Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — H1 FY2016 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, November 2015
Slide 1: Vaibhav Global Limited Financial Results Presentation Q2 & H1 FY2016
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q2 & H1 FY2016 November 2015
Slide 2: Safe Harbor
Safe Harbor Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ ma
Slide 3: Vaibhav Global – An Overview
Vaibhav Global – An Overview Vertically-integrated electronic retailer • End-to-end B2C business model in the electronic retail industry • Proprietary TV home-shopping and e-commerce platforms Liquidation Channel and The Jewellery Channel are strong brands • 104 million (FTE) households on TV shoppi
Slide 4: Table of Contents
Table of Contents Q2 & H1 FY16 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for Q2 & H1 FY16
Key Highlights for Q2 & H1 FY16 Home TV Network Reaches Over 100 Million Households, FTE Increases 9% • 104 million households on full time equivalent (FTE) basis • 25 million households in the UK • 77 million households in the US • 2.4 million households in Canada In Q2FY16, Retail Volumes at 2.1 M
Slide 6: Chairman’s Message
Chairman’s Message Commenting on Q2 & H1 FY16 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “Continuing to strengthen our customer experience, subsequent to the launch of our advanced mobile website on SAP/HYBRIS platform in the US, we have also launched Demand
Slide 7: Financials – Q2 & H1 FY16 Performance (Revenues)
Financials – Q2 & H1 FY16 Performance (Revenues) Revenues (Rs. crore) 623 575 321 298 Q2 FY15 Q2 FY16 H1 FY15 H1 FY16 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 444 428 235 221 116 106 57 52 63 29 26 41 Q2 FY15 Q2 FY16 H1 FY15 H1 FY16 Q2 FY15 Q2 FY16 H1 FY15 H1 FY16 Q2 FY15 Q2 FY16 H1
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 22 23 23 22 3,156 2,992 1,734 1,493 Q2 Q2 H1 H1 Q2 Q2 H1 H1 • Q2 volume lower by 14% in TV and 16% FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 in Web on yoy basis. • Web sales contribute 30% of sales Web Sales volume. Sal
Slide 9: Financials – Q2 & H1 FY16 Performance (Margins)
Financials – Q2 & H1 FY16 Performance (Margins) Rs. crore Gross Profit Gross margin 450 66% 70% 65% 66% 400 63% 65% 350 60% 300 • Gross margins improved yoy due to 55% 250 improved margins at channels towards 50% costs of returns and Budget Pay, and 200 150 45% operational efficiencies at VGL India.
Slide 10: Financials – Q2 & H1 FY16 Performance (Profits)
Financials – Q2 & H1 FY16 Performance (Profits) Rs. crore PAT * PAT margin 100 18.0% 80 15.0% • PAT impacted by lower EBITDA and 12.0% higher depreciation. 60 7.5% 9.0% 6.8% 40 6.0% 20 2.8% 3.0% 3.5% 24 11 42 16 - 0.0% Q2 FY15 Q2 FY16 H1 FY15 H1 FY16 * Profit after tax without exchange gain(loss) fl
Slide 11: Table of Contents
Table of Contents Q2 & H1 FY16 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 11
Slide 12: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,298 1,376 893 647 575 FY12 FY13 FY14 FY15 H1 FY16 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 958 687 483 225 256 162 161 428 117 91 89 73 106 41 FY12 FY13 FY14 FY15 H1 FY12 FY13 FY14 FY15 H1 FY12 FY13 FY14 FY15 H1 FY1
Slide 13: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 6,829 6,420 41 5,239 30 3,268 2,992 23 24 22 • TV ASP reduced slightly in H1 but is FY12 FY13 FY14 FY15 H1 FY12 FY13 FY14 FY15 H1 expected to improve in H2 with FY16 FY16 introduction of Budget Pay. Web Sales Sales Vo
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 900 68% 66% 800 66% 700 • Gross margins increased in H1 due to 64% 600 lower B2B sales, addition of import duty 500 61% 61% 62% 60% in stock value at channels, improved 400 59% 60% margins at channels towards costs of 300 re
Slide 15: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 160 12% 12% 12% 140 10% 120 8% 8% 8% 100 80 6% 60 3% 4% 40 2% 20 79 78 153 103 19 0 0% FY12 FY13 FY14 FY15 H1 FY16 Rs. per share EPS 48 32 25 24 6 FY12 FY13 FY14 FY15 H1 FY16 15
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 328 345 203 265 233 119 159 66 77 58 FY12 FY13 FY14 FY15 H1 FY16 FY12 FY13 FY14 FY15 H1 FY16 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due • During FY13 fixed assets we
Slide 17: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Rs. crore Free Cash Flow * Rs. crore Operating Cash flow 169 152 129 106 52 66 26 -8 34 18 FY12 FY13 FY14 FY15 H1 FY16 FY12 FY13 FY14 FY15 H1 FY16 *Includes Foreign Currency Transaction Reserve *Includes Foreign Currency Transaction Reserve Operating cash fl
Slide 18: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) ROE ROCE 68% 60% 65% 44% 34% 36% 31% 23% 24% 22% FY12 FY13 FY14 FY15 H1 FY16 FY12 FY13 FY14 FY15 H1 FY16 18
Slide 19: Table of Contents
Table of Contents Q2 & H1 FY16 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 19
Slide 20: Market Opportunity
Market Opportunity US market size (US$ Bn) UK market size (US$ Bn) Fashion Accessories 17 Fashion Accessories 6 Fine and Fashion Fine and Jewelry Fashion 8 Jewelry 67 Market share gains through expanded distribution network and introduction of collections/designs mapping market trends 20
Slide 21: Product Profile
Product Profile FASHION JEWELLERY • Bracelets • Bangles • Earrings • Studded jewelry, etc. FASHION ACCESSORIES • Watches • Handbags • Scarves, etc. LIFESTYLE PRODUCTS • Home Décor • Bed linens • Pillow Covers • Towels, etc. 21
Slide 22: US Market Access on Liquidation Channel
US Market Access on Liquidation Channel Channel #274 Channel #399 & 1399 Channel #159 Channel #75 & 226 * * * https://www.liquidationchannel.com * * * Different channel # across various locations Access to 77 million (FTE) of the 116 million households in the US 22
Slide 23: UK Market Access on The Jewellery Channel
UK Market Access on The Jewellery Channel Channel #49 Channel #650& #652 Channel #815 Channel #757 www.thejewellerychannel.tv Access to 25 out of the total 25 million households 23
Slide 24: E-Commerce
E-Commerce • Digital presence through liquidationchannel.com and thejewellerychannel.tv • Retail formats: – Catalog – Rising Auctions • Technology enhancements: – Hybris (a SAP company) platform implemented in US. – Mobile app started for TJC UK – IPTV apps developed for Google TV, LG TV, Samsung TV
Slide 25: Sourcing Markets
Sourcing Markets Manufacturing facility in Jaipur, India Production Capacity (3 units) – 4 million pieces p.a. ISO 9001:2008 manufacturing facilities Additional Capacity – SEZ Green Building with Gold Level facility of 65,000 sq ft Over 2,600 people in India across corporate, manufacturing, design,
Slide 26: Consumption Markets
Consumption Markets Access to over 100 million (FTE) households on TV homeshopping in the US, UK and Canada • Affiliate agreements with major cable, satellite providers • Improved product presentation by investing into studio facilities The Jewellery Channel Liquidation Channel UK USA • The Jeweller
Slide 27: Sourcing Methodology
Sourcing Methodology Assessing value perception – design / fashion trend / price in target Competitive markets Pricing Mapping latest fashions Vendor Core evaluation competency process of vendor Rapid turnaround Sourcing from appropriate micro-markets in China/Asia Delivery/ Low Focus on best qualit
Slide 28: Management Team
Management Team Sunil Agrawal Chairman and Managing Director Established Vaibhav in 1980 as a first generation entrepreneur and has led the company’s transition into a leading brand for fashion jewelry and lifestyle accessories Travels extensively across the world, overseeing operations, sourcin
Slide 29: Management Team
Management Team Jeff Allar Colin Wagstaffe Senior Vice President, Group HR Managing Director, The Jewellery Channel UK Previously led retail marketing and ecommerce 30 years of work experience at major international initiatives at UK and Ireland operations of Signet companies including IBM, Unil
Slide 30: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Puru Aggarwal Vaibhav Global Limited +91-141-2770648 Puru.Aggarwal@vglgroup.com Ghanshyam Gupta Vaibhav Global Limited +91-141-2770648 Ghanshyam.Gupta@vglgroup.com Shiv Muttoo / Karl Kolah CDR India +91 22 6645 1207/
Slide 31: Thank You
Thank You 31