Raymond Limited · NSE:RAYMOND
Raymond — Investor Presentation (November 2021)
45 slides from Raymond's investor presentation, November 2021
Slide 1: Raymond Group Investor Briefing Presentation
Raymond Group Investor Briefing Presentation November 2021
Slide 2: Group Introduction
mM raymond Group Introduction
Slide 3: 95+ year old diversified group with strong presence across sectors
95+ year old diversified group with strong presence across sectors Suiting Shirting Apparel Retail Presence Garmenting Tools and Auto Real Estate Denim FMCG Hardware Components 3
Slide 4: Group Values
Group Values Trust • One of India’s most trusted textile & apparel brands with near 100% awareness • Strong relationships with stakeholders over last 9 decades Quality • Recognized for its innovation and high-quality product offerings • Loyal consumer base spanning domestic and international markets
Slide 5: Group Overview
Group Overview Group Size • Revenue exceeding ₹ 8,000 Cr Manufacturing • State-of-the-art 19 manufacturing facilities at strategic locations in India and 1 in Ethiopia Employment • Workforce of 30,000+ Reach • Wide reach in 600+ towns & cities in multiple businesses in India • Global footprint in 90
Slide 6: Commands Market Leadership across our Businesses
Commands Market Leadership across our Businesses Suiting Shirting Apparel Garmenting ~65% market share in Largest Branded player in Amongst top 3 Largest exporter of men’s worsted suiting shirting fabrics menswear players suits, jackets & Denim Tools & Hardware Auto Components Denim FMCG #1 brand in
Slide 7: Manufacturing Excellence Fabric & Garmenting
Manufacturing Excellence Fabric & Garmenting Suiting Shirting Denim Garmenting Manufacturing world’s Manufacturing world’s Manufacturer of high End to end integrated finest fabric finest fabric quality denim fabrics & garment manufacturer of 250s – worsted suiting 340s – cotton fabric garments to to
Slide 8: Manufacturing Excellence Engineering, FMCG & Real Estate
Manufacturing Excellence Engineering, FMCG & Real Estate Tools & Hardware Auto FMCG Real Estate #2 Global supplier of Steel One of the leading global Amongst the top player in • Fast paced construction Files players in Ring Gears India’s Sexual wellness activity category • Acceptance of design End t
Slide 9: Domestic presence
Domestic presence One of the largest asset-light distribution network in multiple businesses Branded 20,000+ POS Textiles Branded 8,000+ POS Apparel Retail 1,400+ stores | ~80% franchisee (2.3 mn sq. ft ) Tools and ~1.5 lakh POS Hardware FMCG 6.5 lakh+ POS Pan-India network in over 600 towns & citie
Slide 10: International Presence
International Presence Global Footprint in 90+ Countries through diversified businesses India North Asia America Europe Dubai Ethiopia South America Africa Australia ~50 retail stores in overseas location Overseas Store Location Manufacturing Location * Legends represent indicative store locations;
Slide 11: Our Brands
Our Brands - Home grown portfolio of renowned brands with high recall value Branded Textile Branded Apparel FMCG Real Estate Engineering Presence in Africa & Asia through multiple sub- Umbrella Brand brands 11
Slide 12: Raymond Group led by
Raymond Group led by Gautam Hari Singhania Chairman and Managing Director Raymond Limited S L Pokharna Rajeev Bakshi Ravi Uppal Director - Raymond Ltd Non Executive Chairman Non Executive Chairman Raymond Consumer Care Limited Ring Plus Aqua Limited and JK Files & Engineering Ex – Metro, Pepsi and C
Slide 13: Management Team
Management Team S L Pokharna Amit Agarwal K A Narayan Jatin Khanna Director - Raymond Group CFO President – HR Head – Corporate Development Ltd Ex- JSW, Jet Airways, Ex- Wockhardt Ex- Max Financial Services Essar Group Ganesh Kumar Hemant Lakhotia Balasubramanian V COO – Lifestyle CEO – Tools & Hard
Slide 14: FY21 Highlights
mM raymond FY21 Highlights
Slide 15: FY21 Highlights: A year of Financial Prudence
FY 21 Highlights: A year of Financial Prudence In a challenging year, key things that went well ~3x sales in H2 vs H1 Opex reduced by 887 cr NWC reduced by 738 cr Amount (₹ Cr) 2,694 2,207 1,855 40% ~3X 1,320 1,117 954 H1 FY21 H2 FY21 FY 20 FY 21 FY 20 FY 21 Revenue – Progressive Recovery in Consu
Slide 16: Net Debt reduction driven by Free Cash Flows
Net Debt reduction of ₹ 443 cr driven by Free Cash Flows Amount (₹ Cr) Q-on-Q Net Debt Reduction Improvement in Debt Mix Liquidity Maintained 1,859 1,827 1,817 83% 1,583 1,416 608 660 571 596 592 21% Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Mar-20 Mar-21 Mar-20 Jun-20 Sep-20 Dec-20 Mar-21 Net Debt Long Te
Slide 17: Q2FY22 Highlights
mM raymond Q2FY22 Highlights
Slide 18: Q2FY22 Highlights: Strong profitable growth
Q2FY22 Highlights: Strong profitable growth Growth across all businesses in Q2 Revenue ~2x growth (YoY) EBITDA% higher than pre-covid levels Amount (₹ Cr) 12.4% 13.4% 1,913 ~2X 1,583 732 -7.1% Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY20 Q2 FY21 Q2 FY22 FCF led Net Debt reduction (QoQ) • Strong resurgence in dom
Slide 19: Current Trends - Lifestyle
mM raymond Current Trends - Lifestyle
Slide 20: Indian consumerism is back
Indian consumerism is back Growing Economy Rise in Wedding Uptick in Consumer Ease of Restrictions China + 1 Strategy related Demand Sentiments • Adopted by • Strong Marriage • Increased job • >1 bn population global brands Expected growth season upto May- security vaccinated • 9.5% in 2021 & 2022 •
Slide 21: Branded Textiles: Sustain growth through Product & Service Innovation
Branded Textiles: Sustain growth through Product & Service Innovation Product Innovation New Collections Suiting: Re-engineered Product offering to wool rich blends o Stretch Collection (Spanax) o Sustainable Collection Shirting: Collection focus on new trends and fashion o Casual Collection (Vibe
Slide 22: Service innovation: Driving Fashion Services by Bringing our Stores to Customers
Service innovation: Driving Fashion Services by Bringing our Stores to Customers Fashion Services 22
Slide 23: Continued Focus on Improving Margins
Continued Focus on Improving Margins Focus on Minimizing the Premiumization impact of rise in RM prices Optimizing Continuing Channel mix cost saving initiatives 23
Slide 24: Branded Apparel: Sustain Profitable Growth Momentum
Branded Apparel: Sustain Profitable Growth Momentum Key Initiatives Undertaken Growth Enablers Widening product portfolio Store Rationalization o New launches in core portfolio o Increase casualization Cost Optimization o Category extension through Ethnics Increase online / omni share o ~50% of
Slide 25: Focusing on Core product portfolio through New Launches
Focusing on Core product portfolio through New Launches Pro-Tech Shirts 3-in-1 • Wrinkle-Resistant shirts • Stay-White Shirts • Supima • Protection from UV rays, Body Odor • Premium Supima – Golf Polos • Luxurious Essentials and unexpected water spills • High IQ polos – No fade color • Special Occas
Slide 26: Widening product portfolio through Casualization
Widening product portfolio through Casualization New range portfolio Sustainable Collection Upcoming trends • Advanced flexi and auto fit range • Premiumization of the Products • Enhancing Formals range - Wrinkle Free and Creaseless • Sustainable fashion • Active formal workwear in knit bases 26
Slide 27: Widen product portfolio through category extension in Ethnics
Widen product portfolio through category extension in Ethnics Leverage channel strength of TRS network, LFS, selective partnering with MBO & online portals 2x expansion of EBO network by next year, from current 28 stores Optimal portfolio mix of core ethnics (wedding) & smart ethnics (Casual)
Slide 28: Improving margins led by
Improving margins led by Optimizing Increase Operational Channel mix Efficiency Maintain Improving Profitability in Sell-through Online Channel 28
Slide 29: Garmenting: Continue to maintain growth momentum in Exports
Garmenting: Continue to maintain growth momentum in Exports Growth Enablers New Products Strong demand from US & Europe China + 1 strategy by global brands Acquiring new customers through o Product innovation and adjacencies o Cross selling through vertical integration Maintain critical supp
Slide 30: Real Estate
mM raymond Real Estate
Slide 31: Raymond Realty
Raymond Realty Ventured into the Real Estate business in 2019 Under Total 10 towers with ~2.8 mn sq.ft of saleable area Implementation Total units planned for sale: 3,146 | 2BHK: 2,503; 1BHK: 643 ~70% of inventory launched sold: 1,555 units KPI’s Value of bookings: ₹ 1,494 cr (Sep-21) Cust
Slide 32: Significant Achievements
Significant Achievements Cash flow surplus operations First 3 towers ahead of RERA delivery schedule by ~24 months 25% market share in our micro market in Thane* Awarded on several parameters by apex industry bodies Fastest Growing Realty Brand Best Selling Project of the Ten X Habitat Iconic Develo
Slide 33: Currently under implementation – Ten X Habitat
Currently under implementation – Ten X Habitat Tower No 1 - 5 – Current picture Tower No 6 -10 – Current picture Reference Image – Central Amenities Reference Image – Building Elevation 33
Slide 34: Excellence
Key Contributing Factors Success of current operations Strong Acceptance of Experienced professional team Raymond Brand Excellence Trust Strong execution capabilities Focused on delivering value with manufacturing mindset based offering Quality 34
Slide 35: Market Environment – Long Term Trends
Market Environment – Long Term Trends Unsold Inventory at it’s lowest – Low supply side pressure Home loan rate lowest in 2 decades – Favourable for demand 7,50,000 6,40,000 (~ 2 yrs) 7% Affordability highest in last 2 decades - Favourable for demand Share of organized developers nearly doubled Time
Slide 36: Future Development - Upcoming Launches
Future Development - Upcoming Launches Premium Project Foraying into West one Park Commercial Development ~3 acre of housing (1 mn sq. ft) over ~4.5 acres development land at Thane 36
Slide 37: Key Drivers
Key Drivers Raymond Brand Skill Set Strong recall, positive Experienced team consumer experience with proven track in realty record Success of Raymond Realty Sectoral Tailwind Scalable Business Model Cyclical uptick with Growth through JD, focused macro factors aligning geography 37
Slide 38: Expansion
Expansion 2021 Market share Capture significant market share in next five years across MMR Expansion Plan • More offerings in Thane • Expansion through JD route 2026 • Evaluating several proposals • Initial focus is on MMR region • Potential revenue of ₹ 1,000+ cr from each project 38
Slide 39: Engineering Business: Continue Profitable growth momentum
Engineering Business: Continue Profitable growth momentum Tools & Hardware Auto Components Domestic Market: Domestic Market: • Pickup in manufacturing & construction sectors • Progressive recovery in CV led by construction & infrastructure activities • Increasing orders from government • Expect rebo
Slide 40: Business Consolidation
mM raymond Business Consolidation
Slide 41: Update on Strategic Initiatives
Update on Strategic Initiatives Consolidation of Subsidiarisation of Consolidation of B2C business Engineering business Real Estate business incl. Apparel into Raymond Ltd Synergy in: Leads to: Synergy in: • Business Development • Differentiated Focus • Design & Innovation • RM Sourcing & Logistics
Slide 42: Outlook
Outlook Expect to achieve pre-covid levels of revenue in H2FY22 On track to achieve cost rationalization of ₹ 300 cr in FY22 as compared to FY20 Aim to become a net debt free company in next 3 years 42
Slide 43: Disclaimer
Disclaimer • The particulars of this presentation contain statements related but not limited to revenues, financial results and supplemental financial information which has been compiled by the management, not to be construed as being provided under any legal or regulatory requirement and are not in
Slide 44: Thank You
C | ) gir Raymond Thank You
Slide 45: Questions and Answers
C | ) gir Raymond Questions and Answers