Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2015 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, May 2015
Slide 1: Vaibhav Global Limited Financial Results Presentation Q4 & FY15
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q4 & FY15 May 2015
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: VGL Overview
VGL Overview Vertically-integrated electronic retailer • End-to-end B2C business model in the electronic retail industry • Proprietary TV home-shopping and e-commerce platforms Liquidation Channel and The Jewellery Channel are strong brands • 100 million (FTE) households on TV shopping in the US, UK
Slide 4: Table of Contents
Table of Contents Q4 & FY15 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for Q4 & FY15
Key Highlights for Q4 & FY15 Home TV Network Reaches Over 100 Million Households, FTE Increases 5% • 100 million households on full time equivalent (FTE) basis • 25 million households in the UK • 72 million households in the US • 2.3 million households in Canada In FY15, Retail Volumes Improve 4.4%
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q4 & FY15 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “During the year, we made some key investments to further strengthen our operations that we believe will cement our position as a global retailer of high repute. We outsour
Slide 7: Financials – Q4 & FY15 Performance (Revenues)
Financials – Q4 & FY15 Performance (Revenues) Revenues (Rs. crore) 1,298 1,376 360 359 Q4 FY14 Q4 FY15 FY14 FY15 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 958 225 256 237 248 162 161 67 72 56 39 Q4 FY14 Q4 FY15 FY14 FY15 Q4 FY14 Q4 FY15 FY14 FY15 Q4 FY14 Q4 FY15 FY14 FY15 7
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 6,829 23 24 23 22 6,420 1,644 1,796 Q4 Q4 FY14 FY15 Q4 Q4 FY14 FY15 • Web sales now contribute 30% of sales FY14 FY15 FY14 FY15 volume in FY15. • Volume growth driven by expansion of Web Sales fashion jewelry and life
Slide 9: Financials – Q4 & FY15 Performance (Margins)
Financials – Q4 & FY15 Performance (Margins) Rs. crore Gross Profit Gross margin 900 70% 800 61% 65% 61% 700 58% 59% 60% 600 55% 500 50% • Gross margins largely stable. 400 45% 300 200 40% 100 35% 210 211 789 838 0 30% Q4 FY14 Q4 FY15 FY14 FY15 Note: Direct costs for calculation of gross profit incl
Slide 10: Financials – Q4 & FY15 Performance (Profits)
Financials – Q4 & FY15 Performance (Profits) Rs. crore PAT * PAT margin 100 18% 80 15% • PAT is lower due to higher tax and 10% 12% depreciation cost. 60 10% 7% 9% 40 6% 6% 20 3% 34 21 133 101 - 0% Q4 FY14 Q4 FY15 FY14 FY15 * Profit after tax without exchange gain(loss) fluctuation. Return Ratios –
Slide 11: Table of Contents
Table of Contents Q4 & FY15 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) 1,376 1,298 893 647 526 FY11 FY12 FY13 FY14 FY15 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 958 687 483 256 395 225 162 161 117 85 91 89 46 73 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 1
Slide 13: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 6,829 6,420 41 5,239 30 • Good volume growth driven by strong 3,268 23 24 23 customer engagement 2,039 • ASP has been stable even with portfolio transition from fine jewelry to fashion FY11 FY12 FY13 FY14 FY15 FY11 FY
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 900 61% 62% 61% 800 60% 61% 700 59% 60% 59% 600 58% • Gross margins improved from 55% to 500 61% over a period of 5 years 57% 400 55% 56% 300 55% 200 54% 100 53% 289 384 533 789 838 0 52% FY11 FY12 FY13 FY14 FY15 Rs. crore E
Slide 15: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 12% 12% 160 12% 140 10% 120 8% 8% 8% • Margin impact due to taxes in 14-15 100 8% and lower EBITDA 80 6% 60 4% 40 2% 20 42 79 78 153 103 0 0% FY11 FY12 FY13 FY14 FY15 Rs. per share EPS 48 32 25 24 13 FY11 FY12 FY13 FY14 FY15 15
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 205 203 328 265 205 233 159 66 77 58 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 * 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 66 52 41 35 34 26 FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 *Includes Foreign Currency Transaction Reserve *Includes Foreign Currency Transaction Reserve Key usage areas for cas
Slide 18: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) ROE ROCE 68% 60% 65% 44% 37% 34% 36% 31% 23% 15% FY11 FY12 FY13 FY14 FY15 FY11 FY12 FY13 FY14 FY15 18
Slide 19: Table of Contents
Table of Contents Q4 & FY15 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 19
Slide 20: 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 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 • Towels, etc. 21
Slide 22: 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 75 million (FTE) of the 116 million households in the US 22
Slide 23: 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 23
Slide 24: E-Commerce
E-Commerce • Digital presence through liquidationchannel.com and thejewellerychannel.tv • Retail formats: – Catalog – Rising Auctions • Loyal visitor base driving e-commerce traffic: – Liquidationchannel.com has Alexa rank of 4,163 in US – Thejewellerychannel.tv has Alexa rank of 7,431 in UK • Techn
Slide 25: Sourcing Markets
Sourcing Markets Manufacturing facility in Jaipur, India Production Capacity (3 units) –4 million pieces p.a. ISO 9001:2008 manufacturing facilities Additional Capacity –SEZ Green Building with Gold Level facility of 65,000 sq ft Over 2,200 people in India across corporate, manufacturing, design, sa
Slide 26: Consumption Markets
Consumption Markets Access to over 100 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 27: 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 28: Management Team
Management Team Sunil Agrawal Hemant Sultania Chairman and Managing Director Group Chief Financial Officer Established Vaibhav in 1980 as a first generation 17 years of rich experience in strategic financial entrepreneur and has led the company’s transition planning, budgeting, project evaluatio
Slide 29: Management Team
Management Team Gerald Tempton Colin Wagstaffe President, The Liquidation Channel USA Managing Director, The Jewellery Channel UK Previously led retail marketing and ecommerce Leading VGL’s US retail business for the last four years initiatives at UK and Ireland operations of Signet Distinguis
Slide 30: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Hemant Sultania Vaibhav Global Ltd. Tel: +91-141-2770648 Email: Hemant@vglgroup.com Dhruv Samel Vaibhav Global Limited Tel: + 91-141-2770648 Email: dhruv.samel@vglgroup.com Shiv Muttoo / Karl Kolah CDR India Tel: +91
Slide 31: Thank You
Thank You 31