Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Investor Day (April 2023)
48 slides from Vaibhav Global's investor day presentation, Apr 6, 2023
Slide 1: Updates on Investor & Analyst Meet
VAIBHAV GLOBAL LIMITED Ref: VGL/CS/2023/34 Date: 06th April, 2023 National Stock Exchange of BSE Limited India Limited (NSE) Phiroze JeejeeBhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra, Mumbai – 400 051 Scrip Code: 532156 Symbol: VAIBHAVGBL Su
Slide 2: Vaibhav Global Limited Investor Day - April 2023
Vaibhav Global Limited Global Retailer on TV and Digital Platforms of Fashion Jewellery, Lifestyle Products and Accessories Investor Day - April 2023
Slide 3: Disclaimer
Disclaimer Delivering Joy This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its affiliated companies’ future business develop
Slide 4: Today's Speakers
Today’s Speakers Delivering Joy Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Managing Director, VGL Group CFO, VGL Group President, Shop LC (US) Mr. Srikant Jha Mr. Deepak Mishra Mr. Pushpendra Singh Managing Director, Shop TJC (UK) Managing Director, Shop LC (Germany) Vice President, Hu
Slide 5: Company Overview
Company Overview
Slide 6: Guiding Pillars That Defines VGL
Guiding Pillars That Defines VGL Delivering Joy OUR VISION OUR MISSION Be the Value Leader in Electronic To deliver one million meals per day to Retailing of Jewellery & Lifestyle children in need by ‘FY31’ through our one Products for one meal program- ‘Your Purchase Feeds…’ CORE VALUES Team-Work H
Slide 7: Key Strategic Enablers
Key Strategic Enablers Delivering Joy Omni-Channel Presence (Proprietary TV, Website, Apps, OTT, Marketplaces & Social Media) Vertically Integrated Supply Chain An Efficient Interplay of Wider Product Bouquet In-House Brand Strength & Innovation 6
Slide 8: A Global Retailer on TV and Digital Platforms
Vaibhav Global Limited: Delivering Joy A Global Retailer on TV and Digital Platforms PROPRIETARY ‘TV CHANNELS’ ‘DIGITAL’ PLATFORMS Proprietary Digital Platform Mobile Applications www.shoplc.com www.tjc.co.uk www.shoplc.de Third Party Marketplaces Social Retail Google Marketplace OTT Platforms Reach
Slide 9: E-tailing in High Potential Markets (USD 20bn)
E-tailing in High Potential Markets (USD 20bn) Delivering Joy US UK GERMANY Opportunity size $14- $15 bn $2-$2.5 bn ~$2.7 bn ➢ Target customers: Baby Boomers (65+ years) & Gen X (45+ years) ➢ Value-buying proposition of $25-$45 ➢ Widest product range comprising ~25,000 SKUs * Statista, Marketresearc
Slide 10: Constantly Reimagining Growth Through New Designs & Products
Constantly Reimagining Growth Through New Designs & Products Delivering Joy Fashion Jewellery & Gemstones Some of the best selling products ▪ ~14k-15k new jewellery designs launched annually ▪ In-house testing lab and manufacturing Hanabi Cut Ring Rhapsody Tanzanite Ring Life-Style Products ▪ A rich
Slide 11: Vertically Integrated Supply Chain
Vertically Integrated Supply Chain Delivering Joy Manufacturing in Asian countries Serving Selling in western countries Primary Retail Markets USA ($) UK ( ) Germany (€) India & China Resulting in industry leading gross margin of 60%+ 10
Slide 12: Complemented by a Robust Sourcing Base
Complemented by a Robust Sourcing Base Delivering Joy (US) (UK) (Germany ) Sourcing Countries ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy ▪ Tanzania ▪ Turkey ▪ Russia ▪ Poland ▪ Morocco ▪ Singapore ▪ Myanmar ▪ UAE ▪ Madagascar ▪ Japan ▪ Bolivia ▪ Bangladesh ▪ Kenya ▪ P
Slide 13: Resulting In
Delivering Joy RESULTING IN 12
Slide 14: Creating Stakeholder's Value
Creating Stakeholder’s Value Delivering Joy Growing Consistently CAGR CAGR CAGR CAGR Parameters (5 years) (10 years) (20 years) (25 years) Revenue 14% 16% 19% 19% EBITDA 24% 11% 21% 18% Profit Before Tax 29% 11% 22% 17% Net Worth 21% 16% 18% 18% ~24% CAGR in market cap. since IPO (270 times), exclud
Slide 15: Let's take you to US
Delivering Joy Let’s take you to US 14
Slide 16: Financial Performance Trends
Financial Performance Trends Delivering Joy Total Revenue (USD mn) PBT (USD mn) 25.8 246.2 234.9 21.1 192.2 19.8 170.6 166.0 156.1 95.5 140.7 90.9 68.0 11.8 11.8 32.2 45.6 56.2 64.3 6.4 1.1 108.5 110.5 114.5 124.2 143.9 150.8 101.7 FY17 FY18 FY19 FY20 FY21 FY22 9M FY17 FY18 FY19 FY20 FY21 FY22 9M FY
Slide 17: Consistent market share gains
Consistent market share gains Delivering Joy Market Share in US (%) 100.0% 8.0% 90.0% 93.2% 7.0% 92.6% 92.3% 92.0% 92.6% 92.6% 92.1% 80.0% 6.0% 6.1% 6.2% 6.1% 70.0% 5.7% 5.0% 5.2% 5.1% 60.0% 4.8% 4.0% 50.0% 3.0% 40.0% 2.8% 2.5% 2.0% 30.0% 2.2% 1.9% 20.0% 1.3% 1.5% 1.0% 1.1% 10.0% 0.0% FY16 FY17 FY18
Slide 18: Capitalizing Cord Shifting through OTA
Capitalizing Cord Shifting through OTA Current revenue mix of OTA for Shop LC: ~20%-25% of TV revenue Delivering Joy Our target demographics prefer OTA: Compelling Shop LC’s TV Revenue (USD mn) watching traditional Pay TV Opportunity 5 Years CAGR: 7% 150.8 143.9 22.2 124.2 % of population having TV
Slide 19: Widening Digital Platform OTT: Huge Growth Opportunity
Widening Digital Platform Delivering OTT: Huge Growth Opportunity Joy In US, OTT’s are projected to be the fastest growing video distribution medium Shop LC's OTT Revenue (USD mn) (~40% CAGR in next 4 years) 30.0 24.0 25.0 20.0 17.0 15.0 11.5 10.0 7.5 5.9 5.0 2.2 1.0 - FY20 FY21 FY22 FY23 (E) FY24 (
Slide 20: E-com Expansion
E-com Expansion Delivering Joy ▪ Strategic Levers o Continued Tech investment : Sales force Shop LC (US) E-com Sales Mix (%) marketing and service cloud 38.7% 38.8% 38.8% 35.4% o Strengthening e-com talent pipeline 32.9% 29.2% o Acceleration Digital paid campaigns 22.9% o Search Engine Optimisation
Slide 21: Delivering Joy
Delivering Joy 20
Slide 22: Financial Performance Trends
Financial Performance Trends Delivering Joy Total Revenue (GBP mn) PBT (GBP mn) 12.0 11.4 80.2 80.6 10.0 60.9 24.4 26.3 8.0 56.4 6.5 51.4 6.4 16.5 6.0 41.5 12.7 19.3 34.7 4.6 8.9 6.7 4.0 2.1 2.0 1.2 1.4 28.0 32.5 38.7 44.4 55.8 54.3 37.1 - FY17 FY18 FY19 FY20 FY21 FY22 9M FY17 FY18 FY19 FY20 FY21 FY
Slide 23: Consistent market share gains
Consistent market share gains Delivering Joy Market Share in UK (%) 80.0% 30.0% 66.9% 67.0% 67.2% 67.2% 64.5% 64.5% 70.0% 25.0% 60.0% 19.7% 18.6% 17.9% 20.0% 50.0% 19.6% 17.2% 16.6% 40.0% 15.0% 30.0% 9.5% 10.3% 8.1% 10.0% 6.8% 20.0% 4.8% 5.6% 10.0% 5.0% 8.7% 7.7% 7.4% 7.5% 8.1% 8.6% 0.0% 0.0% FY17 F
Slide 24: Freeview Channel Upgradation Yielding Positive Outcomes
Freeview Channel Upgradation Yielding Positive Outcomes Delivering Joy ▪ TJC (UK) upgraded channel position to 22nd from erstwhile 50th position in Jan-22 ▪ Investment now yielding positive results in terms of new customer acquisition on TV ▪ Expect market leading growth in long run New TV Customer
Slide 25: TJC: A Full-Fledged Digital Retailer 'Life-Style Products'
TJC: A Full-Fledged Digital Retailer ‘Life-Style Products’ Delivering Joy ▪ ~50% revenue from lifestyle category ▪ Expanded reach ▪ Aiding market share growth (doubled in last 5 years) TJC (UK) ▪ Dedicated Beauty Channel ‘TJC Beauty’ Lifestyle sales mix (%) 49% 44% 43% 35% 29% 22% 19% FY17 FY18 FY19
Slide 26: Germany
Delivering Joy Germany 25
Slide 27: Germany: Encouraging Performance So Far
Germany: Encouraging Performance So Far Delivering Joy INCREASED IMMEDIATE ADDRESSABLE MARKET BY ~$2.7 BN ▪ Penetrated ~90% of Germany within 1.5 years of operations (~37.5 mn households in Germany & ~2 mn in Austria) ▪ Transponding on SD and HD Channel position on Satellite ▪ Arm partnered with Vod
Slide 28: Germany: Encouraging Performance So Far
Germany: Encouraging Performance So Far Delivering Joy Revenue Trend ▪ Omni-channel: Digital now at 31% 4,331 3,778 ▪ Positive Customer Orientation 2,649 o Growing repeat purchase: 17 pieces 2,289 1,431 o Robust retention rate: 40% 366 o CSAT 96% Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Cumul
Slide 29: Financial Performance Trends
Financial Performance Trends
Slide 30: Financial Performance Trends
Financial Performance Trends Delivering Joy Revenue Breakdown – (Rs. crore) 34.2% 2,540 2,752 5 Year CAGR: 13.9% 1,986 2,067 1,998 1,814 1,571 FY18 FY19 FY20 FY21 FY22 9M FY22 9M FY23 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 Year CAGR: 11.8% 5 Year CAGR: 29.2% TV Revenue Digi
Slide 31: Financials – Annual Financial Performance
Financials – Annual Financial Performance Delivering Joy Gross Profit Margin % PAT Margin % 300 10.7% 10.2% 12% 63.0% 9.6% 62.5% 62.3% 62.3% 250 8.5% 8.6% 10% 61.6% 7.2% 61.1% 200 8% 150 4.1% 6% 59.6% 100 4% 50 2% 113 154 190 272 237 210 82 0 0% FY18 FY19 FY20 FY21 FY22 9M FY22 9M FY23 FY18 FY19 FY2
Slide 32: Financials – Annual Financial Performance
Financials – Annual Financial Performance Delivering Joy Net Debt (Rs. Cr) Net Assets* (Rs. Cr) FY18 FY19 FY20 FY21 FY22 9M FY23 (13) 540 590 (93) 417 399 394 395 (118) (181) (194) (377) FY18 FY19 FY20 FY21 FY22 9M FY23 Free Cash Flow (Rs. Cr) ROCE (TTM) 61% 268 46% 37% 181 176 31% 27% 15% 96 20 (21
Slide 33: Current Environment & Way Forward
Current Environment & Way Forward
Slide 34: Current Environment
Current Environment Delivering Joy Digital Industry facing temporary headwinds in the US and the UK ▪ Muted consumer sentiments amidst UK US broader macro uncertainties 14% 14.6% 14.5% 30.9% 27.8% 26.5% ▪ Cost of living crisis in UK 9.90% 11% 17.9% 19.1% ▪ Recent disruption in UK’s delivery market ▪
Slide 35: Way Forward: Accelerating Digital
Way Forward: Accelerating Digital Delivering Joy Strategic Initiatives: Digital sales mix (%) ▪ Upgradation of Tech Infrastructure 36.2% 36.7% 37.1% 33.0% ▪ Digital Marketing 27.2% 30.6% ▪ Social & Influencer Marketing 22.0% ▪ Video Commerce ▪ Over The Top (OTT) FY17 FY18 FY19 FY20 FY21 FY22 9M FY23
Slide 36: Way Forward: Expand Lifestyle Category
Way Forward: Expand Lifestyle Category Delivering Joy • Natural extension of fashion jewellery Lifestyle sales mix (%) 31.2% 29.9% • Opportunity to cross-sell 27.7% • Occupying larger wallet share of same 21.6% 17.1% customer 11.0% 12.0% • Leveraging global sourcing base spread across 30 countries F
Slide 37: Way Forward: 4R's of Customer Engagement
Way Forward: 4R’s of Customer Engagement Delivering Joy TV: Linear | OTA Diverse Products Enduring relationships Expanding wallet share Digital: Deep value Browsers | Mobile proposition Convenience Apps | Market-places Cross-selling | OTT| Social Media Engrossing Content Digitalization/AI Reach (HH)
Slide 38: Way Forward: Strengthening Own Brand Portfolio
Way Forward: Strengthening Own Brand Portfolio Delivering Joy USA UK Germany ▪ Leveraging manufacturing & digital capabilities ▪ Number of brands: 31 ▪ Current revenue mix: ~30% of B2C revenue ▪ Target revenue mix: ~50% by FY27 ▪ New brand additions based on brand matrix (price laddering and offerin
Slide 39: ESG: Growing Responsibly
ing : Growi ESG ibly Respons
Slide 40: Sustainability Initiatives
Sustainability Initiatives Delivering Joy ENERGY WATER SolarSolar power capacity meets 100% power requirement at 6100 KL Rainwater per annum harvested 3.23 mw manufacturing units in Jaipur 184 two-wheelers & 3 four- 500 KL RWS Rainwater Storage Tank commissioned EV wheelers for employees’ commute BI
Slide 41: Growth With Responsibility
Growth With Responsibility Delivering Joy ▪ Till date Served 73 million meals to underprivileged children through flagship mid day meals programme, ’Your Purchase Feeds…’ ▪ Local charity partners ✓ Akshaya Patra in India ✓ No Kid Hungry and Backpack Friends in US ✓ Magic Breakfast & Felix Project in
Slide 42: Robust Corporate Governance
Robust Corporate Governance Delivering Joy Awards & Accolades ICSI National Award for Excellence in LEED’s PLATINUM & ▪ Diversified and professional board composition Corporate Governance GOLD Certification Dividend Payout Policy ▪ 20-30% of consolidated free cash flows ▪ Balance between resource co
Slide 43: Highly Engaged 'Human Capital'
Highly Engaged ‘Human Capital’ Delivering Joy ▪ Trainings & Development: o Entry level: Min. 30 hours / year o Leadership level: 100+ hours / year ▪ Career Pathing: Elevated 254 white collar employees in FY23 ▪ Upskilling & Mentorship program ▪ Great Place to Work® certification at India, US, UK and
Slide 44: Summary
Summary Delivering Joy Virtuous VGL flywheel moving forward with: ▪ High customer orientation ▪ High employee engagement evident with GPTW certifications at all group units ▪ Consistent giveback to community through our One for One program- Your purchase Feeds... ▪ Consistent progress on environment
Slide 45: Thank You
Thank You Company : Investor Relations Advisors : Vaibhav Global Limited Adfactorspr Pvt. Ltd. Nitin Panwad, Group CFO Amit Sharma nitin.panwad@vglgroup.com amit.sharma@adfactorspr.com Prashant Saraswat Disha Shah Head-Investor Relations disha.shah@adfactorspr.com prashant.saraswat@vglgroup.com 44 w
Slide 46: Annexures
Delivering Joy Annexures 45
Slide 47: Shareholding Pattern: As on 31st December 2022
Shareholding Pattern: As on 31st December 2022 Delivering Joy Holding as on Shareholding Pattern Key Shareholders 31-Dec-22 Nalanda India Fund Limited 10.19% Others 11.42% Motilal Oswal Flexi Cap Fund 5.52% Individual - >1% 3.16% Malabar India Fund Limited 5.40% AIF 0.84% Vanguard 1.58% Domestic Ins
Slide 48: Strong & Experienced Management
Strong & Experienced Management Delivering Joy Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Mr. Srikant Jha Mr. Deepak Mishra Managing Director, VGL Group Group CFO, VGL Group President, Shop LC (US) Managing Director, Managing Director, Shop TJC (UK) Shop LC (Germany) Mr. Ankur Sogani M