TITAN

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 (East), Dalal Street, Fort, MUMBAI -400 051 MUMBAI -400 001 Symbol: TITAN Scrip Code: 500114 Dear Sirs, Sub: Second quarter earnings call for FY 2021-22 -Investors Presentation Further to our communication dated 14th October 2021, attached is a copy of the investor presentation regarding second quarter earnings as required under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Kindly take the same on record and acknowledge receipt. truly, TAN COMPANY LIMITED i esh Shetty General Counsel & Company Secretary Encl. As stated Titan Company Limited 'INTEGRITY' No.193, Veerasandra, Electronics City P.O Off Hosur Main Road, Bengaluru -560 100 India, Tel : 91 80 -67047000, Fax: 91 80 -67046262 Registered Office No. 3, SIPCOT Industrial Complex Hosur 635 126 TN India, Tel 914344 664199, Fax 914344 276037, CIN: L74999TZ1984PLC001456 www.titan.co.in A TATA Enterprise 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 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 relied on in connection with any contract or binding commitment whatsoever. Certain statements are included in this release containing words or phrases such as “will,” “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 these forward-looking statements due to certain risks or uncertainties associated with our expectations with respect to, but not limited to, our ability to implement our strategy successfully, the market acceptance of and demand for our products, our growth and expansion, the adequacy of our allowance for credit to franchisees, dealers and distributors, technological changes, volatility in income, cash flow projections and our exposure to market and operational risks. By their nature, certain market risk disclosures are only estimates and could be materially different from what may actually occur in the future. As a result, actual future gains, losses or impact on net income could materially differ from those that have been estimated. In addition, other factors that could cause actual results to differ materially estimates in the forward-looking statements include, but are not limited to, general economic and political conditions in India and the other countries that have an impact on our business activities; inflation, unanticipated variance in interest rates, foreign exchange rates, the prices of raw material including gold and diamonds, or other rates or prices, changes in Indian and foreign laws and regulations, Acts of God, acts of terrorism, acts of war and pandemics; tax and accounting regulations, and changes in competition and the pricing environment in India. The Company may, from time to time make additional written and oral forward-looking statements, including statements contained in the Company’s filings with SEBI and the Stock Exchanges and in our reports to shareholders. The Company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the Company, to reflect events or circumstances after the date thereof. 2 The Journey 1984 1992 1998 Conceived 1987 Timex JV 1996 2003 2005 2008 2010 PED 2007 2009 Accessories 2011 * 2013 2016 2017 Perfumes 3 * PED was demerged to wholly-owned subsidiary as TEAL Titan at a glance ~$26 bn ~$3.3 bn TTM Revenue (1) Market Capitalization (2) 2.6mn+ 1,969 sq.ft. of Retail space Stores ~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 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 Jewellery Eyewear Largest jewellery retailer in the country 3 manufacturing facilities Titan Eyeplus: India’s largest optical retail chain 4 state of the art karigar centers Integrated Lens & Frame manufacturing facility at Chikkaballapur Studded jewellery manufactured mostly in-house Zero-error testing, Vision check online, Remote eye testing Plain gold jewellery mostly outsourced Tie-up with Sankar Nethralaya for training of staff and optometrists Fragrances & Accessories, Indian Dress Wear SKINN fragrances (Crafted in France by celebrated perfumers, and distilled from the finest ingredients) through World of Titan Channel, key departmental chains and E-commerce Fine French perfumes manufactured in India with attractive price points One of the highest selling perfumes in all departmental stores Taneira, Titan’s youngest brand, anchored in special occasion wear Sarees from across India 5 Our Brands Luxury Premium Mid Market Mass Market 6 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 a moderately benign quarter with low footfalls of the pandemic last year, was driven by healthy growth in all business segments with Jewellery clocking 77%, Watches & Wearables at 72% and Eyewear seeing 70% growth, respectively. • The underlying gross margin has been gradually improving and was at best levels over the recent 6 quarters. The improvement has been driven primarily by recovery of Jewellery’s gross margin but is still below corresponding pre-pandemic period of Q2 FY20 due to change in business mix and lower studded ratio. • Company achieved highest ever Profit before tax of INR 868 cr. for the quarter compared to INR 238 cr. in the same quarter previous year. • The Company (including CaratLane) accelerated its store additions to 60 stores (net) in YTD FY22. 8 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, plain recorded a higher growth than studded YoY; while studded has also grown, it is yet to reach pre-pandemic levels. Coin sales that were at double digits in the overall mix in Q2 FY21, have normalized to ~5% this quarter. • Wedding sales for Q2 FY22 were higher compared to corresponding periods in FY20 & FY21. Sales from GEP and Golden Harvest plan also did well both YoY and compared to pre-pandemic levels. • Gross margins have been on an improving trajectory, driven by the improving product mix, and were higher than Q2 FY21 but lower than pre-pandemic Q2 FY20. (Studded ratio in Q2 FY22 was 30% vs 26% of Q2 FY21) • EBIT came in at INR 793 cr. in Q2 FY22 as compared to INR 285 cr. in Q2 FY21. • Digital Gold is a new pilot offering that helps customers purchase gold online with an ability to convert it into jewellery at a later stage. Initial enrolments have been encouraging with interest being witnessed amongst the younger population for this product. • The mandatory hallmarking of gold jewellery in 256 districts that came into effect in Q1 FY22 has Tanishq and all our brands 100% compliant in all aspects. 9 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 quarters contributing now to 25%+ of overall sales, compared to ~18% pre- pandemic same period. Trade channel continued to do well. • Retail channel sales recovery was at 90%+ of pre-pandemic levels with majority markets opening in Aug’21. Total walk-ins in malls are at ~65% of pre-pandemic levels and LFS at 70% pre-pandemic. • Tier-2 cities have been witnessing better recovery in walk-ins compared to metros. • Gross margin improved over Q2 FY21 driven by a healthier product mix but is still to reach levels seen in Q2 FY20. • Division clocked EBIT of INR 92 cr. in Q2 FY22 (highest in the previous 8 quarters) compared to EBIT loss of INR 4 cr. in Q2 FY21. 10 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 made in the business for gross margin improvement and cost structures in the last 18 months, along with the sales recovery helped the division clock the best ever EBIT margin of 23.0% this quarter. • Chikkaballapur factory was awarded the 5S certificate by JUSE (Union of Japan Scientist & Engineers). As part of green initiatives, solar power installation having a capacity of 361 KW was completed in the factory. Other business – Indian Dress Wear, Fragrances and Accessories • The other segments of the Company comprising Indian Dress Wear (Taneira), Fragrances and Accessories recorded Total Income of INR 46 cr. in Q2 FY22, a growth of ~106%, compared to INR 23 cr. in Q2 FY21. All divisions recorded marginal growth over the pre-pandemic base with demand uptick led by End-of-Season Sale and good recovery in retail, departmental stores & E-commerce. Women’s bags continued to be a strong focus led by high growths witnessed in E-commerce and entry into leading department chains. • All 14 stores of 'Taneira' were operational for about 80% of the total available store days during the quarter. Trunk shows, Pop-up stores and Taneira@Home resumed with relaxations. The brand launched ‘Tarang’ a collection of beautiful tussar sarees in vivid hues in Sep’21. 11 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 performance due to supply chain disruptions leading to delay in execution and final deliveries of projects. • The Automation Solutions Business continued its momentum with the highest ever order acquisition in the 2nd quarter securing significant opportunities in the Electrical Vehicle segment products. The order wind and pipeline are robust and supply chain deliveries are improving as shortage of semiconductors and logistics restrictions continue to ease. • In Aerospace & Defense business, there is strong recovery in single aisle, helicopter and business jet businesses with twin aisle continuing to experience certain challenges. Overall visibility is better than last year for both the key businesses with healthy new enquiries. CaratLane – 72.3% owned Subsidiary • CaratLane continued to do well in both online and offline channels emerging as a strong omni player with Total Income of INR 293 cr. in Q2 FY22 exhibiting a growth of 95% compared to INR 150 cr. in Q2 FY21. EBIT at INR 14 cr. in Q2 FY22 compared to INR 1 cr. in Q2 FY21. • The stellar performance led by improvement in all parameters from Gross margin to final profitability was on the back of healthy growth and product mix witnessed in studded sub-segment. • Growth in website traffic was robust in the quarter. Core gifting initiatives continuing to see good traction. 12 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 400K Taneira 0 (3K) 14 6 48K Total 60 85K 1,969 308 2.6mn 13 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% (for Watches) Titan Eye+ 69% 59% 70% 61% 1. Above retail growth is based on secondary sales (at consumer prices) in Titan branded retail stores (including franchisee stores) and LFS only. Reported revenue is based on secondary sales to consumers in L1 and L2 stores and primary sales to L3 stores, distribution partners and institutionalclients. Consumerdiscounts,franchiseepay-outsandGSTis nettedofffromconsumerprices forreportedrevenue. 2. Retail growthnumbersarenotstrictlycomparablewith previous year duetodifferentoperationaldaysbecauseoflockdowns. 14 Note : Other operating revenue includes bullion sale of INR 192 cr. and INR 391 cr. in Q2’22 and Q2’21 respectively. For the half year, it includes bullion sale of INR 616 cr. and INR 992 cr. in H1’22 and H1’21 respectively. 15 i R O T C G E A I O T E D E L P L P n n I N R C r o r e s e v e n u e f r o m - S a l e o f p - O t h e r o p e t h e r I n c o m e o t a l I n c o m e O G S r o s s C o n t r i b m p l o y e e b e n d v e r t i s i n g e f f e c t i v e H e d t h e r e x p e n s e o t a l O v e r h e B I T D A e p r e c i a t i o n & B I T e s s : F i n a n c e B T e s s : T a x A T r o r a u e f g e s a d A e O p d u t i n t i o i t s s m x p e r a t i o n s c t s / s e r v g r e v e n u e n e x p e n s e o r t i z a t i o n e n s e i c e s Q 2 4 4 3 1 ' 2 , 3 , 4 , 1 , 3 2 1 - 3 7 5 4 4 1 3 0 7 6 3 6 3 2 6 2 9 8 4 7 7 4 2 0 2 1 4 1 6 8 8 6 5 3 4 4 4 0 1 9 9 0 Q 2 3 4 2 1 1 ' 2 , 8 4 , 3 , 9 , 4 2 4 2 , 0 3 2 2 1 1 9 2 7 8 8 0 1 5 8 9 3 6 8 8 4 3 3 9 2 6 1 9 7 2 2 1 4 0 7 5 3 2 4 8 9 9 Q 2 6 7 5 1 1 ' 2 , 9 2 , 2 , 4 , 7 2 1 - 4 7 , 0 9 8 2 6 2 2 4 5 2 2 9 7 0 1 9 0 9 1 4 6 2 4 1 9 0 0 5 5 1 9 1 1 4 1 3 5 8 7 1 Y o 1 1 2 2 4 2 Y 7 6 8 2 2 1 4 - 2 7 2 6 8 2 8 4 2 8 8 5 2 4 5 9 4 3 5 2 2 % % % % % % % % % % % % % % % H 1 9 9 6 2 1 1 1 ' 2 , 2 1 , 4 , 7 , 7 5 2 - 7 , 5 , 1 1 , 0 9 2 6 0 5 1 8 6 5 1 1 5 7 4 6 4 2 7 5 6 9 6 8 7 1 1 0 1 9 5 5 5 2 3 1 2 1 1 H 1 5 1 6 4 1 1 ' 2 , 1 , 0 1 , 2 , 4 , 8 4 6 4 , 6 1 1 ( ( ( 1 4 3 1 9 6 2 3 6 8 7 6 5 6 9 9 2 7 ( 3 7 0 0 5 5 4 7 9 7 7 8 5 7 0 7 6 1 ) ) ) ) H 1 1 9 0 7 2 1 1 1 ' 2 , 7 7 1 , 5 , 9 , 5 5 1 - 6 , 3 , 2 1 , 0 9 2 7 2 0 1 1 3 8 5 3 4 5 3 1 7 3 8 5 4 0 1 8 5 4 4 0 9 6 2 7 3 4 9 9 0 8 2 Y o 1 6 Y 8 6 7 4 2 1 3 - 2 6 - 9 7 9 0 4 8 7 0 8 5 1 % % % % % % % % % % % P&L – Q2 FY22 & H1 FY22 Standalone Total Income – Q2 FY22 & H1 FY22 Note: 1.Total Income also includes other income. 2.Others include Accessories, Fragrances and ‘Indian Dress Wear’ business 3.Others include Favre LeubaAG, Titan Holdings International FZCO and Titan Commodity Trading Limited. 16 T ( J W E O S J S C T O C (1 ) o t a l I n c o m e i n I N R C r o r e s ) e w e lle r y a t c h e s y e w e a r t h e r s / C o r p o r a t e t a n d a l o n e ( w / o e w e lle r y - B u llio n t a n d a l o n e a r a t la n e E A L t h e r s / C o n s o l. A o n s o l i d a t e d (2 ) b u l l i s a le (3 ) d j. o n s a l e ) Q 2 '2 0 3 , 5 2 7 1 1 5 6 4 , 4 6 - 4 , 4 6 1 3 1 0 ( 1 4 , 6 9 8 9 4 5 6 6 6 4 3 3 ) Q 2 '2 1 3 , 4 4 4 0 9 5 3 , 9 9 3 9 4 , 3 8 1 5 9 ( 2 4 , 6 0 6 0 4 8 8 1 9 0 0 8 1 ) Q 2 '2 2 6 , 1 0 6 8 1 6 7 7 , 0 2 1 9 7 , 2 2 2 9 5 ( 1 7 , 5 4 6 7 0 6 8 2 0 3 3 7 8 ) Y o Y - 7 7 7 3 7 6 9 4 6 7 2 0 1 6 5 5 1 4 % % % % % % % % % H 1 '2 7 , 5 1 , 4 3 1 9 , 4 9 , 4 2 1 ( 9 , 9 0 7 3 0 5 6 6 6 9 2 0 5 3 3 0 1 - 1 8 9 7 2 ) H 1 '2 1 4 , 6 2 4 7 1 2 7 5 , 2 9 9 9 6 , 2 9 1 9 1 6 ( 3 6 , 6 2 8 5 4 1 8 2 0 4 7 0 1 ) H 1 1 1 '2 8 , 5 9 2 1 9 , 9 6 0 , 5 4 1 ( 1 , 0 2 7 7 2 4 1 1 3 5 2 4 6 3 9 7 0 8 6 4 1 1 0 7 ) Y o Y 1 1 - 8 0 8 9 8 6 3 2 6 5 6 2 6 7 7 3 7 7 % % % % % % % % % M i x - H 1 '2 8 6 1 0 2 1 1 0 0 2 % % % % % 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 470 282 913 224% 1 ,023 (7) 1 ,039 N.M Caratlane (4) 1 14 (10) (13) 10 TEAL 16 18 (1) 31 25 (2) Others/ Consol. Adj. (2) (13) (34) (7) (21) (47) (40) Consolidated 469 266 919 246% 1 ,023 (43) 1 ,007 N.M EBIT Margin (3) Q2 '20 Q2 '21 Q2 '22 H1 '20 H1 '21 H1 '22 Jewellery 10.9% 8.3% 13.0% 10.9% 5.0% 11.7% Watches 15.8% N.M 13.5% 16.8% N.M 3.6% Eyewear 1.3% 9.2% 23.0% N.M N.M 10.8% Standalone 10.5% 7.1% 13.0% 10.8% N.M 10.5% Consolidated 10.0% 6.3% 12.5% 10.3% N.M 9.6% Note: 1.Others include Accessories, Fragrances and ‘Indian Dress Wear’ business. 2.Others include Favre LeubaAG, Titan Holdings International FZCO and Titan Commodity Trading Limited. 3.EBIT Margin is calculated on Total Income excluding Bullion sale. N.M refers to Non-meaningful. 17 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 7 81 1,254 1 ,436 Jewellery 8,646 10,913 7,130 8,460 1,516 2 ,453 Eyewear 414 431 221 2 17 193 214 Others 170 162 9 0 73 80 89 Corporate 4,698 3,852 188 1 44 4,510 3 ,708 Total 15,860 17,575 8,307 9,675 7,553 7 ,900 Note:Others include Accessories, Fragrances and ‘Indian Dress Wear’ business; Liabilities of Corporate as on 30-Sep-21 exclude borrowings of INR 25 cr. 1. Capital Employed of Jewellery division is higher primarily due to increase in Inventory ahead of the festive season, which is partially offset by increase in the GOL and GHS liability. 2. Capital employed of Corporate is lower due to decrease in cash & cash equivalents (including short-term investments) to INR 2,200 cr.+, as a result of increase in working capital of Jewellery segment. 18 Note:Other Current Liabilities include GHS deposits 19 i n I N R C r o r e s F ix e d A s s e t s R ig h t o f u s e a s s e t In t a n g ib le A s s e t s In v e s t m e n t s O t h e r n o n - c u r r e n t a s s e t s C u r r e n t A s s e t s In v e n t o r ie s T r a d e R e c e iv a b le s C a s h a n d C a s h E q u iv a le n O t h e r B a n k B a la n c e s In v e s t m e n t s O t h e r C u r r e n t A s s e t s T o t a l A s s e t s S h a r e h o l d e r s ' F u n d L e a s e lia b ilit y O t h e r n o n - c u r r e n t lia b ilit ie S h o r t - t e r m b o r r o w in g s G o ld o n L o a n T r a d e P a y a b le s L e a s e lia b ilit y O t h e r C u r r e n t L ia b ilit ie s T o t a l E q u i t y & L i a b i l i t i e t s s s 3 1 - M a 1 1 r 1 7 2 5 7 4 2 5 - 2 , 0 8 7 6 , 9 2 1 3 , 7 9 , 8 , 5 9 1 - , 0 6 1 , 2 , 8 1 6 5 6 5 1 8 9 4 6 5 6 6 5 7 4 9 9 7 2 6 7 4 3 9 6 4 1 7 5 3 1 0 3 1 3 4 5 8 7 0 3 0 - S e 1 9 1 1 1 7 7 4 2 1 7 p - , 0 8 7 6 , 9 5 1 3 , 7 , 5 , 5 , 8 9 1 , 7 9 1 , 7 , 5 2 2 0 5 6 9 1 0 2 4 8 7 7 7 6 6 2 2 3 6 2 7 1 9 0 3 2 3 6 7 5 1 0 0 5 5 0 9 5 7 3 2 5 5 C h a n 1 1 1 g e ( 3 ( 5 ( 1 7 , 9 3 2 1 ( 2 ( 2 ( 9 7 6 0 , 7 1 3 2 ( 1 2 2 6 3 2 3 ( 1 4 9 , 7 1 8 4 0 3 7 2 6 2 4 3 9 5 2 1 6 5 3 8 6 8 5 ) ) ) ) ) ) ) ) Balance Sheet – Standalone 8,000 150% 7,000 100% 6,000 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 4,407 5,672 4,672 4,940 4,435 6,206 4,429 1,261 3,927 6,947 7,110 2,825 6,977 Growth (RHS) 45% 33% 9% 11% 7% 26% 34% 19% 14% 1% 9% -5% -74% -11% 12% 61% 124% 78% Note: 1. Revenue excludes bullion sales. 2. PBT is before exceptional items. 21 serorC sR Company: Revenue 1,000 14.0% 800 12.0% 10.0% 600 8.0% 400 6.0% 200 4.0% - 2.0% (200) 0.0% (400) -2.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 PBT 381 425 423 433 487 446 600 465 523 429 637 516 (335) 238 765 702 82 868 PBT margin 9.5% 12.2% 10.0% 11.1% 11.3% 10.1% 10.6% 10.0% 10.6% 9.7% 10.3% 11.6% 6.1% 11.0% 9.9% 2.9% 12.4% serorC sR Quarterly Performance Trends Company: PBT & Margin Quarterly Performance Trends Jewellery: Total Income 7,000 150.0% 6,000 100.0% 5,000 s e r 4,000 50.0% o r C s 3,000 0.0% R 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 3,576 3,292 3,572 3,582 4,890 3,986 4,047 3,528 5,409 3,754 1,182 3,446 6,249 6,397 2,467 6,106 Growth (RHS) 57.2% 40.3% 9.8% 13.0% 5.7% 28.5% 36.8% 21.1% 13.3% -1.5% 10.6% -5.8% -70.8% -2.3% 15.5% 70.4% 108.8% 77.2% Jewellery: EBIT & Margin 1,000 16.0% 14.0% 800 12.0% s e 600 10.0% r o 400 8.0% r C s R 200 6.0% 4.0% - 2.0% (200) 0.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 EBIT 339 368 385 453 393 392 651 512 442 384 701 534 (54) 285 752 703 207 793 EBIT Margin (RHS) 10.0% 13.2% 10.8% 13.8% 11.0% 10.9% 13.3% 12.8% 10.9% 10.9% 13.0% 14.2% 8.3% 12.0% 11.0% 8.4% 13.0% Note: 1. Total Income excludes bullion sale. 22 Quarterly Performance Trends Watches & Wearables : Total Income 800 350.0% 700 300.0% 250.0% 600 200.0% s e 500 150.0% r o 400 100.0% r C s 300 50.0% R 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 1QFY22 2QFY22 Total Income 517 576 539 494 594 676 641 531 715 719 625 557 75 400 550 555 292 687 Growth (RHS) 3.4% 10.0% 6.1% -1.7% 14.9% 17.3% 18.8% 7.5% 20.4% 6.4% -2.4% 4.9% -89.6% -44.3% -12.0% -0.3% 291.3% 71.6% Watches & Wearables: EBIT & Margin 150 20.0% 100 10.0% 50 s e r - o 0.0% r C (50) s R (100) -10.0% (150) (200) -20.0% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 EBIT 59 91 83 39 111 122 54 29 128 113 52 72 (164) (4) 57 46 (56) 92 EBIT Margin (RHS) 11.4% 15.9% 15.3% 8.0% 18.8% 18.0% 8.5% 5.5% 17.9% 15.8% 8.3% 13.0% 10.3% 8.3% 13.5% 23 Quarterly Performance Trends Watches & Wearables : Volume growth 80% 60% 40% 20% ) % 0% ( h t -20% w o r -40% G -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% -1% -10% -5% -93% -48% -26% -4% 466% 67% Jewellery: Gold price change and Grammagegrowth 100% ) % 50% ( h t w o 0% r G -50% -100% 1QFY18 2QFY18 3QFY18 4QFY18 1QFY19 2QFY19 3QFY19 4QFY19 1QFY20 2QFY20 3QFY20 4QFY20 1QFY21 2QFY21 3QFY21 4QFY21 1QFY22 2QFY22 Grammage growth 49% 49% 6% 6% -3% 24% 20% 15% 6% -14% -5% -20% -81% -31% -14% 45% 124% 101% Gold price change -1% -6% 0% 5% 6% 4% 8% 7% 4% 22% 21% 26% 43% 38% 32% 15% 2% -7% 24 Note : Grammage Growth is for Plain Gold segment (excluding bullion) Performance Trends – Standalone 30,000 23,860 25,000 20,010 19,070 19,245 20,000 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 Notes: 1. TTM : Trailing Twelve Months 25 2.Company & Jewellery revenue excludes bullion sale of INR 1,357 cr. in FY’21 and INR 981 cr. in TTM )serorC sR( Company: Revenue 3,000 2,616 2,441 2,500 2,053 2,126 2,084 1,974 2,000 1,580 1,500 1,000 500 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM )serorC sR( Watches: Total Income 25,000 21,220 20,000 17,274 16,738 16,030 15,000 13,036 10,485 10,000 8,723 5,000 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM )serorC sR( Jewellery: Total Income 3,000 2,417 2,500 2,105 1,997 2,000 1,662 1,500 1,370 1,130 888 1,000 500 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM Notes: 1. EBIT and PBT are before exceptional items. 26 2.PAT is after exceptional item of INR 137 cr., INR 137 cr., INR 70 cr., INR 92 crand INR 96 cr. for TTM, FY’21, FY’19, FY’18 and FY’17 respectively. )serorC sR( Company: PBT 1,800 1,650 1,600 1,517 1,374 1,400 1,163 1,200 1,000 877 762 800 698 600 400 200 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM )serorC sR( Company: PAT 400 365 350 316 300 272 250 204 200 171 140 150 100 50 0 -50 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM -100 -65 )serorC sR( Watches: EBIT 3,000 2,455 2,500 2,061 1,905 2,000 1,685 1,504 1,500 1,029 1,000 764 500 0 FY'16 FY'17 FY'18 FY'19 FY'20 FY'21 TTM )serorC sR( Performance Trends – Standalone Jewellery: EBIT 9,000 7,900 8,000 7,451 7,553 7,000 6,182 6,000 5,194 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 Note:1. Capital Employed is after netting off Gold on Lease. PBT is before exceptional items in ROCE calculations 2.Capital Employed include Cash & Cash Equivalents. 27 3.In ROE calculations, PAT excludes exceptional items of INR 137 cr., INR 137 cr., INR 70 cr., INR 92 crand INR 96 cr. for TTM, FY’21, FY’19, FY’18 and FY’17 respectively. )serorC sR( Performance Trends – Standalone Capital Employed ROCE ROE 40% 30% 35.1% 35.2% 33.4% 35% 24.5% 24.2% 29.2% 30.9% 25% 23.3% 22.9% 30% 21.1% 25.8% 19.4% 20% 25% 18.3% 20% 15% 12.2% 15% 10% 10% 5% 5% 0% 0% 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 TTM Dividend 500 45% 450 40% 400 35% 350 30% 300 ) 25% s e r o 250 r C s R 20% ( 200 15% 150 10% 100 5% 50 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 Dividend Distribution Tax 28 Market Capitalization 2,50,000 10 year CAGR: 26% 2,00,000 1,91,926 ) s e 1,50,000 r 1,38,322 o r C s R ( 1,01,372 1,00,000 83,656 82,893 50,000 41,082 34,801 30,078 22,772 23,300 20,295 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 closing prices at the end of the period 29 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 Exchange (NSE) that benchmarked them for their financial performance (Economic Value Creation), Board effectiveness (Board Governance Assessment Survey) and Investor Perception. 30 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 resulted in extremely • This new collection won the award for its aesthetics, differentiated and never seen before 18K Fine functional, smart &innovation design Jewellery. 31 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 its responsible citizenship initiative. Area Key Initiatives • Kanya programs have restarted at all locations with full safety protocols in place with 15,000+ students back to learning. Girl Child / Education • The science on wheels programs have also started for High school students, along with teacher training programs through Agastya in Krishnagiri. • All our programs at the LeAP centre in person, at the spokes, Engineering colleges and ITI’s have begun full strength. Skill development for Enthusiastic response is seen from the youth with good placements for the students. Totally 4,622 youth have upskilled. underprivileged • Another MOU has been signed recently to bring in employability skills training and teacher capacity building. • Craft programs in Varanasi and Shimoga have been augmented with design support. A unique craft community Support to Indian Arts engagement program Tarasha, has been launched, that connects crafts people directly to the market. The Antaran project Crafts & heritage with Tata Trusts for the north-east and east clusters continues with focus on micro entrepreneurship. Overall these projects and programs are reaching out to more than 4,500 artisans. • Design Impact Movement that aims to bring in Design thinking for social change amongst the student / youth community Design Impact program has shown encouraging response with around 7,000 registrations online. • Over the past six months, we have seen tremendous enthusiasm in employees engaging in volunteering be it in person or Employee volunteering even remotely both at Corporate or at factory locations. A total of 1,322 employees have actively contributed to the efforts. • As part of Titan Happy Eyes program, a Vision centre at Ambur, Tamil Nadu (TN) has been started. This is the third centre Others opened in TN in the recent past. 32 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 is expected to be repaid by Mar’22 and balance in the next fiscal. • Installation of Weather monitoring system and integration with our existing BMS system in Watches ISCM • Restoration of water body in Pantnagar Environment • As a Long Term Sustainability initiative, solar panels installation was done in the Eyewear factory in Chikkaballapur in order to reduce the CO emission & dependency on non-renewable energy resources. (361kw rooftop solar power plant) 2 • Titan participated in the national level “Greentech energy conservation award - 2021” and was adjudged as “Winner” under consumer products category for recent initiatives on energy conservation and sustained efforts. (Watches Division). • Participated in the national level waste management competition conducted by CII and won the “Innovative technology Few Recognitions product award under reuse category” for our STP sludge handling system. (Watches Division). • Eyewear Division won the Gold Medal in the India Green Manufacturing Challenge (IGMC) 2020-21 organized by International Research Institute for Manufacturing. • Eyewear integrated manufacturing facility was certified for workplace management by “ QCFI – JUSE “. 33 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 Thank You For any queries, please email to investor-relations@titan.co.in