Analyst Meet th 30 August, 2013

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.

Food is a Rs 12,50,000 Crore opportunity

Branded food growing faster than overall food and non-food

Bakery, other than biscuits, is a growth opportunity for Britannia

Growth driven by rising income, quality consciousness and convenience seeking

Dairy branded but generic, growing fast and providing scope for differentiation

Biscuit is the largest category in branded foods ~Rs 25,000 Cr

Source: Ministry of Food Processing, Own Estimates

Business Update

Highlights
Powerful brands well supported Strong Go-to-Market People Core Category Focus Momentum in Revenue and Profit Growth

Slowing economic environment Commodity prices

Nominal GDP vs Britannia Growth

16.8 13.6 14.2 12.9 14.9 13.5 12.5

% Growth YoY

12.1

10.8
8.7

GDP (Nominal)

BIL Revenue (Standalone)

Q1 12-13

Q2 12-13

Q3 12-13

Q4 12-13

Q1 13-14

Source: CSO, Analyst Estimates, Company Financials

Slow down in Biscuit category

112 100
Indexed Market Growth (YoY) Q1 12-13 = 100

96

51 35

Q1 12-13
Source: Nielsen

Q2 12-13

Q3 12-13

Q4 12-13

Q1 13-14

Amidst challenging economic situation

Source: Business Standard

Some commodity prices remain steady but elevated

Flour Price (FY 11-12 = 100) 132 131 126 123 100 Sugar Price (FY 11-12 = 100)

122 121
100 105

113 111

98

FY Q1 Q2 Q3 Q4 Q1 11-12 12-13 12-13 12-13 12-13 13-14

FY Q1 Q2 Q3 Q4 Q1 11-12 12-13 12-13 12-13 12-13 13-14

Source: Market Prices

While others are on an upward trend

Butter Price (FY 11-12 = 100) 100 98 110 108 93 93 93 91 104 105 Mfg Fuel (FY 11-12 = 100) 116

100

FY Q1 Q2 Q3 Q4 Q1 11-12 12-13 12-13 12-13 12-13 13-14

FY Q1 Q2 Q3 Q4 Q1 11-12 12-13 12-13 12-13 12-13 13-14

Source: Market Prices

3 areas that continue to drive operational excellence

Newness & Innovation
New delightful offerings Higher value realization

Operational Excellence Restructuring Cost Base

Comprehensive projects from design to delivery

Revenue Management
Differentiated brands Differential Pricing

Continuous improvement in operations

Elaborated further
Product Organoleptic

Outside

Efficient

Caring

People

In

Simplicity of operation

Building efficiency across the value chain: Sales, an example

Right Skill

In Right Place

With Right Effort

For Right Result

KPI
Retail Availability Revenue/Salesperson Value/Transaction

Customer Profitability

Reconfiguring portfolio to simplify handling

Increasing business size

Improving Productivity through training

Split portfolio for more focussed selling

Supply management to reduce inventory

Faster settlement to free up working capital

Supporting our brands to leverage their strength

A&SP (% of NSV)

7.5

7.8

8.4 7.0

8.1

8.4

8.4

8.4

9.0

Q1 11-12

Q2 11-12

Q3 11-12

Q4 11-12

Q1 12-13

Q2 12-13

Q3 12-13

Q4 12-13

Q1 13-14

Source: Company Financials

Resulting in strong double digit growth of our pillar brands

Source: Company

Strong brands leveraged through steady investment with a focus on the fundamental levers of operations

has powered profitable growth

in an otherwise challenging macroeconomic environment

Financial Performance

Profitable Growth Standalone

1,600 1,500 1,400
Rs. Crs

9.0%

NSV Profit from operations % 7.9% 8.1%

8.0%
7.0% 6.0% % NSV

1,300 1,200 1,100 1,000 3.7% 4.1% 5.7% 5.2% 4.9% 4.3% 5.3%

5.0% 4.0% 3.0%

Q1 11- Q2 11- Q3 11- Q4 11- Q1 12- Q2 12- Q3 12- Q4 12- Q1 1312 12 12 12 13 13 13 13 14

NSV (Growth %)

21.4%

18.2%

15.6%

16.8%

10.8%

8.7%

16.8%

13.5%

14.9%

Source: Company Financials

Profitable Growth Consolidated

1,700 1,600 1,500
Rs. Crs 7.7%

NSV Profit from operations %

5.3% 4.3% 3.1% 5.2% 5.3% 4.7% 4.8% 7.7%

8.0%
7.0% % NSV 6.0% 5.0% 4.0% 3.0%

1,400 1,300 1,200 1,100 1,000

Q1 11- Q2 11- Q3 11- Q4 11- Q1 12- Q2 12- Q3 12- Q4 12- Q1 1312 12 12 12 13 13 13 13 14 NSV (Growth %) 20.9% 18.5% 16.8% 20.0% 11.9% 9.5% 16.4% 11.7% 14.2%

Source: Company Financials

Key Performance Indicators Standalone

Particulars Book Value Per Share (Rs.) Profit from Operations % Profit before Tax% Profit after Tax% Debt : Equity Ratio 2011-12 43.5 4.7% 5.1% 3.8% 0.8 2012-13 53.2 5.7% 6.0% 4.2% 0.3 Q1 2013-14 60.8 8.1% 8.9% 6.1% 0.0

Source: Company Financials

Key Performance Indicators Consolidated

Particulars Book Value Per Share (Rs.) 2011-12 34.3 2012-13 46.1 Q1 2013-14 54.0

Profit from Operations %

Profit before Tax% Profit after Tax% Debt : Equity Ratio

4.6%
4.9% 3.7% 1.5

5.7%
5.8% 4.2% 0.7

7.7%
8.3% 5.8% 0.3

Source: Company Financials

Financial Performance
Stand Alone Growth Sales PAT Q1 10.8% 3.9% FY 12-13 Q2 8.7% 20.5% Q3 16.8% 5.3% Q4 13.5% 65.7% FY 13-14 Q1 14.9% 98.6%

Consolidated Growth Sales PAT

Source: Company Financials

FY 12-13 Q1 11.9% 18.4% Q2 9.5% 36.4% Q3 16.4% 11.0% Q4 11.7% 50.5%

FY 13-14 Q1 14.2% 92.5%

invrl@britindia.com