Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2017 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, May 2017
Slide 1: Vaibhav Global Limited Financial Results Presentation Q4 & FY2017
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q4 & FY2017 May 2017
Slide 2: Safe Harbor
Safe Harbor 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 ma
Slide 3: Vaibhav Global – An Overview
Vaibhav Global – An Overview Vertically-integrated fashion retailer on electronic retail platforms • End-to-end B2C business model for fashion and lifestyle accessories • Proprietary TV home-shopping and e-commerce platforms Shop LC and TJC are brands with strong customer visibility • 110 million (F
Slide 4: Vaibhav Global – Reach
Vaibhav Global – Reach The Jewellery Channel, UK TV channel retail Shop LC, USA E-commerce website TV channel retail E-commerce website STS China, Hong Kong Sourcing Gemstones STS Thailand STS USA Sourcing Gemstones B2B Wholesale distribution STS Bali Sourcing Gemstones VGL India G
Slide 5: Table of Contents
Table of Contents Q4 & FY17 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation May 2017 5
Slide 6: Key Highlights for Q4 & FY17
Key Highlights for Q4 & FY17 Home TV Network Reach in over 110 Mn Households across US and UK • 110 million households on full time equivalent (FTE) basis • 85 million households in the US • 25 million households in the UK Q4FY17 Retail Volumes at 2.1 Million Units, up 16% YoY • Home TV shopping vol
Slide 7: Chairman’s Message
Chairman’s Message Commenting on Q4 & FY17 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “I am glad to share that Vaibhav Global has delivered another strong performance in Q4 with significant volume growth on both our TV and Web platforms. This, combined with
Slide 8: Financials – Q4 & FY17 Performance (Revenues)
Financials – Q4 & FY17 Performance (Revenues) Revenues (Rs. crore) 1,440 1,277 12.8% 8% 348 376 Q4 FY16 Q4 FY17 FY16 FY17 Jewelry & Lifestyle Products Web Sales Rs. crore TV Sales Rs. crore B2B Sales Rs. crore 223 250 190 7.3% 12.1% 55.7% 932 1,000 122 23.3% 74 54 60 44 244 248 22.7% 2% Q4 FY16 Q4 F
Slide 9: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 28.0 25.0 24.4 24.5 5,854 6,092 4% 0.4% • ‘Budget Pay’ EMI scheme and easy returns 14.6% policy led to robust sales growth 1,488 1,298 • TV volumes grew by 15% YoY in Q4 FY17 Q4 Q4 FY16 FY17 Q4 Q4 FY16 FY17 • TV ASP r
Slide 10: Financials – Q4 & FY17 Performance (Margins)
Financials – Q4 & FY17 Performance (Margins) Rs. crore Gross Profit Gross margin 1,000.00 70.0% 900.00 60.2% 63.0% 65.0% 60.6% 60.0% 800.00 700.00 60.0% • Q4 FY17 gross margin is in line with 600.00 55.0% expectations – decline is due to: 500.00 50.0% 1. Higher revenue contribution from 400.00 45.0%
Slide 11: Financials – Q4 & FY17 Performance (Profits)
Financials – Q4 & FY17 Performance (Profits) Rs. Crore PAT * PAT margin 70 6.5% 61 60 5.6% 5.5% • Q4 FY17 net margin expanded 320 bps to 50 5.6% as operating profit growth saw strong 4.3% 4.5% translation into PAT growth 40 37 3.5% 30 2.4% 21 2.9% 2.5% 20 8 1.5% 10 - 0.5% Q4 FY16 Q4 FY17 FY16 FY17 *
Slide 12: Table of Contents
Table of Contents Q4 & FY17 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation May 2017 12
Slide 13: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,298 1,376 1,440 1,277 893 FY13 FY14 FY15 FY16 FY17 Jewelry & Lifestyle Products TV Sales Rs. crore Web Sales Rs. crore B2B Sales Rs. crore 911 958 1,000 932 687 225 256 250 223 162 161 190 117 89 122 FY13 FY14 FY15 FY16 FY17 FY13 FY14 F
Slide 14: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes (‘000s) Average selling price US$ 0.4% 4% 24.4 24.5 6,420 6,829 5,854 6,092 5,239 23.5 23.5 23.0 • ‘Budget Pay’ EMI scheme and FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 easy returns policy led to volume growth while keeping realisations mostly
Slide 15: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 1000 64% 63% 900 60% 63% 800 63% 700 62% 600 61% 61% 62% • Retail gross margin is in line with 61% 500 expectations – decline is due to: 60% 61% 400 1. GBP devaluation translation to 60% 300 60% INR 200 59% 100 2. Higher rev
Slide 16: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 160 12% 12% 140 10% 120 8% 8% 100 8% 80 6% 60 4% 3% 4% 40 58 2% 20 78 153 103 40 0 0% FY13 FY14 FY15 FY16 FY17 * Profit after tax including exchange gain(loss) fluctuation. Rs. per share EPS 47.6 32.0 24.0 44.7% 17.8 12.3 FY13
Slide 17: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets -2.3% 129 126 14% 419 328 367 77 66 233 58 159 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due • During FY13 fixed asset
Slide 18: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Rs. crore Rs. crore Operating Cash flow* Free Cash Flow * 169 152 129 91 106 66 64 52 -10 -59 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 *Includes Foreign Currency Transaction Reserve *Includes Foreign Currency Transaction Reserve • Positive cash flow
Slide 19: Table of Contents
Table of Contents Q4 & FY17 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation May 2017 19
Slide 20: Product Profile
Product Profile FASHION JEWELLERY • Bracelets • Bangles • Earrings • Studded jewelry, etc. FASHION ACCESSORIES • Watches • Handbags • Scarves, etc. LIFESTYLE PRODUCTS • Home Décor • Bed linens • Pillow Covers • Beauty products Investor Presentation May 2017 20
Slide 21: Branding Initiative: Developing new in-house brands and brand ambassadors
BRANDING INITIATIVE: Developing new In-house brands and brand ambassadors for live presentation of BRANDS Investor Presentation May 2017 21
Slide 22: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding India In-House designers & craftsmen Noida, Jaipur, Nagaland, No middlemen Kashmir Access to latest manufacturing Indonesia technology Bali, Yogyakarta, Sumatra, Madura Surabaya Scale Flexibility Thailand Low Invest
Slide 23: Manufacturing
Manufacturing Four ISO 9001:2008 facilities in Jaipur, with capacity of producing 7 million 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 24: TV Networks – US & Canada
TV Networks – US & Canada (Consumption Markets) * Channel #274 * Channel #399 & 1399 * Channel #159 Channel #75 & * 226 * Shop LC, USA & Canada 85 million households shopping (FTE, out of 125 mn) Based out of Austin, Texas Over 500 people in sales & marketing, customer service, logistics, TV p
Slide 25: TV Networks – UK
TV Networks – UK (Consumption Markets) Channel #49 Channel #815 Channel #650& Channel #757 #652 The Jewellery Channel (TJC), United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of Hampton, Middlesex Over 150 people in sales & marketing, customer service, logistics, TV pr
Slide 26: E-Commerce (Consumption Markets)
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 on web Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on all
Slide 27: Early Adopters and Cord Cutters
EARLY ADOPTERS AND CORD CUTTERS HIGH DEFINITION AND IP BROADCAST • High Definition Broadcast • Charter Communication • AT&T • Adoption of new technology of Broadcasting • Reducing dependency on Infrastructure • Minimizing downtime as IP would broadcast it via internet EXPANSION INTO OVER THE AIR PRE
Slide 28: Management Team
Management Team Sunil Agrawal Puru Aggarwal Chairman and Managing Director Group CFO Established Vaibhav in 1980 as a first generation 24 years of rich experience in business modeling, entrepreneur and has led the company’s transition financial strategy & planning, business development, into a l
Slide 29: Management Team
Management Team Jeff Allar Nitin Dugar Senior Vice President, Group HR Vice President , COO – Shop LC, USA 30 years of work experience at major international Over 12 years at VGL, rich experience in business companies including IBM, Unilever and the Stonyfield development, customer services and
Slide 30: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Puru Aggarwal Vaibhav Global Limited +91-141-2770648 Puru.Aggarwal@vglgroup.com Ankit Sahay Vaibhav Global Limited +91-141-2770648 Ankit.Sahay@vglgroup.com Shiv Muttoo / Karl Kolah CDR India +91 22 6645 1207/1220 shi
Slide 31: Thank You
Thank You 31