Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q2 FY2018 Earnings Presentation
32 slides from Vaibhav Global's earnings presentation, October 2017
Slide 1: Vaibhav Global Limited
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q2 FY2018 October 2017
Slide 2: Safe Harbor
Safe Harbor Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 3: Vaibhav Global – An Overview
Vaibhav Global – An Overview Vertically-integrated fashion retailer on electronic retail platforms • End-to-end B2C business model for fashion and lifestyle accessories • Proprietary TV home-shopping and e-commerce platforms Shop LC and TJC are brands with strong customer visibility • 113 million (F
Slide 4: Vaibhav Global – Reach
Vaibhav Global – Reach The Jewellery Channel, UK TV channel retail Shop LC, USA E-commerce website TV channel retail E-commerce website STS China, Hong Kong Sourcing Gemstones STS Thailand STS USA Sourcing Gemstones B2B Wholesale distribution STS Bali Sourcing Gemstones VGL India G
Slide 5: Table of Contents
Table of Contents Q2 FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation October 2017 5
Slide 6: Key Highlights for Q2 FY18
Key Highlights for Q2 FY18 Home TV Network Reach in 113 Mn Households across US and UK • 113 million households on full time equivalent (FTE*) basis • 88 million households in the US • 25 million households in the UK Q2 FY18 Retail Volumes at 2 Million Units, up 5% YoY and overall ASP* at $24.3, up
Slide 7: Chairman’s Message
Chairman’s Message Commenting on Q2 FY18 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “We maintained a positive growth trend in Q2. Whereas INR denominated revenues increased by 2% Y-o-Y, our retail segment revenues expanded by 11%, driven by both volume growt
Slide 8: Financials –Q2 & H1 FY18 Performance (Revenue Breakdown)
Financials –Q2 & H1 FY18 Performance (Revenue Breakdown) Net Revenue Revenue (Rs. Crores) Local currency Q2 16-17 Q2 17-18 % change 658 681 LC - USD Mn 32.25 37.08 15.0% UK - GBP Mn 8.38 9.99 19.2% Local currency H1 16-17 H1 17-18 % change 352 345 LC - USD Mn 63.83 71.89 12.6% UK - GBP Mn 15.82 18.5
Slide 9: Retail Performance Trends - Q2 & H1 FY18
Retail Performance Trends - Q2 & H1 FY18 (Volume and ASP) TV Sales Sales Volume (‘000s) Average Selling Price US$ 2,679 26.4 26.1 2,675 1,415 25.4 1,484 23.7 Q2 FY17 Q2 FY18 H1 FY17 H1 FY18 Q2 FY17 Q2 FY18 H1 FY17 H1 FY18 Web Sales Sales Volume (‘000s) Average Selling Price US$ 1,297 20.4 19.4 643 1
Slide 10: Financials – Q2 & H1 FY18 Performance (Margins)
Financials – Q2 & H1 FY18 Performance (Margins) Rs. crore Gross Margin Gross Margin% 450.00 433 69% 400.00 404 67% 350.00 63.5% 300.00 65% 63.0% 250.00 63% 61.5% 200.00 61% 150.00 59.0% 222 59% 100.00 204 50.00 57% - 55% Q2 FY17 Q2 FY18 H1 FY17 H1 FY18 Note: Direct costs for calculation of gross pro
Slide 11: Financials – Q2 & H1 FY18 Performance (Profits)
Financials – Q2 & H1 FY18 Performance (Profits) PAT (Including Exchange) PAT % 40 8.0% 35 35 30 5.7% 6.0% 5.1% 25 20 3.0% 4.0% 20 15 2.5% 10 9 2.0% 5 20 - 0.0% Q2 FY17 Q2 FY18 H1 FY17 H1 FY18 * Profit after tax including exchange gain(loss) fluctuation EPS Rs. per share 11.5 6.5 5.2 2.2 Q2FY17 Q2FY1
Slide 12: Table of Contents
Table of Contents Q2 FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation October 2017 12
Slide 13: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,376 1,277 1,440 1,298 658 681 FY14 FY15 FY16 FY17 H1 H2 FY17 FY18 Jewelry & Lifestyle Products TV Sales Rs. crore Web Sales Rs. crore B2B Sales Rs. crore 911 958 932 1,000 256 225 223 250 190 162 161 453 454 122 162 118 87 65 FY14 FY15
Slide 14: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes (‘000s) Average selling price US$ 6,829 6,420 26.4 5,854 6,092 25.4 24.4 24.5 23.5 2,675 2,679 23.0 FY14 FY15 FY16 FY17 H1 H1 FY14 FY15 FY16 FY17 H1 H1 FY17 FY18 FY17 FY18 Web Sales Sales Volumes (‘000s) Average selling price US$ 2,960 19.4 17.4 17.4
Slide 15: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 1000 63.5% 64% 900 63% 800 63% 700 62% 600 61% 61% 61% 500 60% 61% 400 300 60% 200 59% 100 789 838 804 867 404 433 0 58% FY14 FY15 FY16 FY17 H1 FY17H1 FY18 Note: Direct costs for calculation of gross profit includes material
Slide 16: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 160 12% 12% 140 10% 120 8% 8% 100 80 5.1% 6% 60 4% 3% 3% 4% 40 20 20 2% 153 103 40 58 35 0 0% FY14 FY15 FY16 FY17 H1 FY17 H1 FY18 * Profit after tax including exchange gain(loss) fluctuation. Rs. per share EPS 47.6 32.0 17.8 12
Slide 17: Financial Performance Trends (Balance Sheet)
Financial Performance Trends (Balance Sheet) Shareholders’ Equity Fixed assets including intangibles 129 126 471 121 435 378 328 77 233 66 FY14 FY15 FY16 FY17 H1'18 FY14 FY15 FY16 FY17 H1'18 Net Debt Net Current Assets 365 52 315 304 55 217 230 15 6 FY14 FY15 FY16 FY17 H1'18 -20 FY14 FY15 FY16 FY17
Slide 18: Financial Performance Trends (Cash Flow)
Financial Performance Trends (Cash Flow) Operating Cash flow Free Cash Flow 152 169 129 106 88 66 52 58 -10 -3 -59 -12 FY13 FY14 FY15 FY16 FY17 H1 FY18 FY13 FY14 FY15 FY16 FY17 H1 FY18 Operating Cash Flow: PBT+ Depreciation-Changes in Free Cash Flow: Operating Cash Flow – Capital working capital + a
Slide 19: Table of Contents
Table of Contents Q2 FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation October 2017 19
Slide 20: Product Profile
Product Profile FASHION JEWELLERY • Bracelets • Bangles • Earrings • Studded jewelry, etc. FASHION ACCESSORIES • Watches • Handbags • Scarves, etc. LIFESTYLE PRODUCTS • Home Décor • Bed linens • Pillow Covers • Beauty products Investor Presentation October 2017 20
Slide 21: Branding Initiative: Developing new brands and brand ambassadors
BRANDING INITIATIVE: Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation October 2017 21
Slide 22: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding India In-House designers & craftsmen Noida, Jaipur, Nagaland, No middlemen Kashmir Access to latest manufacturing Indonesia technology Bali, Yogyakarta, Sumatra, Madura Surabaya Scale Flexibility Thailand Low Invest
Slide 23: Manufacturing
Manufacturing Four ISO 9001:2008 facilities in Jaipur, with capacity of producing 7 million annually Commenced operations at new 100,000 sq. ft., fully-integrated, LEED certified ‘Gold Level’ building at SEZ, Jaipur Diamond manufacturing and sourcing unit of the company is also present in Mumb
Slide 24: TV Networks – USA (Consumption Markets)
TV Networks – USA (Consumption Markets) * Channel #274 * Channel #399 & 1399 * Channel #159 Channel #75 & * 226 * Shop LC, USA 88 million households shopping (FTE, out of 120 mn) Based out of Austin, Texas. Offer services in Canada through e-commerce www.ShopLC.com Over 500 people in sales & m
Slide 25: TV Networks – UK (Consumption Markets)
TV Networks – UK (Consumption Markets) Channel #49 Channel #815 Channel #650& Channel #757 #652 The Jewellery Channel (TJC), United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of Hampton, Middlesex Over 150 people in sales & marketing, customer service, logistics, TV pr
Slide 26: E-Commerce (Consumption Markets)
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.ShopLC.com USA Launched Mobile App for Shop LC Launched Budget Pay EMI option Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on
Slide 27: Early Adopters and Cord Cutters
EARLY ADOPTERS AND CORD CUTTERS HIGH DEFINITION AND IP BROADCAST • High Definition Broadcast • Charter Communication • AT&T • Adoption of new technology of Broadcasting • Reducing dependency on Infrastructure • Minimizing downtime as IP would broadcast it via internet EXPANSION INTO OVER THE AIR PRE
Slide 28: Management Team
Management Team Sunil Agrawal Puru Aggarwal Chairman and Managing Director Group CFO Established Vaibhav in 1980 as a first generation entrepreneur and has led the company’s transition 25 years of rich experience in business modeling, financial into a leading brand for fashion jewelry and lifest
Slide 29: Management Team
Management Team Jeff Allar Nitin Dugar Senior Vice President, Group HR Vice President , COO – Shop LC, USA Over 30 years of work experience at major international Over 12 years at VGL, rich experience in business companies including IBM, Unilever and the Stonyfield development, customer services
Slide 30: Management Team
Management Team Amit Agarwal Commercial Director – TJC, UK • MBA marketing with over 16 years of experience with different companies like BSL Ltd , Siddhartha Marble and VGL group in Sales and product merchandising in Jewellery and Textile category . • Managing product merchandising , planning for T
Slide 31: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Puru Aggarwal Vaibhav Global Limited +91-141-2770648 Puru.Aggarwal@vglgroup.com Ankit Sahay Vaibhav Global Limited +91-141-2770648 Ankit.Sahay@vglgroup.com Shiv Muttoo / Karl Kolah CDR India +91 22 6645 1207/1220 shi
Slide 32: Thank You
Thank You 32