Renaissance Global Limited · NSE:RGL
Renaissance Global — Q4 FY2019 Earnings Presentation
52 slides from Renaissance Global's earnings presentation, May 29, 2019
Slide 1: Cover letter to stock exchanges: Q4 FY19 investor presentation
Ref. No.: RGL/S&L/2019/80 May 29, 2019 Bombay Stock Exchange Limited National Stock Exchange of India Ltd. Listing Department Exchange Plaza, Plot no. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai – 400 001 Mumbai - 400 051 Sub.: Update on Co
Slide 2: Independent Auditor's Report on Standalone Financial Results
CHATURVEDI Chartered m SHAH Accountants LLP To The Board of Directors Renaissance Global Limited (Formerly known as Renaissance Jewellery Limited) Independent Auditor's Report on the Standalone Financial Results 1. We have audited the Standalone Financial Results of Renaissance Global Limited ('the
Slide 3: Independent Auditor's Report (Continued)
• Independent Auditor's Report on the Standalone Financial Re~!iATU RVE DI : SHAH LLP (Continue) Chartered Accountants Opinion 4. In our opinion and to the best of our information and according to the explanations given to us , the Statement: a. is presented in accordance with the requirements of Re
Slide 4: Audited Standalone Financial Results Q4/FY19
\ . m. RENAISSANCE GLOBAL LIMITED FORMELY RENAISSANCE JEWELLERY LIMITED REGD OFFICE: PLOT NOS. 36A & 37, SEEPZ-SEZ, ANDHERI (EAST), MUMBAI- 400 096 I CIN: L36911MH1989PLC054498 AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER / YEAR ENDED MARCH 31, 2019 (~In Lakhs Quarter ended Year Ended Sr No.
Slide 5: Audited Standalone Statement of Assets and Liabilities
g. ~ENAISSANCE GLOBAL LIMITED FORMELYRENAISSANCEJEWELLERYLIMITED • REGDOFFICE: PLOT NOS. 36A & 37, SEEPZ-SEZ,ANDHERI(EAST), MUMBAI- 400 096 I (IN: l36911MH1989PLC054498 AUDITED STANDALONE STATEMENT OF ASSETS AND LIABILITIES AS ON MARCH 31, 2019 ~ In Lakhs) Sr. No. Particulars March 31, 2019 March 31
Slide 6: Standalone Assets and Liabilities: Equity and Liabilities
1.'1 "" RENAISSANCE GLOBAL LIMITED , FORMELY RENAISSANCE JEWELLERY LIMITED " REGD OFFICE: PLOT NOS. 36A & 37, SEEPZ-SEZ, ANDHERI (EAST), MUMBAI - 400 096 I ClN: L3691lMH1989PLC054498 AUDITED STANDALONE STATEMENT OF ASSETS AND LIABILITIES AS ON MARCH 31,2019 (~In lakhs) Sr. No. Particulars March 31,
Slide 7: Notes to Standalone Results
RENAISSANCE GLOBAL LIMITED , FORMElY RENAISSANCEJEWELlERYLIMITED REGDOFFICE: PLOTNOS.36A & 37, SEEPZ-SEZ,ANDHERI (EAST),MUMBAI- 400 096 I CIN: L36911MH1989PlCOS4498 NOTES: 1 The above Audited Financial Results were reviewed by the Audit Committee and approved by the Board of Directors at their respe
Slide 8: Independent Auditor's Report on Consolidated Financial Results
CHATURVEDI : SHAH LLP Chartered Accountants To The Board of Directors Renaissance Global Limited (Formerly known as Renaissance Jewellery Limited) Independent Auditor's Report on the Statement of Consolidated Financial Results I. We have audited the accompanying Consolidated Financial Results of Ren
Slide 9: Independent Auditor's Report on Consolidated Results (Continued)
• Independent Auditor's Report on the Statement ofConsolidatC:kIA1JJ~Y.tDI (Continued) Chartered Accountants m SHAH LLP Opinion 4. In our opinion and to the best of our information and according to the explanations given to us and based on the consideration of the reports of the other auditors refer
Slide 10: Independent Auditor's Report on Consolidated Results (Continued)
Independent Auditor's Report on the Statement (Continued) ofConsolidatC;~lU~¥~PI m SHAH LLP Chartered Accountants Other Matter • 5. We did not audit the financial results of nine subsidiaries considered in the preparation of the Statement (including one subsidiaries classified as discontinued operat
Slide 11: Audited Consolidated Financial Results Q4/FY19
\ I_ . . RENAISSANCE GLOBAL LIMITED , FORMEL Y RENAISSANCE JEWELLERY LIMITED . REGD OFFICE: PLOT NOS. 36A & 37, SEEPZ-SEZ,ANDHERI (EAST), MUMBAI- 400 096 I ClN: L36911MH1989PLC054498 AUDITED CONSOLIDATED FINANCIAL RESULTSFOR THE QUARTER / YEAR ENDED MARCH 31,2019 (~In Lakhs) Quarter ended Year ended
Slide 12: Audited Consolidated Financial Results (Continued)
----------------------------------------------------------------------~. m.·~ .. RENAISSANCE GLOBAL LIMITED . FORMELY RENAISSANCE JEWELLERY LIMITED .• REGD OFFICE: PLOT NOS. 36A & 37, SEEPZ-SEZ,ANDHERI (EAST), MUMBAI - 400 096 I ClN: L36911MH1989PLC054498 AUDITED CONSOLIDATED FINANCIAL RESULTS FOR T
Slide 13: Audited Consolidated Statement of Assets and Liabilities
g~ RENAISSANCE GLOBAL LIMITED FORMELY RENAISSANCE JEWELLERY LIMITED ftr REGD OFFICE: PLOT NOS. 36A & 37, SEEPZ-SEZ,ANDHERI (EAST), MUMBAI - 400 096 I ClN: L36911MH1989PLCOS4498 AUDITED CONSOLIDATED STATEMENT OF ASSETSAND LIABILITIES AS ON MARCH 31, 2019 If In Lakhs) Sr. No. Particulars March 31, 201
Slide 14: Consolidated Statement: Equity and Liabilities
g. RENAISSANCE GLOBAL LIMITED . FORMELY RENAISSANCE JEWELLERY LIMITED _ _ REGD OFFICE: PLOT NOS. 36A & 37, SEEPZ-SEZ,ANDHERI (EAST), MUMBAI - 400 096 I CIN: L36911MH1989PLC054498 AUDITED STANDALONE STATEMENT OF ASSETS AND LIABILITIES AS ON MARCH 31, 2019 (~In Lakhs) Sr. No. Particulars March 31, 201
Slide 15: Notes to Consolidated Results
I_ _ _ RENAISSANCE GLOBAL LIMITED . FORMELY RENAISSANCE JEWELLERY LIMITED REGD OFFICE: PLOT NOS. 36A & 37, SEEPZ-SEZ,ANDHERI (EAST), MUMBAI - 400 096 I CIN: L36911MH1989PLC054498 NOTES: 1 The above Audited Consolidated Financial Results were reviewed by the Audit Committee and approved by the Board
Slide 16: Press Release: Highest Annual Turnover Since Inception
RENAISSANCE GLOBAL LTD. (FORMERLY RENAISSANCE JEWELLERY LTD.) CIN.: L3691 fMH1989PLC054498 REGD. OFFICE / UNIT r : PLOT NO. 36A & 37, SEEPZ, ANDHERJ (E), MUMBAI 400096. TEL. : 022-4055 f 200 1 FAX: 022-2829 2146 I WEB: www.renaissanceglobal.com Highest Annual Turnover Since Inception EBITDAand PAT g
Slide 17: Q4 and FY19 Business Highlights
RENAISSANCE GLOBAL LTD. (FORMERLY RENAISSANCE JEWELLERY LTD.) CIN.: L36911MH1989PLC054498 REGD. OFFICE / UNIT r : PLOT NO. 36A & 37, SEEPZ, ANDHERI {E), MUMBAI 400096. TEL. : 022-4055 1200 I FAX: 022-2829 2146 I WEB: www.renaissanceglobal.com Q4 and FY19 Business Highlights • Revenue share of studde
Slide 18: Renaissance Global Limited
RENAISSANCE GLOBAL LIMITED INVESTOR PRESENTATION MAY 2019 1
Slide 19: Discussion Summary
Discussion Summary 1 Company Overview 2 Business Strategy & Outlook 3 Q4 & FY19 Results 4 Annexure 2
Slide 20: Overview
RENAISSANCE GLOBAL LIMITED OVERVIEW A global luxury company growing through : Valued partnerships with leading retail brands in the world’s top markets Proven history of successful synergistic acquisitions Robust and disciplined balance sheet to fuel future growth 3
Slide 21: Largest Supplier of Branded Jewellery To Leading Global Retailers
Largest Supplier of Branded Jewellery To Leading Global Retailers India’s Largest Exporter of Gem-Set Strong Design Capabilities Jewellery • GJPEC Award for “Largest Exporter of • ~95% of sales based on in-house designs Studded Metal Jewellery” for 7th time in 2017 • ~12,000 new designs developed in
Slide 22: Established Partner to Global Jewellery Retailers
Established Partner to Global Jewellery Retailers • 151 member design team based in US, UK, Hong Kong, Dubai & Mumbai Strong Design • Design bank of over 200,000 styles built over two decades Team With • Over 12,000 new designs launched every year based on international trends Expertise on • Partner
Slide 23: State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce
State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce Manufacturing Facilities in Maharashtra & Gujarat • Robust manufacturing setup in 166,000 sq. ft. across 8 manufacturing facilities with 2,916 skilled employees • Global standard manufacturing technologies including Casting, CNC
Slide 24: Global Marketing Presence To Serve Key Jewellery Markets
Global Marketing Presence To Serve Key Jewellery Markets Western Europe DUBAI Verigold Jewellery Acquired in 2016 (UK) Ltd (Founded in 2009) USA • Renaissance Jewellery NY Inc (Founded in 2007) • Jay Gems INC (Acquired in 2018) MIDDLE EAST INDIA Verigold Jewellery SEEPZ (Mumbai) DMCC Started in 2000
Slide 25: Preferred Partner to Marquee Global Retailers Across The World
Preferred Partner to Marquee Global Retailers Across The World 50+ Customers 10+ Year Relationships with Minimal Credit Risk Due Across USA, UK & Diversified Customer Base to Stable Clientele & Top 10 Customers Middle East Disciplined Credit Terms E-Commerce/ Television Specialty Jewellers Multi-Bra
Slide 26: Business Strategy & Outlook
RENAISSANCE GLOBAL LIMITED BUSINESS STRATEGY & OUTLOOK 9
Slide 27: Business Strategy & Outlook
Business Strategy & Outlook Increasing Sales Of • Grow branded jewellery sales through Disney and Hallmark licensing agreements, leading to increased customer Licensed Brands In wallet share and market penetration Existing Markets • Develop new products under Disney license – Mickey, Minnie and Star
Slide 28: Organic & Inorganic Growth
Organic & Inorganic Growth Vogue DMCC • Renaissance Jewellery DMCC acquired Vogue DMCC in 2016. • Vogue DMCC specialises in manufacturing and wholesaling of plain gold jewellery in the Middle East. • Renaissance leveraged the Vogue DMCC distribution network to expand sales of Renaissance products in
Slide 29: Entry into Branded Jewellery Through Acquisition of Jay Gems
Entry into Branded Jewellery Through Acquisition of Jay Gems • Branded jewellery is the fastest growing segment of the jewellery business. • This growth is predicated due to De Beers reducing marketing spends on Generic diamond jewellery • Renaissance acquired Jay Gems INC in FY 2018-19. Jay Gems ha
Slide 30: Global Expansion of Branded Jewellery Products
Global Expansion of Branded Jewellery Products • To capitalise on the international appeal of the Disney brand, Renaissance has acquired exclusive licenses for the Middle East, China, India, South Africa, the Philippines, Malaysia and Singapore. • Due to the success of the ‘Enchanted Disney Fine Jew
Slide 31: Current Brand Portfolio and Benefits of the Branded Play
Current Brand Portfolio and Benefits of the Branded Play Benefits of Branded Jewellery Sales Licensing Agreement with Disney Licensing Agreement with Hallmark Superior product positioning and deeper customer relationships Increased competitiveness through design exclusivity Higher value addition and
Slide 32: The Two Brands: Reach & Opportunities
The Two Brands : Reach & Opportunities Enchanted Disney Fine Jewelry Hallmark Diamonds • Introduces one of the world’s best loved brands to the fine jewellery • Hallmark has a global presence in more than 100 countries market • Top 2% of Brands (2017 Equitrend/Harris Interactive) • Successful distri
Slide 33: Strategic Investment in Joint Venture with Bennett, Coleman
• Verigold Jewellery DMCC will make a strategic investment of Rs. 200 Mn in a joint venture with Bennett, Coleman and Company Limited. • A joint venture to launch a retail jewellery brand in India • Renaissance Global upon conversion of the Debenture will own 51% of the joint venture • Bennett, Cole
Slide 34: Irasva jewellery brand
• Irasva's gold and diamond jewellery celebrates the modern woman’s love for self and love of expression • ‘Irasva’ is a combination of “ira” meaning enjoyment and “sva” meaning self in Hindi. • The Irasva brand invites women to indulge in self love. • Irasva jewellery inspires every woman to create
Slide 35: Geographical Diversification Through Entry Into New Markets
Geographical Diversification Through Entry Into New Markets Robust Sales Growth & Geographical Diversification Achieved Over FY16 to FY19 Driven by Entry in GCC Market 25,718 8% 25% 18% 21% 30% 25% 35% 18,110 8% 14,734 38% 13,193 62% 57% 57% 41% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 North America
Slide 36: Financial Strength Driving Business Growth (Consolidated)
Financial Strength Driving Business Growth (Consolidated) Leverage (Rs Mn) Working Capital Analysis 0.92 154 145 0.54 0.51 0.51 137 0.41 129 6,648 118 5,109 5,578 139 141 3,991 4,615 135 115 144 6,147 2,175 1,882 2,629 2,857 69 69 59 57 53 -63 -73 -65 -54 -43 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17
Slide 37: Limited Exposure to Currency & Commodity Fluctuations
Limited Exposure to Currency & Commodity Fluctuations Business Offers Significant Natural Hedge Leading to Limited Exposure to Currency & Commodity Risk The Company’s functional Currency is USD since majority of the Healthy EBITDA Growth & Stable EBITDA Margin over Last 5 Years business transactions
Slide 38: Q4 & FY19 Results
RENAISSANCE GLOBAL LIMITED Q4 & FY19 RESULTS 21
Slide 39: Q4 & FY19: Key Highlights
Q4 & FY19: Key Highlights Q4 FY19 YoY Analysis In Rs Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 7072 3.2% 2.7% 1.8% 1.8% 191 129 4,505 146 83 57% 30% 54% Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 FY19 YoY Analysis Total Income EBITDA & EBITDA Margin PAT & PAT Margin 5.5% 5.2% 3.5%
Slide 40: Q4 & FY19: Segment Analysis
Q4 & FY19: Segment Analysis Q4 FY19 YoY Analysis Studded & Plain Gold Jewellery Geographical Mix Q4 FY18 Q4 FY19 Q4 FY18 Q4 FY19 22% 25% 5% 22% 47% 34% 61% 78% 75% 31% Studded Jewellery Plain Gold Jewellery N. America Middle East Others FY19 YoY Analysis FY18 FY19 FY18 FY19 8% 27% 26% 21% 41% 35% 57
Slide 41: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs Mn) Q4 FY19 Q4 FY18 YoY % FY19* FY18* YoY % Revenue From Operations 6,965.6 4,486.2 55.3% 25,717.5 18,109.6 42.0% Other Income 105.9 18.4 115.7 373.9 -69.1% Total Income 7,071.5 4,504.6 57.0% 25,833.2 18,147.0 42.3% COGS 5,877.6 3,892.1 51.0% 2
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In Rs Mn) Mar-19 Mar-18 Particulars (In Rs Mn) Mar-19 Mar-18 Shareholder's Funds Non-Current Assets Equity Share Capital 186.8 186.8 Fixed Assets – Tangible & Intangible 821.1 490.0 Reserves & Surplus 6,460.1 5,304.1 CWIP & Intangibles under development 1.1 29
Slide 43: Annexure
RENAISSANCE GLOBAL LIMITED ANNEXURE 26
Slide 44: Key Milestones
Key Milestones • Licensing agreement with Hallmark • Set up Renaissance Jewelry NY Inc • Acquired the assets of VOGUE DMCC • Set up Verigold Jewellery UK • Acquired Jay Gems Inc • Renaissance Jewellery Ltd went public with • EBITDA crosses Rs 1,000 Mn Rs 800 Mn IPO 2006-10 2016-18 • Acquired Mayur G
Slide 45: Experienced Management Team
Experienced Management Team Niranjan Shah, Chairman • Associated with the company since inception • Over 4 decades of experience in the gems & jewellery industry • Responsible for the overall strategic planning and decision making Sumit Shah, Vice Chairman Hitesh Shah, Managing Director • 22 years o
Slide 46: Experienced Independent Directors: Strong Corporate Governance
Experienced Independent Directors: Strong Corporate Governance Veer Kumar Shah, Independent Director (ICAI, 1969; ) • Practicing Chartered Accountant with more than 4 decades of experience • Expert in Accounting, Auditing , Taxation, Company Law matters, Arbitration matters and management consultanc
Slide 47: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs Mn) FY19** FY18** FY17* FY16 FY15 Revenue From Operations 25,717.5 18,109.6 14,734.5 13,195.8 12,764.4 Other Income 115.7 373.9 179.7 41.9 181.9 Total Income 25,833.2 18,147.0 14,914.2 13,237.7 12,946.3 COGS 21,150.1 15,105.5 11,577.4 9,959.1 9
Slide 48: Financial Summary
Financial Summary In Rs Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 25,833 5.8% 6.3% 5.9% 5.5% 5.2% 3.6% 3.5% 3.1% 3.3% 3.3% 18,147 1,342 14,914 1,005 841 12,946 13,238 883 752 828 638 474 495 405 ** FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17* FY18 ** FY19 Leverage
Slide 49: Operational Summary
Operational Summary Geographical Mix Studded Jewellery vs. Plain Gold Jewellery 100% 15% 27% 26% 8% 18% 21% 50% 100% 100% 30% 30% 85% 73% 74% 35% 1% 25% 0% 8% FY15 FY16 FY17 FY18 FY19 38% Studded Jewellery Plain Gold Jewellery Seasonality 69% 62% 20% 24% 27% 25% 27% 57% 57% 41% 34% 42% 35% 34% 32% 2
Slide 50: Awards
Awards 2001 2008 2012 SEEPZ-SEZ Star GJEPC Award for GJEPC Award for Award largest exporter of largest exporter of studded metal studded metal jewellery jewellery 2005 2009 2015 WM Int’l Supplier of Emerging India GJEPC Award for the Year Award largest exporter of studded metal jewellery 2006 2011 2
Slide 51: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Jewellery Limited (“Renaissance” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operation
Slide 52: Thank You
RENAISSANCE GLOBAL LIMITED THANK YOU For any investor queries, reach out to RENAISSANCE GLOBAL LTD. RENAISSANCE GLOBAL LTD. DICKENSON SEAGULL IR Abhijit S. Karandikar G. M. Walavalkar Aakash Mehta Manager – Investor Relations Compliance Officer Email: Aakash.Mehta@dickensonir.com Mob: 098706 79263 I