1 TATA Tea Group 2008/2009 Results Presentation Peter Unsworth

TATA Tea Group 2008/09 2 Creating a global leader in branded good for you beverages Five businesses being operationally integrated and transformed to make one global beverage group Introducing The Tata Tea Group

TATA Tea Group 2008/09 3 Led by a Single Management Team Peter Unsworth – CEO Tetley Group Percy Siganporia – MD Tata Tea, Chairman MEMW Hamid Ashraff – MD Tata Coffee L Krishna Kumar – Chief Financial Officer Nalin Miglani – Chief HR Officer John Nicholas – Chief Marketing Officer

TATA Tea Group 2008/09 4 Key Highlights for 2008/09 Strong performance with resilient core categories in difficult economic and trading conditions Product portfolio expands Strong brand growth in our target categories Integration and transformation

TATA Tea Group 2008/09 5 Key Highlights for 2008/09 Group operating income up 12% at Rs 4874 crores Group PBT before exceptional up 21% at Rs 531 crores Group PBT lower by 39% at Rs 1256 crores as compared PY figure of Rs 2060 cr* * PY figure include one time profit on sale of EBI amounting to Rs 1608 crores

TATA Tea Group 2008/09 6 The Pillars of our Business Strategy

TATA Tea Group 2008/09 7 Products & Categories Moving from a tea and coffee company to a wider beverage business spanning six product categories

TATA Tea Group 2008/09 8 Brands A new central marketing function driving global brands management and innovation

TATA Tea Group 2008/09 9 Distribution Expansion into new geographies underway – Russian entry recently announced

TATA Tea Group 2008/09 10 People A single management team and six consumer/customer focused regions

TATA Tea Group 2008/09 11 Process Gaining scale economies through common systems

TATA Tea Group 2008/09 12 The Business Strategy – Products & Categories

TATA Tea Group 2008/09 13 Water: Expansion of Himalayan water range into more cities in India RTD: National launch of Tetley Iced Tea following successful test market in Canada National launch of Tetley Infusions (iced tea concentrate sachets) in Canada Test market launch of T!on juice drink in India Innovation Drives Category Growth

TATA Tea Group 2008/09 14 Tea: National launch of Tetley Red Tea in Canada National launch of Good Earth Organic teas in UK Coffee: National launch of Good Earth Organic Coffee in USA Expansion of Product Portfolio

TATA Tea Group 2008/09 15 The Business Strategy - Brands

TATA Tea Group 2008/09 16 The Business Strategy - Global & Regional Brands Regional Focus Brands Tata Coffee Global Focus Brands

TATA Tea Group 2008/09 17 Share Growth in Tea Brands in Core Market Strong Tea Performance Relative to Peers Core markets include India, UK, US, Canada, Australia, Poland, France, Czech Republic Source: Euromonitor 2008 Core Markets Tea Value Share % %

TATA Tea Group 2008/09 18 Record brand shares in both Canada and France launched into UK and Canada (Tea), US (Coffee) Premium, Agni and Gold all exhibiting strong growth post the Jaago Re campaign and despite increased consumer pricing Global Brands Performance Highlights

TATA Tea Group 2008/09 19 strong gains in both rate of sale and distribution in continued growth after brand relaunch awarded ‘Product of the Year’ by Polish consumers Regional Brands Performance Highlights

TATA Tea Group 2008/09 20 Focus on Brands Ability to drive marketing excellence across different countries and cultures Here’s a flavour...

TATA Tea Group 2008/09 21 Focus on Brands The Growth Story of Tetley Redbush In the UK Tetley Redbush is the No. 2 brand in the UK with a 26% market share One of the fastest growing brands in the UK tea segment Following the success of the 40’s pack – larger pack sizes and new variants have been introduced Introduction into the Canadian market in 2008

TATA Tea Group 2008/09 22 Focus on Brands The Impact of the “Jaago Re Campaign”

TATA Tea Group 2008/09 23 Focus on Brands Eight O’Clock Coffee 100% Colombian Drives Brand Growth Source: *IRI, 52 weeks ended 3/22/09 **Internal sales data F’09

TATA Tea Group 2008/09 24 The Business Strategy - Distribution

TATA Tea Group 2008/09 25 Design of Tata Tea Group Organisation Now Six Regions: GB & Africa Europe & Middle East USA Canada & South America South Asia Asia Pacific

TATA Tea Group 2008/09 26 Regional Highlights GB and Africa: Retained UK tea category partnership with Tesco Acquired CTC giving west coast presence in South Africa

TATA Tea Group 2008/09 27 USA: Recent new CostCo and Walmart* listings South Asia: Launched T!on and extended distribution of Himalyan Regional Highlights

TATA Tea Group 2008/09 28 Europe & Middle East: Entry into Russian market Canada & South America: Launch of Tetley RTD Iced Tea into over 6,000 convenience stores across Canada Regional Highlights

TATA Tea Group 2008/09 29 Russia Market Entry Russia is the #2 tea market in the world Recent 51% acquisition of Grand A major Russian packaging and distribution company in coffee and tea

TATA Tea Group 2008/09 30 The Business Strategy - People

TATA Tea Group 2008/09 31 Building a global organisation New single management structure in place New and distinct company values defined Integrated Global Reward Strategy

TATA Tea Group 2008/09 32 US Restructuring well underway Centralized HQ for three US businesses Cross fertilization of ideas across tea and coffee brands Management and administration is consolidated reducing cost Full integration expected to be realised by end of 2009/10

TATA Tea Group 2008/09 33 The Business Strategy - Process

TATA Tea Group 2008/09 34 World class processes continue to be built Development of global information systems to support global integration Consolidated global financial system in place Drive global efficiencies Balanced scorecard for strategy implementation

TATA Tea Group 2008/09 35 Outcomes of Strategies – The Global Picture The place to be for exceptional talent Global distribution coverage Global consumer brands Multi category portfolio World-class business processes

TATA Tea Group 2008/09 36 The Tata Tea Group A global leader in good for you beverages THANK YOU

37 TATA Tea Group 2008/2009 Financial Results L Krishna Kumar, CFO

TATA Tea Group 2008/09 38 Key Highlights for 2008/09 Strong performance in difficult economic & trading conditions – but resilient core portfolio Increase in input costs largely recovered through price increases Benefits from effective management of sterling currency risk

TATA Tea Group 2008/09 39 Key Highlights for 2008/09 Continued improvements in product portfolio and new launches Initial costs of restructuring absorbed Strong brand growth in our target categories

TATA Tea Group 2008/09 40 Performance 2008/09 Group operating income up 12% - growth in brand sales, price increases and favourable currency Group PBT before exception up 21% - Cost increases offset by interest savings Cost increases mainly on commodities, growth initiatives like water launch, brand launch/support in US, UK and Canada

TATA Tea Group 2008/09 41 Performance 2008/09 Other cost increases – market driven impact on domestic defined benefit retirement schemes Group PBT lower mainly on account of one off items One off items in the CY-exchange gain on surplus cash Rs 814 Crs (realised component Rs 471 Crs) actuarial provisions in UK Rs 54 Crs, last year gain on sale of EBI shares Rs 1607 Crs EPS Rs 113 (Rs 250) EPS excluding exceptional items Rs (Rs 41.50) reflecting improvement in underlying performance

TATA Tea Group 2008/09 42

TATA Tea Group 2008/09 43 Strong Brand Growth for 2008/9 Coming from Tata Tea and Eight O’Clock Coffee Good Earth 1.4% Vitax 1.6% Jemca 0.7% Indian Tea Brands 21.1% Source : Internal Eight O’Clock 16.9% Tetley 42.2% Others 16.1% Good Earth 1.4% Vitax 1.4% Jemca 0.7% Indian Tea Brands 19.4% Eight O’Clock 14.9% Tetley 48.5% Others 13.7%

TATA Tea Group 2008/09 44 Branded share of business increases Source : Internal Tea 72.65% Coffee 16.58% Plantation & Extraction 9.95% Others 0.82% Categorywise Sales Breakup Categorywise Sales Breakup Tea 73.95% Coffee 14.31% Plantation & Extraction 11.31% Others 0.43%

TATA Tea Group 2008/09 45

TATA Tea Group 2008/09 46 Robust Balance Sheet Position March 09March 08 Sources of Funds Shareholders Funds Loans Deferred Tax4837 Total Application of Funds Fixed Assets Goodwill Others Investments Long Term Current Cash/Cash equivalents Recoverable from NIPD Net Operating Working Capital Provisions/Pension liabilities(410)(381) Miscellaneous Expenses to the extent not written off817 Total Net Debt Indian Rupees Crores

TATA Tea Group 2008/09 47 Performance Over Time In Rs LacsIn Rs /092007/082006/

TATA Tea Group 2008/09 48 Significant Increase in Dividend Payout Dividend Quantum Performance Currency: Indian Rupees Lakhs 2004/52005/62006/72007/ Exceptional Dividend /9 108

TATA Tea Group 2008/09 49 Standalone Performance Tata Tea Ltd Optg income of Rs 1379 Crs for the year compared to Rs 1153 Cr in the prior year. Reflective of growth in brands and price increases Strong brand performance with recovery of commodity cost increases and lower export profitability, Retiral benefits cost increases driven by market conditions. EBIT at Rs 142 Crs Investment income including dividends from Group companies results in PBT at Rs 239 Crs PBT before exceptionals Up 4% Operating EBIT Down 15% Operating income Up 20% Exceptional expenditure in the current year reduces PBT to Rs 229 crs. PY had profit on sale of North India Plantation Operations PBT Down 41%

TATA Tea Group 2008/09 50 Standalone Performance Tata Coffee Group Operating income of Rs 1121 Crs compared to Rs 925 Crs in the prior year. Strong branded sales in the US coupled with favourable Fx translation and higher plantation sales Strong brand performance offset by investment behind ‘Good Earth’ launch, lower export profitability translates to a growth of 1%. EBIT at Rs 148 Crs Loan restructuring drives lower interest costs results in PBT before Exceptional items at Rs 83 Crs up 16% PBT before exceptionals Up 16% Operating EBIT Up 1% Operating income Up 21% Exceptional expenditure relating to US reorganisation reduces PBT to Rs 70 Crs, down 2% PBT Down 2%

TATA Tea Group 2008/09 51 Strategy in Place and Journey Started Investment focus will be brands Entry into wider beverage category Focus on six regions Products, brands, distribution, people and processes Focus on the branded business and development of global brands Broader branded portfolio and expansion into new categories Wider global footprint – global not international Integrated global business

TATA Tea Group 2008/09 52 Summary of Year End Results Strong performance in difficult conditions Strong, well financed business platform The journey has begun to becoming : A global leader in good for you beverages!

53 THANK YOU