Titan Company Limited · NSE:TITAN
Titan — Q3 FY2021 Earnings Presentation
51 slides from Titan's earnings presentation, Feb 10, 2021
Slide 1: Exchange filing cover letter for investor presentation
SEC 109 / 2020-21 10th February 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 St
Slide 2: Earnings Presentation – Q3 FY'21 and 9M FY'21
Titan Company Limited Earnings Presentation – Q3 FY ’21 and 9M FY’21 (For quarter and nine months, ended 31st December 2020) 10thFebruary, 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 ~$2.8 bn ~$19 bn annual revenue market cap 1,854 * ~8 k stores with 2.5mn+ sq.ft. retail space employees on rolls *Note : Store count includes Caratlane stores also. 4
Slide 6: Our Strengths
Our Strengths Design and Development 800+ New time products every year reddot Award to 2 Edge watches Differentiated Jewellery Collections Customized lenses with 3D visual mapping Manufacturing 12 Manufacturing and assembly facilities State of the art Karigar Centres for Jewellery Components exporte
Slide 7: Our Brands
Our Brands Luxury Premium Mid Market Mass Market 6
Slide 8: Jewellery Division
Jewellery Division 7
Slide 9: 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 10: Jewellery manufacturing facilities
Jewellery Karigar Center, Hosur • Pantnagar • Sikkim Manufacturing Facilities/ Karigar Centers • Hosur 9
Slide 11: Jewellery - Stores
Jewellery - Stores 10
Slide 12: Pads
Pads WP REVEL IN NATURE
Slide 13: Watches & Wearables Division
Watches & Wearables Division 12
Slide 14: 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 15: 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 14 Watch Assembly Unit, Roorkee Watch Assembly Unit ,Sikkim
Slide 16: Watches & Wearables - Stores
Watches & Wearables - Stores ‘World of Titan’ Store 15
Slide 17: Introducing
INTRODUCING uD TL TAN G RANDMA ed by the TRAQ vy TITAN A “2% a\ This.new year, Fos (ae TRIHARDER ere
Slide 18: Eyewear Division
Eyewear Division 17
Slide 19: 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 20: Eye Wear in-house brands
Eye Wear In-house brands Frames Sunglasses Lens Manufacturing Integrated Eyewear facility - Chikkaballapur Lens Labs 19
Slide 21: Eyewear campaign
DON'T LET YOUR MASK FOG, Socho Mat. Sach Hai! Best quality spectacles @ Than Aatifog Lame? FRAMES, CUSTOMISED FOR EVERY INDIAN FACES. INDIFIT FITAN CYepIUS, Covtiied By Govt Titan Fastrch ‘Approved Labs’ Frames Cy =O = PROGRESSIVES 7 Designs | 9 Technologies
Slide 22: Fragrances, Accessories & Indian Dress Wear (Taneira)
Fragrances, Accessories & Indian Dress Wear (Taneira) 21
Slide 23: 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 24: 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
Slide 25: 24
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Slide 26: TA Product
) TA PRODUCT,
Slide 27: Q3'21 Performance
Q3’21 Performance 26
Slide 28: Q3 Performance – Standalone
Q3 Performance – Standalone Company • The Company witnessed good consumer demand in the festive season and recorded revenue of INR 6,947 cr. (excl. bullion sale), growth of 12%, led by strong growth of 16% in Jewellery division. Other two divisions have also moved closer to the full recovery. • The
Slide 29: Q3 Performance – Standalone
Q3 Performance – Standalone Company • In line with the Company's strategy to focus on primary business and proprietary brands, and as mutually agreed with Montblanc Services B.V., the Company has exercised the full put option on 8th December 2020 as per the joint venture agreement and would be dives
Slide 30: Q3 Performance – Standalone: Jewellery
Q3 Performance – Standalone Jewellery • The division has been witnessing improving sales trajectory and recorded revenue of INR 6,249 cr. (excl. bullion sales of INR 340 cr.), growth of 16%. This was also aided by another quarter of higher contribution from coin sales, although lower than 14% contri
Slide 31: Q3 Performance – Watches & Wearables
Q3 Performance – Standalone Watches & Wearables • The division had a recovery rate of 88% in Q3, compared to the revenue of same quarter in last year and recorded a revenue of INR 550 cr. in the quarter. • The E-commerce channel is leading the recovery with very strong absolute growth of over 30%. T
Slide 32: Q3 Performance – Other businesses
Q3 Performance – Standalone Other business - Fragrances, Indian dress wear and Accessories • Other businesses had a revenue recovery of 77%, compared to the revenue of same quarter in last year. • 'Taneira’ opened another store in Mumbai during the quarter, taking the total store count for the busin
Slide 33: Q3 Performance – Subsidiaries
Q3 Performance – Subsidiaries Titan Engineering and Automation Ltd (TEAL) - 100% owned Subsidiary • TEAL had a decline of 31% in Q3. The Automation Business has been doing well, on the back of Medical Devices order for detecting TB and Covid-19. The Aerospace Business continues to face headwinds due
Slide 34: Retail Network
Retail Network Net Additions (in 9M’21) As on 31st Dec’20 Stores Sq. Ft. Stores Towns Sq. Ft. Tanishq 24 101K 351 214 1.34mn Zoya 0 0 4 3 18K CaratLane 16 17K 108 41 93K Mia 2 0.6K 40 19 13K WOT 0 (4K) 499 225 404K Fastrack (14) (8K) 169 83 84K Helios 6 5K 98 43 82K Titan Eye+ (13) (10K) 571 236 376
Slide 35: Retail Growth – Q3'21 and YTD'21
Retail Growth – Q3‘21 and YTD’21 Q3’21 9M’21 Sales value growth Like-to-Like growth Sales value growth Like-to-Like growth Tanishq 13% 7% (18%) (23%) CaratLane 39% 10% (5%) (30%) World of Titan (14%) (15%) (47%) (47%) Fastrack (24%) (22%) (53%) (51%) Helios (9%) (14%) (35%) (36%) LFS (for Watches) (
Slide 36: P&L – Q3'21 & 9M'21 - Standalone
P&L – Q3’21 & 9M’21 - Standalone in INR Crores Q3 '20 Q3 '21 YoY 9M '20 9M '21 YoY Revenue from Operations - Sale of products/ services 6,106 6,912 13% 15,362 12,055 -22% - Other operating revenue 100 375 219 1,412 Other Income 20 37 106 147 Total Income 6,226 7,324 18% 15,687 13,614 -13% COGS 4,663
Slide 37: Total Income – Q3'21 & 9M'21
Total Income – Q3’21 & 9M’21 Total Income (1) Q3 '20 Q3 '21 YoY 9M '20 9M '21 YoY Mix - 9M'21 (in INR Crores) Jewellery 5,409 6,249 16% 12,984 10,877 -16% 89% Watches 625 550 -12% 2,059 1,025 -50% 8% Eyewear 133 124 -7% 436 248 -43% 2% Others / Corporate (2) 59 61 4% 208 132 -37% 1% Standalone (w/o
Slide 38: EBIT – Q3'21 & 9M'21
EBIT – Q3’21 & 9M’21 EBIT (in INR Crores) (1) Q3 '20 Q3 '21 Growth % 9M '20 9M '21 Growth % Jewellery 701 752 7% 1,527 983 -36% Watches 52 57 9% 293 (111) Eyewear (7) 22 (16) - Others/ Corporate (2) (69) (19) (103) (68) Standalone 677 811 20% 1,701 804 -53% Caratlane 3 21 (7) 8 TEAL 28 6 57 31 Other
Slide 39: Capital Employed - Standalone
Capital Employed - Standalone in INR Crores Segment Assets Segment Liabilities Capital Employed 31-Mar-20 31-Dec-20 31-Mar-20 31-Dec-20 31-Mar-20 31-Dec-20 Watches 2,143 1,902 775 650 1,368 1,252 Jewellery 8,225 8,755 4,449 6,898 3,775 1,857 Eyewear 495 425 234 210 261 215 Others 217 201 91 98 127 1
Slide 40: Performance Trends
Performance Trends 39
Slide 41: Quarterly Performance Trends
Quarterly Performance Trends Company: Revenue 8,000 60% 7,000 40% 6,000 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 Revenue 4,027 3,488 4,225 3,917 4,319 4,407 5,67
Slide 42: 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 Total Income 3,381 2,788 3,576
Slide 43: 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 Total Income 517 576 539 494 594 6
Slide 44: Watches volume growth; Jewellery gold price and grammage
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 Volume Growth 5% 9% 11% -1% 10% 21% 16% 0% 13% -1% -10% -5% -93% -48% -26% Jewelle
Slide 45: Annual Performance Trends - Standalone
Annual Performance Trends - Standalone 5-Yr CAGR: Company: Revenue 10.9% 25,000 20,010 20,000 19,070 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 5-Yr CAGR: 5-Yr CAGR: 12.2% Watches: Total Income 6.4% Jewellery: Total Income 3,000 18,000 16,738 2,615 16,030 2,
Slide 46: Annual Performance Trends - Standalone PBT and PAT
Annual Performance Trends - Standalone 5-Yr CAGR: 5-Yr CAGR: 13.0% Company: PBT Company: PAT 14.8% 2,500 1,600 1,518 2,105 1,374 1,997 1,400 2,000 1,662 1,163 1,200 (Rs Crores) 1,500 1,000 (Rs Crores) 1,130 762 800 698 1,000 888 600 500 400 200 0 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'16 FY'17 FY'18 FY'
Slide 47: Annual Performance Trends – Capital Employed, ROCE, ROE
Annual Performance Trends – Standalone Capital Employed 8,000 6,825 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 ROCE ROE 40% 30% 35.1% 35.2% 35% 32.4% 24.5% 24.2% 25% 23.3% 29.2% 21.1% 30% 25.8% 19.4% 20% 25% 20% 15% 15% 10% 10% 5% 5%
Slide 48: Dividend
Dividend 500 35% 450 30% 400 350 25% 300 20% (Rs Crores) 250 15% 200 150 10% 100 5% 50 0 0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Dividend 111 155 186 186 204 195 231 333 444 355 Payout% 26% 26% 26% 25% 25% 28% 30% 29% 32% 23% Note : Above dividend payout ratio is excluding the Dividend
Slide 49: Market Capitalisation
Market Capitalisation 10 year CAGR: 24% 1,60,000 1,39,129 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 31st Dec'20 48 Note: Based on
Slide 50: 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 51: Thank You
Thank You For any queries, please email to investor-relations@titan.co.in