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ITC Limited Virginia House 37 J. L. Nehru Road Kolkata 700 071, India Tel. : 91 33 2288 9371 Fax : 91 33 2288 4016 / 1256 / 2259 / 2260

20[th] October, 2022

The Manager Listing Department National Stock Exchange of India Ltd. Exchange Plaza, Plot No. C-1, G Block Bandra-Kurla Complex Bandra (East) Mumbai 400 051

The General Manager Dept. of Corporate Services BSE Ltd. P. J. Towers Dalal Street Mumbai 400 001

The Secretary The Calcutta Stock Exchange Ltd. 7, Lyons Range Kolkata 700 001

Dear Sirs,

Unaudited Financial Results – Media Statement and Presentation

Further to our letter dated 20[th] October, 2022 forwarding the Unaudited Financial Results of the Company for the Quarter and Six Months ended 30[th] September, 2022, we now enclose a copy of the Media Statement issued by the Company and a presentation on the Company’s financial performance for the aforesaid period for information of the investors.

Yours faithfully, ITC Limited RAJENDRA Digitally signed by RAJENDRA KUMAR KUMAR SINGHI Date: 2022.10.20 SINGHI 20:13:49 +05'30'

(R. K. Singhi) Executive Vice President & Company Secretary

Encl: as above.

FMCG ⚫ HOTELS ⚫ PAPERBOARDS & PACKAGING ⚫ AGRI-BUSINESS ⚫ INFORMATION TECHNOLOGY Visit us at www.itcportal.com ⚫ Corporate Identity Number : L16005WB1910PLC001985 ⚫ e-mail : [email protected]

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cc: Securities Exchange Commission Division of Corporate Finance Office of International Corporate Finance Mail Stop 3-9 450 Fifth Street Washington DC 20549 U.S.A. cc: Societe de la Bourse de Luxembourg 35A Boulevard Joseph II L-1840 Luxembourg

ITC Limited Virginia House 37 J. L. Nehru Road Kolkata, 700 071, India Tel.: 91 33 2288 9371 Fax: 91 33 2288 4016 / 1256 / 2259 / 2260

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Media Statement

October 20, 2022

Standalone Financial Results for the Quarter ended 30[th] September, 2022

Highlights

Strong performance continues across segments
Gross Revenue and EBITDA up 27.1% on YoY basis
- Gross Revenue (ex- Agri Business) up 6.1% sequentially
Segment PBIT margin (ex-Agri Business) up ~150 bps YoY and ~40 bps sequentially.
Robust performance in FMCG – Others; Segment Revenue up 21.0% YoY, at appx. 1.5x of Q2 FY20
Staples & Convenience Foods and Discretionary/Out of Home categories drive growth
Education & Stationery Products Business continues to witness strong traction
Segment EBITDA margin at 9.5% (-50 bps YoY; +170 bps sequentially) – severe inflationary impact mitigated through multi-pronged interventions.
Stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enable continued volume recovery from illicit trade
Cigarettes Segment Revenue up 23.3% YoY; Segment PBIT up 23.6% YoY
Market standing continues to be reinforced through focused portfolio/market interventions and agile execution.
Hotels Segment Revenue up 81.9% YoY and 25.6% over Q2 FY20
ARR and Occupancy ahead of pre-pandemic levels
Segment EBITDA at 156 cr. (up 138 cr. YoY and 68 cr. over Q2 FY20)
Segment EBITDA margin at 29.0% (Vs. 20.4% in Q2 FY20) driven by higher RevPAR and structural cost interventions.
Robust growth in Agri Business; Segment Revenue up 44.0% YoY driven by wheat, rice and leaf tobacco exports
Leveraged strong customer relationships, robust sourcing network and agile execution
ITCMAARS being scaled up with 460+ FPOs in 9 states with about 180,000 farmer registrations till date.
Paperboards, Paper and Packaging Segment continues to deliver strong performance; Segment Revenue up 25.0% YoY while Segment PBIT up 54.0% YoY; Segment PBIT margin at 27.5%
Strong demand across end-user segments; sustainable products portfolio continues to be scaled up
Nadiad unit in Gujarat commenced operations during the quarter
Integrated business model, Industry 4.0 initiatives and strategic investments in pulp import substitution and proactive capacity augmentation in Value Added Paperboards segment enable margin expansion amidst commodity price escalation.

Economic activity continued to gather momentum during the quarter along with improvement in business and consumer sentiments. However, input prices remained elevated even as some commodities witnessed softening in course of the quarter. Inflationary headwinds continued to weigh on consumption expenditure which was partly offset by early onset of festive season this year in some parts of the country.

Amidst such a challenging operating environment, the Company’s focus on accelerated digital adoption, customer centricity, execution excellence and agility enabled it to continue to deliver strong growth across operating segments during the quarter, both sequentially and on YoY basis. Gross Revenue stood at Rs. 16,971 crores representing a growth of 27.1% YoY while EBITDA at Rs. 5,864 crores also grew by 27.1% YoY. PAT grew by 20.8% YoY to Rs. 4,466 crores. Earnings Per Share for the quarter was Rs. 3.6 (previous year Rs. 3.0).

The anticipated moderation in inflation going forward, normal monsoons in most parts of the country and proactive interventions by the Government and RBI augur well for sustained recovery and a pick-up in consumption expenditure in the second half of the year.

FMCG – OTHERS

The FMCG Businesses continue to deliver strong performance with Segment Revenue growing 21.0% YoY ; Segment Revenue and Segment EBITDA up 49% and 110% respectively over Q2 FY20.
Staples & Convenience Foods recorded robust growth mainly driven by Biscuits, Atta and Noodles
Discretionary/Out of Home categories viz. Snacks, Confectionery, Agarbattis and Fragrances continue to witness strong traction
The ‘Fiama’ and ‘Vivel’ range of Personal Wash products performed well; Hygiene segment was subdued, while remaining significantly ahead of pre-pandemic levels.
Segment EBITDA margin at 9.5% (Q1 FY23: 7.8%; Q2 FY22: 10.0%)

The FMCG Businesses witnessed strong growth across channels and markets (both urban and rural) driven by ramp-up in outlet coverage, enhanced penetration and last mile execution. Sharp escalation in input costs was mitigated through multi-pronged interventions viz. strategic cost management, premiumisation, supply chain agility, judicious pricing actions, fiscal incentives, leveraging digital and optimising channel assortments. Segment EBITDA margins have expanded by 280 bps over Q2 FY20.

The Company remains focused on rapidly scaling up the FMCG businesses anchored on strong growth platforms and a future-ready portfolio powered by purpose-led brands and supported by agile innovation leveraging the robust R&D platforms of ITC Life Sciences and Technology Centre (LSTC). In addition to fortifying their core portfolio, the Businesses continue to address adjacent growth opportunities by leveraging the 25+ powerful mother brands established over the years. Simultaneously, the Businesses continue to make strategic investments in building categories of the future and establishing the Company’s ‘right to win’ by progressively scaling up those nascent categories where beachheads have been created.
The FMCG Businesses continue to create structural competitive advantages and enhance profitability by leveraging world-class distributed infrastructure, multi-channel distribution network, delayered operations, smart buying & value engineering and smart manufacturing anchored on the twin pillars of Digital and Sustainability.
The Company’s deep & wide multi-channel distribution network with growing presence in emerging channels and tailored channel-specific assortments continues to deliver competitive advantage through superior product availability, visibility and freshness.
Market and Outlet coverage at appx. 2.0x and 1.3x of pre-pandemic levels
e-Commerce continues to scale up rapidly leveraging account specific strategies, new product introductions (including e-Commerce first brands) and customised supply chain solutions; availability of products has been further expanded with new trade partners on Quick Commerce and Social Commerce platforms
Modern Trade sales accelerated with resumption of activities, higher store footfalls and joint business planning with key accounts

Product availability and accessibility continues to be augmented by leveraging new routes-tomarket through multiple strategic partnerships covering a range of brands including ‘B Natural’, ‘Sunfeast’, ‘ITC Master Chef’, etc.
The ICML at Medak, Telangana, commissioned in March 2022 is being scaled up rapidly. The ten ICMLs operating in proximity to large demand centres enable delivery of fresher products, reduction in distance to market and higher cost agility. In addition, three co-located automated logistics facilities have been established which together with next generation agile supply chains will enable superior and efficient fulfilment.
Several of these manufacturing facilities represent industry leading gender diversity in the labour force. With every successive ICML coming on-stream, the representation of women has progressively increased and the recent ICMLs at Pudukkottai and Medak have a large majority of women in the on-roll labour force, reflecting the Company’s commitment to foster Diversity and Inclusion.
Cutting-edge digital technologies including Industry 4.0, Advanced Analytics, Big Data and industrial Internet of Things (IoT) continue to be deployed towards strengthening the Company's real time operations and execution platform. Several digitally powered interventions are underway towards enhancing productivity, driving efficiency and reducing costs. These initiatives are anchored on the key pillars of deepening trade & consumer connect, synchronised planning & forecasting, next generation agile supply chain, smart manufacturing & sourcing, and smart demand capture & fulfilment.
‘ITC e-store’ (http://www.itcstore.in), the Company’s exclusive D2C platform, continues to receive excellent consumer response
‘Unnati’, the digitally powered eB2B platform, has been rolled out to over 4.4 lakh retailers facilitating focused and direct engagement with retailers, superior analytics, personalised recommendations of hyperlocal baskets based on consumer purchase insights, and deeper brand engagement.

➢ Branded Packaged Foods Businesses

‘Aashirvaad’ Atta consolidated its leadership position in the branded atta industry and continues to focus on enhancing penetration and premiumisation.
Aashirvaad’s value-added atta range, part of the Business’ growing portfolio of ‘Good For You’ / ‘Free From’ offerings, witnessed robust growth. The ‘Meri Chakki’ atta Direct to Consumer (D2C) initiative, which redefines consumer experiences by providing customisation options, continues to generate interest among target groups. Towards enhancing consumer awareness on nutrition and digestive health, a dedicated content marketing platform ‘Happy Tummy’, created with blogs, expert videos, nutritionist consultations and high fibre recipes continues to witness favourable consumer response.
‘Bingo!’ Snacks witnessed strong consumer traction and grew at a rapid pace driven by ‘Tedhe Medhe’ and ‘Mad Angles’. In addition, several recently launched variants viz. ‘Bingo! Hashtags Cream & Onion’, ‘Bingo! Hashtags Spicy Masala’, ‘Bingo! Street Bites Dahi Chaat Remix’ and ‘Bingo! Street Bites Pani Puri Twist’ continue to witness excellent consumer response.
‘YiPPee!’ Noodles posted robust growth on the back of increased brand outreach and consumer engagements with normalisation of mobility. Innovative media campaigns and focused digital interventions viz. ‘Magic with Plastic’ – a fun and exciting series of art & craft workshops for children to create awareness on how to make useful objects out of waste materials - continued to create buzz around the brand, resulting in sustained traction with consumers.
‘Sunfeast’ Biscuits and Cakes recorded robust growth led by the ‘Dark Fantasy’ range of premium offerings and ‘Mom’s Magic’ range of cookies. The portfolio mix was further enriched with the launch of ‘Sunfeast Mom’s Magic Cashew Fills’ (Centre filled cookies with cashews and molten creme) , ‘Sunfeast Mom’s Magic Golden Edition’ ( Cashew cookies loaded with cashews & butter) and ‘Sunfeast Mom’s Magic Butter Fills’ (Centre filled cookies with molten butter creme) . The

recently launched range of thin potato biscuits, ‘Sunfeast All Rounder’ was augmented with the launch of All Rounder ‘Cream and Herb’ variant.

Dairy & Beverages Business posted strong growth during the quarter, gaining strong consumer traction on the back of best-in-class quality standards, differentiated offerings and superior taste profile. The milk procurement network continues to be strengthened, empowering farmers by providing infrastructure and imparting package of best practices to improve operational efficiency, maintain high quality and ensure identity preservation and traceability. The ‘Aashirvaad Svasti’ brand continues to be enhanced with focus on growing the value-added dairy portfolio. During the quarter, the Business launched ‘Aashirvaad Svasti Organic Cow Ghee’ – made with 100% organic cow milk. The ‘Sunfeast’ range of milk shakes was further expanded with the launch of ‘Sunfeast Kids Dailyshake’. The ‘B Natural’ range of Juices continued to progressively scale up during the quarter, leveraging emerging channels and augmenting new routes-to-market. Consumer engagement was further deepened through the Business’ purpose led brands e.g. ‘B Natural’s #MainBhiKisaan #Farmerette campaign which aims to spark conversations, create awareness about women in agriculture and change the existing belief that farmers are almost exclusively male, in keeping with the Company’s focus of Diversity and Inclusion across all nodes of operations.
➢ ‘Mangaldeep’ Agarbattis and Dhoop witnessed strong growth across product segments. The Agarbatti portfolio continues to provide differentiated offerings to consumers and further strengthened its presence in emerging channels with the launch of channel-specific assortments viz. ‘Chandan 3in1’ and ‘Temple’; the portfolio was also augmented with launch of ‘Deetyaa Luxury Fragrance’ and ‘Mangaldeep 3in1’ variants. The Dhoop portfolio was enhanced with the launch of ‘Dhuno Cups’ and ‘Dry Dhoop Sticks’. ‘Mangaldeep Upaveda’ range of ‘Naturals’ agarbattis, which draw inspiration from ancient scriptures, also garnered increasing consumer traction.
➢ In the Education and Stationery Products Business, ‘ Classmate’ Notebooks further strengthened its leadership position leveraging its flagship campaign ‘Learn with Classmate’. Notebooks sales continued to witness strong traction in the premium portfolio comprising ‘Paperkraft’, ‘Classmate Pulse’ and ‘Classmate Interaktiv’. Creative brand campaigns leveraging Digital were launched to promote ‘Classmate Interaktiv - AR series’ of notebooks and craftbooks in collaboration with Disney India. The Business continues to leverage topical themes viz. Teachers’ Day to deepen consumer engagement.
➢ Within the Personal Care Products Business , the Fragrances category registered strong growth driven by ‘Engage’. ‘Fiama’ and ‘Vivel’ range of personal wash products performed well during the quarter; ‘Nimyle’ also continued to scale up in the Homecare segment leveraging the Naturals proposition of the brand. The ‘Hygiene’ category remained subdued, though significantly ahead of pre-pandemic levels. The Business portfolio continues to be enhanced with innovative launches viz. ‘Vivel VedVidya’ – range of soaps that are inspired by ingredients used in ancient beauty rituals and ‘Fiama Men Deep Clean Gel Bar, with Charcoal & Grapefruit’, which contains charcoal that enables deep cleaning and grapefruit which offers a refreshing feel.

FMCG – CIGARETTES

Segment Revenue and Segment Results up 23.3% and 23.6% YoY respectively

The Business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratising premiumisation across segments and enhancing product availability backed by superior on-ground execution.
The Business also continues to launch several differentiated variants to further strengthen and ensure future-readiness of the product portfolio.
As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, continues to enable volume recovery for the legal cigarette industry from illicit trade, thereby engendering domestic demand for Indian tobaccos, while also mitigating loss of tax revenue to the exchequer. The Company continues to engage with policy makers for a framework of equitable, nondiscriminatory, pragmatic, evidence-based regulations and taxation policies that balance the economic

imperatives of the country and tobacco control objectives, cognising for the unique tobacco consumption pattern in India.

HOTELS

Stellar performance across properties; Segment Revenue at Rs. 536 cr. (up 25.6% over Q2 FY20); Segment EBITDA up 138 cr. YoY and 68 cr. over Q2 FY20.

ARR and Occupancy ahead of pre-pandemic levels driven by Retail (packages), Leisure, Weddings and MICE segments. Domestic business travel continues to witness progressive normalisation; inbound foreign travel has also picked up. Iconic cuisine brands continue to be leveraged to promote dine-ins with limited-period menus, curated for festive occasions featuring global and Indian favourites.
Segment EBITDA margin for the quarter stood at 29.0% (Vs. 20.4% in Q2 FY20); margin expansion driven by higher RevPAR, operating leverage and structural cost interventions.
ITC Narmada – a luxury 291-key hotel in Ahmedabad was launched in August ‘22. The property is architecturally inspired by the traditional stepwells of Gujarat and is a befitting tribute to the rich heritage, grandeur and vibrant culture of the State. It is also the first hotel in Gujarat to receive the LEED® Platinum certification for its sustainability interventions and environmental stewardship.
During the quarter, two new properties were added to the portfolio under the ‘Storii by ITC Hotels’ brand – Storii Shanti Morada in Goa and Storii Amoha Retreat in Dharamshala.
In line with its ‘asset-right’ strategy, the Business has generated a healthy pipeline of management contracts under its brands viz. Welcomhotel, Mementos, Storii and Fortune, which is expected to be a key vector of growth. More properties under these brands are expected to be launched in a phased manner over the next few quarters.
Welcomhotel Bengaluru received the prestigious LEED® Zero Carbon certification by USGBC during the quarter, reaffirming the Company’s commitment to the ethos of ‘Responsible Luxury’. This is the fourth Hotel in the chain to have received this certification.
Digital investments continue to be leveraged towards facilitating guest acquisition, enhancing guest experience, augmenting revenue generation and driving operational efficiency. The recently launched full stack ITC Hotels App with cutting-edge user experience continues to receive good response and enables swift and easy access to Room and F&B Reservations, F&B delivery offers, loyalty benefits besides a host of exclusive offers.

PAPERBOARDS, PAPER & PACKAGING

Paperboards, Paper & Packaging Segment continues to deliver strong performance; Segment Revenue up 25.0% and Segment Results up 54.0% YoY; Segment PBIT margin for Q2 FY23 stands at 27.5%

Segment Revenue growth driven by strong demand across end-user segments and exports.
Value Added Paperboard (VAP) sales grew at a rapid pace aided by higher realisation and strong exports performance
Fine Paper segment witnessed robust performance with pick up in the Publications and Notebooks segments
Strategic investments in capacity expansion in VAP segment, pulp import substitution, costcompetitive fibre chain, decarbonisation of operations, sharper focus on operational efficiency leveraging data analytics and Industry 4.0 enabled scaling up the Business and margin expansion despite escalation in key input prices.
The Packaging and Printing Business witnessed robust growth across Cartons and Flexibles platforms; Nadiad unit in Gujarat commenced operations during the quarter.
Digital and emergent technologies remain deeply embedded in the operations of the Business, and continue to be leveraged towards enhancing operational efficiency, reducing wastages and enabling

cost optimisation across the value chain. The multi-dimensional digital interventions encompass Industrial IoT for Smart Operations, Integrated Data Infra/Platform, AI/ML algorithms for optimisation in the manufacturing process, AI/ML based image analytics and IoT based crop monitoring & advisory.

In line with its strategic focus on developing sustainable paperboards/packaging solutions as a new vector of growth leveraging cutting-edge innovation platforms (LSTC capabilities as well as external collaborations), the Company is actively engaged in developing and promoting suitable paper and paperboard substrates to substitute single-use plastics .
The sustainable products portfolio, comprising recyclable paperboards, ‘FiloPack’ and ‘FiloServe’, and biodegradable paperboards, ‘OmegaBev’ and ‘OmegaBarr’, which are alternatives to plastic coated containers, cups and other deep freeze applications, witnessed robust growth across applications (at appx. 2.5x of last year’s levels)
Similarly, the Packaging Business is pro-actively engaging with end users to scale up adoption of sustainable packaging solutions viz. ‘Bioseal’ (compostable packaging solutions for Quick Service Restaurants, personal care and packaged foods industries), ‘Oxyblock’ (a recyclable coating solution with enhanced barrier properties for packaged foods, edible oils, etc.) and Germ-free coating (solution for microbial free packaging surface addressing the consumer consciousness towards hygiene and safety).

AGRI BUSINESS

Robust growth in Segment Revenue, up 44.0% driven by wheat, rice and leaf tobacco exports.

The Business leveraged the e-Choupal network to provide strategic sourcing support to the Branded Packaged Foods Businesses with sharply aligned procurement strategies in line with category-relevant market dynamics.
ITCMAARS (Metamarket for Advanced Agriculture and Rural Services) – a crop-agnostic ‘phygital’ full stack AgriTech platform is being scaled up with 460+ FPOs in 9 states encompassing about 180,000 farmers (registered till date). This platform provides farmers with AI/ML driven personalised and hyperlocal crop advisories, access to good quality inputs and market linkages as well as allied services like pre-approved loans. It also offers advanced technologies like real-time soil testing, quality assaying and precision farming at the doorstep of farmers.
The Business continues to enhance value capture by steadily growing its value-added portfolio straddling multiple value chains comprising Spices, Coffee, Frozen Marine Products and Processed Fruits etc., leveraging the Company’s deep rural linkages and extensive sourcing expertise.
Construction of the value-added spices manufacturing facility at Guntur is progressing well and is expected to be commissioned shortly. The Business seeks to significantly scale up its presence in food safe export markets leveraging this world-class facility together with its identity-preserved sourcing expertise, custody of supply chain and strong customer relationships
The project for the state-of-the-art facility to manufacture and export Nicotine & Nicotine derivative products being set up by the Company’s wholly owned subsidiary, ITC IndiVision Limited, is making steady progress. The facility is being geared to manufacture purest nicotine derivatives conforming to US and EU pharmacopoeia standards and is expected to be commissioned by the end of the current financial year.

CONTRIBUTION TO SUSTAINABLE DEVELOPMENT

ITC is a global exemplar in ‘Triple Bottom Line’ performance and is the only enterprise in the world of comparable dimensions to have achieved and sustained the three key global indices of environmental sustainability of being ‘water positive’ (for 20 years), ‘carbon positive’ (for 17 years), and ‘solid waste recycling positive’ (for 15 years) . The Company sustained its ‘AA’ rating by MSCI-ESG for the 4th successive year - the highest amongst global tobacco companies. The Company has also been included in the Dow Jones Sustainability Emerging Markets Index - a reflection of being a sustainability leader in the industry and a recognition of its continued commitment to people and planet.

ITC has also been rated at the 'Leadership Level' score of 'A-' for both Climate Change and Water Security (Asia and Global average at ‘B-’ for climate change and ‘B’ for water security) by CDP, a reputed independent global platform for disclosures on environmental impacts.

The Sustainability & Integrated Report 2022 is available on the Company’s corporate website at

- - - - https://www.itcportal.com/sustainability/sustainability integrated report 2022/ITC Sustainability - - Integrated Report 2022.pdf

Please refer link below for performance highlights of the quarter: https://www.itcportal.com/investor/pdf/ITC-Quarterly-Result-Presentation-Q2-FY2023.pdf

The Board of Directors, at its meeting on 20[th] October 2022, approved the financial results for the quarter ended 30[th] September 2022, which are enclosed.

(Nazeeb Arif) Executive Vice President Corporate Communications

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Q2 FY23 Results

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20[th] October, 2022

Forward-Looking Statements

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This presentation contains certain forward-looking statements including those describing the Company’s strategies, strategic direction, objectives, future prospects, estimates etc. Investors are cautioned that “forward looking statements” are based on certain assumptions of future events over which the Company exercises no control. Therefore there can be no as to their and readers are advised not to undue reliance on these guarantee accuracy place any forward looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These statements involve a number of risks, uncertainties and other factors that could cause actual results or positions to differ materially from those that may be projected or implied by these forward looking statements. Such risks and uncertainties include, but are not limited to: growth, competition, acquisitions, domestic and international economic conditions affecting demand, supply and price conditions in the various businesses in the Company’s portfolio, changes in Government regulations, tax regimes and other statutes, and the ability to attract and retain high quality human resource.

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Macro Economic Context

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High Inflation + High Interest rates → Growth Slowdown

Global Macro headwinds

Rising Inflation

US Interest rates : Steepest rise in history

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0 5 10 15 20 25 30 35 40
Months since hiking cycle started Source : Visual Capitalist
pp
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10.0% 10.0%
8.2%
5.4%
4.1%
3.4%
2.8%
0.7%
Euro Area Germany US China
Sep'22 Sep'21
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Source : Statista, Trading Economics

Dollar Index at a 20 year high (DXY)

Lower growth Outlook for 2022 (GDP % y-o-y)

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120
115
110
105
100
95
90
85
80
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3.6 3.8 3.6 3.7
3.2 3.2 3.3
2.5 2.4
World Advanced Economies Emerging Economies
Apr'22 July'22 Oct'22
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Source : IMF WEO, Oct’22

Source : Reuters

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India Persistently high Inflation

CPI, Core CPI (% y-o-y)

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7.8%
7.0% [7.4%]
7.0%
6.7%
6.1%
6.2%
5.9%
6.0%
5.9% [6.0%]
4.3%
CPI Core CPI RBI Upper Limit
4.5%
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Source : MOSPI

FY23 Inflation estimates revised upwards (% y-o-y)

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6.9%
6.7% 6.7% 6.7% 6.7% 6.7%
6.0% 6.1%
5.7%
5.0% 5.1%
4.5%
RBI Citi HDFC
Feb'22 Apr'22 Jun'22 Sep'22
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Downward revision to GDP Estimates

Interest Rates on the rise (%)

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Source : RBI, Fed

FY23 GDP growth estimates revised downwards (% y-o-y)

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8.2%
8.0% 8.0%
7.5% 7.5%
7.4%
6.8% 6.7%
6.5%
IMF World Bank Citi
Apr'22 Jun'22 - Jul'22 Sep'22 - Oct'22
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Source : Analysts Reports

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External headwinds weigh on macro outlook

Trade Deficit; Q1 FY23 CAD highest since Sep’18 ($bn)

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40
19 4.0%
20 3.7% 15
2.4% 0.9% 7 2.0%
0
-1.5% 0.0%
-20 -10 -0.3% -2 -8 -10
-16 -1.0% -1.3% -22 -13 -2.0%
-24
-40 -35 -31 -2.6% -4.0%
-41 -45 -2.8%
-60 -54 -6.0%
-60
-80 -71 -8.0%
-84
-100 Trade Deficit CAD CAD % of GDP -10.0%
Source: MoC and RBI
All major currencies depreciated Vs. USD (Jan – Sep’22)
-20.3% Japanese Yen
-17.7% SEK
-17.2% GBP
-13.2% Euro
-10.7% Chinese Yuan
-8.7% India
-7.8% CAD
-6.9% CHF
Source: Bloomberg
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Net FII flows ($bn)

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7.5
3.1
3.0
0.9 1.0
0.5
-0.3
-1.2 -1.4
-2.1
-3.3-4.2 -4.1-4.5
-5.4-5.2
-6.6
Source: RBI, NSDL
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RBI Forex Reserves ($bn)

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700 [634]
[579] [609] [639] [618] [593] 90
600 507 [542] [581] 533 70
500 31 35 39 30 30 50
30
400
10
300 -10
-2 -5
-16 -30
200 -24
-50
100 QoQ change Forex Reserves
-70
-61
0 -90
Source: RBI
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Bright Spots

Normal monsoon |Stable tax collections| Credit growth pickup

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Stable GST collections (Rs. Lakh crore) Net Direct Tax collections (Rs. Lakh crore)
1.68
1.411.45 1.49 1.44 1.48 1.42
1.40 2.66
1.99
0.98
0.93 1.68 2.08
0.62
FY23 FY22 FY21 YTD Aug'21 YTD Aug'22
0.32
Corp Tax Income Tax
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Source : MoF Source : CGA
Pickup in Banking System Credit growth (% y-o-y)
19.5%
17.8%
16.8% 15.5% 15.4% [16.4%] [16.4%] 16.4% 15.0%
13.6%
12.4%
15.5%
10.2%
12.9% 13.4% [14.0%]
12.3%
9.6%
8.6% 8.3% 8.2%
7.3% 6.8%
5.0%
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Aug'22
Gross Bank Credit Personal Loan
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Rainfall +6% LPA (1 [st] Jun’22 – 30 [th] Sep’22)
Source : IMD
>=60% 20% - 59% (19%) - 19% (59%) - (20%)
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Source : RBI

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India Macro

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Key Positives
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Key Monitorables

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Pickup in economic
activity continues
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High Inflation
Rising interest rates
Capex cycle yet
to pick up
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Capex cycle yet
Tax collections stable
to pick up
Rising Current Account
Pickup in credit growth deficit / Currency
Depreciation
Structural
Interventions by Global Macro Headwinds
Govt./Institutions
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| 8 |

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Q2 FY23 Results Headline Financials & Business Highlights

| 9 |

Key Highlights: Q2 FY23

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Overall Segment PBIT Margin ex – Agri Business 37.3% 150 bps

Gross Revenue

EBITDA +27.1%

+27.1% Strong performance continues across segments PAT +20.8%

EPS +20.3%

| 10 |

For the quarter ended 30[th] Sept, 2022, YoY change

Key Highlights: Q2 FY23

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▪ Strong and broad-based growth in FMCG – Others across markets & channels; Segment Revenue up 21.0% YoY, at appx. 1.5x of Q2 FY20

Staples & Convenience Foods and Discretionary/Out of Home categories drive growth
Education & Stationery Products Business continues to witness strong traction
Segment EBITDA margin at 9.5% (-50 bps YoY; +170 bps QoQ) – severe inflationary impact mitigated through multi-pronged interventions
Stability in taxes on Cigarettes, backed by deterrent actions by enforcement agencies, enable continued volume recovery from illicit trade
Segment Revenue up 23.3% YoY; Segment PBIT up 23.6% YoY

▪ Hotels Segment Revenue up 81.9% YoY and 25.6% over Q2 FY20

ARR and Occupancy ahead of pre-pandemic levels
Segment EBITDA at 156 cr. (up 138 cr. YoY and 68 cr. over Q2 FY20); Segment EBITDA Margin at 29.0%

| 11 |

Key Highlights: Q2 FY23

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▪ Robust growth in Agri Business; Segment Revenue up 44.0% YoY

Wheat, Rice and Leaf Tobacco exports

Paperboards, Paper & Packaging Segment continues to deliver strong performance; Segment Revenue up 25.0% YoY while Segment PBIT up 54.0% YoY; Segment PBIT margins at 27.5%
Strong demand across end-user segments; sustainable products portfolio continues to be scaled up
State-of-the-art Packaging & Printing facility at Nadiad, Gujarat commenced operations during the quarter
Integrated business model, Industry 4.0 initiatives, strategic investments and proactive capacity augmentation enable margin expansion amidst commodity price escalation

| 12 |

Future Ready | Consumer Centric | Agile

ITC Next Strategy

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Innovation and R&D

Multiple Growth Drivers

Cost Optimization

Best fit - market opportunity & Agile & purposeful innovation to win enterprise strengths Science-based research platforms Disruptive models : Digital / embedding Sustainability Sustainability + Institutional Strengths

Structural interventions across value chain

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Sustainability 2.0

Digital

World-Class Talent

‘Proneurial’ spirit

Bolder ambition Future tech enterprise Environmental Capital Digital first culture Inclusive growth Smart Eco System

High Performance, Nimble and Customer-centric Culture

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Diversity & Inclusion

| 13 |

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FMCG Others

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| 14 |

FMCG Others – Q2 FY23

▪ Strong and broad-based growth across markets and channels - Strong growth in Staples & Convenience Foods (Biscuits, Atta, Noodles) and Discretionary/Out-Of-Home categories (Snacks, Beverages, Fragrances, Agarbatti, Frozen Foods)

‘Fiama’ & ‘Vivel’ range of Personal Wash products performed well; Hygiene portfolio subdued but remains significantly above pre-pandemic levels
Education & Stationery Products Business continues to witness strong traction

▪ Growing presence in emerging channels

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Segment Revenue up 21.0% YoY at ~1.5x of Q2 FY20

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OFMCG Segment Revenue Rs. cr.Rs.
5,200
+48.5%
4,700 +21%
4,200
3,700
3,288
3,200
2,700
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23
3,922 4,036 4,885
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Rapid growth in E-Com / Quick Commerce / Modern Trade / Institutional channels

Scaling up D2C

Dynamic 'Future-Tech' enterprise Market Coverage 2x ^ Smart Consumer Smart Trade Direct outlet servicing Smart Supply Chain Smart Employee 1.3x ^ & Mfg. Experience

Operational in 14 cities
- 700+ FMCG products
http://www.itcstore.in - 45+ categories

https://classmateshop.com/ Creative Product personalisations

Supporting startups in the D2C space

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| 15 |

^ of pre-pandemic levels

FMCG Others – Q2 FY23

Segment EBITDA +15% YoY More than doubled over Q2 FY20

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Segment EBITDA Margin at 9.5% (Q2 FY22: 10.0%)
Sequential improvement of 170 bps
Sharp escalation in input costs mitigated through multi-pronged interventions:

Strategic cost management, premiumisation, supply chain agility, judicious pricing actions, fiscal incentives and digital

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r Seg. EBITDAFull Year Seg. EBITDA Seg. EBITDA Margin % Rs. Cr. EBITDA at 2.1x of pre-Covid Rs. cr.
510
6.7% 280 bps margin expansion
1700 9.1% 9.5%
8.9% 10. 0% 460
1500
1300 7.1% 8.0% 410 10.0%
1100 5.5% 360 7.8%
6.0%
9 0 4.0%
310
7 0 4.0%
2.5%
5 0 260
2.0%
3 0 210
0.0%
1 0 265 456 688 914 1317 1449
160
-100 -2.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
FY17 FY18 FY19 FY20 FY21 FY22 FY20 FY20 FY20 FY21 FY21 FY21 FY21 FY22 FY22 FY22 FY22 FY23 FY23
221 394 403 347 463
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| 16 |

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World Class Distributed Infrastructure Scale| Productivity| Costs

Creating Structural Competitive Advantages

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Solar Plant, Dindigul
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ICML Trichy
ICML Medak
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AMLF Kapurthala
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Diversity & Inclusion: Industry leading gender diversity

| 17 |

AMLF: Ancillary Manufacturing cum Logistics Facility

ICML: Integrated Consumer Goods Manufacturing and Logistics Facility

Driving Cost Agility & Productivity

Manufacturing ICMLs Industry 4.0 TPM Lean, Six Sigma

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Smart Buying

AI/ML engines for Smart Buying Import Substitution Localised Sourcing

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Overheads

Zero based budgeting Yield Improvement Digitalisation across nodes

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Remove | Reduce | Re-engineer

Next Generation Agile Supply Chain Network Optimization (AI/ ML Enabled) Direct to Market

ITC One Supply chain Smart Transportation Delayering Operations Smart Last Mile Execution

Marketing Efficiency & ROI Trade Schemes Optimisation Market-mix Modeling Channel Profitability Focused market/product approach

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Input Optimisation

Innovation – Packaging, Raw materials, Recipes / Blends

| 18 |

ICML - Integrated Consumer Goods Manufacturing and Logistics facilities

Addressing Emerging Consumer Need Spaces with Agility

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Aashirvaad Meri Chakki Atta Pick Your Mix

Bingo! Snacks Differentiated Flavors & Textures

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Fiama Charcoal & Grapefruit Nimyle Power Classmate Interaktiv Deep Clean Gel Bar Power of Neem Augmented Reality Notebooks

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Robust innovation pipeline

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Mom’s Magic Centre Filled with Cashews & Molten Butter Creme

Sunfeast Dark Fantasy Premium Filled Cookies

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Mangaldeep 3in1 | Deetyaa Long Lasting | Luxury Fragrance

Mangaldeep Dhuno Cups Authentic Dhunachi Experience

| 19 |

Future-Ready Portfolio

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Aashirvaad Nature’s Super Foods Gluten Free & Multi Millet Mix | Organic

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Farmlite Digestive Goodness of Whole Wheat

Aashirvaad Salt Proactive Better Heart Health

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Roasted Vermicelli No Added Preservatives

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Sunfeast Kids Dailyshake 23 Vitamins and Minerals

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Augmenting ‘Good For You’/ ’Free From’ range

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Aashirvaad Svasti Milk

Aashirvaad Svasti Organic Cow Ghee

Select Milk Easy Digest Milk (Lactose Free)

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Master Chef IncrEDIBLY VegAN

B Natural|Sunfeast Nutrilite Health Range

| 20 |

Building Brands with Purpose

#Farmerettes Supporting Women Farmers

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YiPPee! A Better World

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Creating awareness amongst children about environmental concerns
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Nimyle Eco-Friendly India Mission

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State Level Inter School Quiz Competition

3000+ Schools 6000+ students

Generating awareness and driving consciousness to save the environment

| 21 |

Leveraging Festive Occasions

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Aashirvaad ‘Aamar Maa’ pandal: A Tribute to fearless, strong, compassionate mothers Real life mothers visiting the pandal projected as Maa Durga

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Aashirvaad Svasti Celebrating Sadhya Meal of Onam

Mangaldeep 3in1 Agarbatti

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Aashirvaad associates with Rath Yatra

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Sunfeast Dark Fantasy Ganesh Chaturthi

Sunfeast Marie Raksha Bandhan

| 22 |

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Expanding Reach in Emerging Channels

Winning in Emerging Channels

New Routes to Market Direct Marketing On the Go Strategic Partnership QSR

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Modern Trade
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Fast-tracking E-Com,
D2C, Cash & Carry
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Aashirvaad Svasti
Organic Cow Ghee
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Channel Specific Launches

E-Com | Modern Trade| Strategic Tie-Ups

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Mangaldeep Temple

Sunfeast Kids Dailyshake

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Engage Moderna Range

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Climate Controlled Supply Chain
Dairy | Frozen | Chocolates
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| 23 |

Leveraging Digital to expand reach

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eB2B: UNNATI
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VIRU: Virtual Salesman
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VISTAAR: Rural App
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Project Zen
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Next Generation Agile FMCG Supply Chain

Over 4.4 lakh Outlet penetration

| 24 |

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FMCG Cigarettes

| 25 |

FMCG Cigarettes – Q2 FY23

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▪ Net Segment Revenue* up 23.4% YoY; Segment PBIT up 23.6% YoY

Segment Revenue 6954 cr. 23.3%

▪ Innovation & democratising premiumisation across segments

Portfolio Vitality | Product Accessibility | Execution Excellence

Segment Results 4429 cr. 23.6%

Recent launches continue to gain traction Market standing continues to be reinforced through focused portfolio/market interventions and agile execution Robust growth across regions & markets

Stability in taxes, backed by deterrent actions by enforcement agencies, enable continued volume recovery from illicit trade

| 26 |

* Net of Excise Duty/NCCD on Sales

FMCG Cigarettes

Innovation

Reinforcing market standing

Portfolio Fortification

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Classic Connect
Gold Flake Neo SMART Filter
American Club Clove Mint
Navy Cut Deluxe
Gold Flake Indie Mint
Player’s Gold Leaf Chase
Gold Flake Neo
Gold Flake Star
Capstan Fresh

Recent Introductions

Other Interventions

Classic Verve Balanced Taste • Wills Fab
`
Gold Flake Kings Mixpod
American Club Smash
Wills Protech
Wave Boss

New variants of Flake Excel, Wills Navy Cut Filter, Berkeley Hero in focus markets. 5s Packs - Gold Flake Premium and Capstan Special

Gold Flake Smart Mintz • Flake Nova

| 27 |

Hotels Business

| 28 |

Hotels – Q2 FY23

Stellar performance across properties Segment Revenue up 25.6% over Q2 FY20

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Segment Revenue

536 cr.

(+81.9%; 1.3x of Q2FY20)

ARR and Occupancy ahead of pre-pandemic levels; Retail, Leisure, Weddings and MICE drive growth
▪ Segment EBITDA margin at 29.0% (Vs. 20.4% in Q2 FY20); margin expansion driven by higher RevPAR, operating leverage and structural cost interventions
ITC Narmada , a luxury 291-key hotel in Ahmedabad launched in Aug’22

Segment EBITDA

156 cr.

+138 cr. YoY +68 cr. over Q2 FY20

Healthy pipeline of properties under Welcomhotel, Mementos, Storii and Fortune ; phased openings over the next few quarters
-
Welcomhotel Bengaluru received LEED® Zero Carbon Certification 4[th] in the chain

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Economic Times

Sustainable Organisation Award 2022 ITC Grand Central

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Tamil Nadu Tourism Awards 2022

Best Classified Hotel: 5 Star ITC Grand Chola

| 29 |

Responsible Luxury

LEED Platinum Certification - 1[st] in Gujarat

Executing ‘Asset Right’ Strategy

Two launches during the quarter

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Storii Shanti Morada, Goa
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Storii Amoha Retreat, Dharamshala
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Healthy Pipeline of Management Contracts

Phased openings over the next few quarters

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Mementos Udaipur
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Welcomhotel Corbett
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| 31 |

Special Occasions leveraged to drive demand

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| 32 |
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Driving Value through Digitalisation

Brand/Guest Experience

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One stop shop for all guest needs

Room Reservation | Restaurant Booking Takeaway | Loyalty | Room Controls

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CRM
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Analytics & Insight driven personalisation

| 33 |

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Agri Business

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| 34 |

Agri Business – Q2 FY23

Robust Growth in Revenue

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Segment Revenue up 44.0% YoY driven by wheat, rice and leaf tobacco exports

Segment Revenue

3997 cr. 44.0%

Segment Results 345 cr. 16.6%

Strategic sourcing support to Branded Packaged Foods Businesses – Wheat, Dairy and Spices
ITCMAARS * – a crop-agnostic ‘phygital’ full stack AgriTech platform being scaled up with 460+ FPOs in 9 states with about 1.8 lac farmer registrations till date
Strategic focus on rapidly scaling up Value-Added product portfolio to enhance value capture across multiple crop value chains
- World-class manufacturing facility^ at Mysuru for export of Nicotine & Nicotine derivative products to US/EU is making steady progress; expected to be commissioned in Q4 FY23

New Spices facility at Guntur expected to be commissioned shortly

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Multiple Sourcing Multi Modal
Models Transportation
Farmer | Trader | Mandi Railway | Coastal | Road
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| 35 |

Metamarket for Advanced Agriculture and Rural Services

^ Being undertaken by ITC IndiVision Limited, the Company’s wholly owned subsidiary

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ITCMAARS

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Advisory Inputs

460+ FPOs 9 states

~1.8 lac Farmer registrations

Outputs

~1.2 lac App downloads

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Services

50+ Tie-ups with partners

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| 36 |

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Paperboards, Paper & Packaging

| 37 |

Paperboards, Paper & Packaging – Q2 FY23

Growth Momentum Continues

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Paperboards & Specialty Paper

Segment Revenue

Paperboards, Paper & Packaging Segment continues to deliver strong performance
Robust growth in Revenue driven by higher realisation
Strong demand across end-user segments and exports

2288 cr. 25.0%

VAP^ segment sales grew at a rapid pace
Sustainable products portfolio continues to be scaled up

Segment Results

Investments in VAP capacity, pulp import substitution, cost-competitive fibre chain, decarbonisation of operations, data analytics and Industry 4.0 enabled margin expansion despite escalation in key input prices.

630 cr. 54.0%

Packaging and Printing

Robust growth witnessed across Cartons and Flexibles platforms
State-of-the-art facility at Nadiad, Gujarat commissioned during the quarter

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| 38 |

^Value Added Paperboards

Sustainable Packaging Solutions New Growth Vector

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Extrusion Coated Boards
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Laminating
Base
Laminating Base
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Bioseal
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ITC LSTC | External Collaborations

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Bio-based Coated Boards
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Antimicrobial Coating
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Oxyblock
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Anti fungal
Boards
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200
180 >2x
Sustainable Products
160 portfolio
140
120
100
80 x
60
40
20
0
H1 FY22 H1 FY23
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Water, Oil & Grease
Resistant Boards
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Financials

| 40 |

Key Financials Q2 FY23

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YoY
Rs. Cr. Q2 FY23 Q2 FY22
growth
Gross Revenue 16,971 13,356 27.1%
Net Revenue 15,976 12,543 27.4%
EBITDA 5,864 4,615 27.1%
PBT 5,939 4,880 21.7%
PAT 4,466 3,697 20.8%
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Strong performance continues across segments

| 41 |

Standalone basis

Segment Revenue Q2 FY23

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• FMCG Others

FY23 FY22 *YoY* *growth* 6954 5642 *23%* 4885 4036 *21%* 11839 9678 *22%* Q2	FY23 FY22 *YoY* *growth* 6954 5642 *23%* 4885 4036 *21%* 11839 9678 *22%* Q2	FY23 FY22 *YoY* *growth* 6954 5642 *23%* 4885 4036 *21%* 11839 9678 *22%* Q2

6954
4885
11839
536	295 2776 1830	*82%* *44%* *25%*
3997
2288
18659	14579	*28%*
1688	1223	*38%*
16971	13356	*27%*

• Paperboards, Paper & Packaging

Strong demand across end-user segments

| 42 |

Segment Results Q2 FY23

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	Q2	Q2	Q2
*Rs. cr.*	FY23	FY22	*YoY* *growth*
Segment Results a) FMCG - Cigarettes - Others Total FMCG b) Hotels c) Agri Business d) Paperboards, Paper & Packaging Total Less : i) Finance Cost ii) Other un-allocable (income) net of un-allocable expenditure Profit Before Exceptional Items & Tax		3583 272	*24%* *18%*
	4429
	321
	4750	3855	*23%*
	84	-48 296 409	*17%* *54%*
	345
	630
	5809	4512	*29%*
	11	10 -378
	-140
	5939	4880	*22%*

| 43 |

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ITC – A Global Exemplar in Sustainability

| 44 |

Impactful Social Performance

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ITC e-Choupal Afforestation Watershed Development
4 Million Farmers Over 10,00,000 acres Over 1.37 million acres
empowered greened covered
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Primary Education
Reaching over
8.9 lacs Children
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Skilling & Vocational
Training
Covering over 1.13 lacs youth
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Women Empowerment over 1.05 lacs poor women benefitted

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Livestock Development
Over 20,73,000 milch
animals covered
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Health & Sanitation Over 39,400 toilets built

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Solid Waste Management Well-being Out of Waste programme has covered ~20 million citizens

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Pioneer of Green Building movement in India 40 platinum rated green buildings

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Sustainability 2.0

REDUCE I RECYCLE I RESTORE

Sustainability Targets 2030 Raising the Bar

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Strategic Interventions to Combat Climate Change

De-Carbonization Climate Adaptation and Resilience Building Green Circularity Infrastructure Nature based solutions Inclusive Value Chains

Renewable Specific GHG Recyclable Plastic Plastic Energy Emissions Packaging Neutrality 100% 50% 50% 100% Collection in FY22 Water Security for All Biodiversity & Agriculture million 5x of ITC’s Net 1 Biodiversity acres Conservation Consumption million Climate Smart 3 acres Village AWS Certification for High Water Stressed Sites 1.5 million Social Farm and by 2035 acres Forestry

Proactively work towards achieving ‘Net Zero’ emission status

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Supporting Sustainable Livelihoods: From 6 million to 10 million
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Sustainability – Highlights

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All Businesses aligned with 2030 targets
Comprehensive set of policies & guidelines institutionalised
Exceeded commitment on Plastic Neutrality ; collected and sustainably managed over 54000 MT of plastic waste in FY22 across 35 states/UT
The only enterprise in the world of comparable dimensions to have achieved and sustained the three key global indices of environmental sustainability of being ‘water positive’ (for 20 years) , ‘carbon positive’ (for 17 years) , and ‘solid waste recycling positive’ (for 15 years) .
Achieved A- Leadership score under CDP ratings ahead of Asia & Global average in Climate change (B-) & Water Security (B)
Sustained AA rating by MSCI for the 4[th] consecutive year - highest among global tobacco players

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Included in the Dow Jones Sustainability Emerging Markets Index a reflection of being a sustainability leader in the industry

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ITC Infotech

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ITC Infotech

Revenue (Rs.cr.) EBITDA (Rs.cr.)

3 Yr Cagr: Revenue: 12.4% 12 50

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10 50 2853
2 0 0
85 0
717
1500 2454
65 0 618
2249
1 0 0
45 0
2007 291
5 0
25 0 161
0 50
FY19 FY20 FY21 FY22
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Revenue (Rs. cr.) EBITDA (Rs. cr.)
840 250
820
2 0
8 0
150
780
760
1 0
740
50
720 749 821 211 135
7 0 0
Q2 Q2 Q2 Q2
FY22 FY23 FY22 FY23
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Q2 FY23 includes the impact of :

Certain costs associated with Strategic Partner Agreement signed with PTC Inc.
Higher employee costs and overheads in line with industry trends

Investments continue to be made towards capability building in strategic focus areas & infrastructure

Q2 FY23 comparable EBITDA margin @ upper-end of mid-tier IT cos.

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ITC: Enduring Value

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A passion for Profitable growth...

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in a way that is Sustainable…

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and Inclusive.

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Links

Product/initiative	Link
Bingo! on Instagram	https://www.instagram.com/bingo_snacks/
YiPPee! on Instagram	https://www.instagram.com/sunfeast_yippee/
Aashirvaad on Instagram	https://www.instagram.com/aashirvaad/
Sunfeast Dark Fantasy on Instagram	https://www.instagram.com/sunfeastdarkfantasy/
Mom’s Magic on Instagram	https://instagram.com/sfmomsmagic/
Classmate on Instagram	https://instagram.com/classmatebyitc/
Creating a Future Ready ITC	https://youtu.be/u_Gn_WNmGLs
ITC Spearheading Water Stewardship	https://youtu.be/kHgOXrqbyNw
ITC Celebrating ‘Azadi ka Amrit Mahotsav’	https://youtu.be/4jMtvbESPBs
Details on the Company’s Sustainability 2.0 vision	https://www.itcportal.com/sustainability/sustainability-integrated-report- 2022/ITC-Sustainability-Integrated-Report-2022.pdf
Quarterly Media Statement	https://www.itcportal.com/investor/pdf/ITC-Press-Release-Q2-FY2023.pdf

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AI assistant

ITC Ltd — Interim / Quarterly Report 2023

60425_rns_2022-10-20_007c065b-d307-40df-a2e2-43bd95a3c82f.pdf

20[th] October, 2022

Unaudited Financial Results – Media Statement and Presentation

Media Statement

October 20, 2022

Standalone Financial Results for the Quarter ended 30[th] September, 2022

Highlights

FMCG – OTHERS

➢ Branded Packaged Foods Businesses

FMCG – CIGARETTES

Segment Revenue and Segment Results up 23.3% and 23.6% YoY respectively

HOTELS

Stellar performance across properties; Segment Revenue at Rs. 536 cr. (up 25.6% over Q2 FY20); Segment EBITDA up 138 cr. YoY and 68 cr. over Q2 FY20.

PAPERBOARDS, PAPER & PACKAGING

AGRI BUSINESS

CONTRIBUTION TO SUSTAINABLE DEVELOPMENT

Q2 FY23 Results

Macro Economic Context

High Inflation + High Interest rates → Growth Slowdown

Global Macro headwinds

Rising Inflation

US Interest rates : Steepest rise in history

India Persistently high Inflation

CPI, Core CPI (% y-o-y)

FY23 Inflation estimates revised upwards (% y-o-y)

Downward revision to GDP Estimates

Interest Rates on the rise (%)

External headwinds weigh on macro outlook

Trade Deficit; Q1 FY23 CAD highest since Sep’18 ($bn)

Net FII flows ($bn)

RBI Forex Reserves ($bn)

Bright Spots

Normal monsoon |Stable tax collections| Credit growth pickup

India Macro

Key Monitorables

Q2 FY23 Results Headline Financials & Business Highlights

Key Highlights: Q2 FY23

Gross Revenue

Key Highlights: Q2 FY23

▪ Strong and broad-based growth in FMCG – Others across markets & channels; Segment Revenue up 21.0% YoY, at appx. 1.5x of Q2 FY20

▪ Hotels Segment Revenue up 81.9% YoY and 25.6% over Q2 FY20

Key Highlights: Q2 FY23

▪ Robust growth in Agri Business; Segment Revenue up 44.0% YoY

Future Ready | Consumer Centric | Agile

ITC Next Strategy

Innovation and R&D

Multiple Growth Drivers

Cost Optimization

World-Class Talent

FMCG Others

FMCG Others – Q2 FY23

▪ Strong and broad-based growth across markets and channels - Strong growth in Staples & Convenience Foods (Biscuits, Atta, Noodles) and Discretionary/Out-Of-Home categories (Snacks, Beverages, Fragrances, Agarbatti, Frozen Foods)

▪ Growing presence in emerging channels

Segment Revenue up 21.0% YoY at ~1.5x of Q2 FY20

Scaling up D2C

FMCG Others – Q2 FY23

Segment EBITDA +15% YoY More than doubled over Q2 FY20

World Class Distributed Infrastructure Scale| Productivity| Costs

Creating Structural Competitive Advantages

Driving Cost Agility & Productivity

Smart Buying

Overheads

Remove | Reduce | Re-engineer

Input Optimisation

Addressing Emerging Consumer Need Spaces with Agility

Robust innovation pipeline

Future-Ready Portfolio

Augmenting ‘Good For You’/ ’Free From’ range

Aashirvaad Svasti Milk

Building Brands with Purpose

Leveraging Festive Occasions

Expanding Reach in Emerging Channels

Winning in Emerging Channels

New Routes to Market Direct Marketing On the Go Strategic Partnership QSR

Channel Specific Launches

Leveraging Digital to expand reach

FMCG Cigarettes

Innovation

ITC Ltd Interim / Quarterly Report 2023