V2 Retail Limited · NSE:V2RETAIL
V2 Retail — Q3 FY18 Earnings Presentation
38 slides from V2 Retail's earnings presentation, Feb 7, 2018
Slide 1: Exchange intimation letter under Regulation 30
V2 Retail Limited Date: February 7, 2018 To, National Stock Exchange of India BSE (Bombay Stock Exchange) Limited Limited 25" floor, Phirozeleejeebhoy Tower”, Exchange Plaza, Plot No. C/1, G Block, Dalal Street, Narimal Point, Mumbai-400001 BandraKurla Complex, Bandra(East) BSE Code-532867 Mumbai-40
Slide 2: Investor Presentation February 2018
Investor Presentation February 2018 V2 Retail Limited 1
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by V2 Retail Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, an
Slide 4: Navigating the Story of Fashion
Navigating the Story of Fashion Highlights Corporate Management Q3 & 9M Overview Team FY18 Business Industry Key Strategy Overview Financials 3
Slide 5: Q3 & 9 Months FY18 Financial Highlights
Q3 & 9 Months FY18 Financial Highlights 4
Slide 6: Highlights Q3 FY18
Highlights Q3 FY18 REVENUE Revenue for Q3 FY18 at ₹ 1,524 Mn as against ₹ 1,528 Mn for Q3 FY17. Sales per Sq.ft per month for Q3 FY18 was ₹ 991. ASP for Q3 FY18 was ₹ 316 EBIDTA GROSS PROFIT Growth of 25% from ₹ 182 Mn in Growth of 12% from ₹ 482 Mn in Q3 Q3 FY17 to ₹ 227 Mn in Q3 FY17 to ₹ 538 Mn i
Slide 7: Highlights Q3 FY18 & 9M FY18
Highlights Q3 FY18 & 9M FY18 Revenue (₹ Million) Gross Profit (₹ Million) and Gross Profit Margins 5,000 4,322 1,600 4,500 1,413 1,400 4,000 3,642 1,200 1,084 3,500 3,000 1,000 2,500 800 2,000 600 538 1,524 1,528 482 1,500 400 29.8% 32.7% 35.3% 31.5% 1,000 200 500 - - Q3FY18 Q3FY17 9MFY18 9MFY17 Q3F
Slide 8: Financial Q3 FY18 & 9M FY18
Financial Q3 FY18 & 9M FY18 Particulars (₹ in Mn) Q3 FY18 Q2 FY18 Q3 FY17 9M FY18 9M FY17 Revenue from operations 1,524 1,375 1,528 4,322 3,642 Other income 9 4 5 18 19 Total Income 1,533 1,379 1,534 4,340 3,661 Total Expenses 1,319 1,298 1,378 3,907 3,396 Profit before tax and exceptional items 214
Slide 9: Balance Sheet as at September 2017 (Ind AS)
Balance Sheet as at September 2017 (Ind AS) ASSETS (₹ in Mn) Sep-17 EQUITY AND LIABILITIES (₹ in Mn) Sep-17 NON CURRENT ASSETS 1,005 EQUITY 1,771 Property, plant and equipment 551 Equity share capital 309 Capital work-in-progress 56 Other equity 1,443 Other intangible assets 2 Money received against
Slide 10: Key Highlights
Key Highlights SHAREHOLDING PATTERN AS ON DECEMBER 31, 2017 Investment of ₹ 760 million by India 2020 Fund II, a fund affiliated Category of Shareholder % Holding with Lighthouse PROMOTER & PROMOTER GROUP 51.00% Gross Margin improved PUBLIC (A+B+C+D+E) 49.00% from 31.5% in Q3 FY17 to 35.3% for Q3 FY
Slide 11: Recent Promotional Campaign
Recent Promotional Campaign Pitampura 10
Slide 12: Recent Promotional Campaign
Recent Promotional Campaign Pitampura 11
Slide 13: Corporate Overview
Corporate Overview 7 KIDS FASHION: ©” ~ ‘FUN. + FASHION . i 4 lin ee A COMPLETE FASHION 3 oS’ FASHI
Slide 14: Corporate Overview
Corporate Overview V2 Retail Limited, incorporated in the year 2001 with an objective of The Company currently operates providing merchandise to masses at 43 stores spread across 14 states affordable price. with a total retail area in excess of 5.1 lac Sq. Ft. The Company went Public in the year 200
Slide 15: Milestones
Milestones First Inning A new beginning.. • Stores increased • The number of stores to 16 with more increased to 37 than 2 lac square • Crossed an aggregate of feet of retail space 4.60 lac square feet of • Turnover crossed retail space Incorporated in Turnover of Approx 1st Store in ₹ 225 crores •
Slide 16: Business Verticals
Business Verticals Business Verticals • Men’s Wear – Upper, Lower, Occasion Wear, Winter Wear, Sportswear, Formal, Casual, Sales Mix 3% • Ladies Wear – Ethnic wear, Upper, Lower, Occasion Wear, Winter Wear, Sportswear Men's Wear 26% 44% Ladies Wear • Kids Wear – Boy, Girls, Infants, Winter Wear Kids
Slide 17: Store Presence
Store Presence Himachal (1) Uttarakhand (2) Uttar Pradesh (9) Solan Gorakhpur 1; Gorakhpur 2; Haldwani; Roorkee Azamgarh; Jaunpur; Sitapur; Varanasi; Bhangel; Gazipur, Pratapgarh Arunachal (1) Itanagar NCR (3) Mahipalpur; Faridabad; Bihar (13) Kapasehra Patna ; Gaya; Darbhanga; Bhagalpur; Bettiah; A
Slide 18: Pleasant ambience for the aspiring class in Tier-II and Tier-III Cities
Pleasant ambience for the aspiring class in Tier-II and Tier-III Cities Ghazipur Hathibagan Average store sizes of 10,000 square feet Jaunpaur Agartala 17
Slide 19: Pleasant ambience for the aspiring class in Tier-II and Tier-III Cities
Pleasant ambience for the aspiring class in Tier-II and Tier-III Cities Hazaribagh Ranchi Pitampura Ranchi Average store sizes of 10,000 square feet Roorkee Guwahati 18
Slide 20: In Store Branding
In Store Branding LADIES Fashion ee COMFORTABLE acies Lower Ethnic Wear FASHION Ladies Lingerie 5 Lifestyle Men's Upper Men's Lower Occasional Wear Ethnic wear Lifestyle Boys Junior/Younger Girls Junior/Younger Infants Wear Lifestyle SECOND FLOOR 19
Slide 21: In Store Branding
In Store Branding Pitampura 20
Slide 22: Our Strengths
Our Strengths One Stop Family Shop with Pleasant Efficient ambience Supply Chain Management Centralized Pleasant Air- Procurement Conditioned stores & Quality Per Square Check ambience with trial Comprehensive SCM Feet Sales rooms. Product range system comprising of specifically caters to First mov
Slide 23: Management Team
Management Team 22
Slide 24: Experienced Promoter
Experienced Promoter Mr. Ram Chandra Agarwal Mrs. Uma Agarwal Mr. Akash Agarwal Chairman and Managing Director Whole Time Director Whole Time Director • Mr. Agarwal holds a bachelor’s degree in • Mrs. Agarwal holds a bachelor’s degree in • Mr. Agarwal holds a bachelor’s degree in Commerce. Arts. Com
Slide 25: Professional Team
Professional Team Mr. Manshu Tandon Mr. Rakesh Chander Mr. Abhishek Khemka Mr. Vipin Kaushik Joshi Head-Planning & CEO CFO Retail Head Sourcing • Has ~ 12 years of • Has ~ 25 years of • Has ~ 10 years of experience in accounts experience in the retail • Has ~ 19 years of experience in the retail & F
Slide 26: Business Strategy
Business Strategy v2 Value & Variety CTL oF 71 TLE @ MEN'S WEAR @ LADIES WEAR’@ KIDS WEAR A COMPLETE FAMILY FASHION STORE _&
Slide 27: Business Strategy: Drive Revenue
Business Strategy …1 NET PROFIT GROWTH Cross Promotion through Develop own brands & Intelligent Marketing increase share of Private label Drive Scaling up the retail Revenue Further Strengthening presence Procurement Network Full fill aspiration of neo Continue to provide latest middle class and mid
Slide 28: Business Strategy: Net Profit Growth
Business Strategy …2 SHAREHOLDERS RETURN System & Processes for better Inventory Management efficiency Net Profit Moving up the Value Chain Growth Zero working capital debt based expansion Focus on increasing same Profitable Growth stores sales growth 27
Slide 29: Industry Overview
Industry Overview v2 Value Variety ~A COMPLETE FAMILY FASHION STORE @ MEN'S WEAR @ LADIES WEAR @ KIDS WEAR
Slide 30: Indian Retail industry
Indian Retail industry Consumer Expenditure in India (US $ billion) • Indian retail is one of the fastest growing markets in the world due to economic growth • India is the world’s fifth largest global destination 3600 1595 in the retail space • Retail market in India is projected to grow from Retai
Slide 31: Indian Retail Industry
Indian Retail Industry Organised Retail in Nascent Stage Organised Retail Penetration (ORP) in India is low (7 per cent) compared with that in other countries, such as the US (85 per cent). This indicates strong growth potential for organised retail in India. The Indian retail market is in its n
Slide 32: Growth Drivers for Retail in India
Growth Drivers for Retail in India Brand Rise in Income Consciousness and Purchasing Power Change in Consumer Mindset Source: IBEF 31
Slide 33: Section 6: Key Financial Indicators
Section 6: Key Financial Indicators 32
Slide 34: Financial Highlights – Profit & Loss Account
Financial Highlights – Profit & Loss Account ₹ in Million Particulars FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 CAGR Revenue from Operations 402 1,057 2,289 2,868 3,199 4,714 64% Growth (%) 163.1% 116.6% 25.3% 11.6% 47.3% Gross Profit 91 267 567 814 956 1,381 72% GP Margin (%) 22.7% 25.3% 24.8% 28.4
Slide 35: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet ₹ in Million Particulars FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Equity Capital 224 224 224 236 249 309 Reserve & Surplus 2,530 2,478 2,407 2,505 2,626 3,445 Share Warrants - - - 7 85 19 Defered Tax Assets (2,691) (2,709) (2,711) (2,624) (2,544) (2,427) Networt
Slide 36: Robust Financial Performance
Robust Financial Performance Revenue (₹ Million) EBIDTA (₹ Million) and EBIDTA Margins PBT (₹ Million) and PBT Margins PAT (₹ Million) and PAT Margins 35
Slide 37: Key Operating Metrics
Key Operating Metrics No. of Stores and Retail Space (lakh sq.ft.) Inventory Holding Days Sales per Sq.Ft. (₹ Per Month) Rent per Sq.Ft. (₹ Per Month) 36
Slide 38: Thank You
Thank You For further information please contact: Investor Relation Advisors: Company: Dr. Rahul Porwal Mr. Vipin Kaushik (CFO) Marathon Capital Advisory Private Limited V2 Retail Limited Tel : +91-22-40030610 Tel : +91-11-41771850 Email : v2r.ir@marathoncapital.in Email : vipin.kaushik@vrl.net.in 3