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, Sunlight, Lifebuoy, Lux, Ponds, Brylcreem, Kellogg's, Ovaltine, Horlicks, Mcleans, Sheaffers, Watermans & many more

30 product categories and services 16 manufacturing units 12000 employees 7 group companies Exports to every continent

Indian roots, Global Reach

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

Core values of the group Trust, Transparency and Knowledge

Diversified Group Structure

TTK Prestige Limited TTK Healthcare Limited TTK LIG Limited SSL TTK Limited TTK Healthcare TPA Limited TTK Services private Limited
Cigna TTK Limited Consumer durables - Listed Pharmaceuticals, Medical devices & Consumer products - Listed

Condoms - JV Company Foot care products JV Company Health insurance TPA JV Company Non-Resident services and KPO
Health Insurance JV company

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 Executive Vice President (Marketing) 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 FEB 2012 COMPANY TURNOVER CROSSES 1000 CRORES.

THE PATH OF THE JOURNEY SINCE 2002

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

FRUITS OF THE JOURNEY

WE DERISKED THE COMPANY FROM BEING DEPENDANT ON SINGLE PRODUCT AND SINGLE MARKET TOPLINE GREW AT CAGR OF AROUND 28 % SINCE 2003 FROM RS.1130 MILLION TO OVER RS. 10 BILLION IN FINANCIAL YEAR 2011-12. PRESSURE COOKERS VOLUMES GREW FROM 1 MILLION TO 4.5 MILLION COOKWARE VOLUMES GREW FROM 0.4 MILLION TO OVER 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. 1700 MILLION IN 2011-12 PROFIT BEFORE TAX GREW FROM A LOSS SITUATION OF 174.20 MILLION TO PROFIT LEVEL OF OVER 1600 MILLION PAT GREW FROM A LOSS OF114.70 MILLION TO A PROFIT OF ABOUT 1150 MILLION. NET CURRENT ASSET TURNOVER RATIO IMPROVED FROM 1.7 TIMES TO OVER 7 TIMES OPERATING ROCE FROM NEGATIVE TO 60.04% WON SEVERAL AWARDS

Indias most awarded company and brand

Super Brand Master Brand Best product design award for Prestige Apple

Best Franchise award

Best franchisor award

Retailer of the year award

Voted Indias most trusted Kitchen appliance brand

And last and most important

Star SME award for 2010!

SNAP SHOT OF FY 2010-11 (Rs. Million)

2011-12 est
2010-11 2009-10

SALES 11200.00 OTHER INCOME 25.00 PROFIT BEFORE TAX 1600.00 PROFIT AFTER TAX 1150.00 DIVIDEND

7755.80 43.00 1203.50 837.50 164.50

5168.00 11.40 754.00 524.40 132.00

HIGHLIGHTS OF FY 2010-11
SALES GREW BY OVER 50% ALL TIME ABSOLUTE VALUE GROWTH-AROUND Rs.2590 MILLION. PROFIT BEFORE EXTRAORDINARY ITEMS INCREASED BY 69.31% PROFIT AFTER TAX INCREASED BY 59.71% THE OPERATING EBIDTA MARGIN WAS 16.24% AS AGAINST 14.74% IN 2009-10 THE COMPANY CONTINUES TO BE DEBT FREE AND CARRIES A FREE CASH OF Rs. 760 MILLION EPS (BEFORE EXTRAORDINARY/EXCEPTIONAL ITEMS) ROSE TO Rs.74.46 from Rs.42.98 A GROWTH OF 73.24% THE RATIO OF OPERATING EBIDTA/CAPITAL EMPLOYED (INCLUDING FREE CASH BALANCE)IN THE KITCHEN SEGMENT ROSE TO 67.3%

Highlights of year 2011-12

Growth again is upwards of 40% for the year much higher than any peer in the industry. Strong ability to retain margins even in volatile situations. New product pipeline continues to impress trade and consumer. Operate in a 6500 crore industry with double digit growths in many categories. Many categories are new for Prestige and with its strong new product portfolio, enough headroom for growth is available. Company will cross 1000 crores. 2009 march was a little over 500 crores.

Strengths of the company

Manufacturing
8 manufacturing units Excellent Product development capability Strengths in Deep draw of Aluminum and SS

Sourcing
Within and outside India Dedicated vendors within India to implement our designs

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

Marketing
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 Modular Kitchen furniture

Chopping Blending

Pressure cooking Cooking Sauting, frying etc Baking

Grinding
Processing

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. Service business

Distribution Structure
Traditional Trade
Direct Dealers

Modern Trade
Hypermarkets

Own Retail
Prestige Smart Kitchen

Institutions
CSD

Authorized Redistributors

Super markets

Prestige Kitchen Boutique

BPCL

Sub Dealers

Shop in Shop

HPCL

Corporate and Govt.

Retail initiative
Key highlights
Unique pioneering effort
First kitchen appliance brand

Results of the Retail initiative

National presence
340 outlets 170 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.

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

Greater leverage with trade both traditional and modern format.

Lower cost of sales in the long run.

GOING FORWARD

FACTORS LEADING TO GROWTH AND SUSTAINABILITY

General economic factors Economy itself is growing between 8-9% for the last 6 years 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 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 Close contact with consumer Offering innovated and differentiated products ahead of competition Offering of wide range and total kitchen solution Expanding distribution width, depth and innovative channels Innovative marketing and sales promotion strategies Ensuring that Dealers enjoy real profits and higher ROI Dealer Loyalty 40% of counter profits come from TTK Prestige Economies of scale

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 NOW INTEND TO TAKE THIS LEADERSHIP POSITION EVEN FURTHER!

We are making sizeable investments in Manufacturing - about Rs.3000 Million

We are now more than doubling pressure cooker capacity We are quadrupling Cookware capacity We are investing in Indias only fully automated Hard anodizing plant We have many new initiatives in the pipeline.

OPPORTUNITIES
STRONG FUNDAMENTALS OF INDIAN ECONOMY CONTINUING GDP GROWTH OF OVER 7% SHIFT IN INCOME GROUPS INCREASE IN RURAL CONSUMPTION PREFERENCE TO BRANDED QUALITY PRODUCTS VAST UNTAPPED MARKET CATEGORIES AND GEOGRAPHIES

CHALLENGES
CONTINUING INFLATIONARY TREND IN ITEMS OF DAY TO DAY CONSUMPTION HIGHER INTEREST RATES VOLATALITY OF RAW MATERIAL PRICES SLOW REFORM PROCESS PROLIFERATION OF REGIONAL BRANDS EXPECTED ENTRY OF MNCS

 WE BELIEVE THAT WE WILL STRIKE A BALANCE BETWEEN OPPORTUNITIES AND CHALLENGES WE WILL FURTHER BROAD BASE OUR PRODUCT RANGE WE HAVE CLOCKED 50% GROWTH IN FY 2010-11 AND A CAGR OF 32% FOR THE LAST 3 YEARS. THUS OUR BASE HAS ALREADY INCREASED.
WE EXPECT THAT GIVEN THE OPPORTUNITIES, MAINTAINING A GROWTH RATE BETWEEN 20 AND 25% PER ANNUM IS FEASIBLE OVER THE MEDIUM TERM .

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