ITC Limited

e of Indias Most Admired and Valuable Compani

1
le

f Indias most Admired and Valuable companies

ket Capitalisation: ~Rs. 3 lakh crores

8 billion enterprise by Revenue

7% of Net Revenue from non-Cigarette segments

ng Fast Moving Consumer Goods (FMCG) marketer in India

ablished several world-class brands in the last 10 years

ar Value Addition ~ Rs. 2.5 lakh crores (US$ 47 billion). Contribution to Ex

ents 75% of Value Addition (FY16)
ong the top tax payers in the country

its Group Companies employ over 32,000 people directly; Sustainable deve
and value chains have supported creation of ~6 million sustainable livelih

bal exemplar in sustainable business practices

2
ental Value Addition in FY16 accrued entirely to the Exchequer

Value-Added by ITC ITC's Contribution to Exchequer

73% 73% 75%

8.3%
Exchequer share of Value-Added
11.6%

7.7%
7.3%

35255 37972 41135 25669 27546 30750

13-14 Value-Added
14-15 Y-o-Y Growth
15-16
% 13-14 14-15 15-16 %
Contribution to Exchequer Y-o-Y Growth

8.3% growth in Value Addition in FY16 Vs. 11.6% growth in Contribution to Excheq

ncremental Value Addition in FY16 accrued entirely to the Exchequer

Share of Contribution to Exchequer in Value Addition up from 73% to 75% in FY1

3
C Performance Track Record

Rs.cr.
20-
yrCagr
1995- 2015-
95-
96 16
96to15-
16
GrossRevenue 5,115 51,582
12.2%
NetRevenue 2,536 36,475
14.3%
PBT 452 14,958
19.1%
PAT 261 9,845
19.9%
CapitalEmployed 1,886 34,820
15.7%
ROCE% 28.4 43.1
MarketCapitalisation 5,571 2,63,98
21.3%
TotalShareholderRetur 9
23.3%
ns%
Market Cap and TSR based on FY-end prices for FY96 and FY16

Sensex (CAGR 95-96 to 15-16) : 10.6%

4
 ITCs ranking
Amongst all listed private sector cos.

PBT: No. 5

PAT: No. 6

Market Capitalisation: No. 4

ed on PublishedResults for H1FY17, Market Capitalisation basedon 31st Dec 2016

5
wards & Accolades (1)

C ranked as the most admired company in India in 2014 (Fortune-Hay

vey)

ne of the foremost in the private sector in terms of :

Sustained value creation

Operating profits

Cash Profits

C ranked 3rd amongst leading corporates in India in terms of Corp

putation (Nielsen Corporate Image Monitor 2014-15)

C ranked most active in CSR for the third year in a row (Nielsen Corpo
ge Monitor 2014-15)

6
wards & Accolades (2)

Chairman Y C Deveshwar
was conferred the Padma
arvard Business Review ranked ITC Bhushan by the
airman Y C Deveshwar as the 7th Government of India
hairman Y C Deveshwar
st Performing CEO in theconferred
World. (2011).
he Indian Visionary - Business
der Award by The Economic
es, for being the countrys most
onary corporate leader.
ITC conferred
the prestigious
World
Business and
Development
Award 2012
at the Rio+20
irman Y C Deveshwar conferred the Management UN Summit for
n of the Year Award by the Bombay Management its Social and
ociation (BMA) in recognition of his contribution Farm Forestry
entrepreneurship, the management movement Initiatives.
Indian Industry.
7
wards & Accolades (3)

Businessworld AIM Asian CSR

Rainforest
Alliance FICCI CSR Awardby the
awarded ITC's awardin Large Asian Forumon
Bhadrachalam Enterprise
Corporate
Unit, the Forest category
Stewardship Social
Council Responsibility
Forest
Management
certification

ITC
Hotels
awarded the
Most Trusted
Hotel brand
in the Public
Choice
Honours
category at
the
Times
Travel 8
jor Awards & Accolades in 2016/17

ITC Limited was recognised and felicitated as the

Corporate Trailblazer at the India Today
Safaigiri Awards held on October 2, 2016. ITC
was the only Corporate to have been presented
the Safaigiri Award by India Today.

Resturants in the World

by Conde Nast Traveler.

Bukhara at ITC Maurya Rated Among 'Best

ITC Grand Bharat was ranked Best in Asia for the

second year in a row in the coveted Cond Nast
Traveller U.S. Readers Choice Awards.
9
or Awards & Accolades in 2015/16 (1)

Vivel has broken into the Top 100 Mo

unfeast' and 'Vivel' voted as the 'Buzziest
ands' in the Foods and Personal Care Trusted Brands in India across categories in
survey
tegories, respectively by Afaqs one of the conducted by Economic Times Bra
orld's largest marketing and advertisingEquity & Nielsen. Additionally, Vivel wa
ortals conferred the Most Preferred Consum
Brand award in the North-East

Wills Lifestyleconferred
Superbrand status by the
Superbrands Council of India
'Classmate' ranked as Indias No. 1 Notebo
brand in a survey conducted by IMRB
February 2015

John Players ranked 4th Most

Exciting Brand in the Apparel
or Awards & Accolades in 2015/16 (2)

ITC Hotels was recognised as the Most Respected Company

the hospitality segment in a survey conducted by Busine
World. ITC Hotels was also adjudged the Best Hotel Group
Travel + Leisure, India & South Asia Awards 2015.

ITC Grand Bharat was ranked Best in Asia and 4th in

world in the coveted Cond Nast Traveller U.S. Readers Ch
Awards 2015.
The hotel also received the Outlook Traveller Award for
Indian Hotel Debut of the year
ITC Maurya was adjudged the Best Business Hotel in Indi
the Lonely Planet Awards 2015

11
jor Awards & Accolades 2015/16 (3)

TC's Karnataka Green Leaf The Bhadrachalam and Kovai ITC's Packaging & Printing
Threshing Plant won the units received the ExcellentBusiness won 1 'World Star
Prashamsa Energy Efficient Unit 2015
Suraksha Awards' from the World
Puraskara awarded awards
by and GreenCo Packaging Organisation, 2 'Asia
National Safety Platinum Certifications from
Council, Star Awards' from the Asian
Karnataka Chapter. Confederation
The of Packaging
Indian Federation for
Chirala GLT received the Industry, Green excellence
Business in packaging
Utthama YajamanyaCentre (CII GBC). The Kovai solutions. The Tiruvottiyur
Puraskaram from the Labourunit received Shreshthaunit received the CII Excellent
Department, Government of Suraksha Puraskar Energy Efficient Unit award
from
Andhra Pradesh. National Safety Council of while the Haridwar unit
India (NSCI). received the National Safety
Council Award and CII North
Zone Award for 5S Excellence
12
TCs Vision Statement

13
s Vision

Make a significant and growing contribution towards :

mitigating societal challenges

enhancing shareholder rewards

creating multiple drivers of growth while sustaining leadership in

tobacco, and

14
Corporate Strategies

us on the chosen business portfolio

MCG; Hotels; Paperboards, Paper & Packaging; Agri Business; Information

chnology

nd diverse core competencies residing in various Businesses to en

competitive power of the portfolio

sition each business to attain leadership on the strength of world-

dards in quality and costs

15
rategy of Organisation

3-Tiered Governance Structure

16
Cs Business Portfolio
FMCG
Cigarettes Foods Personal Care Lifestyle Retailing

Education & StationerySafety Matches & Incense Sticks

Paperboards, Paper Information

Hotels Agri Business
& Packaging Technology

17
Cs Cigarettes Business

Market leadership

Leadership across all segments - geographic & price

State-of-the-art technology and world-class products

18
rette Industry in India

gal cigarettes account for only ~11% of tobacco consumed in India du

itive taxation and discriminating regulatory regime

dia is the 4th Largest Illegal cigarette Market in the World; resulti

enue loss of over 9000 cr. p.a. to the National Exchequer

% of adult Indian males consume tobacco. Only 10% of adult Indian ma

19
garettes contribute 87% of Tax Revenue, despite constituting
% of Tobacco consumption

Consumption Share Tax Revenue Share

last 4 years, Excise Duty has increased by 118% and VAT by 142% on a per un
Over the
evel cumulatively

ased on 2015-16 data

20
 ng differential in Excise Duty rates between Cigarettes and
Tobacco Products

Cigarettes
Other Tobacco Products 2773
Excise Duty Per kg of Tobacco Used (Rs.)

953

33
Source: Tobacco Institute of India 52

2005/06
On a per kg basis, the differential in Excise Duty rates between cigarettes and o
obacco products has widened from 29 times in 2005/06 to over 53 tim
2014/15
currently

21
rettes are least affordable in India

ource : WHO Report on the Global Tobacco Epidemic, 2015-Raising Taxes on Tobacco

Cigarette taxes in India are 14 times higher than USA, 9 times higher than Japan, 7 times hig
than China, 5 times higher than Australia and 3 times higher than Malaysia and Pakistan.

22
apita Consumption of Tobacco in India (gms per year)

Source:World Cigarettes ERC Statistics, Tob Board & Industry Estimates gms/Yr

Per Capita consumption is ~60% of World Average

23
Capita Cigarette Consumption per annum

Source: The Tobacco Atlas - 4thEdition (American Cancer Society), 2012

ndia accounts for 17% of world population, its share of world cigarette consumption is j
24
MCG Cigarettes

gal cigarette industry volumes remain under pressure

Continued growth in Illegal industry

direct tax incidence up ~125% over the last 5 years

Steep increase in Excise Duty for the 5th successive year

arings on 85% GHW matter underway at the Karnataka

urt

25
ing world-class brands for Indian Consumers

26
pid scale up of FMCG businesses

Rs. cr.

9038
9731
8122
7012

5545
4482
3642
3014
2511
1704
1013

005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-1

27
al Consumer Spends of over 12000 cr. (FY16)

>3000 cr.

>2500 cr.

>1000 cr.

>500 cr.

28
nded Packaged Foods Portfolio

cuits, Staples, Snacks, Noodles& Pasta, Confectionery, Ready to Eat, Juic

Dairy and Chocolates

29
belle Chocolate
available in exclusive boutiques in select ITC Hotels

Ganache FabelleChocolateBoutiqueat ITC Grand Chola Gianduja

Currently available at ITC

LaunchedITC
in Q1 FY17 ITC Sonar
Gardenia, Maurya,
ITC Grand Chola, ITC Windsor,
ITC Maratha and ITC Grand
Central.
Single Origin Cacaos Fabelle Gift Hamper
ded Packaged Foods: Some recent launches

YiPPee! Power Up Bingo! TedheMedhe

Yumitos Dilli Masala
CandymanJellicious Jelimals
Masala - Atta Noodles Achaari Masti

ITC Master Chef Spices SunfeastFarmliteDigestive AllAashirvaadSugar

Good ReleaseControlA
ted Manufacturing and Logistics facilities An update

ivil works at the Integrated Manufacturing and Logistics facili

rogressing as per schedule

Uluberia facility commissioned in Nov16

Panchla, Kapurthala, Mysuru and Guwahati facilities expected to be

operational shortly.

Project work underway in over 20 locations.

Panchla Guwahati

32
ersonal Care Products

Portfolio approach straddling all consumer segments with 4 umbrella brands in t
Personal Wash segment
Essenza Di Wills
Fiama
Vivel
Superia

Recently acquired Savlon and Shower to Shower trademarks were fully integra
with the existing operations of the Business.

The Engage range of deodorants strengthened its

No. 2 position in this category. New portfolio
Engage
-during Perfume
addition the year Sprays in four variants each
for both men and women.

Laboratoire Naturel A state-of-the-art consumer and product interaction cent
leveraged to launch unique and differentiated products
33
sonal Care: Some recent launches

Fiama Gel Bar Shower to Shower

Savlon Soaps, Handwash& AntisepticLiqu
(Double Moisturiser) Prickly Heat Powder

Vivel Cell Renew Skin & Body Care

Engage Perfume& CologneSpray Superia Naturals
(with Jasmine and Lavender Oil)
34
ucation & Stationery Products Business

everages printing and paper know-how to address suitable opportunit

stationery market

perkraft, Classmate, Classmate Pulse and Saathi brands continue to enhance mar

anding

dustry growth driven by increasing literacy and enhanced scale of govern

public-private initiatives in education

omplementary categories comprising writing instruments, art stationery a

olastic products witnessed robust growth

assmate : Market leader in Notebooks segment

35
ifestyle Retailing

Wills Lifestyle available in over 100

exclusive stores across 50 cities and more

than 350 shop-in-shops in leading retail

chains, departmental stores and multi-

Strongoutlets
brand distribution network in place for the

mid-market brand John Players

availability in 400+ Exclusive Branded
outlets, 600 shop-in-shops in leading
retail chains, departmental stores, multi
branded outlets

36
cense sticks (Agarbattis) & Safety Matches

Mangaldeep continues to be the fastest growing agarbatti brand.

AIM continues to be the largest selling safety matches brand in India.

During the year, launched Mangaldeep App with 7 main features:- Pujas, Devotion

Songs, Panchang, Temple Locator, Mantras, Chant Counter and Editorial

37
Hotels

One of the fastest growing hospitality chains in India

Leader in Profitability

38
otels & Tourism industry

Foreign Tourist Arrivals (FTA) grew by 11.2% in Q3 FY17 14% in Q2 FY 17 V

% in Q1 FY17, 10% in Q4 FY16, 4% in Q3 FY16 and 9% in FY15

FTA into India @ ~7.7 million remains far behind China (~55.6 million)
[Source: UNWTO Tourism Highlights 2015 edition]

Going forward, as economic conditions and infrastructure improve, leisu

tourism and business related travel is also projected to grow faster
o Foreign Tourist Arrivals into India is projected at ~11 million by 2021

Industry: Current Room inventory ~210,000 rooms, of which 52,000 room

re in the Luxury and Upper-Upscale segments

India needs an additional ~60,000 rooms in Luxury and Upscale Segment

he next 5 years to service projected tourist arrivals
39
Hotels Business

e Chain: 99 properties across 71 locations
4 Brands: ITC Hotels, WelcomHotel, Fortune & WelcomHeritage
19 Five-Star Deluxe/ Five-Star Properties with over 4300 rooms
45 Fortune Hotels with over 3600 rooms
35 WelcomHeritage Properties with over 750 rooms

ustry impacted by weak pricing scenario in the backdrop of excessive room inv

ey domestic markets and a sluggish macro-economic environment

ITC Hotels: Kolkata, Hyderabad,

Ahmedabad, Srinagar
jects underway:
My Fortune at 7 cities including
Coimbatore, Bhubaneswar, Guntur

and Amritsar

mpanys first overseas project in Colombo, being undertaken by WelcomHotels
Ltd. (a wholly-owned subsidiary)

Construction activity is progressing as per schedule
otels: Worlds Greenest Luxury Hotel Chain

All ITC Luxury Hotels LEED Platinum certified

Responsible Luxury ethos woven into the Brand Identity

41
erboards & Packaging Business

No. 1 in Size

No. 1 in Profitability

No. 1 in Environmental Performance

42
dian Paperboard market

Annual paperboard demand over 2.6 million tonnes

Low per capita usage of paper at around 9 kgs p.a. (world average
over 58 kgs p.a.)

Indian paperboard market growing at 6% p.a.

Value-added Paperboards - the fastest growing segment (10% p.a

in India driven by :
Increasing demand for branded packaged products
Growth in organised retail
Use of packaging as a key differentiator, especially in the FMCG sect
43
Paperboards, Paper & Packaging businesses

ket leader in Value-Added Paperboards segment

d-class technology & quality

y integrated Ozone bleached Pulp Mill (3.5 lakh MT) one of its kind in Asia
eting world-class environmental standards

tegic projects underway - Bleached Chemi Thermo Mechanical Pulp mill (+

Value Added Paperboard (+ 1.4 LTPA), Decor (+ 0.2 LTPA)

s packaging SBU - Indias largest converter of Paperboards int

y printed packaging
vides superior packaging solutions to the cigarettes and new FMCG businesses
ding supplier to Indian FMCG industry
y integrated packaging unit at Haridwar operationalised and operating at 44
Agri Business

Leading Agri Business player in India

Pioneer in rural transformation

No. 1 in Leaf Tobacco

45
 dian Leaf Tobacco industry

a the second largest producer of tobacco (World excl. China)

wever, Indias share is only at 9% of world tobacco trade

af exports dropped to a four-year low of ~210 million Kgs.

Indias largest buyer, processor, consumer & exporter of ciga

ccos
largest leaf tobacco exporter in the world

neering cultivation of flavourful Flue-cured and superior Bu

ccos in India

wth in exports in recent years driven by

46
Agri Commodity Business

nctive sourcing capability for ITCs Branded Packaged Foods Busi

entity-preserved superior quality wheat for Aashirvaad atta

gh quality chip stock for Bingo! Yumitos potato wafers

perior quality fruit pulp for B Natural range of juices

m linkages in 17 States covering Wheat, Soya, Potato, Coffee etc.

ue Rural
Customer Relationship
Indias largest Management
Internet-based intervention programme for commo
mers in 35000
Over both domestic and
villages linked international
through around 6100markets
e-Choupals servicing around

million farmers
eraging Information Technology for the transformational e-Choup
tive
47
Cs Agri Commodity Business

e-Choupal: Strategic Thrust

Procurement: cost & quality optimisation

strategic sourcing support to the Branded Packaged Foods Businesses
cost-effective sourcing for exports/domestic external business
Rural retail
23 Choupal Saagars operational

48
C e-Choupal Global Recognition

orld Development Report 2008 published by World Bank

ockholm Challenge Award 2006 in the Economic
velopment category which recognises initiatives that
erage Information Technology to improve living conditions
d foster economic growth in all parts of the world.

st Indian Company and second in the world to win the

velopment Gateway Award 2005 for its trail-blazing e-
oupal initiative.& the HRH Prince of Wales
Commerce & International
usiness forum.
rporate Social Responsibility Award 2004 from The Energy
d Resources Institute (TERI) .
arvard University case study

orld Business
pplauded Award
by the then 2004: International
President Chamber
of India Dr of
APJ Abdul
alam in his special address during the national symposium
commemorate 60th year of Independence.

49
- Key Financials Q3 2016/17 (Ind AS)

Rs. cr.
Q3CY Q3LY GOLY

RevenuefromOpera
13,471 12,888 4.5%
tions
3,546 3,475 2.1%
PBDIT
3,954 3,846 2.8%
PBT
2,647 2,504 5.7%
PAT

OtherComprehensi
ve
(162) 283 -
Income(netoftax)
2,485 2,787 -10.8%
TotalComprehensiv
eIncome

50
gment Revenue Q3 2016/17 (Ind AS)
Q2 Q3
Rs. Cr.
2016- 2016- 2015- Goly
17 17 16 (%)
8528 SegmentRevenue(Gross) 8288 8106 2.2
2672 a)FMCG-Cigarettes 2569 2485 3.4
-Others
11200 10857 10591 2.5
TotalFMCG
297 b)Hotels 371 345 7.3
1880 c)AgriBusiness 1672 1481 12.9
1331 d)Paperboards,Paper&Packaging 1336 1338 (0.1)
14709 Total 14235 13755 3.5
Less:Intersegmentrevenue
1218 RevenuefromOperations 765 867 (11.
9)
CG-Others Revenue
13491 growth driven by Atta, Biscuits, Snacks;
13471 Apparel
12888 4.5& Notebooks sal
pacted

ri Business Revenue growth driven by opportunities in imported wheat and leaf tobac
ports

perboards, Paper and Packaging segment impacted by subdued demand a/c slowd
51
 gment Results Q3 2016/17 (Ind AS)
Q2 Q3
Rs. Cr.
2016- 2016- 2015- Goly
17 17 16 (%)
3217 SegmentResults 3034 2984 1.7
(3) a)FMCG-Cigarettes (20) 19 NA
-Others
3214 3014 3003 0.4
TotalFMCG
1 b)Hotels 42 26 63.2
297 c)AgriBusiness 237 235 0.7
232 d)Paperboards,Paper&Packaging 246 241 2.1
3743 Total 3539 3504 1.0
Less:i)FinanceCost
11 ii)Othernetun-allocable 14 16 (15.
(94) expenditure/(income) (429) (357) 5)
ProfitBeforeTax 20.0
3826 3954 3846 2.8
MCG-Others segment profit impacted by disruption in Nov. 16, heavy discounting / early EO
estyle Retailing Business, sharp escalation in input costs and gestation cost of new categorie

tels Business segment profitability improved a/c better Room Realisation and higher F&B

OS Charge included in Unallocable expenditure 52

gment Assets Q3 2016/17 (Ind AS)
Rs. Cr.
Q2 Q3
2016- 2016- 2015- Goly
17 17 16 (%)
SegmentAssets (2.3
7817 7793 7979
a)FMCG-Cigarettes )
6826 6596 5753
-Others 14.7
1464 TotalFMCG 1438 1373 4.8
2 b)Hotels 9 2
c)AgriBusiness
d)Paperboards,Paper&Packaging 4.7
4931 5039 4812
TotalSegmentAssets (4.4
2818 2751 2878
)
6243 6324 5944
Increase in Segment Assets primarily on a/c of Net Fixed Assets: 6.4
2863 2850 2736 4.1
-
Capacity augmentation in FMCG Businesses
4 2 7
-
Ongoing investments in Hotels Business

-
Investment in Bleached Chemi Thermo Mechanical Pulp mill in Paperboards,
Paper & Packaging Business
53
gment Liabilities Q3 2016/17 (Ind AS)
Rs. Cr.
Q2 Q3

2016- 2016- 2015- Goly

17 17 16 (%)
2859 SegmentLiabilities 2999 2898 3.5
1333 a)FMCG-Cigarettes* 1414 1262 12.0
4192 -Others 4413 4161 6.1
TotalFMCG
384 b)Hotels 452 393 15.0
1090 c)AgriBusiness 1001 872 14.9
583 d)Paperboards,Paper&Packaging 616 540 14.0
6249 TotalSegmentLiabilities 6483 5965 8.7

662 *LocalTaxProvisionnotincl. 651 645 0.9

crease in Segment Liabilities primarily a/c trade payables (in line with busine
owth) and statutory liabilities a/c increase in tax rates

54
D Q3 Segment Revenue (Ind AS)

Rs. Cr.
TodateDec
2016- 2015- Goly
17 16 (%)
SegmentRevenue(Gross) 25047 23803 5.2
a)FMCG-Cigarettes 7626 7020 8.6
-Others 32673 30823 6.0
TotalFMCG
b)Hotels 955 923 3.5
c)AgriBusiness 6346 5650 12.3
d)Paperboards,Paper&Packaging 3990 4013 (0.6)
Total 43965 41409 6.2
Less:Intersegmentrevenue 3846 3859 (0.4)
RevenuefromOperations
40119 37550 6.8

55
D Q3 Segment Results (Ind AS)

Rs. Cr.
TodateDec
2016- 2015- Goly(
17 16 %)
SegmentResults 9255 8734 6.0
a)FMCG-Cigarettes (27) (0) -
-Others 9228 8734 5.7
TotalFMCG
b)Hotels 237.
44 13
c)AgriBusiness 6
771 763
d)Paperboards,Paper&Packaging 1.1
726 705
Total 3.0
Less:i)FinanceCost 10768 10214 5.4
ii)Othernetun-allocable 34 37 (6.6)
expenditure/(income) (722) (516) 39.9
ProfitBeforeTax
11456 10693 7.1

56
- Key Financials 2015/16 (Previous GAAP)

2015/16 2014/15
Rs. cr. Goly%

Gross Revenue
51582 49965 3.2

NetRevenue
36475 36083 1.1
PBDIT
16042 15017 6.8
PBIT
15008 14055 6.8
PBT
Overall performance impacted by steep increase
14958 in Excise6.9
13998 Duty/VAT on Cigarette
decline in agri exports, weak demand & pricing scenario in FMCG, Paperboards a
PAT
Hotels
9845 9608 2.5
Excluding Agri-exports Gross Revenue up 6.4% and Net Revenue up 5.5%
57
gment Revenue - 2015/16 (Previous GAAP)
FullYear
Rs. cr.
2015- 2014- Goly(
16 15 %)
SegmentRevenue(Net) 17486 16805 4.1
a)FMCG-Cigarettes 9704 9011 7.7
-Others
27190 25816 5.3
TotalFMCG
b)Hotels 8.4
1286 1187
c)AgriBusiness (11.0
7457 8380
d)Paperboards,Paper&Packaging )
5017 4974
Total 0.9
Less:Intersegmentrevenue 40951 40357 1.5
Netsales/incomefromoperations
4475 4274 4.7
al Cigarette industry volumes under severe pressure
36475 36083 1.1
CG Others: muted growth due to weak demand in rural markets; Noodles, Atta, Agarbatti, Jo
ers, Savlon & Shower to Shower performed well

els: Growth a/c higher occupancy and Food & Beverage revenue

i Business: Revenue impacted mainly a/c lack of trading opportunities in soya, wheat & coff
erboards, Paper & Packaging: impacted a/c slowdown in FMCG industry and volume degr
gment Results - 2015/16 (Previous GAAP)
Rs. cr.
FullYear

2015- 2014- Goly

16 15 (%)
SegmentResults 5.0
11752 11196
a)FMCG-Cigarettes 106.
71 34
-Others 9
TotalFMCG 11823 11230 5.3
b)Hotels
c)AgriBusiness 56 49 13.5
d)Paperboards,Paper&Packaging 934 904 3.3
Total 908 921 (1.5)
Less:i)FinanceCost 13720 13105 4.7
ii)Othernetun-allocableexpenditure/(income)
ProfitBeforeTax 49 57 (14.5
(1288) (950) )
35.5
CG Others profit up 37 cr. driven by Gross Margin expansion. Includes start-up costs of Juices
y & Gums 14958 13998 6.9

els profit includes gestation of new properties (ITC Grand Bharat) and disruption due to heav
s in Chennai during Nov/Dec15.

erboards, Paper & Packaging margin impacted by capacity expansion in the industry and
59
ment Capital Employed - 2015/16 (Previous GAAP)

Rs. cr.
FullYear

2015- 2014- Goly

16 15 (%)
CapitalEmployed 5249 5819 (9.8)
a)FMCG-Cigarettes 4852 3988 21.7
-Others 10101 9806 3.0
TotalFMCG
b)Hotels 4475 4301 4.0
c)AgriBusiness 2359 1959 20.4
d)Paperboards,Paper&Packaging 5520 5426 1.7
TotalSegmentCapitalEmployed 22455 21492 4.5
Increase in Segment Capital Employed primarily on a/c of Net Fixed Assets:
Capacity
- augmentation in FMCG Businesses

Ongoing
- investments in Hotels Business

60
s Economic Contribution to the Nation

10 year Value addition ~ Rs. 2.5 lakh crore (US$ 47 billion)

75% of value addition accrued to the Exchequer (in FY16)

Among the top tax payers in the country

Foreign exchange earnings in the last 10 years: US$ 6.8 bln

Of which agri exports constituted ~57%

61
ial Performance

Direct employment ITC Group : over 32,000

Supported creation of around 6 million sustainable livelihoods

e-Choupal: worlds largest rural digital infrastructure serving more than 4

illion farmers

Social and Farm forestry initiative has greened nearly 225,000 hectares
enerated nearly 101 million person days of employment for rural
ouseholds, including poor tribal and marginal farmers.

Significant thrust on social sector investments under Mission Sunehra K

itiatives 62
 vironmental Performance

Waterpositive
Creating over three
- 14 times
years in athe
rowrainwater harvesting
potential than ITCs net water consumption

arbon
positive enterprise 11 years in a row
Sequestering over twice the amount of CO2 that the
Company emits

waste recycling positive 9 years in a row

47% of total energy consumed is from renewable

s

inability Report 2016 can be accessed on

itcportal.mobi/sustainability/sustainability-
-2016/default.aspx

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rward-looking Statements

atements in this presentation describing the Companys objectives, future prospec

imates, expectations etc. may be forward looking statements within the meanin
f applicable securities laws and regulations. Investors are cautioned that forward
king statements are based on certain assumptions of future events over which th
Company exercises no control. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
formation, future events, or otherwise. Therefore there can be no guarantee as to
heir accuracy. These statements involve a number of risks, uncertainties and othe
actors that could cause actual results to differ materially from those that may be
ojected or implied by these forward looking statements. Such risks and uncertainti
include, but are not limited to: growth, competition, acquisitions, domestic and
nternational economic conditions affecting demand, supply and price conditions in
the various businesses in the Companys portfolio, changes in Government
gulations, tax regimes and other statutes, and the ability to attract and retain high
quality human resource.

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r More Information & Updates

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