Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY2022 Earnings Presentation
41 slides from Vaibhav Global's earnings presentation, Jan 28, 2022
Slide 1: Filing cover letter to stock exchanges
VAIBHAV GLOBAL LIMITED Ref: VGL/CS/2022/12 Date: 28th January, 2022 National Stock Exchange of BSE Limited India Limited (NSE) Phiroze JeejeeBhoy Towers, Exchange Plaza, C‐1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai – 400 001 Bandra, Mumbai – 400 051 Scrip Code: 532156 Symbol: VAIBHAVGBL
Slide 2: Vaibhav Global Limited Financial Results Presentation Q3 & 9M FY22
Vaibhav Global Limited Global E-tailer of Fashion Jewellery, Apparels, Lifestyle Products and Accessories on TV and Digital Platforms DELIVERING JOY Q3 & 9M FY22 Financial Results Presentation
Slide 3: Safe Harbour
Safe Harbour This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global Limited (VGL) and its affiliated companies’ future business developments and eco
Slide 4: MD's Message
Revenue in Q3 grew by 3.5% Y-o-Y albeit on a higher base and strongly by 33.2% over Q3FY20. Our 9M revenue grew by 10.3% Y-o-Y and by 38.9% Commenting on Q3 FY22 over 9MFY20. Post Q1, consumers went for revenge outings and vacations thus impacting demand. This phenomenon continued in Q3 leading to m
Slide 5: Q3 FY22: Key Highlights
Q3 FY22 : KEY HIGHLIGHTS Revenues grew by 3.5% Y-o-Y and 33.2% over Q3 FY20 Gross margins continue to be strong at 60.4% EBITDA margins in Q3 FY22, excluding Germany, were at 13.2% vs 17.4% in Q3 last year. Margins impacted owing to conscious investments in digital marketing, OTA HH and elevated sea
Slide 6: Table of Contents
TABLE OF CONTENTS DELIVERING JOY Business Background Details 6 Highlights for the Quarter 15 Q3 & 9M FY22 Financial Performance 20 Financial Performance Trends 26 Annexures 33 5
Slide 7: Business Background Details
BUSINESS BACKGROUND DETAILS Results Presentation, January 2022 6
Slide 8: Vaibhav Global Limited (VGL) at a Glance
VAIBHAV GLOBAL LIMITED (VGL) AT A GLANCE Be the Value Leader in To deliver one million Electronic Retailing of meals per day to children in VISION Jewellery & Lifestyle MISSION need by ‘FY31’ through our one for one meal program : Products ‘Your Purchase Feeds…‘ Team-Work Honesty Commitment Passion
Slide 9: Truly Global
TRULY GLOBAL Retail Markets Shop LC | Shop TJC | Shop LC (US) (UK) (Germany) UK Germany Operate Through Marketplaces Canada | Japan US Sourcing China ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy India ▪ ▪ Tanzania Russia ▪ ▪ Turkey Poland ▪ Morocco ▪ Singapore ▪ Myanmar
Slide 10: Vertically Integrated Supply Chain
VERTICALLY INTEGRATED SUPPLY CHAIN ASIAN BASE Serving WESTERN COUNTRIES ➢ Vertically integrated supply-chain in Asia Primary Retail Markets ➢ Low-cost manufacturing and value sourcing base ➢ Serving affluent but value-conscious customers in Western Developed Markets USA UK STS China STS Bali STS Tha
Slide 11: Corporate Overview
CORPORATE OVERVIEW Shop LC (US), Vertically- > End-to-end B2C business model Shop TJC (UK) > Presence on integrated and Shop LC > TV Homes accessed (*FTE): ~ 127 mn - Proprietary TV home-shopping fashion retailer - Proprietary e-commerce platforms (Germany) are > Growing online presence on electroni
Slide 12: 4R's of Customer Engagement
4R’S OF CUSTOMER ENGAGEMENT ~127 mn 3.1 lakh (TTM) 42.3% (TTM) 29*(TTM) TV Diverse Products Linear / OTA Enduring relationships Expanding wallet share Digital Deep value proposition Convenience Browsers / Mobile Apps / Social Media / Cross-selling Market-places / OTT Engrossing Content Digitalizatio
Slide 13: Our Omni-Channel Sales Platform: Shop LC (US)
OUR OMNI-CHANNEL SALES PLATFORM Shop LC (US) Shop LC Proprietary TV channels – 72.4 mn HH Shop LC live TV stream on shoplc.com, YouTube, including 19.4mn OTA* HH* Facebook and Amazon Live TV Proprietary digital Shop LC mobile app Social retail of targeted platform available on Marketplaces products
Slide 14: Our Omni-Channel Sales Platform: Shop TJC (UK)
OUR OMNI-CHANNEL SALES PLATFORM Shop TJC (UK) Shop TJC Proprietary TV channels – 27 mn HH Shop TJC live TV stream available on tjc.co.uk, including 18 mn OTA* HH* YouTube and Facebook TV Shop TJC mobile app Social retail of targeted Proprietary digital platform available on Marketplaces products on
Slide 15: Broad Based E-tailer
BROAD BASED E-TAILER B2C Revenues by Format B2C Revenues by Product Category TV revenues Digital revenues Jewellery Non-jewellery revenues 22% 11% 36% 36% 31% 30% 78% 64% 64% 89% 69% 70% FY17 FY21 9M FY22 FY17 FY21 9M FY22 61% of digital revenues in 9M FY22 were from Mobile platform Jewellery revenu
Slide 16: Highlights for the Quarter
HIGHLIGHTS FOR THE QUARTER Results Presentation, January 2022
Slide 17: Germany: Performance Reassuring Our Investment
GERMANY: PERFORMAMCE REASSURING OUR INVESTMENT Revenue and Unique Customers Trend 6,00,000 7,000 5,00,000 6,000 4,00,000 5,000 4,000 3,00,000 3,000 2,00,000 2,000 Omni-Channel Presence 1,00,000 1,000 - - July August Sep Oct Nov Dec Net Revenue (Euro) Unique customers (nos.) ➢ Germany venture increas
Slide 18: Delivering Joy Through Innovation Platforms
‘DELIVERING JOY’ THROUGH INNOVATION PLATFORMS INNOV8 FUNNEL Ideas Received A Global product Crowdsourcing of ideas YTD 10,650+ ideas Ideas Proposed innovation and search from employees, received and 800+ new to Buyers program customers and other and innovative products external stakeholders launched
Slide 19: Key Recent Events
KEY RECENT EVENTS Freeview Channel Change & TJC Shop LC (USA) Relocating Majority stake in Packaging Company: Beauty on SKY: Headquarters to Cedar Park (Texas): ➢ Acquired 60% stake in Encase ➢ Freeview Channel now at #22 ➢ 200K sq.ft. integrated facility, to Packaging Pvt Ltd from erstwhile #50 get
Slide 20: OTT: Accelerating Marketing & Engagement Programs
OTT: ACCELERATING MARKETING & ENGAGEMENT PROGRAMS Shop LC (USA) Unique OTT Customers Most customers to have multiple connected 3,500 devices in future 3,000 2,500 Cost effectiveness and easy access making OTT 2,000 platforms to expand multifold 1,500 1,000 Traction on OTT platforms has been encourag
Slide 21: Q3 & 9M FY22 Financial Performance
Q3 & 9M FY22 FINANCIAL PERFORMANCE Results Presentation, January 2022 20
Slide 22: Financials – Q3 & 9M FY22 Performance
FINANCIALS – Q3 & 9M FY22 PERFORMANCE Revenue Breakdown – (Rs. crore) Growth vs Q3 FY20 Revenue Growth vs 9M FY20 33.2% 38.9% 10.3% 2,067 1,874 3.5% 725 750 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Fashion Jewelry, Accessories & Lifestyle Products Growth vs Q3 FY20 Growth vs 9M FY20 Growth vs Q3 FY20 Gro
Slide 23: Revenue Breakdown – Local Currency
FINANCIALS – Q3 & 9M FY22 PERFORMANCE Revenue Breakdown – (Local Currency) Shop LC (US) Shop TJC (UK) Growth vs Q3 FY20 Growth vs 9M FY20 Growth vs Q3 FY20 Growth vs 9M FY20 21.4% (USD million) 28.9% 24.7% 34.5% 7.4% (GBP million) 3.1% 185.0 172.2 60.1 62.0 6.0% 1.1% 65.7 24.3 22.9 65.0 Q3
Slide 24: Retail Performance Trends – Q3 & 9M FY22
RETAIL PERFORMANCE TRENDS – Q3 & 9M FY22 Volume and ASP TV Sales Sales Volume ('000s) 5,787 Average Selling Price US$ 5,338 36.6 32.4 29.2 27.6 2,134 1,710 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Digital Sales Sales Volume ('000s) Average Selling Price US$ 25.8 24.4 23.7 22.1
Slide 25: Financials – Q3 & 9M FY22 Performance: Profits
FINANCIALS – Q3 & 9M FY22 PERFORMANCE Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA 17.4% 11.4% 16.1% 12.4% 61.4% 60.4% 62.7% 63.0% Margin (%) Margin (%) Ex-Germany: Ex-Germany: 5.2% 10.8% 22.9% 303 15.4% 1,303 32.2% 256 1,176 1.9% 126 86 445 453 Q3 FY21 Q3 FY22 9M FY21 9M FY22 Q3
Slide 26: EBITDA Margin Walk
EBITDA MARGIN WALK Particulars % To Revenue Remarks EBITDA Q3 FY22 11.4% Gross Margin (1.0%) Product mix impact Earlier than planned tie-ups resulting in higher losses than Investment in Germany (1.8%) guidance, to breakeven within 2 years Elevated Sea Freight (0.7%) Temporary short-term impact t
Slide 27: Financial Performance Trends
FINANCIAL PERFORMANCE TRENDS Results Presentation, January 2022 26
Slide 28: Financial Performance Trends: Revenue
FINANCIAL PERFORMANCE TRENDS Revenue Breakdown – (Rs. crore) Growth vs 9M FY20 Revenue 5 Year CAGR: 14.8%* 38.9% 2,540 10.3% 1,986 1,874 2,067 1,814 1,436 1,571 FY17 FY18 FY19 FY20 FY21 9M FY21 9M FY22 Fashion Jewelry, Accessories & Lifestyle Products Growth vs Growth vs 9M 9M FY20 FY20 TV Revenue
Slide 29: Retail Performance Trends
RETAIL PERFORMANCE TRENDS Volume and ASP TV Sales Sales Volume ('000s) Average Selling Price US$ 7,837 29.9 32.4 6,275 24.9 27.0 26.4 27.7 27.6 5,877 5,737 6,070 5,787 5,338 FY17 FY18 FY19 FY20 FY21 9M FY21 9M FY22 FY17 FY18 FY19 FY20 FY21 9M FY21 9M FY22 Digital Sales Sales Volume ('000s) Average S
Slide 30: Financial Performance Trends: Profits
FINANCIAL PERFORMANCE TRENDS Profits – (Rs. crore) Gross Profit EBITDA Gross EBITDA 60.1% 59.6% 62.5% 61.6% 62.3% 62.7% 63.0% 7.1% 10.1% 12.0% 13.9% 15.3% 16.1% 12.4% Margin (%) Margin (%) Ex-Germany: 10.8% Growth: 5.2% 1,583 CAGR: 38.9% Margins:14.0%% 1,133 1,224 1,176 1,303 388 15.4% 865 936
Slide 31: Financial Performance Trends: Balance Sheet
FINANCIAL PERFORMANCE TRENDS Balance Sheet – (Rs. crore) Shareholders’ Equity Fixed assets including intangibles 419 1,123 964 697 751 434 550 163 192 126 120 117 FY17 FY18 FY19 FY20 FY21 9M FY22 FY17 FY18 FY19 FY20 FY21 9M FY22 Net Debt Net Assets * FY17 FY18 FY19 FY20 FY21 9M FY22 6 523 417 399 39
Slide 32: Financial Performance Trends: Cash Flow
FINANCIAL PERFORMANCE TRENDS Cash Flow – (Rs. Crore) Operating Cash flow Free Cash Flow 324 268 181 176 203 211 198 166 70 67 52 38 20 (155)* FY17 FY18 FY19 FY20 FY21 9M FY21 9M FY22 FY17 FY18 FY19 FY20 FY21 9M FY21 9M FY22 * Planned capex towards warehouses automation, new HQ in USA and initial set
Slide 33: Financial Performance Trends: Key Ratios
FINANCIAL PERFORMANCE TRENDS Key Ratios ROE (TTM) ROCE (TTM) 32% 61% 26% 26% 25% 23% 46% 37% 38% 16% 27% 18% FY17 FY18 FY19 FY20 FY21 9M FY22 FY17 FY18 FY19 FY20 FY21 9M FY22 * Return ratios reflects short-term impacts of conscious business investments, though they are at par with normal pre-covid y
Slide 34: Annexures
ANNEXURES Results Presentation, January 2022 33
Slide 35: Growth in Digital Commerce Markets
GROWTH IN DIGITAL COMMERCE MARKETS E-com Industry facing temporary headwinds with declining sales mix in the USA and the UK US Retail & E-com Sales UK Retail & E-Com Sales Retail Sales ($ Tn) E-com as % of Retail Sales Retail Sales (£ Bn) E-com as % of Retail Sales 5.4 5.6 5.2 439.6 436.8 5.0 423.7
Slide 36: Robust Corporate Governance
ROBUST CORPORATE GOVERNANCE RECOGNITIONS & ACCOLADES 9M FY22 Rs. 73.6cr Award at ICSI National Awards for Excellence in Corporate Governance in Jan 21 RAJASTHAN’s Best Employer Brands Award 2021 Interim dividends Dividend Payout Policy > 20-30% of consolidated free cash flow > Higher payout in speci
Slide 37: Sustainability Initiatives
SUSTAINABILITY INITIATIVES ENERGY WATER Solar 33.5 Lakh KWH 6100 KL Rainwater per annum harvested 3.23 MW generated in 2021 EV 84 2-Wheelers & 3 4- 7KL Water saved per day with the installation of wheelers for employee low LPM faucets commute 48KL Water recycled per day, IGBC Performance Challenge A
Slide 38: Community Giveback
COMMUNITY GIVEBACK > Served 61 million meals to underprivileged Covid-19 Key Initiatives children through flagship One for One Program, > Distributed 117 Oxygen Concentrators, 31 BIPAP Your Purchase Feeds… and other key medical equipment in hospitals > Local charity partners - Akshaya Pātra in India
Slide 39: VGL Shareholder Base – As on 31-December-2021
VGL SHAREHOLDER BASE – AS ON 31-DECEMBER-2021 Holding as on Shareholding Pattern Key Shareholders (Holding +1%) 31-December-21 Promoter & Promoter Group 58.08% Others 8.79% Nalanda India Fund Limited (FII) 10.25% Individual - >1% 3.07% Motilal Oswal Flexi Cap Fund (MF) 6.80% AIF 1.56% Malabar India
Slide 40: Management Team
MANAGEMENT TEAM Mr. Sunil Agrawal Mr. Vineet Ganeriwala Mr. Amit Agarwal Mr. Srikant Jha Managing Director, VGL Group CFO, VGL Group President, Shop LC (US) Managing Director, Shop TJC (UK) Mr. Jay Chandran Mr. Raj Singh Mr. Pushpendra Singh Mr. Deepak Mishra Chief Technology Officer, Vice President
Slide 41: Results Presentation, January 2022
Results Presentation, January 2022