Ttk Prestige Limited · NSE:TTKPRESTIG
Ttk Prestige — Analyst Meet June 2013
42 slides from Ttk Prestige's conference presentation, June 2013
Slide 1: Welcome to TTK
Welcome to TTK tp Temiecu ogs — & tk
Slide 2: The TTK Group
The TTK Group Today a Rs22 Billion group • 30 product categories and Manufacturing services commenced in • 16 manufacturing 1950 units Started in 1928 as an • Pioneered several • 12000 employees indenting agency categories in India • Exports to every • Pressure continent • Founded by Mr. TT Krishnam
Slide 3: Diversified Group Structure
Diversified Group Structure TTK Prestige Limited • Consumer durables - Listed • Pharmaceuticals, Medical devices & Consumer TTK Healthcare Limited products - Listed TTK Protected Devices • Condoms Limited TTK Services private • Non-Resident services and KPO Limited Cigna TTK Limited • Proposed Healt
Slide 4: Mission of the group
Mission of the group To provide quality consumer products at affordable prices Core values of the group Trust, Transparency and Knowledge
Slide 5: TTK Prestige Limited
TTK Prestige Limited • Incorporated in 1955. Shareholding • Flagship company of TTK Group • India’s largest kitchenware company. • IPO in 1994. • 3000 strong human capital Public and • Two brands in the portfolio. Prestige Inst. 25.1% and Manttra • 8 Manufacturing units-2 more being added Promoters
Slide 6: Board of Directors/ Management
Board of Directors/ Management Promoter Directors • Mr. TT Jagannathan – Executive Chairman • Mr. TT Raghunathan – Vice Chairman • Dr.(Mrs)Latha Jagannathan Executive Directors • Mr. S. Ravichandran – Managing Director • Mr. K. Shankaran – Director (Corporate Affairs) Independent Directors • Mr. Aja
Slide 7: Vision and Values
Vision and Values CORE VISION • A Prestige in every Indian Kitchen CORE VALUES • Quality products at affordable prices • Trust, Transparency, Knowledge and “Prestige” in whatever we do • Fair dealings with every stakeholder • Respect for Environment CORE STRATEGY • Providing Total Kitchen Solutions
Slide 8: The Journey So Far
THE JOURNEY SO FAR • 1955 – INCORPORATION • 1959 – FIRST MANUFATURING UNIT IN BANGALORE • 1981 – SECOND MFG UNIT IN HOSUR - TAMILNADU • TILL 1990 – A SINGLE PRODUCT COMPANY – JUST ALUMINUM OUTER LID PRESSURE COOKERS – DOMINANT IN SOUTHERN INDIA • 1990-94- LAUNCH OF SS PRESSURE COOKERS AND NON-STICK
Slide 9: The Journey So Far (continued)
……the journey so far • THIS PERIOD SAW THE LAUNCH OF STOVES AND APPLIANCES AND THE MAJOR MARKETING INITIATIVE OF EXCLUSIVE RETAIL NETWORK – PRESTIGE SMART KITCHENS • 2006 – LAUNCH OF WELL DIFFERENTIATED INNER LID PRESSURE COOKERS - NEW CAPACITIES IN UTHARKAND AND COIMBATORE • 2006- 2010 – TRANSFORMA
Slide 10: Product Categories Before 2001
PRODUCT CATEGORIES BEFORE 2001 JJLess than 100 SKUs
Slide 11: Product Categories 2013
PRODUCT CATEGORIES 2013 SEVERAL HUNDRED SKUs
Slide 12: Basic Philosophy That Led to Turnaround and Growth
BASIC PHILOSPHY THAT LEAD TO TURNAROUND AND GROWTH • FOCUS ON OCCUPYING THE MINDSHARE OF THE CONSUMER • FOCUS ON DOMINATING THE KITCHEN DOMAIN WITH DIFFERENTIATED PRODUCTS • FOCUS ON GROWTH , GAINING MARKET SHARE AND EXPANDING CUSTOMER BASE • KEY METRICS - GROWTH - CAPITAL EFFICIENCY - RETURN ON CAP
Slide 13: Fruits of the Journey
FRUITS OF THE JOURNEY WE DERISKED THE COMPANY FROM BEING DEPENDANT ON SINGLE PRODUCT AND SINGLE MARKET WE DERISKED THE MANUFACTURING AND SOURCING FROM BEING DEPENDENT ON A SINGLE LOCATION/ FEW SOURCES TODAY WE ARE OPERATING IN A MARKET SIZE OF RS. 90 BILLION AS COMPARED TO JUST RS.5 BILLION 10
Slide 14: Awards & Acolades
Awards & Acolades Awards of 2012 | | see & BRAND oT hana tk
Slide 15: Strengths of the company
Strengths of the company • 8 manufacturing • Within and outside units India • Excellent Product • Dedicated vendors development within India to capability implement our • Strengths in Deep designs draw of Aluminum and SS Manufacturing Sourcing Brand Marketing Quality •Comprehensive Sales and Marketi
Slide 16: The Prestige Brand
The Prestige Brand Core values of the brand Leaders in Pressure are cookers, cookware, Induction TRUST, SAFETY, DURABILITY Tops Prestige is a Superbrand • Pressure cookers Product • Metal spoon innovations friendly cookware • Duplex gas stoves Marketing innovations India’s Largest Kitchen appliance
Slide 17: The Prestige product portfolio – widest in the industry
The Prestige product portfolio – widest in the industry Preparation before Kitchen cooking Food preparation Kitchen Hardware supplements Pressure Chopping Heaters Chimneys cooking Blending Cooking Toasting Storeware Sautéing, fryi Beverage Grinding ng etc makers Processing Baking Mixer grinders Pres
Slide 18: The market for us
The market for us Chimneys Wet Grinders Rice cookers Mixer Grinders 660.00 540.00 460.00 2,200.00 Non Stick 6% 5% 5% 21% cookware 860.00 8% Gas Stoves Small 1,980.00 Appliances 19% 910.00 9% Induction Pressure cooktops cookers 1,300.00 1,450.00 13% 14% Mixer Grinders, Gas Stoves a big opportunity. W
Slide 19: Distribution Structure
Distribution Structure Traditional Modern Own Retail Institutions Trade Trade Prestige Direct Dealers Hypermarkets CSD Smart Kitchen Authorized Super Re- BPCL markets distributors Sub Shop in Shop HPCL Dealers Corporate and Govt.
Slide 20: Distribution
Distribution Infrastructure and Reach Channel contributions Unique National Large sales structure presence force with multiple Institutions channels Own retail 4% 17% Own retail 26 branch 300 direct & locations 1000 indirect Modern format Traditional trade Traditional retail 58% Over 250,000 Product
Slide 21: Retail initiative
Retail initiative Key highlights Results of the Retail initiative Unique National pioneering effort Quick reach of new products presence •First kitchen appliance brand •450 outlets •200 towns Brand is today seen in a new light. Show cases the brand in the intended and complete format for 365 days Hi
Slide 22: Innovation the Key to Growth
INNOVATION THE KEY TO GROWTH AND TO MEET CHALLENGES SOME KEY INNOVATIONS • HANDI SHAPPED PRESSURE COOKERS • APPLE COOKERS WHICH WON DESIGNER AWARDS • CUSTOMISATION OF INDUCTION COOKTOPS FOR INDIAN MARKETS. • INDUCTION BASE ON A HARD ANODIZED BODY
Slide 23: Microchef – A Breakthrough Innovation
MICROCHEF A BREAKTHROUGH INNOVATION • MICROWAVE COMPATIBLE PRESSURE COOKER • INNOVATED AND DEVELOPED IN-HOUSE • GLOBAL PATENT IN PROCESS • RENDERS MICROWAVE COOKING MORE HEALTHY AND EFFICIENT • RENDERS MICROWAVE USE MORE VERSATILE • A GROWTH DRIVER FOR EXPORT MARKET • WELL RECEIVED IN EUROPE DURING
Slide 24: Factors Leading to Growth and Sustainability
FACTORS LEADING TO GROWTH AND SUSTAINABILITY General economic factors •Economy itself is growing between 8-9% for the last 6 years till 2011 •Consistent increase in number of middle income groups •Rural employment guarantee scheme •Growing disposable income in the hands of consumer Consumer behavior
Slide 25: Factors Leading to Growth and Sustainability: TTK Prestige's role
FACTORS LEADING TO GROWTH AND SUSTAINABILITY………. TTK Prestige’s role • Driving growth through Innovation • Close contact with consumer • Offering innovated and differentiated products ahead of competition • Offering of wide range and total kitchen solutions • Expanding distribution – width, depth an
Slide 26: Brand positioning
Brand positioning • To position ourselves as the thought and concept leaders in the Kitchen appliance category. • To create products and concepts that come from latent consumer insights. • All development is towards making the kitchen a smarter place that will enhance convenience, reduce time spent
Slide 27: Financials
FINANCIALS hana tk
Slide 28: Sales Trend
SALES TREND 16000.00 13858.93 14000.00 Rs. Millions 12000.00 11227.12 10000.00 8000.00 7755.78 6000.00 5168.03 4162.08 4000.00 3398.35 2932.50 2000.00 0.00 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Slide 29: Cookers, Cookware, Appliances
13900.00 470.70 COOKERS COOKWARE APPLIANCES OTHERS 12900.00 11900.00 298.50 10900.00 5833.30 9900.00 8900.00 4549.60 7900.00 218.90 6900.00 2448.50 2828.00 5900.00 2246.90 172.80 4900.00 163.50 1716.10 3900.00 1539.90 151.50 1159.60 2900.00 131.70 5106.40 846.20 872.50 731.90 635.60 4132.10 539.70 3
Slide 30: EBIDTA/Operating Cap. Employed %
EBIDTA/OPERATING CAP. EMPLOYED % 80.00 70.00 67.51 65.33 63.45 58.37 60.00 50.00 43.14 40.00 33.87 30.00 21.80 22.55 20.00 11.66 13.17 10.00 0.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 31: Turnover/EBIDTA Ratio
18.00 TURNOVER/EBIDTA RATIO 16.00 16.24 15.67 15.04 14.74 14.00 12.00 Series1 10.00 9.65 9.16 8.79 8.41 8.00 8.01 6.44 6.00 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 32: Sales, Other Income and Profit: Q4 and Full Year
(Rs. Mlns.) Q4 FULL YEAR 2012-13 2011-12 2012-13 2011-12 SALES 2894.6 2366.8 13858.9 11227.1 OTHER INCOME 8.9 14.7 473 448 EBIDTA 439.1 331.5 2084.5 1759.2 PROFIT BEFORE TAX 386.9 290.8 1852 1632.6 PROFIT AFTER TAX 280.3 197.4 1330.9 1133.8 EBIDTA/SALES 15.17 14.01 15.04 15.67 SALES GROWTH % 22.30 4
Slide 33: Statement of Audited Financial Results for the year ended 31st March 2013
TTK Prestige Limited Statement of Audited Financial Results for the year ended 31st March 2013 (Rs in lakhs) S.No. PARTICULARS Quarter Ended Year Ended 31.03.2013 31.12.2012 31.03.2012 31.03.2013 31.03.2012 Audited Unaudited Audited Audited Audited 1. Sales/Income from Operations 28,946 44,476 23,66
Slide 34: Going Forward
GOING FORWARD 29> > hana tk
Slide 35: We Are Now
WE ARE NOW No. 1 Brand in No. 1 Brand in No. 1 Brand in Value Pressure cookers Cookware added Gas Stoves India’s only company India’s largest No. 1 Brand in to offer the complete Kitchen appliance Induction Cook tops Induction Cooking company solution
Slide 36: We Are Committed to Take This Leadership Position Even Further
WE ARE COMMITTED TO TAKE THIS LEADERSHIP POSITION EVEN FURTHER!
Slide 37: Investments in Manufacturing
Investments in Manufacturing - about Rs.3250 Million between FY 2010-11 and FY 2013-14 We have doubled pressure cooker capacity in last 12 months We are quadrupling Cookware capacity which will be in place during FY 2013-14 All our investments comprise state of the art manufacturing infrastructure a
Slide 38: Opportunities
OPPORTUNITIES STRONG FUNDAMENTALS OF INDIAN ECONOMY EXPECTED GDP GROWTH OF ABOVE 6% SHIFT IN INCOME GROUPS TOP OF THE PYRAMID MARKET SEGMENT ADDITIONAL PRODUCT CATAGORIES IN THE KITCHEN/DINING SEGMENT INCREASE IN RURAL CONSUMPTION PREFERENCE TO BRANDED QUALITY PRODUCTS VAST UNTAPPED
Slide 39: Challenges
CHALLENGES IN THE SHORT RUN TRANSIENT SLOW DOWN IN TAMILNADU AND KERALA IN THE MEDIUM TERM CONTINUING INFLATIONARY TREND IN ITEMS OF DAY TO DAY CONSUMPTION ANDHIGHER INTEREST RATES WHICH CAN IMPACT CONSUMER SENTIMENT VOLATALITY OF INDIAN RUPEE AND LAG IN PRICE REVISIONS LOWER GDP GROWTH SINC
Slide 40: Our Response to Challenges
OUR RESPONSE TO CHALLENGES WE BELIEVE THAT WE WILL STRIKE A BALANCE BETWEEN OPPORTUNITIES AND CHALLENGES WE HAVE ALREADY BROAD BASED OF OUR PRODUCT RANGE AS WELL AS CONSUMER BASE – SEEING EXCELLENT GROWTHS IN NON-SOUTH MARKETS WE WILL CONTINUE TO WIDEN OUR PRODUCT RANGE AND CONSUMER REACH SCAL
Slide 41: Safe Harbour
SAFE HARBOUR THIS PRESENTATION MAY CONTAIN STATEMENTS WHICH ARE FUTURISTIC IN NATURE. SUCH STATEMENTS REPRESENT THE INTENTIONS OF THE MANAGEMENT AND THE EFFORTS BEING PUT IN BY THEM TO REALISE CERTAIN GOALS. THE SUCCESS IN REALISING THESE GOALS DEPENDS ON VARIOUS FACTORS BOTH INTERNAL AND EXTERNAL.
Slide 42: Thank you
Thank you tk