Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q1 FY2019 Earnings Presentation
32 slides from Vaibhav Global's earnings presentation, July 2018
Slide 1: Vaibhav Global Limited Financial Results Presentation Q1 FY2019
Vaibhav Global Limited Global Retailer of Fashion jewellery and Lifestyle Accessories on Home shopping TV and e-Commerce Platforms Financial Results Presentation Q1 FY2019 Jul 2018
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 • 86 million (FT
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 Q1 FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 5
Slide 6: Key Highlights for Q1 FY19
Key Highlights for Q1 FY19 Home TV Network Reach in 86 Mn Households across US and UK • 86 million households on full time equivalent (FTE*) basis • 61 million households in the US • 25 million households in the UK Q1 FY19 Retail Volumes at 1.97 Million Units, 3.4% YoY and overall ASP* at $25.7, up
Slide 7: Chairman’s Message
Chairman’s Message Commenting on Q1 FY19 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “I am happy to share that we have begun FY19 with continued sales growth traction. Q1 revenue grew by a strong 17.5% to Rs. 386 crore with gross margins of 60%, while EBITDA
Slide 8: Financials – Q1 FY19 Performance (Revenue Breakdown)
Financials –Q1 FY19 Performance (Revenue Breakdown) Local currency Q1 FY 18 Q1 FY 19 % change Net Sales (Rs.Crores) LC - USD Mn 34.8 35.17 1% 386 UK - GBP Mn 8.5 11.3 33% USD Mn Q1 FY 18 Q1 FY 19 % change 328 LC - USD Mn 34.8 35.17 1% UK - USD Mn 10.9 15.37 41% Total 45.7 50.53 11% Q1 FY18 Q1 FY19 J
Slide 9: Retail Performance Trends – Q1 FY19
Retail Performance Trends – Q1 FY19 (Volume and ASP) TV Sales Sales Volume ('000s) Average selling price US$ 28.5 1,271 1,258 26.8 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 Web Sales Sales Volume ('000s) Average selling price US$ 697 20.5 18.2 655 Q1 FY18 Q1 FY19 Q1 FY18 Q1 FY19 9
Slide 10: Financials – Q1 FY19 Performance (Margins)
Financials – Q1 FY19 Performance (Margins) Rs. crore Gross Margin Gross Margin% 235.00 65.0% 64.0% 230.00 64.0% 232 225.00 63.0% 62.0% 220.00 60.1% 61.0% 215.00 60.0% 210.00 59.0% 211 205.00 58.0% 200.00 57.0% Q1 FY18 Q1 FY19 Note: Direct costs for calculation of gross profit includes material cost,
Slide 11: Financials – Q1 FY19 Performance (Profits)
Financials – Q1 FY19 Performance (Profits) Rs. crore PAT (Including Exchange) PAT % 35 9.0% 30 7.8% 8.0% 30 7.0% 25 6.0% 20 4.6% 5.0% 15 15 4.0% 3.0% 10 2.0% 5 1.0% - 0.0% Q1 FY18 Q1 FY19 EPS * Profit after tax including exchange gain(loss) fluctuation Rs. per share 34.6 19.9 9.8 9.2 5.9 5.0 Q4FY17
Slide 12: Table of Contents
Table of Contents Q1 FY19 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 12
Slide 13: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,564 1,376 1,277 1,439 1,298 328 386 FY14 FY15 FY16 FY17 FY18 Q1 Q1 FY18 FY19 Jewelry & Lifestyle Products TV Sales Rs. crore Web Sales Rs. crore B2B Sales Rs. crore 993 958 932 974 911 371 256 275 225 223 190 200 162 161 122 243 95 217
Slide 14: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes (‘000s) Average selling price US$ 28.5 26.9 26.8 23.5 23.0 24.4 24.9 6,420 6,829 5,854 5,877 5,737 1,271 1,258 FY14 FY15 FY16 FY17 FY18 Q1 Q1 FY14 FY15 FY16 FY17 FY18 Q1 Q1 FY18 FY19 FY18 FY19 Web Sales Sales Volumes (‘000s) Average selling price US$
Slide 15: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 1000 64% 65% 63% 900 61% 61% 60% 63% 59% 60% 800 61% 700 59% 600 57% 500 55% 400 53% 300 51% 200 49% 100 789 838 804 865 929 211 232 47% 0 45% FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 Note: Direct costs for calculation of gr
Slide 16: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 160 12% 12% 140 10% 120 8% 7.8% 100 7.2% 8% 80 113 6% 4.5% 4.6% 60 3% 4% 40 2% 20 15 153 103 40 65 30 0 0% FY14 FY15 FY16 FY17 FY18 Q1 FY18 Q1 FY19 * Profit after tax including exchange gain(loss) fluctuation. Rs. per share EPS
Slide 17: Financial Performance Trends (Balance Sheet)
Financial Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Fixed assets including intangibles 581 129 126 550 120 116 434 379 77 328 FY15 FY16 FY17 FY'18 Q1 19 FY15 FY16 FY17 FY'18 Q1 19 Net Debt Net Current Assets 417 55 406 305 314 6 -13 -59 231 -20 FY15 FY16 FY17 FY'18 Q1 19 FY15
Slide 18: Financial Performance Trends (Cash Flow)
Financial Performance Trends (Cash Flow) Rs. crore 129 Operating Cash flow Free Cash Flow 106 88 45 58 41 18 36 FY15 FY16 FY17 FY'18 Q1 19 FY15 FY16 FY17 FY'18 Q1 19 -10 -59 Operating Cash Flow: PBT+ Depreciation-Changes in working Free Cash Flow: Operating Cash Flow – Capital expenditure capital +
Slide 19: Table of Contents
Table of Contents Q1 FY19 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 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 Jul 2018 20
Slide 21: Branding Initiative: Developing new brands and brand ambassadors
BRANDING INITIATIVE: Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation Jul 2018 21
Slide 22: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding India In-House designers & craftsmen Noida, Jaipur, Nagaland, Kashmir No middlemen Access to latest manufacturing technology Indonesia Scale Flexibility Bali, Yogyakarta, Sumatra, Madura Surabaya Low Investment Thai
Slide 23: Manufacturing
Manufacturing ISO 9001:2008 facilities in Jaipur, with capacity of producing over 6 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 Mum
Slide 24: TV Networks – USA
TV Networks – USA (Consumption Markets) Shop LC, USA 61.1 million households shopping (FTE, out of 120 mn) Based out of Austin, Texas USA Over 600 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions Successfully re-branded Liquidation Cha
Slide 25: 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
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 EMI option Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on
Slide 27: Early Adopters and Cord Cutters
EARLY ADOPTERS AND CORD CUTTERS HIGH DEFINITION AND IP BROADCAST • High Definition Broadcast • Charter Communication • AT&T • Hotwire, Cincinnati Bell • Adoption of new technology of Broadcasting • Reducing dependency on Infrastructure • Minimizing downtime as IP would broadcast it via internet EXPA
Slide 28: Management Team
Management Team Sunil Agrawal Puru Aggarwal Chairman and Managing Director Group CFO Established Vaibhav in 1980 as a first generation entrepreneur 25 years of rich experience in business modeling, financial and has led the company’s transition strategy & planning, business development, procurem
Slide 29: 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 ser
Slide 30: Management Team
Management Team Amit Agarwal Commercial Director – TJC, UK • MBA marketing with over 16 years of experience with different companies like BSL Ltd , Siddhartha Marble and VGL group in Sales and product merchandising in Jewellery and Textile category . • Managing product merchandising , planning for T
Slide 31: 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 32: Thank You
Thank You 32