Consolidated Financials by mzh44232

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									               Tata Tea Ltd
                               &
         The Tetley Group
Performance for the Quarter
          September, 2004
                   October 29,2004
                      Presenter Panel


P. T. Siganporia (Managing Director – Tata Tea)



K. Pringle (Executive Vice Chairman - The Tetley Group)



L Krishna Kumar (Senior Vice-President Finance & I.T. – Tata Tea)



P. Unsworth (Managing Director, Supply & Support - The Tetley Group)
          Group Highlights for the Quarter


 Strong operating performance across the Group
    Brands perform well across all markets
    Improved Plantation Operations
    Improved operating margins


 Leads to
    Consolidated Turnover of Rs 769 crores - up 9%
    Consolidated PAT of Rs 76 crores - up 55%
    Consolidated EPS of Rs 13.54 – up by 55%
              Outline of Presentation




   Tata Tea Ltd Performance Review (PTS & LKK)
   The Tetley Group Performance Review (KP & PU)
   Tata Tea Consolidated Financials (LKK)
   Way Forward (KP)
   Questions & Answers
              Outline of Presentation




   Tata Tea Performance Review (PTS & LKK)
   The Tetley Group Performance Review (KP & PU)
   Tata Tea Consolidated Financials (LKK)
   Way Forward (KP)
   Questions & Answers
           Tata Tea Ltd



Performance Review – September,2004

           (PTS & LKK)
               Black Tea Scenario



Country     Production (mn/kgs)    Auction Prices (INR/kg)
              January-August              August
             2004        2003        2004            2003

India          493.1       535.4        72.09           54.42

Sri Lanka      204.1       201.8        84.13           71.37

Kenya          207.4       175.1        72.66           68.94

B’Desh          29.8        31.0        51.69           53.14

Malawi          31.7        30.2        48.50           50.24




                                         Source: Carritt Moran
                                      Value Market share


                              35.0

                              30.0

                              25.0

                              20.0

                              15.0

                              10.0

                                5.0

                                0.0
                                       HINDUSTAN                      LOCAL
                                                     TATA TEA
                                         LEVER                      COMPANIES

                    Jul - Sept 2003       30.7          19.7             29.1
                    Oct Dec 2003          28.7          19.3             31.1
                    Jan - Mar 2004        28.6          19.0             32.0
                    Sept'04               29.3          19.7             29.9


                                                   Source : All India, AC Nielsen Retail Audit , April 2004
ALL FIGS are Moving Annual Totals
       Aim: To grow Tata Tea brand value share




                                              10.4
                              8.8
                 7.6




              MAT Mar'03   MAT Mar'04       Sept'04


                                        Value share All India, AC Nielsen Retail Audit
Future Strategy: Innovation & growth of Tata Tea to enhance
                value
        Aim : Increasing the Rate of Innovation




                                                  10%
                              8%

          5%




        2002-03             2003-04            Apr/Sept 04

Future Strategy: New initiatives & projects will fuel growth
   Aim: Innovating growth Tata Tea Gold

Most successful
category innovation in                                         1.5
last decade
                                           1.2

                             0.9

               0.6



    0.1

 Oct'03    Dec'03        March'04    June'04            Sept'04

                                    Value Share All India, AC Nielson Retail Audit


Future Strategy: Multiply innovation led growth
Tata Tea Ltd

 Financials
         Strong Financial Performance – Q2



   Top-line growth of 16%
   Operating Profit up by 49%
   PBT at Rs 69.81 crores up by 57%
   PAT at Rs 53.20 crores up by 52%
   EPS Rs 9.46 per share – up by 52%
                     Operating Profit Growth +49%




           33.69                     Continuous growth in brand
2002                                  volumes

                                     Improvement in Plantation
            35.63
2003                                  Operations

                                     Operating expenditure higher
                    52.93             due to higher sales and
2004                                  increased purchased teas for
                                      own brands

       0 10 20 30 40 50 60 70
                                     Stringent cost controls
           Rs/crores
                  Profit after Tax Growth +52%



                                           Higher Investment
2002     30.78
                                            income


          34.96                            Higher effective tax
2003                                        rate


2004              53.20
         Rs 120.34


  0.00    20.00           40.00   60.00
         Rs/crores
               Treasury Operations




 Term debt reduced by 9% to Rs 179 crores
 Cost of debt declines from 6.3% pa in the
  previous financial year to 5.6% pa
 Net interest cost at same levels despite decline in
  interest income
 Debtors/sales @7%
        QUARTERLY RESULTS – SEPTEMBER,2004

Rs/crores            30/9/04   30/09/03   % Variance
Sales                 235        202         16
Operating Costs       174        158         (10)
PBIDT                  61        44          39
Interest               2          2           -
Depreciation           6          6           -
Operating PBT          53        36          47
Investment/Other       17         9          89
Income
PBT                    70        45          56
Tax                    17        10          (70)
PAT                    53        35          51
Earnings Per Share    9.46      6.22         52
      HALF YEARLY RESULTS – SEPTEMBER,2004

Rs/crores            30/9/04   30/09/03   % Variance
Sales                 441        383         15
Operating Costs       344        313         (10)
PBIDT                  97        70          39
Interest               5          5           -
Depreciation           11        11           -
Operating PBT          81        54          50
Investment/Other       19        20          (5)
Income
PBT                   100        74          35
Tax                    24        17          (41)
PAT                    76        57          33
Earnings Per Share   13.46      10.19        32
              Outline of Presentation




   Tata Tea Performance Review (PTS & LKK)
   The Tetley Group Performance Review (KP & PU)
   Tata Tea Consolidated Financials (LKK)
   Way Forward (KP)
   Questions & Answers
         The Tetley Group

Performance Review– September,2004

            (KP & PU)
              Mixed Start to The Year

• Continued improved EBIT and PAT Performance

• Changed promotional mix still affecting net sales
  particularly in GB

• Strong volume market shares in very competitive markets

• Core black tea markets continue to decline (GB –2%,
  Canada regular -2% and US -3%)
              Financial Performance

• Group Sales running 7% behind last year (4% after
  eliminating FX translation losses)

• Operating profit and EBIT up 2%

• PAT at £7.7m up 12%

• Strong net cash position £17.7m (16% higher than last
  year)
                                                 EBIT

                                                   Key issues:
                                                  • 7% reduction in sales partially
                                                  offset by 11% reduction in cost
                                                  of sales
2002         17.6
                                                  • Changed promotional mix
                                                  results in reduced A&P spend
                              18.6
2003                                              • GB advertising increased to
                                                  support launch of Specialty Teas
                                     19.0
                                                  in Canisters
2004
                                                  • Continued focus on overheads
                                                  delivers £1.4m benefit
   16   17               18                 19
                    £m                            • Investment in Developing
                                                  Markets increases- £0.8m
                          Profit Before Tax



                                           Key issues:
                                          • Increased non-recurring
                    5.2
2002
                                          expenditure
2003                      6.9             • Reduced interest charges
                                          (down 5%)

2004                            7.7       • Reduction of £0.8m in tax

       0   2   4           6          8

               £m
                                              Net Cash Flow


                                                       Key issues:
                                                      • Increase in working capital
2002                                    8.7
                                                      • £5.0m increase in stock –
                                                      mainly in preparation for the
2003
                                  6.8                 National GB promotion
                                                      planned for November

2004           3.6



       0   2         4        6         8      10

                         £m
                Market Performance

• GB 9% lower sales and 7% lower EBIT than 2003/04
• US – improved volumes (up 12%) and net sales (up 3%) in
  local currency.
• Canada sales in local currency flat to 2003/04, EBIT 13%
  ahead of last year due to cost of sales and overhead savings
  and some A&P phasing benefits
• Australia – Steady growth in volumes (up 7%) and sales (up
  4%) further augmented by cost of sales and overhead
  savings continue to deliver EBIT at record levels
• International Tea – volumes, net sales and EBIT all still
  ahead of last year
              Outline of Presentation




   Tata Tea Performance Review (PTS & LKK)
   The Tetley Group Performance Review (KP & PU)
   Tata Tea Consolidated Financials (LKK)
   Way Forward (KP)
   Questions & Answers
    Tata Tea Ltd



Consolidated Accounts


      LKK
                    Group Companies

Nature of Holding   Company                   Ownership %
                                              Directly or
                                              through a
                                              subsidiary
Subsidiary          Tata Tea (GB) Ltd,UK         98.58
Companies           Tata Coffee Ltd, India       50.67
                    Tata Tea Inc, USA            100.00
                    Tata Tetley Ltd, India       99.29
Associate           Estate Management
Companies           Services Ltd, Sri Lanka      49.00
                    Rallis India,Ltd             24.52
                                 Profit before Tax     + 26%



                                                    Branded Tea volume
                                                     growth worldwide
                     83
2003


                                                    Exceptional Expense
                                                     items of Rs 8 crores


2004
                          105                       EPS up by 55% at Rs
                                                     13.54 per share

       0   20   40          60    80   100   120



                Rs/crores
                             Tata Tea Ltd
               Consolidated Accounts of the Group – Q2

Rs/crores                                          2004/05      2003/04
Sales                                               756.07       701.01
Investment/Other Income                              12.58         4.13
Operating Costs                                     611.03       571.17
Depreciation                                         19.55        20.06
EBIT                                                138.07       113.91
Interest                                             33.37        31.07
PBT                                                 104.70        82.84
Tax                                                  31.32        26.23
PAT                                                  73.38        56.61
Share of Associate Company P/L                           4.29     (6.22)
Minority Interest                                        1.53      1.34
Adjusted Profit after Tax                            76.14        49.05
Earnings per share(post minority interest) – Rs      13.54         8.72
                            Tata Tea Ltd
            Consolidated Accounts of the Group – Half Year

Rs/crores                                           2004/05   2003/04
Sales                                               1463.06   1380.40
Investment/Other Income                               13.17     14.42
Operating Costs                                     1185.93   1131.35
Depreciation                                          38.44     39.86
EBIT                                                 251.86    223.61
Interest                                              64.55     63.23
PBT                                                  187.31    160.38
Tax                                                   57.90     50.20
PAT                                                  129.41    110.18
Share of Associate Company P/L                         4.29     (6.22)
Minority Interest                                      2.64      3.19
Adjusted Profit after Tax                            131.06    100.77
Earnings per share(post minority interest)-Rs         23.31     17.92
     Improved Half Year Performance

         Consolidated EPS
25


20


15

                                  23.31
10
                      17.92
     13.78
5


0
     2002             2003        2004
                                                                     Rs/share




                                        100.00
                                                           150.00
                                                                       200.00
                                                                                    250.00
                                                                                                300.00
                                                                                                                   350.00
                                                                                                                                  400.00
                                                                                                                                               450.00




                   0.00
                          50.00
 6/30/2001
 9/30/2001
12/31/2001
  03/31/02
 6/30/2002
 9/30/2002
12/31/2002
  03/31/03
 6/30/2003
 9/30/2003
  1/1/2004
 1/16/2004
 2/13/2004




Date
  3/1/2004
 3/31/2004
 4/16/2004
 4/30/2004
 5/31/2004
 6/14/2004
 6/21/2004
                                                                                                                                           Share Price Movement vis-a-vis Sensex




  7/1/2004
 7/24/2004
  8/2/2004
 8/26/2004
                                                                                                                                                                                   Tata Tea Ltd – Share Price Movement




 8/31/2004
10/25/2004
                   0.00
                              1000.00
                                                 2000.00
                                                                    3000.00
                                                                                      4000.00
                                                                                                         5000.00
                                                                                                                            6000.00
                                                                                                                                               7000.00




            Tea
            Tata




                                                                              Pts
   Sensex
              Outline of Presentation




   Tata Tea Performance Review (PTS & LKK)
   The Tetley Group Performance Review (KP & PU)
   Tata Tea Consolidated Financials (LKK)
   Way Forward (KP)
   Questions & Answers
Way Forward

    (KP)
    Turnover Mix-Half Year 2004/05


                               Others
                                2%

             Investment Income
                    1%

                  Spices etc
                      1%
                                                      Bulk Tea
Coffee/Instant Coffee                                   8%
         5%




                                        Branded Tea
                                            83%
          Group Highlights for the Quarter


 Strong operating performance across the Group
    Brands perform well across all markets
    Improved Plantation Operations
    Improved operating margins


 Leads to
    Consolidated Turnover of Rs 769 crores - up 9%
    Consolidated PAT of Rs 76 crores - up 55%
    Consolidated EPS of Rs 13.54 – up by 55%
           Tata Tetley Strategic Focus


• Strengthen our business in existing geographies
• Expansion into new geographies
• New product development and building business
  in
   – Black Tea
   – Fruit and Herbal Infusions
   – Ready to Drink Teas
   – Out of home
• Building operational capability to enable the
  commercial business to achieve growth
• Management Strength
Challenging for leadership in tea

        across the world
Questions & Answers
Thank You

								
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