Q1 FY25 Results

01st August, 2024

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Forward-Looking Statements

This presentation contains certain forward-looking statements including those describing the Company’s strategies,
strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements”
are based on certain assumptions of future events over which the Company exercises no control. Therefore there can be no
guarantee as to their accuracy and readers are advised not to place any undue reliance on these forward looking
statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise. These statements involve a number of risks, uncertainties and
other factors that could cause actual results or positions to differ materially from those that may be projected or implied by
these forward looking statements. Such risks and uncertainties include, but are not limited to: growth, competition,
acquisitions, domestic and international economic conditions affecting demand, supply and price conditions in the various
businesses in the Company’s portfolio, changes in Government regulations, tax regimes and other statutes, and the ability
to attract and retain high quality human resource.

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Macro Economic Context

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Macro Economic Environment

Global outlook steady with downside risks India remains resilient

Real GDP Growth YoY

7.7

3.7
2.1 2.4
1.4
3.2 1.7 2.6 0.9 5.0

World Adv. Eco US Euro Area China

2023 2024f 2010-19 average

 Major Central Banks remain cautious in their stance despite  FY25 GDP expected to grow by 7.2%
easing inflation pressures - Private consumption remains subdued
 Geo political dynamics & Climate emergencies pose  Balanced Macros
downside risks - Tax collections remain buoyant
 Debt distress in emerging and low income economies - Strong Bank and Corporate Balance Sheets
 Structural weakness in Chinese economy persists - Forex Reserves at all time high
Source : IMF WEO July’24 Source : IMF WEO’24, MOSPI, RBI |4|
 Consumption remains subdued Normal Monsoons augur well

Passenger Vehicles – retail sales declining (YoY%) Food inflation remains elevated (Qtly YoY%) Rainfall status: +2% LPA as on 30th Jul’24
1 1
. 0
%

CPI Food CPI

1 0
. 0
%

9.3%
8.9%
8.0%
9 .0 %

8 .0 %

7 .0 %
6.4%
7.3%
6 .0 % 5.6%
4.9%
5 .0 %

4 .0 %

4.0%
3 .0 %
3.8%

2 .0 %
2.2%
Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24
Source: FADA Source: MoSPI
Real rural wages remain weak Non-Durables growth lag (YoY%)

6.0%
Real Farm Yoy% Real Non Farm Yoy%

3.0%

0.0%

-3.0%

-6.0%

-9.0%

>=60% 20% - 59% (19%) - 19% (59%) - (20%) Source : IMD

Source: Labour Bureau Source: MoSPI IIP

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Macro Economic Environment

Key Key
Positives Monitorables
Moderating Stable growth Geopolitical Agri Commodity
Inflation outlook disruptions Inflation

Strong Bank & Monetary easing

Buoyant Tax Rural Demand
Corporate cycle in Advanced
collection recovery
Balance Sheets economies
Purposeful Policy
External Balances Govt. spending Extreme weather
intervention by
& Forex Reserve and Employment events
Government

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 Q1 FY25 Results
Business Highlights

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Key Highlights: Q1 FY25

 Gross Revenue up 7.3% YoY in a challenging operating environment, driven by Hotels, Value Added Agri products and Leaf
Tobacco
̶ FMCG-Others & Cigarettes delivered resilient performance amidst subdued demand conditions
̶ Green shoots of demand recovery in the Paper segment; performance remained impacted largely due to cheap Chinese supplies in global
markets including India & surge in domestic wood prices

 Resilient performance in FMCG – Others, amidst muted demand conditions and extreme heatwave in parts of the country
̶ Revenue up 6.3% YoY; PBIT up 10.4% on a high base;
• 2 Yr. CAGR: Revenue +11.1%; PBIT +52.8%
̶ Staples, Snacks, Dairy, Personal Wash, Fragrances, Homecare & Agarbatti drive growth
̶ EBITDA margin @ 11.3%; up 25 bps YoY, sequential uptick in prices witnessed in certain commodities

 Cigarettes Net Segment Revenue up 7% and PBIT up 6.5% YoY

̶ Continued focus on portfolio/market interventions & agile execution to reinforce market standing
̶ Differentiated & premium offerings continued to perform well

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 Key Highlights: Q1 FY25

 Hotels Segment Revenue up 10.9% YoY; Segment PBIT up 11.5% YoY

̶ Robust performance despite fewer wedding dates & extreme heatwave/elections impacting domestic travel & out-of-home dining
̶ ITC Ratnadipa^, Colombo launched in April’24; receives excellent guest response and widespread appreciation; 225 rooms and 8
F&B outlets are currently operational
̶ 7 managed hotels with appx. 460 keys operationalised during the quarter; 32 hotels opened in last 24 months
̶ Demerger: Shareholders’ approval received on June 6, 2024; Petition for sanction of the Scheme filed with NCLT on July 22, 2024

 Agri Business Segment Revenues up 22.2% driven by value added agri products, leaf tobacco and wheat
̶ Strong customer relationships and agile execution drive growth in Leaf Tobacco & Value Added Agri products
̶ Cost escalation in leaf tobacco and other agri-commodities weighed on margins during the quarter
̶ Geopolitical tensions & climate emergencies have led to concerns over food security and food inflation; trade restrictions imposed
by Govt. on agri commodities limit business opportunities in the bulk commodities space

^A project undertaken by WelcomHotels Lanka (Private) Limited, a wholly owned subsidiary |9|
Key Highlights: Q1 FY25

 Paperboards, Paper and Packaging Segment performance reflects the impact of low-priced Chinese supplies in global
markets including India, muted domestic demand conditions and surge in wood prices

̶ Subdued realisations, surge in domestic wood prices and ocean freight weighed on margins

̶ Capacity augmentation/debottlenecking projects successfully completed during the quarter; Segment performance includes the
impact of shutdown/stabilisation related costs pertaining to these initiatives

̶ Green shoots of recovery in domestic demand ahead of the festive season; Net realisation rates for Value Added Paperboard (VAP)
grades witness sequential improvement

• Strategic interventions, including sharp focus on portfolio augmentation, export customer/market development & structural
cost management, continue to be made to mitigate near term challenges

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FMCG Others

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 Resilient performance amidst muted demand conditions and
FMCG Others – Q1 FY25 extreme heatwaves in parts of the country

 Segment Revenue up 6.3% YoY on a high base (2-yr CAGR +11.1%)

- Staples, Snacks, Dairy, Personal Wash, Fragrances, Homecare and
Agarbatti drive growth
- Extreme heatwave adversely impacted categories with higher
salience of discretionary/out-of-home consumption

 Robust growth in Emerging Channels

- Channel specific business plans, collaborations, format-based
assortments and category-specific sell-out strategies drive growth

 Competitive intensity (incl. local/regional players) remained high –

Biscuits, Snacks, Noodles, Popular Soaps, Education & Stationery
Products

 Commodity prices largely stable during the quarter compared to the

base period; certain items such as sugar, potato, choco cream and
edible oil witnessed sequential uptick in prices

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FMCG Others – Q1 FY25

 Q1 Segment EBITDA margins at 11.3%, up 25 bps YoY

- Margin expansion sustained through multi-pronged interventions viz. premiumisation, supply chain optimisation, digital initiatives
across the value chain and strategic cost management

Annual Trends Q1 Trends

Full Year Seg. EBITDA Seg. EBITDA Margin %

11.2%
2300 10.2% 12. 0%

2100
9.1%
1900
8.9% 10. 0%

7.1%
1700

8.0%

1500

1300

6.0%

1100

900

4.0%

700

914 1317 1449 1954 2339

500 2.0%

FY20 FY21 FY22 FY23 FY24

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 Purposeful Innovation

Aashirvaad Svasti Ghee YiPPee! Korean Noodles Sunfeast Biscuits Sunfeast Smoothie Bingo! Original Style
90% Lower Cholesterol Fiery Hot Style | Spicy Kimchi Style Super Egg & Milk Sitaphal | Banana Himalayan Pink Salt
Oats

Aashirvaad Spices Fabelle Exquisite Candyman Tadka Lollipop Dermafique Classmate Octane Mangaldeep Temple
Chilli Powder | Ajwain One India Edition Mango Masala | Imli Masala Acne Avert Pastel Series Divinity | Sanctum
Spot Corrector

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Deepening Consumer Engagement

Cheering India to Victory Celebrating Moments

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Deepening Consumer Engagement

Sharpening Value Proposition

Har tiffin ki
sweet ending

Dil se karo baat

Bhagwan ke sath

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Greener Choices for Consumers

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 Creating Structural Advantage Scale| Productivity| Costs

ICML Khordha Solar Plant, Karnataka

Personal Care Facility, Uluberia Roof top Solar Plant

Kapurthala & Khordha

ICML: Integrated Consumer Goods Manufacturing and Logistics Facility | 18 |
FMCG Cigarettes

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 FMCG Cigarettes – Q1 FY25 Portfolio Vitality | Product Availability | Execution Excellence

 Net Segment Revenue* up 7% and Segment PBIT up 6.5% YoY

Segment Revenue  Sharp cost escalation in leaf tobacco & other inputs, largely mitigated through improved
mix, strategic cost management & calibrated pricing
7918 cr. 6.1%
 Differentiated variants & premium segment continue to perform well
- Sequential improvement in Value segment
Segment Results
 Focus on portfolio/market interventions & agility in execution stepped-up to reinforce

4960 cr. 6.5%

market standing

Relative stability in taxes, backed by deterrent actions by enforcement agencies, enables

continued volume recovery from illicit trade
*Net of Excise Duty/NCCD on Sales | 20 |
FMCG Cigarettes Reinforcing market standing

Innovation Portfolio Fortification

• Classic Connect
• Gold Flake Neo SMART Filter
• Gold Flake SLK
• Bristol Deluxe
• American Club Clove Mint
• Flake XL
• Gold Flake Indie Mint
• Flake Skipper
• Classic Icon

Recent Introductions

• Classic Icon Kings • American Club Super Slims • Flight

`
• Gold Flake Indie Mint Kings • Gold Flake North Star • Uni Klov

• Gold Flake Social Super Slims • Bristol Maja Mix • Gold Flake Tango Mix

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Hotels Business

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Hotels – Q1 FY25 Robust performance continues

 Revenue up 11% - despite fewer wedding dates, extreme heatwave/election

Segment Revenue impacting domestic travel & out-of-home dining

666 cr. 10.9%  ITC Ratnadipa, Colombo launched in April’24

 225 rooms and 8 F&B outlets operational;
 Receives excellent consumer response & widespread appreciation
Segment Results  7 managed hotels with appx. 460 keys operationalized during the quarter

146 cr. 11.5%  Demerger update: Shareholders’ approval received on June 6, 2024; Petition for
sanction of the Scheme has been filed with NCLT on July 22, 2024

Asset Right Strategy^

32 Hotels in last 24 months ITC Narmada ITC Gardenia won

(July 2022 – June 2024)
awarded ‘Best 5 the Bronze award
Star Hotel in at CII EHS
28 Managed Hotels in next 24 Gujarat’ by Excellence awards
months Gujarat Tourism 2023
(July 2024 – June 2026)

^ Across Luxury, Upper Upscale and Boutique properties | 23 |

 A Magnificent icon of Responsible Luxury
ITC Ratnadipa, Colombo, Sri Lanka^ launched in Colombo in April’24

Inaugurated by President of Sri Lanka, His Excellency Ranil Wickremesinghe in the

presence of Hon’ble Prime Minister of Sri Lanka Dinesh Gunawardena
Jala Anganaya Indian Ocean Pavilion

^A project undertaken by WelcomHotels Lanka (Private) Limited, the Company’s wholly owned subsidiary | 24 |
Executing ‘Asset Right’ Strategy – Recent openings

Mementos, Jaipur Devasom Resort & Spa, Kolkata

Urvashi’s Retreat, Manali

Fortune Resort & Wellness Spa Bhaktapur, Nepal

Healthy Pipeline of Management Contracts – Phased openings over the next few quarters | 25 |
Agri Business

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Agri Business

 Stock limits on Wheat and restrictions on exports continue to limit business opportunities in the
bulk commodities space

 Strong growth in Value Added Agri products driven mainly by Coffee & Spices

 Robust growth in Leaf Tobacco exports driven by agile execution, strong customer relationships &
new business development

Segment Revenue  Sharp escalation in prices of leaf tobacco & other agri commodities, ocean freight, supply chain
disruptions weighed on margins
6973 cr. 22.2%
 The state-of-the-art facility^ to manufacture and export Nicotine and Nicotine derivative
products was commissioned in the previous quarter; EU REACH approvals received. Customer
trials underway
Segment Results
356 cr. (LY 356 cr.)

Spices facility, Guntur IIVL facility, Mysore

^ Set up by ITC IndiVision Limited (IIVL), the Company’s wholly owned subsidiary | 27 |
Paperboards,
Paper &
Packaging

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Paperboards, Paper & Packaging Challenging operating environment

 Low priced Chinese supplies in global markets including India, muted domestic demand
conditions and surge in wood prices
 Capacity augmentation/debottlenecking projects successfully completed during the quarter
Segment Revenue
ꟷ Performance includes impact of shutdown/stabilisation related costs for these initiatives
1977 cr. 6.8%  Green shoots of recovery in domestic demand ahead of the festive season; Net realisation rates
for Value Added Paperboard (VAP) grades witness sequential improvement
 Recent capacity addition in Décor Paper aided growth in Speciality paper segment, despite
Segment Results muted demand conditions

261 cr. 44.7%  Sustainable Products portfolio continues to witness strong growth leveraging cutting edge
innovation platforms
ꟷ Launched Ecobyte: germ-free and grease-resistant sustainable packaging solution
ꟷ Recently commissioned state-of-the-art Moulded Fibre Products manufacturing facility^ in
Badiyakhedi, Madhya Pradesh, being scaled up progressively

^ Set up by ITC Fibre Innovations Limited, the Company’s wholly owned subsidiary | 29 |
Financials

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Key Financials

YoY
Rs. Cr. Q1 FY25 Q1 FY24
Growth
Gross Revenue 18,077 16,843 7.3%

Net Revenue 16,873 15,659 7.8%

EBITDA 6,295 6,250 0.7%

PBT 6,552 6,546 0.1%

PAT 4,917 4,903 0.3%

Standalone basis | 31 |
Segment Revenue

• Cigarettes: Net Revenue up 7% YoY

Q1
YoY • FMCG Others
Rs. cr. FY25 FY24
growth - Revenue up 6% YoY amidst muted demand conditions and
Segment Revenue extreme heatwaves in parts of the country
a) FMCG - Cigarettes 7918 7465 6.1% • 2 Yr. CAGR at 11.1%
- Others 5491 5166 6.3% - Staples, Snacks, Dairy, Agarbatti, and Personal Wash drive growth
Total FMCG 13409 12631 6.2%
• Hotels
b) Hotels 666 600 10.9%
- Revenue up 11%
c) Agri Business 6973 5705 22.2%
- Robust performance despite fewer wedding dates and extreme
d) Paperboards, Paper & Packaging 1977 2121 -6.8%
heatwave/elections impacting domestic travel & out-of-home
Total 23025 21058 9.3% dining
Less : Inter Segment Revenue 4947 4215 17.4%
• Agri Business
Gross Revenue from sale of products and
18077 16843 7.3% ̶ Revenue up 22% driven by wheat, value added agri products & leaf
services
tobacco

• Paperboards, Paper & Packaging

- Segment performance reflects the impact of low priced Chinese
supplies, muted domestic demand & subdued realisations

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Segment Results

Q1
YoY
Rs. cr. FY25 FY24
growth
• FMCG Others
Segment Results ‒ Segment Results up 10.4% YoY, 53% 2y CAGR
a) FMCG - Cigarettes 4960 4656 6.5%
‒ EBITDA margin at 11.3%
- Others 476 431 10.4%
• Up 25 bps YoY; sequential uptick in prices witnessed in
Total FMCG 5435 5087 6.9% certain commodities
b) Hotels 146 131 11.5%
• Hotels
c) Agri Business 356 356 0.0%
‒ Segment Results up 11.5% YoY, 14.2% 2y CAGR
d) Paperboards, Paper & Packaging 261 472 -44.7%
Total 6199 6047 2.5%
Less : i) Finance Cost 11 11 • Paper
ii) Other un-allocable (income) - Subdued realisation + steep increase in domestic wood costs &
(367) (510) ocean freight continue to weigh on margins
net of un-allocable expenditure
- Performance includes the impact of shutdown / stabilisation
iii) Exceptional items 3 0
related costs
Profit Before Tax 6552 6546

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ITC – A Global Exemplar in Sustainability

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Impactful Social Performance

Off-farm livelihood
ITC e-Choupal Natural Resources On-farm livelihood
Climate Smart Agriculture diversification – livestock
4 Million Farmers Management – Water diversification – Afforestation
Over 27.9* lac acres covered development
empowered Stewardship Over 11.7 lac acres
Over 22.3 lac milch
Over 16.5 lac acres covered Greened
animals covered

Mother & Child Health and

Primary Education Solid Waste Management Women Empowerment
Skilling & Vocational Training Nutrition
Reaching over Over 11.8 million households Over 3.6 lac
Skilled over 1.1 lac youth Over 14.6 lac beneficiaries
15.9 lac Children covered across programmes poor women covered*
covered*

*Basis FY24 | 35 |
Sustainability 2.0 Sustainability Targets 2030
REDUCE I RECYCLE I RESTORE Raising the Bar

Strategic Interventions to Combat Climate Change

Renewable Specific GHG Recyclable Plastic Plastic
Energy Emissions Packaging Neutrality

De-Carbonization Climate Adaptation and 100%

Resilience 50% 50% 100% Collection
since FY22

Building Green
Circularity Water Security for All Biodiversity & Agriculture
Infrastructure
5x of ITC’s Net 1 million
acres
Biodiversity
Conservation
Consumption million Climate Smart

AWS Certification
3 acres Village

Nature based solutions Inclusive Value

Chains
for High Water Stressed Sites
by 2035 1.5 million
acres
Social Farm and
Forestry

Proactively work towards achieving ‘Net Zero’ emission status

Supporting Sustainable Livelihoods: From 6 million to 10 million

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 Sustainability – Highlights

• Comprehensive policies & guidelines institutionalized

• 9 ITC Units have received AWS (Alliance for Water Stewardship) Platinum certification till date

• 50% energy from renewable sources achieved for the first time, well ahead of 2030 target

• Plastic Neutrality commitment exceeded - ~70,000 MT of plastic waste managed in FY24

• 100% critical tier-1 suppliers trained and ~40% assessed on ESG aspect

• Water +ve (for 22 years), Carbon +ve (for 19 years), and Solid waste recycling +ve (for 17 years)

• World class ESG credentials – MSCI, DJSI, CDP - Received ‘A’ rating in CDP water security for the first time

ITC’s CDP Scores

Water Security: ITC ahead of
A

Leadership Band
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Asia regional average of ‘C’.
In Water Security

Climate Change: ITC ahead of

Sustained ‘AA’ rating 6 years in a row Included in the Dow Jones
Sustainability Emerging Markets Index A- Asia regional average of ‘C’
In Climate Change
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ITC: Enduring Value

A passion for in a way that is and

Profitable growth... Sustainable… Inclusive.

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Links

Product/initiative Link

Bingo! on Instagram https://www.instagram.com/bingo_snacks/

YiPPee! on Instagram https://www.instagram.com/sunfeast_yippee/

Aashirvaad on Instagram https://www.instagram.com/aashirvaad/

Sunfeast Dark Fantasy on Instagram https://www.instagram.com/sunfeastdarkfantasy/

Mom’s Magic on Instagram https://instagram.com/sfmomsmagic/

Classmate on Instagram https://instagram.com/classmatebyitc/

ITC : Abiding Commitment to Nation-Building https://youtu.be/oP8d-Q8AD1w

https://www.itcportal.com/sustainability/sustainability-integrated-report-
Details on the Company’s Sustainability 2.0 vision
2024/ITC-Sustainability-Integrated-Report-2024.pdf

Quarterly Media Statement https://www.itcportal.com/investor/pdf/ITC-Press-Release-Q1-FY2025.pdf

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