Renaissance Global Limited · NSE:RGL
Renaissance Global — Renaissance Jewellery — Q2 FY19 Earnings Presentation
32 slides from Renaissance Global's earnings presentation, November 2018
Slide 1: Renaissance Jewellery Limited Investor Presentation
RENAISSANCE JEWELLERY LIMITED INVESTOR PRESENTATION NOVEMBER 2018 1
Slide 2: Discussion Summary
Discussion Summary 1 Company Overview 2 Business Strategy & Outlook 3 Financial Overview 4 Annexure 2
Slide 3: Company Overview
RENAISSANCE JEWELLERY LIMITED COMPANY OVERVIEW A Highly Differentiated Luxury Lifestyle Products Company, built on: Established Design House & Supplier to Global Jewellery Retailers Proven history of Successful and Accretive Acquisitions Robust and Disciplined Balance Sheet to Fuel Future Grow
Slide 4: Largest Exporter of Branded Jewellery To Leading Global Jewellery Retailers
Largest Exporter of Branded Jewellery To Leading Global Jewellery Retailers Focus on Licensed Brands Acquisition Strategy • Licensing agreement to sell “Enchanted Disney • Track record of successful acquisitions Fine Jewellery” and “Heart of Hallmark” • Expansion of Product portfolio and geographies
Slide 5: Focus on Branded Jewellery Sales Through Licensing Agreements
Focus on Branded Jewellery Sales Through Licensing Agreements Benefits of Branded Jewellery Sales Licensing Agreement with Disney Licensing Agreement with Hallmark Superior Product Positioning Increased Competitiveness Through Design Exclusivity Higher Value Addition With Focus on Studded Jewellery
Slide 6: Licensed Jewellery
Licensed Jewellery Enchanted Disney Fine Jewellery Hallmark Jewellery • Disney, one of the world’s best loved brands • Hallmark has a global presence in more than 100 countries • Thousands of brides & grooms are adding romance to their • Hallmark is a leading consumer brand engagement and wedding oc
Slide 7: Growth Through Acquisitions
Growth Through Acquisitions Vogue DMCC • Renaissance Jewellery DMCC acquired the assets of Vogue DMCC in 2016. • Vogue DMCC was engaged in manufacturing and wholesaling of Plain Gold jewellery to major retailers and wholesalers in the Middle East. • The acquisition enabled the company to expand its
Slide 8: Established Partner to Global Jewellery Retailers
Established Partner to Global Jewellery Retailers • 151 member design team based in US, UK, Hong Kong, Dubai & Mumbai Strong Design • Design bank of over 200,000 styles build over two decades Team With • Over 12,000 new designs launched every year based on international styles and fashion trends Exp
Slide 9: Preferred Partner to Marquee Global Retailers Across The World
Preferred Partner to Marquee Global Retailers Across The World 50+ Customers Top 10 Customers No single Customer Minimal Credit Risk Due Across USA, UK & Associated For More Contributes More Than to Reputed Clientele & Middle East Than 10 Years 10% of Total Revenues Disciplined Credit Terms E-commer
Slide 10: Global Marketing Presence To Serve Key Jewellery Markets
Global Marketing Presence To Serve Key Jewellery Markets Western Europe DUBAI Verigold Jewellery Acquired in 2016 (UK) Ltd (Founded in 2009) USA Renaissance Jewellery NY Inc (Founded in 2007) MIDDLE EAST INDIA Verigold Jewellery SEEPZ (Mumbai) DMCC Started in 2000 (Founded in 2014) Key Subsidiaries
Slide 11: Geographical Diversification Through Entry Into New Markets
Geographical Diversification Through Entry Into New Markets Robust Sales Growth & Geographical Diversification Achieved Over FY16 to FY18 Driven by Entry in GCC Market 38% 18% 21% 18,251 30% 14,734 8% 25% 13,193 38% 62% 57% 41% FY16 FY17 FY18 FY16 FY17 FY18 North America Middle East Others • Over th
Slide 12: State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce
State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce • Robust manufacturing setup spread over 166,000 sq. ft. across Manufacturing Facilities in Maharashtra & Gujarat 8 manufacturing facilities with 2,916 skilled employees • Global standard manufacturing technologies including Cas
Slide 13: Strong Balance Sheet Position To Support Business Growth
Strong Balance Sheet Position To Support Business Growth Low Leverage (Rs Mn) Working Capital Analysis 145 0.75 140 137 0.54 0.51 0.51 129 0.41 118 5,578 132 139 141 135 3,739 5,109 115 3,991 4,615 61 69 69 59 57 2,809 2,175 1,882 2,629 2,857 -53 -63 -73 -65 -54 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY
Slide 14: Limited Exposure to Currency & Commodity Fluctuations
Limited Exposure to Currency & Commodity Fluctuations Business Offers Significant Natural Hedge Leading to Limited Exposure to Currency & Commodity Risk The Company’s functional Currency is USD since majority of the Healthy EBITDA Growth & Stable EBITDA Margin over Last 5 Years business transactions
Slide 15: Business Strategy & Outlook
RENAISSANCE JEWELLERY LIMITED BUSINESS STRATEGY & OUTLOOK 15
Slide 16: Business Strategy & Outlook
Business Strategy & Outlook Significant Potential To Grow Business Continued Inorganic Growth Increasing Sales Expanding Focus on New To Accelerate Of Licensed Licensed Brand Product Growth in New Brands In Sales In New Development Products & New Existing Markets Geographies and Innovation Markets F
Slide 17: Business Strategy & Outlook
Business Strategy & Outlook Increasing Sales Of • Grow branded jewellery sales under “Enchanted Disney Fine Jewelry” & “Heart of Hallmark” licensing Licensed Brands In agreements, leading to increased customer wallet share and market penetration Existing Markets • Develop new products under Disney l
Slide 18: Financial Overview
RENAISSANCE JEWELLERY LIMITED FINANCIAL OVERVIEW 18
Slide 19: Q2 & H1 FY19 Results: Key Highlights
Q2 & H1 FY19 Results: Key Highlights Q2 FY19 YoY Analysis In Rs Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 6.9% 4.4% 5.9% 350 5.0% 5,969 3.7% 4.0% 300 3.0% 350 250 220 2.0% 3,835 266 169 1.0% 200 0.0% 56% 32% 150 30% -1.0% -2.0% 100 -3.0% 50 -4.0% - -5.0% Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19
Slide 20: Q2 & H1 FY19 Results: Segment Analysis
Q2 & H1 FY19 Results: Segment Analysis Q2 FY19 YoY Analysis Studded & Plain Gold Jewellery Geographical Mix Q2FY18 Q2FY19 Q2FY18 Q2FY19 31% 30% 12% 36% 29% 46% 69% 42% 70% 35% Studded Jewellery Plain Gold Jewellery N. America Middle East Others H1 FY19 YoY Analysis H1FY18 H1FY19 H1FY18 H1FY19 22% 14
Slide 21: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs Mn) Q2 FY19 Q2 FY18 YoY % H1 FY19 H1 FY18 YoY % Revenue From Operations 5,969.4 3,834.9 55.7% 10,531.9 7,604.4 38.5% Other Income -4.6 7.0 NM 6.0 14.7 -58.5% Total Income 5,964.8 3,841.9 55.3% 10,537.9 7,619.1 38.3% COGS 4,752.0 3,036.0 56.5% 8
Slide 22: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In Rs Mn) Sep-18 Sep-17 Particulars (In Rs Mn) Sep-18 Sep-17 Shareholder's Funds Non-Current Assets Equity Share Capital 186.8 188.8 Fixed Assets – Tangible & Intangible 1,204.6 827.6 Reserves & Surplus 5,413.7 5,151.4 CWIP & Intangibles under development 0.4
Slide 23: Annexure
RENAISSANCE JEWELLERY LIMITED ANNEXURE 23
Slide 24: Key Milestones
Key Milestones • Licensing agreement with Hallmark • Set up Renaissance Jewelry NY Inc • Acquired the assets of VOGUE DMCC • Set up Verigold Jewellery UK • Acquired Jay Gems Inc • Renaissance Jewellery Ltd went public with • EBITDA crosses Rs 1,000 Mn Rs 800 Mn IPO 2006-10 2016-18 • Acquired Mayur G
Slide 25: Experienced Management Team
Experienced Management Team Niranjan Shah, Chairman • Associated with the company since inception • Over 4 decades of experience in the gems & jewellery industry • Responsible for the overall strategic planning and decision making Sumit Shah, Vice Chairman Hitesh Shah, Managing Director • 22 years o
Slide 26: Experienced Independent Directors: Strong Corporate Governance
Experienced Independent Directors: Strong Corporate Governance Veer Kumar Shah, – Independent Director (ICAI, 1969; ) • Practicing Chartered Accountant with more than 4 decades of experience • Expert in Accounting, Auditing , Taxation, Company Law matters, Arbitration matters and management consulta
Slide 27: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (In Rs Mn) FY18 FY17* FY16 FY15 FY14 Revenue From Operations 18,251.0 14,734.5 13,195.8 12,764.4 12,221.6 Other Income 339.1 179.7 41.9 181.9 14.5 Total Income 18,590.1 14,914.2 13,237.7 12,946.3 12,236.1 COGS 15,160.7 11,577.4 9,959.1 9,907.2 8,796.6
Slide 28: Financial Summary
Financial Summary In Rs Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 5.1% 5.8% 6.3% 5.9% 5.5% 2.4% 3.1% 3.6% 3.4% 3.4% 18,590 14,914 12,236 12,946 13,238 1,016 638 828 883 752 474 495 621 405 295 FY14 FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17* FY18 FY14 FY15 FY16 FY17* FY18 Leverage Analysi
Slide 29: Operational Summary
Operational Summary Geographical Mix Studded Jewellery vs. Plain Gold Jewellery 15% 28% 20% 18% 21% 30% 30% 100% 100% 100% 1% 85% 72% 1% 25% 8% 38% FY14 FY15 FY16 FY17 FY18 Studded Jewellery Plain Gold Jewellery Seasonality 79% 69% 62% 20% 57% 29% 24% 27% 25% 41% 42% 34% 35% 34% 35% 20% 23% 19% 21%
Slide 30: Awards
Awards 2001 2008 2012 SEEPZ-SEZ Star GJEPC Award for GJEPC Award for Award largest exporter of largest exporter of studded metal studded metal jewellery jewellery 2005 2009 2015 WM Int’l Supplier of Emerging India GJEPC Award for the Year Award largest exporter of studded metal jewellery 2006 2011 2
Slide 31: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Jewellery Limited (“Renaissance” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operation
Slide 32: Thank You
RENAISSANCE JEWELLERY LIMITED THANK YOU For any investor queries, reach out to us DICKENSON SEAGULL IR RENAISSANCE JEWELLERY LTD. Aakash Mehta G. M. Walavalkar Email: Aakash.Mehta@dickensonir.com Compliance Officer Mob: 098706 79263 Investor Grievance Redressal Cell Ravindra Bhandari Email: investor
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