Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2018 Earnings Presentation
32 slides from Vaibhav Global's earnings presentation, May 2018
Slide 1: Vaibhav Global Limited Financial Results Presentation Q4 & 12M FY2018
Vaibhav Global Limited Global Retailer of Fashion jewellery and Lifestyle Accessories on Home shopping TV and e-Commerce Platforms Financial Results Presentation Q4 & 12M FY2018 May 2018
Slide 2: Safe Harbor
Safe Harbor 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 ma
Slide 3: Vaibhav Global – An Overview
Vaibhav Global – An Overview Vertically-integrated fashion retailer on electronic retail platforms • End-to-end B2C business model for fashion and lifestyle accessories • Proprietary TV home-shopping and e-commerce platforms Shop LC and TJC are brands with strong customer visibility • 96 million (FT
Slide 4: Vaibhav Global – Reach
Vaibhav Global – Reach The Jewellery Channel, UK TV channel retail Shop LC, USA E-commerce website TV channel retail E-commerce website STS China, Hong Kong Sourcing Gemstones STS Thailand STS USA Sourcing Gemstones B2B Wholesale distribution STS Bali Sourcing Gemstones VGL India G
Slide 5: Table of Contents
Table of Contents Q4 & 12M FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation May 2018 5
Slide 6: Key Highlights for Q4 FY18
Key Highlights for Q4 FY18 Home TV Network Reach in 96 Mn Households across US and UK • 96 million households on full time equivalent (FTE*) basis • 71 million households in the US • 25 million households in the UK Q4 FY18 Retail Volumes at 2.16 Million Units, -1.7% YoY and overall ASP* at $25.6, up
Slide 7: Chairman's Message
Chairman’s Message Commenting on Q4 FY18 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “I am happy to report 66% growth in profits and margin expansion of over 300 basis points in FY18 as we maintained our positive business momentum through the year. Our retail
Slide 8: Financials – Q4 & 12M FY18 Performance (Revenue Breakdown)
Financials –Q4 & 12M FY18 Performance (Revenue Breakdown) Local currency Q4 16-17 Q4 17-18 % change Revenue (Rs. Crores) 1,439 1,564 LC - USD Mn 36.9 40.27 9.1% UK - GBP Mn 9.0 10.79 20.3% 422 375 Local currency FY 16-17 FY 17-18 % change LC - USD Mn 141.04 156.86 11.2% UK - GBP Mn 34.68 41.45 19.5%
Slide 9: Retail Performance Trends – Q4 & 12M FY18
Retail Performance Trends – Q4 & 12M FY18 (Volume and ASP) TV Sales Sales Volume (‘000s) Average Selling Price US$ 5,877 5,737 28.4 26.9 1,519 1,400 24.9 24.1 Q4 FY17 Q4 FY18 FY17 FY18 Q4 FY17 Q4 FY18 FY17 FY18 Web Sales Sales Volume (‘000s) Average Selling Price US$ 2,840 20.4 20.3 2,353 758 677 18
Slide 10: Financials – Q4 & 12M FY18 Performance (Margins)
Financials – Q4 & 12M FY18 Performance (Margins) Rs. crore Gross Margin Gross Margin% 1,000 70.0% 900 929 68.0% 800 865 66.0% 700 64.0% 600 59.7% 59.4% 62.0% 60.1% 500 60.0% 400 58.0% 300 224 56.0% 200 54.0% 55.1% 100 52.0% 233 - 50.0% Q4 FY17 Q4 FY18 FY17 FY18 Note: Direct costs for calculation of
Slide 11: Financials – Q4 & 12M FY18 Performance (Profits)
Financials – Q4 & 12M FY18 Performance (Profits) Rs. crore PAT (Including Exchange) PAT % 120 7.6% 8.0% 115 7.2% 110 105 100 95 113 90 6.0% 85 80 5.1% 75 70 65 60 4.5% 4.0% 55 50 45 65 40 35 30 2.0% 25 19 32 20 15 10 5 - 0.0% Q4 FY17 Q4 FY18 FY17 FY18 EPS * Profit after tax including exchange gain(l
Slide 12: Table of Contents
Table of Contents Q4 & 12M FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation May 2018 12
Slide 13: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,564 1,376 1,277 1,439 1,298 FY14 FY15 FY16 FY17 FY18 Jewelry & Lifestyle Products TV Sales Rs. crore Web Sales Rs. crore B2B Sales Rs. crore 993 958 974 932 371 911 256 275 225 223 190 200 162 161 122 FY14 FY15 FY16 FY17 FY18 FY14 FY15
Slide 14: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes (‘000s) Average selling price US$ 6,829 26.9 6,420 24.9 24.4 5,854 5,877 23.5 5,737 23.0 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Web Sales Sales Volumes (‘000s) Average selling price US$ 2,960 2,840 2,264 2,353 20.3 1,700 17.5 14.2 15.1 12.7
Slide 15: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 950 64% 63% 63% 900 62% 850 61% 61% 60% 61% 59% 60% 800 59% 750 58% 789 838 804 865 929 700 57% FY14 FY15 FY16 FY17 FY18 Note: Direct costs for calculation of gross profit includes material cost, job work charges and manufac
Slide 16: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 160 12% 12% 140 10% 120 8% 7.2% 8% 100 80 113 6% 4.5% 60 3% 4% 40 2% 20 153 103 40 65 0 0% FY14 FY15 FY16 FY17 FY18 * Profit after tax including exchange gain(loss) fluctuation. Rs. per share EPS 47.6 34.6 32.0 19.9 12.3 FY14 F
Slide 17: Financial Performance Trends (Balance Sheet)
Financial Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Fixed assets including intangibles 550 129 126 120 434 379 328 77 233 66 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 Net Debt Net Current Assets 52 417 55 305 314 217 230 -20 6 FY14 FY15 FY16 FY17 FY18 -13 FY14 FY15 FY
Slide 18: Financial Performance Trends (Cash Flow)
Financial Performance Trends (Cash Flow) Rs. crore Operating Cash flow Free Cash Flow 152 169 129 106 58 88 18 36 -10 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 -59 Operating Cash Flow: PBT+ Depreciation-Changes in Free Cash Flow: Operating Cash Flow – Capital working capital + adjustment for
Slide 19: Table of Contents
Table of Contents Q4 & 12M FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation May 2018 19
Slide 20: Product Profile
Product Profile FASHION JEWELLERY • Bracelets • Bangles • Earrings • Studded jewelry, etc. FASHION ACCESSORIES • Watches • Handbags • Scarves, etc. LIFESTYLE PRODUCTS • Home Décor • Bed linens • Pillow Covers • Beauty products Investor Presentation May 2018 20
Slide 21: Branding Initiative: Developing new brands and brand ambassadors
BRANDING INITIATIVE: Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation May 2018 21
Slide 22: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding India In-House designers & craftsmen Noida, Jaipur, Nagaland, No middlemen Kashmir Access to latest manufacturing Indonesia technology Bali, Yogyakarta, Sumatra, Madura Surabaya Scale Flexibility Thailand Low Invest
Slide 23: Manufacturing
Manufacturing ISO 9001:2008 facilities in Jaipur, with capacity of producing over 6 million annually Commenced operations at new 100,000 sq. ft., fully-integrated, LEED certified ‘Gold Level’ building at SEZ, Jaipur Diamond manufacturing and sourcing unit of the company is also present in Mumb
Slide 24: TV Networks – USA (Consumption Markets)
TV Networks – USA (Consumption Markets) Shop LC, USA 71.2 million households shopping (FTE, out of 120 mn) Based out of Austin, Texas. Offer services in Canada through e-commerce www.ShopLC.com Over 600 people in sales & marketing, customer service, logistics, TV production, e-commerce and sup
Slide 25: TV Networks – UK (Consumption Markets)
TV Networks – UK (Consumption Markets) The Jewellery Channel (TJC), United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of Hampton, Middlesex Over 150 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions State-of-the
Slide 26: E-Commerce (Consumption Markets)
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.ShopLC.com USA Launched Mobile App for Shop LC Launched Budget Pay EMI option Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on
Slide 27: Early Adopters and Cord Cutters
EARLY ADOPTERS AND CORD CUTTERS HIGH DEFINITION AND IP BROADCAST • High Definition Broadcast • Charter Communication • AT&T • Adoption of new technology of Broadcasting • Reducing dependency on Infrastructure • Minimizing downtime as IP would broadcast it via internet EXPANSION INTO OVER THE AIR PRE
Slide 28: Management Team
Management Team Sunil Agrawal Puru Aggarwal Chairman and Managing Director Group CFO Established Vaibhav in 1980 as a first generation entrepreneur and has led the company’s transition 25 years of rich experience in business modeling, financial into a leading brand for fashion jewelry and lifest
Slide 29: Management Team
Management Team Jeff Allar Nitin Dugar Senior Vice President, Group HR Vice President , COO – Shop LC, USA Over 30 years of work experience at major international Over 12 years at VGL, rich experience in business companies including IBM, Unilever and the Stonyfield development, customer services
Slide 30: Management Team
Management Team Amit Agarwal Commercial Director – TJC, UK • MBA marketing with over 16 years of experience with different companies like BSL Ltd , Siddhartha Marble and VGL group in Sales and product merchandising in Jewellery and Textile category . • Managing product merchandising , planning for T
Slide 31: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Puru Aggarwal Vaibhav Global Limited +91-141-2770648 Puru.Aggarwal@vglgroup.com Ankit Sahay Vaibhav Global Limited +91-141-2770648 Ankit.Sahay@vglgroup.com Shiv Muttoo / Karl Kolah CDR India +91 22 6645 1207/1220 shi
Slide 32: Thank You
Thank You 32