1. Analyst Presentation Quarter 3 2011-12

2. Agenda Financial highlights Macro Environment Operating performance
Financial review

3. 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.

4. 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 Closing rate current year Rs 71.59; Previous year Rs Budgeted rate at Rs 70.01
USD – Avg current year Rs 44.61, Prior year Rs Closing rate current year Rs 44.69; Previous year Rs Budgeted rate at Rs 43.62
Tea Costs – India – blend costs Rs / kg Budget Rs , Actuals and PY
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)

5. 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 % (-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

6. 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

7. 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 % (-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 % (-0.1%) and value 23.9% (-0.9%)/ Unilever at volume 11.6% (+0.6%) and value 8.5% (+0.2%)

8. 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

9. 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
Sales (Rs cr)
Realisation/kg
Plantation Coffee
Arabica Robusta
Budgets Actuals py Budgets Actuals py
Volume t
Sales(Rs cr)
Realisation/kg

10. Financial Review

11. 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

12. 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

13. 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

14. Thank You

15. Currency Movements
GBP/USD
USD/INR vs USD/RUB
Source : Reuters
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16. Commodity Cost Trends - Tea

17. Commodity Cost Trends - Tea
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18. Commodity Costs Trends - Coffee
ICE ‘C’
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19. THANK YOU

20. Investment behind brands in Canada
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21. Investment behind brands in UK – Tetley Extra Strong

22. Investment behind brands in UK – Green Tea
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