Pc Jeweller Ltd. · NSE:PCJEWELLER
Pc Jeweller — Investor Presentation (November 2017)
56 slides from Pc Jeweller's investor presentation, November 2017
Slide 1: PC Jeweller Investor Presentation November 2017
PC Jeweller Investor Presentation November 2017
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by PC Jeweller Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securitie
Slide 3: Agenda
Agenda Industry Overview World of PC Jeweller Financial Overview Way Forward 3
Slide 4: Industry Overview
Industry Overview
Slide 5: India's Love for Jewellery
India’s Love for Jewellery One of the largest jewellery markets in the world* (USD Bn) 96 The Quirk’s of the Indian Market 62 50 ✓ Gold is considered as a status symbol as well as auspicious 5 8 ✓ Indians spend a significant UK Japan India USA China proportion of their wedding budget on jewellery ✓
Slide 6: Increasing affordability of Indians
Increasing affordability of Indians Increasing purchasing power with annual GDP growth of more than 7%. ~65% population below the age of 35 years Wealth Millennials The key elements of Consumption Growth Availability of financing Financing options Increase in disposable incomes, Brand digitization,
Slide 7: How India buys its gold jewellery
How India buys its gold jewellery ✓ India sees ~8-10 mn weddings each year Type of Jewellery People Spend ON which contribute to over 60% of the Fashion, jewellery demand 10% ✓ Bangles & Chains are most popular item sold Daily Wear, 30% Bridal, 60% Market Share National Chain, 7% Regional Players, 2
Slide 8: Visible shift in Demand Scenario
Visible shift in Demand Scenario Earlier Changing trends Present Unorganised - Organised - Local Jeweler Brands and Hallmark Rising Incomes Increasing regulations Highly Unregulated by the Government Changing Preferences Silver & Gold Gold & Diamond Jewellery Jewellery Favourable Demographics Invest
Slide 9: Along with increasing Regulations by the Government…
Along with increasing Regulations by the Government… ….Driving towards an Organised Market ✓ Mandatory PAN card on transactions above Rs. 2 lacs w.e.f. Initiatives Jan 1, 2016 ✓ Compulsory Hallmarking of Gold in the last Jewellery few years ✓ Levy of 1% excise duty w.e.f. Mar 1, 2016 ✓ Demonetisatio
Slide 10: GST: A Strong Platform for Organised Retailers
GST: A Strong Platform for Organised Retailers Earlier Tax Rate : Post GST: Modest increase in Gold Jewellery: ~2% Gold Jewellery: 3% tax rate not expected to impact demand Benefit For Organised Player: ✓ Under GST firms manufacturing inhouse will have advantage ✓ A firm can offset tax it pays again
Slide 11: World of PCJ
World of PCJ
Slide 12: The world of PC Jeweller
The world of PC Jeweller Established in 2005 A Leading player in today the 2nd Largest Indian Wedding listed jewellery Jewellery Market retailer in India Featured in the list of 20 fastest growing Luxury Goods companies across the world Alongside: Pandora, Fossil, Graff #44 in the Top 100 Diamonds,
Slide 13: Our DNA built for performance…
Our DNA built for performance… Grown from 1 showroom in Karol Bagh (in 2005) to 84 showrooms today ✓ Focussed on Tier I & Tier II locations to leverage the income growth and brand awareness in such locations ✓ Consistently innovating in terms of designs, product ranges and leveraging technology Comm
Slide 14: …Leading to fastest growth since inception
…Leading to fastest growth since inception AZVA AZVA “#2 largest listed jeweller in India in a span of 10 years” Online Platform Online Platform 5 Franchisee Stores 9 Franchisee Stores 75 Showrooms 84 Showrooms 17 instore Exclusive 17 instore Exclusive 24 Showrooms Lounges Lounges 1 Flagship Showroo
Slide 15: …With PAN India Presence
…With PAN India Presence Jammu Bhiwani Amritsar Ludhiana Chandigarh Solan Yamuna Nagar ✓ 84 showrooms as of November 2017 Dehradun Haldwani Hissar ✓ 67 cities and 20 states Sonipat Haridwar Moradabad Sri Ganganagar Ghaziabad (3) Rohtak New Delhi (15) Noida (2) Gurugram Bareily Faridabad Jaipur Mathu
Slide 16: We stand apart with our offerings…
We stand apart with our offerings… High Street Locations Mass Market Locations Franchisee Exports Online Platform Bridal to Fashion Offerings Flagship Store at Karol Bagh, New Delhi 16
Slide 17: Targeted market approach
Targeted market approach Customer Metro Tier I Tier II Tier III Segment ✓ Exclusive Lounges Ultra Rich ✓ Started this concept in select showrooms ~3 years back. ✓ Focused on high end designer pieces ✓ High Street Showroom (avg. 5,000 sq ft) ✓ Franchisee showrooms across Rich and Upper ✓ Own showroom
Slide 18: High Street Stores – creates favorable brand image
High Street Stores – creates favorable brand image ✓ Located at high street locations in the city Trust and Ambience ✓ An element of ‘Trust’ to customers seeking one-stop for wedding jewellery products ✓ Have larger variety across price range, much wider than its competitors Large Product Variety ✓
Slide 19: Mass Market Stores – taps into newer micro markets
Mass Market Stores – taps into newer micro markets ✓ In our endeavour to innovate and target newer micro markets, we have moved beyond high street locations to local markets. ✓ Target middle class/ lower middle class customers who are not very comfortable in visiting showrooms at high street locatio
Slide 20: Franchisee Showrooms
Franchisee Showrooms ✓ Targets smaller Indian cities (Tier 2 and 3) ✓ Majority of smaller Indian cities still lack branded jewellery outlets ✓ However, the consumers of these locations also are brand conscious and want assurance of purity, quality as well as variety and range ✓ In light of this, we
Slide 21: Online Platform
Online Platform ✓ Indian Online jewellery segment is ripe for disruption and is expected to reach 2-3% of jewellery market in next 4 years creating a $2-3 bn market. Currently it is estimated at only 0.20% of the total jewellery market ✓ Considering the potential we launched our ecommerce vertical a
Slide 22: WearYourShine.com is now Aucent.com
WearYourShine.com is now Aucent.com We have rebranded and relaunched our online portal with a fresh look and brand new features. 22
Slide 23: Aucent.com – What's New
Aucent.com – What’s New • Integrated inventory of stores in Delhi / NCR with online Online-Offline database for ready dispatch of orders Integration • 1,000+ designs available for shipping the same day • Rolling out for rest of the stores in process • New collections from PC Jeweller New Products /
Slide 24: Adapting Technology
Adapting Technology • Reducing Capital Blockage and Digitizing inventory across increasing consumer choice showrooms • Inventory at all showrooms visible to customer at every showroom • Online Offline integration Online kiosk stores across all the • Catering to customers beyond existing showrooms we
Slide 25: Going Global
Going Global Exports Further exploring potential of… ✓ Promoters have over 2 decades of experience in Exports ✓ Focus on handmade designer gold jewellery ✓ Target: Indian diaspora and local population outside India ✓ Provides economies of scale to Company Branded ✓ Provides access to international d
Slide 26: Brand Ambassadors
Brand Ambassadors ✓ Being in to jewellery retail business and having a pan India presence we needed a face for our brand to which the customers can connect and which helps to create trust and faith in our products ✓ We have signed Akshay Kumar & Twinkle Khanna as our brand ambassadors which fulfil t
Slide 27: Financial Overview
Financial Overview Qin
Slide 28: Performance since IPO (Dec 2012)
Performance since IPO (Dec 2012) Revenues (Rs. Crores) Consistent focus on Retail Sales (Rs. Crores) 8,099 +21.6% 7,232 8,099 7,232 6,349 34.2% 6,349 5,325 28.9% 5,325 28.5% 4,018 24.8% 4,018 3,042 3,042 25.7% 33.0% 71.5% 71.1% 65.8% 75.2% 74.3% 67.0% FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY1
Slide 29: Leverage Strategy
Leverage Strategy We make PROFITS, We pay DIVIDENDS, and We maintain extremely LOW LEVERAGE PAT (Rs Crores) Strong CASH PAT generation (Rs. Crores) 431 453 378 399 401 422 356 369 291 301 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Dividend Payout Ratio Debt to Equity Ratio 15.0% 15.0% 15.0% 0
Slide 30: Financial Performance: Profit & Loss Statement
Financial Performance : Profit & Loss Statement Particulars (Rs. Crores) Q2 FY 2018 Q2 FY 2017 H1 FY 2018 H1 FY 2017 Revenue from Operations 2,622.32 2,174.29 4,740.86 3,838.75 Domestic Retail 1,850.96 1,422.38 3,233.51 2,472.15 Exports 771.36 751.92 1,507.35 1,366.59 Gross Margins (%) 12.92% 12.43%
Slide 31: Financial Performance Q2 & H1FY18 Highlights
Financial Performance Q2 & H1FY18 Highlights Highlights: Domestic Business Particulars (Rs. Crores) Q2 FY 2018 Q2 FY 2017 H1 FY 2018 H1 FY 2017 Revenue from Operations 1,850.96 1,422.38 3,233.51 2,472.15 Gross Margins (%) 14.65% 14.33% 16.55% 17.06% EBITDA Margins (%) 12.15% 11.08% 13.54% 13.28% PBT
Slide 32: Financial Performance: Balance sheet
Financial Performance : Balance sheet As on As on Particulars (Rs. Crores) 30-Sep-17 31-Mar-17 Equity 3,642 3,367 Equity share capital 394 179 Other equity 3,248 3,188 Total Debt 644 692 Long Term Borrowings 42 58 Short Term Borrowings 602 634 Trade Payables 2,995 2,807 Other Liabilities 415 352 Fix
Slide 33: Way Forward
Way Forward 33
Slide 34: Our Curated focus areas
Our Curated focus areas Expanding Product Offerings 01 Going Global 05 02 Targeted market approach 04 03 Technology ROE enhncement ✓ E-Commerce ✓ Brand Leverage 34
Slide 35: Franchising – A Strategy for Growth
Franchising – A Strategy for Growth Reduced capital outlay Higher Profitability Higher ROCE Scalability with Strong Operating Higher ROCE negligible capex Leverage Economies of Scale to No major capex required kick in as transaction for expansion and Lower inventory costs volumes increase over payba
Slide 36: What we are focussed on for Future
What we are focussed on for Future ✓ Extensive focus on growth and capture of more market share by speeding up the store opening process ✓ Focus on Topline without diluting Bottom line ✓ Moving up the value chain by introducing “different” type of jewellery like Flexia, Azva etc. ✓ Emphasis on diamo
Slide 37: What we are focussed on for Future
What we are focussed on for Future ✓ Focus on promoting Hallmarked Gold jewellery to enable conversion of customers from unorganised to organised ✓ Extensive focus on CRM (data capture, data analysis and usage) across all showrooms for marketing/ offering/ branding of our products ✓ Focus on Digital
Slide 38: AZVA
AZVA 38
Slide 39: 'AZVA'
‘AZVA’ Product Design ✓ New collection for the season introduced with 150+ new designs including new studded range with uncut diamonds in handcrafted gold 39
Slide 40: Collaboration with University of Arts, London
Collaboration with University of Arts, London Design pattern with Seven circles symbolising the seven vows, core idea of the brand Finest of Indian handcraf ting interpreted by desig ners with western sensib ilities in a wide array of d esigns – statement shows topper to everyday conte mporary produ
Slide 41: New brand acquisition
New brand acquisition ✓ LPTPL signed agreement to acquire LoveGold ✓ Created in 2012 by the World Gold Council, LoveGold is a unique global digital ecosystem leveraging style, designers and jewellery ✓ Community of 700K global jewellery audience with a high desire to buy jewellery online ✓ Instantly
Slide 42: Upstream integration (AZVA)
Upstream integration (AZVA) ✓ Own manufacturing unit in Mumbai now fully operational integrated to the in- house design studio ✓ The facility is contributing to increasing share of in-house volumes, better margins and greater exclusivity on design and craftsmanship ✓ Developed new products with Japa
Slide 43: Highlight – Retail (AZVA)
Highlight – Retail (AZVA) Prominent branding in AZVA brand lounges and zones in 32 leading stores in India 43
Slide 44: New Campaign Imagery
New Campaign Imagery Contemporary bridal and “Life Beyond Lockers”
Slide 45: PCJ Collections
PCJ Collections 45
Slide 46: Swarn Dharohar collection to be launched soon
Swarn Dharohar collection to be launched soon
Slide 47: Sagar Manthan collection to be launched soon
Sagar Manthan collection to be launched soon
Slide 48: Successfully Running Collections
Successfully Running Collections Garland of Love 48
Slide 49: Successfully Running Collections
Successfully Running Collections Ferns and Turns 49
Slide 50: Successfully running Collections
Successfully running Collections
Slide 51: Successfully running Collections
Successfully running Collections
Slide 52: Expanding Product Offerings
Expanding Product Offerings New Collections Launched in Q2 FY18 - Grecia A fine range of diamond jewelry that are an epitome of grace, delicacy and brilliance. The collection comprises of both minimal and chic daily wear as well as flamboyant occasion wear which are fully studded with diamonds and c
Slide 53: Expanding Product Offerings
Expanding Product Offerings New Collections Launched in Q2 FY18 - Amalia Is for Young at heart women, who love to experiment their looks with tradition yet elegant accessories to match their ensemble and shine out in parties and occasional get togethers
Slide 54: Expanding Product Offerings
Expanding Product Offerings New Collections Launched in Q2 FY18 – Holy Spin Inspired by the Tibetan praying wheel, the collection comprises of delicate long jhumkas that are appropriate for any festive or social gatherings. Can be worn as either a stud or big dangling jhumka, the jewelry is versatil
Slide 55: Expanding Product Offerings
Expanding Product Offerings New Collections Launched in Q2 FY18 – SWAY WITH ME A perfect piece for your friends reception or any party, to turn all heads towards you and leave them awestruck. Light weight collection that doesn’t stop you from dazzling on the dance floor. “Swaying in the most spectac
Slide 56: For further information, please contact:
For further information, please contact: Company : Investor Relations Advisors : PC Jeweller Ltd Strategic Growth Advisors Pvt. Ltd. CIN: L36911DL2005PLC134929 CIN: U74140MH2010PTC204285 Mr. Sanjeev Bhatia Mr. Rahul Agarwal / Mr. Shrikant Sangani Email: sanjeev.bhatia@pcjewellers.com rahul.agarwal@s