Relaxo Footwears Limited · NSE:RELAXO
Relaxo Footwears — Q2 FY2018 Earnings Presentation
31 slides from Relaxo Footwears's earnings presentation, November 2017
Slide 1: Relaxo Footwears Limited Investor Presentation – November 2017
RELAXO FOOTWEARS LIMITED Investor Presentation – November, 2017 1
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Relaxo Footwears Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secu
Slide 3: Our Strengths
Our Strengths Investor Presentation
Slide 4: Market Leaders Sold 13.5 crore Pairs in FY17
Market Leaders Products available for Every Age Group & Every Price Point Sold 13.5 crore Pairs in FY17 + 6,000 SKU’s Product Market Share of ~ 5-6% Value for Money Products Price catering to entire family Manufacturing Quality ~8 State of Art Every stage of manufacturing Manufacturing Plants with p
Slide 5: Customer Relevant Products
Customer Relevant Products Market Regular Market Sensing Exercises to understand the Consumer Research Needs across different Regional, Economic and Demographic strata Product In-house design capability enables continuous Product Innovation around functionality. Launched innovative portal for employ
Slide 6: Value for Money (VFM)
Value for Money Fashionable Comfortable Affordable “VFM” 6 Investor Presentation
Slide 7: Committed to Quality
Committed to Quality Monitor every stage of manufacturing process • Raw Materials Quality • Production Process • Packaging Control • Designing • Final Products Quality Par Excellence • ISO 9001:2008 Products are subject to: • ISO 14001:2004 Product • Random Testing • BIS/SATRA Manufacturing Certific
Slide 8: Brand Spectrum
Brand Spectrum 8 Investor Presentation
Slide 9: Brand for all Categories
Brand for all Categories Brand Overview Target Consumer Brand Ambassador Salman Khan Most Popular Brand of Rubber / Eva slippers All strata of the Society Akshay Kumar Fashionable and Light weight footwear Fashion conscious consumers A range of sports and canvas shoes, sandals Upwardly mobile and sl
Slide 10: Pan India Footprint
Pan India Footprint Relaxo Retail Stores (COCO) Jammu & Kashmir State Number of Stores Haryana Delhi Uttar Pradesh 74 Punjab Himachal Pradesh Delhi 57 Uttarakhand Punjab 38 Rajasthan Uttar Pradesh Haryana 30 Himachal Pradesh 5 Rajasthan 20 Gujarat 14 Madhya Pradesh 15 Gujarat Jammu & Kashmir 10 Maha
Slide 11: 277 COCO Stores across India Reach over ~50,000+ Retailers
Closer to Customers 277 COCO Stores across India Reach over ~ 50,000 + Retailers Online Presence – www.shopatrelaxo.com Online Shopping Websites 11 Investor Presentation
Slide 12: State-of-Art manufacturing facilities
State-of-Art manufacturing facilities Registered Office- RFL I & II- Bahadurgarh RFL III - Bhiwadi RFL IV - Bahadurgarh Rohini, Delhi RFL V - Haridwar RFL VI - Bahadurgarh RFL VII - Bahadurgarh RFL VIII - Bahadurgarh 12 Investor Presentation
Slide 13: Awards & Accolades
Awards & Accolades 13 Investor Presentation
Slide 14: Awards & Accolades
Awards & Accolades 14 Investor Presentation
Slide 15: Background & Objectives
Background & Objectives Investor Presentation
Slide 16: Evolution
Evolution 1976 : Launched Relaxo Brand 1984 : Relaxo Footwears Limited was incorporated 1995: IPO to set up a plant in Haryana 1995: Started manufacturing Footwear (rubber slippers) for the masses 2000: Expanded capacity in Haryana 173,984 2004-05: Launched ‘Flite’ and ‘Sparx’ Brands 2005: 1st COCO
Slide 17: Board of Directors
Board of Directors Ramesh Kumar Dua, Managing Director Mukand Lal Dua, Whole Time Director ▪ Over 41 years of experience in sales and marketing, production and new ▪ Over 44 years of experience in new product development and quality control product development in Footwear Industry in Footwear Indust
Slide 18: Management Team
Management Team Mr. Gaurav Dua, Mr. Ritesh Dua, Mr. Nitin Dua, Mr. Atul Pandey, Executive VP - Marketing Executive VP - Finance Executive VP - Retail VP – Human Resources MBA having over 15 years MBA having over 16 years of MBA having over 13 years of PGD – PM & IR having over of experience in Sales
Slide 19: Corporate Objectives
Corporate Objectives To Explore National and Maximize Wealth for International Markets Shareholders Product Innovation through Meet and Exceed Customer Design and Development Expectations 100% Statutory and Legal Compliance to ISO 9001:2008 Compliance and ISO 14001:2004 Optimum Utilization of Develo
Slide 20: Growth Potential
Growth Potential Investor Presentation
Slide 21: Huge Industry Potential
Huge Industry Potential Change in Consumer Habits 1 Footwear industry is turning from being a basic need to Fashion, Comfort & Performance oriented industry Increase in Discretionary Spend 2 Discretionary spend of Indian households is expected to increase in the next 4-5 years with urban masses emer
Slide 22: Supply Chain
Future Ready Manufacturing Excellence Technology & Innovation Supply Chain ▪ Lean Manufacturing ▪ SAP Compliant & Microsoft Dynamics ▪ Forward looking supply & capacity ▪ Maynard Operation Sequence Navision planning Technique (MOST) ▪ Product Development & Design Innovation ▪ Optimum Inventory manag
Slide 23: Financial Performance
Financial Performance Investor Presentation
Slide 24: Q2 FY18: Performance Highlights
Q2 FY18 : Performance Highlights Rs. in Crores Revenue EBITDA PAT +16% +17% +19% 460 62 32 395 53 27 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 EBITDA (%) PAT (%) 13.3% 13.4% 6.8% 7.0% Q2 FY17 Q2 FY18 Q2 FY17 Q2 FY18 The Financial Results for Q2 FY18 have been prepared in accordance with the In
Slide 25: Annual Performance Highlights
Annual Performance Highlights Rs. in Crores Revenue EBITDA +14.6% +22.1% 1,712 1,740 240 244 1,480 200 1,212 1,010 147 950 132 110 FY13 FY14 FY15 FY16 FY17 H1 FY18 FY13 FY14 FY15 FY16 FY17 H1 FY18 EBIT PAT +23.3% +28.6% 196 197 120 123 161 103 118 69 108 66 85 45 FY13 FY14 FY15 FY16 FY17 H1 FY18 FY1
Slide 26: Operational Efficiencies
Operational Efficiencies EBITDA (%) PAT (%) + 310 bps +290 bps 13.5% 14.0% 14.0% 14.0% 7.0% 7.0% 7.1% 7.3% 12.1% 10.9% 5.4% 4.4% FY13 FY14 FY15 FY16 FY17 H1 FY18 FY13 FY14 FY15 FY16 FY17 H1 FY18 RoCE (%) RoE (%) 28.6% 28.0% 28.0% 25.1% 23.7% 26.7% 20.9% 20.3% 21.0% 26.5% 25.2% 22.9% FY13 FY14 FY15 F
Slide 27: Debt Ratings & Profile
Debt Ratings & Profile Net Debt/Equity (x) Interest Coverage Ratio (x) 25.9 1.0 0.7 0.6 13.0 0.5 8.7 8.6 0.2 0.2 4.8 5.2 FY13 FY14 FY15 FY16 FY17 H1 FY18 FY13 FY14 FY15 FY16 FY17 H1 FY18 Credit Ratings Agency Instruments Ratings Comments Indicates very strong degree of safety for short term debt ins
Slide 28: P&L Statement – Q2 FY18
P&L Statement – Q2 FY18 Particulars (Rs. Crs) Q2 FY18 Q2 FY17 Y-o-Y Revenue from Operations 460* 395 16% Total Raw Material 207 176 Employee Expenses 52 43 Excise Duty 0 5 Other Expenses 139 119 EBITDA 62 53 17% EBITDA % 13.4% 13.3% Other Income 1 3 Depreciation 14 13 EBIT 49 43 15% EBIT (%) 10.8% 1
Slide 29: Balance Sheet – H1 FY18
Balance Sheet – H1 FY18 Particulars (Rs. Crs.) Sept – 17 Particulars (Rs. Crs.) Sept – 17 Equity Share Capital 12 Property, Plant and Equipment 454 Other Equity 650 Capital Work-in-Progress 90 Other Intangible Assets 73 Equity 662 Intangible Assets under Development 1 Financial Liabilities Financial
Slide 30: Consistent Dividend Paying
Consistent Dividend Paying 14.0 120% 12.0 100% 12.0 100% 10.0 80% 60% 8.0 7.2 50% Dividend 60% Dividend paid Rs. Crs. 50% 6.0 as a % of Face 6.0 Value 40% 40% 30% 4.0 3.0 2.4 1.8 20% 2.0 0.0 0% FY12 FY13 FY14 FY15* FY16 FY17 * Post Bonus 30 Investor Presentation
Slide 31: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Relaxo Footwears Limited Strategic Growth Advisors Pvt. Ltd. CIN: L74899DL1984PLC019097 CIN: U74140MH2010PTC204285 Mr. Vikas Tak Ms. Payal Dave / Mr. Deven Dhruva vikastak@relaxofootwear.com payal.dave@sgapl.net /deven.