Vaibhav Global Ltd. · NSE:VAIBHAVGBL
Vaibhav Global — Q4 FY2013 Earnings Presentation
28 slides from Vaibhav Global's earnings presentation, May 2013
Slide 1: Vaibhav Global Limited Q4 & FY13 Financial Results Presentation
Vaibhav Global Limited Global Retailer of Fashion and Lifestyle Accessories on Home TV and e-Commerce Platforms Q4 & FY13 Financial Results Presentation May 2013
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: Table of Contents
Table of Contents Q4 Financial Performance 3 Financial Performance Trends 9 Business Background Details 17 3
Slide 4: Key Highlights for FY13
Key Highlights for FY13 Home TV Network Coverage Reaches 116 Million Households • 97 million households on full time equivalent (FTE) basis • 63 million households in the US • 35 million households in the UK • 18 million households in Canada Retail Volumes Rise 72% to ~7 million Units • Volume growt
Slide 5: Chairman's Message
Chairman’s Message Commenting on FY13 performance, Mr. Sunil Agrawal , Chairman, Vaibhav Global said: “Last year has been a successful year for us from many perspectives. We have transitioned our business to an established retail franchise in fashion jewelry and lifestyle accessories with a core val
Slide 6: Financials – Q4FY13 Performance (Revenues)
Financials – Q4FY13 Performance (Revenues) Revenues (Rs. Crore) 227 185 Q4 FY12 Q4 FY13 Jewelry & Lifestyle Products TV Sales Web Sales 18 B2B Sales 178 32 145 22 17 Q4 FY12 Q4 FY13 Q4 FY12 Q4 FY13 Q4 FY12 Q4 FY13 6
Slide 7: Financials – Q4FY13 Performance (Margins)
Financials – Q4FY13 Performance (Margins) Rs. crore Gross Profit Gross margin 130 67% 70% 129 65% • Gross margins were impacted by 128 57% 60% management’s decision to continue 127 discount pricing with the objective of 55% 126 expanding market share and liquidating 50% 125 stocks. More recently, de
Slide 8: Financials – Q4FY13 Performance (Profits)
Financials – Q4FY13 Performance (Profits) Rs. crore PAT PAT margin 30 12.9% 14.0% 25 12.0% 10.0% • Q4 profits include Rs. 21 crore from 20 9.7% exchange gain, consisting of a one-time gain 8.0% 15 of Rs. 13 crore from the write back of a 6.0% previously written off subsidiary following a 10 4.0% det
Slide 9: Table of Contents
Table of Contents Q4 Financial Performance 3 Financial Performance Trends 9 Business Background Details 17 9
Slide 10: Financials Performance Trends (Revenues)
Financials Performance Trends (Revenues) Revenues (Rs. Crore) 893 647 526 338 FY10 FY11 FY12 FY13 Jewelry & Lifestyle Products TV Sales Web Sales B2B Sales 687 117 91 85 89 483 73 395 54 263 46 21 FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 10
Slide 11: Retail Performance Trends
Retail Performance Trends TV Sales Sales Volumes ('000s) Average selling price US$ 5,197 62 3,268 41 • Volumes have expanded significantly 30 2,039 24 across both sales platforms (TV and Web) 698 even as the product mix has transitioned from precious jewelry to fashion jewelry and lifestyle accessor
Slide 12: Financials Performance Trends (Margins)
Financials Performance Trends (Margins) Rs. crore Gross Profit Gross margin 600 70% 59% 60% 500 55% 60% 50% 400 • Gross margins have continue to expand as 36% 40% material cost are lower in a product 300 30% portfolio that has transitioned from fine 200 20% jewelry to the current lines of fashion 10
Slide 13: Financials Performance Trends (Profits)
Financials Performance Trends (Profits) Rs. crore PAT PAT margin 100 12% 15% 80 8% 8% 10% 60 5% • Expanding the resource base across both 40 0% US and UK impacted profits, the company 20 42 79 78 -5% is now focused on growing market share 0 and will continue to re-invest in various -47 -10% -20 init
Slide 14: Financials Performance Trends (Balance Sheet)
Financials Performance Trends (Balance Sheet) Shareholders’ Equity Fixed Assets 265 207 205 203 205 186 159* 58* FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 * During FY13, Shareholders’ Equity was adjusted lower by Rs. 163.7 crore due to * During FY13 fixed assets were adjusted lower by Rs. 151.1 cr due
Slide 15: Financials Performance Trends (Cash Flow)
Financials Performance Trends (Cash Flow) Operating Cash flow Free Cash Flow 74 90 48 44 54 52 FY10 FY11 FY12 FY13 FY10 FY11 FY12 FY13 -36 -27 15
Slide 16: Financials Performance Trends (Key Ratios)
Financials Performance Trends (Key Ratios) Working Capital Days ROCE 34% 166 23% 114 117 15% 88 FY10 FY11 FY12 FY13 -9% FY10 FY11 FY12 FY13 ROE 49% 30% 21% FY10 FY11 FY12 FY13 -26% 16
Slide 17: Table of Contents
Table of Contents Q4 Financial Performance 3 Financial Performance Trends 9 Business Background Details 17 17
Slide 18: Market Opportunity
Market Opportunity US market size (US$ Bn) Vaibhav Global - US Revenue [US$ mn] Fashion Accessories 17 Translates to a 104 0.1% market share Fine and Fashion 78 Jewellery 60 67 FY2011 FY2012 FY2013 UK market size (US$ Bn) Vaibhav Global - UK Revenue [US$ mn] Fashion Accessories 6 Translates to a 40
Slide 19: Product Profile
Product Profile JEWELLERY FASHION FINE & Product catalogue includes bracelet, bangle, earring, studded jewelry etc. ACCESSORIES FASHION Product catalogue includes watches, bags, phone protective shell etc. PRODUCTS LIFESTYLE OTHER Product catalogue includes office and home décor, etc. Continuously e
Slide 20: US Market Access on Liquidation TV Channel
US Market Access on Liquidation TV Channel https://www.liquidationchannel.com Access to 63 million of the 116 million households in the US 20
Slide 21: UK Market Access on the Jewellery Channel
UK Market Access on the Jewellery Channel www.thejewellerychannel.tv Access to 30 million households of the total 35 million households 21
Slide 22: 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 • ~1.2 million pieces produced p.a. • ~3.6 million pieces procured
Slide 23: 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 24: Aligned with Demand Patterns
Aligned with Demand Patterns Process 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 – Sep 2012 Process begins – Dec 2012 Process begins – Dec 2012
Slide 25: Management Team
Management Team Sunil Agrawal Rahimullah Chairman Managing Director, VGL India Established Vaibhav in 1980 as a first generation Beginning his career in emerald trading and exports, he has entrepreneur and has led the company’s transition gained considerable experience and knowledge in this fiel
Slide 26: Management Team
Management Team Michael Raisbeck Praveen Tiwari Senior Vice President , Group Human Resources Vice President , STS China Responsible for HR strategy and systems Extensive cross-industry HR leadership and management Over 15 years at VGL, currently heads the group’s China experience of over 25 y
Slide 27: 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@vaibhavglobal.com Shiv Muttoo / Dipti Yadava CDR-India Tel: +91 22 6645 1207 / 1218 Email: shiv@cdr-india.com dipti@cdr-india.com
Slide 28: Thank You
Thank You 28