ITC Limited

1. ITC Limited

7. ITC Q4 05/06 - Key Financials

8. Segment Revenue: Q4 2005/06

9. Segment Results: Q4 2005/06

10. One of the 8 Indian Companies to feature in ‘Forbes A-list’ for 2004 Featuring 400 of the World’s ‘best big companies’ with M-cap. > USD 5 bln. & are rated as the ‘most attractive companies for investors’ Only Indian FMCG Company to feature in Forbes 2000 List A comprehensive ranking of world’s biggest companies measured by a composite of sales, profits, assets & market value Among top in : Sustained value creation (BT-Stern Stewart survey) Operating profits Cash Profits Ranks No. 8 among Indian listed Companies by market cap.(@31/03/06) No. 1 in FMCG Sector; 6th amongst Private Sector Rated as one of India’s Most Respected Companies (IMRB-Businessworld Survey 2006) ITC One of India’s most valuable corporations

11. Accolades & Awards (1) Golden Peacock Global Award for Corporate Social Responsibility in Emerging economies for 2005 by World Council for Corporate Governance for the e-choupal and social & farm forestry initiatives 2005 Golden Peacock Award for Excellence in Corporate Governance ITC Centre,Gurgaon awarded Platinum Green building rating by US Green Building Council -Leadership in Energy and Environmental Design largest Platinum rated building in the world; 7th such building in the world Bhadrachalam paperboard unit : adjudged ‘Greenest paper mill in India’ by The Centre for Science & Environment; won the Greentech Environment Excellence Gold Award ‘John Players’ adjudged the ‘Most Admired Shirt Brand of the Year’ at the Lycra® Images Fashion Awards (LIFA) awards in Jan’06

12. Accolades & Awards (2) e-choupal initiative continues to win 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

13. ITC - Business Portfolio

15. Sustain multiple drivers of growth, matching internal capabilities with emerging market opportunities Pursue World class competitiveness in all businesses and across the entire value chain Best-in-class in terms of: Internal Vitality Market Standing Profitability Strategy of Organisation and Governance processes geared to manage multiple businesses Blend core competencies and leverage ITC umbrella strengths to create new avenues of growth

16. FMCG - Cigarettes

17. ITC’s Cigarettes Business Market leadership Powerful brands across segments Leadership in all segments - geographic & price Extensive distribution network Over 900 wholesale dealers serving more than 1 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. Cigarettes: Growth potential Cigarettes account for only 14% of tobacco consumed in India unlike world pattern of 85% due to prolonged punitive taxation Cigarettes (14% of tobacco consumption) contribute nearly 85% of Revenue 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 : 141 Future growth depends on relative rates of growth of per capita income and moderation in taxes

20. Hotels & Tourism

21. Hotels & Tourism industry Foreign arrivals into India - 3.9 million appx. vs 31 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 India’s luxury rooms availability lower than even smaller East Asian countries

22. Luxury hotel rooms - East Asia

23. Indian hotel industry Current supply – appx. 100000 rooms of which 5 Star category accounts for less than 30% India needs 130000 rooms to service 5 million tourists – a figure expected to be reached by 2007 Present mismatch between supply and demand expected to persist over the short term As infrastructure for trade & commerce improves - growing potential for leisure tourism

24. ITC’s hotel business ITC-Welcomgroup : a leading hotel chain in India Strategy to establish presence in key business locations to complete the chain achieved in end 2004 Over 5200 rooms under 4 distinct brands Fastest growing hotel chain with highest operating efficiency (PBDIT/Net Income @ 41%) amongst the 3 leading chains Leverages unique service proposition and international alliance with Sheraton Large tax advantages on investments on ITC Balance Sheet Attractive medium / long term prospects

25. ITC’s Hotel properties ITC Hotel Maurya Sheraton & Towers,New Delhi ITC Hotel Grand Maratha Sheraton & Towers,Mumbai ITC Hotel Sonar Bangla Sheraton,Kolkata ITC Hotel Grand Central,Mumbai ITC Hotel Windsor Sheraton & Towers,Bangalore ITC Hotel Kakatiya Sheraton & Towers,Hyderabad (thru’ a 68% holding in Srinivasa Resorts Ltd.) ITC Hotel Park Sheraton & Towers ,Chennai (managed property) WelcomHotel Rajputana Palace Sheraton,Jaipur WelcomHotel Chola Sheraton, Chennai WelcomHotel Mughal Sheraton,Agra WelcomHotel,New Delhi WelcomHotel Rama International , Aurangabad WelcomHotel Vadodara (thru’ associate company) WelcomHotel New Delhi WelcomHotel Grand Bay,Visakhapatnam (managed property)

26. ITC’s Hotel Business Manages 15 full service mid-market properties under the Fortune Hotels brand 100% subsidiary company : Fortune Park Hotels Ltd. Also operates 35 properties under the ‘WelcomHeritage’ brand Maharaja Heritage Resorts Ltd. 50% JV with Marudhar Hotels (P) Ltd.

27. Paperboards, Paper&Packaging

28. Indian paperboard market Annual paperboard demand – appx. 1 million tonnes Fragmented capacity & obsolete technology Low per capita usage at 0.75 kg - 1/7th global average Indian paperboard market growing at 7% p.a. Value Added Coated board - the fastest growing segment (20% p.a.) in India driven by the growing sophistication of the consumer

29. Paperboard Demand Projections - Asia Asian region demand (excluding Japan) growing by 0.5 million tonnes per annum This region expected to be a net importer by 2006 Significant export opportunities for high quality Indian manufacturers ITC paperboards exports - Rs. 2 billion appx.

30. ITC’s Paperboards Business Market leader in growth segment - value added coated boards World-class contemporary technology Elemental Chlorine Free (ECF) Pulp Mill fully operational – only one of its kind in India meeting world-class environmental standards Internationally competitive quality and cost Social farm forestry in mill command area to improve access to cost effective fibre & to attain self-sufficiency Biotech research based high yielding Clones – effectiveness tested in about 41,000 hectares Fully integrated operations with in-house pulping capacity at appx. 1.10 lac MT Expansion programme underway; source of sustainable competitive advantage

31. ITC’s Paperboards & Packaging businesses Capacity expansion in recycled segment Acquisition of Kovai Unit in March 2004: +65000 TPA Another 75000 TPA commissioned in Jan. ‘05 ITC’s packaging SBU -India’s largest converter of paperboard into high quality printed packaging Leading supplier to Indian FMCG segment Provides superior packaging solutions to the cigarettes and new FMCG businesses

32. Agri Businesses- Leaf Tobacco- Agri Commodities

33. Indian Leaf Tobacco industry India - the second largest producer of tobacco But, India’s 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 - India’s largest buyer, processor, consumer & exporter of cigarette tobaccos

34. ITC’s Agri Commodity Exports Farm linkages in 14 states covering Soya, Wheat, Rice, Marine products, Edible nuts, Coffee Unique CRM programme in commodity exports Leveraging IT for the transformational ‘e-Choupal’ initiative Rural India’s largest Internet-based intervention Over 36000 villages linked through 6000 e-Choupals servicing over 3.5 million farmers 10 ‘Choupal Sagars’ operational; 9 more to be launched shortly Distinctive sourcing capability for ITC’s Foods business

35. e-Choupal - Recognition World Business Award – ICC-UNDP Enterprise Business Transformation Award -Wharton Infosys Harvard Business School – case study Showcased at ICT4D*, Geneva – UN * Information and Communication Technologies for Development

36. ITC’s strategic thrust Cost-effective extension services to enhance farm productivity and quality, and better align farm produce with requirements of the market, both domestic and international Enhances competitiveness of ITC agri-sourcing Create e-infrastructure to serve as transaction backbone Provides ITC two-way fulfilment capability in and out of rural markets for a range of goods and services Rural marketing initiatives being scaled up progressively

37. Future Growth & Value Capture New FMCG Initiatives

38. Strategic Rationale Blend multiple competencies residing within the ITC Group to create new avenues of growth Best fit between internal capabilities and emerging market opportunities Each segment enhances the depth and width of ITC’s FMCG distribution capability Business model retains critical elements of value chains within ITC with other elements outsourced Contributing to the competitiveness of SMEs

39. FMCG Business InitiativesBranded Packaged Foods Leverages: Unique Agri sourcing skills ITC Welcomgroup’s specialist cuisine & bakery knowledge FMCG distribution synergies ITC R&D Centre,Bangalore 4 chosen categories: Staples Aashirvaad Atta, Salt, Spices Snack Foods Sunfeast Biscuits Confectionery Candyman, mint-o Ready to Eat Kitchens of India, Aashirvaad ReadyMeals, Sunfeast Pasta

40. FMCG Business InitiativesBranded 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 Number of innovative products in the pipeline leveraging the capabilities of the ITC R&D centre

41. FMCG Business InitiativesLifestyle Retailing Leverages trade mark and services expertise of hotels Relaxed wear market growth > 25% p.a Upmarket product range available in exclusive Wills Lifestyle stores and multi-branded outlets/ large format retail stores across the country State-of-the-art Master Facility aids speed of execution Outsourced JIT plant for ‘quick response’ manufacturing Product and brand range being expanded ‘Wills’ range expanded to Formals and Social evening wear segments Strong distribution network in place for the mid-market brand ‘John Players’

42. FMCG Business InitiativesGreetings, Gifting & Stationery Leverages print and paper know-how An emerging market in India - growth driven by increasing cross-cultural exposure ITC’s ‘Expressions’ range commenced with greeting cards; now widened to include stationery & gift wraps Distribution network being strengthened to scale up the Stationery business significantly Serves to expand the width of ITC’s FMCG distribution capability with negligible incremental investment

43. FMCG Business InitiativesSafety 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 ITC markets its brands with value added products across each price point Support SMEs with complementary marketing strengths ‘AIM’ – India’s largest selling Safety Matches brand Successful acquisition of WIMCO Ltd. by Russell Credit (shareholding as at 26th May 2006: 93.66%) Key brands: Homelites, Ship, Cheetah Fight etc.

44. FMCG Business InitiativesIncense 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 Support cottage sector with complementary marketing strengths ‘Mangaldeep’ : the only National brand in the country

45. FMCG business initiatives……. Concurrently, ITC’s IT subsidiary assists in web-enabling business processes CRM initiatives ERP transaction processing systems SCM including the e-choupal capability … hosted on ITC’s Virtual Private Network ITC awarded the best IT user in FMCG category by Nasscom

46. Future Positioning of ITC A leading FMCG player in India

47. Forward-looking Statements