1. A Journey that Enduring VALUE …

2. TEAM MEMBERS MANENDRA SHUKLA RAHUL JOSHI RICHA SRIVASTAVA SHIV BALAK GIRI

3. One of India’s Most “Valuable” Corporation

6. 1910 THE CHRONOLOGY OF SUCCESS BY ITC was incorporated on August 24, 1910. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. 1925 In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation 1975 In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India 1979 In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. 2002 In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). 1985 In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry 1990 in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters 1990 ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers 2000 In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. 2000 A line of premium range of notebooks under brand “ Paperkraft ” was launched in 2002 its offering and to reach a wider student population 2002 The popular range of notebooks was launched under brand “ Classmate ” in 2003. “ Classmate ” over the years has grown to become India ’ s largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag 2003 In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India ’ s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. 2000 ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, 2000 In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry 2006 Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “ Classmate ” brand. In 2008 ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the “ Paperkraft ” Brand. “ Paperkraft ” offers a diverse portfolio in the premium executive stationery and office consumables segment 2007-09 Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. 2009 2002 In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative 2002 ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005 2005 Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively 2007 Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008 2008 2003 2009 …… Recently Company has introduce another Series of Classmate, i.e “CLASSMATE-VICTOR” (a Geometry Box, MRP Rs. 45) AND THE JOURNEY CONTINUES…..

7. BOARD OF DIRECTORS NON-EXECUTIVE DIRECTORS Anil Baijal R K Kaul S H Khan S B Mathur D K Mehrotra H G Powell P B Ramanujam Anthony Ruys Basudev Sen B Vijayaraghavan CHAIRMAN Y C Deveshwar Anup Singh EXECUTIVE DIRECTORS K Vaidyanath Chairman of the Board from January 1, 1996 Anup Singh-Director on the Board of ITC from November 21, 1997 K Vaidyanath-Director on the Board of ITC from January 17, 2001

9. The ITC Vision The ITC Mission To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders

10. ITC - Business Portfolio ITC HOTELS FMCG: Cigarettes Other FMCG Agri Business Leaf Tobacco Agri Commodities Paperboard Paper & Packaging

14. HUMAN RESOURCES THE SMALLEST SEED OF FAITH IS BETTER THAN THE LARGEST FRUIT OF HAPPINESS

23. POSITION OF THE COMPANY FROM 2006 TO 2009

24. SALES REVENUE SALES (IN CRORES) YEAR AMOUNT 2009 15,582.73 2008 13,947.53 2007 12,369.30 2006 9,790.53

25. SEGMENTWISE REVENUE SEGMENTWISE REVENUE (IN CRORES) 2009 2008 A. FMCG- Cigarettes 7,557 6,635 - Others 3,050 2,510 TOTAL FMCG 10,607 9,145 B. HOTELS 985 1,012 C. AGRI-BUSINESS 3,896 3,868 D. PAPERBOARDS, PAPER & PACKAGING 2,697 2,158 TOTAL 18,185 16,183 LESS: Inter Segment Revenue 2,603 2,235 SALE 15,582 13,948

26. TOTAL ASSETS Rs. (IN CRORES) YEAR TOTAL ASSETS 2009 13,857 2008 12,216 2007 10,581 2006 9,122

27. PROFIT AFTER TAX Rs.(IN CRORES) YEAR PAT 2009 3,183 2008 2,966 2007 2,662 2006 2,259

28. SHAREHOLDER’S FUND Rs. (IN CRORES) YEAR RESERVES & SURPLUS SHARE CAPITAL 2009 13,302 377 2008 11,624 377 2007 10,003 376 2006 8,626 375

29. CURRENT RATIO Year CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO Rs (in crores) 2009 8,450 5,862 1.44 2008 7,306 5,265 1.39 2007 6,281 4,585 1.37 2006 5,228 4,126 1.27

30. EARNING PER SHARE & DIVIDEND PER SHARE YEAR EPS (Rs.) DPS (RS.) 2009 8.65 3.70 2008 8.28 3.50 2007 7.18 3.10 2006 5.95 2.65

31. RETURN ON INVESTMENT 36.91 9,122 3,367 2006 37.84 10,581 4,004 2007 36.26 12,216 4,430 2008 35.52 13,858 4,923 2009 ROI(%) CAPITAL EMPLOYED EBIT YEAR IN CRORE

32. POSITION OF ITC LTD. FROM-SEP O8’ TO AUG O9’ ON NSE

33. PROFIT & LOSS ACCOUNT (IN CRORES) MAR' 09 MAR' 08 MAR' 07 MAR'06 INCOME: OPERATING INCOME 14,985.81 14,032.20 12,313.83 9,798.33 EXPENSES: MATERIAL CONSUMED 6,233.67 6,275.33 5,484.52 4,130.04 MANUFACTURING EXP 481.16 383.42 318.32 295.25 PERSONAL EXPENSES 903.37 745 630.15 541.4 SELLING EXPENSES 1,024.94 1,044.40 803.29 627 ADMINISTRATIVE EXP. 1,492.21 1,266.57 1,116.23 853.39 EXPENSES CAPITALISED -72.55 -112.75 -42.52 -15.78 COST OF SALES 10,062.80 9,601.97 8,309.99 6,431.30 OPERATING PROFIT 4,923.01 4,430.23 4,003.84 3,367.03 OTHER RECURRING ITEMS 422.8 479.82 300.14 273.22 ADJUSTED PBDIT 5,345.81 4,910.05 4,303.98 3,640.25

34. PROFIT & LOSS ACCOUNT (IN CRORES) FINANCIAL EXPENSES 47.65 24.61 16.04 21.1 DEPRECIATION 549.41 438.46 362.92 332.34 OTHER WRITE-OFFS - - - - ADJUSTED PBT 4,748.75 4,446.98 3,925.02 3,286.81 TAX CHARGES 1,565.13 1,480.97 1,263.07 1,027.57 ADJUSTED PAT 3,183.62 2,966.01 2,661.95 2,259.24 NON RECURRING ITEMS 2.42 36.68 -23.92 -70.02 OTHER NON-CASH ADJUSTMENTS 81.52 117.41 61.94 46.13 REPORTED NET PROFIT 3,267.56 3,120.10 2,699.97 2,235.35 EARNINGS BEFORE APPROPRIATION 3,992.01 3,767.63 3,262.03 2,846.76 EQUITY DIVIDEND 1,396.53 1,319.01 1,166.29 995.12 PREFERENCE DIVIDEND - - - - DIVIDEND TAX 237.34 224.17 198.21 139.58 RETAINED EARNINGS 2,358.14 2,224.45 1,897.53 1,712.06 MAR' 09 MAR' 08 MAR' 07 MAR‘06

35. BALANCE SHEET (IN CRORES) MAR' 09 MAR' 08 MAR' 07 MAR' 06 SOURCES OF FUNDS OWNERS FUND: EQUITY SHARE CAPITAL 377.44 376.86 376.22 375.52 SHARE APPLICATION MONEY - - - - PREFERENCE SHARE CAPITAL - - - - RESERVE AND SURPLUS 13,302.55 11,624.69 10,003.78 8,626.79 LOAN FUNDS: SECURED LOANS 11.63 5.57 60.78 25.91 UNSECURED LOANS 165.92 208.86 140.1 93.82 TOTAL 13,857.54 12,215.98 10,580.88 9,122.04

36. BALANCE SHEET MAR’09 MAR’08 MAR’07 MAR’06 APPLICATION OF FUNDS (IN CRORES) FIXED ASSETS: GROSS BLOCK 10,558.65 8,959.70 7,134.31 6,227.17 LESS: REVALUATION RESERVE 55.09 56.12 57.08 59.17 LESS: ACCUMULATED DEPRICIATION 3,286.74 2,790.87 2,389.54 2,065.44 NET BLOCKS 7,216.82 6,112.71 4,687.69 4,102.56 CAPITAL WORK-IN-PROGRESS 1,214.06 1,126.82 1,130.20 399.97 INVESTMENTS 2,837.75 2,934.55 3,067.77 3,517.01 NET CURRENT ASSETS: CURRENT ASSETS, LOANS & ADVANCES 8,450.99 7,306.99 6,281.07 5,228.49 LESS: CURRENT LIABILITIES & PROVISION 5,862.08 5,265.09 4,585.85 4,125.99 TOTAL NET CURRENT ASSETS 2,588.91 2,041.90 1,695.22 1,102.50 MISC. EXPENSES NOT WRITTEN - - - - TOTAL 13,857.54 12,215.98 10,580.88 9,122.04

37. MAR ' 09 MAR ' 08 MAR ' 07 MAR ' 06 LIQUIDITY RATIOS: CURRENT RATIO 1.44 1.39 1.37 1.27 CURRENT RATIO (INC. ST. LOANS) 1.42 1.36 1.33 1.25 QUICK RATIO 0.60 0.56 0.58 0.57 INVENTRY TURNOVER RATIO 5.26 5.51 6.05 6.43 PROFITABILITY RATIOS: OPERATING MARGIN(%) 32.85 31.57 32.51 34.36 GROSS PROFIT MARGIN(%) 29.18 28.44 29.56 30.97 NET PROFIT MARGIN(%) 21.18 21.5 21.4 22.19 REPORTED RETURN ON NET WORTH(%) 23.85 25.99 26.01 24.83 LEVERAGE RATIOS: LONG TERM DEBT / EQUITY 0.01 0.01 0.01 0.01 TOTAL DEBT / EQUITY 0.44 0.46 0.46 0.47 OWNERS FUND AS % OF TOTAL SOURCE 98.71 98.24 98.1 98.68 FIXED ASSETS TURNOVER RATIO 1.44 1.59 1.75 1.59 RATIO ANALYSIS

38. MAR ' 09 MAR ' 08 MAR ' 07 MAR ' 06 PAYOUT RATIOS: DIVIDEND PAYOUT RATIO (NET PROFIT) 50.06 49.45 50.53 50.76 DIVIDEND PAYOUT RATIO (CASH PROFIT) 42.84 43.36 44.54 44.19 EARNING RETAINTION RATIO 48.68 47.98 48.75 49.78 PER SHARE RATIOS: REPORTED EPS (Rs.) 8.65 8.28 7.18 5.95 DIVIDEND PER SHARE (Rs.) 3.70 3.50 3.10 2.65 BOOK VALUE PER SHARE (Rs.) 36.24 31.85 27.59 23.97 RATIO ANALYSIS

40. MARKETING

43. Segmentation Geographic: • Rural • Urban Demographic: • Age • Gender • Occupation Psychographic: • Lifestyle

50. Market Share of ITC Ltd. Outstanding market leader Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. Gaining market share Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.

53. Direct marketing:- Sign boards, posters at shops on point of sale Delivery vans Sales force PROMOTION

54. 7’S OF ITC • STRATEGY • STRUCTURE • SYSTEM • STYLE • SKILLS • STAFF • SHARED VALUES

55. COMPETITOR ANALYSIS The cigarette market in India has 3 players • Godfrey Phillips India (GPI), a Philip Morris affiliate,13% of market share • Vazir Sultan Tobacco (VST), a BAT affiliate, 13% of the total market share • Golden Tobacco Company (GTC) with 8% of the market share. Domestic competitors • Kanhayya tobacco • MR tobacco • Sapna enterprises • Sudarshan tobacco ITC still attains a gigantic market share of 66%

56. SPANCOP • S:- Suspect who can buy our product • P:- Prospect the chances and needs for which customers may buy the product • A:- Approach the prospect with the USP’s of our product • N:- Negotiate the deal for the product • C:- Closing of deal • O:- Get the order • P:- Payment follow up MARKETING STRATEGY BY

59. e-Choupal is an initiative of ITC Limited to link directly with rural farmers for procurement of agricultural / aquaculture produce like soybeans, wheat, coffee, etc. e-Choupal is distributed transaction platform that brings together sellers, buyers along with information and service providers. e-Choupal is an ICT platform for carrying out trade at a number of locations ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families. ITC's businesses generate livelihoods for over 5 million PEOPLE.

60. Evolving along with emerging changes through efficient utilization of available resources, thus maintaining sustainability Acting proactively by enhancing capabilities to fulfill the future needs. MORALE OF THE STORY