ITC Ltd — Investor Presentation 2022

Dec 3, 2022

3 rd December, 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,

Participation at ESG Conference

We write to advise, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, that the Company's representatives virtually attended the ESG Conference organised by CLSA India Private Limited on 2 nd December, 2022, and made a presentation at the said Conference.

A copy of the presentation made is enclosed.

Yours faithfully, ITC Limited

NIDHI BAJAJ Digitally signed by NIDHI BAJAJ Date: 2022.12.03 11:50:14 +05'30'

(N. Bajaj) Deputy Company Secretary

Enclosed: a/a

• 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 : Securing the Future CLSA Webinar 2nd December 2022

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 guarantee as to their accuracy and readers are advised not to place any undue reliance on these 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.

Sustainability Embedded in Corporate Strategy

* Representative image. Not to scale

ITC's Sustainability Vision

India: Limited Natural Resources

Critical to Replenish Environmental Resources

Code Red on Climate Change

Southern Zone is most vulnerable, followed by the Eastern Zone, to extreme climate events

Extreme Weather witnessed on ~90% of days in the first 9 months of 2022

Climate change has made India's heat wave 100 times more likely.

Map Source :https://www.ceew.in/publications/mapping-climate-change-vulnerability-index-of-india-a-district-level-assessment

Challenges of Inequality and Livelihoods

Poorest half of global population possess just 2% of the total wealth.

Planet must produce more food in next 40 years than all farmers in history have harvested in the past 8,000 years

• Large proportion of world's poor live in India
• 12 million youth join workforce every year

Business cannot succeed in societies that fail

Enduring Value : Triple Bottom Line Performance

Innovative Business Models that pursue:

✓ Extreme Competitiveness

✓ Growth with Livelihoods

✓ Growth with Climate Action

RESPONSIBLE COMPETITIVENESS

Sustainability 2.0 – A Bold Agenda for a Secure Tomorrow

Recognition of Sustainability Performance

ITC rated AA by MSCI-ESG Rated AA every year since 2018

ITC has been included in the Dow Jones Sustainability Emerging Markets Index

Rated at the 'Leadership Level' by CDP with scores of 'A-' for both Climate Change and Water Security

AWS Platinum-level certification

ITC PSPD unit, Kovai, first in India ICML, Malur

8 ITC hotels and Data Centre first in the world to get LEED Zero Carbon Certification

Our Sustainability Strategy

Objective Initiatives

• ➢ Going beyond risk mitigation and leveraging opportunities
• ➢ Reinforcing Sustainability as an integral part of Business Strategy
• ➢ Strengthening ITC's status as a Climate Positive organization
• ➢ Creating unique sources of Competitive Advantage
• ➢ Ensuring a holistic, comprehensive and inclusive approach for stakeholders

1. Addressing CLIMATE CHANGE Risks

4. Developing a RESILIENT & SUSTAINABLE SUPPLY CHAIN

2. Ensuring WATER SECURITY for All

5. Leveraging PRODUCT SUSTAINABILITY Opportunities

3. Embedding CIRCULARITY in Business models

6. Strengthening DISCLOSURES

Addressing Climate Risk & Competitiveness

Renewable Energy – 42% of energy consumed

Large scale Sequestration 40 Platinum rated Green Buildings 9 LEED Zero Carbon Certification

Continuous Reduction in Specific Energy/Water Consumption

Adaptation: A Critical Imperative

• With Current Policies : + 2.7oC

• With Pledges & Targets : + 2.0oC
• Best Case Scenario : + 1.8oC

"We can do little to avoid the coming climate breakdown. Instead we need to adapt to the hothouse world that lies ahead and to start taking action to try to stop a bleak situation deteriorating even further"

Adaptation @ ITC

ITC'S PAPER VALUE CHAIN LEVERAGING TECHNOLOGY & INNOVATION

Clonal Saplings grown in Nursery

Investor Day 2021

Plantation by small land holders

Greening over 1,000,000 acres

• ➢ Supporting nearly 175 million person days of employment
• ➢ Environmental Impact
  • Carbon Sequestration
  • Augmenting Green Cover
  • Top Soil Retention
  • Water Recharge
• ➢ A Competitive Source of Pulp-wood for ITC's Paper mill

OVER 1,75,000 ACRES

Investor Day 2021

Biodiversity

1,33,000 acres – 10 States, 29 districts

• Restoring village commons and pastures
• Reducing pressures on forests by fringe area development work – Maharashtra Forest Department PPP renewed to cover 80,000 acres
• Reviving ecosystem services Pollinators, predators, soil microbes etc.

Impacts

• Biomass and green cover increased up to 6 times in 5 years
• Animals and Reptiles Species doubled

Village Commons restoration - AP

Pioneering Green Buildings – 40 LEED ® Platinum Buildings

Recently Commissioned ITC Solar Farm at Tamil Nadu

Water Stewardship

Climate Change in India's Agriculture

"…..The last time we saw crops was during our grandfather's time….."

54 % of India is water stressed

Demand Management

Using AWS framework for third party Verification of high water stress areas

Supply Augmentation

RAINWATER HARVESTING POTENTIAL

WATER STRUCTURES

1.3 MILLION ACRES 25,000

3 times Net Water Consumption in 2022

ITC'S WATER STEWARDSHIP MISSION REPLENISHING NATURAL RESOURCES

Water Demand Efficiency : More Crop per Drop | River Basin Management

• Drought proof agriculture & Positive water balance in unit catchments
• Supply Enhance rainwater storage by catchment treatment, surface storage & groundwater recharge
• Demand management Improve water use efficiency in 14 major crops
• Long term sustainability of impacts by working at river basin level

Impacts

• Groundwater improvement up to 3.5 m against control
• Reduction in water consumption by up to 40% as compared to conventional practices
• Soil organic carbon improvement by 117% against baseline (0.65% from 0.30%)
• Platinum certification for Kovai Plant and ICML Malur by Alliance for Water Stewardship (AWS)

Climate Positive: Road Ahead | S 2.0 2030

| 37 |

• ✓ 50% of Total Energy from Renewable Sources
• ✓ 100% Purchased Grid Electricity Requirements from Renewable Sources
• ✓ 50% reduction in Specific GHG Emissions
• ✓ 30% reduction in Specific Energy Consumption
• ✓ Carbon Sequestration (Area under Social and Farm Forestry): 1.5 Million Acres
• ✓ Biodiversity to be expanded to 1 million acres
• ✓ 40% reduction in Specific Water Consumption; Water Use efficiency in Agri Value Chain: 2000 Million KLs ; All high risk sites to be certified as per the AWS Standard by 2035
• ✓ All ITC Owned Hotels to achieve Zero Carbon

Accelerate action towards achieving ITC's Sustainability 2.0 Goals

Leveraging digital Climate tools for periodic vulnerability assessment

Detailed Climate risk assessments for developing Adaptation strategies for vulnerable sites

Promote thought leadership through CII–ITC Centre of Excellence for Sustainable Development

Empowering Farmers through NextGen Agriculture

INDIAN AGRICULTURE FACES MANY CHALLENGES

Small Farms

• ~70% farm holdings are less than 1 hectare

High post-harvest losses

Inadequate Market Linkages & Low price realization

• Value captured by Intermediaries in the farm to fork chain

Limited access to Formal credit

• Reliance on high-cost informal credit channel

Sub-optimal Farm yields

• Lower than that of developed nations
• Low availability of scientific advisory
• Spurious farm inputs and timely availability

THE EARLIER YEARS: E-CHOUPAL ECOSYSTEM

Empowering 4 Million Farmers

ITC in Agriculture : Baareh Mahine Hariyali Leveraging Technology & Innovation to Enhance Productivity

Varietal Improvement

Short Duration Varieties

Cropping Intensity

Choupal Pradarshan Khet

Water Management

Zero Tillage

Agri Best Practices Farm Mechanisation

Collaboration with NITI Aayog for improvement of agriculture in 27 aspirational districts – 3.4 million farmer interactions

Climate Smart Agriculture | ITC Next

Covered over 1.5 million acres

Case Study: Madhya Pradesh GHG emission of select crops by 13% to 66%, whilst enhancing net returns to farmers between 46% to 93%.

DIGITAL TECHNOLOGIES CAN TRANSFORM THE FARMING JOURNEY

Rapid Quality Assaying Image Analytics IoT Sensors

Soil Health and Agri-Produce Quality

Real-time Identification of Pest and Expert resolution

Precision Agriculture: AI/ML models of Farming

Digital Agri Supply Chain Agri Drones

Demand backed production, delayering value chain

Optimized chemical usage, Cropmonitoring, Farm mapping

DIGITAL & SUSTAINABILITY WILL BE THE MEGATRENDS OF THE FUTURE: SANJIV PURI

ITC Next

Metamarket for Advanced Agriculture & Rural Services

ITCMAARS PHYGITAL MODEL: CURRENT SCALE

Physical

ITC MAARS ECOSYTEM

Digital Empowerment of Farmers > Improved Yields > Reduced Cost of Production > Improved Price Realisation > Enhanced Income

Digitally Enabled

3X accelerated FPO creation through on-ground support

Training for quality evaluation

Output aggregation & Input sales by ITC

AI/ML driven models of Farming

Crop Calendar: Scientific planning of crop cycle, AI powered regular Nudges

Crop Doctor: Real-time Identification of Pests & Expert resolution

Optimized chemical usage, Crop-monitoring, Farm mapping

Farm-gate evaluation of Soil Health & Agri-Produce Quality

Reliable supply of authentic products

Transparency of price at farm level

Personalized Krishi Samadhan Kits assembled basis Crop, Region & Soil type

Lighthouse Farms at every FPO demonstrating impact of Precision Agriculture

Planned Harvesting basis Weather forecasts

Transparency in Pricing. Convenience of Farmgate pick-up

Quality evaluation and Weighment through equipment

Identity Preserved & Traceable agri value-chain for Customers

Easy registration for KCC

Pre-approved working capital loan for purchase of Inputs directly from the app through Partner Banks

Mechanization as a service to be available

Plug-and-Scale Platform for successful Ag-Tech innovators

ITCMAARS Demonstration Farms

Livestock Development Animal husbandry services to nearly 2,100,000 milch animals Pashu Sakhis earning additional income around Rs 60,000 per annum

Empowering women Over 1,05,000 rural women benefitted

Skill Development Initiative Over 1,10,000 youth trained

Rural Education Programme Over 8,90,000 children benefitted

Mother & Child Health Over 6,00,000 covered

Sanitation Over 39,000 individual sanitary units constructed

• ✓ITCMAARS to reach 10 million farmers
• ✓4,000 FPOs to be supported by ITCMAARS
• ✓Targeting Climate Smart Agriculture in 3 million acres by 2030
• ✓Scale up interventions for Horizon 2 livelihood initiatives
• ✓Capability and Capacity building of Supply Chain Partners

Climate Risk Vulnerability Assessments for key Agri and Raw Material Value Chain

Scaling climate change mitigation and adaptation plans across agri value chains

Ensuring traceability in agri value chains of the highest standards FSC, RFA, STP.*

Deeper engagement with critical suppliers for aligning their initiatives to ITC's Sustainability Goals

Towards a Circular Economy

Well Being out of Waste (WOW) | Community Engagement

60,000+ MT of dry waste diverted from land fills

18 Million Citizen outreach in 19+ cities

95% to 15% Waste to landfill reduced

Plastic Waste Management across the Nation

100%+ Collections in 2021-22: ITC Turns Plastic Neutral

Supporting industry wide projects

✓100% of Packaging to be Reusable, Recyclable, Compostable or Bio-Degradable

✓Plastic Neutrality: Enable Sustainable Management of Waste in Excess of the Amount of Packaging Utilised. Achieved in FY22, to be Sustained Going Forward

Scaling Sustainable Solid Waste Management Models

Continue To Recycle 100%+ Waste Generated In Our Operations

Scaling Up Innovative Sustainable Packaging Portfolio

Diversity & Inclusion

Inclusion & Enablement Policies

Growing participation of Women in Units

FMCG : MARKETING, HR, RESEARCH & PRODUCT DEVELOPMENT

HOTELS, LSTC, PERSONAL CARE, CORPORATE

ICMLS

PROGRESSIVELY LARGER PARTICIPATION OF WOMEN

ENHANCING WOMEN REPRESENTATION IN CAMPUS RECRUITMENT

Governance: Trusteeship Transparency Ethical Conduct

Trusteeship, Transparency, Ethical Conduct

Audit Committee

Nomination & Compensation Committee

Independent Directors Committee

Securityholders Relationship Committee

3-Tiered Governance Structure

Strong Governance Mechanisms for Cascading Sustainability Strategy

ESG Reporting: Highest Standards of Transparency & Disclosure

19 years of ESG reporting experience…

ITC Sustainability & Integrated Report 2022 | Executive Summary 2022

Reporting aligned to Global Frameworks

ITC Report & Accounts, and Business Responsibility & Sustainability Report 2022

Responding to CDP Climate Change & Water Questionnaire, S&P/DJSI Questionnaire

Contribution to SDGs

6 Million Livelihoods Supported

Women Empowerment

Climate Smart Agriculture

Integrated Animal Husbandry

ITC Foods Business' Four Pillar Model - ʻHelp India Eat better' Mother & Child Health Waste Management

Sustainable Products

Sustainable Supply Chains

Climate Smart Agriculture

Integrated Animal Husbandry

Women Empowerment

QUALITYEDUCATION

Employee Training & Development

Supplementary Education

Vocational Training

Diversity and Equal Opportunity Initiatives Alliance for Water Stewardship(AWS) Certification

Diversity on S2.0 Targets on Water Efficiency

the Shop-floor

Women

Supplementary Education

42% Energy Needs from Renewable

S2.0 Targets on RE, Energy

Efficiency

Pioneering

Movement in

Green Buildings

India

Sources

Presence across: Agri, Manufacturing & Services

Occupational Health & Safety

Sustainable Tourism

Vocational Training

Women Empowerment

Empowerment Waste Management

Contribution to SDGs

10 State of the art ICMLs Industry 4.0 Sustainable & Incl Agri & Forestry Value Chains Green Manufacturing

ITC Life Sciences &Tech Centre

Climate Smart Agriculture

Supplementary Education

Waste Management

Diversity Initiatives D&I Oriented: Hiring Strategy Women Empowerment Supplementary Education Vocational Training WOW covering citizens, dry waste FY22 across 17 10 states, waste managed in FY22.

programme 18 million 60,000 MT recyclable managed in Solid Waste Management programme districts in 99,700 MT Strategically located ICMLs – Optimal Distance-to-Market Resource Efficiency 99% Recycling of Waste Purpose-led Brands Transparency Reporting)

Climate Resilient Operations &

Value Chains

Social Forestry Climate Smart

Agriculture

Integrated Animal Husbandry

Water Stewardship

Biodiversity Conservation Commitment to (19Years of Sus Managing Waste

Deforestationfree Wood and Leaf Tobacco value chains Water Stewardship Climate Smart Agriculture Sustainable Management of Post-Consumer Plastic Packaging Waste

Highest standards of ethical conduct Social Forestry Water Stewardship Water Stewardship Climate Smart Agriculture Waste Mgmt

Climate Smart Agriculture

Supplementary Education

Social Forestry

Biodiversity Conservation Women Empowerment Health

Mother & Child

Supplementary Education

Women Empowerment

Mother & Child Health

Summary : S2.0 Targets - Raising The Bar

A passion for profitable growth….

…..in a way that is sustainable…….

…. and inclusive