Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY21 Earnings Presentation
33 slides from Vaibhav Global's earnings presentation, January 2021
Slide 1: Financial Results Presentation Q3 & 9M FY21
Vaibhav Global Limited Financial Results Presentation Q3 & 9M FY21 Global Retailer of Fashion Jewellery, Accessories, and Lifestyle Products on Home Shopping TV and e-Commerce Platforms
Slide 2: Safe Harbor
Safe Harbor This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its affiliated companies’ future business developments and econ
Slide 3: MD's Message
MD’s Message Our Q3 results mark another quarter of relentless execution by VGL. Headline financial takeaways from the holiday season quarter are - Retail revenues, EBITDA and PAT increased by 30%, 37% and 41% respectively on Y-o-Y basis resulting in sustained margins expansion. Capital light model
Slide 4: Covid-19: Continuous Response
Covid-19: Continuous Response Covid-19 Response Employees Investors Customers Supply Chain Community ▪ ‘Borderless workforce’ ▪ Sustained focus on a ▪ Continued retail operations ▪ Temporary shutdown in ▪ Donated ~2,57,000 masks with no latency healthy Balance Sheet in US & UK operations balanced by
Slide 5: Q3FY21 – Key Highlights
Q3FY21 – Key Highlights ` Robust 30% Y-o-Y growth in retail revenues EBITDA grew by a strong 37% Y-o-Y with margins at 17.4%. Further improvement in return ratios with ROCE expanding to 56%(TTM basis) 9MFY21 Free Cash Flows enhanced to Rs. 166 crore Declared interim dividend of Rs. 7.50 per share ta
Slide 6: Table of Contents
TABLE OF CONTENTS 1 Business Background Details 2 Q3 & 9M FY21 Financial Performance 3 Financial Performance Trends 4 Annexures RESULTS PRESENTATION - JANUARY 2021
Slide 7: Business Background Details
Business Background Details RESULTS PRESENTATION - JANUARY 2021
Slide 8: Vaibhav Global Limited (VGL) at a Glance
Vaibhav Global Limited (VGL) at a Glance MISSION VISION Through the delivery of Be the Value Leader in high quality, affordable Electronic Retailing of products, made possible by our low cost direct sourcing, Jewellery & Lifestyle we change the world and Products touch people’s lives one piece at a
Slide 9: Our Global Presence
Our Global Presence Retail Markets Shop LC (US) | Shop TJC (UK) UK Sourcing ▪ India ▪ Sri Lanka US ▪ China ▪ US ▪ Thailand ▪ UK China ▪ Indonesia ▪ Mozambique ▪ Tanzania ▪ Germany ▪ Russia ▪ Italy India ▪ Morocco ▪ Turkey ▪ Myanmar ▪ Poland ▪ Madagascar ▪ Singapore ▪ Bolivia ▪ UAE ▪ Kenya ▪ Japan ▪
Slide 10: Vertically-integrated fashion retailer
▪ End-to-end B2C business model Vertically- Shop LC (US) & ▪ Presence on integrated Shop TJC (UK) ▪ TV Homes accessed (*FTE) - 99 million o Proprietary TV home-shopping fashion retailer are brands with ▪ Growing online presence o Proprietary e-commerce platforms on electronic strong customer ▪ Impro
Slide 11: 4R's of Customer Engagement
4R’s of Customer Engagement TV – Diverse Products Enduring relationships Linear / OTA Expanding wallet share Web - Deep value proposition Convenience Browsers / Mobile Apps / Cross-selling Social Media / Market-places / OTT Engrossing Content Digitalization/AI Reach Registrations Retention Repeat Pu
Slide 12: Our Omni-Channel Sales Platform – Shop LC (US)
Our Omni-Channel Sales Platform Shop LC (US) Shop LC Proprietary TV channels – 74 mn HH including Shop LC live TV stream on shoplc.com, YouTube, 17.5 mn OTA* HH* Facebook and Amazon Live TV Shop LC mobile app Social retail of targeted available on Marketplaces products on Proprietary web platform Go
Slide 13: Our Omni-Channel Sales Platform – Shop TJC (UK)
Our Omni-Channel Sales Platform Shop TJC (UK) Shop TJC Proprietary TV channels – 25 mn HH Shop TJC live TV stream available on tjc.co.uk, including 17 mn OTA* HH* YouTube and Facebook TV Shop TJC mobile app Social retail of targeted Proprietary web platform available on Marketplaces products on www.
Slide 14: Business Transition Dashboard
Business Transition Dashboard B2C Revenues by format B2C Revenues by product category TV revenues Web revenues Jewellery Non-jewellery revenues 19% 9% 22% 33% 36% 32% 81% 91% 78% 67% 64% 68% FY15-16 FY19-20 9M FY21 FY15-16 FY19-20 9M FY21 59% of web revenues in 9MFY21 were from Mobile platform Jewel
Slide 15: Q3 & 9M FY21 Financial Performance
Q3 & 9M FY21 Financial Performance RESULTS PRESENTATION - JANUARY 2021
Slide 16: Financials – Q3 & 9M FY21 Performance: Revenue Breakdown
Financials – Q3 & 9M FY21 Performance Revenue Breakdown – (Rs. crore) 25.9% Revenue 1,874 1,488 28.7% 725 563 Q3 FY20 Q3 FY21 9M FY20 9M FY21 Fashion Jewelry, Accessories & Lifestyle Products TV Revenue 24.1% Web Revenue 43.4% B2B Revenue 1189 66 667 958 24.0% 43.0% 465 71.6% 460 256 26.9% 3
Slide 17: Revenue Breakdown – Local Currency
Financials – Q3 & 9M FY21 Performance Revenue Breakdown – (Local Currency) Shop LC (US) Shop TJC (UK) (USD million) (GBP million) 19.9% 30.6% 172.2 60.1 143.6 46.1 20.0% 32.7% 65.0 24.3 54.2 18.3 Q3 FY20 Q3 FY21 9M FY20 9M FY21 Q3 FY20 Q3 FY21 9M FY20 9M FY21 RESULTS PRESENTATION - JANUARY 2021
Slide 18: Retail Performance Trends – Q3 & 9M FY21
Retail Performance Trends – Q3 & 9M FY21 Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 5,787 4,540 30.5 29.2 30.1 27.6 2,134 1,719 Q3 FY20 Q3 FY21 9M FY20 9M FY21 Q3 FY20 Q3 FY21 9M FY20 9M FY21 Web Sales Sales Volume ('000s) Average Selling Price US$ 4,061 23.7 22.1 3,047 2
Slide 19: Financials – Q3 & 9M FY21 Performance: Profits
Financials – Q3 & 9M FY21 Performance Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA 16.3% 17.4% 14.5% 16.1% Margin (%) 61.8% 61.4% 62.0% 62.7% Margin (%) 27.3% 40.2% 303 1,176 924 37.3% 216 27.7% 126 348 445 92 Q3 FY20 Q3 FY21 9M FY20 9M FY21 Q3 FY20 Q3 FY21 9M FY20 9M FY21 PAT EPS (Rs.
Slide 20: Financial Performance Trends
Financial Performance Trends RESULTS PRESENTATION - JANUARY 2021
Slide 21: Financial Performance Trends: Revenue Breakdown
Financial Performance Trends Revenue Breakdown – (Rs. crore) Revenue 25.9% CAGR: 11.7%* 1,986 1,874 1,814 1,436 1,571 1,488 1,276 FY16 FY17 FY18 FY19 FY20 9M FY20 9M FY21 Fashion Jewelry, Accessories & Lifestyle Products TV Revenue Web Revenue 43.4% B2B Revenue CAGR: 8.4% 24.1% CAGR: 29.8% 633 66
Slide 22: Retail Performance Trends
Retail Performance Trends Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 29.9 30.1 27.6 6,275 24.4 24.9 27.0 26.4 5,854 5,877 5,737 6,070 5,787 4,540 FY16 FY17 FY18 FY19 FY20 9M FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY20 9M FY21 Web Sales Sales Volume ('000s) Average Selli
Slide 23: Financial Performance Trends: Profits
Financial Performance Trends Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA Margin (%) 63.0% 60.1% 59.6% 62.5% 61.6% 62.0% 62.7% Margin (%) 5.9% 7.1% 10.1% 12.0% 13.9% 14.5% 16.1% 1,224 1,176 CAGR: 38.5% 40.2% 1,133 865 936 924 303 804 276 217 216 159 75 102 FY16 FY17 FY18 FY19 FY20 9M FY20
Slide 24: Financial Performance Trends: Balance Sheet
Financial Performance Trends Balance Sheet – (Rs. crore) Shareholders’ Equity Fixed assets including intangibles ** 926 ** 163 ** 166 697 ** 751 129 126 120 550 117 379 434 FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21 Net Debt Net Assets *** 55 6 ** 456 417 399 ** 394 (13) 305 3
Slide 25: Financial Performance Trends: Cash Flow
Financial Performance Trends Cash Flow – (Rs. Crore) Operating Cash flow Free Cash Flow 203 211 198 181 176 166 143 115 70 52 38 20 (28) (77) FY16 FY17 FY18 FY19 FY20 9M FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9MFY20 9M FY21 RESULTS PRESENTATION - JANUARY 2021 25
Slide 26: Financial Performance Trends: Key Ratios
Financial Performance Trends Key Ratios ROE (TTM) ROCE (TTM) 56% 30% 26% 46% 25% 23% 37% 16% 27% 12% 18% 13% FY16 FY17 FY18 FY19 FY20 9M FY21 FY16 FY17 FY18 FY19 FY20 9M FY21 Note - ROE – based on average net worth ROCE – based on average capital employed RESULTS PRESENTATION - JANUARY 2021 26
Slide 27: Annexures
Annexures RESULTS PRESENTATION - JANUARY 2021
Slide 28: Growth in Digital Commerce
Growth in Digital Commerce Industry US Retail & E-com Sales UK Retail & E-Com Sales Retail Sales ($ Tn) E-com as % of Retail Sales Retail Sales (£ Bn) E-com as % of Retail Sales 5.4 14.0% 5.2 5.0 439.5 436.2 4.8 423.7 405.7 387.6 27.9% 4.1 11.0% 9.9% 9.1% 19.1% 8.2% 17.9% 16.2% 14.5% 2016 2017 2018
Slide 29: Delivering Joy to Stakeholders: Customers, Employees
Delivering Joy to Stakeholders ▪ Unique Customers – 470,985 (Q3FY21 – TTM basis) ▪ Average qty. per customer – 27 pieces (Q3 FY21 – TTM basis) Customers ▪ High quality products & Exotic designs Rating ▪ Low Price – high quality - high affordability ▪ Omni-channel access ▪ Budget Pay (monthly install
Slide 30: Delivering Joy to Stakeholders: Investors, Environment, Society
Delivering Joy to Stakeholders ▪ Conferred ‘Best Governed Company’ by ICSI Investors ▪ Fortune Next 500 Rank Year 2017 2018 2019 2020 30% 56% ROE ROCE Rank #219 #162 #147 #132 ▪ Manufacturing unit at SEZ, Jaipur, has received LEED Platinum certification Environment ▪ Successfully Commissioned 1MW So
Slide 31: VGL Shareholder Base – As on 31-Dec-2020
VGL Shareholder Base – As on 31-Dec-2020 Holding as on Shareholding Pattern Key Shareholders (Holding 1%+) 31-Dec-20 Individual - >1% Others Promoter & Promoter Group 3.46% 6.13% 58.40% AIF 1.20% Nalanda India Fund Limited (FII) 10.33% Domestic Institutions Motilal Oswal Multicap 35 Fund (MF) 8.93%
Slide 32: Management Team
Management Team Mr. Sunil Agrawal Mr. Vineet Ganeriwala Mr. Amit Agarwal Mr. Srikant Jha Managing Director, VGL Group CFO, VGL Group President, Shop LC (US) Managing Director, Shop TJC (UK) Mr. Jay Chandran Mr. Raj Singh Mr. Pushpendra Singh Mr. Vivek Jain Chief Technology Officer, Vice President, S
Slide 33: Thank You
THANK YOU For more information please contact: Vaibhav Global Limited Vineet Ganeriwala, Group CFO Dipti Rajput, Head-IR Vineet@vglgroup.com Dipti.Rajput@vglgroup.com +91-141-2771975 +91-9116653352