Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2020 Earnings Presentation
32 slides from Vaibhav Global's earnings presentation, May 2020
Slide 1: Financial Results Presentation – Q4 & FY2020
Vaibhav Global Limited Financial Results Presentation – Q4 & FY2020 Global Retailer of Fashion Jewellery, Accessories, Lifestyle and Essential Products on Home Shopping TV and e-Commerce Platforms
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 from
Slide 3: MD's Message
MD’s Message “The year 2020 began on an unexpected and a difficult note with the entire world coming to a standstill due to the spread of the COVID-19 pandemic. Economic activity, manufacturing operations, global supply chains have Commenting on Q4 & FY20 performance, Mr. Sunil been disrupted and co
Slide 4: Covid-19 – VGL Response
Covid-19 – VGL Response Customers Team - VGL Investors Community Continued retail operations Several initiatives Continued focus on Donated ~1,27,500 masks in US & UK undertaken to ensure maintaining a healthy to hospitals/care homes mental, physical and Balance Sheet across US, UK & India Promptly
Slide 5: Business Continuity During Covid-19
Business Continuity During Covid - 19 Global Supply Chain Retail Customers IT Support Robust regional supply chain - wholly Steady traction on retail platforms IT staff created a “Borderless owned subsidiaries/operations in key resulting from expanded product workforce” to support business globally
Slide 6: Table of Contents
Table of Contents Business Q4 & FY20 Financial Background 07 Financial 13 Performance 19 Details Performance Trends Investor Presentation May 2020 6
Slide 7: Business Background Details
Business Background Details
Slide 8: Vertically-integrated fashion retailer
Vertically- End-to-end B2C business model Shop LC and TV Homes accessed (*FTE) - 99 million integrated Significant geographical cost arbitrage TJC are brands Growing online presence fashion retailer Proprietary TV home-shopping and e- with strong Improving customer engagement metrics – on electronic
Slide 9: Adaptative Business Model
Adaptative Business Model FY16 FY20 Mobile sales contributed 60% of web revenue in FY20 19% 33% Omni-channel customer has a higher lifetime value 67% Cord-cutting in the US is addressed through increased outreach on 81% the OTA platforms; deeper penetration in the OTT space FY16 FY20 Non-jewellery c
Slide 10: Omni Channel Sales Platform
Omni Channel Sales Platform USA UK 74 million households 25 million households State-of-the-art auction/scheduling system State-of-the-art auction/scheduling system Shop LC live stream available on multiple platforms like TjC live stream available on multiple platforms like Youtube, Youtube, Faceboo
Slide 11: Mitigating "Cord-Cutting" Trend in the US
Mitigating "Cord-Cutting" Trend in the US VGL’s Target Demographics Still Prefers Watching Traditional Pay-TV Over-the-Air (OTA) Presence Pay -TV Service Subscribers OTA Households (HH) US - OTA HH 2013 2019 88% Shop LC - OTA HH 19 83% 83% 17 64% 13 11 Adults in the age group 18-44 Adults in the age
Slide 12: Global Supply Chain
Global Supply Chain Manufacturing UK Sourcing China • ISO 9001:2008 facilities in • Supply chain capability of 12 Jaipur, Rajasthan million pieces from across the • Fully-integrated building at globe SEZ, Jaipur - IGBC certified • Sourcing from appropriate • Diamond jewelry micro-markets in Asia, Eu
Slide 13: Q4 & FY20 Financial Performance
Q4 & FY20 Financial Performance
Slide 14: Financials – Q4 & FY20 Performance (Revenue Breakdown)
Financials – Q4 & FY20 Performance (Revenue Breakdown – Rs. crore) Fashion Jewelry, Accessories & Lifestyle Products Revenue TV Sales Web Sales B2B 1,986 1,285 633 1,157 147 1,814 510 69 462 498 282 326 153 169 27 3 Q4 Q4 FY19 FY20 Q4 Q4 FY19 FY20 Q4 Q4 FY19 FY20 Q4 Q4 FY19 FY20 FY19 FY20 FY19 FY20
Slide 15: Financials – Q4 & FY20 Performance (Local Currency)
Financials – Q4 & FY20 Performance (Revenue Breakdown - Local Currency) Shop LC (USD million) TJC UK (GBP million) 60.9 192.2 51.4 170.6 44.6 48.7 12.7 14.9 Q4 FY19 Q4 FY20 FY19 FY20 Q4 FY19 Q4 FY20 FY19 FY20 Investor Presentation May 2020 15
Slide 16: Retail Performance Trends – Q4 & FY20
Retail Performance Trends – Q4 & FY20 (Volume and ASP) TV Sales Sales Volume ('000s) Average Selling Price US$ 6,275 6,070 29.9 29.5 26.8 26.4 1,496 1,529 Q4 FY19 Q4 FY20 FY19 FY20 Q4 FY19 Q4 FY20 FY19 FY20 Web Sales Sales Volume ('000s) Average Selling Price US$ 21.9 4,113 21.7 3,522 21.4 20.7 1,01
Slide 17: Financials – Q4 & FY20 Performance (Profits)
Financials – Q4 & FY20 Performance (Profits – Rs. crore) Gross Profit Gross Margin (%) Gross Profit Gross Margin (%) 61.6% 62.7% 60.4% 62.5% 290 301 1,133 1,224 Q4 FY19 Q4 FY20 FY19 FY20 EBITDA EBITDA Margin (%) EBITDA EBITDA Margin (%) 13.9% 12.1% 12.0% 10.1% 47 60 217 276 Q4 FY19 Q4 FY20 FY19 FY20
Slide 18: Financials – Q4 & FY20 Performance (PAT, EPS)
Financials – Q4 & FY20 Performance (Profits – Rs. crore) PAT PAT Margin (%) PAT PAT Margin (%) 8.0% 9.6% 8.5% 7.0% 33 40 154 190 Q4 FY19 Q4 FY20 FY19 FY20 EPS (Rs.) 58.65 47.27 9.95 12.25 Q4 FY19 Q4 FY20 FY19 FY20 Investor Presentation May 2020 18
Slide 19: Financial Performance Trends
Financial Performance Trends
Slide 20: Financials Performance Trends (Revenue)
Financials Performance Trends (Revenue breakdown - Rs. crore) Revenue 1,814 1,986 1,436 1,571 1,276 FY16 FY17 FY18 FY19 FY20 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 1,285 633 1,157 931 972 997 510 190 201 373 122 147 223 274 69 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16
Slide 21: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 6,275 27.0 29.9 6,070 24.4 24.9 26.4 5,854 5,877 5,737 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Web Sales Sales Volume ('000s) Average Selling Price US$ 4,113 20.4 20.7 21.7 3,522 17.5 2,840 15.1 2,264 2,353 F
Slide 22: Financials Performance Trends (Profits)
Financials Performance Trends (Profits – Rs. crore) Gross Profit Gross Margin (%) 61.6% 62.5% 63.0% 60.1% 59.6% 804 865 936 1,133 1,224 FY16 FY17 FY18 FY19 FY20 EBITDA EBITDA Margin (%) 13.9% 12.0% 10.1% 7.1% 5.9% 75 102 159 217 276 FY16 FY17 FY18 FY19 FY20 Investor Presentation May 2020 22
Slide 23: Financials Performance Trends (PAT, EPS)
Financials Performance Trends (Profits – Rs. crore) PAT PAT Margin (%) 9.6% 8.5% 7.2% 3.1% 4.5% 40 65 113 154 190 FY16 FY17 FY18 FY19 FY20 EPS (Rs.) 58.65 47.27 34.55 19.85 12.27 FY16 FY17 FY18 FY19 FY20 Investor Presentation May 2020 23
Slide 24: Financial Performance Trends (Balance Sheet)
Financial Performance Trends (Balance Sheet - Rs. crore) Shareholders’ Equity Fixed assets including intangibles 697 ** 751 ** 163 550 129 126 434 120 117 379 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 55 Net Debt Net Assets *** 6 417 399 ** 394 (13) 305 314 (181) (194) FY16 FY17 FY18 FY19 FY
Slide 25: Financial Performance Trends (Cash Flow)
Financial Performance Trends (Cash Flow – Rs. crore) Operating Cash flow Free Cash Flow 181 176 203 211 70 68 52 61 38 20 (28) FY16 FY17 FY18 FY19 Q4FY20 FY20 (77) FY16 FY17 FY18 FY19 Q4FY20 FY20 Operating Cash Flow: PBT+ Depreciation-(Changes Free Cash Flow: Operating Cash Flow – Capital in working
Slide 26: Financial Performance Trends (Key Ratios)
Financial Performance Trends (Key Ratios) ROE (TTM) ROCE (TTM) 26% 46% 23% 25% 37% 16% 27% 12% 18% 13% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Note - ROE – based on average net worth ROCE – based on average capital employed Investor Presentation May 2020 26
Slide 27: Delivering Joy to Stakeholders – Customers, Employees
Delivering Joy to Stakeholders • Unique Customers – 361,915 (FY20) Customers • Average qty. per customer – 30 pieces (FY20) • High quality products & Exotic designs • Lowest Price Guarantee – high quality, high affordability • Omni-channel access • Budget Pay (monthly installments) available on high
Slide 28: Delivering Joy to Stakeholders – Environment
Delivering Joy to Stakeholders Investors Year 2017 2018 2019 2020 26% 46% Rank #219 #162 #147 #132 ROE ROCE • Solar power projects to meet ~45% of the total power Environment requirement at the manufacturing facilities in Jaipur (current + planned solar power project) • Invested in sewage treatment,
Slide 29: VGL Shareholder Base – As on 31st March, 2020
VGL Shareholder Base – As on 31st March, 2020 Holding as on Shareholding Pattern Key Shareholders (Holding 1%+) Individual - >1% 31-Mar-2020 3.7% Others AIF 6.0% Promoter & Promoter Group 58.6% 1.1% Domestic Nalanda India Fund Limited (FII) 10.4% Institutions (MF, IFI)) Motilal Oswal Multicap 35 Fun
Slide 30: Management Team
Management Team Mr. Sunil Agrawal Mr. Puru Aggarwal Mr. Vineet Ganeriwala Managing Director Group President (Strategy Group CFO & Business Development) Mr. Amit Agarwal Mr. Srikant Jha Mr. Jay Chandran President, Shop LC, US Managing Director, TJC, UK Group Chief Technology Officer Mr. Raj Singh Mr.
Slide 31: Contact Information
Contact Information For more information on Vineet Ganeriwala Vaibhav Global Limited Vaibhav Global Limited, +91-141-2771975 please contact: Dipti Rajput Vineet@vglgroup.com Dipti.Rajput@vglgroup.com Shiv Muttoo CDR India +91 98335 57572 / 98330 10478 Karl Kolah Shiv@cdr-india.com Karl@cdr-india.com
Slide 32: Thank You
Thank You