Renaissance Global Limited · NSE:RGL
Renaissance Global — Investor Presentation (August 2022)
32 slides from Renaissance Global's investor presentation, Aug 12, 2022
Slide 1: Exchange cover letter for investor presentation
Ref. No.: RGL/S&L/2022/168 August 12, 2022 Bombay Stock Exchange Limited National Stock Exchange of India Ltd. Listing Department Exchange Plaza, Plot no. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai – 400 001 Mumbai - 400 051 Sub.: Investor
Slide 2: Investor Presentation August 2022
Investor Presentation August 2022
Slide 3: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Global Limited (“Renaissance” or the Company) that are not historical in nature. These forward-looking statements, which may include statements relating to future results of operations,
Slide 4: Content
Content Company Financial Annexure Overview Overview 4 18 28 3
Slide 5: Company Overview
iO Renaissance Global Limited Company Overview
Slide 6: Corporate Snapshot
Corporate Snapshot Global Jewellery Company focused on designing, manufacturing and distribution of branded jewellery 2,190 cr. 503 cr. 4 Total Revenues in Branded jewellery Licensing FY22 revenues (Rs.) in agreements with FY22 global brands Strong presence in global markets of North America, Europe
Slide 7: Presence in Key Global Markets
Presence in Key Global Markets Geographic Revenue Mix – FY22 17% 14% Western Europe Hong 68% USA Dubai Kong China N. America Middle East Others India Key Markets Design Team Manufacturing Units Emphasis on increasing footprint in key markets of North America, Europe & Asia 6
Slide 8: Financial Summary
Financial Summary Total Income (Rs. Cr.)* EBITDA (Rs. Cr.) & Margin (%) 9.1% 2,592.9 2,510.1 2,208.7 On a like-to-like basis, FY22 2,047.4 6.8% 200.5 Total Income growth stood at 1,814.7 5.5% 5.6% 4.8% 170.8 32% against reported growth of 124.9 115.6 8% 100.6 From FY18 to FY22, Renaissance has r
Slide 9: Building a Global Branded Jewellery Business
Building a Global Branded Jewellery Business Growing revenue contribution from Branded Jewellery Association with globally-recognized brands segment 23% Increased presence in high-potential key global 18% markets Renaissance’s Branded 13% Jewellery Better pricing on the back of branded products 10%
Slide 10: Branded Jewellery Business Model
Branded Jewellery Business Model Brands Design & Conceptualisation State-of-the-Art Manufacturing & Product Manufacturing Development Facilities Business-to- Distribution Direct-to- Business Consumer (D2C) (B2B) 9
Slide 11: 'Win-Win' Partnership with Global Iconic Brands
‘Win-Win’ Partnership with Global Iconic Brands Renaissance Global Global Brands PUSH STRATEGY PULL STRATEGY Conceptualisation & design Licensing agreements Brand development Manufacturing IP rights of brands Long-term license contracts Product marketing Marketing Distribution Spec
Slide 12: Growing Portfolio of Brands
Growing Portfolio of Brands Licensed Brands Partnership with Hallmark since 2015 Licensing arrangement with Disney since 2016 with the launch of Enchanted Disney Fine jewellery Success of brand unlocked more licensing opportunities Launched Disney Jewels in October 2019 & Disney Treasures in
Slide 13: Growing Portfolio of Brands
Growing Portfolio of Brands Owned Brands Launched first India-focused retail brand IRASVA in 2019 Operates 3 IRASVA stores in India Jewelili, a play on affordable fine jewellery collection launched in February 2020 Distributed through Amazon platform in addition to its own website Made for
Slide 14: Establishing High-Potential D2C Division
Establishing High-Potential D2C Division Launch Timeline June February November November February May Successfully developed 2019 2020 2020 2020 2021 2021 and launched 6 online stores in a span of 27 months Segment enjoys higher margins and healthy working capital cycle KINDLY CLICK ON THE LOGOS
Slide 15: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business During Q1 FY23, the direct-to-consumer business posted revenues of Rs. 40.7 crore compared to Rs. 25.0 crore in Q1 FY22, up by 62.9% YoY. For the period FY22, D2C business reported revenues of Rs. 123.8 crore compared to Rs. 64.9 crore in FY21, growing by
Slide 16: Key Developments
Key Developments Acquisition of Four Mine Inc. The Company, through its step down subsidiary Renaissance FMI Inc, acquired the assets of Four Mine Inc. Four Mine Inc. specializes in the sale of branded lab grown diamond engagement rings and this transaction will give Renaissance a strong foothol
Slide 17: Key Developments
Key Developments Established a Strategic Advisory Board (SAB) During FY22, the company constituted a Strategic Advisory Board consisting of three renowned executives, Mr. Bijou Kurien, Mr. Franseco Pesci & Mr. John Macantee, each of them having a rich & diverse industry experience. The SAB will
Slide 18: Growth Drivers
Growth Drivers Growing high-margin branded jewellery segment Extending licensing model to newer brands Increasing use of lab-grown diamonds to prioritize focus on sustainability Widening Omni-channel distribution network Inorganic growth opportunities 17
Slide 19: Financial Overview
O Renaissance Global Limited Financial Overview
Slide 20: Q1FY23 & FY22 Financial Summary
Q1FY23 & FY22 Financial Summary Total Income (Rs. Crore)* EBITDA (Rs. Crore) 37% 8% [1] EBITDA 9.9% 7.3% 5.6% 9.1% 2,209 Margin (%) 2,047 73% 200 2% 116 420 575 41 42 Q1 FY22 Q1 FY23 FY21 FY22 Q1 FY22 Q1 FY23 FY21 FY22 [1] With effect from 1st Apr 2021, the Company has re-negotiated terms with
Slide 21: Adjusted Financial Performance
Adjusted Financial Performance Adjusted PBT (Rs. Crore) YoY 118% Particulars (Rs. crore) FY22 FY21 Change (% ) 155 Reported PAT 106.5 46.3 130% 71 Add: Non-Cash Expenses FY21 FY22 Amortization Expenses [1] 8.16 10.21 Non Cash Lease Expense [2] 10.68 1.78 Adjusted PAT (Rs. Crore) Less: Tax effect on
Slide 22: Q1 FY23 & FY22 Operational Summary
Q1 FY23 & FY22 Operational Summary Revenue Break-up Q1 Q1 Shift % FY22 FY21 Shift % Revenue Mix (%) (Rs. Cr.) FY23 FY22 Plain Gold Customer Brands Branded Jewellery Branded Jewellery 124.1 91.5 35.6% 502.7 367.2 36.9% 22% 22% 23% - B2B 83.4 66.5 25.3% 378.9 302.4 25.3% - D2C 40.7 25.0 63.1% 123.8 64
Slide 23: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Free Cash Flow Generation (Rs. Cr.) 87 194 113 66 Strong FCF generation -351 Branded Jewellery - a low capital- intensive business FY19 FY20 FY21 FY22 TTM June 22 Operating leverage & minimal capex spends to further improve FCF generation, going ahead Cash, Cas
Slide 24: Strong Balance Sheet
Strong Balance Sheet Leverage Net Debt (Rs. Cr.) Equity (Rs. Cr.) Net debt/Equity (X) 0.76 0.52 Highly disciplined balance sheet 0.34 0.29 0.30 approach 665 699 929 843 924 503 Increase in capital deployment due to 364 242 280 318 higher business YoY reflecting in FY19 FY20 FY21 FY22 TTM June 22
Slide 25: Healthy Return Ratios
Healthy Return Ratios ROE ROE (Adjusted for Cash & Current Investments) 17.6% 18.9% 17.1% 16.6% 8.8% Q1 FY23 Return on Equity continues to be 12.9% 13.5% 12.0% 12.1% at 12.1% vs 12.0% for FY22. It is as high 6.0% as 16.6% without considering cash & FY19 FY20 FY21 FY22 TTM June 22 current investmen
Slide 26: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Y-o-Y Y-o-Y Particulars (Rs. Crore) Q1 FY23 Q1 FY22 FY22 FY21 Change (%) Change (%) Revenues from Operations 573.8 409.5 40.1% 2,189.8 2,031.2 7.8% Other Income 1.6 10.1 -83.8% 18.9 16.1 17.4% Total Income 575.4 419.6 37.1% 2,208.7 2,047.4 7.9% COGS 432.8 282.9 5
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs. Crore) June 2022 June 2021 Particulars (Rs. Crore) June 2022 June 2021 Shareholder's Funds 929.1 860.5 Non-Current Assets Equity Share Capital 18.9 18.7 Fixed Assets – Tangible & Intangible [2] 224.2 76.1 Reserves & Surplus 910.1 841.6 CWIP & Intangibles u
Slide 28: Conclusion
Conclusion Play on high-potential global branded jewellery industry ‘Win-Win’ partnership with global iconic brands Footprint in huge developed & developing global markets for branded jewellery Increasing scale to drive operating leverage across distribution channels High margin & low-capital intens
Slide 29: Annexure
») Renaissance Global Limited Annexure
Slide 30: Market Snapshot
Market Snapshot Shareholding Pattern* Promoter & Promoter Group 70.6% Foreign Institutions (FPI, FII & 2.5% NRI) Individual - >1% 3.8% Others 23.1% *Holding as on 30th June 2022 Key Market Statistics As on 30-June-2022 (Adjusted for Split) BSE/NSE Ticker 532923/RGL CMP (Rs) 115.8 Market Cap (Rs Cror
Slide 31: About Us
About Us Renaissance Global Limited (Renaissance) is a global branded jewellery player. Renaissance designs, manufactures and supplies branded jewellery across key high- potential markets in USA, Canada, UK & key Asian markets. The product portfolio encompasses Branded Jewellery, Customer Brands & P
Slide 32: Thank You
CO Renaissance Global Limited Thank You
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