Page Industries Limited · NSE:PAGEIND
Page Industries — FY2020 Earnings Presentation
41 slides from Page Industries's earnings presentation, Jun 23, 2020
Slide 1: Cover letter to stock exchanges
June 23, 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 – 400 001 Dear Si
Slide 2: Press release: FY20 sales growth 3.3%, gross margin 39.3%
For Immediate Release FY20 Sales growth at 3.3% YoY; Gross Margin steady at 39.3% FY20 Net cash balance stood at Rs. 1,167 million Bengaluru, India – 23rd June 2020: Page Industries, India’s leading apparel manufacturer announced its audited financial results for the fourth quarter and full year end
Slide 3: Press release continued: investments and About Page Industries
ready and strengthen the foundation for the company. With our robust business and balance sheet, we continue to expand our capacity in a calibrated manner, modernize our factories to increase productivity while optimizing costs and expenditure. We also continue to strengthen the senior management te
Slide 4: Performance Highlights Q4 & FY20
PERFORMANCE HIGHLIGHTS Q4 & FY20
Slide 5: Contents
CONTENTS • Company Overview • Attractive Macro Opportunity • Covid-19 impact • Multiple Products Offering Company Overview • Unmatched Market Coverage • 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 PAN India Presence Production Capacity Strong Financial Premium Innerwear Professional 66,000+ Retail Network 260 mn pieces across Performance and Athleisure Management supported by 17 manufacturing units 750+ Exclusive Business Outle
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 • Covid-19 impact Attractive Macro • Multiple Products Offering Opportunity • Unmatched Market Coverage • 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% 8% 20.8% Indian Innerwear market is ~ INR 320bn, 290bn, and is estimated to Indian Knitwear market is grow to grow with with CAGR CAGRof 11% of 10% to reach to ~ INR 690bn, and is ~ INR 897bn reach ~ INR 743bn by 202
Slide 12: Contents: Multiple Products Offering
CONTENTS • Company Overview • Attractive Macro Opportunity • Covid-19 impact Multiple Products • Multiple Products Offering Offering • Unmatched Market Coverage • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 9
Slide 13: Covid-19 Response
COVID-19 RESPONSE Putting people first In February 2020, the Namaste Over Handshake initiative was introduced Posters with guidelines for hand washing techniques and hand sanitizers were placed at vantage points PEOPLE throughout the workplace Visitors as well as domestic and international travel wa
Slide 14: Early Indicators Post Covid Lockdown
EARLY INDICATORS POST COVID LOCKDOWN • Retail stores of channel partners’ open as of mid-June › EBO: 89% of our outlets have re-opened; 677 outlets › LFS: 64% of our stores have re-opened; 1290 stores • All manufacturing and warehousing facilities have resumed operations • Encouraging signs of sales
Slide 15: Contents: Multiple Products Offering
CONTENTS • Company Overview • Attractive Macro Opportunity • Covid-19 impact Multiple Products • Multiple Products Offering Offering • Unmatched Market Coverage • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 12
Slide 16: 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 17: 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 18: New Launches
1) 6, JOCKEY. OR NOTHING 6, JOCKEY "GOCKEY Ouvenwean WS less JUNIORS
Slide 19: Contents: Unmatched Market Coverage
CONTENTS • Company Overview • Attractive Macro Opportunity • Covid-19 impact Unmatched Market • Multiple Products Offering Coverage • Unmatched Market Coverage • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 16
Slide 20: Channel Sales: Pan India Distribution Network
CHANNEL SALES: PAN INDIA DISTRIBUTION NETWORK CHANNEL SALES 4,000+ Distributor Accounts 2,850+ Cities / Towns 66,000+ Retail Network 530+ Channel Sales Strength 17
Slide 21: Exclusive Brand Outlets: First to Offer
EXCLUSIVE BRAND OUTLETS: FIRST TO OFFER EXCLUSIVE BRAND OUTLETS 750+ Exclusive Brand Outlets 38 Exclusive Woman Outlets 180+ Outlets in malls 570+ Outlets in high street Present in 270+ cities 18
Slide 22: Large Format Stores: Enhancing Customer Reach
LARGE FORMAT STORES: ENHANCING CUSTOMER REACH 22 Large 23 Large Format Format ~~2,000 1,600 ~~ 3,200 2,700 partners partners Stores Stores Point of Point of sale across across the country the country 19
Slide 23: Online: Riding the Digital Wave
ONLINE: RIDING THE DIGITAL WAVE EXCLUSIVE ONLINE STORE jockey.in | speedo.in SELLING THROUGH ONLINE KEY PARTNERS …and other Partners 20
Slide 24: Contents: Manufacturing Capabilities
CONTENTS • Company Overview • Attractive Macro Opportunity • Covid-19 impact Manufacturing • Multiple Products Offering Capabilities • Unmatched Market Coverage • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 21
Slide 25: 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 26: Contents: Extensive Brand Reach
CONTENTS • Company Overview • Attractive Macro Opportunity • Covid-19 impact Extensive Brand • Multiple Products Offering Reach • Unmatched Market Coverage • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 23
Slide 27: 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 24
Slide 28: Digital/Social Media Reach
DIGITAL/SOCIAL MEDIA REACH TVC FEELS LIKE JOCKEY USA ORIGINALS 25
Slide 29: Contents: Robust Financials
CONTENTS • Company Overview • Attractive Macro Opportunity • Covid-19 impact • Multiple Products Offering Robust Financials • Unmatched Market Coverage • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 26
Slide 30: Proven Track Record of Financial Performance
PROVEN TRACK RECORD OF FINANCIAL PERFORMANCE Revenue Revenue Growth % EBITDA EBITDA Margin % PAT PAT Margin % Rs Million Rs Million Rs Million 15.5% 18.6% 19.8% 11.8% 21.0% 19.4% 21.2% 21.6% 13.6% 13.8% 3.3% 18.1% 12.9% 12.5% 11.7% 29,454 16% 9.01 % 5% R : 13. 28,522 R: R: 10.3 CAG 25,520 CAG 6,169
Slide 31: Proven Track Record of Financial Performance
PROVEN TRACK RECORD OF FINANCIAL PERFORMANCE RONW/ROCE EPS and DPS Working Capital Days 72% 353 110 344 107 311 308 96 89 58% 58% 81 78 55% 55% 239 68 70 51% 208 60 57 161 44% 131 41% 42% 97 40% 85 21 19 21 19 19 19 16 16 9 12 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Receivables Inventory P
Slide 32: Profit and Loss Statement - Full Year
PROFIT AND LOSS STATEMENT - FULL YEAR Rs Million FY 2020 % FY 2019 % FY 2018 % YOY growth Revenue 29,454 100.0% 28,522 100.0% 25,520 100.0% 3.3% COGS 13,108 44.5% 11,967 42.0% 10,872 42.6% 9.5% Contribution 16,346 55.5% 16,555 58.0% 14,648 57.4% -1.3% Employee Cost 5,317 18.1% 4,668 16.4% 4,065 15.9
Slide 33: Profit and Loss Statement - Quarterly
PROFIT AND LOSS STATEMENT - QUARTERLY QoQ YoY Rs Million Q4, FY20 % Q3, FY20 % Q4, FY19 % growth growth Revenue 5,413 100.0% 7,938 100.0% 6,079 100.0% -31.8% -11.0% COGS 2,228 41.2% 3,718 46.8% 2,213 36.4% -40.1% 0.7% Contribution 3,185 58.8% 4,220 53.2% 3,866 63.6% -24.5% -17.6% Employee Cost 1,344
Slide 34: Balance Sheet
BALANCE SHEET Assets (Rs Million) FY20 FY19 FY18 Total Equity & Liabilities (Rs Million) FY20 FY19 FY18 Non Current Assets Equity Share Capital 112 112 112 Reserves and Surplus 8,087 7,638 8,361 Fixed Assets 3,298 3,079 2,965 Total Equity 8,199 7,750 8,473 Financial Assets 257 175 172 Other Non Curr
Slide 35: Annual Cash Flow Statement
ANNUAL CASH FLOW STATEMENT Rs Million FY20 FY19 FY18 Net Cash Flow from Operating Activities 5,167 2,297 4,528 Net cash flow from/(used in) investing activities (266) 1,920 (2,381) Net cash flow from/(used in) financing activities (3,775) (4,433) (1,878) Net Increase / (Decrease in cash and cash equ
Slide 36: Contents: Giving Back to Society
CONTENTS • Company Overview • Attractive Macro Opportunity • Covid-19 impact Giving Back to • Multiple Products Offering Society • Unmatched Market Coverage • Manufacturing Capabilities • Extensive Brand Reach • Robust Financials • Giving Back to Society 33
Slide 37: Giving Back to Society
GIVING BACK TO SOCIETY • CSR initiatives covers 35 schools, 6 Towns and 10,000+ school children Evening • INR 63.53 million has been spent School on CSR activities in FY20 (INR 52.7 School Skill Lab million in FY 19) Development Protect Education Environment JOYFUL Support LEARNING My Country, Hygie
Slide 38: 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 39: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Strong in-house Wide Range of product development Robust Financials Premium Quality and back end with ROCE of 55% Products capabilities Strong Distribution network with strong License with Jockey Strong Balance Sheet; Strong Brand Equity, presence through EBO’s, Internation
Slide 40: Shareholding Pattern
SHAREHOLDING PATTERN As of 31 March 2020 Others, 14.1% Mutual Funds, 8.4% Promoter, 48.3% FPI, 29.2% Market Cap: ~ INR 198 bn (as on 15 June, 2020) 37
Slide 41: Thank You
THANK YOU PAGE INDUSTRIES LIMITED CIN: L18101KA1994PLC016554 Contact Us: For Investor Relations: investors@jockeyindia.com Website: www.jockeyindia.com 38