1. ITC LimitedOne of Indias Most Admired Companies1

2. Performance Track Record - Snapshot Rs crores Cagr 95-96 Rs Crs95-96 09-10to 09-10 Gross Turnover5115 26,260 12.4% Net Turnover2536 18,153 15.1% Market Capitalisation 5571100,475 22.9% PBDIT584 6,67719.0% PBIT 536 6,06918.9% PBT452 6,01520.3% PAT (After Exceptional Items)261 4,06121.7% EPS Rs (Equalised for 95-96) 0.7 10.7321.4% Net Worth 1121 14,064 19.8% Capital Employed1886 14,957 15.9% ROCE% 28.440.6 Total Shareholders Returns %24.3%Rs. 1 crore= Rs. 10 million 2 3. ITC - Key Financials 2009/10 09/10 08/09 Rs crs Goly %Actuals ActualsGross Turnover External262602314413.5Net Turnover External181531561216.3PBDIT6677539323.8PBIT 6069484425.3PBT6015482624.7PAT4061326424.4 4. 2009/10: Segment RevenuesFull Year2009-10 2008-09 Goly1. Segment Revenue (Gross)a) FMCG - Cigarettes 17,28315,115 14.3 - Others 3,642 3,014 20.8 Total FMCG20,92518,129 15.4b) Hotels 911 1,020(10.7)c) Agri Business3,862 3,8460.4d) Paperboards, Paper & Packaging 3,234 2,822 14.6 Total 28,93125,817 12.1Less : Inter segment revenue2,672 2,674 (0.1)Gross sales / income from operns.26,26023,144 13.52009-10 2008-09 Goly2. Segment Revenue (Net)a) FMCG - Cigarettes9,321 7,781 19.8 - Others 3,634 3,006 20.9 Total FMCG12,95510,786 20.1b) Hotels 851 935 (9.1)c) Agri Business3,862 3,8460.4d) Paperboards, Paper & Packaging 3,108 2,647 17.4 Total 20,77618,215 14.1Less : Inter segment revenue2,622 2,6030.8Net sales / income from operns.18,15315,612 16.3 5. 2009/10: Segment Results Full Year2009-102008-09Goly3. Segment Results a) FMCG - Cigarettes 4,9384,18418.0- Others (350)(483) 27.7 Total FMCG 4,5893,70024.0 b) Hotels217316 (31.5) c) Agri Business 43625670.3 d) Paperboards, Paper & Packaging68450934.5Total 5,9264,78123.9 Less : i) Interest (Net)53 18 191.2 ii) Other net un-allocable expenditure/ income(143) (63)127.6Total PBT 6,0154,82624.7 6. 2009/10: Segment Capital Employed Full Year 2009-10 2008-09 Goly4. Capital Employed a) FMCG - Cigarettes *2,998 2,9362.1- Others 1,719 2,101(18.2) Total FMCG4,717 5,037 (6.4) b) Hotels 2,457 2,189 12.3 c) Agri Business1,580 1,039 52.1 d) Paperboards, Paper & Packaging 3,711 3,771 (1.6)Total Segment Capital Employed12,46512,0353.6* Local Tax Provision not incl. 628.64542.86 15.8 7. ITC - Key Financials Q1 2010/11Q1 10/11 Q1 09/10 Rs Crs Goly %ActualsActualsGross Turnover External 70436131 14.9Net Turnover External 48174148 16.1PBDIT 17361475 17.7PBIT15761323 19.1PBT 15701317 19.2PAT 1070 879 21.8 8. Q1 2010/11: Segment RevenuesRs. croresQ12010-11 2009-10Goly(%)1. Segment Revenue (Gross)a) FMCG- Cigarettes46704161 12.2 - Others1006 759 32.4 Total FMCG56754920 15.4b) Hotels225186 21.2c) Agri Business 1350 941 43.5d) Paperboards, Paper & Packaging829731 13.5Total80796777 19.2Less : Inter segment revenue 1036 646 60.4Gross sales / income from operns.70436131 14.92010-11 2009-10Goly(%)2. Segment Revenue (Net)a) FMCG- Cigarettes24842210 12.4 - Others100175832.2 Total FMCG34852968 17.4b) Hotels210 17321.5c) Agri Business 135094143.5d) Paperboards, Paper & Packaging794 70313.0Total58384784 22.0Less : Inter segment revenue 102263660.6Net sales / income from operns.48174148 16.1 9. Q1 2010/11: Segment Results Q1 2010-11 2009-10 Goly(%)Segment Resultsa) FMCG - Cigarettes13051125 16.0 - Others(89) (100)10.5Total FMCG12161026 18.5b) Hotels 3931 25.9c) Agri Business123100 23.2d) Paperboards, Paper & Packaging 188128 47.5 Total15661284 22.0Less : i) Interest (Net) 66(0.7)ii) Other net un-allocable expenditure/ income (10)(39) (74.4)Total PBT 1570131719.2 10. Segment Capital Employed Q1 2010-11 2009-10 Goly(%)4. Capital Employed a) FMCG - Cigarettes * 3032263215.2- Others18881929(2.1) Total FMCG 49204561 7.9 b) Hotels2511227210.5 c) Agri Business 14411389 3.7 d) Paperboards, Paper & Packaging36363707(1.9)Total Segment Capital Employed 12507 11930 4.8* Local Tax Provision not incl. 657 554 18.6 11. ITCOne of Indias most valuable and admired companies One of the 8 Indian Companies to feature in Forbes A-list for 2004Featuring 400 of the Worlds best big companies with M-cap. > USD 5 bln. & arerated as the most attractive companies for investors Only Indian FMCG Company to feature in Forbes 2000 ListA comprehensive ranking of worlds biggest companies measured by a composite ofsales, profits, assets & market value One of the foremost in the private sector in terms of :Sustained value creation (BT-Stern Stewart survey)Operating profitsCash Profits Ranks No. 4 among Indian listed Private Sector Companies by market cap. No. 1 in FMCG Sector Rated as one of Indias Most Respected Companies (IMRB-Businessworld Survey 2006) 11 12. Awards & Accolades (1) ITC received the FICCI Outstanding Vision Corporate Triple Impact Award 2007 for invaluablecontribution to the triple bottom line benchmarks of building economic, social and natural capitalfor the nation. Global Leadership Award conferred on Chairman Y C Deveshwar by the US India Business Councilof the US Chamber of Commerce Sustainability Leadership Award 2007 conferred on Chairman Y C Deveshwar by the SustainabilityForum, Zurich and SAM/SPG at the International Sustainability Leadership Symposium Business Today Award for the Best Managed Company Retail and Consumer Products, hasbeen conferred on ITC in recognition of its outstanding initiatives in the consumer products segment. Ryutaro Hashimoto Incentive Prize 2007 for Environment & Development from the Asia PacificForum In the first of its kind S&P Environmental, Social and Corporate Governance (ESG) ratingsreleased recently, ITC ranked second among top Indian companies. The Company has won the Corporate Social Responsibility Crown Award for Water Practicesfrom UNESCO and Water Digest for its distinguished work carried out in the water sector in India. ITC Limited won the top UNIDO award at the International Conference on Sharing InnovativeAgribusiness Solutions 2008 at Cairo in recognition for its initiatives in agri business. ITC has been conferred the ICAI Award for Excellence in Financial Reporting with its AnnualReport and Accounts, adjudged as a commendable entry under the Manufacturing and TradingEnterprises category. The Best Corporate Social Responsibility Practice Award 2008 jointly instituted by the Bombay StockExchange, Times Foundation and the NASSCOM Foundation.12 13. Accolades & Awards (2) e-Choupal initiative wins global recognition: Stockholm Challenge Award 2006 in the Economic Development category which recognises initiatives that leverage Information Technology to improve living conditions and foster economic growth in all parts of the world. First Indian Company to win the Development Gateway Award 2005 for the most exemplary contribution in the field of Information & Communication Technologies (ICT) for development during the last 10 years World Business Award 2004: International Chamber of Commerce & the HRH Prince of Wales & International Business forum Harvard University case study Recognised in World Development Report 2008 published by World Bank Applauded by President of India Dr APJ Kalam in his special address during the national symposium to commemorate 60th year of independence13 14. ITC Business PortfolioFMCGCigarettesFoods Personal Care Lifestyle Retailing , Education & Stationery MatchesIncense Sticks Paper &AgriInformation Hotels Packaging TechnologyBusiness 15. Strategy of Organisation to manage diversity ofPortfolioFormal 3-tiered governance structure: Board of Directors : Comprising executive (3) and non-executive directors (11) Strategic supervision Corporate Management Committee : Comprising executive directors and senior managers Strategic management Divisional Chief Executive & Divisional Management Committee : Executive management 15 16. Corporate Strategies Sustain multiple drivers of growth, matching internal capabilitieswith emerging market opportunities Pursue World class competitiveness in all businesses and acrossthe entire value chain Best-in-class in terms of: Internal Vitality Market Standing Profitability Strategy of Organisation and Governance processes geared tomanage multiple businesses Blend core competencies and leverage ITC umbrella strengths tocreate new avenues of growth 16 17. FMCG - Cigarettes17 18. ITCs Cigarettes Business Market leadership Powerful brands across segments Leadership in all segments - geographic & price Extensive FMCG distribution network Direct servicing of 1,00,000 markets & 2 million retail outlets World-class state-of-the-art technology and products Investment - Rs.10 billion in six years Exciting long term growth potential 18 19. Cigarettes: Growth potential Cigarettes account for less than 15% of tobacco consumed in India unlike world pattern of 85% due to prolonged punitive taxation Cigarettes (15% of tobacco consumption) contribute nearly 85% ofRevenue to the Exchequer from tobacco sector Of the 58% of adult Indian males who consume tobacco, barely 15% can afford cigarettes Biri : Cigarettes ratio = 10 : 1 Annual per capita adult cigarette consumption in India is appx. one tenth world average : 85 Future growth depends on relative rates of growth of per capita income and moderation in taxes19 20. Per Capita Consumption of Tobacco in India(gms per year) 12561145 743 438 461468China USAPakistan NepalIndiaWorldSource:World Cigarettes ERC Statistics, Tob Board & Industry Estimates gms/YrPer Capita consumption is ~ 60% of World Average 21. 2920Per Capita Cigarette Consumption3000250020001886 177115001000 844OCN 618agoerstfi488 500303 24385 0 A U SdnaINCipanheanpaJli W d o r l A g a v r e P n k a s t iLknSariCountriesBhdngaesl Per Capita consumption in India ~ 10% of World average 21 22. Cigarettes: Challenges Competitive context Competition including international majors becoming more active Domestic illegal volumes still very strong. Along with smuggled contraband, has emerged as substantive segment Regulatory & Taxation Pictorial Graphic warnings in place w.e.f. June 09. VAT hikes in Maharashtra, Delhi, Rajasthan & Pondicherry- threatening the concept of the Indian Common Market Cost table increasing with increase in leaf costs 22 23. Hotels & Tourism 23 24. Hotels & Tourism industry Foreign arrivals into India: 5 million appx. Vs. 35 million in China The two nations were on par 2 decades ago at 750,000 arrivals Today, Beijing alone has as many hotel rooms as the whole of India Indias luxury rooms availability lower than even smaller East Asiancountries80000700006000050000400003000020000100000HongKong BangkokSingapore Malaysia India Source: Compendium of Tourism statistics, WTO 24 25. Indian Hotel Industry Current supply appx. 110,000 rooms of which 5 Star categoryaccounts for appx. 30% India needs an additional 50,000 rooms in the next 2/3 years toservice projected tourist arrivals Present mismatch between supply and demand expected topersist over the short term As infrastructure for trade & commerce improves - growingpotential for leisure tourism25 26. ITCs Hotel Business ITC-Welcomgroup : a leading hotel chain in India Established presence in key business locations Over 6000 rooms under 4 distinct brands Category BrandPositioningLuxuryITC Hotel: Luxury Collection "Mansions of Luxury"Upper upscale WelcomHotel: Sheraton"Passion for Quality"Upscale - mid-scale Fortune Hotels "Promise of True Value"HeritageWelcomHeritage "Unique Experiences" Bangalore 292 room luxury hotel launched in October 09 Capacity expansion underway at Chennai & Kolkata; plans for other locations also being progressed. Fastest growing hotel chain with highest operating efficiency (PBDIT/Net Income @ 40%) amongst the 3 leading chains Leverages unique service proposition and international alliance with Starwood Hotels & Resorts - Luxury Collection / Sheraton 26 27. ITCs Hotel Business Manages 34 full service mid-market properties (2000 +rooms ) under the Fortune Hotels brand 21 more hotels in pipeline; room inventory- 4800 appx. 100% subsidiary company : Fortune Park Hotels Ltd. Also operates 60 properties under the WelcomHeritagebrand in 19 states - Maharaja Heritage Resorts Ltd. 50% JV withMarudhar Hotels (P) Ltd.27 28. Paperboards, Paper&Packaging 28 29. Indian paperboard market Annual paperboard demand appx. 2 million tonnes Fragmented capacity & obsolete technology Low per capita usage at around 7 kgs p.a. (world average over 55kgs p.a.) Indian paperboard market growing at 7% p.a. Value Added Coated board - the fastest growing segment (15% p.a.) inIndia driven by the growing sophistication of the consumer 29 30. ITCs Paperboards Business Market leader in growth segment - value added coated boards World-class contemporary technology Ozone bleached Pulp Mill fully operational only one of its kind inAsia meeting world-class environmental standards Internationally competitive quality and cost Social farm forestry in mill command area to improve access to costeffective fibre & to attain self-sufficiency Biotech research based high yielding Clones effectiveness tested in >1,00,000 hectares Fully integrated operations with in-house pulping capacity at appx.2.80 lac MT30 31. ITCs Paperboards & Packaging businesses Capacity expansion projects installed at optimum capacity utilization 120000 TPA Pulp Mill Machine stabilised 100000 TPA paper machine (to support Education & Stationery businessgrowth plans) Machine stabilized Investment in 100,000 TPA paperboards machine underway ITCs packaging SBU -Indias largest converter of paperboard into high quality printed packaging Leading supplier to Indian FMCG and Consumer Electronic segments Provides superior packaging solutions to the cigarettes and new FMCGbusinesses31 32. Agri Businesses - Leaf Tobacco- Agri Commodities 32 33. Indian Leaf Tobacco industry India the third largest producer of tobacco However, Indias share is only 7% in world tobacco trade Upgradation of tobacco consumption from other formats to cigarettes will enable: growing domestic base & larger opportunities for value added exports ITC Indias largest buyer, processor, consumer & exporter of cigarette tobaccos 6th largest leaf tobacco exporter in the world Pioneering cultivation of flavourful Flue-cured, superior Burley and Oriental tobaccos in India Export business - robust growth in export volumes with improvement in realization over the last 2 years 33 34. ITCs Agri Commodity Business Farm linkages in 14 states covering Soya, Wheat, Marineproducts, Coffee etc. Focus on value added agri commodities Unique CRM programme in commodity exports Leveraging IT for the transformational e-Choupal initiative Rural Indias largest Internet-based intervention Over 40000 villages linked through around 6500 e-Choupals servicing over 3.5 million farmers Distinctive sourcing capability for ITCs Foods business 34 35. e-choupal: Strategic Thrust Procurement: cost & quality optimisation strategic sourcing support to the Foods business (support creation of verticals in wheat, soya, corn, potato etc.) cost-effective sourcing for exports/domestic external business Rural Distribution last mile connectivity: 100 partnering companies diverse range of goods/services: FMCG, consumer durables, agri-inputs, paid extension services etc. Financial Services insurance (focus: weather) credit (focus: Kisan Credit Card scheme) Rural retail 24 Choupal Saagars operational 35 36. Future Growth & Value CaptureNew FMCG Initiatives36 37. Strategic Rationale Blend multiple competencies residing within the ITC Group to create new avenues of growth Bestfit betweeninternal capabilities and emerging market opportunities Each segment enhances the depth and width of ITCs FMCG distribution capability Business model retains critical elements of value chains within ITC with other elements outsourced Contributing to the competitiveness of SMEs 37 38. Branded Packaged Foods Leverages: Unique Agri sourcing skills ITC Welcomgroups specialist cuisine & bakery knowledge FMCG distribution synergies ITC R&D Centre, Bangalore 5 chosen categories: Staples Aashirvaad Atta, Salt, Spices Biscuits Sunfeast Salty Snacks Potato chips, Bridge products : Bingo! Confectionery Candyman, mint-o Ready to Eat Kitchens of India (Ready to Eat, Conserves & Chutneys and Frozen Foods), Aashirvaad (Instant Mixes & Cooking Pastes), Sunfeast Pasta 38 39. Branded Packaged Foods Aashirvaad Atta: Current market leader amongst national branded players; leverages the e- choupal network for cost-quality optimisation and region specific offerings Sunfeast Biscuits: Differentiated & innovative products; continues to build consumer franchise; distributed & outsourced supply chain being ramped up Targeted cost management actions shore up margins Number of innovative products in the pipeline leveraging the capabilitiesof the ITC R&D Centre39 40. Lifestyle Retailing Leverages trade mark and services expertise of hotels Relaxed wear market growth > 20% p.a Upmarket product range available in exclusive Wills Lifestyle stores (56)and multi-branded outlets/ large format retail stores across the country Premium segment comprising the Classic range of formal wear, Wills Sport relaxed wear and Wills Clublife evening wear Designer association with leading Indian designers Wills Signature line Strong distribution network in place for the mid-market brand John Players availability in 225 Exclusive Branded outlets, 200 multi branded outlets anddepartmental stores Wills Lifestyle rated amongst the top 5 Luxury brands in the country (GlobalLuxury Survey conducted by TIME Magazine) 40 41. Education & Stationery Products Business Leverages print and paper know-how. Forward linkages with new paper capacity (already commissioned). An emerging (currently Rs 9000 cr stationery) market in India - growth driven by increasing cross-cultural exposure, govt. spending on education Mostly commoditized. Offers opportunity for branding Robust distribution network in place to scale up the Stationery business significantly Classmate brand already the most widely distributed brand in India. Scholastic products launched Branded Copier Paper Paperkraft footprint being enhanced. Enthusiastic customer response based on green credentials. Comprehensive portfolio approach with new variant/category launches 41 42. Safety Matches Current industry consumer spend estimated at Rs. 1250 crores p.a. for 24 billion match boxes Fragmented supply base arising from policy of reservation for small scale industry Mass market moving from 0.50 p price point to Re 1.00. ITC markets its brands with value added products across each price point Support SMEs with complementary marketing strengths AIM Indias largest selling Safety Matches brand Successful acquisition of WIMCO Ltd. by Russell Credit Key brands: Homelites, Ship, Cheetah Fight etc.42 43. Incense sticks (Agarbattis) Current industry consumer spend estimated at over Rs. 900 crores p.a. Fragmented supply base arising from policy of reservation for small scale industry ITC markets its brands with value added products across each price point Mangaldeep : second largest national brand in the country Support cottage sector with complementary marketing strengths Provides livelihood opportunities to more than 8000 under privilegedwomen43 44. Personal Care Products Current market size estimated at over Rs. 29000 crores (growing at 12% p.a.) ITC presence established in Body Wash (Soaps, shower gels), Hair Care (Shampoos, conditioner). Product portfolio enlarged with the launch of Fairness cream. Portfolio approach straddling all consumer segments with 4 umbrella brands Essenza Di Wills (Prestige) Fiama Di Wills (Premium) Vivel Di Wills and Vivel (Mid) Superia (Popular) Products well received in the market, gaining customer acceptance Supported by investments in brands celebrity endorsements Investments being made in Research & Development and strategic tax incentivised manufacturing sites44 45. Forward-looking StatementsStatements in this presentation describing the Companys objectives, future prospects, estimates, expectations etc. may be forward looking statementswithin the meaning of applicable securities laws and regulations. Investors are cautioned that forward looking statements are based on certain assumptionsof future events over which the Company exercises no control. Therefore there can be no guarantee as to their accuracy. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differmaterially from those that may be projected or implied by these forward lookingstatements. Such risks and uncertainties include, but are not limited to: growth, competition, acquisitions, domestic and international economic conditionsaffecting demand, supply and price conditions in the various businesses in theCompanys portfolio, changes in Government regulations, tax regimes and otherstatutes, and the ability to attract and retain high quality human resource.45