ITC Limited

1. ITC Limited

9. Segment Revenues - H1 FY ‘05

10. Segment Results- H1 FY ‘05

11. Capital Employed-H1 FY ‘05

12. One of India’s most valuable corporations Included in the ‘Forbes A-list’* featuring 400 of the World’s “best big companies” Among top in : Sustained value creation Operating profits Cash Profits High rating for Corporate Governance First company in India to be CG rated * Sales or Market Cap. of US$ 5 billion or more ITC

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.11 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 one tenth world average : 117 Future growth depends on relative rates of growth of per capita income and moderation in taxes

19. Annual Per Capita Adult Cigarette Consumption

20. Hotels & Tourism

21. Hotels & Tourism industry Foreign arrivals into India - 3 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 - 80,000 rooms of which 5 Star category accounts for less than 30% To support GDP growth of 6% p.a., Indian room capacity needs to double in five years 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 One of three chains in India Immediate strategy to establish presence in key business locations to complete the chain expected to be achieved by end 2004 Revenue leadership in most locations Leverage unique service proposition and international alliance with Sheraton Large tax advantages on investments on ITC Balance Sheet Attractive medium / long term prospects

25. Amalgamation Board meeting on 25th August 2004 approved scheme of amalgamation for merger of ITC Hotels and Ansal Hotels with ITC Merger ratios: 3 shares of ITC for 25 shares of ITC Hotels 1 share of ITC for every 150 shares of Ansal Hotels Proposed date of merger: 1st April 2004, subject to High Court/other approvals

26. ITC’s Hotel Properties & Projects ITC Ltd ITC Hotels Ltd Maurya Sheraton, New Delhi ITC One, New Delhi Grand Maratha, Mumbai Sonar Bangla, Kolkata Grand Central, Mumbai (Project) Ansal Hotels Ltd. (81.5%) Windsor Manor, Bangalore Rajputana Palace, Jaipur Mughal, Agra (Licensed) Chola, Chennai (Licensed) Park, Chennai (Managed) Vadodara (Licensed)

27. Other Hotel Properties - ITC Hotels Ltd. Srinivasa Resorts (68% shareholding) Bay Island Hotels (100% shareholding) Fortune Park Hotels (100% shareholding) Marudhar Hotels (50% shareholding) Kakatiya, Hyderabad Bay Island, Port Blair Manages mid-segment hotels Manages Heritage hotels

28. Paperboards, Paper&Packaging

29. Indian paperboard market Annual paperboard demand - 0.90 million tonnes Fragmented capacity & obsolete technology Low per capita usage at 0.75 kg - 1/7th global average Indian paperboard market growing at 6 -7% p.a. Value Added Coated board - the fastest growing segment (20% p.a.) in India driven by the growing sophistication of the consumer

30. 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 2005 Significant export opportunities for high quality Indian manufacturers ITC paperboards exports - Rs. 1 billion

31. ITC’s Paperboards Business Market leader in growth segment - value added coated boards World-class contemporary technology Elemental Chlorine Free (ECF) Pulp Mill commissioned – 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 24,000 hectares Pulping capacity enhanced by 100,000 MT to strengthen competitiveness

32. ITC’s Paper & Packaging businesses Capacity expansion in recycled segment Acquisition of Kovai Unit in March 2004: +65000 TPA Another 75000 TPA to be commissioned by Q3 2004 ITC’s packaging SBU -India’s largest converter of paperboard into high quality printed packaging Leading supplier to Indian FMCG segment

33. Agri Businesses- Leaf Tobacco- Agri Commodities

34. Indian Leaf Tobacco industry India - the second largest producer of tobacco But, Indian exports constitutes mere 0.7% of the value of world trade in tobacco 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

35. 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 22000 villages linked through 4700 e-Choupals servicing more than 2.8 million farmers First rural mall christened ‘Choupal Sagar’ opened in M.P Distinctive sourcing capability for ITC’s Foods business

36. e-Choupal - Recognition World Business Award – ICC-UNDP Enterprise Business Transformation Award -Wharton Infosys Harvard Business School – case study Showcased at ICT4D, Geneva – UN

37. 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

38. Future Growth & Value Capture New FMCG Initiatives

39. 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

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

41. 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 ; very encouraging response in launch markets ;distributed & outsourced supply chain being ramped up Number of innovative products in the pipeline leveraging the capabilities of the ITC Group R&D centre

42. 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’

43. FMCG Business InitiativesGreetings & Gifts 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 Serves to expand the width of ITC’s FMCG distribution capability with negligible incremental investment

44. FMCG Business InitiativesSafety Matches Current 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

45. FMCG Business InitiativesIncense sticks (Agarbattis) Current 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 All India roll out of ‘Mangaldeep’ umbrella brand under way

46. 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

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

48. Forward-looking Statements

50. Segment Revenue Q1 2004/05

51. Segment Results Q1 2004/05

52. Segment Capital Employed Q1 2004/05