Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2016 Earnings Presentation
32 slides from Vaibhav Global's earnings presentation, May 2016
Slide 1: Vaibhav Global Limited Financial Results Presentation Q4 & FY2016
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q4 & FY2016 May 2016
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 fashion retailer on electronic retail platforms • End-to-end B2C business model for fashion and lifestyle accessories • Proprietary TV home-shopping and e-commerce platforms Liquidation Channel and Jewellery Channel are strong brands • 110 million (
Slide 4: Table of Contents
Table of Contents Q4 & FY16 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for Q4 & FY16
Key Highlights for Q4 & FY16 Home TV Network Reaches 110 Million Households, FTE Increases 11% • 110 million households on full time equivalent (FTE) basis • 25 million households in the UK • 79.6 million households in the US • 5.4 million households in Canada FY16 Retail Volumes at 8.1 Million Unit
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q4 & FY16 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “In FY16, we have managed to deliver some significant transitions in a tough business environment. Over the year, we have successfully implemented technology platform impro
Slide 7: Financials – Q4 & FY16 Performance (Revenues)
Financials – Q4 & FY16 Performance (Revenues) Revenues (Rs. crore) 1,376 1,276 359 347 Q4 FY15 Q4 FY16 FY15 FY16 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 958 932 256 248 244 223 161 72 60 121 39 44 Q4 FY15 Q4 FY16 FY15 FY16 Q4 FY15 Q4 FY16 FY15 FY16 Q4 FY15 Q4 FY16 FY15 FY16 7
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 28 24 6,829 22 23 • Multiple customer engagement and 5,854 visibility initiatives have been established across operations. Initiatives are working, direction is 1,796 1,298 good but the pace has been slower than our e
Slide 9: Financials – Q4 & FY16 Performance (Margins)
Financials – Q4 & FY16 Performance (Margins) Rs. crore Gross Profit Gross margin 900.00 70% 63% 800.00 65% 61% 61% 700.00 59% 60% 600.00 • Conscious increase in realization and 55% gross margin to incorporate Budget Pay 500.00 400.00 50% and returnability. 45% 300.00 200.00 40% 100.00 35% 211 211 83
Slide 10: Financials – Q4 & FY16 Performance (Profits)
Financials – Q4 & FY16 Performance (Profits) Rs. crore PAT * PAT margin 100 18.0% 80 15.0% • PAT is lower due to lower than expected 12.0% topline and higher depreciation cost 60 7.3% 9.0% 40 5.9% 6.0% 2.4% 2.9% 20 3.0% 21 8 101 37 - 0.0% Q4 FY15 Q4 FY16 FY15 FY16 * Profit after tax without exchange
Slide 11: Table of Contents
Table of Contents Q4 & 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 1,276 893 647 FY12 FY13 FY14 FY15 FY16 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 958 932 687 483 225 256 223 162 161 117 91 89 121 73 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY
Slide 13: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 6,829 30 6,420 5,854 24 5,239 23 24 23 3,268 • TV ASP fairly stable, expected to move marginally higher in the coming period FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 owing to returns policy and Budget Pay. We
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 900 64% 63% 800 63% 700 • Gross margins are up due to lower B2B 62% 600 61% sales contribution, improved realizations 61% 500 61% 60% at channels towards costs of returns and 400 60% Budget Pay, and better operational 300 59
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 40 0 0% FY12 FY13 FY14 FY15 FY16 Rs. per share EPS 48 32 25 24 12 FY12 FY13 FY14 FY15 FY16 15
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 367 203 328 265 233 129 159 66 77 58 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due • During FY13 fixed assets were adj
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 34 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 -59 -10 *Includes Foreign Currency Transaction Reserve *Includes Foreign Currency Transaction Reserve Operating cash flow i
Slide 18: Table of Contents
Table of Contents Q4 & FY16 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 18
Slide 19: 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 19
Slide 20: 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. 20
Slide 21: 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 85 million (FTE) of the 116 million households in the US 21
Slide 22: 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 22
Slide 23: 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 24: Early Adopters and Cord Cutters
EARLY ADOPTERS AND CORD CUTTERS HIGH DEFINITION AND IP BROADCAST • High Definition Broadcast • Charter Communication • AT&T • Adoption of new technology of Broadcasting • Reducing dependency on Infrastructure • Minimizing downtime as IP would broadcast it via internet EXPANSION INTO OVER THE AIR PRE
Slide 25: Branding Initiative: Developing new in-house brands
BRANDING INITIATIVE: Developing new In-house brands and brand ambassadors for live presentation BRANDS 25
Slide 26: Sourcing Markets
Sourcing Markets Manufacturing facility in Jaipur, India Production Capacity (3 units) 4 mn pieces p.a. ISO 9001:2008 manufacturing facilities Additional Capacity 2.1 mn pieces p.a. SEZ Green Building with Gold Level facility of 100,000 sq ft Over 2,600 people in India across corporate, manufacturin
Slide 27: Consumption Markets
Consumption Markets Access to over 110 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 28: 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 29: 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 30: Management Team
Management Team Jeff Allar Nitin Dugar Senior Vice President, Group HR Vice President , Strategy – Liquidation Channel USA 30 years of work experience at major international Over 12 years at VGL, rich experience in business companies including IBM, Unilever and the Stonyfield development, custom
Slide 31: 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 32: Thank You
Thank You 32