Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — H1 FY2019 Earnings Presentation
36 slides from Vaibhav Global's earnings presentation, September 2018
Slide 1: Financial Results Presentation – Q2 & H1 FY2019
Global Retailer of Fashion Jewelry, Accessories and Lifestyle products on Home Shopping TV and Vaibhav Global Limited e-Commerce Platforms Financial Results Presentation – Q2 & H1 FY2019
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: B2C Success in Developed Markets
B2C Success in Developed Markets Products Sold TV Homes Avg. Quantity per Customer On TV and Web Directly Accessed (FTE) *TTM Unique Customers *TTM ROE *TTM ROCE *TTM Revenue PAT Free Cash Flow Investor Presentation Q2 FY2019 3
Slide 4: End-to-end B2C business model for fashion and lifestyle accessories
100 million (FTE) households on TV shopping in the US and UK; expanding End-to-end B2C business model for online presence Vertically- fashion and lifestyle accessories Shop LC and Positive customer engagement metrics – integrated Proprietary TV home-shopping and TJC are brands customer base, retenti
Slide 5: Manufacturing, Sourcing and Consumption Markets
Manufacturing and Consumption Markets Souring Markets STS, China Sourcing USA STS Hong Kong TV channel retail Sourcing E-commerce website The Jewellery Channel, UK Sub-contracting & Apps TV channel retail Marketplaces E-commerce website & Apps Marketplaces STS Thailand Sourcing USA VGL India B2B Who
Slide 6: Table of Contents
Table of Contents Q2 & H1 FY19 Financial Business Financial 07 Performance 15 Background 23 Performance Trends Details Investor Presentation Q2 FY2019 6
Slide 7: Q2 & H1 FY19 Financial Performance
Q2 & H1 FY19 Financial Performance
Slide 8: Key Highlights for Q2 FY19
Key Highlights for Q2 FY19 Home TV Network Reach in 100 Mn Households across US and Operating Highlights in Q2 & H1 FY19 UK Shop LC received recognition for Baldrige Commitment Level 100 million households on full time equivalent (FTE*) basis Award by Quality Texas Foundation 75 million households i
Slide 9: Chairman's Message
“I am glad to report another strong performance from Vaibhav Global during Q2 FY19, which has Chairman’s Message allowed us to maintain a healthy business growth momentum in line with our outlook. Revenue growth of 28% was driven by strong expansion in both retail and B2B businesses. Retail growth w
Slide 10: Financials – Q2 & H1 FY19 Performance (Revenue Breakdown)
Financials – Q2 & H1 FY19 Performance (Revenue Breakdown – Rs. crore) Revenue Jewelry & Lifestyle Products 842 685 TV Sales Web Sales B2B 540 94 452 208 457 353 162 66 294 112 46 238 85 30 Q2 Q2 H1 H1 Q2 Q2 H1 H1 Q2 Q2 H1 H1 Q2 Q2 H1 H1 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY1
Slide 11: Financials – Revenue Breakdown in Local Currency
Financials – Q2 & H1 FY19 Performance (Revenue Breakdown - Local Currency) Shop LC (USD million) TJC UK (GBP million) 24 77 72 19 42 12 37 10 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Investor Presentation Q2 FY2019 11
Slide 12: Retail Performance Trends - Q2 & H1 FY19
Retail Performance Trends - Q2 & H1 FY19 (Volume and ASP) TV Sales Sales Volume ('000s) Average Selling Price US$ 27.5 2,676 2,859 26.6 1,588 26.3 1,416 26.1 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Web Sales Sales Volume ('000s) Average Selling Price US$ 1,513 20.4 1,295 20.0
Slide 13: Financials – Margins
Financials – Q2 & H1 FY19 Performance (Margins) Gross Profit Gross Margin (%) Gross Profit Gross Margin (%) 63.2% 62.1% 63.5% 63.0% 63.7% 61.4% 62.5% 62.0% 223 280 437 517 61.5% Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 EBITDA EBITDA Margin (%) EBITDA EBITDA Margin (%) 12.2% 11.8% 8.8% 8.2% 31 55 56 99 Q2 FY1
Slide 14: Financials – Profits
Financials – Q2 & H1 FY19 Performance (Profits) PAT PAT Margin (%) PAT PAT Margin (%) 8.7% 8.2% 5.6% 5.1% 20 39 35 69 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 EPS (Rs.) 21.23 12.01 11.47 6.46 Q2 FY18 Q2 FY19 H1 FY18 H1 FY19 Investor Presentation Q2 FY2019 14
Slide 15: Financial Performance Trends
Financial Performance Trends
Slide 16: Financials Performance Trends (Revenue breakdown)
Financials Performance Trends (Revenue breakdown - Rs. crore) Revenue 1,436 1,569 1,276 842 685 FY16 FY17 FY18 H1 FY18 H1 FY19 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 372 931 972 996 274 190 201 223 208 540 162 122 457 94 66 FY16 FY17 FY18 H1 FY18 H1 FY19 FY16 FY17 FY18 H1 FY18 H1
Slide 17: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 27.5 26.9 5,854 5,877 5,737 26.3 24.9 2,859 24.4 2,676 FY16 FY17 FY18 H1 FY18 H1 FY19 FY16 FY17 FY18 H1 FY18 H1 FY19 Web Sales Sales Volume ('000s) Average Selling Price US$ 2,840 2,264 2,353 20.3 19.4 20.02 17.5 15.1
Slide 18: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Gross Profit Gross Margin (%) 63% 63.7% 61.4% 60% 59% 804 865 929 437 517 FY16 FY17 FY18 H1 FY18 H1 FY19 EBITDA EBITDA Margin (%) 11.8% 10% 7% 8.2% 6% 75 102 159 56 99 FY16 FY17 FY18 H1 FY18 H1 FY19 Investor Presentation Q2 FY2019 18
Slide 19: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) PAT PAT Margin (%) 8.2% 7% 4% 5.1% 3% 40 65 113 35 69 FY16 FY17 FY18 H1 FY18 H1 FY19 EPS 12.27 19.85 34.55 11.47 21.23 FY16 FY17 FY18 H1 FY18 H1 FY19 Investor Presentation Q2 FY2019 19
Slide 20: Financial Performance Trends (Balance Sheet)
Financial Performance Trends (Balance Sheet - Rs. crore) Shareholders’ Equity Fixed assets including intangibles 129 636 126 550 379 434 120 119 FY16 FY17 FY18 H1 FY19 FY16 FY17 FY18 H1 FY19 Net Debt Net Current Assets 55 417 413 6 305 314 (13) (104) FY16 FY17 FY18 H1 FY19 FY16 FY17 FY18 H1 FY19 Inv
Slide 21: Financial Performance Trends (Cash Flow)
Financial Performance Trends (Cash Flow – Rs. crore) Operating Cash flow Free Cash Flow 85 95 58 44 88 18 36 50 (10) (59) FY16 FY17 FY18 Q2 FY19 H1 FY19 FY16 FY17 FY18 Q2 FY19 H1 FY19 Operating Cash Flow: PBT+ Depreciation- Free Cash Flow: Operating Cash Flow – Capital (Changes in working capital) +
Slide 22: Financial Performance Trends (Key Ratios)
Financial Performance Trends (Key Ratios) ROE ROCE 23% 34% 21% 15% 25% 11% 16% 12% FY16 FY17 FY18 H1 FY19 FY16 FY17 FY18 H1 FY19 Investor Presentation Q2 FY2019 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 Q2 FY2019 24
Slide 25: Branding Initiative
Branding Initiative Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation Q2 FY2019 25
Slide 26: 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 27: Manufacturing
Manufacturing Four ISO 9001:2008 facilities in Jaipur, with capacity of producing 6 million units annually Commenced operations at new 100,000 sq. ft., fully-integrated, LEED certified ‘Gold Level’ building at SEZ, Jaipur Diamond manufacturing and sourcing unit of the company is also present in Mumb
Slide 28: TV Networks – USA
TV Networks – USA (Consumption Markets) Shop LC, USA 75 million households shopping (FTE, out of 120 mn) Based out of Austin, Texas USA Almost 500 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions Successfully re-branded Liquidation Channel to
Slide 29: TV Networks – UK
TV Networks – UK (Consumption Markets) The Jewellery Channel (TJC), United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of London Over 150 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions State-of-the-art auction/schedul
Slide 30: Retail Format: E-Commerce
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.ShopLC.com USA Launched Mobile App for Shop LC Launched Budget Pay EMI option Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on all socia
Slide 31: 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 Cord Cutters don’t We already have Broadcast want to pay for any presence on o Charter channel or satellite following Smart Communication
Slide 32: Management Team
Management Team Mr. Sunil Agrawal Puru Aggarwal Chairman & Managing Director Group CFO An MBA from Columbia University, NY (USA), Sunil Over 25 years of rich experience in business modeling, established Vaibhav in 1980 as a first generation financial strategy & planning, business development, entrep
Slide 33: Management Team
Management Team Jeff Allar Nitin Dugar Senior Vice President, Group HR Vice President , COO – Shop LC, USA Over 30 years of work experience at major international Over 12 years at VGL, rich experience in business companies including IBM, Unilever and the Stonyfield Farm development, customer service
Slide 34: Management Team
Management Team Amit Agarwal Vivek Jain Commercial Director – TJC, UK Finance Director – TJC, UK MBA marketing with over 16 years of experience with A Chartered Accountant with over 16 years’ experience in different companies like BSL Ltd , Siddhartha Marble and Finance, Banking, Accounts, Budgeting
Slide 35: Contact Information
Contact Information For more information on Puru Aggarwal Vaibhav Global Limited Vaibhav Global Limited, +91-141-2770648 Ankit Sahay please contact: Puru.Aggarwal@vglgroup.com Ankit.Sahay@vglgroup.com Shiv Muttoo CDR India +91 22 6645 1207/1220 Karl Kolah shiv@cdr-india.com karl@cdr-india.com Invest
Slide 36: Thank You
Thank You