ANNUAL GENERAL MEETING 11 th August 2016 Agenda 01 About Us FY 16 - PowerPoint PPT Presentation

ANNUAL GENERAL MEETING 11 th August 2016

Agenda 01 About Us FY 16 Financial Performance 02 Our Strategic Direction 03 04 Business Highlights 05 Our Commitment to Sustainability 06 Recognitions 2

We are a global company serving customers across 5 continents Consolidated Net Revenue of ~ ₹ 17,700 Cr in FY 2015 -16 with interests across LIFE 3

Context for the year gone by INDUSTRY FARM LIVING  Continued growth in branded  US and Asia (including India)  Two consecutive droughts  Insufficient allocation of subsidy packaged products show resilient form while other  Consumers shift towards quality  Falling commodity price and regions are patchy  Falling commodity prices aids and value squeezing of farm margins  New  Focus on Farmer Engagement entrants & categories margin expansion  Focus on Operational Excellence energises the market and Sustainability 4

Our Financial Performance In ₹ Cr Income from Operations EBITDA PAT Consolidated 17,708 Income 3% 17,204 EBITDA PAT 31% 2,164 2,165 780 596 2014-15 2015-16 Standalone Income 6% 10,650 10,084 EBITDA (1)% PAT (7)% 1,039 1,027 638 595 2014-15 2015-16 5

Financial Performance – Standalone In ₹ Cr Income from Operations EBIT Inorganic Chemicals Inorg. Chemicals 3,507  Soda Ash and Salt in India 3,320 continue to deliver improved Income 6% performance EBIT 13% 896 792  Salt portfolio commands a market share of 68.5%* in the 2014-15 2015-16 National Branded Salt Segment Fertilisers 6,409 6,269 Income 2% EBIT (23)% Fertilisers & Other Agri  High subsidy outstanding 265 205 continue to impact the business performance 2014-15 2015-16 Other Agri-Inputs  Subsidy receivable at ₹ 1,902 Cr as on 31st March 2016 422 373 (Subsidy outstanding of ₹ 1,479 Cr as Income 13% of June 2016 end) EBIT (8)% 39 36 2014-15 2015-16 1. Financial Numbers are before Eliminations and Other Businesses 6 2. * Source: Nielsen Retail Audit March 2016

Financial Performance – Overseas Operations In ₹ Cr Income from Operations EBITDA PAT 2,936 2,917 North America  Plant reliability issues led Income to lower production EBITDA (16)% 679 570 PAT 16%  Production back on track 216 186 in the final quarter 2014-15 2015-16 1,728 1,680  Better operational Europe Income (3)% performance EBITDA 102% PAT  Drop in PAT due to Mark 149 (98) 74 (3) to Market losses 2014-15 2015-16 714 680  Magadi operations Magadi continues to improve Income 5% performance EBITDA 62% 124 PAT 200% 77 70 (58)  Focus on Quality 2014-15 2015-16 7

Our Strategic Direction 8

Our Strategy in Farm Essentials CONSUMERS  Cater to 25 million farmers (who are influencers in their areas)  Shift to non subsidized, specialty products like specialty fertilisers, organic fertilisers, crop protection chemicals, crop PRODUCTS & growth nutrients, seeds, etc. SERVICES  Digitized farm solutions through relevant Package of Practices  Focus on Brands: Paras, TKS, RKK, Non bulk portfolio in TCL, INVESTMENT Rallis & Metahelix STRATEGY  Cap exposure to commodity fertiliser and seek Partnerships and/or transfer of ownership Step 1 Step 2 Step 3 Step 4  Invest in Brands like  Acquire Rallis  Acquire Metahelix : Total  Cap exposure to  Invest in Dahej for Paras / TKS/ Daksha cost of ₹ 244 Cr commodity fertiliser  Build portfolio in Non  Build Digital platform  Seek Partnerships and/or expanding capacity and  Innovative bulk branded products : capability in Rallis : Gross Product transfer of ownership Currently at ~ ₹ 700 Cr Investment of ~ ₹ 300 Cr launches 9

The current transaction is in line with our Strategy  Buyer: Yara , one of the world’s largest producer of fertilizers and with long term interest in urea Transaction  Transaction Value: ₹ 2,670 Crores, subject to adjustments  Process: Slump sale process via court scheme (~9-12 months)  Babrala land, plant & equipment and working capital of Urea + Customised Fertiliser business  CAT * , Aligarh employees and equipment (excluding land & building)  Inclusions All related contracts (gas, dealers, BHAs, etc) and liabilities  All Babrala employees and related sales and support staff from Noida office  Transitional Brand and IT support  Phosphatic and Trading Businesses  Exclusions Tata Kisan Sansar (TKS), Dakhsa, Paras brands  Aligarh land & building, Noida office, Marble Arch Guest House, etc. 10 * CAT : Centre for Agri Solution and Technology

We launched Tata Sampann umbrella brand with a focus on providing everyday nourishing food to consumers… Tata Sampann Umbrella Brand Tata Sampann brand houses unpolished high protein Dals, low oil absorb Besan and a wide range of uniquely developed Spices 11

...and launched key products in the market Tata Salt Plus Rock & Black Salt Nutritional Solutions (Crusher Pack) Iron Fortified Iodised Salt Mineral rich salt in Innovative range of launched to address Iron crusher pack to ensure prebiotics (FOS, GOS) and Deficiency Anaemia across fresh aroma and flavour healthier alternatives to the country at the time of use regular sugar 12 * FOS : Folic Oligosaccharide; GOS : Galacto Oligosacharide

We connected with our consumers through impactful campaigns 6.3 Lakh consumers engaged on social media to pay tribute to our Soldiers Desh Ki Rag Rag Mein Iron campaign on empowering the new women of India Iron Fortified Iodised Salt Campaign Tata Sampann Goodness Ki Shuruwat Campaign 13

..and continue to build on our Customer Connect through powerful brands & distribution reach World’s 2 nd largest producer Tata Salt reaches 135 Our Agri business reaches ~85% of Soda Ash and 4 th largest in million households of India’s arable land serving Sodium BiCarb over 20,000 villages 14

We deliver Operational Excellence through relentless focus on Safety and Continuous Improvement “Target Zero Harm” safety Execution Excellence Lean Six Sigma deployed initiative across all sites program aimed at globally for process and Flagship programs include simplification of processes delivery effectiveness Suraksha Jyot, Looking For to bring in agility and Over 1500 trained, 340+ Trouble, SRESHTO, Process accelerate decision making projects completed Safety Management (PSM) 100+ projects have been undertaken 15

…anchored by our engaged and capable workforce Few Employee Engagement Initiatives Oorja & TCL Family Day: TCL Master Chefs was held along with Family Day Diwali Day Celebrations Recognition of customer centric TCE employee participation Women Volleyball team at TCML innovations by sales & marketing teams in Cyclothon 16

Our Commitment to Sustainability Empowering Community Nature & Biodiversity Waste Management  Connecting 600+ rural artisans with  491 whale sharks rescued  100% recovery of urea spillage  830 m 2 of artificial coral reef created  76% of virgin limestone requirement met customers through Okhai  Turnover of ₹ 1.5 Cr; 50% increase over PY  ~700,000 new mangroves planted through recycled materials  2000+ youth trained in vocational trades Resource Conservation Climate Change Product Stewardship  313 ft 3 of water harvesting capacity created  Specific carbon emission reduction initiatives  Bulkers help replace 3 Mn plastic bags p.a.  Efforts invested to ensure focus on specific  Reuse of HDPE bags – Fresh bags used for rolled out across our domestic and water consumption international sites only 2.5% of the production 17

Our Recognitions in the year (1/2) Tata Salt ranked 2 nd Awarded British Safety Council Recognised as the Most Trusted Brand in - Sword of Honour at Mithapur Best Employer (India) 2016 by AoN Hewitt ET Survey 2015 & Haldia manufacturing sites & & Best Company to Work for in Kenya by No.1 Food Brand by Deloitte Hindu Business Line 18

Our Recognitions in the year (2/2) Ranked 2 nd in CDP 2015 with a Tata Salt’s ‘ Desh ka Salaam, Recognised as Best Sarhad ke Naam ’ campaign Company for CSR in India score of 99 in Carbon Disclosure Leadership Index breaks two Guinness records* 2015 by The Economic Times 1. *The longest line of postcards with a chain of 6400 messages and postcards from Indians to the Indian armed forces 19 2. *Record for the loudest indoor shout with a crowd-sourced utterance of 'Jai Hind' that reached 122.2 decibels

Thank You www.tatachemicals.com www.humantouchofchemistry.com www.tcsrd.com www.okhai.org

We have initiated Strategic actions to address our Business Challenges  Optimised sourcing for food grains; Development of LIVING predictor model for market price  Product and brand differentiation to counter unbranded/private label competition  INDUSTRY Operational and energy efficiencies to reduce material consumption and cost of operation  Securitisation raw materials 21