Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q1 FY2016 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, July 2015
Slide 1: Vaibhav Global Limited Financial Results Presentation Q1 FY2016
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q1 FY2016 July 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 • 105 million (FTE) households on TV shopping in the US, UK
Slide 4: Table of Contents
Table of Contents Q1 FY16 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for Q1 FY16
Key Highlights for Q1 FY16 Home TV Network Reaches Over 100 Million Households, FTE Increases 10% • 105 million households on full time equivalent (FTE) basis • 25 million households in the UK • 78 million households in the US • 2.4 million households in Canada In Q1FY16, Retail Volumes stable at 2.
Slide 6: Chairman's Message
Chairman’s Message Commenting on Q1 FY16 performance, Mr. Sunil Agrawal, Chairman and Managing Director, Vaibhav Global said: “Continuing to strengthen our customer experience, we have recently rolled out our new, advanced mobile website on SAP/HYBRIS platform which can be accessed from any mobile d
Slide 7: Financials – Q1 FY16 Performance (Revenues)
Financials – Q1 FY16 Performance (Revenues) Revenues (Rs. crore) 302 276 Q1 FY15 Q1 FY16 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 209 207 59 54 34 15 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 7
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 1,499 25 22 1,422 • Web sales contribute 30% of sales volume in Q1 FY16 • Potential drivers: expansion of TV Q1 FY15 Q1 FY16 Q1 FY15 Q1 FY16 homes under coverage and launch of new mobile app Web Sales • TV ASP decreas
Slide 9: Financials – Q1 FY16 Performance (Margins)
Financials – Q1 FY16 Performance (Margins) Rs. crore Gross Profit Gross margin 200.00 67% 70% 62% 65% 60% 55% 150.00 50% • Significant reduction in B2B sales of 45% rough stones and addition of import duty to the end of quarter inventory resulted in 40% higher gross margins. 35% 187 185 100.00 30% Q
Slide 10: Financials – Q1 FY16 Performance (Profits)
Financials – Q1 FY16 Performance (Profits) Rs. crore PAT PAT margin 60.00 9.0% 7.2% • PAT is lower due to lower topline, higher 40.00 6.0% tax and depreciation cost 2.6% 20.00 3.0% 22 7 - 0.0% Q1 FY15 Q1 FY16 * Profit after tax without exchange gain(loss) fluctuation. Return Ratios – Q1FY16 80% 70%
Slide 11: Table of Contents
Table of Contents Q1 FY16 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) 1,298 1,376 893 647 276 FY12 FY13 FY14 FY15 Q1 FY16 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 911 958 687 483 225 256 162 161 117 91 89 207 73 54 15 FY12 FY13 FY14 FY15 Q1 FY12 FY13 FY14 FY15 Q1 FY12 FY13 FY14 FY15 Q1 FY16
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 3,268 23 24 22 1,499 • TV ASP reduced owing to FY12 FY13 FY14 FY15 Q1 FY12 FY13 FY14 FY15 Q1 discontinuation of high price point FY16 FY16 products Web Sales Sales Volumes ('000s) Average selli
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 900 67% 68% 800 66% 700 64% 600 • Gross margins increased in Q1 due to 500 61% 61% 62% 60% lower B2B rough sales and addition of 400 59% 60% import duty into stock value at channels 300 58% 200 100 56% 384 533 789 838 185 0
Slide 15: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 180 14% 160 12% 12% 12% 140 10% 120 8% 8% 8% 100 80 6% 60 3% 4% 40 2% 20 79 78 153 103 7 0 0% FY12 FY13 FY14 FY15 Q1 FY16 Rs. per share EPS 48 32 25 24 2 FY12 FY13 FY14 FY15 Q1 FY16 15
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 328 333 203 265 233 116 159 66 77 58 FY12 FY13 FY14 FY15 Q1 FY16 FY12 FY13 FY14 FY15 Q1 FY16 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due • During FY13 fixed assets we
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 52 66 26 34 10 FY12 FY13 FY14 FY15 Q1 -7 FY16 FY12 FY13 FY14 FY15 Q1 FY16 *Includes Foreign Currency Transaction Reserve *Includes Foreign Currency Transaction Reserve Operating cash fl
Slide 18: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) ROE ROCE 68% 60% 65% 44% 37% 34% 36% 31% 27% 23% FY12 FY13 FY14 FY15 Q1 FY16 FY12 FY13 FY14 FY15 Q1 FY16 18
Slide 19: Table of Contents
Table of Contents Q1 FY16 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 78 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 • Technology enhancements: – Hybris (a SAP company) platform implemented in US. – Mobile app started for TJC UK – IPTV apps developed for Google TV, LG TV, Samsung TV
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 Chairman and Managing Director Established Vaibhav in 1980 as a first generation entrepreneur and has led the company’s transition into a leading brand for fashion jewelry and lifestyle accessories Travels extensively across the world, overseeing operations, sourcin
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: Anshuman Khandelwal Vaibhav Global Ltd. Tel: +91-141-2770648 Email:Anshuman.Khandelwal@vaib Dhruv Samel havglobal.com Vaibhav Global Limited Tel: + 91-141-2770648 Email: dhruv.samel@vglgroup.com Shiv Muttoo / Karl Ko
Slide 31: Thank You
Thank You 31