#1Titan Company Limited Business Outlook 9th June, 2020 ΤΙΤΑΝ COMPANY 1#2Disclaimer ΤΙΤΑΝ COMPANY This document, which has been prepared by Titan Company Limited (the "Company"/"we"/"our"), are solely for information purpose and do not constitute any offer, invitation, recommendation, invitation to purchase or subscribe for any of the 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 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. 2#3Retail Sales Trend H2 FY20 0000 Channels Retail sales growth over same period, FY20 Q3 1st Jan - 15th Mar 16th Mar - 31st Mar WOT 11% Helios 23% LFS 5% 23% -77% -75% 6% 5% -92% Tanishq 15% 12% -74% Caratlane 71% 36% -81% Eye Plus 11% 8% -74% ΤΙΤΑΝ COMPANY 3#4FY21 Status Corporate office working for a month now; most other offices also started working except Mumbai All safety procedures being followed thoroughly • Most plants started working as well . More than 1400 stores out of 1800 already open ● Safety protocol in stores a highpoint; customers very satisfied with the emphasis on safety. ΤΙΤΑΝ COMPANY 4#5Sales Recovery Rate, after 4 weeks of opening Format WOT Stores open (All) No Share of Format sale (All) % % sale of ADS (4 weeks open) % 380 75% 45% Fastrack 132 73% 46% Helios 52 56% 105% Tanishq 271 82% 80% Caratlane 65 73% 122% Eyeplus 469 80% 44% Taneira 5 56% 28% ADS Average Daily Sales ΤΙΤΑΝ COMPANY LO 5#6Sales Recovery Very encouraging! ΤΙΤΑΝ COMPANY 6#7Challenges for FY21 Most products discretionary in nature, people likely to re-prioritise Travelling out and shopping in stores likely to also come under some pressure on account of worries of safety Most products still in the touch-and-feel category, so pure on-line is likely to be a challenge. ΤΙΤΑΝ COMPANY 7#8Opportunities on the Demand Side . Jewellery • Store of value, improving asset class perception. . • Large scale weddings are out, leaving more funds for streedhan • Substantial reduction in holiday travel can lead to a wallet share gain for jewellery Greater push of Exchange given the huge household stock Watches Potential to re-ignite the brand's power as a gift Wearables expanding to deliver more health benefits Eyewear • Product of necessity ΤΙΤΑΝ COMPANY 8#9Opportunities on the Demand Side Trust of Titan and Tata will kick in much more ΤΙΤΑΝ COMPANY 9#10Opportunities on the Delivery Side Omni-channel • Video Demonstration • AR/VR • Try @ Home . ● Endless Aisle Big potential to use customer testimonials on safety to lower barriers of visiting stores ΤΙΤΑΝ COMPANY 10 10#11Operations . War on Waste programme to extract substantial value from Opex and Assets ΤΙΤΑΝ COMPANY 11#12Target Normalcy by Q4 ΤΙΤΑΝ COMPANY 12#13ΤΙΤΑΝ COMPANY Jewellery Division - Theme for FY21 FITTER 66 TOGET FASTER STRONGER HER" ㅈ ZOYA TANISHQ Mia CARATLANE#14Covid -19 has deepened industry stress seen in FY20 FY20: Macro headwinds Industry decline Challenges Demand pressure Pressure on Margins Emerging themes Gold price spikes Competitive intensity Higher old Gold exchange COVID-19 Industry: liquidity stress Partner anxiety Capital employed Opportunities: Re-imagine Digital Widen the Moat 1. Agile response to a new customer reality 2. Intense focus on efficiency 14#15TOGE Post COVID: Time to widen the Moat FITTER FASTER STRONGER 1. Build customer confidence - "safest store in town" 2. Leap ahead: Omni & Remote selling - NEW Engine 3. Grow the Core (lower price bands) -NEW Engine 4. Agile response to differential geographic opportunities 5. Build confidence & support to partner ecosystem 6. War on Waste - Costs & Capital 800 HER" 15#16~75% of 460 Stores re-opened, 90% by June end 兀 280+ stores out of 329 open. 300 stores by June end TANISHQ 192 cities out of 200 ZOYA 3 stores out of 4 open. Mia CARATLANE Mfg units 9 stores out of 38. Most mall stores yet to open 54 stores out of 92. Mall stores to open gradually Hosur, Pantnagar, Sikkim: 33% workforce Regional Sourcing offices, Vendors ~ 10-30%#17бытова Early indicators point to positive outlook FITTER FASTER STRONGER ✓ Encouraging sales recovery rate ✓ Customers confidence on "Tanishq Gold Std" safety protocol ✓ Golden Harvest sustained Wedding purchase enquiries, Personal milestone purchases ✓ Outstanding e-AT, Website visitors ~ 2.5 Mn / mth High interest in gold (safe haven) 35% new customers - mkt share gains visible HER#18Most Growth Engines firing well. New engines added. No Growth Engine FY19 FY20 FY21 > FY22 1 Retail expansion (stores) 36 41 ~ 25 40+ 2 Wedding H2 onwards Headroom 3 High value studded 4 Golden Harvest 5 Gold Exchange 6 Low share Markets 7 Grow the Core 8 Leap ahead: Omni, Remote leading growth Avg. growth Redefine New → New → Below par 18#19бытова Play Qtr. to Qtr. Hope to exit Q4 of FY21 on track FITTER FASTER STRONGER Last 5 weeks, Recovery rate ~ 70% Festive Q3: - Gifting; Feel-good post hardship, - Gold: auspicious + asset value Weddings H2: - Benefit of deferred demand from Q1 - Share of Wallet gain • Design: Create desire at affordable price points • By Q4: Target - Full recovery HER#20Sustain margin Intense focus on Efficiency (-) Pressure on gross margins: - - Studded ratio Gold margins (high Gold prices) (+) Offset by War on waste: - - Re-imagine fixed cost base Optimize Variable costs: mat cost, discounts, mktg. Drive Capital efficiency New stock norms Lead time reduction One time gold re-sale Maximise GOL HER 66 FITTER FASTER TOGE STRONGER#21Strengthened Risk mgmt.: Respond with agility Key Risks Impact Slower demand recovery pattern Topline Mitigation Qtrly biz plans. Nimble response Larger gold price spike Topline, Product strategy, Promotions Capital Gold import restrictions GC, Capital Drive Exchange aggressively Supply side disruption Topline Franchisee / Vendor liquidity Capital Increase in-house, dedicated KP/KC Leverage deep karigar connect Support with working capital HER" 66 TOGE 3 FITTER FASTER STRONGER#22We are best poised to Leap ahead Trusted player. Tata emotional connect even stronger now. ✓ ✓ "Safest Stores in Town" ✓ Purity, Best old Gold Exchange Policy ✓ 18 mn Encircle, Large Golden Harvest base ✓ Responsible player, with sustainable practices ✓ Strong Franchisee network ✓ Strong Balance sheet ✓ Professional, engaged talent raring to go бытова FITTER FASTER STRONGER 22 22 HER"#23WATCHES & WEARABLES | Jun 2020 ΤΙΤΑΝ COMPANY 23 23#24Year 19-20: good year despite challenges 7% growth in topline despite March lockdown; 9% growth in PBT Desirable Brands, Superior Design • • Design differentiated collections Titan ranked No1 in LFS channel Fastrack most followed Youth brand on Instagram • • . TITAN COMPANY Stronger Play in Smart Wearables Acqui-hire of Hug Technologies Ranked No 2 by volume in India Fastrack Reflex Beat with HRM; Sonata Stride ● • Leveraging Multiple Channels WOT, Helios & LFS grew through consumer acquisition, retention and premiumisation strategies Marketplaces like Amazon, Flipkart, Myntra-highest growing channel 24#25Estimated Segment Behaviour TITAN COMPANY Segments Upper Middle Class Business/Industrialists Upper Middle Class Salaried Reality Sentiment High High High Medium Self-Employed Doctors, Lawyers, Accountant (more steady income) Medium Medium Middle Class Salaried - PVT Medium Medium First Jobbers: IT/ITES Students Medium Medium Medium Medium Middle Class Salaried - GOVT Middle Class Traders/Business People Self-Employed Entrepreneurs, Start-ups Lower Middle Class - Wedding Gifting Medium Low Low Low Low Low Low Low 25 25#26Green Shoots of Desire Celebrate small pleasures/ moments birthdays, achievements, anniversaries TITAN COMPANY Celebrate festivals: Raksha Bandhan, Father's Day, Onam, Durga Puja, Karva Chauth, Diwali Revenge shopping Indian brands are flying high Premium segment recovery Great hook for our brands as they all have great emotional value 26#27Retail Activities Health & Hygiene Sanitisation of all surfaces and products Daily temperature check TITAN COMPANY Social distancing 30 to 50% of staff Contactless transactions M Customer Communication Safety standards communication An industry benchmark experience Stay Connected Regular Webinars | Trainings Cascade 27#28Safe to Shop 88350 DaTru Sainish TITAN eчeplus AYATA WORLD OF TITAN ವರ್ಲ್ಡ್ ಆಫ್ ಟೈಟನ್ SAFE -STORE- WELCOME BACK TO THE GOOD TIMES WITH A SAFE SHOPPING EXPERIENCE RAGA by TITAN Cocktails SAFE TO SHOP GUESS Early Al H fastrack SAFE SHOP WE'RE BACK IN BUSINE SAFE WE'VE GOT YOUR BACK HELIOS THE WATCH STORE MANY PERIENCE TIME TO STAY SAFEL neuthy Employees Sonized Shoes Clean Products By TITAN TITAN COMPANY 28#29Back in Business TITAN COMPANY Channel Number of Stores open Percentage of stores open Current vs Pre-Covid sale Retail 576 74% 48% Trade 3480 50% 30% Large Format Stores 32 11% 14% Marketplace Ecommerce 77% Brand Ecommerce 86% Walk-ins ramped up faster in upcountry towns vs metros Double-digit growth in average price across channels in May 29 29#30Brand Portfolio Approach TITAN India Ka FAVOURITE SONATA A TATA PRODUCT Celebrating Relationships We will win together Gifting TITAN COMPANY fastrack חם Humour and quirk for Gen Z Trust and value Reflex fitness bands; Masks Differentiated hi-value products Indian progress Fashion forward 30#31Omni Channel: Live in 165 Stores Buy Online Pickup in Store Video Shopping Ship From Store www.titan.co.in www E Reserve Online Pickup in Store Endless Aisle Ship By Store www.sonatawatches.in TITAN COMPANY www.fastrack.in 31#32Embrace digital in all areas to arrive at hybrid model: Omni, digital/ social Stimulate demand for the category in the consumer's mind in the post lockdown period: Use Trust, Emotion, India marketing etc Play our brand and channel portfolio to our advantage TITAN COMPANY Motivate, inspire and drive employees for a quick recovery with a "reset" mindset DIVISIONAL BUSINESS DIRECTIONS Relentlessly and aggressively relook at all costs: WOW Keep partner ecosystem afloat and motivated 32#33Eyewear#34• Content FY20 highlights Market Opportunity & Challenges : Lockdown & Recovery ● FY21 outlook • Thrust Areas 34#35Highlight 1920 Turnover (UCP) Rs 944 cr Growth 6%, TEP retail 11% (LTL -6%) 60 stores added, Count 584 Customer NPS 72, Franchisee 33 Signature Frame, Smart Eyewear & Clear Sight lens High decibel Ayushman campaign TITAN eчeplus, Net Promoter Score 72 of 100 JD TITAN TRAMES & SUNGLASSES Frames 695 Find your signature 35#36Market: Opportunity & Challenges • 550 mn Indians need vision correction - adoption 170 mn, opportunity continues Market size: est 11,000 cr Covid changed everything In a way a new beginning! RESET COVID-19 36#37Lockdown • Half Million empathy calls by our staff, warmed up many hearts, 6% needed a solution, one went viral, many appreciations • Remote sales process - assisted Ecom • Gathered all the best practices within the system, prepared ourselves#38Recovery 1st store opened at Haridwar on 6th May, today 412/584 30% 22% 29% 19% lili 123 92 119 78 >100% 75%-100% 50%-75% <50% SAFE -STORE- °C PRODUCTS SANITIZED Regular check After every touch • May ADS of 60% wrt Feb'20 for the open stores • ⚫ June is looking better Social distancing TITAN At all times eчeplus#39Early Trends SAFE -STORE. Hygiene, Health & Safety - Top in customers' mind TITAN eчeplus, 50% of stores reached almost Feb ADS Our entire range at your fingertips! Download Now Online order grew by 5X - assisted ecom is the new way Trade came to a grinding halt, could be a long haul S SHOPPERS STOP lifestyle Malls & LFS are just about starting, wait and watch 39#40Thrust Areas Channel Cost Control Socho Mat. Sach Hai! ✓ TEP Focus Customer 00 SAFE -STORE- Product Best quality spectacles @ 999 6 months warranty | Lifetime service free MUSIC CONNECT CALLS NAVIGATION fastrack SMART AUDIO SUNGLASSES Range starts from 2999/- CRM TITAN ClearSight At last, a long-lasting lens. Introducing ClearSight, a lens coating that gives you crystal-clear vision ✓ Scale down / exit Trade, LFS, market place ✓ Convert/Exit unprofitable stores ✓ Efficient Assortment - TOC ✓ Centralized lens fixing ✓ Consolidate lens 100% UV 400 Protection Scratch Resistant Blue light filter lab ✓ Localization - IH manufacture & India sourcing 40#41Thank You ΤΙΤΑΝ COMPAΝΥ