Analyst Meet 17th August 2011

Disclaimer
This presentation may contain statements which reflect Managements 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.

Quick Recap

Re-cap From Last Meeting

Food is a large opportunity (USD 240 Billion) Branded packaged food is growing faster than overall food as also non-food FMCG
Growth driven by increasing income, quality consciousness and convenience seeking behavior

Within branded and packaged food, Biscuits is the largest category Dairy segment although branded is largely generic and growing, providing an opportunity for differentiation Non-biscuit bakery (Bread, Cake and Rusk) which is local & fragmented, presents a large opportunity for Britannia

Since Our Last Meeting

Results Highlights
Standalone Growth 2010-11 Q1 2011-12

Sales PAT
Consolidated Growth

23.8% 24.7%

21.4% 27.3%
Q1 2011-12

2010-11

Sales PAT

22.1% 30.2%

21.2% 38.8%

Bakery Growth of 20%+

NSV
24.6% 27.5% 22.6% 21.0%

21.4%

For six consecutive quarters

Innovation Differentiates & Contributes To Growth

Innovation Helps Quality of Revenue

Britannia Diabetic Friendly Essentials Price Index 419 Good Day Chocolate Range Price Index 275 Good Day - Base Price Index 171 Britannia Vita Marie Price Index 129
Price index = Price per kg of brand/Price per kg Biscuits Source : Nielsen

Consistent Brand Investments Support Growth

A & SP
% Growth YoY 32.6% 8.6% 5.6% 11.1% 20.4%

Market And Competitive Context

Competitive Intensity Continues - Both Local and International Competition

Source : Nielsen

Although, Flour & Sugar Steady, Significant Increase In RPO

Index (Q1 10-11 = 100)

Index (Q1 10-11 = 100)

Flour
106 107

Sugar
103
95 102

107 97

100

100

99

Q1 10-11

Q2 10-11

Q13 10-11

Q14 10-11

Q1 11-12

Q1 10-11

Q2 10-11

Q13 10-11

Q14 10-11

Q1 11-12

RPO
Index (Q1 10-11 = 100)

146 135

129 110 100

Q1 10-11

Q2 10-11

Q13 10-11

Q14 10-11

Q1 11-12

Market Prices

Steep Increase In Prices of Other Commodities

SMP
Index (Q1 10-11 = 100) Index (Q1 10-11 = 100)

Cashew
174 138 100 113 124

147

100

94

96

103

Q1 10-11

Q2 10-11

Q13 10-11

Q14 10-11

Q1 11-12

Q1 10-11

Q2 10-11

Q13 10-11

Q14 10-11

Q1 11-12

Packaging
Index (Q1 10-11 = 100)
Index (Q1 10-11 = 100)

Mfg Fuel
142 142

133 119 100

135

118 100
104

106

Q1 10-11

Q2 10-11

Q13 10-11

Q14 10-11

Q1 11-12

Q1 10-11

Q2 10-11

Q13 10-11

Q14 10-11

Q1 11-12

Market Prices

Britannia PAT Increased 25% in 2010-11 and 27% in Q1

PAT

Non Biscuit Business

Our Non-Biscuit Business Is Significant And Growing Fast

~ Rs 9,000 MM

Dairy

Cakes

Bread

Rusk

Retail

Bread, Cake and Rusk On Accelerated Growth Trajectory

Dairy Business Doubled Over Five Years

Dairy Transformation

To Summarize

Britannia operates in a large space that is growing fast

Competitor irrationality reduces industry profit pool in an inflationary and volatile commodity scenario Over the last five years our non-biscuit business has achieved critical mass and going forward will be a critical growth vector We participate in that growth through innovation & revenue management Driving cost effectiveness remains a key priority

invrl@britindia.com