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Black Bear Labs RGL · Q1 FY23 · earnings call

RGL

Renaissance Global reported a strong top-line growth of 37% YoY in Q1 FY23, driven by the Branded Jewellery segment which grew 36%. The Direct-to-Consumer (D2C) business showed robust expansion with a 63% increase. However, EBITDA margins declined due to inflationary pressures on raw materials. Management expressed cautious optimism about near-term challenges but remained positive on long-term growth opportunities.

Scale of reported figures

Total Income₹575 crBranded Jewellery Revenues₹124 crDirect-to-Consumer (D2C) Reven₹41 crEBITDA₹42 crPAT₹24 cr

Key financials

Total Income₹575 croreYoY
Branded Jewellery Revenues₹124 croreYoY
Direct-to-Consumer (D2C) Revenues₹40.7 croreYoY
EBITDA₹42 croreYoY
PAT₹24.2 croreYoY

Segment commentary

Branded Jewellery

Strong growth of 36% YoY, supported by steady retail consumption and expansion in D2C channels.

Direct-to-Consumer (D2C)

Revenue up 63% YoY with notable increase in repeat customer wins. Margins are high at 20-22%, contributing to improving EBITDA trends.

Guidance & outlook

  • Anticipate muted global consumption for discretionary products due to inflation but remain optimistic on long-term growth in international markets.
  • Expect challenges related to raw material inflation to be transitory.

Key takeaways

  • Strong top-line growth driven by Branded Jewellery and D2C segments despite margin pressures.
  • High EBITDA margins from the D2C business are expected to improve overall profitability moving forward.
  • Management cautious on near-term challenges but optimistic about long-term international growth opportunities.

Risks flagged

  • Inflationary pressures on raw materials affecting margins.
  • Muted global consumption for discretionary products due to inflation.

In their words

“Our core branded jewellery business marked strong growth in revenues to the tune of 36% YoY in Q1 FY23, supported by steady retail consumption.”— Sumit Shah
herofinancialssegmentstakeawaysquote
Educational analysis only. Not investment advice. Consult a SEBI-registered advisor before investing. Source: https://nsearchives.nseindia.com/corporate/RGL_08082022200818_RGLPressReleaseQ1FY23NSESIGNED.pdf
Full transcript (4,263 words)
Ref. No.: RGL/S&L/2022/162 August 8, 2022 Bombay Stock Exchange Limited National Stock Exchange of India Ltd. Listing Department Exchange Plaza, Plot no. C/1, Phiroze Jeejeebhoy Towers G Block, Bandra Kurla Complex, Dalal Street, Fort, Bandra (East), Mumbai – 400 001 Mumbai - 400 051 Sub.: Press Release and earnings presentation for Q1 FY 23. Dear Sir We are enclosing herewith Press Release for Q1 FY23 Earnings and Earnings Presentation for Q1 FY23 to highlight the performance of First quarter ended June 30, 2022 We request you to upload the same under the suitable section of your website. Thanking you, Yours faithfully, For Renaissance Global Limited CS Vishal Dhokar Company Secretary & Compliance Officer Encl.: As Above PRESS RELEASE Renaissance Global announces Q1 FY23 Results Q1 FY23 Total Income stood at Rs. 575 crore higher by 37% YoY Direct-to-Consumer business revenues up 63% to Rs. 41 crore EBITDA stood at Rs. 42 crore, with margins at 7.3% PAT improves to Rs. 24.2 crore Mumbai, August 08, 2022: Renaissance Global Limited, a branded and differentiated jewellery products Company, has announced its financial results for the quarter year ended June 30, 2022. Q1 FY23 performance overview compared with Q1 FY22  Total Income stood at Rs. 575.4 crore from Rs. 419.6 crore up by 37% o Branded Jewellery business revenues up 36% to Rs. 124.1 crore o Direct-to-Consumer business revenues up 63% to Rs. 40.7 crore  EBITDA at Rs. 42.0 crore as against Rs. 41.3 crore, up by 2% o EBITDA Margins stood at 7.3% as against 9.9%, lower by 276 bps  PAT, after discontinued operations, stood at Rs. 24.2 crore as against Rs. 23.7 crore, higher by 2% Commenting on the performance for Q1 FY23, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said, “We have delivered a healthy top-line performance during the quarter despite a challenging macro- environment in our key global markets. Our total income growth for Q1FY23 came in at 37% YoY. While the demand environment remained steady, we witnessed some non-linearities with regards to increased inflationary pressures in key raw materials. These had a bearing on our margin performance during the quarter. Although we do remain cautious of these challenges in this fiscal, we expect them to be largely transitory in nature. Our core branded jewellery business marked strong growth in revenues to the tune of 36% YoY in Q1 FY23, supported by steady retail consumption. Within this segment, our direct-to-consumer (D2C) business delivered 63% revenue growth. It also continues to witness a notable increase in repeat customer wins. Overall, this vertical is a key growth lever for us and we look forward to strengthening this segment, going forward. Looking ahead, given the intensifying inflation trend, we anticipate global consumption for discretionary products to be muted in the near future. However, on a longer-term basis, we are optimistic about our growth prospects and potential in our international markets such as US, Europe and UK. There are several growth opportunities in the international branded jewellery market, and we believe, we are well-positioned to tap upon these given our partnerships with well-known brands, our significant experience in product conceptualization, our design skills, and a solid distribution network. Overall, we look forward to delivering healthy and sustainable growth, going ahead” Key Developments – Direct to Consumer (D2C) Business Update:  During Q1 FY23, the direct-to-consumer business posted revenues of Rs. 40.7 crore compared to Rs. 25.0 crore in Q1 FY22, up by 62.9% YoY  Based on our estimates of a quarter’s contribution to annual sales, our annual revenue run rate is at Rs. 203.6 crore in Q1 FY23 vs. actual FY22 revenues of Rs.123.8 crore  The D2C business is a high EBITDA margin business with margins in the range of 20-22%  With the growing share of direct-to-consumer revenues to total revenues, Renaissance is confident of its EBITDA margins showing an improving trend, going forward  In the past quarters, the Company has launched six direct-to-consumer websites, as below, o Enchanted Disney Fine Jewelry – https://www.enchantedfinejewelry.com/ & https://enchantedfinejewelry.co.uk/ o Lab Grown Diamonds jewellery website - https://diamondsmadeforyou.com o Jewelili – https://www.jewelili.com o Star Wars Fine Jewelry - https://starwarsfinejewelry.com o Hallmark Diamonds - https://www.hallmarkdiamondscollection.com o IRASVA - https://www.irasva.com/ – ENDS – About Renaissance Global Limited (Renaissance) Renaissance Global Limited, (Renaissance) (BSE: 532923, NSE: RGL), 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 & Plain Gold Jewellery segments, with strong focus on Branded Jewellery division. The Company has a growing portfolio of brands under licensed and owned segments. It holds synergistic licensing agreements with large global brands, such as Disney, Hallmark, and NFL. Under its owned segment, it has a portfolio of brands such as Irasva, Jewelili and Made For You. Over the years, Renaissance has successfully expanded its branded product portfolio, backed by strong conceptualization, design, and manufacturing capabilities. On the distribution side, the Company operates through both B2B and D2C models. Since 2020, Renaissance has launched online stores through 6 D2C websites to market & supply licensed brands & owned brands. For further information on the Company, please visit www.renaissanceglobal.com Snehkumar Purohit Anoop Poojari / Jenny Rose Renaissance Global Limited CDR India Tel: +91 96534 84380 Tel: +91 98330 90434 / +91 86899 72124 Email: Snehkumar.purohit@renaissanceglobal.com Email: anoop@cdr-india.com / jenny@cdr-india.com DISCLAIMER: This press release 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, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of Renaissance about the business, industry and markets in which Renaissance operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond Renaissance’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of Renaissance. In particular, such statements should not be regarded as a projection of future performance of Renaissance. It should be noted that the actual performance or achievements of Renaissance may vary significantly from such statements. 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, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of Renaissance about the business, industry and markets in which Renaissance operates. These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond Renaissance’s control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of Renaissance. Such statements should not be regarded as a projection of future performance of Renaissance. It should be noted that the actual performance or achievements of Renaissance may vary significantly from such statements. 2 Content Q1 FY23 Company Annexure Results Overview Overview 4 15 28 3 Q1 FY23 Financial Summary Total Income (Rs. Crore) EBITDA (Rs. Crore) EBITDA 9.9% 7.3% Margin (%) 37% 2% 575 420 41 42 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 PAT (Rs. Crore) EPS[1] (Rs.) PAT 5.7% 4.2% Margin (%) 2.52 2.57 2% 2% 23.8 24.2 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 [1] After the end of quarter under review, the Company has sub-divided the exiting 1 (one) equity share of face value of ` 10/-each fully paid-up into 5 (five) equity shares of face value of ` 2/-each fully paid-up with effect from July 20, 2022 (Record Date). The Earning Per Share (EPS) number of the current quarter and all comparative periods presented above have been restated to give effect of such 5 sub-division of equity shares. Management Message Commenting on the performance for Q1 FY23, Mr. Sumit Shah – Chairman and Global CEO, Renaissance Global Limited said, “We have delivered a healthy top-line performance during the quarter despite a challenging macro-environment in our key global markets. Our total income growth for Q1FY23 came in at 37% YoY. While the demand environment remained steady, we witnessed some non-linearities with regards to increased inflationary pressures in key raw materials. These had a bearing on our margin performance during the quarter. Although we do remain cautious of these challenges in this fiscal, we expect them to be largely transitory in nature. Our core branded jewellery business marked strong growth in revenues to the tune of 36% YoY in Q1 FY23, supported by steady retail consumption. Within this segment, our direct-to- consumer (D2C) business delivered 63% revenue growth. It also continues to witness a notable increase in repeat customer wins. Overall, this vertical is a key growth lever for us and we look forward to strengthening this segment, going forward. Looking ahead, given the intensifying inflation trend, we anticipate global consumption for discretionary products to be muted in the near future. However, on a longer-term basis, we are optimistic about our growth prospects and potential in our international markets such as US, Europe and UK. There are several growth opportunities in the international branded jewellery market, and we believe, we are well-positioned to tap upon these given our partnerships with well-known brands, our significant experience in product conceptualization, our design skills, and a solid distribution network. Overall, we look forward to delivering healthy and sustainable growth, going ahead” 6 Growing Direct to Consumer (D2C) Business  During Q1 FY23, the direct-to-consumer business posted revenues of Rs. 40.7 crore compared to Rs. 25.0 crore in Q1 FY22, up by 62.9% YoY  Based on our estimates of a quarter’s contribution to annual sales, our annual revenue run rate is at Rs. 203.6 crore in Q1 FY23 vs. actual FY22 revenues of Rs.123.8 crore  D2C business is a high EBITDA margin business with margins in the range of 20-22% With the growing share of D2C revenues to total revenues Renaissance believe EBITDA margins will show an improving trend   The business enjoys a strong return profile with ROEs in the range of 60-65%  The contribution from repeat customers continues to be on an improving trend, showcasing higher costumer stickiness and brand trust Quarterly D2C Sales Annual D2C Sales Trend Repeat Customers as a Trend (Rs. Cr.) % of overall (Rs. Cr.) customer traffic* 2 Year CAGR: 77% 204 16% 41 124 8% 25 65 Q1 FY21 FY23 FY21 FY21 FY23* FY21 FY22 * Annual Revenue Run Rate * Repeat Customer (%) for the website enchantedfinejewelry.com Kindly click on the logos above to visit Renaissance’s D2C websites 7 Q1 FY23 Operational Summary Revenue Break-up Q1 Q1 Revenue Mix (%) Shift % (₹ Cr.) FY23 FY22 Plain Gold Customer Brands Branded Jewellery Branded Jewellery 124.1 91.5 35.6% 22% 22% 23% - B2B 83.4 66.5 25.3% - D2C 40.7 25.0 63.1% 68% 71% 70% Customer brands 392.0 290.7 34.9% Plain Gold 57.6 27.3 111.1% 10% 7% 7% Total Revenues 573.8 409.5 40.1% Q1 FY23 Q1 FY22 FY22 EBITDA Break-Up Q1 FY23 Q1 FY22 Shift YoY Q4FY22 Shift QoQ EBITDA (₹ Cr) EBITDA (%) EBITDA (₹ Cr) EBITDA (%) EBITDA (₹) EBITDA (₹ Cr) EBITDA (%) EBITDA (₹) Branded 16.2 13.1% 13.8 15.0% 17.8% 16.2 13.6% -0.1% - B2B 10.1 12.1% 9.2 13.9% 8.9% 10.8 12.0% -7.0% - D2C 6.1 15.1% 4.5 18.1% 36.0% 5.4 18.3% 13.9% Customer brands 22.8 5.8% 26.0 8.9% -12.3% 19.8 5.34% 15.2% Plain Gold 3.0 5.2% 1.5 5.6% 94.5% 0.8 2.05% 273.9% Total EBITDA 42.0 7.3% 41.3 10.1% 1.7% 36.8 7.0% 14.1% 8 Q1 FY23: Financial & Operational Discussions (Y-o-Y) Revenue Total income stood at Rs. 575.4 crore from Rs. 419.6 crore, higher by 37% Branded Jewelry business revenues up 36% YoY to Rs. 124.1 crore  D2C business revenues grew by 63% to Rs. 40.7 crore  Revenue share of studded jewellery stood at 90%, with Branded jewellery business contributing 24% of the total studded jewelry  revenues EBITDA EBITDAcame in at Rs. 42.0 crore as against Rs. 41.3 crore, up by 1.6% EBITDA Margins stood at 7.3% as against 9.9%, lower by 276 bps. Non-linearities with regards to increased inflationary pressures in  key raw materials had a bearing on our margin performance during the quarter Branded business reported 13.1% margins, recording a decrease of 198 bps YoY  D2C business registered 15.1% margins, lower by 300 bps YoY  PAT PAT stood at Rs. 24.2 crore from Rs. 23.7 crore, higher by 1.8% YoY 9 Robust Free Cash Flow Generation Free Cash Flow Generation (Rs. Cr.) 87 194 113 66  Strong FCF generation  Branded Jewellery - a low capital- -351 intensive business FY19 FY20 FY21 FY22 TTM June 22  Operating leverage & minimal capex spends to further improve FCF generation, going ahead Cash, Cash Equivalents & Current Investments (Rs. Cr.) 282  Cash balances to be strategically 245 utilized to create shareholder value 209 152 57 FY19 FY20 FY21 FY22 As on June 22 10 Strong Balance Sheet Leverage Net Debt (Rs. Cr.) Equity (Rs. Cr.) Net debt/Equity (X) 0.76 0.52  Highly disciplined balance sheet 0.34 0.29 0.30 approach 665 699 843 924 929 503  Increase in capital deployment due to 364 242 280 318 higher business YoY reflecting in FY19 FY20 FY21 FY22 TTM June 22 higher equity & debt. Working Capital Net Debt to Equity ratio as of  Payable (Rs. Cr.) Receivable (Rs. Cr.) Inventory (Rs. Cr.) NWC (Days) June 2022 continues to be at 250 0.34 vs 0.30 in March 2022 194 189 174 179 200  Strict control over working capital 157 154 reflected in NWC days falling from 150 214* to 174 days 904 1,016 818 845 987 940 100 373 405 380 380 447 542 50 -293 -260 -250 -323 -147 -145 Total NWC (₹ Cr) 1,096 1,076 1,080 1,106 1,137 1,123 - FY19 FY20 FY21 TTM June 21 FY22 TTM June 22 * Net WorkingCycledaysis not comparabletoprevious periods duetorecent changeinrevenuerecognitionpolicyinthePlainGoldDivisionduetowhich, Renaissanceis now recognizingonlymakingchargesasrevenueforthisgolddivision.ThiswillmeaningfullyreducethereportedrevenuesofthecompanyleadingtoahigherNWCdaysnumber.Onalik1e1 tolikebasisrevenuerecognitiontheNWCcyclehasimprovedfrom214daysasonJune21to174daysinJune22. Healthy Return Ratios ROE ROE (Adjusted for Cash & Current Investments) 18.9% 17.6% 17.1% 16.6% 8.8%  Q1 FY23 Return on Equity continues to be 12.9% 13.5% 12.0% 12.1% at 12.1% vs 12.0% for FY22. It is as high 6.0% as 16.6% without considering cash & FY19 FY20 FY21 FY22 TTM June 22 current investments.  Branded business enjoys ROEs in the range of 22-25%. D2C business enjoys Return on Capital Employed (%) even higher ROEs  As contribution from branded business 13.2% 13.2% 10.8% increases, margin and return ratio profile is 9.9% expected to sustainably improve, going 6.7% forward. FY19 FY20 FY21 FY22 TTM June 22 12 Consolidated Profit & Loss Statement Y-o-Y Y-o-Y Particulars (Rs. Crore) Q1 FY23 Q1 FY22 FY22 FY21 Change (%) Change (%) Revenues from Operations 573.8 409.5 40.1% 2,189.8 2,031.2 7.8% Other Income 1.6 10.1 -83.8% 18.9 16.1 17.4% Total Income 575.4 419.6 37.1% 2,208.7 2,047.4 7.9% COGS 432.8 282.9 53.0% 1,610.3 1,658.5 -2.9% Gross Profit 142.6 136.7 4.3% 598.5 388.9 53.9% Gross Margin (%) 24.8% 32.6% -779 bps 27.1% 19.0% 810 bps Employee Expenses 27.5 26.0 5.9% 100.7 69.86 44.1% Advertisement & Sales Promotion Expenses 14.3 8.6 66.9% 79.5 49.8 59.6% Other Expenses 58.7 60.7 -3.3% 217.7 153.6 41.7% EBITDA 42.0 41.3 1.6% 200.5 115.6 73.5% EBITDA Margin (%) 7.3% 9.9% -255 bps 9.1% 5.6% 343 bps Depreciation and Amortization 2.8 4.8 -41.3% 17.9 31.4 -42.8% Amortization of Right of use assets 5.0 2.8 79.7% 17.1 10.7 59.9% Finance Costs 6.8 5.2 31.6% 24.4 25.0 -2.5% Interest on Leases 1.5 0.6 168.4% 4.6 1.7 165.9% PBT 25.8 28.0 -7.9% 136.5 59.2 130.4% Tax expense 1.6 4.2 -62.8% 30.0 12.98 131.3% PAT before discontinued operations 24.2 23.8 1.8% 106.5 46.3 130.1% PAT Margin (%) 4.2% 5.7% -146 bps 4.8% 2.3% 256 bps Profit/(Loss) on discontinued Operations 0.0 -0.1 - -4.0 PAT after discontinued operations 24.2 23.7 2.0% 106.5 42.3 151.8% EPS[1] (Rs.) 2.57 2.52 11.28 3.58 [1] After the end of quarter under review, the Company has sub-divided the exiting 1 (one) equity share of face value of ` 10/-each fully paid-up into 5 (five) equity shares of face value of ` 2/-each fully paid-up with effect from July 20, 2022 (Record Date). The Earning Per Share (EPS) number of the current quarter and all comparative periods presented above have been restated to give effect of such 13 sub-division of equity shares. Consolidated Balance Sheet Particulars (Rs. Crore) June 2022 June 2021 Particulars (Rs. Crore) June 2022 June 2021 Shareholder's Funds 929.1 860.5 Non-Current Assets Equity Share Capital 18.9 18.7 Fixed Assets – Tangible & Intangible [2] 224.2 76.1 Reserves & Surplus 910.1 841.6 CWIP & Intangibles under development 19.3 0.7 Minority Interest 0.2 0.2 Other Non Current Assets 30.7 18.9 Deferred Tax Assets (Net) 29.9 29.8 Non-Current Liabilities Borrowings 50.9 21.9 Other Financial Liabilities 0.6 69.1 Current Assets Long Term Provisions 1.6 2.5 Current Investments 107.56 166.1 Other Non-Current Liabilities [1] 136.5 15.1 Inventories 903.8 986.5 Trade Receivables 541.8 380.2 Current Liabilities Cash & Bank Balances 101.0 90.2 Income Tax Liabilities (net) - - Cash in Short Term Investments 0.4 0.0 Short Term Borrowings 476.1 452.0 Short Term Loans & Advances 2.3 2.2 Trade Payables 322.8 260.1 Other Financial Liabilities 69.7 62.7 Other Current Assets 57.7 36.8 Other Current Liabilities 29.0 42.1 Short Term Provisions 2.2 1.7 Asset Classified for Sale - 0.4 Total Equity & Liabilities 2,018.5 1,787.7 Total Assets 2,018.5 1,787.7 1. Lease liability reclassified as Other Non-Current Liabilities from Other Financial Liabilities. 14 2. Fixed Assets include Right of Use Asset of ₹140.7cr as on June 2022 and ₹23.9cr as on June 2021. Corporate Snapshot Global Jewellery Company focused on 4 6 560 cr designing, manufacturing and distribution of branded jewellery Licensing Direct-to- Annualized agreements with Consumer Branded jewellery global brands websites revenues (Rs.) Strong presence in global markets of North based on Q1 FY23 America, Europe & Asia 13% 0.34 Licensing agreements with large globally- recognized brands Branded jewellery Net debt to equity EBITDA margins in as on June 30, Q1 FY23 2022 Product portfolio across branded jewellery, customer brands & plain gold jewellery 1166 Building a Global Branded Jewellery Business Growing revenue contribution from Branded Jewellery Association with globally-recognized brands segment 23% Increased presence in high-potential key global 18% markets Renaissance’s Branded 13% Jewellery Better pricing on the back of branded products 10% Segment: Key Attributes Low capital-intensive business segment 2% Higher margins & superior return ratios FY18 FY19 FY20 FY21 FY22 Endeavour to achieve ~50% sales from Branded Jewellery segment over the next 3-4 years 20 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) 18 ‘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  Specific products license  Distribution  Brand management exclusivity Strategic & mutually-synergistic partnerships with internationally-recognized brands 19 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 February 2020  Licensing agreement with Lucasfilm with the launch of Star Wars collection in November 2020  Licensing agreement with NFL Properties LLC in January 2022 with the launch of NFL-inspired unique jewellery in USA Building a strong portfolio of licensed and owned brands 20 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 You - Lab-grown diamond jewellery launched in November 2020 Focused on North American markets  Building a strong portfolio of licensed and owned brands 21 Establishing High-Potential D2C Division Launch Timeline June February November November February May 2019 2020 2020 2020 2021 2021  Successfully developed and launched 6 online stores in a span of 27 months  Segment enjoys higher margins and healthy working capital cycle KINDLY CLICK ON THE LOGOS TO VISIT RENAISSANCE’S D2C WEBSITES D2C business expected to be a major growth driver 22 Growth Drivers Growing high-margin branded jewellery segment Extending licensing model to newer brands Increasing use of lab-grown diamonds to prioritize focus on sustainability Widening Omni-channel distribution network Inorganic growth opportunities 23 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 intensive branded jewellery model to support healthy free cash generation Prudent capital allocation with focus on creating sustainable shareholder value 24 ESG Initiatives ENVIRONMENT SOCIAL  To achieve safety, health Renaissance’s CSR POLICY and environmental covers projects through NGOs excellence in all aspects of under: business activities  Medical, Health Care and  During the quarter Social Welfare Q1FY23, Renaissance  Educational Global Ltd. has been awarded the ISO  Humanitarian 14001:2015 standard  Environmental, Animal certificate Welfare, Cultural and Religious  For FY2021-22, Renaissance spent Rs.1.22 crore towards CSR & other social activities GOVERNANCE  To achieve the highest levels of transparency, accountability and equity in all spheres of operations  Company has adopted various codes and policies to carry out business in an ethical manner  Renaissance is a member of the Responsible Jewellery Council (RJC), a non-profit standard setting and certification global organisation  Being a member, Company is committed to and is independently audited against the RJC Code of Practices, an international standard on responsible practices for the jewelleryindustry 26 Corporate Social Responsibility ENVIRONMENTAL, MEDICAL, HEALTH CARE AND EDUCATIONAL HUMANITARIAN ANIMAL WELFARE, SOCIAL WELFARE CULTURAL & RELIGIOUS  Partnered with the  Under the Each One Teach One Initiative (EOTO),  Donated during natural  Actively contributes to Bhaktivedanta Hospital by Renaissance adopted the Kamalaben Jogani High disasters like floods, Shree Patan Panjrapole establishing a mammography School at Bhopoli in Palghar district of Maharashtra famines, earthquakes, in Patan, Gujarat which unit, providing five Dialysis through the Sarnast works to enrich the life Machines and a ‘Mobile Clinic  Employees visit regularly and teach students various Mahajan trust of handicapped and for Cancer Detection’ non-academic activities like football, self-defence, weak animals Tai-chi Yoga, chess, drawing and craft  Donated to the  In FY 2021-22, a donation Maharashtra Drought of Rs. 90 Lakh was made Employees have coached over 250 students  relief fund, Nepal towards this initiative over a period of 4 years Earthquake Relief and  Contributed towards building  Work with lsha Foundation to provide education Uttarakhand Flood Relief Shrimad Rajchandra Hospital facilities to the underprivileged children, helped build in Dharampur, Gujarat under a classroom for students and donated a school bus the Shrimad Rajchandra to the foundation Mission 27 Market Snapshot Shareholding Pattern* Promoter & Promoter Group 70.6% Foreign Institutions (FPI, FII & 2.5% NRI) Individual - >1% 3.8% Others 23.1% *Holding as on 30thJune 2022 As on 30-June-2022 Key Market Statistics (Adjusted for Split) BSE/NSE Ticker 532923/RGL CMP (Rs) 115.8 Market Cap (Rs Crore) 1,099.20 Number of outstanding shares (Crore) 9.44 Face Value 2.00 52-week High / Low (Rs) 218.0/107.3 29 Conference Call Details Q1 FY2023 Earnings Conference Call Time • 02:00 p.m. IST on Wednesday, August 10, 2022 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 • + 91 22 6280 1141 / 7115 8042 • Hong Kong: 800 964 448 International Toll-Free • Singapore: 800 101 2045 Number • UK: 0 808 101 1573 • USA: 1 866 746 2133 30 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 & Plain Gold Jewellery segments, with strong focus on Branded Jewellery division. The Company has a growing portfolio of brands under licensed and owned segments. It holds synergistic licensing agreements with large global brands, such as Disney, Hallmark, and NFL. Under its owned segment, it has a portfolio of brands such as Irasva, Jewelili and Made For You. Over the years, Renaissance has successfully expanded its branded product portfolio, backed by strong conceptualization, design, and manufacturing capabilities. On the distribution side, the Company operates through both B2B and D2C models. Since 2020, Renaissance has launched online stores through 6 D2C websites to market & supply licensed brands & owned brands. For further information, please contact: Snehkumar Purohit Anoop Poojari / Jenny Rose Renaissance Global Limited CDR India Tel: +91 96534 84380 Tel: +91 98330 90434 / 86899 72124 Email: Email: Snehkumar.purohit@renaissanceglobal.com anoop@cdr-india.com / jenny@cdr-india.com 31