Analyst Meet 13th February 2013

Disclaimer
This presentation may contain statements which reflect Managements current views and estimates and could be construed as forward looking statements. The future involves risks and uncertainties that could cause actual results to differ materially from the current views being expressed. Potential risks and uncertainties include factors such as general economic conditions, commodities and currency fluctuations, competitive product and pricing pressures, industrial relations and regulatory developments.

Quick Recap
Branded food growing faster than overall food and non-food

Food is a USD 240 billion opportunity

Bakery, other than biscuits, is a growth opportunity for Britannia

Growth driven by rising income, quality consciousness and convenience seeking

Dairy branded but generic, growing fast and providing scope for differentiation

Biscuit is the largest category in branded foods ( ~ USD 2.2 billion)

Business Performance
1,500 1,400 1,300 4.5% 1,200

NSV

Profit from operations

6.0% 5.5% 5.0%

Rs. Crs

4.0%
1,100 1,000 Q1 11-12 Q2 11-12 Q3 11-12 Q4 11-12 Q1 12-13 Q2 12-13 Q3 12-13 3.5% 3.0%

NSV (% Gr over PY) A & SP (% to NSV)

21.4% 7.5%

18.2% 7.8%

15.6% 7.0%

16.8% 8.4%

10.8% 8.1%

8.7% 8.4%

16.8% 8.4%
4

% NSV

YTD December 12 Performance

Nine Months ended Dec 12 12.1% 9.2% Q1 10.8% 3.9%

Stand Alone Growth Sales PAT Consolidated

FY 12-13 Q2 8.7% 20.5% Q3 16.8% 5.3%

Growth
Sales PAT 12.6% 21.0% 11.9% 18.4% 9.5% 36.4% 16.4% 11.0%
5

Our Business other than Domestic Biscuit is Significant and Growing

~ Rs 15,000 MM*

Dairy

Cake

Bread

Rusk

International

* Annualized
6

Two Significant and Discontinuous Changes in Q3

Implementation of Legal Metrology Rules

Unexpected and steep jump in commodity prices

Applies to Packs below Biscuits, certain price Bread, Rusk points and Some exempted Pack sizes Dairy from are Products standardized standards
7

Sudden And Unexpected Increase In Flour & Sugar Prices

Flour Market Price
(2010-11=100)

Sugar Market Price

125 (2010-11=100) 126 125

117 108 100 95 93

100

103

2010- 2011- Q1 Q2 Q3 11 12 12-13 12-13 12-13

Market Prices

2010- 2011- Q1 Q2 Q3 11 12 12-13 12-13 12-13

8

While moderate inflation in other key commodities was not adequate to off-set
2010-11 2011-12 Q1 12-13 Q2 12-13 Q3 12-13

(Index 2010-11 = 100)

141 133 134

128
118 111

127 122 113 97 115 115 114 102 98

128

100

100

100

100

RPO
Market Prices

SMP

Butter

Mfg Fuel
9

3 Key Areas Drive Business Operations

Newness & Innovation
New delightful offerings Higher value realization

Operational Excellence Restructuring Cost Base

Comprehensive projects from design to delivery

Revenue Management
Differentiated brands Differential Pricing

Continuous improvement in operations

Significant New Initiatives Strengthening The Tiger Proposition

11

Significant New Initiatives Celebrating 25 Years Of Good Day With Consumers

12

Key Brands On Strong Growth Trajectory

Marie Gold Sales (Apr-11 = 100)
143

Milk Bikis Sales (Apr-11 = 100)

156

100

100

Dec-11

Aug-11

Feb-12

Apr-11

Jun-11

Oct-11

Apr-12

Jun-12

Aug-12

Source: Nielsen 13

Oct-12

Key Brands On Growth Trajectory

BIL NutriChoice Sales (Apr-11 = 100) BIL 50-50 Sales (Apr-11 = 100)

224

124

100

100

Aug-12

Aug-11

Aug-11

Aug-12

Dec-11

Feb-12

Dec-11

Feb-12

Apr-11

Jun-11

Oct-11

Apr-12

Jun-12

Oct-12

Apr-11

Jun-11

Oct-11

Apr-12

Jun-12

Source: Nielsen 14

Oct-12

. Backed by Consistent Brand Investment

A&SP
(% of NSV)

8.4 7.0

8.1

8.4

8.4

Q3 11-12

Q4 11-12

Q1 12-13

Q2 12-13

Q3 12-13

15

..And Incremental Investment in the Back-end

Orissa Bihar

New Greenfield Factory coming up in Jhagadia - Gujarat

16

Managing Cost Structured Effectiveness & Efficiency Initiatives

Projects from Design to Delivery

Greenfield Projects

Continuous Improvement TQM, TPM, Kaizen

Technology Initiatives

17

Consolidating Innovation

18

Consolidating Innovation
Innovation Sales Index (2010-11=100)
244

146 100

2010-11

2011-12

2012-13
19

Awards & Recognition

20

Awards & Recognition

Golden Peacock Quality Award Asia-Pacific Quality Award

21

To Summarize
We operate in a large and competitive market

Brands are our business. And we continue to invest both in the front-end and back-end to strengthen them

Despite discontinuity in commodity and regulatory environment we have restored growth momentum and improved margins

Our focus is on 3 areas to drive operational excellence Innovation, Revenue Management and Cost Management

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invrl@britindia.com