Titan Company Limited · NSE:TITAN
Titan — Q4 FY2020 Earnings Presentation
63 slides from Titan's earnings presentation, Jun 8, 2020
Slide 1: Cover letter to stock exchanges: Q4 and annual earnings presentation
SEC 13 / 2020-21 8th June 2020 The General Manager, DCS – CRD The General Manager, DCS – CRD BSE Limited National Stock Exchange of India Ltd Corporate Relationship Department Exchange Plaza, 1st Floor, New Trading Ring Bandra-Kurla Complex, Rotunda Building, P J Towers Bandra (East), Dalal Street,
Slide 2: Titan Company Limited Earnings Presentation – Q4 FY'20
Titan Company Limited Earnings Presentation – Q4 FY ’20 (For quarter and 12 months, ended 31st March 2020) 8th June, 2020 1
Slide 3: Disclaimer
Disclaimer This document, which has been prepared by Titan Company Limited (the “Company”/”we”/”our”), are solely for information purpose and do not constitute any offer, invitation, recommendation, invitation to purchase or subscribe for any of the securities, and shall not form the basis of or be
Slide 4: The Journey
The Journey 1984 1992 1998 Conceived 1987 Timex JV 1996 2003 2005 2008 2010 PED 2007 2009 Accessories 2011 2013 Perfumes 2016 2017 3
Slide 5: Titan Today
Titan Today 5th ~$12 bn largest watch market cap maker globally ~$2.8 bn 4 annual revenue times in Forbes Asia Fab Fifty 1,831 ~8 k stores with 2.3mn+ sq.ft. retail space employees on rolls 7k+ mutli-brand outlets 4 that sells our watches
Slide 6: Our Strengths
Our Strengths Design and Development 800+ New time products every year reddot Award to 2 Edge watches Differentiated Jewellery Collections Customized lenses with 3D visual mapping Manufacturing 12 Manufacturing and assembly facilities State of the art Karigar Centres for Jewellery Components exporte
Slide 7: Our Brands
Our Brands Luxury Premium Mid Market Mass Market 6
Slide 8: Jewellery Division
Jewellery Division 7
Slide 9: Jewellery
Jewellery Brands TANISHQ: flagship brand ZOYA: luxury segment play MIA: Tanishq sub-brand for faishonable fine jewellery CARATLANE: a Tanishq partnership, omni-channel Manufacturing Studded jewellery manufactures mostly in-house Plain gold jewellery mostly outsourced 3 manufacturing facilities 4 sta
Slide 10: Jewellery
Jewellery a _ | + I TANISHQ HUM HAR SHAADI KE Liat TAYAAR HAIN! ‘ @ 6 a ae Pec k hint @Q, 9 0} \ Ole Bes eee Ee ‘ @ \ |} Colon
Slide 11: Jewellery manufacturing facilities and Karigar Centers
Jewellery Karigar Center, Hosur • Pantnagar • Sikkim Manufacturing Facilities/ • Hosur Karigar Centers 10
Slide 12: Tanishq Boutique
ais Tanishg Boutique a1
Slide 13: Zoya Boutique
Zoya Boutique 12
Slide 14: Mia Store
Mia Store 13
Slide 15: CaratLane Store
Pec im jewelled. A coming soon J CaratLane Store 14
Slide 16: Tanishq
TANISHQ A TATA PRODUCT
Slide 17: Tanishq
K TANISHQ ‘ATA PR
Slide 18: Tanishq
TANISHQ ATTATA PRODUCT NYUSHA Yelebrate your birthday with a glimmer that is #PurelyPrecious
Slide 19: Watches Division
Watches Division 18
Slide 20: Watches - Overview
Watches - Overview Brands 6 major in-house brands & 7 licensed brands Manufacturing 6, state of the art, watch and component manufacturing/assembly plants Points of Sale EBO: World of Titan, Fastrack Stores OWN MBO: Helios MBO: present across 11k+ dealers/ MBOs LFS: Large format departmental stores
Slide 21: Watches - Manufacturing
Watches - Manufacturing Watch factory, Hosur Pantnagar factory Roorkee Pantnagar • Sikkim Manufacturing/ Assembly facilities • Hosur 20 Watch Assembly, Hosur • Coimbatore
Slide 22: 'World of Titan' Store
‘World of Titan’ Store 21
Slide 23: Fastrack Store
fastrack BoA tet 22 Fastrack Store
Slide 24: Helios Store
> -_HSeni09s HE WATCH STORE BY TITAN Helios Store 23
Slide 25: Helios The Watch Store
HHSLIOS | Tust of TATA tHe warcn stone | Expertise of TITAN RETAIL THERAPY CALLING A curated shopping experience to walk, browse and buy from the comfort of your home. We are just a video call away. (End to ond encryption Helios The Watch Store Rove
Slide 26: Fastrack x Ananya Panday Fit Outs Collection
Slide 27: Zehan
BZehanAs An ardent desire.
Slide 28: Eyewear Division
Eyewear Division 27
Slide 29: Eye Wear
Eye Wear Brands TITAN EYE PLUS: Retail brand TITAN: main in-house frames and lenses brand FASTRACK and GLARES: in-house sunglasses brand LICENSED BRANDS: for frames and lenses Manufacturing State of the art lens lab in Chikkaballapur Satellite lens labs in major cities to improve turn around time Fr
Slide 30: Eye Wear Frames
Eye Wear In-house brands Frames Sunglasses Manufacturing Integrated Eyewear facility - Chikkaballapur Lens Labs 29
Slide 31: Titan EyePlus Store
Titan EyePlus Store
Slide 32: #BeatTheBadBlue
#BeatTheBadBlue Protect from harmful digital light. Use Blue Filter Lenses.
Slide 33: Fastrack
fastra CiK +
Slide 34: Fragrances & Taneira
Fragrances & Taneira 33
Slide 35: Fragrances
Fragrances Brands SKINN by Titan Fine French perfumes at very attractive price points Entry into body mist category in FY 18- Skinn Kissed Manufacturing Manufactured in France by celebrated perfumers, and distilled from the finest ingredients Bottled in France and India Points of Sale Sold through W
Slide 36: The New Colour of Class. Amalfi Bleu.
THE NEW COLOUR OF CLASS. AMALFI BLEU. - EAU DE TOILETTE ——— - 2 = ~ THE FRESH NEW FRAGRANCE FOR MEN AND WOMEN. SKI AN z 'Y TITAN, Fine French Perfumes
Slide 37: Taneira
Taneira • This youngest brand of Titan Company Ltd was launched as pilot in Feb 2017 with 2 stores in Bangalore. • Anchored in special occasion wear Sarees from across India. • Evolved as a natural extension of Titan’s proposition – self expression and design. • Large, unorganized, deeply Indian 5,0
Slide 38: Our Stores
Our Store as isp
Slide 39: Q4 Performance
Q4 Performance 38
Slide 40: Q4 Performance – Standalone
Q4 Performance – Standalone Company • Revenue for the company declined by 5.2% in the quarter due to the lost sales in March as all stores were closed from 22nd March till the 1st week of May. Shopping malls were closed in early March in some states as per the directive of those state governments, l
Slide 41: Q4 Performance – Standalone (Jewellery)
Q4 Performance – Standalone Jewellery • Revenue for the division declined by 5.8% due to lost sales in the month of March. Revenue growth of Jan & Feb month was at about 16.5%. • The diamond studded activation in the quarter did well and wedding jewellery sales continued to be good till the disrupti
Slide 42: Q4 Performance – Standalone (Watches & Eye Wear)
Q4 Performance – Standalone Watches & Wearables • Revenue was up by 4.9%, despite the significant loss of sales in the month of March. Revenue growth of Jan & Feb month was at about 15.7%. • Ecommerce was the fastest growing channel for both Q4 and full year. Retail sales in LFS channel also grew we
Slide 43: Q4 Performance – Standalone (Other business)
Q4 Performance – Standalone Other business - Fragrances, Ethnic wear and Accessories • Other business grew at 12%. • In Fragrances, Fastrack perfumes continue to increase its distribution reach and is now available across over 1,800 outlets and ecommerce channel. • 'Taneira’ opened two stores during
Slide 44: Q4 Performance – Subsidiaries and JV
Q4 Performance – Subsidiaries and JV Titan Engineering and Automation Ltd (TEAL) - 100% owned Subsidiary • TEAL had a good quarter with a growth of 37% for the quarter and 34% for the financial year. Both the automation division and the aerospace and defense divisions did exceptionally well in the y
Slide 45: Retail Network
Retail Network Net Additions (in FY’20) As on 31st Mar’20 Stores Square Feet Stores Towns Sq. Ft. Tanishq 40 146K 327 204 1.24mn Zoya 1 3K 4 3 18K CaratLane 37 37K 92 33 76K Mia 8 2K 38 19 13K WOT 13 5K 499 221 408K Fastrack 11 1K 183 85 92K Helios 16 9K 92 42 77K Titan Eye+ 47 31K 584 229 386K Tota
Slide 46: Retail Growth – Q4'20 and FY'20
Retail Growth – Q4‘20 and FY’20 Q4’20 FY’20 Sales value Like-to-Like Sales value Like-to-Like growth growth growth growth Tanishq (4%) (9%) 9% 3% CaratLane 15% (25%) 58% 9% World of Titan (7%) (9%) 3% 2% Fastrack (10%) (12%) (3%) (6%) Helios 10% (3%) 13% 4% LFS (for (9%) (15%) 5% 3% Watches) Titan E
Slide 47: P&L – Q4'20 & FY'20 - Standalone
P&L – Q4’20 & FY’20 - Standalone 46
Slide 48: Total Income – Q4'20 and FY'20
Total Income – Q4’20 and FY’20 Note: 1. Total Income also includes other income. 2. Others include Accessories, Fragrances and Taneira business 3. Others include TTPL (divested in June’18) and Favre Leuba. 47
Slide 49: PBT – Q4'20 and FY'20
PBT – Q4’20 and FY’20 Note: 1. Others include Accessories, Fragrances and Taneira business 2. Others include TTPL (divested in June’18) and Favre Leuba. 48
Slide 50: Capital Employed - Standalone
Capital Employed - Standalone Note: 1. Others include Accessories, Fragrances and Taneira. • Assets of Jewellery division is higher due to the higher inventory which has gone up on account of increase in Gold prices, despite the reduction in the quantity of Gold inventory. • Capital employed of Corp
Slide 51: Performance Trends
Performance Trends 50
Slide 52: Quarterly Performance Trends: Company Revenue and PBT
Quarterly Performance Trends Company: Revenue 7,000 60% 6,000 50% 5,000 40% Rs Crores 4,000 30% 3,000 20% 2,000 10% 1,000 0% - -10% 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 Net sales 3,538 4,027 3,488 4,225 3,917 4,319 4,407 5,672 4,672 4,940 4,435 6
Slide 53: Quarterly Performance Trends: Watches
Quarterly Performance Trends Watches: Total Income 800 25.0% 700 20.0% 600 15.0% Rs Crores 500 400 10.0% 300 5.0% 200 100 0.0% - -5.0% 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 Net sales 503 517 576 539 494 594 676 641 531 715 719 625 557 Growth (RHS)
Slide 54: Quarterly Performance Trends: Jewellery
Quarterly Performance Trends Jewellery: Total Income 6,000 70.0% 5,000 60.0% 50.0% 4,000 Rs Crores 40.0% 3,000 30.0% 2,000 20.0% 10.0% 1,000 0.0% - -10.0% 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 Net sales 2,913 3,381 2,788 3,576 3,292 3,572 3,582 4,
Slide 55: Quarterly Performance Trends: Volume and Grammage Growth
Quarterly Performance Trends Watches: Volume growth 25% 20% 15% Growth (%) 10% 5% 0% -5% -10% -15% 4QFY17 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 Volume Growth 10% 5% 9% 11% -1% 10% 21% 16% 0% 13% -1% -10% -5% Jewellery: Gold price (22kt) and Grammage grow
Slide 56: Annual Performance Trends - Standalone
Annual Performance Trends - Standalone 5-Yr CAGR: Company: Revenue 10.9% 25,000 20,010 20,000 19,070 15,656 (Rs Crores) 15,000 12,999 11,105 10,000 5,000 0 FY'16 FY'17 FY'18 FY'19 FY'20 5-Yr CAGR: 5-Yr CAGR: 12.2% Watches: Total Income 6.4% Jewellery: Total Income 3,000 18,000 16,738 2,615 16,030 2,
Slide 57: Annual Performance Trends - Standalone PBT and PAT
Annual Performance Trends - Standalone 5-Yr CAGR: 13.0% Company: PBT 5-Yr CAGR: Company: PAT 2,500 14.8% 1,518 1,600 2,105 1,374 1,997 1,400 2,000 1,662 1,163 1,200 (Rs Crores) 1,500 1,000 (Rs Crores) 1,130 762 800 698 1,000 888 600 500 400 200 0 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'16 FY'17 FY'18 FY'
Slide 58: Annual Performance Trends – Capital Employed, ROCE, ROE
Annual Performance Trends – Standalone Capital Employed 8,000 6,825 7,000 6,182 6,000 5,194 5,000 (Rs Crores) 4,312 4,000 3,551 3,000 2,000 1,000 0 FY'16 FY'17 FY'18 FY'19 FY'20 ROCE ROE 40% 30% 35.1% 35.2% 35% 32.4% 24.5% 24.2% 25% 23.3% 29.2% 21.1% 30% 25.8% 19.4% 20% 25% 20% 15% 15% 10% 10% 5% 5%
Slide 59: Dividend
Dividend 500 35% 450 30% 400 350 25% 300 20% (Rs Crores) 250 15% 200 150 10% 100 5% 50 0 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Dividend 111 155 186 186 204 195 231 333 444 355 Payout% 26% 26% 26% 25% 25% 28% 30% 29% 32% 23% 58 Note : Above dividend payout ratio is excluding the Divide
Slide 60: Market Capitalisation
Market Capitalisation 10 year 1,20,000 CAGR: 29% 1,01,372 1,00,000 83,656 82,893 80,000 (Rs Crores) 60,000 41,082 40,000 34,801 30,078 22,772 23,300 20,295 20,000 16,916 8,172 0 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 59 Note: Based on NSE closing prices at the end of the p
Slide 61: Sustainability @ Titan
Sustainability @ Titan CSR focus at Titan will continue be driven by broad themes such as upliftment of the underprivileged girl child, Skill development for the under privileged and support for Indian Arts, Crafts and Heritage. We will also support local causes that are supportive of our neighborho
Slide 62: Response to COVID …this far
Response to COVID …this far Company Level Contribution : • Committed a sum of INR 7 Crores from the CSR funds of 2020-21 towards the One - Tata Groups efforts • Contributed a sum of INR 1 Cr to the Tamil Nadu CM Public Relief Fund Local Responses based on need from Govt and other agencies • As a Pre
Slide 63: Thank You
Thank You 4 TITAN COMPANY