ITC Limited

1 1 ITC LimitedOne of India s Most Admired and Valuable Companies2 Profile OneofIndia smostAdmiredandValuablecompanies-MarketC apitalisation:~ AUS$8billionenterprisebyRevenue-~58%ofNe tRevenuefromnon-Cigarettesegments LeadingFastMovingConsumerGoods(FMCG)mark eterinIndia-Establishedseveralworld-clas sbrandsinthelast10years 10yearValueAddition~ (US$51billion).75% ITC&itsGroupCompaniesemployover32,000peo pledirectly;Sustainabledevelopmentmodels andvaluechainshavesupportedcreationof~6m illionsustainablelivelihoods Aglobalexemplarinsustainablebusinessprac tices-Onlyenterpriseintheworldofcomparab ledimensionstohaveachievedandsustainedth e3keyglobalindicesofenvironmentalsustain abilityofbeing'waterpositive'(for15years ),'carbonpositive'(for12years),and'solid wasterecyclingpositive'(for10years)33 Overthelast5years ValueAdditionat` ( )and ContributiontotheExchequerat` ( )75% of the incremental Value-Added accrued to the ExchequerITC remains amongst the Top 3 Contributors to Exchequer (pvt.)

2 Sector)4 ITC Performance Track RecordSensex (CAGR 95-96 to 16-17) : Cap and TSR based on FY-end prices for FY96 and FY17Rs. Cagr 95-96 to 16-17 Gross Revenue5,11555, Revenue2,53638, , , Employed 1,88647, ROCE% Capitalisation5,571340, Shareholder Returns % (` crs)5 ITC s rankingAmongst all listed private sector : No. 5 PAT: No. 5 market capitalisation : No. 4 Note: Based on Published Results for Q2FY18, market capitalisation based on 31stDec 20176 ITCrankedasthemostadmiredcompanyinIndiai n2014(Fortune-HayGroupsurvey) Oneoftheforemostintheprivatesectorinterm sof: Sustainedvaluecreation Operatingprofits CashProfits ITCwontheprestigiousPorterPrize2017for'E xcellenceinCorporateGovernanceandIntegra tion'andforitsexemplarycontributionin'Cr eatingSharedValue'.

3 ITCranked3rdamongstleadingcorporatesinIn diaintermsofCorporateReputation(NielsenC orporateImageMonitor2014-15) ITCrankedmostactiveinCSRforthethirdyeari narow(NielsenCorporateImageMonitor2014-1 5)Awards & Accolades (1)7 Awards & Accolades (2) WorldBusinessandDevelopmentAward2012 attheRio+ (2011).ChairmanYCDeveshwarconferredtheIn dianVisionary-BusinessLeaderAwardbyTheEc onomicTimes,forbeingthecountry (BMA).ChairmanYCDeveshwarconferredthepre stigiousBangaBibhushanaward, & Accolades (3)Businessworld FICCI CSR award in Large Enterprise categoryBestOverallCorporateSocialRespon sibilityPerformance.

4 InstituteofPublicEnterpriseAIM Asian CSR Award by the Asian Forum on Corporate Social ResponsibilityRainforestAllianceawardedI TC'sBhadrachalamUnit,theForestStewardshi pCouncilForestManagementcertificationITC H otelsawardedthe MostTrustedHotelbrand inthePublicChoiceHonourscategoryattheTim esTravelHonours9 Recent Awards & Accolades (1)JohnPlayerswontopawardsatGoaFest2016( CreativeABBYA wards)forinnovativeuseofimage/designands ocialmediacontentSunfeast,Bingo!andYippe e!featuredamongtheTop5intheFoodscategory WillsLifestylewasrecognisedatthe2016 DMAiCREATEFFECTA wardsforcreativityin InteractiveExperientialMarketing Vivelfeaturedamongthetop10 Buzziestbrands acrosscategoriesITCnamedIndia's'Buzziest 'Corporatebrandbyafaqs!

5 ,thecountry'sleadingmediaportalVivel, Awards & Accolades (2)ITCL imitedwasrecognisedandfelicitatedasthe CorporateTrailblazer +LeisureIndia&SouthAsia's India'sBestAwards ITCG randBharatwasranked# s Vision Statement12 ITC s Vision Makeasignificantandgrowingcontributionto wards: mitigatingsocietalchallenges enhancingshareholderrewardsBy creating multiple drivers of growthwhile sustaining leadership in tobacco, and focusingon TripleBottomLine Performance EnlargecontributiontotheNation s-Financialcapital-Environmentalcapital- Socialcapital13 Key Corporate Strategies Focusonthechosenbusinessportfolio FMCG;Hotels;Paperboards,Paper&Packaging; AgriBusiness.

6 InformationTechnology Blenddiversecorecompetenciesresidinginva riousBusinessestoenhancethecompetitivepo weroftheportfolio Positioneachbusinesstoattainleadershipon thestrengthofworld-classstandardsinquali tyandcosts Craftappropriate StrategyofOrganisation andgovernanceprocessesto: Enablefocusoneachbusinessand Harnessdiversityofportfoliotocreateuniqu esourcesofcompetitiveadvantage14 Strategy of Organisation3-Tiered Governance Structure15 ITC s Business Portfolio FMCGP aperboards, Paper & PackagingHotelsAgri BusinessInformation TechnologyCigarettesPersonal CareFoodsLifestyle RetailingEducation & StationerySafety Matches & Incense Sticks16 ITC s Cigarettes Business Marketleadership Leadershipacrossallsegments-geographic&p rice State-of-the-arttechnologyandworld-class products17 Cigarette Industry in India Legalcigarettesaccountforonly~11%oftobac coconsumedinIndiaduetoapunitivetaxationa nddiscriminatingregulatoryregime Indiaisthe4thlargestillegalcigarettemark etintheWorld.

7 48% (Source:GlobalAdultTobaccoSurveyIndia201 0) Cigarettes contribute 87% of Tax Revenue, despite constituting only 11% of Tobacco consumptionThecumulativegrowthintaxincid enceoncigarettes,aftercognisingforthelat estincreaseinCessrates,standsatastaggeri ng202%since2011-12, ShareTax Revenue ShareNote: Consumption Share and Tax Revenue Share based on 2014/15 data19 Widening differential in Excise Duty rates between Cigarettes and Other Tobacco Products Onaperkgbasis,thedifferentialinExciseDut yratesbetweencigarettesandothertobaccopr oductshaswidenedfrom29timesin2005/06toov er53timescurrentlySource: Tobacco Institute of India20 Cigarettes are least affordable in India Source.

8 WHO Report on the Global Tobacco Epidemic, 2015-Raising Taxes on Tobacco CigarettetaxesinIndiaare14timeshighertha nUSA,9timeshigherthanJapan,7timeshighert hanChina, Capita Consumption of Tobaccoin India (gms per year) Source:World Cigarettes ERC Statistics, Tob Board& Industry Estimates gms/YrPer Capita consumption is ~60% of World Average22 Per Capita CigaretteConsumption 11% of World averageSource: The Tobacco Atlas -4th Edition(American Cancer Society) Although India accounts for 17% of world population, its share of world cigarette consumption is just Per Capita consumption in India ~11% of World average2323 FMCG Cigarettes Legalcigaretteindustryvolumesremainunder pressure ContinuedgrowthinIllegalindustry CumulativeincreaseintaxincidenceonCigare ttesup~202%overthelast6years Hon bleKarnatakaHighCourtstruckdowntheCOTPA rulesthatmandatedprintingof85%GHWonCigar ettepacksinDec 17.

9 SincestayedbyHon bleSupremeCourt24 Creating world-class brands for Indian Consumers25 Rapid scale up of FMCG businesses(` crs)2626 Annual Consumer Spends of nearly 14000 cr. (FY17)27 Branded Packaged Foods PortfolioBiscuits, Staples, Snacks, Noodles & Pasta, Confectionery, Ready to Eat, Juices, Dairy,Chocolatesand Coffee2828 Fabelle Chocolate Boutiques Fabelle Chocolate Boutique at ITC Grand CholaGanacheGiandujaSingle Origin CacaosFabelle Gift Hamper Fabellecentre-filled chocolate bars29 Branded Packaged Foods: Some recent launches (1)FabelleExquisiteChocolatesMixed Fruit & Dry Fruits JuiceSunfeastDairyWhitenerCandyManClear Candy MangoCandymanCrunchy Peanut CandymanDuochooStrawbery30 Bingo!

10 No RulzSunfeast Farmlite Protein PowerCandyman Cola JoshSunfeastA2 Cow Milk BiscuitsSunfeast Farmlite Digestive (5 Grain)Sunfeast YiPPee! Mood Masala100% Not From Concentrate Pomegranate juiceBranded Packaged Foods: Some recent launches (2)3131 Integrated Manufacturing and Logisticsfacilities An update CivilworksattheIntegratedManufacturingan dLogisticsfacilitiesprogressingaspersche dule PanchlaandKapurthalafacilitiesoperationa lisedinNov 17. CapacityutilisationatUluberia,MysuruandG uwahatifacilitiesbeingrampedup. Care Products Portfoliocomprisefollowingbrands: The Engage EngageON Engagepremiumperfumes.