#1Godrej | CONSUMER PRODUCTS Godrej aer cool matic surf blue Q2FY2023 Investor and Analyst Performance Update SPRAY ST 2200 GUARANTEED 8 November, 2022 Gowns der Goove der OPEN Mins. <-10 <-20 <-40 O OFF#2Disclaimer Some of the statements in this communication may be forward looking within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company's operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation, and labour relations. 2#3Our purpose and strategy Purpose Business aspiration Environmental, social, and governance (ESG) Bring the goodness of health and beauty to consumers in emerging markets Drive penetration-led volume growth through category development Become sustainability leaders, influence sustainable consumption, and drive social impact 3#4KEY HIGHLIGHTS#5Steady Sales growth of 7% (3-year CAGR 9%); Sales growth, excluding hygiene in Indonesia, at 10% Consolidated 7% (8% CC) Sales growth 3-year CAGR 9% (9% CC) India Sales growth 8% 3-year CAGR 9% Consolidated EBITDA growth (15)% 1 Underlying Volume Growth: Consolidated -5% year-on-year; 3-year CAGR 1% Standalone -5% year-on-year; 3-year CAGR 1% 2 Steady growth in India 8% (3-year CAGR 9%), Africa, USA & Middle East 13% CC (3-year CAGR 13%) and Latin America & SAARC 34% CC (3-year CAGR 30%); Indonesia (11)% CC (3-year CAGR -4%); Indonesia growth ex-hygiene 8% CC 3 Consolidated EBITDA margins at 17.1% (15% degrowth); margins decrease by 450 bps year-on-year EBITDA + working media margins decrease 200 bps (1% degrowth) Quality of profits improving, driven by sequential recovery in Gross Margin; witnessed lower year-on-year drop in Gross Margin sequentially (decreased by 200 bps in Q2FY23 from 560 bps in Q1FY23). In line with our strategy to drive category development, significant increase in working media investment (increased by 250 bps; 69% growth). Note: CC Constant Currency LO 5#6FINANCIAL PERFORMANCE UPDATE#7Q2 FY2023: Financial performance Growth (year-on-year) Net Sales (Reported) Consolidated Business India Business 7% Net Sales (Constant Currency) 8% EBITDA EBITDA + Working Media Net Profit (Reported) 8% (15%) (5%) (1%) 9% (25%) (8%) Net Profit (Without exceptional and one-off items) (21%) (4%) 7#8Q2 FY2023: Exceptional and One-off Items Consolidated Business Net Profit (Reported) Exceptionals (Post tax) Restructuring cost in Latin America and Indonesia Q2 FY2023 Q2 FY2022 359 479 3.8 1.4 Deferred Tax - Change in maximum marginal tax rate in India 0.1 (0.1) Settlement under VAT amnesty scheme in India Net Profit (Without exceptional and one-off items) Note: All values are in ₹ crore and rounded off 14.6 377 480 8#9Q2 FY2023: Steady growth in India (3-year CAGR 9%), Africa, USA & Middle East (3-year CAGR 13% CC); Indonesia growth ex-hygiene 8% CC Constant Geography India Indonesia Indonesia Ex-hygiene Sales (* crore) Growth (Year-on-year) Currency Growth (Year-on-year) 1,953 8% 408 (8)% (11)% 12% 8% Africa, USA and Middle East 857 15% 13% Latin America and SAARC Total Net Sales Note: Total Net Sales includes the impact of contra and inter company eliminations 172 (1)% 34% 3,364 7% 8% 9#10Q2 FY2023: Bridge between Reported and Operating EBITDA Q2FY23 Reported EBITDA Margin India Indonesia Africa, USA & Middle East Latin America & SAARC 21.9% 16.8% 8.6% 1.6% Business support charges, Royalty & Technical fees (₹ crore) (5.9) 1.2 4.9 (0.2) Q2FY23 Operating EBITDA Margin 21.6% 17.1% 9.2% 1.5% Q2FY22 Operating EBITDA Margin 24.6% 26.4% 11.9% 16.0% Change in EBITDA Margin (bps) (300) (930) (270) (1,450) Change in EBITDA + Working Media Margin (bps) 30 (810) (130) (1,320) 10#11Q2 FY2023: Net Debt to Equity continues to improve; Focus on significant inventory reduction and debtors realisation 53 Core Net Working Capital (Days) Net Debt/Equity (x) 0.04 18.5% Sept-21 Sept-21 ROE* 46 Sept-22 ROCE* 20.1% 15.5% 12.1% Sept-22 Sept-21 *Excluding MAT credit entitlement, one-time deferred tax and other one-time exceptions to net profit Sept-21 -0.07 Sept-22 Operating ROCE* 56.8% Sept-22 Sept-21 41.7% ==#12INDIA BUSINESS UPDATE#13• • Steady sales growth Financial performance Sales growth of 8% driven by pricing; 3-year CAGR of 9% EBITDA margins in India at 21.6%; contracted by 300 bps year-on- year, Quality of profits improving driven by sequential recovery in Gross Margin; witnessed lower year-on-year drop in Gross Margin sequentially (decreased by 60 bps in Q2FY23 from 660 bps in Q1 FY23). In line with our strategy to drive category development, significant increase in working media investment (increased by 330 bps; 79% growth). . Operating performance Strong growth momentum in Personal Care continues; steady performance in Home Care With significant correction in commodities like palm oil derivatives and crude oil, we expect recovery in consumption, gross margins expansion and upfront marketing investments in the upcoming quarters. Sales growth -5% 13% 8% UVG UPG USG USG: Underlying Sales Growth; UPG: Underlying Pricing Growth; UVG: Underlying Volume Growth EBITDA Growth 9% -5% EBITDA + Working Media 13#14Strong momentum in Personal Care; steady performance in Home Care Category Home Care Personal Care Unbranded and Exports Total Net Sales Volume Growth Sales (* crore) 869 Q2 Growth (Year-on-year) 2% 1,017 18% (26)% 67 1,953 8% | (5)% 14#15• • Home Care (1/2): Continued seeding of category development initiatives Household Insecticides performance impacted by a delayed monsoon in the Eastern and Northern parts of India • Continue to deepen penetration In line with our strategy of driving category development, we launched new communications around HIT CIK and HIT Anti-roach Gel Non-mosquito portfolio (~20% salience) continues strong growth momentum • Premium aerosol portfolio (~35% salience) continues to grow in double digits Fresh Fragrance 50 HIT HIT 15#16• • • Home Care (2/2): Strong performance in Air Fresheners Air Fresheners continue to witness strong growth and gain market share on MAT basis Our category development initiative and communication around 'If bathrooms/rooms could talk' is receiving encouraging consumer response Continued investment and festive activations to drive relevance সুগন্ধি ঘরের জন্য Automatic spray giory aer matic der Automatic spray for Giend ger atic fragrant rooms. stivities with Godrej aer! 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Now colour your hair in just *15* NEW natural black 1.00 crème hair colour Goore expert rich crème long lasting colour | 100% grey coverage ultra soft deep shine no ammonia NEW 15 goory expert natural brown 4.00 crème hair colour 15 mini mini, pack pack 10x aloe vera rich crème long lasting colour 100% grey coverage 10x ultra soft deep shine | no ammonia aloe vera 18#19INTERNATIONAL BUSINESS UPDATE#20Weak performance in Indonesia; recovery in core business on track • Sales dropped by 11% (constant currency); Sales growth excluding Hygiene (Saniter) was 8% (constant currency) ⚫ EBITDA margins at 17.1%, decreased by 930 bps year-on-year due to consumption of high-cost inventory, upfront higher marketing investments, high hygiene comparator and scale deleverage Continue to put building blocks in place to drive category development and general trade distribution expansion HIT Good XPRESS knight AC9LY Good HIT XPRESS kowight Paket Alat+Reti hanya Rp. 20.000 Hit Goodknight electric - device and refill at only IDR 20K 151#21• Africa, USA & Middle East continued double-digit sales growth momentum Continued momentum; double-digit sales growth of 13% (constant currency) EBITDA margins at 9.2%; contracted by 270 bps year-on-year. Quality of profits improving. In line with our strategy to drive category development, significant increase in working media investment (increased 140 bps; ~54% growth) across Dry Hair and FMCG. Dry Hair category (that comprises more than half of the business) and FMCG category both grew in double digits Strong sales growth momentum continues in Southern Africa and West Africa Godrej Good knight 2x Good knight POWER ACTIV+ Electric Liquid Mosquito Repellent : 2x QUAL POWER SYSTEM 1MACHINE+1REFILL INYCHME POWER ACTIV 50% MORE POWER 20 20#22ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE#23Our ESG targets for FY2025 and Q1 FY2023 performance Environment* Vision Influence sustainable consumption Goals for FY2025 Ensure efficient waste management systems for 3 municipalities in India impacting 3 million people Performance update Community waste management project ongoing in 1 municipality. Achieved 20% source segregation through door-to-door collection. Processing ~500 kg/day waste at the sanitation park. Achieve Sustainable Packaging targets - 20% intensity reduction; 10% post consumer recycled plastic (this target will be revised based on the new, more stringent plastic use guidelines); 100% reusable, recyclable and compostable packaging. . Ensure one-third of all products are greener than in 2020 by carrying out lifecycle assessments (LCA) for major products (80% coverage by revenue) Cover 75% of GCPL suppliers in India (by procurement spends), and 50% for our other geographies, under our sustainable supply chain policy. 3.5% virgin plastic replaced with PCR 6% reduction in plastic intensity Completed LCAs of 7 products that cover over 50% of our revenues 72% of India suppliers (by spend volume) covered under our sustainable supply chain policy and are being assessed • Source 100% of paper packaging from sustainable sources. Partner with consumers and customers to promote sustainable consumption of our green products Note: *India targets reported. We have similar targets for international locations. 23#24Our ESG targets for FY2025 and Q1 FY2023 performance Environment* Vision Goals for FY2025 Performance update Lead in sustainability action 45% reduction in GHG emission intensity (to be revised based on SBTi) and carbon neutrality for Scope 1 & 2 from FY11 baseline 40% reduction in specific energy consumption from FY11 baseline Achieve 35% renewables in energy mix Maintain 40% reduction in water intensity while maintaining water positivity Achieve zero liquid discharge and maintain zero waste to landfill Announce our commitment towards the global Science Based Targets initiative (SBTi) and publish our roadmap and targets for emissions reduction 49% reduction in GHG emission intensity 41% reduction in specific energy consumption 27% of energy is from renewables 26% reduction in water intensity and continuing to be water positive Continue to be zero waste to landfill SBT emissions reduction targets and roadmap have been created and submitted to SBTi Achieve 100% EPR compliance Note: *India targets reported. We have similar targets for international locations. On track 24#25Our ESG targets for FY2025 and Q1 FY2023 performance Social* Vision Equip communities with skills that empower Goals for FY2025 Empower 200,000 women in beauty skills, across emerging markets globally Performance update Trained and upskilled 6,443 women beauty entrepreneurs, young girls, and men in India and Africa in hair styling skills and enterprise development. As part of our Salon-i programme with young girls, we reported an average income increase between 23-35%. Improve health and well-being Strengthen public healthcare systems in 3 states. in India Protect 30 million people against vector-borne diseases Due to efforts made by the Madhya Pradesh state government, along with assistance from our EMBED programme, there has been a 96% decline in malaria cases from 2015 to 2021, with infection rates declining to below one case per 1,000 people. Madhya Pradesh has become a Category 1 state from Category 3 and is one of the top 10 states with low malaria cases. EMBED's contribution has been formally acknowledged by the Health Minister of Madhya Pradesh, Dr Prabhuram Choudhary. On track and reached out to over 11.5 million people. In Q1, we covered 1,108 villages. By the end of FY 23, ~30% of 778 villages will be malaria free. 25#26APPENDIX#27Shareholding pattern DII 6.3% FII 24.4% Others 6.1% Promoters 63.2% First State Blackrock Vanguard Others Temasek UTI Arisaig Partners Government Pension Fund Global Government of Singapore Capital Group Kotak 27#28Contact Us Institutional investors Tapan Joshi Email: [email protected] Tel: +91 22 2519 5433 Retail investors R Shivshankar Email: [email protected] Tel: +91 22 2519 4359 28#29YouTube Thank you www.godrejcp.com Linked in