Slide 1: Cover letter to stock exchanges
PDSL/SE/2022‐23/126 May 16, 2022 Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, C‐1 Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai ‐400 051 Mumbai‐ 400001 Scrip Symbol: PDSL Scrip C
Slide 2: Investor Update Quarter & Full Year Ended March 2022
Investor Update Quarter & Full Year Ended March 2022 May 2022 Strictly Private & Confidential
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by PDS Limited* (“PDS”, “the Company”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or supplied should n
Slide 4: Agenda
01 Power Of The PDS Platform 05 Giving Back To The Society 02 06 Business & Financial Key Business Updates Performance Overview 03 Gearing for a $2.5bn enterprise over the next 4-5 years 07 Stock Price Performance 04 Initiatives To Strengthen The Platform for this journey 08 Annexure – Numbers in US
Slide 5: Power of the PDS Platform
J COLLABORATIVE DIGITAL ay © ! Power of the PDS Platform
Slide 6: Power of the PDS Platform: This Quarter & Full Year Overview
Power of the PDS Platform This Quarter & Full Year Overview ₹2,775cr | 57% Y-o-Y 24% Y-o-Y -ve 3 days ₹86cr | Net working cap $370mn $11mn Q4 Topline Q4 Topline Growth Q4 PAT Q4 PAT Growth 38% | 31% ROCE & ROE ₹8,828cr | 42% Y-o-Y ₹293cr | 97% Y-o-Y -ve ₹41cr | $1,185mn $39mn -ve $5mn Net Debt FY To
Slide 7: Key takeaways for FY2021-22
Key takeaways for FY2021-22 Achieving negative working capital & negative net debt thereof Manufacturing Monetization of turnaround Real Estate Strengthening of PDS Platform & Strategic contracts Governance Framework Foray in the US PDS choosing a markets gaining strategic roadmap traction to become
Slide 8: Key Business Updates
Key Business Updates 7
Slide 9: Consciously monitoring macro developments (1/2)
Macro Factors Consciously monitoring macro developments (1/2) Increase in Input Costs & Freight ❑ While cotton prices increased ~60% between October 21 and April 22, yarn prices went up by ~33% ❑ Cotton prices for major markets are trading at multi-year Fabric Prices peaks ❑ Cotton prices saw the la
Slide 10: Consciously monitoring macro developments (2/2)
Macro Factors Consciously monitoring macro developments (2/2) Geo-political pressures in some geographies further adding to the complexities Sri Lanka Turmoil Russia Ukraine Conflict 1. Economic turmoil in Sri Lanka has resulted in high rates of inflation, shortages in commodities, and power 1. Ther
Slide 11: Focus Continues on Expanding Geographic Footprint
Geographic expansion Focus Continues on Expanding Geographic Footprint Gaining Momentum in the United States | Making inroads Australia Expanding the network to > 2 years ago: In FY22: Potential: PDS opened its doors to the new the Australian region Hanes x PDS 9% 16% >20% office in Bangladesh of to
Slide 12: Sourcing as a Service Model
Sourcing as a Service Model Long term strategic collaborations – a testament to our capabilities ✓ ✓ Geography Marquee Associations Exclusive: Bangladesh Exclusive: Territories Non-Exclusive: India | India | Sri Lanka Pakistan | Egypt Potential $400 mn | $50 mn | (per annum) ₹3,000 cr ₹375 cr Strong
Slide 13: Entered Binding Agreements with UK-based licensing co.
Licensing Business Entered Binding Agreements with UK-based licensing co. – expanding into high margin categories • Poetic Brands, PDS’s UK-based subsidiary, specializing in adults, kids, and babywear licensed apparel catering to multi-product ranges to Europe’s largest retailers • Entered into a bi
Slide 14: Manufacturing delivered profits
Manufacturing Manufacturing delivered profits Focus on achieving 5% PBT (over 2 years) by driving efficiencies Measures Put in place for driving efficiencies Improved run size mix – Long Run vs Short Run PAT (₹ cr|%) 6 4.0 % 2.8% 4 2.0 % Improved run product style mix (13) (6) 2 (5) 5 0.0 % - -2.0%
Slide 15: Ecosystem Collaborating with Venture Tech Portfolio
Venture Tech Ecosystem Collaborating with Venture Tech Portfolio 14
Slide 16: Gearing for a $2.5bn enterprise over the next 4-5 years
Gearing for a $2.5bn enterprise over the next 4-5 years 15
Slide 17: Building Blocks as PDS aspires to reach $2.5bn
Building Blocks as PDS aspires to reach $2.5bn over the next 4-5 years Focus on Growth, Sales & Profit Unfolding of Positive Contribution Efficiently Strengthening Profitability, and maximization in Strategic sourcing from New verticals managing working Digital capabilities operating Manufacturing i
Slide 18: Initiatives to Strengthen the Platform for this journey
Initiatives to Strengthen the Platform for this journey 1. Expanding and Strengthening our Sourcing Capabilities 2. Building a Tech-savvy PDS Platform 3. Partnering with global agencies for best practices 4. Integrating teams 17
Slide 19: Expanding and Strengthening our Sourcing Capabilities
Strictly Private & Confidential Expanding and Strengthening our Sourcing Capabilities Global apparel Given PDS focus on expanding into categories and consumption will Global factors driving the value chain geographies, it is imperative to also expand on touch $2.0 trillion sourcing & manufacturing f
Slide 20: Building a Tech-savvy PDS Platform
Digital Footprint Building a Tech-savvy PDS Platform Digital, a key pillar of PDS as data & analytics will drive a synchronized function across geographies and verticals EY Assessment of our digital and IT footprint SAP – Application EY Recommendation: Maintenance is 1. Standardizing our global IT b
Slide 21: Partnering with Deloitte for Best Practices
People First Partnering with for Best Practices PDS is committed to assessing and elevating the Group’s Ethics Program and Framework 01 02 03 04 05 2020 2021 / 2022 PDS Group may conduct its next review of the Code of Conduct and Policies in 2024. Appointed Deloitte Compendium of Refreshing the Comp
Slide 22: Initiatives to strengthen & integrate teams (1/2)
People First Initiatives to strengthen & integrate teams (1/2) 86% Respondents across the world 71 – Trust Index Points 77 – Overall Score Higher scores than industry average Employees strong emotional connect with the Organization Leadership Academy Case Studies Vaccination Drives & Fair Price Shop
Slide 23: Initiatives to strengthen & integrate teams (2/2)
Strictly Private & Confidential People First Initiatives to strengthen & integrate teams (2/2) 22
Slide 24: PDS Giving Back to the Society
PDS Giving Back to the Society 23
Slide 25: Our Commitment to Continue to Drive the Sustainability Agenda
ESG Our Commitment to Continue to Drive the Sustainability Agenda As well as closing the 16 pending goals / targets from 2021 / 2022. These 20 Business Units have committed to deliver on a further; 163 Sustainability goals / targets for 2022 / 2023! ❑ Last year, PDS released its first Sustainability
Slide 26: Upholding our commitment to the Environment
Upholding our commitment to the Environment Renewable Energy Solar project in Trincomalee, Sri Lanka Progress Apparels (Bangladesh) Ltd has 2102 trees planted Generates 70,000 kWh of sustainable solar energy per month inside the factory premises which is enable to produce more than offsetting the en
Slide 27: Our Priority- Safety and Welfare of Employees
Our Priority- Safety and Welfare of Employees ❑ Managed a challenging year with the COVID-19 Pandemic ▪ Regular Check-Ins with employees across the network ▪ Flexible work pattern ❑ Quick turn around on Vaccination Drives across PDS Platform ❑ Launched Fair Price Shops in Bangladesh Facilities for e
Slide 28: Business & Financial Performance Overview
Business & Financial Performance Overview Q UA R T E R A N D F U L L Y E A R E N D E D 3 1 ST M A R C H 2 0 2 2 27
Slide 29: Key Business Highlights – Q4 FY22
Key Business Highlights – Q4 FY22 Achieved a topline of $370mn (₹2,775cr) (57% growth compared to Q4 FY21) 1. Gross Margins of 15.1% (with a growth of 29%) 2. EBITDA has touched a $14mn (₹103cr); with margins of 3.7% 3. PAT increased by 24% to $11mn (₹86cr) compared to Q4 FY21 EBITDA includes the op
Slide 30: Key Financial Highlights for this Quarter
Key Financial Highlights for this Quarter $ 370mn $ 11mn ₹ 29.62 (₹2,775cr) (₹86cr) vs ₹23.16 in Q4 FY21 57% consolidated topline growth 24% increase in PAT Expansion in Basic EPS 38% 31% vs 26% in Q4 FY21 vs 21% in Q4 FY21 ROCE ROE Note: ROCE based on Net Capital Employed, EBIT includes other incom
Slide 31: Key Business Highlights – FY22
Key Business Highlights –FY22 Achieved a topline of $1,185mn (₹8,828cr) (42% growth compared to FY21) 1. Gross Margins of 16.2% (Gross Profit increased by 39% vs last year) 2. EBITDA of $43mn (₹323cr; increased 40% compared to last year) 3. PAT increased by 97% to $39mn (₹293cr) compared to FY21 EBI
Slide 32: Key Financial Highlights for FY22
Key Financial Highlights for FY22 $ 1,185mn ₹ 95.38 $ 39mn (₹8,828cr) vs FY21 Full Year EPS of ₹32.37 (₹293cr) 42% consolidated topline growth Expansion in EPS 97% increase in PAT -ve $ mn 5 -ve 3 days ₹ 23.85 -ve (₹41cr) Vs +ve 5 days in Mar’21 vs ₹15.75 in FY21 Net Debt declined by $14mn Net Worki
Slide 33: Performance over the last 5 years
Performance over the last 5 years Consistently delivered growth & profitability and have reported best FY22 performance Sales (INR Cr) Gross Profit (INR Cr) 16.2% 13.7% 8,828 1,432 6,486 6,648 6,213 1,099 4,924 948 1,028 675 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA (INR Cr) 3.7% PAT
Slide 34: Revenue Break up (FY22)
Revenue Break up (FY22)* Category wise 37% 36% 20% 5% 2% (% share) Men’s wear Women’s wear Children’s wear Essentials Others 16% Geography wise 77% 16% 4% 3% 8% (% share) FY21 FY22 Asia & Middle UK & Europe North America Others East *Broad Estimates 33
Slide 35: Investment in PDS Ventures, Real Estate & others
Investment in PDS Ventures, Real Estate & others PDS Investment Portfolio ₹289cr | $38mn % of total PDS gross capital 19% employed 7% 3% 9% Venture Tech Direct Treasury Investments (36%) Real Estate & Others (16%) Investments (48%) ₹106cr | $14mn ₹45cr | $6mn ₹138cr | $18mn Portfolio focussing on su
Slide 36: FY22 Performance Across Segments
FY22 Performance Across Segments PDS Venture Tech Sourcing Manufacturing Investments# PDS Consolidated $1,142mn | ₹8,507cr $73mn | ₹547cr $0.3mn |₹2cr $1,185mn Revenue Revenue captured in Other up 40% vs LY up 92% vs LY Income (₹8,828cr) EBIT $42mn | ₹311cr -$2mn | -₹15cr $6mn | ₹43cr $45mn (Includi
Slide 37: Consolidated Profit & Loss
Consolidated Profit & Loss ₹ in cr, unless mentioned otherwise Quarter 4 Growth Quarter 3 Full year Growth Key Highlights of performance: Particulars FY22 FY21 (Y-o-Y) FY22 FY22 FY21 (Y-o-Y) Income from Operations 2,775 1,765 57% 2,232 8,828 6,213 42% Q4 FY22 vs Q4 FY21: COGS 2,356 1,440 64% 1,861 7
Slide 38: Consolidated Balance Sheet
Consolidated Balance Sheet ₹ in cr, unless mentioned otherwise As on As on Particulars Particulars 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Non-Current Assets 787 594 Calculated basis 'annualized' P&L items Current Assets 2,611 1,752 Inventory Days 15 14 Inventories 305 197 Debtor Days 59 53 Trade Re
Slide 39: Consolidated Cash Flow
Consolidated Cash Flow ₹ in cr, unless mentioned otherwise For the Period For the Period Particulars Particulars FY2021-22 FY2020-21 FY2021-22 FY2020-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 310 170 Proceeds from borrowings (net) 127 -252 Dep
Slide 40: Proposed Dividend
Proposed Dividend 39
Slide 41: Dividend Distribution – FY22
Dividend Distribution –FY22 Dividend distribution policy implemented for PDS stakeholders with an endeavor to pay at least 25% of Profits Dividend Distribution Philosophy: The Company is committed to driving superior value creation for all its stakeholders. The focus will continue to be on sustainab
Slide 42: PDS Stock Price Performance Since Listing
PDS Stock Price Performance Since Listing 41
Slide 43: What PDS has achieved since listing?
What PDS has achieved since listing? 2,500 PDS Share Price Evolution since Listing 2,000 (PDS IRR 31% vs BSE MidCap IRR: 12%) 1,500 1,000 500 - Jan-15 Apr-15 Jan-16 Jan-17 Jan-20 Jan-21 Oct-21 Jan-22 Oct-14 Oct-15 Oct-16 Jul-17 Jan-18 Jan-19 Oct-19 Oct-17 Oct-18 Oct-20 Jul-15 Apr-16 Jul-16 Apr-17 Ap
Slide 44: PDS' Efforts have been recognized by the industry
Awards PDS’ Efforts have been recognized by the industry 43
Slide 45: Annexure
Annexure 44
Slide 46: Manufacturing delivered profits
Manufacturing Manufacturing delivered profits Focus on achieving 5% PBT (over 2 years) by driving efficiencies Measures Put in place for driving efficiencies Improved run size mix – Long Run vs Short Run PAT ($ mn|%) 1 4.0 % 2.8% 2.0 % Improved run product style mix 1 (2) (1) 0.0 % (1) 1 -2.0% - -4.
Slide 47: Consolidated Profit & Loss
Consolidated Profit & Loss US$ in mn, unless mentioned otherwise Quarter 4 Growth Quarter 3 Full year Growth Key Highlights of performance: Particulars FY22 FY21 (Y-o-Y) FY22 FY22 FY21 (Y-o-Y) Income from Operations 370 241 53% 298 1,185 837 42% Q4 FY22 vs Q4 FY21: COGS 314 197 59% 248 993 699 42% G
Slide 48: Consolidated Balance Sheet
Consolidated Balance Sheet US$ in mn, unless mentioned otherwise As on As on Particulars Particulars 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Non-Current Assets 104 81 Calculated basis 'annualized' P&L items Current Assets 345 240 Inventory Days 15 14 Inventories 40 27 Debtor Days 59 53 Trade Receiva
Slide 49: Consolidated Cash Flow
Consolidated Cash Flow US$ in mn, unless mentioned otherwise For the Period For the Period Particulars Particulars FY2021-22 FY2020-21 FY2021-22 FY2020-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 41 23 Proceeds from borrowings (net) 17 -35 Depre
Slide 50: Performance over the last 5 years
Performance over the last 5 years Consistently delivered growth & profitability and have reported best FY22 performance Sales ($mn) Gross Profit ($mn) 16.2% 13.7% 1,185 192 928 938 136 155 138 766 837 105 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 EBITDA ($mn) 3.7% PAT ($mn) 3.3% 43 31 39 0.8
Slide 51: Dividend Distribution – FY22
Dividend Distribution –FY22 Dividend distribution policy implemented for PDS stakeholders with an endeavor to pay at least 25% of Profits Dividend Distribution Philosophy: The Company is committed to driving superior value creation for all its stakeholders. The focus will continue to be on sustainab
Slide 52: Together we're building a better, more sustainable supply chain
Together we’re building a better, more sustainable supply chain Abhishekh Kanoi PDS Limited (erstwhile PDS Multinational Fashions Limited) For Further Group General Counsel & Company Secretary Unit No.971, Solitaire Corporate Park, Information, abhishekh.k@pdsmultinational.com Andheri-Ghatkopar Link