Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY15 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, January 2015
Slide 1: Vaibhav Global Limited Financial Results Presentation Q3 & 9MFY15
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q3 & 9MFY15 January 2015
Slide 2: Safe Harbor
Safe Harbor 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 ma
Slide 3: VGL Overview
VGL Overview Vertically-integrated electronic retailer • End-to-end B2C business model in the electronic retail industry • Proprietary TV home-shopping and e-commerce platforms Liquidation Channel and The Jewellery Channel are strong brands • 98 million (FTE) households on TV shopping in the US, UK
Slide 4: Table of Contents
Table of Contents Q3 & 9M FY15 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for Q3 / 9M FY15
Key Highlights for Q3 / 9M FY15 Home TV Network Reaches Over 100 Million Households, FTE Increases 9% • 98 million households on full time equivalent (FTE) basis • 25 million households in the UK • 70.5 million households in the US • 2.3 million households in Canada Retail Volumes Improve 5% YoY to
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q3 & 9M FY15 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “This has been a year of transition during which we have made vital investments in enhancing our physical, technology and human resource infrastructure to support our re
Slide 7: Financials – Q3 & 9M FY15 Performance (Revenues)
Financials – Q3 & 9M FY15 Performance (Revenues) Revenues (Rs. crore) 939 1,017 370 394 Q3 FY14 Q3 FY15 9M FY14 9M FY15 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 674 710 184 159 106 122 259 266 71 68 59 41 Q3 FY14 Q3 FY15 9M FY14 9M FY15 Q3 FY14 Q3 FY15 9M FY14 9M FY15 Q3 FY14 Q3 FY1
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 5,033 23 23 24 23 4,776 1,835 1,877 Q3 Q3 9M 9M Q3 Q3 9M 9M • Web sales now contribute 28% of sales FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15 volume • Volume growth driven by expansion of Web Sales fashion jewelry and l
Slide 9: Financials – Q3 & 9M FY15 Performance (Margins)
Financials – Q3 & 9M FY15 Performance (Margins) Rs. crore Gross Profit Gross margin 700 70% 600 62% 62% 65% 60% 59% 500 60% • Gross margins largely stable 55% 400 50% 300 45% 200 40% 100 35% 224 232 579 626 0 30% Q3 FY14 Q3 FY15 9M FY14 9M FY15 Note: Direct costs for calculation of gross profit incl
Slide 10: Financials – Q3 & 9M FY15 Performance (Profits)
Financials – Q3 & 9M FY15 Performance (Profits) Rs. crore PAT * PAT margin 100 18.0% 80 15.0% • Quarterly PAT better due to lower interest 10.5% 12.0% costs and lower tax provision. YTD PAT 60 9.6% 7.8% 9.0% lower due to lower EBITDA and higher 9.4% taxes. 40 6.0% 20 3.0% 35 37 98 79 - 0.0% Q3 FY14
Slide 11: Table of Contents
Table of Contents Q3 & 9M FY15 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 11
Slide 12: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,298 1,017 893 647 526 FY11 FY12 FY13 FY14 9M FY15 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 687 710 483 225 395 184 162 117 85 91 89 122 46 73 FY11 FY12 FY13 FY14 9M FY11 FY12 FY13 FY14 9M FY11 FY12 FY13 FY14 9M FY15
Slide 13: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 6,420 41 5,239 5,033 30 3,268 23 24 23 • Good volume growth driven by strong 2,039 customer engagement • ASP has been stable even with portfolio FY11 FY12 FY13 FY14 9M FY11 FY12 FY13 FY14 9M transition from fine jewel
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 900 64% 800 62% 61% 62% 700 60% 59% 60% 600 • Gross margins largely stable. 500 58% 400 55% 56% 300 54% 200 100 52% 289 384 533 789 626 0 50% FY11 FY12 FY13 FY14 9M FY15 Rs. crore EBITDA EBITDA margin 180 13% 14% 160 13% 12%
Slide 15: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 12% 12% 160 12% 140 10% 120 8% 8% 8% • Margin impact due to taxes in 14-15 100 8% and lower EBITDA 80 6% 60 4% 40 2% 20 42 79 78 153 86 0 0% FY11 FY12 FY13 FY14 9M FY15 Rs. per share EPS 48 25 27 24 13 FY11 FY12 FY13 FY14 9M FY
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 205 203 307 265 205 233 159 78 58 66 FY11 FY12 FY13 FY14 9M FY15 FY11 FY12 FY13 FY14 9M FY15 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due * During FY13 fixed assets we
Slide 17: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Rs. crore Free Cash Flow * Rs. crore Operating Cash flow 178 160 77 82 63 64 54 52 48 44 FY11 FY12 FY13 FY14 9M FY15 FY11 FY12 FY13 FY14 9M FY15 *Includes Foreign Currency Transaction Reserve *Includes Foreign Currency Transaction Reserve Key usage areas for
Slide 18: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) ROE ROCE 68% 60% 65% 43% 40% 34% 37% 36% 23% 15% FY11 FY12 FY13 FY14 9M FY15 FY11 FY12 FY13 FY14 9M FY15 18
Slide 19: Table of Contents
Table of Contents Q3 & 9M FY15 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 19
Slide 20: Market Opportunity
Market Opportunity US market size (US$ Bn) UK market size (US$ Bn) Fashion Fashion Accessories Accessories 17 6 Fine and Fine and Fashion Fashion Jewelry 67 Jewelry 8 Market share gains through expanded distribution network and introduction of collections/designs mapping market trends 20
Slide 21: Product Profile
Product Profile Watches, handbags, scarves, phone protective shells etc. Bracelets, bangles, earrings, studded jewelry etc. Office and home décor, etc. Continuously expanding product range – portfolio of 65,000 designs augmented with launch of lifestyle accessories 21
Slide 22: US Market Access on Liquidation Channel
US Market Access on Liquidation Channel Channel #274 Channel #399 & 1399 Channel #159 Channel #75 & 226 * * * https://www.liquidationchannel.com * * * Different channel # across various locations Access to 73 million (FTE) of the 116 million households in the US 22
Slide 23: UK Market Access on The Jewellery Channel
UK Market Access on The Jewellery Channel Channel #49 Channel #650 Channel #815 Channel #757 www.thejewellerychannel.tv Access to 25 out of the total 25 million households 23
Slide 24: Sourcing Markets
Sourcing Markets Manufacturing facility in Jaipur, India Production capacity – 4 million pieces p.a. ISO 9001:2008 manufacturing facilities Over 2,200 people in India across corporate, manufacturing, design, sales & marketing, customer service, logistics etc Sourcing operations from fashion centric
Slide 25: Consumption Markets
Consumption Markets Access to over 98 million (FTE) households on TV homeshopping in the US, UK and Canada • Affiliate agreements with major cable, satellite providers • Improved product presentation by investing into studio facilities The Jewellery Channel Liquidation Channel UK USA • The Jewellery
Slide 26: Sourcing Methodology
Sourcing Methodology Assessing value perception – design / fashion trend / price in target Competitive markets Pricing Mapping latest fashions Vendor Core evaluation competency process of vendor Rapid turnaround Sourcing from appropriate micro-markets in China/Asia Delivery/ Low Focus on best qualit
Slide 27: Aligned with Demand Patterns
Aligned with Demand Patterns Process Buyer discussions Evaluation/ feedback of last year’s hits/misses Product Valentine Day & Mothers’ Summer Product development strategies – by Spring Product Line Day Line category Process begins – September Process begins – December Process begins – Decembe
Slide 28: Management Team
Management Team Sunil Agrawal Chairman and Managing Director Established Vaibhav in 1980 as a first generation entrepreneur and has led the company’s transition into a leading brand for fashion jewelry and lifestyle accessories Travels extensively across the world, overseeing operations, sourcin
Slide 29: Management Team
Management Team Praveen Tiwari Pushpendra Singh Vice President , STS China Vice President , Human Resources Asia Over 15 years at VGL, currently heads the group’s China 19 years of experience in HR with a range of Indian and Hong Kong sourcing operations companies such as NTPC, Jindal Steel and
Slide 30: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Hemant Sultania Vaibhav Global Ltd. Tel: +91-141-2770648 Email: Hemant@vglgroup.com Shiv Muttoo / Karl Kolah CDR India Tel: +91 22 6645 1207 / 1220 Email: shiv@cdr-india.com karl@cdr-india.com 30
Slide 31: Thank You
Thank You 31