Welcome to TTK

The TTK Group

Started in 1928 as anindenting agency• Founded by Mr. TT Krishnamachari• Pioneered organized distribution• Health care, Foods, Personal care

products, Writing instruments, Ethical products

• Cadbury’s, MaxFactor, Kiwi, Kraft, Sunlight, Lifebuoy, Lux, Ponds, Brylcreem, Kellogg's, Ovaltine, Horlicks, Mcleans, Sheaffer’s, Waterman’s & many more

Manufacturingcommenced in1950• Pioneered several

categories in India• Pressure cookers,

Gripe water, Maps, Condoms, ball pens, Toys and Heart Valves.

Today a Rs22 Billion group•30 product

categories andservices

•16 manufacturing units

•12000 employees•Exports to every

continent

Indian roots, Global Reach

Diversified Group Structure

UK Subsidiary of TTK Prestige Limited - Consumer Durables - Unlisted

• Consumer durables - Listed

TTK Prestige Limited

• Pharmaceuticals, Medical devices , Consumer products and Foods - ListedTTK Healthcare Limited

• Condoms

• Non-Resident services and KPO

TTK Protective DevicesLimited

TTK Services privateLimited

• Health Insurance JV with Cigna of USACigna TTK Health Insurance

Company Limited

TTK Prestige Limited

TTK British Holdings LimitedHorwood Homewares Ltd

Mission of the groupTo provide quality consumerproducts at affordable prices

Core values of the groupTrust, Transparency and Knowledge

TTK Prestige Limited

• Incorporated in 1955.• Flagship company of TTK Group• India’s largest kitchenware company.• IPO in 1994.• 3000 strong human capital• Till 2015 Two brands in the portfolio.

Prestige and Manttra. Now added Judge, Stellar & Horwood global brands.

• 10 Manufacturing units• Captive design and tool-room facilities• Versatile distribution network

A unique combination of strongmanufacturing, design andmarketing systems.

Promoters 70%

Public and Inst.30%

Shareholding

Paid up capital Rs. 116million , 10000shareholders

Board of Directors/ ManagementPromoter Directors• Mr. TT Jagannathan – Executive Chairman• Mr. TT Raghunathan – Vice Chairman• Dr. TT Mukund

Professional Directors• Mr. Chandru Kalro– Managing Director &CEO• Mr. K. Shankaran – Director (Corporate Affairs)

Independent Directors• Mr. R. Srinivasan• Mr. Arun Thiagarajan• Dr.(Mrs) Vandana Walvekar• Mr. Dileep Kumar Krishnaswamy• Mr. Murali Neelakantan Well balanced BoardSub Board level

– 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 - NEWCAPACITIES IN UTHARKAND AND COIMBATORE

• 2006- 2010 – TRANSFORMATION INTO A TOTAL KITCHEN SOLUTION PROVIDER LEAD BYINNOVATIONS LIKE INDUCTION TOPS, APPLE COOKERS,MICROWAVE PRESSURE COOKERS ANDA 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.13.8 BILLION (28% CAGR in 10 years)• 2013-2015 –ADVERSE ECONOMIC CONDITIONS AND STATE POLICY IMPACTED GROWTH• 2015-16 – GOT BACK TO DOUBLE DIGIT GROWTH IN MOST DIFFICULT CIRCUMSTANCES AND

INCREASED MARKET SHARE ACROSS CATEGORIES. CROSSED RS. 15 BILLION MILESTONE IN TURNOVER

• 2016 APRIL – ENTERED NEW HORIZONS – UK ACQUSITION & CLEANING SOLUTIONSTRANSFORMATION ACHIEVED BY THE SAME MANAGEMENT TEAM

PRODUCT CATEGORIES BEFORE 2001

Less than 100 SKUs

PRODUCT CATEGORIES NOW

SEVERAL HUNDRED SKUs

BASIC PHILOSPHY THAT LEAD TOTURNAROUND 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

FRUITS OF THE JOURNEY

WE DERISKED THE COMPANY FROM BEING DEPENDANT ON SINGLE PRODUCT AND SINGLE MARKET

WE DERISKED THE MANUFACTURING AND SOURCING FROM BEING DEPENDENT ON ASINGLE LOCATION/ FEW SOURCES

TODAY WE ARE OPERATING IN A MARKET SIZE OF RS. 120 BILLION AS COMPARED TO JUSTRS.5 BILLION 10 YEARS BACK.

TOTAL INCOME(SALES +OTHER INCOME) GREW AT CAGR OF AROUND 28% BETWEEN2003–13 FROM RS.1.13 BILLION TO NEARLY RS. 13.8 BILLION. AFTER A BRIEF LULL CROSSED RS.15.5 BILLION IN TUNRONVER IN 2015-16

PRESSURE COOKERS VOLUMES GREW FROM 1 MILLION TO NEARLY 5 MILLION COOKWARE VOLUMES GREW FROM 0.4 MILLION TO NEARLY 5 MILLION APPLIANCES BECAME A SIGNIFICANT PART OF THE PORTFOLIO – CURRENTLY ABOUT 40% OF

TOTAL SALES ESTABLISHED CLEAR LEADERSHIP IN KEY PRODUCT CATEGORIES FROM A NEGATIVE EBIDTA OF 61.2 MILLION TO A POSITIVE OPERATING EBIDTA

HOVERNING CLOSE TO Rs.2 billion PROFIT BEFORE TAX GREW FROM A LOSS SITUATION OF RS. 17.42 MILLION TO A PROFIT

LEVEL HOVERING BETWEEN Rs.1.6 BILLION TO RS. 1.8 BILLION PAT GREW FROM A LOSS OF RS.114.7 MILLION TO A POSITIVE PAT RANGE OF Rs.1.1 BILLION TO

RS.1.3 BILLION NET CURRENT ASSET TURNOVER RATIO IMPROVED FROM 1.7 TIMES TO NEARLY 5 TIMES OPERATING ROCE FROM NEGATIVE TO 28% AFTER HUGE CAPACITY EXPANSION OUTLAY OF

Rs.3.5 BILLION WON SEVERAL AWARDS – ORGANISATION AS WELL AS INDIVIDUAL TEAM MEMBERS

Awards & Acolades.-- A-w_,_ardsof2012

AChoMnbJllM

BRAND2011-2012

Prestige

t/k

AWARDS RECEIVED 2015-16

Super Brand – 5th Time in a Row Master brand Award – 3rd Time in a RowReader’s Digest Most Trusted Brand – 3rd Time in a RowSelected No.1 Brand in Kitchen AppliancesBrand Excellence award in Kitchen AppliancesIndia’s Most Trusted Brand in Kitchen AppliancesTotal Productive Maintenance Award from JIPM, Japan-First in the consumer durable industry 100 Most Valuable Brands of IndiaCII Design Award for Clip-on CookerIcon of the Year in Kitchen Appliances India Design Mark for Hobtop & Clip-onBest After Sales Service For Small & Kitchen Appliances

Strengths of the company

•India’s first ISO 9001: 2000 certified Kitchenware company•India’s 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 servicenetwork in thecategory

• Within and outsideIndia

• Dedicated vendors within India to implement our designs

• 10 manufacturingunits

• Excellent Product developmentcapability

• Strengths in Deep draw of Aluminumand SS

Manufacturing Sourcing

QualityMarketing

Brand

The Prestige Brand

India’s Largest Kitchen appliance

brand

• Turnover & Profits• Product portfolio• Reach• No. of customers

Marketinginnovations

•Exchange schemes•Display schemes•Retail

• Pressure cookers Product • Metal spoon

innovations friendly cookware• Duplex gas stoves

Core values of the brand are TRUST, SAFETY,

DURABILITY

Leaders in Pressure cookers,cookware, Induction Tops Prestige is a Superbrand

The market for us

Pressure cookers,1,755 , 14%

Non Stick cookware, 1,045 , 9%

Chimneys, 1,037 , 9%

Rice cookers, 532 , 4%

Mixer Grinders, 2,662 , 22%

Gas Stoves, 2,396 , 20%Induction cooktops,780 , 6%

Wet Grinders, 653 , 5% Small Appliances, 1,310 , 11%

A 12000 crore landscape

The Prestige product portfolio –widest in the industry

Preparation before cooking

Chopping

Blending

Grinding

Processing

Food preparation

Pressurecooking

Cooking

Sautéing,frying etc

Baking

Kitchensupplements

Heaters

Toasting

Beveragemakers

Kitchen Hardware

Chimneys

Store-ware

Mixer grinders Food Processors Choppers BlendersJuicersWet Grinders Knives

Pressure cookers Non stick cookwareLPG gas StovesInduction Cook tops LPG HobsHob-Tops OTG’sRice Cookers Barbecues

KettlesPop up Toasters Sandwich toastersCoffee Makers Tea Makers

Completekitchen Solutions.

Distribution StructureTraditional

Trade

Direct Dealers

Authorized Re-distributors

Modern Trade

Hypermarkets

Super markets

Shop in Shop

Own Retail

Prestige Smart Kitchen Offline

and Online

Institutions

CSD

BPCL

HPCL

Corporate and Govt.

Rural Inst

Online

Market Place

Direct Sell

Sub Dealers

Distribution

Infrastructure and ReachUnique

Nationalpresence

28 branch locations

Over 250,000sq.ft of

warehousing

Several thousand

outlets

Large salesforce

400 direct &1000 indirect

Product/territory/Chan

nel focus

Committed and well qualified

sales management

structurewith multiple

channels

Own retail

Modern format

Traditional retail

CSD

Oil Marketing Cos

Online

Rural

Channel contributions

Traditional trade 58%

Modernformat21%

Own retail17%

Institutions4%

Retail initiative

Key highlightsUniquepioneering effort•First kitchen appliance brand

Nationalpresence•534outlets•230 towns

High conversion ratio•60% of walk-ins actually buy

Highefficiency/sq ft•Over Rs.8000/sq ft.

Direct contactwith customer•Ability to launch new products

Ability to growbeyond market

growths

Results of the Retail initiativeQuick reach of new products

Brand is today seen in a new light.

Show cases the brand in the intended andcomplete format for 365 days

Unique engagement with the customer.

Unmatched on ground presence and a uniquelistening post.

Greater leverage with trade – both traditional and modern format.

Lower cost of sales in the long run.

INNOVATIONTHE KEY TO GROWTH AND TO MEET CHALLENGES

SOME KEY INNOVATIONS• HANDI SHAPED PRESSURE

COOKES

• APPLE COOKERS WHICH WONDESIGNER AWARDS

• CUSOTMISATION OF INDUCTION COOKTOPSFOR INDIAN MARKETS.

• INDUCTION BASE ON A H.A. BODY

MICROCHEFA 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• MAJOR RESPONSE IN THE JAPANESE MARKET

2011-12 & 12-13• NEW MODELS DEVELOPED FOR FUTURE

LAUNCH

INNOVATIONS IN TRADITIONAL PRODUCTS

Nakshatra Cute Silky Red Duo

Silky Red Aluminium O/L

HA Multi Kadai

NEW PRODUCT INNOVATIONS-APPLIANCES

Teon 3 jar, Teon 4 Jar

Roti Maker

Induction 3.0 V3

FACTORS THAT LEAD TO GROWTH AND SUSTAINABILITYGeneral economic factors•Economy was growing between 8-9% for a period of about 6 to 7years till 2010-11.Consistent increase in number of middle incomegroups•Rural employment guarantee scheme•Growing disposable income in the hands of consumerConsumer 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 Prestige’s 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

FINANCIALS

14611894

23182933

33984162

5168

7756

11227

1385913234

14214

15588

1000

3000

5000

7000

9000

11000

13000

15000

17000

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

SALES TREND (Rs. Millions)

1633.9 1861.1 2203.4 2406.6 31694132.1

5106.4 4940.1 5291.3 5566.0434.9 539.7 635.6 872.5

1539.9

2246.92448.5 2265.8

2627.9 2752.3

731.9 846.21159.6

1716.1

2828

4549.6

5833.3 5643.15734.9

6679.8

132 151.5163

172.3

218.9

299

470.7385

560.1

590.1

2932.73398.5

4161.6

5167.5

7755.8

11227.6

13858.913234

14214.2

15588.2

0

5000

10000

15000

20000

25000

30000

35000

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Total

OTHERS

APPLIANCES

COOKWARE

COOKERS

Rs.Milllion

257.9327.7

381.3

761.6

1259.6

1759.2

2084.5

1681.0

1543.4

1920.7

0.0

500.0

1000.0

1500.0

2000.0

2500.0

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

EBIDTA TREND FROM 2006-07 (RS. MILLION)

PERFORMANCEFor the Year Ending 31st March 2016

(Rs. Million)

15-16 14-15

Sales 15588.2 14214.2

Other Income 96.0 51.0

EBIDTA BEFORE EXCEPTIONAL ITEMS 1920.7 1543.4

PROFIT BEFORE TAX 1655.7 1333.0

PROFIT AFTER TAX 1148.2 923.2

EBIDTA Before Exceptiona Items/SALES % 12.32 10.86

PERFORMANCEFor Quarter Ending 31st March 2016

(Rs. Million)

15-16 14-15

Sales 3144.8 2929.8

Other Income 29.8 10.3

EBIDTA BEFORE EXCEPTIONAL ITEMS 367.3 194.0

PROFIT BEFORE TAX 302.8 140.7

PROFIT AFTER TAX 216.2 97.6

EBIDTA/SALES % BEFORE EXCEPTIONAL ITEMS 11.68 6.62

KEY FACTS RELATING TO FY 2015-16

• General Economy continued to see sluggish demand save for a transient boom during Festive season in October.

• Severe drought conditions had adverse impact on many markets in Q4.• Key Tamil Nadu market was severely impacted in Q3 due to unprecedented floods.• Except Kerala all other markets registered growth during the year• Company registered domestic growth of 10% -greater than GDP growth. • EBIDTA margin) before exceptional items improved to 12.3% from Previous Year

margin of 10.8%• Settlement reached with Hosur Union with improved productivity norms• Agreements firmed up with major E-commerce channels. E-Commerce channels

contribution to growth is encouraging• Created 3 modern fulfilment centres to serve e-commerce business. • Right-sized Hosur unit with a Voluntary Retirement Scheme• Same stores growth in PSK’s was encouraging• A host of New Models/New Products in all categories introduced• Category/Model Mix , improved capacity utilisation and favourable commodity

price movements helped margin improvement.

PART I (Rs in Crores)

Sl.No. PARTICULARS

31.03.2016 31.12.2015 31.03.2015 31.03.2016 31.3.2015Audited Unaudited Audited Audited Audited

Sales/Income from operations 314.48 457.46 292.98 1558.82 1421.42Less: Excise Duty 6.76 9.63 6.77 33.70 33.13

1.(a) Net Sales/Income from operations(Net of excise duty) 307.72 447.83 286.21 1525.12 1388.29 (b) Other Operating Income 0.00 0.00 0.00 0.00 0.00

Total Income from operations (net) 307.72 447.83 286.21 1525.12 1388.292. Expenses

a) Cost of Materials consumed 93.10 122.39 64.02 459.38 441.83b) Purchase of stock-in-Trade 78.30 141.85 70.73 432.16 364.59c) Changes in Inventories of Finished Goods, Work in Progess and Stock-in-Trade

(2.16) (13.78) 32.69 (38.00) (10.71)d) Employee benefits expense 27.94 28.78 23.69 111.39 103.58e) Depreciation and amortisation expense 6.24 5.15 4.87 20.92 19.01f) Other expenses 76.79 110.60 76.71 377.72 339.76Total Expenses 280.21 394.99 272.71 1363.57 1258.06

3. Profit from ordinary activities before other Income,Finance costs & exceptional items(1-2) 27.51 52.84 13.50 161.55 130.23

4. Other Income 2.98 2.00 1.03 9.60 5.10

5.Profit from ordinary activities before finance costs and exceptional items(3+4) 30.49 54.84 14.53 171.15 135.33

6. Finance Costs 0.21 0.41 1.05 1.84 4.47

7.Profit from ordinary activities after finance costs but before exceptional items(5-6) 30.28 54.43 13.48 169.31 130.86

8. Exceptional items 0.00 0.00 0.59 (3.74) 2.449. Profit(+)/Loss(-)from ordinary activities before tax(7+8) 30.28 54.43 14.07 165.57 133.3010. Tax Expense

- Current Tax 7.66 16.14 2.11 47.59 35.07 - Deferred Tax 1.00 1.09 2.20 3.16 5.91

11. Net Profit(+)/Loss(-)from ordinary activities after tax(9-10) 21.62 37.20 9.76 114.82 92.3212. Extra-ordinary items (Net of tax expense) 0.00 0.00 0.00 0.00 0.0013. Net Profit(+)/Loss(-) for the period (11+12) 21.62 37.20 9.76 114.82 92.32

14. Share of Profit/(loss) of associates 0.00 0.00 0.00 0.00 0.0015. Minority Interest 0.00 0.00 0.00 0.00 0.00

16.Net Profit/(Loss) after taxes,minority interest and share of profit/(loss) of associates(13+14+15)_ 21.62 37.20 9.76 114.82 92.32

17. Paid up Equity Share Capital(face value Rs.10/-) 11.65 11.65 11.65 11.65 11.6518. Reserves excluding Revaluation Reserves as per Balance

Sheet of previous account year 709.15 632.1619. 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) 18.57 31.96 8.38 98.63 79.30b) Basic and Diluted EPS after Extraordinary items for the period,for the year todate, and for the previous year (Not to be annualised) 18.57 31.96 8.38 98.63 79.30

TTK Prestige LimitedStatement of Audited Financial Results for the Quarter and year ended 31st March 2016

Quarter endedYear to Date figures for the

Period ended

GOING FORWARD

No. 1 Brand in Pressure cookers

No. 1 Brand in Cookware

No. 1 Brand in Value added Gas Stoves

No. 1 Brand inInduction Cook tops

India’s only company to offer the complete

Induction Cooking solution

India’s largest Kitchen appliance

company

WE ARE NOW

WE ARE COMMITTED TO TAKE THISLEADERSHIP POSITION EVEN FURTHER!

Investments in Manufacturing - about Rs.3.5 billionbetween FY 2010-11 and FY 2013-14No Need for Major Capex in the near future

Innovation/Development costs – revenue in nature - about 1.5% of sales

We have doubled pressure cooker capacity between 2012 & 2014

We have quadrupled Cookware capacity 2012 & 2014

All our investments comprise state of the art manufacturing infrastructure and plant

We have started indigenous production of some appliances and cookware hitherto imported

UK Acquisition

• In April 2016 acquired UK based Horwood Housewares Limited.

• Horwood owns Brand names – Judge, Stellar, Kaufman and has deep distribution links in UK.

• Brands known in Europe but not penetrated• Sales of 18m GBP and EBIDTA of 2.9m GBP• Provides all-round synergies• This move provides the company a way forward

for tapping the European market.

HEALTHY LIVING BEGINS WITH CLEAN HOME

NEW CATEGORY LAUNCH –FY 17

New Growth area – Cleaning Solutions

Electrics

Floor Care

Electric Mop

Vacuum cleaners

Floor polishers

Air Care

Air Purifiers

Home care

Steam cleaners

Window cleaners

Non Electrics

Mops

Magic mops

Spray mops

Stick Mops

Squeeze mops

Cleaning aids

Ladders

Flip bins

LAUNCHING CLOSE TO 30 SKUS WITH PRICE POINTSOF Rs.300 to 21000 in Prestige Clean Home Range

Kitchen Appliance Industry & Customer Scenario • Kitchen Appliances Industry in general is fragmented with about 40 to 50%

comprising of unorganised players/small regional brands• In line with general economy the growth in the Industry is muted over the last

two years• TTK Prestige is the only National Player present in both non-electrical and

electrical domestic kitchen appliances with an annual turnover in excess of Rs.1500 crores with a free-cash generation of the order of Rs.100Crs annually

• Industry growth predominantly dependent on Middle of the Pyramid consumers , their disposable income levels & consumption mind-set which currently is sluggish.

• Consumer interest or apathy vary from market to market – geographies as well as urban/non-urban

• Upper middle income group and Top of the Pyramid continue to buy value added products at premium price points

• Currently entry level low-premium products move in Induction Top & Mixer grinder categories

• Aggressive on-line players influencing expectation of lower price points thus impacting the prompt consumption hitherto witnessed

• Customer segmentation and relevant product offering is the key to growth and improving share by eating into competition in the absence of industry growth

Cost & Earnings Trends in the Industry

• Key raw-material in our Industry is Aluminium for cookers and cookware categories

• Cost of crude has an impact on components used in various appliances• Both metal and crude prices are favourably placed• Regarding Electrical Appliances – Components/Finished Products are

largely imported from China• Able to get savings in component/finished products costs• For Imports now credit is extended by the Vendors• Rupee Depreciation to an extent reduces the above cost advantages• Expects the current favourable input cost scenario to last for a year or so• Visibility on sales growth in volume for the Industry is rather foggy and

depends on timely adequate monsoon and general economic recovery especially - Infrastructure, Agricultural & Manufacturing

• Individual Players adopting promotion & discounting, down-trading etc.,

OPPORTUNITIES

STRONG FUNDAMENTALS OF INDIAN ECONOMY EXPECTED GDP GROWTH OF ABOVE 7% FROM FY 16-17 NEW INFRASTRUCTURE/SMART TOWNS/RURAL DEVELOPMENT INITIATIVES OF

GOVERNMENT SHIFT IN INCOME GROUPS TOP OF THE PYRAMID MARKET SEGMENT ADDITIONAL PRODUCT CATAGORIES IN THE KITCHEN/SPECIFIC HOME SPACE EXPECTED REVIVAL IN RURAL CONSUMPTION PREFERENCE TO BRANDED QUALITY PRODUCTS VAST UNTAPPED MARKET – CATEGORIES AND GEOGRAPHIES LEVERAGING EMERGING ON-LINE CHANNEL TO BROADEN CUSTOMER BASE SELECT EXPORT MARKETS FOR SPECIFIC PRODUCTS STRONG LONG-TERM RESOURCE BASE GIVES FREEDOM TO EXPLORE STRATEGIC

OPPORTUNITIES FOR GROWTH GLOBAL SCALE CAPACITY FOR COOKERS & COOKWARE TO MEET GROWTH NEEDS –

DOMESTIC AND EXPORT

CHALLENGES CONTINUING LUKEWARM CONSUMER SENTIMENT WEAK GLOBAL MARKETS PRESSURE ON DISPOSABLE INCOME LOWER GDP GROWTH SINCE 2011-12 POLITICAL STAND-OFFS IMPACTING REFORM PROCESS PROLIFERATION OF REGIONAL BRANDS & THEIR TRADE

PRACTICES POSSIBLE DOWN TRADING WARRANTING LOW PRICE POINT

PRODUCTS ENTRY OF MNC’S/BRANDED DOEMSTIC NATIONAL PLAYERS IN

APPLIANCES SEGMENT CHANNEL CHURN & CHANNEL MANAGEMENT

Key Strategy of TTK Prestige in the Current Scenario& Expected Impact

• Drive consumer interest by well differentiated offerings• Leverage Brand strength to enter select categories transcending Kitchen Domain• Target domestic growth rate in excess of GDP growth rate• Not to indulge in unnatural pricing – ‘down’ to push the product or ‘up’ to just to

increase profits by masking operational inefficiencies• Create a pull by making consumer see value for money• Pass on increase in in-put costs without much lag• Use savings in costs for improving brand salience and also to shore up free cash• Continue to Innovate – Launch in excess 100 new SKUs in FY 17 • Increase geographical penetration in under-penetrated markets in non-south and

select non-urban markets• Leverage on-line for new customer reach• Maximise the potential of Prestige Smart Kitchen network• Use the advantage of scale for competitive input cost management• Higher labour productivity across manufacturing locations to drive cost-advantage.

Right sizing already implemented in Old factories.• Improve internal efficiencies especially in logistics and warehouse management• Leverage Scale of economies to improve margins• Return on Operating Capital (net of treasury deployment)slated to improve

WE BELIEVE THAT WE WILL STRIKE A BALANCE BETWEEN OPPORTUNITIES AND CHALLENGES

WE HAVE ALREADY BROAD BASED 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

STRENGTHENING AND CALIBERATED SCALING UP OF PRESTIGESMART KITCHEN NETWORK ACROSS INDIA

NEW BRAND CAMPAIGN DISTINGUISHING US FROM COMPETITION.

OUR RESPONSE TO CHALLENGES

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% TILL 2013. THUS OUR

BASE HAS ALREADY INCREASED. FOR THE CURRENT, FOCUS IS TO WARD OFF SLUGGISH TRENDS AND

STAY AHEAD OF THE COMPETITION. WHILE MARGIN MAY FLUCTUATE WITHIN A SMALL BAND, MARKET SHARE GAIN IS THE GOAL

FOR THE LONG-TERM, DEPENDING ON THE GENERAL ECONOMICCONDITIONS AND AIDED BY THE NEW GOVT’S POLICY INITIATIVESWE EXPECT TO MAINTAIN DECENT GROWTH RATES AND AHEALTHY RETURN ON THE EXPANDED ASSET BASE

SAFE HARBOUR

THIS PRESENTATION MAY CONTAIN STATEMENTS WHICH ARE FUTURISTICIN NATURE. SUCH STATEMENTS REPRESENT THE INTENTIONS OF THEMANAGEMENT AND THE EFFORTS BEING PUT IN BY THEM TO REALISECERTAIN GOALS. THE SUCCESS IN REALISING THESE GOALS DEPENDS ONVARIOUS FACTORS BOTH INTERNAL AND EXTERNAL. THEREFORE THEINVESTORS ARE REQUESTED TO MAKE THEIR INDEPENDENTJUDGEMENTS BY TAKING INTO ACCOUNT ALL RELEVANT FACTORSBEFORE TAKING ANY INVESTMENT DECISIONS.