Campus Activewear Ltd. · NSE:CAMPUS
Campus Activewear — Q1 FY23 Earnings Presentation
31 slides from Campus Activewear's earnings presentation, Aug 15, 2022
Slide 1: Stock exchange disclosure cover letter
15th August, 2022 To, BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department Exchange Plaza, C-1, Block G, 1st Floor, New Trading Ring, Rotunda Building, Bandra Kurla Complex, Bandra (East), P. J. Towers, Dalal Street, Mumbai – 400 051 Mumbai – 400 001 SCRIP CODE: 543523
Slide 2: Earnings Presentation Q1 FY23
EARNINGS PRESENTATION Q1 FY23 August 2022
Slide 3: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Campus Activewear Limited (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows
Slide 4: Table of Contents
Table Of Contents 01 Business Snapshot 02 Business Highlights 03 Business Performance – Q1 FY23 04 Growth Vectors 05 Appendix 3
Slide 5: Business Snapshot
01 Business Snapshot
Slide 6: India's Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand
CAMPUS - India’s Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand Revenue from Operations #1 20,000+ Q1 FY23: INR 3,377.1 mm (c.150% YoY growth) Sports & Athleisure (S&A) Retailers across Footwear Brand in India (1) TTM FY23: INR 13,965.9 mm 650+ cities and 28 states FY22: INR 11,
Slide 7: Our Journey to Become India's #1 S&A Footwear Brand
Our Journey to Become India’s #1 S&A Footwear Brand Backward integration initiative – Upper Manufacturing facility at Haridwar Backward integration Inception of the & Successful launch of INR initiative - Sole EBO store count “Campus” Brand On-boarded as investors 3,000+ MRP shoes Manufacturing faci
Slide 8: Product – Placement – Promotion Interplay Generating Business MOAT
Product – Placement – Promotion Interplay Generating Business MOAT Internal Strengths Curated Over the Years Across Product Design, Supply Chain, Distribution and Marketing is Onerous to Replicate Sustained focus on Product Innovation and Design Integrated Manufacturing Ecosystem Exclusive ancillary
Slide 9: Experienced Management & Professional Board at the Helm of Affairs
Experienced Management & Professional Board at the Helm of Affairs Key Management Board of Directors Mr. H.K. Agarwal Mr. Nikhil Aggarwal Raman Chawla ◼ Beam Global Mr. H.K. Agarwal Mr. Nikhil Chairman & CEO & Whole-Time Chief Financial ◼ One of the ◼ One of the ◼ Reckitt Benckiser Managing Director
Slide 10: Business Highlights
02 Business Highlights
Slide 11: Key Pillars of Business MOAT
Key Pillars of Business MOAT 1 Superior Product 2 3 4 5 Vertically Integrated Omni-Channel Customer Innovative Marketing Digitization of Sales Innovation and Design Manufacturing Ecosystem Experience Capabilities Process Capabilities Move from stand-alone trade Annual installed assembly Innovation,
Slide 12: Superior Product Innovation and Design Capabilities
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 1 Superior Product Innovation and Design Capabilities Highly experienced in-house Global Design Consultancy Network team of 50 designers and Design Sourcing Tie-ups Deliver New and Differentiated Offerings for the Indian Mark
Slide 13: Vertically Integrated Manufacturing Ecosystem
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 2 Vertically Integrated Manufacturing Ecosystem Annual Assembly Capacity of 28.8mm pairs (1) Uppers 16.7% ✓ c.90% domestic raw material sourcing Haridwar 83.3% ✓ Exclusive ancillary network Shoe Sole Ability to manufacture 37
Slide 14: Omni Channel Platform to Reach Customers Where They Are
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 3 Omni Channel Platform to Reach Customers Where They Are • Pan-India Distribution Presence Pan India Distribution Presence All-Inclusive Use of E-commerce Channels (20,000 Retail Touchpoints in Established Pan-India sales ne
Slide 15: Strong Brand Recognition & Innovative Marketing
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 4 Strong Brand Recognition & Innovative Marketing Creating India’s Largest S&A Footwear Brand Brand building initiatives among all segments with acceptance levels across target customers groups Marketing Strategy Pivoted away
Slide 16: Digitization of Sales Process Generating a Virtuous Flywheel
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 5 Digitization of Sales Process has Generated a Virtuous Our Data Centric Approach Flywheel enabling Faster Speed to Market allows us to understand 7 1 Consumer Demand Trends, Design & Colour Preferences, Investment in Faster
Slide 17: Business Performance – Q1 FY23
03 Business Performance – Q1 FY23
Slide 18: Q1 FY23 – Financial & Business Highlights
Q1 FY23 – Financial & Business Highlights Consolidated In INR mm Consolidated In INR mm Parameters Q1 FY23 Q1 FY22 YOY Growth % Parameters TTM FY23 FY22 YOY Growth % Revenue 3377.1 1353.0 149.6% Revenue 13965.9 11941.8 16.9% EBITDA 622.4 160.6 287.5% EBITDA 2901.0 2439.2 18.9% PAT 286.6 19.8 1349.7%
Slide 19: Q1 FY23 and TTM Q1 FY23 Financial Highlights (revenue, volume, ASP)
Q1 FY23 and TTM Q1 FY23 Financial Highlights (consolidated) Revenue from Operations (1) (INR mm) Volume Sold (# mm) Average Selling Price (INR / Pair) 4,335.5 6.6 5.6 5.6 584 577 657 627 604 3,523.4 3,377.1 4.7 497 440 2,729.9 3.1 2.3 1,353.3 1,353.0 276.8 0.6 Q1FY20 Q1FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY
Slide 20: Q1 FY23 and TTM Q1 FY23 Financial Highlights (EBITDA, PAT)
Q1 FY23 and TTM Q1 FY23 Financial Highlights (consolidated) Revenue from Operations (1) (INR mm) EBITDA (2) (INR mm) Profit After Tax (3) (INR mm) EBITDA Margin (%) PAT Margin (%) 4,335.5 3,523.43,377.1 19.1% NM 11.9% 20.5% 21.5% 22.3% 18.4% 8.9% NM 1.5% 10.3% 12.6% 11.2% 8.5% 2,729.9 933.2 547.2 78
Slide 21: TTM Q1 FY23 (Consolidated) Business Highlights
TTM Q1 FY23 (Consolidated) Business Highlights Cash Conversion Days (1) Net Debt (2) Day Sales Outstanding INR mm 110 79 69 40 35 122 120 1,730.0 1,829.8 1,739.5 107 98 83 1,343.9 1,238.3 FY19 FY20 FY21 FY22 TTM Q1 FY23 FY19 FY20 FY21 FY22 Q1 FY23 Net Debt (2) / EBITDA Return on Equity (%) Return on
Slide 22: Statement of Profit & Loss (Consolidated)
Statement of Profit & Loss (Consolidated) Particulars (INR mm) Q1 FY23 Q4 FY22 Q1 FY22 FY 22 Revenue from Operations 3,377.1 3,523.4 1,353.0 11,941.8 Other Income 5.5 2.9 11.6 24.0 Total Income 3,382.6 3,526.3 1,364.6 11,965.8 Cost of Materials Consumed, including packing material 2,016.2 2,1
Slide 23: TTM Q1 FY23 Revenue (Consolidated): Segmental Analysis
TTM Q1 FY23 Revenue (Consolidated): Segmental Analysis Trade Distribution Channel 8,620.2 7,432.0 6,412.0 Campus Activewear Limited (Consol.)(1) 5,548.2 5,352.5 13,965.9 11,941.8 FY19 FY20 FY21 FY22 TTM Q1 FY23 7,320.4 7,112.8 5,948.7 Direct to Consumer Channel FY19 FY20 FY21 FY22 TTM Q1 FY23 5,239.
Slide 24: Growth Vectors
04 Growth Vectors
Slide 25: Prime Growth Vectors Going Forward
Prime Growth Vectors Going Forward Leverage our Brand and Leadership Position with Enhanced Focus on Women, Children & Kids Steadily Extend into New Territories By Deepening our Presence in Western and Southern Regions of India Further Accentuate our Omni-channel Experience Sustained Focus on Premiu
Slide 26: Appendix – Industry Landscape & Positioning
05 Appendix Industry Landscape & Positioning
Slide 27: India S&A Footwear Market has Attractive Industry Prospects
India S&A Footwear Market has Attractive Industry Prospects Within Indian Retail Industry, Footwear is Expected to be among the fastest Growing segments within the Retail Industry Footwear is Expected to be One of Indian Footwear Market Size Total Addressable Market (FY25P) 12% 15% 19% 21% the Faste
Slide 28: S&A Footwear in India is Highly Underpenetrated
S&A Footwear in India is Highly Underpenetrated Structural Growth Drivers in Place – Increase in Fitness Consciousness and Disposable Income Annual Footwear Consumption Per Capita Annual Expenditure on Share of S&A in Footwear Retail S&A Footwear (pairs per capita) (in US$) India’s Per Capita Footwe
Slide 29: Indian S&A Market has a Long Runway for Growth
Indian S&A Market has a Long Runway for Growth Poised for Similar Growth as Witnessed by Chinese Athleisure Market More Than 15 Years Ago Structural Growth Drivers – Benchmarking Spending on Sports to Increase as Economy Develops Scope for Increase in Sports Participation $63,544 Spending on sports
Slide 30: Widest Presence Across Price Segments
Widest Presence Across Price Segments Largest Market Coverage Addressing 85%+ of the S&A Footwear Market S&A Footwear Revenue Contribution Market (FY21) for CAMPUS INR 90bn FY19 FY22 Premium-Plus Nike (Above INR 3,000) 13% Puma Adidas Priced above INR 1,500 Expansive and Diverse Product Portfolio ac
Slide 31: Thank You
Thank You Investor Relations Desk ird@campusshoes.com 30