Relaxo Footwears Limited · NSE:RELAXO
Relaxo Footwears — Q1 FY19 Earnings Presentation
31 slides from Relaxo Footwears's earnings presentation, September 2018
Slide 1: Relaxo Footwears Limited Investor Presentation – September, 2018
RELAXO FOOTWEARS LIMITED Investor Presentation – September, 2018 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Relaxo Footwears Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Our Strengths
Our Strengths Investor Presentation
Slide 4: Market Leaders Sold 15.7 crore Pairs in FY18
Market Leaders Products available for Every Age Group & Every Price Point Sold 15.7 crore Pairs in FY18 + 6,000 SKU’s Product Market Share of ~ 5-6% Value for Money Products Price catering to entire family Manufacturing Quality ~9 State of Art Every stage of manufacturing Manufacturing Plants with p
Slide 5: Customer Relevant Products
Customer Relevant Products Market Regular Market Sensing Exercises to understand the Consumer Research Needs across different Regional, Economic and Demographic strata Product In-house design capability enables continuous Product Innovation around functionality. Launched innovative portal for employ
Slide 6: Value for Money "VFM"
Value for Money Fashionable Comfortable Affordable “VFM” 6 Investor Presentation
Slide 7: Committed to Quality
Committed to Quality Monitor every stage of manufacturing process • Designing Quality • Raw Materials • Production Process Control • Packaging • Final Products Quality Par Excellence • ISO 9001:2015 • ISO 14001:2015 Products are subject to: • ISO 18001:2007 Product • Random Testing Certifications •
Slide 8: Brand Spectrum
Brand Spectrum 8 Investor Presentation
Slide 9: Brand for all Categories
Brand for all Categories Brand Overview Target Consumer Brand Ambassador Salman Khan Most Popular Brand of Rubber / Eva slippers All strata of the Society Akshay Kumar Fashionable and Light weight footwear Fashion conscious consumers A range of sports and canvas shoes, sandals Upwardly mobile and sl
Slide 10: Pan India Footprint
Pan India Footprint Relaxo Retail Stores Jammu & Kashmir State Number of Stores Uttar Pradesh 81 Haryana Delhi Delhi 56 Punjab Himachal Pradesh Punjab 40 Uttarakhand Haryana 31 Rajasthan Uttar Pradesh Himachal Pradesh 7 Rajasthan 22 Gujarat 12 Madhya Pradesh 22 Bihar Jammu & Kashmir 10 Gujarat West
Slide 11: 311 Retail Stores across India Reach over ~50,000+ Retailers
Closer to Customers 311 Retail Stores across India Reach over ~ 50,000 + Retailers 1 overseas office Online Presence – www.shopatrelaxo.com Online Shopping Websites 11 Investor Presentation
Slide 12: State-of-Art manufacturing facilities
State-of-Art manufacturing facilities RFL I & II- Bahadurgarh RFL III - Bhiwadi RFL IV - Bahadurgarh RFL V - Haridwar RFL VI - Bahadurgarh RFL VII - Bahadurgarh RFL VIII - Bahadurgarh RFL IX - Bhiwadi 12 Investor Presentation
Slide 13: Awards and Recognitions
@ EY Entrepreneur UW of The Year Mr. Ramesh Kumar Dua Finalist amongst India's Best CEO-2017 by EY (business) Mr. Ramesh Kumar Dua awarded as India's Best CEO (Consumer Goods) : Business Today - 2017 (Ousiness) Mr. Ramesh Kumar Dua awarded as India's Best CEO (Consumer Goods) : Business Today - 2016
Slide 14: Awards and Credit Ratings Recognition
Year 2017 dun&bradstreet . Safety Rating Forbés * ICRA AA- Long Term Rating Relaxo India's Top 500 Company India's Top 50 Company [Total Income] ICRA © ICRA A+ Short Term Rating Forbes Dun & Bradstreet 2017 & for Commercial Paper Year 2016 aay z wa INDIA’ MOST = VALUABLE COMPANIES India's Most The N
Slide 15: Background & Objectives
Background & Objectives Investor Presentation
Slide 16: Evolution
Evolution 1976 : Launched Relaxo Brand 1984 : Relaxo Footwears Limited was incorporated 1995: IPO to set up a plant in Haryana 1995: Started manufacturing Footwear (rubber slippers) for the masses 2000: Expanded capacity in Haryana 196,444* 2004-05: Launched ‘Flite’ and ‘Sparx’ Brands 2005: 1st COCO
Slide 17: Board of Directors
Board of Directors Ramesh Kumar Dua, Managing Director Mukand Lal Dua, Whole Time Director Over 42 years of experience in sales and marketing, production and new Over 45 years of experience in new product development and quality control product development in Footwear Industry in Footwear Indust
Slide 18: Management Team
Management Team Mr. Gaurav Dua, Mr. Ritesh Dua, Mr. Nitin Dua, Mr. Atul Pandey, Executive VP - Marketing Executive VP - Finance Executive VP - Retail VP – Human Resources MBA having over 17 years MBA having over 18 years of MBA having over 14 years of PGD – PM & IR having over of experience in Sales
Slide 19: Corporate Objectives
Corporate Objectives To Explore National and Maximize Wealth for International Markets Shareholders Product Innovation through Meet and Exceed Customer Design and Development Expectations 100% Statutory and Legal Compliance to ISO 9001:2008 Compliance and ISO 14001:2004 Optimum Utilization of Develo
Slide 20: Growth Potential
Growth Potential Investor Presentation
Slide 21: Huge Industry Potential
Huge Industry Potential Change in Consumer Habits 1 Footwear industry is turning from being a basic need to Fashion, Comfort & Performance oriented industry Increase in Discretionary Spend 2 Discretionary spend of Indian households is expected to increase in the next 4-5 years with urban masses emer
Slide 22: Supply Chain
Future Ready Manufacturing Excellence Technology & Innovation Supply Chain Lean Manufacturing SAP Compliant & Microsoft Dynamics Forward looking supply & capacity Maynard Operation Sequence Navision planning Technique (MOST) Product Development & Design Innovation Optimum Inventory manag
Slide 23: Financial Performance
Financial Performance Investor Presentation
Slide 24: Q1 FY19: Performance Highlights
Q1 FY19 : Performance Highlights Rs. in Crores Revenue EBITDA PAT 15% 17% 23% 566 83 46 490 71 37 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 EBITDA (%) PAT (%) +10 bps +50 bps 14.5% 14.6% 7.6% 8.1% Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 24 Investor Presentation
Slide 25: Annual Performance Highlights
Annual Performance Highlights Rs. in Crores Revenue EBITDA +14.2% 1,964 +22.4% 302 1,712 1,652 240 231 1,480 200 1,212 1,010 147 110 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 EBIT PAT +24.3% 252 +29.1% 161 196 193 120 120 161 103 118 66 85 45 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14
Slide 26: Operational Efficiencies
Operational Efficiencies EBITDA (%) PAT (%) + 450 bps +380 bps 15.4% 8.2% 13.5% 14.0% 14.0% 7.2% 7.0% 7.0% 12.1% 10.9% 5.4% 4.4% FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 RoCE (%) RoE (%) 28.6% 28.4% 28.0% 28.0% 25.1% 23.7% 20.9% 21.2% 19.8% 26.2% 25.2% 22.9% FY13 FY14 FY15 FY16 FY
Slide 27: Debt Ratings & Profile
Debt Ratings & Profile Net Debt/Equity (x) Interest Coverage Ratio (x) 1.0 29.4 0.7 0.6 0.5 12.8 8.7 8.6 0.2 4.8 5.2 0.2 FY13 FY14 FY15 FY16 FY17 FY18 FY13 FY14 FY15 FY16 FY17 FY18 Credit Ratings Agency Instruments Ratings Comments Indicates very strong degree of safety for short term debt instrumen
Slide 28: P&L Statement – Q1 FY19
P&L Statement – Q1 FY19 Particulars (Rs. Crs) Q1 FY19 Q1 FY18 Y-o-Y FY18 Revenue from Operations 566* 490 15% 1,964* Total Raw Material 261 221 883 Employee Expenses 65 48 214 Excise Duty - 8 8 Other Expenses 158 143 558 EBITDA 83 71 17% 302 EBITDA % 14.6% 14.5% 15.4% Other Income 2 1 4 Depreciation
Slide 29: Balance Sheet
Balance Sheet Particulars (Rs. Crs.) March – 18 March-17 Particulars (Rs. Crs.) March – 18 March-17 Equity Share Capital 12 12 Property, Plant and Equipment 470 480 Capital Work-in-Progress 136 62 Other Equity 749 594 Intangible Assets 55 61 Equity 761 606 Intangible Assets under Development 1 1 Fin
Slide 30: Consistent Dividend Paying
Consistent Dividend Paying 20.0 160% 18.0 18.0 150% 140% 16.0 120% 14.0 100% 12.0 100% 12.0 10.0 60% 80% Dividend 50% Dividend paid 8.0 7.2 Rs. Crs. 50% 60% as a % of Face 6.0 Value 6.0 40% 30% 40% 4.0 3.0 2.4 1.8 20% 2.0 0.0 0% FY12 FY13 FY14 FY15* FY16 FY17 FY18 The Board has recommended Final div
Slide 31: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Relaxo Footwears Limited Strategic Growth Advisors Pvt. Ltd. CIN: L74899DL1984PLC019097 CIN: U74140MH2010PTC204285 Mr. Vikas Tak Ms. Payal Dave / Mr. Deven Dhruva vikastak@relaxofootwear.com payal.dave@sgapl.net /deven.