Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — H1 FY2017 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, October 2016
Slide 1: Financial Results Presentation Q2 & H1 FY2017
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q2 & H1 FY2017 October 2016
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: Vaibhav Global – An Overview
Vaibhav Global – An Overview Vertically-integrated fashion retailer on electronic retail platforms • End-to-end B2C business model for fashion and lifestyle accessories • Proprietary TV home-shopping and e-commerce platforms Liquidation Channel and Jewellery Channel are strong brands • 112 million (
Slide 4: Vaibhav Global – Reach
Vaibhav Global – Reach The Jewellery Channel, UK TV channel retail Liquidation E-commerce website Channel USA TV channel retail E-commerce STS China, Hong Kong website Sourcing Gemstones STS Thailand STS USA Sourcing Gemstones B2B Wholesale distribution STS Bali Sourcing Gemstones VG
Slide 5: Table of Contents
Table of Contents Q2 & H1 FY17 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 5
Slide 6: Key Highlights for Q2 & H1 FY17
Key Highlights for Q2 & H1 FY17 Home TV Network Reaches 112 Million Households, FTE Increases 7% YoY • 112 million households on full time equivalent (FTE) basis • 25 million households in the UK • 86.6 million households in the US Q2FY17 Retail Volumes stable at 2 Million Units • Home TV shopping v
Slide 7: Chairman’s Message
Chairman’s Message Commenting on Q2 & H1 FY17 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said “The positive momentum in revenue performance continues in the second quarter with revenue growing by 21% on gross basis and 16% on net basis. This is at a time when ther
Slide 8: Financials – Q2 & H1 FY17 Performance (Revenues)
Financials – Q2 & H1 FY17 Performance (Revenues) Revenues (Rs. crore) 659 575 Net Revenue Local currency Q2 16-17 Q2 15-16 % change 299 345 LC - USD Mn 32.36 30.20 7.2% UK - GBP Mn 8.53 7.65 11.6% • LC USA growth of 7.2% YoY in Q2 • TjC UK grew at 11.6% YoY in Q2 Q2 FY16 Q2 FY17 H1FY16 H1FY17 Jewelr
Slide 9: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 2,992 25 2,810 23 23 22 1,493 1,574 • ‘Budget Pay’ EMI scheme and easy returns policy led to better average realizations which in turn affected ASP & volumes. Q2 Q2 H1FY16 H1FY17 Q2 Q2 H1FY16 H1FY17 FY16 FY17 FY16 FY1
Slide 10: Financials – Q2 & H1 FY17 Performance (Margins)
Financials – Q2 & H1 FY17 Performance (Margins) Rs. crore Gross Profit Gross margin 450.00 66% 70% 66% 61% 400.00 65% 350.00 59% • Q2FY17 retail gross margin is in line with 60% 300.00 expectations – decline is due to: 55% 250.00 • 1) GBP devaluation conversion to INR. 200.00 50% • 2) Higher revenue
Slide 11: Financials – Q2 & H1 FY17 Performance (Profits)
Financials – Q2 & H1 FY17 Performance (Profits) Rs. Crore PAT * PAT margin 18 17 4.0% 3.5% 16 16 3.5% 14 2.8% 2.6% 3.0% 12 11 2.0% 2.5% 10 2.0% 8 7 1.5% 6 4 1.0% 2 0.5% - 0.0% Q2 FY16 Q2 FY17 H1FY16 H1FY17 * Profit after tax without exchange gain(loss) fluctuation. Rs. per share 7 6 6 5 5 4 4 3 2 2
Slide 12: Table of Contents
Table of Contents Q2 & H1 FY17 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 12
Slide 13: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,298 1,376 1,276 Net Revenue 893 Local currency H1 16-17 H1 15-16 % change 659 LC - USD Mn 63.99 60.39 6.0% UK - GBP Mn 16.00 14.89 7.4% • LC USA growth of 6% YoY in H1 • TjC UK grew at 7.4% YoY in H1 FY13 FY14 FY15 FY16 H1FY17 Jewelry &
Slide 14: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes (‘000s) Average selling price US$ 25 6,420 6,829 24 5,854 5,239 23 24 2,810 23 • ‘Budget Pay’ EMI scheme and easy returns policy led to better average realizations which in turn affected volumes Web Sales Sales Volumes (‘000s) Average selling price US
Slide 15: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 900 63% 64% 800 63% 700 63% 600 62% 61% • Retail gross margin is in line with 62% 500 61% 61% 61% expectations – decline is due to: 400 60% 61% • 1) GBP devaluation conversion to INR. 300 60% 200 60% • 2) Higher revenue cont
Slide 16: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 160 12% 12% 140 10% 120 8% 8% 100 8% 80 6% 60 3% 4% 40 2% 2% 20 16 78 153 103 40 0 0% FY13 FY14 FY15 FY16 H1FY17 * Profit after tax including exchange gain(loss) fluctuation. Rs. per share EPS 48 32 24 12 5 FY13 FY14 FY15 FY16
Slide 17: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 367 382 129 126 328 233 77 159 66 58 FY13 FY14 FY15 FY16 H1FY17 FY13 FY14 FY15 FY16 H1FY17 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due • During FY13 fixed assets were
Slide 18: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Rs. crore Rs. crore Operating Cash flow* Free Cash Flow * 169 152 129 106 66 52 23 -59 12 -10 FY13 FY14 FY15 FY16 H1FY17 FY13 FY14 FY15 FY16 H1FY17 *Includes Foreign Currency Transaction Reserve *Includes Foreign Currency Transaction Reserve • Positive cash
Slide 19: Table of Contents
Table of Contents Q2 & H1 FY17 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 19
Slide 20: Product Profile
Product Profile FASHION JEWELLERY • Bracelets • Bangles • Earrings • Studded jewelry, etc. FASHION ACCESSORIES • Watches • Handbags • Scarves, etc. LIFESTYLE PRODUCTS • Home Décor • Bed linens • Pillow Covers • Beauty products Investor Presentation October 2016 20
Slide 21: Branding Initiative: Developing new in-house brands
BRANDING INITIATIVE: Developing new In-house brands and brand ambassadors for live presentation of BRANDS Investor Presentation October 2016 21
Slide 22: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding India In-House designers & craftsmen Noida, Jaipur, Nagaland, No middlemen Kashmir Access to latest manufacturing Indonesia technology Bali, Yogyakarta, Sumatra, Madura Surabaya Scale Flexibility Thailand Low Invest
Slide 23: Manufacturing
Manufacturing Four ISO 9001:2008 facilities in Jaipur, with capacity of producing 7 million annually Commenced operations at new 100,000 sq. ft., fully-integrated, LEED certified ‘Gold Level’ building at SEZ, Jaipur Diamond manufacturing and sourcing unit of the company is also present in Mumb
Slide 24: TV Networks – US & Canada
TV Networks – US & Canada (Consumption Markets) * Channel #274 * Channel #399 & 1399 * Channel #159 Channel #75 & * 226 * The Liquidation Channel, USA & Canada 87 million households shopping (FTE, out of 125 mn) Based out of Austin, Texas Over 500 people in sales & marketing, customer service,
Slide 25: TV Networks – UK
TV Networks – UK (Consumption Markets) Channel #49 Channel #815 Channel #650& Channel #757 #652 The Jewellery Channel, United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of Hampton, Middlesex Over 150 people in sales & marketing, customer service, logistics, TV producti
Slide 26: E-Commerce (Consumption Markets)
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.liquidationchannel.com USA Upgraded SAP-Hybris v5.7 platform Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on all social platfor
Slide 27: Early Adopters and Cord Cutters
EARLY ADOPTERS AND CORD CUTTERS HIGH DEFINITION AND IP BROADCAST • High Definition Broadcast • Charter Communication • AT&T • Adoption of new technology of Broadcasting • Reducing dependency on Infrastructure • Minimizing downtime as IP would broadcast it via internet EXPANSION INTO OVER THE AIR PRE
Slide 28: Management Team
Management Team Sunil Agrawal Puru Aggarwal Chairman and Managing Director Group CFO Established Vaibhav in 1980 as a first generation 24 years of rich experience in business modeling, entrepreneur and has led the company’s transition financial strategy & planning, business development, into a l
Slide 29: Management Team
Management Team Jeff Allar Nitin Dugar Senior Vice President, Group HR Vice President , Strategy – Liquidation Channel USA 30 years of work experience at major international Over 12 years at VGL, rich experience in business companies including IBM, Unilever and the Stonyfield development, custom
Slide 30: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Puru Aggarwal Vaibhav Global Limited +91-141-2770648 Puru.Aggarwal@vglgroup.com Ghanshyam Gupta / Ankit Sahay Vaibhav Global Limited +91-141-2770648 Ghanshyam.Gupta@vglgroup.com Shiv Muttoo / Karl Kolah Ankit.Sahay@v
Slide 31: Thank You
Thank You 31