Trident Ltd — Investor Presentation 2018

Oct 15, 2018

TRIDENT/CS/2018 October 15, 2018

The Manager	The Manager
Listing Department	Listing Department
National Stock Exchange of India Limited	BSE Limited
Exchange Plaza, Plot No. C/1, G Block	PhirozeJeejeebhoy Towers
BandraKurla Complex, Bandra (E)	Dalal Street
Mumbai – 400 051	Mumbai – 400 001
Scrip Code:- TRIDENT	Scrip Code:- 521064

Dear Sir/ Madam

Sub: Investors' Presentation

In terms of Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find attached herewith copy of Investors' Presentation being given to analysts and institutional investors, for your placing the same on website of the exchange for the information of shareholders. The same is also available on the website of the Company i.e. www.tridentindia.com.

Thanking you,

Yours sincerely,

For Trident Limited

(Ramandeep Kaur) Company Secretary ICSI Membership No.: F9160

Encl: As above

Trident Limited

Corporate Presentation - October 2018

Safe Harbour

This presentation has been prepared by Trident Limited (the "Company") for general information purposes only, without regard to any specific objectives, suitability, financial situations and needs of any particular person and does not constitute any recommendation or form part of any offer or invitation, directly or indirectly, in any manner, or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment therefor. This presentation does not solicit any action based on the material contained herein. Nothing in this presentation is intended by the Company to be construed as legal, accounting or tax advice.

This presentation has been prepared by the Company based upon information available in the public domain. This presentation has not been approved and will not or may not be reviewed or approved by any statutory or regulatory authority in India or by any Stock Exchange in India. This presentation may include statements which may constitute forward-looking statements. The actual results could differ materially from those projected in any such forward-looking statements because of various factors. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise.

This presentation contains certain forward-looking statements relating to the business, financial performance, strategy and results of the Company and/ or the industry in which it operates. Forward-looking statements are statements concerning future circumstances and results, and any other statements that are not historical facts, sometimes identified by the words including, without limitation "believes", "expects", "predicts", "intends", "projects", "plans", "estimates", "aims", "foresees", "anticipates", "targets", and similar expressions. The forward-looking statements, including those cited from third party sources, contained in this presentation are based on numerous assumptions and are uncertain and subject to risks. A multitude of factors including, but not limited to, changes in demand, competition and technology, can cause actual events, performance or results to differ significantly from any anticipated development. Neither the Company nor its affiliates or advisors or representatives nor any of its or their parent or subsidiary undertakings or any such person's officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does either accept any responsibility for the future accuracy of the forward-looking statements contained in this presentation or the actual occurrence of the forecasted developments. Forward-looking statements speak only as of the date of this presentation and are not guarantees of future performance. As a result, the Company expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation as a result of any change in expectations or any change in events, conditions, assumptions or circumstances on which these forward looking statements are based. Given these uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements.

The information contained in these materials has not been independently verified. None of the Company, its directors, promoter or affiliates, nor any of its or their respective employees, advisers or representatives or any other person accepts any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation, and makes no representation or warranty, express or implied, for the contents of this presentation including its accuracy, fairness, completeness or verification or for any other statement made or purported to be made by any of them, or on behalf of them, and nothing in this presentation or at this presentation shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Past performance is not a guide for future performance. The information contained in this presentation is current, and if not stated otherwise, made as of the date of this presentation. The Company undertakes no obligation to update or revise any information in this presentation as a result of new information, future events or otherwise. Any person/ party intending to provide finance/ invest in the shares/ businesses of the Company shall do so after seeking their own professional advice and after carrying out their own due diligence procedure to ensure that they are making an informed decision.

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Overview

Textiles Paper

Largest Player in terms of Terry Towel Capacity & One of the largest players in Home Textile Space in India

Highest Operating Margin among Key Listed Players in India

Revenue Split between segments

One of the Leading Business Groups with interest in Textiles and Paper

Snapshot

Key Market Statistics	15-Oct-2018
BSE Ticker	521064
NSE Ticker	Trident
Bloomberg Code	TRID:IN
Reuters	TRIE.NS
MarketPrice(Rs)	69.10
Market Cap (INR Crore/ USD Mn)	3521/476
Number of Outstanding Shares (Crore)	50.96
Face Value	Rs. 10 per share
52-week High / Low (Rs.)	105.45/51.15

Shareholding Pattern – 30th Sep, 2018

Category	June 2018	Sep 2018
Promoters	67.78%	68.45%
Institutions	3.40%	3.43%
Public	28.81%	28.12%

Global Presence Corporate Office : Ludhiana, Punjab Manufacturing Facilities at: Sanghera & Dhaula, Punjab Budni, Madhya Pradesh Marketing Offices (India): Mumbai, Gurgaon Kolkata, Bengaluru Marketing Offices (Intl.): New York, United States Cheshire, United Kingdom

Evolution

Key Highlights - P&L

Q2FY19
NET REVENUE (INR CR)	PBT (INR)
1391+24%	153+104%
Q2FY18: 1120	Q2FY18: 75
EBIDTA (INR CR)	PAT (INR CR)
271+30%	109+114%
Q2FY18: 209	Q2FY18: 51
EBIT (INR CR)	EPS (INR)
179+68%	2.14+84%
Q2FY18: 107	Q2FY18: 1.00

• Home Textile: Bed Linen sales grew by 44% and Bath Linen sales grew by 30% Year on Year in Q2 FY 19 as compared to same period last year;
• Branding, Distribution and expanding team closer to market in US has helped us in improving the volumes and will support us in sustaining the growth in the forthcoming quarters also.
• Adj. EBITDA improved by 82.7% Y-o-Y to INR 316.9 crores in Q2 FY19 compared to INR 173.4 crores in Q2 FY18. Adj. EBITDA Margin stood at22.8% in Q2 FY19& 21.9% in H1 FY 19.
• Net Cash flow from Operating activities INR 761.8 croresin H1 FY 19
• Finance Costs stood at INR 26 crores in Q2 FY 19, declined by 18.4% Y-o-Y compared to same period last year.

Key Highlights - B/S

as on Sep 30, 2018 2000 -621Cr FY18: 2621 NET DEBT (INR CR) NET DEBT/EQUITY 0.7 FY18 : 0.9 REPAYMENT (INR CR) FY18: 545 1539 -160Cr FY18 : 1689 LT DEBT (INR CR) NET DEBT/EBIDTA 1.8 FY18 : 3.1 370 (H1FY19) FY18 : 711 CASH PROFIT (INR CR) 188 (H1FY19)

• Finance costs for H1FY19 came down by 17% Y-o-Y
• Reduction in Long Term Debt of INR 160 Crore in H1FY19; Net Debt reduced by INR 621 Crore
• Cash Profit of INR 370 Crore during H1FY19

P&L Statement (S)

Particulars	Q2 FY19	Q2 FY18	Shift	Q1 FY19	Shift	H1 FY19	H1 FY18
Net Revenue	1391.5	1120.5	24.2%	1131.2	23.0%	2522.7	2286.3
Gross Profit	743.4	538.4	38.1%	616.3	20.6%	1359.7	1152.0
Gross Profit %	53.4%	48.0%	+540 bps	54.5%	-110 bps	53.9%	50.4%
Adj. EBITDA	316.9	173.4	82.7%	237.1	33.7%	553.2	403.1
Adj. EBITDA %	22.8%	15.5%	+730 bps	21.0%	+180 bps	21.9%	17.6%
Other Income*	-46.0	35.7	-	-33.1	-	-78.4	65.5
EBITDA	270.9	209.1	29.5%	204.0	32.8%	474.9	468.5
EBITDA %	19.5%	18.7%	+80 bps	18.0%	+150 bps	18.8%	20.5%
Depreciation	91.7	102.2	(10.3%)	94.4	(2.8%)	186.1	204.5
EBIT	179.2	106.9	67.6%	109.6	63.5%	288.8	264.0
Finance Cost	26.0	31.9	(18.4%)	28.0	(7.1%)	54.0	65.2
Profit Before Tax	153.2	75.1	104.1%	81.6	87.7%	234.8	198.8
Profit After Tax	109.1	50.9	114.4%	59.2	84.3%	168.4	139.8
EPS (INR)	2.14	1.0	1.14	1.16	0.98	3.3	2.74
Cash Profit#	211.5	161.1	31.12%	158.2	33.7%	369.6	360.9

Net Revenue = Revenue from Operations - Excise duty on sale of goods *Other Income includes Forex Gain/Loss (Including MTM) #Cash Profit = PBDT – Current Tax

Balance Sheet (S)

Particulars (INR crore)	As onSep 30, 2018	As onMar 31, 2018	Particulars (INR crore)	As onSep 30, 2018	As onMar 31, 2018
	Source of Funds			Application of Funds
Equity	3028.6	2908.7	NonCurrent Assets	4342.9	4468.4
			Property, Plant & Equipment	3968.1	4019.5
Equity Share Capital	509.6	509.6	Capital Work-in-Progress	92.3	176.1
Other Equity	2519.0	2399.1	IntangibleAssets	46.3	49.8
Non-Current Liabilities	1516.8	1692.7	IntangibleAssets under devp.	0.6	0.5
Borrowings	1224.1	1410.8	Financial Assets	120.6	112.4
			Other Non Current Assets	114.9	110.0
Deferred Tax Liabilities	229.4	213.2	Current Assets	1967.2	1828.7
Other Non Current Liabilities	63.2	68.7	Inventories	544.4	906.5
Current Liabilities	1764.7	1695.7	FinancialAssets
			-Investments	203.6	10.9
FinancialLiabilities	1690.9	1645.9	-Trade Receivables	681.9	477.8
			-Cash & Cash Equivalents	11.3	47.4
Provisions	18.8	13.9	-Other Bank Balances	312.2	118.5
			-Other Financial Assets	116.7	166.9
Other Current Liabilities	54.9	36.0	Other CurrentAssets	97.1	100.7
TOTAL	6310.1	6297.1	TOTAL	6310.1	6297.1

Management Comment

Commenting on the performance, Mr. Rajinder Gupta, Chairman at Trident Group said:

"We are pleased with the financial and operational performance by achieving highest ever revenue and profitability in a quarter. We remain optimistic to achieve the guidance on revenue growth keeping our margins resilient in the coming quarters. Trident will further consolidate the business by leveraging the existing customers and adding new customers to its portfolio"

Global Home Textile Industry

Home Textile represents nearly 1/3rd of the global textiles & apparel industry. It is expected to touch $ 131 billion dollars by 2020 at a growth of more than 3.5%.

• Bed Linen & Bed Spread is the largest application segment of the home textiles representing 44.2% in 2015. This segment is expected to grow at a highest CAGR of 4.4 % to reach $60 billion by 2020.

• Bed and Bath linen together constitutes around 65% of the total market of Home Textile and expected to reach $87 billion by 2020 with growth of more than 4.1 %.

Source : Fibre2Fashion

Significant Growth Opportunities available Globally – For Indian Home Textile Manufacturers

Home Textile Industry – Global Demand

United States

US Home textiles industry is amongst the largest home textiles industry in the world. It accounted for nearly 21.1 % of the global market share in the year 2015.

US home textiles market is estimated to be around $23 billion in 2015 and is expected to grow at CAGR of 3.0% to reach $27 billion by 2020.

Europe

Europe is the 2nd largest home textiles market after Asia Pacific representing 26.8% of the market share worth $29 billion in the year 2015.

Bed linen accounted for 32% of the market share. Europe Bed and Bath Linen segment is expected to grow at CAGR of 1.7% to reach $17 billion by 2020.

Asia Pacific China

Asia pacific being home to approximately 60.0% of the global populations and dominant production of home textiles product region is also leader in the consumption of home textiles products.

The region accounted for roughly 44% of the market share in 2015 worth $48 billion.

China is the largest manufacturer and consumer of the home textiles market. It accounted for nearly 27% of the global market share in 2015 worth $30 billion.

Demand for home textiles products in the Chinese market is primarily driven by increasing middle class spending on these products in the nation.

Source : Fibre2Fashion

Indian Home Textile Industry

Home Textile – Demand in India

• India represents 3rd largest market share in Asia Pacific home textiles market in the region.
• Home textiles spending in the nation is estimated to be around $4 billion in 2015 and is expected to grow fastest in the world at a CAGR of 7.2% between 2015 and 2020 to reach $5.6 billion by 2020.
• Favorable demographics, increasing disposable income, rapid urbanization and housing boom are assumed to drive the demand for the home textiles products in the Indian textiles market place in the near future.

Home Textile – Indian Export to US

Market share for US imports of cotton sheets (Yearly)

	2005 -13	2014	2015	2016	2017	YTD2018*
India	31%	47%	48%	49%	50%	49%
China	28%	23%	23%	22%	20%	21%
Pakistan	23%	17%	17%	16%	16%	17%
ROW	18%	13%	12%	13%	14%	12%

Market share for US imports of terry towels (Yearly)
	2005 -13	2014	2015	2016	2017	YTD2018*
India	31%	37%	38%	40%	39%	39%
China	23%	26%	25%	23%	24%	25%
Pakistan	21%	22%	22%	22%	21%	20%
ROW	25%	15%	15%	15%	16%	17%

Significant Growth Opportunities – For Organised Indian Textile Manufacturers

*Jan – Aug 2018

Source: Otexa, Fibre2Fashion, Company Estimates

Textile - Financials

Capacity Utilization

41%

Paper Business

Differentiated Product/ Brand to target distinct end consumers as per their requirements

Paper - Financials

Capacity Utilization (Tonnage Basis)

Copier v/s Non-Copier

Advantage India

Competitive Cost of Production Competitive Labour, Power and Raw Material Cost; Access to advanced technology under Textile Upgradation Fund

Textiles: A Dominant Industry Employs 45 million people across the value chain; Strong Government support to industry

Favourable Government Policies Focus on 'Make In India' and Export Enhancement

INDIA Geography of Choice for Home Textiles

Cotton Quality & Availability

Largest producer of cotton and still growing; Surplus available for export

Qualified & Skilled Manpower

Large, young and talented workforce at a competitive though increasing cost

Global Friendly Environment Stable democracy; comfort with global languages; Evolving practices in line with MNCs

Why Trident

Infrastructure	Clientele	De-risking	Design	Marketing
Largest Capacity &World ClassTechnology	Client Relationship	RiskManagement	Strong ProductDesign	MarketIntelligence
Integrated business	Longstanding	Sufficient portion of	Focus on increasing	Design studios and
model with largemanufacturingcapacities resultingin operating andcost efficiencies.Each facility is fitted	relationships withlarge and diversifiedcustomer baselocated in India andacross manyinternational	forexexposure ishedged to mitigateany adverse currencymovementMore than twodecades relationshipswith vendors toensure availability ofquality cotton.	the functionality ofour bed and bathproducts throughinnovativemanufacturingprocesses	showrooms in theUnited States andthe United Kingdomto showcase ourproducts and engageclosely with
with latestequipment andstate-of-the-arttechnology	markets	Widespread presenceacross severalgeographies, diversify risks and reducesoverall dependency		customerprocurement teamsfor real time marketupdates

Integrated Home Textile Manufacturer

Fully Integrated Processes provide control over the Production Value Chain

Strategy

Our Mission is to Emerge as a Trusted Partner to the Top Global Retailers & Fashion Houses

Focus on Innovation and Value Added Products

Continuous Research on Fashion & High Value Products to Improve Contribution

Way Forward

We will keep focusing on increasing capacity utilization with better Product Mix, thereby benefit from operating leverage

Keep increasing Yarn's captive utilization, which will reduce price volatility risk and improve margins

Focus on improving Cashflow generation and follow prudent Capital Allocation

Keep Reducing Debt out of Regular Cash Flows

Focus on profitable growth to create long term sustainable value for all stake holders

CSR Initiatives

Health

Free medical consultation, tests & medicines; Free eye surgeries; Mobile dispensary for free primary health care

Education & Welfare

Saakshar - Adult education; IL&FS partnership; Students received free note books across schools; Flour sacks, pre owned belongings distributed across villages

Supporting sole earning women; 50+ women in leadership; Providing Training to 200+ women making marketable crafts products

Water & Energy Conservation

PHD Chamber Award for Outstanding Contribution to Social Welfare for 2016

Energy Conservation Award 2015-2016 received from IPMA & Ministry of Power

National Award for Excellence in Energy Management from CII

Excellence in Water Management 2016 from CII

Awards & Accolades

	Accredited withNorthern Region'Egyptian Gold Seal''Export Excellencefor Yarn, Terry TowelAward'in 'Star Trading& Bed LinenHouse-Non-MSME''Gold Trophy' 2ndSetProducts from'Silver Trophy' 1stSet'Cotton Egypt Asso.'		IWAY WellDevelopedSupplierfor IKEA	Certification2017	JC PenneyPlatinumStatus for	Excellence inOperationsin QualityAwardforFY17 fromIKEA	Certified for the covetedSustainable TextileProduction (STeP), permittingto use the OEKO-TEX®"MADE IN GREEN" label forHome Textile products
18	TEXPROCIL Export Performance Awards					CII –Confederation of Indian Industry
1	'Supplier Achievement in Excitement 2016'				2	National Energy Conservation Awards
1	Award from Sam's Club USA'Best Quality Award 2016' from SEARS HOLDING			1	IPMA -Energy Conservation Award
4	Wal-Mart Supplier of the Year awards			1	Niryat Shree –FIEO Awards
4	JCPenney -Best Supplier, Innovation, Quality Awards				1	ASSOCHAM Leadership Award (CEO), 2016
2		IKEA Quality and Sustainability Awards			4	Punjab Safety Awards
1	PHD Chamber-Outstanding Contribution to Social Welfare				1	D&B –ECGC: Exporter's Excellence Awards
1	PHD Chamber for women empowerment -AstitvaSamman				4	Corporate Governance & CSR Awards
1	Best Performer Energy Saving by Bureau of Energy				1	SEEMNationalEnergyManagementAward2016
1	Efficiency, Govt.ofExcellence	IndiaConfederation of Indian Textile Industry (CITI) Award for			4	PMIIndiaProject	oftheYear'Large'Category

Financial Performance

Financial Performance

Key Ratios

	Particulars (INR crore)	FY18		FY17	FY16
Return on Capital Employed*		10.3%		12.2%	8.1%
	Return on Equity*			17.0%	13.9%
Interest Coverage		7.7		7.0	5.7
	Net Debt to Equity	0.9		1.0	1.4
Net Debt / EBITDA		2.9		2.7	4.1
	*Excludes fair valuation of land as per IND –AS ; Figures are annualized
CreditRating:	CARE AA-(LT Bank Facilities)CARE A1+ (ST Bank Facilities)	CPRating:	A1+(India Ratings)	BusinessRating:	'5A1'(Minimal Risk & HighD&BCredit Worthiness) by

Balance Sheet (S)

Particulars (INR crore)	As onMar 31, 2018	As onMar31, 2017	Particulars (INR crore)	As onMar 31, 2018	As onMar31, 2017
	Source of Funds			Application of Funds
Equity	2908.7	2756.8	NonCurrent Assets	4468.4	4676.9
			Property, Plant & Equipment	4019.5	4308.0
Equity Share Capital	509.6	497.8	Capital Work-in-Progress	176.1	109.8
Other Equity	2399.1	2258.9	IntangibleAssets	49.8	36.7
Non-Current Liabilities	1692.7	1990.5	IntangibleAssets under devp.	0.5	13.4
Borrowings	1410.8	1744.2	Financial Assets	112.4	137.0
			Other Non Current Assets	110.0	71.9
Deferred Tax Liabilities	213.2	165.5	Current Assets	1828.7	1507.1
Other Non Current Liabilities	68.7	80.7	Inventories	906.5	774.7
Current Liabilities	1695.7	1436.7	FinancialAssets
			-Investments	10.9	4.9
FinancialLiabilities	1645.9	1376.1	-Trade Receivables	477.8	375.1
			-Cash & Cash Equivalents	47.4	27.8
Provisions	13.9	20.7	-Other Bank Balances	118.5	104.8
			-Other Financial Assets	166.9	146.1
Other Current Liabilities	36.0	39.9	Other CurrentAssets	100.7	73.6
TOTAL	6297.1	6184.0	TOTAL	6297.1	6184.0

For more information about us, please visit www.tridentindia.com

Pawan Jain / Vipul Garg Investor Relations, Trident Ltd. Tel: +91 161 5039 999 Fax: +91 161 5039 900 Email: pawanjain@tridentindia.com, vipulgarg@tridentindia.com