Tata Tea Group

1
Tata Tea Group Press Meet
June 30, 2006
2
Group Highlights

• Strong operating performance across the Group
• 7 value increase in brand sales across the
  globe
• Improved operating margins
• Market share improvement in key international
  markets
• Favourable impact of plantation reconstruct
• Consolidated Results improve
• Income - Rs 806 crores, up by 12
• PBT before exceptional items - Rs 117.50 crores -
  up 21

3
Tata Tea Ltd - Standalone

• Income from operations is higher by 7.5
  reflecting higher branded sales, improved auction
  realizations and higher exports. Branded sales
  volume growth of 4 and Value growth of 6
• Operating Margin (EBITDA) Higher by 18.2 at
  21.9 versus 18.5 in the previous year driven by
  
• higher brand volumes and plantation reconstruct
• Exceptional Items A charge of Rs 2.20 crores in
  the first quarter vis-a-vis a net income of Rs
  8.94 crores in the same period of the previous
  year (representing sale of estates to KDHP in
  South India net of ESS amortization)
• Profits Taxation
• PBT before exceptional items improves by 37 from
  Rs 43.31 crores to Rs 59.41 crores
• Exceptional items are lower by Rs 11 crores (as
  explained above)
• PBT Increase by 9 from Rs 52.25 crores to
  Rs 57.21 crores
• PAT - Increase by 3 from Rs 43.41 crores to Rs
  44.56 crores

4
Tata Tea Ltd- stand alone 13 quarters of
continuous Operating Profit GrowthQuarter on
Quarter
48.18
5
Domestic Brands

• The branded portfolio started the year on a
  promising note, clocking volumes growth of 4 and
  6 value growth compared to Q1 of PY.
• The Tata Tea portfolio was ahead of previous year
  by 4 assisted by robust performance by Tata Tea
  Premium and Tata Tea Gold
• Among the regional brands Chakra and Kanan Devan
  were ahead of PY by 7
• Gemini was marginally behind the PY but the
  shortfall is expected to be made up in the
  following quarters
• Tetley Tea bag sales continue to grow

6
Plantations Restructuring

• North India
• Considerable progress has been made on the
  alternate cropping activities at two estates
  which includes fisheries and experimental crops
  both on floriculture and vegetables
• Restructuring exercise for migrating to a stand
  alone entity has also made considerable progress
  in the last few months.
• South India
• Unique solution for Periakanal and Pullivasal
  under address

7
Group Financial Performance Overview

• Turnover Higher by 12 due to increased brand
  volumes in Tata Tea Ltd In The Tetley Group,
  growth was achieved in most key markets. The
  additional sales on account of Good Earth and
  Jemca have contributed significantly to the top
  line Increased instant coffee exports in Tata
  Coffee
• Operating Margin (EBITDA) Higher by 5 at 20.5
  versus 19.6 in the previous year
• Exceptional Items A charge of Rs 1.81 crores in
  the first quarter vis-a-vis a net income of Rs
  23.88 crores in the same period of the previous
  year
• Profits
• PBT before exceptional items increase by 21
  from Rs 97.03 crores to Rs 117.50 crores
• Lower exceptional income as explained above
• Resultant PBT at Rs 115.69 crores as compared to
  Rs 120.91 crores in the same period PY
• PAT at Rs 80.07 crores compared to PY figure of
  Rs 86.38 crores

8
Impact of Lower Exceptional Incomescompared to
the PY First Quarter
9
Branded Tea Market Shares
10
Thank You