Titan Company Limited · NSE:TITAN
Titan — Q1 FY2023 Earnings Presentation
59 slides from Titan's earnings presentation, Aug 5, 2022
Slide 1: Exchange filing cover letter for investor presentation
TITAN COMP/\NY SEC 39/ 2022-23 5 th August 2022 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)
Slide 2: Earnings Presentation for the quarter ended June 30, 2022
August 5, 2022 Titan Company Limited Earnings Presentation for the quarter ended June 30, 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: Agenda
Agenda Company Overview 1 Titan Journey | Titan at a Glance | Business Segments | Lifestyle Brands Performance Highlights 2 Company| Total Income| EBIT 3 Business Highlights Jewellery | Watches & Wearables | EyeCare | Other Businesses | CaratLane | TEAL 4 Retail Network Titan Presence | Retail Growt
Slide 5: Company Overview
Company Overview Titan Journey Titan at a Glance Business Segments Lifestyle Brands 4
Slide 6: Titan Journey
Titan Journey ** PED * Accessories 1992 2005 2010 2017 Conceived 1984 1998 2008 2013 1987 2003 2009 2016 ** 1996 2007 2011 ** * PED was demerged to wholly-owned subsidiary as TEAL ** Companies/ Brands through acquisitions/ joint ventures 5
Slide 7: Titan at a Glance
Titan at a Glance ₹ 280 bn ₹ 1,724 bn 2,303 2.9 mn+ FY’22 Total Income (1) Market Capitalization (2) Stores Retail Area sq ft ~9.5k 10 22 mn+ 366 Manufacturing and Employees on roll Assembly Facilities Encircle Members Town Presence Note: 1. Total Income excludes bullion sales 2. Market Capitalizati
Slide 8: Our Business Segments
Our Business Segments Fragrances and Fashion Jewellery Watches & EyeCare Accessories, Wearables Indian Dress Wear 7
Slide 9: Jewellery
Jewellery India’s Leading Organised Jewellery Retailer 2 Manufacturing facilities in Hosur & Pantnagar ~6% 237 606 Jewellery Town Presence Retail Store Network Leveraging technology in Market Share* Pan-India manufacturing ~14% 40%+ 15 Digitally influenced Recycled Gold usage New campaigns Sales in
Slide 10: Watches & Wearables
Watches & Wearables India’s Leading Watches Company 3 Assembly facilities in Roorkee, Pantnagar and Sikkim 882 8,500+ 272 Town Presence Exclusive Brand Outlets Multi Brand Outlets 2 Manufacturing facilities in Hosur Pan-India and Coimbatore 5 ~19% 12 Manufacturing & New campaigns Online sales Assemb
Slide 11: EyeCare
EyeCare India’s Most Trusted Optical Chain Manufacturing facility at Chikkaballapur 317 789 Town Presence Retail Store Network Pan-India 2 Lens Lab facilities at Noida & Kolkata 4.9 2 Google Store Ratings New collections (5 lakh+ reviews) Q1’23 10
Slide 12: Fragrances and Fashion Accessories
Fragrances and Fashion Accessories India’s Leading Fine Fragrances Brand 700+ 2,100+ Exclusive Brand Outlets Multi Brand Outlets Perfume variants 11 Female 1 13 Male New Fragrance 1 Unisex Collection in Q1’23 11
Slide 13: Indian Dress Wear
Indian Dress Wear Finest range of pure handcrafted weaves from across the country Weavershala is an initiative by Taneira towards supporting weavers with technical expertise and improving their 26 11 working conditions Retail Stores Town Presence 100+ 2 Q1’23 campaigns Clusters* & collections * Clus
Slide 14: Lifestyle Brands
Lifestyle Brands Watches & Fragrances and Indian Jewellery EyeCare Wearables Fashion Accessories Dress Wear Luxury $$$$ Premium $$$$ Mid Market $$$$ Mass Market $$$$ 13
Slide 15: Performance Highlights
Performance Highlights comPANY
Slide 16: Q1'23 Company Highlights – Standalone
Q1’23 Company Highlights – Standalone ₹ 8,649 cr 199% ₹ 1,121 cr 13.0% Total Income YoY Growth EBIT EBIT Margin • Company exhibited a strong performance in Q1’23 growing by 199% YoY (excluding bullion sales) over a Covid disrupted lower base of Q1’22. The 3-year CAGR came in at ~20.1% on the back of
Slide 17: Q1'23 Total Income Highlights - Standalone
Q1’23 Total Income Highlights - Standalone 88% 9% 2% 1% Watches & Segment Jewellery EyeCare Other Businesses Total Wearables Total Income 7,600 785 183 56 8,649 YoY Growth% 208% 169% 173% 300% 199% 8,649 7,600 785 183 56 2,467 292 67 2,890 14 Note: Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'
Slide 18: Q1'23 EBIT Highlights - Standalone
Q1’23 EBIT Highlights - Standalone 4.4% 13.0% 8.4% 13.5% 1,121 1,027 207 -19.2% 13.1% -19.8% 19.8% 126 103 -114% -18.9% 36 (13) (16) (10) (56) Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 Note: Jewellery Watches & Wearables EyeCare Other Businesses Total 1. Figures in ₹ Crores, unless
Slide 19: Q1'23 Total Income Highlights - Consolidated
Q1’23 Total Income Highlights - Consolidated 87% 8% 2% 3% Watches & Segment Jewellery EyeCare Others Total Wearables Total Income 7,995 786 183 144 9,131 YoY Growth% 204% 168% 173% 73% 195% 183 9,131 7,995 786 144 83 3,095 2,626 67 293 Note: Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'23 Q1'22 Q1'2
Slide 20: Q1'23 EBIT Highlights - Consolidated
Q1’23 EBIT Highlights - Consolidated 2.8% 12.5% 7.5% 13.2% 1,137 1,052 198 -20.7% 12.5% -19.8% 19.8% 98 -19.9% -11.1% 88 36 (13) (17) (16) (61) Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 Q1’22 Q1’23 Note: Jewellery Watches & Wearables EyeCare Others Total 1. Figures in ₹ Crores, unless stated o
Slide 21: Business Highlights
Business Highlights Jewellery Watches & Wearables EyeCare Other Businesses CaratLane TEAL 20
Slide 22: Q1'23 Jewellery Highlights
Q1’23 Jewellery Highlights • Sales during the Akshaya Tritiya (AT) quarter rebounded strongly after a ₹ 7,600 cr 208% 3-year gap. Gold and Studded jewellery both grew by ~260+% YoY Total Income YoY Growth • Compared to a normal Q1’20, the 3-year CAGR came in at 23.4% • Sales growth was driven by bot
Slide 23: Glimpses of Jewellery Campaigns
Glimpses of Jewellery Campaigns Video hyperlinks embedded for select campaigns 22
Slide 24: Glimpses of Jewellery Campaigns
Glimpses of Jewellery Campaigns Video hyperlinks embedded for select campaigns 23
Slide 25: Q1'23 Watches & Wearables Highlights
Q1’23 Watches & Wearables Highlights • Division clocked its best ever quarterly revenues on the back of healthy growth across channels and brands • Growth in all the channels came off a low base of Q1’22 (except ₹ 785 cr 169% Total Income YoY Growth E-Commerce). The wedding season worked really well
Slide 26: Glimpses of Watches Campaigns
Glimpses of Watches Campaigns Video hyperlinks embedded for the above campaigns 25
Slide 27: Glimpses of Wearables Campaigns
Glimpses of Wearables Campaigns Video hyperlinks embedded for the above campaigns 26
Slide 28: Titan World and Helios - Stores Transformation
Titan World and Helios - Stores Transformation The transformation of Titan World and expansion of Helios stores is offering a wider choice of premium brands. 28 Titan World store renovations were undertaken during the quarter 27
Slide 29: Q1'23 EyeCare Highlights
Q1’23 EyeCare Highlights • Division achieved its highest quarterly revenues of ₹183 cr ₹ 183 cr 173% Total Income YoY Growth in Q1’23 led by growth in all its major categories • 56 new stores were added in the quarter taking the total ₹ 36 cr 19.8% count to 789 stores EBIT EBIT Margin • Prescription
Slide 30: Q1'23 Other Businesses Highlights
Q1’23 Other Businesses Highlights • Fragrances and Fashion Accessories (F&FA) exhibited a 275% ₹ 56 cr 297% ₹ (10) cr (18.9)% YoY growth driven by healthy growth in Trade, LFS and E- Total Income YoY Growth EBIT EBIT Margin commerce • In Fragrances, Brand SKINN tapped into the premium segment with t
Slide 31: Key Subsidiaries Highlights: CaratLane
Key Subsidiaries Highlights: CaratLane 72.3% owned Subsidiary • CaratLane’s (CL) Revenues grew 204% YoY on the back of ₹ 483 cr 204% ₹ 34 cr 6.9% strong demand around Akshaya Tritiya (AT). CL achieved Total Income YoY Growth EBIT EBIT Margin its highest ever sales on the day of AT (20% higher than D
Slide 32: Key Subsidiaries Highlights: Titan Engineering & Automation Limited
Key Subsidiaries Highlights: Titan Engineering & Automation Limited Wholly owned Subsidiary • Total Income grew by 29% YoY with both the divisions of Rs. 89 cr 29% Rs. (5) cr (5.9)% Aerospace and Defence (AD) and Automation Solutions Total Income YoY Growth EBIT EBIT Margin (AS) performing equally w
Slide 33: Retail Network
Retail Network Titan Presence Retail Growth 32
Slide 34: Titan Jewellery Presence
Titan Jewellery Presence 395 * 1.53mn 237 Stores Area Sq. ft. Town Presence 6 25K 3 63 28K 24 Stores Area Sq. ft. Town Presence 13 7.7K 5 5 19K 4 Stores Area Sq. ft. Town Presence - - - 143 139K 53 Stores Area Sq. ft. Town Presence 5 7K 3 Note: 1. Net Additions vis-à-vis previous quarter ended March
Slide 35: Titan Watches & Wearables Presence
Titan Watches & Wearables Presence Exclusive Brand Outlets Presence Multi Brand Outlets Presence 570 429K 272 Stores Area Sq. ft. Town Presence 26 13K 22 8,000+ 2,100+ Multi Brand Multi Brand Retail 151 117K 60 Retailers Town Presence Stores Area Sq. ft. Town Presence 15 10K 4 560 128 Large Format L
Slide 36: Titan EyeCare Presence
Titan EyeCare Presence 786 481K 317 Stores Area Sq. ft. Town Presence 54 27K 26 3 2.5K 1 Stores Area Sq. ft. Town Presence 2 1.8K - Note: Net Additions vis-à-vis previous quarter ended March 31, 2022 35
Slide 37: Titan Indian Dress Wear Presence
Titan Indian Dress Wear Presence 26 75K 11 Stores Area Sq. ft. Town Presence 6 16K 2 Note: Net Additions vis-à-vis previous quarter ended March 31, 2022 36
Slide 38: Retail Growth
Retail Growth Sales Value Like to Like YoY Retail Growth% YoY Retail Growth% 202% 195% 370% 306% 241% 227% 230% 231% 278% 227% Large Format 358% Stores 338% 180% 185% Note: Retail sales growth captures secondary sales in Titan branded retail stores (including franchisees) and Large Format Stores; Wh
Slide 39: Financial Update
Financial Update Standalone P&L Consolidated P&L Total Income and EBIT Capital Employed Performance Trends Dividend Market Capitalization and Shareholding Pattern 38
Slide 40: Standalone P&L - Q1'23
Standalone P&L - Q1’23 P&L Statement (₹ Crores) Q1’22 Q1’23 Change % Revenue from Operations - Sale of products/ services 2,780 8,493 206% - Other operating revenue 469 468 Other Income 65 44 Total Income 3,314 9,005 172% COGS 2,559 6,777 165% Gross Contribution 755 2,228 195% % 26.1% 25.8% Employee
Slide 41: Consolidated P&L - Q1'23
Consolidated P&L - Q1’23 P&L Statement (₹ Crores) Q1’22 Q1’23 Change % Revenue from Operations - Sale of products/ services 3,004 8,975 199% - Other operating revenue 469 468 Other Income 46 44 Total Income 3,519 9,487 170% COGS 2,695 7,038 161% Gross Contribution 824 2,449 197% % 26.6% 26.8% Employ
Slide 42: Total Income and EBIT – Q1'23
Total Income and EBIT – Q1’23 Total Income (in ₹ Crores) Q1’22 Q1’23 YoY% EBIT (in ₹ Crores) Q1’22 Q1’23 YoY% Jewellery 207 1,027 396% Jewellery 2,467 7,600 208% Watches & Wearables (56) 103 284% EyeCare (13) 36 374% Watches & Wearables 292 785 169% Other Businesses (1) (16) (10) 34% EyeCare 67 183
Slide 43: Capital Employed - Consolidated
Capital Employed - Consolidated Business Segment Segment Assets Segment Liabilities Capital Employed (₹ Crores) 30-Jun-22 31-Mar-22 30-Jun-22 31-Mar-22 30-Jun-22 31-Mar-22 Jewellery 13,905 15,302 10,014 9,949 3,891 5,353 Watches & Wearables 2,437 2,276 925 915 1,512 1,361 EyeCare 496 463 275 268 221
Slide 44: Quarterly Performance Trends: Consolidated
Quarterly Performance Trends: Consolidated Operating Income & YoY Growth% 9,983 198% 7,469 7,421 9,087 7,279 7,301 121% 6,528 5,871 5,151 75% 4,567 4,889 4,662 4,711 59% 4,363 4,451 4,162 40% 4,107 35% 37% 29% 27% 12% 19% 16% 12% 8.8% 8.5% 2.1% 11% 3,049 4,103 -3.6% -11% -0.6% 3,583 1,378 FY22: 27,7
Slide 45: Quarterly Performance Trends: Jewellery - Consolidated
Quarterly Performance Trends: Jewellery - Consolidated Total Income & YoY Growth% 9,005 204% 6,653 7,995 6,496 6,379 6,468 5,606 4,997 4,105 4,164 3,899 3,425 3,649 3,643 3,645 3,650 3,592 71% 78% 3,358 2,825 2,626 59% 37% 39% 29% 29% 22% 10% 14% 14% 12% 16% 6.3% 0.1% 1,222 FY22: 24,478; 36% -5.0% -
Slide 46: Quarterly Performance Trends: Jewellery
Quarterly Performance Trends: Jewellery YoY Grammage Growth% and YoY Gold Rate change (22 kt) YoY Grammage Growth% YoY Gold Rate change 43% 170% 38% 124% 32% 101% 26% 22% 21% 49% 49% 45% 47% 24% 20% 15% 6% 6% 6% 15% -7% 8% 6% 7% 5% -3% 4% 4% 10% -5% -14% -14% 2% -1% 0% -20% 6% -31% -4% -6% -7% -81%
Slide 47: Quarterly Performance Trends: Watches & Wearables - Consolidated
Quarterly Performance Trends: Watches & Wearables - Consolidated Total Income & YoY Growth% 786 720 168% 716 689 710 679 641 627 625 578 596 543 531 558 551 559 519 492 72% 401 20% 29% 10% 15% 17% 18% 293 12% 1.1% 5.9% 7.9% 6.1% 5.1% 0.2% -2.5% -2.2% -12% FY20: 2,622; 7.1% FY19: 2,447; 15% -44% FY22
Slide 48: Quarterly Performance Trends: Watches & Wearables
Quarterly Performance Trends: Watches & Wearables Watches Volume Growth YoY% 109% 67% 21% 21% 16% 13% 9% 11% 10% 5% -1% 0% -1% -1% -5% -4% -10% -26% -48% 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 Q1'23
Slide 49: Quarterly Performance Trends: EyeCare - Consolidated
Quarterly Performance Trends: EyeCare - Consolidated Total Income & YoY Growth% 183 160 173% 154 156 149 132 129 128 133 127 134 120 124 113 109 108 101 93 94 67 70% 40% 28% 2.9% 26% 5.1% 16% 19% 18% 13% 18% 2.1% -0.9% 2.3% -2.6% 30 FY19: 509; 23% FY20: 544; 6.9% -7.0% FY22: 517; 38% FY18: 415; 0.1%
Slide 50: Annual Consolidated Performance Trends
Annual Consolidated Performance Trends Revenue & YoY Growth% 27,988 PBT & PBT% PAT & PAT% 10.6% 2,198 9.5% 9.8% 9.9% 21,204 37% 6.8% 7.0% 7.0% 19,961 20,474 21% 2,958 7.9% 16,245 2,102 1,493 23% 1,957 6.5% 1,389 4.8% 1,546 1,102 1,327 974 6% -3% FY'18 FY'19 FY'20 FY'21 FY'22 FY'18 FY'19 FY'20 FY'21
Slide 51: Annual Consolidated Performance Trends
Annual Consolidated Performance Trends Jewellery: Total Income & YoY Watches: Total Income & YoY EyeCare: Total Income & YoY Growth% Growth% Growth% 24,478 2.1% CAGR 16.6% CAGR 5.6% CAGR 2,622 509 517 2,447 46% 544 36% 2,132 415 17,319 17,963 375 25% 16,390 2,317 1,587 23% 38% 13,257 24% 15% 7% 7% 3
Slide 52: Dividend
Dividend Dividend (₹ Crores) Dividend Payout % 666 40% 32% 30% 31% 28% 29% 444 26% 25% 25% 23% 355 333 355 231 204 195 186 186 FY '13 FY '14 FY '15 FY '16 FY '17 FY '18 FY '19 FY '20 FY '21 FY '22 Note: Dividend payout ratios exclude Dividend Distribution Tax 51
Slide 53: Market Capitalization & Shareholding Pattern
Market Capitalization & Shareholding Pattern Market Capitalization Shareholding Pattern as on 30th June, 2022 18% CAGR 225,156 172,448 Retail 19% 138,322 Insurance Cos. & Banks 6% Promoters 101,372 Mutual Funds 53% 82,893 5% Foreign Institutional Investors 17% FY'19 FY'20 FY'21 FY'22 Q1'23 Note: Mar
Slide 54: Awards, ESG
Awards, ESG Awards & Recognition Sustainability @ Titan 53
Slide 55: Awards & Recognition
Awards & Recognition Guinness World Record 1.3 lakh eye tests in a single day MCX Good Delivery List across India Flexx Eyewear crafted from Reddot Product & Smart natural wood & titanium Category Winner 2022 54
Slide 56: 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 o
Slide 57: Sustainability @ Titan
Sustainability @ Titan • Girl child education and tribal children education, science education programs in schools and teacher Girl Child/ education program for the year 22-23 have started in the right earnest. 95% of Kanyas had passed the Board Education exams held in March 2022 • All skilling inte
Slide 58: Sustainability @ Titan
Sustainability @ Titan • Happy Eyes: The Cataract Free Backlog Block – The project piloted for the first ever time in Tamil Nadu showed encouraging progress in two blocks of Annur (31 Panchayats) and Aruppukottai (83 Panchayats) Responsible citizenship • The Integrated Village Development program 2.
Slide 59: Thank You
Thank You For any queries, please email to investor-relations@titan.co.in 58