Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q1 FY2020 Earnings Presentation
37 slides from Vaibhav Global's earnings presentation, July 2019
Slide 1: Vaibhav Global Limited Financial Results Presentation – Q1FY20
Global Retailer of Fashion Jewellery, Accessories and Lifestyle Products on Home Shopping TV and Vaibhav Global Limited e-Commerce Platforms Financial Results Presentation – Q1FY20
Slide 2: Forward-looking statements disclaimer
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 materially fro
Slide 3: B2C Success in Developed Markets
B2C Success in Developed Markets Products Sold TV Homes Avg. Quantity per Customer On TV and Web Directly Accessed (FTE) *TTM Unique Customers *TTM ROE* TTM ROCE* TTM Revenue PAT Free Cash Flow *ROE – based on average net-worth *ROCE – based on average capital employed Investor Presentation July 201
Slide 4: Vertically-integrated fashion retailer
End-to-end B2C business model for fashion jewellery, accessories and 99.4 million (FTE) households on TV shopping in lifestyle products the US and UK; expanding online presence Significant geographical cost arbitrage Vertically- Shop LC and Positive customer engagement metrics – Proprietary TV home-
Slide 5: Manufacturing and Sourcing Markets, Consumption Markets
Manufacturing and Consumption Markets Sourcing Markets STS, China Sourcing USA STS Hong Kong TV channel retail Sourcing E-commerce website The Jewellery Channel, UK Sub-contracting & Apps TV channel retail Marketplaces E-commerce website & Apps Social media Marketplaces STS Thailand Social media Sou
Slide 6: Table of Contents
Table of Contents Q1FY20 Financial Business Financial 07 Performance 14 Background 22 Performance Trends Details Investor Presentation July 2019 6
Slide 7: Q1FY20 Financial Performance
Q1FY20 Financial Performance
Slide 8: Key Highlights for Q1 FY20
Key Highlights for Q1 FY20 Q1 FY20 Retail Volumes at 2.3 Million Units, up Q1 FY20 – Financial Performance Operating Highlights in Q1 FY20 16% YoY and overall ASP* at $25.95 Total Revenue at Rs. 440 crore, up 13% YoY Moving ahead on its quality journey, Shop LC, US, won the Home TV shopping volumes
Slide 9: MD's Message
“We have started the financial year with strong results in the first quarter, signifying our solid MD’s Message and growing connect in consumer markets of the US and UK, across platforms comprising TV, web, mobile apps, smart TV interfaces, OTT platforms, social and third-party marketplaces. We have
Slide 10: Financials – Q1 FY20 Performance (Revenue Breakdown)
Financials – Q1 FY20 Performance (Revenue Breakdown – Rs. crore) Revenue Jewelry & Lifestyle Products 440 TV Sales Web Sales B2B 274 138 48 96 390 28 246 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Note: • Revenue includes exchange gain as per Ind-AS • B2B has been a non-core and
Slide 11: Financials – Q1 FY20 Performance (Local Currency)
Financials – Q1 FY20 Performance (Revenue Breakdown - Local Currency) Shop LC (USD million) TJC UK (GBP million) 42.4 13.0 35.2 11.3 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Investor Presentation July 2019 11
Slide 12: Retail Performance Trends – Q1 FY20
Retail Performance Trends – Q1 FY20 (Volume and ASP) TV Sales Sales Volume ('000s) Average Selling Price US$ 1,355 29.2 1,271 28.9 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Web Sales Sales Volume ('000s) Average Selling Price US$ 932 21.3 697 20.7 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Investor Presentation July 201
Slide 13: Financials – Q1 FY20 Performance (Profits)
Financials – Q1 FY20 Performance (Profits – Rs. crore) Gross Profit Gross Margin (%) EBITDA EBITDA Margin (%) 63.1% 12.4% 60.6% 11.4% 236 278 44 55 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 EPS (Rs.) PAT PAT Margin (%) 8.2% 11.02 7.7% 9.22 30 36 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Investor Presentation July 2019
Slide 14: Financial Performance Trends
Financial Performance Trends
Slide 15: Financials Performance Trends (Revenue)
Financials Performance Trends (Revenue breakdown - Rs. crore) Revenue 1,814 1,436 1,571 1,276 390 440 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 510 1,157 931 972 997 373 190 201 274 147 223 122 246 274 96 138 48 28 FY16 FY17 FY18 FY19 Q1FY19Q1FY20 FY
Slide 16: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 28.9 29.2 5,854 5,877 5,737 6,275 27.0 26.4 24.4 24.9 1,271 1,355 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 Web Sales Sales Volume ('000s) Average Selling Price US$ 3,522 20.4 20.7 20.7 21.3 2
Slide 17: Financials Performance Trends (Profits)
Financials Performance Trends (Profits – Rs. crore) Gross Profit Gross Margin (%) 62.5% 60.1% 59.6% 63.0% 60.6% 63.1% 804 865 936 1,133 236 278 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 EBITDA EBITDA Margin (%) 12.0% 10.1% 7.1% 5.9% 11.4% 12.4% 75 102 159 217 44 55 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 Investor
Slide 18: Financials Performance Trends (PAT, EPS)
Financials Performance Trends (Profits – Rs. crore) PAT PAT Margin (%) 8.5% 7.2% 4.5% 3.1% 7.7% 8.2% 40 65 113 154 36 30 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 EPS (Rs.) 47.27 34.55 19.85 12.27 9.22 11.02 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 Investor Presentation July 2019 18
Slide 19: Financial Performance Trends (Balance Sheet)
Financial Performance Trends (Balance Sheet - Rs. crore) Shareholders’ Equity Fixed assets including intangibles 697 ** 728 ** 134 550 129 126 379 434 120 117 FY16 FY17 FY18 FY19 Q1FY20 FY16 FY17 FY18 FY19 Q1FY20 55 Net Debt Net Current Assets 6 417 399 ** 378 (13) 305 314 (181) (216) FY16 FY17 FY18
Slide 20: Financial Performance Trends (Cash Flow)
Financial Performance Trends (Cash Flow – Rs. crore) Operating Cash flow Free Cash Flow 170 193 88 58 41 45 18 32 36 35 (10) (59) FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 FY16 FY17 FY18 FY19 Q1FY19 Q1FY20 Operating Cash Flow: PBT+ Depreciation- Free Cash Flow: Operating Cash Flow – Capital (Changes in work
Slide 21: Financial Performance Trends (Key Ratios)
Financial Performance Trends (Key Ratios) ROE ROCE 23% 25% 39% 22% 37% 16% 27% 12% 18% 13% FY16 FY17 FY18 FY19 Q1FY20 FY16 FY17 FY18 FY19 Q1FY20 Note - ROE – based on average net worth ROCE – based on average capital employed Investor Presentation July 2019 21
Slide 22: Business Background Details
Business Background Details
Slide 23: Product Profile
Product Profile FASHION JEWELLERY FASHION ACCESSORIES LIFESTYLE PRODUCTS Bracelets Watches Home Décor Bangles Handbags Bed linens Earrings Scarves, etc. Pillow Covers Studded jewelry, etc. Beauty products Investor Presentation July 2019 23
Slide 24: Branding Initiative
Branding Initiative Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation July 2019 24
Slide 25: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding China: Guangzhou, Haifeng, India: Hauadu Shenzhen, In-House designers & craftsmen Noida, Jaipur, Dongguan, Zhuji, Sourcing from appropriate Nagaland, Kashmir Wenzhou, Wuzhou, No middlemen micro-markets in China/Asia
Slide 26: Manufacturing
Manufacturing ISO 9001:2008 facilities in Jaipur, Rajasthan Fully-integrated building at SEZ, Jaipur - IGBC certified ‘IGBC Green Factory Building Gold’ Diamond manufacturing and sourcing unit of the company is also present in Mumbai Over 2,900 people in India across corporate, manufacturing, design
Slide 27: TV Networks – USA
TV Networks – USA (Consumption Markets) Shop LC, USA 74.4 million households shopping (FTE, out of 120 mn) Based out of Austin, Texas USA Almost 450 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions Successfully re-branded Liquidation Channel t
Slide 28: TV Networks – UK
TV Networks – UK (Consumption Markets) The Jewellery Channel (TJC), United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of London Over 250 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions State-of-the-art auction/schedul
Slide 29: Retail Format – E-Commerce
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.ShopLC.com USA Mobile App for Shop LC Budget Pay EMI option available Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on all social platfo
Slide 30: Early Adopters And Cord Cutters
Early Adopters And Cord Cutters High Definition And IP Expansion Into Over The Smart Tv And Streaming Broadcast Air Presence (Ota) Devices (Iptv) High Definition Broadcast Cord Cutters don’t We already have o Charter want to pay for any presence on Communication channel or satellite following Smart
Slide 31: Delivering Joy to Stakeholders – Customers, Employees
Delivering Joy to Stakeholders • High quality products Customers • Exotic designs • Lowest Price Guarantee – high quality, high affordability • Omni-channel access – available on TV, Web and Mobile platforms • Budget Pay (monthly installments) available on higher value products • Easy Returns availa
Slide 32: Delivering Joy to Stakeholders – Investors, Environment, Society
Delivering Joy to Stakeholders Investors Year 2017 2018 2019 22% 39% Rank #219 #162 #147 ROE ROCE • Solar power projects to meet ~45% of the total power Environment requirement at the manufacturing facilities in Jaipur (current + planned solar power project) • Invested in sewage treatment, recycling
Slide 33: Management Team
Management Team Mr. Sunil Agrawal Puru Aggarwal Managing Director Group CFO An MBA from Columbia University, NY (USA), Sunil Over 25 years of rich experience in business modeling, established Vaibhav in 1980 as a first generation financial strategy & planning, business development, entrepreneur and
Slide 34: Management Team
Management Team Jeff Allar Srikant Jha Group Senior Vice President, HR Managing Director - TJC, UK Over 30 years of work experience at major international companies including IBM, Unilever and the Stonyfield Farm Srikant Jha is a B.Com graduate and has done his MBA in unit of Groupe Danone Marketing
Slide 35: Management Team
Management Team Raj Singh Vivek Jain Vice President, Supply Chain, VGL Group Senior Director, Finance – VGL Group Mr. Raj Singh is a graduate in Chemistry and trained in A Chartered Accountant with over 16 years’ experience in Mechanical Maintenance. He began his career with Shrenuj & Finance, Banki
Slide 36: Contact Information
Contact Information For more Puru Aggarwal Vaibhav Global Limited information on Dipti Rajput +91-141-2770648 Vaibhav Global Puru.Aggarwal@vglgroup.com Limited, Dipti.Rajput@vglgroup.com please contact: Shiv Muttoo CDR India +91 22 6645 1207/1220 Karl Kolah shiv@cdr-india.com karl@cdr-india.com Inve
Slide 37: Thank You
Thank You