Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — H1 FY2020 Earnings Presentation
39 slides from Vaibhav Global's earnings presentation, October 2019
Slide 1: Financial Results Presentation – Q2 & H1 FY2020
Global Retailer of Fashion Jewellery, Accessories and Lifestyle products on Home Shopping TV and Vaibhav Global Limited e-Commerce Platforms Financial Results Presentation – Q2 & H1 FY2020
Slide 2: Forward-looking statements disclaimer
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 materially fro
Slide 3: Key figures at a glance
Rs.485cr 97.7mn TV Homes Directly Revenue Accessed (*FTE) Rs.49cr 351,000 Unique Customers PAT *TTM 24% 2.4mn Products Sold ROE *TTM On TV and Web 41% 30 Avg. Quantity per ROCE *TTM Customer *TTM *ROE – based on average net-worth *ROCE – based on average capital employed *FTE - Full Time Equivalent
Slide 4: Vertically-integrated fashion retailer
Vertically- End-to-end B2C business model for fashion Shop LC and 97.7 million (FTE) households on TV shopping integrated jewellery, accessories and lifestyle products TJC are brands in the US and UK; expanding online presence Significant geographical cost arbitrage Positive customer engagement metr
Slide 5: Table of Contents
Table of Contents Q2 & H1 FY20 Financial Business Financial 06 Performance 15 Background 23 Performance Trends Details Investor Presentation October 2019 5
Slide 6: Q2 & H1 FY20 Financial Performance
Q2 & H1 FY20 Financial Performance
Slide 7: Key Highlights for Q2 & H1 FY20
Key Highlights for Q2 & H1 FY20 Q2 FY20 Retail Revenue up 13.3% YoY; Retail Volumes at H1 FY20 Retail revenue up 16.7%; Retail Volumes at 4.7 2.4 Million Units, up 0.3% YoY; and overall ASP* at Million Units, up 7% YoY and overall ASP* at $26.6, up $27.2, up 12% YoY 6% YoY Home TV shopping volumes a
Slide 8: Key Highlights for Q2 & H1 FY20
Key Highlights for Q2 & H1 FY20 Home TV Network Reach – 97.7 Mn Households on full time equivalent (FTE*) basis across US and UK 72.7 million households in the US 25 million households in the UK Operating Highlights in Q2 & H1 FY20 Moving ahead on its quality journey, Shop LC, US, applied for the Ma
Slide 9: MD’s Message
MD’s Message I am pleased to report that we have maintained our growth momentum in the core retail business with B2C revenues improving at a healthy rate of 13.3% for Q2FY20 and 16.7% for H1FY20. In line with our guidance, we have reported retail growth on constant currency basis at 15.6% in the US
Slide 10: Financials – Q2 & H1 FY20 Performance
Financials – Q2 & H1 FY20 Performance (Revenue Breakdown – Rs. crore) Fashion Jewelry, Accessories & Lifestyle Products Revenue TV Sales Web Sales B2B 925 285 94 842 540 587 208 485 148 53 452 46 294 312 112 25 Q2 Q2 H1 H1 Q2 Q2 H1 H1 Q2 Q2 H1 H1 Q2 Q2 H1 H1 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 F
Slide 11: Financials – Q2 & H1 FY20 Performance
Financials – Q2 & H1 FY20 Performance (Revenue Breakdown - Local Currency) Shop LC (USD million) TJC UK (GBP million) 89.4 27.7 77.3 23.7 47.0 14.7 42.1 12.4 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Investor Presentation October 2019 11
Slide 12: Retail Performance Trends – Q2 & H1 FY20
Retail Performance Trends – Q2 & H1 FY20 (Volume and ASP) TV Sales Sales Volume ('000s) Average Selling Price US$ 2,859 30.3 29.8 2,822 1,588 27.6 1,467 26.6 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Web Sales Sales Volume ('000s) Average Selling Price US$ 1,875 22.3 1,513 21.8
Slide 13: Financials – Q2 & H1 FY20 Performance
Financials – Q2 & H1 FY20 Performance (Profits – Rs. crore) Gross Profit Gross Margin (%) Gross Profit Gross Margin (%) 62.2% 62.1% 61.3% 61.4% 280 297 517 575 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 EBITDA EBITDA Margin (%) EBITDA EBITDA Margin (%) 14.3% 13.4% 12.2% 11.8% 55 70 99 124 Q2 FY19 Q2 FY20 H1 FY
Slide 14: Financials – Q2 & H1 FY20 Performance
Financials – Q2 & H1 FY20 Performance (Profits – Rs. crore) PAT PAT Margin (%) PAT PAT Margin (%) 10.1% 9.2% 8.7% 8.2% 39 49 69 85 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 EPS (Rs.) 25.98 21.23 14.97 12.01 Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Investor Presentation October 2019 14
Slide 15: Financial Performance Trends
Financial Performance Trends
Slide 16: Financials Performance Trends
Financials Performance Trends (Revenue breakdown - Rs. crore) Revenue 1,814 1,436 1,571 1,276 842 925 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 1,157 510 931 972 997 373 190 201 587 274 285 122 147 540 223 208 94 53 FY16 FY17 FY18 FY19 H1 H1 FY16 F
Slide 17: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 5,854 5,877 5,737 6,275 27.0 27.6 29.8 24.4 24.9 26.4 2,859 2,822 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 Web Sales Sales Volume ('000s) Average Selling Price US$ 3,522 20.4 20.7 20.1 21
Slide 18: Financials Performance Trends
Financials Performance Trends (Profits – Rs. crore) Gross Profit Gross Margin (%) 62.5% 63.0% 60.1% 59.6% 61.4% 62.2% 804 865 936 1,133 517 575 FY16 FY17 FY18 FY19 H1FY19 H1FY20 EBITDA EBITDA Margin (%) 12.0% 10.1% 7.1% 13.4% 5.9% 11.8% 75 102 159 217 99 124 FY16 FY17 FY18 FY19 H1FY19 H1FY20 Investo
Slide 19: Financials Performance Trends
Financials Performance Trends (Profits – Rs. crore) PAT PAT Margin (%) 8.5% 7.2% 4.5% 9.2% 3.1% 8.2% 40 65 113 154 69 85 FY16 FY17 FY18 FY19 H1 FY19 H1 FY20 EPS (Rs.) 47.27 34.55 25.98 19.85 21.23 12.27 FY16 FY17 FY18 FY19 H1FY19 H1FY20 Investor Presentation October 2019 19
Slide 20: Financial Performance Trends – Balance Sheet
Financial Performance Trends (Balance Sheet - Rs. crore) Shareholders’ Equity Fixed assets including intangibles 697 ** 732 ** 155 550 129 126 434 120 117 379 FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 FY18 FY19 H1FY20 55 Net Debt Net Assets *** 6 417 399 ** 383 (13) 305 314 (181) (194) FY16 FY17 FY18 FY1
Slide 21: Financial Performance Trends – Cash Flow
Financial Performance Trends (Cash Flow – Rs. crore) Operating Cash flow Free Cash Flow 170 193 88 58 54 39 73 18 23 36 (10) (59) FY16 FY17 FY18 FY19 Q2FY20 H1FY20 FY16 FY17 FY18 FY19 Q2FY20 H1FY20 Operating Cash Flow: PBT+ Depreciation-(Changes Free Cash Flow: Operating Cash Flow – Capital in worki
Slide 22: Financial Performance Trends – Key Ratios
Financial Performance Trends (Key Ratios) ROE ROCE 23% 25% 24% 41% 37% 16% 27% 12% 18% 13% FY16 FY17 FY18 FY19 H1FY20 FY16 FY17 FY18 FY19 H1FY20 Note - ROE – based on average net worth ROCE – based on average capital employed Investor Presentation October 2019 22
Slide 23: Business Background Details
Business Background Details
Slide 24: Product Profile
Product Profile FASHION JEWELLERY FASHION ACCESSORIES LIFESTYLE PRODUCTS Bracelets Watches Home Décor Bangles Handbags Bed linens Earrings Scarves, etc. Pillow Covers Studded jewelry, etc. Beauty products Investor Presentation October 2019 24
Slide 25: Branding Initiative
Branding Initiative Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation October 2019 25
Slide 26: Sales channels in UK and USA
The Jewellery Channel, UK TV channel retail E-commerce website & Apps USA Marketplaces TV channel retail Social media E-commerce website & Apps Marketplaces Social media USA B2B Wholesale distribution Investor Presentation October 2019 26
Slide 27: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding China: Guangzhou, Haifeng, India: Hauadu Shenzhen, In-House designers & craftsmen Noida, Jaipur, Dongguan, Zhuji, Sourcing from appropriate Nagaland, Kashmir Wenzhou, Wuzhou, No middlemen micro-markets in China/Asia
Slide 28: Manufacturing
Manufacturing ISO 9001:2008 facilities in Jaipur, Rajasthan Fully-integrated building at SEZ, Jaipur - IGBC certified ‘IGBC Green Factory Building Gold’ Diamond manufacturing and sourcing unit of the company is also present in Mumbai Over 2,900 people in India across corporate, manufacturing, design
Slide 29: TV Networks – USA
TV Networks – USA (Consumption Markets) Shop LC, USA 72.7 million households (FTE, out of 120 mn) Based out of Austin, Texas USA Almost 450 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions Successfully re-branded Liquidation Channel to Shop LC
Slide 30: TV Networks – UK
TV Networks – UK (Consumption Markets) The Jewellery Channel (TJC), United Kingdom 25 million households (FTE, out of 25 mn) Based out of London Over 250 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions State-of-the-art auction/scheduling syst
Slide 31: Retail Format – E-Commerce
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.ShopLC.com USA Mobile App for Shop LC Budget Pay EMI option available Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on all social platfo
Slide 32: Early Adopters And Cord Cutters
Early Adopters And Cord Cutters High Definition And IP Expansion Into Over The Smart Tv And Streaming Broadcast Air Presence (OTA) Devices (Iptv) High Definition Broadcast Cord Cutters don’t We already have o Charter want to pay for any presence on Communication channel or satellite following Smart
Slide 33: Delivering Joy to Stakeholders – Employees, Customers
Delivering Joy to Stakeholders • High quality products Customers • Exotic designs • Lowest Price Guarantee – high quality, high affordability • Omni-channel access – available on TV, Web and Mobile platforms • Budget Pay (monthly installments) available on higher value products • Easy Returns availa
Slide 34: Delivering Joy to Stakeholders – Environment
Delivering Joy to Stakeholders Investors Year 2017 2018 2019 24% 41% Rank #219 #162 #147 ROE ROCE • Solar power projects to meet ~45% of the total power Environment requirement at the manufacturing facilities in Jaipur (current + planned solar power project) • Invested in sewage treatment, recycling
Slide 35: Management Team
Management Team Mr. Sunil Agrawal Puru Aggarwal Managing Director Group Chief Financial Officer An MBA from Columbia University, NY (USA), Sunil Over 27 years of rich experience in business modeling, established Vaibhav in 1980 as a first generation financial strategy & planning, business developmen
Slide 36: Management Team
Management Team Jeff Allar Srikant Jha Group Senior Vice President, Human Resources Managing Director - TJC, UK Over 30 years of work experience at major international companies including IBM, Unilever and the Stonyfield Farm Srikant Jha is a B.Com graduate and has done his MBA in unit of Groupe Dan
Slide 37: Management Team
Management Team Raj Singh Vivek Jain Vice President, Supply Chain, VGL Group Senior Director, Finance – VGL Group Mr. Raj Singh is a graduate in Chemistry and trained in A Chartered Accountant with over 16 years’ experience in Mechanical Maintenance. He began his career with Shrenuj & Finance, Banki
Slide 38: Contact Information
Contact Information For more information on Puru Aggarwal Vaibhav Global Limited Vaibhav Global Limited, +91-141-2770648 Dipti Rajput please contact: Puru.Aggarwal@vglgroup.com Dipti.Rajput@vglgroup.com Shiv Muttoo CDR India +91 22 6645 1207/1220 Karl Kolah shiv@cdr-india.com karl@cdr-india.com Inve
Slide 39: Thank You
Thank You