Q2 FY22 Results

27th October, 2021

Forward-Looking Statements

This presentation contains certain forward-looking statements including those describing the Company’s strategies,
strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements”
are based on certain assumptions of future events over which the Company exercises no control. Therefore there can be no
guarantee as to their accuracy and readers are advised not to place any undue reliance on these forward looking
statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise. These statements involve a number of risks, uncertainties and
other factors that could cause actual results or positions to differ materially from those that may be projected or implied by
these forward looking statements. Such risks and uncertainties include, but are not limited to: growth, competition,
acquisitions, domestic and international economic conditions affecting demand, supply and price conditions in the various
businesses in the Company’s portfolio, changes in Government regulations, tax regimes and other statutes, and the ability
to attract and retain high quality human resource.

2
Second Wave impact recedes Progressive Recovery in economic activity

Sharp Reduction in case count, accelerated vaccination Improved mobility improves Business environment
India: New Cases – Moving 7-day Average (‘000)
450 Google Mobility Index
400 7 May’21
350 4,14,188
300 3,89,803

250
200
150 17 Sep’20 26 Oct’21
Daily New Cases – 97,894 12,428
100 7 Day Avg – 93,199 15,404
50
0

Source : WHO Nomura India Business Resumption Index

Source: WHO
105.0
1st Dose Cumulative (cr.) 2nd Dose Cumulative (cr.) 99.2 99.3
80
91.7 90.7
81.6 86.3
India’s vaccination count
60 70.9 70.5
65.1
40
45.1 60.2

20 29.7
17.2
4.2
0

FTQ Mar 20 Jun 20 Sep 20 Dec 20 Mar 21 Jun 21 Sep 21

NIBRI 93.0 54.9 74.2 86.4 95.4 74.9 98.8
Source: CMIE
3
 Consumer Confidence Improves
Uptick in Sentiments in Q2 Current Situation Index remains in contraction zone
India Services PMI ( > 50 denotes expansion) Manufacturing PMI ( > 50 denotes expansion)

58.9 57.5
57.5 56.7 56.8 56.4 55.5 55.3
54.1 55.3 54.0 54.5 53.7
49.3 52.3
49.8 46.4 45.4 51.8 50.8
55.2 47.2
41.2 52.3
33.7 48.1

5.4 27.4

Source : IHS Markit Source : IHS Markit

RBI Consumer Confidence Index

Positive Sentiment

Current Situation Future Expectation Baseline

150

130

115 115 116 116 117

105 109 107
110 104
98 96
90
100
Negative Sentiment

70 84 86

64
50

54 56 53 58
50 52 49 49
30
Pickup in External Trade
Increased Capital Flows GST collections remain robust

Merchandise Export / Import ($ bn) Net FPI and FDI ($ bn)

Trade Deficit Export Import 19 Net FPI FDI
56
48 12
35 33 8
31
17
28 4
10

-7 -3
-14 -9
-16 -16
-23

Source : RBI Source : RBI, CDSL

GST Collections (Rs lakh cr.)
Record High
FY20 FY21 FY22 FY20 FY21 FY22
1.41 1.14
1.16 1.12 1.17
1.02 0.93 0.87 0.95
0.91 0.86 1.02
0.62
0.95
0.32

Apr May Jun Jul Aug Sep Monthly Average

Source : Ministry of Finance
5
Core inflation remains sticky Crude Oil prices surge past USD 85/barrel – 3 year high

Headline CPI (y-o-y%) Core CPI (y-o-y%)

Source: MOSPI Source: MOSPI

CPI – Fuel & Light (y-o-y%) Diesel (Rs /Litre)

Source: MOSPI Source: CMIE

6
Slowdown in Global Recovery Momentum Resurgent Demand + Rising Commodity/Energy Prices + Supply Disruptions
Surge in Inflation

Source: IMF World Economic Outlook (WEO), Oct’21 Source: IMF World Economic Outlook (WEO), Oct’21

Freight Rates in key routes vs. LY

Source: RBI Bulletin Oct’21

7
 Q2 FY22 Results
Headline Financials & Business Highlights

8
Key Highlights: Q2 FY22 Gross Revenue up 11.1% y-o-y
PAT up 13.7% y-o-y
▪ Strong pick-up across all operating segments after severe disruptions in Q1
̶ Sequentially, Revenue (ex. Agri) up 12%; EBITDA up 16%

▪ FMCG delivers resilient performance growing on a high base quarter; Revenue up 23% vs. Q2 FY20 & 8% sequentially
̶ Sharp rebound in Discretionary/‘Out-of-Home’ consumption
̶ Staples and Convenience Foods witness moderation in y-o-y growth on a high base; remains well above pre-Covid
levels
̶ Marked demand volatility in Hygiene portfolio; moderates sequentially with lower intensity of the pandemic;
significantly above pre-pandemic levels
̶ Segment EBITDA at 403 cr., up 35% sequentially and 82% over Q2 FY20
• Segment EBITDA Margins sustained at 10% in spite of unprecedented commodity inflation
̶ Closure of educational institutions continues to impact Education & Stationery Products Business

▪ Smart recovery witnessed in Cigarettes with exit volumes near pre-Covid levels
̶ Faster recovery in volumes vs. first wave of the pandemic
̶ Broad-based recovery witnessed across markets during the quarter; certain markets in Kerala and East remain
relatively subdued
9
Key Highlights: Q2 FY22

▪ Marked improvement in Occupancy (3x of Q2 LY) drives faster recovery in Hotels

̶ Leisure destinations continue to perform well while Business travel gathers momentum
̶ Q2 turns EBITDA positive (+134 cr. swing vs. Q2 FY21)

▪ Paperboards, Paper & Packaging Segment delivers strong performance; Segment Revenue up 25% y-o-y
̶ Paperboards volumes at record high
̶ Robust performance aided by revival of demand across most end-user segments

▪ Strong growth in Agri Business external revenue driven mainly by Wheat, Rice and Leaf tobacco exports, leveraging
strong customer relationships and robust sourcing network

▪ About 90% of eligible employees fully vaccinated; 100% vaccinated with at least one dose

10
FMCG Others
 Resilient Performance on a High Base
FMCG Others Segment Revenue up 23% over Q2 FY20

▪ Resilient performance growing on a high base quarter which witnessed exceptional

surge in sales (Q2FY21 up by 19%)
ꟷ Sequential Revenue up 8%
ꟷ Sharp recovery in Discretionary/OOH portfolio (Snacks, Confectionery and Beverages)
ꟷ Moderation in Staples & Convenience Foods on a high base while remaining well above pre-
Covid levels; performs well sequentially for the second consecutive quarter
ꟷ Marked demand volatility in Hygiene portfolio; moderates sequentially with lower intensity
of the pandemic; remains significantly above pre-pandemic levels

▪ Continued closure of educational institutions impacts Education & Stationery Products Business
▪ Robust performance in emerging channels continues
ꟷ Modern Trade sales grew strongly y-o-y (favourable base) and q-o-q

e-Commerce Rural Markets Market Coverage Direct outlet servicing

Salience 7%
565

3x Scale up of stockists
1.4x of LY levels 1.1x of LY levels
515

network (2x of LY)

465

Continues to garner
415

365

315

strong consumer
x
265

215

165

115
franchise; now
65

operational in 15 cities.
H1 FY20 H1 FY21 H1 FY22
http://www.itcstore.in
12
 Segment EBITDA up 82% over Q2 FY20
FMCG Others Q2 FY22 Margin Sustained @ 10%

▪ Unprecedented inflationary headwinds in key input commodities Robust

Purposeful Brand
▪ Q2 Segment EBITDA margins sustained at 10.0% Innovation Portfolio

ꟷ Inflation impact largely offset through focused cost management

Levers of
actions, premiumisation, judicious pricing actions, fiscal incentives and Margin
Power Expansion Operating
favourable business mix Of Leverage
Digital

Seg. EBITDA margins sustained at 10% despite inflationary headwinds Rs. cr. Supply Chain
Efficiencies

+82%; 330 bps margin expansion

10%
460

403
410

10%
360
394
310
8%
260
6.7% 299
221
210

160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY20 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22

13
 FMCG Others Unprecedented Rise in Commodity Prices

Kraft Paper Metallocene

142 1800

48

139 1700
150
143
46

1600

44

1500

42

130 1400
138
40

1300

38

1200

36

100
100
34
1100

1000

32

Oct-20 Dec-20 Jan-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Sep-21 Oct-20 Dec-20 Jan-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Sep-21

BOPP
200

195
125 125
190

119
185

180

175

170

165

160

155

100
150

Oct-20 Dec-20 Jan-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Sep-21

Indexed 14
 Cutting-edge R&D capability
Fuelling Growth through Innovation ITC Life Sciences & Technology Centre, Bengaluru

Capabilities

350 highly Partnerships with

qualified scientists; Global R&D
over 900 patent centers &
applications Academia

LSTC

Pilot Plants for all State of the Art

product categories Analytics Labs

15
Purposeful Innovation Leveraging Science-based R&D Platforms @ ITC LSTC

Health & Hygiene Indulgence

Aashirvaad B Natural / Sunfeast Savlon Dark Fantasy Sunfeast Bounce Sunfeast

Vermicelli Nutrilite Health Range Handwash Powder Vanilla Fills Fruit Fills All Rounder

Nimeasy Spray; Nimyle Savlon Moisturizing Savlon Soaps Sunfeast Yippee! Fantastik Bingo
Lemongrass Floor Cleaner Hand Sanitizer Cool Hexa Max Masala Chocobar XL Cream & Onion

16
Purposeful Innovation Leveraging Science-based R&D Platforms @ ITC LSTC

Convenience Range Expansion

Mangaldeep Mangaldeep
Savlon Premium - Lo Smoke Royal Popular – Upaveda Range
Engage ON Nimyle Handwash Rose, Mystic Jasmine Camphor Tulsi, Panchamrit
Chota Pocket Perfume Sachet Pichkiao

Savlon Fiama Menthol & Magnolia Engage

Engage Fragrances Aashirvaad Exclusive range for Emerging
Surface Disinfectant Soap / Shower Gel
Convenient Packs Svasti Ghee Channels
Spray (70 GM SKU)
17
Deepening Consumer Connect
Augmenting Multi-Channel Distribution
Impactful Communication

Sharpening Value Proposition On-the-Go Direct Marketing QSR

18
Purpose Led Brands

Sustainable Products Focused Brand Campaigns

Reduced Plastic Using Recycled Material

Plastic Free
#RespectWorkForHome #BruisesAreMedals #NoMoreMissedCalls

Made with Temple Flowers

Rural Women Engagement
Lo Smoke Agarbatti

#FeelGoodWithFiama
Building Devotional Connect

19
Digital @ Consumer

Deepening Consumer Connect Celebrity endorsements and influencers

#HarRecipeKaPehlaStep Nimyle
Nimwash: Chef Kunal Kapur Aiyyoshraddha
ITC Connect: A platform to engage with consumers in Digital World
(www.itc-connect.com)

Interactive Cooking Get “Pujo Ready” with Vivel Bodywash: Kriti Sanon Engage Pocket Perfume & No Gas
Workshop Sunrise Spray: Kartik Aaryan, Tara Sutaria
20
High Intensity Activations and
Strong Brand Associations

Multi-Pronged Initiatives Bundled Offers on ITC e-store

Persuasive communication Regional initiatives

Onam, Independence Day, Savlon Savlon school

Collaboration with connect
Durga Puja Activations
Manorama Weekly

High impact visibility drives

21
FMCG Others Strategy Pillars

Insights
ITC Wide & Deep
&
Synergy Distribution
Innovation
Agile & Value
Future Ready Purposeful Efficient Accretive
Portfolio Brands Supply Chain M&A

Power of Digital Extreme Quality & Cost Focus

22
FMCG Others Strong Growth Platforms

Fortifying the Core Addressing Adjacencies through Mother Brands Building the New Core

No.1 In Branded Atta No.1 In Cream Biscuits

No.1 In Bridges Snacks No.1 In Notebooks

No.1 In Dhoop
No.2 In Noodles No.2 in Agarbatti

Annual Consumer Spends ~22,000 cr.

23
Distributed Manufacturing &
Agile Supply Chain Creating Structural Advantage

ICML Network
Reduce Distance-to-Market
Fresher Products
Responsive supply chain

01

04 02 Delayering Operations
Direct shipments
Eliminate Multiple Handling
Smart Manufacturing
Industry 4.0 03
Automation
Energy, Quality, Yield management
Smart Buying & Value Engineering
AI/ML powered real-time price discovery
Toggleable Recipes
Packaging innovations

24
Power Of Digital SMART | AGILE | RESPONSIVE

Smart Consumer Smart Trade

• App for online ordering/engagement with
Retail top outlets
Tech • Virtual Salesman App for online
ordering/scheme communication
Continuous Superior Consumer
Tracking & Insights &
Feedback POS AI driven customised consumer offers
Innovation
Solutions integrated with POS solutions

Payments & Channel Financing, Direct Payments

Enhanced Impactful Brand Financing
Shopper Campaigns &
Experience Engagement
Whatsapp based store locator &
B2B2C
ordering

Smart Planning Smart Manufacturing Smart Processes Future Fit Distribution Multi Channel
Go-To-Market

Smart Operations
25
 FMCG Cigarettes Robust Recovery – Exit volumes Near Pre-Covid Levels

▪ Q2 Segment Net Revenue* and Segment Results up 10.3% and 10.4% y-o-y
respectively; Segment EBIT Margins up 10 bps
Segment Revenue ▪ Progressive normalisation of convenience store operations across markets

5642 cr. 10.2% ̶ Faster recovery in volumes vs. first wave

̶ Broad-based recovery witnessed across markets during the quarter; certain
markets in Kerala and East remain relatively subdued
Segment Results ▪ Market standing reinforced, leveraging a portfolio of world-class products, focused
innovation and agile execution
3583 cr. 10.4% ̶ Scaled up accessibility by augmenting stockists network (2.1x y-o-y) & rural
servicing infrastructure (1.1x y-o-y)

Legal Industry volumes remain impacted a/c high tax incidence on Cigarettes

* Net of Excise Duty/NCCD on Sales 26

FMCG Cigarettes Recent Portfolio Interventions

Innovation Portfolio Fortification

• Classic Connect • Gold Flake Luxury Filter

• Gold Flake Neo • Gold Flake Neo SMART Filter

• American Club Clove Mint • Navy Cut Deluxe

• Gold Flake Indie Mint • Player’s Gold Leaf Chase

• Capstan Fresh • Gold Flake Star

Recent Introductions Other Interventions

• Gold Flake Kings Mixpod • Wave Boss Refreshed Packs of Flake Excel, Wills Navy Cut
Filter, Berkeley Hero in focus markets.
• American Club Smash • 5s Flake Mint
5s Packs -
• Flake Nova Gold Flake Premium and Capstan Special
27
Hotels Business

ITC Grand Goa Resort & Spa

 Smart Sequential Recovery
Hotels Revenue Back to Q4 FY21 Levels

Rs. cr.
▪ Sharp growth in revenue driven by domestic leisure travel & Staycations;
Segment Revenue Business travel continues to gather momentum
̶ Strong recovery in Occupancy levels
Q2 FY22: 295 (+2.6x vs. LY)
̶ ARR and RevPar improve sequentially and y-o-y; still below pre-Covid levels
Segment EBITDA ▪ Demand creation through sharply targeted packages catering to emerging trends and consumer
needs along with focused communication campaigns
Q2 FY22: 17
(Positive Swing of 134 vs. SPLY) ▪ Structural cost management actions undertaken in the last year aided in reduction of controllable
cash fixed cost by 31% vs. Q2 FY20

Sharp rebound in Occupancy ‘WeAssure’ programme – best-in-class hygiene and safety standards at all operating hotels

Occupancy %
35
0

3x
30
0

25
0

20
0

15
0

x
10
0

50

Q2FY21 Q2FY22
29
Demand Creation Through Curated Offerings

Culinary Tourism Accommodation Packages with Flexible Dining Benefits

Revamped F&B Offerings

30
30
2 New Welcomhotel Properties Launched Healthy pipeline of management contracts

Welcomhotel Bhubaneswar Welcomhotel Katra

A visual ode to architectural traditions and eventful history Located at the foothills of Mata Vaishno Devi temple; offers
of the Golden Triangle of the East a perfect balance of modern minimalism and classic elegance

Welcomhotel Brand footprint scaled up to 22 properties/2500 keys

4 more properties to be launched soon
31
Executing ‘Asset-Right’ Strategy 2 New Brands Launched

Mementos Storii

Collection of unique luxury hotels across varied destinations Collection of intimate sized handpicked properties in the
ranging from modern retreats to historic treasures premium segment

32
Hotels Business Strategy Pillars

Loyalty Programs: Maximise

enrollments and drive engagement

Gifting: Partnership,
Engagement and Offers

ASSET
Takeaways: Enhanced
AUGMENT REVENUE
RIGHT visibility, offers, etc.
STREAMS/ SWEAT
STRATEGY ASSETS

Structural interventions across all nodes

EXTREME • Sustained benefits expected

LEVERAGE over the long run
Revenue
DIGITAL COST
Mgmt.
FOCUS
• Resource Optimisation

Reputation
Mgmt.

33
Agri Business
 Robust Growth in External Business
Agri Business Margin expansion driven by favorable business and customer mix

▪ Robust growth in external business

̶ Wheat, Rice, Leaf Tobacco, Aqua and Spices exports
Segment Revenue ̶ Shortage in availability of containers/port congestions & inclement weather delay customer call-offs

▪ Continues to provide cost‐competitive strategic sourcing support to Branded Packaged Foods

2776 cr. 7.0% Businesses by leveraging e-Choupal network
̶ Sourcing strategy aligned to market dynamics

▪ Leveraging ‘Digital’ for sourcing efficiencies

Segment Results ̶ Leveraged Project ‘Astra’ – AI/ML and advanced analytics based digital platform to facilitate spatial and
temporal sourcing optimization

296 cr. 15.7% ▪ Strategic focus on rapidly scaling up Value-Added product portfolio to accelerate growth and enhance value capture
̶ Value Added Spices to Food Safe markets continue to gain traction
̶ The Company’s wholly owned subsidiary, IIVL^ is progressing construction of a world-class manufacturing facility at
Mysuru, for export of Nicotine & Nicotine derivative products to US/EU

Multiple Sourcing Multi Modal

Models Transportation
Farmer | Trader | Mandi Railway | Coastal | Road
+16%
Zero disruption in supplies Value Added portfolio
despite significant operating challenges
Based on Port Data
^ ITC IndiVision Limited 35
Agri Business Transformation Pillars

Deliver sustainable competitive advantage to ITC Businesses

High quality & cost competitive agri-sourcing

Develop a Future Ready portfolio of value-added products to drive growth & margins
Organic/Food safe

Develop a robust business model to scale up e-Choupal 4.0

Customized solutions for farmers + re-engineer commodity sourcing thru FPOs

Develop NexGen Indian agriculture

Digitally powered + climate smart value chains + Market linkages

36
Agri Business – Agri SBU Moving up the Value Chain

‒ Customised supply chain & infrastructure

‒ Food safe, Organic, Certified

‒ End-use specific offerings Value Added – Niche & Brands

‒ Focus on product development ( Spices, Fruits & Vegetables, MAPE)
‒ Long-term supply commitments

‒ Long-term supply commitments

Margin %

‒ Risk Management
Value Added - Ingredients
(Certified Coffee, Aqua, Specialised Maida, Organic Cereals)
‒ Leveraging geographical spread
‒ Competitive sourcing & pricing
‒ Just-in-Time supply chain
Commodity Sourcing Services
(Wheat, Rice, Coffee)

Basic Commodity
(Wheat, Rice, Oilseeds, Pulses, Coffee)

S co p e o f Va l u e A d d i t i o n
37
Paperboards, Paper &
Packaging
Paperboards, Paper & Strong Revenue Growth
Packaging Paperboard Volumes at Record High

Paperboards & Specialty Paper:

▪
Segment Revenue Robust growth aided by revival of demand across most end user segments
− Publications, Quick Service Restaurants (QSR) and wedding card segments, remain relatively subdued.

1830 cr. 25% ▪ Robust growth in VAP segment; strong performance in exports on a high base notwithstanding logistical
challenges.
▪ Margin expansion despite escalation in key input prices enabled by higher realisations, investments in pulp
Segment Results import substitution, cost-competitive fibre chain, sharper focus on operational efficiency leveraging data
analytics and Industry 4.0

409 cr. 24% ▪ High Pressure Recovery Boiler & Pulp mill expansion project on schedule
Packaging and Printing Business performed well driven primarily by cartons segment.

39
Innovation Developing Sustainable solutions

Bio-degradable Boards Recyclable Boards

Exclusively for Deep freeze Replacing takeaway Exclusively for Food serving Food delivery/
paper cups applications plastic bowls paper cups applications deep freeze
application

Completely Biodegradable under Completely Recyclable in existing

composting conditions standard recycling conditions

Barrier against liquids/grease etc. at par Excellent water/oil & grease barrier
with traditional plastic coated boards properties

Sustainable Packaging
Bioseal Oxyblock Antimicrobial Coating
Compostable packaging solutions Recyclable packaging solution with Solution for germ free
with high grease resistance and enhanced barrier properties for packaging surface
seal-ability for Personal care, QSR packaged foods, edible oils, etc.
and Pkgd. foods industries.
40
Paperboards, Paper & Packaging
Business Strategy Pillars

Scale Up Value Added product portfolio

Proactive Capacity augmentation; New substrates

One-stop Packaging Solutions Provider

Leverage multi-platform capability to ensure world-class quality and
speed-to-market at competitive cost

Augment Renewable & Cost-competitive fibre chain

High quality disease resistant clonal propagation programme
Scale up core area plantations

Reduce Carbon footprint of operations

Enhance share of renewable energy, reduce fossil fuel consumption;
leverage investments in green boiler, soda recovery boiler, solar & wind
energy

Develop Sustainable Paperboard / Packaging Solutions

Leverage ITC’s LSTC platform & external collaborations

Leverage Industry 4.0 & Digital technologies

Automation, digitization → reduce waste, optimise costs
41
Financials

42
Headline Financials: Q2 FY22

Q2 FY20 Rs. Crs. Q2 FY22 Q2 FY21 GOLY

11,750 Gross Revenue 13,356 12,019 11.1%

11,542 Net Revenue 12,543 11,278 11.2%

4,562 EBITDA 4,615 4,088 12.9%

4,808 PBT 4,880 4,301 13.5%

4,023 PAT 3,697 3,253 13.7%

Other Comprehensive Income

-43 151 162
(net of tax)

3,980 Total Comprehensive Income 3,849 3,414

43
 Segment Revenue
Q2 FY22
• FMCG Others
(Rs. cr.) - Segment Revenue up 23% Over Q2 FY20
Q2 - Sequential Revenue up 8%
Y20 - Sharp recovery in Discretionary/OOH portfolio
FY22 FY21 GOLY%
- High base effect in Staples, Convenience Foods &
Segment Revenue Hygiene Portfolio
7 a) FMCG - Cigarettes 5642 5121 10.2%
• Hotels
8 - Others 4036 3922 2.9%
‒ Strong recovery in Occupancy levels
5 Total FMCG 9678 9044 7.0% ‒ ARR and RevPar improved sequentially and y-o-y; still
7 b) Hotels 295 82 2.6x below pre-Covid levels

8 c) Agri Business 2776 2985 -7.0%

• Agri Business
5 d) Paperboards, Paper & Packaging 1830 1459 25.4% ̶ Robust growth in external Revenue on a high base
55 Total 14579 13570 7.4% driven by Wheat, Rice, Leaf Tobacco, Aqua and Spices
Exports
5 Less : Inter Segment revenue 1223 1551 -21.2%
̶ Wheat procurement strategy aligned with market
50 Gross Revenue from sale of products & services 13356 12019 11.1% dynamics

• Paperboards, Paper & Packaging

- Revival of demand across most end-user segments
- VAP segment and Exports drive growth
44
 Segment Results
Robust growth across Segments
Q2 FY22

(Rs. cr.)
Q2
FY20 • FMCG Others
FY22 FY21 GOLY%
- Segment EBITDA at 403 cr. (+2.2% YoY on a high
Segment Results base)
44 a) FMCG - Cigarettes 3583 3245 10.4% • 1.8x of Q2 FY20
0 - Others 272 279 -2.7% - EBITDA margins sustained at 10% in spite of
35 Total FMCG 3855 3524 9.4% unprecedented commodity inflation
7 b) Hotels -48 -185 • up 330 bps vs. Q2 FY20

49 c) Agri Business 296 256 15.7%

• Hotels
56 d) Paperboards, Paper & Packaging 409 330 23.8%
- EBITDA at 17 cr., positive swing of 134 cr. vs. LY
58 Total 4512 3926 14.9%
3 Less : i) Finance Cost 10 14 • Agri Business
ii) Other un-allocable (income) - Margin expansion led by richer business and
63) (378) (390)
net of un-allocable expenditure customer mix, incentives
08 Profit Before Exceptional Items & Tax 4880 4301 13.5%

45
Shaping the Future
Powered by Data & Digital

ITC Royal Bengal

Digital @ ITC Strategic Impact Areas

Insights
Supply Chain &
Platform
Manufacturing

Consumer Employee
Experience Digital-first Culture Engagement
DigiNext / Young Digital
Leaders Forum

State-of-the-Art Digital Technologies, Infrastructure and Security

47
Integrated Real Time Operations
Execution Platform

• Integrated & synchronized planning Next generation agile FMCG supply chain
processes • Automated end-to-end processes
• Flexible design
• Advanced demand & forecasting models
• Supply Chain Cockpit
• Planning Control watch tower + Data Synchronised Agile
Visualization tools Planning Supply Chain AI/ML & Advanced Analytics platform to drive
operational efficiency & seamless execution

Smart Operations

Smart Demand Smart

Capture & Manufacturing
• Mobile Apps for Salesmen • Digital Factory
Fulfilment And Sourcing
• Real time monitoring of
• Retailer Apps process & product
• Data driven optimization performance
of last mile delivery, Omni • Digital Sourcing
Channel fulfillment platforms

48
Smart Consumer Personalised Consumer Journey across Touchpoints

ITC SIXTH SENSE COMMAND CENTER MOMENT MARKETING

• AI-powered hyper Contextual Communications &

personalised platform Superior Consumer Impactful Brand Consumer Promotions
Insights & Campaigns &
2000+ Content Assets created
• Strong partner Innovation Engagement
ecosystem for content & CONSUMER DATA HUB
data Harvesting insights & new
product development
Continuous Tracking Enhanced
& Feedback Shopper
Experience

• Direct-to-Consumer channel
operational in 15 cities; 45+
Categories and 850+ products under
one roof
• Offers wide range of ITC FMCG
products
• Socializes Premium & Niche Brands
with consumers
49
ITC – A Global Exemplar in Sustainability

50
ITC: A Global Exemplar in Triple Bottom
REDUCE I RECYCLE I RESTORE
Line Performance

Action on Climate Water Security for 360₀ Approach to Future-Ready Agri Sustainable Recent Global
Change All Plastic Waste Value Chains Livelihoods Recognitions

41.3% Energy from

Renewables
Rainwater Harvesting (RWH)
Potential Created
Source Segregation
Programmes Covering
Globally Recognized
e-Choupal Platform Sustainable Livelihoods
Supported across
Pioneer in Green 43 million kl 18 million 4 million Operations
Buildings in India Citizens Farmers Empowered ITC Rated AA, Highest
over 1.2 million acres of
Platinum Rated
land, equivalent to Plastic Waste Collection e-Choupal 4.0: New Age 6 million amongst Global Peers

33 Buildings Digital Solution

4X ITC’s Net Water
Consumption
~30,000 MT
Large Scale Afforestation in 2020-21 Sustainable Agriculture
Programmes for Programme
Sequestering Carbon 80% .
881,000 acres Annual CSR Spend
Demand Side Savings from Collections in 2020-21
Greened over over
Crop Water Use Efficiency equivalent to 80% of of Farms covered ITC is listed on DJSI’s
900,000 acres Multi-Layered Plastic
CO2 sequestered as
208 million kl packaging utilised by ITC Climate Smart Agriculture
Rs. 350 Cr. Emerging Markets
Index
compared to Programme in 2020-21
2X emissions from ITC’s
Coverage

operations 24 States/ UTs 8,000 villages .

1st in World
Climate Hazard & 1st in India, Baareh Mahine Hariyali SDGs
Focus on Improving ITC Windsor Becomes
Risk Study based on 2nd Globally Recyclability, Optimisation, Large scale Impact First Hotel in the World
Climate Modelling Programme on
Completed for ITC’s
PSPD Kovai Unit –
Platinum Rated Facility
Substitution & Innovation.
2X Doubling Farm
across
SDGs
to achieve LEED Zero
Carbon Certification
Physical Assets Income
51
Impactful Social Performance

ITC e-Choupal Afforestation Watershed Development Livestock Development Solid Waste Management
Over 900,000 acres Over 12,75,000 acres Well-being Out of Waste
4 Million Farmers Over 19,72,000 milch
programme covers
empowered greened covered animals covered 15 million citizens

Women Empowerment Skilling & Vocational Primary Education Pioneer of Green Building
Health & Sanitation
over 79,000 poor women Training Reaching over movement in India
Over 38,800 toilets built
benefitted Covering over 101,000 youth 833,000 Children 33 platinum rated green buildings

52
 Sustainability 2.0 ITC’s 2030 Sustainability Targets
Raising The Bar Bolder Goals

Renewable Specific Energy Specific GHG Sustainable Supporting Sustainable

Energy (RE) Consumption* Emissions* Packaging Plan Livelihoods

50% 30% 50% 100% 10 million

RE Energy Recyclable Plastic From 6 million
Packaging

Specific Water Water Security Rainwater Harvesting Plastic Neutrality Biodiversity & Agriculture
Consumption* for All Potential

lac
5X 2.5 acres
Biodiversity
Conservation
40% 25%
AWS Certification for From 3X, as
100% Collections
2021-22
High Water Stressed
Sites
compared to ITC’s
Net Consumption
3.0 million Climate Smart
acres Village

Proactively work towards achieving ‘Net Zero’ emission status.

*2018-19 Baseline 53
ITC’s Sustainability 2.0 Framework

Foundation Management Management of Key Sustainability/ESG Issues Reporting &

System Communication
Materiality

Climate Water Sustainable

Stakeholder Engagement

Risks & Opportunities

ITC’s Guidelines, Change Security Packaging ESG Ratings:
Sustainability Standards & MSCI, DJSI, CDP,
Vision Assurance Sustainalytics
Sustainable etc.
System EHS
Supply Chain Product/Brand
incl. Agri Value Management Sustainability Public
Chains
ITC’s Disclosures:
Performance
Sustainability Sustainability
Management
Policies Others: Report,
System Human Rights
Diversity & Inclusion
Biodiversity Nutrition, Ethics Integrated
etc. Report, BRR

Goals, Targets & Plans

Enablers
ITC-wide In-house
Sustainability Partnerships & Innovation &
Sustainability Sustainability
Governance Collaborations Digital
Culture Expertise

54
ITC Infotech

55
ITC Infotech Robust Revenue Growth & Margin Expansion

Revenue
Revenue EBITDA PAT
EBITDA EBITDA Margin% PAT PAT PAT Margin%
2500
(Rs. cr.) (Rs. cr.) Rs. cr.
700

25.2% 30.0%

18.4%
2400

600 25.0%

500 20.0%

2300

450
500 20.0%

2200

400
12.9% 15.0%
400

350
9.3%
15.0%

2100

300
8.0% 10.0%
300

5.2%
10.0%

250

200 5.0%
2000
200 5.0%

150

2007 2249 2454

1900 100 0.0%

161 291 618 104 209 451

100 0.0%

50

1800 0 -50. %
0 -50. %

FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21

Strategy Pillars
Large Deals Pipeline
Customer Centricity Delivering business friendly solutions

Employee Centricity
29
to clients across countries,

including 60+ Fortune listed

clients
Operational Excellence

56
ITC Infotech High Growth Trajectory Sustained in H1 FY22

Rs. cr.
Revenue EBITDA PBT PAT

Goly: 23.6% Goly: 62.5% Goly: 66.6% Goly: 69.3%

Margin% Margin% Margin%

45
0
28.2% 45
0
30
.0
%
28.3% 35
0
29
.0
%
21.2%
21.4% 15.5%
20
.0
%

40
0

21.0%
40
0
25
.0
%

407
30
0

409
24
.0
%

306
35
0

35
0

15
.0
%
20
.0
%
25
0

30
0

30
0 19
.0
%

15
.0
%
25
0 20
0
25
0 10
.0
%

250
14
.0
%

246
20
0

181
10
.0
%
20
0
15
0

5.0%
15
0

15
0 9.0%

5.0%

10
0

10
0

10
0

0.0%
0.0% 4.0%

50
50

50

0 -50. %

0 0 -10. % -50. %

H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22

Margin expansion a/c improved Business mix and higher resource productivity

57
ITC: Enduring Value

A passion for in a way that is and

Profitable growth... Sustainable… Inclusive.

58
Thank You

59
Links

Product/initiative Link

Aashirvaad Vermicelli https://www.facebook.com/Aashirvaad/videos/589090418787992/

Aashirvaad Happy Tummy https://happytummy.aashirvaad.com

Sunfeast Dark Fantasy https://m.youtube.com/watch?v=kWPWUGFpv88&feature=youtu.be

Moms Magic #NoMoreMissedCallsFromMom https://www.youtube.com/watch?v=T_DqIXctTbc

ITC Vivel #RespectWorkForHome campaign https://www.facebook.com/VivelbyITC/videos/556999492399120/?app=fbl/

https://www.instagram.com/sunfeast_yippee/
YiPPee! and Bingo! on Instagram
https://www.instagram.com/bingo_snacks/

Differentiated variants of ‘B Natural-Nutrilite’ https://www.bnatural.in/nutribev/

co-created with Amway #Nutribev

https://www.itchotels.in/content/dam/projects/hotelswebsite/itc-
“WeAssure” programme
hotels/WeAssure/WeAssure-itc-hotels.pdf

Quarterly Media Statement https://www.itcportal.com/investor/pdf/ITC-Press-Release-Q2-FY2022.pdf

60