Welspun Living Limited · NSE:WELSPUNLIV
Welspun Living — Welspun India — Q3 FY20 Earnings Presentation
33 slides from Welspun Living's earnings presentation, February 2020
Slide 1: Welspun India Ltd Investor Presentation February 2020
WELSPUN INDIA LTD Investor Presentation February 2020 OWNED BRANDS INNOVATIONS LICENSES 1
Slide 2: Q3 & 9M FY20 Financial Performance
Q3 & 9M FY20 Financial Performance 2
Slide 3: Key Highlights – Q3/9M FY20
Key Highlights – Q3/9M FY20 Emerging businesses Licensing deal for Brand ‘Welspun’ collectively continue Martha Stewart for Bed, catapulted to Top 2 to grow by 30% Bath & Flooring categories position in value YoY segment in Home Textile Flooring Awarded ‘Highest Only Home Textile business reach: Glo
Slide 4: Financial Performance – Q3 / 9M FY20
Financial Performance – Q3 / 9M FY20 (Rs. Million) YoY Q2 QoQ 9M 9M YoY Particulars Q3 FY20 Q3 FY19 Change FY20 Change FY20 FY19 Change Total Income 16,996 16,574 2.5% 18,371 -7.5% 52,667 50,109 5.1% EBITDA 3,336 2,506 33.1% 4,034 -17.3% 11,082 8,943 23.9% EBITDA Margin 19.6% 15.1% 451 bps 22.0% -23
Slide 5: Trend of Financial Performance
Trend of Financial Performance TOTAL INCOME EBITDA CAGR 10% CAGR 10% 67,211 66,084 16,831 16,639 60,143 61,318 54,924 52,667 13,691 12,046 11,467 Rs. million Rs. million 44,772 10,253 11,082 36,965 6,438 FY13 FY14 FY15 FY16 FY17 FY18 FY19 9MFY20 FY13 FY14 FY15 FY16 FY17 FY18 FY19 9MFY20 NET CASH PRO
Slide 6: Financial Performance Trend
Financial Performance Trend (Rs. Million) Particulars FY15 FY16 FY17 FY18 FY19 9MFY20 Total Income 54,924 60,143 67,211 61,318 66,084 52,667 Growth % 22.7% 9.5% 11.8% -8.8% 7.8% 5.1% EBITDA 13,691 16,831 16,639 12,046 11,467 11,082 EBITDA Margin 24.9% 28.0% 24.8% 19.6% 17.4% 21.0% Depreciation 3,329
Slide 7: Balance Sheet Trend
Balance Sheet Trend (Rs. Million) Particulars 31-Mar-15 31-Mar-16 31-Mar-17 31-Mar-18 31-Mar-19 31-Dec-19 Net Worth 14,732 19,700 23,971 26,057 27,793 30,992 Short Term Loans 13,936 13,533 11,721 12,580 14,080 14,069 Long Term Loans 20,864 18,945 21,393 20,228 19,024 16,581 of which Welspun Flooring
Slide 8: Financial Ratio Trend
Financial Ratio Trend FY15 FY16 FY17 FY18 FY19 Q3 FY20 Net debt/Equity 2.07 1.58 1.27 1.16 1.09 0.94 Solvency ratios Net debt/EBITDA 2.23 1.85 1.83 2.51 2.64 1.97 EBIT/Interest 3.66 5.54 7.32 4.98 4.46 6.46 Current ratio 1.12 1.15 1.41 1.42 1.25 1.29 Fixed asset turnover 2.04 1.77 1.86 1.80 1.81 1.8
Slide 9: Focus on Free Cash Flow
Focus on Free Cash Flow 3770 2405 Rs. in Millions FCF 859 907 795 714 785 786 773 787 Dividend FY15 FY16 FY17 FY18 FY19 FCF positive for five consecutive years and utilized for dividend payout 9
Slide 10: Dividend Policy
Dividend Policy Board approved dividend distribution policy Consistent track record 25% of consolidated PAT* to be the total payout of dividend distribution (incl. dividend tax) Period Standalone EPS DPS Dividend Tax Per Share Payout Percentage FY15 5.09 1.05 0.21 25% FY16 5.99 1.30 0.26 26% FY17 3.
Slide 11: Shareholding and Trading Snapshot
Shareholding and Trading Snapshot As on December 31, 2019 13.1% 2.2% Promoter 8.0% FIIs Shareholding Pattern 68.5% Mutual Funds / AIF 8.2% Banks and Insurance Cos Public As on December 31, 2019 INR USD Price per share 48.00 0.67 Market Statistics No of shares outstanding (Mn) 1,005 Market capitaliza
Slide 12: About Welspun Group
About Welspun Group Group Revenue Global Leader Global Leader in Infrastructure in Home Textiles Large Diameter Pipes Investments in Oil & Gas US$ 2.7 Billion Fixed Asset Base US$ 0.9 Billion Employees 25,000+ 12
Slide 13: Welspun India Overview: Presence in 50+ Countries
Presence in 50+ Countries Unique 30 Innovations WELSPUN INDIA 38% Sales 17% Sales Innovative Branded OVERVIEW Products(3) Products(3) Trusted and Preferred Ranked #1 Suppliers to Among Home Textile Suppliers 17 of Top 30 to USA by Home & Textiles Today Magazine Global Retail Giants Largest 5 Times i
Slide 14: Welspun India: Growth Drivers - Vision 2022
Welspun India: Growth Drivers - Vision 2022 1 2 3 4 5 Innovation New Channels / Brands Sustainability New Products Markets Revenue Net Debt Innovative / Branded Women Share of Domestic Revenue Share Employees Revenue $1.5bn NIL 50% 20% 20% 14
Slide 15: Increasing Share of Innovative Products
Increasing Share of Innovative Products Contributes more than $150 Mn 38% of sales annually 34% 36% 37% 38% of Sales from ® 30% Gaining traction in hospitality & Innovative domestic market Products Received asthma and allergy free certification for bedding products in US post stringent testing 30 FY
Slide 16: WEL-TRAK: Patented Global Cotton Integrity Process
WEL-TRAK : Patented Global Cotton Integrity Process Welspun’s patented Wel-Trak® process, supplemented by scientific traceability from Oritain™ is now the industry defining end-to-end fiber tracking process Dedicated Ginning Spinning Weaving Finishing Cut & Sew Pack & Ship Retail Suppliers of Cotton
Slide 17: Diversified Brand Portfolio
Diversified Brand Portfolio Premium & Luxury Value Sustainability & Innovation Empowerment Brand Spectrum Continues to Evolve Branded Products Contribution to Sales at 17% in FY19 Coveted Licenses 17
Slide 18: Premium Brand: Spaces
Premium Brand: Spaces Focus on Tapping Domestic Market Potential India – One of the fastest growing economies in ‘Spaces’ was recently recognized as a best brand in home the world with huge potential for increasing category by Myntra. Also, received Amazon Marketing organized market Services Award f
Slide 19: Value Brand: Welspun
Value Brand: Welspun Value brand ‘Welspun’: Focus on tapping a larger segment of the domestic market IPL: Official Partner Outdoor of Kings XI Punjab Advertising Campaign at Campaign starring Election TVC on Kumbh Mela Amitabh Bachchan News Channels Reaching Larger Audience 2500+ Outlets across 50
Slide 20: Sustainability woven in Value Chain
Sustainability woven in Value Chain Enabling Circularity Sourcing of Raw Materials Sustainable Sourcing Farming Projects Organic Recycled Cotton Cotton PRODUCTS & OFFERINGS Supply Chain & Packaging Manufacturing Process Zero Fresh Waters Usage Inclusive Workforce Ancillarisation Green Cover 20
Slide 21: Hospitality
Hospitality Welspun only constitutes ~3% High potential global wellness of total US hospitality market economy of about $3.7 trillion Welspun has partnered with Stay Well to tap global wellness potential The US hospitality market is c. $1.5bn (i.e. for towels and sheets) Stay Well infuses wellness i
Slide 22: E-commerce
E-commerce In key developed markets, E-commerce constitutes 10-15% in Home Textiles. Expected to reach ~25% by FY23 Welspun approach to tap the ecommerce opportunity Key Ecommerce Big-Box Retailers’ Own Exclusive Online Platforms Websites Website D2C Players • Key ecommerce • Strong relations with •
Slide 23: Emerging Business: Flooring Solutions
Emerging Business: Flooring Solutions Wide range of flooring products Carpet tiles Broadloom carpets Luxury Performance Artificial grass & area rugs Tiles (LPT) Welspun Flooring Fully integrated flooring vertical • Aim to become a one-stop • Capacity of 27 million sq. flooring solutions provider for
Slide 24: Emerging Business: Advanced Textile
Emerging Business: Advanced Textile Untapped Opportunity in Bedding Large untapped opportunity in basic bedding, comforters and quilts Currently, China dominates the market; India is gradually making inroads Contributed ~3% of sales in FY19 Technical / Advanced Textiles Products for specialized use
Slide 25: Vertically Integrated Presence with Significant Capabilities
Vertically Integrated Presence with Significant Capabilities India Supply Advantage Vertically Integrated Facilities Across Manufacturing Chain Cotton Spinning Weaving Processing Cutting & Sewing Logistics Captive Power Current integration of about 70% in Spinning and Weaving Captive power generatio
Slide 26: Global Distribution Network with Marquee Clients
Global Distribution Network with Marquee Clients Warehouses Manufacturing Facility Corp HQ/Marketing Offices Country Served Delivery and Reach in Over 50 Countries 26
Slide 27: Inclusive Growth: Corporate Social Value
Inclusive Growth: Corporate Social Value Environment Education Sustainable business Our initiative to improve the practices, clean water, quality of education at schools improved sanitation and serves over 55 schools, development of green spaces 500 teachers and within the communities 10,000 student
Slide 28: Awards & Accolades – Testimony to Excellence
Awards & Accolades – Testimony to Excellence Marketing Sustainability & CSR Marketing Services Sustainability Award “Spaces” (2018) Amongst Top 100 GIGA GURU status from Companies in India Walmart for Sustainability 2019 Asia’s 50 Power Businesswoman Dipali Goenka Highest Exports Featured at #16 in
Slide 29: Key Milestones
Key Milestones Revenues (Rs. Bn) 66 61 53 32 Began Operations 1.3 4.5 16 FY 1985 1993 1995 2005 2006 2008 2010 2012 2014 2015 2016 2017 2018 2019 Began the Acquired Christy – Embarked upon Commissioned Established journey in Most prestigious capacity expansion India’s largest industry defining, text
Slide 30: Experienced Board & Management with Proven Track Record
Experienced Board & Management with Proven Track Record Board of Directors Management Team Rajesh Mandawewala, Managing Director; Member of Board • Qualified Chartered Accountant; Played an instrumental role in establishing Welspun’s Textile & Pipe business B. K. Goenka, Chairman • Leading new strat
Slide 31: Global Market Opportunity
Global Market Opportunity Global Home Textile Market US Home Textile Market (2018) Market Composition USD Bn USD Bn $ 0.3 Row CAGR $ 5.0 Cotton Pillowcases 25% 6.6% 242 Other Non-cotton Products $ 1.4 145 Cotton Sheets 80 $ 3.0 US $ 1.6 31% 48 Other Cotton Products Cotton Towels $ 1.0 2017 2025E $ 4
Slide 32: Disclaimer
Disclaimer The information contained in this presentation is provided by Welspun India Limited (the “Company”), although care has been taken to ensure that the information in this presentation is accurate, and that the opinions expressed are fair and reasonable, the information is subject to change
Slide 33: Thank You
THANK YOU For further details, please contact Altaf Jiwani Director (Finance) & CFO Welspun India Limited Email: altaf_jiwani@welspun.com Harish Venkateswaran AVP-Group Finance and Strategy Email: harish_venkateswaran@welspun.com