investor conf presentation jan 2012

8/3/2019 Investor Conf Presentation Jan 2012

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Titan Industries Limited

Delivering value by creating Brands

1January 2012
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Disclaimer

2

Certain statements are included in this release which contain words or phrases such aswill, aim, will likely result, believe, expect, will continue, anticipate, estimate,

intend, plan, contemplate, seek to, future, objective, goal, project, should,will pursue and similar expressions or variations of these expressions that are forward-looking statements. Actual results may differ materially from those suggested by theforward-looking statements due to certain risks or uncertainties associated with ourexpectations with respect to, but not limited to, our ability to implement our strategysuccessfully, the market acceptance of and demand for our products, our growth andexpansion, the adequacy of our allowance for credit to franchisees, dealers anddistributors, technological changes, volatility in income, cash flow projections and ourexposure to market and operational risks. By their nature, certain of the market risk

disclosures are only estimates and could be materially different from what may actuallyoccur in the future. As a result, actual future gains, losses or impact on net income couldmaterially differ from those that have been estimated.

In addition, other factors that could cause actual results to differ materially from thoseestimated by the forward-looking statements contained in this document include, but arenot limited to: general economic and political conditions in India and the other countrieswhich have an impact on our business activities; inflation, unanticipated turbulence in

interest rates, foreign exchange rates, the prices of raw material including gold anddiamonds, or other rates or prices; changes in Indian and foreign laws and regulations,including tax and accounting regulations; and changes in competition and the pricingenvironment in India. The Company may, from time to time make additional written andoral forward-looking statements, including statements contained in the Companys filingswith SEBI and the Stock Exchanges and our reports to shareholders. The Company doesnot undertake to update any forward-looking statements that may be made from time totime by or on behalf of the Company, to reflect events or circumstances after the date

thereof.
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How It All Began

3

1993: Europe Foray

1994: Timex JV

1996: Tanishq

2003: Fastrack

2007: Eyewear

2010: Fastrack

Accessories

2006: GoldPlus

1984: Conceived

1998: Sonata Launch

2005: Precision

Engineering (PED)

2008: Zoya

2009: Helios

1987: Launch of Titan watches

2011: Mia
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Luxury

Premium

Mid Market

Mass Market

Successful Brands

4
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Mid Market

Mass Market

Luxury

Premium

5

2

21

326

85

129

32

191

786 exclusive stores 155 Towns Over a million sft of retail space

713

Indias Largest Specialty retailer

Service Centres


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Singapore - 44

Malaysia- 92

Thailand- 21

Pakistan- 62

Sri Lanka- 67

Bangladesh - 70

Maldives - 15

Nepal - 30

Fiji- 4

Vietnam- 95

UAE- 120

Oman - 97

Saudi Arabia - 642

Qatar - 52

Bahrain - 57

Kuwait - 45

Mauritius- 17

Kenya - 23

Iran- 41

Ethiopia 11

Uganda - 15Djibouti - 1

Nigeria- 10

Ghana - 5

Yemen - 15

Brunei- 10

South Africa

Also has international operations

1,600 outlets6


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Where We Stand Today

Worlds 5th largest Watch Manufacturer

65% market share in organized watch market

Sonata: Indias largest selling watch brand

Tanishq: Indias leading Jewellery Player and a game changer

Titan Eye+: Indias largest retail chain in eyewear

Strength in Retail: Close to 800 stores with over 1 million sft

Distribution: More than 11,000 Multi-brand outlets

First acquisition completed Favre Leuba brand acquired for

Euro 1.5 million

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Watches Division

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Watches Four major brands

Sold through

Exclusive World of Titan outlets

Fastrack outlets

Multi-brand outlets Helios

Multi-brand dealers and stores

Large-format stores like Shoppers Stop,Lifestyle, etc.

Large network of exclusive servicecenters

Sophisticated Design & DevelopmentCenter

Core strength in Industrial, Retail andGraphic design

Numerous international award-winningdesigns to its credit

9

Hosur

Pantnagar Dehradun

Goa

Roorkee

Manufacturing &Assemblyfacilities


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10

Watches Distribution

11,000 dealers

2,500 townsRetail All India 326 showrooms (15 added YTD)

132 towns 333k SftWorld of Titan

85 stores / kiosks (38 added YTD)

47 towns 40k sftFastrack 21 stores (15 added YTD)

10 towns 36k sftHelios

745 outlets 345 townsService Centres

1,600 outlets

26 countriesInternational


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11

Jewellery Division


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Jewellery

Three major brands Tanishq, GoldPlus and Zoya

Sub-brand - Mia, for the working woman

Largest jewellery retailer in India

Manufacturing facilities in Hosur and Dehradun

Innovative Services Golden Harvest / Future scheme, gift vouchers,

gold exchange schemes and made to order facility

Loyalty Programmes - Anuttara & Ananta

Customer First and Lean initiatives in manufacturing and retailing

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131 stores including 2 Zoya stores (9 addedYTD)

394k sft (102k sft added YTD)

79 towns

Tanishq

32 stores (3 added YTD)

67k sft (16k sft added YTD)

32 townsGoldPlus

Jewellery Distribution


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14

Eyewear & Precision Engg. Division


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Eyewear

Indias largest optical retail chain

191 retail outlets across 65 towns (41 outlets added YTD)

State of the art eye-testing facilities

Lens manufacturing facility

Products include frames, sunglasses, contact lenses, ready

readers, lens cleaning solutions and other accessories

Three in-house brands

Titan, Eye+ and Dash Several international and luxury brands

Key differentiators Style consultants, Zero-error prescription,

free eye testing, scratch-resistant lenses, lens accuracy certificate

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Precision Engineering

Leverages engineering capabilities B2B business balances risk of B2C businesses

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Catering to

Aerospace industry Automotive Industry

Oil Exploration & Production

Machine building and Automation

Business

The Opportunity

India growing as a manufacturing base for precision products

Cost pressures and offset requirements guarantee a long term

opportunity

High cost of switching for customers

Large & growing market: US$ 32 billion globally

Clients include

Eaton, US Hamilton Sunstrand, US

Microtechnica, Italy

Pratt & Witney, US

Ford, UK

Bosch, India

Timken, India


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17

Q3 Performance


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Q3 - Background

High inflation coupled with rising interest rates leading to

slowdown in economys growth

Sharp depreciation of the Indian rupee affecting input costs

High gold prices coupled with significant volatility affect gold

volumes

Company focus on retail network expansion continues

49 outlets (84k sft) added in the quarter across divisions

Jewellery division launched Mia a sub brand for theworking woman initial response has been excellent


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Sales valuegrowth Like to likegrowth

World Of Titan 10% 8%

Tanishq 33% 26%

Goldplus 24% 13%Helios 4.7 times 18%

Fastrack 77% 21%

LFS Watches 24% -1%

Titan Eye+ 77% 26%

Q3 - Retail growth


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Company performanceQ3 Performance

YTD Performance

Revenue growth at 26% ; growth

slower due to high gold prices and

slowdown in economy

PBT growth : 12%

PAT growth : 19%

Revenue growth : 39%

PBT growth : 32%

PAT growth : 32%

1,968

200 138

2,471

225 164

-

500

1,000

1,500

2,000

2,500

3,000

Sales PBT PAT

RsCrores

Q3 FY10-11 Q3 FY11-12

4,779

479 347

6,644

631 456

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Sales PBT PAT

RsCrores

9M FY10-11 9M FY11-12


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Capital Employed

Higher inventory levels, cash deposits and investments in fixed assets

contributed to increase in capital employed

378

505

114 98

1,095

486

739

166117

1,508

-

200

400

600

800

1,000

1,200

1,400

1,600

Watches Jewellery Others Corporate Company

RsCrores

Mar-11 Dec-11


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Watches PerformanceQ3 Performance

YTD Performance

Volume growth : 11%


PBIT lower due to higher material

costs, Rupee depreciation and

higher advertising spend

Volume growth : 16%


327

60

383

48

0

50

100

150

200

250

300

350

400

450

Sales PBIT

RsCrores

Q3 FY10-11 Q3 FY11-12

941

180

1,116

163

0

200

400

600

800

1000

1200

Sales PBIT

RsCrores

9M FY10-11 9M FY11-12


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Jewellery PerformanceQ3 Performance

YTD Performance

Customer growth : 8%

Jewellery grammage growth : (-5)%

Studded share : 26.2%


PBIT growth : 19%

Customer growth : 17%

Jewellery grammage growth : 9%

Studded share : 26.9%


PBIT growth : 51%

1,587

150

1,986

178

-

500

1,000

1,500

2,000

2,500

Sales PBIT

RsCrores

Q3 FY10-11 Q3 FY11-12

3,666

322

5,264

487

-

1,000

2,000

3,000

4,000

5,000

6,000

Sales PBIT

RsCrores

9M FY10-11 9M FY11-12


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Eyewear & PED PerformanceQ3 Performance

YTD Performance


PED became profitable

Eyewear revenue growth : 37%


Eyewear Revenue growth : 33%

55

-5

94

5

-20

-

20

40

60

80

100

Sales PBIT

RsCrores

Q3 FY10-11 Q3 FY11-12

165

-8

237

0

-50

-

50

100

150

200

250

Sales PBIT

RsCrores

9M FY10-11 9M FY11-12


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Market Capitalisation

5001,018

3,530

4,4005,038

3,462

8,132

16,900

18,301

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

2003-04 2004-05 2005-05 2006-07 2007-08 2008-09 2009-10 2010-11 Jan'12

(Rs.

Crores)


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Recent Recognition

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Great Place to work award-15th overall position and 1st in retail IIM (Ahmedabad) Mr Bhaskar Bhat, CEO given the distinguishedalumni award

Business Today Mr. Bhaskar Bhat rated 4th best CEO

Star Retailer and Franchisee awards Titan wins Retailer of the year

Corporate

Northeast Consumer brands Titan watches wins most preferredbrand of watches category

Economic Times - Brand Titan ranked 73 amongst top 100 brands inthe country

Watches

Star Retailer and Franchisee awards Tanishq won the Retailcampaign of the year and the Retail design of the year

ET Manufacturing Excellence Awards Jewellery division awardedGold award in Engineering sector

QIMPRO awards Award for Best innovation in Jewellerymanufacturing

Jewellery


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Thank You

investor conf presentation jan 2012

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