Trident Limited · NSE:TRIDENT
Trident — Investor Presentation (November 2021)
45 slides from Trident's investor presentation, November 2021
Slide 1: Investor Presentation Nov 2021
Investor Presentation Nov 2021 Trident Limited Home Textile I Paper
Slide 2: Safe Harbour
Safe Harbour This presentation has been prepared by Trident Limited (the “Company”) for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any of
Slide 3: Index
Index Trident at Glance 4 Industry Overview 12 Business Overview 18 Summary of Financial 29 Statements Committed to the ESG & Women Empowerment 39 Way Forward 42 Please click titles to reach to respective section 3
Slide 4: Trident at Glance
“0 TRIDENT Being different is normal TRIDENT AT GLANCE www. tridentindia.com TRIDENT. 4
Slide 5: Trident's – A distinctive Entity
Trident’s – A distinctive Entity Leading Integrated home textile manufacturers World’s Largest wheat straw based paper manufacturer #1 in North India for Branded Copier segment USD 3bn+ Business group 150+ countries World-class Infrastructure Best-in-class technology 17,000+ employees 46+ E-
Slide 6: Trident's Transformation Journey
Trident’s Transformation Journey 2020- 2025 Going Forward 2010- 2020 Value Addition & Consolidation Phase Make Brand Trident a National • E-commerce Website 2000- • Retail Outlets 2010 Transition & • Social Media Presence Horizontal diversification Diversified products • Diversification Phase in
Slide 7: Segment Portfolio
Segment Portfolio “0 TRIDENTGROUP™ Being different is normal Blended yarn Certified cotton yarn Zero twist yarn Melange yarn Air rich yarn Speciality in others Slub yarn rr Cy Bath Luxury organic Dobby texture bath mats \ ] ‘Spa & hotel beach Checkered waffle uC Linen deiener jacquard Infants & kids
Slide 8: Our Global Presence
Our Global Presence Across 6 continents and 150 countries Trident Europe Ltd. First Floor, Sovereign House, Stockport Road, Cheadle, Cheshire, England – SK82EA Trident UK Office Corporate Headquarters Manufacturing Unit Sales / Liaisoning Office Trident Warehousing & NYC Office Distribution Set up U
Slide 9: Manufacturing Units
Manufacturing Units Sanghera Manufacturing Facility Dhaula Manufacturing Facility Budhni Manufacturing Facility 9
Slide 10: Awards & Achievements
Awards & Achievements CA ARIDENTGROUP 4 E E 4 s 4 Asis 5 | (2 BEST PRODUCT V4 2 BEST NEWLY y "| erarorsseaoaans, | V4 AWARD y t 4 LAUNCHED y | recom no : N MANUFACTURING 7] N PRODUCT 4 : = ; creme, ZN ton Ve i 2 mn nn urs eva St arrose S cHRMAN 7 enone) Fics y Vv ) 4 / Ny OFTHE ¥ \ BRAND OFTHE 4 Ny
Slide 11: Shareholding and Dividend Payout
Shareholding and Dividend Payout Key Market Statistics (1st Nov 2021) (INR) Shareholding Pattern (October 2021) BSE Ticker 521064 NSE Ticker Trident Promoters 25% Bloomberg code TRID:IN Reuters TRIE.NS Non-Promoters- Non Public 2% Market Price 39.80 Market Cap (in million) 2,02,821 73% Public Outsta
Slide 12: Industry Overview
“0 TRIDENT Being different is normal INDUSTRY OVERVIEW
Slide 13: Home Textile Industry
Home Textile Industry Global Home Textile Industry (USD Billion) Indian Home Textile Industry (USD Billion) CAGR 6% 80 CAGR 8% 66 ▪ US continue to 13 42 52 be largest consumer of Abundant availability of raw material and manpower Home Textile 27 followed by Europe Huge Domestic Potential with in
Slide 14: India's share in US Market
INDIA’s share in US Market US Imports of Cotton Sheets US Imports of Terry Towels 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 2018 2019 2020 2021* (Jan-Aug) 2018 2019 2020 2021* (Jan-Aug) ROW 13% 12% 14% 10% ROW 16% 16% 16% 16% Pakistan 17% 19% 20% 19% Pakistan 20% 21% 21% 21% China 21% 19% 14%
Slide 15: India's share in EU Market
INDIA’s share in EU Market EU Imports of Cotton Sheets EU Imports of Terry Towels 100% 100% 80% 80% 60% 60% 40% 40% 20% 20% 0% 0% 2018 2019 2020 2021 (Jan-Apr) 2018 2019 2020 2021 (Jan-Apr) ROW 18% 17% 14% 14% ROW 14% 12% 13% 12% Turkey 15% 16% 18% 18% China 11% 10% 10% 9% China 7% 7% 6% 5% India 19
Slide 16: Home Textile Advantage
Home Textile Advantage Competitive cost of production Textiles: A dominant industry ▪ Competitive labor, power and raw material cost ▪ Employs 45 million people across the value chain ▪ Access to advanced technology under textile upgradation fund ▪ Strong government support to industry Favorable Gov
Slide 17: Paper Industry
Paper Industry Global paper industry Paper consumption in India Growth Drivers in Indian Paper Industry CAGR 5% Greater emphasis on education by the government (USD billion) 1,080 (million tons) 24 886 838 15 Robust growth in organized retail as well as e-commerce Growing demand for better quality p
Slide 18: Business Overview
“0 TRIDENT Being different is normal BUSINESS OVERVIEW
Slide 19: What's new?
What’s new ? E-Commerce Trident Solar Energy (Website Launch) Foundation Plant Click above icons to have further information ➢ Installation of new capacity worth INR 338 Crores having of 61,440 spindles & 480 rotors including other balancing equipment in July 2021 ➢ Launch of Trident MY CHOICE noteb
Slide 20: Segment Overview
Segment Overview Textiles Paper Largest Player in terms of Terry Towel Capacity & One of the largest Highest Operating Margin among players in Home Textile Space in India Key Listed Players in India Revenue Split between segments H1FY22 63% 23% 14% FY21 64% 20% 16% FY20 54% 26% 20% FY19 51% 30% 19%
Slide 21: Leading Integrated Home textile Manufacturer
Leading Integrated Home textile Manufacturer Yarn From Yarn → Home Textile Bath Linen Manufacturing Processes Bed Linen Manufacturing Processes 100% Cotton Yarn, Compact Yarn, Air-Rich, Zero Twist, Blended Yarn, Fancy Yarn, TFO-Two for One Warping Sizing Warping Weaving Melange, Specialty & others B
Slide 22: Creating differentiation across brands & products
Creating differentiation across brands & products Domestic home Domestic home textile textile brands brands International home textile International textile brands brands Marquee Customers Marquee Customers Bed Bed Bath Bath Trident’s home textile brands are across a range of luxury, premium, essent
Slide 23: Branding & Marketing Activities
Branding & Marketing Activities 23
Slide 24: Branding & Marketing Activities (Cont.)
Branding & Marketing Activities (Cont.) Design Studio in New York Design Studio in Cheshire (UK) Enhance Customer Experience and Position Trident as Superior Brand in Customer Mind 24
Slide 25: Internationals Standards Certifications
Internationals Standards Certifications Cotton Certifications Factory Certifications 25
Slide 26: World's largest wheat straw-based paper manufacturer
World’s largest wheat straw-based paper manufacturer 12% Market share in 175,000 MT Indian copier Annual capacity segment Copier Products 30% 91% Market share in NCR Capacity utilization and North India in H1 FY22 Marquee Customers Certifications 26
Slide 27: Paper Segment
Paper Segment Uses wheat straw, a by-product of wheat - an eco-friendly raw material Lowest raw material to sales ratio among peers Easy procurement at attractive pricing as Punjab is the highest wheat- producing state Best of Technology to ensure lower operating expenses Venturing into Value Added
Slide 28: E-commerce
E-commerce Home Textile D2C Site India mytrident.com Virtual Showroom Online Expanding Dedicated Presence Reach Team Agile Warehousing 46+ 17+ 50+ E-commerce Countries in last 12 Strong E-commerce websites months team 28
Slide 29: Summary of Financial Statements
SUMMARY OF FINANCIAL STATEMENTS 29
Slide 30: Quarterly Highlights (P&L)
Quarterly Highlights (P&L) Q-o-Q Y-o-Y Particulars Q2 FY22 Q1 FY22 Q2 FY21 Change Change Total Income 16,727 14,799 13% 11,744 42% EBITDA 4,129 3,825 8% 2,270 82% Depreciation 867 874 -1% 831 4% Finance Cost 199 250 -21% 123 62% PBT 3,063 2,700 13% 1,316 133% PAT 2,288 2,035 12% 1,002 128% Cash Prof
Slide 31: Quarterly Margins (P&L)
Quarterly Margins (P&L) 25.8% 24.7% 19.3% EBITDA MARGIN Revenue Exports 69.4% 70.0% 69.0% Q2 FY21 Q1 FY22 Q2 FY22 21000 Exports as of Revenue 67.7% 68.0% 67.4% 18.2% 18.3% 67.0% 16000 EBIT MARGIN 66.0% 11.2% 65.0% 11000 64.0% Q2 FY21 Q1 FY22 Q2 FY22 63.0% 6000 62.0% 13.8% 13.7% 61.0% 11744 14799 167
Slide 32: Quarterly Highlights (B/S)
Quarterly Highlights (B/S) NET DEBT/ EQUITY Particulars Q2 FY22 Q1 FY22 Q2 FY21 (in times) 0.35 0.30 Net Worth 35,695 33,166 31,438 0.29 Short Term Loans 9,207 10,648 7,073 Q2 FY21 Q1 FY22 Q2 FY22 Long Term Loans 3,801 3,773 3,173 Gross Debt 13,008 14,421 10,246 NET DEBT/ EBITDA Cash & Cash Equivale
Slide 33: Segment Highlights (P&L)
Segment Highlights (P&L) Q-o-Q Y-o-Y Particulars Q2 FY22 Q1 FY22 Q2 FY21 Revenue Change Change Home Textile 15% Revenue 14,067 12,821 10% 9,908 42% EBIT 2,977 2,660 12% 1,149 159% EBIT Margin 21.2% 20.7% 2% 11.6% 83% Paper 85% Revenue 2560 1,950 31% 1809 42% EBIT 612 593 3% 489 25% Home Textile Pape
Slide 34: Historical P&L Statement
Historical P&L Statement Particulars FY19 FY20 FY21 H1FY22 Recent performance and growth Total Income 52,653 47,240 45,353 31,525 ▪ Total Revenue for the H1FY22 stood at INR 31525 Mn, much better than FY 20 EBITDA 10,231 8653 8270 7954 owing to primarily the growth in sales due to robust demand glob
Slide 35: Historical Balance Sheet
Historical Balance Sheet As at As at As at Recent performance Particulars March 31, 2019 March 31, 2020 March 31, 2021 ▪ Net Debt reduced from INR CAPITAL AND LIABILITIES 16,145 million in FY20 to INR Capital 5096 5096 5096 14,232 million in FY21 Reserves and surplus 24216 24573 28070 Borrowings 243
Slide 36: Financial Performance
Financial Performance REVENUE EBITDA 58% 67% 71% 200 00 35. 0% 195 00 54% 56% 190 00 185 00 550 00 80. 0% 180 00 25% 545 00 540 00 535 00 175 00 30. 0% 530 00 525 00 520 00 170 00 515 00 510 00 165 00 505 00 500 00 495 00 70. 0% 160 00 490 00 485 00 480 00 155 00 18% 475 00 470 00 20% 465 00 150 00
Slide 37: Ratios Summary
Ratios Summary Type Parameters FY20 FY21 H1 FY22 Net Debt/Equity 0.54 0.42 0.29 Solvency Ratios Net Debt/EBITDA 1.87 1.72 0.63 * Interest Coverage Ratio 7.81 11.49 13.85 Current ratio 1.04 1.27 1.21 Fixed asset turnover 0.5 0.7 0.8 Inventory days 82.1 93.0 91.3 Operational Ratios Debtor days 36.0 55
Slide 38: Segmental Performance
Segmental Performance Annual Revenue Mix Capacity -Towels (in 000’tons) Capacity-Bed Linen (In Mn meters) 21% 100 64% 70% 100 80% 85% 90% Textiles 10% 49% 53% 63% 45% 600 00 25. 0% 90 98 80% 60% 500 00 6% 8% 8% 48% 80 60% 70% 44% 96 Textiles 50% 70 60% 400 00 94 60 40% 50% 92 50 300 00 30% 40% Home
Slide 39: Committed to the ESG & Women Empowerment
COMMITTED TO THE ESG & WOMEN EMPOWERMENT 39
Slide 40: Environmental, Social and Governance
Environmental, Social and Governance ✓ Nirmal Narmada Abhiyaan every quarter to keep river 25% Narmada clean Less water 5,000+ consumption1 Trees saved/day ✓ Launch of our NGO- Trident Foundation (www.tridentfoundation.com) 600,000+ 17,000+ ✓ Revamp existing facilities, provide infrastructure and ba
Slide 41: Led by Eminent Board
Led by Eminent Board Eminent board of directors Rajiv Dewan Chairman and Independent Rajinder Gupta Co-Chairman and Non-Executive Dinesh Kumar Mittal Independent Director Independent Chairman Director Non-Independent Director (Former Indian administrative (Earlier – MD from 1992 till 2012) service
Slide 42: Way Forward
“0 TRIDENT Being different is normal WAY FORWARD
Slide 43: Future prospects
Future prospects Vision 2025 3 BHAGs (BIG, HAIRY, AUDACIOUS GOALS) Unlock long term shareholder value OBJECTIVES IMPERATIVES Improve return ratios through capital allocation strategies 1 Expansion of existing businesses through Grow to Rs Grow core business 250,000 Mn by Capitalize on recent gro
Slide 44: CAPEX Plans
CAPEX Plans Particulars Yarn Sheeting Co-Gen Existing Capacity Spindles- 5.89 Lacs; Rotors- 1.2 Lacs 49.4 MW 7,464 and Air Jet – 160 Mtrs/day Existing Capacity Utilization 90% 83% 71% (Approx.) Proposed Capacity Addition Spindles- 98,496 & Rotors-3600 70,000 16.3 MW Mtrs/day ➢ The total cost of addi
Slide 45: Thank You
For further details please contact- Abhinav Gupta/ Rahul Sharma Investor Relations, Trident Limited Thank You Tel: +91 161 5039 999 Fax: +91 161 5039 900 Email: corp.relations@tridentindia.com 45