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Annual General Meeting 2011-12

Presentation by Harish Bhat, Managing Director

Highlights of the year : 2011-12


Strong top-line and improved operating performance
despite firm tea and coffee prices and a challenging marketing environment.

Consistent investment in all our brands


in particular, Tata Tea and Tetley

Several innovative products launched


Chai Latte, Tea Infusions, Tata Water Plus

Favourable impact of cost interventions and exchange variation

Highlights : Sales Revenues


Total revenues : +10% against prior year
5 year revenue CAGR at 10%

6631 5820 6003

4334

4873

2007-08

2008-09

2009-10

2010-11

2011-12

Prior year numbers have been restated to align to new statutory requirements

Highlights : Profit before tax and Group Profits


Profit Before Tax + 16% Group Profits + 40%

574 494

356

254

2010-11

2011-12

2010-11

2011-12

Highlights India
Handsome 12% growth in sales revenues Maintained volume and value market leadership in India (vol MS -19.6%, val MS - 21.3%) Soch Badlo campaign launched to celebrate 25 years of brand Tata Tea Gaon Chalo initiative continued, extended to 8 more states. footprint

^ AC nielsen MAT Mar 12

Tata Tea Premium Advertisement

Highlights UK, Europe, Russia


UK good growth in an environment where tea market declined Tetley has achieved market leadership in new segments in UK Tetley Decaffeinated tea, Tetley Redbush tea Tetley green tea demonstrates excellent growth in UK Teapigs brand of super premium teas continue to grow in UK with distribution gains. Won the Great Taste awards. Strong coffee performance in Russia Efforts to rejuvenate growth in Poland

Tetley Advertisement

Highlights Canada, USA, Australia


Canada Tetley continues to be a strong market leader, with market volume share of 39% Tetley infusions liquid tea mix make strong gains US Higher coffee commodity prices and promotions costs adversely impacted profits of Eight OClock Coffee Mid-sized bag rollout by Eight OClock Coffee Australia Fruit and herbal teas, decaff green teas performed well

Strong performance by Tetley Chai Latte

Canada Green Tea Advertisement

Highlights : non-branded business


Tata coffee registers a record turnover and profit aided by improved realisation in coffee plantations and improved Instant Coffee performance

New Instant Tea joint venture commences operations in China

Sales Trend for major markets over 3 years


+15%
2500 2000 1500

+5%

+18%

Rs Cr

1000 500 0 Canada, USA, Australia UK, Europe, Russia South Asia

+24%

Non Branded Operations 2012

2010

2011

Sales Improvement attributable strong brand performance. Strong performance in coffee plantation and extraction business.

Strategic Alliances set the agenda for growth


Nourishco (joint venture with Pepsi)
Launch of Tata Water Plus and Tata Gluco Plus

Tata Starbucks (joint venture with Starbucks)


Launch of Starbucks in India

Kerala Ayurveda
Investments made for product development

Activate in the USA


Focus on developing fresh vitamin water category

6000

1000

2000

3000

4000

5000

7000

8000

9000

Mar-05 Jun-05 Sep-05

Rs 2948 cr

Dec-05 Mar-06
Jun-06 Sep-06 Dec-06

Mar-07 Jun-07
Sep-07 Dec-07 Mar-08

Jun-08 Sep-08
Dec-08 Mar-09

Market Capitalisation

TGBL - Market Cap Rs. Crs

Rs3593 cr

Jun-09 Sep-09 Dec-09


Mar-10 Jun-10

Rs 7415 cr

Sep-10 Dec-10 Mar-11


Jun-11 Sep-11

Dec-11 Mar-12 Jun-12

Rs 6935 cr

Rs 8154 cr

In Rs. Crores

2004/05

Rs Crores

56
2005/06

67
2006/07

92
2007/08

92
2008/09

124

108
2009/10

124
2010/11

124
2011-12

Dividend

Significant Increase in Dividend Payout

Exceptional Dividend

133

Some important milestones in 2012

25 years of brand Tata Tea

175 years of brand Tetley

Some important milestones in 2012

150 years of our national poet, Rabindranath Tagore

With the sails billowed by winds anew, We will go from isle to isle, Seeking to fill our boat with jewels, precious and unknown.

From a poem titled Commerce, Goddess Lakshmis Abode

Tagores spirit is also our ambition


We will also set sail, go from isle to isle, search for precious jewels unknown to the world today These precious jewels - all in the space of natural beverages such as tea, coffee and water - will add goodness to the lives of millions of people We see in this voyage an opportunity to transform the world of natural beverages, and make this world a better place to live in We will thus aspire to become one of the finest beverages companies known to mankind.

THANK YOU