Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q3 FY14 Earnings Presentation
31 slides from Vaibhav Global's earnings presentation, January 2014
Slide 1: Financial Results Presentation Q3 & 9MFY14
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Financial Results Presentation Q3 & 9MFY14 January 2014
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: Business Highlights
Business Highlights Vertically-integrated electronic retailer of discount fashion and lifestyle accessories • Demonstrated profitable growth with direct-to-consumer business model on home shopping and e-commerce platforms with US and UK denominated revenue operations Owns ‘Liquidation Channel’ and ‘
Slide 4: Table of Contents
Table of Contents Q3 & 9M FY14 Financial Performance 5 Financial Performance Trends 12 Business Background Details 20 4
Slide 5: Key Highlights for Q3 FY14
Key Highlights for Q3 FY14 Home TV Network Reaches Over 100 Million Households • 90 million households on full time equivalent (FTE) basis • 25 million households in the UK • 68 million households in the US • 18 million households in Canada Retail Volumes increase by 42% to 2.7 Million Units • 29% h
Slide 6: CMD's Message
CMD’s Message Commenting on Q3 & 9M FY14 performance, Mr. Sunil Agrawal, Chairman and Managing Director*, Vaibhav Global said: “Our financial and operating performance in Q3 and first nine months of this fiscal year highlights the robustness and growing consistency of our business model. During Q3,
Slide 7: Financials – Q3 & 9M FY14 Performance (Revenues)
Financials – Q3 & 9M FY14 Performance (Revenues) Revenues (Rs. crore) 938 665 370 247 Q3 FY13 Q3 FY14 9M FY13 9M FY14 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 669 159 110 489 90 86 71 254 45 175 40 33 Q3 FY13 Q3 FY14 9M FY13 9M FY14 Q3 FY13 Q3 FY14 9M FY13 9M FY14 Q3 FY13 Q3 FY14 9M
Slide 8: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 4,776 24 23 23 23 3,883 1,835 • Strong y-o-y volume growth in Q3 FY14 – 1,427 29% in TV and 81% in Web. Web sales now contribute 32% of sales volume Q3 Q3 9M 9M Q3 Q3 9M 9M FY13 FY14 FY13 FY14 FY13 FY14 FY13 FY14 • Gr
Slide 9: Financials – Q3 & 9M FY14 Performance (Margins)
Financials – Q3 & 9M FY14 Performance (Margins) Rs. crore Gross Profit Gross margin 700 70% 62% 65% 600 61% 60% 61% 60% • Gross margins remains stable across 500 expanding revenues with growing 55% 400 contribution from multiple product 50% 300 categories 45% 200 40% 100 35% 150 224 404 579 0 30% Q3
Slide 10: Financials – Q3 & 9M FY14 Performance (Profits)
Financials – Q3 & 9M FY14 Performance (Profits) Rs. crore PAT PAT margin 120 18.0% 100 15.0% 12.3% • PAT expansion is in line with improvement 80 12.0% in core business profitability as the company 8.1% 60 7.6% 9.0% operates on a lean asset profile 40 8.6% 6.0% 20 3.0% 19 32 54 116 0 0.0% Q3 FY13 Q3
Slide 11: Table of Contents
Table of Contents Q3 & 9M FY14 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) 938 893 647 526 338 FY10 FY11 FY12 FY13 9M FY14 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 687 669 159 483 117 110 395 85 91 89 73 263 54 46 21 FY10 FY11 FY12 FY13 9M FY10 FY11 FY12 FY13 9M FY10 FY11 FY12 FY13 9M FY14 FY14
Slide 13: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 5,197 4,776 62 3,268 41 • Robust volume growth registered on home 2,039 30 24 24 TV platform resulting from higher 698 customer engagement leading to increased repeat purchases FY10 FY11 FY12 FY13 9M FY10 FY11 FY12 FY
Slide 14: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 700 70% 60% 62% 59% 600 55% 60% 500 50% • Gross margins remain robust supported 400 36% 40% by sourcing matrix that provides flexibility 300 30% to purchase from cost efficient markets 200 20% 100 10% 122 289 384 533 579 0 0
Slide 15: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 140 12% 12% 15% 120 8% 8% 10% 100 80 5% 60 • Displayed stable margins and robust 0% 40 profitability in 9MFY14 20 -5% 42 79 78 116 0 -10% -20 -47 -14% -15% -40 -60 -20% FY10 FY11 FY12 FY13 9M FY14 Rs. per share EPS 36 25 24 13 FY10 FY1
Slide 16: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Rs. crore Shareholders’ Equity Rs. crore Fixed Assets 265 207 205 203 205 186 193 159* 58* 67 FY10 FY11 FY12 FY13 9M FY14 FY10 FY11 FY12 FY13 9M FY14 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due to * During FY13 fixed ass
Slide 17: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Operating Cash flow Rs. crore Free Cash Flow Rs. crore 101 115 63 77 48 44 54 52 FY10 FY11 FY12 FY13 9M FY14 FY10 FY11 FY12 FY13 9M FY14 -36 -27 17
Slide 18: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) ROE ROCE 73% 68% 51% 37% 36% 34% 23% 15% FY10 FY11 FY12 FY13 9M FY14 FY10 FY11 FY12 FY13 9M FY14 -9% -41% 18
Slide 19: Table of Contents
Table of Contents Q3 & 9M FY14 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 Fashion Accessories Accessories 17 6 Fine and Fine and Fashion Fashion Jewelry 67 Jewelry 8 Market share gains through expanded distribution network and introduction of collections/designs mapping market trends 20
Slide 21: Product Profile
Product Profile JEWELLERY FASHION Product catalogue includes FINE & bracelets, bangles, earrings, studded jewelry etc. ACCESSORIES FASHION Product catalogue includes watches, bags, phone protective shells etc. PRODUCTS LIFESTYLE OTHER Product catalogue includes office and home décor, etc. Continuous
Slide 22: US Market Access on Liquidation TV Channel
US Market Access on Liquidation TV Channel https://www.liquidationchannel.com Access to 68 million 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 www.thejewellerychannel.tv Access to 25 out of the total 25 million households 23
Slide 24: Integrated Global Operations
Integrated Global Operations SOURCING MARKETS India Asia • Corporate HQ – Jaipur, Rajasthan • China is the hub for sourcing • ISO 9001:2008 manufacturing fashion and lifestyle accessories, facilities accessed from multiple locations • Production capacity - ~3 million • Sourcing capacity from China -
Slide 25: Sourcing Methodology
Sourcing Methodology Assessing value perception – design / fashion trend / price in target markets Competitive 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 26: Aligned with Demand Patterns
Process Aligned with Demand Patterns Buyer discussions Evaluation/ feedback of last year’s hits/misses Product Valentine Day & Spring Mothers’ Summer Product development strategies – by Product Line Day Line category Process begins – September Process begins – December Process begins – Decembe
Slide 27: Recent Additions
Recent Additions Mr. Pulak Prasad Vikram Kaushik Director Director 40 years of experience with the companies like Unilever, Britannia, Colgate-Palmolive and Tata Sky Founder of private equity fund Nalanda Capital Pte Ltd Management consultant / advisor to groups like Voltas, Tata Strategic Man
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, sourci
Slide 29: Management Team
Management Team Hemant Sultania Gaurav Vishal Soni Group Chief Financial Officer Chief Operating Officer, VGL India 17 years of rich experience in strategic financial planning, budgeting, project evaluation, commercial and legal affairs, taxation, fund management, finalization of accounts, revenue
Slide 30: Contact Information
Contact Information For more information on Vaibhav Global Limited, please contact: Hemant Sultania Vaibhav Global Ltd. Tel: +91-141-2770648 Email: Hemant@vglgroup.com Shiv Muttoo / Karl Kolah CDR India Tel: +91 22 6645 1207 / 1220 Email: shiv@cdr-india.com karl@cdr-india.com 30
Slide 31: Thank You
Thank You 31