Campus Activewear Ltd. · NSE:CAMPUS
Campus Activewear — Q4 FY23 Earnings Presentation
36 slides from Campus Activewear's earnings presentation, May 30, 2023
Slide 1: Exchange filing cover letter under Regulation 30
30th May 2023 To, BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department Exchange Plaza, C-1, Block G, 1st Floor, New Trading Ring, Rotunda Building, Bandra Kurla Complex, Bandra (East), P. J. Towers, Dalal Street, Mumbai – 400 051 Mumbai – 400 001 SCRIP CODE: 543523 SYM
Slide 2: Earnings Presentation Q4 FY23
EARNINGS PRESENTATION Q4 FY23 May 2023
Slide 3: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Campus Activewear Limited (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows
Slide 4: Table Of Contents
Table Of Contents 01 Business Snapshot 02 Business Highlights 03 Business Performance – Q4 FY23 and FY23 04 Growth Vectors 05 Appendix 3
Slide 5: Business Snapshot
01 Business Snapshot
Slide 6: India's Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand
CAMPUS - India’s Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand Revenue from Operations #1 20,000+ Q4 FY23: INR 3,477.5 mm Sports & Athleisure (S&A) Retailers across (c.-1.3% YoY growth) Footwear Brand in India (1) 650+ cities and 28 states FY23: INR 14,842.5 mm FY22: INR 11,941
Slide 7: Our Journey to Become India's #1 S&A Footwear Brand
Our Journey to Become India’s #1 S&A Footwear Brand Backward integration initiative – Upper EBO store count Manufacturing facility crosses 200 at Haridwar Backward integration IPO – Campus Inception of the & Successful launch of initiative - Sole EBO store count Activewear IPO “Campus” Brand On-boar
Slide 8: Product – Placement – Promotion Interplay Generating Business MOAT
Product – Placement – Promotion Interplay Generating Business MOAT Internal Strengths Curated Over the Years Across Product Design, Supply Chain, Distribution and Marketing is Onerous to Replicate Sustained focus on Product Innovation and Design Integrated Manufacturing Ecosystem Exclusive ancillary
Slide 9: Experienced Management & Professional Board at the Helm of Affairs
Experienced Management & Professional Board at the Helm of Affairs Key Management Board of Directors Mr. H.K. Agarwal Mr. Nikhil Aggarwal Raman Chawla ◼ Beam Global Mr. H.K. Agarwal Mr. Nikhil Chairman & CEO & Whole-Time Chief Financial ◼ One of the ◼ One of the ◼ Reckitt Benckiser Managing Director
Slide 10: Business Highlights
02 Business Highlights
Slide 11: Key Pillars of Business MOAT
Key Pillars of Business MOAT 1 Superior Product 2 3 4 5 Vertically Integrated Omni-Channel Customer Innovative Marketing Digitization of Sales Innovation and Design Manufacturing Ecosystem Experience Capabilities Process Capabilities Move from stand-alone trade Annual assembly capacity of Innovation
Slide 12: Superior Product Innovation and Design Capabilities
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 1 Superior Product Innovation and Design Capabilities Highly experienced in-house Global Design Consultancy Network team of 50 designers and Design Sourcing Tie-ups Deliver New and Differentiated Offerings for the Indian Mark
Slide 13: Vertically Integrated Manufacturing Ecosystem
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 2 Vertically Integrated Manufacturing Ecosystem Annual Assembly Capacity of 34.8 mm pairs (1) Uppers 13.8% ✓ c.90% domestic raw material sourcing In-house Haridwar Outsourced ✓ Exclusive ancillary network 86.2% Shoe Sole Abil
Slide 14: Omni Channel Platform to Reach Customers Where They Are
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 3 Omni Channel Platform to Reach Customers Where They Are • Pan-India Distribution Presence Pan India Distribution Presence All-Inclusive Use of E-commerce Channels (20,000+ Retail Touchpoints in Established Pan-India sales n
Slide 15: Strong Brand Recognition & Innovative Marketing
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 4 Strong Brand Recognition & Innovative Marketing Creating India’s Largest S&A Footwear Brand Brand building initiatives among all segments with acceptance levels across target customers groups Marketing Strategy Pivoted away
Slide 16: Digitization of Sales Process Generating a Virtuous Flywheel
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 5 Digitization of Sales Process has Generated a Virtuous Our Data Centric Approach Flywheel enabling Faster Speed to Market allows us to understand 7 1 Consumer Demand Trends, Design & Colour Preferences, Investment in Faster
Slide 17: Business Performance – Q4 FY23 and FY23
03 Business Performance – Q4 FY23 and FY23
Slide 18: Q4 FY23 and FY23 – Financial & Business Highlights
Q4 FY23 and FY23 – Financial & Business Highlights Parameters Q4 FY23 Q4 FY22 YoY Growth(%) Parameters FY23 FY22 YoY Growth(%) (INR mm) (INR mm) Revenue 3,477.5 3,523.4 (1.3%) Revenue 14,842.5 11,941.8 24.3% EBITDA 571.2 787.1 (27.5%) EBITDA 2,563.3 2,443.7 4.9% PAT 229.5 229.6 (0.0%) PAT 1,171.2 1,
Slide 19: Q4 FY23 and FY23 Financial Highlights
Q4 FY23 and FY23 Financial Highlights Revenue from Operations (1) (INR mm) Volume Sold (# mm) Average Selling Price (INR / Pair) 4,656.2 3,331.7 7.0 669 627 604 608 632 3,523.43,377.1 3,477.5 5.6 5.6 5.5 5.5 529 568 2,751.1 4.8 2.9 1,513.8 Q4FY20 Q4FY21 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q4FY20 Q4FY
Slide 20: Q4 FY23 and FY23 Financial Highlights
Q4 FY23 and FY23 Financial Highlights Revenue from Operations (1) (INR mm) EBITDA (2)&(4) (INR mm) Profit After Tax (3)&(4) (INR mm) EBITDA Margin (%) PAT Margin (%) 4,656.2 17.6% 23.6% 22.3% 18.4% 13.3% 19.9% 16.4% 6.1% 3.6% 6.5% 9.3% 4.4% 10.4.% 6.6% 3,523.4 3,377.13,331.7 3,477.5 927.9 2,751.1 78
Slide 21: FY23 Business Highlights
FY23 Business Highlights Cash Conversion Days (1) Net Debt (2) Day Sales Outstanding INR mm Net Receivables 110 79 69 40 39 134 1,730.0 1,829.8 1,739.5 122 120 106 98 1,567.8 1,345.6 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Net Debt (2) / EBITDA Return on Equity (%) Return on Capital Employ
Slide 22: Statement of Profit & Loss
Statement of Profit & Loss Particulars (INR mm) Q4FY23 Q3FY23 Q4FY22 FY2023 FY2022 Revenue from Operations 3,477.5 4,656.2 3,523.4 14,842.5 11,941.8 Other Income 5.8 8.8 2.9 27.5 24.0 Total Income 3,483.3 4,665.0 3,526.3 14,870.0 11,965.8 Cost of Materials Consumed, including packing material
Slide 23: Balance Sheet
Balance Sheet ASSETS (INR mm) FY23 FY22 EQUITY AND LIABILITIES (INR mm) FY23 FY22 Non-current assets Equity Equity share capital 1,523.4 1,521.6 Property, plant and equipment 2,218.0 2,004.8 Other equity 3,997.8 2,754.2 Capital work-in-progress 38.1 24.7 Total equity 5,521.2 4,275.9 Right-of-use ass
Slide 24: FY23 Revenue: Segmental Analysis
FY23 Revenue: Segmental Analysis Trade Distribution Channel 8,130.0 7,432.0 6,412.0 Campus Activewear Limited (1) 5,548.2 5,352.5 14,842.5 11,941.8 FY19 FY20 FY21 FY22 FY23 7,320.4 7,112.8 5,948.7 Direct to Consumer Channel FY19 FY20 FY21 FY22 FY23 6,570.7 4,437.9 1,748.3 898.5 350.9 Source: Company
Slide 25: Growth Vectors
04 Growth Vectors
Slide 26: Prime Growth Vectors Going Forward
Prime Growth Vectors Going Forward Leverage our Brand and Leadership Position with Enhanced Focus on Women, Children & Kids Steadily Extend into New Territories By Deepening our Presence in Western and Southern Regions of India Further Accentuate our Omni-channel Experience Sustained Focus on Premiu
Slide 27: Appendix
05 Appendix Industry Landscape & Positioning Wholly Owned Subsidiary Merger Impact
Slide 28: Appendix – A: Industry Landscape & Positioning
05 – A Appendix Industry Landscape & Positioning
Slide 29: India S&A Footwear Market has Attractive Industry Prospects
India S&A Footwear Market has Attractive Industry Prospects Within Indian Retail Industry, Footwear is Expected to be among the fastest Growing segments within the Retail Industry Footwear is Expected to be One of Indian Footwear Market Size Total Addressable Market (FY25P) 12% 15% 19% 21% the Faste
Slide 30: S&A Footwear in India is Highly Underpenetrated
S&A Footwear in India is Highly Underpenetrated Structural Growth Drivers in Place – Increase in Fitness Consciousness and Disposable Income Annual Footwear Consumption Per Capita Annual Expenditure on Share of S&A in Footwear Retail S&A Footwear (pairs per capita) (in US$) India’s Per Capita Footwe
Slide 31: Indian S&A Market has a Long Runway for Growth
Indian S&A Market has a Long Runway for Growth Poised for Similar Growth as Witnessed by Chinese Athleisure Market More Than 15 Years Ago Structural Growth Drivers – Benchmarking Spending on Sports to Increase as Economy Develops Scope for Increase in Sports Participation $63,544 Spending on sports
Slide 32: Widest Presence Across Price Segments
Widest Presence Across Price Segments Largest Market Coverage Addressing 85%+ of the S&A Footwear Market S&A Footwear Revenue Contribution Market (FY21) for CAMPUS INR 90bn FY19 FY23 Premium-Plus Nike (Above INR 3,000) 13% Puma Adidas Priced above INR 1,500 Expansive and Diverse Product Portfolio ac
Slide 33: Appendix – B: Wholly Owned Subsidiary Merger Impact
05 – B Appendix Wholly Owned Subsidiary Merger Impact
Slide 34: Impact of Merger
Impact of Merger Campus Activewear Limited has announced the approval of the merger of its wholly owned subsidiary Campus AI Private Limited with the Company by National Company Law Tribunal, New Delhi (NCLT) vide its order dated 11th August 2022. The revised audited financial results for the year e
Slide 35: Impact of Merger
Impact of Merger • For FY’21, the one-time additional tax impact of INR. (189.7) million has been captured as “Impact on Deferred tax / Current tax for earlier years” in the revised financials for FY’22. • The company has adopted the lower tax regime of 25% from FY’22 onwards. • Details of change in
Slide 36: Thank You
Thank You Investor Relations Desk ird@campusshoes.com 35