Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — H1 FY2015 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, November 2014
Slide 1: Financial Results Presentation Q2 & H1FY15
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q2 & H1FY15 November 2014
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: VGL Overview
VGL Overview Vertically-integrated electronic retailer • End-to-end B2C business model in the electronic retail industry • Proprietary TV homeshopping and e-commerce platforms Liquidation Channel and The Jewellery Channel are strong brands • 96 million (FTE) households on TV shopping in the US, UK a
Slide 4: Table of Contents
Table of Contents Q2 & H1 FY15 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for Q2 FY15
Key Highlights for Q2 FY15 Home TV Network Reaches Over 100 Million Households • 96 million households on full time equivalent (FTE) basis• 25 million households in the UK • 68.3 million households in the US • 2.3 million households in Canada Retail Volumes Rise 8% to 2.4 Million Units • 11% higher
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q2 & H1 FY15 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “Expanding our offerings, enhancing the transaction experience, and deepening our engagement with our 1.45 million TV and web customers has resulted in improving perform
Slide 7: Financials – Q2 & H1 FY15 Performance (Revenues)
Financials – Q2 & H1 FY15 Performance (Revenues) Revenues (Rs. crore) 623 568 318 321 Q2 FY14 Q2 FY15 H1 FY14 H1 FY15 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 415 444 228 235 116 88 55 57 65 63 35 29 Q2 FY14 Q2 FY15 H1 FY14 H1 FY15 Q2 FY14 Q2 FY15 H1 FY14 H1 FY15 Q2 FY14 Q2 FY15 H1
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 24 24 23 3,156 22 2,941 1,564 1,734 • Volume growth in Q2FY15 – 11% in TV and 2% in Web • Web sales now contribute 28% of sales Q2 Q2 H1 H1 Q2 Q2 H1 H1 volume FY14 FY15 FY14 FY15 FY14 FY15 FY14 FY15 • Volume growth dr
Slide 9: Financials – Q2 & H1 FY15 Performance (Margins)
Financials – Q2 & H1 FY15 Performance (Margins) Rs. crore Gross Profit Gross margin 450 70% 65% 63% 400 62% 65% 61% 350 60% 300 • Gross margins improved y/y due to 55% 250 improved product selection at channels 50% and operational efficiencies at VGL India 200 45% 150 100 40% 50 35% 192 208 355 395
Slide 10: Financials – Q2 & H1 FY15 Performance (Profits)
Financials – Q2 & H1 FY15 Performance (Profits) Rs. crore PAT * PAT margin 100 18.0% 80 15.0% • PAT impacted by lower exchange gains 11.1% 12.0% 10.4% and higher tax outgo in the US and India 60 9.0% 6.8% 40 7.5% 6.0% 20 3.0% 33 24 63 42 - 0.0% Q2 FY14 Q2 FY15 H1 FY14 H1 FY15 * Profit after tax with
Slide 11: Table of Contents
Table of Contents Q2 & H1 FY14 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 11
Slide 12: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,298 893 647 526 623 FY11 FY12 FY13 FY14 H1 FY15 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 687 483 225 395 444 162 117 85 91 89 73 116 46 63 FY11 FY12 FY13 FY14 H1 FY11 FY12 FY13 FY14 H1 FY11 FY12 FY13 FY14 H1 FY15 FY
Slide 13: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 6,420 41 5,239 30 3,268 23 24 23 • Robust volume growth driven by strong 3,156 2,039 customer engagement • ASP has trended in line with portfolio FY11 FY12 FY13 FY14 H1 FY11 FY12 FY13 FY14 H1 transition from fine jewe
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 900 66% 800 63% 64% 700 61% 62% 600 60% 59% 60% 500 • Gross margins improved due to better 58% product mix and direct cost efficiencies 400 55% 56% at India plant. 300 200 54% 100 52% 289 384 533 789 395 0 50% FY11 FY12 FY13
Slide 15: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 12% 12% 160 12% 140 10% 120 8% 8% • Margin impact of Q1 continued in Q2 100 8% 8% due to call center and AMS integrations 80 6% 60 4% 40 2% 20 42 79 78 153 47 0 0% FY11 FY12 FY13 FY14 H1 FY15 Rs. per share EPS 48 25 24 13 15 FY
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 265 278 205 203 233 205 159 58 66 75 FY11 FY12 FY13 FY14 H1 FY15 FY11 FY12 FY13 FY14 H1 FY15 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due * During FY13 fixed assets we
Slide 17: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Rs. crore Free Cash Flow * Rs. crore Operating Cash flow 178 160 77 63 54 52 48 44 42 29 FY11 FY12 FY13 FY14 H1 FY15 FY11 FY12 FY13 FY14 H1 FY15 *Includes Foreign Currency Transaction Reserve *Includes Foreign Currency Transaction Reserve Key usage areas for
Slide 18: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) ROE ROCE 68% 60% 65% 45% 41% 34% 37% 36% 23% 15% FY11 FY12 FY13 FY14 H1 FY15 FY11 FY12 FY13 FY14 H1 FY15 18
Slide 19: Table of Contents
Table of Contents H1 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 19
Slide 20: Market Opportunity
Market Opportunity US market size (US$ Bn) UK market size (US$ Bn) Fashion Fashion Accessories Accessories 17 6 Fine and Fine and Fashion Fashion Jewelry 67 Jewelry 8 Market share gains through expanded distribution network and introduction of collections/designs mapping market trends 20
Slide 21: Product Profile
Product Profile Watches, handbags, scarves, phone protective shells etc. Bracelets, bangles, earrings, studded jewelry etc. Office and home décor, etc. Continuously expanding product range – portfolio of 65,000 designs augmented with launch of lifestyle accessories 21
Slide 22: US Market Access on Liquidation Channel
US Market Access on Liquidation Channel Channel #274 Channel #399 & 1399 Channel #159 Channel #75 & 226 * * * https://www.liquidationchannel.com * * * Different channel # across various locations Access to 71 million (FTE) of the 116 million households in the US 22
Slide 23: UK Market Access on The Jewellery Channel
UK Market Access on The Jewellery Channel Channel #49 Channel #650 Channel #815 Channel #757 www.thejewellerychannel.tv Access to 25 out of the total 25 million households 23
Slide 24: Sourcing Markets
Sourcing Markets Manufacturing facility in Jaipur, India Production capacity – 4 million pieces p.a. ISO 9001:2008 manufacturing facilities Over 2,200 people in India across corporate, manufacturing, design, sales & marketing, customer service, logistics etc Sourcing operations from fashion centric
Slide 25: Consumption Markets
Consumption Markets Access to over 96 million (FTE) households on TV homeshopping in the US, UK and Canada • Affiliate agreements with major cable, satellite providers • Improved product presentation by investing into studio facilities The Jewellery Channel Liquidation Channel UK USA • The Jewellery
Slide 26: Sourcing Methodology
Sourcing Methodology Assessing value perception – design / fashion trend / price in target Competitive markets 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 27: Aligned with Demand Patterns
Aligned with Demand Patterns Process Buyer discussions Evaluation/ feedback of last year’s hits/misses Product Valentine Day & Mothers’ Summer Product development strategies – by Spring Product Line Day Line category Process begins – September Process begins – December Process begins – Decembe
Slide 28: Management Team
Management Team Sunil Agrawal Chairman and Managing Director Established Vaibhav in 1980 as a first generation entrepreneur and has led the company’s transition into a leading brand for fashion jewelry and lifestyle accessories Travels extensively across the world, overseeing operations, sourcin
Slide 29: Management Team
Management Team Praveen Tiwari Pushpendra Singh Vice President , STS China Vice President , Human Resources Asia Over 15 years at VGL, currently heads the group’s China 19 years of experience in HR with a range of Indian and Hong Kong sourcing operations companies such as NTPC, Jindal Steel and
Slide 30: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Hemant Sultania Vaibhav Global Ltd. Tel: +91-141-2770648 Email: Hemant@vglgroup.com Shiv Muttoo / Karl Kolah CDR India Tel: +91 22 6645 1207 / 1220 Email: shiv@cdr-india.com karl@cdr-india.com 30
Slide 31: Thank You
Thank You 31