Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — H1 FY22 Earnings Presentation
40 slides from Vaibhav Global's earnings presentation, October 2021
Slide 1: Vaibhav Global Limited Q2 & H1 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 Q2 & H1 FY22 Financial Results Presentation
Slide 2: 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 3: MD's Message
Commenting on Q2 FY22 Performance In Q2 we have seen our revenues at Rs. 635 crore an increase of 6% Y-o-Y and over Q2 FY20 we have seen a much stronger growth of 30.9%. With the vaccination in both US and UK reaching pivotal levels, severity of threat from Covid has largely reduced. As US and UK ec
Slide 4: Q2 FY22: Key Highlights
Q2 FY22 : KEY HIGHLIGHTS Retail revenues grew by 3.3% Y-o-Y and 33.6% over Q2 FY20 Gross margins improved by 100 bps to 63.9% Y-o-Y EBITDA margins in Q2 FY22, excluding Germany, were at 13.5% vs 16.5% in Q2 last year. Margins were momentarily impacted by elevated sea freight and sustained investment
Slide 5: Table of Contents
TABLE OF CONTENTS Business Background Details 6 Highlights for the Quarter 14 Q2 & H1 FY22 Financial Performance 20 Financial Performance Trends 26 Annexures 33 Results Presentation, Oct 2021 5
Slide 6: Business Background Details
BUSINESS BACKGROUND DETAILS Results Presentation, Oct 2021 6
Slide 7: 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 Passion Positive At
Slide 8: Truly Global
TRULY GLOBAL Retail Markets Shop LC | Shop TJC | Shop LC (US) (UK) (Germany) UK Operate Through Marketplaces Canada | Japan US Sourcing China ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy India ▪ ▪ Tanzania Russia ▪ ▪ Turkey Poland ▪ Morocco ▪ Singapore ▪ Myanmar ▪ UAE ▪
Slide 9: 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): ~ 110 mn - Proprietary TV home-shopping fashion retailer - Proprietary e-commerce platforms (Germany) are > Growing online presence on electroni
Slide 10: 4R's of Customer Engagement
4R’S OF CUSTOMER ENGAGEMENT 110 mn 3.0 lakh (TTM) 43.9% (TTM) 30*(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 11: Our Omni-Channel Sales Platform (Shop LC US)
OUR OMNI-CHANNEL SALES PLATFORM Shop LC (US) Shop LC Proprietary TV channels – 63.5 mn HH Shop LC live TV stream on shoplc.com, YouTube, including 18.7mn OTA* HH* Facebook and Amazon Live TV Proprietary digital Shop LC mobile app Social retail of targeted platform available on Marketplaces products
Slide 12: Our Omni-Channel Sales Platform (Shop TJC UK)
OUR OMNI-CHANNEL SALES PLATFORM Shop TJC (UK) Shop TJC Proprietary TV channels – 25 mn HH Shop TJC live TV stream available on tjc.co.uk, including 17 mn OTA* HH* YouTube and Facebook TV Shop TJC mobile app Social retail of targeted Proprietary digital platform available on Marketplaces products on
Slide 13: 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% 36% 31% 30% 78% 64% 64% 89% 69% 70% FY17 FY21 H1 FY22 FY17 FY21 H1 FY22 61% of digital revenues in H1 FY22 were from Mobile platform Jewellery revenu
Slide 14: Highlights for the Quarter
HIGHLIGHTS FOR THE QUARTER Results Presentation, Oct 2021
Slide 15: Germany: Operational in Q2 and Expanding
GERMANY: OPERATIONAL IN Q2 AND EXPANDING ➢ Omni-channel approach catering through: ✓ TV Channel (Satellite and Cable) ✓ OTT ✓ Other Digital Platforms ➢ Value for money positioning, ASP of ~€29 ➢ Warehouse set-up, continued thrust on quick delivery ➢ 21mn HH covered with in-house studio & 20 hours li
Slide 16: Accelerating Digital
ACCELERATING DIGITAL INCUBATING, CREATING & ACQUIRING NEW D2C ONLINE BRANDS Designed For Fit, Loved For Value ➢ Launched ‘TAMSY’- new female fashion apparel brand ➢ Acquired ‘Rachel Galley’ online brand- a ➢ Targeting customers above 40 years in multiple award-winning UK based USA, UK and Germany co
Slide 17: Warehousing Automation: GEEK+ Robot System
WAREHOUSING AUTOMATION: GEEK+ ROBOT SYSTEM ➢ Installed GEEK+ robots in warehouses located in USA and UK ➢ Capital outlay of ~$ 5.2 million with payback of ~18-22 months ➢ 3 times improvement in picking productivity ➢ More than 50% of group’s inventory presently picked by robots Results Presentation,
Slide 18: OTT: Leveraging Digital Platforms
OTT: LEVERAGING DIGITAL PLATFORMS Now: Live & Interactive Adding: VOD Now: Live Adding: VOD ➢ Upgraded applications ➢ Accelerating marketing & engagement programs ➢ Infrastructure commissioned to support VOD (live show & related content) Results Presentation, Oct 2021 18
Slide 19: Innov8: Delivering Joy Through Continued Innovation
INNOV8: DELIVERING JOY THROUGH CONTINUED INNOVATION INNOV8 FUNNEL ➢ A Global product innovation and search program Ideas ➢ Crowdsourcing of ideas from employees, customers and other Received external stakeholders Ideas Proposed to Buyers ➢ YTD 8,600+ ideas received and 430+ new and innovative produc
Slide 20: Q2 & H1 FY22 Financial Performance
Q2 & H1 FY22 FINANCIAL PERFORMANCE Results Presentation, Oct 2021 20
Slide 21: Financials – Q2 & H1 FY22 Performance
FINANCIALS – Q2 & H1 FY22 PERFORMANCE Revenue Breakdown – (Rs. crore) Growth vs Q2 FY20 Revenue Growth vs H1 FY20 30.9% 42.3% 14.6% 1,317 1,149 6.0% 599 635 Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Fashion Jewelry, Accessories & Lifestyle Products Growth vs Q2 FY20 Growth vs H1 FY20 Growth vs Q2 FY20 Gro
Slide 22: Financials – Revenue Breakdown (Local Currency)
FINANCIALS – Q2 & H1 FY22 PERFORMANCE Revenue Breakdown – (Local Currency) Shop LC (US) Shop TJC (UK) Growth vs Q2 FY20 Growth vs H1 FY20 Growth vs Q2 FY20 Growth vs H1 FY20 22.1% 33.3% 24.5% 41.2% (USD million) (GBP million) 9.2% 11.3% 119.2 39.1 35.8 107.1 2.3% 1.7% 56.1 57.4 18.7 18.3 Q2
Slide 23: Retail Performance Trends – Q2 & H1 FY22
RETAIL PERFORMANCE TRENDS – Q2 & H1 FY22 Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 3,653 3,628 29.4 31.6 30.5 26.7 1,773 1,663 Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Digital Sales Sales Volume ('000s) Average Selling Price US$ 2,599 2,675 23.6 23
Slide 24: Financials – Profits
FINANCIALS – Q2 & H1 FY22 PERFORMANCE Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA 62.9% 63.9% 63.6% 64.5% 16.5% 11.4% 15.3% 13.0% Margin (%) Margin (%) 16.3% Ex-Germany: Ex-Germany: 7.6% 850 13.5% 176 3.3% 731 171 7.7% 26.5% 99 377 406 73 Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 Q2 FY21
Slide 25: EBITDA Margin Walk
EBITDA MARGIN WALK Particulars % To Revenue Remarks EBITDA Q2 FY22 11.4% Gross Margin Improvement 1.0% Conscious increase in gross margins Germany loss in line with $3-5 mn loss guidance for FY22, Investment in Germany (1.9%) breakeven in 3rd year Elevated Sea Freight (2.3%) Temporary short-term
Slide 26: Financial Performance Trends
FINANCIAL PERFORMANCE TRENDS Results Presentation, Oct 2021 26
Slide 27: Financial Performance Trends – Revenue
FINANCIAL PERFORMANCE TRENDS Revenue Breakdown – (Rs. crore) Revenue Growth vs H1 FY20 5 Year CAGR: 14.8%* 42.3% 2,540 1,986 14.6% 1,814 1,436 1,571 1,149 1,317 FY17 FY18 FY19 FY20 FY21 H1FY21 H1FY22 Fashion Jewelry, Accessories & Lifestyle Products Growth vs Growth vs H1 TV Revenue H1 FY20 Digita
Slide 28: Retail Performance Trends
RETAIL PERFORMANCE TRENDS Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 29.9 30.5 6,275 24.9 27.0 26.4 27.7 26.7 5,877 5,737 6,070 3,653 3,628 FY17 FY18 FY19 FY20 FY21 H1FY21 H1FY22 FY17 FY18 FY19 FY20 FY21 H1FY21 H1FY22 Digital Sales Sales Volume ('000s) Average Selli
Slide 29: Financial Performance Trends – Profits
FINANCIAL PERFORMANCE TRENDS Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA 60.1% 59.6% 62.5% 61.6% 62.3% 63.6% 64.5% 7.1% 10.1% 12.0% 13.9% 15.3% 15.3% 13.0% Margin (%) Margin (%) Ex-Germany: 1,583 Growth: 7.6% CAGR: 38.9% Margins: 14.4%% 1,133 1,224 16.3% 388 865 936 850 276 3.3% 731 2
Slide 30: Financial Performance Trends – Balance Sheet
FINANCIAL PERFORMANCE TRENDS Balance Sheet – (Rs. crore) Shareholders’ Equity Fixed assets including intangibles 1,071 293 964 697 751 192 550 163 434 126 120 117 FY17 FY18 FY19 FY20 FY21 H1FY22 FY17 FY18 FY19 FY20 FY21 H1FY22 Net Debt Net Assets * FY17 FY18 FY19 FY20 FY21 H1FY22 6 417 439 399 394 3
Slide 31: Financial Performance Trends – Cash Flow
FINANCIAL PERFORMANCE TRENDS Cash Flow – (Rs. Crore) Operating Cash flow Free Cash Flow 324 268 181 176 203 211 93 77 70 53* 52 38 20 ** (27) FY17 FY18 FY19 FY20 FY21 H1FY21 H1FY22 FY17 FY18 FY19 FY20 FY21 H1FY21 H1FY22 * Disruptions in global supply-chain system resulting in higher inventory and in
Slide 32: Financial Performance Trends – Key Ratios
FINANCIAL PERFORMANCE TRENDS Key Ratios ROE (TTM) ROCE (TTM) 32% 61% 28% 26% 51% 25% 23% 46% 37% 16% 27% 18% FY17 FY18 FY19 FY20 FY21 H1FY22 FY17 FY18 FY19 FY20 FY21 H1FY22 Note - ROE – based on average net worth ROCE – based on average capital employed Results Presentation, Oct 2021 32
Slide 33: Annexures
ANNEXURES Results Presentation, Oct 2021 33
Slide 34: Growth in Digital Commerce Markets
GROWTH IN DIGITAL COMMERCE MARKETS Industry 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 5.4 5.6 5.2 439.6 436.8 5.0 423.7 4.8 405.7 14.0% 387.6 13.3% 11.0% 27.8% 9.9% 25.8% 9.1% 8.2% 19.1% 17.9% 1.7 16.
Slide 35: Robust Corporate Governance
ROBUST CORPORATE GOVERNANCE RECOGNITION H1 FY22 Rs. 49.1cr Award at ICSI National Awards for Excellence in Corporate Governance in Jan 21 RAJASTHAN’s Best Employer Brands Award 2021 Interim dividend Dividend Payout Policy > 20-30% of consolidated free cash flow > Higher payout in special circumstanc
Slide 36: Environmental Initiatives
ENVIRONMENTAL INITIATIVES ENERGY WATER 3.23 Solar power capacity 6100 KL Rainwater per annum harvested meets 100% power mw requirement at manufacturing units in 7KL Water saved per day with the installation of Jaipur low LPM faucets 48KL LEED certified unit at SEZ in Water recycled per day, Jaipur,
Slide 37: Community Giveback
COMMUNITY GIVEBACK > Served 57.7 million meals to underprivileged Covid-19 Key Initiatives children through flagship One for One Program, > Donated an Oxygen plant to Santokba Durlabhji Your Purchase Feeds… Memorial Hospital in Jaipur, Rajasthan. This plant > Local charity partners has a total capac
Slide 38: VGL Shareholder Base – As on 30-September-2021
VGL SHAREHOLDER BASE – AS ON 30-SEPTEMBER-2021 Holding as on Shareholding Pattern Key Shareholders (Holding +1%) 30-September-21 Promoter & Promoter Group 58.10% Others 8.34% Nalanda India Fund Limited (FII) 10.26% Individual - >1% 3.20% Motilal Oswal Flexi Cap Fund (MF) 6.81% AIF 1.43% Malabar Indi
Slide 39: Management Team
MANAGEMENT TEAM Mr. Sunil Agrawal Mr. Vineet Ganeriwala Mr. Amit Agarwal Mr. Srikant Jha Managing Director, VGL Group CFO, VGL Group President, Shop LC (US) Managing Director, Shop TJC (UK) Mr. Jay Chandran Mr. Raj Singh Mr. Pushpendra Singh Mr. Deepak Mishra Chief Technology Officer, Vice President
Slide 40: Results Presentation, Oct 2021
Results Presentation, Oct 2021