11

Analyst Presentation

Quarter 2 2011-12

2

Agenda

• Financial highlights

• Macro Environment

• Operating performance highlights

• Financial review

3

Financial Highlights for the Quarter

Group income up 12% against prior year at Rs 1630 crores.

EBIT at Rs 113 crores improves prior year

Significant reduction in Interest costs and Exceptional items

PAT at Rs 78 crores is significantly ahead of prior year

4

Macro Environment

• Volatile exchange market

– USD strengthens against most currencies

• Commodity costs continue to be high– Tea prices increase in most markets

– Coffee prices reduce from an earlier high but still higher than prior year and budget

• Interest rate softness continues – Company gains by restructuring high

cost debts

• Continuing competitive intensity

5

Operating Performance Highlights

• Strong performance in India – volume and profitability growth. Achieved value market leadership.

• US coffee performance impacted by higher trade spends and significantly higher green coffee costs.

• Canada continues market leadership –in black and Specialty Tea Segment. New product agenda led by Chai blends (dark chocolate & vanilla bean) & Perk

• Restructuring of broker arrangement completed in Australia. Specialities and Chai Latte launched

• UK performance impacted due to phasing of promotions and competitive intensity. However strong performance in specialty category. Market leadership in Green Tea and Redbush.

• Good coffee performance in Russia

6

Operating Performance Highlights

• South Asia

- 14% Top line growth over previous year, with portfolio growth.

- Achieved market value leadership with MAT 21.5%1 and maintained volume leadership with MAT 19.7%1

– Price increases triggered in some Brands.

– Campaigns for Tata Tea Premium, Tata Tea Gold and KD and On-pack promotion for Tata Tea Gold /Tata Tea Agni drive performance.

– Launch of new Tetley Green Tea Flavours – Cinnamon, Honey and Citrus Spice and Alo Vera

1 AC Nielsen MAT – Sep’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 developed and launched with good success at listing products with trade. - New Chai blends, Dark chocolate vanilla bean, Perk high caffeine- orange pekoe, Green Pomegranate.

US

– Coffee sales show recovery from Q1. Higher commodity costs and merchandising erode margins.

– Good Earth performance improves with distribution gains. Tetley sales also on track with ethnic brands of Tetley growing.

Australia

– Restructuring of broker arrangement completed in Australia. Specialities and Chai Latte launched

8

Operating Performance Highlights

• UK, Europe, Middle East & Africa (EMEA)

– Tetley brand investment begins to impact brand health metrics.

– Strong performance leads to market leadership as no:1 brand for Tetley Green and Tetley Redbush.

– Teapigs brand of super premium teas continues to grow with distribution gains.

– South Africa performance improves over prior year.

– Improved coffee performance in Russia.

– Recovery in Tetley brand in Poland continues

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 yet to commence operations despite shipment of 1st container.

10

Financial Review

Q2 Ending September Rs Crores YTD Ending September

2011/12 2010/11 Variance 2011/12 2010/11 Variance

1630 1454 176 Total Operating Income 3097 2831 266

113 104 9 EBIT 206 217 (11)

19 21 (2) Investment Income 25 25 -

(3) (14) 11 Interest Expense (Net) (4) (26) 22

129 111 18 Profit Before Exceptional Items 228 216 12

(11) (32) 21 Exceptional Items 78 (46) 124

118 78 40 Profit Before Tax 306 170 136

(40) (38) (2) Tax (54) (71) 17

78 40 38 Profit After Tax 252 99 153

9 20 (11) Share of loss from Associates 4 13 (9)

(10) (9) (1) Minority Interest in consolidated profit (18) (15) (3)

77 52 25 Group Net Profit 238 97 141

Group Financial Review

12

Q2 Ending Sept 30 Particulars YTD Ending Sept 30

Actual PY Actual PY

Branded Operations

360 277 USA 645 586

106 121 Canada & Australia 201 213

466 398 CAA 846 799

348 333 GB & Africa 633 600

176 165 Europe & Middle East 336 320

524 499 EMEA 969 920

469 409 South Asia Brands 949 835

6 6 Nourishco & Alliances 11 11

1465 1311 Total Brands 2775 2565

Non Branded Operations

73 54 Plantations 138 110

75 74 Extractions 148 135

148 128 Total Non Branded Operations 286 245

16 14 Other and Eliminations 36 21

1630 1454 TOTAL OPERATING INCOME 3097 2831

Region wise operating incomeRs Crores

13

Rs Crores Sept ’ 11 -12 Sept’ 10-11

Sources of Funds

Shareholders Funds 5602 5047

Loans 1099 1712

Deferred Tax 64 68

Total 6765 6827

Application of Funds

Fixed Assets

Goodwill 3250 3018

Others 787 758

Investments

Long term 543 478

Current 60 51

Cash and Other Deposits 1596 2148

Net Operating Working Capital 571 451

Pension & Other Liabilities (41) (83)

Total 6765 6821

Net Debt Position +557 +487

Balance Sheet

14

Thank You

15

Hyper-Link

16

1.50

1.55

1.60

1.65

1.70

27.00

32.00

37.00

42.00

47.00

GBP INR RUB

Currency Movements

Source : Reuters

Return

GB

P/U

SD

US

D/I

NR

vs

US

D/R

UB

17

Commodity Cost Trends - Tea

Average Kolkata Price 07-11

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Sale

2009 2010 2011

18

Commodity Cost Trends - Tea

Return

Mombasa Average Price (2007-2011)

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1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49Auction No.

Price

(US$/

Kg)

2009 2010 2011

19

Commodity Costs Trends - Coffee

Return

ICE ‘C’Daily QKCc2 4/1/2010 - 9/30/2011 (NYC)

BarOHLC, QKCc2, Last Trade10/7/2011, 238.95, 239.15, 227.25, 228.75

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