Slide 1: Financial Results Presentation – Q4 & 12M FY2019
Global Retailer of Fashion Jewellery, Accessories and Lifestyle products on Home Shopping TV and Vaibhav Global Limited e-Commerce Platforms Financial Results Presentation – Q4 & 12M FY2019
Slide 2: Forward-looking statements disclaimer
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 materially fro
Slide 3: B2C Success in Developed Markets
B2C Success in Developed Markets Products Sold TV Homes Avg. Quantity per Customer On TV and Web Directly Accessed (FTE) *TTM Unique Customers *TTM ROE *TTM ROCE *TTM Revenue PAT Free Cash Flow Investor Presentation May 2019 3
Slide 4: Vertically-integrated fashion retailer
End-to-end B2C business model for fashion jewellery, accessories and 100 million (FTE) households on TV shopping in lifestyle products the US and UK; expanding online presence Vertically- Proprietary TV home-shopping and e- Shop LC and Positive customer engagement metrics – commerce platforms integr
Slide 5: Manufacturing and Sourcing Markets, Consumption Markets
Manufacturing and Consumption Markets Sourcing Markets STS, China Sourcing USA STS Hong Kong TV channel retail Sourcing E-commerce website The Jewellery Channel, UK Sub-contracting & Apps TV channel retail Marketplaces E-commerce website & Apps Social media Marketplaces STS Thailand Social media Sou
Slide 6: Table of Contents
Table of Contents Q4 & 12M FY19 Financial Business Financial 07 Performance 15 Background 23 Performance Trends Details Investor Presentation May 2019 6
Slide 7: Q4 & 12M FY19 Financial Performance
Q4 & 12M FY19 Financial Performance
Slide 8: Key Highlights for Q4 & 12M FY19
Key Highlights for Q4 & 12M FY19 Home TV Network Reach – 100 Mn Households across US Operating Highlights in Q4 &12M FY19 and UK Driving forward on its quality journey, Shop LC applied for the 100 million households on full time equivalent (FTE*) basis Malcolm Baldridge Progress Level Award from Qua
Slide 9: MD's Message
“We have delivered another year of strong performance during FY19, leveraging the MD’s Message intrinsic strengths of our business to drive growth in revenues, profits, cash flows and shareholder returns. I am happy to share that our Board of Directors have recommended a final dividend of Rs. 5 per
Slide 10: Financials – Q4 & 12M FY19 Performance (Revenue Breakdown)
Financials – Q4 & 12M FY19 Performance (Revenue Breakdown – Rs. crore) Revenue Jewelry & Lifestyle Products 1,814 1,571 TV Sales Web Sales B2B 1,157 510 201 997 373 147 424 462 153 67 257 282 100 27 Q4 Q4 FY18 FY19 Q4 Q4 FY18 FY19 Q4 Q4 FY18 FY19 Q4 Q4 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY
Slide 11: Financials – Revenue Breakdown in Local Currency
Financials – Q4 & 12M FY19 Performance (Revenue Breakdown - Local Currency) Shop LC (USD million) TJC UK (GBP million) 170.6 156.1 51.4 41.5 40.0 44.6 12.7 10.8 Q4 FY18 Q4 FY19 FY18 FY19 Q4 FY18 Q4 FY19 FY18 FY19 Investor Presentation May 2019 11
Slide 12: Retail Performance Trends – Q4 & 12M FY19
Retail Performance Trends – Q4 & 12M FY19 (Volume and ASP) TV Sales Sales Volume ('000s) Average Selling Price US$ 28.6 5,737 6,275 26.8 27.0 26.4 1,395 1,496 Q4 FY18 Q4 FY19 FY18 FY19 Q4 FY18 Q4 FY19 FY18 FY19 Web Sales Sales Volume ('000s) Average Selling Price US$ 21.4 3,522 2,840 20.7 20.6 20.4
Slide 13: Financials – Margins
Financials – Q4 & 12M FY19 Performance (Margins) Gross Profit Gross Margin (%) Gross Profit Gross Margin (%) 62.5% 62.7% 59.6% 55.3% 235 290 936 1,133 Q4 FY18 Q4 FY19 FY18 FY19 EBITDA EBITDA Margin (%) EBITDA EBITDA Margin (%) 10.1% 12.0% 10.1% 9.7% 41 47 159 217 Q4 FY18 Q4 FY19 FY18 FY19 Investor P
Slide 14: Financials – Profits
Financials – Q4 & 12M FY19 Performance (Profits) PAT PAT Margin (%) PAT PAT Margin (%) 7.0% 8.5% 7.2% 7.5% 32 33 113 154 Q4 FY18 Q4 FY19 FY18 FY19 EPS (Rs.) 47.27 34.55 9.80 9.95 Q4 FY18 Q4 FY19 FY18 FY19 Investor Presentation May 2019 14
Slide 15: Financial Performance Trends
Financial Performance Trends
Slide 16: Financials Performance Trends – Revenue breakdown
Financials Performance Trends (Revenue breakdown - Rs. crore) Revenue 1,814 1,436 1,571 1,276 FY16 FY17 FY18 FY19 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 510 1157 931 972 997 373 190 201 274 147 223 122 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 *Previous years num
Slide 17: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 6,275 27.0 26.4 5,854 5,877 5,737 24.9 24.4 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Web Sales Sales Volume ('000s) Average Selling Price US$ 3,522 20.4 20.7 2,840 17.5 2,264 2,353 15.1 FY16 FY17 FY18 FY19 FY16 FY17 FY1
Slide 18: Financials Performance Trends – Margins
Financials Performance Trends (Margins) Gross Profit Gross Margin (%) 62.5% 60.1% 59.6% 63.0% 804 865 936 1,133 FY16 FY17 FY18 FY19 EBITDA EBITDA Margin (%) 12.0% 10.1% 7.1% 5.9% 75 102 159 217 FY16 FY17 FY18 FY19 Investor Presentation May 2019 18
Slide 19: Financials Performance Trends – Profits
Financials Performance Trends (Profits) PAT PAT Margin (%) 8.5% 7.2% 4.5% 3.1% 40 65 113 154 FY16 FY17 FY18 FY19 EPS 12.27 19.85 34.55 47.27 FY16 FY17 FY18 FY19 Investor Presentation May 2019 19
Slide 20: Financial Performance Trends – Balance Sheet
Financial Performance Trends (Balance Sheet - Rs. crore) Shareholders’ Equity Fixed assets including intangibles 697 129 126 550 379 434 120 117 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 55 Net Debt Net Current Assets 6 417 399 (13) 305 314 (181) FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Investor Presen
Slide 21: Financial Performance Trends – Cash Flow
Financial Performance Trends (Cash Flow – Rs. crore) Operating Cash flow Free Cash Flow 170 193 88 58 18 12 36 22 (10) (59) FY16 FY17 FY18 Q4 FY19 FY19 FY16 FY17 FY18 Q4 FY19 FY19 Operating Cash Flow: PBT+ Depreciation- Free Cash Flow: Operating Cash Flow – Capital (Changes in working capital) + adj
Slide 22: Financial Performance Trends – Key Ratios
Financial Performance Trends (Key Ratios) ROE ROCE 22% 37% 21% 15% 25% 11% 16% 12% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Investor Presentation May 2019 22
Slide 23: Business Background Details
Business Background Details
Slide 24: Product Profile
Product Profile FASHION JEWELLERY FASHION ACCESSORIES LIFESTYLE PRODUCTS Bracelets Watches Home Décor Bangles Handbags Bed linens Earrings Scarves, etc. Pillow Covers Studded jewelry, etc. Beauty products Investor Presentation May 2019 24
Slide 25: Branding Initiative
Branding Initiative Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation May 2019 25
Slide 26: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding China: Guangzhou, Haifeng, India: Hauadu Shenzhen, In-House designers & craftsmen Noida, Jaipur, Dongguan, Zhuji, Sourcing from appropriate Nagaland, Kashmir Wenzhou, Wuzhou, No middlemen micro-markets in China/Asia
Slide 27: Manufacturing
Manufacturing Four ISO 9001:2008 facilities in Jaipur, with capacity of producing 6 million units annually Commenced operations at new 100,000 sq. ft., fully-integrated, LEED certified ‘Gold Level’ building at SEZ, Jaipur Diamond manufacturing and sourcing unit of the company is also present in Mumb
Slide 28: TV Networks – USA
TV Networks – USA (Consumption Markets) Shop LC, USA 75 million households shopping (FTE, out of 120 mn) Based out of Austin, Texas USA Almost 500 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions Successfully re-branded Liquidation Channel to
Slide 29: TV Networks – UK
TV Networks – UK (Consumption Markets) The Jewellery Channel (TJC), United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of London Over 150 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions State-of-the-art auction/schedul
Slide 30: Retail Format – E-Commerce
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.ShopLC.com USA Launched Mobile App for Shop LC Launched Budget Pay EMI option Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on all socia
Slide 31: Early Adopters And Cord Cutters
Early Adopters And Cord Cutters High Definition And IP Expansion Into Over The Smart Tv And Streaming Broadcast Air Presence (Ota) Devices (Iptv) High Definition Cord Cutters don’t We already have Broadcast want to pay for any presence on o Charter channel or satellite following Smart Communication
Slide 32: Delivering Joy to Stakeholders – Employees, Customers
Delivering Joy to Stakeholders • High quality products Customers • Exotic designs • Lowest Price Guarantee – high quality, high affordability • Omni-channel access – available on TV, Web and Mobile platforms • Budget Pay (monthly installments) available on higher value products • Easy Returns availa
Slide 33: Delivering Joy to Stakeholders – Environment
Delivering Joy to Stakeholders Investors Year 2017 2018 2019 22% 37% Rank #219 #162 #147 ROE ROCE Environment • Solar power projects to meet ~50% of power requirement in Indian operations (current + planned solar power project) • Invested in sewage treatment, recycling biodegradable/plastic/e-waste,
Slide 34: Management Team
Management Team Mr. Sunil Agrawal Puru Aggarwal Managing Director Group CFO An MBA from Columbia University, NY (USA), Sunil Over 25 years of rich experience in business modeling, established Vaibhav in 1980 as a first generation financial strategy & planning, business development, entrepreneur and
Slide 35: Management Team
Management Team Jeff Allar Raj Singh Group Senior Vice President, HR Vice President, Supply Chain, VGL Group Over 30 years of work experience at major international Mr. Raj Singh is a graduate in Chemistry and trained in companies including IBM, Unilever and the Stonyfield Farm Mechanical Maintenanc
Slide 36: Management Team
Management Team Amit Agarwal Vivek Jain Managing Director – TJC, UK Senior Director, Finance – VGL Group MBA marketing with over 16 years of experience with A Chartered Accountant with over 16 years’ experience in different companies like BSL Ltd , Siddhartha Marble and Finance, Banking, Accounts, B
Slide 37: Contact Information
Contact Information For more information on Puru Aggarwal Vaibhav Global Limited Vaibhav Global Limited, +91-141-2770648 Dipti Rajput please contact: Puru.Aggarwal@vglgroup.com Dipti.Rajput@vglgroup.com Shiv Muttoo CDR India +91 22 6645 1207/1220 Karl Kolah shiv@cdr-india.com karl@cdr-india.com Inve
Slide 38: Thank You
Thank You