Analyst Meet

Q3’20-21 Results
Conference Call
8th February 2021

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 Disclaimer / Safe Harbor Statement

This presentation may contain statements which reflect Management’s

current views and estimates and could be construed as forward-looking
statements. The future involves risks and uncertainties that could cause
actual results to differ materially from the current views being expressed.
Potential risks and uncertainties include factors such as general economic
conditions, commodities and currency fluctuations, competitive product and
pricing pressures, industrial relations and regulatory developments.

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Operating environment

Robust General Trade & rural growth, however Modern

Trade & Institutional business is muted

Unlocked India → Diversification of purchase basket as

consumers transition to a normal life

Normalized pantry stocking & diversification of diet as

more products get on the shelf

Steep inflation in certain commodities like palm oil

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 Resilient topline growth & market share;
Significant improvement in profitability
Revenue Profitability

Consolidated Growth 24-month Growth PAT Growth PAT%

14.7%
6% 10% 22%
(+200 bps)

Market Share
Britannia Largest Competitor 2nd Largest Competitor
20 .0
Biscuit Market Share

32 .0

18 .0

30 .0

16 .0

28 .0

14 .0

26 .0
%

12 .0

24 .0

10 .0
22 .0

20 .0 8.0

12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20 Dec'20

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As per AC Nielsen Source: Company Financials – Consolidated Results
 We continued to focus on our strategic planks

Striving for profitable growth

#1 Distribution & #2 Innovation #3 Cost focus #4 Adjacent business #5 Sustainability

Marketing

Adjacent

Core

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 1A. Driving efficiency in distribution

Increase in Direct Reach Upbeat Rural distribution

25.0

22.9 23K
21.0 19k
19.7

Preferred Dealers)
No of RPDs (Rural
No. of outlets

20.0
18.4 18k
15.5 14k
15.0

12.6 10k
10.0 7k 8k
7.3
10.0

5.0

Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Dec'20 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Dec'20

YOY Double digit growth in Hindi belt

1.7

1.6
1.6x
1.5

1.4 1.3x 1.4x 1.3x

1.3

1.0 1.0 1.0 1.0

1.2

1.1

1.0

0.9

0.8

0.7

Rajasthan MP UP Gujarat
YTD 2017-18 YTD 2020-21 6
 1B. Marketing activities back to normalcy

Good Day Cashew Bourbon IPL, Treat Burst Tiger Krunch

Campaign

Key
Brands
on air

50-50 Nutri Choice Bar & Layer Cake

E-commerce visibility & virtual stores Swiss Roll -Chota Bheem Promos

Activation
Key Brands on
/ Promo
Air

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 2. New Launches in the quarter

Wafers Rs. 10 → Growth unlock Shubhkamnayein → Diwali Greetings

Pure Magic Chocolush Hazelnut

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 3. Continue to sustain the Covid efficiencies

Factory productivity Wastages

1 1

1.0x
1

1.07x
1

1 1

1.0x 1
0.7x
1

1 1

Pre Covid Current Pre Covid Current

Direct dispatch from factories to distributors Depot space

26

1.0x
1.5x
19

26

17
25

15 25

13

1.0x
24

0.9x
24

11

23

9
23

7 22

Pre Covid Current Pre Covid Current

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4. Adjacency businesses driven hard

International Bakery Adjacency

❑ Healthy growths in Middle

East & Africa

❑ Rest of International continue

to grow at a healthy pace
Improvement in Bread Stable growth & improved
Growth & profitability profitability
profitability
improvement

Dairy
❑ Cheese continues to grow double digit

❑ Recovery in Drinks as out of home

consumption picking up gradually

❑ Lower milk prices

❑ Improved Profitability 10
 5. Sustainability
Reduce Plastic Enhance the good in product

Goals
Laminate reduction
Plastic Tray removal
Easily Recyclable laminate
Plastic Recycling
Achievement
Goals Achievement
15% per ton of FG since 13-14
5% Sugar reduction by
Treat Creams Work underway for 2 large brands
2022
Transitioned for a major Brand
5% Sodium reduction
Work underway for 3 large brands
Building capability inhouse by 2022

Energy Nutrition

Goals Achievement Approach

➢ Community based approach to improve the health and

Fuel Reduction 35% since 13-14 nutrition of children, adolescents and women

➢ Distribution of iron enriched biscuits

Renewable power To reach ~45% by end 2021

➢ Programs in 4 states and across 36,000 children

Team is driving the agenda with passion 11

Q3’20 Financials

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 Revenue growth

FY 18-19 (12%) FY 19-20 (4%) FY 20-21 (14%)

3,384 3,354
3,106
3,023
2,936
2,855 2,827 2,808
2,764
2,677
Consolidated NSV

2,527
Rs Crs.

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Q1 Q2 Q3 Q4 Q1 Q2 Q3

Growth% 6% 6% 4% 2% 26% 11% 6%

24 month growth% 20% 19% 15% 12% 34% 18% 10%

Consolidated NSV as per published results Nos. in the bracket indicate revenue growths 13
On cost front..

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 Commodity.. Moderate inflation @ ~1%
Steep inflation in Palm oil

Flour Rs./kg Sugar Rs./kg

Q3 Deflation: 7% Q3 Inflation: 1%

16-17 Q1'18 Q2 18Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 16-17 Q1'18 Q2 18Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

RPO Rs./kg Milk Rs./Ltr

Q3 Inflation : 25%
Q3 Deflation: 15%
16-17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 16-17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

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 And our journey on cost efficiencies is
moving ahead with full steam, which has
resulted in…

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 Sustained improvement in profitability

FY 18-19 (14.3%) FY 19-20 (14.5%) FY 20-21 (18.9%)

19.8%
18.7%
18.1%
669
627
15.5%
650

14.8% 563
14.6% 14.5% 14.5%
Consolidated Operating Profit

14.0% 14.1%
550

13.1% 447 455

417 409 406
390
450

354 350
350
Rs Crs.

250

150

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

Q1 Q2 Q3 Q4 Q1 Q2 Q3

Growth% -1% 7% 11% 4% 91% 40% 24%

24 month growth% 19% 30% 24% 14% 89% 50% 38%
Consolidated Operating profit as per published results Percentages indicate operating profit % to Consolidated NSV 17
 Key Financial Lines – Consolidated (Reported)

Particulars Q3’20-21 Growth %

Net Sales 3,106 6%
Operating Profit 563 24%
Profit Before Tax 614 23%
Profit After Tax (Owner’s share) 456 22%

20-21 20-21 20-21

Particulars 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-20
Q1 Q2 Q3

Profit from Operations% 5.7% 8.0% 9.3% 13.2% 12.9% 13.8% 14.3% 14.5% 19.8% 18.7% 18.1%

Profit before Tax% 5.8% 8.3% 12.2% 14.7% 14.5% 15.4% 16.1% 16.1% 21.8% 20.0% 19.8%

Profit after Tax% 4.2% 5.8% 8.9% 9.9% 9.9% 10.2% 10.6% 12.3% 16.1% 14.9% 14.7%

Source: Company Financials – Consolidated Results 18

Looking forward

Accelerate the pace of Innovation & new launches

Strengthen Distribution Infrastructure & reach

Focus on brand building & visibility

Large IT transformation project underway

Drive the ESG Agenda

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