Titan Company Limited · NSE:TITAN
Titan — Q2 FY22 Earnings Presentation
36 slides from Titan's earnings presentation, Oct 27, 2021
Slide 1: Exchange filing cover letter
TIT/\N COMP/\NY SEC 68 / 2021-22 27th October 2021 The General Manager, DCS - CRD The General Manager, DCS - CRD BSE Limited National Stock Exchange oflndia Ltd Corporate Relationship Department Exchange Plaza, 1st Floor, New Trading Ring Bandra-Kurla Complex, Rotunda Building, P J Towers Bandra (Ea
Slide 2: Earnings Presentation – Q2 FY'22 and H1 FY'22
Titan Company Limited Earnings Presentation – Q2 FY’22 and H1 FY’22 (For quarter and half year ended 30th September 2021) 27th October, 2021 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: 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 at a glance
Titan at a glance ~$3.3 bn ~$26 bn TTM Revenue (1) Market Capitalization (2) 1,969 2.6mn+ 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 30th Sep ‘21 All numbers are on consolidated basis 4
Slide 6: 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 1,550 POS in 33 countries Largest network of exclusive service centers; 667 watch care centers in 241 towns
Slide 7: Our Brands
Our Brands Luxury Premium Mid Market Mass Market 6
Slide 8: Q2 FY22 Performance
Q2 FY22 Performance 7
Slide 9: Q2 FY22 Performance - Standalone
Q2 FY22 Performance - Standalone Company • Riding on the strong recovery in demand across its consumer businesses, Titan’s Revenue from Operations at INR 6,977 cr. in Q2 FY22 witnessed a growth of 78% compared to INR 3,927 cr. in Q2 FY21 (excluding bullion sales in both the years). • YoY growth, on
Slide 10: Q2 FY22 Performance - Standalone: Jewellery
Q2 FY22 Performance - Standalone Jewellery • Division has been witnessing strong sales post the second Covid-19 wave with Q2 FY22’s Total Income at INR 6,106 cr., registering a growth of 77% compared to INR 3,446 cr. in Q2 FY21 (excluding bullion sales in both the years). • Within the overall mix, p
Slide 11: Q2 FY22 Performance – Standalone: Watches & Wearables
Q2 FY22 Performance – Standalone Watches & Wearables • Division recovered rapidly with sales acceleration witnessed across all product brands. Total Income in Q2 FY22 at INR 687 cr. witnessed a growth of 72% over INR 400 cr. of Q2 FY21. • E-commerce salience has been higher in the recent few quarter
Slide 12: Q2 FY22 Performance – Standalone: Eyewear
Q2 FY22 Performance – Standalone Eyewear • Division swiftly recovered to surpass pre-pandemic levels during this quarter, whilst recording its best ever quarterly revenue. Total income in Q2 FY22 at INR 160 cr. witnessed a growth of 70% YoY compared to INR 94 cr. in Q2 FY21. • Structural changes mad
Slide 13: Q2 FY22 Performance – Key Subsidiaries
Q2 FY22 Performance – Key Subsidiaries Titan Engineering & Automation Limited (TEAL) – Wholly-owned Subsidiary • TEAL recorded Total Income of INR 53 cr. and EBIT loss of INR 1 cr. in Q2 FY22 compared to Total Income of INR 90 cr. and EBIT of INR 18 cr. in Q2 FY21, respectively, a subdued performanc
Slide 14: Retail Network
Retail Network Net Additions (in H1’22) As on 30th Sep’21 Stores (#) Sq. Ft. Stores (#) Towns (#) Sq. Ft. Tanishq 15 64K 368 226 1.42mn Zoya 0 0 4 3 18K CaratLane 6 7K 123 46 112K Mia 2 2K 42 19 15K WOT 2 (2K) 513 231 408K Fastrack (4) (3K) 164 83 80K Helios 9 7K 112 48 92K Titan Eye+ 30 13K 629 258
Slide 15: Retail Growth – Q2 FY22 & H1 FY22
Retail Growth – Q2 FY22 & H1 FY22 Q2’22 H1’22 Sales value Like-to-Like Sales value Like-to-Like growth (%) growth (%) growth (%) growth (%) Tanishq 75% 66% 85% 75% CaratLane 166% 117% 193% 139% World of Titan 79% 78% 81% 80% Fastrack 51% 52% 54% 57% Helios 69% 51% 70% 53% LFS 103% 102% 131% 130% (fo
Slide 16: P&L – Q2 FY22 & H1 FY22 Standalone
P&L – Q2 FY22 & H1 FY22 Standalone in INR Crores Q2 '20 Q2 '21 Q2 '22 YoY H1 '20 H1 '21 H1 '22 YoY Revenue from Operations - Sale of products/ services 4,371 3,892 6,921 78% 9,256 5,143 9,701 89% - Other operating revenue 64 426 249 118 1,037 718 Other Income 31 71 50 87 110 115 Total Income 4,466 4
Slide 17: Total Income – Q2 FY22 & H1 FY22
Total Income – Q2 FY22 & H1 FY22 Total Income (1) Q2 '20 Q2 '21 Q2 '22 YoY H1 '20 H1 '21 H1 '22 YoY Mix - H1'22 (in INR Crores) Jewellery 3,528 3,446 6,106 77% 7,575 4,628 8,573 85% 86% Watches 719 400 687 72% 1,433 475 979 106% 10% Eyewear 154 94 160 70% 303 124 227 82% 2% Others / Corporate (2) 65
Slide 18: EBIT – Q2 FY22 & H1 FY22
EBIT – Q2 FY22 & H1 FY22 EBIT (in INR Crores) Q2 '20 Q2 '21 Q2 '22 Growth % H1 '20 H1 '21 H1 '22 Growth % Jewellery 384 285 793 178% 826 231 1,000 332% Watches 113 (4) 92 N.M 241 (168) 36 N.M Eyewear 2 9 37 327% (10) (22) 24 N.M Others/ Corporate (1) (29) (8) (9) (34) (48) (21) Standalone 470 282 91
Slide 19: Capital Employed – Standalone
Capital Employed – Standalone in INR Crores Segment Assets Segment Liabilities Capital Employed 31-Mar-21 30-Sep-21 31-Mar-21 30-Sep-21 31-Mar-21 30-Sep-21 Watches 1,932 2,217 678 781 1,254 1,436 Jewellery 8,646 10,913 7,130 8,460 1,516 2,453 Eyewear 414 431 221 217 193 214 Others 170 162 90 73 80 8
Slide 20: Balance Sheet – Standalone
Balance Sheet – Standalone in INR Crores 31-Mar-21 30-Sep-21 Change Fixed Assets 1,067 1,029 (38) Right of use asset 854 800 (54) Intangible Assets 63 53 (10) Investments 759 762 3 Other non-current assets 616 693 77 Current Assets Inventories 7,984 9,916 1,932 Trade Receivables 291 507 216 Cash and
Slide 21: Performance Trends
Performance Trends 20
Slide 22: Quarterly Performance Trends – Company
Quarterly Performance Trends Company: Revenue 8,000 150% 7,000 100% 6,000 Rs Crores 5,000 50% 4,000 3,000 0% 2,000 -50% 1,000 - -100% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 Revenue 4,027 3,488 4,225 3,917 4,319 4,
Slide 23: Quarterly Performance Trends – Jewellery
Quarterly Performance Trends Jewellery: Total Income 7,000 150.0% 6,000 100.0% 5,000 Rs Crores 4,000 50.0% 3,000 0.0% 2,000 -50.0% 1,000 - -100.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 Total Income 3,381 2,788 3,
Slide 24: Quarterly Performance Trends – Watches & Wearables
Quarterly Performance Trends Watches & Wearables : Total Income 800 350.0% 700 300.0% 250.0% 600 200.0% Rs Crores 500 150.0% 400 100.0% 300 50.0% 0.0% 200 -50.0% 100 -100.0% - -150.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY
Slide 25: Quarterly Performance Trends – Volume and Grammage Growth
Quarterly Performance Trends Watches & Wearables : Volume growth 80% 60% 40% 20% Growth (%) 0% -20% -40% -60% -80% -100% -120% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 Volume Growth 5% 9% 11% -1% 10% 21% 16% 0% 13%
Slide 26: Performance Trends – Standalone
Performance Trends – Standalone Company: Revenue 30,000 25,000 23,860 20,010 19,245 20,000 19,070 (Rs Crores) 15,656 15,000 12,999 11,105 10,000 5,000 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM Watches: Total Income Jewellery: Total Income 3,000 25,000 2,616 21,220 2,441 2,500 20,000 2,053 2,126 2,08
Slide 27: Performance Trends – Standalone PBT, PAT, EBIT
Performance Trends – Standalone Company: PBT Company: PAT 3,000 1,800 1,650 1,600 1,517 2,417 2,500 1,374 2,105 1,400 1,997 1,163 2,000 1,200 (Rs Crores) 1,662 (Rs Crores) 1,000 877 1,500 1,370 762 1,130 800 698 1,000 888 600 400 500 200 0 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM FY'16 FY'17 FY'18
Slide 28: Performance Trends – Capital Employed, ROCE, ROE
Performance Trends – Standalone Capital Employed 9,000 7,900 8,000 7,451 7,553 7,000 6,182 6,000 5,194 (Rs Crores) 5,000 4,312 4,000 3,551 3,000 2,000 1,000 0 Mar'16 Mar'17 Mar'18 Mar'19 Mar'20 Mar'21 Sep'21 ROCE ROE 40% 30% 35.1% 35.2% 35% 33.4% 24.5% 30.9% 24.2% 23.3% 29.2% 25% 22.9% 30% 21.1% 25.
Slide 29: 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 : Dividend payout ratios exclude D
Slide 30: Market Capitalization
Market Capitalization 2,50,000 10 year CAGR: 26% 2,00,000 1,91,926 (Rs Crores) 1,50,000 1,38,322 1,01,372 1,00,000 83,656 82,893 50,000 41,082 34,801 30,078 20,295 22,772 23,300 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 30th Sep'21 Note: Based on NSE clos
Slide 31: Key Awards – Best Board
Key Awards – Best Board • The Company, during the quarter, won Amrop-ET India's Best Board Awards, in the 'Large Cap' category and was chosen as the 'Champion of Champions' amongst the winners. • The award followed a three-stage assessment framework of 400 companies listed on the National Stock Exch
Slide 32: 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 33: Sustainability @ Titan
Sustainability @ Titan CSR focus at Titan continues 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 of
Slide 34: Sustainability @ Titan
Sustainability @ Titan Area Key Initiatives • Grants to franchisees and vendors totaling to INR 7.7 cr during H1 FY22 were provided to enable them to pay salaries during the period of disruption. Covid Support • Additionally soft loan support was also provided at low interest rates. 95% of the loan
Slide 35: Sustainability @ Titan – Some Glimpses
Sustainability @ Titan – Some Glimpses Titan Kanya – 15,000+ students back to learning Titan LeAP – Reaching out to 4,600 youth for skilling Project Happy Eyes – Restarted in community Footprints – Titan’s Volunteering Initiative
Slide 36: Thank You
Thank You For any queries, please email to investor-relations@titan.co.in