Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY2020 Earnings Presentation
39 slides from Vaibhav Global's earnings presentation, Jan 29, 2020
Slide 1: Cover letter to stock exchanges: Financial Results Presentation
(,~ '" VAIBHAV GLOBAL LIMITED Date: 29st January, 2020 Ref: VGl/CS/2020/18 BSE Limited National Stock Exchange of Phiroze JeejeeBhoy Towers, India Limited (NSE) Dalal Street, Exchange Plaza, C-l, Block G, Mumbai - 400001 Bandra Kurla Complex, Scrip Code: 532156 Bandra, Mumbai - 400051 Symbol: VAIBHA
Slide 2: Financial Results Presentation – Q3 & 9M FY2020
Global Retailer of Fashion Jewellery, Accessories and Lifestyle products on Home Shopping TV and Vaibhav Global Limited e-Commerce Platforms Financial Results Presentation – Q3 & 9M FY2020
Slide 3: Forward-looking statements disclaimer
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 materially fro
Slide 4: Key metrics at a glance
Rs.563cr 99.2mn TV Homes Directly Revenue Accessed (*FTE) Rs.92cr 353,145 Unique Customers EBITDA *TTM Rs.66cr 2.9mn Products Sold PAT On TV and Web 25% 30 Avg. Quantity per ROE *TTM Customer *TTM ROCE *TTM 43% ASP *YTD $26.7 *ROE – based on average net-worth *ROCE – based on average capital employe
Slide 5: Vertically-integrated fashion retailer
Vertically- End-to-end B2C business model Shop LC and 99.2 million (FTE) households on TV shopping integrated Significant geographical cost arbitrage TJC are brands in the US and UK Proprietary TV home-shopping and e- Growing online presence fashion retailer commerce platforms with strong Improving
Slide 6: Table of Contents
Table of Contents Q3 & 9M FY20 Financial Business Financial 06 Performance 14 Background 22 Performance Trends Details Investor Presentation January 2020 5
Slide 7: Q3 & 9M FY20 Financial Performance
Q3 & 9M FY20 Financial Performance
Slide 8: Q3 FY20 Highlights
Q3 FY20 Highlights Shop LC (US) commenced broadcasting shows on Amazon Live Integrated Pixlee with Shop LC (US) website for user-generated content sharing TJC (UK) shopping app launched on apple store for iPad TJC (UK) HD channel launched on Freeview platform in UK o This is in addition to the stand
Slide 9: MD's Message
“I am delighted to share that we have once again delivered strong revenue and earnings growth MD’s Message during the holiday season. Q3FY20 recorded highest ever revenues and profits at Rs. 563 crore and Rs. 66 crore respectively on the back of strong growth in both the retail geographies of US and
Slide 10: Financials – Q3 & 9M FY20 Performance (Revenue Breakdown)
Financials – Q3 & 9M FY20 Performance (Revenue Breakdown – Rs. crore) Fashion Jewelry, Accessories & Lifestyle Products Revenue TV Sales Web Sales B2B 465 958 121 1,488 874 357 1,352 65 371 148 179 511 563 335 28 13 Q3 Q3 9M 9M Q3 Q3 9M 9M Q3 Q3 9M 9M Q3 Q3 9M 9M FY19 FY20 FY19 FY20 FY19 FY20 FY19 F
Slide 11: Revenue Breakdown - Local Currency
Financials – Q3 & 9M FY20 Performance (Revenue Breakdown - Local Currency) Shop LC (USD million) TJC UK (GBP million) 143.6 46.1 126.0 38.8 54.2 18.3 48.8 15.2 Q3 FY19 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q3 FY20 9M FY19 9M FY20 Investor Presentation January 2020 10
Slide 12: Retail Performance Trends – Q3 & 9M FY20
Retail Performance Trends – Q3 & 9M FY20 (Volume and ASP) TV Sales Sales Volume ('000s) Average Selling Price US$ 4,778 4,540 30.5 30.1 24.6 26.3 1,919 1,719 Q3 FY19 Q3 FY20 9M FY19 9M FY20 Q3 FY19 Q3 FY20 9M FY19 9M FY20 Web Sales Sales Volume ('000s) Average Selling Price US$ 21.6 21.7 3,047 2,505
Slide 13: Financials – Profits: Gross Profit and EBITDA
Financials – Q3 & 9M FY20 Performance (Profits – Rs. crore) Gross Profit Gross Margin (%) Gross Profit Gross Margin (%) 64.0% 61.8% 62.4% 62.0% 327 348 844 924 Q3 FY19 Q3 FY20 9M FY19 9M FY20 EBITDA EBITDA Margin (%) EBITDA EBITDA Margin (%) 16.3% 14.5% 13.9% 12.6% 71 92 171 216 Q3 FY19 Q3 FY20 9M F
Slide 14: Financials – PAT and EPS
Financials – Q3 & 9M FY20 Performance (Profits – Rs. crore) PAT PAT Margin (%) PAT PAT Margin (%) 11.6% 10.1% 10.3% 8.9% 53 66 122 151 Q3 FY19 Q3 FY20 9M FY19 9M FY20 EPS (Rs.) 46.28 37.33 20.16 16.11 Q3 FY19 Q3 FY20 9M FY19 9M FY20 Investor Presentation January 2020 13
Slide 15: Financial Performance Trends
Financial Performance Trends
Slide 16: Financials Performance Trends – Revenue
Financials Performance Trends (Revenue breakdown - Rs. crore) Revenue 1,814 1,436 1,571 1,488 1,276 1,352 FY16 FY17 FY18 FY19 9M FY19 9M FY20 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 1,157 510 465 931 972 997 874 958 373 357 190 201 274 122 147 121 223 65 FY16 FY17 FY18 FY19 9M 9M F
Slide 17: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 5,854 5,877 5,737 6,275 27.0 30.1 4,778 24.4 24.9 26.4 26.3 4,540 FY16 FY17 FY18 FY19 9M 9M FY16 FY17 FY18 FY19 9M 9M FY19 FY20 FY19 FY20 Web Sales Sales Volume ('000s) Average Selling Price US$ 3,522 20.4 20.7 20.5 21
Slide 18: Financials Performance Trends – Gross Profit and EBITDA
Financials Performance Trends (Profits – Rs. crore) Gross Profit Gross Margin (%) 62.5% 63.0% 60.1% 59.6% 62.4% 62.0% 804 865 936 1,133 844 924 FY16 FY17 FY18 FY19 9MFY19 9MFY20 EBITDA EBITDA Margin (%) 12.0% 14.5% 10.1% 12.6% 7.1% 5.9% 75 102 159 217 171 216 FY16 FY17 FY18 FY19 9MFY19 9MFY20 Invest
Slide 19: Financials Performance Trends – PAT and EPS
Financials Performance Trends (Profits – Rs. crore) PAT PAT Margin (%) 8.5% 10.1% 7.2% 8.9% 4.5% 3.1% 40 65 113 154 122 151 FY16 FY17 FY18 FY19 9MFY19 9MFY20 EPS (Rs.) 47.27 46.28 37.33 34.55 19.85 12.27 FY16 FY17 FY18 FY19 9MFY19 9MFY20 Investor Presentation January 2020 18
Slide 20: Financial Performance Trends – Balance Sheet
Financial Performance Trends (Balance Sheet - Rs. crore) Shareholders’ Equity Fixed assets including intangibles ** 777 ** 158 697 129 126 550 120 117 379 434 FY16 FY17 FY18 FY19 9MFY20 FY16 FY17 FY18 FY19 9MFY20 55 Net Debt Net Assets *** 6 417 399 ** 407 (13) 305 314 (181) (212) FY16 FY17 FY18 FY1
Slide 21: Financial Performance Trends – Cash Flow
Financial Performance Trends (Cash Flow – Rs. crore) Operating Cash flow Free Cash Flow 170 193 115 143 58 61 88 70 18 36 (10) (59) FY16 FY17 FY18 FY19 Q3FY20 9MFY20 FY16 FY17 FY18 FY19 Q3FY20 9MFY20 Operating Cash Flow: PBT+ Depreciation-(Changes Free Cash Flow: Operating Cash Flow – Capital in wor
Slide 22: Financial Performance Trends – Key Ratios
Financial Performance Trends (Key Ratios) ROE (TTM) ROCE (TTM) 25% 25% 43% 23% 37% 16% 27% 12% 18% 13% FY16 FY17 FY18 FY19 9MFY20 FY16 FY17 FY18 FY19 9MFY20 Note - ROE – based on average net worth ROCE – based on average capital employed Investor Presentation January 2020 21
Slide 23: Business Background Details
Business Background Details
Slide 24: Product Profile
Product Profile FASHION JEWELLERY FASHION ACCESSORIES LIFESTYLE PRODUCTS Bracelets Watches Home Décor Bangles Handbags Bed linens Earrings Scarves, etc. Pillow Covers Studded jewelry, etc. Beauty products Investor Presentation January 2020 23
Slide 25: Branding Initiative
Branding Initiative Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation January 2020 24
Slide 26: Sales channels: TV, e-commerce, marketplaces, social media
The Jewellery Channel, UK TV channel retail E-commerce website & Apps USA Marketplaces TV channel retail Social media E-commerce website & Apps Marketplaces Social media USA B2B Wholesale distribution Investor Presentation January 2020 25
Slide 27: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding China: Guangzhou, Haifeng, India: Hauadu Shenzhen, In-House designers & craftsmen Noida, Jaipur, Dongguan, Zhuji, Sourcing from appropriate Nagaland, Kashmir Wenzhou, Wuzhou, No middlemen micro-markets in China/Asia
Slide 28: Manufacturing
Manufacturing ISO 9001:2008 facilities in Jaipur, Rajasthan Fully-integrated building at SEZ, Jaipur - IGBC certified ‘IGBC Green Factory Building Gold’ Diamond manufacturing and sourcing unit of the company is also present in Mumbai Around 2,900 people in India across corporate, manufacturing, desi
Slide 29: TV Networks – USA
TV Networks – USA (Consumption Markets) Shop LC, USA 74.2 million households (FTE, out of 120 mn) Based out of Austin, Texas, USA 450 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions State-of-the-art auction/scheduling system; Shop LC live str
Slide 30: TV Networks – UK
TV Networks – UK (Consumption Markets) TJC, UK 25 million households (FTE, out of 25 mn) Based out of London, UK Over 250 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions State-of-the-art auction/scheduling system; TjC live stream available on
Slide 31: Retail Format: E-Commerce
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.ShopLC.com USA SAP Hybris platform Mobile App for Shop LC (IOS, Android) Pimcore – Digital Experience Platform Targeted behavioural marketing through IBM Unica platform Budget Pay EMI option available Enhanced cus
Slide 32: Early Adopters And Cord Cutters
Early Adopters And Cord Cutters High Definition And IP Expansion Into Over The Smart Tv And Streaming Broadcast Air Presence (OTA) Devices (Iptv) High Definition Broadcast Cord Cutters don’t We already have o Charter want to pay for any presence on Communication channel or satellite following Smart
Slide 33: Delivering Joy to Stakeholders: Customers and Employees
Delivering Joy to Stakeholders • High quality products Customers • Exotic designs • Lowest Price Guarantee – high quality, high affordability • Omni-channel access – available on TV, Web and Mobile platforms • Budget Pay (monthly installments) available on higher value products • Easy Returns availa
Slide 34: Delivering Joy to Stakeholders: Environment
Delivering Joy to Stakeholders Investors Year 2017 2018 2019 25% 43% Rank #219 #162 #147 ROE ROCE • Solar power projects to meet ~45% of the total power Environment requirement at the manufacturing facilities in Jaipur (current + planned solar power project) • Invested in sewage treatment, recycling
Slide 35: Management Team
Management Team Mr. Sunil Agrawal Puru Aggarwal Managing Director Group Chief Financial Officer An MBA from Columbia University, NY (USA), Sunil Over 27 years of rich experience in business modeling, established Vaibhav in 1980 as a first generation financial strategy & planning, business developmen
Slide 36: Management Team
Management Team Jeff Allar Srikant Jha Group Senior Vice President, Human Resources Managing Director - TJC, UK Over 30 years of work experience at major international companies including IBM, Unilever and the Stonyfield Farm Srikant Jha is a B.Com graduate and has done his MBA in unit of Groupe Dan
Slide 37: Management Team
Management Team Raj Singh Vivek Jain Vice President, Supply Chain, VGL Group Senior Director, Finance – VGL Group Mr. Raj Singh is a graduate in Chemistry and trained in A Chartered Accountant with over 16 years’ experience in Mechanical Maintenance. He began his career with Shrenuj & Finance, Banki
Slide 38: Contact Information
Contact Information For more information on Puru Aggarwal Vaibhav Global Limited Vaibhav Global Limited, +91-141-2770648 Dipti Rajput please contact: Puru.Aggarwal@vglgroup.com Dipti.Rajput@vglgroup.com Shiv Muttoo CDR India +91 22 6645 1207/1220 Karl Kolah shiv@cdr-india.com karl@cdr-india.com Inve
Slide 39: Thank You
Thank You