Kddl Limited · NSE:KDDL
Kddl — Q4 FY2020 Earnings Presentation
41 slides from Kddl's earnings presentation, Jun 27, 2020
Slide 1: Result Update Presentation cover letter to exchanges
KDDL Limited Kamla Centre, SCO 88-89, Sector 8-C, Chandigarh - 160 009, INDIA. Tel: +91 172 2548223/24, 2544378/79 Fax: +91 172 2548302, Website:www.kddl.com CIN-L33302HP1981PLC008123 Ref : KDDL/CS/2020-21/18 Date : 27th June,2020 National Stock Exchange of India Limited BSE Limited, Exchange Plaza,
Slide 2: KDDL Limited & ETHOS Limited Result Update Presentation June 2020
KDDL Limited & ETHOS Limited Result Update Presentation June 2020
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared b Kddl Ltd and Ethos Limited, a material subsidiary of KDDL Limited, (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or s
Slide 4: Q4 & FY20 Performance Overview
Q4 & FY20 Performance Overview
Slide 5: Q4FY20 Performance
Q4FY20 Performance Standalone Performance (Rs. Crs) Revenue Gross Profit 44.8 31.3 30.4 40.7 Q4FY19 Q4FY20 Q4FY19 Q4FY20 Ethos Performance (Consolidated) (Rs. Crs.) Revenue Gross Profit 102.9 34.8 91.0 24.7 Q4FY19 Q4FY20 Q4FY19 Q4FY20 4 Q4FY20 Financials are with applicability of IND AS 116
Slide 6: FY20 Performance
FY20 Performance Standalone Performance (Rs. Crs) Revenue Gross Profit 176.0 180.6 131.4 135.5 FY19 FY20 FY19 FY20 Ethos Performance (Consolidated) (Rs. Crs.) Revenue Gross Profit 445.1 460.2 129.2 130.0 FY19 FY20 FY19 FY20 5 FY20 Financials are with applicability of IND AS 116
Slide 7: COVID-19 Impact on the Business (1/2)
COVID-19 Impact on the Business (1/2) Business • The outburst of Pandemic COVID-19 has threatened every business you can think of. KDDL was Operations also affected with COVID-19 from March onwards as all factories, retail stores and offices were closed due to strict lockdown and curfew across the c
Slide 8: COVID-19 Impact on the Business (2/2)
COVID-19 Impact on the Business (2/2) Optimising Costs • We are taking all necessary actions and available options for reducing costs, overheads and deferring the long-term commitments of expenditures. • In addition, all avenues and efforts are being initiated for enhancing the revenue and income of
Slide 9: Standalone Profit & Loss
Standalone Profit & Loss Profit & Loss (Rs. Crs.) Q4FY20 Q4FY19 YoY% FY20 FY19 YoY% Revenue 40.7 44.8 -9.0% 180.6 176.0 2.6% Cost of Goods Sold 10.3 13.5 45.1 44.6 Gross Profit 30.4 31.3 -2.8% 135.5 131.4 3.1% Employee Expenses 12.8 10.7 55.3 49.1 Other Expenses 11.9 12.1 50.8 50.5 EBITDA 5.7 8.6 -3
Slide 10: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crs.) Q4FY20 Q4FY19 YoY% FY20 FY19 YoY% Revenue 137.3 150.4 -8.7% 652.3 625.0 4.4% Cost of Goods Sold 78.0 82.5 377.6 360.9 Gross Profit 59.2 67.9 -12.8% 274.7 264.1 4.0% Employee Expenses 24.8 24.7 102.3 86.4 Other Expenses 21.7 30.7 96.4 112.9 EBITDA 1
Slide 11: Adjusted Consolidated Profit & Loss
Adjusted Consolidated Profit & Loss Adjusted for INDAS 116 FY20 Particulars (Rs. Crs.)* As Reported FY20 FY19 Revenue 652.3 652.3 625.0 Cost of Goods Sold 377.6 377.6 360.9 Gross Profit 274.7 274.7 264.1 Employee Expenses 102.3 102.3 86.4 Other Expenses 96.4 130.4 112.9 Normalized EBITDA 76.0 42.0 6
Slide 12: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • On 1 April 2019, the Group has adopted Ind AS 116 “leases”, using the modified retrospective approach. Accordingly, the comparatives have not been retrospectively adjusted • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 128.7 C
Slide 13: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs. Crs.) Mar-20 Mar-19 Liabilities (Rs. Crs.) Mar-20 Mar-19 Non-current assets 216.0 185.2 Equity 169.5 167.1 Property, plant and equipment 93.8 94.1 Equity share capital 11.7 11.7 Capital work-in-progress 2.2 2.4 Other equity 157.8 155.4 Right-of-use asset 12.7 - I
Slide 14: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Mar-20 Mar-19 Liabilities (Rs. Crs.) Mar-20 Mar-19 Non-current assets 299.2 183.9 Equity 227.4 235.0 Property, plant and equipment 158.6 143.2 Equity share capital 11.7 11.7 Capital work-in-progress 2.9 6.8 Other equity 174.0 179.1 Right-of-use asset 109.
Slide 15: Manufacturing Business Overview
Manufacturing Business Overview 14
Slide 16: Introduction - Watch Dials and Hands Business
Introduction - Watch Dials and Hands Business Watch Dials Watch Hands Value Proposition ▪ Commercial operations began in 1983 ▪ Commercial operations began in 1996 ▪ Deep Understanding of the ▪ Leading Global supplier of Global Watch Industry Watch Dial serving many ▪ Only supplier in India and well
Slide 17: About Estima AG
About “Estima AG” Acquired in 2019 • Estima was established as a maker of watch hands in Switzerland in 1924 • It was a leading supplier to Swiss and other European watch brands in the mid-priced segment and About enjoyed an excellent reputation “Estima AG” • However, over last 10 years, it was unab
Slide 18: Introduction - Precision Engineering Business
Introduction - Precision Engineering Business Value Proposition 01 Eigen offers a full package of services, ranging from design and development to full scale production, providing customers with optimized supply chain solutions Capabilities We address various segments such as Electrical, Electronics
Slide 19: Stable Manufacturing Performance
Stable Manufacturing Performance* Revenue (Rs. Crs.) EBITDA (Rs. Crs.) +10% +13% 181 32 176 29 27 146 125 22 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 18 *Excludes the Financial Performance of Estima AG, Switzerland
Slide 20: Ethos Q4 & FY20 Snapshot
THE 50 FINEST WATCHES Ethos Q4 & FY20 Snapshot 19
Slide 21: Renewed Strategy for ETHOS
Renewed Strategy for ETHOS Stores Optimization Uniquely Positioned to Grow In depth assessment of each store's Post Pandemic, Swiss brands may focus more performance across India . Accelerated Closure on developed markets and less on developing of Stores which fails our cost vs. benefits like India.
Slide 22: COVID-19 Impact on the Business
COVID-19 Impact on the Business Revenue Impact ETHOS was severely impacted due to the lockdown imposed by Government to prevent the spread of COVID-19. All the stores were shutdown during the later part of March which adversely impacted the business. We continued to witness strong momentum from Janu
Slide 23: FY20 Performance
FY20 Performance FY20 vs FY19 (Consolidated*) Billings (Rs. Crs.) Revenue (Rs. Crs.) Gross Profit (Rs. Crs.) +2.3% +3.4% +0.6% 512.9 524.5 445.1 460.2 129.2 130.0 FY19 FY20 FY19 FY20 FY19 FY20 *Consolidated Financials include Watch Retailing Business and Digital Marketing business 22 FY20 Financials
Slide 24: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crores)* Q4FY20 Q4FY19 YoY % FY20 FY19 YoY % Revenue 91.0 102.9 -11.6% 460.2 445.1 3.4% Cost of Goods Sold 66.3 68.1 330.1 315.9 Gross Profit 24.7 34.8 -29.0% 130.0 129.2 0.6% Employee Expenses 7.7 11.3 33.2 33.4 Other Expenses 8.4 18.2 42.7 61.8 Reported
Slide 25: Adjusted Consolidated Profit & Loss
Adjusted Consolidated Profit & Loss FY20 Adjusted for INDAS 116 & other items Particulars (Rs. Crores)* As Reported FY20 FY19 Revenue 460.2 460.2 445.1 Cost of Goods Sold 330.1 330.1 315.9 Gross Profit 130.0 130.0 129.2 Employee Expenses 33.2 33.2 33.4 Other Expenses 38.5 69.7 59.5 Normalized EBITDA
Slide 26: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • On 1 April 2019, the Company has adopted Ind AS 116 “leases”, using the modified retrospective approach. Accordingly, the comparatives have not been retrospectively adjusted • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 96.9
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crores)* Mar-20 Mar-19 Equity & Liabilities (Rs. Crores)* Mar-20 Mar-19 Non-current assets 142.7 43.6 Shareholder’s Fund 152.2 133.9 Fixed Assets 32.2 26.6 Share Capital 18.2 16.9 Right of Use 96.9 - Other Equity 134.0 117.0 Financial Assets 10.0 11.2 Other Non
Slide 28: Closures
Largest Pan India retailer of Luxury Watches Stores as of Dec-19 Multi Brand Mumbai, Maharashtra 55 Store 707 Sq.Ft. Navi Mumbai, Maharashtra Tissot Boutique 380 Sq.Ft. Closures Pune, Maharashtra Tissot Boutique 192 Sq.Ft. Multi Brand Bhopal, Madhya Pradesh Store 584 Sq.Ft. Multi Brand Bengaluru, Ka
Slide 29: New Initiatives
New Initiatives Repair and Service Pre-Owned Watches Pre-Owned Watches has the potential to Repair and services over 60 expand the volume and customer base of the World’s top Luxury watch Ethos has the expertise to check the authenticity Brands and to ensure that each time piece is in great conditio
Slide 30: Operational Snapshot
Operational Snapshot 29
Slide 31: Ethos - Performance Trend
Ethos - Performance Trend Front-end Rent & Manpower Cost as % of Revenue (Rs. Crs.) Revenue 445.1 460.2 11.7% 11.4% 11.1% 10.1% 10.1% 357.8 328.7 327.0 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 EBITDA (Rs. Crs.) EBITDA Margins 34.0 7.6% 23.0 5.0% 4.5% 15.9 2.2% 7.3 3.3 1.0% FY16 FY17 FY18 FY
Slide 32: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billings (Rs. Crs.) Online Billing as % of Total Billing +12% 31.8% 32.4% 30.7% 30.3% 158.9 27.6% 136.0 141.4 113.6 116.0 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Visitors (‘000) +2% 14,735 15,024 13,191 10,001 7,887 FY16 FY17 FY18 FY19 FY20 31
Slide 33: Ethos - Repeat Sales Trend
Ethos - Repeat Sales Trend Club ECHO Member Base Repeat Billings (Rs. Cr.) 2,47,648 175.8 179.2 2,16,704 1,84,891 128.3 1,54,357 70.8 Mar’17 Mar’18 Mar’19 Mar’20 FY17 FY18 FY19 FY20 32
Slide 34: Ethos is India's Largest Luxury Watch Retailer
Ethos is India’s Largest Luxury Watch Retailer 33
Slide 35: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network India’s Largest retail chain of Luxury Watches with 50 stores Ludhiana Presence across Metros, Tier I, Tier Chandigarh II cities New Delhi Gurugram Noida Jaipur Guwahati Lucknow 1 Duty Paid Retail Outlet at Domestic Terminals Ahmedabad Indore Kolkata Pun
Slide 36: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network Exclusive Stores Digital Right Mix Brands Strategy ▪ Leverage on our ▪ Targeting to ▪ To go slower on Digital platform have a right mix new stores in to drive sales of Brands at all ▪ Higher share of price points near term. and customers Business from Fo
Slide 37: Ethos is India's Preferred Destination for Luxury Watches
Ethos is India’s Preferred Destination for Luxury Watches… Knowledge One-stop shop Mind Share Ethos has well trained Ethos’ access to Swiss Watch Ethos to be synonymous with Knowledgeable staff to ensure Brands will make it a ‘1 Stop Luxury watches retailing in highest customer satisfaction Shop’ fo
Slide 38: With an Asset Light Model
With an Asset Light Model… Improve Return On Capital Employed Operating Leverage Playing Out Reduce Front-End Cost like Manpower and Rental expenses Maximize Reach Expand catchment area of offline store, leading to higher revenue Minimize Investment Focus on Online Presence & Rationalize Store Prese
Slide 39: and Continued Investments in Advertising
and Continued Investments in Advertising… Print Ads in leading newspapers… … with ETHOS co-branding 38
Slide 40: Offering the best Watch Brands under one roof
Offering the best Watch Brands under one roof 39 The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
Slide 41: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : Ethos Ltd. CIN : U52300HP2007PLC030800 CIN : U74140MH2010PTC204285 Mr. C. Raja Sekhar Mr. Shogun Jain/ Mr. Shrenik Shah +91 7738377756 / +91 9664764465 rajasekhar@ethoswatches.com shogun.jain@sgapl.net / Shrenik.shah@sg