Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY23 Earnings Presentation
45 slides from Vaibhav Global's earnings presentation, January 2023
Slide 1: Investor Presentation - January 2023
"BG Ter d Global E-tailer of Fashion Jewellery, Apparels, Lifestyle Products and Accessories on TV and Digital Platforms Investor Presentation - January 2023
Slide 2: Disclaimer
Disclaimer Delivering Joy This presentation has been prepared by Vaibhav Global Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connect
Slide 3: MD's Message
Sales for the quarter were Rs. 724 crores, down by 3.6% YoY but much stronger at 28.5% over pre-COVID period of Q3 FY20. Performance is with the backdrop of current moderating consumer demand amidst inflationary environments. In UK market, Delivering many of major delivery partners are facing strike
Slide 4: Q3 FY23 Highlights
Q3 FY23 Highlights Delivering Joy Resilient performance amidst broader economic challenges. YoY revenue down by 3.6%, but grew strongly at 28.5% vs pre-COVID Q3 FY20 Gross margins maintained above 60% EBITDA improved sequentially. YoY reflects increased broadcasting & digital marketing cost, partly
Slide 5: Table of Contents
Table of Contents Delivering Joy 1 Company Overview 06 2 Business Overview 11 Q3 & 9M Operational & 3 Financial Highlights 22 4 Financial Performance Trends 33 5 Annexures 39 5
Slide 6: Company Overview
Company Overview
Slide 7: About Us
About Us Delivering Joy Vertically-integrated Digital Retailer of fashion Shop LC (US), Shop TJC (UK) and Shop LC (Germany) Jewellery & lifestyle products are brands with strong customer visibility ▪ End-to-end B2C business model ▪ TV Homes accessed (*FTE): ~ 129 mn ▪ Presence through ▪ Growing onli
Slide 8: 25 years of Listing with top decile shareholders' returns
25 years of Listing with top decile shareholders’ returns Delivering Joy Growing Consistently Parameters CAGR Return FY 97 FY 22 (Rs. in crores) (25 years) (x times) Revenue 32.8 2,752.4 19.4% 84 EBITDA 4.2 303.2 18.7% 72 Profit Before Tax 4.1 242.3 17.7% 59 Profit After Tax 3.6 237.1 18.2% 66 Net W
Slide 9: Strong & Experienced Management
Strong & Experienced Management Delivering Joy Mr. Sunil Agrawal Mr. Nitin Panwad Mr. Vineet Ganeriwala Mr. Srikant Jha Mr. Deepak Mishra Managing Director, VGL Group Group CFO, VGL Group President, Shop LC (US) Managing Director, Managing Director, Shop TJC (UK) Shop LC (Germany) Mr. Ankur Sogani M
Slide 10: Key Strengths
Key Strengths Delivering Joy Wider Product Bouquet Higher Consumer & Wallet Share Industry Leading Gross Margins Vertically Integrated Supply Chain An Efficient Continuous Consumer Interplay of Engagement Omni-Channel Presence ▪ (Proprietary TV, OTA’s, Website, OTT, Marketplaces & Social Media) Stro
Slide 11: Business Overview
Business Overview _
Slide 12: E-tailing in markets with huge potential of ~USD 20 bn
E-tailing in markets with huge potential of ~USD 20 bn* Delivering Joy Opportunity size: US: ~$14-$15 bn UK: ~$2-2.5 bn Germany: ~2.5-3 bn VGL Transcends 2 Pools of Product Verticals Fashion Jewellery, Gemstones & Accessories Life-Style, Home Décor, Beauty Care, Apparels & Accessories 12 * Immediate
Slide 13: Vertically Integrated Supply Chain
Vertically Integrated Supply Chain Delivering Joy Low-cost Value Sourcing Base Serving affluent but value-conscious manufacturing Asia Base customers in Western Developed Markets Primary Retail Markets USA ($) UK ( ) China Bali Thailand India Hong Kong Germany (€) Resulting in Highest Gross Margins
Slide 14: Strong Global Presence
Strong Global Presence Delivering Joy Retail Markets UK Shop LC | Shop TJC | Shop LC Germany (US) (UK) (Germany) Operate Through Marketplaces US Canada China Sourcing ▪ India ▪ UK ▪ China ▪ Mozambique ▪ Thailand ▪ Germany India ▪ Indonesia ▪ Italy ▪ Tanzania ▪ Turkey ▪ Russia ▪ Poland ▪ Morocco ▪ Si
Slide 15: Omni-channel Sales Platform
Omni-channel Sales Platform Delivering Joy TV DIGITAL Proprietary TV channels and OTAs Proprietary Digital Platform Mobile Applications www.shoplc.com US UK GERMANY www.tjc.co.uk www.shoplc.de Third Party Marketplaces Social Retail HH: 75mn 27mn 27mn* Google OTA: 17mn 18mn 2.5mn Marketplace * Includ
Slide 16: Strengthening Own Brands
Strengthening Own Brands Delivering Joy ▪ Our Strengths: An update on USA UK Germany ✓ Leveraging manufacturing & digital capabilities Rachel Galley ✓ Number of brands: 31 ✓ Revenue Mix: ~30% of global B2C revenue ✓ Margin accretive ✓ Brand Laddering (value and mass- premium) ▪ Long-Term Objectives:
Slide 17: 4R's Of Customer Engagement
4R’s Of Customer Engagement Delivering Joy TV: Linear | OTA Diverse Products Enduring relationships Expanding wallet share Digital: Deep value Convenience Browsers | Mobile Apps | proposition Market-places | OTT| Cross-selling Social Media Engrossing Content Digitalization/AI Reach (HH) Registration
Slide 18: Consistent Delivery
Consistent Delivery Delivering Joy Consistent, Focused and Strong Execution Global Households Reach Repeat Purchases (in million) (no. of pieces) Retention 129 (20+ Purchases) 124 99 104 89% 89% 89% 87% 30 27 27 25 FY20 FY21 FY22 Dec-22 FY20 FY21 FY22 Dec-22 FY20 FY21 FY22 Dec-22 Reach Repeat Purcha
Slide 19: 'Delivering Joy' Through Innovation
‘Delivering Joy’ Through Innovation Delivering 28,800+ Joy 3,900+ 1,590+ Ideas Generated Ideas Approved Products sold at channels 12,700+ 2,590+ Ideas Proposed to Orders Placed Buyers Global Search Program Crowdsourcing of Ideas Product Launched A Global product innovation and From employees, custom
Slide 20: Constantly Reimagining Growth in Jewellery Through New Designs & Products
Constantly Reimagining Growth in Jewellery Through New Designs & Products Delivering Joy Jewellery Design Gemstones ▪ Deals in 250+ gemstones including rare gemstones ▪ Widest possible global sourcing ▪ New gemstones contributing 3%-4% of group’s annual turnover ▪ Strengths: ▪ Strong team of profess
Slide 21: Broad Based E-tailer
Broad Based E-tailer Delivering Joy B2C Revenues by Format B2C Revenues by Product Category TV revenues Digital revenues Jewellery Non-jewellery revenues 22% 37% 37% 11% 30% 28% 78% 89% 72% 63% 63% 70% FY17 FY22 9M FY23 FY17 FY22 9M FY23 59.6% of digital revenues in 9M FY23 were from Mobile platform
Slide 22: Q3 & 9M FY23 Operational & Financial Highlights
Q3 & 9M FY23 Operational & Financial Highlights
Slide 23: Resilience Amid Challenges
Resilience Amid Challenges Delivering Joy ▪ Revival in sales trend reversed lately due to Revenue and EBITDA trend ➢ Muted consumer sentiments in both US & UK 11.4% 10.5% ➢ Cost of living crisis & political instability in UK 8.1% 6.9% 7.0% ➢ Disruption in the delivery market in UK ➢ Cyber attack 3.5
Slide 24: UK: Freeview Channel Upgradation Yielding Positive Outcomes
UK: Freeview Channel Upgradation Yielding Positive Outcomes Delivering Joy ▪ TJC (UK) upgraded channel position to 22nd from erstwhile 50th position in Jan-22 ▪ Investment now yielding positive results in terms of new customer acquisition on TV ▪ Expect market leading growth in long run New TV Custo
Slide 25: An update on Germany
An update on Germany Delivering Joy Germany venture increase in TAM (immediate addressable market) by ~20% ▪ Now clocking monthly revenue of Euro 1.4mn+ at 60%+ gross margins ▪ Omni-channel presence (digital is now 31%) ▪ Covering 27mn HH, dispatching 3.5k+ pieces/day ▪ Started ‘Live & Interactive T
Slide 26: OTT & OTA – Widening Digital Platform
OTT & OTA – Widening Digital Platform Delivering Joy In US, OTT and OTA are projected to be the fastest growing video distribution medium OTT OTA Projected US residential video households 2020-2026 (million) Live & Interactive 80.0 Total HH in US: 22mn Apps 60.0 46.8 40.0 Shop LC 25.7 17mn HH 20.0 -
Slide 27: Financial Highlights – Q3 & 9MFY23 Revenue breakup
Financial Highlights – Q3 & 9MFY23 Revenue breakup Delivering Joy Revenue (Rs. Crore) 28.5% 34.2% Total Revenue 2,067 3.3% vs pre-COVID Q3 and 9M FY20 1,998 performance 3.6% 750 724 Q3 FY22 Q3 FY23 9M FY22 9M FY23 Revenue split (Rs. Crore) 18.7% 27.8% 55.0% 50.2% B2B Revenue TV Revenue Digit
Slide 28: Financial Highlights – Q3 & 9MFY23 Revenue breakup
Financial Highlights – Q3 & 9MFY23 Revenue breakup Delivering Joy Revenue Split – (Local Currency) Shop LC (US) Shop TJC (UK) 7.5% 11.5% 22.3% 15.5% (USD million) (GBP million) 185.0 10.3% 62.0 9.1% 165.9 56.4 11.3% 10.9% 65.7 22.9 58.3 20.4 Q3 FY22 Q3 FY23 9M FY22 9M FY23 Q3 FY22 Q3 FY23 9M
Slide 29: Retail Performance Trends – Q3 & 9M FY23
Retail Performance Trends – Q3 & 9M FY23 Delivering Joy TV Sales Sales Volume ('000s) Average Selling Price US$ 5,338 4,234 36.6 36.4 36.3 32.4 1,710 1,483 Q3 FY22 Q3 FY23 9M FY22 9M FY23 Q3 FY22 Q3 FY23 9M FY22 9M FY23 Digital Sales Sales Volume ('000s) Average Selling Price US$ 4,062 3,442 25.8 27
Slide 30: Financials – Q3 & 9M FY23 Performance
Financials – Q3 & 9M FY23 Performance Delivering Joy Gross Profit (Rs. Cr) and Margin (%) EBITDA (Rs. Cr) and Margin( %) Ex-Germany: Ex-Germany: 4.4% 21.3% 6.2% 1,500 1,303 64% 300 256 15% 1,222 11.4% 63% 32.9% 10.5% 1,000 63.0% 62% 200 12.4% 172 10% 3.3% 453 438 61% 11.3% 8.6% 500 86 61.1%
Slide 31: EBITDA Margin Walk
EBITDA Margin Walk Delivering Joy % To Particulars Revenue Remarks EBITDA Q3 FY22 11.4% Gross Margin 0.2% Germany 0.4% Losses narrowing down Shipping cost 2.0% Cost renegotiation and internal efficacy Accelerated Investment in Broadcasting & Conscious investments for future potential and (2.
Slide 32: Cost Optimization
Cost Optimization Delivering Joy Annual Visible Savings (FY23) Cost Arbitrage: Call Centre ▪ Presently ~50-60% US & UK volumes catered by India ▪ Focus to further increase India’s share $ 1-2 mn Shipping & Warehousing ▪ Shipping: Renegotiating and evaluating new vendors ▪ Labour productivity $ 2-3 m
Slide 33: Financial Performance Trends
Financial Performance Trends
Slide 34: Financial Performance Trends
Financial Performance Trends Delivering Joy Revenue Breakdown – (Rs. crore) 34.2% 2,540 2,752 5 Year CAGR: 13.9% 1,986 2,067 1,998 1,814 1,571 FY18 FY19 FY20 FY21 FY22 9M FY22 9M FY23 Fashion Jewelry, Accessories & Lifestyle Products (Rs. Crore) 5 Year CAGR: 11.8% 5 Year CAGR: 29.2% Digital Revenue
Slide 35: Retail Performance Trends
Retail Performance Trends Delivering Joy TV Sales Sales Volume ('000s) Average Selling Price US$ 36.3 7,837 29.9 32.6 32.4 6,998 27.0 26.5 27.7 5,737 6,275 6,070 5,338 4,234 FY18 FY19 FY20 FY21 FY22 9M FY22 9M FY23 FY18 FY19 FY20 FY21 FY22 9M FY22 9M FY23 Digital Sales Sales Volume ('000s) Average S
Slide 36: Financials – Annual Financial Performance
Financials – Annual Financial Performance Delivering Joy Gross Profit (Rs. Cr) EBITDA and EBITDA Margin % 2,000 63.0% 64% 500 CAGR: 24.3% 20% 62.5% 62.3% 62.3% 63% 61.6% 400 13.9% 15.3% 1,500 62% 12.4% 15% 61.1% 12.0% 10.1% 11.0% 61% 300 1,000 59.6% 8.6% 10% 60% 200 500 59% 5% 58% 100 936 1,133 1,22
Slide 37: Financials – Annual Financial Performance
Financials – Annual Financial Performance Delivering Joy Shareholders’ Equity (Rs. Cr) Fixed assets including intangibles (Rs. Cr) 1,202 494 494 1,127 964 697 751 550 163 192 120 117 FY18 FY19 FY20 FY21 FY22 9M FY23 FY18 FY19 FY20 FY21 FY22 9M FY23 Net Debt (Rs. Cr) Net Assets* (Rs. Cr) FY18 FY19 FY
Slide 38: Financials Performance Trends & Ratios
Financials Performance Trends & Ratios Delivering Joy Operating Cash flow (Rs. Cr) Free Cash Flow (Rs. Cr) 324 268 211 181 176 203 121 96 86 67 38 20 (214) (155) FY18 FY19 FY20 FY21 FY22 9M 9M FY18 FY19 FY20 FY21 FY22 9M 9M FY22 FY23 FY22 FY23 ROE (TTM) ROCE (TTM) 32% 61% 25% 26% 23% 23% 46% 37% 31%
Slide 39: Annexures
Annexures _
Slide 40: Growth In Digital Commerce Markets
Growth In Digital Commerce Markets Delivering Joy US Retail & E-com Sales* UK Retail & E-Com Sales Retail Sales ($ Tn) E-com as % of Retail Sales Retail Sales (£ Bn) E-com as % of Retail Sales 6.5 464.3 14.0% 439.6 436.8 14.6% 14.5% 423.7 5.4 5.6 5.2 5.3 30.9% 30.7% 11.0% 27.8% 9.9% 27.3% 19.1% 17.9
Slide 41: Robust Corporate Governance
Robust Corporate Governance Delivering Joy Recognitions & Accolades Excellence Award’ for ‘IGBC Performance Challenge 9M FY23 ~Rs. 74.1 crores 2021 for Green Built Environment LEED’s GOLD Certificate Interim Dividends Dividend Payout Policy ▪ 20-30% of consolidated free cash flows ▪ Balance between
Slide 42: Sustainability Initiatives
Sustainability Initiatives Delivering Joy Energy Water ▪ Rainwater harvested per Solar ▪ 10.1 Mn KWH generated 6,100 KL annum 3.23 MW since inception ▪ Water saved per day with ▪ 130 2-Wheelers and 3 7 KL installation of low LPM faucets EV 4-Wheelers for employees’ commute ▪ Water recycled per day,
Slide 43: Growth With Responsibility
Growth With Responsibility Delivering Joy ▪ Till date Served 73 million meals to underprivileged children through flagship One for One Program, ’Your Purchase Feeds…’ ▪ Local charity partners ✓ Akshaya Patra in India ✓ No Kid Hungry and Backpack Friends in US ✓ Magic Breakfast & Felix Project in UK
Slide 44: Shareholding Pattern: As on 31st December 2022
Shareholding Pattern: As on 31st December 2022 Delivering Joy Holding as on Shareholding Pattern Key Shareholders 31-Dec-22 Nalanda India Fund Limited 10.19% Others 11.42% Motilal Oswal Flexi Cap Fund 5.52% Individual - >1% 3.16% Malabar India Fund Limited 5.40% AIF 0.84% Vanguard 1.58% Domestic Ins
Slide 45: Thank You
Thank You Company : Investor Relations Advisors : Vaibhav Global Limited Adfactorspr Pvt. Ltd. Nitin Panwad, Group CFO Amit Sharma nitin.panwad@vglgroup.com amit.sharma@adfactorspr.com Prashant Saraswat Disha Shah Head-Investor Relations disha.shah@adfactorspr.com prashant.saraswat@vglgroup.com www.