Slide 1: KDDL Limited filing cover letter
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/2020-21/63 Date : 12th November, 2020 National Stock Exchange of India Limited BSE Limited, Exchange P
Slide 2: KDDL Limited & ETHOS Limited Investor Presentation
KDDL Limited & ETHOS Limited Investor Presentation November 2020
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: Q2FY21 Performance Overview
Q2FY21 Performance Overview
Slide 5: Witnessing Strong Recovery Q-o-Q
Witnessing Strong Recovery Q-o-Q… Standalone Performance (Rs. Crs) Revenue Gross Profit +65% +66% 34.6 25.3 21.0 15.2 Q1FY21 Q2FY21 Q1FY21 Q2FY21 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* Gross Profit 266% 169% 102.5 31.5 11.7 28.0 Q1FY21 Q2FY21 Q1FY21 Q2FY21 4 Financials are with applica
Slide 6: Q2FY21 Performance
Q2FY21 Performance Standalone Performance (Rs. Crs) Revenue Gross Profit 49.4 36.9 34.6 25.3 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Ethos Performance (Consolidated) (Rs. Crs.) Revenue* Gross Profit 106.6 102.5 29.1 31.5 Q2FY20 Q2FY21 Q2FY20 Q2FY21 5 Financials are with applicability of IND AS 116 *Q2FY21 Reven
Slide 7: COVID-19 Impact on the Business
COVID-19 Impact on the Business (1/2) Business Operations • Q2FY21 witnessed easing of the Covid-19 led lockdowns as government eased restrictions on business operations and movement restrictions on people were lifted • All our manufacturing operations, retail stores & offices are now operating smoo
Slide 8: Standalone Profit & Loss
Standalone Profit & Loss Profit & Loss (Rs. Crs.) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% Revenue 34.6 49.4 -30% 21.0 65% 55.6 97.6 -43% Cost of Goods Sold 9.3 12.5 5.8 15.1 25.0 Gross Profit 25.3 36.9 -32% 15.2 66% 40.4 72.6 -44% Employee Expenses 11.3 14.2 10.8 22.0 28.4 Other Expenses 8
Slide 9: Consolidated Profit & Loss
Consolidated Profit & Loss Profit & Loss (Rs. Crs.) Q2FY21 Q2FY20 YoY% Q1FY21 QoQ% H1FY21 H1FY20 YoY% Revenue 139.4 158.4 -12.0% 53.0 163.1% 192.4 311.3 -38.2% Cost of Goods Sold 85.4 89.9 28.2 113.6 174.8 Gross Profit 54.0 68.5 -21.1% 24.8 118.2% 78.8 136.5 -42.3% Employee Expenses 18.7 26.1 19.5 3
Slide 10: Adjusted Consolidated Profit & Loss
Adjusted Consolidated Profit & Loss As Reported Adjusted for INDAS 116 Profit & Loss (Rs. Crs.) H1FY21 H1FY20 H1FY21 H1FY20 Revenue 192.4 311.3 192.4 311.3 Cost of Goods Sold 113.6 174.8 113.6 174.8 Gross Profit 78.8 136.5 78.8 136.5 Employee Expenses 38.3 51.8 38.3 51.8 Other Expenses 29.5 48.6 45.
Slide 11: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 100 Crores and equivalent to the lease liability of Rs. 100 Crores as on 30th Sep 2020 • Overall balance sheet will increase by the amount of asset created for Leases. This will hav
Slide 12: Standalone Balance Sheet
Standalone Balance Sheet Assets (Rs. Crs.) Sep-20 Mar-20 Liabilities (Rs. Crs.) Sep-20 Mar-20 Non-current assets 218.8 216.0 Equity 165.4 169.5 Property, plant and equipment 90.9 93.8 Equity share capital 11.7 11.7 Capital work-in-progress 3.1 2.2 Other equity 153.7 157.8 Right-of-use asset 11.9 12.
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crs.) Sep-20 Mar-20 Liabilities (Rs. Crs.) Sep-20 Mar-20 Non-current assets 286.7 299.2 Equity 209.1 227.4 Property, plant and equipment 153.7 158.6 Equity share capital 11.7 11.7 Capital work-in-progress 5.0 2.9 Other equity 159.8 174.0 Right-of-use asset 100.
Slide 14: Manufacturing Business Overview
Manufacturing Business Overview 13
Slide 15: 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 16: 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 Estima AG enjoyed an excellent reputation • However, over last 10 years, it was unable t
Slide 17: Precision Engineering Business
Precision Engineering Business Eigen offers a full package of services, ranging from design and Value Proposition development to full scale production, providing customers with optimized supply chain solutions We address various segments such as Electrical, Electronics, Automobile, Capabilities Tele
Slide 18: 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 17 *Excludes the Financial Performance of Estima AG, Switzerland
Slide 19: Ethos Q2FY21 Snapshot
Ethos Q2FY21 Snapshot THE 50 4 FINEST WATCHES 5
Slide 20: Witnessing Strong Recovery Q-o-Q
Witnessing Strong Recovery Q-o-Q… Revenue (Rs. Crs.)* EBITDA (Rs. Crs.) PAT (Rs. Crs.) 102.5 16.9 3.3 28.0 -0.8 -10.8 Q1FY21 Q2FY21 Q1FY21 Q2FY21 Q1FY21 Q2FY21 Witnessed strong recovery in revenue & profitability sequentially as lockdown restrictions eased during Q2FY21 and store operations normalis
Slide 21: Renewed Strategy for ETHOS
Renewed Strategy for ETHOS Stores Optimization Uniquely Positioned to Grow Post pandemic, Swiss brands may focus more In depth assessment of each store's on developed markets and less on developing performance across India . Accelerated closure like India. Ethos is uniquely positioned to of lower pr
Slide 22: Q2FY21 Performance
Q2FY21 Performance Q2FY21 vs Q2FY20 (Consolidated*) Billings (Rs. Crs.) Revenue (Rs. Crs.)# PAT (Rs. Crs.) 122.7 120.1 106.6 102.5 3.3 -2.8 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Q2FY20 Q2FY21 Inspite of the COVID-19 led restrictions during Q2FY21, ETHOS reported healthy revenue & improvement in profitability
Slide 23: Consolidated Profit & Loss
Consolidated Profit & Loss Particulars (Rs. Crores)* Q2FY21 Q2FY20 YoY (%) Q1FY21 QoQ (%) H1FY21 H1FY20 YoY (%) Revenue 107.6 106.6 0.9% 32.8 228% 140.5 208.8 -32.7% Cost of Goods Sold 76.1 77.6 21.1 97.2 149.2 Gross Profit 31.5 29.1 8.5% 11.7 169% 43.3 59.6 -27.4% Margin (%) 29.3% 27.3% 35.7% 30.8%
Slide 24: Adjusted Consolidated Profit & Loss
Adjusted Consolidated Profit & Loss As Reported Adjusted for INDAS 116 & other items Particulars (Rs. Crores)* H1FY21 H1FY20 H1FY21 H1FY20 Revenue 140.5 208.8 130.6 208.8 Cost of Goods Sold 97.2 149.2 97.2 149.2 Gross Profit 43.3 59.6 33.4 59.6 Employee Expenses 12.9 17.4 12.9 17.4 Other Expenses 13
Slide 25: Ind AS 116: Impact on Financials
Ind AS 116: Impact on Financials • The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 88.4 Crores and lease liability of Rs. 93.3 Crores, as on 30th September, 2020 • Overall balance sheet will increase by the amount of asset created for Leases. This will have an imp
Slide 26: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. Crores)* Sep-20 Mar-20 Equity & Liabilities (Rs. Crores)* Sep-20 Mar-20 Non-current assets 131.8 142.7 Shareholder’s Fund 144.8 152.2 Fixed Assets 31.3 32.2 Share Capital 18.2 18.2 Right of Use 88.4 96.9 Other Equity 126.6 134.0 Financial Assets 7.9 9.3 Other N
Slide 27: Largest Pan India retailer of Luxury Watches
Largest Pan India retailer of Luxury Watches Stores as of Aug-20 47 ❑ Pallasio Mall, Lucknow (1,359 Sq. Ft.) Addition (2) ❑ Vegas Mall, Delhi (870 Sq. Ft.) ❑ Awadh One, Lucknow (1,629 Sq. Ft.) Closures (2) ❑ Indore (637 Sq. Ft.) Total Stores 47 We continue to rationalise the number of stores Open st
Slide 28: New Initiatives
New Initiatives Repair and Service Pre-Owned Watches Repair and services over 60 of the World’s Pre-Owned Watches has the potential to expand the volume and top Luxury watch Brands customer base Strap and Bracelet replacement Ethos has the expertise to check the authenticity and to ensure that each
Slide 29: Operational Highlights
Operational Highlights 28
Slide 30: Ethos - Performance Trend
Ethos - Performance Trend Front-end Rent & Manpower Cost as % of Revenue (Rs. Crs.)* Revenue 211.7 208.8 12.3% 12.2% 11.6% 10.5% 9.9% 157.0 153.9 130.6 H1FY17 H1FY18 H1FY19 H1FY20 H1FY21 H1FY17 H1FY18 H1FY19 H1FY20 H1FY21 EBITDA (Rs. Crs.)* EBITDA Margins* 10.6 5.0% 8.1 3.9% 0.4% 0.1 0.5 0.0% -1.4 -
Slide 31: Ethos - Online Sales Trend
Ethos - Online Sales Trend Online Billings (Rs. Crs.) Online Billing as % of Total Billing 74.6 70.8 70.4 46.2% 55.3 57.5 31.1% 32.1% 30.4% 29.4% H1FY17 H1FY18 H1FY19 H1FY20 H1FY21 H1FY17 H1FY18 H1FY19 H1FY20 H1FY21 Visitors (‘000) 7,448 7,817 6,846 6,010 4,946 H1FY17 H1FY18 H1FY19 H1FY20 H1FY21 Eth
Slide 32: Ethos - Repeat Sales Trend
Ethos - Repeat Sales Trend Club ECHO Member Base Repeat Billings (Rs. Cr.) 2,53,796 85.3 2,47,648 82.4 2,16,704 1,84,891 55.7 52.3 Mar’18 Mar’19 Mar’20 Sep’20 H1FY18 H1FY19 H1FY20 H1FY21 Since the lockdown was in force for a significant part of H1, the numbers for H1FY21 were adversely affected by t
Slide 33: Ethos is India's Largest Luxury Watch Retailer
Ethos is India’s Largest Luxury Watch Retailer
Slide 34: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network India’s Largest retail chain of Luxury Watches with 47 stores Ludhiana Chandigarh New Delhi Presence across Metros, Tier I, Tier II cities Gurugram Noida Jaipur Lucknow Guwahati 1 Duty Paid Retail Outlet at Domestic Terminal Ahmedabad Kolkata Pune Nagpur
Slide 35: Pan-India Presence with Offline Store Network
Pan-India Presence with Offline Store Network Exclusive Brands Stores Digital Strategy Right Mix • Leverage on our • To go slower on • Targeting to have a Digital platform to new stores in near right mix of Brands drive sales and • Higher share of term at all price points customers Business from • F
Slide 36: 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 Knowledgeable staff to ensure Brands will make it a ‘1 Stop with Luxury watches highest customer satisfaction Shop’ for Luxury Watc
Slide 37: With an Asset Light Model
With an Asset Light Model… Maximize Minimize Investment Optimize Costs Reach Focus on Online Expand catchment Reduce Front-End Cost Presence & area of offline store, like Manpower and Rationalize Store leading to higher Rental expenses Presence revenue Operating Leverage Playing Out Improve Return O
Slide 38: and Continued Investments in Advertising
and Continued Investments in Advertising… Print Ads in leading news media… Hindustan Times Hindustan Times Mint … with ETHOS co-branding 37
Slide 39: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : KDDL Limited CIN : L33302HP1981PLC008123 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@