Zodiac Clothing Company Limited · NSE:ZODIACLOTH
Zodiac Clothing — Investor Presentation (August 2013)
41 slides from Zodiac Clothing's investor presentation, Aug 29, 2013
Slide 1: an = — a x ”“ > = a < =< pat
an = — a x ”“ > = a < =< pat
Slide 2: Our Signature: The Trinity Button
Our Signature: The vy e rinity Button Patented, Mother of Pearl three hole buttons. The hallmark of finest quality. The House of Zodiac has consistently focused on providing luxury, quality and value to discerning Indian customers. Driven by a passion for excellence,Zodiac is the undisputed leader i
Slide 3: Background
Background Promoted by Mr. MY Noorani, the House of Zodiac commenced operations in 1954 with neckties. It diversified into manufacturing of men's shirts in the 1960's. Vas listed in 1994 as Zodiac Clothing Co. Ltd*. Today, ZCCL* is vertically integrated from design to retail, is highly de-risked and
Slide 4: Pure wool suits
Ze sl a Lg ure wool Suits crafted from alight weight Super 120's, 140's, 1605 & 180s ZODIAC
Slide 5: Snapshot of Drivers of Growth
Snapshot of Drivers of Growth Branded Business Across India and the Middle East Own Retail Business 109 company managed Stores. Being grown aggressively & profitably Design Driven International Business With leading global brands and retailers ¢¢ Vertically integrated (from design to retail) & commi
Slide 6: Sales Break up
Sales Break up cincinnati higentert Retailers Branded IY BS Internation al 51% Company Inmagel stores Sev Retail Chars % Geographical Sales Split Midile East wo Emphasis on aggressive growth of Branded Business & Own Retail in India
Slide 7: ZCCL: Design Driven Philosophy
ZCCL: Design Driven Philosophy @ Our Mumbai office has an Italian inspired, state of the art Design Studio, with a team of over 15 trained designers constantly networking with our international offices and attending trade shows overseas @ \We have our own offices in 3 fashion capitals of the world -
Slide 8: Zodiac finest quality shirtmakers
e ‘MAKERS WAe.”s. FINEST QUAL)TY SHIR
Slide 9: ZCCL: Manufacturing Excellence
ZCCL: Manufacturing Excellence @ Our state of the art and modern automated manufacturing plants are located in Karnataka & Gujarat (India) and Dubai (UAE). @ Capacity to produce over 7 mn shirts per annum. Ve successfully manufacture extremely high work content! value added products. @ 2ZCCL current
Slide 10: Slide 10
Slide 11: ZCCL: Marketing Led Strategies: ZODIAC
ZCCL: Marketing Led Strategies: ZODIAC @ ZODIAC —a premium, classic, men’s wear brand, of the longest standing in India e The brand is positioned for the classic yet contemporary male's wardrobe e ZODIAC's product range has fine wool & pure linen suits & trousers, pure wool Jodhpuris, shirts crafted
Slide 12: ZODIAC
ZODIAC panne FILET Gener y see t
Slide 13: ZOD! - a trendy, fashionable casual wear brand
ZOD! — a trendy, fashionable casual wear brand launched in 2002. e Positioned as Club Wear and enjoys the first— mover advantage. We actually created this category in India. e ZOD! is targeted at socially active, young males who want to dress trendily when they step out in the evening. e Offers a ra
Slide 14: Slide 14
Slide 15: Z3 our recently launched casual wear brand
Z3 our recently launched casual wear brand e Launched in April 2008 just before the world wide down turn & really got a fillip in 2010 post the economic revival in India ® We are now enjoying a wide base of users especially those that do not wear a crisp, formal shirt & a tie to work (Software, Medi
Slide 16: Gu+88g er “mey!
' - sr Gu+88g er “mey!
Slide 17: Slide 17
Slide 18: ZCCL: Retail Focus
ZCCL: Retail Focus ZCCL opened it's first store at the Taj Mahal Hotel in 1973 and this was the beginning of a retail store strategy to open stores at premium locations across India Aggressive scaling up of stores at the right locations ensure a large footfall of premium customers despite volatility
Slide 19: The Branded Biz
The Branded Biz ZRS Count - cltywiss Delhi NCR Chandigarh Dshradun Jalandhar Ludhiana Amritsar Patiala Varanast Lucinow Siliguirt Ranchi Bhubaneshwar Patna © Amritsar Chandigarh *ualandhae anchhula * New Delhi off} eff foal 3 DL | af for] BY] co | ho] = *Agra —* Lucknow * Jaipur * Kanpur *Beneres cn
Slide 20: ZCCL: Retail Focus
ZCCL: Retail Focus 2006 Q1 2014 44% = 56% 73% o Other Channels g Own Retail 20
Slide 21: Amanora - Pune
Amonara - Pune
Slide 22: Express Mall - Chennai
Express Mall - Chennai
Slide 23: Infiniti Andheri - Mumbai
Infiniti Andheri - Mumbai si
Slide 24: ZCCL: De-Risking
*-+¢ ¢ + + *+¢ ¢ ¢ ZCCL: De- Risking The drive to de-risk the business has been consistent. Over 75% of ZCCL's production is pre-sold A International Orders backed by LC or insured @ Branded business orders for MBO & LFS backed with advance cheques Multi-segment: Branded, Own Retail and Design Drive
Slide 25: Significant Events: Apr. - Aug. 2013
Significant Events: Apr. -— Aug. 2013 — Fabric prices: + The depreciation of the Indian Rupee has impacted the cost of fabrics being imported for manufacturing + Moreover the cost of fabric itself has gone up — Input Costs: + The cost of furnace oil, electricity & other raw materials have gone to hi
Slide 26: Significant Events: Apr. - Aug. 2013
Significant Events: Apr. -— Aug. 2013 — Indian Economy & Consumer Demand Has Been Erratic & Volatile Throughout SS 2013 Inflation continues unabated and negative sentiment driven by news on corruption, political instability, likely downgrade of India by rating agencies, poor corporate results and ot
Slide 27: ZCCL's Business
ZCCL’s Business — ZCCL’s design-driven International Business + Order books were erratic but show a healthy position overall — On The Retail Front: + ZCCL has 109 company managed stores as of Aug 2013 - 4 new stores opened between April - Aug 2013 + Our focus is on building this business profitably
Slide 28: The Branded Business
The Branded Business — Our “No Discounting” policy is firmly entrenched + We do not show growth at the cost of eroding brand value — The Apr. — June 13 period Y/Y * Own store sales up (LTL) by 10% & All Stores by approx 14%, which, looking at the overall economic and results of other industries, is
Slide 29: The Branded Business
The Branded Business — During Apr. — Aug. 2013 ZCCL brought Linen across it’s 3 brands in 3 unique looks - ZODIAC: Over the past decade ZODIAC has been the only premium Indian brand that does a focused Linen program. In SS13 we brought a colorful range of shirts, trousers, pochettes, jackets & suits
Slide 30: Slide 30
Slide 31: Slide 31
Slide 32: Z3 Vintage Linens
Z3 Vintage Linens z te
Slide 33: ZOD! Trendy Linen
ZOD! Trendy m Linen
Slide 34: Financial Snapshot (Consolidated)
Financial Snapshot (Consolidated) Income Statement Year ended March 31 3 month: ended June 30 Revenue 35,711 377,53 35,996 6,129 9,201 13. 1596 % growth 9. 1696 5.7% 4 S596 EBITDA 4,120 3,123 3,130 4,01 8,99 % margin 12.05 12.05 9.44 4.30% 10.3996 Net Income 3,318 1,774 1,401 1,02 471 % margin O7t 4
Slide 35: Performance over the last years
Performance over the last 3 years (Consolidated) Overall Revenue (FY) 38,000 37.753 37,500 37,000 36,500 q 35,998 ; 36,000 } 35.711 rs 35,500 35,000 34,500 2011 2012 2013 Overall Revenue (3M) 10,000 3,201 3.000 + 8,129 8.000 - 7.031 7.000 6.000 + (Ps bkis wi ry 8 1,000 + | | = | QlFY12 QlUFY13 QlFY'
Slide 36: Standalone Performance
Standalone Performance Standalone sales (in Rs. lacs) 9,000 7 8.524 8,000 7 71 7.000 7 6.480 6.330 6,000 4 5.000 7 4.000 4 3.000 4 2.000 4 1,000 4 fi) 4QFri2 1QFYI3 2QFY13 3QFYI3 4QFY13 IQ’ FY14 EBITDA margin (%) Net Profit margin (%) 126) 10.7% 9.6% 7% | 8.5% 6x - ex | 7.4% 5. “4 7.0% 5% 4 6%) | 4%
Slide 37: Slide 37
Slide 38: Performance over the last years
Performance over the last 9 years Growing Contribution of Branded Business (Consolidated) ) 49% Growing Contribution of Branded Business in ZCCL (Standalone) 2004 a1 si% Q1 2014 204 35% 43% 57% 5% gp International Sales oO Branded Sales 38
Slide 39: ZCCL: Enhancing Shareholder Value
ZCCL: Enhancing Shareholder Value Corporate Governance e =A distinguished Board of Directors that brings rich and varied experience. e Approx 75% of the Board are independent directors since ZCCL was listed e Audit committee headed by & includes finance veterans ensuring strict financial discipline
Slide 40: Experienced Promoters Distinguished Board of Directors
Experienced Promoters Distinguished Board of Directors + * Mr. Mr. M.Y. Noorani - Chairman & Founder Founder of ZODIAC, Clothing Manufacturers Association of India (and its President for 3 terms) One of the founding fathers of the clothing industry in India, has served onthe managing committee of In
Slide 41: Thank you
Thank you a
Zodiac Clothing Company — Investor Presentation (August 2013) on 6ix