Titan Industries Limited

“Delivering value by creating Brands”

January 2012

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Disclaimer
Certain statements are included in this release which contain 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 “forwardlooking statements.” Actual results may differ materially from those suggested by the 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 of the 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 from those estimated by the forward-looking statements contained in this document include, but are not limited to: general economic and political conditions in India and the other countries which have an impact on our business activities; inflation, unanticipated turbulence 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, including 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 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.
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How It All Began… 2011: Mia 2009: Helios 2007: Eyewear 2006: GoldPlus 2005: Precision Engineering (PED) 2008: Zoya 2010: Fastrack Accessories 2003: Fastrack 1998: Sonata Launch 1996: Tanishq 1994: Timex JV 1993: Europe Foray 1987: Launch of Titan watches 1984: Conceived 3 .

Successful Brands Luxury Premium Mid Market Mass Market 4 .

India’s Largest Specialty retailer Luxury 2 21 Premium 326 Mid Market 129 Service Centres 191 713 85 Mass Market 32 786 exclusive stores 155 Towns Over a million sft of retail space 5 .

52 Bahrain .15 Mauritius.62 Nepal .97 Kenya .67 Oman .92 Singapore .10 Saudi Arabia .21 Qatar .120 Ethiopia – 11 Uganda .17 Fiji.41 Pakistan.600 outlets 6 .15 Yemen .4 1.15 Djibouti .30 Brunei.70 Thailand.95 Malaysia.642 Vietnam.1 Sri Lanka.23 South Africa Maldives .Also has international operations Kuwait .57 Ghana .10 Bangladesh .44 UAE.5 Nigeria.45 Iran.

Where We Stand Today • • • • • • • • World’s 5th largest Watch Manufacturer 65% market share in organized watch market Sonata: India’s largest selling watch brand Tanishq: India’s leading Jewellery Player and a game changer Titan Eye+: India’s 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 7 .

Watches Division 8 .

etc. Retail and Graphic design Numerous international award-winning designs to its credit Goa • Hosur Manufacturing & Assembly facilities 9 . • • Large network of exclusive service centers Sophisticated Design & Development Center – – Core strength in Industrial. Lifestyle.Watches • Four major brands • Sold through – – – – Exclusive “World of Titan” outlets “Fastrack” outlets Multi-brand outlets “Helios” Multi-brand dealers and stores Roorkee Pantnagar • Dehradun – Large-format stores like Shoppers’ Stop.

000 dealers • 2.600 outlets • 26 countries 10 .500 towns • 326 showrooms (15 added YTD) • 132 towns – 333k Sft • 85 stores / kiosks (38 added YTD) • 47 towns – 40k sft • 21 stores (15 added YTD) • 10 towns – 36k sft • 745 outlets • 345 towns • 1.Watches – Distribution Retail All India World of Titan Fastrack Helios Service Centres International • 11.

Jewellery Division 11 .

gold exchange schemes and made to order facility  Loyalty Programmes .Mia. for the working woman  Largest jewellery retailer in India  Manufacturing facilities in Hosur and Dehradun  Innovative Services – Golden Harvest / Future scheme.Jewellery  Three major brands – Tanishq.Anuttara & Ananta  Customer First and Lean initiatives in manufacturing and retailing 12 . GoldPlus and Zoya  Sub-brand . gift vouchers.

Jewellery – Distribution Tanishq • 131 stores including 2 Zoya stores (9 added YTD) • 394k sft (102k sft added YTD) • 79 towns GoldPlus • 32 stores (3 added YTD) • 67k sft (16k sft added YTD) • 32 towns 13 .

Eyewear & Precision Engg. Division 14 .

lens cleaning solutions and other accessories • Three in-house brands – Titan. sunglasses.Eyewear • India’s 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. Eye+ and Dash • Several international and luxury brands • Key differentiators – Style consultants. scratch-resistant lenses. lens accuracy certificate 15 . Zero-error prescription. contact lenses. free eye testing. ready readers.

US Hamilton Sunstrand. US Microtechnica. US Ford. Italy Pratt & Witney. UK Bosch. India Timken.Precision Engineering • Leverages engineering capabilities • B2B business – balances risk of B2C businesses 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  Catering to      Clients include        Aerospace industry Automotive Industry Oil Exploration & Production Machine building and Automation Business Eaton. India 16 .

Q3 Performance 17 .

Background • High inflation coupled with rising interest rates leading to slowdown in economy’s 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 the working woman – initial response has been excellent 18 .Q3 .

7 times 77% Like to like growth 8% 26% 13% 18% 21% LFS – Watches Titan Eye+ 24% 77% -1% 26% 19 .Q3 .Retail growth Sales value growth World Of Titan Tanishq Goldplus Helios Fastrack 10% 33% 24% 4.

779 6.644 • Revenue growth : 39% • PBT growth : 32% • PAT growth : 32% .000 Rs Crores 4.000 3.500 1.000 5.000 1.000 6.000 2.471 1.000 1.000 500 Sales Q3 FY10-11 PBT Q3 FY11-12 PAT 200 225 138 164 • Revenue growth at 26% .500 Rs Crores 2.000 Sales 9M FY10-11 PBT 9M FY11-12 PAT 479 631 347 456 4.Company performance Q3 Performance 3.000 2.968 2. growth slower due to high gold prices and slowdown in economy • PBT growth : 12% • PAT growth : 19% YTD Performance 7.

095 Rs Crores 1. cash deposits and investments in fixed assets contributed to increase in capital employed 21 .Capital Employed 1.508 114 117 Mar-11 Dec-11 • Higher inventory levels.600 1.400 1.200 1.000 800 600 486 400 200 Watches Jewellery Others Corporate Company 378 166 98 739 505 1.

Watches – Performance 450 400 350 300 Rs Crores 250 327 Q3 Performance 383 200 150 100 50 0 Sales Q3 FY10-11 PBIT Q3 FY11-12 60 48 • Volume growth : 11% • Revenue growth : 17% • PBIT lower due to higher material costs. Rupee depreciation and higher advertising spend YTD Performance 1200 1000 Rs Crores 800 600 400 200 0 Sales 9M FY10-11 9M FY11-12 PBIT 180 163 941 1.116 • Volume growth : 16% • Revenue growth : 19% .

000 Rs Crores 4.986 • Customer growth : 8% • Jewellery grammage growth : (-5)% • Studded share : 26.000 2.9% • Revenue growth : 44% • PBIT growth : 51% 322 .000 Sales 9M FY10-11 9M FY11-12 PBIT 487 3.264 5.500 2.Jewellery – Performance Q3 Performance 2.000 3.000 500 1.000 1.666 • Customer growth : 17% • Jewellery grammage growth : 9% • Studded share : 26.000 5.000 Rs Crores 1.2% • Revenue growth : 25% • PBIT growth : 19% 150 178 PBIT Q3 FY11-12 Sales Q3 FY10-11 YTD Performance 6.587 1.500 1.

Eyewear & PED – Performance Q3 Performance 100 80 Rs Crores 60 40 20 5 Sales -20 Q3 FY10-11 Q3 FY11-12 -5 PBIT 55 94 • Revenue growth : 71% • PED became profitable • Eyewear revenue growth : 37% YTD Performance 250 200 165 Rs Crores 150 100 50 0 Sales -50 9M FY10-11 9M FY11-12 -8 PBIT 237 • Revenue growth : 44% • Eyewear Revenue growth : 33% .

Market Capitalisation 20.000 6.000 4.462 8.000 (Rs.038 3.018 3.000 500 1.000 18.301 14.530 2003-04 2004-05 2005-05 2006-07 2007-08 2008-09 2009-10 2010-11 Jan'12 25 .900 18.000 16.400 5.000 2. Crores) 12.000 10.000 16.000 8.132 4.

Brand Titan ranked 73 amongst top 100 brands in the country Jewellery • Star Retailer and Franchisee awards – Tanishq won the Retail campaign of the year and the Retail design of the year • ET Manufacturing Excellence Awards – Jewellery division awarded “Gold award” in Engineering sector • QIMPRO awards – Award for Best innovation in Jewellery manufacturing 26 . Bhaskar Bhat rated 4th best CEO • Star Retailer and Franchisee awards – Titan wins Retailer of the year Watches • Northeast Consumer brands – Titan watches wins “most preferred brand of watches” category • Economic Times .Recent Recognition Corporate • Great Place to work award-15th overall position and 1st in retail • IIM (Ahmedabad) – Mr Bhaskar Bhat. CEO given the distinguished alumni award • Business Today – Mr.

Thank You 27 .

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