May 11, 2023

Disclaimer

Some of the statements in this communication may be forward looking within the
meaning of applicable laws and regulations. Actual results might differ substantially
from those expressed or implied. Important developments that could affect the
Company’s operations include changes in the industry structure, significant changes in
political and economic environment in India and overseas, tax laws, import duties,
litigation, and labour relations.

2
Developing categories
GCPL’s Strategy - A Progress Report
Sudhir Sitapati
Recap Strategy Outlook
of FY23 for FY24 for FY24

4
The December 2021 strategy
Double-digit volume growth Led through category development Funded by radical simplification

Consumers

UVG

Shareholders Employees

But, what does it mean in the short term?

5
The strategy led to a plan
Jan’22: Our plan for FY23 Feb’22: The Ukraine crisis

PFAD prices (USD/MT)

1,475
Moderate High price
volume growth growth
1,000

Good GM but moderate EBITDA

due to media investments
Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22

Question: How do you deal with a black swan event that

occurs just after you’ve made a plan?

6
Answer: Stick to the strategy but rethink the metrics

Media spends Consolidated inventory Cash flow from operations

40%
INR cr

21 days FY19

Reduction
FY20

Indonesia MT channel inventory FY21

24 days FY22

Reduction FY23 ~2,150

FY22 FY23
INR 1,000 cr INR 2,000 cr

Invested in category Simplified business Cash, not margin, is King

development

7
 Progressively stronger performance with a very strong Q4 (1/3)

India Q4
Household Insecticides
In teens
Household Insecticides
Early double-digit
+24% y-y
17%
16% 15%
56.2%
14% 13%
12%
+26% y-y

26.6%

India Branded Home Care Personal Care India Branded Home Care Personal Care Gross Margin EBITDA Margin

Broad-based Led by double-digit Profitability despite 51%

sales growth volume increase in media

8
Progressively stronger performance with a very strong Q4 (2/3)

Indonesia Q4 GAUM Q4

DOUBLE
11% 21.5% 8%
sales sales
growth growth DIGIT
Core business EBITDA margin (constant currency) Africa FMCG
(ex-Hygiene, sales growth
constant currency)

Improving core business Steady growth trajectory

9
Progressively stronger performance with a very strong Q4 (3/3)

Consolidated Q4

6% 10% 17% 32% 29%

UVG Sales growth Gross profit EBITDA Net profit*
growth growth growth

*Net profit without exceptionals and one-offs 10

Recap Strategy Outlook
for FY23 for FY24 for FY24

11
GCPL’s key markets are at the cusp of explosive HPC growth

Source: Euromonitor; Internal estimates 12

Our strategy responds to this big insight

OUR OUR
PURPOSE Bringing the goodness of health and beauty VALUES
to consumers in emerging markets

Category development Funded by radical People and Planet

OUR OUR in existing portfolio simplification alongside Profit
VISION STRATEGY
Delight 2 billion
consumers by 2027

OUR OPERATING 1 Less is more; Much 2 Consumer first, 3 Think local, 4 Tomorrow 5 Better from within,
less is much more Business second Act global before today Different from outside
PHILOSOPHY

OUR 1 10% UVG 2

More spends on brands,
3
More automation,
4
More diversity, Less
Less on cost to serve Less working capital environmental impact
MEASURES 13
 As we enter FY24, our strategy remains unchanged
Invest in India and simplify in International

Category development Funded by radical People and Planet

in existing portfolio simplification alongside Profit

14
 As we enter FY24, our strategy remains unchanged
Invest in India and simplify in International

Category
development in Funded by radical People and Planet
simplification alongside Profit
existing portfolio

15
The category development playbook
Driving relevance Investing in our brands

SOV (India)

+1,400 bps

FY21 FY22 FY23

16
The category development playbook

Create access Improve distribution Sample

Households

0 3 mn 6 mn
FMCG direct coverage in Africa

FY22 FY23
FY22 FY23 FY24
1.8x

x 2x

Nigeria Kenya 18
The capabilities for market development: Global categories (1/2)

Advertisements for Goodknight Liquid Vapouriser

Communication idea: Equal parenting
Fathers putting their child to sleep

India Nigeria Indonesia

21
The capabilities for market development: Global operations (2/2)

~70 USD
mn 16 5 Business
clusters 87
FY23 Markets larger LATAM, USA, Africa & Active markets
than $1mn Middle East, India & Indonesia

2X
Expand to Focus on building

120+ core
portfolio
business in
countries 3 years

Setting up Godrej International, a dedicated team to scale up Global Exports

22
We think our market development strategy is working

Source: NielsenIQ 23
Consumer
Connect
 As we enter FY24, our strategy remains unchanged
Invest in India and simplify in International

Funded by radical
Category development People and Planet
in existing portfolio simplification alongside Profit

25
The cost principles

Costs consumers see Costs consumers don’t see

Selling & Employee

Material cost Distribution cost cost

Media General & Administration cost

Reduce costs that consumers don’t see

26
Simplification in sales and distribution in Indonesia
A three tier distribution system moves to a two tier in 4 months

40% 30% 30% 60%

of sales through 10 of sales through of sales through of sales through
modern trade chains 110 distributors 60,000 outlets 140 distributors
27
Simplification in sales and distribution in GAUM
Partnered with a National Distributor in Nigeria

Leverage Increase
National outlets by
Distributor’s
strong reach ~2X
Increase Reduce lead
warehouse times by
footprint
~4X
Benefit from Better working
National capital
Distributor’s management
larger presence
Simplification in supply chain in GAUM
Consolidate manufacturing in Nigeria for part of the USA business

Lower net Simplify USA to a Higher USD availability

manufacturing cost marketing and distribution in Nigeria = lower
focused business forex expenses

29
 Integrating technology in decision making

Algorithms over judgement Shared Services

From To

Demand forecasting Heuristics based Data analytics

Finance Supply Chain
Cost assumptions Current trend Future outlook

Media planning Judgement based Algorithmic model

Forecasting horizon Next 3 months Next 12 months

Godrej
Financial forecasting Bottoms up Integrated model HR International
Operations
Decision making Reactive Proactive

30
And it’s working | Reduction in controllable costs

Break up of controllable cost savings

Overheads

Sales & Supply

Distribution Chain

Non-working ATL ~2200

FY23 controllable cost savings of

150 bps
31
 As we enter FY24, our strategy remains unchanged
Invest in India and simplify in International

People and Planet

Category development Funded by radical
in existing portfolio simplification alongside Profit

32
Building a stronger performance culture

Input metrics Output metrics

UVG USG

EBITDA + Media EBITDA Higher Lower Higher

fixed in year salience of long
compensation variable pay term incentives

Less working Cash from

capital operations

When you focus on input, output happens Aligning reward structure to

long-term performance

33
Planet alongside profit

FY23 FY26

Emissions Emissions

Reduced by 48% Net zero by 2035*

from FY11 baseline *Scope 1 and 2

Renewables Renewables

32% of energy 60% of energy

Plastics Plastics

Plastic neutral Remain neutral

34% recyclable 80% recyclable

34
Recap Strategy Outlook
for FY23 for FY24 for FY24

35
Double-engine of FMCG
Driving multi-year sustainable
Volume Growth and Gross Margin
Sameer Shah
Our macro prognosis for FY24

Continue momentum
Continue volume-led Expect minimal
(FMCG in Africa, Air
growth momentum price growth
Fresheners and Hair
Colours in India)

Scale up Household Recovery in Gross margins revert

Insecticides in India Indonesia to normative levels
Aim to deliver sustainable volume-led profitable growth

Quality of profits

Gross margins
High single-digit UVG*

Media investments

High teens EBITDA growth*

Controllable cost

*Organic business 38
Continued focus on improving cash flow from operations

Optimise controllable Reduce complexity Working capital

cost across value chain in operations reduction

Cash flow from operations growth > EBITDA growth*

*Organic business 39
Capital deployment plans

Net cash ( crore)

2,209
Utilised
cash to Net cash
repay debt Evaluate suitable options
for returns to shareholders

Net debt
post RCCL
business
acquisition
-2,558

Mar'20 Mar'23 May'23 Sep'23 Mar'24

 Journey so far and looking ahead

FY23* FY24* FY25*

H1 H2

Weak Stable Strong High gross Pricing Healthy

volumes volumes volumes margin growth volumes
Low gross Recovering
margins gross margins

High media investments
Low controllable cost
High cash from Operations
High media investments Scale benefits driving healthy
EBITDA growth
Low controllable cost
Cash from Operations
growth > EBITDA growth

*Organic business 41
Q&A
Thank you
www.godrejcp.com