Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Investor Presentation (December 2012)
22 slides from Vaibhav Global's investor presentation, December 2012
Slide 1: Vaibhav Global Limited Corporate Presentation
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Corporate Presentation December 2012
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: Table of Content
Table of Content Business Overview 4 Products and Markets 7 Global Supply Chain 11 Operating & Financial Performance 14 Current Year Financial Performance 20 3
Slide 4: Business Overview
Business Overview Vertically-Integrated Retailer of Fashion and Lifestyle Accessories Front-end transition from fine jewelry to fashion and Back end transition from manufacturing to outsourcing lifestyle accessories Global, Direct to Consumer Business Model in Developed Markets 96 million households
Slide 5: Growth Drivers
Growth Drivers Marketing initiatives • Increasing share of Robust supply chain customer spend and Geographical expansion mechanism repeat orders • Delivering on Portfolio expansion • Continuously • Closely following strategies for greater expanding key markets global fashion trends customer engageme
Slide 6: Market Opportunity
Market Opportunity US market size (US$ Bn) Vaibhav Global - US Revenue [US$ mn] Fashion Accessories 17 Translates to a 60 78 0.09% market share Fine and Fashion Jewellery 67 FY2011 FY2012 UK market size (US$ Bn) Vaibhav Global - UK Revenue [US$ mn] Fashion Accessories 6 Translates to a 39 0.29% mark
Slide 7: Product Profile
Product Profile JEWELLERY FASHION FINE & Product catalogue includes bracelet, bangle, earring, studded jewelry etc. ACCESSORIES FASHION Product catalogue includes watches, bags, phone protective shell etc. PRODUCTS LIFESTYLE OTHER Product catalogue includes office and home décor, etc. Continuously e
Slide 8: US Market Access on Liquidation TV Channel
US Market Access on Liquidation TV Channel https://www.liquidationchannel.com Access to 65 million of the 115 million households in the US 8
Slide 9: UK Market Access on the Jewellery Channel
UK Market Access on the Jewellery Channel www.thejewellerychannel.tv Access to 31 million households of the total 41 million households 9
Slide 10: Customer Focus
Customer Focus Increasing Enhanced Higher market Brand customer share Trust retention Expansion of life-time value Exquisite designs Exceptional quality Outstanding Value Excellent service Successful implementation has seen significant market share gains in focus categories 10
Slide 11: Integrated Global Operations
Integrated Global Operations SOURCING MARKETS India Asia • Corporate HQ – Jaipur, Rajasthan • China is the hub for sourcing • ISO 9001:2008 manufacturing fashion and lifestyle accessories, facilities accessed from multiple locations • ~1.2 million pieces produced p.a. • ~3.6 million pieces procured
Slide 12: Sourcing Methodology
Sourcing Methodology Assessing value perception – design / fashion trend / price in target markets Competitive Pricing Mapping latest fashions Vendor Core evaluation competency process of vendor Rapid turnaround Sourcing from appropriate micro-markets in China/Asia Delivery/ Low Focus on best qualit
Slide 13: Aligned with Demand Patterns
Aligned with Demand Patterns Process Buyer discussions Evaluation/ feedback of last year’s hits/misses Product Valentine Day & Spring Mothers’ Summer Product development strategies – by Product Line Day Line category Process begins – Sep 2012 Process begins – Dec 2012 Process begins – Dec 2012
Slide 14: Operating Performance Trends
Operating Performance Trends VGL – US Home TV Market Sales Volumes ('000s) Average selling price Registered customers US$ 526,887 3,291 53 462,857 2,529 375,559 316,661 1,821 33 1,364 24 22 190,659 19 456 FY10 FY11 FY12 H1FY12 H1FY13 FY10 FY11 FY12 H1FY12 H1FY13 FY10 FY11 FY12 H1FY12 H1FY13 VGL – UK
Slide 15: Financials – Annual Performance (Revenues)
Financials – Annual Performance (Revenues) Revenues (Rs. Crore) 647 526 • Strong revenue growth at 38% CAGR in FY10- 338 12, primarily driven by growth in the retail business • Focus has transitioned from fine jewelry to fashion and lifestyle accessories, resulting in strong volume growth and lower
Slide 16: Financials – Annual Performance (Margins)
Financials – Annual Performance (Margins) Rs. crore Gross Profit Gross margin 450 70% 61% 400 56% 60% 350 50% 300 37% • Gross margin expansion has been driven 250 40% by the successful business transition and 200 412 30% global outsourcing strategies in China/Asia 150 301 20% 100 127 10% 50 0 0% FY2
Slide 17: Financials – Annual Performance (Profits)
Financials – Annual Performance (Profits) Rs. crore PAT PAT margin 80 10% 15% • Expanding volumes, higher operating 60 8% 10% profitability, leverage of existing asset base 40 and declining debt leverage has helped 69 5% 43 deliver a strong turnaround in net profits 20 0% 0 -5% • Net margins have al
Slide 18: Summarized Financials
Summarized Financials Rs. crore Rs. crore PROFIT AND LOSS STATEMENT FY12 FY11 FY10 BALANCE SHEET 31-3-12 31-3-11 31-3-10 Total income 675 538 343 Net Shareholders' Equity 265 205 186 Net Debt 146 164 176 Direct expenses 263 237 217 Total 411 369 361 Gross Profit 412 301 127 Fixed Assets 203 205 207
Slide 19: Financials – Key Ratios
Financials – Key Ratios Debt equity ratio ROE ROCE 1.0 30% 0.9 21% 22% 15% 0.6 FY10 FY11 FY12 -8% FY10 FY11 FY12 -26% Net current assets / Sales Inventory / Sales 46% 46% 31% 32% 28% 27% FY10 FY11 FY12 FY10 FY11 FY12 19
Slide 20: Financials – Half Yearly Performance (H1)
Financials – Half Yearly Performance (H1) Rs. crore Revenues Rs. crore EBITDA EBITDA margin 418 60 13% 13% 49 50 11% 11% 258 40 35 9% 30 7% 20 5% 10 3% 0 1% H1 FY12 H1 FY13 H1 FY12 H1 FY13 EPS Rs. crore PAT PAT margin Rs. per share 11.0 40 8% 9% 35 8% 30 7% 5% 6% 25 5% 20 4.5 35 4% 15 3% 10 2% 15 5
Slide 21: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Anshuman Khandelwal Vaibhav Global Ltd Tel: +91-141-2770648 Email: Shiv Muttoo / Dipti Yadava anshuman.khandelwal@vaibhavgems.com CDR-India Tel: +91 22 6645 1207 / 1218 Email: shiv@cdr-india.com dipti@cdr-india.com 2
Slide 22: Thank You
Thank You 22
Vaibhav Global — Investor Presentation (December 2012) on 6ix