Pds Limited · NSE:PDSL
Pds — PDS Multinational Fashions — Q2 FY2022 Earnings Presentation
39 slides from Pds's earnings presentation, Nov 9, 2021
Slide 1: Filing cover letter to stock exchanges
PDS Multinational Fashions Limited PDS/SE/2021-22/70 November 9, 2021 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 Mumb
Slide 2: Building Blocks and Strategizing for the future
PDS Multinational Fashions Ltd Building Blocks and Strategizing for the future Investor Presentation - Second Quarter & Half Year Ended FY22 1
Slide 3: Safe Harbour
Safe Harbour This presentation has been prepared by PDS Multinational Fashions Ltd (“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
Slide 4: Table of Contents
Table Table ofof Contents Contents 1 PDS - Power of the PDS Platform 4-6 2 Key Strategic Business Developments 7-15 3 Strengthening the PDS Platform 16-22 4 Business & Financial Performance Overview 23-32 5 Shareholders Return 33-34 6 Annexure 35-37 3
Slide 5: Power of the PDS Platform
Power of the PDS Platform 4
Slide 6: Key Building Blocks for PDS's Global Platform
Key Building Blocks for PDS’s Global Platform INVESTING IN THE ETHICS & GLOBAL SCALE RISK MANAGEMENT FUTURE SUSTAINABILITY END TO END FINANCIAL LEADERSHIP TEAM DIGITAL SOLUTIONS CAPABILITIES STRENGTH 5
Slide 7: Power of the PDS Platform – Q2 & H1 FY22
Power of the PDS Platform – Q2 & H1 FY22 Q2 FY22 H1 FY22 Topline: ₹2,195cr | $297mn Topline: ₹3,821cr | $517mn Topline Growth: 18% Y-o-Y Topline Growth: 35% Y-o-Y PAT: ₹67cr | $9mn PAT: ₹126cr | $17mn PAT Growth: 3.7x Y-o-Y PAT Growth: 6.2x Y-o-Y 30% 34% 0.80x Net Debt/EBITDA ROCE ROE With LT Debt/E
Slide 8: Key Strategic Business Developments
Key Strategic Business Developments 7
Slide 9: Expanding into new Geographies & Categories: North America
Expanding into new Geographies & Categories Expanding the North America Business Significant rise in North America Sales in H1 FY22 achieved ~90% of sales achieved in full year FY21 Working capital cycle of such a model is slightly longer than the traditional FOB business FY2019: Current: Potential:
Slide 10: Launching Brands in India
Expanding into new Geographies & Categories Launching Brands in India 1. Launched the organic brand Turtledove London in India 2. Turtledove brand is part of Lilly & Sid (UK) portfolio 3. Turtledove London, with its responsibly created stylish unisex clothes for children, is housed in over 400 store
Slide 11: Building teams for new categories in UK
Expanding into new Geographies & Categories Building teams for catering to new categories in UK On-boards team of 8 led by Russell Wyeth focusing on young On-boards team of 8 led by Charlie Rudge focusing on lifestyle tech fashion print and fast fashion products, consumer products and accessories •
Slide 12: Strengthening vendor network: Vietnam
Strengthening vendor network Vietnam Why Vietnam? 1. Established & skilled workforce with 1 million new entrants to the workforce each year 2. Vertically integrated vendor options from in house spinning, sewing, & in house laundries 3. Centralized location in South East Asia 4. Competitive price on
Slide 13: Strengthening vendor network: Turkey & surrounding regions
Strengthening vendor network Turkey & surrounding regions Our target is to grow 2x in 4 years from Turkey and surrounding regions operations Sourcing operations in Benefits of being able to offer shorter lead times and Turkey & Surrounding regions with 60+ partner factories increased speed and agili
Slide 14: Strategic partnership in Sri Lanka
Strengthening vendor network Entered strategic partnership in Sri Lanka 1. Norlanka (Sri Lanka based subsidiary), entered into a strategic partnership with Rich Light Exports Pvt Ltd and Rainbow Fashions Pvt Ltd. 2. Partnership enhances Norlanka’s capability to fulfil customer requirements by increa
Slide 15: Sustainability initiatives: circularity
Sustainability initiatives PDS Venture Tech Investments – Consciously working towards circularity FILKOR LOOP Digital Wardrobe • UK based entity that developed a product • UK based sustainability and marketing destruction process solution provider • Allowing high-end fashion houses to transform • Em
Slide 16: Sustainable Apparel Coalition membership
Sustainability initiatives PDS is a member of the Sustainable Apparel Coalition (SAC) The SAC is a global, multi-stakeholder non-profit alliance for the fashion industry ▪ 250+ industry leading names work to preserve the environment and promote social justice across the global value chain ▪ Addressi
Slide 17: Strengthening the PDS Platform
Strengthening the PDS Platform 16
Slide 18: Strengthening the Board of Directors
Strengthening the Board of Directors Diverse and global expertise added to the platform New additions to the Board Directors* RECENTLY ADDED • Chair & Founder of Innovator Capital, London based specialist corporate advisory firm, established 2003 focusing on health and climate change related technol
Slide 19: Our ecosystem demands sustainability/compliance
Our ecosystem demands sustainability/compliance Let us look at what we are doing at PDS? 1 Our representation to customer 2 Our vendor partner network 3 Proactive approach We provide end-to-end solutions – from Meet all required compliance standards We work proactively through dedicated sourcing cot
Slide 20: Ethics Hotline - A (g)local approach to compliance
Ethics Hotline - A (g)local approach to compliance Customized URLs for each business → reports to central team S. No. URL 1 www.casacollective.ethicspoint.com Ethics Global Hotline is available for reporting of possible violations of PDS’s Code 2 www.clovercollections.ethicspoint.com of Conduct 3 ww
Slide 21: Further strengthening the Platform with industry experts
Further strengthening the Platform with industry experts Raamann Ahuja Leslie Durairaja Group Chief Human Global Compliance Ex. Resource Officer Director • Based out of Mumbai, Raamann would be responsible for • Leslie is an accomplished professional who brings along an Human Resources function driv
Slide 22: Value Creation Plan for Key Employees
Value Creation Plan for Key Employees Roll-out of letters has been initiated Steps Followed SNO Particulars Desk-top assessment undertaken by 1 Central team Preliminary List prepared along with 2 eligibility criteria 3 Board & Shareholder Approval # of employees covered 104 Feedback taken from respe
Slide 23: Creating Employee Friendly Environments
Creating Employee Friendly Environments Fair Price Shops in Bangladesh 22 22
Slide 24: Business & Financial Performance Overview
Business & Financial Performance Overview QUARTER AND HALF YEAR ENDED FY2022 23
Slide 25: Key Business Highlights – Q2 FY22
Key Business Highlights – Q2 FY22 1. Achieved a topline of $297mn (₹2,195cr) (18% growth compared to Q2 FY21) a) Reported best Q2 performance and is geared for further growth and profitability during the year b) Gross Margins of 16.4% (increased by 321bps with a growth of 47%) and EBIT of $11mn (₹78
Slide 26: Key Financial Highlights Q2 FY22
Key Financial Highlights Q2 FY22 2.7 times growth in EBIT 3.7 times increase in PAT 18% consolidated topline Gross Margin of growth 16.4% $ 11mn 9 $ mn $ 297mn vs 13.2% in Q2 FY21 (₹78cr) (₹67cr) (₹2,195cr) Expansion in EPS ROCE* ROE* ₹ 19.83 30% 34% vs FY21 Full Year vs 22% in Q2 FY21 vs 11% in Q2
Slide 27: Performance in Q2 over last 5 years
Performance in Q2 over last 5 years Consistently delivered growth & profitability and have reported best Q2 performance Sales (₹cr) Gross Margin (₹cr) 2,195 360 1,673 1,856 280 1,596 227 245 1,236 175 Q2 FY18 Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 Q2 FY18 Q2 FY19 Q2 FY20 Q2 FY21 Q2 FY22 Margin (%) 14.1% 14
Slide 28: Key Business Highlights – H1 FY22
Key Business Highlights – H1 FY22 1. Achieved a topline of $517mn (₹3,821cr) (35% growth compared to H1 FY21) a) Reported best H1 performance and is geared for further growth and profitability during the year b) Gross Margins of 16.8% (increased by 239bps with a growth of 58%) and EBIT of $20mn (₹14
Slide 29: Key Financial Highlights H1 FY22
Key Financial Highlights H1 FY22 3.1 times growth in EBIT 6.2 times increase in PAT 35% consolidated topline Gross Margin of growth 16.8% $ 20mn $ 17mn $ 517mn vs 14.4% in H1 FY21 (₹144cr) (₹126cr) (₹3,821cr) Expansion in EPS ROCE* ROE* ₹ 40.52 30% 34% vs FY21 Full Year vs 22% in H1 FY21 vs 11% in H
Slide 30: H1 Performance Across Segments
H1 Performance Across Segments PDS Venture Sourcing Manufacturing Tech Investments PDS Consolidated $495mn | ₹3,662cr $30mn | ₹225cr $0.4mn |₹3cr $517mn Revenue Revenue captured in up 32% vs H1 LY up 84% vs H1 LY Other Income (₹3,821cr) EBIT $17mn | ₹123cr -$2mn | -₹18cr $5 mn | ₹40cr $20mn (Includi
Slide 31: Revenue Break up (H1 FY22)
Revenue Break up (H1 FY22)* Category wise (% share) Geography wise (% share) Ladies 38% UK & 80% Wear Europe Men’s Wear 34% North 14% America Children 20% Wear Asia & 3% Middle East Essentials 5% Others 3% Others 3% *Broad Estimates 30
Slide 32: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement ₹ in cr, unless mentioned otherwise Q2 Q2 Growth H1 H1 Growth Key Highlights of performance: Particulars FY22 FY21 (Y-o-Y) Q1 FY22 FY22 FY21 (Y-o-Y) Q2 FY22 vs Q2 FY21: Income from Operations 2,195 1,856 18% 1,626 3,821 2,822 35% COGS 1,835 1,611 14% 1,345 3,179
Slide 33: Consolidated Balance Sheet
Consolidated Balance Sheet Return on capital employed continues to improve ₹ in cr, unless mentioned otherwise Particulars 30-Sep-21 31-Mar-21 As on Particulars Non-Current Assets 657 594 30-Sep-21 31-Mar-21 Current Assets 2,249 1,752 Inventory Days 21 14 Inventories 347 197 Debtor Days 59 53 Trade
Slide 34: Shareholders Return
Shareholders Return PDS STOCK PRICE PERFORMANCE SINCE LISTING 33
Slide 35: What PDS has achieved since listing
What PDS has achieved since listing PDS Share Price Evolution since Listing 1,600 PDS Price Evolution Since Listing= XIRR of 29% 1,400 (BSE SENSEX XIRR: 12%, BSE MidCap XIRR: 15%) 1,200 1,000 800 600 400 200 - Feb-15 Feb-16 Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Jun-16 Jun-19 Oct-14 Dec-14 Jun-15 Oct-15
Slide 36: Annexure
Annexure 35
Slide 37: Consolidated Profit & Loss (US$)
Consolidated Profit & Loss US$ in mn, unless mentioned otherwise Q2 Q2 Growth H1 H1 Growth Key Highlights of performance: Particulars FY22 FY21 (Y-o-Y) Q1 FY22 FY22 FY21 (Y-o-Y) Income from Operations 297.0 247.2 20% 220.6 517.0 376.0 38% Q2 FY22 vs Q2 FY21: COGS 248.2 214.6 16% 182.4 430.2 321.8 34
Slide 38: Consolidated Balance Sheet (US$)
Consolidated Balance Sheet Return on capital employed continues to improve US$ in mn, unless mentioned otherwise As on Particulars 30-Sep-21 31-Mar-21 As on Particulars Non-Current Assets 89 81 30-Sep-21 31-Mar-21 Current Assets 303 240 Inventory Days 21 14 Inventories 47 27 Debtor Days 59 54 Trade
Slide 39: Together we're building a better, more sustainable supply chain
Together we’re building a better, more sustainable supply chain Abhishekh Kanoi PDS Multinational Fashions Limited For Further Group General Counsel & Company Secretary Unit No.971, Solitaire Corporate Park, Information, abhishekh.k@pdsmultinational.com Andheri-Ghatkopar Link Road, Andheri (E), plea
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