Pds Limited · NSE:PDSL
Pds — PDS Multinational Fashions — Q1 FY2022 Earnings Presentation
52 slides from Pds's earnings presentation, Aug 4, 2021
Slide 1: Exchange filing cover letter for investor presentation
PDS Multinational Fashions Limited Global, Collaborative. Ethical PDS/SE/2021-22/33 August 4, 2021 Listing Department Corporate Relationship Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1 Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal
Slide 2: PDS Multinational Fashions Ltd Investor Update Q1 FY22
Global, Collaborative , Ethical PDS Multinational Fashions Ltd I N V E S TO R U P D AT E – Q 1 F Y 2 2 Building a sustainable future
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by PDS Multinational Fashions Ltd (“PDS”, “the Company”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or
Slide 4: Table of Contents
Table of Contents Contents 1 PDS - Power of the PDS Platform 4 2 Building a Sustainable Future 5-6 3 PDS’s Sustainability Goals & Initiatives 7-18 4 Business & Financial Performance Overview 19-35 5 Peer Comparison 36-38 6 Shareholders Return 39-40 7 Annexure 41-50 3
Slide 5: Power of the PDS Platform
Power of the PDS Platform With sustainability agenda at its core Key Building Blocks for PDS’s Global Platform 1,626cr 66cr 59cr Q1 FY22 Topline Q1 FY22 EBIT Q1 FY22 PAT ($221mn) ($9mn) ($8mn) INVESTING IN GLOBAL SCALE THE FUTURE END TO END FINANCIAL 68% 3 times 27 times CAPABILITIES STRENGTH 12 Y-o
Slide 6: Building a Sustainable Future
Building a Sustainable Future 1. PDS has created a global footprint and is associated with marquee brands As per Mckinsey article, and retailers “Fashion alone accounts for 4 2. One critical aspect which is closely evaluated by brands and retailers in percent of greenhouse gas their partners is the
Slide 7: Impact of the Fashion Industry
Impact of the Fashion Industry Waste | Emissions | Living Wages | Microfibres and much more Source: CO Expo Masterclass Series 2021 a 92m tons 2% of the people who make of textile waste is created the clothes on our bodies from the fashion industry earn a living wage If the fashion industry were a c
Slide 8: PDS's Sustainability Goals & Initiatives
PDS’s Sustainability Goals & Initiatives 7
Slide 9: Sustainability Goals of the PDS platform
Sustainability Goals of the PDS platform PDS Venture Tech Investments focused on 3 prime areas derived from UN Sustainability Promoting sustainable materials, low impact manufacturing and Development Goals investing in a sharing circular economy Sustainable Communities: Investing in businesses creat
Slide 10: PDS Sustainability Initiatives
PDS Sustainability Initiatives Minimize environmental impact, while sustaining business & communities we serve Digitising processes thereby minimising Supported by Ethical & Technical Digitization Task Force of 41 members led by Building products emissions and waste highly experienced industry exper
Slide 11: Piloting Carbon Neutral Footprint
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing Piloting Carbon Neutral Footprint @ Sri Lanka manufacturing facilities 2021 2022 2023 2024 2025 2030 LEED certified Rain-water 20% energy Net positive harvesting plant intensity renewable reducti
Slide 12: Sustainable manufacturing @ Bangladesh
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing Sustainable manufacturing @ Bangladesh Series of sustainability initiatives carried focussing on empowering women workforce, reducing carbon footprint, preserving natural resources, supporting so
Slide 13: Lilly + Sid: Sustainable brand launched in India
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing Lilly + Sid: Sustainable brand launched in India Lilly + Sid, the organic award-winning British kids wear brand launched in India with an exclusive tie up with Ltlly + std Reliance Retail’s fashi
Slide 14: Sustainability through product innovation (1/2)
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing Sustainability through product innovation (1/2) Biodegradable Jean - "Made to last, Safe to Wear + Traceability built to disappear" 100% our fabrics are certified with Standard 100 by Oeko-Tex® C
Slide 15: Sustainability through product innovation (2/2)
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing THE THE REGULAR ~ RE/FORM PROCESS PROCESS MIINIJAI. /.ASER.. PROCESS TECHNOLOGY Labour· nt n vc process Advanced laser finishing Sustainability c.an comolete 3·4 pa rs of c.wi cornplt up to 10 pa
Slide 16: Building capabilities in the Circular Fashion space
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing Building capabilities in the Circular Fashion space Resale fashion - The future of fashion Resale market is growing 11x faster than traditional retail and expected to be $77bn by 2025 • Yellow Oc
Slide 17: Technological tools providing sustainable solutions
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing Technological tools providing sustainable solutions Enabling cost reduction and lower carbon footprint 3D Design, Sampling & Fit Reduce costs for • Raw material generation • Raw material transpor
Slide 18: PDS Venture Tech Portfolio (1/2)
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing PDS Venture Tech Portfolio (1/2) Focussed on Sustainability and Circular Economy Evrnu is a Research and Development Company offering a suite of innovative technologies that transform post-consum
Slide 19: PDS Venture Tech Portfolio (2/2)
Sustainable Material Circular Fashion Digitization PDS Venture Tech Investments Low Impact Manufacturing PDS Venture Tech Portfolio (2/2) Focussed on Sustainability and Circular Economy Good On You uses consumer power to create a sustainable future – rating fashion brands for their impact on people,
Slide 20: PDS Platform – Business Overview
PDS Platform – Business Overview Sourcing Manufacturing PDS Venture Tech Investments 19
Slide 21: PDS Value Proposition
PDS Value Proposition Global platform for leading apparel brands / retailers across geographies Offers a distinct range of services that empower the brands/retailers and the manufacturers Services offered to brands/retailers Services offered to manufacturers ▪ Product design services led by ▪ Access
Slide 22: Design Led Sourcing Capabilities of the Platform
Sourcing Manufacturing PDS Venture Tech Investments Design Led Sourcing Capabilities of the Platform Immense scalability potential through +500 factory partners Let’s have a look the way we actually conduct ourselves PDS acts as the connecting link between customers and suppliers while providing val
Slide 23: A Well Diversified Base Of Marquee Customers
Sourcing Manufacturing PDS Venture Tech Investments A Well Diversified Base Of Marquee Customers Catering to both offline & online channels TESCO JACK WILLS KOHl!S Superary. PR I MARK' Sainsbury's George. BESTSELLER . TOPSHOP T O P M A N MATALAN asos PULL&BEAR next ~1ANGO RIVER ISLA ND amazon.com UR
Slide 24: Manufacturing capabilities
Sourcing Manufacturing PDS Venture Tech Investments Manufacturing capabilities Performance heading towards profitability (Sales up 85% in Q1, EBIT loss down 38%) c.6,000 Machine Capacity with 130 production lines spread across Bangladesh, Sri Lanka and India Annual in-house production of 36 Million
Slide 25: Rationale for PDS Venture Tech Investments
Sourcing Manufacturing PDS Venture Tech Investments Rationale for PDS Venture Tech Investments PDS is continually exploring opportunities for developing new partnerships and investing in businesses that fit with PDS’s vision 1. Investment opportunities enable PDS to strengthen its focus areas: a. Su
Slide 26: PDS Venture Tech Investments & Others
Sourcing Manufacturing PDS Venture Tech Investments PDS Venture Tech Investments & Others Portfolio allocation PDS Investment Portfolio Rationale for PDS Venture Tech Investments ₹214cr ($29mn) 1. PDS operates in a volatile industry in which customer 17% of total PDS gross capital employed stickines
Slide 27: Q1 FY22 Business & Financial Performance Overview
Q1 FY22 Business & Financial Performance Overview 26
Slide 28: Key Business Highlights
Key Business Highlights 1. Achieved a topline of ₹1,626cr (68% growth compared to Q1 FY21) a) Surpassed pre-Covid (Q1 FY20) levels and are geared for further growth and profitability during the year b) Topline growth in Q1 is driven by Merchandise Value handled by our Sourcing division c) Gross Marg
Slide 29: Key Financial Highlights Q1 FY22
Key Financial Highlights Q1 FY22 3 times growth in EBIT 27 times increase in PAT 68% consolidated topline Gross Margin of growth 17.3% ₹ 66cr ₹ 59cr ₹ 1,626cr vs 16.7% in Q1 FY21 (US$9mn) (US$8mn) (US$221mn) FY20 FY21 FY20 ROCE* ROE* Net Working Capital Gross Debt Reduction 2 days ₹ 141cr 33% 29% vs
Slide 30: Revenue Break up (Q1 FY22)
Revenue Break up (Q1 FY22)* Category wise (% share) Geography wise (% share) ~ - Ladies Wear 37% -- UK & Europe 83% ii .... Men’s Wear 32% North 11% America •••• Children 21% tlft Wear Asia & Middle East 3% Essentials 6% Others 3% Others 4% *Broad Estimates 29
Slide 31: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement ₹ in cr, unless mentioned otherwise Q1 Growth Particulars FY22 FY21 (Y-o-Y) FY21 Income from Operations 1,626 967 68% 6,213 Key Highlights of performance during the quarter COGS 1,345 805 67% 5,185 Gross Profit 281 162 74% 1,028 1. Income from Operations increase
Slide 32: Performance in Q1 over last 5 years
Performance in Q1 over last 5 years Consistently delivered growth & profitability and have exceeded pre-Covid levels Sales (₹cr) Gross Margin (₹cr) 281 1,535 1,626 244 1,315 190 1,037 967 140 162 Q1 FY18 Q1 FY19 Q1 FY20 Q1 FY21 Q1 FY22 Q1 FY18 Q1 FY19 Q1 FY20 Q1 FY21 Q1 FY22 Margin (%) 13.5% 14.4% 1
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Net working capital days are now down to 2 days ₹ in cr, unless mentioned otherwise As on As on Particulars 30-Jun-21 31-Mar-21 30-Jun-20 Particulars 30-Jun-21 31-Mar-21 30-Jun-20 Non-Current Assets 565 594 578 Inventory Days 16 14 16 Current Assets 1,884 1,752 1,730 Debto
Slide 34: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement We continue to deliver cash flow from operations ₹ in cr, unless mentioned otherwise Particulars Quarter Full Year Particulars Quarter Full Year 30-Jun-21 31-Mar-21 30-Jun-21 31-Mar-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Prof
Slide 35: Q1 Performance Across Segments
Q1 Performance Across Segments ₹ in cr, unless mentioned otherwise PDS Venture Sourcing Manufacturing Tech Investments PDS Consolidated 1,558 95 2 Revenue Revenue captured in 1,626 up 65% vs Q1 LY up 85% vs Q1 LY Other Income EBIT 38 -11 41 66 (Including other income) up 9% vs Q1 LY down 38% vs Q1 L
Slide 36: Augmenting the board at PDS and material subsidiary
Other Updates Augmenting the board at PDS and material subsidiary Mr Parth Gandhi Mr. Sunil Srivastav Non-Executive Non-Independent Director Director PDS Multinational Fashions Limited Techno Design HK Limited (Techno Group topline of $71mn in FY21 – c.9% of overall PDS topline) ▪ Senior investment
Slide 37: Peer Comparison
Peer Comparison 36
Slide 38: PDS Sourcing Business (94% of Revenue)
PDS Sourcing Business (94% of Revenue) Our closest global comparable Comparable 1 Comparable 2 Comparable 3 Particulars Switzerland UK France Provides assurance, testing, inspection and Provides testing, inspection and certification Provides testing, inspection and certification certification servic
Slide 39: Our closest domestic comparable platforms
PDS Multinational Fashions Limited Our closest domestic comparable platforms ₹ in cr, unless mentioned otherwise Comparable 1 Comparable 2 B2B apparel B2B consumer B2B digital Particulars – Q1 FY22 platform electronics marketplace Revenue 1,627 1,867 182 Revenue (Y-o-Y Growth %) 68.3% 261.2% 18.6% G
Slide 40: Shareholders Return
Shareholders Return PDS STOCK PRICE PERFORMANCE SINCE LISTING 39
Slide 41: What PDS has achieved since listing
What PDS has achieved since listing PDS Share Price Evolution since Listing 1,600 ▪ PDS Price Evolution Since Listing= XIRR of 31% (BSE SENSEX XIRR: 11%, BSE MidCap XIRR: 14%) 1,400 ▪ Board adopted* a policy of at least 25% payout ratio on May 27, 2021 1,200 1,000 ▪ Board** declared dividend of 49%
Slide 42: Annexure
Annexure 41
Slide 43: Consolidated Profit & Loss
Consolidated Profit & Loss US$ in mn, unless mentioned otherwise Q1 Growth Particulars FY22 FY21 (Y-o-Y) FY21 Income from Operations 220.6 127.4 73% 837.0 COGS 182.4 106.1 72% 698.6 Gross Profit 38.2 21.3 79% 138.4 Gross Margin (%) 17.3% 16.7% 58 bps 16.5% Employee Expense 18.3 9.9 86% 55.8 % of Inc
Slide 44: Consolidated Balance Sheet
Consolidated Balance Sheet US$ in mn, unless mentioned otherwise As on As on Particulars 30-Jun-21 31-Mar-21 30-Jun-20 Particulars 30-Jun-21 31-Mar-21 30-Jun-20 Non-Current Assets 76 81 77 Inventory Days 16 14 16 Current Assets 254 240 229 Debtor Days 45 54 40 Inventories 34 27 28 Payables Days 59 6
Slide 45: Consolidated Cash Flow
Consolidated Cash Flow US$ in mn, unless mentioned otherwise Particulars Quarter Full Year Particulars Quarter Full Year 30-Jun-21 31-Mar-21 30-Jun-21 31-Mar-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 8.3 23.2 Proceeds from borrowings (net) 1.8
Slide 46: Financial Journey of the PDS Platform
Financial Journey of the PDS Platform 45
Slide 47: Historical Financial Performance
Historical Financial Performance Sales (₹cr) Gross Margin (₹cr) 6,213 1,028 4,616 612 Free Cash Flow (FCF) (₹cr) Cumulative FCF for 5 years: ₹502cr (US$ 68 mn) 13.3% 16.5% Cumulative PAT for 5 years: ₹356cr (US$ 50 mn) FY17 FY21 FY17 FY21 296 - EBITDA (₹cr) PAT (₹cr) 75 230 148 FY17 FY21 57 38 1.2%
Slide 48: Deep Dive into Sourcing & Manufacturing Business
Deep Dive into Sourcing & Manufacturing Business Sales (₹cr) EBITDA Margin % FY21 Gross Capital Employed (₹cr) FY21 ROCE %* 6,073 5.3% 4,766 ₹509cr 64% Sourcing 1.8% (US$ 70 mn) 42% of Total Capital FY17 FY21 FY17 FY21 Employed ~100% 96% % of overall PDS sales 285 Manufacturing -26.9% FY21 EBITDA ma
Slide 49: Enhanced Key Leverage and Return Ratios
Enhanced Key Leverage and Return Ratios Net Debt/EBITDA(x) ROCE (Net) %* ROE %* 3.8 27% 22% 8% 7% 0.3 FY17 FY21 FY17 FY21 FY17 FY21 Consistent expansion in EBITDA and Attributable to increase in EBIT with Topline growth, margin expansion reduction in Net Debt translated into the business model conti
Slide 50: Standalone Profit & Loss Statement and Balance Sheet
Standalone Profit & Loss Statement and Balance Sheet ₹ in cr, unless mentioned otherwise Q1 Growth As on Particulars FY22 FY21 (Y-o-Y) FY21 Particulars 30-Jun-21 31-Mar-21 Income from Operations 13.6 5.4 151% 46.1 Non-Current Assets 144 138 COGS 2.9 0.0 15.4 Current Assets 48 55 Gross Profit 10.7 5.
Slide 51: Standalone Cash Flow Statement
Standalone Cash Flow Statement ₹ in cr, unless mentioned otherwise Particulars Quarter Full Year Particulars Quarter Full Year 30-Jun-21 31-Mar-21 30-Jun-21 31-Mar-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 1.5 46.2 Proceeds from borrowings (ne
Slide 52: Together we're building a better, more sustainable supply chain
Together we’re building a better, more sustainable supply chain Abhishekh Kanoi PDS Multinational Fashions Limited For Further Group General Counsel & Company Secretary No. 758 & 759, 2nd Floor, Information, abhishekh.k@pdsmultinational.com 19th Main, Sector-2, HSR Layout, please contact Bangalore-5
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