financial year 2016-17
TRANSCRIPT
Presentation by
Ajoy Misra, Managing Director
54th Annual General Meeting Financial Year 2016-17
Performance Highlights
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Good improvements in Operating profits
and significant improvements in Group Net Profits
Soft commodity prices prevailing in both tea and
coffee categories
Good control over spends
Volatile currency markets - Brexit leading to GBP depreciation
Increased focus on under-
performing businesses
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Snapshot of Financials
2%
Total Operating Income * Profit before Exceptional items and Tax
31%
Total Operating Profit
24%
* Based on the new Accounting Standards (IndAS), operating income is lower than earlier GAAP (IGAAP) due to the treatment of promotions and Joint Ventures
Group Net Profit of Rs. 455 crores, significantly higher than previous year
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Dividend
As at 31st of March 2017 the market capitalisation stood at Rs 9501 crs reflecting an increased of 23% for the year whilst the NSE Nifty increased by 19%
Exceptional Dividend Dividend
As of 17th of August our share price closed at Rs 190.60 & market capitalisation stands at Rs 12029 crs
Dividend proposed is at Rs 2.35 per share as against a dividend of Rs 2.25 per share in the PY
Business Performance Highlights
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Performance Highlights – Branded Business
INDIA
Volume & sales growth
Continues to maintain volume and value leadership, gain market shares
Effective management of commodity cost
New launches - Tata Tea Teaveda and Tetley Super Green Tea
Earlier launched Maharashtra Gold Mixture and our recently launched Tata Tea Elaichi are reflecting signs of success
Tata Coffee Grand – growth in market shares
Jaago Re 2.0 launched – Creating 1 million pre-activists
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Alarm Bajne Se Pehle........ JAAGO RE
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Performance Highlights – Branded Business UK
Strong performance in UK with higher volumes witnessed through growth in market shares across all major categories despite
Declining overall tea category, specially in everyday black Continuing competitive intensity
Green tea continues to grow with improvement in Super Greens
Multimedia campaign of Tetley Supers ran in H2 – with strong ground activation
Various awards won - an endorsement for our products
Grocers New Product of the Year Award – Tetley Super Fruits Boost Blueberry and Raspberry
Great Taste Award – 3 years in a row – Kenyan Gold, Earl Grey, Green Tea Mango and Passion Fruit, Super Green Heart
Tetley has been highlighted as a ‘Brand to watch’ by Grocer – a leading media house covering UK FMCG sector
Tetley Smile Challenge was run to promote and raise funds for the NGO Smile Train
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Performance Highlights – Branded Business
USA Strong performance by US coffee
• Ground Coffee grows
• Strong improvement in operating profits
New Launches - Brazilian Breakfast coffee and Infusions – Alert and Relax
• Well received in trade and also receiving good press coverage
Improved Brand Imagery through innovative packaging
Tetley Green Tea reflects modest growth despite decline in category
• Launch of Super Green Tea aids growth
Canada Topline performance improves
Maintains volume and value leadership
New launches during the year
Tetley Ayurvedic Balance range
Tetley Care (Herbal tea) – lemon & ginger flavour
Rest of EMEA Improved performance in some European markets
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Performance Highlights – Non Branded Business
Tata Coffee Limited
Spectacular performance, recording highest ever
Operating Income, and
Operating Profit
Instant Coffee - Improvement in coffee extraction business driven by improved volumes & favorable sales mix
Various accolades won by TCL during the year
Instant Tea
Instant tea business reflects a stable topline performance with good improvement in operating profit
Plantations
Improvement in tea plantation attributable to better realisation
Improvement in coffee plantation, mainly due to improved Arabica volumes
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Performance Highlights – Incubatory Businesses Tata Starbucks
Tata Starbucks poised to enter Kolkata as the 7th city in India
Good topline growth and store-level profitability
Growth in new stores and new formats to continue
Starbucks Coffee (India Estate Blend) now served on Vistara airlines
Nourishco
Double digit growth continues for Tata Gluco Plus & Himalayan
Himalayan demonstrated good growth in traditional trade, e-commerce and key accounts
Himalayan Sparkling and Flavoured Himalayan launched in test cities and channels
Tata Gluco Plus New variants - Jeera and Panneer (Rose) launched during the year
Bangladesh
Good improvement in performance for the Bangladesh business aided by new launches
Middle East
Strong year with healthy growth in Tetley brands in all six markets
Fresh foil pack launched across markets
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A Culture of Innovation
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Annual Report 2016-17
Tata Global Beverages Annual Report 2016-17
This annual report is a
celebration of some of
the key innovations from
2016-17, relating not just
to products, but also to
the way we communicate,
and fulfill our social
purpose
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A Culture of Innovation
INNOVATION BY PRODUCT INNOVATION BY BRAND INNOVATION IN SUSTAINABILITY
Super Teas
RTD iced teas
Premiumisation
- Tetley Signature, France
- Tetley Indulgence, UK
Innovation inspired by Ayurveda
Coffee Reimagined
Narrating the brand’s story through our consumers’ lens – Tata Tea Kanan Devan
Tetley talks balance with its unique TEA talks - Tetley Ayurvedic Balance Teas
Energy Game On - Tata Gluco Plus
Making good business better
Spreading warmth, one smile at a time - Tetley Smile Challenge
Jaago Re urges India to pre-act, not react
Sustainable sourcing for long term success
Tata Gluco Plus - India Super Tea - UK Himalayan Sparkling &
Flavoured - India Teaveda - India
RTD Iced Tea - Canada Super Green Tea - India Ayurvedic Balance -
Canada
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Our Range of Innovative Products
Infusions - US
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Significant events, Recognition and Sustainability
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Other Significant Events
Tata Coffee State of the art green field freeze dried instant coffee facility set up in Vietnam with a capacity of 5000mt pa. Tata Coffee infused an aggregate amount of USD 6 Million for the facility post year end
GST & Demonetization
Good recovery in India post demonetization impact in Q3
Smooth transition to GST for our companies based in India
Russia
SPA signed in August 2017 with Russian companies for sale of Russian operations. Royalty agreement as brand will still be owned by us
Himalayan Water to enter
US Talking Rain Beverage Company to market & distribute our premium natural mineral water brand - Himalayan, in the US
China JV Sale
Disposal completed post year end
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Some more Recognitions………..
TGB achieves full Rainforest Alliance certification for EMEA and CAA region
TGB recognised as one of the most transparent
companies in emerging markets Tetley Green Tea’s
Transformation series wins Gold at Emvies 2016
TGB is a leader again in Climate Disclosure Leadership Index India
2016
Tata Coffee recognised as Most Ethical Company - Agricultural
Sector
Tetley in UK sweeps up more
Great Taste awards for the third
consecutive year receiving a
one-star endorsement, rated as
‘Simply Delicious’
SOURCING IT RIGHT
Sustainable products are good for people, good for the planet and also good for business
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Sustainability initiatives
Specific Project with ETP and Tea Research Association
Project Sustainable Plant Protection Formulation
(S-PPF)
PROTECTING THE ENVIRONMENT
IMPROVING LIVES BREAKING BARRIERS
Our Pledge
Jaago Re 2.0, Phase 2: Inspire & Create 1 mn Pre-activist
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Phase II aims to inspire people to be a part of change and pre-act on two issues:
Petition: To the HRD Ministry to make Gender Sensitization compulsory in school curriculum Pledge: Parents to practice / teach gender sensitivity to children at home More than 8.7 lac petitions received on Women Safety 1st July onwards ; equal number of petitions from men & women
WOMEN SAFETY
Petition: To the HRD Ministry to make sports a compulsory subject in schools Pledge: Parents to encourage children to play and follow a sport at home / in their locality Launched on 16th August - To sign the petition and support the cause, log on to www.jaagore.com
SPORTS ENCOURAGEMENT
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Ranjana Kumari on Women Safety
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Dipa Karmakar on Sports Encouragement
Thank you