Environmental Impact
Carbon positive enterprise 6th year in a row
Sequestering/storing twice the amount of CO2 that the company emits
Solid waste recycling positive 4th year in a row Nearly 35% of total energy consumed is from renewable sources
Only Company in the world to achieve all 3 key indices of environmental sustainability
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Forward-looking Statements
Statements in this presentation describing the Companys objectives, future prospects, estimates, expectations etc. may be forward looking statements within the meaning of applicable securities laws and regulations. Investors are cautioned that forward looking statements are based on certain assumptions of future events over which the Company exercises no control. Therefore there can be no guarantee as to their accuracy. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but are not limited to: growth, competition, acquisitions, domestic and international economic conditions affecting demand, supply and price conditions in the various businesses in the Companys portfolio, changes in Government regulations, tax regimes and other statutes, and the ability to attract and retain high quality human resource.
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