Renaissance Global Limited · NSE:RGL
Renaissance Global — Q4 FY19 Earnings Presentation
35 slides from Renaissance Global's earnings presentation, May 2019
Slide 1: Renaissance Global Limited Investor Presentation May 2019
RENAISSANCE GLOBAL LIMITED INVESTOR PRESENTATION MAY 2019 1
Slide 2: Discussion Summary
Discussion Summary 1 Company Overview 2 Business Strategy & Outlook 3 Q4 & FY19 Results 4 Annexure 2
Slide 3: Overview
RENAISSANCE GLOBAL LIMITED OVERVIEW A global luxury company growing through : Valued partnerships with leading retail brands in the world’s top markets Proven history of successful synergistic acquisitions Robust and disciplined balance sheet to fuel future growth 3
Slide 4: Largest Supplier of Branded Jewellery To Leading Global Retailers
Largest Supplier of Branded Jewellery To Leading Global Retailers India’s Largest Exporter of Gem-Set Strong Design Capabilities Jewellery • GJPEC Award for “Largest Exporter of • ~95% of sales based on in-house designs Studded Metal Jewellery” for 7th time in 2017 • ~12,000 new designs developed in
Slide 5: Established Partner to Global Jewellery Retailers
Established Partner to Global Jewellery Retailers • 151 member design team based in US, UK, Hong Kong, Dubai & Mumbai Strong Design • Design bank of over 200,000 styles built over two decades Team With • Over 12,000 new designs launched every year based on international trends Expertise on • Partner
Slide 6: State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce
State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce Manufacturing Facilities in Maharashtra & Gujarat • Robust manufacturing setup in 166,000 sq. ft. across 8 manufacturing facilities with 2,916 skilled employees • Global standard manufacturing technologies including Casting, CNC
Slide 7: Global Marketing Presence To Serve Key Jewellery Markets
Global Marketing Presence To Serve Key Jewellery Markets Western Europe DUBAI Verigold Jewellery Acquired in 2016 (UK) Ltd (Founded in 2009) USA • Renaissance Jewellery NY Inc (Founded in 2007) • Jay Gems INC (Acquired in 2018) MIDDLE EAST INDIA Verigold Jewellery SEEPZ (Mumbai) DMCC Started in 2000
Slide 8: Preferred Partner to Marquee Global Retailers Across The World
Preferred Partner to Marquee Global Retailers Across The World 50+ Customers 10+ Year Relationships with Minimal Credit Risk Due Across USA, UK & Diversified Customer Base to Stable Clientele & Top 10 Customers Middle East Disciplined Credit Terms E-Commerce/ Television Specialty Jewellers Multi-Bra
Slide 9: Business Strategy & Outlook
RENAISSANCE GLOBAL LIMITED BUSINESS STRATEGY & OUTLOOK 9
Slide 10: Business Strategy & Outlook
Business Strategy & Outlook Increasing Sales Of • Grow branded jewellery sales through Disney and Hallmark licensing agreements, leading to increased customer Licensed Brands In wallet share and market penetration Existing Markets • Develop new products under Disney license – Mickey, Minnie and Star
Slide 11: Organic & Inorganic Growth
Organic & Inorganic Growth Vogue DMCC • Renaissance Jewellery DMCC acquired Vogue DMCC in 2016. • Vogue DMCC specialises in manufacturing and wholesaling of plain gold jewellery in the Middle East. • Renaissance leveraged the Vogue DMCC distribution network to expand sales of Renaissance products in
Slide 12: Entry into Branded Jewellery Through Acquisition of Jay Gems
Entry into Branded Jewellery Through Acquisition of Jay Gems • Branded jewellery is the fastest growing segment of the jewellery business. • This growth is predicated due to De Beers reducing marketing spends on Generic diamond jewellery • Renaissance acquired Jay Gems INC in FY 2018-19. Jay Gems ha
Slide 13: Global Expansion of Branded Jewellery Products
Global Expansion of Branded Jewellery Products • To capitalise on the international appeal of the Disney brand, Renaissance has acquired exclusive licenses for the Middle East, China, India, South Africa, the Philippines, Malaysia and Singapore. • Due to the success of the ‘Enchanted Disney Fine Jew
Slide 14: Current Brand Portfolio and Benefits of the Branded Play
Current Brand Portfolio and Benefits of the Branded Play Benefits of Branded Jewellery Sales Licensing Agreement with Disney Licensing Agreement with Hallmark Superior product positioning and deeper customer relationships Increased competitiveness through design exclusivity Higher value addition and
Slide 15: The Two Brands: Reach & Opportunities
The Two Brands : Reach & Opportunities Enchanted Disney Fine Jewelry Hallmark Diamonds • Introduces one of the world’s best loved brands to the fine jewellery • Hallmark has a global presence in more than 100 countries market • Top 2% of Brands (2017 Equitrend/Harris Interactive) • Successful distri
Slide 16: Verigold Jewellery DMCC Strategic Investment in Joint Venture with Bennett, Coleman
• Verigold Jewellery DMCC will make a strategic investment of Rs. 200 Mn in a joint venture with Bennett, Coleman and Company Limited. • A joint venture to launch a retail jewellery brand in India • Renaissance Global upon conversion of the Debenture will own 51% of the joint venture • Bennett, Cole
Slide 17: Irasva jewellery brand
• Irasva's gold and diamond jewellery celebrates the modern woman’s love for self and love of expression • ‘Irasva’ is a combination of “ira” meaning enjoyment and “sva” meaning self in Hindi. • The Irasva brand invites women to indulge in self love. • Irasva jewellery inspires every woman to create
Slide 18: Geographical Diversification Through Entry Into New Markets
Geographical Diversification Through Entry Into New Markets Robust Sales Growth & Geographical Diversification Achieved Over FY16 to FY19 Driven by Entry in GCC Market 25,718 8% 25% 18% 21% 30% 25% 35% 18,110 8% 14,734 38% 13,193 62% 57% 57% 41% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 North America
Slide 19: Financial Strength Driving Business Growth (Consolidated)
Financial Strength Driving Business Growth (Consolidated) Leverage (Rs Mn) Working Capital Analysis 0.92 154 145 0.54 0.51 0.51 137 0.41 129 6,648 118 5,109 5,578 139 141 3,991 4,615 135 115 144 6,147 2,175 1,882 2,629 2,857 69 69 59 57 53 -63 -73 -65 -54 -43 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17
Slide 20: Limited Exposure to Currency & Commodity Fluctuations
Limited Exposure to Currency & Commodity Fluctuations Business Offers Significant Natural Hedge Leading to Limited Exposure to Currency & Commodity Risk The Company’s functional Currency is USD since majority of the Healthy EBITDA Growth & Stable EBITDA Margin over Last 5 Years business transactions
Slide 21: Q4 & FY19 Results
RENAISSANCE GLOBAL LIMITED Q4 & FY19 RESULTS 21
Slide 22: Q4 & FY19: Key Highlights
Q4 & FY19: Key Highlights Q4 FY19 YoY Analysis In Rs Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 7072 3.2% 2.7% 1.8% 1.8% 191 129 4,505 146 83 57% 30% 54% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 FY19 YoY Analysis Total Income EBITDA & EBITDA Margin PAT & PAT Margin 5.5% 5.2% 3.5%
Slide 23: Q4 & FY19: Segment Analysis
Q4 & FY19: Segment Analysis Q4 FY19 YoY Analysis Studded & Plain Gold Jewellery Geographical Mix Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 22% 25% 5% 22% 47% 34% 61% 78% 75% 31% Studded Jewellery Plain Gold Jewellery N. America Middle East Others FY19 YoY Analysis FY18 FY19 FY18 FY19 8% 27% 26% 21% 41% 35% 57
Slide 24: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs Mn) Q4 FY19 Q4 FY18 YoY % FY19* FY18* YoY % Revenue From Operations 6,965.6 4,486.2 55.3% 25,717.5 18,109.6 42.0% Other Income 105.9 18.4 115.7 373.9 -69.1% Total Income 7,071.5 4,504.6 57.0% 25,833.2 18,147.0 42.3% COGS 5,877.6 3,892.1 51.0% 2
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In Rs Mn) Mar-19 Mar-18 Particulars (In Rs Mn) Mar-19 Mar-18 Shareholder's Funds Non-Current Assets Equity Share Capital 186.8 186.8 Fixed Assets – Tangible & Intangible 821.1 490.0 Reserves & Surplus 6,460.1 5,304.1 CWIP & Intangibles under development 1.1 29
Slide 26: Annexure
RENAISSANCE GLOBAL LIMITED ANNEXURE 26
Slide 27: Key Milestones
Key Milestones • Licensing agreement with Hallmark • Set up Renaissance Jewelry NY Inc • Acquired the assets of VOGUE DMCC • Set up Verigold Jewellery UK • Acquired Jay Gems Inc • Renaissance Jewellery Ltd went public with • EBITDA crosses Rs 1,000 Mn Rs 800 Mn IPO 2006-10 2016-18 • Acquired Mayur G
Slide 28: Experienced Management Team
Experienced Management Team Niranjan Shah, Chairman • Associated with the company since inception • Over 4 decades of experience in the gems & jewellery industry • Responsible for the overall strategic planning and decision making Sumit Shah, Vice Chairman Hitesh Shah, Managing Director • 22 years o
Slide 29: Experienced Independent Directors: Strong Corporate Governance
Experienced Independent Directors: Strong Corporate Governance Veer Kumar Shah, Independent Director (ICAI, 1969; ) • Practicing Chartered Accountant with more than 4 decades of experience • Expert in Accounting, Auditing , Taxation, Company Law matters, Arbitration matters and management consultanc
Slide 30: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs Mn) FY19** FY18** FY17* FY16 FY15 Revenue From Operations 25,717.5 18,109.6 14,734.5 13,195.8 12,764.4 Other Income 115.7 373.9 179.7 41.9 181.9 Total Income 25,833.2 18,147.0 14,914.2 13,237.7 12,946.3 COGS 21,150.1 15,105.5 11,577.4 9,959.1 9
Slide 31: Financial Summary
Financial Summary In Rs Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 25,833 5.8% 6.3% 5.9% 5.5% 5.2% 3.6% 3.5% 3.1% 3.3% 3.3% 18,147 1,342 14,914 1,005 841 12,946 13,238 883 752 828 638 474 495 405 ** FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17* FY18 ** FY19 Leverage
Slide 32: Operational Summary
Operational Summary Geographical Mix Studded Jewellery vs. Plain Gold Jewellery 100% 15% 27% 26% 8% 18% 21% 50% 100% 100% 30% 30% 85% 73% 74% 35% 1% 25% 0% 8% FY15 FY16 FY17 FY18 FY19 38% Studded Jewellery Plain Gold Jewellery Seasonality 69% 62% 20% 24% 27% 25% 27% 57% 57% 41% 34% 42% 35% 34% 32% 2
Slide 33: Awards
Awards 2001 2008 2012 SEEPZ-SEZ Star GJEPC Award for GJEPC Award for Award largest exporter of largest exporter of studded metal studded metal jewellery jewellery 2005 2009 2015 WM Int’l Supplier of Emerging India GJEPC Award for the Year Award largest exporter of studded metal jewellery 2006 2011 2
Slide 34: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Jewellery Limited (“Renaissance” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operation
Slide 35: Thank You
RENAISSANCE GLOBAL LIMITED THANK YOU For any investor queries, reach out to RENAISSANCE GLOBAL LTD. RENAISSANCE GLOBAL LTD. DICKENSON SEAGULL IR Abhijit S. Karandikar G. M. Walavalkar Aakash Mehta Manager – Investor Relations Compliance Officer Email: Aakash.Mehta@dickensonir.com Mob: 098706 79263 I