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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
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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
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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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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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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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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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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%
Revenue growth : 17%
PBIT lower due to higher material
costs, Rupee depreciation and
higher advertising spend
Volume growth : 16%
Revenue growth : 19%
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%
Revenue growth : 25%
PBIT growth : 19%
Customer growth : 17%
Jewellery grammage growth : 9%
Studded share : 26.9%
Revenue growth : 44%
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
Revenue growth : 71%
PED became profitable
Eyewear revenue growth : 37%
Revenue growth : 44%
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
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