Titan Company Limited · NSE:TITAN
Titan — Q3 FY2022 Earnings Presentation
37 slides from Titan's earnings presentation, Feb 3, 2022
Slide 1: Titan Company – Stock exchange cover letter
TITAN COMPANY SEC 87 / 2021-22 3rd February 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 – Q3 FY'22 and 9M FY'22
Titan Company Limited Earnings Presentation – Q3 FY’22 and 9M FY’22 (For quarter and nine months, ended on 31st December 2021) 3rd February, 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 ~$3.7 bn ~$30 bn TTM Revenue (1) Market Capitalization (2) 2,064 2.7mn+ Stores sq.ft. of Retail space ~9.2K Notes: Employees on rolls 1. TTM : Trailing Twelve Months (excluding bullion sales) 2. Market Capitalization as of 31st Dec ‘21 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/ MBOs 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: Q3 FY22 Performance
Q3 FY22 Performance 8
Slide 10: Q3 FY22 Revenue Highlights - Standalone
Q3 FY22 Revenue Highlights - Standalone Jewellery 8,563 708 Watches & Wearables 37% YoY [6,249] 29% YoY [550] 2yr CAGR 26% 2yr CAGR 6% 9,516* 36% YoY [6,984] 2yr CAGR 24% Other Businesses 52 156 43% YoY [36] Eyewear 26% YoY [124] 2yr CAGR 2% 2yr CAGR 8% Figs in INR Crores; *Revenue includes Other In
Slide 11: Q3 FY22 EBIT Highlights - Standalone
Q3 FY22 EBIT Highlights - Standalone Q3 '20 Q3 '21 Q3 '22 14.4% 14.7% 1,369 1,260 12.0% 11.6% 13.0% 10.9% 811 752 701 677 11.6% 10.3% 21.6% 8.3% 18.1% 52 57 82 22 34 (7) (19) (7) (69) Jewellery Watches & Wearabales Eyewear Others/ Corporate (1) Standalone Figs in INR Crores except % that indicate EB
Slide 12: Q3 FY22 Performance – Key Segment Highlights
Q3 FY22 Performance – Key Segment Highlights Jewellery Watches & Wearables • Record quarterly sales driven by buoyant festive season demand in Oct & Nov 2021 • Division witnessed good growth across all product brands; Multi brand channels, both online • Both walk-ins and buyers exhibited 30%+ growth
Slide 13: Q3 FY22 Performance – Key Subsidiaries Highlights
Q3 FY22 Performance – Key Subsidiaries Highlights Titan Engineering & Automation Limited (TEAL) – Wholly-owned Subsidiary 126 • The Automation Solutions Business is showing encouraging signs in the market with new orders 87 coming in from different industry verticals with exports showing similar tra
Slide 14: Retail Network
Retail Network Net Additions (in 9M’22) As on 31st Dec’21 Stores (#) Sq. Ft. Stores (#) Towns (#) Sq. Ft. Tanishq 29 110K 382 231 1.47mn Zoya 0 0 4 3 18K CaratLane 6 8K 129 47 120K Mia 2 2K 42 19 15K WOT 9 3K 520 232 413K Fastrack (5) (4K) 163 83 79K Helios 23 16K 126 52 101K Titan Eye+ 83 40K 682 2
Slide 15: Retail Growth – Q3 FY22 & 9M FY22
Retail Growth – Q3 FY22 & 9M FY22 Q3’22 9M’22 Sales value Like-to-Like Sales value Like-to-Like growth (%) growth (%) growth (%) growth (%) Tanishq 37% 31% 58% 50% CaratLane 84% 56% 122% 86% World of Titan 24% 22% 47% 45% Fastrack 9% 11% 30% 32% Helios 43% 30% 55% 41% LFS 35% 33% 66% 65% (for Watche
Slide 16: P&L – Q3 FY22 & 9M FY22 Standalone
P&L – Q3 FY22 & 9M FY22 Standalone in INR Crores Q3 '20 Q3 '21 Q3 '22 YoY 9M '20 9M '21 9M '22 YoY Revenue from Operations - Sale of products/ services 6,106 6,912 9,381 36% 15,362 12,055 19,082 58% - Other operating revenue 100 375 134 219 1,412 852 Other Income 20 37 55 106 147 170 Total Income 6,
Slide 17: P&L – Q3 FY22 & 9M FY22 Consolidated
P&L – Q3 FY22 & 9M FY22 Consolidated in INR Crores Q3 '20 Q3 '21 Q3 '22 YoY 9M '20 9M '21 9M '22 YoY Revenue from Operations - Sale of products/ services 6,454 7,243 9,903 37% 16,150 12,738 20,150 58% - Other operating revenue 73 376 134 190 1,413 853 Other Income 23 40 57 112 129 158 Total Income 6
Slide 18: Total Income – Q3 FY22 & 9M FY22
Total Income – Q3 FY22 & 9M FY22 Total Income (1) Q3 '20 Q3 '21 Q3 '22 YoY 9M '20 9M '21 9M '22 YoY Mix - 9M'22 (in INR Crores) Jewellery 5,409 6,249 8,563 37% 12,984 10,877 17,136 58% 88% Watches 625 550 708 29% 2,059 1,025 1,687 65% 9% Eyewear 133 124 156 26% 436 248 383 54% 2% Others / Corporate
Slide 19: EBIT – Q3 FY22 & 9M FY22
EBIT – Q3 FY22 & 9M FY22 EBIT (in INR Crores) Q3 '20 Q3 '21 Q3 '22 Growth % 9M '20 9M '21 9M '22 Growth % Jewellery 701 752 1,260 68% 1,527 983 2,260 130% Watches 52 57 82 45% 293 (111) 118 N.M Eyewear (7) 22 34 50% (16) 0 58 N.M Others/ Corporate (1) (69) (19) (7) (103) (68) (28) Standalone 677 811
Slide 20: Capital Employed – Standalone
Capital Employed – Standalone in INR Crores Segment Assets Segment Liabilities Capital Employed 31-Mar-21 31-Dec-21 31-Mar-21 31-Dec-21 31-Mar-21 31-Dec-21 Watches 1,932 2,156 678 843 1,254 1,312 Jewellery 8,646 11,055 7,130 9,568 1,516 1,487 Eyewear 414 442 221 242 193 201 Others 170 166 90 80 80 8
Slide 21: Performance Trends
Performance Trends 20
Slide 22: Quarterly Performance Trends
Quarterly Performance Trends Operating Revenue (Standalone) & Growth % YoY 9,461 124% 6,947 7,110 6,977 45% 6,206 33% 5,672 78% 4,407 4,672 4,940 61% 4,225 3,917 4,319 4,435 4,429 4,027 34% 3,927 36% 3,488 19% 9% 11% 26% 14% 9% 12% 2,825 7% 1% -5% -11% 1,261 -74% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q
Slide 23: Quarterly Performance Trends – Jewellery
Quarterly Performance Trends Jewellery Total Income & Growth % YoY 8,563 6,397 109% 57% 6,249 6,106 40% 5,409 70% 29% 4,890 77% 3,576 3,986 3,292 3,572 37% 4,047 37% 3,582 3,528 3,754 3,381 3,446 13% 21% 13% 16% 2,788 10% 6% 11% -2% -2% 2,467 -6% 1,182 -71% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19
Slide 24: Quarterly Performance Trends – Watches & Wearables
Quarterly Performance Trends Watches & Wearables Total Income & Growth % YoY 715 719 708 676 687 641 539 594 625 555 576 531 291% 494 557 550 517 400 10% 292 3% 17% 15% 19% 20% 72% 29% 6% -2% 7% 6% -2% 5% 0% -12% 75 -44% -90% Q1 '18 Q2 '18 Q3 '18 Q4 '18 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '
Slide 25: Quarterly Performance Trends – Eyewear
Quarterly Performance Trends Eyewear Total Income & Growth % YoY 154 120% 160 156 149 132 130 127 129 133 109 120 124 113 93 108 101 94 2% 6% 19% 40% 70% 29% 67 26% 16% 20% 13% 18% 2% -3% 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 '20 Q1
Slide 26: Quarterly Performance Trends – Volume and Gold Price
Quarterly Performance Trends Watches & Wearables : Volume growth % 67% 11% 21% 16% 21% 10% 13% 5% 9% -1% -5% 0% -10% -1% -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 Jewellery: Gold price chang
Slide 27: Annual Performance Trends – Standalone
Annual Performance Trends – Standalone Company: Revenue 26,374 20,010 19,245 19,070 15,656 12,999 11,105 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM Company: PAT Company: PBT 2,219 2,969 2,105 1,517 1,997 1,374 1,662 1,163 1,370 877 1,130 762 698 888 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM FY'16 FY'17 F
Slide 28: Annual Performance Trends – Standalone
Annual Performance Trends – Standalone Capital Employed 8,860 7,451 7,553 6,182 5,194 4,312 3,551 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Dec'21 ROCE ROE 37.5% 28.0% 35.1% 35.2% 24.5% 24.2% 30.9% 23.3% 29.2% 21.1% 25.8% 19.4% 18.3% 12.2% FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM FY'16 FY'17 FY'18 FY
Slide 29: Annual Performance Trends – Standalone
Annual Performance Trends – Standalone Jewellery: Total Income Watches: Total Income Eyewear: Total Income 23,534 2,616 2,441 2,242 17,274 2,053 2,126 544 16,030 16,738 1,974 511 509 13,036 1,580 414 415 375 375 10,485 8,723 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM FY'16 FY'17 FY'18 FY'19 FY'20 FY'21
Slide 30: Retail Network Trend (#Stores)
Retail Network Trend (#Stores) Tanishq Mia Zoya Caratlane 382 353 327 287 253 193 208 117 129 92 55 38 40 42 32 36 36 30 0 2 0 2 15 3 3 4 4 4 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Dec'21 WOT Fastrack Helios Titan Eyeplus 499 511 520 682 474 486 486 452 584 599 537 500 448 404 166 172 183 168 163
Slide 31: Dividend
Dividend Dividend Payout % 500 45% 41% 444 450 40% 400 35% 32% 355 355 350 30% 333 28% 30% 300 26% 26% 26% 25% 25% 29% 23% 25% (Rs Crores) 250 231 204 20% 195 200 186 186 155 15% 150 111 10% 100 50 5% 0 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Note : Dividend payout ratios exclude D
Slide 32: Market Capitalization
Market Capitalization 10 year CAGR: 31% (Rs Crores) 2,23,935 1,38,322 1,01,372 83,656 82,893 41,082 34,801 30,078 22,772 23,300 20,295 16,916 8,172 FY'10 FY'11 FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 31st Dec'21 Note: Based on Titan’s closing prices on National Stock Exchange (NS
Slide 33: Key Awards – Product Designs
Key Awards – Product Designs Eyewear 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 34: 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 35: Sustainability @ Titan
Sustainability @ Titan Area Key Initiatives • We continue our community vaccination support. Till date we have covered 14,787 individuals. Need based support is also being extended in wave 3 of Covid spread. • Grants to franchisees and vendors totaling to INR 7.7 cr during 9M FY22 were provided to e
Slide 36: Sustainability @ Titan – Some Glimpses
Sustainability @ Titan – Some Glimpses Titan Kanya – Diamond Harbour, Community Vaccination 14,787 Titan LeAP – Skilling Project Happy Eyes West Bengal individuals covered Solar Plant – Jew ISCM National Energy Conservation Award Roof Top Oxygen Park - Jew ISCM Eye Care Division
Slide 37: Thank You
Thank You For any queries, please email to investor-relations@titan.co.in