Renaissance Global Limited · NSE:RGL
Renaissance Global — Investor Presentation (June 2020)
35 slides from Renaissance Global's investor presentation, Jun 29, 2020
Slide 1: Cover letter to stock exchanges
Ref. No.: RGL/S&L/2020/68 June 29, 2020 Bombay Stock Exchange Limited National Stock Exchange of India Ltd. Listing Department Exchange Plaza, Plot no. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai – 400 001 Mumbai - 400 051 Sub.: Investor Pr
Slide 2: Renaissance Global Limited Investor Presentation
RENAISSANCE GLOBAL LIMITED INVESTOR PRESENTATION
Slide 3: Discussion Summary
Discussion Summary 1 Company Overview 2 Business Strategy & Outlook 3 Annexure
Slide 4: Our Brands
Enchanted sattmark DIAMONDS FINERIEWELRY Difengp | R AS. VA | UE AST IDES Your jewellery story
Slide 5: Enchanted Disney Fine Jewelry and Irasva
SE SESE ak eae 4.4 peerrenrereresyrey in ee tl peerovereeyrys oh imac da an i Ea Enchanted : ‘Dienep FINE JEWELRY Excluswe styles available at IRASVA @Disney A Renaissance Global Alliance Also available at www.irasva.com To experience our collection, visit the flagship store: Kundamal House, 67 Hugh
Slide 6: Enchanted Disney Fine Jewelry
‘Enchanted Disney Fine Jewelry’ is the perfect marriage of romance of Disney and the lasting beauty of fine jewelry. The timelessly elegant designs subtly evoke the love, adventure, happiness and magic of the fairy tales loved by millions. 5
Slide 7: Hallmark Diamonds
Hallmark, founded in 1910 is a well known greeting card company. Its vision is to create a more emotionally connected world. Our Hallmark branded jewellery helps individuals celebrate the special moments in their lives. 6
Slide 8: Irasva brand launch
We have launched our brand ‘Irasva’ in the Indian market through a joint venture with Bennett, Coleman and Company Limited. Irasva’s gold and diamond jewellery is a confluence of two shared ideologies that the modern woman lives by, a love for self and a love for expression. 7
Slide 9: Disney Treasures Fine Jewelry
Disney Treasures Fine Jewelry invites you on a journey to celebrate the hidden values of your beloved Disney Classic films. From family, friendship, romance, adventure, and triumph, discover what you treasure most in life with Disney Treasures Fine Jewelry 8
Slide 10: Largest Supplier of Branded Jewellery To Leading Global Retailers
Largest Supplier of Branded Jewellery To Leading Global Retailers India’s Largest Exporter of Gem-Set Strong Design Capabilities Jewellery • GJPEC Award for “Largest Exporter of • ~95% of sales based on in-house designs Studded Metal Jewellery” for 8th time in 2018 • ~12,000 new designs developed in
Slide 11: State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce
State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce Manufacturing Facilities in Maharashtra & Gujarat • Robust manufacturing setup in 166,000 sq. ft. across 8 manufacturing facilities with 2,916 skilled employees • Global standard manufacturing technologies including Casting, CNC
Slide 12: Global Marketing Presence To Serve Key Jewellery Markets
Global Marketing Presence To Serve Key Jewellery Markets Western Europe Dubai USA Middle East India Key Markets Manufacturing Units
Slide 13: Preferred Partner to Marquee Global Retailers Across The World
Preferred Partner to Marquee Global Retailers Across The World 50+ Customers 10+ Year Relationships with Minimal Credit Risk Due Across USA, UK & Diversified Customer Base to Stable Clientele & Top 10 Customers Middle East Disciplined Credit Terms E-Commerce/ Television Specialty Jewellers Multi-Bra
Slide 14: Business Strategy & Outlook
RENAISSANCE GLOBAL LIMITED BUSINESS STRATEGY & OUTLOOK
Slide 15: Business Strategy & Outlook
Business Strategy & Outlook Increasing Sales Of • Grow branded jewellery sales through Disney and Hallmark licensing agreements, leading to increased customer Licensed Brands In wallet share and market penetration Existing Markets • Expand new established brands like Disney Treasures and Disney Jewe
Slide 16: Playbook of Strong Strategies
Playbook of Strong Strategies Increase the awareness of our Keep renewing and enhancing our Strengthen our competitive brands product offerings position in key markets We intend to increasingly invest in and RGL’s product development strategy is While we enjoy a strong reputation and evolve marketin
Slide 17: Organic & Inorganic Growth
Organic & Inorganic Growth Vogue DMCC • Renaissance Jewellery DMCC acquired Vogue DMCC in 2016. • Vogue DMCC specialises in manufacturing and wholesaling of plain gold jewellery in the Middle East. • Renaissance leveraged the Vogue DMCC distribution network to expand sales of Renaissance products in
Slide 18: Entry into Branded Jewellery Through Acquisition of Jay Gems
Entry into Branded Jewellery Through Acquisition of Jay Gems • Branded jewellery is the fastest growing segment of the jewellery business. • This growth is predicated due to De Beers reducing marketing spends on Generic diamond jewellery • Renaissance acquired Jay Gems INC in FY 2018-19. Jay Gems ha
Slide 19: Global Expansion of Branded Jewellery Products
Global Expansion of Branded Jewellery Products • To capitalise on the international appeal of the Disney brand, Renaissance has acquired exclusive licenses for the Middle East, China, India, South Africa, the Philippines, Malaysia and Singapore. • Due to the success of the ‘Enchanted Disney Fine Jew
Slide 20: Current Brand Portfolio and Benefits of the Branded Play
Current Brand Portfolio and Benefits of the Branded Play Benefits of Branded Jewellery Sales Licensing Agreement with Disney Licensing Agreement with Hallmark Superior product positioning and deeper customer relationships Increased competitiveness through design exclusivity Higher value addition and
Slide 21: The Two Brands: Reach & Opportunities
The Two Brands : Reach & Opportunities Enchanted Disney Fine Jewelry Hallmark Diamonds • Introduces one of the world’s best loved brands to the fine jewellery • Hallmark has a global presence in more than 100 countries market • Top 2% of Brands (2017 Equitrend/Harris Interactive) • Successful distri
Slide 22: Strategic investment in joint venture with Bennett, Coleman
• Verigold Jewellery DMCC will make a strategic investment of Rs. 200 Mn in a joint venture with Bennett, Coleman and Company Limited. • A joint venture to launch a retail jewellery brand in India • Renaissance Global upon conversion of the Debenture will own 51% of the joint venture • Bennett, Cole
Slide 23: Irasva jewellery brand
• Irasva's gold and diamond jewellery celebrates the modern woman’s love for self and love of expression • ‘Irasva’ is a combination of “ira” meaning enjoyment and “sva” meaning self in Hindi. • The Irasva brand invites women to indulge in self love. • Irasva jewellery inspires every woman to create
Slide 24: Geographical Diversification Through Entry Into New Markets
Geographical Diversification Through Entry Into New Markets Robust Sales Growth & Geographical Diversification Achieved Over FY16 to FY20 Driven by Entry in GCC Market 8% 12% 18% 21% 30% 17% 25,906 25,018 35% 30% 8% 25% 18,147 38% 13,193 14,734 62% 57% 57% 58% 41% FY16 FY17 FY18 FY19 FY20 FY16 FY17
Slide 25: Financial Strength Driving Business Growth (Consolidated)
Financial Strength Driving Business Growth (Consolidated) Leverage (Rs Mn) Working Capital Analysis 154 157 0.76 0.51 0.51 0.52 137 0.41 129 6,647 118 6,992 5,109 5,578 141 4,615 135 115 144 119 5,033 3,641 1,882 2,629 2,857 69 59 57 53 59 -54 -43 -21 FY16 FY17 FY18 FY19 FY20 -73 -65 FY16 FY17 FY18
Slide 26: Limited Exposure to Currency & Commodity Fluctuations
Limited Exposure to Currency & Commodity Fluctuations Business Offers Significant Natural Hedge Leading to Limited Exposure to Currency & Commodity Risk The Company’s functional Currency is USD since majority of the business transactions are undertaken in USD currency Healthy EBITDA Growth & Stable
Slide 27: Annexure
RENAISSANCE GLOBAL LIMITED ANNEXURE
Slide 28: Experienced Management Team
Experienced Management Team Niranjan Shah, Chairman • Associated with the company since inception • Over 4 decades of experience in the gems & jewellery industry • Responsible for the overall strategic planning and decision making Sumit Shah, Vice Chairman Hitesh Shah, Managing Director • 23 years o
Slide 29: Experienced Independent Directors: Strong Corporate Governance
Experienced Independent Directors: Strong Corporate Governance Veer Kumar Shah, Independent Director (ICAI, 1969; ) • Practicing Chartered Accountant with more than 4 decades of experience • Expert in Accounting, Auditing , Taxation, Company Law matters, Arbitration matters and management consultanc
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs Mn) FY20** FY19** FY18** FY17* FY16 Revenue From Operations 25,018.5 25,906.3 18,109.6 14,734.5 13,195.8 Other Income 83.1 22.7 373.9 179.7 41.9 Total Income 25,101.5 25,929.0 18,147.0 14,914.2 13,237.7 COGS 20,204.8 21,441.6 14,803.9 11,577.4
Slide 31: Financial Summary
Financial Summary In Rs Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 25,929 25,101 6.3% 5.9% 5.5% 6.8% 4.8% 3.6% 3.4% 3.5% 3.7% 1,708 3.0% 18,147 1,249 14,914 783 922 13,238 1,006 828 883 643 474 495 ** FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY15 FY16 FY17* FY18 ** FY19 Leverag
Slide 32: Operational Summary
Operational Summary Geographical Mix Studded Jewellery vs. Plain Gold Jewellery 100% 27% 27% 26% 8% 12% 18% 21% 50% 100% 30% 85% 73% 73% 74% 35% 30% 25% 0% 8% FY16 FY17 FY18 FY19 FY20 38% Studded Jewellery Plain Gold Jewellery Seasonality 62% 24% 27% 25% 27% 18% 57% 57% 58% 41% 34% 36% 35% 34% 32% 2
Slide 33: Awards
Awards 2001 2008 2012 SEEPZ-SEZ Star GJEPC Award for GJEPC Award for Award largest exporter of largest exporter of studded metal studded metal jewellery jewellery 2005 2009 2015 WM Int’l Supplier of Emerging India GJEPC Award for the Year Award largest exporter of studded metal jewellery 2006 2011 2
Slide 34: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Global Limited (“Renaissance” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations,
Slide 35: Thank You
RENAISSANCE GLOBAL LIMITED THANK YOU For any investor queries, reach out to Renaissance Global Limited Renaissance Global Limited DICKENSON SEAGULL IR Abhijit S. Karandikar G. M. Walavalkar Aakash Mehta Compliance Officer Email: Aakash.Mehta@dickensonir.com Manager – Investor Relations Mob: 098706 7
Renaissance Global — Investor Presentation (June 2020) on 6ix