Campus Activewear Ltd. · NSE:CAMPUS
Campus Activewear — FY2022 Earnings Presentation
32 slides from Campus Activewear's earnings presentation, May 31, 2022
Slide 1: Stock exchange filing cover letter
31st May, 2022 To, BSE Limited National Stock Exchange of India Ltd. Corporate Relationship Department Exchange Plaza, C-1, Block G, 1st Floor, New Trading Ring, Rotunda Bandra Kurla Complex, Bandra (East), Building, Mumbai – 400 051 P. J. Towers, Dalal Street, Mumbai – 400 001 SCRIP CODE: 543523 SY
Slide 2: Earnings Presentation FY2022
EARNINGS PRESENTATION FY2022 May 2022
Slide 3: Disclaimer
Disclaimer IMPORTANT: You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Campus Activewear Limited (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows
Slide 4: Table of Contents
Table Of Contents 01 Business Snapshot 02 Business Highlights 03 Business Performance – Q4 & FY22 04 Growth Vectors 05 Appendix 3
Slide 5: Business Snapshot
01 Business Snapshot
Slide 6: India's Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand
CAMPUS - India’s Largest & Fastest Growing Scaled Sports & Athleisure Footwear Brand Revenue from Operations #1 20,000+ FY21: INR 7,112.8 mm Sports & Athleisure (S&A) Retailers across Footwear Brand in India (1) FY22: INR 11,941.8 mm (68% YoY growth) 650+ cities and 28 states ~17% 37.4% EBITDA FY21:
Slide 7: Our Journey to Become India's #1 S&A Footwear Brand
Our Journey to Become India’s #1 S&A Footwear Brand Backward integration initiative – Upper Manufacturing facility at Haridwar Backward integration Inception of the & Successful launch of INR initiative - Sole EBO store count “Campus” Brand On-boarded as investors 3,000+ MRP shoes Manufacturing faci
Slide 8: Product – Placement – Promotion Interplay Generating Business MOAT
Product – Placement – Promotion Interplay Generating Business MOAT Internal Strengths Curated Over the Years Across Product Design, Supply Chain, Distribution and Marketing is Onerous to Replicate Sustained focus on Product Innovation and Design Integrated Manufacturing Ecosystem Exclusive ancillary
Slide 9: Experienced Management & Professional Board at the Helm of Affairs
Experienced Management & Professional Board at the Helm of Affairs Key Management Board of Directors Mr. H.K. Agarwal Mr. Nikhil Aggarwal Raman Chawla ◼ Beam Global Mr. H.K. Agarwal Mr. Nikhil Chairman & CEO & Whole-Time Chief Financial ◼ One of the ◼ One of the ◼ Reckitt Benckiser Managing Director
Slide 10: Business Highlights
02 Business Highlights
Slide 11: Key Pillars of Business MOAT
Key Pillars of Business MOAT 1 Superior Product 2 3 4 5 Vertically Integrated Omni-Channel Customer Innovative Marketing Digitization of Sales Innovation and Design Manufacturing Ecosystem Experience Capabilities Process Capabilities Move from stand-alone trade Annual installed assembly Innovation,
Slide 12: Superior Product Innovation and Design Capabilities
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 1 Superior Product Innovation and Design Capabilities Highly experienced in-house Global Design Consultancy Network team of 50 designers and Design Sourcing Tie-ups Deliver New and Differentiated Offerings for the Indian Mark
Slide 13: Vertically Integrated Manufacturing Ecosystem
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 2 Vertically Integrated Manufacturing Ecosystem Annual Assembly Capacity of 28.8mm pairs (1) Uppers 16.7% ✓ c.90% domestic raw material sourcing Haridwar 83.3% ✓ Exclusive ancillary network Shoe Sole Ability to manufacture 37
Slide 14: Omni Channel Platform to Reach Customers Where They Are
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 3 Omni Channel Platform to Reach Customers Where They Are • Pan-India Distribution Presence Pan India Distribution Presence All-Inclusive Use of E-commerce Channels (20,000 Retail Touchpoints in Established Pan-India sales ne
Slide 15: Strong Brand Recognition & Innovative Marketing
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 4 Strong Brand Recognition & Innovative Marketing Creating India’s Largest S&A Footwear Brand Brand building initiatives among all segments with acceptance levels across target customers groups Marketing Strategy Pivoted away
Slide 16: Digitization of Sales Process Generating a Virtuous Flywheel
Product Design Manufacturing Ecosystem Distribution Marketing Digitization 5 Digitization of Sales Process has Generated a Virtuous Our Data Centric Approach Flywheel enabling Faster Speed to Market allows us to understand 7 1 Consumer Demand Trends, Design & Colour Preferences, Investment in Faster
Slide 17: Business Performance – Q4 & FY22
03 Business Performance – Q4 & FY22
Slide 18: Q4 FY22 & FY22 Full Year – Financial & Business Highlights
Q4 FY22 & FY22 Full Year – Financial & Business Highlights Consolidated In INR mm Consolidated In INR mm Parameters Q4 FY22 Q4 FY21 YOY Growth % Parameters FY22 FY21 YOY Growth % Revenue 3,523.4 2,751.1 28.1% Revenue 11,941.8 7,112.8 67.9% EBITDA 787.1 655.3 20.1% EBITDA 2,439.2 1,198.1 103.6% PAT 3
Slide 19: Q4 and FY22 Financial Highlights (consolidated)
Q4 and FY22 Financial Highlights (consolidated) Revenue from Operations (1) (INR mm) Volume Sold (# mm) Average Selling Price (INR / Pair) 6.6 657 627 4,335.5 5.6 568 573 583 3,523.4 4.8 529 4.6 2,751.1 2,654.3 2.9 2.5 1,513.8 1,428.7 Q4FY20 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q4FY20 Q4FY21 Q1FY22 Q2
Slide 20: Q4 and FY22 Financial Highlights (consolidated)
Q4 and FY22 Financial Highlights (consolidated) Revenue from Operations (1) (INR mm) EBITDA (2) (INR mm) Profit After Tax (3) (INR mm) EBITDA Margin (%) PAT Margin (%) 17.6% 23 .8% 18.4% 17.2% 21.5% 22.3% 6.1% 3.6% 6.2% 8.0% 12.6% 11.2% 4,335.5 933.2 547.2 787.1 3,523.4 655.3 396.1 2,751.1 2,654.3 4
Slide 21: FY22 (Consolidated) Business Highlights
FY22 (Consolidated) Business Highlights Cash Conversion Days (1) Net Debt (2) Day Sales Outstanding INR mm 110 79 69 40 75 1,829.8 1,739.5 66 1,730.0 1,343.9 33 36 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Net Debt (2) / EBITDA Return on Equity (%) Return on Capital Employed (3) (%) 32.9% 1.7 29.7% 1.
Slide 22: Statement of Profit & Loss (Consolidated)
Statement of Profit & Loss (Consolidated) Particulars (INR mm) Q4FY22 Q3FY22 Q4FY21 FY2022 FY2021 Revenue from Operations 3,523.4 4,335.5 2,751.1 11,941.8 7,112.8 Other Income 2.9 4.9 4.8 24.0 38.0 Total Income 3,526.3 4,340.4 2,755.9 11,965.8 7,150.8 Cost of Materials Consumed, including packing ma
Slide 23: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) EQUITY AND LIABILITIES (INR mm) FY22 FY21 ASSETS (INR mm) FY22 FY21 Equity Non-Current Assets Equity Share Capital 1,521.6 1,518.7 Property, Plant and Equipment 2,004.8 2,062.2 Other Equity 2,920.3 1,607.7 Capital Work-in-Progress 24.7 2.5 Non-controlling interests 0.0 3
Slide 24: Q4 and FY22 Revenue: Segmental Analysis
Q4 and FY22 Revenue (Consolidated): Segmental Analysis Trade Distribution Channel 7,432.0 6,412.0 5,548.2 5,352.5 Campus Activewear Limited (Consol.) 11,941.8 FY19 FY20 FY21 FY22 7,320.4 7,112.8 5,948.7 Direct to Consumer Channel FY19 FY20 FY21 FY22 4,437.9 1,748.3 898.5 350.9 FY19 FY20 FY21 FY22 23
Slide 25: Growth Vectors
04 Growth Vectors
Slide 26: Prime Growth Vectors Going Forward
Prime Growth Vectors Going Forward Leverage our Brand and Leadership Position with Enhanced Focus on Women, Children & Kids Steadily Extend into New Territories By Deepening our Presence in Western and Southern Regions of India Further Accentuate our Omni-channel Experience Sustained Focus on Premiu
Slide 27: Appendix: Industry Landscape & Positioning
05 Appendix Industry Landscape & Positioning
Slide 28: India S&A Footwear Market has Attractive Industry Prospects
India S&A Footwear Market has Attractive Industry Prospects Within Indian Retail Industry, Footwear is Expected to be among the fastest Growing segments within the Retail Industry Footwear is Expected to be One of Indian Footwear Market Size Total Addressable Market (FY25P) 12% 15% 19% 21% the Faste
Slide 29: S&A Footwear in India is Highly Underpenetrated
S&A Footwear in India is Highly Underpenetrated Structural Growth Drivers in Place – Increase in Fitness Consciousness and Disposable Income Annual Footwear Consumption Per Capita Annual Expenditure on Share of S&A in Footwear Retail S&A Footwear (pairs per capita) (in US$) India’s Per Capita Footwe
Slide 30: Indian S&A Market has a Long Runway for Growth
Indian S&A Market has a Long Runway for Growth Poised for Similar Growth as Witnessed by Chinese Athleisure Market More Than 15 Years Ago Structural Growth Drivers – Benchmarking Spending on Sports to Increase as Economy Develops Scope for Increase in Sports Participation $63,544 Spending on sports
Slide 31: Widest Presence Across Price Segments
Widest Presence Across Price Segments Largest Market Coverage Addressing 85%+ of the S&A Footwear Market S&A Footwear Revenue Contribution Market (FY21) for CAMPUS INR 90bn FY19 FY22 Premium-Plus Nike (Above INR 3,000) 13% Puma Adidas Priced above INR 1,500 Expansive and Diverse Product Portfolio ac
Slide 32: Thank You
Thank You Investor Relations Desk ird@campusshoes.com 31