Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Investor Presentation (September 2020)
61 slides from Vaibhav Global's investor presentation, Sep 8, 2020
Slide 1: Cover letter to stock exchanges
VAIBHAV GLOBAL LIMITED Ref: VGL/CS/2020/137 Date: 08th September, 2020 National Stock Exchange of BSE Limited India Limited (NSE) Phiroze JeejeeBhoy Towers, Exchange Plaza, C‐1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra, Mumbai – 400 051 Scrip Code: 532156 Scrip Code: VAIB
Slide 2: Vaibhav Global Limited Analyst Meet Presentation
Vaibhav Global Limited Global Retailer of Fashion Jewellery, Accessories, and Lifestyle Products on Home Shopping TV and e-Commerce Platforms Analyst Meet Presentation September 2020
Slide 3: Safe Harbor
Safe Harbor This presentation contains statements that contain “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 busine
Slide 4: Today's Speakers
Today’s Speakers Mr. Sunil Agrawal Mr. Vineet Ganeriwala Managing Director, VGL Group CFO, VGL Group Mr. Amit Agarwal Mr. Srikant Jha Mr. Jay Chandran President, Shop LC (US) Managing Director, Shop TJC (UK) Chief Technology Officer, VGL Group ANALYST MEET PRESENTATION - SEPTEMBER 2020 3
Slide 5: Table of Contents
Table of Contents Company Overview 5 Support Functions 13 Business Continuity During COVID-19 17 Retail Operations – Shop LC, US 20 Retail Operations – Shop TJC, UK 29 Financial Performance Trends 40 Strategic Priorities 48 Key Takeaways 54 Annexures 57 ANALYST MEET PRESENTATION - SEPTEMBER 2020 4
Slide 6: Company Overview
Company Overview ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 7: Vaibhav Global Limited (VGL)
Vaibhav Global Limited (VGL) Vision Be the Value Leader in Electronic Retailing of Jewellery & Lifestyle Products Through the delivery of high quality, affordable products, made possible by Mission our low cost direct sourcing, we change the world and touch people’s lives one piece at a time! CORE V
Slide 8: VGL – Electronic Retailer in Developed Markets
VGL – Electronic Retailer in Developed Markets Direct Market Access Expanding Product Range Omni-Channel Retail Presence ◊ Overall 425,921 customers (TTM*) as on ◊ Fashion Jewellery ◊ 24X7 TV broadcasting to 100 million June 2020 (up 23% YoY) ◊ Fashion accessories (FTE*) homes ◊ Sale Volumes ◊ Lifes
Slide 9: Strategy in Motion
Strategy in Motion Retail Revenues Profit After Tax Operating Cash Flow Free Cash Flow FY20 FY20 15% Rs.1,918cr Rs.190cr 23% Rs. 211cr Rs.176cr Q1 FY21 Q1 FY21 32% Rs. 545cr Rs. 53cr 47% Rs. 87cr Rs. 82cr Sales Volumes Unique Customers ROCE ROE FY20 FY20 10.2mn 361,915 46% 26% Q1 FY21 Q1 FY21 3.2mn
Slide 10: 4R's of Customer Engagement
4R’s of Customer Engagement TV – Diverse Products Enduring relationships Linear / OTA / OTT Expanding wallet share Web - Deep value proposition Convenience Browsers / Mobile Apps / Cross-selling Social Media / Market-places Engrossing Content Digitalization/AI Reach Registrations Retention Repeat Pu
Slide 11: Business Transition Dashboard
Business Transition Dashboard B2C Revenue Breakup Geography Product category Budget Pay Sales Channel US UK Non-jewellery revenues Penetration TV revenues Web revenues Jewellery Budget Pay revenues Non-Budget Pay revenues 19% 27% 29% 29% 9% 33% 22% 37% 36% 8% 39% 33% 91% 81% 73% 71% 71% 78% 92% 67%
Slide 12: Growth in Digital Commerce
Growth in Digital Commerce Industry VGL US Retail & E-com Sales UK Retail & E-Com Sales Web Sales (Rs. cr) Retail Sales ($ Tn) Retail Sales (£ Bn) 633 E-com as % of Retail Sales E-com as % of Retail Sales 5.4 14.0% 5.2 510 5.0 439.5 25.9% 4.8 423.7 405.7 387.6 11.0% 9.9% 19.1% 373 9.1% 17.9% 8.2% 16
Slide 13: Mitigating Cord Cutting in US
Mitigating Cord Cutting in US Pay -TV Service Over-the-Air (OTA) Shop LC (US) – Omni VGL TV Revenues Subscribers (US) Households Channel Sales Platform (Rs. Crore) (in mn) 2013 2019 1,285 2013 2020 1,157 88% 83% 83% 972 997 19.1 Over-the-Top (OTT) Reach 931 64% 14.4 Proprietary Web Platforms 13.5 Ma
Slide 14: Support Functions
Support Functions ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 15: Technology: Transforming Business
Technology: Transforming Business Digital & Social Customer Growth User experience, Wallet integration, Investment in AI, Consumer Viral RA App, Micro-website, Analytics preferences, Customer Conversion Supply Chain Warehouse Optimization ERP, Automation, IoT AI based invoice printing, Business Robo
Slide 16: Human Resources
Human Resources ◊ Workforce across 6 countries ◊ Average Training time per employee - 43 Hours ◊ Open/Inclusive Work Culture ◊ Employees who work 3 years or more – 59% ◊ Equal Opportunity Employer ◊ Women employees – 33% ◊ Diverse Workforce ◊ Recognized as a Great Place To Work in China, ◊ Attractin
Slide 17: Supply Chain
Supply Chain Aggregator Processor Gross Margins 63.0% 64.3% 62.5% 61.6% 60.1% 59.6% End-to-end value chain FY2016 FY2017 FY2018 FY2019 FY2020 Q1FY21 Curator Retailer ANALYST MEET PRESENTATION - SEPTEMBER 2020 16
Slide 18: Business Continuity During COVID-19
Business Continuity During COVID-19 ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 19: Exceptional Response
Exceptional Response Inclusion Exceptional Response Agility ANALYST MEET PRESENTATION - SEPTEMBER 2020 18
Slide 20: 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 ~1,61,500 masks with no latency healthy Balance Sheet in US & UK operations balanced by
Slide 21: Retail Operations – Shop LC (US)
Retail Operations – Shop LC (US) www.shoplc.com ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 22: Financial Performance Trends
Financial Performance Trends Total Revenue (USD mn) PBT (USD mn) TV Web 68% 13% 19.8 9% 192.2 11% 170.6 84% 10% 156.1 11.8 140.7 68.0 128.3 56.2 45.6 468% 67% 32.2 27.8 6.4 5.5 20% 124.2 51.0 1.1 108.5 110.5 114.5 100.4 20.6 30.4 -1.6 FY2016 FY2017 FY2018 FY2019 FY2020 Q1FY21 FY2016 FY2017
Slide 23: Introducing our Customers
Introducing our Customers LIVE TV CUSTOMER ONLINE CUSTOMER OMNI-CHANNEL CUSTOMER Donna Melissa Rachel Age: 60+ (Baby Boomer) Age: 40 – 60 (Gen X) Age: 45+ (Gen X/Boomer) Location: California Location: Texas, Florida Location: New York Time on TV: 120 mins. Online Visits Per Year: 150 Time Online: 15
Slide 24: Our Omni-Channel Sales Platform
Our Omni-Channel Sales Platform Shop LC (US) Traditional TV Channel Live Streaming on Apps TV shoplc.com WEB OTT* platforms Digital Experience Platform Targeted behavioural marketing UGC and Influencer Marketing Platform Note: OTA – Over the Air; OTT – Over the Top; HH - Households ANALYST MEET PRES
Slide 25: Reach, Registrations, Retention, Repeat Purchases
Reach Registrations Retention Repeat Purchases Market Place Web • Addition of New Market Places • WebTV S&H promo • Exclusive Product Line-up • Amazon Sign-in • Partnered Advertisement Programs . • Next Day shipping Social DR • Launch New Platform • Innovative Solution Products • Diverse Product Por
Slide 26: Digital Customer Acquisition
Digital Customer Acquisition Influencer Program Ambassador Program • Goal to acquire 5000 customers this year • Goal to acquire 2500 customers this year • Focus on Micro Influencers • Contracted with industry leading platform • Tie-Up with reputed agency • Signing up professional ambassadors ANALYST
Slide 27: Customer Centric Solutions, Marketing, Products
Reach Registrations Retention Repeat Purchases Customer Centric Solutions Products • Low Friction Interaction • Web Exclusive • Chat\Email • Personalized Jewellery • AI Bots • Gifting • Customer Forum • Story Telling Marketing Price value • Digital Marketing Faster and Free Shipping • Loyalty/Warran
Slide 28: Customer Experience and Reaching Existing Customers
Reach Registrations Retention Repeat Purchases •Quick Shipping, Easy Returns and Online Self Service Customer Experience •Warranty, Appraisal and Repair Programs Reaching out to existing •Consistent Dormant Campaign customers •Segmentation Based Marketing Campaigns •Continuous Reminder of Customer C
Slide 29: Expanding Product Portfolio, Lower ASP, Story Telling
Reach Registrations Retention Repeat Purchases • Adding Apparel, Shoes, Kitchen Expanding Product Portfolio • Private Label Brands Lower ASP • Optimizing Promotional Calendar Planning to maintain Low ASP • Remote Live Guest Presentations Engaging Story Telling • B-roll and Graphic Collaterals Custom
Slide 30: Retail Operations – Shop TJC (UK)
Retail Operations – Shop TJC(UK) www.tjc.co.uk ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 31: Financial Performance Trends
Financial Performance Trends Total Revenue (GBP mn) PBT (GBP mn) TV Web 41% * 6.4 19% 60.9 24% 216% 51.4 4.6 19% 16.5 9% 41.5 12.7 34.7 8.9 31.8 6.7 68% 4.1 32% 16% 21% 2.0 44.4 17.1 38.7 1.2 1.4 32.5 5.1 1.0 27.7 28.0 12.0 FY2016 FY2017 FY2018 FY2019 FY2020 Q1FY21 FY2016 FY2017 FY2018 FY2
Slide 32: Customer Engagement - Repeat Orders
Customer Engagement - Repeat Orders Repeat Orders 18 4 Leading e-commerce player TJC Average Customer orders 18 times with Shop TJC compared to 4 times for a leading e-commerce player ANALYST MEET PRESENTATION - SEPTEMBER 2020 31
Slide 33: Introducing our Customers
Introducing our Customers Donna Wendy Sandra Age 68 Age 38 Age 54 Retired Working mom Hard Working, Empty Nester Has grand kids Smart choices Special Finds Trend follower Seeks approval Seeks to stand out Shops for herself and family On trend Follows her kids on Social Media Value and Quality Influe
Slide 34: Customer's Lifetime Value
Customer’s Lifetime Value Donna Overall £548 26 Qty Per Year +22% TV £751 31 Qty Per Year +7% Wendy Web £129 11 Qty Per Year +49% Sandra Omni channel £3,910 66 Qty Per Year +19% Omni Channel Customers are most valuable and leading the way for growth *As on Jun 2020 ANALYST MEET PRESENTATION - SEPTEM
Slide 35: Omni-Channel Customer Experience
Omni-Channel Customer Experience 1 2 3 4 5 6 TV Web Apps Streaming TV Marketplace Social Media 25mn HH reach E-Commerce Mobile and tablet OTT: Roku, Apple Sales and customer Customer including 17mn OTA website tjc.co.uk commerce apps for TV, Amazon Fire, acquisition through engagement and HH driven
Slide 36: Way Forward
Way Forward Top 5 Strategic Initiatives for Digital Expansion 1 2 3 4 5 Digital customer Fast and Free Social Video Web Exclusive OTT for video acquisition Shipping Commerce Merchandising outreach Social Media Influencer, TJC Plus (loyalty Infomercial style product Collections of Reach wider audienc
Slide 37: Way Forward: Digital Customer Acquisition
Way Forward 1 Digital Customer Acquisition Influencer Program Ambassador Program Traditional Digital Marketing Customers: Partnered with Pixlee in April Anyone can become TJC ambassador Affiliate program with Linkshare, 2020, encouraging customers to post images and promote our products to their Goo
Slide 38: Way Forward: Free & Fast Shipping, Social Video Commerce
Way Forward 2 Free & Fast Shipping 3 Social Video Commerce TJC Plus: Launch – Q3 2020 Launch: September 2020 This will allow us to offer Free Shipping to Over 70% packages Product focused video commerce via Social Media to generate within 3 years sales and acquire new customers for our omni channel
Slide 39: Way Forward: Web Exclusive Merchandising
Way Forward 4 Web Exclusive Merchandising - Children & Occasional Jewellery Charms Zodiac Wedding & Engagement Remembrance/Memorial Initials Birthstone ANALYST MEET PRESENTATION - SEPTEMBER 2020 38
Slide 40: Way Forward: Personalised and Wedding Jewellery
Way Forward 4 Web Exclusive Merchandising - Personalised and Wedding Jewellery Personalized Jewellery Eternity rings Wedding bands Bridesmaid gifts Engagement rings ANALYST MEET PRESENTATION - SEPTEMBER 2020 39
Slide 41: Financial Performance Trends
Financial Performance Trends ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 42: Financial Performance Trends: Revenue Breakdown
Financial Performance Trends Revenue Breakdown – (Rs. crore) Revenue 1,986 1,814 1,436 1,571 1,276 440 550 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 Fashion Jewellery, Accessories & Lifestyle Products TV Revenue Web Revenue B2B Revenue 1,285 1,157 931 972 997 633 510 373 274 342 223 274 203 190 201 138
Slide 43: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 5,854 5,877 5,737 6,275 6,070 29.9 29.2 24.4 24.9 27.0 26.4 24.1 1,355 1,880 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 Web Sales Sales Volume ('000s) Average Selling Price US$ 4,113
Slide 44: 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% 63.1% 64.3% Margin (%) 5.9% 7.1% 10.1% 12.0% 13.9% 12.4% 14.1% 1,133 1,224 276 865 936 217 804 159 354 102 278 75 55 78 FY16 FY17 FY18 FY19 FY20 Q1FY20 Q1FY21 FY16 FY17 FY18 F
Slide 45: Financial Performance Trends: Balance Sheet
Financial Performance Trends Balance Sheet – (Rs. crore) Shareholders’ Equity Fixed assets including intangibles 815 ** 163 **163 697 ** 751 129 126 120 117 550 379 434 FY16 FY17 FY18 FY19 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY21 Net Debt Net Assets *** 55 6 417 399 ** 394 ** 373 (13) 305 314 (
Slide 46: Financial Performance Trends: Cash Flow
Financial Performance Trends Cash Flow – (Rs. Crore) Operating Cash flow Free Cash Flow 203 211 181 176 87 82 70 52 38 35 32 20 (28) (77) FY16 FY17 FY18 FY19 FY20 Q1 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY20 Q1 FY21 ANALYST MEET PRESENTATION - SEPTEMBER 2020 45
Slide 47: Financial Performance Trends: Key Ratios
Financial Performance Trends Key Ratios ROE (TTM) ROCE (TTM) 26% 26% 25% 49% 23% 46% 37% 16% 27% 12% 18% 13% FY16 FY17 FY18 FY19 FY20 Q1 FY21 FY16 FY17 FY18 FY19 FY20 Q1 FY21 Note - ROE – based on average net worth ROCE – based on average capital employed ANALYST MEET PRESENTATION - SEPTEMBER 2020 4
Slide 48: Corporate Governance Framework
Corporate Governance Framework FY20 Rs.109cr Rs.72cr = Rs.181cr Q1 FY21 Dividend Pay-out to Buyback (including final dividend) shareholders Dividend Payout Policy ◊ 20-30% of consolidated free cash flow 103% 95% Rs.16cr ◊ Higher payout in special circumstances of of Pay-out to Free Cash Flow Profi
Slide 49: Strategic Priorities
Strategic Priorities ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 50: Strategic Priorities
Strategic Priorities PRODUCT AGNOSTIC STRENGTHENING CUSTOMER DELIGHT PROCESS AND OMNI-CHANNEL THE SOURCING SYSTEMS SALES PLATFORM NETWORK IMPROVEMENT ANALYST MEET PRESENTATION - SEPTEMBER 2020 49
Slide 51: Strategic Priorities – Omni-Channel Sales Platform
Strategic Priorities – Our Keenly Developed Products Offered to Target Demographics from all Digital Platforms • Low channel Positioning in Pay-TV households TV • Expanding presence on OTA households • Increasing broadcast on simulcast channels • Improved Content/Layout • Web-Exclusive Collection Ac
Slide 52: Strategic Priorities - Strengthening the Sourcing Network
Strategic Priorities - Strengthening the Sourcing Network Building backward- • Existing units in India and China for manufacturing integration fashion Jewellery capabilities for • Recent initiative – commenced apparels manufacturing in lifestyle products July 2020 in India Strengthening the • Specia
Slide 53: Strategic Priorities – Customer Delight
Strategic Priorities – Customer Delight Reduced Delivery Move Towards Free Strengthening the Personalization Time – Target same Shipping Deep Value ◊ Stepping up from mass day and next day ◊ Loyalty program offering Proposition customization to delivery free shipping (Regular segmentation to ◊ Curat
Slide 54: Strategic Priorities - Process and Systems Improvement
Strategic Priorities - Process and Systems Improvement Adopted the Malcolm Baldrige Performance Excellence model • Received the Governor’s Achievement Level Recognition • Commitment to excellence ERP Implementation Process Management Improvements Warehouse Management System selection and implementat
Slide 55: Key Takeaways
Key Takeaways ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 56: VGL Moat
VGL Moat Vertically Integrated Business Model Unique Customer Engagement - Exceptional One for One Social program Robust Technology Infrastructure Foundation Strong Management and Governance Solid Brands - ShopLC (US) and TJC (UK) Omni-Channel Sales Platform *Expected Retail Revenue Growth – 15-17%
Slide 57: Delivering Joy to Stakeholders
Delivering Joy to Stakeholders Customers Employees Investor Environment Society Rating Over 40 million 1MW Solar PV meals provided Power Project commissioned in August 2020 Existing + recently commissioned plant to cater to 45% of power https://quality-texas.org/ requirement at the manufacturing fac
Slide 58: Annexures
Annexures ANALYST MEET PRESENTATION - SEPTEMBER 2020
Slide 59: Board of Directors
Board of Directors Mr. Harsh Bahadur Mr. Sunil Agrawal Mr. Nirmal Kumar Mrs. Sheela Agarwal Mr. Pulak Prasad Non-Executive Executive Director, Bardiya Non-Executive Non-Executive Independent Director MD Non-Executive Non-Independent Director Non-Independent Director Chairperson Non-Independent Direc
Slide 60: 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, TJC (UK) Mr. Jay Chandran Mr. Raj Singh Mr. Pushpendra Singh Mr. Vivek Jain Chief Technology Officer, Vice President, Supply
Slide 61: Thank You
THANK YOU For more information please contact: Vaibhav Global Limited Vineet Ganeriwala, Group CFO Dipti Rajput, DGM (IR) Vineet@vglgroup.com Dipti.Rajput@vglgroup.com +91-141-2771975 +91-9116653352
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