Titan Company Limited · NSE:TITAN
Titan — Q1 FY2022 Earnings Presentation
58 slides from Titan's earnings presentation, Aug 4, 2021
Slide 1: Exchange filing cover letter for investor presentation
♦ TIT/\N COMP/\NY SEC 049 / 2021-22 4th August 2021 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 (
Slide 2: Earnings Presentation – Q1 FY'22
Titan Company Limited Earnings Presentation – Q1 FY’22 (For quarter ended 30th June 2021) 4th August, 2021 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 * PED was demerged to wholly-owned subsidiary as TEAL
Slide 5: Titan Today
Titan Today ~$2.7 bn ~$21 bn market cap annual revenue 1,922 * 2.5mn+ * stores sq.ft. retail space ~7.5 k employees on rolls * Includes Caratlane 4 Note : Market Cap as on 30th June 2021
Slide 6: Our Strengths
Our Strengths Design and Development 800+ New time products every year Differentiated Jewellery Collections Customized lenses with 3D visual mapping Manufacturing 11 Manufacturing and assembly facilities State of the art Karigar Centres for Jewellery Components exported to Swiss watch makers 3600+ e
Slide 7: Reddot awards won for product designs
Reddot awards won for product designs Eyewear Jewellery Watches & Wearables 2019 • First Red Dot award for the division • Designer’s visualisation of contemporary forms • Titan’s FLEXX eyewear has been crafted from using the unique technique combination of sustainable natural wood & titanium laser c
Slide 8: Our Brands
Our Brands Luxury Premium Mid Market Mass Market 7
Slide 9: Jewellery Division
Jewellery Division 8
Slide 10: Jewellery
Jewellery Brands TANISHQ: flagship brand ZOYA: luxury segment play MIA: Tanishq sub-brand for fashionable 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 11: Jewellery – Manufacturing Facilities
Jewellery Karigar Center, Hosur Pantnagar Sikkim Manufacturing Facilities/ Karigar Centers Hosur 10
Slide 12: Jewellery - Stores
Jewellery - Stores 11
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Slide 14: Watches & Wearables Division
Watches & Wearables Division 13
Slide 15: Watches & Wearables - Overview
Watches & Wearables - Overview Brands 6 major in-house brands & 7 international brands Manufacturing 5, 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 7k+ dealers/ MBOs LFS: Large format depa
Slide 16: Watches & Wearables - Manufacturing
Watches & Wearables - Manufacturing Watch factory, Hosur SS Watch Case Manufacturing, Coimbatore Watch Assembly Unit, Pantnagar Roorkee Pantnagar • Sikkim Manufacturing/ Assembly facilities • Hosur • Coimbatore 15 Watch Assembly Unit, Roorkee Watch Assembly Unit ,Sikkim
Slide 17: Watches & Wearables - Stores
Watches & Wearables - Stores ‘World of Titan’ Store 16
Slide 18: Raga Viva IV
RAGA VIVA IV EDGE CERAMIC LADIES
Slide 19: Wear Your Look / Stunners 1.0
WHAT a, a COLOUR Vay Soe. ) TODAY? fagpiracth MONOCHROMES fe WEAR YOUR LOOK 4 fees STUNNERS 1.0
Slide 20: Sleek 4.0
SLEEK 4.0 CRAFTED FOR THE SELF-MADE
Slide 21: Eyewear Division
Eyewear Division 20
Slide 22: 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 Integrated lens and Frame manufacturing facility in Chikkaballapur Points of Sale TITAN EYE PLUS: India’s larg
Slide 23: Eye Wear
Eye Wear In-house brands Frames Sunglasses Lens Manufacturing Integrated Eyewear facility - Chikkaballapur 22
Slide 24: TITAN
ne TITAN DON'T LET YOUR MASK -learSight At last, a long-lasting lens. Socho Mat. Sach Hai! Best quality spectacles @ f—_J a) PROGRESSIVES Resintort | Bluelight filter 7 Designs | 9 Technologies FRAMES, CUSTOMISED FOR EVERY INDIAN FACES. INDIFIT ‘TITAN eyeplus, Ceried By Govt. Titan &Fastrack ‘Approv
Slide 25: Fragrances, Accessories & Indian Dress Wear (Taneira)
Fragrances, Accessories & Indian Dress Wear (Taneira) 24
Slide 26: Fragrances
Fragrances Brands SKINN by Titan Fine French perfumes at very attractive price points Manufacturing Crafted in France by celebrated perfumers, and distilled from the finest ingredients Manufactured in India Points of Sale Sold through World of Titan Channel, key departmental store chains and Ecommer
Slide 27: 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
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Slide 30: Q1'22 Performance
Q1’22 Performance 29
Slide 31: Q1 Performance – Standalone (1/2)
Q1 Performance – Standalone (1/2) Company • The Company entered the quarter with a good sales momentum. The sales were hit only to a small extent until third week of April, primarily due to the temporary store closures in some important states. Thereafter, most stores were shut within a short span o
Slide 32: Q1 Performance – Standalone (2/2)
Q1 Performance – Standalone (2/2) Company • In Q1’22, Other income of Company is higher compared to last year due to dividend from TEAL of INR 24 cr. and higher interest income from significantly higher cash balances. Company also received rent waivers of INR 7 cr. which was recognized under ‘Other
Slide 33: Q1 Performance – Standalone: Jewellery
Q1 Performance – Standalone Jewellery • The division recorded Total Income of INR 2,467 cr. (excl. bullion sales of INR 424 cr.), growth of 109%, due to a weak base primarily due to zero sales in April of last year. Most of the sales of May month was lost in both the years. Despite the lower number
Slide 34: Q1 Performance – Standalone: Watches & Wearables
Q1 Performance – Standalone Watches & Wearables • The division recorded Total Income of INR 292 cr. in the quarter, growth of 291% as sales were nil in April month of last year and moreover the recovery this year has been faster than that witnessed last year when footfalls in stores were very weak d
Slide 35: Q1 Performance – Other business
Q1 Performance – Standalone Other business – Indian Dress Wear, Fragrances and Accessories • Other businesses grew by 212% on a weak base. • Being highly discretionary, all categories got impacted due to low opportunities to step out of home for work, social gatherings or for attending schools & col
Slide 36: Q1 Performance – Subsidiaries
Q1 Performance – Subsidiaries Titan Engineering and Automation Ltd (TEAL) - 100% owned Subsidiary • TEAL recorded total income of INR 69 cr. In Q1, a decline of 11%. • The business is seeing a strong comeback in the Automation Solutions Business over the last few months and the enquiries are very en
Slide 37: Gold Hedging Approach (1/2)
Gold Hedging Approach (1/2) • Titan’s philosophy of not taking any price exposure on Gold continues. • Titan procures gold either by way of Gold on Lease from authorized banks or by spot purchases through its gold exchange program, from spot bullion market or by way of outright jewellery purchases.
Slide 38: Gold Hedging Approach (2/2)
Gold Hedging Approach (2/2) Transition approach: • Open contracts as at 30 June 2021 (originally designated under the cashflow hedge method of accounting) would continue to be accounted under the cashflow hedge until closure of the contract. • Fair value hedge method of accounting would be carried o
Slide 39: Retail Network
Retail Network Net Additions (in Q1’22) As on 30th Jun’21 Stores Sq. Ft. Stores Towns Sq. Ft. Tanishq 5 20K 358 217 1.38mn Zoya 0 0 4 3 18K CaratLane 4 4K 121 44 109K Mia (1) (0.3K) 39 19 13K WOT (2) (5K) 509 229 405K Fastrack (2) (2K) 166 82 81K Helios 3 2K 106 46 87K Titan Eye+ 6 2K 605 245 389K T
Slide 40: Retail Growth – Q1'22
Retail Growth – Q1‘22 Q1’22 Sales value growth Like-to-Like growth Tanishq 115% 117% CaratLane 300% 260% World of Titan 86% 91% Fastrack 63% 80% Helios 73% 78% LFS (for Watches) 323% 324% Titan Eye+ 74% 47% 1. Above retail growth is based on secondary sales (at consumer prices) in Titan branded reta
Slide 41: P&L – Q1'22 - Standalone
P&L – Q1’22 - Standalone in INR Crores Q1 '20 Q1 '21 Q1 '22 YoY Revenue from Operations - Sale of products/ services 4,885 1,251 2,780 122% - Other operating revenue 54 611 469 Other Income 56 39 65 Total Income 4,996 1,901 3,314 74% COGS 3,613 1,478 2,559 73% Gross Contribution 1,382 423 755 79% Em
Slide 42: Total Income – Q1'22
Total Income – Q1’22 Total Income (1) Q1 '20 Q1 '21 Q1 '22 YoY Mix - Q1'22 (in INR Crores) Jewellery 4,047 1,182 2,467 109% 85% Watches 715 75 292 291% 10% Eyewear 149 30 67 120% 2% Others / Corporate (2) 85 13 64 379% 2% Standalone (w/o bullion sale) 4,996 1,300 2,890 122% 100% Jewellery - Bullion
Slide 43: EBIT – Q1'22
EBIT – Q1’22 EBIT (in INR Crores) Q1 '20 Q1 '21 Q1 '22 Growth % Jewellery 442 (54) 207 482% Watches 128 (164) (56) 66% Eyewear (11) (31) (13) 57% Others/ Corporate (1) (5) (40) (12) Standalone 553 (289) 126 143% Caratlane (5) (14) (4) TEAL 15 7 (1) Others/ Consol. Adj. (2) (9) (13) (33) Consolidated
Slide 44: Capital Employed - Standalone
Capital Employed - Standalone in INR Crores Segment Assets Segment Liabilities Capital Employed 31-Mar-21 30-Jun-21 31-Mar-21 30-Jun-21 31-Mar-21 30-Jun-21 Watches 1,932 2,126 678 684 1,254 1,441 Jewellery 8,646 9,035 7,130 6,485 1,516 2,550 Eyewear 414 425 221 210 193 216 Others 170 155 90 71 80 84
Slide 45: Performance Trends
Performance Trends 44
Slide 46: Quarterly Performance Trends: Company
Quarterly Performance Trends Company: Revenue 8,000 150% 7,000 100% 6,000 Rs Crores 5,000 50% 4,000 3,000 0% 2,000 -50% 1,000 - -100% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 Revenue 4,027 3,488 4,225 3,917 4,319 4,407 5,6
Slide 47: Quarterly Performance Trends: Jewellery
Quarterly Performance Trends Jewellery: Total Income 7,000 150.0% 6,000 100.0% 5,000 Rs Crores 4,000 50.0% 3,000 0.0% 2,000 -50.0% 1,000 - -100.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 Total Income 3,381 2,788 3,576 3,2
Slide 48: Quarterly Performance Trends: Watches & Wearables
Quarterly Performance Trends Watches & Wearables : Total Income 800 350.0% 700 300.0% 250.0% 600 200.0% Rs Crores 500 150.0% 400 100.0% 300 50.0% 0.0% 200 -50.0% 100 -100.0% - -150.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY
Slide 49: Quarterly Performance Trends: Volume and Gold Price
Quarterly Performance Trends Watches & Wearables : Volume growth 500% 400% 300% Growth (%) 200% 100% 0% -100% -200% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 Volume Growth 5% 9% 11% -1% 10% 21% 16% 0% 13% -1% -10% -5% -93%
Slide 50: Annual Performance Trends - Standalone
Annual Performance Trends - Standalone Company: Revenue 25,000 20,010 19,070 19,245 20,000 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 FY'21 Watches: Total Income Jewellery: Total Income 3,000 20,000 2,616 17,274 2,441 18,000 16,738 16,030 2,500 16,000 2,053
Slide 51: Annual Performance Trends - PBT, PAT, EBIT
Annual Performance Trends - Standalone Company: PBT Company: PAT 2,500 1,600 1,517 2,105 1,374 1,997 1,400 2,000 1,163 1,662 1,200 1,000 (Rs Crores) 1,500 1,370 877 (Rs Crores) 1,130 762 800 698 1,000 888 600 400 500 200 0 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 Wat
Slide 52: Annual Performance Trends – Capital Employed, ROCE, ROE
Annual Performance Trends – Standalone Capital Employed 8,000 7,451 7,553 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 FY'21 ROCE ROE 40% 30% 35.1% 35.2% 35% 24.5% 24.2% 30.9% 25% 23.3% 29.2% 21.1% 30% 25.8% 19.4% 20% 25% 20% 18.3% 15%
Slide 53: Dividend
Dividend 500 45% 450 40% 400 35% 350 30% 300 25% (Rs Crores) 250 20% 200 15% 150 10% 100 50 5% 0 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Dividend 111 155 186 186 204 195 231 333 444 355 355 Payout % 26% 26% 26% 25% 25% 28% 30% 29% 32% 23% 41% 52 Note : Above dividend payout ratio e
Slide 54: Market Capitalisation
Market Capitalisation 10 year CAGR: 23% 1,80,000 1,60,000 1,53,809 1,38,322 1,40,000 1,20,000 (Rs Crores) 1,01,372 1,00,000 83,656 82,893 80,000 60,000 41,082 40,000 34,801 30,078 20,295 22,772 23,300 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 FY'21 30th
Slide 55: 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 56: Sustainability @ Titan
Sustainability @ Titan Area Key Initiatives • INR 7 cr. was provided as a grant to franchisee and vendors to enable them to pay salaries during the period of disruption. Covid Support • Soft loan support to vendors and franchisees were provided on low interest rates during the quarter. 95% of this i
Slide 57: Sustainability @ Titan – Some Glimpses
Sustainability @ Titan – Some Glimpses O2 Concentrators handed over to the Covid awareness in Community World Environment Day celebration by Eye Camps in Devanahalli and Hospital by the DC Kanyas Yemaluru Roof top solar in Eyewear plant – Online sessions in Leap centres PwD’s trained in retail skill
Slide 58: Thank You
Thank You For any queries, please email to investor-relations@titan.co.in