Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (November 2015)
44 slides from Pc Jeweller's investor presentation, November 2015
Slide 1: PC Jeweller Limited Corporate Presentation
Confidential PC Jeweller Limited Corporate Presentation November 2015 PCJeweller.com 1
Slide 2: Disclaimer
Disclaimer Certain statements are included in this release which contain words or phrases such as “will,” “aim,” “will likely result,” “believe,” “expect,” “will continue,” “anticipate,” “estimate,” “intend,” “plan,” “contemplate,” “seek to,” “future,” “objective,” “goal,” “project,” “should,” “will
Slide 3: Agenda
Agenda Indian Jewellery Industry PC Jeweller Limited – Brief Overview Large Format Showrooms Franchisee Showrooms Small Stores Flexia SIS WearYourShine.com Export Business Growth Enablers Robust Financial Performance PCJeweller.com 3
Slide 4: Indian Jewellery Industry
Indian Jewellery Industry PCJeweller.com 4
Slide 5: India is one of the world's largest and fastest growing jewellery market
India is one of the world’s largest and fastest growing jewellery market Indians love jewellery - Jewellery is amongst the largest discretionary spend categories Large Potential - Indian economy is expected to grow at >7%, disposable income is growing, large proportion of population between 15 –
Slide 6: Indian Jewellery Market – Key Segments
Indian Jewellery Market – Key Segments Overall Indian Jewellery Market Overall imports estimated for jewellery ~ 700 tonnes. Additionally, around 15-20% of the jewellery is usually reused (returned, melted and new design made) This leads to overall Gold Jewellery market size (including the mak
Slide 7: PC Jeweller Limited – Overview
PC Jeweller Limited – Overview PCJeweller.com 7
Slide 8: PC Jeweller – Company Overview
PC Jeweller – Company Overview Overview Financial Snapshot Position • 2nd largest listed jewellery retailer in India FY15 H1 FY15 H1 FY16 Robust Retail • Pan India network of 56 showrooms across 47 cities Network encompassing 17 states Stores 50 46 56 Gold and Operating Revenue (Rs • Gold and curren
Slide 9: PC Jeweller – Our DNA
PC Jeweller – Our DNA PCJ has grown from 1 showroom in Karol Bagh (in 2005) to 56 showrooms today Throughout this journey, PCJ has remained committed to its basic principles Hedging Gold and Currency since its initial years Continuously enhanced its design team and expanded its manufacturing
Slide 10: Unveiling our Long Term Vision
Unveiling our Long Term Vision Brand Trust and Recognition Manufacturing Capacity Large format exclusive WearYourShine.com Flexia Jewellery: and Technology Small Stores Shop in Shop Showrooms Franchisee showrooms Vertically Integrated Operations + Strong Design Teams + Robust Risk Management + Effic
Slide 11: Unveiling our Long Term Vision (Cont'd)
Unveiling our Long Term Vision (Cont’d) Customer Metro Tier I Tier II Tier III Segment PC Jeweller Exclusive Lounges Started this concept in select showrooms ~3 Ultra Rich years back. Now also planning to set up independent lounges Focused on high end designer pieces Rich and PC Jeweller Lar
Slide 12: Our Performance since IPO (Dec 2012)
Our Performance since IPO (Dec 2012) Planned additions at the Store Network As at FY12 Added by FY14 Added by FY15 As at Oct 2015 time of IPO (by CY14) New Showrooms 24 20 17 26 56 Additional Area (Sq. ft.) 138,274 133,000 99,726 175,022 342,871 Stores Area Revenue 60 56 400 70,000 63,613 50 CAGR: 3
Slide 13: Experienced Management Team
Experienced Management Team Board of Directors Mr. Krishan Mr. Miyar Mr. Balram Mr. Padam Ms. Kusum Jain Mr. Manohar Mr. RK Sharma Mr. Suresh Kumar Ramanath Garg Chand Gupta Lal Singla Kumar Jain Khurana Nayak Executive Managing Non- Executive Non- Executive Independent Director and Independent Inde
Slide 14: Strong Corporate Governance Practices
Strong Corporate Governance Practices Only 2 (out of total 8) directors on the Board are Promoters Directors 4 directors on the Management Board are independent directors with significant experience in their field of expertise (Law, Management and Banking) Independent directors head the Audit
Slide 15: Large Format Showrooms
Large Format Showrooms PCJeweller.com 15
Slide 16: Flagship Showroom at Karol Bagh, New Delhi
Flagship Showroom at Karol Bagh, New Delhi Flagship Showroom at Karol Bagh, New Delhi PCJeweller.com 16
Slide 17: Our Largest Showroom at Jaipur, Rajasthan
Our Largest Showroom at Jaipur, Rajasthan Milestone 50th Showroom at Jaipur, Rajasthan (Feb 2015) (20,522 sq. ft.) PCJeweller.com 17
Slide 18: Large Network of Strategically Located Showrooms
Large Network of Strategically Located Showrooms 2nd largest listed jewellery retailer in India Jammu 56* large format showrooms across Amritsar Yamuna Chandigarh Nagar 47 cities and 17 states Ludhiana Dehradun Sri Ganganagar Hissar Hardwar Large format showrooms at high Rohtak New Delhi Noida
Slide 19: Large Format Showrooms – Unique Business Model
Large Format Showrooms – Unique Business Model Trust and Large Format Showrooms at high street in the city Ambience An element of ‘Trust’ to customers seeking one-stop for wedding jewellery products Ensure showrooms have larger variety across price range, much wider than its Large Product comp
Slide 20: Superior Operating Performance
Superior Operating Performance Growing Share of Diamond Jewellery Growth in Retail Footprint 400 56 60 Retail Space ('000 sq. ft.) 35% 31.5% 31.7% 50 30.8% 50 # of showrooms 30% 26.7% 26.4% 300 41 25% 22.9% 40 30 24 342.9 20% 200 30 313.3 17 (%) 238.0 15% 20 164.6 100 138.3 101.2 10% 10 5% 0 0 FY11
Slide 21: Franchisee Business
Franchisee Business PCJeweller.com 21
Slide 22: Franchisee Showrooms
Franchisee Showrooms Indian retail jewellery market is fast becoming organized Organized market in India today constitutes ~22% Growing fast and expected to reach over 35% in the next few years Smaller Indian cities (Tier 2 and 3) are also witnessing this phenomenon Growing comfort on orga
Slide 23: Flexia Jewellery Collection
Flexia Jewellery Collection PCJeweller.com 23
Slide 24: Flexia Jewellery Collection
Flexia Jewellery Collection We launched Flexia in November 2014 Favourable customer response to the ‘Flexia’ concept as one jewellery piece can be worn in multiple ways and each product looks different and unique Initially this collection was launched in heavy range (pricing above Rs. 2,00,000
Slide 25: Flexia Jewellery Collection – High Range
Flexia Jewellery Collection – High Range PCJeweller.com 25
Slide 26: Flexia Jewellery Collection – Light Weight
Flexia Jewellery Collection – Light Weight PCJeweller.com 26
Slide 27: Small Store Format
Small Store Format PCJeweller.com 27
Slide 28: Small Store Format
Small Store Format In our endeavour to innovate and target newer markets, we are exploring launching small stores Target middle class/ lower middle class customers who are not very comfortable in visiting large format showrooms We believe such customers have a limited budget and preference for
Slide 29: WearYourShine.com
WearYourShine.com PCJeweller.com 29
Slide 30: Online Jewellery Sales - Ripe for Disruption
Online Jewellery Sales - Ripe for Disruption Overall Market Size ~62 bn USD, ~ Overall Market Size ~ 96 bn USD, ~3-4% 12% sold online sold online (Grown from 0.4% five years Most of the large brands (like Signet) back) are available online Brands like CTF, CSS, Luk Fook have a big focus on t
Slide 31: WearYourShine.com
WearYourShine.com We launched our ecommerce vertical www.WearYourShine.com in October 2014 Have seen significant growth in the unique visitors, leads and conversions in the last 1 year Benefits of WearYourShine.com for our retail showrooms business Target the growing Work Wear/ Daily Wear je
Slide 32: Unique Business Model
Unique Business Model Curated Strong Parent Marketplace Brand Model Lean Manufacturing Technology Consultative OmniChannel Selling Strategy Product Portfolio Target Customer Base Light to Medium weight jewellery First time jewellery buyers Own as well as Designer jewellery Working Women Pr
Slide 33: Export Business
Export Business PCJeweller.com 33
Slide 34: Export Business
Export Business Steady State Business Focus on Handmade Gold jewellery Targets Indian diaspora and local population in Middle East Helps in getting good design ideas and latest trends Manufacturing facility at Noida SEZ caters to our export sales 100% business is routed through banks. Go
Slide 35: Key Growth Enablers
Key Growth Enablers PCJeweller.com 35
Slide 36: Technology Advantage
Technology Advantage We expect technology to be a key differentiator in our business in the years to come This is in sync with our overall strategy to enhance sales/profitability, customer experience and develop analytics on consumer preferences We are working on various technology initiatives
Slide 37: Vertically Integrated Operations – Research & Design
Vertically Integrated Operations – Research & Design Research and Strong Risk Robust Supply Manufacturing Design Management Chain Design is a key driver of jewellery sales in current times In-house design team creating new patterns and designs on a regular basis based on domestic and internation
Slide 38: Vertically Integrated Operations - Manufacturing
Vertically Integrated Operations - Manufacturing Research and Strong Risk Robust Supply Manufacturing Design Management Chain One of the largest manufacturing capabilities with 8,014 kg of gold processed at our manufacturing facilities in fiscal 2015 4 manufacturing facilities with modern equipm
Slide 39: Vertically Integrated Operations – Strong Risk Management
Vertically Integrated Operations – Strong Risk Management Research and Strong Risk Robust Supply Manufacturing Design Management Chain Gold on Lease Business completely de-risked from gold price fluctuations by sourcing gold on lease Insurance Entire inventory of raw material to finished goo
Slide 40: Vertically Integrated Operations – Robust Supply Chain
Vertically Integrated Operations – Robust Supply Chain Research and Strong Risk Robust Manufacturing Design Management Supply Chain Seamless Supply Chain to ensure minimal WIP inventory and a rapid store rollout Efficient inventory management process facilitates quick rotation of stock Allows
Slide 41: Robust Financial Performance
Robust Financial Performance PCJeweller.com 41
Slide 42: Robust Financial Performance
Robust Financial Performance FY11-15 CAGR in revenues ~ 34% Continuously growing focus on Retail Sales 70,000 63,613 100% 60,000 53,248 25.7% 24.8% 28.5% 29.5% 80% 34.4% 33.0% 50,000 (INR mn) 40,184 40,000 60% 30,419 31,802 (%) 30,000 40% 75.2% 19,771 74.3% 71.5% 70.5% 65.6% 67.0% 20,000 20% 10,000
Slide 43: Robust Financial Performance
Robust Financial Performance Attractive RoCE Attractive RoE 45% 42.1% 50% 45.4% 41.6% Pursuant to fund raise 36% 40% in FY13 28.5% 29.1% 26.2% 27% 21.8% 30% 21.2% (%) (%) 21.0% 19.0% 18% 20% 9% 10% 0% 0% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 Debt/ Equity Ratio 1.2 1.0 1.0 0.8 0.6 (x) 0.6
Slide 44: Thank You
Thank You PCJeweller.com 44