Analyst Presentation Quarter 3 2011-12

Agenda Financial highlights Macro Environment Operating performance Financial review

Financial Highlights for the Quarter Group income up 12% against prior period at Rs 1802 crores. Profit before exceptional items at Rs 157 crores higher than previous year due to saving in interest costs. Improved operating performance is most segments keep EBIT flat to PY despite increased competitive intensity and firm commodity costs. PBT at Rs 141 crores impacted due to exceptional items. PAT marginally ahead of prior year due to savings in tax.

Macro Environment Volatile exchange market USD strengthens against most currencies Resultant favourable translation impact Commodity costs continues to harden Tea prices remains firm in most markets Coffee prices reduce from an earlier high but still higher than prior year Interest rate softness continues – Company gains by restructuring high cost debts Continuing competitive intensity GBP – Avg current year Rs 73.21, Prior year Rs 67.78. Closing rate current year Rs 71.59; Previous year Rs 69.67. Budgeted rate at Rs 70.01 USD – Avg current year Rs 44.61, Prior year Rs 45.21. Closing rate current year Rs 44.69; Previous year Rs 46.43. Budgeted rate at Rs 43.62 Tea Costs – India – blend costs Rs / kg Budget Rs 131.71, Actuals 128.58 and PY 118.27 UK – 071 blend $/kg Budget $ 2.65 , Actuals $ 2.69 and prior year $ 2.77 071 blend £/kg budget £1.71, Actuals £1.74 and prior year £1.82 Coffee Costs - Coffee costs - USD/lbs increased from $1.71 last quarter (2010/11) to $2.76 in the current quarter (2011/12) and CY budget are at $2.60 (2011/12)

Operating Performance Highlights Strong performance in India continues – volume and profitability growth. Continue volume and value market leadership. US coffee performance impacted by higher trade spends (to secure volume growth) and significantly higher green coffee costs. Canada continues market leadership –New product launched in prior quarters gain distribution. UK topline growth achieved, signifying reversal of earlier trend. Higher A&P spend due to competitive intensity and phasing of promotions impacts profitability. Market leadership in Redbush / Decaf teas Good coffee performance continues in Russia Improved performance in Instant Coffee Units in India South Asia volumes – Tea B 21730t A 23302t PY 20949t. Sales B - Rs 450 cr A Rs 479cr and PY 426 cr USA coffee – volume B 9931k lbs A – 8300k lbs and PY 10660l lbs Sales was B316 cr A 285cr and PY 309cr Canada Market share volume 2011 40.3% (-0.9%) and value 34.8% (-1.3%)/ Unilever at volume 27.7% (+0.7%) and value 19.8% (-0.1%) UK – Sales expected to recover excepting for the lost volumes of the Asda netto merger. EBIT improves aided by adv cuts. UK only volumes B 30041t A28958t and PY29790t Coffee volumes in Russia – Coffee - B2022k lbs A2070k lbs PY 1865l lbs

Operating Performance Highlights South Asia 11% Top line growth for the quarter over previous year, with portfolio growth. Maintained MAT market value and volume leadership with 21.3%1 and 19.5%1 , respectively Restage of Tata Tea Premium in the quarter “Soch Badlo” campaign launched in November to celebrate 25 years of the brand Tata Tea Volume share 18.6% (-0.2%) and value share 20.4% (-0.5%) HUL share volume 16.8% (-0.2%) value share 20.8% (-0.6%) 1 AC Nielsen MAT – Dec’11

Operating Performance Highlights Canada, America and Australia (CAA) Canada Tetley continues to be volume and value leader for Black and specialty teas in the Canada, driven by aggressive innovation. New blends/products launched in earlier months (dark chocolate vanilla bean Perk and Green Pomegranate 80s). gaining distribution. US Top line growth for coffee business - price increases taken in earlier quarters improves performance. Higher commodity cost and increased merchandising costs erode margins. Australia New lines (Fruit and Herbal. Decaff green) accepted for listing in major retailers. Strong performances in Extra Strong, Green and New Chai range Goodearth distribution gains UNFI and safeway. Improved performace against budget B 98 t A 113 t Py 78 t. New distribution on green decaf and new shelf sets in safeways. Lower velocities in Walmart. Canada Market share volume 2011 40.3% (-0.9%) and value 34.8% (-1.3%)/ Unilever at volume 27.7% (+0.7%) and value 19.8% (-0.1%) Canada Specialty tea bags Market share volume 2011 27.1% (-0.1%) and value 23.9% (-0.9%)/ Unilever at volume 11.6% (+0.6%) and value 8.5% (+0.2%)

Operating Performance Highlights UK, Europe, Middle East & Africa (EMEA) Top line growth achieved during the quarter. Strong performance leads to market leadership as no:1 brand for Tetley Decaff and Tetley Redbush. Green tea volume growth year on year Teapigs brand of super premium teas continues to grow with distribution gains. South Africa performance improves over prior year. Improved coffee performance in Russia. Continued focus on distribution with increased listing in key accounts. Recovery in Tetley brand in Poland continues. Tetley has gained 0.4ppts in volume share and is now at 3.4% GB market share volume 25% (-2.1%) value 22.7 (-1.2%) Uniliver at volume 28.5% (+1.3) value 27.2 ( 1.2%) Redbush market share in UK volume 30.8% (+1.8) value 28.5% (+0.5%) Wisbray Volume 29.0% (-1.9%) value 33.8% (-1.0%) Total everyday decaff in UK volume 35.3% (-0.7%) value 35.2% (-0.4%) Unilever Volume 23.1% (+3.4%) value 23.8% (+2.5%) Total Green in UK volume 24.9% (+2.1%) value 20.7% (+3.2%) Twining Volume 36.6% (-0.4%) value 42.3% (-0.2%) Coffee volumes in Russia – Coffee - B2022k lbs A2070k lbs PY 1865l lbs Tetley brand grows by 23% in poland 1 AC Nielsen MAT – Dec’11

Operating Performance Highlights Non Branded Operations Higher realisations in coffee plantations and extractions drive better results in Tata Coffee Limited. India and US instant tea operations stable. China JV has commenced operations. Non Branded Operations Instant Coffee sdc Fdc Budgets Actuals py Budgets Actuals py Volume t 1189 1247 867 240 269 185 Sales (Rs cr) 39 42 27 10 11 7 Realisation/kg332 335 314 427 392 383 Plantation Coffee Arabica Robusta Budgets Actuals py Budgets Actuals py Volume t 699 733 902 1439 1465 1172 Sales(Rs cr) 16 16 14 15 16 10 Realisation/kg228 221 156 105 109 90

Financial Review

Group Financial Review Rs Crores Q3 ending December Particulars YTD ending December Actual PY Variance 1802 1606 196 Total Operating Income 4898 4437 461 157 160 (3) EBIT 363 376 (13) 4 3 1 Investment Income 29 28 (4) (15) 11 Interest Expense (Net) (8) (41) 33 148 9 Profit Before Exceptional Items 384 364 21 (16) - Exceptional Items 62 (46) 108 141 147 (6) Profit Before Tax 447 317 129 (59) (68) 8 Tax (113) (138) 26 82 80 2 Profit After Tax 334 179 155 18 (17) Share of Profit from Associates 5 31 (26) (18) 7 Minority Interest in consolidated profit (36) 64 72 Consolidated Group Profit 302 169 134 11

Region wise Operating Income Q3 Ending Dec 31 Particulars (In Rs Crores) YTD Ending Dec 31 Actual PY Variance BRANDS 371 339 32 USA 1017 925 92 141 135 6 Canada ,South America & Australia 342 348 (6) 512 474 38 CAA 1359 1273 86 407 354 53 GB & Africa 1040 954 85 237 202 35 Europe & Middle East 573 521 51 644 556 88 EMEA 1612 1476 136 496 446 50 South Asia Brands 1445 1281 165 8 2 Other Beverages 19 17 3 1660 1481 178 Total Brands 4436 4046 390 139 112 28 Total Non Branded Operations 425 357 68 13 (10) Other and Eliminations 37 34 (3) 1802 1606 196 TOTAL OPERATING INCOME 4898 4437 455

Exceptional Items 13 Rs. Crs Q3 2011 2010 Item YTD DEC YTD DEC - 7 Un-realised Exchange Variance on $ deposits/options (3) Profit on sale of Non Core Investments 137 (16) (7) Other Costs (75) (43) Exceptional Items 62 (46) Other Cost (2) Redundancy Costs relating to business restructure (20) (11) (5) Other costs/Restructure (12) Future payment under contractual obligation Provision for settlement of claims (6) Estimated Loss on discard of assets (4) (14) Costs relating to long term initiatives and new projects (18) Employee Separation Costs Total 13

Thank You

Currency Movements GBP/USD USD/INR vs USD/RUB Source : Reuters Return

Commodity Cost Trends - Tea

Commodity Cost Trends - Tea Return

Commodity Costs Trends - Coffee ICE ‘C’ Return

THANK YOU

Investment behind brands in Canada Return

Investment behind brands in UK – Tetley Extra Strong

Investment behind brands in UK – Green Tea Return