Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q1 FY2018 Earnings Presentation
32 slides from Vaibhav Global's earnings presentation, September 2017
Slide 1: Vaibhav Global Limited Financial Results Presentation Q1 FY2018
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q1 FY2018 September 2017
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 Shop LC and TJC are brands with strong customer visibility • 107 million (F
Slide 4: Vaibhav Global – Reach
Vaibhav Global – Reach The Jewellery Channel, UK TV channel retail Shop LC, USA E-commerce website TV channel retail E-commerce website STS China, Hong Kong Sourcing Gemstones STS Thailand STS USA Sourcing Gemstones B2B Wholesale distribution STS Bali Sourcing Gemstones VGL India G
Slide 5: Table of Contents
Table of Contents Q1 FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation September 2017 5
Slide 6: Key Highlights for Q1FY18
Key Highlights for Q1FY18 Home TV Network Reach in 107 Mn Households across US and UK • 107 million households on full time equivalent (FTE) basis • 82 million households in the US • 25 million households in the UK Q1FY18 Retail Volumes at 1.9 Million Units, up 10% YoY • Home TV shopping volumes at
Slide 7: Chairman’s Message
Chairman’s Message Commenting on Q1 FY18 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “We continued to deliver healthy performance in the quarter under review with strong retail volume growth of 10% YoY. Reported revenues grew 5% YoY despite the adverse impact
Slide 8: Financials – Q1 FY18 Performance (Revenue Breakdown)
Financials – Q1 FY18 Performance (Revenue Breakdown) Revenue INR Crore 314 330 Q1 FY17 Q1 FY18 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales -1.6% 225 221 57 73 32 36 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Investor Presentation September 2017 8
Slide 9: Retail Performance Trends (Constant Currency Sales-Segment wise)
Retail Performance Trends (Constant Currency Sales-Segment wise) TV Sales TJC GBP million ShopLC USD million 24.9 7.4 24.4 6.5 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Web Sales TJC GBP million ShopLC USD million 9.9 7.2 0.9 1.1 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Investor Presentation September 2017 9
Slide 10: Retail Performance Trends (Volume and ASP)
Retail Performance Trends (Volume and ASP) TV Sales Sales Volume ('000s) Average selling price US$ 1,273 27.2 27.0 1,237 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Web Sales Sales Volume ('000s) Average selling price US$ 626 3% 491 17.5 18.1 Q1 FY17 Q1 FY18 Q1 FY17 Q1 FY18 Investor Presentation September 2017
Slide 11: Financials – Q1 FY18 Performance (Margins)
Financials – Q1 FY18 Performance (Margins) Rs. crore Gross Margin Gross Margin% 250.00 70.0% • Q1 FY18 gross margin is stable based on 200.00 68.0% deep value offering to customers backed by end to end supply chain in India and 150.00 66.0% Southeast Asia 64.0% 64.1% 100.00 64.0% 50.00 62.0% 201 211
Slide 12: Financials – Q1 FY18 Performance (Profits)
Financials – Q1 FY18 Performance (Profits) Rs. Crore PAT * PAT margin 16 15 5.0% 14 4.5% 4.6% 12 11 4.0% 3.5% 10 3.5% 3.0% 8 2.5% 6 2.0% 4 1.5% 2 1.0% - 0.5% Q1 FY17 Q1 FY18 * Profit after tax including exchange gain(loss) fluctuation Rs. per share EPS 5.0 2.7 Q1FY17 Q1FY18 Investor Presentation Sep
Slide 13: Table of Contents
Table of Contents Q1 FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation September 2017 13
Slide 14: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. crore) 1,376 1,277 1,440 1,298 314 330 FY14 FY15 FY16 FY17 Q1 Q1 FY17 FY18 Jewelry & Lifestyle Products TV Sales Rs. crore Web Sales Rs. crore B2B Sales Rs. crore 911 958 932 1,000 256 225 223 250 190 162 161 122 225 221 73 57 32 36 FY14 FY15 FY
Slide 15: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes (‘000s) Average selling price US$ 6,829 6,420 5,854 6,092 27.2 27.0 24.4 24.5 23.5 23.0 1,237 1,273 FY14 FY15 FY16 FY17 Q1 Q1 FY14 FY15 FY16 FY17 Q1 Q1 FY17 FY18 FY17 FY18 Web Sales Sales Volumes (‘000s) Average selling price US$ 2,960 17.4 17.5 18.1
Slide 16: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 1000 65% 64% 900 64% 800 63% 700 63% 600 62% 500 61% 61% 400 61% 60% 300 60% 200 59% 100 789 838 804 867 211 0 58% FY14 FY15 FY16 FY17 Q1 FY18 Note: Direct costs for calculation of gross profit includes material cost, job wo
Slide 17: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 160 12% 12% 140 10% 120 8% 8% 100 80 6% 4.6% 60 4% 3% 4% 40 15 2% 20 153 103 40 58 0 0% FY14 FY15 FY16 FY17 Q1 FY18 * Profit after tax including exchange gain(loss) fluctuation. Rs. per share EPS 47.6 32.0 17.8 12.3 5.0 FY14 FY
Slide 18: Financial Performance Trends (Balance Sheet)
Financial Performance Trends (Balance Sheet) Shareholders’ Equity Fixed assets including intangibles 129 126 123 452 435 378 328 77 233 66 FY14 FY15 FY16 FY17 Q1'18 FY14 FY15 FY16 FY17 Q1'18 Net Debt Net Current Assets 52 330 315 304 55 217 230 6 1 -20 FY14 FY15 FY16 FY17 Q1'18 FY14 FY15 FY16 FY17 Q
Slide 19: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Rs. crore Operating Cash flow* Rs. crore Free Cash Flow * 169 152 129 106 88 58 8 -59 4 -10 FY14 FY15 FY16 FY17 Q1 FY18 FY14 FY15 FY16 FY17 Q1 FY18 Investor Presentation September 2017 19
Slide 20: Table of Contents
Table of Contents Q1 FY18 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 Investor Presentation September 2017 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 • Beauty products Investor Presentation September 2017 21
Slide 22: Branding Initiative: Developing new in-house brands
BRANDING INITIATIVE: Developing new In-house brands and brand ambassadors for live presentation of BRANDS Investor Presentation September 2017 22
Slide 23: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding India In-House designers & craftsmen Noida, Jaipur, Nagaland, No middlemen Kashmir Access to latest manufacturing Indonesia technology Bali, Yogyakarta, Sumatra, Madura Surabaya Scale Flexibility Thailand Low Invest
Slide 24: Manufacturing
Manufacturing Four ISO 9001:2008 facilities in Jaipur, with capacity of producing 7 million 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 25: TV Networks – US & Canada
TV Networks – US & Canada (Consumption Markets) * Channel #274 * Channel #399 & 1399 * Channel #159 Channel #75 & * 226 * Shop LC, USA 82 million households shopping (FTE, out of 120 mn) Based out of Austin, Texas Over 500 people in sales & marketing, customer service, logistics, TV production
Slide 26: TV Networks – UK
TV Networks – UK (Consumption Markets) Channel #49 Channel #815 Channel #650& Channel #757 #652 The Jewellery Channel (TJC), United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of Hampton, Middlesex Over 150 people in sales & marketing, customer service, logistics, TV pr
Slide 27: E-Commerce (Consumption Markets)
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 on web Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on all
Slide 28: 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 29: Management Team
Management Team Sunil Agrawal Puru Aggarwal Chairman and Managing Director Group CFO Established Vaibhav in 1980 as a first generation entrepreneur and has led the company’s transition 25 years of rich experience in business modeling, financial into a leading brand for fashion jewelry and lifest
Slide 30: Management Team
Management Team Jeff Allar Nitin Dugar Senior Vice President, Group HR Vice President , COO – Shop LC, USA Over 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, customer services
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 Ankit Sahay Vaibhav Global Limited +91-141-2770648 Ankit.Sahay@vglgroup.com Shiv Muttoo / Karl Kolah CDR India +91 22 6645 1207/1220 shi
Slide 32: Thank You
Thank You 32