Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2023 Earnings Presentation
48 slides from Vaibhav Global's earnings presentation, May 17, 2023
Slide 1: Filing cover letter to stock exchanges
VAIBHAV GLOBAL LIMITED Ref: VGL/CS/2023/46 Date: 17th May, 2023 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 Subj
Slide 2: Vaibhav Global Limited Results Presentation: Q4 & FY23
Vaibhav Global Limited Global Retailer on TV and Digital Platforms of Fashion Jewellery, Lifestyle Products and Accessories Results Presentation: Q4 & FY23
Slide 3: Disclaimer
Disclaimer Delivering Joy 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 develop
Slide 4: MD's Message
Sales for the quarter were Rs. 693 crores, an increase of 1.1% from Rs. 685 crores in the fourth quarter of last year. However, our topline had a stronger growth of 39.2% over last pre-COVID period of Q4 FY20, which is CAGR of 11.7% during this period. The topline performance was in line with our gu
Slide 5: Q4 FY23 Highlights
Q4 FY23 Highlights Delivering Joy Stable performance amidst weaker demand scenario. Q4 revenue up by 1.1% YoY & 39.2% vs pre-COVID Q4 FY20 Gross margins at 61% reflecting strength of vertically integrated business model EBITDA margin at 8.0% vs 6.9% in Q4 FY22. YoY improvement on account of cost reb
Slide 6: Table of Contents
Table of Contents Delivering Joy 1 Company Overview 6 2 Business Overview 12 Q4 & FY23 Operational & Financial 3 Highlights 24 4 Financial Performance Trends 35 5 Annexures 41 5
Slide 7: Company Overview
Company Overview a
Slide 8: Guiding Pillars That Defines VGL
Guiding Pillars That Defines VGL Delivering Joy OUR VISION OUR MISSION Be the Value Leader in Electronic To deliver one million meals per day to Retailing of Jewellery & Lifestyle children in need by ‘FY31’ through our one Products for one meal program- ‘Your Purchase Feeds….’ CORE VALUES Team-Work
Slide 9: About Us
About Us Delivering Joy Vertically-integrated Digital Retailer of fashion Strong Customer Visibility jewellery & lifestyle products ▪ TV Homes accessed (*FTE): ~ 141 mn ▪ End-to-end B2C business model households ▪ Presence through proprietary TV channels and ▪ Growing online presence digital platfor
Slide 10: An Evolving Journey
An Evolving Journey Delivering Joy Started Gemstones Started Jewellery Listing on stock business manufacturing for B2B exchange 1980 1996 1997 Shifted strategy towards 'value conscious offering' 2008 06 -07 Started own TV channels in UK, Germany and US Ventured into Re-entered 'Lifestyle Products' G
Slide 11: Strong & Experienced Management
Strong & Experienced Management Delivering Joy Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Mr. Srikant Jha Mr. Deepak Mishra Managing Director, VGL Group Group CFO, VGL Group President, Shop LC (US) Managing Director, Managing Director, Shop TJC (UK) Shop LC (Germany) Mr. Ankur Sogani M
Slide 12: Key Strategic Enablers
Key Strategic Enablers Delivering Joy Omni-Channel Presence (Proprietary TV, Website, Apps, OTT, Marketplaces & Social Media) Vertically Integrated Supply Chain An Efficient Interplay of Wider Product Bouquet In-House Brand Strength & Innovation 11
Slide 13: Business Overview
Business Overview _
Slide 14: A Global Retailer on TV and Digital Platforms
A Global Retailer on TV and Digital Platforms Delivering Joy PROPRIETARY ‘TV CHANNELS’ ‘DIGITAL’ PLATFORMS Proprietary Digital Platform Mobile Applications www.shoplc.com www.tjc.co.uk www.shoplc.de Third Party Marketplaces Social Retail Google Marketplace Reaching TV homes through OTT Platforms Cab
Slide 15: E-tailing in High Potential Markets (USD 20bn)
E-tailing in High Potential Markets (USD 20bn) Delivering Joy US UK GERMANY Opportunity size $14- $15 bn $2-$2.5 bn ~$2.7 bn ➢ Target customers: Baby Boomers (65+ years) & Gen X (45+ years) ➢ Value-buying proposition of $25-$45 ➢ Widest product range comprising ~25,000 SKUs * Statista, Marketresearc
Slide 16: Constantly Reimagining Growth Through New Designs & Products
Constantly Reimagining Growth Delivering Through New Designs & Products Joy Fashion Jewellery & Gemstones Some of the best selling products ▪ ~14K-15K new jewellery designs launched annually ▪ In-house testing lab and manufacturing Hanabi Cut Ring Rhapsody Tanzanite Ring Life-Style Products ▪ A rich
Slide 17: Vertically Integrated Supply Chain
Vertically Integrated Supply Chain Delivering Joy Manufacturing in Asian countries Serving Selling in western countries Primary Retail Markets USA ($) UK ( ) Germany (€) India & China Resulting in industry leading gross margin of 60%+ 16
Slide 18: Complemented by a Robust Sourcing Base
Complemented by a Robust Sourcing Base Delivering Joy (US) (UK) (Germany ) Sourcing Countries ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany ▪ Indonesia ▪ Italy ▪ Tanzania ▪ Turkey ▪ Russia ▪ Poland ▪ Morocco ▪ Singapore ▪ Myanmar ▪ UAE ▪ Madagascar ▪ Japan ▪ Bolivia ▪ Bangladesh ▪ Kenya ▪ P
Slide 19: Strengthening Own Brand Portfolio
Strengthening Own Brand Portfolio Delivering Joy USA UK Germany ▪ Leveraging manufacturing & digital capabilities ▪ Number of brands: 31 ▪ Current revenue mix: ~30% of B2C revenue ▪ Target revenue mix: ~50% by FY27 of B2C revenue ▪ New brand additions based on brand matrix (price laddering and offer
Slide 20: 'Innovation' Focused
‘Innovation’ Focused Delivering Joy 30,000+ 4,000+ 1,800+ Ideas Generated Ideas Approved Products sold 12,900+ 2,600+ Ideas Proposed to Orders Placed Buyers Innovation Segment: Global Search Program Crowdsourcing of Ideas Product Launched FY23 Revenue: $21mn A Global product From employees, 30,000+
Slide 21: Resulting In
Delivering Joy RESULTING IN 20
Slide 22: Top decile shareholders' returns
Top decile shareholders’ returns Delivering Joy Growing Consistently Parameters CAGR Return FY 98 FY 23 (Rs. in crores) (25 years) (x times) Revenue 43.6 2,690.9 17.9% 62 EBITDA 6.2 227.3 15.5% 37 Profit Before Tax 5.4 141.4 13.9% 26 Profit After Tax 5.3 105.1 12.7% 20 Net Worth 21.8 1,201.3 17.4% 5
Slide 23: With Consistent Business Delivery
With Consistent Business Delivery Delivering Joy Consistent, Focused and Strong Execution Global Households Reach Repeat Purchases (in million) (no. of pieces) Retention (20+ Purchases) 141 124 89% 89% 89% 87% 99 104 30 27 27 23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 Reach Repea
Slide 24: Broad Based E-tailer
Broad Based E-tailer Delivering Joy B2C Revenues by Format B2C Revenues by Product Category TV revenues Digital revenues Jewellery Non-jewellery revenues 22% 37% 37% 11% 30% 27% 78% 89% 73% 63% 63% 70% FY17 FY22 FY23 FY17 FY22 FY23 Jewellery revenues: Fashion Jewellery, Gemstones and Accessories Non
Slide 25: Q4 & FY23 Operational & Financial Highlights
Q4 & FY23 Operational & Financial Highlights
Slide 26: Being Resilient Amid Challenges
Being Resilient Amid Challenges Delivering Joy ▪ Modest revenue growth during Revenue and EBITDA trend ➢ Inflationary environment 11.4% 10.5% 8.1% 7.0% ➢ Muted consumer sentiments 6.9% 8.0% 3.5% 2.9% 1.8% 1.1% ▪ YoY improved EBITDA margin owing to Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 -3.6
Slide 27: An update on Germany
An update on Germany Delivering Joy Germany venture increase in TAM (immediate addressable market) by ~20% ▪ Now clocking monthly revenue of Euro 1.4mn+ at 60%+ gross margins ▪ Omni-channel presence (digital is now 29%) ▪ Covering 40mn HH, dispatching 3.5k+ pieces/day ▪ Started ‘Live & Interactive T
Slide 28: Germany: Strategic Partnership with Vodafone
Germany: Strategic Partnership with Vodafone Delivering Joy • Vodafone have one of the largest cable TV Partnership with Vodafone leading to network in Germany • Achieved pan-Germany presence within 1.5 years of entering market • To aid market leading Presence in 60% Now present in ~90% growth House
Slide 29: OTT & OTA – Widening Digital Platform
OTT & OTA – Widening Digital Platform Delivering Joy In US, OTT and OTA are projected to be the fastest growing video distribution medium OTT OTA Projected US residential video households 2020-2026 (million) Live & Interactive 80.0 Total HH in US: 22mn Apps 60.0 46.8 40.0 Shop LC 25.7 17mn HH 20.0 -
Slide 30: Financial Highlights – Q4 & FY23 Revenue breakup
Financial Highlights – Q4 & FY23 Revenue breakup Delivering Joy Revenue (Rs. Crore) 39.2% 35.5% Total Revenue 2.2% vs normalized pre-COVID Q4 and FY20 2,752 2,691 performance 1.1% 685 693 Q4 FY22 Q4 FY23 FY22 FY23 Revenue split (Rs. Crore) 25.4% 27.1% 54.4% 51.3% B2B Revenue TV Revenue Digi
Slide 31: Financial Highlights – Q4 & FY23 Revenue breakup
Financial Highlights – Q4 & FY23 Revenue breakup Delivering Joy Revenue Split – (Local Currency) Shop LC (US) Shop TJC (UK) 10.5% 19.2% 21.7% 14.3% (USD million) (GBP million) 10.8% 80.6 8.0% 246.2 74.1 219.7 12.1% 4.6% 61.2 53.8 18.6 17.8 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23
Slide 32: Retail Performance Trends – Q4 & FY23
Retail Performance Trends – Q4 & FY23 Delivering Joy TV Sales Sales Volume ('000s) Average Selling Price US$ 6,998 44.6 5,331 38.0 33.4 32.6 1,659 1,098 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 Digital Sales Sales Volume ('000s) Average Selling Price US$ 5,477 4,428 31.1 27.4 23.6 24.2 1,
Slide 33: Financials – Q4 & FY23 Performance
Financials – Q4 & FY23 Performance Delivering Joy Gross Profit (Rs. Cr) and Margin (%) EBITDA (Rs. Cr) and Margin( %) 4.1% 2,000 1,714 1,644 63% 400 25% 15% 11.0% 1,500 2.7% 62% 300 62.3% 227 10% 61% 6.9% 8.0% 1,000 60.0% 61.0% 61.1% 200 60% 17.6% 303 8.4% 411 422 5% 500 59% 100 47 55 0 58% 0
Slide 34: EBITDA Margin Walk
EBITDA Margin Walk Delivering Joy % To Particulars Revenue Remarks EBITDA Q4 FY23 6.9% Gross Margin 0.9% Better pricing Germany (0.3)% Attributable to Forex, at par in constant currency Cost Rebase: efficiency & logistics 3.7% Accelerated Investment in Broadcasting & (1.3%) Conscious investm
Slide 35: Cost Optimization
Cost Optimization Delivering Joy Planned Savings (FY23) Cost Arbitrage: Call Centre ▪ Presently ~50-60% US & UK volumes catered by India ▪ Focus to further increase India’s share $ 1-2 mn Shipping & Warehousing ▪ Shipping: Renegotiating and evaluating new vendors ▪ Labour productivity $ 2-3 mn ▪ GEE
Slide 36: Financial Performance Trends
Financial Performance Trends
Slide 37: Financial Performance Trends
Financial Performance Trends Delivering Joy Revenue Breakdown – (Rs. crore) 5 Year CAGR: 11.4% 2,540 2,752 2,691 1,814 1,986 1,571 FY18 FY19 FY20 FY21 FY22 FY23 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 Year CAGR: 10.4% 5 Year CAGR: 21.2% Digital Revenue B2B Revenue TV Revenue
Slide 38: Retail Performance Trends
Retail Performance Trends Delivering Joy TV Sales Sales Volume ('000s) Average Selling Price US$ 38.0 7,837 29.9 32.6 6,998 27.0 26.5 27.7 5737 6,275 6,070 5,331 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Digital Sales Sales Volume ('000s) Average Selling Price US$ 27.4 5,409 5,477
Slide 39: Financials – Annual Financial Performance
Financials – Annual Financial Performance Delivering Joy Gross Profit (Rs. Cr) EBITDA and EBITDA Margin % 2,000 62.5% 62.3% 63% 500 20% 62.3% 15.3% 61.6% 62% 400 13.9% 1,500 61.1% 15% 12.0% 61% 300 10.1% 11.0% 1,000 8.4% 10% 59.6% 60% 200 500 5% 59% 100 936 1,133 1,224 1,583 1,714 1,644 159 217 276
Slide 40: Financials – Annual Financial Performance
Financials – Annual Financial Performance Delivering Joy Shareholders’ Equity (Rs. Cr) Fixed assets including intangibles (Rs. Cr) 1,201 511 1,127 494 964 697 751 550 163 192 120 117 FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 Net Debt (Rs. Cr) Net Assets* (Rs. Cr) FY18 FY19 FY20 FY2
Slide 41: Financials Performance Trends & Ratios
Financials Performance Trends & Ratios Delivering Joy Operating Cash flow (Rs. Cr) Free Cash Flow (Rs. Cr) 324 268 211 181 176 203 126 90 86 38 20 (214) FY18 FY19 FY20 FY21 FY22 FY23 FY18 FY19 FY20 FY21 FY22 FY23 ROE (TTM) ROCE (TTM) 32% 61% 25% 26% 23% 23% 46% 37% 31% 27% 9% 14% FY18 FY19 FY20 FY21
Slide 42: Annexures
NY Annexures _
Slide 43: Growth In Digital Commerce Markets
Growth In Digital Commerce Markets Delivering Joy Digital Industry facing temporary headwinds in the US and the UK ▪ Muted consumer sentiments UK US amidst economic uncertainties 14% 14.6% 14.5% 30.9% 27.8% 26.5% ▪ Cost of living crisis in UK 9.90% 11% 17.9% 19.1% ▪ Resultant industry wide YoY decli
Slide 44: Robust Corporate Governance
Robust Corporate Governance Delivering Joy Awards & Accolades FY23 ~Rs. 99 crores Dividends ICSI National Award for Excellence in Corporate Governance LEED’s PLATINUM & GOLD Certification (incl. interim & final dividend proposed in Q4 FY23) Dividend Payout Policy ‘Net Zero Energy Building’ certified
Slide 45: Sustainability Initiatives
Sustainability Initiatives Delivering Joy ENERGY BIODIVERSITY WATER WASTE Conversion of bio- Solar power capacity meets Saplings planted 6100 KL Rainwater harvested 100% degradable waste Solar 100% power requirement at ~26,000 for developing 2 per annum (vegetables, food, leaves) 3.23 mw manufacturi
Slide 46: Growth With Responsibility
Growth With Responsibility Delivering Joy ▪ Till date Served 75 million meals to underprivileged children through flagship One for One Program, ’Your Purchase Feeds…’ ▪ Local charity partners ✓ Akshaya Patra in India ✓ No Kid Hungry and Backpack Friends in US ✓ Magic Breakfast & Felix Project in UK
Slide 47: Shareholding Pattern: As on 31st March 2023
Shareholding Pattern: As on 31st March 2023 Delivering Joy Holding as on Shareholding Pattern Key Shareholders 31-Mar-23 Nalanda India Fund Limited 10.18% Others 11.58% Motilal Oswal Flexi Cap Fund 5.50% Individual - >1% 3.16% Malabar India Fund Limited 5.39% AIF 0.84% Vanguard 1.58% Domestic Instit
Slide 48: Thank You
Thank You Company : Investor Relations Advisors : Vaibhav Global Limited Adfactorspr Pvt. Ltd. Nitin Panwad, Group CFO Amit Sharma nitin.panwad@vglgroup.com amit.sharma@adfactorspr.co m Prashant Saraswat Head-Investor Relations Disha Shah prashant.saraswat@vglgroup.com disha.shah@adfactorspr.com www