Page Industries Limited · NSE:PAGEIND
Page Industries — Q3 FY20 Earnings Presentation
35 slides from Page Industries's earnings presentation, Feb 13, 2020
Slide 1: Cover letter to stock exchanges
6~ JOCKEY 13 th February 2020 The Secretary The Secretary Corporate Relationship Dept. National Stock Exchange of India The Bombay Stock Exchange Limited 1st Floor, New Trading Ring Exchange Plaza Rotunda Building Bandra Kurla Complex Phiroze Jeejeebhoy Towers Mumbai - 400 051 Dalal Street, Mumbai -
Slide 2: Press release: 9M and Q3 FY20 results
For Immediate Release 9M FY20 Revenue at Rs. 24,042 million, up 7.1% YoY 9M Profit After Tax at Rs. 3,122 million, 13% of Revenues Q3 FY20 Revenue at Rs. 7,938 million, up 7.5% YoY Q3 Profit After Tax at Rs. 870 million, 11% of Revenues _______________________________________________________________
Slide 3: About Page Industries and disclaimer
Automation and Digital Transformation are key to our success and we have been scaling up our investments in these areas. We continue to make investments and spend in sales and marketing, particularly at the point‐of‐sale such as display fixtures. We will continue our aggressive expansion plans of ne
Slide 4: Performance Highlights Q3 FY20
PERFORMANCE HIGHLIGHTS Q3 FY20
Slide 5: Contents: Company Overview
CONTENTS • Company Overview • Attractive Macro Opportunity • Multiple Products Offering • Unmatched Market Coverage Company Overview • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 2
Slide 6: Page Industries: At a Glance
PAGE INDUSTRIES: AT A GLANCE Leading player in Highly Experienced Production Capacity PAN India Presence Strong Financial Premium Innerwear Professional 260 mn pieces across 63,000+ Retail Network Performance and Athleisure Management supported by 17 manufacturing units market 720+ EBO’s Healthy ROC
Slide 7: Our Journey
OUR JOURNEY 2017 2006 Jockey Socks launched 2015 • First Jockey EBO • The turnover of the in Sri Lanka 2011 Company crossed • Brand Jockey 2004 • Launch of first INR 1 billion reached 50,000 International • Production crossed • Licensing agreement format EBO in outlets in India 1995 2 million pieces
Slide 8: Management Growth Initiatives
MANAGEMENT GROWTH INITIATIVES Capacity Ramp-up in both Manufacturing and Sales Quality Expanding Channel presence in distribution, Integrity Exclusive Brand outlets, Customer Large Format Stores & Delight E-Commerce Page’s Value System Expanding investments and spends in Sales and Marketing at Point
Slide 9: Contents: Attractive Macro Opportunity
CONTENTS • Company Overview • Attractive Macro Opportunity • Multiple Products Offering Attractive Macro • Unmatched Market Coverage Opportunity • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 6
Slide 10: Attractive Macro: Multiple Drivers for Growth
ATTRACTIVE MACRO: MULTIPLE DRIVERS FOR GROWTH Favourable Demographics Industry Growth Drivers 41.7% 31.1% 27.8% 15 - 34 YRS HIGHER INCREASE IN 25.7% LARGEST DISPOSABLE URBAN CONSUMER INCOME POPULATION 0.8 1.0 1.2 1.5 GROUP 1991 2001 2011 2030P TOTAL POPULATION (IN BN) URBANISATION (%) INCREASED HIGH
Slide 11: Attractive Macro: Large Market
ATTRACTIVE MACRO: LARGE MARKET Indian Innerwear Market Indian Knitwear Market 3% 8% Indian Innerwear market is ~ INR 290bn, and is estimated Indian Knitwear market is to grow with CAGR of 10% to ~ INR 690bn, and is reach ~ INR 743bn by 2027 estimated to grow with 18% CAGR of 9% to reach Currently In
Slide 12: Contents: Multiple Products Offering
CONTENTS • Company Overview • Attractive Macro Opportunity • Multiple Products Offering Multiple Products • Unmatched Market Coverage Offering • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 9
Slide 13: Jockey Product Portfolio
JUNIORS JOCKEY BOYS VESTS PRODUCT BRIEFS TRUNKS BOXER SHORTS PORTFOLIO T-SHIRTS POLO T-SHIRTS TRACK PANTS SHORTS SWEAT SHIRTS JACKETS MEN UNDERWEAR VESTS BRIEFS JUNIORS BOXER BRIEFS GIRLS PANTIES TRUNKS BLOOMERS OUTERWEAR BOXER SHORTS SHORTIES BERMUDAS INNER TEES CAMISOLE TRACK PANTS MIDWAYS TANK TO
Slide 14: Speedo Product Portfolio
SPEEDO PRODUCT PORTFOLIO SWIMACTIVE SWIM H2O ACT ACTIVE SUN TOP CAPRI LEGGING WATERS WATERSHORT EQUIPMENT GOGGLES CAPS TRAINING AID SWIM CONFIDENCE SWIMWEAR S FOOTWEAR F L LEISURE S SLIDE S SWIMDRESS T THONG K KNEESUIT L LEGSUIT F FULL BODY SUIT J JAMMER A AQUASHORTS W WATERSHORTS A ALL-IN-ONE SUIT
Slide 15: New Launches
| NEW LAUNCHES fag MA 1) «8, JOCKEY OR NOTHING 6©, JOCKEY "GOCKEY ouERWear S| JUNIORS
Slide 16: Contents: Unmatched Market Coverage
CONTENTS • Company Overview • Attractive Macro Opportunity • Multiple Products Offering Unmatched Market • Unmatched Market Coverage Coverage • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 13
Slide 17: Channel Sales: Pan India Distribution Network
CHANNEL SALES: PAN INDIA DISTRIBUTION NETWORK CHANNEL SALES 4,300+ Distributor Accounts 2,800+ Cities / Towns 63,000+ Retail Network 530+ Channel Sales Strength 14
Slide 18: Exclusive Brand Outlets: First to Offer
EXCLUSIVE BRAND OUTLETS: FIRST TO OFFER EXCLUSIVE BRAND OUTLETS 720+ Exclusive Brand Outlets 35 Exclusive Woman Outlets 170+ Outlets in malls 530+ Outlets in high street Present in 250+ cities 15
Slide 19: Large Format Stores: Enhancing Customer Reach
LARGE FORMAT STORES: ENHANCING CUSTOMER REACH 22 Large Format ~ 1,600 ~ 2,700 partners Stores Point of sale across the country 16
Slide 20: Exclusive Online Store
ONLINE: RIDING THE DIGITAL WAVE EXCLUSIVE ONLINE STORE jockeyindia.com | speedo.in SELLING THROUGH ONLINE KEY PARTNERS …and other Partners 17
Slide 21: Contents: Manufacturing Capabilities
CONTENTS • Company Overview • Attractive Macro Opportunity • Multiple Products Offering Manufacturing • Unmatched Market Coverage Capabilities • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 18
Slide 22: Manufacturing Capabilities
MANUFACTURING CAPABILITIES Strong in-house manufacturing capabilities Committed to Quality • Our own manufacturing helps set high quality • Facilities spread over 2.4 million sq ft across 17 standards for both in-house and outsourced manufacturing units manufacturing • Present in 14 locations in Kar
Slide 23: Contents: Extensive Brand Reach
CONTENTS • Company Overview • Attractive Macro Opportunity • Multiple Products Offering Extensive Brand • Unmatched Market Coverage Reach • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 20
Slide 24: Extensive Brand Reach
EXTENSIVE BRAND REACH Media Strategy: Brand Television Movies Digital and Social Media Media Strategy: Product Out of Home Digital and Social Print Media Media Media Other Promotions Jockey Morning Fitness Party Bengaluru Football Club Goa Football Club 21
Slide 25: Digital/Social Media Reach
DIGITAL/SOCIAL MEDIA REACH TVC FEELS LIKE JOCKEY USA ORIGINALS 22
Slide 26: Contents: Robust Financials
CONTENTS • Company Overview • Attractive Macro Opportunity • Multiple Products Offering • Unmatched Market Coverage Robust Financials • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 23
Slide 27: Proven Track Record of Financial Performance
PROVEN TRACK RECORD OF FINANCIAL PERFORMANCE RONW/ROCE EPS and DPS Working Capital Days 110 72% 353 105 107 344 311 96 81 78 239 58% 58% 68 70 208 55% 51% 60 176 52 51% 44% 131 40% 41% 85 97 72 21 21 19 21 19 19 19 19 16 16 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 Receivables Inventory Paya
Slide 28: 9MFY20 Performance Highlights
9MFY20 PERFORMANCE HIGHLIGHTS in INR Million Financials 9M FY20 9M FY19 Growth Revenue 24,042 22,443 7.1% Gross Profit 9,510 8,852 7.4% Gross Margin 39.6% 39.4% - EBITDA 4,647 4,904 -5.2% EBITDA Margin 19.3% 21.9% - PAT 3,122 3,190 -2.1% PAT Margin 13.0% 14.2% - Gross Margins remains strong and stea
Slide 29: Q3FY20 Performance Highlights
Q3FY20 PERFORMANCE HIGHLIGHTS in INR Million Financials Q3 FY20 Q3 FY19 Growth Revenue 7,938 7,383 7.5% Gross Profit 3,031 2,960 2.4% Gross Margin 38.2% 40.1% - EBITDA 1,353 1,621 -16.5% EBITDA Margin 17.0% 22.0% - PAT 870 1,019 -14.6% PAT Margin 11.0% 13.8% - Temporary dip in PAT is entirely due to
Slide 30: Contents: Giving Back to Society
CONTENTS • Company Overview • Attractive Macro Opportunity • Multiple Products Offering Giving Back to • Unmatched Market Coverage Society • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 27
Slide 31: Giving Back to Society
GIVING BACK TO SOCIETY • CSR initiatives covers 35 schools, 6 Towns and 9,200+ school children Evening • INR 58.4 million has been spent on School CSR activities in 9 months of FY20 School Skill Lab (INR 52.7 million in FY 19) Development Protect Education Environment JOYFUL Support LEARNING My Coun
Slide 32: Sustainability Will Be a Key Part of Our Growth
SUSTAINABILITY WILL BE A KEY PART OF OUR GROWTH BUSINESS SUSTAINABILITY BUSINESS SUSTAINABILITY It assists in ensuring Many of our suppliers Many of our innerwear It provides customers with consistent product manufacture exclusively products are anti-microbial more hygienic options quality and emplo
Slide 33: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Strong in-house Wide Range of product development Robust Financials Premium Quality and back end with ROCE of 65% Products capabilities Strong Distribution network with strong License with Jockey Strong Balance Sheet Strong Brand Equity, presence through EBO’s, Internationa
Slide 34: Shareholding Pattern
SHAREHOLDING PATTERN As of 31 Dec 2019 Others, 13.3% Mutual Funds, 6.9% Promoter, 48.3% FPI, 31.5% Market Cap: ~ INR 265 bn (as on 12 Feb, 2020) 31
Slide 35: Thank You
THANK YOU PAGE INDUSTRIES LIMITED CIN: L18101KA1994PLC016554 Contact Us: For Investor Relations: investors@jockeyindia.com Website: www.jockeyindia.com 32