VAIBHAVGBLNSE30 July 2021

Vaibhav Global Limited has informed the Exchange about Investor Presentation

Vaibhav Global Limited

VAIBHAV GLOBAL LIMITED

Ref: VGL/CS/2021/99

Date: 30th July, 2021

National Stock Exchange of India Limited (NSE) Exchange Plaza, C‐1, Block G, Bandra Kurla Complex, Bandra, Mumbai – 400 051 Symbol: VAIBHAVGBL

Subject: Financial Results Presentation

Dear Sir / Madam,

BSE Limited Phiroze JeejeeBhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 532156

Pursuant to regulation 30(6) of the SEBI (LODR) Regulations, 2015 please find enclosed Financial Results Presentation of Q1 FY2022.

Kindly take the same on record.

Thanking you,

Yours Truly,

For Vaibhav Global Limited

Sushil Sharma Company Secretary

E‐69, EPIP, Sitapura, Jaipur‐302022, Rajasthan, India • Phone: 91‐141‐2770648, Fax: 91‐141‐2770510

Regd. Office: K‐6B, Fateh Tiba, Adarsh Nagar, Jaipur – 302004, Rajasthan, India • Phone: 91‐141‐2601020, Fax: 91‐141‐2605077

CIN: L36911RJ1989PLC004945 • Email: investor_relations@vaibhavglobal.com • Website: www.vaibhavglobal.com

Global Retailer of Fashion Jewellery, Accessories and Lifestyle Products on Home Shopping TV and e-Commerce Platforms

DELIVERING JOY

Vaibhav Global Limited

Q1 FY22 - Financial Results Presentation

Safe Harbour

This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Vaibhav Global future business and its Limited (VGL) developments and economic performance.

affiliated companies’

While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, a number of risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations.

limited to, general market, These factors include, but are not macro‐economic, government and regulatory trends, movements in currency competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance.

and interest

exchange

rates,

Vaibhav Global Limited undertakes no obligation to periodically revise any forward-looking statements to reflect future/likely events or circumstances.

Results Presentation, July 2021

Commenting on Q1 FY22 Performance

MD’s Message

"We are pleased to start the year on a strong note with robust performance in Q1. Retail revenues improved by 22.8% and EBITDA increased by 26.2% YoY. This growth came on the back of deep value proposition, expanding product portfolio, and growing presence on various sales platforms in our core markets of US and UK. We generated Rs. 68 crore of operating cash flows and reported strong ROCE of 60%. I am excited to share that the first quarter marked our foray into the Germany market. We will operate with a similar value proposition and cater to a similar customer profile as the US and UK. The plan is to fully operationalize the Germany business on TV, Web, Marketplaces, Social and OTT during the year.

The 4Rs framework comprising of Reach, Registrations, Retention and Repeat purchases, forms the basis for driving operating performance. Vertically integrated model and a ~30 countries strong supply chain network is the back-bone of our business. And technology is the catalyst. Most importantly, our highly motivated teams, make it all come together to truly deliver joy to customers. Also, these are areas where we have been investing judiciously for long term growth.

We stepped into the year with renewed commitment to all stakeholders. Towards afforestation, 13,000 saplings were planted for developing a Miyawaki forest. Under our flagship CSR initiative ‘Your Purchase Feeds…’ we have now provided 55 million meals to school going children. The program offers more than just a meal, it also helps feed hearts, minds, and futures of children. At VGL, we are inspired by the idea of Humanocracy and are implementing some of these principles across the organization. For shareholders, we continue with quarterly pay-outs. An interim dividend of Rs. 1.5 per share (face value Rs. 2 per share) has been declared by the Board.

We believe, VGL is at an important point in its journey of becoming a global leader in electronic retailing of fashion jewelry and lifestyle products. We are excited by the opportunities that lie ahead and are confident that we have right strategy to drive sustainable growth and create value for all stakeholders.”

Mr. Sunil Agrawal Managing Director, Vaibhav Global Limited

Results Presentation, July 2021

Q1FY22 – Key Highlights

Robust 22.8% Y-o-Y growth in retail revenues

EBITDA grew by a strong 26.2% Y-o-Y (excluding Germany: 34.2%); margins improved 30 bps to 14.4% Y-o-Y(excluding Germany: margins improved 120 bps to 15.3%)

Strong return ratios with ROCE at 60% and ROE at 31% (TTM basis)

Operating Cash Flows at Rs. 68 crore and Free Cash Flows at Rs. 32 crore

Unique Customers (TTM basis) improved to 4,72,278 from 4,25,921 in the same period previous year

Expansion of retail footprint to Germany (Shop LC GmbH)

Declared interim dividend of Rs. 1.5 per equity share (face value Rs. 2 per share)

100% power requirement at manufacturing units in Jaipur (India) will be met through 3.23 mw solar power capacity

Provided 55 million meals since the inception of the one-for-one meal program ‘Your Purchase Feeds…’

Note: *Trailing Twelve Months

Results Presentation, July 2021

Table Of Contents

Business Background Details

Q1FY22 Financial Performance

Financial Performance Trends

Annexures

Results Presentation, July 2021

Business Background Details

Result Presentation, July 2021

Vaibhav Global Limited (VGL) at a Glance

VISION

Be the Value Leader in Electronic Retailing of Jewellery & Lifestyle Products

MISSION

To deliver one million meals per day to children in need by ‘FY31’ through our one for one meal program : ‘Your Purchase Feeds…‘

Team-Work

Honesty

Passion

Positive Attitude

Commitment

CORE VALUES

Results Presentation, July 2021

Our Global Presence

China

India

Retail Markets

Sourcing Countries

Manufacturing Countries

Retail Markets

Shop LC | Shop TJC | Shop LC (Germany) (UK)

(US)

Operate Through Marketplaces

Canada | Japan

Sourcing

▪ Mozambique ▪ Germany ▪ Italy ▪ Turkey ▪ Poland ▪ Singapore ▪ UAE ▪ Japan ▪ Bangladesh ▪ Philippines ▪ Czech Republic ▪ Nepal ▪ Taiwan ▪ Australia ▪ Bhutan ▪ Pakistan

▪ India ▪ China ▪ Thailand ▪ Indonesia ▪ Tanzania ▪ Russia ▪ Morocco ▪ Myanmar ▪ Madagascar ▪ Bolivia ▪ Kenya ▪ South Korea ▪ Vietnam ▪ Brazil ▪ Sri Lanka ▪ US ▪ UK Manufacturing Countries

India | China

Results Presentation, July 2021

Corporate Overview

Vertically- integrated fashion retailer on electronic retail platforms

> End-to-end B2C business model > Presence on

- Proprietary TV home-shopping - Proprietary e-commerce platforms - Social - Third-party Marketplaces

Shop LC (US) & Shop TJC (UK) are brands with strong customer visibility

> TV Homes accessed (*FTE) – 102.5

million

> Growing online presence > Improving customer engagement metrics

Strong management and governance

> Professional management team > Strong and Independent Board > B S R & Co. LLP – Global Auditor > Deloitte – Internal Auditor

Exceptional one for one social program – ‘Your Purchase Feeds…’

> Every piece sold results in one meal for a

school-going child

> Provided 55 mn meals across India, US &

Solid infrastructure backbone

> Investments in customer interface,

production, warehousing facilities, supply chain, CRM & ERP

> Scalable model with limited capex

requirement

Robust customer engagement

> Omni-channel B2C retail presence > Growing recognition of deep value fashion jewellery enables scaling to adjacent categories

Results Presentation, July 2021

4R’s of Customer Engagement

102.5mn

TV – Linear / OTA

Web - Browsers / Mobile Apps / Social Media / Market-places / OTT

2.9lakh (TTM)

Diverse Products

Deep value proposition

Engrossing Content

45.7% (TTM)

30*(TTM)

Enduring relationships

Expanding wallet share

Convenience

Digitalization/AI

Cross-selling

Reach

Registrations

Retention

Repeat Purchases

Note: TTM – Trailing Twelve Months | *pieces per customer

Results Presentation, July 2021

Our Omni-Channel Sales Platform

Shop LC Proprietary TV channels – 77.5 mn HH including 18.6mn OTA* HH*

Shop LC live TV stream on shoplc.com, YouTube, Facebook and Amazon Live

Shop LC (US)

Proprietary web platform

Shop LC mobile app available on

WEB

www.shoplc.com

Marketplaces

Google Marketplace

OTT* platforms

Social retail of targeted products on

Product Information Management

Targeted Campaign Management

Customer Experience Management

UGC and Influencer Marketing Platform

Note: OTA – Over the Air; OTT – Over the Top; HH - Households

Results Presentation, July 2021

Our Omni-Channel Sales Platform

WEB

Shop TJC Proprietary TV channels – 25 mn HH including 17 mn OTA* HH*

Shop TJC live TV stream available on tjc.co.uk, YouTube and Facebook

Shop TJC (UK)

Proprietary web platform

www.tjc.co.uk

Shop TJC mobile app available on

Marketplaces

Social retail of targeted products on

OTT* platforms

Targeted Campaign Management

Customer Experience Management

UGC and Influencer Marketing Platform

Note: OTA – Over the Air; OTT – Over the Top; HH - Households

Results Presentation, July 2021

Business Transition Dashboard

B2C Revenues by Format

B2C Revenues by Product Category

TV revenues

Web revenues

22%

78%

36%

64%

36%

64%

FY17

FY21

Q1 FY22

56% of web revenues in Q1 FY22 were from Mobile platform (mobile app + mobile web browser)

Jewellery

Non-jewellery revenues

11%

89%

31%

69%

31%

69%

FY17

FY21

Q1 FY22

Jewellery revenues: Fashion jewellery; Non-jewellery revenues: Fashion accessories and lifestyle products

B2C Revenues by Geography

Budget Pay penetration of B2C Revenues

24%

76%

31%

69%

32%

68%

Non-Budget Pay revenues

Budget Pay revenues

23%

77%

36%

64%

38%

62%

FY17

FY21

Q1 FY22

FY17

FY21

Q1 FY22

Breakup based on revenue in USD million

Budget Pay revenues refer to products offered on EMI basis

Results Presentation, July 2021

Q1 FY22 Financial Performance

Result Presentation, July 2021

Financials – Q1 FY22 Performance

Revenue Breakdown – (Rs. crore)

Fashion Jewelry, Accessories & Lifestyle Products

Revenue

TV Revenue

Web Revenue

B2B Revenue

23.9% 682

24.6%

426

550

342

19.7%

243

203

130.9%

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Note: B2B has been a non-core and opportunistic business segment

Results Presentation, July 2021

Financials – Q1 FY22 Performance

Revenue Breakdown – (Local Currency)

Shop LC (US)

Shop TJC (UK)

(USD million)

(GBP million)

21.2%

61.8

21.1%

20.8

51.0

17.1

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Results Presentation, July 2021

Retail Performance Trends – Q1 FY22

Volume and ASP

TV Sales

1,880

Sales Volume ('000s)

Average Selling Price US$

1,964

24.1

29.5

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Web Sales

Sales Volume ('000s)

1,382

Average Selling Price US$

23.8

1,306

20.6

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

Results Presentation, July 2021

Financials – Q1 FY22 Performance

Profits – (Rs. crore)

Gross Profit

Gross Margin (%)

64.3%

354

65.0% 25.3% 444

*EBITDA

EBITDA Margin (%)

14.1%

14.4% 26.2% 98

Q1 FY21

Q1 FY22

Q1 FY21

Q1 FY22

***PAT

PAT Margin (%)

9.6%

14.5%

86.6% ** 99

9.6%

24.4% 66

***EPS (Rs.) – Post split

3.27

**6.07

4.05

Q1 FY21

Q1 FY22

Q1 FY22 (before exceptional item)

Q1 FY21

Q1 FY22

Q1 FY22 (before exceptional item)

Note: Q1FY22: *Excluding Germany - EBITDA growth: 34.2% Y-o-Y; EBITDA margins: 15.3% **PAT includes exceptional item related to waiver of PPP loan (net of expenses) amounting to Rs. 32.90 crore; ***Excluding Germany & exceptional item: PAT growth: 36.2%; PAT margin: 10.6%; EPS – Rs. 4.43

Results Presentation, July 2021

Financial Performance Trends

Result Presentation, July 2021

Financial Performance Trends

Revenue Breakdown – (Rs. crore)

5 Year CAGR: 14.8%*

1,436

1,571

Revenue

2,540

1,814

1,986

23.9%

682

550

Fashion Jewelry, Accessories & Lifestyle Products

FY17

FY18

FY19

FY20

FY21

Q1FY21

Q1FY22

5 Year CAGR: 11.5%

TV Revenue

1,606

972

997

1,157 1,285

Web Revenue

5 Year CAGR: 32.4%

909

B2B Revenue

5 Year CAGR: -26.9%

24.6%

342

426

373

274

633

510

19.7%

190

201

147

203

243

130.9% 13

FY17

FY18

FY19

FY20

FY21 Q1FY21 Q1FY22

FY17

FY18

FY19

FY20

FY21 Q1FY21 Q1FY22

FY17

FY18

FY19

FY20

FY21 Q1FY21 Q1FY22

Note: B2C Revenue CAGR – 16.9%

Results Presentation, July 2021

Retail Performance Trends

Volume and ASP

TV Sales

Sales Volume ('000s)

Average Selling Price US$

5,877

5,737

6,275

6,070

7,837

24.9

27.0

26.4

29.9

27.7

29.5

24.1

1,880

1,964

FY17

FY18

FY19

FY20

FY21

Q1FY21 Q1FY22

FY17

FY18

FY19

FY20

FY21

Q1FY21 Q1FY22

Web Sales

Sales Volume ('000s)

5,409

3,522

4,113

2,353

2,840

1,306

1,382

Average Selling Price US$

20.4

20.7

21.7

22.7

20.6

23.8

17.5

FY17

FY18

FY19

FY20

FY21

Q1FY21 Q1FY22

FY17

FY18

FY19

FY20

FY21

Q1FY21 Q1FY22

Results Presentation, July 2021

Financial Performance Trends

Profits – (Rs. crore)

Gross Profit

Gross Margin (%)

60.1%

59.6%

62.5%

61.6%

62.3%

64.3%

65.0%

1,133 1,224

1,583

865

936

354

444

*EBITDA

EBITDA Margin (%)

7.1%

10.1%

12.0%

13.9%

15.3%

14.1%

14.4%

CAGR: 38.9%

102

159

388

276

217

26.2%

FY17

FY18

FY19

FY20

FY21

Q1FY21 Q1FY22

FY17

FY18

FY19

FY20

FY21

Q1FY21 Q1FY22

***PAT

PAT Margin (%)

***EPS (Rs.) – Post split

4.5%

7.2%

8.5%

9.6%

10.7%

9.6%

14.5%

9.6%

CAGR: 46.7%

113

272

190

154

86.6% ** 99

24.4% 66

6.91

3.97

16.77

11.73

9.45

**6.07

4.05

3.27

FY17

FY18

FY19

FY20

FY21 Q1FY21 Q1FY22 Q1FY22 (Before exceptional item)

FY17

FY18

FY19

FY20

FY21 Q1FY21 Q1FY22 Q1FY22

(Before exceptional item)

Results Presentation, July 2021

Financial Performance Trends

Balance Sheet – (Rs. crore)

Shareholders’ Equity

Fixed assets including intangibles

434

550

697

** 751

** 964

** 1,081

126

120

117

**163

** 192

**234

FY17

FY18

FY19

FY20

FY21

Q1FY22

FY17

FY18

FY19

FY20

FY21

Q1FY22

Net Debt FY17 6

FY18

FY19

FY20

FY21

Q1FY22

(13)

(181)

(194)

Net Assets ***

314

417

399

** 394

** 395

** 398

Note: ** Ind AS 116 – Leases, has become effective beginning 01 April 2019. The Group has adopted the standard beginning 01 April 2019. *** Net Assets is the balancing figure arrived at by excluding shareholders equity, net debt, and fixed assets including intangibles

Results Presentation, July 2021

(377)

(449)

FY17

FY18

FY19

FY20

FY21

Q1FY22

Financial Performance Trends

Cash Flow – (Rs. Crore)

Operating Cash flow

Free Cash Flow

324

268

203

211

181

176

FY17

FY18

FY19

FY20

FY21

Q1FY21 Q1FY22

FY17

FY18

FY19

FY20

FY21

Q1FY21 Q1FY22

Results Presentation, July 2021

Financial Performance Trends

Key Ratios

ROE (TTM)

16%

25%

26%

23%

ROCE (TTM)

32%

31%

61%

60%

46%

37%

27%

18%

FY17

FY18

FY19

FY20

FY21

Q1FY22

FY17

FY18

FY19

FY20

FY21

Q1FY22

Note - ROE – based on average net worth ROCE – based on average capital employed

Results Presentation, July 2021

Annexures

Result Presentation, July 2021

Growth in Digital Commerce

Industry

US Retail & E-com Sales

UK Retail & E-Com Sales

Retail Sales ($ Tn)

E-com as % of Retail Sales

Retail Sales (£ Bn)

E-com as % of Retail Sales

4.8

5.0

5.4

5.6

5.2

14.0%

13.6%

405.7

423.7

387.6

9.9%

9.1%

8.2%

11.0%

439.6

436.8

27.8%

31.1%

217.3

1.6

14.5%

16.2%

17.9%

19.1%

2016

2017

2018

2019

2020

Jan.-Mar. 2021

2016

2017

2018

2019

2020

Jan.-June 2021

Source: United States Census Bureau www.census.gov

Source: Office for National Statistics www.ons.gov.uk

Results Presentation, July 2021

Robust Corporate Governance

Q1 FY22

Rs. 24.5cr

Dividend (interim dividend)

Dividend Payout Policy

> 20-30% of consolidated free cash flow > Higher payout in special circumstances > Balance between resource conservation and shareholder

reward

Best Governed Company

Award at ICSI National Awards for Excellence in Corporate Governance in Jan 21

B S R & Co. LLP

DELOITTE

Statutory Auditors

Internal Auditors

ICRA A (Stable Outlook) CARE A (Stable ) Credit Rating – Long-term

ICRA A1

CARE A1

Credit Rating – Short-term

Results Presentation, July 2021

Environmental Initiatives

ENERGY

3.23 mw

Solar power capacity meets 100% power requirement at manufacturing units in Jaipur

LEED Platinum

certified unit at SEZ in Jaipur, Rajasthan

BIODIVERSITY

~13,000

~5,100

Saplings planted for developing a Miyawaki forest

Additional saplings planted till date

Reduce, Recycle, Reuse and Reclaim

WATER

52lac ltrs.

Rainwater harvested per annum

5kl 43kl

Water saved per day with the installation of low LPM faucets

water recycled per day, which equals 15,000 kl. per year

WASTE

100%

conversion of bio- degradable waste (vegetables, food, leaves) into manure

Results Presentation, July 2021

Community Giveback

> Served 55 million meals to underprivileged children through flagship One for One Program, Your Purchase Feeds…

> Local charity partners

- Akshaya Pātra in India - No Kid Hungry and Backpack Friends in US - Magic Breakfast & Felix Project in UK

Covid-19 Key Initiatives

> Donated an Oxygen plant

to Santokba Durlabhji Memorial Hospital in Jaipur, Rajasthan. This plant has a total capacity of generating 30 cubic meter oxygen per hour

> Distribution 117 Oxygen concentrators, 36 BIPAP, 4

ventilators

Results Presentation, July 2021

VGL Shareholder Base – As on 30-June-2021

Key Shareholders (Holding 1%+)

Holding as on 30-June-21

Shareholding Pattern

Promoter & Promoter Group

Nalanda India Fund Limited (FII)

Motilal Oswal Flexi Cap Fund (MF)

Malabar India Fund Limited (FPI)

Vijay Kedia (Individual)

Ashish Kacholia (Individual)

58.16%

10.29%

6.86%

5.60%

1.84%

1.38%

Others

7.92%

Individual - >1%

3.22%

AIF

1.32%

Domestic Institutions (MF)

6.90%

Foreign Institutions (FPI, FII) & NRI

22.48%

Promoter & Promoter Group

58.16%

Results Presentation, July 2021

Management Team

Mr. Sunil Agrawal Managing Director, VGL Group

Mr. Vineet Ganeriwala CFO, VGL Group

Mr. Amit Agarwal President, Shop LC (US)

Mr. Srikant Jha Managing Director, Shop TJC (UK)

Mr. Jay Chandran Chief Technology Officer, VGL Group

Mr. Raj Singh Vice President, Supply Chain, VGL Group

Mr. Pushpendra Singh Vice President, Human Resources, VGL Group

Mr. Deepak Mishra Managing Director, Shop LC (Germany)

www.vaibhavglobal.com/vgl-management

Results Presentation, July 2021

THANK YOU

For more information please contact:

Vineet Ganeriwala, Group CFO Vineet@vglgroup.com

+91-141-2771975

Dipti Rajput, Head-IR Dipti.Rajput@vglgroup.com

+91-9116653352

← All Transcripts VAIBHAVGBL Stock Page →

Vaibhav Global Limited has informed the Exchange about Investor Presentation

Market Movers