Campus Activewear Ltd. · NSE:CAMPUS
Campus Activewear — Q1 FY24 Earnings Presentation
34 slides from Campus Activewear's earnings presentation, Aug 11, 2023
Slide 1: Exchange filing cover letter - Earnings Presentation
11th August 2023 To, BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department Exchange Plaza, C-1, Block G, 1st Floor, New Trading Ring, Rotunda Building, Bandra Kurla Complex, Bandra (East), P. J. Towers, Dalal Street, Mumbai – 400 051 Mumbai – 400 001 SCRIP CODE: 543523
Slide 2: Earnings Presentation
EARNINGS PRESENTATION ———
Slide 3: Table Of Contents
Table Of Contents 01 Business Snapshot 02 Business Highlights 03 Business Performance – Q1 FY24 04 Growth Vectors 05 Appendix 2
Slide 4: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Campus Activewear Limited (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows
Slide 5: Business Snapshot
BUSINESS 01 SNAPSHOT
Slide 6: CAMPUS - India's Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand
CAMPUS - India’s Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand Revenue from Operations #1 20,000+ Q1 FY24: INR 353.8 Cr #1 Sports & Athleisure (S&A) Footwear 20,000+ Retailers across 650+ cities and 28 (c.4.8% YoY growth) Brand in India (1) states TTM 3MFY24: INR 1,500.3 Cr FY2
Slide 7: Our Journey to Become India's #1 S&A Footwear Brand
Our Journey to Become India’s #1 S&A Footwear Brand Backward integration initiative – Upper EBO store count Manufacturing facility crosses 200 at Haridwar & Backward integration IPO – Campus Successful launch of Inception of the initiative - Sole EBO store count Activewear IPO INR 3,000+ MRP “Campus
Slide 8: Product – Placement – Promotion Interplay Generating Business MOAT
Product – Placement – Promotion Interplay Generating Business MOAT Internal Strengths Curated Over the Years Across Product Design, Supply Chain, Distribution and Marketing is Onerous to Replicate Sustained focus on Product Innovation and Design Integrated Manufacturing Ecosystem 34.8 mm Exclusive a
Slide 9: Experienced Management & Professional Board at the Helm of Affairs
Experienced Management & Professional Board at the Helm of Affairs Key Management Board of Directors Mr. H.K. Agarwal Mr. Nikhil Sanjay Chhabra ◼ Whirlpool Chairman & Aggarwal Chief Financial Mr. H.K. Agarwal Mr. Nikhil ◼ One of the ◼ One of the ◼ Carlsberg Managing Promoters of CEO & Whole-Time Pro
Slide 10: Business Highlight
BUSINESS 02 HIGHLIGHT
Slide 11: Key Pillars of Business MOAT
Key Pillars of Business MOAT Superior Product Vertically Integrated Omni-Channel Innovative Marketing Digitization of Sales 1 Innovation and Design 2 Manufacturing 3 4 5 Customer Experience Capabilities Process Capabilities Ecosystem Innovation, Annual assembly Pan-India omni- Move from stand- Advan
Slide 12: Superior Product Innovation and Design Capabilities
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 1 Superior Product Innovation and Design Capabilities Highly experienced in-house Global Design Consultancy Network team of 50 designers and Design Sourcing Tie-ups Deliver New and Identify emerging international fashion tren
Slide 13: Vertically Integrated Manufacturing Ecosystem
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 2 Vertically Integrated Manufacturing Ecosystem Annual Assembly Capacity of 34.8 mm pairs (1) Uppers 13.8% In-house ✓ c.90% domestic raw material sourcing Haridwar Outsourced 86.2% ✓ Exclusive ancillary network Shoe Sole Abil
Slide 14: Omni Channel Platform to Reach Customers Where They Are
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 3 Omni Channel Platform to Reach Customers Where Pan-India Distribution They Are Presence (20,000+ Retail Pan India Distribution Presence All-Inclusive Use of E-commerce Channels Touchpoints in more than Established Pan-India
Slide 15: Strong Brand Recognition & Innovative Marketing
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 4 Strong Brand Recognition & Innovative Marketing Creating India’s Largest S&A Footwear Brand Brand building initiatives among all segments with acceptance levels across target customers groups Marketing Strategy Pivoted away
Slide 16: Digitization of Sales Process has Generated a Virtuous Flywheel
Manufacturing Product Design Distribution Marketing Digitization Ecosystem 5 Digitization of Sales Process has Generated a Virtuous Flywheel enabling Faster Speed to Market Our Data Centric Approach allows us to understand Investment in D2C & Faster customer Consumer Demand Trends, Tech initiatives
Slide 17: Business Performance – Q1 FY24
Business 03 Performance – Q1 FY24
Slide 18: Q1 FY24 – Financial & Business Highlights
Q1 FY24– Financial & Business Highlights Parameters Q1 FY24 Q1 FY23 YoY Parameters TTM 3MFY24 FY23 YoY (INR Cr) Growth(%) (INR Cr) Growth(%) Revenue 353.8 337.7 4.8% Revenue 1,500.3 1,484.3 1.1% EBITDA 66.4 62.2 6.7% EBITDA 260.5 256.3 1.6% PAT 31.5 31.3 0.5% PAT 117.3 117.1 0.1% FINANCIAL HIGHLIGHT
Slide 19: Q1 FY24 and TTM 3MFY24 – Financial Highlights
Q1 FY24 and TTM 3MFY24 – Financial Highlights Revenue from Operations (1) (INR Cr) Volume Sold (# mm) Average Selling Price (INR / Pair) 465.6 7.0 669 604 608 632 629 5.6 5.5 5.5 5.6 584 337.7 333.2 347.8 353.8 497 Quarterly 135.3 2.3 27.7 0.6 Q1FY21 Q1FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY23
Slide 20: Q1 FY24 and TTM 3MFY24 – Financial Highlights
Q1 FY24 and TTM 3MFY24 – Financial Highlights Revenue from Operations (1) (INR Cr) EBITDA (2)&(4) (INR Cr) Profit After Tax (3)&(4) (INR Cr) -63.5% 12.5% 18.4% 13.3% 19.9% 16.4% 18.8% -50.8% 1.9% 9.3% 4.4% 10.4% 6.6.% 8.9% 465.6 EBITDA Margin (%) 92.8 PAT Margin (%) 337.7 333.2 347.8 353.8 Quarterly
Slide 21: FY23 Business Highlights
FY23 Business Highlights Cash Conversion Days (1) Net Debt (2) Day Sales Outstanding INR Cr Net Receivables 79 69 40 43 44 138 130 183.0 173.9 120 106 156.8 98 134.6 135.3 Annual FY20 FY21 FY22 FY23 TTM 3M FY20 FY21 FY22 FY23 TTM 3M FY24 FY24 Net Debt (2) / EBITDA Return on Equity (%) Return on Capi
Slide 22: Statement of Profit & Loss
Statement of Profit & Loss Particulars (INR Cr) Q1FY24 Q4FY23 Q1FY23 FY2023 Revenue from Operations 353.8 347.8 337.7 1,484.3 Other Income 0.2 0.6 0.6 2.8 Total Income 354.0 348.3 338.3 1,487.0 Cost of Materials Consumed, including packing material 167.5 187.9 201.6 842.9 Purchase of Stock in
Slide 23: FY23 Revenue: Segmental Analysis
FY23 Revenue: Segmental Analysis Trade Distribution Channel Campus Activewear Limited (1) 743.2 813.0 802.0 641.2 535.3 1,484.3 1,500.3 1,194.2 FY20 FY21 FY22 FY23 TTM 3M FY24 Annual 732.0 711.3 Direct to Consumer Channel FY20 FY21 FY22 FY23 TTM 3M FY24 657.1 685.8 443.8 174.8 89.9 FY20 FY21 FY22 FY
Slide 24: Growth Vectors
GROWTH 04 VECTORS
Slide 25: Prime Growth Vectors Going Forward
Prime Growth Vectors Going Forward Product Diversification via Extension into Allied Categories Text Sustained Focus on Premiumization Across Product Segments Further Accentuate our Omni-channel Experience Steadily Extend into New Territories By Deepening our Presence in Western and Southern Regions
Slide 26: Appendix: Industry Landscape & Positioning
APPENDIX 05 Industry Landscape & Positioning Wholly Owned Subsidiary Merger Impact
Slide 27: India S&A Footwear Market has Attractive Industry Prospects
India S&A Footwear Market has Attractive Industry Prospects Footwear is Expected to be among the fastest Growing segments within the Retail Industry Within Indian Retail Indian Footwear Market Size Total Addressable Market (FY25P) Industry, Footwear is 12% 15% 19% 21% Expected to be One of the 48% 5
Slide 28: S&A Footwear in India is Highly Underpenetrated
S&A Footwear in India is Highly Underpenetrated Structural Growth Drivers in Place – Increase in Fitness Consciousness and Disposable Income Annual Footwear Consumption Per Capita Annual Expenditure Share of S&A in Footwear Retail on S&A Footwear (pairs per capita) (in US$) 1.9 1.1 15% India’s Per C
Slide 29: Indian S&A Market has a Long Runway for Growth
Indian S&A Market has a Long Runway for Growth Poised for Similar Growth as Witnessed by Chinese Athleisure Market More Than 15 Years Ago Annual Footwear Consumption Per Capita Annual Expenditure Share of S&A in Footwear Retail on S&A Footwear (pairs per capita) (in US$) 1.9 1.1 15% Massive Growth 7
Slide 30: Widest Presence Across Price Segments
Widest Presence Across Price Segments Largest Market Coverage Addressing 85%+ of the S&A Footwear Market S&A Footwear Market (FY21) Revenue Contribution for CAMPUS INR 90bn FY19 FY23 Premium-Plus Nike 13% (Above INR 3,000) Puma Adidas Priced above INR 1,500 Expansive and Diverse Entry to Premium 31.
Slide 31: Appendix: Wholly Owned Subsidiary Merger Impact
APPENDIX 05-B Wholly Owned Subsidiary Merger Impact
Slide 32: Impact of Merger
Impact of Merger Campus Activewear Limited has announced the approval of the merger of its wholly owned subsidiary Campus AI Private Limited with the Company by National Company Law Tribunal, New Delhi (NCLT) vide its order dated 11th August 2022. The revised audited financial results for the year e
Slide 33: Impact of Merger
Impact of Merger ❖ For FY’21, the one-time additional tax impact of INR. (189.7) million has been captured as “Impact on Deferred tax / Current tax for earlier years” in the revised financials for FY’22. ❖ The company has adopted the lower tax regime of 25% from FY’22 onwards. ❖ Details of change in
Slide 34: Thank You
THANK YOU Investor Relations Desk ird@campusshoes.com