Kddl Limited · NSE:KDDL
Kddl — Q2 FY2020 Earnings Presentation
37 slides from Kddl's earnings presentation, Nov 7, 2019
Slide 1: KDDL Limited cover letter - Results Update Presentation
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/2019-20/64 Date : 7th November, 2019 National Stock Exchange of India Limited BSE Limited, Exchange Pl
Slide 2: KDDL Limited & ETHOS Limited Result Update Presentation
KDDL Limited & ETHOS Limited Result Update Presentation November 2019
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by 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
Slide 4: Q2FY20 Performance Overview
Q2FY20 Performance Overview 3
Slide 5: Q2FY20 Performance
Q2FY20 Performance Standalone Performance (Rs. Crs) Revenue Gross Profit +11.4% +10.1% 49.4 36.9 44.3 33.5 Q2FY19 Q2FY20 Q2FY19 Q2FY20 Ethos Performance (Consolidated) (Rs. Crs.) Revenue Gross Profit -3.8% +4.3% 110.9 106.6 27.9 29.1 Q2FY19 Q2FY20 Q2FY19 Q2FY20 4 Q2FY20 Financials are with applicabi
Slide 6: H1FY20 Performance
H1FY20 Performance Standalone Performance (Rs. Crs) Revenue Gross Profit +10.0% +8.2% 97.6 67.1 72.6 88.7 H1FY19 H1FY20 H1FY19 H1FY20 Ethos Performance (Consolidated) (Rs. Crs.) Revenue Gross Profit -1.4% +7.5% 211.7 208.8 55.4 59.6 H1FY19 H1FY20 H1FY19 H1FY20 5 H1FY20 Financials are with applicabil
Slide 7: Standalone Profit & Loss
Standalone Profit & Loss Profit & Loss (Rs. Crs.) Q2FY20 Q2FY19 YoY% H1FY20 H1FY19 YoY% Revenue 49.4 44.3 11.4% 97.6 88.7 10.0% Cost of Goods Sold 12.5 10.8 25.0 21.6 Gross Profit 36.9 33.5 10.1% 72.6 67.1 8.2% Employee Expenses 14.2 12.6 28.4 25.3 Other Expenses 13.5 12.6 26.9 25.4 EBITDA 9.2 8.3 1
Slide 8: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crs.) Q2FY20 Q2FY19 YoY% H1FY20 H1FY19 YoY% Revenue 158.4 156.7 1.1% 311.3 303.0 2.7% Cost of Goods Sold 89.9 93.9 174.8 178.8 Gross Profit 68.5 62.8 9.1% 136.5 124.2 9.9% Employee Expenses 26.1 20.6 51.8 40.6 Other Expenses 24.3 29.0 48.6 57.1 EBITDA 18
Slide 9: Adjusted Consolidated Profit & Loss
Adjusted Consolidated Profit & Loss Adjusted for INDAS 116 H1FY20 Particulars (Rs. Crs.)* As Reported H1FY20 H1FY19 Revenue 311.3 311.3 303.0 Cost of Goods Sold 174.8 174.8 178.8 Gross Profit 136.5 136.5 124.2 Employee Expenses 51.8 51.8 40.6 Other Expenses 48.6 64.6 57.1 Normalized EBITDA 36.0 20.0
Slide 10: 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. 124.7 C
Slide 11: Balance Sheet
Balance Sheet Consolidated Standalone Rs. Crs Sep-19 Mar-19 Sep-19 Mar-19 Equity 230.6 235.0 170.5 167.1 Equity share capital 11.7 11.7 11.7 11.7 Other equity 171.1 179.1 158.8 155.4 Non Controlling Interest 47.8 44.1 - - Non-current liabilities 179.1 73.7 49.9 39.5 Financial Liabilities (i) Borrowi
Slide 12: Manufacturing Business Overview
Manufacturing Business Overview 11
Slide 13: 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 14: Acquired Estima AG in Switzerland
Acquired “Estima AG” in Switzerland ▪ Estima was established as a maker of watch hands in ▪ Estima was a competitor of the Company in the Switzerland in 1924 business of watch hands manufacturing ▪ It was a leading supplier to Swiss and other European ▪ Has a well established name, valuable producti
Slide 15: 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 16: Stable Manufacturing Performance
Stable Manufacturing Performance* Revenue (Rs. Crs.) EBITDA (Rs. Crs.) 175 32 +11% +15% 146 27 127 125 22 21 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 15 *Excludes the Financial Performance of Estima AG, Switzerland
Slide 17: Ethos Q2 & H1FY20 Snapshot
Ethos Q2 & H1FY20 Snapshot THE 50 FINEST WATCHES 16
Slide 18: H1FY20 Performance
H1FY20 Performance H1FY20 vs H1FY19 (Consolidated*) Billings (Rs. Crs.) Revenue (Rs. Crs.) Gross Profit (Rs. Crs.) +7.5% 245.8 240.9 211.7 208.8 59.6 55.4 H1FY19 H1FY20 H1FY19 H1FY20 H1FY19 H1FY20 *Consolidated Financials include Watch Retailing Business and Digital Marketing business 17 H1FY20 Fina
Slide 19: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crores)* Q2FY20 Q2FY19 YoY % H1FY20 H1FY19 YoY % Revenue 106.6 110.9 -3.8% 208.8 211.7 -1.4% Cost of Goods Sold 77.6 83.0 149.2 156.3 Gross Profit 29.1 27.9 4.3% 59.6 55.4 7.5% Employee Expenses 8.7 7.6 17.4 14.5 Other Expenses 9.6 15.0 19.2 30.2 Reported
Slide 20: Adjusted Consolidated Profit & Loss
Adjusted Consolidated Profit & Loss Adjusted for INDAS 116 & other items H1FY20 Particulars (Rs. Crores)* As Reported H1FY20 H1FY19 Revenue 208.8 208.8 211.7 Cost of Goods Sold 149.2 149.2 156.3 Gross Profit 59.6 59.6 55.4 Employee Expenses 17.4 17.4 14.5 Other Expenses 18.8 33.7 27.0 Normalized EBI
Slide 21: 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.110.9 Cr
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet Liabilities (Rs. Crores)* Sep-19 Mar-19 Assets (Rs. Crores)* Sep-19 Mar-19 Shareholder’s Fund 152 134 Non-current assets 160 43 Share Capital 18 17 Fixed Assets 33 27 Other Equity 134 117 Right of Use 111 0 Financial Assets 11 11 Non-current liabilities 109 18 Other Non Cu
Slide 23: Largest Pan India retailer of Luxury Watches - Additions
Largest Pan India retailer of Luxury Watches Stores as of Aug-19 50 Multi Brand Chanakya Mall, New Delhi Summit Store 2,048 Sq.Ft. Multi Brand Orbit Victoria, Kolkata Additions Summit Store 3,990 Sq.Ft. Phoenix Market City, Chennai Hublot Boutique, Multi Brand Inaugurated by Hublot Summit Store 2,00
Slide 24: Fund Raise strengthens Balance Sheet
Fund Raise strengthens Balance Sheet Rs. 50cr Rs. 480cr 73.56% Shareholding of Ethos Limited raises Funds raised at a pre KDDL Ltd (directly Rs. 29 crores equity money valuation of and indirectly) in funds in FY19 & Rs. Rs. 480 crores Ethos Ltd on fully 21 Crores YTD FY20 diluted basis Equity Funds
Slide 25: 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 26: Operational Snapshot
Operational Snapshot 25
Slide 27: Ethos - Performance Trend
Ethos - Performance Trend Front-end Rent & Manpower Cost as % of Revenue (Rs. Crs.) Revenue 211.7 208.8 12.6% 12.3% 12.2% 11.6% 10.5% 148.3 157.0 153.9 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20 EBITDA (Rs. Crs.) EBITDA Margins 10.6 5.0% 8.1 4.0% 3.9% 6.0 0.1 0.0% -1.4 -0.
Slide 28: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billings (Rs. Crs.) Online Billing as % of Total Billing 74.6 31.1% 32.1% 70.8 30.4% 29.4% 28.4% 55.3 57.5 47.1 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20 Visitors (‘000) 7,448 6,846 6,010 4,946 3,527 H1FY16 H1FY17 H1FY18 H1FY19 H1FY20 27
Slide 29: Ethos - Repeat Sales Trend
Ethos - Repeat Sales Trend Club ECHO Member Base Repeat Billings (Rs. Cr.) 230,174 85.3 82.4 216,704 184,891 154,357 52.3 32.5 Mar’17 Mar’18 Mar’19 Sep’19 H1FY17 H1FY18 H1FY19 H1FY20 28 H1FY20 Financials are with applicability of IND AS 116
Slide 30: Ethos is India's Largest Luxury Watch Retailer
Ethos is India’s Largest Luxury Watch Retailer 29
Slide 31: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network India’s Largest retail chain of Luxury Watches with 53 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 Bhopal Ahmedabad Indore Kolk
Slide 32: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network Exclusive New Store Digital Right Mix Brands Strategy ▪ Leverage on our ▪ Targeting to ▪ Targeting to Digital platform have a right mix open new to drive sales of Brands at all ▪ Higher share of stores in Tier 2 price points and customers Business from c
Slide 33: 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 34: 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 35: and Continued Investments in Advertising
and Continued Investments in Advertising… Print Ads in leading newspapers… … with ETHOS co-branding 34
Slide 36: Offering the best Watch Brands under one roof
Offering the best Watch Brands under one roof 35 The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only
Slide 37: 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