#1Godrej | CONSUMER PRODUCTS Q3FY2023 Investor and Analyst Performance Update 31 January, 2023 Gove Good knight S MINI REFILL Use the machine only with Good Knight Mini refill & gold flash refill Godrej Good knight LIQUID MOSQUITO REPELLENT Machine+ Mini Refill 0 Combi *50 pack Good knight CH Good knight Good knight MINI REFILL Goord Good MINI knight REFILL Boog Kudu w Lu nes que working out MICH HEHIFT dood ВЕЫГГ WIИI кон ВЕНГГ#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#5Double-digit constant currency sales growth with margin expansion Consolidated Sales growth 9% (15% CC) Consolidated Volume Growth 1% Consolidated EBITDA growth 10% India Sales growth 11% India Volume Growth 3% India EBITDA Growth 20% 1 Sharp sequential uplift in Underlying Volume Growth: 2 Consolidated 1% year-on-year India 3% year-on-year 3 Broad-based growth: India 11% Africa, USA & Middle East 23% CC Indonesia (3)% CC; ex-Hygiene 2% CC Latin America & SAARC 47% CC Meaningful recovery in Consolidated EBITDA Margins at 21.5% (10% growth); 440 bps increase sequentially and 20 bps year-on-year EBITDA + Working Media Margins increase 110 bps (13% growth) Healthy quality of profits with Gross Margin expansion of 330 bps quarter-on-quarter, 50 bps year-on-year and increase in Working Media investment by 28% year-on-year Note: CC Constant Currency - 5 LO#6FINANCIAL PERFORMANCE UPDATE#7Q3 FY2023: Financial performance Growth (year-on-year) Underlying Volume Growth Net Sales (Reported) Net Sales (Constant Currency) EBITDA EBITDA + Working Media Net Profit (Reported) Net Profit (Without exceptional and one-off items) Consolidated Business India Business 1% 3% 9% 11% 15% 10% 20% 13% 22% 4% 21% 13% 28% 7#8Q3 FY2023: Exceptional and One-off Items Consolidated Business Net Profit (Reported) Exceptionals (Post tax) Restructuring cost Q3 FY2023 Q3 FY2022 546 528 6.3 1.6 Deferred Tax - Change in maximum marginal tax rate in India and Indonesia 0.2 (24.4) Reversal of impairment on investment (BBLUNT in India) Net Profit (Without exceptional and one-off items) Note: All values are in ₹ crore and rounded off (15.4) 553 489 8#9Q3 FY2023: Double-digit constant currency sales growth driven by healthy performance across clusters Geography India Indonesia Indonesia ex-Hygiene Sales (* crore) Growth (Year-on-Year) Constant Currency Growth (Year-on-Year) 1,975 11% 433 (3)% (3)% 2% Africa, USA and Middle East 1,006 14% 23% Latin America and SAARC Total Net Sales 181 (8)% 47% 3,568 9% 15% Note: Total Net Sales includes the impact of contra and inter company eliminations 9#10Q3 FY2023: Healthy quality of profits Q3FY23 Reported EBITDA Margin India Africa, USA Latin America Indonesia & Middle East & SAARC 27.6% 19.7% 12.7% 5.4% Business support charges, Royalty & Technical fees (✓ crore) (4.9) 1.9 3.7 (0.7) Q3FY23 Operating EBITDA Margin 27.3% 20.1% 13.0% 5.0% Q3FY22 Operating EBITDA Margin 25.2% 21.2% 14.7% 12.6% Change in EBITDA Margin (bps) 210 (100) (160) (760) Change in EBITDA + Working Media 320 (50) (40) (850) Margin (bps) 10#11INDIA BUSINESS UPDATE#12• • Double-digit sales growth and robust margin improvement Financial performance Double-digit sales growth of 11% Broad-based double-digit growth in both Home Care and Personal Care Operating performance With commodity pressures abating, we expect gradual recovery in consumption, expansion in gross margins, upfront marketing investments and improvement in profitability in the coming quarters. • Robust margin recovery; EBITDA margins in India at 27.3%; expanded by 210 bps year-on-year. Quality of profits continue to improve with significant Gross Margin expansion of 590 bps quarter-on-quarter, 250 bps year-on-year and increase in Working Media investment by 28% year-on-year Sales growth 3% 8% 11% UVG UPG USG USG: Underlying Sales Growth; UPG: Underlying Pricing Growth; UVG: Underlying Volume Growth 20% Growth 22% EBITDA EBITDA + Working Media 12#13Broad-based double-digit growth in both Home Care and Personal Care Category Home Care Personal Care Unbranded and Exports Total Net Sales Volume Growth Sales ( crore) Q3 Growth (Year-on-year) 1,000 10% 875 14% 100 (9)% 1,975 11% | 3% 13#14Home Care (1/2): Steady Household Insecticides performance Third consecutive quarter of improvement in Household Insecticides performance Growth during the quarter was led by premium formats of electrics and aerosols Non-mosquito portfolio continues to grow ahead of mosquito portfolio We continue to drive category adoption and penetration for long-term sustainable growth HIT डेंगू मच्छरों का अंत तुरंत 50. OFF HIT Givenes Good knight FOR MOSQUITRES AND FUES KILLS DENGUE KILLS MALARIA Good knight GOLD" FLASH NEW VISIBLE VAPOURS AUTOMATICALLY Good knight GOLD FLASH COMBI PACK LIQUID 14#15Home Care (2/2): Robust performance in Air Fresheners • Air Fresheners continue to deliver strong double-digit growth momentum • • We continue to grow ahead of the category and enjoy market leadership position Aer Matic is scaling up well, backed by category development investments and an increase in penetration and distribution Godrej aer for fragrant, power guest-ready bathrooms. pocket Godrej der matic Automatic spray for fragrant rooms. O Göörg aer power pocket Godrej der#16• Godrej No. 1 becomes the second largest brand by volume. Personal Care (1/2): Double-digit growth in Personal Wash & Hygiene continues Continued double-digit growth momentum and share gains in Personal Wash & Hygiene Growth driven by micro-marketing initiatives and consistent marketing investments Godrej CINTHOL ORIGINAL Deodorant and complexion soap Godrej No.1 sandal turmeric natural oils * गोदरेज नं. 1 हल्दी और चंदन साबुन में है 76% कुदरती तत्व. तुम ही हो No.1 Godrej (No.1) No. Godrej magic छोटा सैशे बनाये बड़ा बॉटल हैंडवॉश | bibow Godre HANDWASH सिर्फ़ 10/- 2 POUR the 3 SHAKE* gic 17 READY TO MIX HAND WASH * हर रीफिल सैशे का वज़न है। 9g.#17• • Personal Care (2/2): Strong performance continues in Hair Colour • Hair Colour witnessed growth in teens. Godrej Expert Rich Crème continues to perform well, driven by strong marketing and influencer campaigns. Access pack of Godrej Expert Rich Crème at INR 15 is receiving an encouraging response, driving penetration and upgrades from other formats Good expert GERC Festive Influencer Campaign Ft. Daisy Shah, Nikki Tamboli, Hina Khan and 28 other regional influencers Daisy Shah Nikki Tamboli Hina Khan #Tyohaar MeinDekhbhaal #Godrej Expert RichCrème Godrej expert 17#18NEW LAUNCH HOUSEHOLD INSECTICIDES#19Household Insecticides presents immense long-term potential to increase penetration and up-trade Burning Format households 27% All-India penetration of Liquid Vapourisers 5% Urban penetration of Aerosols ~110mn Households still use only Burning Formats ~120mn Households do not use any Household Insecticide product 田 0:0:1 Reasons for low penetration of the Household Insecticides category: Affordable burning format solutions risk fire hazards and emit smoke Premium solutions are expensive 田 0:0:1 Lack of awareness#20Pivots of driving category development and penetration Relevance ☑ Accessibility ||| Trials With impetus on building relevance and driving accessibility, we reimagined product design to meet consumer needs at a disruptive price point and democratise the premium formats. 20#21Democratising Liquid Vapourisers Affordable Breaks the price barrier of premium formats Safe No smoke Combi 50 Effective Convenient All-night protection Simple Good knight plug-and-play format 9 Who will this product appeal to: Up-trade Burning Format households Recruit new households Goory Good knight *50 Combi pack MINI REFILL LIQUID MOSQUITO REPELLENT Machine + Mini Refill 0 Good knight Use the machine only with Good Knight Mini refill & gold flash refill knight Good MINI REFILL Refill 35 MOSQUITO MINI REFILL Goord 35 Good LIQUID MOSQUITO REPELLENT knight MINI REFILL 21#22Introducing the world's most affordable anti-mosquito spray solution Affordable Cheapest spray solution in the world No-gas spray A concentrated solution that lasts longer Convenient Easy-to-use format Effective Instant protection and knock-down effect 50 尖 Who will this product appeal to: Instant protection during high-mosquito infestation Recruit new households $50/- 50/- HIT HIT ANTI MOSQUITO NO GAS SPR/ ANTI MOSQUITO NO GAS SPRAY 22#23INTERNATIONAL BUSINESS UPDATE#24Gradual recovery in Indonesia Sales declined by 3% (CC); growth ex-Hygiene (Saniter) was 2% (CC) EBITDA margins at 20.1%, decreased by 100 bps year-on-year due to upfront higher marketing investments and scale deleverage • Continue to put building blocks in place to drive category development and general trade distribution expansion AIR FRESHENER Stella Matic Menebarkan keharuman istimewa secara otomatis. Jika ruangan bisa bicara, mintanya pasti Stella. Stella Jika ruangan bisa bicara, mintanya pasti Stella. Stella Fresh + Protect Pocket HIT BUNUH NYAMUK SEKETIKA Stella Fresh + Protect Pocket HIT 5 keharuman istimewa untuk kamar mandi wanginya tahan hingga 30 hari. BARU Rp 12.000 UKURAN 180ML *nyamuk Aedes aegypti, jatuh pada menit ke 1 Rp 12.000 UNTUK 30 MALAM Generasi BARU HITZE Anti Nyamuk dan Kecoa Gratis Generasi BARU HIT Anti Nyamuk dan Kecoa +75ml Wangi Lily Blossom Wangi Lily Blossom 00#25Africa, USA & Middle East continues to consistently deliver double-digit sales growth ⚫ Robust double-digit sales growth of 23% (CC); eleventh running quarter of double-digit sales growth • Broad-based double-digit growth in the Dry Hair and FMCG categories Strong sales growth momentum continues in Southern and West Africa EBITDA margins at 13%; contracted by 160 bps year-on-year due to significant increase in working media investment 20 20#26ENVIRONMENTAL, SOCIAL, AND GOVERNANCE UPDATE#27Our ESG targets for FY2025 and Q2 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. Covered 1,74,000 people and diverting over 2 MT of waste per day. 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. | 27#28Our ESG targets for FY2025 and Q2 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 39.5% reduction in GHG emission intensity 39.5% reduction in specific energy consumption 26.7% of energy is from renewables 29% 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, they are under validation Achieve 100% EPR compliance Note: *India targets reported. We have similar targets for international locations. On track 28#29Our ESG targets for FY2025 and Q2 FY2023 performance Social* Vision Goals for FY2025 Equip communities with skills that empower Empower 200,000 women in beauty skills, across emerging markets globally Improve health and well-being Performance update Trained and upskilled 9,968 women beauty entrepreneurs, young girls, and men in India and Africa in beauty and hair styling skills and enterprise development. For our Salon-i programme with young girls, we reported an average income increase between 23-35%. Initiated Salon-i training for young people with disabilities and transgender communities in Mumbai and Lucknow. Strengthen public healthcare systems in three states in India Due to the efforts of the Uttar Pradesh (UP) government and our EMBED programme, the state transitioned to Category-1 from Category-2 and is one of the top 10 states with the lowest malaria cases. EMBED's contribution has been formally acknowledged by the Health Ministry of Uttar Pradesh. Moreover, there is a 4% reduction in incidence of dengue and chikungunya in the state and a 48% reduction in case fatality rate for dengue. Protect 30 million people against vector-borne diseases On track. Reached out to over 11.5 million people. In Q1, covered over 1,108 villages and 1,84,000 households for urban dengue in Madhya Pradesh, Uttar Pradesh and Chhattisgarh. Our Urban dengue programme has helped reduce incidence by 39% in intervention geographies. 29#30APPENDIX#31Shareholding pattern DII 6.4% FII 24.0% As on 31st Dec, 2022 Others 6.4% Promoters 63.2% Others Aditya Birla Sunlife First State Blackrock Vanguard Temasek Government of Singapore Capital Group Government Pension Kotak UTI Fund Global 31#32Contact 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 32#33Thank you ► YouTube www.godrejcp.com Linked in