Titan Industries Limited

“Delivering value by creating Brands”

1 June 2012

Disclaimer

2

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 “forward-

looking 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.

Indian Economy: Some Facts

3

FY09 FY10 FY11 FY12E FY13E

Nominal GDP (US$ bn)

1,224 1,362 1,684 1,853 1,907

Per Capita GDP (US$)

1,061 1,163 1,416 1,535 1,692

Real GDP growth 6.7% 8.4% 8.4% 6.5% 7.0%

Pvt Consumption growth

7.1% 7.0% 8.1% 6.5% 6.5%

Inflation - WPI (Avg)

8.0% 3.6% 8.6% 8.8% 7.4%

Rs/US$ - Average 46.0 47.4 45.6 48.1 53.5

Source: CSO, RBI, Ministry of Finance and CIRA estimates

• Despite the slowdown, relatively high growth economy

• 4th largest economy in terms of purchasing power parity (expected to be 3rd largest by 2020)

• Premium segment – 14 million (expected to grow five-folds in the next decade)

• Middle class - 200 m (expected to double in the next decade)

Titan Industries

4

Luxury

Premium

Mid Market

Mass

Market

Our Brands

5

Mid Market

Mass Market

Luxury

Premium

6

2

25

332

102

129

32

205

827 exclusive stores 157 Towns Over a million sft of retail space

728

India’s largest specialty retailer

Service Centres

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 - 15 Djibouti - 1

Nigeria- 10

Ghana - 5

Yemen - 15

Brunei- 10

South Africa

International presence

7 1,700 Outlets

Silver Jubilee: The Journey

8

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

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: Over 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

9

Watches Division

1

0

Indian Watch Market

1

1

• Total estimated market – Volume: 53 million

– Value: close to US$ 1 billion

– Organized market ~ 23 million

• Only 27% of Indians own a watch

• Market size expected to double in next 5 years

• Competitor brands : 65

• Titan’s market share of organized market: 65%

Titan – Watches Division

• 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 service centers

• Sophisticated Design & Development Center

– Core strength in Industrial, Retail and Graphic design

– Numerous international award-winning designs to its credit

1

2

• Hosur

Pantnagar • Dehradun

Goa

Roorkee

Manufacturing & Assembly facilities

13

Watches – Distribution • 11,000 dealers

• 2,500 towns Retail All India

• 332 showrooms (21 added in 2011-12)

• 132 towns – 339k Sft World of Titan

• 102 stores / kiosks (55 added in 2011-12)

• 49 towns – 49k sft Fastrack

• 25 stores (19 added in 2011-12)

• 11 towns – 42k sft Helios

• 728 outlets

• 270 towns Service Centres

• 1,700 outlets

• 28 countries International

14

Jewellery Division

Indian Jewellery Market

1

5

• India has been the largest consumer of gold in the world, accounting for 25% of world consumption

• FY11-12 Demand for gold – Volume: 854 tonnes (Jewellery: 534 tonnes)

– Value : US$45 billion (Jewellery: US$28 billion)

• Independent Jewellers : 300,000

• Organized players (regional) with multiple outlets ~ 15

• Titan is one of the few national players in the market

• Titan’s share < 5% of total market

• Headroom for growth significant

Titan – Jewellery Division

Largest jewellery retailer in India

Three major brands – Tanishq, GoldPlus and Zoya

Sub-brand - Mia, for the working woman

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

16

17

• 131 stores including 2 Zoya stores (10 added in 2011-12)

• 394k sft (102k sft added in 2011-12)

• 79 towns

Tanishq

• 32 stores (3 added in 2011-12)

• 67k sft (16k sft added in 2011-12)

• 32 towns GoldPlus

Jewellery – Distribution

18

Eyewear & Precision Engineering

Eyewear

• India’s largest optical retail chain

– 205 retail outlets (55 added in 2011-12) across 69 towns

• 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

19

Precision Engineering

• Leverages engineering capabilities

• B2B business – balances risk of B2C businesses

20

Catering to Industries

Automotive

Electrical and Telecommunication

Aerospace

Oil Exploration & Production

Healthcare

Solar & Other Engineering

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

21

Q4 Performance

22

Q4 - Background

• Slowdown in economy continued due to high inflation coupled with high interest rates

• Depreciation of the Indian rupee affected input costs

• High gold prices affect gold volumes – customers were paying more but buying less quantity

• Company focus on retail network expansion continues

47 outlets (33k sft) added in the quarter across divisions

• Commenced commercial production in the new Jewellery Unit in Pantnagar

• Launched Sonata Super Fibre watches at Rs 225

• Launched “Tees” collection of watches from Fastrack

• Limited launch of fq – diamonds for teens

23

Sales value growth

Like to like growth

World Of Titan 18% 14%

Tanishq 38% 25%

Goldplus 36% 23%

Helios 3.9 times -9%

Fastrack 95% 16%

LFS – Watches 34% 19%

Titan Eye+ 32% -1%

Q4 - Retail growth

Company performance Q4 Performance

Annual Performance

• Revenue growth at 30% despite slowdown in economy • PBT growth : 73% (31% after adjusting for non recurring expenditure last year)

• Revenue growth : 37% • PBT growth : 40% (32% after adjusting for non recurring expenditure last year)

24

1,792

120 84

2,327

207 144

0

500

1,000

1,500

2,000

2,500

Sales PBT PAT

Rs

Cro

res

Q4 FY10-11 Q4 FY11-12

6,571

599 430

8,971

838 600

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

Sales PBT PAT

Rs

Cro

res

FY10-11 FY11-12

25

Capital Employed

• Higher inventory levels and investments in fixed assets contributed to increase in capital employed

378

505

114 98

1,095

504

639

171 144

1,457

0

200

400

600

800

1,000

1,200

1,400

1,600

Watches Jewellery Others Corporate Company

Rs

Cro

res

Mar-11 Mar-12

Watches Q4 Performance

Annual Performance

• Volume growth : 14% • Revenue growth : 27%

• Volume growth : 15% • Revenue growth : 22% • Margins under pressure due to input cost rise as rupee weakens against other currencies

26

339

12

430

53

0

50

100

150

200

250

300

350

400

450

500

Sales PBIT

Rs

Cro

res

Q4 FY10-11 Q4 FY11-12

1,309

192

1,592

217

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Sales PBIT

Rs

Cro

res

FY10-11 FY11-12

Jewellery Q4 Performance

Annual Performance

• Customer growth : 4% • Jewellery volume declines by 7% • Studded share : 32% • Revenue growth : 31% • PBIT growth : 28%

• Customer growth : 14% • Jewellery volume growth : 5% • Studded share : 26% • Revenue growth : 41% • PBIT growth : 45%

27

1,372

142

1,803

182

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Sales PBIT

Rs

Cro

res

Q4 FY10-11 Q4 FY11-12

5,014

483

7,045

698

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

Sales PBIT

Rs

Cro

res

FY10-11 FY11-12

“Others” Segment Q4 Performance

Annual Performance

• Revenue growth : 17% • PED growing profitably

• Revenue growth : 35% • Eyewear revenue growth : 26% • PED turned profitable

28

81

-10

94

-5

-20

0

20

40

60

80

100

Sales PBIT

Rs

Cro

res

Q4 FY10-11 Q4 FY11-12

248

-18

334

-4 -20

30

80

130

180

230

280

330

380

Sales PBIT

Rs

Cro

res

FY10-11 FY11-12

Performance Trends

3,041 3,848

4,703

6,571

8,971

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2007-08 2008-09 2009-10 2010-11 2011-12

(Rs

Cro

res)

Total Sales

2,027

2,761

3,497

5,014

7,045

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2007-08 2008-09 2009-10 2010-11 2011-12

(Rs

Cro

res)

Jewellery: Sales

918 946 1,052

1,309

1,592

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2007-08 2008-09 2009-10 2010-11 2011-12

(Rs

Cro

res)

Watches: Sales

31%

15% 36%

29

Performance Trends (contd.)

150 159

250

430

600

0

100

200

300

400

500

600

700

2007-08 2008-09 2009-10 2010-11 2011-12

(Rs

Cro

res)

PAT

202 231

321

599

838

0

100

200

300

400

500

600

700

800

900

2007-08 2008-09 2009-10 2010-11 2011-12

(Rs

Cro

res)

PBT

43%

41%

30

Performance Trends (contd.)

Cash balance up by Rs. 908 crores over the period

31

718 745 802

1,095

1,457

0

200

400

600

800

1,000

1,200

1,400

1,600

2007-08 2008-09 2009-10 2010-11 2011-12

(Rs

Cro

res)

Capital Employed

34.8% 34.2%

45.4%

58.5% 62.0%

0%

10%

20%

30%

40%

50%

60%

70%

2007-08 2008-09 2009-10 2010-11 2011-12

ROCE

39.4%

32.2%

39.2%

49.2% 48.5%

0%

10%

20%

30%

40%

50%

60%

2007-08 2008-09 2009-10 2010-11 2011-12

RONW

32

Market Capitalisation

500 1,018

3,530 4,400

5,038

3,462

8,132

16,900

20,290

0

5,000

10,000

15,000

20,000

25,000

2003-04 2004-05 2005-05 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

(Rs

Cro

res)

33

Market Capitalisation (US$)

Note: Market capitalisation is based on BSE closing prices at year end

45 104 224

791 857

1,179

680

1,810

3,789

3,967

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

(US$

mill

ion

)

Recent Recognition

34

• ET Retail award for “Excellence in Employee Practices”

• IMAGES Fashion Award for Most Admired Fashion Company of the Year

• “ET Retail Personality of the Year” award for Mr Bhaskar Bhat

Corporate

• IAMAI Digital Media Awards: Gold awards for TITAN & Fastrack

• Economic Times: Brand TITAN ranked 73 amongst top 100 brands in India

• Brand Trust Report card (2012): TITAN is 12th most trusted across categories, Fastrack is 59th.

• 4 awards for TITAN and 1 award for Fastrack at the “Creative ABBY Awards” 2012

Watches

• ET Retail award for Tanishq for “Innovative Operating Idea of the Year”

• IMAGES Fashion Award for Most Admired Jewellery Brand of the Year for Tanishq

• Award for Tanishq at the “Creative ABBY Awards” 2012

• Special brooches designed by Tanishq worn by the head of states at the 4th BRICS summit at New Delhi

Jewellery

35

Thank You