Analyst Meet

Q2’19-20 Results

Conference Call

15th Nov 20191

Disclaimer / Safe Harbor Statement

This presentation may contain statements which reflect Management’s 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.

2

Q1 Q2 Q3 Q4 Q1 Q2

Growth% 14% 13% 11% 10% 6% 6%

24 month growth% 20% 21% 25% 24% 20% 19%

We Delivered growths outpacing the market…with

a healthy sequential shift of ~13%...

2,225

2,537 2,558 2,510 2,527

2,855 2,827 2,764 2,677

3,023

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Consolidated NSV as per published results

FY 17-18 (10%) FY 18-19 (12%)

3

FY 19-20 (6%)

High base Healthy 24

month growth

Rs C

rs.

Con

solidate

d N

SV

…And continued to strengthen our market leadership…

4

24.0

25.0

26.0

27.0

28.0

29.0

30.0

31.0

32.0

33.0

12-13 13-14 14-15 15-16 16-17 17-18 18-19 YTD 19-20

Bis

cu

it M

ark

et

Sh

are

%

Britannia Largest Competitor

As per AC Nielsen

…In a tough market environment

However, measures taken by Govt should help revive the economy

5

Slowing GDP growth

Stress in rural economy with reduced real income from Agri

Credit squeeze by Banks & NBFCs

Interest rate cuts & liquidity easing measures

Reduction in Corporate tax rate to spur investments

Increase in MSPs for certain crops

Package to boost exports

India macro economic scenario Measures taken by Government

Investment

Brand Equity

Innovation &

relaunches

New Category

Distribution

Technology & backend

Sustain-ability

In this challenging situation, we however….

continued our investments to drive profitable growth

6

#1 Investment in Brands

NC Healthy Start Activation

Win a Sports Cycle every hour

MBK TN Activation

Win an educational trip for your child

Treat Burst NC Cream Cracker

Relaunch

Key Brands on

air

Digital /

Activations

MBK in ROI

7

Treat Stars

Consumer Promotions

Goodday & Marie

#2 Innovation & Relaunches

Goodday RelaunchNutrichoice Arrowroot Relaunch

Nutrichoice Cream Cracker RelaunchNew Launches

Limited Edition launch Test launch - West

8

• Packaging change from Mat to Gloss

• Bold brand identity

• Recipe & design change

• Packaging change

• Recipe change – Sugar Free

• Packaging change

Q1'19-20 Q2'19-20

NSV Rs Crs.

Q3'18-19 Q4'18-19 Q1'19-20 Q2'19-20

NSV Rs Crs.

Wafers

• 10+% market share.

• No. 3 Brand.

Baked Salted Snacks

#3 New category launches…

Available in 3 formats in South :

• Groovy Chips

• Fun Sticks

• Crunchy fills

Plan to launch in West with commercialization of

Ranjangaon salted snacks facility.

9

Croissant

….New category launches

Milk Shakes – Tetra pack

2 Variants:

• Chocolate

• Vanilla

• Improved product sensorial to suite Indian palate.

• Wheat flour procurement issue resolved.

• Reduced factory wastage & increased efficiency.

• Focused launch in West Bengal & TN.

10

• 20+% market share.

• No. 2 in Brand in less than a year of launch.

#4 Distribution drive

11

7.3

10.0

12.6

15.5

18.4

21.0 21.3

Mar'14 Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Sep'19

Dec-1

6

Jan

-17

Feb-1

7

Mar-

17

Apr-

17

May-1

7

Ju

n-1

7

Ju

l-17

Au

g-1

7

Sep-1

7

Oct-

17

Nov-1

7

Dec-1

7

Jan

-18

Feb-1

8

Mar-

18

Apr-

18

May-1

8

Ju

n-1

8

Ju

l-18

Au

g-1

8

Sep-1

8

Oct-

18

Nov-1

8

Dec-1

8

Jan

-19

Feb-1

9

Mar-

19

Apr-

19

May-1

9

Ju

n-1

9

Ju

l-19

Au

g-1

9

Sep-1

9

Steady increase in Numeric Distribution

In L

akh

s

Sustaining Direct Reach

7k 8k10k

14k

18k20k

Mar'15 Mar'16 Mar'17 Mar'18 Mar'19 Sep'19

No o

f R

PD

s (R

ura

l Pre

ferr

ed D

eale

rs)

Sustaining Rural distribution

In %

11.0%

13.0%

15.0%

17.0%

19.0%

21.0%

UP MP Gujarat Rajasthan

2017-18 2018-19 YTD 19-20

Market share gains in Hindi belt

In %

Food Park

Biscuit

Cake including different-

iated

Croissant

Salted Snacks

#5 Hi-Tech food park at Ranjangaon - up and running

12 Lines planned with a capacity of

~ 140,000 TPA

Cake – Italy

Biscuit line – Italy

Biscuit line –USA

Salted Snacks –France

Technology investments for the future

Technology

Also a regional storage hub for Inventory 12

#6 Sustainability drive on plastic waste

13

• Awareness drive amongst employees by collection of ~ 2 MT of plastic waste across 6 locations

• Digital campaign to inspire every person to make a start on the waste segregation journey

Adjacent Business..

Bread: Focus continues to be on driving profitable growth

Dairy: Low single digit growth, however improved profitability sequentially

International: While Middle East & Africa continues to be challenging, America growing double digits. Nepal operations doing well coupled with steep market share gains.

14

On the Cost front…

15

12-13 13-14 14-15 15-16 16-17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

Flour

12-13 13-14 14-15 15-16 16-17 Q1'18Q2 18Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

Sugar

12-13 13-14 14-15 15-16 16-17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

RPO

12-13 13-14 14-15 15-16 16-17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20

Milk

Overall commodity inflation is moderate @ ~3%, basis

strategic positions in key input material

Rs./kgRs./kg

Rs./kg Rs./Ltr

Q2 Inflation: 14% Q2 Inflation: 1%

Q2 Deflation : 13%Q2 Inflation: 37%

16

And our journey on reducing wastages,

leveraging fixed costs and driving cost

efficiencies is moving ahead with full steam,

which has resulted in…

17

Operating Profit%

295

344 366 355 354

417 409 390

350

447

Q

1

Q

2

Q

3

Q

4

Q

1

Q

2

Q

3

Q

4

Q

1

Q

2

13.1%

14.8%

13.3%13.6%

14.3% 14.1% 14.0%14.6% 14.5%

14.1%

Con

solidate

d O

pera

tin

g P

rofit

FY 17-18 (13.8%) FY 18-19 (14.3%)

18

Q1 Q2 Q3 Q4 Q1 Q2

Growth% 20% 21% 12% 10% -1% 7%

24 month growth% 23% 35% 44% 42% 19% 30%

FY 19-20 (14.0%)

Improved profitability by 170 bps sequentially

Rs C

rs.

Financials

19

Key Financial Lines – Consolidated (Reported) Rs. Crs.

Particulars (Consolidated) Q2’19-20 Growth %

Net Sales 3,023 6%

Profit Before Tax 498* 9%

Profit After Tax 404# 33%

Particulars

(Consolidated)12-13 13-14 14-15 15-16 16-17 17-18 18-19

19-20

Q1

19-20

Q2

Profit from

Operations%5.7% 8.0% 9.3% 13.2% 12.9% 13.8% 14.3% 13.1% 14.8%

Profit before Tax% 5.8% 8.3% 12.2% 14.7% 14.5% 15.4% 16.1% 14.6% 16.5%

Profit after Tax% 4.2% 5.8% 8.9% 9.9% 9.9% 10.2% 10.6% 9.4% 13.4%

Source: Company Financials – Consolidated Results

Note: Profit% have been restated for previous years (wherever required) to make the numbers comparable

20

* Factors interest on debentures issued @ Rs. 5 Cr per month starting Sep’19.

# Factors reduction in Corporate income tax rates on a year to date basis.