Vakrangee Limited · NSE:VAKRANGEE
Vakrangee — Q3 FY2021-22 Earnings Presentation
40 slides from Vakrangee's earnings presentation, Jan 22, 2022
Slide 1: Vakrangee Limited Q3 FY2021-22 results update cover letter
Vakrangee Vakrangee Limited "Vakran gee Corporate House", Plot No. 93, Road No. 16, M I OC, Ma ral, Andheri (East) , Mum bai 400093, Malli'lrashtra IN www.vakrangeein 1 L +9 122 285034'1 2 / +91 226 776 5 100 mrm~ F: +91 222 8502 0 17 1CIN: L6599 0MH1 90PLC 056669 January 22, 2022 To, Department of
Slide 2: The Assisted Digital Convenience Store - Q3 FY2021-22 Results Update
THE ASSISTED DIGITAL CONVENIENCE STORE “GO TO MARKET PLATFORM” : BUILDING INDIA’S LARGEST LAST MILE DISTRIBUTION PLATFORM VAKRANGEE LIMITED Q3 FY2021-22 RESULTS UPDATE January 22, 2022
Slide 3: Disclaimer
DISCLAIMER This presentation has been prepared by Vakrangee Limited (“Vakrangee” or “VL” or the “Company”) solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organ
Slide 4: Table of Contents
TABLE OF CONTENTS Results Performance Update 04 Strategy 2.0 : Our next 5 year growth plan 12 Company Overview 15 Demerger Update 30 Update on Sustainability ESG Initiatives 34 Update on Awards & Recognition 37 3
Slide 5: Results Performance Update
RESULTS PERFORMANCE UPDATE 4
Slide 6: Key Highlights – Q3 FY2021-22 (Y-o-Y Basis)
RESULTS PERFORMANCE UPDATE Key Highlights – Q3 FY2021-22 (Y-o-Y Basis) REVENUE FROM OPERATIONS EBITDA PROFIT AFTER TAX (PAT) In Rs Mn 433.6 2086.7 293.3 250.9 168.0 743.6 180.6% 72.8% 74.6% Q3 FY2020-21 Q3 FY2021-22 Q3 FY2020-21 Q3 FY2021-22 Q3 FY2020-21 Q3 FY2021-22 Sale Revenue & Profitability Gro
Slide 7: Revenue from Operations and PAT by quarter
RESULTS PERFORMANCE UPDATE REVENUE FROM OPERATIONS PROFIT AFTER TAX (PAT) In Rs Mn 2071.9 2086.7 293.3 267.4 1540.2 233.3 207.9 168.0 1018.5 743.6 Q3FY2020-21 Q4FY2020-21 Q1FY2021-22 Q2FY2021-22 Q3FY2021-22 Q3FY2020-21 Q4FY2020-21 Q1FY2021-22 Q2FY2021-22 Q3FY2021-22 Returning to Pre-Covid Growth Pat
Slide 8: Vakrangee Kendra Outlets – Performance Update
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE PERFORMANCE UPDATE FOR QUARTER ENDED DECEMBER, 2021 ~Rs. 125.5 Bn ~34.1 Mn Quarterly Throughput on Vakrangee Quarterly No. of Transactions on Platform – Q3 FY22 Transaction Value Vakrangee Platform – Q3 FY22 19,230+ ~US$6.7 Bn No. of Outlets currently An
Slide 9: Q3 FY2021-22 GMV / Throughput Contribution
VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE Q3 FY2021-22 - GMV / THROUGHPUT CONTRIBUTION (RS. MN.) Margin Profile % * E-Commerce 1,793 2 - 15% ATM 30,775 Rs. 17/ Fin Txn BFSI 92,940 0.25 - 0.40% • BFSI and ATM services witnessed robust QoQ as well as YoY growth as we get back to pre-covid growth p
Slide 10: ESG Performance Update
ESG PERFORMANCE UPDATE VAKRANGEE RECOGNIZED AS A TOP ESG PERFORMER IN 2022 • Vakrangee Limited has been identified as a top ESG performer out of more than 4,000 comprehensive companies that Sustainalytics cover in the global universe. • In 2022, Vakrangee has been recognized by Sustainalytics as an
Slide 11: Case Studies: Nextgen Top Performers
CASE STUDIES : NEXTGEN TOP PERFORMERS Franchisee - SHUBHAM KULKARNI Number of Accounts Opened - 91 SHUBHAM from a Tier-3 location of Maharashtra KULKARNI have Earned `88,373 in just month Total Transaction Value - from BFSI Services `4,86,12,050 Number of Financial Transaction - ABDUL Franchisee – A
Slide 12: Consolidated Financial Statements
CONSOLIDATED FINANCIAL STATEMENTS Key Profit & Loss Statement Items Particulars (Rs. Mn.) Q3 FY2021-22 Q3 FY2020-21 YoY% Q2 FY2021-22 9M FY2021-22 Revenue from Operations 2,086.7 743.6 180.6 2,071.9 5,698.8 Total Expenses 1,698.8 711.8 138.7 1,723.8 4,671.5 EBIDTA 433.6 250.9 72.8 392.0 1,166.4 Prof
Slide 13: Strategy 2.0: Physical Network Platform – Next 5 Year Growth Plan
STRATEGY 2.0: VAKRANGEE’S PHYSICAL NETWORK PLATFORM – OUR NEXT 5 YEAR GROWTH PLAN 12
Slide 14: Core Business Physical Network 5-Year Growth Strategy
Vakrangee y VAKRANGEE CORE BUSINESS - PHYSICAL NETWORK 5-YEAR GROWTH STRATEGY : (FY21-22 TILL FY25-26) BANKLOGO om } E Vakrangee 2.0 FY 2025-26 E NO. OF ANNUAL TRANSACTION FY 2025-26 E STRONG FINANCIAL GROWTH TAKE RATE (Revenue COMM %) : ~1.2-1.5% PAT MARGIN % : 10%-12% TARGET CASH ADJUSTED ROE: 35%
Slide 15: Focussed to Build Pan-India Presence Covering 100% Postal Codes
FOCUSSED TO BUILD PAN-INDIA FY 2025-26 PRESENCE COVERING 100% POSTAL CODES - 75,000+ Outlets - 19,000 + - 36 States / UTs Postal codes - 740 + Districts - ~70% Tier V & VI Q3 FY 2021-22 - 19,230+ Outlets - 33 States / UTs - 560+ Districts With Exclusive Branded Format Stores, - 5,430+ Postal codes C
Slide 16: Company Overview
Vakrangee / ’ COMPANY OVERVIEW
Slide 17: Nextgen Vakrangee Kendra – Scope of Services
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES Banking , ATM & Insurance Financial Services / Fintech E-Commerce / Online Travel Tele Medicine / Pharmacy PAN INDIA PRESENCE : • > 80% IN TIER 4-6 LOCATIONS PHYSICAL + DIGITAL • 5,430+ POSTAL CODES ECO-SYSTEM • 560+ DISTRICTS “GO TO MARKET PLATFORM” : BU
Slide 18: Nextgen Vakrangee Kendra – Scope of Services: BFSI & ATM
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES BFSI & ATM SERVICES • ATM Cash Withdrawal • Non-Financial Transactions (White Label ATM License) • Opening of Online Demat & Trading Account • Money Transfer • Lead Generations of Personal / Home / Business Loans • Pan Card Service • CIBIL Score service •
Slide 19: Nextgen Vakrangee Kendra – Scope of Services: Assisted E-Commerce
NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES ASSISTED E-COMMERCE SERVICES • Online Shopping of Goods • Online Shopping of Jewellery • Telemedicine services • Online Shopping of Medicines • Mobile/DTH Recharge • Bill Payments • E-Mitra services in Rajasthan (Only for Rajasthan) • Train Ticket Booking
Slide 20: E-Commerce Marketing Initiatives
E-COMMERCE MARKETING INITIATIVES Link to the Co-Branded Advertisement Campaign - Amazon & Vakrangee : https://www.youtube.com/watch?v=MPtZ_c62 Odg https://www.youtube.com/watch?v=- AJarKHI94c 19
Slide 21: Formats of Nextgen Vakrangee Kendra
FORMATS OF NEXTGEN VAKRANGEE KENDRA NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE MODEL Update on Nextgen Vakrangee Kendra Model:- • As the Bouquet of services have increased over the last few years , the viability of the kendra has increased on a standalone basis resulting into an Exclusive sto
Slide 22: Key Features – Nextgen Vakrangee Kendra
KEY FEATURES – NEXTGEN VAKRANGEE KENDRA KEY FEATURES • Exclusive store model with same service level and same STORE EXCLUSIVITY & Customer experience CONSISTENT • Standardized layout & design by L&H (Lewis & Hickey) BRANDING • Uniform and Consistent Branding for Higher brand recall and visibility •
Slide 23: Nextgen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 22
Slide 24: Nextgen Vakrangee Kendra Model
NEXTGEN VAKRANGEE KENDRA MODEL 23
Slide 25: Huge Untapped Market: Overall Market Potential
HUGE UNTAPPED MARKET: OVERALL MARKET POTENTIAL POPULATION 1.35 BILLION POLLING STATIONS 1 MILLION TOTAL NO OF VILLAGES 6,62,986 TOTAL NO OF GRAM PANCHAYAT 2,53,268 TOTAL NO OF URBAN WARDS 75,535 TOTAL OUTLET POTENTIAL 3,28,803 24
Slide 26: Store Economics of a Nextgen Kendra
STORE ECONOMICS OF A NEXTGEN KENDRA NextGen Outlet Estimated Avg. Revenue per Month Revenue Per Store Rs. 0.1 mn * NextGen Outlet Estimated Ranging from 65:35 to 80:20 based on Commission Sharing Ratio Service Type Vakrangee Margins NextGen Outlet Estimated Operational Gross Level – 18-20% Profit Ma
Slide 27: Our Proprietary Technology Platform
OUR PROPRIETARY TECHNOLOGY PLATFORM SERVICES PROVIDED THROUGH REAL-TIME INTEGRATION WITH PARTNER SYSTEMS BANK – CORE BANKING SERVER ALL PARTNER SYSTEM (e-Commerce, e-Governance, Insurance, Financial Services & Logistics) Customer Vakrangee Kendra Internet Vakrangee Management System Connectivity Ken
Slide 28: White Label ATM – Opportunity
WHITE LABEL ATM – OPPORTUNITY • India ranks low in the world in terms of ATM Density. We have ATM density of 210 ATMs per Million whereas developed countries like Canada have 2,141 ATMs per Million. • Low ATM Penetration in Tier 3, 4, 5 and 6 cities creates Huge opportunity for WLAs to bridge the ga
Slide 29: Launch of Mobile Super App Update
LAUNCH OF MOBILE SUPER APP UPDATE • Vakrangee has recently launched an online digital platform to enable seamless services for the consumer at the comfort of their homes. Through this, company has evolved into the unique O2O (Online to Offline) platform, whereby there is Assistance available through
Slide 30: Business Model: Our Unique Offering
BUSINESS MODEL : OUR UNIQUE OFFERING Customer Strong Value Proposition • All in One Super App Platform • Access to Physical Store network - Trust & Comfort for Customers especially in Rural India Unique Convenience Features : Leveraging the Vakrangee Eco-System • Store Pick Up Facility • Pay at Stor
Slide 31: Demerger Update
Vakrangee / ’ DEMERGER UPDATE
Slide 32: Demerger Update
DEMERGER UPDATE • As on June 19, 2021 the Board of Directors of Vakrangee Limited had approved Demerger of its digital Division. • However, The Board of Directors have now after due deliberations and detailed discussions, taking into consideration the best interest of all its stakeholders, have fina
Slide 33: Proposed Demerger Structure
PROPOSED DEMERGER STRUCTURE PRE-DEMERGER 1 2 POST- VL E-GOVERNANCE & IT VAKRANGEE LIMITED – SOLUTIONS BUSINESS DEMERGER CURRENT LISTED ENTITY DIVISION – TO BE LISTED ARRANGEMENT TO INCLUDE :- TO INCLUDE :- • VAKRANGEE KENDRA POST- • E-GOVERNANCE BUSINESS BUSINESS (PHYSICAL DEMERGER • IT/ITES BUSINES
Slide 34: Vakrangee Kendra Business – Post Demerger
VAKRANGEE KENDRA BUSINESS – POST DEMERGER POST DEMERGER : VAKRANGEE LIMITED TO EMERGE AS PURE RETAIL CONSUMER CENTRIC BUSINESS RETAIL CONSUMER STRONG RURAL BRAND UNIQUE PHYSICAL + CENTRIC BUSINESS PRESENCE DIGITAL PLATFORM SCALABLE FRANCHISEE DEBT FREE BALANCE ASSET LIGHT MODEL LED MODEL SHEET HIGH
Slide 35: Update on Sustainability ESG Initiatives
UPDATE ON SUSTAINABILITY ESG INITIATIVES 34
Slide 36: Key Initiatives: Sustainability Impact & ESG
KEY INITIATIVES : SUSTAINABILITY IMPACT & ESG Being Responsible • Being one of the largest franchisee-based, multi-service retail network, Vakrangee is focused on creating India’s extensive network of last-mile retail outlets at every & Social Conscious postal code in the country, enabling Indians t
Slide 37: Sustainability ESG Performance Update
SUSTAINABILITY ESG PERFORMANCE UPDATE Global recognition reflects company’s commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability. Comp
Slide 38: Update on Awards & Recognition
UPDATE ON AWARDS & RECOGNITION 37
Slide 39: Awards & Recognition
AWARDS & RECOGNITION Vakrangee makes history by Vakrangee has been ranked Vakrangee has been Vakrangee has been awarded setting GUINNESS WORLD amongst Top 100 Franchise awarded as the best ESG India Leadership Award RECORDSTM title for the Most Opportunities for the year ‘FINANCIAL SERVICES
Slide 40: Thank You
Vakrangee / ’ Thank You