Slide 1: Stock exchange covering letter for investor presentation
PDSL/SE/2022Ͳ23/179 November2,2022 ListingDepartment CorporateRelationshipDepartment NationalStockExchangeofIndiaLimited BSELimited ExchangePlaza,CͲ1BlockG, PhirozeJeejeebhoyTowers, BandraKurlaComplex,Bandra(E), DalalStreet, MumbaiͲ400051 MumbaiͲ400001 ScripSymbol:PDSL ScripCode:538730 Re.: INE111Q0
Slide 2: Investor Update Q2 FY23 and H1 FY23
Investor Update Q2 FY23 and H1 FY23 November 2022 Strictly Private & Confidential
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by PDS Limited* (“PDS”, “the Company”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should n
Slide 4: Contents
Contents 01 Who we are? 05 Key Business Verticals 02 Power Of The PDS Platform 06 Stock Price Performance 03 Key Business Updates 07 Giving Back to the Society 04 Performance Overview 08 Annexure 3
Slide 5: Who are we?
Who are we? Global Fashion Infrastructure Company with customized solutions to retailers & brands 01 02 03 04 Revenues FY21-22: $1.2bn Design Led Sourcing, 91% Design-Led Sourcing as a Service Manufacturing Brands Sourcing Brands, 3% • Owned Manufacturing • 550+ Fully Compliant • Managing entire sou
Slide 6: A Quick Glance into the Financial Highlights (H1 FY23)
A Quick Glance into the Financial Highlights (H1 FY23) $ 670mn $110mn $24mn $ 22mn (₹5,262cr) (₹867cr) (₹192cr) (₹172cr) 38% consolidated topline growth Gross Profit (16.5% Margin) 62% growth in EBITDA 60% increase in Normalized PBT(1) $ 20mn ₹ 10.03 36% | 33% 3 Days (₹157cr) 25% increase in PAT Ear
Slide 7: Power of the PDS Platform
bustaimable fashion is nd ~~ \aitrend hut the future.
Slide 8: Power of the Platform to achieve $2.5bn topline
Power of the Platform to achieve $2.5bn topline Striking a unique balance between scale and commercial flexibility Forging Long Term Agreeements “Sourcing as a Service” provides unique value propositions for brands and retailers, by operating as an exclusive partner for agreed territories Strategic
Slide 9: PDS as a 'strategic vendor'
PDS as a ‘strategic vendor’ Uniquely positioned in the fashion apparel value chain Legend: Area of full participation Area of selective participation Raw Value Merchandise material Manu Quality Brand Designing Sourcing Logistics Retailing Recovery chain planning purchasing -facturing assurance manag
Slide 10: Growth road map for the PDS Platform
Growth road map for the PDS Platform Increase in wallet share & strategic capital bolster growth cross categories & geographies Growth Avenues Growth Drivers New Category PDS Platform New Customer New Geography Organic In-Organic Growth Growth Collab with Higher wallet share existing business Existi
Slide 11: Growth road map fortified by a robust business model
Growth road map fortified by a robust business model… PDS and Verticals operating model work together to deliver superior services What does What do the PDS Platform deliver? individual Verticals deliver? Strong financial support and freedom to operate Industry leading offerings and services Access
Slide 12: Strongly aligned with PDS's Operating Principles
…Strongly aligned with PDS’s Operating Principles 1 Entrepreneurial ingenuity across all levels Foster strong ownership mindset across all Verticals, maintaining local commercial flexibility 2 Fair and transparent relationships Cultivate and nurture longstanding partnerships with customers with trus
Slide 13: Creating a 'Flywheel Effect' that enables continuous growth
Creating a ‘Flywheel Effect’ that enables continuous growth Drive economy of scale and Attract and enable entrepreneurial 4 group synergies 1 creativity Strive for scale on supply and customer sides for Attract CEO-level entrepreneurs with strong existing better negotiation power and stickiness rela
Slide 14: Key Business Updates
KEY BUSINESS UPDATES
Slide 15: Sourcing as a Service Model
Sourcing as a Service Model Long-term strategic collaborations – a testament to our capabilities Geography Marquee Association Exclusive: Bangladesh Exclusive: Exclusive: Non Exclusive: Exclusive: Non Exclusive: Territories Non-Exclusive: India | Bangladesh | India | Sri Lanka Turkey Turkey Global P
Slide 16: Establishing Long Term Customer Relationships: George
Establishing Long Term Customer Relationships 1. George’s New Partnership for exclusive sourcing from Bangladesh and India ❑ Poeticgem, UK based subsidiary, has been long servicing Asda for over 2 decades ❑ Relationship has now extended to PDS’s recently launched offering “Sourcing as a Service” to
Slide 17: Techno is now the Exclusive Agent of Woolworth in India
Establishing Long Term Customer Relationships 2. Techno is now the Exclusive Agent of Woolworth in India ❑ Techno Design, a Germany-based subsidiary of PDS, is now the exclusive agent of Woolworth for apparel, home textile and hard goods in India ❑ Founded in 1879, Woolworth has a history of 145 yea
Slide 18: Kleider Sourcing is now the Exclusive Agent of Wibra NL
Establishing Long Term Customer Relationships 3. Kleider Sourcing is now the Exclusive Agent of Wibra NL in Bangladesh ❑ Kleider Sourcing, PDS’s subsidiary, is the now sole agent for apparel, home textile, and hard goods in Bangladesh for Wibra ❑ Wibra is a Dutch discount store chain selling mostly
Slide 19: Acquisition of turn-key Trend & Design Studio and Sourcing company
Acquisition of turn-key Trend & Design Studio and Sourcing company Acquiring DBS Lifestyle ❑ Acquired a 51% stake in the businesses owned and managed by Pangrams Brands, under DBS Lifestyle (“DBS”). ❑ Invest ₹21cr (US$2.6mn) in Pangram Brands Private Limited ❑ Business of the DBS group will be conso
Slide 20: New Design Studio at Green Smart Shirts
New Design Studio at Green Smart Shirts PDS’s manufacturing subsidiary in Bangladesh 19
Slide 21: Strengthening Leadership Team
Strengthening Leadership Team Augmenting teams at business verticals and platform to drive growth & efficiencies Paul Wright Tony Corlett Rahul Ahuja Alan Wragg Lynne Tooms Gavin Foster Group ESG Director Executive Director – COO & CFO: DBS and Strategic Advisor QA, Executive Director - CSS Managing
Slide 22: Venture Tech Investments
Venture Tech Investments 21
Slide 23: PDS Venture covers the Future of Circularity & Sustainability
PDS Venture covers the Future of Circularity & Sustainability ❑ We are connecting the sustainable & circular ecosystem through LOOP Buy consciously Good on You, Compare Ethics, Common Recycle Objective ReGAIN, Evrnu Trace the journey Sheep Inc, EON* Resell Reflaunt Upcycling Upcycle Labs Rent, swap,
Slide 24: PDS Venture collaborations with the ecosystem
PDS Venture collaborations with the ecosystem Growing higher quality & sustainable Automated 100% inspection inside Circular A robotics & digital apparel company cotton, using 80% less water & 3-4X more Knitting Machines, reducing production building custom-fit jeans, for each yield. costs and defec
Slide 25: Investing in Circularity, Sustainability & Innovative Solutions: Reflaunt
Investing in Circularity, Sustainability & Innovative Solutions Reflaunt ▪ Reflaunt empowers brands with the technology to embrace circular fashion. The solution allows customers to put back on sale their past purchase ▪ Yellow Octopus Group invested in the SEED round buying 26% stake for a consider
Slide 26: Investing in Circularity: Upcycle Labs
Investing in Circularity, Sustainability & Innovative Solutions Upcycle Labs How it works ▪ UPCYCLE LABS is a material science and technology company providing innovative upcycling services for fashion brands & retailers to convert their unwanted inventory into new high- quality décor products, stor
Slide 27: Performance Overview
PERFORMANCE OVERVIEW Quarter and Half Year ended 30th September 2022 26
Slide 28: Key Financial Highlights for this Quarter (Q2 FY23)
Key Financial Highlights for this Quarter (Q2 FY23) $ 367mn $ 62mn $ 15mn $ 13mn (₹2,921cr) (₹495cr) (₹119cr) (₹105cr) 33% consolidated topline growth Gross Profit: 16.9% Margin | 41% growth in EBITDA 34% increase Normalized PBT (1) ↑54bps $ 14mn ₹ 7.19 36% 33% (₹113cr) 70% increase PAT Basic EPS RO
Slide 29: Key Financial Highlights for the first half (H1 FY23)
Key Financial Highlights for the first half (H1 FY23) $ 670mn $ 110mn $ 24mn $ 22mn (₹5,262cr) (₹867cr) (₹192cr) (₹172cr) 38% consolidated topline growth Gross Profit (16.5% Margin) 62% growth in EBITDA 60% increase in Normalized PBT(1) $ 20mn ₹ 10.03 $ 10mn 3 Days (₹82cr) (₹157cr) 25% increase in P
Slide 30: Performance in Q2 over last 5 years
Performance in Q2 over last 5 years Consistently delivered growth & profitability Margin % 1 Sales (₹cr) 2 Gross Profit (₹cr) 2,921 495 2,195 360 1,856 1,596 1,673 280 227 245 1.8x 14.2% 16.9% 2.2x Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Growth Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Growth 3 EBITDA
Slide 31: Revenue Break-up for H1 FY23
Revenue Break-up for H1 FY23 Category Wise Split Geography Wise Split Men’s Wear Men 's wear 41% UK & Europe Women’s 73% Asia & Middle Wear Ladies wear 33% East 7% Children Wear Children we ar 20% Australia 1% Essentials 3% Ess entials North America Wear % of Total Revenue 16% Others OTHERS Others 3
Slide 32: Investment in PDS Ventures, Real Estate & others
Investment in PDS Ventures, Real Estate & others PDS Investment Portfolio ₹346cr | $43mn % of total PDS 20% gross capital employed 7% 5% 9% Venture Tech Direct Treasury Investments (33%) Real Estate & Others (22%) Investments (45%) ₹114cr | $14mn ₹78cr | $10mn ₹155cr | $19mn India: ₹28 cr | $3mn Por
Slide 33: Monetization of Milton Keynes
Monetization of Milton Keynes ❑ PDS monetized 64,000 sq ft warehousing space in the Pacific House building – Milton Keynes ❑ The warehouse was acquired by Pacific Logistics, a Japan-based company distribution company ❑ Pacific Logistics had occupied the space for the last 8 years ❑ PDS monetized the
Slide 34: H1 FY23 Performance Across Segments
H1 FY23 Performance Across Segments PDS Venture Tech Sourcing Manufacturing Investments# PDS Consolidated $643mn | ₹5,051cr $40mn | ₹315cr $0.3mn |₹2.2cr $670mn Revenue Revenue captured in Other up 38% vs LY up 40% vs LY Income ₹5,262cr EBIT $21mn | ₹168cr $1mn | ₹8cr $3mn | ₹23cr $25mn |₹195cr Gain
Slide 35: Consolidated Profit & Loss (Quarter)
Consolidated Profit & Loss For the Quarter ended September ₹ in cr, unless mentioned otherwise Quarter ended Quarter ended Q2 Growth Quarter ended Year Ended Key Highlights Particulars 30-Sep-22 30-Sep-21 (Y-o-Y) 30-Jun-22 31-Mar-22 Income from Operations 2,921 2,195 33% 2,340 8,828 1. Income from O
Slide 36: Consolidated Profit & Loss (Half Year)
Consolidated Profit & Loss For the half year ended September ₹ in cr, unless mentioned otherwise Half Year ended Half Year ended H1 Growth Year Ended Particulars Key Highlights 30-Sep-22 30-Sep-21 (Y-o-Y) 31-Mar-22 Income from Operations 5,262 3,821 38% 8,828 1. Income from Operations increased by 3
Slide 37: Normalized PBT Q2FY23 and H1 FY23
Normalized PBT Q2Fy23 and H1 FY23 ₹ in cr, unless mentioned otherwise Quarter ended Quarter ended H1 ended H1 ended Particulars 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21 Income from operations 2,921 2,195 5,262 3,821 PBT 124 71 172 133 % PBT Margin 4.3% 3.2% 3.3% 3.5% Add: ESOP Cost 6 3 13 5 Less: One
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet ₹ in cr, unless mentioned otherwise As on As on As on As on Particulars Particulars 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21 Non-Current Assets 822 657 Calculated basis LTM P&L items Current Assets 2,488 2,249 Inventory Days 15 21 Inventories 344 347 Debtor Days 44 59 Trade
Slide 39: Consolidated Cash Flow
Consolidated Cash Flow ₹ in cr, unless mentioned otherwise Half year ended Half year ended Half year ended Half year ended Particulars Particulars 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 172 133 Proceeds
Slide 40: Strengthening Corporate Governance
Strengthening Corporate Governance Re-designation of Mr. Pallak Seth as Executive Director PRESENT BOARD COMPOSITION Deepak Kumar Seth Pallak Seth Payel Seth Parth Gandhi Yael Gairola Mungo Park Robert Sinclair Nishant Parikh Chairman Vice - Chairman Non-Executive & Promoters & Non-Executive & Non-I
Slide 41: Key Business Verticals
Key Business (E PDS Global | Collaborative | Digital | Ethical 4 fa] 5) “= 5 >
Slide 42: Top 10 Business Verticals
Top 10 Business Verticals Key Financials for Half year-ended Sep’2022 US$ in mn, unless mentioned otherwise Revenue PBT PBT Margin Verticals Key Geography H1FY23 H1FY23 H1FY23 UK 153 6.9 4.5% Twins UK 78 4.8 6.1% UK 74 1.9 2.6% Germany 50 1.4 2.8% UK (Sri Lanka focused)** 50 2.8 5.6% Top 10 vertical
Slide 43: Auditors – All Entities
Auditors – All Entities (excluding 14 JV & Associates) Big 5 Auditors covers 83% of Topline and +100% of PBT No of Entities Covered % of Total Sales# % of Total PBT # Others Others 17% 37 Others -2% Big 5 83% Big 5 Big 5 102% 51 Key highlights from top auditors in FY22: 1. ~58% of the 88 subsidiary
Slide 44: Augment Governance Framework in Key Entities
Augment Governance Framework in Key Entities Independent Directors have been adopted on the Board of Directors of Key Entities Pamela Mar Sunil Srivastav Ashutosh Bhupatkar Ashok Kumar Sanghi Director, Norwest Industries Ltd Director, Techno Design HK Limited Director, Poeticgem Limited Director, No
Slide 45: Unlocking the Stock Market Growth Opportunity
Unlocking the Stock Market Growth Opportunity
Slide 46: What PDS has achieved since demerger?
What PDS has achieved since demerger? PDS Share Price Evolution from Demerger PDS IRR 26% (BSE Sensex IRR: 10%, BSE MidCap IRR: 12.5%) ₹301 ₹47 Apr-17 Oct-14 Oct-16 Oct-17 Jul-18 Oct-18 Oct-19 Oct-21 Jan-15 Apr-15 Oct-15 Jul-15 Jan-16 Apr-16 Jul-16 Jan-17 Jul-17 Jan-18 Apr-18 Jan-19 Apr-19 Jul-19 Ja
Slide 47: PDS Giving Back to the Society
PDS GIVING BACK TO THE SOCIETY 46
Slide 48: Building a better future and giving back to the society
Building a better future and giving back to the society Poeticgem are humbled to support The Abinta Kabir Foundation in their efforts to provide relief and quality education to underprivileged children and to offer support to senior citizens in Bangladesh. 47
Slide 49: Together we're building a better, more sustainable supply chain
For Further Information, please contact Abhishekh Kanoi Head of Legal & Company Secretary abhishekh.kanoi@pdsltd.com Reenah Joseph Head Corporate Finance & Investor Relations Reenah.Joseph@pdsltd.com PDS Limited (erstwhile PDS Multinational Fashions Limited) Unit No.971, Solitaire Corporate Park, An
Slide 50: Annexure
tr Annexure -3 Fi s in $ mn igures in $ ' FZ
Slide 51: Macro Economic Factors Driving the Industry
Macro Economic Factors Driving the Industry Rising Inflation Strengthening of USD Falling Fabric Costs ▪ Currently at it’s lowest in last one year March 22 June 22 September 22 6M Currency 03 Oct, 22 04 Apr, 22 Movement 9.9% 10.0% USD/GBP 0.89 0.76 17.0% 8.4% 9.1% 8.2% 7.9% 9.4% 8.6% 7.4% 7.4% 7.0%
Slide 52: Performance in Q2 over last 5 years ($ mn)
Performance in Q2 over last 5 years Consistently delivered growth & profitability Margin % 1 Sales ($ mn) 367 2 Gross Profit ($ mn) 62 296 49 233 239 247 40 33 33 1.6x 14.2% 17.0% 1.9x Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Growth Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY23 Growth 3 EBITDA ($ mn) 4 Rep
Slide 53: Consolidated Profit & Loss (Quarter, US$)
Consolidated Profit & Loss For the Quarter ended September US$ in mn, unless mentioned otherwise Quarter ended Quarter ended Q2 Growth Quarter ended Year Ended Particulars Key Highlights 30-Sep-22 30-Sep-21 (Y-o-Y) 30-Jun-22 31-Mar-22 Income from Operations 366.8 297.0 24% 302.9 1,184.8 1. Income fr
Slide 54: Consolidated Profit & Loss (Half Year, US$)
Consolidated Profit & Loss For the half year ended September US$ in mn, unless mentioned otherwise Half Year ended Half Year ended H1 Growth Year Ended Particulars 30-Sep-22 30-Sep-21 (Y-o-Y) 31-Mar-22 Key Highlights Income from Operations 669.8 517.0 30% 1,184.8 COGS 559.4 430.2 30% 992.6 1. Income
Slide 55: Normalized PBT Q2FY23 and H1 FY23 (US$)
Normalized PBT Q2Fy23 and H1 FY23 US$ in mn, unless mentioned otherwise Quarter ended Quarter ended H1 ended H1 ended Particulars 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21 Income from operations 366.8 297.0 669.8 517.0 PBT 15.7 9.6 21.8 18.0 % PBT Margin 4.3% 3.2% 3.3% 3.5% Add: ESOP Cost 0.8 0.5 1.6
Slide 56: Consolidated Balance Sheet (US$)
Consolidated Balance Sheet US$ in mn, unless mentioned otherwise As on As on As on As on Particulars Particulars 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21 Non-Current Assets 101.0 88.6 Calculated basis LTM P&L items Current Assets 305.8 303.4 Inventory Days 14 21 Inventories 42.3 46.8 Debtor Days 41 5
Slide 57: Consolidated Cash Flow (US$)
Consolidated Cash Flow US$ in mn, unless mentioned otherwise Half year ended Half year ended Half year ended Half year ended Particulars Particulars 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 21.1 17.9 Proce