Page Industries Limited · NSE:PAGEIND
Page Industries — Q2 FY2021 Earnings Presentation
47 slides from Page Industries's earnings presentation, Nov 12, 2020
Slide 1: Performance Highlights Q2FY21
PERFORMANCE HIGHLIGHTS Q2FY21 NOVEMBER 12, 2020
Slide 2: Safe Harbour Statement
SAFE HARBOUR STATEMENT This presentation, by Page Industries Limited (the “Company”), has been prepared solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities. This Presentation has been prepared by the Company base
Slide 3: Contents
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING • NEW LAUNCHES COMPANY OVERVIEW • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOLDING PATT
Slide 4: Page Industries: Vision & Mission Statement
PAGE INDUSTRIES: VISION & MISSION STATEMENT MISSION To be the largest and most profitable premium innerwear MISSION and athleisure brand within To be the number one swim- men, women and kids wear brand in our licensed segments in our licensed markets markets VISION To satisfy the human need for comf
Slide 5: Page Industries: At a Glance
PAGE INDUSTRIES: AT A GLANCE Leading player in Highly Experienced Production Capacity PAN India Presence Strong Financial Premium Innerwear Professional 260 mn pieces across 67,000+ Retail Network Performance and Athleisure Management supported by 15 manufacturing units market 810+ Exclusive Busines
Slide 6: Our Journey
OUR JOURNEY 2017 2006 Jockey Socks launched 2015 • First Jockey EBO in Sri Lanka • Brand Jockey reached • The turnover of the 2011 50,000 outlets in India Company crossed 2004 • Launch of first INR 1b in terms of International factory selling price • Licensing agreement format EBO in 1995 • Producti
Slide 7: Management Growth Initiatives
MANAGEMENT GROWTH INITIATIVES Capacity Ramp-up in both Manufacturing and Sales Quality Expanding Channel presence in distribution, Integrity Customer Exclusive Brand outlets, Delight Large Format Stores & E-Commerce Page’s Value System Expanding investments People and spends in Sales and Emphasis Si
Slide 8: Attractive Macro Opportunity
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING ATTRACTIVE MACRO • NEW LAUNCHES OPPORTUNITY • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHARE
Slide 9: Attractive Macro: Multiple Drivers for Growth
ATTRACTIVE MACRO: MULTIPLE DRIVERS FOR GROWTH Favourable Demographics Industry Growth Drivers 41.7% 31.1% 15 - 34 YRS 27.8% HIGHER INCREASE IN 25.7% LARGEST DISPOSABLE URBAN CONSUMER INCOME POPULATION GROUP 0.8 1.0 1.2 1.5 1991 2001 2011 2030P TOTAL POPULATION (IN BN) URBANISATION (%) INCREASED HIGH
Slide 10: Attractive Macro: Large Market
ATTRACTIVE MACRO: LARGE MARKET Indian Innerwear Market Indian Outerwear Market • Among all the fashion categories, innerwear is one of the fastest growing categories over the last few decades Athleisure Market • Domestic demand of innerwear has changed with consumer buying behavior, transforming fro
Slide 11: COVID-19 Impact
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING • NEW LAUNCHES COVID-19 IMAPCT • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOLDING PATTE
Slide 12: COVID-19 Situation and Impact
COVID-19 SITUATION AND IMPACT Retail stores of channel partners’ open as of end-Aug • MBO: More than 94% of our outlets are fully functional; 63,000+ outlets • EBO: 100% of our outlets have re-opened; 814 outlets • LFS: 92% of our stores have re-opened; 2126 stores Benefiting from increasing propens
Slide 13: Multiple Products Offering
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING MULTIPLE PRODUCTS • NEW LAUNCHES OFFERING • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHO
Slide 14: Jockey Product Portfolio
JOCKEY JUNIORS BOYS PRODUCT VESTS BRIEFS TRUNKS PORTFOLIO BOXER SHORTS T-SHIRTS POLO T-SHIRTS TRACK PANTS SHORTS SWEAT SHIRTS JACKETS MEN UNDERWEAR VESTS BRIEFS JUNIORS BOXER BRIEFS GIRLS PANTIES TRUNKS BLOOMERS OUTERWEAR BOXER SHORTS SHORTIES BERMUDAS INNER TEES CAMISOLE TRACK PANTS MIDWAYS TANK TO
Slide 15: Speedo Product Portfolio
SPEEDO PRODUCT PORTFOLIO SWIMACTIVE SWIM H2O ACT ACTIVE SUN TOP CAPRI LEGGING WATERS WATERSHORT EQUIPMENT GOGGLES CAPS TRAINING AID SWIM CONFIDENCE SWIMWEAR S FOOTWEAR F L LEISURE S SLIDE S SWIMDRESS T THONG K KNEESUIT L LEGSUIT F FULL BODY SUIT J JAMMER A AQUASHORTS W WATERSHORTS A ALL-IN-ONE SUIT
Slide 16: New Launches
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING • NEW LAUNCHES NEW LAUNCHES • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOLDING PATTERN
Slide 17: New Launches
NEW LAUNCHES New launches well accepted by consumers ANTI- BACTERIAL INHIBITS ODOURS CAUSED BY BACTERIA SAFE AND EFFECTIVE* LONG LASTING EFFECT EFFECTIVE UP TO 30 WASHES *All Government regulations and recommendations must still be complied with whilst using this product. 17
Slide 18: Jockey Athleisure - New Launches
JOCKEY ATHLEISURE - NEW LAUNCHES Style No. MW34 T-SHIRT Style No. US88P BERMUDA Style No. MW20 LEGGINGS Style No. AM44 TRACK PANTS Style No. IW06 Style No. AM42 ALL DAY PANTS TRACK PANTS 18
Slide 19: Unmatched Market Coverage
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING UNMATCHED • NEW LAUNCHES MARKET COVERAGE • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOL
Slide 20: Multi Brand Outlets: Pan India Distribution Network
MULTI BRAND OUTLETS: PAN INDIA DISTRIBUTION NETWORK CHANNEL SALES 3,850+ Distributor Accounts 2,870+ Cities / Towns 67,000+ Retail Network 610+ Channel Sales Strength 20
Slide 21: Exclusive Brand Outlets: First to Offer
EXCLUSIVE BRAND OUTLETS: FIRST TO OFFER 810+ Exclusive Brand Outlets 44 Exclusive Woman Outlets 15 Exclusive Juniors Outlets 190+ Outlets in malls 620+ Outlets in high street Present in 280+ cities 21
Slide 22: Large Format Stores: Enhancing Customer Reach
LARGE FORMAT STORES: ENHANCING CUSTOMER REACH 23 Large Format ~ 2,300+ ~ 3,700 partners Stores Point of sale across the country 22
Slide 23: Online & E-commerce: Riding the Digital Wave
ONLINE & E-COMMERCE: RIDING THE DIGITAL WAVE EXCLUSIVE ONLINE STORE jockey.in | speedo.in SELLING THROUGH ONLINE KEY PARTNERS …and other Partners 23
Slide 24: Manufacturing Capabilities
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING MANUFACTURING • NEW LAUNCHES CAPABILITIES • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHO
Slide 25: Manufacturing Capabilities
MANUFACTURING CAPABILITIES STRONG IN-HOUSE MANUFACTURING CAPABILITIES COMMITTED TO QUALITY • Our own manufacturing helps set high quality • Facilities spread over 2.4 million sq ft across 15 standards for both in-house and outsourced manufacturing units manufacturing • Present in 14 locations in Kar
Slide 26: Extensive Brand Reach
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING EXTENSIVE • NEW LAUNCHES BRAND REACH • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOLDING
Slide 27: Reassuring Customers
REASSURING CUSTOMERS SAFETY • Safety is a key concern in consumers minds; we are addressing and reassuring customers • Use of social channels to showcase measures to assure customers of their safety when they shop for their favorite brand Instore Customer Communication 27
Slide 28: Digital/Social Media Reach
DIGITAL/SOCIAL MEDIA REACH WARM WINTERS Followers 9,11,700 1,69,000 21,700 28
Slide 29: Employee Engagement
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING EMPLOYEE • NEW LAUNCHES ENGAGEMENT • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOLDING P
Slide 30: Employee Engagement
EMPLOYEE ENGAGEMENT COVID-19 Awareness Program Addressing the global pandemic, Page has conducted awareness programs for its employees as well as its distributors. Awareness Session on COVID-19 and preventive measures was conducted by our Company Doctors at HO/ CO and all Units. • Proper method of u
Slide 31: Employee Engagement
EMPLOYEE ENGAGEMENT On-The-Job Coaching for Sales Officers - Channel Sales conducted in FY 19-20 ‘Sales Kranti’ program was conceived to strengthen the selling skills of our sales officers. 1760 Sales Officers and Distributor Sales Officers were trained on a two-day training program. To ensure susta
Slide 32: Employee Engagement
EMPLOYEE ENGAGEMENT Safety Mirror The concept behind the safety mirror is to serve as a reminder and emphasize to all employees, visitors entering Page’s premises that “Safety is everyone’s Responsibility”. This is a significant initiative taken by Page, to inculcate safety culture among our employe
Slide 33: Employee Engagement
EMPLOYEE ENGAGEMENT Memorable moments: 165 employees awarded Gold Coin on completion of ten years of service - 2020 Smt. Sharadamma (Unit-1) Smt. Lakshmi (Unit-3) Shri. Nagarajappa (Unit -4) 33
Slide 34: Financial Highlights
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING FINANCIAL • NEW LAUNCHES HIGHLIGHTS • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOLDING
Slide 35: Proven Track Record of Financial Performance
PROVEN TRACK RECORD OF FINANCIAL PERFORMANCE Revenue Revenue Growth % EBITDA EBITDA Margin % PAT PAT Margin % Rs Million Rs Million Rs Million 16.4% 18.6% 19.8% 11.8% 20.9% 19.4% 21.2% 21.6% 13.6% 13.8% 3.3% 18.1% 12.9% 12.5% 11.7% 29,454 28,522 6,169 25,520 3,939 5,406 5,326 3,470 3,432 21,305 4,13
Slide 36: Proven Balance Sheet Strength
PROVEN BALANCE SHEET STRENGTH RONW/ROCE EPS and DPS Working Capital Days 72% 353 110 344 107 311 308 96 89 58% 58% 81 78 55% 58% 239 68 70 51% 208 60 57 161 44% 131 41% 42% 97 40% 85 21 19 21 19 19 19 16 16 9 12 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Receivables Inventory Payables Net Wor
Slide 37: Profit and Loss Statement: Quarterly
PROFIT AND LOSS STATEMENT: QUARTERLY QoQ YoY Particulars (INR mn) Q2FY21 % Q1FY21 % Q2FY20 % growth growth Revenue 7,403 100% 2,848 100% 7,754 100% 160% -5% COGS 3,297 45% 1,478 52% 3,410 44% 123% -3% Employee Cost 1,299 18% 1,229 43% 1,343 17% 6% -3% Other operating cost 1,153 16% 488 17% 1,511 19%
Slide 38: Gross Margin
GROSS MARGIN Financials (INR mn) Q2FY21 Q2FY20 FY20 Revenue 7,403 7,754 29,454 Material consumed 3,297 3,410 13,108 Sub contract costs # 269 329 1,237 Contribution 3,836 4,015 15,109 Contribution % 51.8% 51.8% 51.3% Other manufacturing costs 802 901 3,536 Gross Profit 3,034 3,114 11,574 Gross Margin
Slide 39: Profit and Loss Statement: Half Yearly
PROFIT AND LOSS STATEMENT: HALF YEARLY Financials (INR mn) H1 FY21 % H1 FY20 % YoY growth Revenue 10,251 100% 16,104 100% -36% COGS 4,775 47% 7,162 44% -33% Employee Cost 2,528 25% 2,627 16% -4% Other operating cost 1,642 16% 2,958 18% -45% Emp + operating cost 4,170 41% 5,585 35% -25% EBITDA 1,307
Slide 40: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Strong in-house Wide Range of product development Robust Financials Premium Quality and back end with ROCE of 58% Products capabilities Strong Distribution network with strong License with Jockey Strong Balance Sheet; Strong Brand Equity, presence in MBO, EBO, International
Slide 41: Sustainability
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING • NEW LAUNCHES SUSTAINABILITY • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOLDING PATTER
Slide 42: Sustainability Culture
SUSTAINABILITY CULTURE VISION To be a leading apparel company through balanced growth with a focus on quality, innovation and sustainable design, thereby, creating lasting value for all our stakeholders Commitment to Sustainability Building Capacity - Public disclosure through sustainability report,
Slide 43: Sustainability Focus Areas
SUSTAINABILITY FOCUS AREAS Economic Water and Effluent Page sustainability focus areas cover all aspects Performance of value chain viz., product development, supply chain & logistics, manufacturing, sales 09 01 & marketing and economic performance. 9 Materials focus areas identified based on our ma
Slide 44: Sustainability Focus Areas
SUSTAINABILITY FOCUS AREAS Economic Performance Sustain strong financial performance by tracking economic value Diversity and Equal Opportunity generated and distributed, assess and address the financial To ensure a diverse and inclusive workplace through policies, pay implications of sustainability
Slide 45: Shareholding Pattern
CONTENTS • COMPANY OVERVIEW • ATTRACTIVE MACRO OPPORTUNITY • COVID-19 IMPACT • MULTIPLE PRODUCTS OFFERING SHAREHOLDING • NEW LAUNCHES PATTERN • UNMATCHED MARKET COVERAGE • MANUFACTURING CAPABILITIES • EXTENSIVE BRAND REACH • EMPLOYEE ENGAGEMENT • FINANCIAL HIGHLIGHTS • SUSTAINABILITY • SHAREHOLDING
Slide 46: Shareholding Pattern
SHAREHOLDING PATTERN As of 30th September 2020 Insurance Companies and Financial Institutions, 2.5% Others, 12.3% Mutual Funds, 11.7% Promoter, 48.3% FPI, 25.2% Market Cap: ~ INR 241 bn (as on 6th November, 2020) 46
Slide 47: Thank You
THANK YOU PAGE INDUSTRIES LIMITED CIN: L18101KA1994PLC016554 Contact Us: For Investor Relations: investors@jockeyindia.com Website: www.jockey.in 47