Renaissance Global Limited · NSE:RGL
Renaissance Global — Q2 FY22 Earnings Presentation
31 slides from Renaissance Global's earnings presentation, Nov 1, 2021
Slide 1: Results Presentation Q2 & H1 FY22
Results Presentation Q2 & H1 FY22
Slide 2: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Global Limited (“Renaissance” or the Company) that are not historical in nature. These forward-looking statements, which may include statements relating to future results of operations,
Slide 3: Content
Content Q2 & H1 FY22 Company Results Annexure Overview Overview 4 17 27 3
Slide 4: Q2 & H1 Results Overview
O Renaissance Global Limited Q2 & H1 Results Overview
Slide 5: Q2 & H1 Financial Summary
Q2 & H1 Financial Summary Total Income (Rs. Mn.) EBITDA (Rs. Mn.) 8,974.8 EBITDA 8.3% 11.3% 4.6% 10.6% 7,216.5 Margin (%) 951.8 5,319.9 4,778.9 10% * 24% 442.3 538.4 330.8 22% 188% Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 * YoY not comparable, please refer the note below Q2 FY21 Q2 FY22 H1 FY21 H1 FY22 P
Slide 6: Management Message
Management Message Commenting on the performance for Q2 & H1 FY22, Mr. Sumit Shah – Vice Chairman and Global CEO, Renaissance Global Limited said, “We are pleased to share that we have reported an encouraging performance in the second quarter of the fiscal, with Q2 total income higher by 4*% and PAT
Slide 7: Key Developments
Key Developments Established a Strategic Advisory Board (SAB) The SAB, comprising three renowned executives with diverse industry experience, will be working closely with Renaissance’s leadership team, offering guidance and direction on the strategic growth initiatives Given the vast and untappe
Slide 8: Key Developments
Key Developments Awarded India's largest exporter of Studded Precious Metal Jewellery at the 46th GJEPC Awards function Renaissance has received this prestigious prize for the ninth time The Company was evaluated based on its outstanding export performance and value additions to the Industry 8
Slide 9: Growing Direct to Consumer (D2C) Business
Growing Direct to Consumer (D2C) Business During Q2 FY22, D2C business grew by 129% YoY driven by higher consumption across key markets On a QoQ basis, revenues were lower as Mother’s Day Holiday sales happened during Q1 FY22, with no major sale opportunities in Q2 FY22 The D2C business is a h
Slide 10: Q2 & H1 Operational Summary
Q2 & H1 Operational Summary Revenue Mix (%) Revenue Break-up Q2 Q2 H1 H1 Shift % Shift % (Rs. Mn.) FY22 FY21 FY22 FY21 20% 18% 21% 18% Branded Jewellery 950.4 918.7 3.4% 1,865.4 1,262.3 47.8% - B2B 746.8 829.2 -9.9% 1,412.1 1,115.4 26.6% 66% 67% - D2C 203.6 89.4 127.6% 453.2 146.9 208.6% 74% 73% Cus
Slide 11: Q2 FY22: Financial & Operational Discussions (Y-o-Y)
Q2 FY22: Financial & Operational Discussions (Y-o-Y) Revenue Total income stood at Rs. 4779 million from Rs. 4592* million, higher by 4% Branded Jewelry business revenues up 3% YoY to Rs. 950 million. Q2 FY21 revenue included a one-time B2B sale on account of launch of new brand ‘Disney Treasures’
Slide 12: Strong Balance Sheet
Strong Balance Sheet Leverage Net Debt (Rs. Mn.) Equity (Rs. Mn.) Net debt/Equity (X) 0.76 0.51 0.52 Highly disciplined balance sheet approach 0.51 0.36 6,647 0.29 Sharp reduction in net debt over the years 6,992 7,839 8,938 5,495 8,429 5,033 3,612 4,023 Net Debt to Equity ratio as of Sep 2,85
Slide 13: Robust Free Cash Flow Generation
Robust Free Cash Flow Generation Free Cash Flow Generation (Rs. Mn.) 1,128 1,128 1,941 -438 -3,512 Strong FCF generation over the last 2 years Branded Jewellery - a low capital- intensive business FY18 FY19 FY20 FY21 Sep-21 TTM Operating leverage & minimal capex spends to further improve Cash,
Slide 14: Healthy Return Ratios
Healthy Return Ratios Return on Equity (%) TTM Return on Equity grew to 11.1% 12.90% 13.50% 11.90% 11.10% vs Return on Equity for FY21 at 6% due to impact of Covid-19 6.00% Branded business enjoys ROEs in the range of 22-25%. D2C business FY18 FY19 FY20 FY21 TTM enjoys even higher ROEs As cont
Slide 15: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Y-o-Y Y-o-Y Particulars (Rs. Million) Q2 FY22 Q2 FY21 H1 FY22 H1 FY21 Change (%) Change (%) Revenues from Operations 4,771.0 5,228.7 -8.8% 8,865.9 7,084.3 25.1% Other Income 7.9 91.2 108.9 132.2 -17.6% Total Income 4,778.9 5,319.9 -10.2% 8,974.8 7,216.5 24.4% COG
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (In ₹ Mn) Sep-21 Sep-20 Particulars (In ₹ Mn) Sep-21 Sep-20 Shareholder's Funds 8,938.4 7,839.9 Non-Current Assets Equity Share Capital 186.8 186.8 Fixed Assets – Tangible & Intangible 1,951.0 860.3 CWIP & Intangibles under Reserves & Surplus 8,750.7 7,653.1 de
Slide 17: Company Overview
O Renaissance Global Limited Company Overview
Slide 18: Corporate Snapshot
Corporate Snapshot Global Jewellery Company focused on designing, manufacturing and distribution of branded jewellery 3 6 505 cr Licensing Direct-to- Branded jewellery agreements with Consumer revenues (Rs.) in global brands websites H1 FY22 Strong presence in global markets of North (annualised) Am
Slide 19: Building a Global Branded Jewellery Business
Building a Global Branded Jewellery Business Growing revenue contribution from Branded Jewellery Association with globally-recognized brands segment 21% Increased presence in high-potential key global 18% markets Renaissance’s Branded 13% Jewellery Better pricing on the back of branded products 10%
Slide 20: Branded Jewellery Business Model
Branded Jewellery Business Model Brands Design & Conceptualisation State-of-the-Art Manufacturing & Product Manufacturing Development Facilities Business-to- Distribution Direct-to- Business Consumer (D2C) (B2B) 20
Slide 21: 'Win-Win' Partnership with Global Iconic Brands
‘Win-Win’ Partnership with Global Iconic Brands Renaissance Global Global Brands PUSH STRATEGY PULL STRATEGY Conceptualisation & design Licensing agreements Brand development Manufacturing IP rights of brands Long-term license contracts Product marketing Marketing Distribution Spec
Slide 22: Growing Portfolio of Brands
Growing Portfolio of Brands Licensed Brands Partnership with Hallmark since 2015 Licensing arrangement with Disney since 2016 with the launch of Enchanted Disney Fine jewellery Success of brand unlocked more licensing opportunities Launched Disney Jewels in October 2019 & Disney Treasures in
Slide 23: Growing Portfolio of Brands
Growing Portfolio of Brands Owned Brands Launched first India-focused retail brand IRASVA in 2019 Operates 3 IRASVA stores in India Jewelili, a play on affordable fine jewellery collection launched in February 2020 Distributed through Amazon platform in addition to its own website Made for
Slide 24: Establishing High-Potential D2C Division
Establishing High-Potential D2C Division Launch Timeline Successfully developed February July November November February May and launched 6 online stores in a span of 15 2020 2020 2020 2020 2021 2021 months Monthly visitors on websites grown 10x since (UK) Feb 2020 Segment enjoys higher margin
Slide 25: Growth Drivers
Growth Drivers Growing high-margin branded jewellery segment Extending licensing model to newer brands Expanding presence in key global geographies Widening Omni-channel distribution network Inorganic growth opportunities 25
Slide 26: Conclusion
Conclusion Play on high-potential global branded jewellery industry ‘Win-Win’ partnership with global iconic brands Footprint in huge developed & developing global markets for branded jewellery Increasing scale to drive operating leverage across distribution channels High margin & low-capital intens
Slide 27: Annexure
iO Renaissance Global Limited Annexure
Slide 28: Market Snapshot
Market Snapshot Shareholding Pattern* Promoter & Promoter Group 70.8% Foreign Institutions (FPI, FII) 1.4% & NRI Individual - >1% 3.2% Others 24.6% As on Key Market Statistics 30-September-2021 BSE/NSE Ticker 532923/RGL CMP (Rs) 797.35 Market Cap (Rs Crore) 1,505.35 Number of outstanding shares (Cro
Slide 29: Conference Call Details
Conference Call Details Q2 & H1 FY2022 Earnings Conference Call Time • 2:30 p.m. IST on Wednesday, November 10, 2021 To enable participants to connect to the conference call Pre-registration without having to wait for an operator, please register at the below mentioned link: Primary dial-in number •
Slide 30: About Us
About Us Renaissance Global Limited (Renaissance) is a global branded jewellery player. Renaissance designs, manufactures and supplies branded jewellery across key high- potential markets in USA, Canada, UK & key Asian markets. The product portfolio encompasses Branded Jewellery, Customer Brands & P
Slide 31: Thank You
CO Renaissance Global Limited Thank You