Pds Limited · NSE:PDSL
Pds — Investor Presentation (June 2022)
44 slides from Pds's investor presentation, Jun 8, 2022
Slide 1: Exchange cover letter for investor presentation
PDSL/SE/2022‐23/140 June 8, 2022 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 Street, Mumbai ‐400 051 Mumbai‐ 400001 Scrip Symbol: PDSL Scrip C
Slide 2: Company Presentation June 2022
Company Presentation June 2022 Strictly Private & Confidential
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by PDS Limited* (“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 supplied should n
Slide 4: Agenda
01 PDS – At A Glance 05 Business & Financial Performance Overview 02 06 PDS Platform Strengths & Stock Price Performance Capabilities 03 Key Takeaways for FY22 07 Way Forward Gearing for a $2.5bn 04 enterprise over the next 4-5 years 08 Annexure 3
Slide 5: PDS Limited At a Glance
PDS Limited At a Glance $1,185 mn $45 mn $39 mn Robust Business Model (₹8,828cr) (₹339cr) (₹293cr) Topline EBIT PAT $0.32 Asset Light Model 38% | 31% Dividend Declared* -ve $5 mn ROCE | ROE 1:5 (-ve ₹41cr) Net Debt Stock Split Announced* -ve Net Debt Balance Sheet +22 +50 3,300+ 5,800+ Countries Off
Slide 6: Whom do we cater to?
Whom do we cater to? A Well Diversified Base Of Marquee Customers Catering to both offline & online channels On an average basis, each of the top 10 customers contributes <7% of the topline 5
Slide 7: Global Reach and Scale of the Platform
Global Reach and Scale of the Platform 50+ Offices with a presence in over 22 countries Canada UK Germany Sales & Design Operations Belgium 1 Million Sourcing/ Manufacturing pcs a day Turkey Pakistan Operations Portugal China production United States of America Jordan Product R&D Centre India Egypt
Slide 8: Who are we?
Who are we? Global Fashion Infrastructure Company with customized solutions to retailers & brands 01 02 03 04 Design-Led End 2 End Manufacturing Brands Sourcing Sourcing Solutions • Owned Manufacturing • 550+ Fully Compliant • Managing entire sourcing • In – House developed Facilities partnered fact
Slide 9: World Class Manufacturing Facilities
01 World Class Manufacturing Facilities Strengths Strategic Responsible Locations operations Speciality focused Risk manufacturing management Progress Apparel, Green Smart Shirts, Nor Lanka, Bangladesh Bangladesh Sri Lanka Our Accreditations World Class Manufacturing Formal & Casual shirts / Special
Slide 10: Design-Led Sourcing
02 Design-Led Sourcing Strengthened by a global design-led ecosystem: Speed to Market Multi Product Compliant New York | Sourcing Capacity London Paris Berlin Istanbul Milwaukee England France Germany Turkey USA SOURCING Multi Country Cost Sourcing CAPABILITIES Competitive Hong Kong Brussels Shangha
Slide 11: Sourcing as a Service Model
Sourcing as a Service Model 03 Long term strategic collaborations – a testament to our capabilities Geography Marquee Large UK Associations Supermarket Exclusive: Bangladesh Exclusive: Exclusive: Non Exclusive: Exclusive: Non Exclusive: (per Territories annum) Non-Exclusive: India | Bangladesh | Ind
Slide 12: In House Brands
04 In House Brands ▪ Lounge and comfort wear ▪ Denim workwear brand brand ▪ Sustainable Everyday work wear brand ▪ Launched in April ▪ Launched in April 2022 2021 ▪ Launched in April 2022 ▪ In collaboration ▪ In collaboration ▪ Available through Next with Next, Tk with Sainsburys & TkMaxx Maxx, Zala
Slide 13: Influencer & Acquired Brands
04 Influencer & Acquired Brands ▪ Smart/Casualwear ▪ Kids clothing brand ▪ Sustainable premium brand menswear brand ▪ Launched in April ▪ Launched in May 2021 ▪ Launched in 2022 November 2020 ▪ Exclusive to ASDA ▪ Exclusive to Tesco & George ▪ Exclusive to ASDA Next George FW BRIDGE ▪ Kidswear brand
Slide 14: Licensed Brands
04 Licensed Brands 13
Slide 15: 200+ Licensed Characters
04 200+ Licensed Characters Film & TV Cars & Motor Rock & Roll Food & Drink Lifestyle & Gaming 14
Slide 16: PDS Platform Strengths & Capabilities
FOCUS ON ESG FINANCIAL STRENGTH STRONG TECH SAVVY LEADERSHIP PLATFORM PDS Platform Strengths & Capabilities 15
Slide 17: Diverse and global expertise leading the platform
Diverse and global expertise leading the platform LEADERSHIP & BOARD OF DIRECTORS LEADERSHIP TEAM ADVISORY BOARD Mr. Deepak Seth Mr. Pallak Seth Mr. Sanjay Jain Ashish Gupta Abhishekh Kanoi Group Chairman Vice Chairman Group CEO Group CFO Head of Legal & Company Secretary Mr. Tarun Khanna Mrs. Faiza
Slide 18: Focus on Ethics, Compliance, and Sustainability
Strictly Private & Confidential Focus on Ethics, Compliance, and Sustainability ETHICS AND COMPLIANCE SUSTAINABILITY GOALS Industry Experts leading +50 member team to maintain Social, Promoting Sustainable Materials, low impact Technical and Ethical Compliance standards across factories manufacturin
Slide 19: Financial Strength of the Platform
Financial Strength of the Platform Key Building Blocks for PDS’s Global Platform ▪ Topline CAGR of 12% over the last 5 years and PAT CAGR of 90% ▪ Focus on financial discipline ▪ Trade Finance Limits of $370 Mn with strong leverage ratios due to –ve Net Debt Major contributor for PDS’s stability ▪ W
Slide 20: Building a Tech-savvy PDS Platform
Building a Tech-savvy PDS Platform Digital, a key pillar of PDS as data & analytics will drive a synchronized function across geographies and verticals Driving automation and operating Robust ERP implemented across the efficiencies leveraging Robotic Process group driving operating synergies and Sau
Slide 21: PDS Venture Investments
PDS Venture Investments Providing sourcing & manufacturing solutions for leading brands & retailers (PDS Platform) We learn from our investment startups Operate We develop new partnerships & implement the knowledge into the and invest in businesses that fit PDS system, to remain innovative & the PDS
Slide 22: Key Takeaways for FY22
Key Takeaways for FY22 21
Slide 23: Key Takeaways for FY2021-22
Key Takeaways for FY2021-22 Strategic contracts Strengthening of PDS Platform & Foray in the US Governance markets gaining Framework traction Investment in new Achieving negative verticals working capital & translating into negative net debt topline of $300 mn thereof in 3 years PDS choosing a Monet
Slide 24: Manufacturing delivered profits
Manufacturing delivered profits Focus on achieving 5% PBT (over 2 years) by driving efficiencies Measures Put in place for driving efficiencies Improved run size mix – Long Run vs Short Run PAT ($ mn|%) 1 4.0 % 2.8% 2.0 % Improved run product style mix 1 (2) (1) 0.0 % (1) 1 -2.0% - -4.0% -3.1% (1 )
Slide 25: Gearing for a $2.5bn enterprise over the next 4-5 years
Gearing for a $2.5bn enterprise over the next 4-5 years 24
Slide 26: Growth Opportunities for PDS
Growth Opportunities for PDS Opportunities in Sourcing Ways to capitalise Opportunities Invest in motivated and ambitious Entrepreneurs, Retailers looking to work with financially stable suppliers with multi- product & multi-geography capability 1 looking for growth on PDS Platform rather than exit
Slide 27: Growth Road Map and Key Drivers for the PDS Platform
Growth Road Map and Key Drivers for the PDS Platform Growth Avenues Growth Drivers Strategic Capital 26
Slide 28: Building Blocks as PDS aspires to reach $2.5bn
Building Blocks as PDS aspires to reach $2.5bn over the next 4-5 years Focus on Growth, Sales & Profit Unfolding of Positive Contribution Efficiently Strengthening Profitability, and maximization in Strategic sourcing from New verticals managing working Digital capabilities operating Manufacturing i
Slide 29: Business & Financial Performance Overview
Business & Financial Performance Overview Q UA R T E R A N D F U L L Y E A R E N D E D 3 1 ST M A R C H 2 0 2 2 28
Slide 30: Key Financial Highlights for FY22
Key Financial Highlights for FY22 $ 1,185mn $ 39mn -ve 3 days (₹8,828cr) (₹293cr) Vs +ve 5 days in Mar’21 42% consolidated topline growth 97% increase in PAT Net Working Capital Days -ve $ mn 5 ₹ 95.38 ₹ 23.85 -ve (₹41cr) vs ₹15.75 in FY21 Net Debt declined by $14mn vs FY21 Full Year EPS of ₹32.37 D
Slide 31: Performance over the last 5 years
Performance over the last 5 years Consistently delivered growth & profitability and have reported best FY22 performance Sales ($mn) Gross Profit ($mn) 16.2% 13.7% 1,185 192 928 938 136 155 138 766 837 105 Free Cash Flow (FCF) ($mn) 41 38 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 27 3 EBITDA
Slide 32: Consolidated Profit & Loss
Consolidated Profit & Loss US$ in mn, unless mentioned otherwise Key Highlights of performance: Quarter 4 Growth Quarter 3 Full year Growth Particulars FY22 FY21 (Y-o-Y) FY22 FY22 FY21 (Y-o-Y) Q4 FY22 vs Q4 FY21: Income from Operations 370 241 53% 298 1,185 837 42% COGS 314 197 59% 248 993 699 42% 1
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet US$ in mn, unless mentioned otherwise As on As on Particulars Particulars 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Non-Current Assets 104 81 Calculated basis 'annualized' P&L items Current Assets 345 240 Inventory Days 15 14 Inventories 40 27 Debtor Days 59 53 Trade Receiva
Slide 34: Consolidated Cash Flow
Consolidated Cash Flow US$ in mn, unless mentioned otherwise For the Period For the Period Particulars Particulars FY2021-22 FY2020-21 FY2021-22 FY2020-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 41 23 Proceeds from borrowings (net) 17 -35 Depre
Slide 35: PDS Stock Price Performance Since Listing
PDS Stock Price Performance Since Listing 34
Slide 36: What PDS has achieved since listing?
What PDS has achieved since listing? 2,500 PDS Share Price Evolution since Listing 2,000 (PDS IRR 31% vs BSE MidCap IRR: 12%) 1,500 1,000 500 - Jul-15 Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Oct-21 Oct-14 Oct-16 Oct-17 Oct-18 Oct-19 Oct-20 Jan-15 Apr-15 Oct-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Ja
Slide 37: Way Forward
Way Forward Geographic Expansion US is one of the top 5 apparel markets globally. Significant rise in North America Sales, currently at 16% of top-line. Potential to reach >20% over next few years Category Expansion Strengthening team in US and leveraging the Group Deepening relationships with exist
Slide 38: Annexure
Annexure 37
Slide 39: Manufacturing delivered profits
Manufacturing delivered profits Focus on achieving 5% PBT (over 2 years) by driving efficiencies Measures Put in place for driving efficiencies Improved run size mix – Long Run vs Short Run PAT (₹ cr|%) 6 4.0 % 2.8% 4 2.0 % Improved run product style mix (13) (6) 2 (5) 5 0.0 % - -2.0% (2 ) -4.0% (4
Slide 40: Performance over the last 5 years
Performance over the last 5 years Consistently delivered growth & profitability and have reported best FY22 performance Sales (₹cr) Gross Profit (₹cr) 16.2% 13.7% 8,828 1,432 6,486 6,648 6,213 1,099 4,924 948 1,028 675 Free Cash Flow (FCF) (₹cr) 296 288 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 F
Slide 41: Consolidated Profit & Loss
Consolidated Profit & Loss ₹ in cr, unless mentioned otherwise Quarter 4 Growth Quarter 3 Full year Growth Key Highlights of performance: Particulars FY22 FY21 (Y-o-Y) FY22 FY22 FY21 (Y-o-Y) Income from Operations 2,775 1,765 57% 2,232 8,828 6,213 42% Q4 FY22 vs Q4 FY21: COGS 2,356 1,440 64% 1,861 7
Slide 42: Consolidated Balance Sheet
Consolidated Balance Sheet ₹ in cr, unless mentioned otherwise As on As on Particulars Particulars 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 Non-Current Assets 787 594 Calculated basis 'annualized' P&L items Current Assets 2,611 1,752 Inventory Days 15 14 Inventories 305 197 Debtor Days 59 53 Trade Re
Slide 43: Consolidated Cash Flow
Consolidated Cash Flow ₹ in cr, unless mentioned otherwise For the Period For the Period Particulars Particulars FY2021-22 FY2020-21 FY2021-22 FY2020-21 A. Cash Flow from Operating Activities C. Cash Flow from Financing Activities Profit before tax 310 170 Proceeds from borrowings (net) 127 -252 Dep
Slide 44: Together we're building a better, more sustainable supply chain
Together we’re building a better, more sustainable supply chain 43