Welcome to TTK

The TTK Group

Today a Rs22 Billion group Manufacturing commenced in 1950
Pioneered several categories in India Pressure cookers, Gripe water, Maps, Condoms , ball pens, Toys and Heart Valves.

Started in 1928 as an indenting agency

Founded by Mr. TT Krishnamachari Pioneered organized distribution Health care, Foods, Personal care products, Writing instruments, Ethical products Cadburys, MaxFactor, Kiwi, Kraft, Sun light, Lifebuoy, Lux, Ponds, Brylcreem, Kellogg's, Ovaltine, Horlicks, Mcleans, Sheaffers, Watermans & many more

30 product categories and services 16 manufacturing units 12000 employees Exports to every continent

Indian roots, Global Reach

Diversified Group Structure

TTK Prestige Limited TTK Healthcare Limited TTK Protected Devices Limited TTK Services private Limited
Cigna TTK Limited Consumer durables - Listed Pharmaceuticals, Medical devices & Consumer products - Listed Condoms

Non-Resident services and KPO

Proposed Health Insurance JV company

Mission of the group To provide quality consumer products at affordable prices

Core values of the group Trust, Transparency and Knowledge

TTK Prestige Limited

Incorporated in 1955. Flagship company of TTK Group Indias largest kitchenware company. IPO in 1994. 3000 strong human capital Two brands in the portfolio. Prestige and Manttra 8 Manufacturing units-2 more being added Captive design and tool-room facilities Versatile distribution network A unique combination of strong manufacturing, design and marketing systems.

Shareholding

Public and Inst. 25.1%

Promoters 71.9%

Paid up capital Rs. 113 million , 10000 shareholders

Board of Directors/ Management

Promoter Directors Mr. TT Jagannathan Executive Chairman Mr. TT Raghunathan Vice Chairman Dr.(Mrs)Latha Jagannathan Executive Directors Mr. S. Ravichandran Managing Director Mr. K. Shankaran Director (Corporate Affairs) Independent Directors Mr. Ajay I Thakore Mr. R. Srinivasan Mr. Arun Thiagarajan Dr.(Mrs) Vandana Walvekar Mr. Dileep Kumar Krishnaswamy

Well balanced Board

Sub Board level Mr. Chandru Kalro Chief Operating Officer Mr. V. Sundaresan Vice President (Finance) & CFO Mr. H.T. Rajan- Chief Manufacturing Officer

Vision and Values

CORE VISION A Prestige in every Indian Kitchen CORE VALUES

Quality products at affordable prices

Trust, Transparency, Knowledge and Prestige in whatever we do

Fair dealings with every stakeholder Respect for Environment

CORE STRATEGY Providing Total Kitchen Solutions rather than just a product

THE JOURNEY SO FAR

1955 INCORPORATION 1959 FIRST MANUFATURING UNIT IN BANGALORE 1981 SECOND MFG UNIT IN HOSUR - TAMILNADU TILL 1990 A SINGLE PRODUCT COMPANY JUST ALUMINUM OUTER LID PRESSURE COOKERS DOMINANT IN SOUTHERN INDIA 1990-94- LAUNCH OF SS PRESSURE COOKERS AND NON-STICK COOKWARE 1990s - EXPORT THRUST LAUNCH OF MANTTRA BRAND 2000-2003 - PERIOD OF TURBULANCES - YET BOLD INITIATIVES LAYING THE FOUNDATION FOR BRAND EXTENSION AND EXPLOSIVE GROWTH - THE UNLEASHING OF THE BRAND AND PEOPLE POWER

the journey so far

THIS PERIOD SAW THE LAUNCH OF STOVES AND APPLIANCES AND THE MAJOR MARKETING INITIATIVE OF EXCLUSIVE RETAIL NETWORK PRESTIGE SMART KITCHENS 2006 LAUNCH OF WELL DIFFERENTIATED INNER LID PRESSURE COOKERS - NEW CAPACITIES IN UTHARKAND AND COIMBATORE 2006- 2010 TRANSFORMATION INTO A TOTAL KITCHEN SOLUTION PROVIDER LEAD BY INNOVATIONS LIKE INDUCTION TOPS, APPLE COOKERS,MICROWAVE PRESSURE COOKERS AND A HOST OF APPLIANCES 2010 11 ADOPTION OF A SIMPLE BUT POWERFUL VISION A PRESTIGE IN EVERY INDIAN KITCHEN 2011 - LARGEST CAPACITY EXPANSION INTITIATIVE TO BACK THE ABOVE VISION 2012 COMPANY TURNOVER CROSSES RS.11 BILLION . 2012-ALLIANCES WITH GLOBAL HIGH END BRANDS ENTERED FOR HIGHEND COOKWARE/STOREWARE/WATER FILTERS/GAS TOPS 2013 LAUNCH OF MICROWAVE COOKERS MET WITH GREAT SUCCESS IN EXPORT MARKET. 2013 COMPANY TURNOVER CROSSES RS.13.7 BILLION

TRANSFORMATION ACHIEVED BY THE SAME MANAGEMENT TEAM

PRODUCT CATEGORIES BEFORE 2001

JJLess than 100 SKUs

PRODUCT CATEGORIES 2013

SEVERAL HUNDRED SKUs

BASIC PHILOSPHY THAT LEAD TO TURNAROUND AND GROWTH

FOCUS ON OCCUPYING THE MINDSHARE OF THE CONSUMER FOCUS ON DOMINATING THE KITCHEN DOMAIN WITH DIFFERENTIATED PRODUCTS FOCUS ON GROWTH , GAINING MARKET SHARE AND EXPANDING CUSTOMER BASE KEY METRICS - GROWTH - CAPITAL EFFICIENCY - RETURN ON CAPITAL EMPLOYED - MARGIN IS A STRATEGY TO GROWTH RATHER THAN AN END IN ITSELF MARGIN IMPROVEMENT THROUGH IMPROVING EFFICIENCIES - PASS TO CONSUMER COST ESCALATION AND NOT COST OF INEFFICIENCIES

 WE DERISKED THE COMPANY FROM BEING DEPENDANT ON SINGLE PRODUCT AND SINGLE MARKET WE DERISKED THE MANUFACTURING AND SOURCING FROM BEING DEPENDENT ON A SINGLE LOCATION/ FEW SOURCES TODAY WE ARE OPERATING IN A MARKET SIZE OF RS. 90 BILLION AS COMPARED TO JUST RS.5 BILLION 10 YEARS BACK. TOPLINE GREW AT CAGR OF AROUND 28 % SINCE 2003 FROM RS.1.13 BILLION TO NEARLY RS. 13.8 BILLION IN FINANCIAL YEAR 2012-13. PRESSURE COOKERS VOLUMES GREW FROM 1 MILLION TO 5.4 MILLION COOKWARE VOLUMES GREW FROM 0.4 MILLION TO OVER 5.5 MILLION APPLIANCES BECAME A SIGNIFICANT PART OF THE PORTFOLIO CURRENTLY ABOUT 43% OF TOTAL SALES ESTABLISHED CLEAR LEADERSHIP IN KEY PRODUCT CATEGORIES FROM A NEGATIVE EBIDTA OF 61.2 MILLION TO A POSITIVE OPERATING EBIDTA OF OVER Rs. 2080 MILLION IN 2011-12 PROFIT BEFORE TAX GREW FROM A LOSS SITUATION OF 174.20 MILLION TO PROFIT LEVEL OF OVER 1850 MILLION PAT GREW FROM A LOSS OF114.70 MILLION TO A PROFIT OF ABOUT 1330 MILLION. NET CURRENT ASSET TURNOVER RATIO IMPROVED FROM 1.7 TIMES TO AROUND 7 TIMES OPERATING ROCE FROM NEGATIVE TO AROUND 60% WON SEVERAL AWARDS ORGANISATION AS WELL AS INDIVIDUAL TEAM MEMBERS

FRUITS OF THE JOURNEY

Strengths of the company

8 manufacturing units Excellent Product development capability Strengths in Deep draw of Aluminum and SS Within and outside India Dedicated vendors within India to implement our designs

Manufacturing

Sourcing

Brand
Marketing Quality
Indias first ISO 9001: 2000 certified Kitchenware company Indias only PED:CE certified company Pass every relevant global standard on manufactured products.

Comprehensive Sales and Marketing network Unique model of Exclusive Retail outlets Largest service network in the category

The Prestige Brand

Core values of the brand are TRUST, SAFETY, DURABILITY Leaders in Pressure cookers, cookware, Induction Tops Prestige is a Superbrand

Pressure cookers Product Metal spoon innovations friendly cookware Duplex gas stoves

Marketing innovations

Exchange schemes Display schemes Retail

Indias Largest Kitchen appliance brand

Turnover & Profits Product portfolio Reach No. of customers

The Prestige product portfolio widest in the industry

Preparation before cooking Food preparation

Kitchen supplements Heaters Toasting Beverage makers

Kitchen Hardware Chimneys

Chopping Blending Grinding Processing

Pressure cooking Cooking Sauting, fryi ng etc Baking

Storeware

Mixer grinders Food Processors Choppers Blenders Juicers Wet Grinders Knives

Pressure cookers Non stick cookware LPG gas Stoves Induction Cook tops LPG Hobs OTGs Microwave ovens Rice Cookers Barbecues

Kettles Pop up Toasters Sandwich toasters Coffee Makers Tea Makers

Complete kitchen Solutions.

The market for us

Chimneys 660.00 Non Stick 6% cookware 860.00 8% Small Appliances 910.00 9% Wet Grinders Rice cookers 540.00 460.00 5% 5% Mixer Grinders 2,200.00 21%

Gas Stoves 1,980.00 19%

Induction cooktops 1,300.00 13%

Pressure cookers 1,450.00 14%

Mixer Grinders, Gas Stoves a big opportunity. We still have some distance to go on Inner lid pressure cookers. Cookware can be expanded by us

Distribution Structure
Traditional Trade
Direct Dealers

Modern Trade
Hypermarkets

Own Retail
Prestige Smart Kitchen

Institutions
CSD

Authorized Redistributors

Super markets

BPCL

Sub Dealers

Shop in Shop

HPCL

Corporate and Govt.

Distribution
Infrastructure and Reach
National presence Large sales force
Unique structure with multiple channels
Own retail Modern format Traditional retail CSD BPCL HPCL

Channel contributions
Institutions 4%

Own retail 17%

26 branch locations

300 direct & 1000 indirect

Over 250,000 sq.ft of warehousing

Product /territory/Chan nel focus

Traditional trade 58% Modern format 21%

Several thousand outlets

Committed and well qualified sales management

Retail initiative
Key highlights
Unique pioneering effort
First kitchen appliance brand

Results of the Retail initiative

National presence
450 outlets 200 towns

Quick reach of new products Brand is today seen in a new light. Show cases the brand in the intended and complete format for 365 days Unique engagement with the customer. Unmatched on ground presence and a unique listening post. Greater leverage with trade both traditional and modern format. Lower cost of sales in the long run.

High efficiency/sq ft
Over Rs.8000/sq ft.

High conversion ratio

60% of walk-ins actually buy

Direct contact with customer

Ability to launch new products

Ability to grow beyond market growths

INNOVATION THE KEY TO GROWTH AND TO MEET CHALLENGES

SOME KEY INNOVATIONS
HANDI SHAPPED PRESSURE COOKERS APPLE COOKERS WHICH WON DESIGNER AWARDS CUSTOMISATION OF INDUCTION COOKTOPS FOR INDIAN MARKETS. INDUCTION BASE ON A HARD ANODIZED BODY

MICROCHEF A BREAKTHROUGH INNOVATION

MICROWAVE COMPATIBLE PRESSURE COOKER INNOVATED AND DEVELOPED IN-HOUSE GLOBAL PATENT IN PROCESS RENDERS MICROWAVE COOKING MORE HEALTHY AND EFFICIENT RENDERS MICROWAVE USE MORE VERSATILE A GROWTH DRIVER FOR EXPORT MARKET WELL RECEIVED IN EUROPE DURING INITIAL LAUNCH IN 2010-11 NOW SWEEPING THE JAPANESE MARKET

FACTORS LEADING TO GROWTH AND SUSTAINABILITY

General economic factors Economy itself is growing between 8-9% for the last 6 years till 2011 Consistent increase in number of middle income groups Rural employment guarantee scheme Growing disposable income in the hands of consumer Consumer behavior factors New consumers added from lower income group in urban centers New consumers added from semi urban/satellite rural areas Shifting preference to quality products and hence branded products leading to a faster replacement cycle Demand arising out of addition to new families , marriage and transfers , modernization and improvements to kitchen The breed of domestic cook and domestic help vanishing Newer kitchen and hence demand for new products Change in home style from closed kitchens to open kitchens Informed buying

FACTORS LEADING TO GROWTH AND SUSTAINABILITY. TTK Prestiges role Driving growth through Innovation Close contact with consumer Offering innovated and differentiated products ahead of competition Offering of wide range and total kitchen solutions Expanding distribution width, depth and innovative channels Innovative marketing and sales promotion strategies Ensuring that Dealers enjoy real profits and higher ROI Dealer Loyalty Economies of scale

Brand positioning
To position ourselves as the thought and concept leaders in the Kitchen appliance category. To create products and concepts that come from latent consumer insights. All development is towards making the kitchen a smarter place that will enhance convenience, reduce time spent and reflect the current modern lifestyles.

FINANCIALS

SALES TREND
16000.00

14000.00

13858.93

Rs. Millions
12000.00

11227.12

10000.00

8000.00

7755.78

6000.00 5168.03 4162.08 4000.00 3398.35

2932.50
2000.00

0.00 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

13900.00 470.70 12900.00

COOKERS

COOKWARE

APPLIANCES

OTHERS

11900.00 298.50 5833.30 9900.00

10900.00

8900.00

4549.60

7900.00

218.90

6900.00 2828.00 2246.90

2448.50

5900.00 172.80 1716.10

4900.00 163.50 151.50 2900.00 131.70 731.90 1900.00 434.90 1633.90 900.00 2006-07 2007-08 2008-09 539.70 1861.10 2203.40 846.20 635.60 1159.60

3900.00

1539.90 5106.40 4132.10 3169.00

872.50

2406.60

2009-10

2010-11

2011-12

2012-13

EBIDTA/OPERATING CAP. EMPLOYED %

80.00
70.00 60.00 67.51

65.33

63.45 58.37

50.00
40.00 30.00 21.80 11.66 33.87

43.14

22.55

20.00
10.00 0.00

13.17

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

18.00

TURNOVER/EBIDTA RATIO
16.24 14.74 15.67 15.04

16.00

14.00

12.00 Series1 10.00 8.41 9.65

8.79

9.16

8.00

8.01 6.44 2004 2005

6.00

2006

2007

2008

2009

2010

2011

2012

2013

(Rs. Mlns.) Q4 FULL YEAR 2012-13 2011-12 2012-13 2011-12 2894.6 2366.8 13858.9 11227.1 8.9 439.1 386.9 280.3 15.17 22.30 32.46 14.7 331.5 290.8 197.4 14.01 41.7 24.65 473 2084.5 1852 1330.9 15.04 23.44 18.49 448 1759.2 1632.6 1133.8 15.67 44.76 42.13

SALES OTHER INCOME EBIDTA PROFIT BEFORE TAX PROFIT AFTER TAX EBIDTA/SALES SALES GROWTH % EBIDTA GROWTH%

TTK Prestige Limited Statement of Audited Financial Results for the year ended 31st March 2013 S.No. PARTICULARS 31.03.2013 Audited 28,946 619 28,327 28,327 9,725 9,942 (3,208) 1,928 257 5,638 24,282 4,045 89 4,134 265 3,869 3,869 923 143 2,803 2,803 1,134 Quarter Ended 31.12.2012 Unaudited 44,476 763 43,713 43,713 9,527 11,929 3,498 2,312 223 10,235 37,724 5,989 187 6,176 404 5,772 5,772 1,296 66 4,410 4,410 1,134 (Rs in lakhs) Year Ended 31.03.2013 31.03.2012 Audited Audited 138,589 112,271 2,741 1,928 135,848 110,343 135,848 110,343 36,695 45,791 (4,829) 8,358 899 29,461 116,375 19,473 473 19,946 1,426 18,520 18,520 4,881 330 13,309 13,309 1,134 40,518 24.72 24.72 38.88 38.88 17.44 17.44 117.35 117.35 24,657 42,684 (5,551) 7,299 625 24,110 93,824 16,519 448 16,967 641 16,326 16,326 4,633 355 11,338 11,338 1,132 27,179 99.97 99.97

1.

2.

3. 4. 5. 6. 7. 8. 9 10

11 12. 13. 14. 15. 16.

Sales/Income from Operations Less: Excise Duty a) Net Sales/Income from Operations (Net of Excise Duty) b) Other Operating Income Total Income from Operations (Net) Expenses a) Cost of Materials Consumed b) Purchase of Stock-in-Trade c) Changes in Inventories of Finished Goods,Work in Progess and Stockin-Trade d) Employee Benefits Expense e) Depreciation and Amortisation Expense f) Other Expenses Total Expenses Profit from ordinary activities before other Income, Finance Costs & Exceptional Items (1-2) Other Income Profit from ordinary activities before Finance Costs & Exceptional items (3+4) Finance Costs Profit from ordinary activities after Finance Costs but before Exceptional Items (5-6) Exceptional Items Profit (+)/Loss (-) from ordinary activities before Tax (7-8) Tax Expense - Current Tax - Deferred Tax Net Profit (+)/Loss (-) from ordinary activities after Tax (9-10) Extra-ordinary Items (Net of Tax Expense) Net Profit (+)/Loss (-) for the Period (11+12) Paid up Equity Share Capital (Face Value Rs.10/-) Reserves excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year Earnings Per Share - Rs. Ps. a) Basic and Diluted EPS before Extraordinary items for the period, for the year todate, and for the previous year (not to be annualised) b) Basic and Diluted EPS after Extraordinary items for the period, for the year todate, and for the previous year (not to be annualised)

31.03.2012 Audited 23,668 420 23,248 23,248 5,071 9,800 (963) 1,712 195 4,460 20,275 2,973 147 3,120 212 2,908 2,908 731 203 1,974 1,974 1,132

GOING FORWARD

WE ARE NOW
No. 1 Brand in Pressure cookers No. 1 Brand in Cookware No. 1 Brand in Value added Gas Stoves

No. 1 Brand in Induction Cook tops

Indias only company to offer the complete Induction Cooking solution

Indias largest Kitchen appliance company

WE ARE COMMITTED TO TAKE THIS LEADERSHIP POSITION EVEN FURTHER!

Investments in Manufacturing - about Rs.3250 Million

between FY 2010-11 and FY 2013-14
We have doubled pressure cooker capacity in last 12 months

We are quadrupling Cookware capacity which will be in place during FY 2013-14

All our investments comprise state of the art manufacturing infrastructure and plant We have started indigenous production of some appliances and cookware hitherto imported

OPPORTUNITIES
STRONG FUNDAMENTALS OF INDIAN ECONOMY EXPECTED GDP GROWTH OF ABOVE 6% SHIFT IN INCOME GROUPS TOP OF THE PYRAMID MARKET SEGMENT ADDITIONAL PRODUCT CATAGORIES IN THE KITCHEN/DINING SEGMENT INCREASE IN RURAL CONSUMPTION PREFERENCE TO BRANDED QUALITY PRODUCTS VAST UNTAPPED MARKET CATEGORIES AND GEOGRAPHIES SELECT EXPORT MARKETS FOR SPECIFIC PRODUCTS STRONG LONG-TERM RESOURCE BASE GIVES FREEDOM TO EXPLORE STRATEGIC OPPORTUNITIES FOR GROWTH

CHALLENGES
IN THE SHORT RUN TRANSIENT SLOW DOWN IN TAMILNADU AND KERALA IN THE MEDIUM TERM CONTINUING INFLATIONARY TREND IN ITEMS OF DAY TO DAY CONSUMPTION ANDHIGHER INTEREST RATES WHICH CAN IMPACT CONSUMER SENTIMENT VOLATALITY OF INDIAN RUPEE AND LAG IN PRICE REVISIONS LOWER GDP GROWTH SINCE 2011-12 SLOW REFORM PROCESS PROLIFERATION OF REGIONAL BRANDS AND DOWN-TRADING ENTRY OF MNCS/BRANDED DOEMSTIC NATIONAL PLAYERS IN APPLIANCES SEGMENT

OUR RESPONSE TO CHALLENGES WE BELIEVE THAT WE WILL STRIKE A BALANCE BETWEEN OPPORTUNITIES AND CHALLENGES WE HAVE ALREADY BROAD BASED OF OUR PRODUCT RANGE AS WELL AS CONSUMER BASE SEEING EXCELLENT GROWTHS IN NON-SOUTH MARKETS WE WILL CONTINUE TO WIDEN OUR PRODUCT RANGE AND CONSUMER REACH SCALING UP PRESTIGE SMART KITCHEN NETWORK ACROSS INDIA WE ARE MAKING SIGNIFICANT INVESTMENTS IN INNOVATION, HUMAN RESOURCE DEVELOPMENT, LOGISTICS AND SERVICE WHEREVER REQUIRED CONSULTANTS OF GLOBAL REPUTE ENGAGED WE HAVE CLOCKED IN A CAGR OF OVER 28% FOR THE LAST 10 YEARS. THUS OUR BASE HAS ALREADY INCREASED. DEPENDING ON THE GENERAL ECONOMIC CONDITIONS WE EXPECT TO MAINTAIN DECENT GROWTH RATES AND A HEALTY RETURN ON CAPITAL EMPLOYED

SAFE HARBOUR

THIS PRESENTATION MAY CONTAIN STATEMENTS WHICH ARE FUTURISTIC IN NATURE. SUCH STATEMENTS REPRESENT THE INTENTIONS OF THE MANAGEMENT AND THE EFFORTS BEING PUT IN BY THEM TO REALISE CERTAIN GOALS. THE SUCCESS IN REALISING THESE GOALS DEPENDS ON VARIOUS FACTORS BOTH INTERNAL AND EXTERNAL. THEREFORE THE INVESTORS ARE REQUESTED TO MAKE THEIR INDEPENDENT JUDGEMENTS BY TAKING INTO ACCOUNT ALL RELEVANT FACTORS BEFORE TAKING ANY INVESTMENT DECISIONS.

Thank you