Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY22 Earnings Presentation
45 slides from Vaibhav Global's earnings presentation, May 2022
Slide 1: Vaibhav Global Limited Q4 & FY22 Financial Results Presentation
Vaibhav Global Limited Global E-tailer of Fashion Jewellery, Apparels, Lifestyle Products and Accessories on TV and Digital Platforms DELIVERING JOY Q4 & FY22 Financial Results Presentation
Slide 2: MD's Message
We delivered revenue of Rs. 685 crores for fourth quarter, up by 2.9% Y-o-Y and closed the fiscal year with 8.4% revenue growth, which is in line with the guidance we set out in Q3. The revenue growth is more encouraging when we compare it with Q4 of FY20 and full year FY20 which is Commenting on Q4
Slide 3: Q4 FY22: Key Highlights
Q4 FY22 : KEY HIGHLIGHTS Revenues grew by 2.9% Y-o-Y (annual growth of 8.4% over FY21) Gross margins continue to be strong at 60% EBITDA margins in Q4 FY22, excluding Germany, were at 8.9% vs 12.8% in Q4 last year. Margins impacted owing to conscious investments in digital marketing and OTA segment
Slide 4: Table of Contents
TABLE OF CONTENTS DELIVERING JOY 1 Business Background Details 2 Highlights for the Quarter 3 Q4 & FY22 Financial Performance 4 Financial Performance Trends 5 Annexures 4
Slide 5: Business Background Details
BUSINESS BACKGROUND DETAILS Results Presentation, May 2022 5
Slide 6: Vaibhav Global Limited (VGL) at a Glance
VAIBHAV GLOBAL LIMITED (VGL) AT A GLANCE Be the Value Leader in To deliver one million Electronic Retailing of meals per day to children in VISION Jewellery & Lifestyle MISSION need by ‘FY31’ through our one for one meal program : Products ‘Your Purchase Feeds…‘ Team-Work Honesty Commitment Passion
Slide 7: Corporate Overview
CORPORATE OVERVIEW Shop LC (US), Vertically- > End-to-end B2C business model Shop TJC (UK) > Presence on integrated and Shop LC > TV Homes accessed (*FTE): ~ 124 mn - Proprietary TV home-shopping fashion retailer - Proprietary e-commerce platforms (Germany) are > Growing online presence on electroni
Slide 8: Truly Global
TRULY GLOBAL Retail Markets Shop LC | Shop TJC | Shop LC (US) (UK) (Germany) UK Germany Operate Through Marketplaces Canada US Sourcing China ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy India ▪ ▪ Tanzania Russia ▪ ▪ Turkey Poland ▪ Morocco ▪ Singapore ▪ Myanmar ▪ UAE ▪
Slide 9: Completing 25 Years of Public Listing
COMPLETING 25 YEARS OF PUBLIC LISTING Growing Consistently Top decile returns to shareholders Parameters CAGR Return FY 97 FY 22 (Rs. in crores) (25 years) (x times) Revenue 32.8 2,752.4 19.4% 84 EBITDA 4.2 303.2 18.7% 72 Profit Before Tax 4.1 242.3 17.7% 59 Profit After Tax 3.6 237.1 18.2% 66 Net W
Slide 10: Key Pillars
KEY PILLARS Results Presentation, May 2022
Slide 11: Pools of Product Verticals
2 POOLS OF PRODUCT VERTICALS Huge Opportunity: TAM of ~USD 350bn Life-Style, Home Décor, Fashion Jewellery, Beauty Care, Apparels & Gemstones & Accessories Accessories Results Presentation, May 2022
Slide 12: Vertically Integrated Supply Chain
VERTICALLY INTEGRATED SUPPLY CHAIN ASIAN BASE Serving WESTERN COUNTRIES ➢ Vertically integrated supply-chain in Asia Primary Retail Markets ➢ Low-cost manufacturing and value sourcing base ➢ Serving affluent but value-conscious customers in Western Developed Markets USA UK China Bali Thailand German
Slide 13: Omni-Channel Sales Platform
OMNI-CHANNEL SALES PLATFORM TV DIGITAL Proprietary TV channels and OTAs Proprietary Digital Platform Mobile Applications US UK GERMANY www.shoplc.com www.tjc.co.uk www.shoplc.de HH: 69.6mn 27mn 27mn* Third Party Marketplaces Social Retail OTA: 19mn 18mn Google Marketplace * Including 2mn HH in Austr
Slide 14: 4R's of Customer Engagement
4R’S OF CUSTOMER ENGAGEMENT ~124 mn 3.2 lakh (TTM) 40% (TTM) 27*(TTM) TV Diverse Products Linear / OTA Enduring relationships Expanding wallet share Digital Deep value proposition Convenience Browsers / Mobile Apps / Social Media / Cross-selling Market-places / OTT Engrossing Content Digitalization/
Slide 15: 'Delivering Joy' Through Innovation
‘DELIVERING JOY’ THROUGH INNOVATION INNOV8 FUNNEL Ideas Received Ideas Proposed A Global product Crowdsourcing of ideas YTD 11,500+ ideas to Buyers innovation and search from employees, received and 860+ new program customers and other and innovative products Ideas external stakeholders launched App
Slide 16: Constantly Reimagining Growth with New Designs & Products
CONSTANTLY REIMAGINING GROWTH WITH NEW DESIGNS & PRODUCTS Jewellery Design Gemstones ➢ Deals in 250+ gemstones including rare gemstones ➢ Widest possible global sourcing ➢ New gemstones contributing 3%-4% of group’s annual turnover ➢ Strengths: ➢ Strong team of professional designers ▪ In-house Test
Slide 17: Broad Based E-tailer
BROAD BASED E-TAILER B2C Revenues by Format B2C Revenues by Product Category TV revenues Digital revenues Jewellery Non-jewellery revenues 22% 11% 36% 37% 31% 30% 78% 64% 63% 89% 69% 70% FY17 FY21 FY22 FY17 FY21 FY22 60.4% of digital revenues in FY22 were from Mobile platform Jewellery revenues: Fas
Slide 18: Highlights for the Quarter
HIGHLIGHTS FOR THE QUARTER Results Presentation, May 2022
Slide 19: Germany: Performance Reassuring Our Investment
GERMANY: PERFORMANCE REASSURING OUR INVESTMENT Germany venture increased TAM (Total Addressable Market) by ~20% Revenue and Unique Customers Trend 900000 7000 800000 6000 700000 5000 600000 500000 4000 400000 3000 Omni-Channel Presence 300000 2000 200000 100000 1000 0 0 July August Sep Oct Nov Dec J
Slide 20: Key Recent Events
KEY RECENT EVENTS Freeview Channel Upgrade: Target for Carbon Neutrality: EVs Distribution to IGJ Award: ➢ VGL set target to become Employees: ➢ VGL conferred with ➢ Freeview Channel now at ➢ Distributed 84 Electric 2- carbon neutral in Scope 1 & 2 IGJ award for being #22 from erstwhile #50 Wheeler
Slide 21: OTT: Leveraging and Widening Digital Platform
OTT: LEVERAGING AND WIDENING DIGITAL PLATFORM Shop LC (USA) 1. Distribution: Live 3. Roku & Fire TV: Unique OTT Customers & Interactive Apps Marketing & 3,500 3,000 Engagement 2,500 2,000 1,500 1,000 500 0 Q1 Q2 Q3 Q4 2021-22 2020-21 2. Distribution: Live $20,00,000 OTT Revenue $18,00,000 $16,00,000
Slide 22: Q4 & FY22 Financial Performance
Q4 & FY22 FINANCIAL PERFORMANCE Results Presentation, May 2022 22
Slide 23: Financials – Q4 & FY22 Performance
FINANCIALS – Q4 & FY22 PERFORMANCE Revenue Breakdown – (Rs. crore) Growth vs Q4 FY20 Revenue Growth vs FY20 37.6% 38.6% 8.4% 2,752 2,540 2.9% 666 685 Q4 FY21 Q4 FY22 FY21 FY22 Fashion Jewelry, Accessories & Lifestyle Products Growth vs Q4 FY20 Growth vs FY20 Growth vs Q4 FY20 Growth vs FY20 27.
Slide 24: Financials – Revenue Breakdown in Local Currency
FINANCIALS – Q4 & FY22 PERFORMANCE Revenue Breakdown – (Local Currency) Shop LC (US) Shop TJC (UK) Growth vs Q4 FY20 Growth vs FY20 Growth vs Q4 FY20 Growth vs FY20 25.8% (USD million) 28.1% 25.2% 32.3% 4.8% (GBP million) 0.5% 80.2 80.6 234.9 246.2 2.3% 7.1% 62.7 61.2 20.0 18.6 Q4 FY21 Q4
Slide 25: Retail Performance Trends – Q4 & FY22
RETAIL PERFORMANCE TRENDS – Q4 & FY22 Volume and ASP TV Sales Sales Volume ('000s) 7,837 Average Selling Price US$ 6,998 33.4 32.6 27.9 27.7 2,050 1,659 Q4 FY21 Q4 FY22 FY21 FY22 Q4 FY21 Q4 FY22 FY21 FY22 Digital Sales Sales Volume ('000s) 5,477 Average Selling Price US$ 5,409 24.6 23.6 22.7 24.2 1,
Slide 26: Financials – Q4 & FY22 Profits
FINANCIALS – Q4 & FY22 PERFORMANCE Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA 12.8% 6.9% 15.3% 11.0% 61.2% 60.0% 62.3% 62.3% Margin (%) Margin (%) Ex-Germany: Ex-Germany: 10.7% 8.3% 30.4% 21.8% 44.7% 388 1,583 1,714 303 1.0% 85 407 411 47 Q4 FY21 Q4 FY22 FY21 FY22 Q4 FY21 Q4 FY
Slide 27: 2022: A Year of Investments
2022: A YEAR OF INVESTMENTS SEEDING INVESTMENTS FOR LONG-TERM GROWTH ➢ Major opex investments: • Web Marketing (151% ) • Marketplaces (38% ) • Increased Airtime for OTA platforms (30% ) ➢ Major capex investments (FY22: ~US$ 42 million): • Tech Infra upgradation (mobile websites and applications)
Slide 28: EBITDA Margin Walk
EBITDA MARGIN WALK Particulars % To Revenue Remarks Quarterly Yearly EBITDA 12.8% 15.3% Gross Margin (1.1%) - Product mix impact. Efficient Price management Accelerated Investment in Digital (2.4%) (2.2%) Investments for future potential and scale & Broadcasting Earlier than planned tie-ups resul
Slide 29: Cost Optimisation
COST OPTIMISATION Annual Visible Savings (FY23) Cost • Presently ~50-60% volume of US & UK catered Arbitrage: by India $ 1-2 mn Call Centre • Focus to further increase India’s share in future • Shipping: Renegotiating and evaluating new vendors Shipping & • Labour productivity Warehousing $ 2-3 mn •
Slide 30: Financial Performance Trends
FINANCIAL PERFORMANCE TRENDS Results Presentation, May 2022 30
Slide 31: Financial Performance Trends – Revenue
FINANCIAL PERFORMANCE TRENDS Revenue Breakdown – (Rs. crore) Growth vs FY20 38.6% Revenue 8.4% 5 Year CAGR: 13.9% 2,540 2,752 1,814 1,986 1,436 1,571 FY17 FY18 FY19 FY20 FY21 FY22 Fashion Jewelry, Accessories & Lifestyle Products Growth vs Growth vs FY20 FY20 32.3% 55.8% TV Revenue Digital Reven
Slide 32: Retail Performance Trends
RETAIL PERFORMANCE TRENDS Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 29.9 32.6 6,275 6,998 24.9 27.0 26.4 27.7 5,877 5,737 6,070 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 Digital Sales Sales Volume ('000s) Average Selling Price US$ 5,409 5,477 21.7
Slide 33: Financial Performance Trends – Profits
FINANCIAL PERFORMANCE TRENDS Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA Margin (%) 60.1% 59.6% 62.5% 61.6% 62.3% 62.3% 7.1% 10.1% 12.0% 13.9% 15.3% 11.0% 8.3% Margin (%) Ex-Germany: 1,714 Growth: 10.7% 1,583 CAGR: 24.3% Margins:12.7% 1,133 1,224 388 21.8% 865 936 276 303 217 159 102
Slide 34: Financial Performance Trends – Balance Sheet
FINANCIAL PERFORMANCE TRENDS Balance Sheet – (Rs. crore) Shareholders’ Equity Fixed assets including intangibles 1,127 494 964 697 751 434 550 192 126 120 117 163 FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 Net Debt Net Assets * FY17 FY18 FY19 FY20 FY21 FY22 6 540 417 399 394 395 (13
Slide 35: Financial Performance Trends – Cash Flow
FINANCIAL PERFORMANCE TRENDS Cash Flow – (Rs. Crore) Operating Cash flow Free Cash Flow 324 268 181 176 203 211 86 70 52 38 20 (214)* FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 * Planned capex towards tech-infra upgrade, warehouses automation, freeview channel upgrade in UK, new HQ
Slide 36: Financial Performance Trends – Key Ratios
FINANCIAL PERFORMANCE TRENDS Key Ratios ROE (TTM) ROCE (TTM) 32% 61% 26% 25% 23% 23% 46% 37% 16% 31% 27% 18% FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 * Return ratios reflects short-term impacts of conscious business investments, though they are at par with normal pre-covid years N
Slide 37: Annexures
ANNEXURES Results Presentation, May 2022 37
Slide 38: Updates on Digital Commerce Markets
UPDATES ON DIGITAL COMMERCE MARKETS E-com Industry facing temporary headwinds with declining sales mix in the USA and the UK US Retail & E-com Sales UK Retail & E-Com Sales Retail Sales ($ Tn) E-com as % of Retail Sales Retail Sales (£ Bn) E-com as % of Retail Sales 6.5 464.3 14.0% 439.6 436.8 423.7
Slide 39: Robust Corporate Governance
ROBUST CORPORATE GOVERNANCE RECOGNITIONS & ACCOLADES FY22 Rs. 98.2 cr Excellence Award’ for ‘IGBC Performance Challenge 2021 for Green Built Environment GPTW Best Leaders in Times of Crisis 2021 Dividend (including final dividend) Dividend Payout Policy > 20-30% of consolidated free cash flow > High
Slide 40: Sustainability Initiatives
SUSTAINABILITY INITIATIVES ENERGY WATER Solar 40.39 Lakh KWH 6100 KL Rainwater per annum harvested 3.23 MW generated in FY22 EV 84 2-Wheelers & 3 4- 7KL Water saved per day with the installation of wheelers for employee low LPM faucets commute 48KL Water recycled per day, IGBC Performance Challenge
Slide 41: Community Giveback
COMMUNITY GIVEBACK > Till date Served 63 million (13mn in FY22) Social Initiatives meals to underprivileged children through flagship Providing resources for healthcare services: One for One Program, Your Purchase > Distributed 117 Oxygen Concentrators, 31 BIPAP and other key medical equipment in ho
Slide 42: VGL Shareholder Base: As on 31-March-2022
VGL SHAREHOLDER BASE: AS ON 31-MARCH-2022 Holding as on Shareholding Pattern Key Shareholders (Holding >1%) 31-March-22 Promoter & Promoter Group 58.08% Others 7.97% Nalanda India Fund Limited (FII) 10.24% Individual - >1% 4.01% Motilal Oswal Flexi Cap Fund (MF) 6.78% AIF 1.46% Malabar India Fund Li
Slide 43: Management Team
MANAGEMENT TEAM Mr. Sunil Agrawal Mr. Vineet Ganeriwala Mr. Srikant Jha Mr. Ankur Sogani Managing Director, VGL Group CFO, VGL Group Mr. Deepak Sharma Managing Director, Vice President, Commercial, Vice President, Owned Shop TJC (UK) Shop LC (US) Brands, Shop LC (US) Mr. Deepak Mishra Mr. Raj Singh
Slide 44: Safe Harbour
Safe Harbour This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its affiliated companies’ future business developments and eco
Slide 45: Results Presentation, May 2022
Results Presentation, May 2022