Titan Company Limited · NSE:TITAN
Titan — Q4 FY2021 Earnings Presentation
54 slides from Titan's earnings presentation, Apr 29, 2021
Slide 1: Exchange filing cover letter for earnings presentation
SEC 14 / 2021-22 29th April 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 (East), Dalal Street
Slide 2: Earnings Presentation – Q4 and Full Year, FY '21
Titan Company Limited Earnings Presentation – Q4 and Full Year, FY ’21 (For quarter and 12 months, ended 31st March 2021) 29thApril, 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 ~$19 bn market cap annual revenue 1,909 * 2.5mn+ * stores sq.ft. retail space ~8 k employees on rolls * Includes Caratlane 4
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 12 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
Slide 13: Jewellery campaigns
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: Titan Edge mechanical watch
W TITAN ann MECHANICAL Edge Calibre 903 with wafer thin 2.2 mm mechanical movement.
Slide 19: Titan watches
> TITAN tithe ted tae Ge
Slide 20: Eyewear Division
Eyewear Division 19
Slide 21: 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 22: Eye Wear in-house brands
Eye Wear In-house brands Frames Sunglasses Lens Manufacturing Integrated Eyewear facility - Chikkaballapur 21
Slide 23: Titan Eye+ campaigns
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 24: Fragrances, Accessories & Indian Dress Wear (Taneira)
Fragrances, Accessories & Indian Dress Wear (Taneira) 23
Slide 25: 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 26: 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 28: Fragrances, Fastrack and Taneira campaigns
Slide 29: Q4'21 Performance
Q4’21 Performance 28
Slide 30: Q4 Performance – Standalone
Q4 Performance – Standalone Company • The Company continued to witness strong business momentum in the quarter and recorded revenue of INR 7,110 cr. (excl. bullion sale), growth of 61%, led by strong growth of 70% in Jewellery division. The base quarter, Q4’20, was weak due to lockdowns in second ha
Slide 31: Q4 Performance – Standalone: Jewellery
Q4 Performance – Standalone Jewellery • The division recorded revenue of INR 6,397 cr. (excl. bullion sales of INR 25 cr.), growth of 70%, with underlying retail growth of 32% in first two months of the quarter, 10% growth contribution by B2B order and a weak base of March month in last year. This i
Slide 32: Q4 Performance – Standalone: Watches & Eyewear
Q4 Performance – Standalone Watches & Wearables • The division recorded a revenue of INR 555 cr. in the quarter, at same level compared to last year. The recovery in the comparable two months of Jan & Feb was at ~90%. Margins were muted as gross margins were lower due to higher sale of lower margin
Slide 33: Q4 Performance – Standalone: Other business
Q4 Performance – Standalone Other business - Fragrances, Indian dress wear and Accessories • Other businesses had a revenue recovery of 84%, compared to the revenue of same quarter in last year. • Recovery rate in Taneira continued to be slow as the overall apparel sector continued to badly affected
Slide 34: Q4 Performance – Subsidiaries
Q4 Performance – Subsidiaries Titan Engineering and Automation Ltd (TEAL) - 100% owned Subsidiary • TEAL revenues declined by 25% in Q4, as the aerospace business continues to face challenges due to the continued headwinds in the industry. The automation business vertical is however showing good sig
Slide 35: Retail Network
Retail Network Net Additions (in FY’21) As on 31st Mar’21 Stores Sq. Ft. Stores Towns Sq. Ft. Tanishq 26 123K 353 218 1.36mn Zoya 0 0 4 3 18K CaratLane 25 29K 117 44 105K Mia 2 0.6K 40 19 13K WOT 12 2K 511 232 410K Fastrack (15) (9K) 168 84 83K Helios 11 7K 103 45 85K Titan Eye+ 15 2K 599 251 388K T
Slide 36: Retail Growth – Q4'21 and FY'21
Retail Growth – Q4‘21 and FY’21 Q4’21 FY’21 Sales value growth Like-to-Like growth Sales value growth Like-to-Like growth Tanishq 63% 47% 0% (9%) CaratLane 75% 35% 18% (15%) World of Titan 8% 7% (35%) (35%) Fastrack (4%) (2%) (42%) (40%) Helios 10% 6% (24%) (27%) LFS (for Watches) (3%) (3%) (47%) (4
Slide 37: P&L – Q4'21 & FY'21 - Standalone
P&L – Q4’21 & FY’21 - Standalone in INR Crores Q4 '20 Q4 '21 YoY FY '20 FY '21 YoY Revenue from Operations - Sale of products/ services 4,370 6,991 60% 19,733 19,046 -3% - Other operating revenue 59 144 277 1,556 Other Income 40 34 146 181 Total Income 4,469 7,169 60% 20,156 20,783 3% COGS 3,098 5,6
Slide 38: Total Income – Q4'21 & FY'21
Total Income – Q4’21 & FY’21 Total Income (1) Q4 '20 Q4 '21 YoY FY '20 FY '21 YoY Mix - FY'21 (in INR Crores) Jewellery 3,754 6,397 70% 16,738 17,274 3% 89% Watches 557 555 0% 2,616 1,580 -40% 8% Eyewear 108 127 18% 544 375 -31% 2% Others / Corporate (2) 50 65 30% 258 197 -24% 1% Standalone (w/o bul
Slide 39: EBIT – Q4'21 & FY'21
EBIT – Q4’21 & FY’21 EBIT (in INR Crores) (1) Q4 '20 Q4 '21 Growth % FY '20 FY '21 Growth % Jewellery 534 703 32% 2,061 1,685 -18% Watches 72 46 -36% 365 (65) Eyewear 2 23 (14) 23 Others/ Corporate (2) (54) (25) (158) (92) Standalone 554 747 35% 2,254 1,551 -31% Caratlane (3) 15 (11) 22 TEAL 21 9 79
Slide 40: Capital Employed - Standalone
Capital Employed - Standalone in INR Crores Segment Assets Segment Liabilities Capital Employed 31-Mar-20 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20 31-Mar-21 Watches 2,143 1,932 775 678 1,368 1,254 Jewellery 8,225 8,646 4,449 7,130 3,775 1,516 Eyewear 495 414 234 221 261 193 Others 217 170 91 90 127 8
Slide 41: Balance Sheet - Standalone
Balance Sheet - Standalone in INR Crores 31-Mar-20 31-Mar-21 Change Fixed Assets 1,129 1,067 (63) Right of use asset 870 854 (16) Intangible Assets 68 63 (4) Investments 909 759 (150) Other non-current assets 677 616 (61) Current Assets Inventories 7,741 7,984 243 Trade Receivables 214 291 76 Cash a
Slide 42: Performance Trends
Performance Trends 41
Slide 43: Quarterly Performance Trends: Company
Quarterly Performance Trends Company: Revenue 8,000 80% 7,000 60% 6,000 40% 20% Rs Crores 5,000 0% 4,000 -20% 3,000 -40% 2,000 -60% 1,000 -80% - -100% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 Revenue 4,027 3,488 4,225 3,917 4,319
Slide 44: Quarterly Performance Trends: Jewellery
Quarterly Performance Trends Jewellery: Total Income 7,000 80.0% 6,000 60.0% 5,000 40.0% Rs Crores 20.0% 4,000 0.0% 3,000 -20.0% 2,000 -40.0% 1,000 -60.0% - -80.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 Total Income 3,381 2,788
Slide 45: Quarterly Performance Trends: Watches & Wearables
Quarterly Performance Trends Watches & Wearables : Total Income 800 40.0% 700 20.0% 600 0.0% Rs Crores 500 -20.0% 400 -40.0% 300 200 -60.0% 100 -80.0% - -100.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 Total Income 517 576 539 49
Slide 46: Quarterly Performance Trends: Volume and gold price
Quarterly Performance Trends Watches & Wearables : Volume growth 40% 20% 0% Growth (%) -20% -40% -60% -80% -100% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 Volume Growth 5% 9% 11% -1% 10% 21% 16% 0% 13% -1% -10% -5% -93% -48% -26%
Slide 47: 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 48: 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 49: 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 50: 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% Note : Above dividend payout ratio is e
Slide 51: Market Capitalisation
Market Capitalisation 10 year CAGR: 23% 1,60,000 1,38,322 1,40,000 1,20,000 1,01,372 1,00,000 (Rs Crores) 83,656 82,893 80,000 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 FY'21 50 Note: Based on NSE c
Slide 52: 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 53: Sustainability @ Titan
Sustainability @ Titan Area Key Initiatives • CSR spend for the year include INR 13 cr. for Covid support with an additional INR 0.8 cr. contribution done by the employees. • INR 17 cr. was provided as a grant to franchisee and vendors to enable them to pay salaries during the period of disruption.
Slide 54: Thank You
Thank You For any queries, please email to investor-relations@titan.co.in