Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — FY2020 Earnings Presentation
40 slides from Welspun Living's earnings presentation, Jun 30, 2020
Slide 1: Exchange filing cover letter
WIL/SEC/2020 June 30, 2020 Bombay Stock Exchange Limited National Stock Exchange of India Limited Department of Corporate Services, ListingCompliance Department SP. J. Towers, Dalal Street, Exchange Plaza, Bandra-Kurla Complex, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 (Scrip Code-514162) (Symbo
Slide 2: Welspun India Ltd Investor Presentation June 2020
WELSPUN INDIA LTD Investor Presentation June 2020
Slide 3: Response to COVID-19
\ rea to COVID-1 5 WELSPUN NY
Slide 4: Swiftly restarting our operations with all safety protocols
Swiftly restarting our operations with all safety protocols Advantages of our vertically integrated facilities Taking care of Health and Safety of workforce • Vertically integrated / Composite mill • Provision of all the essential items • Worker’s colony in factory vicinity and PPE’s • Cotton wareho
Slide 5: Keeping extended Welspun family & neighbourhood Safe, Healthy and Motivated
Keeping extended Welspun family & neighbourhood Safe, Healthy and Motivated Medical services for Welspun employees, their families & neighbourhood AI based robotic consultancy, virtually connecting with Hospital tie ups, COVID Arrangement of 100+ Isolation specialist doctor Committee, Awareness driv
Slide 6: Q4 & FY20 Financial Performance
Q4 & FY20 Financial Performance 5
Slide 7: Key Highlights – FY20
Key Highlights – FY20 Emerging businesses Flooring business Launched Martha Brand ‘Welspun’ collectively continue to commenced operations; Stewart brand for Bed, catapulted to Top 2 grow by ~30% YoY appointed Bath & Flooring position in value 50+ distributors categories segment in Home Textile pan I
Slide 8: Financial Performance – Q4 & FY20
Financial Performance – Q4 & FY20 (Rs. Million) YoY QoQ YoY Particulars Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 Change Change Change Total Income 16,645 16,009 4.0% 16,049 3.7% 68,362 66,084 3.4% EBITDA 2,963 2,524 17.4% 2,389 24.0% 13,098 11,467 14.2% EBITDA Margin (%) 17.8% 15.8% 203 bps 14.9% 291 bps 1
Slide 9: Segment Results – Q4 & FY20
Segment Results – Q4 & FY20 (Rs. Million) YoY QoQ YoY Particulars Q4 FY20 Q4 FY19 Q3 FY20 FY20 FY19 Change Change Change Home Textile Revenue 15,845 15,488 2.3% 15,490 2.3% 66,633 65,137 2.3% EBITDA 3,767 2,338 61.2% 2,947 27.8% 14,692 11,278 30.3% EBITDA Margin (%) 23.8% 15.1% 868 bps 19.0% 475 bps
Slide 10: Financial Performance Trend
Financial Performance Trend (Rs. Million) Particulars FY17 FY18 FY19 FY20 Total Income 67,211 61,318 66,084 68,362 Growth % 11.8% -8.8% 7.8% 3.4% EBITDA 16,639 12,046 11,467 13,098 EBITDA Margin 24.8% 19.6% 17.4% 19.2% Depreciation 5,054 5,042 4,358 4,811 Finance cost 1,583 1,408 1,593 1,777 PBT (Be
Slide 11: Balance Sheet Trend
Balance Sheet Trend (Rs. Million) Particulars 31-Mar-17 31-Mar-18 31-Mar-19 31-Mar-20 Net Worth 23,971 26,057 27,793 29,721 Short Term Loans 11,721 12,580 14,080 17,717 Long Term Loans 21,393 20,228 19,024 16,704 of which Flooring Debt - - 2,870 6,314 Gross Debt 33,114 32,807 33,104 34,421 Cash & Ca
Slide 12: Financial Ratio Trend
Financial Ratio Trend FY17 FY18 FY19 FY20 Net debt/Equity 1.27 1.16 1.09 1.00 Solvency ratios Net debt/EBITDA 1.83 2.51 2.64 2.26 EBIT/Interest 7.32 4.98 4.46 4.66 Current ratio 1.41 1.42 1.25 1.19 Fixed asset turnover 1.86 1.80 1.81 1.77 Total asset turnover 0.91 0.84 0.84 0.81 Operational ratios I
Slide 13: Focus on Free Cash Flow
Focus on Free Cash Flow 2,240 1,574 Rs. in Millions 859 907 785 786 773 787 FCF Dividend FY17 FY18 FY19 FY20 FCF positive and utilized for dividend payout 12
Slide 14: Trend of Financial Performance
Trend of Financial Performance TOTAL INCOME EBITDA CAGR 9% CAGR 11% 67,211 66,084 68,362 16,831 16,639 60,143 61,318 54,924 13,691 13,098 12,046 11,467 Rs. million Rs. million 44,772 10,253 36,965 6,438 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 NET CASH PROFIT*
Slide 15: Dividend Policy
Dividend Policy Board approved dividend distribution policy Consistent track record 25% of Standalone PAT to be the total payout of dividend distribution (incl. dividend tax if any) Period Standalone EPS DPS Dividend Tax Per Share Payout Percentage FY15 5.09 1.05 0.21 25% FY16 5.99 1.30 0.26 26% FY1
Slide 16: Shareholding and Trading Snapshot
Shareholding and Trading Snapshot 17.3% Promoter 2.0% FIIs Shareholding Pattern 6.2% 68.9% Mutual Funds / AIF As on March 31, 2020 5.6% Banks and Insurance Cos Public As on June 26, 2020 INR USD Price per share 36.15 0.48 Market Statistics No of shares outstanding (Mn) 1,005 Market capitalization (M
Slide 17: Corporate Overview
Corporate Overview WELSPUN NY 16
Slide 18: About Welspun Group
About Welspun Group Group Revenue Global Leader Global Leader in Large Infrastructure in Home Textiles Diameter Pipes Investments in Oil & Gas US$ 2.7 Billion Fixed Asset Base US$ 0.9 Billion Employees 25,000+ 17
Slide 19: Welspun India Overview: Presence in 50+ Countries
Presence in 50+ Countries WELSPUN with Distribution Centers in North America, Europe and 30 Unique Innovations Asia INDIA OVERVIEW Trusted Partner Ranked #1 Preferred Supplier to Among Home Textile Suppliers Top Global Retail to USA Largest giants & Hospitality 5 Times in Last 6 Years Every Every by
Slide 20: Key Milestones
Key Milestones Revenues (Rs. Bn) 68 53 32 Began Operations 1.3 4.5 16 FY 1985 1993 1995 2005 2006 2008 2012 2014 2015 2016 2017 2018 2019 2020 Began the Acquired Christy – Embarked upon Commissioned Established journey in Most prestigious capacity expansion India’s largest industry defining, Entry i
Slide 21: Global Market Opportunity
Global Market Opportunity Global Home Textile Market US Home Textile Market (2018) Market Composition USD Bn USD Bn $ 0.3 Row CAGR $ 5.0 Cotton Pillowcases 25% 6.6% 242 Other Non-cotton Products $ 1.4 145 Cotton Sheets 80 $ 3.0 US $ 1.6 31% 48 Other Cotton Products Cotton Towels $ 1.0 2017 2025E $ 4
Slide 22: Vertically Integrated Presence with Significant Capabilities
Vertically Integrated Presence with Significant Capabilities India Supply Advantage Vertically Integrated Facilities Across Manufacturing Chain Cotton Spinning Weaving Processing Cutting & Sewing Logistics Captive Power Current integration of about 70% in Spinning and Weaving Towels, Sheets, TOB, Ca
Slide 23: Global Distribution Network with Marquee Clients
Global Distribution Network with Marquee Clients Warehouses Manufacturing Facility Corp HQ/Marketing Offices Country Served Delivery and Reach in Over 50 Countries 22
Slide 24: Welspun India: Growth Drivers
Welspun India: Growth Drivers 1 2 3 4 5 Innovation New Channels / Brands Sustainability New Products Markets 23
Slide 25: Increasing Share of Innovative Products
Increasing Share of Innovative Products 15 successful years of Hygrocotton 41% 41% Contributing $1bn in FOB sales 37% 38% of Sales from ® 34% 36% 30% Innovative Gaining traction in hospitality & Products domestic market Received asthma and allergy free certification for bedding products in US post s
Slide 26: Wel-Trak: Patented Global Cotton Integrity Process
WEL-TRAK : Patented Global Cotton Integrity Process Welspun’s patented Wel-Trak® process, supplemented by scientific traceability from Oritain™ is now the industry defining end-to-end fiber tracking process Dedicated Ginning Spinning Weaving Finishing Cut & Sew Pack & Ship Retail Suppliers of Cotton
Slide 27: Leveraging consumer insights to accelerate innovation
2,500 + strong and growing daily Real-time “chat” on a social media-like platform, with results segmented across various demographics FAMILY-FIRST CONNECTION. Welspun is creating and maintaining a community that we interact with regularly to help guide our decision-making with regard to product deve
Slide 28: Diversified Brand & Licensed Portfolio
Diversified Brand & Licensed Portfolio Premium & Online Luxury Value Sustainability & Innovation Empowerment Brand Spectrum Continues to Evolve Branded Products Contribution to Sales at 20% in FY20 Coveted Licenses 27
Slide 29: Premium Brand: Spaces
Premium Brand: Spaces Focus on Tapping Domestic Market Potential India – One of the fastest growing economies in Healthy 100% growth in last 1 year the world with huge potential for increasing usage among consumers as per Brandhealth survey organized market No. 1 brand in Bed + Bath category in Home
Slide 30: Value Brand: Welspun
Value Brand: Welspun Value brand ‘Welspun’: Leading brand in Mass Home linen segment Mission Water Saver – Digital Game Regional Festival Campaign starring Election TVC on Promotions Amitabh Bachchan News Channels Reaching Larger Audience 2500+ Outlets across 50 Cities 29
Slide 31: Ecommerce – Multipronged strategy to drive growth
Ecommerce – Multipronged strategy to drive growth Comprehensive digital channel strategy to serve B2B, B2C and Omni-channel customers B2B B2C Omni-channel - Private Label - Branded - Private Label - White Label - White Label - White Label - Hospitality - Hospitality - Branded - Hospitality
Slide 32: Emerging Business: Flooring Solutions
Emerging Business: Flooring Solutions Wide range of flooring products Carpet tiles Broadloom carpets Click n Lock tiles Artificial grass Welspun Flooring One day flooring with company Only company to provided expert installation manufacture both Hard & Soft Flooring under one roof • Facility located
Slide 33: Emerging Business: Advanced Textile
Emerging Business: Advanced Textile Spunlace Wet wipes Cater to medical disposables, hygiene and Tailor made for end applications like Baby Care, cosmetic applications Personal Hygiene, Cosmetics, & Home-care Successfully tested for manufacturing “Made in India” products range gaining traction aeros
Slide 34: Health & Hygiene foray
Health & Hygiene foray • Leveraging integrated capabilities in both woven & non-woven fabrics • National and international certifications on Facilities & Products. • Product range : Masks, coveralls, wipes, disposable linen • Current Capacity : Daily > 250,000 Masks and 10,000 Coveralls • Cater to b
Slide 35: Sustainability woven in Value Chain
Sustainability woven in Value Chain Sourcing of Raw Materials Recycling / Upcycling Sustainable Sourcing Farming Projects Organic Recycled Cotton Cotton PRODUCTS & Supply Chain & Packaging Manufacturing Process OFFERINGS Zero Fresh Ancillarisation Water Usage Reducing Carbon Green Cover Footprint We
Slide 36: Inclusive Growth: Corporate Social Value
Inclusive Growth: Corporate Social Value Environment Education Sustainable business Our initiative to improve the practices, clean water, quality of education at schools improved sanitation and serves over 160+ schools, development of green spaces ~317 digital Classroom, within the communities 1300+
Slide 37: Awards & Accolades – Testimony to Excellence
Awards & Accolades – Testimony to Excellence Marketing Sustainability & CSR Marketing Services Sustainability Award “Spaces” (2018) Amongst Top 100 GIGA GURU status from Walmart for Companies in India (2019) Sustainability (2019) Most Influential Women Dipali Goenka Highest Exports Recognized for co
Slide 38: Experienced Board & Management with Proven Track Record
Experienced Board & Management with Proven Track Record Board of Directors Management Team B. K. Goenka, Chairman Rajesh Mandawewala, Managing Director; Member of Board • Qualified Chartered Accountant; Played an instrumental role in establishing Welspun’s Textile & Pipe business • Amongst India’s m
Slide 39: Disclaimer
Disclaimer The information contained in this presentation is provided by Welspun India Limited (the “Company”), although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change
Slide 40: Thank You
THANK YOU For further details, please contact Altaf Jiwani Director (Finance) & CFO Welspun India Limited Email: altaf_jiwani@welspun.com Harish Venkateswaran AVP-Group Finance and Strategy Email: harish_venkateswaran@welspun.com