Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY2019 Earnings Presentation
37 slides from Vaibhav Global's earnings presentation, Jan 29, 2019
Slide 1: Cover letter to stock exchanges: Financial Results Presentation
(V2 V AIBHA V GLOBAL LIMITED Ref: VGl/CS/2019/24 Date: 29th January, 2019 National Stock Exchange of BSElimited India limited (NSE) Phiroze JeejeeBhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Bandra Kurla Complex, Mumbai - 400001 Bandra, Mumbai - 400051 Scrip Code: 532156 Symbol: VAIBHAVG
Slide 2: Financial Results Presentation – Q3 & 9M FY2019
Global Retailer of Fashion Jewelry, Accessories and Lifestyle products on Home Shopping TV and Vaibhav Global Limited e-Commerce Platforms Financial Results Presentation – Q3 & 9M FY2019
Slide 3: 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 fro
Slide 4: B2C Success in Developed Markets
B2C Success in Developed Markets Products Sold TV Homes Avg. Quantity per Customer On TV and Web Directly Accessed (FTE) *TTM Unique Customers *TTM ROE *TTM ROCE *TTM Revenue PAT Free Cash Flow Investor Presentation Q3 FY2019 3
Slide 5: End-to-end B2C business model for fashion and lifestyle accessories
100 million (FTE) households on TV shopping in the US and UK; expanding End-to-end B2C business model for online presence Vertically- fashion and lifestyle accessories Shop LC and Positive customer engagement metrics – Proprietary TV home-shopping and integrated TJC are brands customer base, retenti
Slide 6: Manufacturing, Sourcing and Consumption Markets
Manufacturing and Consumption Markets Souring Markets STS, China Sourcing USA STS Hong Kong TV channel retail Sourcing E-commerce website The Jewellery Channel, UK Sub-contracting & Apps TV channel retail Marketplaces E-commerce website & Apps Marketplaces STS Thailand Sourcing USA VGL India B2B Who
Slide 7: Table of Contents
Table of Contents Q3 & 9M FY19 Financial Business Financial 07 Performance 15 Background 23 Performance Trends Details Investor Presentation Q3 FY2019 6
Slide 8: Q3 & 9M FY19 Financial Performance
Q3 & 9M FY19 Financial Performance
Slide 9: Key Highlights for Q3 FY19
Key Highlights for Q3 FY19 Home TV Network Reach – 100 Mn Households across US and UK Operating Highlights in Q3 & 9M FY19 100 million households on full time equivalent (FTE*) basis Driving forward on its quality journey, Shop LC is preparing to apply 75 million households in the US for the Malcolm
Slide 10: Chairman’s Message
“I am happy to share that Q3FY19 has been a milestone quarter for VGL where Chairman’s Message revenues exceeded Rs. 500 crore and profits exceeded Rs. 50 crore. We have delivered a strong performance on all key matrices during the holiday season. We sold close to three million units on our symbioti
Slide 11: Financials – Q3 & 9M FY19 Performance: Revenue Breakdown
Financials – Q3 & 9M FY19 Performance (Revenue Breakdown – Rs. crore) Revenue Jewelry & Lifestyle Products 1,352 1,147 TV Sales Web Sales B2B 874 357 134 122 740 273 462 511 67 335 148 282 111 28 Q3 Q3 9M 9M Q3 Q3 9M 9M Q3 Q3 9M 9M Q3 Q3 9M 9M FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 F
Slide 12: Revenue Breakdown - Local Currency
Financials – Q3 & 9M FY19 Performance (Revenue Breakdown - Local Currency) Shop LC (USD million) TJC UK (GBP million) 126.0 116.1 38.8 30.7 44.5 48.8 15.2 12.2 Q3 FY18 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q3 FY19 9M FY18 9M FY19 Investor Presentation Q3 FY2019 11
Slide 13: Retail Performance Trends – Q3 & 9M FY19
Retail Performance Trends – Q3 & 9M FY19 (Volume and ASP) TV Sales Sales Volume ('000s) Average Selling Price US$ 4,778 26.1 26.3 26.3 4,342 24.6 1,666 1,919 Q3 FY18 Q3 FY19 9M FY18 9M FY19 Q3 FY18 Q3 FY19 9M FY18 9M FY19 Web Sales Sales Volume ('000s) Average Selling Price US$ 2,505 21.5 2,086 21.2
Slide 14: Financials – Q3 & 9M FY19 Performance: Margins
Financials – Q3 & 9M FY19 Performance (Margins) Gross Profit Gross Margin (%) Gross Profit Gross Margin (%) 62.4% 64.0% 57.4% 61.2% 265 327 702 844 Q3 FY18 Q3 FY19 9M FY18 9M FY19 EBITDA EBITDA Margin (%) EBITDA EBITDA Margin (%) 13.9% 12.6% 10.3% 13.4% 62 71 118 171 Q3 FY18 Q3 FY19 9M FY18 9M FY19
Slide 15: Financials – Q3 & 9M FY19 Performance: Profits
Financials – Q3 & 9M FY19 Performance (Profits) PAT PAT Margin (%) PAT PAT Margin (%) 10.3% 8.9% 9.9% 7.0% 46 53 81 122 Q3 FY18 Q3 FY19 9M FY18 9M FY19 EPS (Rs.) 37.33 24.75 13.99 16.11 Q3 FY18 Q3 FY19 9M FY18 9M FY19 Investor Presentation Q3 FY2019 14
Slide 16: Financial Performance Trends
Financial Performance Trends
Slide 17: Financials Performance Trends: Revenue Breakdown
Financials Performance Trends (Revenue breakdown - Rs. crore) Revenue 1,436 1,569 1,276 1,352 1,147 FY16 FY17 FY18 9M FY18 9M FY19 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 372 357 931 972 996 274 273 190 201 874 223 740 134 122 122 FY16 FY17 FY18 9M FY18 9M FY19 FY16 FY17 FY18 9M FY
Slide 18: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volume ('000s) Average Selling Price US$ 5,854 5,877 5,737 26.9 4,778 26.3 26.3 4,342 24.9 24.4 FY16 FY17 FY18 9M FY18 9M FY19 FY16 FY17 FY18 9M FY18 9M FY19 Web Sales Sales Volume ('000s) Average Selling Price US$ 2,840 2,353 2,505 20.3 20.2 20.5 2,264 2,086
Slide 19: Financials Performance Trends: Margins
Financials Performance Trends (Margins) Gross Profit Gross Margin (%) 60% 59% 62.4% 63% 61.2% 804 865 929 702 844 FY16 FY17 FY18 9M FY18 9M FY19 EBITDA EBITDA Margin (%) 12.6% 10% 7% 10.3% 6% 75 102 159 118 171 FY16 FY17 FY18 9M FY18 9M FY19 Investor Presentation Q3 FY2019 18
Slide 20: Financials Performance Trends: Profits
Financials Performance Trends (Profits) PAT PAT Margin (%) 7% 8.9% 7.0% 4% 3% 40 65 113 81 122 FY16 FY17 FY18 9M FY18 9M FY19 EPS 12.27 19.85 34.55 24.75 37.33 FY16 FY17 FY18 9M FY18 9M FY19 Investor Presentation Q3 FY2019 19
Slide 21: Financial Performance Trends: Balance Sheet
Financial Performance Trends (Balance Sheet - Rs. crore) Shareholders’ Equity Fixed assets including intangibles 129 662 126 550 434 120 379 114 FY16 FY17 FY18 9M FY19 FY16 FY17 FY18 9M FY19 Net Debt Net Current Assets 55 417 394 6 305 314 (13) (154) FY16 FY17 FY18 9M FY19 FY16 FY17 FY18 9M FY19 Inv
Slide 22: Financial Performance Trends: Cash Flow
Financial Performance Trends (Cash Flow – Rs. crore) Operating Cash flow Free Cash Flow 171 158 88 76 58 73 36 18 (10) (59) FY16 FY17 FY18 Q3 FY19 9M FY19 FY16 FY17 FY18 Q3 FY19 9M FY19 Operating Cash Flow: PBT+ Depreciation- Free Cash Flow: Operating Cash Flow – Capital (Changes in working capital)
Slide 23: Financial Performance Trends: Key Ratios
Financial Performance Trends (Key Ratios) ROE ROCE 23% 37% 21% 15% 25% 11% 16% 12% FY16 FY17 FY18 9M FY19 FY16 FY17 FY18 9M FY19 Investor Presentation Q3 FY2019 22
Slide 24: Business Background Details
Business Background Details
Slide 25: Product Profile
Product Profile FASHION JEWELLERY FASHION ACCESSORIES LIFESTYLE PRODUCTS Bracelets Watches Home Décor Bangles Handbags Bed linens Earrings Scarves, etc. Pillow Covers Studded jewelry, etc. Beauty products Investor Presentation Q3 FY2019 24
Slide 26: Branding Initiative
Branding Initiative Developing new brands and brand ambassadors for live presentation of BRANDS Investor Presentation Q3 FY2019 25
Slide 27: Sourcing
Sourcing Global supply chain capability of 12 million pieces, continuously expanding China: Guangzhou, Haifeng, India: Hauadu Shenzhen, In-House designers & craftsmen Noida, Jaipur, Dongguan, Zhuji, Sourcing from appropriate Nagaland, Kashmir Wenzhou, Wuzhou, No middlemen micro-markets in China/Asia
Slide 28: Manufacturing
Manufacturing Four ISO 9001:2008 facilities in Jaipur, with capacity of producing 6 million units annually Commenced operations at new 100,000 sq. ft., fully-integrated, LEED certified ‘Gold Level’ building at SEZ, Jaipur Diamond manufacturing and sourcing unit of the company is also present in Mumb
Slide 29: TV Networks – USA
TV Networks – USA (Consumption Markets) Shop LC, USA 75 million households shopping (FTE, out of 120 mn) Based out of Austin, Texas USA Almost 500 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions Successfully re-branded Liquidation Channel to
Slide 30: TV Networks – UK
TV Networks – UK (Consumption Markets) The Jewellery Channel (TJC), United Kingdom 25 million households shopping(FTE, out of 25 mn) Based out of London Over 150 people in sales & marketing, customer service, logistics, TV production, e-commerce and support functions State-of-the-art auction/schedul
Slide 31: Retail Format: E-Commerce
E-Commerce (Consumption Markets) E-commerce presence in our chosen retail markets… www.ShopLC.com USA Launched Mobile App for Shop LC Launched Budget Pay EMI option Better website optimization on mobile devices Migration of Web Hosting to Amazon Web Services Enhanced customer engagement on all socia
Slide 32: Early Adopters And Cord Cutters
Early Adopters And Cord Cutters High Definition And Ip Expansion Into Over The Smart Tv And Streaming Broadcast Air Presence (Ota) Devices (Iptv) High Definition Cord Cutters don’t We already have Broadcast want to pay for any presence on o Charter channel or satellite following Smart Communication
Slide 33: Management Team
Management Team Mr. Sunil Agrawal Puru Aggarwal Chairman & Managing Director Group CFO An MBA from Columbia University, NY (USA), Sunil Over 25 years of rich experience in business modeling, established Vaibhav in 1980 as a first generation financial strategy & planning, business development, entrep
Slide 34: Management Team
Management Team Jeff Allar Raj Singh Group Senior Vice President, HR Vice President, Supply Chain, VGL Group Over 30 years of work experience at major international Mr. Raj Singh is a graduate in Chemistry and trained in companies including IBM, Unilever and the Stonyfield Farm Mechanical Maintenanc
Slide 35: Management Team
Management Team Amit Agarwal Vivek Jain Managing Director – TJC, UK Senior Director, Finance – VGL Group MBA marketing with over 16 years of experience with A Chartered Accountant with over 16 years’ experience in different companies like BSL Ltd , Siddhartha Marble and Finance, Banking, Accounts, B
Slide 36: Contact Information
Contact Information For more information on Puru Aggarwal Vaibhav Global Limited Vaibhav Global Limited, +91-141-2770648 Dipti Rajput please contact: Puru.Aggarwal@vglgroup.com Dipti.Rajput@vglgroup.com Shiv Muttoo CDR India +91 22 6645 1207/1220 Karl Kolah shiv@cdr-india.com karl@cdr-india.com Inve
Slide 37: Thank You
Thank You