Timex Group India Ltd — Investor Presentation 2021

Feb 3, 2021

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February 3, 2021

The Secretary BSE Ltd. P J Towers, Rotunda Bldg., Dalal Street, Fort Mumbai – 400 001

Scrip Code: 500414

Sub: Intimation under Regulation 30(6) of SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015 - Investor Presentation for Q3 of FY 2020-21

Dear Sir,

Please find enclosed the Investor Presentation covering the performance highlights of the Company for Q3 of FY 2020-21

We have also uploaded the presentation on the Website of the Company at www.timexindia.com

You are requested to take the above on your records.

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Regd. Office: E-10, Lower Ground Floor, Lajpat Nagar-III, New Delhi-110024. Tel. : +91 11 410 21297

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Timex Group India Limited Investor Presentation Q3 FY2020-21

03 February 2021

February, 2021

Disclaimer

This presentation may contain certain forward looking statements concerning Timex’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements.

The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to implement strategy and manage growth, competition (both domestic and international), market demand for products, successful operation of our sales channels, price of our raw materials, economic growth in India and the target countries for exports, ability to attract and retain highly skilled professionals, time and cost over runs, our ability to manage our operations, government policies and actions with respect to investments, fiscal deficits, regulations, etc., inflation, foreign exchange rates, interest and other fiscal costs generally prevailing in the economy.

Past performance may not be indicative of future performance. We do not undertake to publicly update our forward-looking statements to reflect subsequent events or circumstances. Timex will not be responsible in any way for any action taken based on such statements.

This presentation is not intended, and does not, constitute or form part of any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Timex or any of it’s group companies or any other invitation or inducement to engage in investment activities, neither shall this presentation nor the fact of it’s distribution form the basis of, or be relied on in connection with, any contract or investment decision. The numbers & the contents in this presentation are purely indicative and subject to change.

February, 2021

Middlebury, Conn. — November 23, 2020 — Timex Group, the global maker of timepieces, announced that its owners have entered into an agreement pursuant to which an affiliate of The Baupost Group, LLC, the Boston-based investment firm, will acquire majority ownership of the company.

Timex Group’s existing shareholders will retain a significant ongoing interest in the business.

The investment is an expression of Baupost’s confidence in Timex Group’s long-term future. The company has built the Timex brand into a household name synonymous with quality and innovation.

The Baupost Group is a Boston-based investment manager with a longterm, value-oriented approach. Since 1982, the firm has been thoughtfully stewarding and compounding capital on behalf of families, foundations and endowments, as well as employees who collectively are the firm’s largest client.

Today Baupost manages roughly $29 billion, of which approximately 30 percent is held in cash or cash equivalents, which allows the firm to invest at scale and execute quickly on new opportunities.

February, 2021

Continued business recovery, led by E-Commerce, driven by increased consumption during the festive season

• The Company witnessed month on month progress in returning to business normalcy while some channels remain challenging.

• Retail recovery was driven by increased consumption during the festive season.

• E-Commerce continued to lead recovery and superseded 2019 levels; while the trade channel is recovering faster in tier 2/3 towns.

Business Update

Q3 FY2020-21

• Metro markets and Large Format Stores recovery has started, but remains impacted due to low walk-ins.

• Launch of smart wearables, new festive season products, and continued digital marketing have contributed to business recovery.

• OEM Business: The strategic tie-up with Flipkart for design, manufacture, and after sales service for watches of its recently acquired fashion brands continued to grow with new introductions.

• For the first time, the Company diversified its product offering with the launch of Timex Wall Clocks.

• The Company launched the Italian fashion brand Furla in India.

February, 2021

Highlights Q3 FY2020-21

February, 2021

Introducing FURLA

TGIL beings FURLA watches to India

Timex Group India has brought to India Furla, a brand that stands for Italian savoir-faire and creativity characterised by its time-honoured craftsmanship and artisanal expertise.

Furla signed a license with Timex Group for the production and global distribution of its new watch collection.

With a strong Italian design Furla watches are all set to serve the Indian consumers, and are available in the price range starting from INR 11,000 till up to INR 18,000.

February, 2021

Introducing FURLA

FURLA Launch Marketing

VM- Instore Display & Branding: placement in key retail counters and modern retail stores with branding visuals and prominent display

PR & Social: Online & offline coverage of Furla Launch

Digital Marketing: Influencer activities with leading Bollywood and Indian television celebrities; Ecommerce Platform Brand pages & Organic Visibility.

February, 2021

Introducing TIMEX WALL CLOCKS

TGIL entered a new category with Timex Clocks in 2020.

The collection of 16 styles is made in India with a silent sweep technology.

The collection is packaged in an attractive blue packaging design, with a matching warranty card and user manual.

February, 2021

Partnership with Timehut: EXPANDING E-RETAIL

Timex Group announced its partnership with the retail entity Timehut as an authorised online retailer for its leading brands. Through this partnership, Timehut will be authorised to sell all the brands under Timex Group across various e-commerce portals such as Flipkart, Amazon, Myntra, Ajio, Tata Cliq as well as brand’s owned channels.

This will help Timex India to have control and grow marketplace across channels by leveraging the distribution channel and growing the e- commerce channel in partnership with Timehut to offer consumers trendy, innovative timepieces and the best of global selections in India at the comfort of their home.

February, 2021

GROWING WEARABLE TECH SEGMENT

TGIL continued the impetus on smart wearables with the launch of the fashionable Timex Fitness Band, and the iConnect by Timex – Premium Active Smart Watch.

February, 2021

GROWING WEARABLE TECH SEGMENT

The ever-growing Technology roadmap is supported by a 360 degree GTM Strategy. The Timex Fitness Band won the ‘Lifestyle Fitness Band of the Year’ at the 2020 Jagran Hi-Tech Awards.

February, 2021

Financial Performance

Q3 FY2020-21

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Improvement in financial performance over last quarter but performance still remains impacted due to the ongoing pandemic.

• Revenue has de-grown by 23% during the quarter as compared to 56% during last quarter, as compared to last year numbers. During nine months revenue has de-grown by 55% over last year.

TGIL Financial Performance Q3 FY2020-21

• EBIDTA is at Rs. 538 lacs during the quarter as compared to negative Rs. 202 lacs during last quarter. EBIDTA for nine months is at negative Rs. 753 lacs as compared to Rs. 832 lacs last year.

• Profit before tax is at Rs. 400 lacs as compared to loss before tax of Rs. 357 lacs during last quarter. During nine months loss before tax is at Rs. 1199 lacs compared to profit before tax of Rs. 379 lacs last year.

• Revenue from operations includes other operating income for the quarter and nine months ended December 31, 2020 of Rs. 164 lacs on account of reversal of provisions against receivables, created during quarter ended March 31, 2020.

Company's operations and financial results for the nine months ended December 31, 2020 have been adversely impacted by the outbreak of COVID-19 pandemic due to which the results are not comparable with previous year.

February, 2021

TGIL Financial Performance – Current Quarter

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Total Income - Quarter De-growth 600 12.0%
(23%)
EBIDTA 10.0%
500 EBIDTA % 10.0%
7000 6972
6000 400 8.0%
6.5%
5354
5000
300 6.0%
4000 538
450
3000 200 4.0%
2000
100 2.0%
1000
0 0 0.0%
Q3 Q3 Q3 Q3
19-20 20-21 19-20 20-21
Rs. in lakhs
Rs. in lakhs
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• Revenue from operations includes other operating income for the quarter ended December 31, 2020 of Rs. 164 lacs on account of reversal of provisions against receivables, created during quarter ended March 31, 2020.

Company's operations and financial results for the nine months ended December 31, 2020 have been adversely impacted by the outbreak of COVID-19 pandemic due to which the results are not comparable with previous year.

February, 2021

TGIL Financial Performance – Nine months ended 31st December 2020

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Total Income - Nine months De-growth
ended 31st December 2020 (55%) 900 4.1%
EBIDTA 4.0%
700
EBIDTA %
20000 20116
2.0%
500
832
300 0.0%
15000
100
-2.0%
10000 -100 9M 9M
9091 2019-20 2020-21 -4.0%
-300
5000 -753 -6.0%
-500
-8.0%
-700
0 -8.3%
9M 9M -900 -10.0%
2019-20 2020-21
Rs. in lakhs
Rs. in lakhs
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• Revenue from operations includes other operating income for the nine months ended December 31, 2020 of Rs. 164 lacs on account of reversal of provisions against receivables, created during quarter ended March 31, 2020.

Company's operations and financial results for the nine months ended December 31, 2020 have been adversely impacted by the outbreak of COVID-19 pandemic due to which the results are not comparable with previous year.

February, 2021

TGIL Annual Financial Performance: Total Income

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CAGR: 10%
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Note: GST Implemented from July 1, 2017 therefore revenue numbers are not strictly comparable to past.

February, 2021

TGIL Annual Financial Performance: EBIDTA

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Rs. in lakhs
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February, 2021

TGIL Annual Financial Performance: EBIDTA %

February, 2021

TGIL Annual Financial Performance: PBT

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Rs. in lakhs
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February, 2021

TGIL Shareholding Pattern

	31-Dec-17	31-Mar-18	30-Jun-18	30-Sep-18	31-Dec-18	31-Mar-19	30-Jun-19	30-Sep-19	31-Dec-19	31-Mar-20	30-Jun-20	30-Sep-20	31-Dec-20
Promoters	74.93%	74.93%	74.93%	74.93%	74.93%	74.93%	74.93%	74.93%	74.93%	74.93%	74.93%	74.93%	74.93%
Institutional Investors	0.19%	0.13%	0.13%	0.04%	0.03%	0.03%	0.03%	0.03%	0.04%	0.03%	0.03%	0.03%	0.03%
Public & other shareholding	24.88%	24.94%	24.94%	25.03%	25.04%	25.04%	25.04%	25.04%	25.03%	25.04%	25.04%	25.04%	25.04%
Total	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%	100%
Total no. of shareholders	58,069	55,785	54,667	49,870	46,463	46,077	45,470	45,220	44,905	44,988	45,245	45,051	44,447

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60,000
58,069
Number of share holders
55,000 54,667
55,785
50,000
49,870 46,463
45,470 44,905 45,245 44,447
45,000
46,077 45,220 44,988
45,051
40,000
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February, 2021

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TGIL Market Capitalization
36 18500
CAGR: 13% Timex Share Price vs BSE Small Cap
60,000 55,977
50,525 33
17500
50,000
45,175
37,503
40,000 30
32,809
16500
26,903
30,000
27
20,000 12,720
15500
24
10,000
- 21 14500
Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 01-Oct-20 22-Oct-20 12-Nov-20 03-Dec-20 24-Dec-20
Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Market Capitalisation (Rs. in lakh) Timex BSE Small Cap
Note: The market capitalization is based on BSE closing prices at the end of the period.
February, 2021
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Our History

February, 2021

TIMEX GROUP has a long and colorful history. The company was founded as the Waterbury Clock Company in Waterbury, USA in 1854. In manufacturing affordable, high-quality clocks and watches, we have spanned the entire epoch of American clock and watch making and the long waves of American industrial and economic history. Beginning with clocks, we expanded to pocket watches then wrist watches. Our portfolio has grown from basic mechanical movements to sophisticated analog quartz and category-defining technology; it comprehensively extends from lifestyle accessories to sport performance measurement instruments. With a focus on change and innovation, Timex continues to draw upon our legacy of watch making expertise, timeless classic designs and a commitment to unparalleled quality.

February, 2021

February, 2021

About Timex Group

Founded in 1854 3.000 + Designs and manufactures In-house Brands in India employees innovative timepieces that design, Timex worldwide are sold in over manufacturing, Helix 100 countries assembly and distribution TMX around the world Ted Baker Salvatore Ferragamo Versace Versus Nautica Teslar Furla

Additional Global Brands* Guess Gc Missoni CT Scuderia Vincent Berard

• These brands are not distributed by Timex Group India Limited.

February, 2021

Timex has a global footprint with over 3,000 employees worldwide and manufacturing and distribution facilities in 20 countries. Timex Group brands are sold in more than 100 Countries.

Timex Group in the World

Timex Brands Presence in the World: Argentina, Australia, Austria, Bahrain, Belgium, Brazil Bulgaria, Canada, Chile, China, Colombia, Costa Rica, Croatia, Czech Republic, Ecuador, Egypt, El Salvador, Estonia, France, French Polynesia, Germany, Gibraltar, Greece, Guam, Guatemala, Hungary, Iceland, India, Israel, Italy, Japan, Korea, Latvia, Lebanon, Lithuania, Malaysia, Malta, Mexico, Netherlands, New Caledonia, New Zealand, Norway, Pakistan, Paraguay, Panama, Peru, Philippines, Poland, Portugal, Qatar, Russia, Romania, Saudi Arabia, Singapore, Slovenia, Slovakia, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, Ukraine, United Kingdom, United States, United Arab Emirates, Venezuela, Vietnam, Zimbabwe.

Subsidiary Locations Corporate & Business Unit | Locations & Offices Manufacturing | Locations & Offices India USA Cebu UK Middlebury, Norwalk Canada Besancon Mexico Hong Kong Italy INTERNATIONAL Poland Noida, Amsterdam, Paris, Shenzhen China Lugano, Zug, Milan Baddi

February, 2021

About Timex Group India Limited (TGIL)

February, 2021

Timex Group India Limited (TGIL) is a group company of Tanager Group B.V. (formerly known as Timex Group B.V.)

Having entered India in 1988, Timex Group India today has one of the most powerful portfolios of brands in the watch industry. With technological innovation and cutting-edge design, we recognize the tremendous opportunity to leverage the reach and appeal of each brand’s individual identity, personality, and customer base.

Locations

Noida [Headquarters], New Delhi [Registered Office] Baddi, Himachal Pradesh [Factory] Regional Sales Offices – Noida, Mumbai, Kolkata, Bangalore, Chennai

About TGIL

1988-1990 Joint venture between Timex Group and Jayna Times Industries Ltd. 1990-2000 Joint Venture with Titan Company. JV ended in 2000. Since 1994 Public Limited Company listed on Bombay Stock Exchange. Since 2000 Subsidiary of Timex Group Luxury Watches B.V.

February, 2021

TGIL

BOARD OF DIRECTORS

David Thomas Payne | Chairman

Experience: 22+ years Qualification: B. Sc. (Computer Science) - University of Alabama & a Juris doctorate from Washington & Lee University

Sharmila Sahai | Managing Director

Experience: 30+ years Qualification: B.A., Post Graduate Diploma in Marketing Management from the Centre of Management & Development

Pradeep Mukerjee | Independent Director

Experience: 30+ years

Qualification: Masters in Personal Management & Industrial Relations from TISS & IR & B. Sc. from IIT

Gagan Singh | Independent Director

Experience: 30+ years Qualification: Chartered Accountant and Cost Accountant

Bijou Kurien | Independent Director

Experience: 35+ years Qualification: PGDBM from XLRI & Science Graduate

February, 2021

One of the Most Powerful Portfolios of Brands in the Indian Watch Industry

TGIL BRAND PORTFOLIO

February, 2021

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TGIL
RETAIL FOOTPRINT
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Multi-Brand Large Format Defence
Doors Stores Canteens
6145 335 1395
Ensuring Safety Guidelines Across TGIL Retail
Network
Nearly 8000 sales touchpoints that
enable TGIL to reach consumers
Timex World Luxury Retail E-Commerce
across the country
Showrooms Doors Partners
49 45 5
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February, 2021

TGIL Manufacturing

A state of the art SA 8000: 2014 and

OHSAS: 18001:2018 certified watch assembly unit

in Baddi, Himachal Pradesh, India

Land Area: 10,000 sq. meters; Built up area: 3,278 sq. meters. Assembly of watches from piece parts to complete watch. Currently handling over 50 types of watch – movements.

Assembly capacity of 10 k watches per day.

Includes assembly of digital, Analogue, Ana-Digi, Indiglo®. We have also assembled Smart-bands in the Baddi factory.

Assembly operation starts with assembling of fit-up i.e. by mounting dial and hands on the movement.

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CERTIFICATIONS
SA8000:2014 OHSAS 18001:2007 ISO45001:2018
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Online and Offline Assembly capability to accommodate both high & low volume movements.

February, 2021

TGIL After Sales Service

Over 200 locations supported by a Customer Care call centre service

Authorized Lead Authorized Authorized Service Workshops Service Centres Service Centres 5 17 205

February, 2021

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February, 2021