Slide 1: Revised Investor Presentation cover letter to exchanges
KDDL Limited Kamla Centre, SCO 88-89, Sector 8-C, Chandigarh - 160 009, INDIA. Tel: +91 172 2548223/24, 2544378/79 Fax: +91 172 2548302, Website:www.kddl.com CIN-L33302HP1981PLC008123 Ref : KDDL/CS/2021-22/48 Date : 17th August, 2021 National Stock Exchange of India Limited BSE Limited, Exchange Pla
Slide 2: KDDL Limited & ETHOS Limited Investor Presentation
KDDL Limited & ETHOS Limited Investor Presentation August 2021
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Ltd and Ethos Limited, a material subsidiary of KDDL Limited, (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or
Slide 4: Q1FY22 Performance Overview
Q1FY22 Performance Overview
Slide 5: Q1FY22 Performance
Q1FY22 Performance Standalone Performance (Rs. Crs.) Revenue PAT +120% 2.7 46.2 21.0 -4.8 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* PAT +221% 0.8 90.0 28.1 -10.8 Q1FY21 Q1FY22 Q1FY21 Q1FY22 Q1FY22 as well as Q1FY21 were impacted by lockdowns, however impact in
Slide 6: Standalone Profit & Loss
Standalone Profit & Loss Profit & Loss (Rs. Crs.) Q1FY22 Q1FY21 YoY% Q4FY21 QoQ% FY21 Revenue 46.2 21.0 120% 50.5 -8% 146.9 Cost of Goods Sold 12.0 5.8 12.1 37.7 Gross Profit 34.2 15.2 126% 38.4 -11% 109.2 Employee Expenses 15.5 10.8 14.6 49.7 Other Expenses 11.4 5.7 11.7 35.7 EBITDA 7.4 -1.3 - 12.2
Slide 7: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crs.) Q1FY22 Q1FY21 YoY% Q4FY21 QoQ% FY21 Revenue 139.0 53.0 162% 178.2 -22% 548.8 Cost of Goods Sold 76.0 28.2 101.3 323.5 Gross Profit 63.0 24.8 154% 76.9 -18% 225.3 Employee Expenses 26.6 19.5 26.0 86.3 Other Expenses 21.5 11.6 23.7 74.0 EBITDA 14.9 -
Slide 8: Consolidated Profit & Loss (IND AS impact)
Consolidated Profit & Loss (IND AS 116 impact) As Reported Without IND AS 116 Profit & Loss (Rs. Crs.) Q1FY22 Q1FY21 Q1FY22 Q1FY21 Revenue 139.0 53.0 139.0 53.0 Cost of Goods Sold 76.0 28.2 76.0 28.2 Gross Profit 63.0 24.8 63.0 24.8 Employee Expenses 26.6 19.5 26.6 19.5 Other Expenses 21.5 11.6 31.1
Slide 9: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 85.2 Crores and equivalent to the lease liability of Rs. 88.8 Crores as on 30th Jun 2021 • Overall balance sheet will increase by the amount of asset created for Leases. This will h
Slide 10: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs. Crs.) Mar-21 Mar-20 Liabilities (Rs. Crs.) Mar-21 Mar-20 Non-current assets 216.2 216.0 Equity 173.1 169.5 Property, plant and equipment 90.8 93.8 Equity share capital 11.7 11.7 Capital work-in-progress 1.1 2.2 Other equity 161.3 157.8 Right-of-use asset 10.7 12.
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Mar-21 Mar-20 Liabilities (Rs. Crs.) Mar-21 Mar-20 Non-current assets 277.8 299.2 Equity 227.3 227.4 Property, plant and equipment 153.7 158.6 Equity share capital 11.7 11.7 Capital work-in-progress 4.9 2.9 Other equity 174.8 174.0 Right-of-use asset 91.7
Slide 12: Manufacturing Business Overview
Manufacturing Business Overview 11
Slide 13: Introduction - Watch Dials and Hands Business
Introduction - Watch Dials and Hands Business Watch Dials Watch Hands Value Proposition ▪ Commercial operations began in 1983 ▪ Commercial operations began in 1996 ▪ Deep Understanding of the ▪ Leading Global supplier of Global Watch Industry Watch Dial serving many ▪ Only supplier in India and well
Slide 14: Precision Engineering Business
Precision Engineering Business Eigen offers a full package of services, ranging from design and Value Proposition development to full scale production, providing customers with optimized supply chain solutions We address various segments such as Electrical, Electronics, Automobile, Capabilities Tele
Slide 15: Stable Manufacturing Performance
Stable Manufacturing Performance* Revenue (Rs. Crs.) EBITDA (Rs. Crs.) 181 32 176 29 27 146 147 24 125 22 FY17 FY18 FY19 FY20 FY21 FY17 FY18 FY19 FY20 FY21 Since the lockdown was in force for a significant part of FY21, the results for FY21 were adversely affected by the COVID-19 pandemic and may no
Slide 16: Ethos Q1FY22 Snapshot
Ethos Q1FY22 Snapshot THE 50 4 FINEST WATCHES 5
Slide 17: Q1FY22 Performance
Q1FY22 Performance Q1FY22 Performance (Consolidated) Billings (Rs. Crs.) Revenue (Rs. Crs.)# PAT (Rs. Crs.) 118.1 104.1 102.1 0.8 90.0 0.0 32.2 28.1 -10.8 Q1FY20 Q1FY21 Q1FY22 Q1FY20 Q1FY21 Q1FY22 Q1FY20 Q1FY21 Q1FY22 • Q1FY22 as well as Q1FY21 were impacted by lockdowns, however impact in Q1FY22 wa
Slide 18: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crores)* Q1FY22 Q1FY21 YoY % FY21 Revenue 94.1 32.8 187% 403.0 Cost of Goods Sold 63.7 21.1 282.2 Gross Profit 30.4 11.7 159% 120.8 Margin (%) 32.3% 35.7% 30.0% Employee Expenses 8.5 7.1 29.3 Other Expenses 10.0 5.4 35.4 Reported EBITDA 11.9 -0.8 - 56.1
Slide 19: Consolidated Profit & Loss (IND AS impact)
Consolidated Profit & Loss (IND AS 116 impact) As Reported Without INDAS 116 Profit & Loss (Rs. Crores)* Q1FY22 Q1FY21 Q1FY22 Q1FY21 Revenue 94.1 32.8 90.0 28.1 Cost of Goods Sold 63.7 21.1 63.7 21.1 Gross Profit 30.4 11.7 26.3 7.0 Employee Expenses 8.5 7.1 8.5 7.1 Other Expenses 10.0 5.4 14.8 8.5 N
Slide 20: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 75.2 Crores and lease liability of Rs. 83.7 Crores, as on 30th June, 2021 • Overall balance sheet will increase by the amount of asset created for Leases. This will have an impact o
Slide 21: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crores)* Mar-21 Mar-20 Equity & Liabilities (Rs. Crores)* Mar-21 Mar-20 Non-current assets 128.8 142.7 Shareholder’s Fund 156.9 152.2 Fixed Assets 35.1 32.2 Share Capital 18.2 18.2 Right of Use 81.2 96.9 Other Equity 138.7 134.0 Financial Assets 9.0 9.3 Other N
Slide 22: Strategy at ETHOS
Strategy at ETHOS Stores Optimization Uniquely Positioned to Grow Post pandemic, Swiss brands may focus more In depth assessment of each store's on developed markets and less on developing performance across India. Closure of lower like India. Ethos is uniquely positioned to productivity stores and
Slide 23: Largest Pan India retailer of Luxury Watches
Largest Pan India retailer of Luxury Watches Stores as of Jun-21 46 ❑ GP Boutique, Chanakya mall, Delhi (785 Sq. Ft.) Addition (2) ❑ Second Time Zone, Delhi (1217 Sq. Ft) Closures (1) ❑ Inorbit, Vashi (949 Sq. Ft.) Total Stores 47 We continue to rationalise the store network Open stores in newer loc
Slide 24: Complementary verticals strengthens offerings
Complementary verticals strengthens offerings Repair & Service Pre-Owned Watches ✓ Pre-Owned Watches has the potential to ✓ Repair and services over 60 of the expand the volume and customer base Highlight 1 Luxury watch Brands World’s top Highlight ✓ Ethos has1the expertise to check the authenticity
Slide 25: Operational Highlights
Operational Highlights 24
Slide 26: Ethos - Performance Trend
Ethos - Performance Trend Front-end Rent & Manpower Cost as % of Revenue (Rs. Crs.)* Revenue 27.2% 99.1 100.8 102.1 90.0 11.3% 11.8% 11.1% 9.4% 28.1 Q1FY18 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Q1FY18 Q1FY19 Q1FY20 Q1FY21 Q1FY22 EBITDA (Rs. Crs.)* EBITDA Margins* 5.4 5.0 5.3% 4.8% 3.0 3.3% 0.2 0.2% -8.6 -30.6
Slide 27: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billings (Rs. Crs.) Online Billing as % of Total Billing 43.6 52.8% 39.5 34.6 32.7 41.9% 31.2% 33.8% 27.7% 17.0 Q1FY18 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Q1FY18 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Visitors (‘000) 4,811 3,873 3,424 3,316 2,894 Q1FY18 Q1FY19 Q1FY20 Q1FY21 Q1FY22 Eth
Slide 28: Ethos is India's Largest Luxury Watch Retailer
Ethos is India’s Largest Luxury Watch Retailer
Slide 29: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network India’s Largest retail chain of Luxury Watches with 47 stores Ludhiana Chandigarh New Delhi Gurugram Noida Presence across Metros, Tier I, Tier II cities Jaipur Lucknow Guwahati Ahmedabad Kolkata Nagpur 1 Duty Free Retail Outlet at International Terminal
Slide 30: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network Exclusive Brands Stores Digital Strategy Right Mix • Open Flagship • Leverage on our stores which can • Targeting to have a Digital platform to enjoy higher right mix of Brands drive sales and • Higher share of footfalls leading to at all price points cu
Slide 31: Ethos is India's Preferred Destination for Luxury Watches
Ethos is India’s Preferred Destination for Luxury Watches… Knowledge One-stop shop Mind Share Ethos has well trained Ethos’ access to Swiss Watch Ethos to be synonymous Knowledgeable staff to ensure Brands will make it a ‘1 Stop with Luxury watches highest customer satisfaction Shop’ for Luxury Watc
Slide 32: With an Asset Light Model
With an Asset Light Model… Maximize Minimize Investment Optimize Costs Reach Focus on Online Expand catchment Reduce Front-End Cost Presence & area of offline store, like Manpower and Rationalize Store leading to higher Rental expenses Presence revenue Operating Leverage Playing Out Improve Return O
Slide 33: and Continued Investments in Advertising
and Continued Investments in Advertising… Print Ads in leading news media… Hindustan Times Hindustan Times … with ETHOS co-branding 32
Slide 34: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : KDDL Limited CIN : L33302HP1981PLC008123 CIN : U74140MH2010PTC204285 Mr. Ritesh Agrawal Mr. Shogun Jain/ Mr. Shrenik Shah ritesh.agrawal@ethoswatches.com +91 77383 77756 / +91 9664 764465 shogun.jain@sgapl.net / Shrenik