Titan Company Limited · NSE:TITAN
Titan — Q4 FY2022 Earnings Presentation
43 slides from Titan's earnings presentation, May 4, 2022
Slide 1: Cover letter: revised Q4 and annual earnings presentation
TITAN COMPANY SEC 016 / 2022-23 4th May2022 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), D
Slide 2: Earnings Presentation – Q4 FY'22 and FY'22
Titan Company Limited Earnings Presentation – Q4 FY’22 and FY’22 (For quarter and year ended 31st March 2022) 3rd May, 2022 1
Slide 3: Disclaimer
Disclaimer This document, prepared by Titan Company Limited (the “Company”/”we”/”our”/”Titan”), is solely for information purposes and does not constitute any offer, invitation, recommendation, invitation to purchase or subscribe to any of Titan’s securities, and shall not form the basis of or be re
Slide 4: Company Overview
Company Overview 3
Slide 5: 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 4 * PED was demerged to wholly-owned subsidiary as TEAL
Slide 6: Titan at a glance
Titan at a glance ~$3.6 bn ~$30 bn FY’22 Revenue (1) Market Capitalization (2) 2,178 2.8mn+ Stores sq.ft. of Retail space ~9.3K Notes: Employees on roll 1. Revenue excludes bullion sales 2. Market Capitalization as of 31st Mar ‘22 3. All numbers are on a consolidated basis 5
Slide 7: Our Business Segments
Our Business Segments Watches & Wearables 6 major in-house brands & 6 international brands 5 state of the art watch and component manufacturing/assembly plants Present across 7k+ dealers/ MBRs 1,685 POS in 33 countries Largest network of exclusive service centers; 708 watch care centers in 277 towns
Slide 8: Our Brands
Our Brands Luxury Premium Mid Market Mass Market 7
Slide 9: Q4 FY22 Performance
Q4 FY22 Performance 8
Slide 10: Q4 FY22 Revenue Highlights - Standalone
Q4 FY22 Revenue Highlights - Standalone 88% 9% 6,132 622 Jewellery Watches & Wearables -4% YoY [6,397] 12% YoY [555 ] 2yr CAGR 28% 2yr CAGR 6% 6,977* -2% YoY [7,144] 2yr CAGR 25% 1% 42 134 2% Other Businesses 20% YoY [35] 6% YoY [127] 2yr CAGR -0.2% 2yr CAGR 12% EyeCare Figs in INR Crores; *Revenue
Slide 11: Q4 FY22 EBIT Highlights - Standalone
Q4 FY22 EBIT Highlights - Standalone Q4 '20 Q4 '21 Q4 '22 12.7% 12.4% 10.5% 11.0% 14.2% 11.0% 780 770 747 703 554 534 13.0% 8.3% 2.6% 1.7% 18.4% -2.2% 72 46 16 23 2 (3) (25) (23) (54) Jewellery W&W EyeCare Others Standalone Figs in INR Crores; % indicate EBIT margins before exceptional items; Others
Slide 12: FY22 Revenue Highlights - Standalone
FY22 Revenue Highlights - Standalone 88% 9% 23,268 2,309 Jewellery Watches & Wearables 35% YoY [17,274] 46% YoY [1,580] 2yr CAGR 18% 2yr CAGR -6% 26,411* 36% YoY [19,245] 2yr CAGR 14% 1% 154 517 2% Other Businesses 57% YoY [98] 38% YoY [375] 2yr CAGR -5% 2yr CAGR -2.5% EyeCare Figs in INR Crores; *R
Slide 13: FY22 EBIT Highlights - Standalone
FY22 EBIT Highlights - Standalone FY '20 FY '21 FY '22 11.2% 8.0% 12.0% 12.3% 9.8% 13.1% 3,178 3,040 2,254 2,061 1,686 1,551 14.0% -4.1% 5.8% 365 -2.6% 6.2% 10.6% 134 23 55 (65) (14) (51) (158) (93) Jewellery W&W EyeCare Others Standalone Figs in INR Crores; % indicate EBIT margins before exceptiona
Slide 14: Q4 FY22 & FY22 Performance – Company Highlights
Q4 FY22 & FY22 Performance – Company Highlights Company • The Company delivered a solid all-round performance in FY’22 growing by 36% YoY (2 year CAGR of 14%) on the back of a fully disrupted Q1, a demand resurgent strong Q2, a buoyant festive Q3 and a flattish Q4 due to Omicron induced waves, gold
Slide 15: Q4 FY22 Performance – Key Segment Highlights – (1/2)
Q4 FY22 Performance – Key Segment Highlights – (1/2) Jewellery Watches & Wearables • Q4 FY22 was flattish YoY (post adjusting for a large B2B order in the • Division grew 12% YoY amidst a challenging external environment base quarter) with demand deferment seen due to gold price volatility with key
Slide 16: Q4 FY22 Performance – Key Segment Highlights – (2/2)
Q4 FY22 Performance – Key Segment Highlights – (2/2) EyeCare Other businesses – Fragrances and Fashion Accessories, Indian Dress Wear (‘Taneira’) • Division’s YoY growth was led by in-house brands of Frames and • Increase in sales from departmental stores and ecommerce led to Sunglasses both growing
Slide 17: Key Subsidiaries Highlights – (1/2)
Q4 & FY22 Performance – Key Subsidiaries Highlights – (1/2) CaratLane – 72.3% owned Subsidiary Q4 Revenue & EBIT 365 FY Revenue & EBIT 1,265 255 723 629 160 -2% 6% 5% -2% 3% 5% 15 17 22 60 (3) (11) Q4 '20 Q4 '21 Q4 '22 FY '20 FY '21 FY '22 Q4 FY22 highlights • CaratLane’s digital first strategy comb
Slide 18: Key Subsidiaries Highlights – (2/2)
Q4 & FY22 Performance – Key Subsidiaries Highlights – (2/2) Titan Engineering & Automation Limited (TEAL) – Wholly-owned Subsidiary* Q4 Revenue & EBIT 179 464 FY Revenue & EBIT 389 140 359 105 15% 8% 12% 17% 11% 6% 79 21 21 9 40 24 Q4 '20 Q4 '21 Q4 '22 FY '20 FY '21 FY '22 Q4 FY22 highlights • The A
Slide 19: Retail Network
Retail Network Net Additions (in FY22) As on March 31 '22 Stores (#) Sq. Ft. Stores (#) Towns (#) Sq. Ft. Tanishq 36 145K 389 234 1.50mn Zoya 1 0.8K 5 4 19K CaratLane 21 27K 138 50 132K Mia 10 6.5K 50 19 20K WOT 33 8K 544 250 418K Fastrack (5) (4K) 163 83 78K Helios 33 23K 136 56 107K Titan Eye+ 134
Slide 20: Retail Growth – Q4 FY22 & FY22
Retail Growth – Q4 FY22 & FY22 Q4 FY22 FY22 Sales value Like-to-Like Sales value Like-to-Like growth (%) growth (%) growth (%) growth (%) Tanishq 1% 4% 38% 41% CaratLane 60% 34% 98% 66% World of Titan 7% 5% 32% 31% Fastrack -5% -4% 17% 19% Helios 22% 7% 44% 30% LFS 7% 3% 43% 40% (for Watches) Titan
Slide 21: P&L – Q4 FY22 & FY22 Standalone
P&L – Q4 FY22 & FY22 Standalone in INR Crores Q4 '20 Q4 '21 Q4 '22 21-22 YoY% FY '20 FY '21 FY '22 21-22 YoY% Revenue from Operations - Sale of products/ services 4,370 6,991 6,749 -3% 19,732 19,046 25,831 36% - Other operating revenue 59 144 527 277 1,556 1,379 Other Income 40 34 76 146 181 246 Tot
Slide 22: P&L – Q4 FY22 & FY22 Consolidated
P&L – Q4 FY22 & FY22 Consolidated* in INR Crores Q4 '20 Q4 '21 Q4 '22 21-22 YoY% FY '20 FY '21 FY '22 21-22 YoY% Revenue from Operations - Sale of products/ services 4,617 7,351 7,267 -1% 20,768 20,088 27,417 36% - Other operating revenue 94 143 529 284 1,556 1,382 Other Income 42 57 76 153 186 233
Slide 23: Total Income – Q4 FY22 & FY22
Total Income – Q4 FY22 & FY22 Total Income Q4 '20 Q4 '21 Q4 '22 ‘21-22 YoY % FY '20 FY '21 FY '22 ‘21-22 YoY % Mix - FY'22 (in INR Crores) Jewellery 3,754 6,397 6,132 -4% 16,738 17,274 23,268 35% 88% Watches 557 555 622 12% 2,615 1,580 2,309 46% 9% EyeCare 108 127 134 6% 544 375 517 38% 2% Other Bus
Slide 24: EBIT – Q4 FY22 & FY22
EBIT – Q4 FY22 & FY22 EBIT (in INR Crores) Q4 '20 Q4 '21 Q4 '22 21-22 YoY% FY '20 FY '21 FY '22 21-22 YoY% Jewellery 534 703 780 11% 2,061 1,686 3,040 80% Watches 72 46 16 -65% 365 (65) 134 -306% EyeCare 2 23 (3) -113% (14) 23 55 136% Other Businesses (1) (21) (9) (15) 61% (58) (45) (35) -23% Corpor
Slide 25: Capital Employed – Standalone
Capital Employed – Standalone in INR Crores Segment Assets Segment Liabilities Capital Employed 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 Jewellery 8,646 14,038 7,130 9,040 1,516 4,998 Watches 1,932 2,256 678 905 1,254 1,351 EyeCare 414 463 221 269 193 194 Others 170 210 90 93 80 1
Slide 26: Balance Sheet – Standalone
Balance Sheet – Standalone in INR Crores Mar'21 Mar'22 Change Fixed Assets 1,067 1,073 6 Right of use asset 854 877 23 Intangible Assets 63 46 (17) Investments 759 869 110 Other non-current assets 616 894 278 Current Assets Inventories 7,984 12,787 4,803 Trade Receivables 291 495 204 Cash and Cash E
Slide 27: Performance Trends
Performance Trends 26
Slide 28: Quarterly Performance Trends
Quarterly Performance Trends Company: Revenue (Standalone) & Growth% YoY 9,461 124% 6,947 7,110 6,977 6,901 45% 6,206 33% 5,672 78% 4,940 61% 4,407 4,672 4,435 4,429 4,027 4,225 4,319 36% 3,917 34% 3,927 3,488 26% 19% 9% 11% 7% 14% 9% 12% 1% 2,825 -5% -3% -11% 1,261 -74% Q1 '18 Q2 '18 Q3 '18 Q4 '18
Slide 29: Quarterly Performance Trends – Jewellery
Quarterly Performance Trends Jewellery: Total Income & Growth% YoY 109% 8,563 77% 6,249 6,397 6,106 6,132 5,409 70% 37% 57% 29% 4,890 40% 13% 3,576 37% 4,047 3,572 3,582 3,986 3,528 3,754 -4% 3,381 3,292 3,446 10% 21% 13% 11% 16% 2,788 6% -2% -2% 2,467 -6% 1,182 -71% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '
Slide 30: Quarterly Performance Trends – Watches & Wearables
Quarterly Performance Trends Watches & Wearables : Total Income & Growth% YoY 715 719 291% 708 676 687 641 625 622 576 594 539 557 550 555 517 531 494 400 292 72% 15% 17% 19% 20% 29% 3% 10% 6% -2% 7% 6% -2% 5% 0% 12% -12% 75 -44% -90% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2
Slide 31: Quarterly Performance Trends – EyeCare
Quarterly Performance Trends EyeCare: Total Income & Growth% YoY 120% 160 156 154 149 132 129 130 133 134 124 127 120 113 109 108 101 70% 93 94 40% 29% 67 26% 16% 19% 20% 13% 18% 2% 6% 2% 3% 6% -3% -7% -17% 30 -39% -80% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4
Slide 32: Quarterly Performance Trends – Volume and Gold Price
Quarterly Performance Trends Watches & Wearables : Volume Growth% YoY 67% 11% 21% 16% 21% 10% 13% 5% 9% -1% -5% -1% -1% 0% -10% -4% -26% -48% -93% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Jewellery: Go
Slide 33: Annual Performance Trends – Standalone
Annual Performance Trends – Standalone Company: Revenue & YoY Growth% Revenue YoY Growth% 36% 26,165 20% 22% 20,010 19,245 19,070 15,656 5% -4% FY'18 FY'19 FY'20 FY'21 FY'22 Company: PBT & YoY Growth% 118% Company: PAT & YoY Growth% 2,180 PBT PBT Growth PAT PAT Growth 2,983 148% 1,517 47% 2,105 1,37
Slide 34: Annual Performance Trends – Capital Employed, ROCE, ROE
Annual Performance Trends – Standalone Capital Employed 9,373 7,451 7,553 6,182 (Rs Crores) 5,194 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 ROCE ROE 35.1% 35.2% 35.2% 25.8% 24.5% 24.2% 30.9% 23.3% 18.3% 12.2% FY'18 FY'19 FY'20 FY'21 FY'22 FY'18 FY'19 FY'20 FY'21 FY'22 Note: 1. Capital Employed is after net
Slide 35: Annual Performance Trends – Standalone by Segment
Annual Performance Trends – Standalone Jewellery: Total Income & YoY Growth% Watches: Total Income & YoY Growth% 23,268 EyeCare: Total Income & YoY Growth% 2,616 544 2,441 511 517 2,309 17,274 2,126 38% 16,738 415 16,030 35% 46% 375 13,036 1,580 23% 15% 24% 23% 7% 6% 4% 0% 4% 3% -31% -40% FY'18 FY'1
Slide 36: Retail Network Trend (#Stores)
Retail Network Trend (#Stores) Jewellery Network FY 18-22 4yr CAGR Tanishq Mia Zoya Caratlane Tanishq: 11% Mia: 9% Zoya: 14% 389 CaratLane: 40% 353 327 287 253 138 117 92 55 40 50 36 36 30 38 3 3 4 4 5 Mar'18 Mar'19 Mar'20 Mar'21 Mar'22 FY 18-22 4yr CAGR Watches Network EyeCare Network WOT: 3% Fastr
Slide 37: Dividend
Dividend Dividend Payout % 41% 666 * 32% 30% 31% 28% 29% 26% 26% 25% 444 25% 23% 355 355 333 231 204 195 186 186 155 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Notes: 1. Dividend payout ratios exclude Dividend Distribution Tax 2. * - The Board has recommended a dividend of INR 7.50 per s
Slide 38: Market Capitalization
Market Capitalization 10 year CAGR: 27% 2,25,156 (Rs Crores) 1,38,322 1,01,372 83,656 82,893 41,082 34,801 30,078 20,295 22,772 23,300 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'22 Note: Based on Titan’s closing prices on National Stock Exchange (NSE) at the end of respective per
Slide 39: Key Awards – Product Designs
Key Awards – Product Designs EyeCare Jewellery Watches & Wearables 2019 • First Red Dot award • Designer’s visualisation of contemporary forms • Titan’s FLEXX eyewear has been crafted from using the unique technique combination of laser sustainable natural wood & titanium cutting with tubing resulte
Slide 40: Sustainability @ Titan
Sustainability @ Titan CSR focus at Titan continues to be driven by broad themes of upliftment of the underprivileged girl child, skill development for the under privileged and support for Indian Arts, Crafts and Heritage. Titan actively continues to support local causes in the neighborhood as part
Slide 41: Sustainability @ Titan - The Greener Side
Sustainability @ Titan - The Greener Side Area Key Initiatives • Environment • Established 30 KW roof top solar plant at Hosur Jewellery Factory • ZERO Garden Waste Disposal initiative – In Hosur Jewellery Factory garden waste is pulverized and mixed with sewage sludge to convert it to bio fertilize
Slide 42: Sustainability @ Titan – Some Glimpses
Sustainability @ Titan – Some Glimpses Titan Scholarship Project Tarasha Project Happy Eyes Titan Kanya Titan LeAP – Skilling Solar Plant – Jew ISCM Electrical boilers for cooking application - Award for green manufacturing challenge – Noida lab ISCM - Watches & Wearables
Slide 43: Thank You
Thank You For any queries, please email to investor-relations@titan.co.in