Raymond Limited · NSE:RAYMOND
Raymond — Investor Presentation (May 2019)
123 slides from Raymond's investor presentation, May 2, 2019
Slide 1: Exchange filing cover letter
SECRETARIAL DEPARTMENT Jekegram, Pokhran Road No. 1, Thane fW)- 400 606 Maharashtra, India GIN No,: Ll7ll7MH1925PLC001208 Tel: (91-22) 4036 7000 I 6152 7000 Fax: (91-22) 2541 2805 www.raymond.in RL/SE/AC/19-20/148 May 02,2019 The Department of Corporate Services - CRD The National Stock Exchange of
Slide 2: Annual Investor Meet, 2nd May 2019
Annual Investor Meet, 2nd May 2019
Slide 3: The business continues to build capacities
“The business continues to build capacities for enhanced performance and delivery across verticals with innovative products and services as well as technology adoption that includes digitalization and automation” 2
Slide 4: Agenda
AGENDA Q4 FY19 Results FY19 Results Initiatives Undertaken in FY19 Planned in FY20 The Journey Ahead 3
Slide 5: Agenda
AGENDA Q4 FY19 Results FY19 Results Initiatives Undertaken in FY19 Planned in FY20 The Journey Ahead 4
Slide 6: A modest Year for the Economy
A modest Year for the Economy FY19 - First full year post two consecutive structural reforms in the country While India remains fastest growing major economy, GDP growth moderated In H2FY19, liquidity issues emerged in the economy, impacting trade channels Consumer sentiments moderated, however cons
Slide 7: Strong profitable growth in Q4FY19
Strong profitable growth in Q4FY19 INR Cr. 1,837 195 11% 11% Revenue EBITDA 1,655 176 10.6% 68 27% EBITDA Net Margin Profit 10.6% 53 6
Slide 8: Consolidated Result – Q4FY19
Consolidated Result – Q4FY19 Particulars (INR Cr) Q4 FY19 Q4 FY18 Y-o-Y% Net Revenue 1,837 1,655 11% Net Sales 1,809 1,630 11% EBITDA 195 176 11% EBITDA margin 10.6% 10.6% PBT before exceptions 94 76 24% PBT margin 5.1% 4.6% Underlying Net Profit 68 53 28% (before exceptions) Exceptional items (net
Slide 9: Segment Performance Q4FY19 - Growth across all Segments
Segment Performance Q4FY19 - Growth across all Segments EBITDA EBITDA EBITDA Sales Sales Growth Margin (%) Margin LTL Margin (%) (INR Cr.) (%) Q4 FY19 (%)* Q4 FY18 Branded Textiles 832 4% 15.9% 16.7% 19.5% Branded Apparel 489 21% 6.5% 7.0% 3.7% Garmenting 212 5% 3.6% 4.3% 6.9% High Value Cotton Shir
Slide 10: Branded Textile
Branded Textile Particulars (INR Cr) Q4 FY19 Q4 FY18 % Chg Net Sales 832 802 4% EBITDA 132 156 -16% EBITDA margin 15.9% 19.5% EBITDA LTL 139 156 -11% EBITDA margin LTL 16.7% 19.5% • Increase in sales driven by TRS and MBO channel Suiting grew by 3% driven by volumes and Shirting grew by 9% drive
Slide 11: Branded Textile
Branded Textile EBITDA Margin lower for the quarter vs PY due to Future Investment on Customization - #TailorYourStyle Advertisement spends of ~ Rs 12 crores Overall Wholesale Channel impacted Stock Correction of ~Rs 5 Cr in B2C Shirting Continued efforts to maintain the growth momentum 10% vo
Slide 12: Branded Apparel
Branded Apparel Particulars (INR Cr) Q4 FY19 Q4 FY18 % Chg Net Sales 489 403 21% EBITDA 32 15 115% EBITDA margin 6.5% 3.7% EBITDA LTL 34 15 129% EBITDA margin LTL 7.0% 3.7% • Branded Apparel growth driven by Strong double-digit growth across all brands with 20%+ growth in RRTW and Parx supported b
Slide 13: Garmenting
Garmenting Particulars (INR Cr) Q4 FY19 Q4 FY18 % Chg Net Sales 212 201 5% EBITDA 8 14 -46% EBITDA margin 3.6% 6.9% EBITDA LTL 9 14 -35% EBITDA margin LTL 4.3% 6.9% • Growth led by exports to US markets • EBITDA margin LTL lower at 4.3% mainly due to lower utilization of Ethiopia plant capacity and
Slide 14: High Value Cotton Shirting
High Value Cotton Shirting Particulars (INR Cr) Q4 FY19 Q4 FY18 % Chg Net Sales 156 145 7% EBITDA 20 13 52% EBITDA margin 12.9% 9.1% EBITDA LTL 21 13 63% EBITDA margin LTL 13.8% 9.1% The results shown above are for 100% operations and include minority interest • Sales growth led by yarn sales from A
Slide 15: Tools and Hardware
Tools and Hardware Particulars (INR Cr) Q4 FY19 Q4 FY18 % Chg Net Sales 102 90 14% EBITDA 8 9 -5% EBITDA margin 8.2% 9.8% The results shown above are for 100% operations and include minority interest • Growth driven by better performance in exports markets • EBITDA margin was lower mainly due to -
Slide 16: Auto Component
Auto Component Particulars (INR Cr) Q4 FY19 Q4 FY18 % Chg Net Sales 68 62 10% EBITDA 15 9 60% EBITDA margin 21.9% 15.1% EBITDA LTL 15 9 63% EBITDA margin LTL 22.3% 15.1% The results shown above are for 100% operations and include minority interest • Growth driven by ramp up of volume from existing c
Slide 17: Agenda
AGENDA Q4 FY19 Results FY19 Results Initiatives Undertaken in FY19 Planned in FY20 The Journey Ahead 16
Slide 18: Strong performance in Revenue & Profitability
Strong performance in Revenue & Profitability INR Cr. 6,708 705 10.5% 12%* 29% EBITDA Revenue EBITDA Margin 6,025 546 9.1% 168 27.4 11.2% 25% Net EPS (Rs) ROCE Profit 135 21.9 8.9% * Exc. GST impact 17
Slide 19: Consolidated Results – Profitable Revenue Growth Achieved in FY19
Consolidated Results – Profitable Revenue Growth Achieved in FY19 Particulars (INR Cr) FY19 FY18 Change Y-o-Y% Net Revenue 6,708 6,025 683 11% 12%* Net Sales 6,582 5,906 676 11% EBITDA 702 546 156 29% EBITDA margin 10.5% 9.1% 140 bps PBT before exceptions 273 192 81 42% PBT margin 4.1% 3.2% 88 bps N
Slide 20: FY19 Highlights - What has gone well
FY19 Highlights - What has gone well: At consolidated level - Strong Performance over previous year Growth across all segments Branded Apparel achieved strong profitable growth over last year Topline growth by 17%*, EBITDA LTL margin improvement by 263 bps to 4.2%^ Built scale in line with ass
Slide 21: FY19 Highlights - What has gone well: Real Estate
FY19 Highlights - What has gone well: Real Estate: Project launched Initial response ahead of expectations To-date 400+ bookings Capital efficiency improvement ROCE improvement continues – from 8.9% to 11.3% Capex under control @ ₹ 275 cr, in line with guidance 20
Slide 22: FY19 Highlights - Challenges faced
FY19 Highlights - Challenges faced: Suiting: Rising wool prices Cost optimization steps undertaken to partly mitigate its impact Price hikes (July-19 & Jan-20), fiber optimization B2C Shirting business faced headwinds in H2 Channel stock correction impacting margins Operating & Political Trans
Slide 23: Segment Performance FY19
Segment Performance FY19 EBITDA EBITDA EBITDA Sales Sales Growth Margin (%) Margin LTL Margin (%) (INR Cr.) (%) FY19 (%)* FY18 Branded Textiles 3,153 8% 13.8% 14.7% 15.7% Branded Apparel 1,647 16% 3.7% 4.2% 1.6% Garmenting 779 13% 5.1% 5.9% 5.2% High Value Cotton Shirting 648 13% 13.7% 14.5% 10.2% T
Slide 24: Branded Textile – Strong growth witnessed
Branded Textile – Strong growth witnessed INR Cr. FY 19 FY 18 Amt %age Sales 3,153 2,915 238 8% 8.9%* EBITDA 435 458 -23 -5% EBITDA margin 13.8% 15.7% -191 bps EBITDA LTL 463 458 5 1% EBITDA margin LTL 14.7% 15.7% -102 bps Suiting (+9%*) - Driven by volume growth of 11% in domestic business and st
Slide 25: Branded Apparels – Momentum on achieving scale
Branded Apparels – Momentum on achieving scale INR Cr. FY 19 FY 18 Amt %age Sales 1,647 1,424 223 16% 17.2%* EBITDA 61 23 38 169% EBITDA margin 3.7% 1.6% 211 bps EBITDA LTL 70 23 47 206% EBITDA margin LTL 4.2% 1.6% 263 bps Power Brands maintaining growth momentum at 14% (H1: 11% & H2: 16%): Stro
Slide 26: Power Brands maintaining growth momentum
Power Brands maintaining growth momentum… 4 Power Brands Sales (₹ Cr.) 338 648 278 259 & Supported by YoY growth (%)* 20%^ 12% 5% 20% New Customer Segments 5 Year CAGR%* 21% 16% 7% 19% *Sales growth is excluding GST impact, period FY14-FY19 ^ Excluding institutional sales of ₹68 cr, RRTW growth @7%
Slide 27: Color Plus – Regaining Momentum
Color Plus – Regaining Momentum Exited the year with double-digit growth of 13% in Q4FY19 13% 8% 5% -2% Q1FY19 Q2FY19 Q3FY19 Q4FY19 *Q1FY19 sales growth is excluding GST impact 26
Slide 28: Garmenting – Maintained growth momentum
Garmenting – Maintained growth momentum INR Cr. FY 19 FY 18 Amt %age Sales 779 691 87 13% EBITDA 40 36 4 11% EBITDA margin 5.1% 5.2% -8 bps EBITDA LTL 46 36 10 27% EBITDA margin LTL 5.9% 5.2% 68 bps Revenue growth driven by higher exports to US Scale-up of exports to US market from Ethiopia plan
Slide 29: High Value Cotton Shirting - Improved performance
High Value Cotton Shirting - Improved performance INR Cr. FY 19 FY 18 Amt %age Sales 648 575 73 13% 13.2%* EBITDA 89 59 30 51% EBITDA margin 13.7% 10.2% 350 bps EBITDA LTL 94 59 36 60% EBITDA margin LTL 14.5% 10.2% 433 bps Results are shown for 100% operations & include minority interest Sales gro
Slide 30: Tools & Hardware - Sustaining Profitable Operations
Tools & Hardware - Sustaining Profitable Operations INR Cr. FY 19 FY 18 Amt %age Sales 401 365 37 10% 11.9%* EBITDA 43 33 10 32% EBITDA margin 10.7% 9.0% 177 bps Results are shown for 100% operations & include minority interest After a successful turnaround last fiscal, the business has witnessed
Slide 31: Auto Components - Strong sales & profit growth
Auto Components - Strong sales & profit growth INR Cr. FY 19 FY 18 Amt %age Sales 259 218 41 19% 20%* EBITDA 58 45 13 29% EBITDA margin 22.6% 20.8% 177 bps EBITDA LTL 59 45 13 30% EBITDA margin LTL 22.7% 20.8% 188 bps Results are shown for 100% operations & include minority interest Strong revenue
Slide 32: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow 31
Slide 33: Improvement in Performance Indicators
Improvement in Performance Indicators ROCE showed strong growth… …mainly Driven by improvement in EBIT margin 11.2% 7.5% 8.9% 6.2% Mar'18 Mar'19 Mar'18 Mar'19 Increased ROE – Enhanced Net Debt/EBITDA (X) improved due Shareholder Value to better profitability 3.5 8.6% 2.9 7.4% Mar'18 Mar'19 Mar'18 Ma
Slide 34: Balance Sheet
Balance Sheet Particulars (INR Cr) FY19 FY18 Variance Net Worth 2,037 1,888 149 Gross Debt 2,468 2,353 114 Capital Employed 4,505 4,242 263 NFA + CWIP 2,049 2,012 37 Current Investments & Cash 402 460 (58) NWC 1,731 1,442 288 Others 322 328 (5) Capital Deployed 4,505 4,242 263 33
Slide 35: Interest cost up in FY19
Interest cost up in FY19 by Rs 48 Cr 34
Slide 36: Full Year: Positive Cash flow from Operations
Full Year: Positive Cash flow from Operations Particulars (₹Cr) FY19 Operating Profit less Taxes & Exc. Items 523 Working Capital Changes (262) Cash Flow from operating activities (a) 261 Net purchase of Fixed Assets (251) Movement in Investments 39 Interest & dividend income 80 Cash Flow from Inves
Slide 37: Guidance for FY 2019 Achieved
Guidance for FY 2019 Achieved KPI Guidance for FY19 Actual Results Revenue Growth 7% - 9% 12% * EBITDA Margin +80 – 100 bps +140 bps Improvement from FY18: ROCE (Underlying)^ 9.2% 11.9% Improvement from FY18: Net Debt/ EBITDA 3.5X 2.9X Free Cash Flow - ve -ve * Excluding GST impact ^ Excludes real-e
Slide 38: Agenda
AGENDA Q4 FY19 Results FY19 Results Initiatives Undertaken in FY19 Planned in FY20 The Journey Ahead 37
Slide 39: While maintaining Profitable Growth Momentum
While maintaining Profitable Growth Momentum Making Raymond future ready by Continued product & service innovation Market & Network Expansion Transforming ‘Supply Chain Management’ Adopting Next-Gen Technology platforms across all businesses 38
Slide 40: Initiatives - Undertaken in FY19
Initiatives - Undertaken in FY19 Product & Service Market & Network Transform SCM & Innovations Expansion Adopt New Age Tech • Brand Campaigns • Channel Expansion • Supply chain • New Product offerings • New Store Categories Transformation • New Customer Segments • Digitalization • Future Ready IT •
Slide 41: Initiatives - Undertaken in FY19
Initiatives - Undertaken in FY19 Product & Service Market & Network Transform SCM & Innovations Expansion Adopt New Age Tech • Brand Campaigns • Channel Expansion • Supply chain • New Product offerings • New Store Categories Transformation • New Customer Segments • Digitalization • Future Ready IT •
Slide 42: Brand & Innovation – Campaigns & Properties
Brand & Innovation – Campaigns & Properties Tailor your style Khadi Raymond Linen Highly Contextual & Sharply targeted marketing campaign Sports Engagement Music Association Movie Engagement Investing to Build Strong Brand Properties Style Sponsors for Indian team at Association with India Music Bra
Slide 43: Product Innovations – New Offerings
Product Innovations – New Offerings Largest Apparel tradeshow in India with showcase of ~20,000 SKU’s Cashmere sweater Air Weight Collection Active Formals Eco Collection Fashion Accessories CP Denim Wooden Acrylic Wooden Bow-Tie Bow-Tie set Knit shoes Creaseless shirts 42
Slide 44: Product Innovation – New Offerings
Product Innovation – New Offerings Shirting Fabric Portfolio Sunlight Prints Gold & Silver plated yarn used with linen for the rich look Perfumed Finish Shirts Spill Resistant Finish Without Sunlight Under Sunlight Increased range of Linen Products with high quality yarns 43
Slide 45: MTM – Category extension & Concierge service
MTM – Category extension & Concierge service Curated Line of Track pants, shorts, Special edition hoodies, round & V products neck T-shirts Ceremonial Lounge Wear Denim, Polo & Revamped website Chinos piloted to attract online across 20 stores bookings Casual Wear Concierge Service 44
Slide 46: New Customer Segments - Ethnix
New Customer Segments - Ethnix Opportunity in high growth premium Ethnic Wear segment Bandhgalas Sherwanis Smart Ethnix Kurtas Bundis Fusion Wear Design inspiration from Indian art forms such as – Rangoli, pottery, ghats of Benares, embroidery patterns,. etc. Retailed through multiple channels,
Slide 47: New Customer Segments - Khadi
New Customer Segments - Khadi Khadi for Nation, Khadi for Fashion Retailed through extensive network of Raymond stores and 120+ MBO doors Opened innovative concept store at prominent location - Kala Ghoda, Mumbai Closely worked with 150+ clusters to generate 3 million+ man-hours of additional
Slide 48: New Customer Segments – Next Look
New Customer Segments – Next Look Opportunity in untapped value segment due to shift from Unorganized to Organized sector Targeted at youth & young professionals – Aspirational designs at value price Strong focus on Tier II - IV cities To leverage existing strong retail presence in 550 towns
Slide 49: Initiatives - Undertaken in FY19
Initiatives - Undertaken in FY19 Product & Service Market & Network Transform SCM & Innovations Expansion Adopt New Age Tech • Brand Campaigns • Channel Expansion • Supply chain • New Product offerings • New Store Categories Transformation • New Customer Segments • Digitalization • Future Ready IT •
Slide 50: Fastest rollout of Mini TRS stores
UU | P = 1 Store launched every 1.5 days Hoye uJ Fo 8 300 Mini TRS, Kengeri Mar, 2019 ini TRS, Hoskot Oct, 2018 150 Days 100 Mini TRS, Gurugram Apr, 2018 200 Days Mini Mar,2017 400 Days Fastest Rollout of stores -
Slide 51: Mini-TRS – Asset light model of expansion
Mini-TRS – Asset light model of expansion 300 Mini TRS stores opened – across 190+ towns Largest retail network in India – presence in 590+ towns New Design Low Investment Right Size Attractive Pay-Back Fully Franchised Tier III - VI towns As on 31 Mar’19 50
Slide 52: Highest number of stores added in a year ever
Highest number of stores added in a year ever 2.4 mn 2.1 mn 283 additions sq ft sq ft 67 1,444 1,219 210 6 21 6 335 EBO 299 31 MTM # 68 58 closures 68 TRS 852 1,041 Mar 18 TRS MTM EBO TRS MTM EBO Mar 19 Additions include 191 Mini TRS ~97% of stores added are franchised including Mini TRS Blend
Slide 53: Network Expansion
Network Expansion EBO & MTM network Increased MBO reach Ethnix reach Added 72 new stores Increased by ~1,000 doors 2 EBOs, 80 MBO’s and TRS network Increased LFS presence B2C Shirting – Wholesale & MBO Khadi reach 52 Added 350+ new doors Added 150+ new doors 120+ MBO’s, TRS network Exclusive store i
Slide 54: Store activities for Customer Engagement
Store activities for Customer Engagement 11,000 + Local store marketing activities 53
Slide 55: New Store Categories - Innovative Store Concepts
New Store Categories - Innovative Store Concepts Ceremonial Atelier Lounge Ethnix Khadi Macy’s Tailor Square 54
Slide 56: Atelier
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Slide 57: Ceremonial
Mm Ceremonial rayon
Slide 58: Ethnix
Ethnix 57
Slide 59: Khadi
Khadi 58
Slide 60: Macy’s Tailor Square – Stores in USA
Macy’s Tailor Square – 15 Stores in USA 59
Slide 61: Expanding Tailoring Eco-system
Expanding Tailoring Eco-system Capacity Capability Connect Consumer 3 Pillars of Execution Tailoring Hubs Centre of Excellence Custom Tailoring • 51 operational hubs • Skill Training of Tailors/ Kharigars • Online Tailoring now available • Annual Conversion capacity • ~25,000+ tailors trained in 8 c
Slide 62: Digitalization – Raymond Rewards & Digital Reach
Digitalization – Raymond Rewards & Digital Reach Connects 1,385 stores and 650+ Franchisee partners Large base of 6.3 mn members contributing to 82% of retail sales Over 1.05 million repeat customers, growing at 11% Y-o-Y Member ATV high at ₹6,120 New launches Product Special Tactical Progra
Slide 63: Market expansion through Institutional Business
Market expansion through Institutional Business Institutional Sales emerging as major channel of growth Industry-wise coverage Defence Sports Public-Sector coverage 62
Slide 64: Amravati & Ethiopia - Capability to quickly execute and scale-up
Amravati & Ethiopia - Capability to quickly execute and scale-up new capacities Amravati (High Value Shirting) Ethiopia (Garmenting ) Achieved optimal capacity utilization Continued scale up, shipped ~0.5 Mn within 3 months of start of operations garments with nil quality defects in FY19 63
Slide 65: Initiatives - Undertaken in FY19
Initiatives - Undertaken in FY19 Product & Service Market & Network Transform SCM & Innovations Expansion Adopt New Age Tech • Brand Campaigns • Channel Expansion • Supply chain • New Product offerings • New Store Categories Transformation • New Customer Segments • Digitalization • Future Ready IT •
Slide 66: Supply chain Transformation Initiatives
Supply chain Transformation Initiatives Project Leap: Suiting SCM Redesign Project Athaang: Apparel SCM Redesign • Increase Distribution Reach • Integrated Merchandise Management to drive gross margin • Improve Working Capital improvement • Improve Sales Volume • Improve Lead time • Integrated Custo
Slide 67: Future Ready IT platforms
Future Ready IT platforms Digitized Order booking Project Pursuit: Single ERP across BUs • B2B ordering tool providing • Implementation of new ERP forecast, timely delivery & across BUs initiated access to larger range online • Orders fulfilled within 3 days of • Complete Changeover to new receipt o
Slide 68: Product Re-engineering
Product Re-engineering Product re-engineering to reduce wool price impact Wool microns optimization Product re- engineering Process optimization 67
Slide 69: Investment in Learning & Development
Investment in Learning & Development PROGRAMS CONDUCTED Singularity University Cambridge University Shakti • Top 20 leaders • Top 30 young Hi-potentials • All women employees • Aiming for an exponential • Knowledge series, • Focusses on creating self- change of 10x instead of an personalized coachin
Slide 70: Agenda
AGENDA Q4 FY19 Results FY19 Results Initiatives Undertaken in FY19 Planned in FY20 The Journey Ahead 69
Slide 71: 1. Network Expansion to continue
1. Network Expansion to continue Focus on asset light expansion Mini TRS – Stabilize existing stores and further roll-out of ~100 Mini TRS PA 500 – Increase penetration of Park Avenue via compact 500 Sq ft franchise stores Scaling up of Style Advisory to ~50 cities LFS & MBOs – Door expansions to co
Slide 72: 2. Services for customization & better user experience
2. Services for customization & better user experience Park Avenue – Drive Custom Tailoring Style-Me (Visualization) Mirror Design it Yourself ‘DIY’ Pilot in 5 EBO’s till FY19; 200+ new doors (MBO+TRS) in FY20 3D printed accessories • Aggressive Tailoring Campaign • Online Tailoring to reach 40 • En
Slide 73: 3. Accelerate Product Innovations
3. Accelerate Product Innovations Fabrics from unique material/properties Luxury Collection Wellness Collection Sustainability Collection Jacketing Fabric Diamond, Titanium, Gold, Anti-Bacterial, anti-odour, Recycled Fabric, Charcoal, Pineapple blend, cashmere, Silk, Silver, Super 180s with fragranc
Slide 74: Core business profitable growth momentum to continue in FY20
Core business profitable growth momentum to continue in FY20 Strong focus on customization and Accelerate Product 1 Network Expansion 2 user experience 3 Innovation Ongoing process transformation Improving Ethiopia Strong focus on improving profitability 4 in SCM and Digital Automation 5 through ini
Slide 75: Agenda
AGENDA Q4 FY19 Results FY19 Results Initiatives Undertaken in FY19 Planned in FY20 The Journey Ahead 74
Slide 76: Transformation Drivers
Transformation Drivers Enhancing Stakeholders’ Value Growth Transforma- tion Innovate & Sustain Invest & Grow Unlock value & De-leverage Management Textile – The Core Business Apparel – The Growth Engine ► Engineering – Turnaround in ► Further strengthen ► Product innovations progress of T&H busines
Slide 77: Continued Growth in the Core Textiles Business
Continued Growth in the Core Textiles Business Exploring new Accelerating fabric Inducing Triggers Eliminating Barriers opportunities growth Product Innovation Increasing Penetration Untapped Potentials Growing faster than New Products/Blends • New Format - Mini TRS Institutional Business the Indust
Slide 78: Scaling up towards Profitability – Branded Apparel
Scaling up towards Profitability – Branded Apparel EBITDA Margin 4.2%* Aspiring double digit -1% margins FY17 FY19 Way forward New Segments Category Extension Continue to scale up Ethnic wear, Next Look & Expansion Existing Network Expansion Expansion to Continue Doors increased post FY17 – LFS: 500
Slide 79: The Journey ahead - Create consistent shareholder value
The Journey ahead - Create consistent shareholder value FY18 – Guidance vs Actual FY19 – Guidance vs Actual FY-2018 FY-2018 FY-2019 FY-2019 FY-2020 Guidance Results Guidance Results Guidance Revenue Growth 7% - 9% 13.0% 7% -9% 11.0% 10% - 12% EBITDA Margin +100 – 150 9.1% 10.6% +80 - 100 bps +70-100
Slide 80: FMCG
FMCG 79
Slide 81: Raymond FMCG – A House of Brands
Raymond FMCG – A House of Brands 80
Slide 82: FMCG – Who are We
FMCG – Who are We Part of the Raymond Group of Companies Comprises of Two SBUs – J.K Helene Curtis Ltd. (JKHC) & Raymond Consumer Care Ltd. (RCC)* Focused on Home & Personal Care - Male grooming & Sexual Wellness Categories Male Grooming: Fragrance & Deos | Hair Care | Body Care Sexual Wel
Slide 83: FMCG – Our Strengths
FMCG – Our Strengths • One of the Best Portfolio in Personal Care • Well established portfolio in Home care • Hold a house of Iconic Brands • PARK AVENUE | RAYMOND | KAMA SUTRA |PREMIUM • Young and Motivated Management Team • Average age of employees ~32 Yrs 82
Slide 84: FMCG – Raymond Reimagined Journey of Last Three Years
FMCG – Raymond Reimagined Journey of Last Three Years FY 19 Results Acceleration FY 18 Turnaround FY 16 Anchored Ship FY 16 FY 17 FY 18 FY 19 83
Slide 85: FMCG – Key Highlights
FMCG – Key Highlights Topline growth of 22% CAGR in last 2 years Retail presence across 3.5 Lac outlets across all brands Serving ~11,000 Modern Trade Outlets and strong foothold in CSD & Institutional Channel In 2017, acquired 100% ownership of “Kamasutra” brand from Ansell In the process
Slide 86: Performance – Financial Highlights
Performance – Financial Highlights* Net Sales** EBITDA** 24% 30% 565 27.0 21.8 14% 433 381 5X FY 17 FY 18 FY 19 FY 17 FY 18 FY 19 -5.0 * Aggregated financials of JKHC & RCC for 100% of Operations ** All Figures in INR Crs, 85
Slide 87: Led by – New Product Launches & Organization Building Initiatives
Led by – New Product Launches & Organization Building Initiatives New launches Organization Building Initiatives Category management Structure New Flavored Condoms Strengthen R&D and Supply Chain Capabilities New PA EDP Distribution footprint expansion And next level of Digitalization: Luxur
Slide 88: Followed with – Long Term Brand Building
Followed with – Long Term Brand Building Subah Good Morning to Din Amazing It all Begins with a Spark New EDP The Men with Class Kuch Unke Liye Kuch Apke liye 87
Slide 89: And in Male Deos – We have attained Market Leadership
And in Male Deos – We have attained Market Leadership MAT Deo Market Shares % RCC Total, 19.1% 17.8% Lead Competitor, 17.8% 16.6% APR18 MAY18 JUN18 JUL18 AUG18 SEP18 OCT18 NOV18 DEC18 JAN 19 FEB 19 MAR 19 RCC Total Lead Competitor Gained 250 BPS Market Share in last 12 Months # Source: AC Neilsen Au
Slide 90: And in Condoms – We have become No 2
And in Condoms – We have become No 2 from No 4 in Three Years 34.0 19.0 33.3 32.0 17.0 Competitor 1, 32.2 15.0 30.0 KAMA SUTRA, 12.4 13.0 28.0 10.7 11.0 10.6 Competitor 2, 11.3 10.7 26.0 10.5 10.4 9.0 Competitor 5, 9.0 24.0 7.0 7.4 Competitor 3, 6.0 22.0 5.0 4.7 Competitor 4, 4.0 3.0 20.0 16-Mar 17-
Slide 91: In terms of Other Categories – Market Standing Improved
In terms of Other Categories – Market Standing Improved 2017 2019 3 3 5 3 10 8 12 10 # Source: Internal Estimates 90
Slide 92: And Huge Headroom for Growth – 10X Possibility
And Huge Headroom for Growth – 10X Possibility Addressable Market (FY23) Current Core Categories Size - ~54000 Cr Size - ~5250 Cr Face Care, 9,663 Condoms, Body Hair Color, Sexual Wellness 1,324 Lotion, 1,933 Air Care Rs. 1,254 Cr 4,832 Rs 700 Cr Air Care, 1,227 Surface Care, Shampoo, 4,467 7,760 Fr
Slide 93: Will Continue to Grow – With the Vision
Will Continue to Grow – With the Vision of Making the World Look Good & Feel Great Everyday 92
Slide 94: With Philosophy of - Living as One Team and Believing in One Dream
With Philosophy of - Living as One Team and Believing in One Dream 93
Slide 95: Raymond Realty
ALTY Go Beyond Raymond re
Slide 96: Macro environment shaping up the Real Estate sector
Macro environment shaping up the Real Estate sector Friendlier FDI policy expected to increase fund inflow into the sector Low home loan interest rates to help in increasing demand Income tax law for 2nd house – A big positive for investors REIT listing opens a new chapter for the Sector P
Slide 97: Competitive scenario MMR
Competitive scenario MMR New launches up by 183% YoY Sales up by 95% YoY Unsold inventory remains same as last year Overhang period of 35 months Thane Market : New launches down by 35% YoY Absorption remains flat at 47,000 units Unsold Inventory has come down by 10% YoY (Big positive)
Slide 98: Launch of Raymond Realty Aspirational – 14 acres
Launch of Raymond Realty Aspirational – 14 acres 97
Slide 99: Excellent Connectivity & Eco-system
Excellent Connectivity & Eco-system 98 98
Slide 100: Layout Plan
Layout Plan MLCP -Construction to start post monsoon Premium Tower-A,B,C Tower-D,E -All approvals obtained -Approvals at advance stage -RERA Registration Done - Launch progressively from -Launched for Sale May -Construction Commenced 99
Slide 101: A project that will elevate the benchmark of contemporary living
A project that will elevate the benchmark of contemporary living Representational Image | Raymond Realty
Slide 102: Niceties – Unique to our project
Niceties – Unique to our project Offie-crèche Laundromat A host Netflix pods of Community Kitchen Guest Rooms More than 1500 + trees on mother earth 7 acres of amenities & open space out of 14 acres project Over & above this we have more than 75 plus amenities in our project 101
Slide 103: 1500 + trees on Mother earth
1500 + trees on Mother earth 102
Slide 104: Elevated walk way
Elevated walk way 103 103 Representational Image | Raymond Realty
Slide 105: Central 5 acre landscape greens
104 Central 5 acre landscape greens 104 Representational Image | Raymond Realty
Slide 106: 25,000 sq. ft. clubhouse
WP 25,000 sq. ft. clubhouse & lu y f f Af iY ie J i G O 5 a ,AAAAARAAaAAaRAaAYL a fe RAAAAAA VANS +5) TE
Slide 107: G+42 storied, Magnificent towers
G+42 storied, Magnificent towers with contemporary designed facade 106 106 Representational Image | Raymond Realty
Slide 108: Smart sized homes for the complete family
Smart sized homes for the complete family 2 Bed - Haven
Slide 109: Living room
Living room 108 108 Shot on location Image | Raymond Realty
Slide 110: Bedroom
Bedroom 1 109 109
Slide 111: Master Bedroom
Master Bedroom 110 110
Slide 112: Kitchen
111 Kitchen 111
Slide 113: Smart Sized homes for Millennial & DINKS
Homes Smart Sized homes for Millennial & DINKS 2 Bed - Nest
Slide 114: Living room
Living room 113 113 Shot on location Image | Raymond Realty
Slide 115: Washroom Bedroom
ZO (iby ~ - a 7 Pia W = Rags iw Washroom oY Bedroom 1
Slide 116: Co- Creators
Co- Creators MEP Partner Structural Consultant Interior Designer Master Architect Construction Contractor Landscape Green Consultant 115 115
Slide 117: Financial Update
Financial Update Particulars (₹ Cr) Q4FY19 FY19 Total Units sold 211 211 Total Area sold 0.2 mn 0.2 mn Sales 20 Cr 20 Cr PBT 2 Cr -4 Cr Capital Employed till FY19 235 cr* *Capital Employed includes existing Transferrable Development Rights (TDR) of ₹50 cr 116
Slide 118: Business Update
Business Update Aspirational – 14 Acres Soft Launch- Employees, Dealers, Vendors Inventory – One tower launched at a time, till now launched Tower A,B & C Sold 400 + units till date Public Launch – Akshay Tritiya (7th May 2019) Premium - To be launched soon Financial Projection for overall 2
Slide 119: Construction Update
Construction Update Tower A,B & C - Excavation & PCC completed Construction Contractor finalized – Capacite Infra Projects Ltd Balance towers construction schedule to coincide with sales velocity 118 118
Slide 120: Response
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Slide 121: Q&A
Q&A
Slide 122: Disclaimer
Disclaimer • The particulars of this presentation contain statements related but not limited to revenues, financial results and supplemental financial information which has been compiled by the management, not to be construed as being provided under any legal or regulatory requirement and are not in
Slide 123: Thank You
¢ R SEr Rayinona Thank You