#1Godrej | CONSUMER PRODUCTS Q1FY2023 Investor and Analyst Performance Update 3 August, 2022 1 ADD 165ml potable water till the given mark 2 POUR the magic formula mac -- Georg magic READY TO MIX BODY WASH COMBI PACK Manufactured by: Godrej Katha HP-173206, IL No. HIMICOS 0667 Marketed by "Registered Address"/ Consumer Feedback Manager (Consumer Relations) "Godrej Consumer Products Limited Godrej ore, Vikhroli East Mumbai 400 079,India 7:18002660007 E: caregodrejcp.com Trademark Owner Patent Pending NET CONTENT: g Combi Pack-1 Rell+1 Bo Ve before -24 months from date of PHD. Nice Pack once opened should be consumed fully 8. No: B MRP inclusive of all taxed Godrej COMBI PACK ₹65/- magic READY TO MIX BODY WASH Packed on see the side 3 SHAKE* vigorously for 1-2 min. After 30 min, shake again" Goord magic READY TO MIX BODY WASH LAVENDER & 901023 028939 til the given matk GOV CH ON A * a) OU Godrej refill *45/- magic READY TO MIX BODY WASH 1 BOTTLE +1 REF LAVENDER MAKES 200ml ыбош MAKES 200ml LAVENDER#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 8% (3-year CAGR 10%) Consolidated 8% (9% CC) Sales growth 3-year CAGR 10% (11% CC) India Sales growth 12% 3-year CAGR 12% Consolidated EBITDA growth (13)% 1 Underlying Volume Growth: 2 Consolidated -5% year-on-year; 3-year CAGR 3% Standalone -6% year-on-year; 3-year CAGR 4% Note: CC Constant Currency Steady growth in India 12% (3-year CAGR 12%), Africa, USA & Middle East 12% CC (3-year CAGR 11%) and Latin America & SAARC 15% CC (3-year CAGR 28%); weak performance in Indonesia (12)% CC (3-year CAGR -2%) 3 Consolidated EBITDA margins at 17.2% (13% degrowth); margins decrease by 420 bps year-on-year; EBITDA + working media margins decrease 290 bps (5% degrowth) LO 5#6FINANCIAL PERFORMANCE UPDATE#7Q1 FY2023: Financial performance Growth (year-on-year) Net Sales (Reported) Consolidated Business India Business 8% 12% Net Sales (Constant Currency) 9% EBITDA EBITDA + Working Media Net Profit (Reported) (13%) (4%) (5%) 3% (17%) (2%) Net Profit (Without exceptional and one-off items) (16%) (2%) 7#8Q1 FY2023: Exceptional and One-off Items Consolidated Business Net Profit (Reported) Exceptionals (Post tax) Restructuring cost in Latin America Deferred Tax - Change in maximum marginal tax rate in India Net Profit (Without exceptional and one-off items) Note: All values are in 3 crore and rounded off Q1 FY2023 Q1 FY2022 345 414 1.6 1.8 (0.1) (0.2) 347 415 8#9Q1 FY2023: Steady growth in India (3-year CAGR 12%), Africa, USA & Middle East (3-year CAGR 11% CC); weak performance in Indonesia (3-year CAGR -2% CC) Geography Constant Sales (* crore) Growth (Year-on-year) Currency Growth (Year-on-year) India Indonesia 1,814 12% 376 (9)% (12)% Africa, USA and Middle East 779 12% 12% Latin America and SAARC Total Net Sales Note: Total Net Sales includes the impact of contra and inter company eliminations 151 (5)% 15% 3,094 8% 9% 9#10Q1 FY2023: Bridge between Reported and Operating EBITDA Q1FY23 Reported EBITDA Margin India Indonesia Africa, USA & Middle East Latin America & SAARC 22.9% 15.0% 7.7% 1.0% Business support charges, Royalty & Technical fees (₹ crore) (6.8) 1.2 5.1 0.5 Q1FY23 Operating EBITDA Margin 22.5% 15.3% 8.3% 1.4% Q1FY22 Operating EBITDA Margin 26.3% 23.4% 9.9% 13.6% Change in EBITDA Margin (bps) (380) (810) (160) (1,220) Change in EBITDA + Working Media (250) (720) (60) (1,020) Margin (bps) 10#11INDIA BUSINESS UPDATE#12• Steady sales growth Financial performance Sales growth of 12% driven by pricing; 3-year CAGR of 12% • • EBITDA margins in India at 22.5%; contracted by 380 bps year-on- year, driven by a gross margin decline of -660 bps (due to higher commodity inflation); increase in Working Media by ~140 bps to drive category development and mitigated through reduction in controllable costs by ~450 bps (Employee Benefit Expenses by ~230 bps and Other Expenses by ~230 bps). With inflationary pressures abating, we expect recovery in consumption and gross margins alongside continued higher marketing investments with a significant focus on reducing controllable costs. Sales growth -6% 18% UVG UPG • • Operating performance Strong growth momentum in Personal Care continues; soft performance in Home Care Gaining shares in ~90% of our categories 12% EBITDA USG USG: Underlying Sales Growth; UPG: Underlying Pricing Growth; UVG: Underlying Volume Growth -4% Growth 3% EBITDA + Working Media 12#13Strong momentum in Personal Care; soft performance in Home Care Category Home Care Personal Care Sales (* crore) Q1 Growth (Year-on-year) 2-year CAGR 663 (4)% 8% 1,088 25% 21% Unbranded and Exports 63 (6)% 19% Total Net Sales Volume Growth 1,814 12% 16% | (6)% 4% 13#14Good knight • • • Home Care (1/2): Continued seeding of category development initiatives Household Insecticides delivered a soft performance on the back of a relatively muted season and high base Continue to deepen penetration; gained market share on MAT basis In line with our strategy of driving category development, we launched new communications: Goodknight liquid vaporiser #NeendoKoNazarNaLage and HIT Non-mosquito portfolio continues strong growth momentum with double-digit sales growth S NEW Good knight GOLD" FLASH VISIBLE VAPOURS AUTOMATICALLY Good knight B HIT मच्छरों का अंत तुरंत NEW 50 HIT OF FOR MOSQUITOES AND FLIES COMBI PACK GOLD FLASH LIQUID VAPORISED KILLS DENGUE KILLS MALARIA 14#15Home Care (2/2): Strong performance in Air Fresheners • Air Fresheners witnessed strong growth driven by category uptick; 2-year CAGR in double digits. • Gained market share on MAT basis . • Our category development initiative around driving relevance for Aer Power Pocket and premiumisation through Aer Matic ('If bathrooms/rooms could talk') is receiving encouraging consumer response Continued investment in digital to drive relevance An automatic room freshener that sprays fragrance every 10, 20 or 40 minutes. Goerd aer If rooms could talk, they'd ask for Godrej aer. matic HE Godrej aer If bathrooms could talk, they'd ask for Godrej aer. power pocket Goord aer power pocket 6 amazing bathroom fragrances that last up to 30 days.*#16Personal Care (1/2): Double-digit growth in Personal Wash & Hygiene continues • Personal Wash & Hygiene continued momentum with double-digit sales growth; 2-year CAGR in double digits. ⚫ Continue to gain market share on MAT basis and deepen penetration in Soaps led by category development initiatives • · Leveraging digital platforms; Cinthol's 'Alive Is Awesome' campaign yields positive results Magic powder-to-liquid handwash continues to gain market share by volume, backed by digital communication and distribution expansion Strengthening our value-for-money and green proposition with the launch of the affordable and sustainable ready-to-mix Magic Bodywash priced at INR 45 तुम ही हो No.1 No. Gourd No.1 sandal turmeric natural oils नाउ दॅट्स मैजिक! 1 ADD 2 POUR 3SHAKE MICK BOO WAS#17Personal Care (2/2): Strong performance in Hair Colour • Hair Colour witnessed strong growth driven by category uptick; 2-year CAGR in double digits Godrej Expert Rich Crème continues to perform well with market share gains driven by strong marketing campaigns and influencer programmes • Initial response to Godrej Expert Rich Crème's new pricing at INR 15 is encouraging Godrej expert Rich Crème mini pack. Now colour your hair in just *15* NEW natural black 1.00 crème hair colour Gory expert rich crème long lasting colour 100% grey coverage ultra soft deep shine no ammonia NEW 15 Gory experti natural brown 4.00 crème hair colour mini pack 10x aloe vera' 15 mini, pack rich crème long lasting colour 100% grey coverage ultra soft deep shine | no ammonia 10x aloe vera#18INTERNATIONAL BUSINESS UPDATE#19Weak performance in Indonesia • • Sales dropped by 12% (constant currency); sales decline excluding Hygiene (Saniter) was 4% (constant currency) We continued to reduce stocks with channel partners, resulting in nearly flattish growth on sell-outs during the quarter EBITDA margins at 15.3%, decreased by 810 bps year-on-year due to higher commodity inflation, 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 Stella Fresh + Protect Pocket 35 Wipes mitu GANTI POPOK baby mitu GANTI POPOK baby Wipes Accompanying you on meaningful moments AD#20• Africa, USA & Middle East delivers seventh consecutive quarter of • • double-digit sales growth • Continued momentum; double-digit sales growth of 12% (constant currency); 3-year constant currency CAGR of 11% EBITDA margins decreased by 160 bps year-on-year largely due to higher marketing investments Dry Hair category (that comprises slightly over half of the business) grew in mid-single digit, while the FMCG category grew in double digits Strong sales growth momentum continues in Southern Africa In line with our strategy of driving category development, there have been increased investments across the Dry Hair and FMCG categories#21ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE#22Our ESG targets for FY2025 and Q4 FY2022 performance Environment* Vision Influence sustainable consumption Goals for FY2025 Ensure efficient waste management systems for 3 municipalities in India, impacting 3 million people Achieve Sustainable Packaging targets: 20% intensity reduction; 10% post-consumer recycled plastic (PCR) (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. Performance update Community waste management projects with local municipalities diverted 7,300 kg of dry waste from landfills through clean-up drives. Established a sanitation park, in partnership with the Municipal Corporation. Through this centre, we scientifically manage 4 MT of waste per day from Puducherry to work towards a circular economy ecosystem for the city. 3.5% virgin plastic replaced with PCR 6% reduction in plastic intensity Completed LCAs for 6 products that cover over 50% of our revenue 72% of Indian suppliers (by spend volume) are 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. LL#23Our ESG targets for FY2025 and Q4 FY2022 performance Environment* Vision Goals for FY2025 Performance update Lead in sustainability action 45% reduction in GHG emission intensity (to be revised based on Science Based Targets initiative [SBTi]) and carbon neutrality for Scopes 1 & 2 from FY11 baseline 42% reduction in GHG emission intensity 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 (SBTI) and publish our roadmap and targets for emissions reduction Achieve 100% EPR compliance 33% reduction in specific energy consumption. 29.4% of energy is from renewables 38% reduction in water intensity and continuing to be water positive Continue to be zero waste to landfill SBT emissions reduction roadmap has been created and is under review Covered equivalent to 100% of plastic packaging waste (19,500 MT); we are plastic neutral Note: *India targets reported. We have similar targets for international locations. 23#24Our ESG targets for FY2025 and Q4 FY2022 performance Social* Vision Equip communities with skills that empower Improve health and well- being Goals for FY2025 Empower 200,000 women in beauty skills, across emerging markets globally Performance update Trained and upskilled 1,468 women beauty entrepreneurs, young girls and young men in hair styling skills and enterprise development. Third-party impact assessment revealed that the median peak season monthly income grew by 58% and average savings also rose by 40%. Strengthen public healthcare systems in 3 states in India Vector management: 1,083 ASHA workers trained in prevention and control methods of vector-borne diseases. Trainings on entomological surveillance, clinical management of malaria and outbreak investigation were attended by 522 participants. Carried out 10 outbreak surveillance visits with the NVBDCP and the Government of Uttar Pradesh to manage dengue and Zika outbreaks. Protect 30 million people against vector-borne diseases Our rural and urban malaria programme is on track and has reached out to over 11.5 million people since FY16. Note: *India targets reported. We have similar targets for international locations. 24#25APPENDIX#26Shareholding pattern DII 5.9% Others 6.9% FII 24.0% Promoters 63.2% First State Temasek Blackrock Others Vanguard UTI Arisaig Partners Government Pension Fund Global Government of Singapore Capital Group Kotak 26#27Contact Us Institutional investors Retail investors Pratik Dantara Email: [email protected] Tel: +91 22 2519 4876 R Shivshankar Email: [email protected] Tel: +91 22 2519 4359 27#28➤ YouTube Thank you www.godrejcp.com Linked in