RGL

Ref. No.: RGL/S&L/2019/119 August 13, 2019 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.: Performance Highlights for Q1 FY 20. Dear Sir We are enclosing herewith the write up and investor presentation to highlight the performance of first quarter ended June 30, 2019. We request you to upload the same under the suitable section of your website. Thanking you, Yours faithfully, For Renaissance Global Ltd. G. M. Walavalkar VP – Legal & Company Secretary Encl.: As Above Strong Momentum continues Revenues grow 30%; PAT grows 42% Mumbai, August 13, 2019: Renaissance Global Limited (RGL), India’s highly differentiated luxury lifestyle products company and the largest exporter of branded jewellery and supplier of licensed brands to leading global retailers, reported its unaudited and reviewed results for the quarter ending 30th June 2019 as approved by its Board of Directors. Financial Highlights – Q1 FY20 Consolidated  Quarterly revenue at INR 5,978.4 million, up by 30% YoY  EBITDA (including other income) at INR 317.3 million, up by 52% YoY  PAT at INR 166.9 million, up by 42% YoY Rs. In millions Particulars Q1 FY20 Q1 FY19 % YoY FY19 FY18 % YoY Revenue 5,978.4 4,596.8 30% 25,906.3 18,109.6 43% EBITDA 317.3 209.2 52% 1,342.1 1,005.6 33% *PAT 166.9 117.0 42% 841.3 638.0 32% *including loss due to discontinued operations Q1 FY20 Business Highlights  Our strategy to focus on licensed brands and our own brand continues to deliver positive financial performance. We are extremely bullish on the growth of jewellery brands worldwide.  Strong momentum continues for ‘Enchanted Disney Fine Jewelry’. Retailers worldwide are moving towards brands. We continue to focus on growing ‘Enchanted Disney Fine Jewelry’ in the US. In the current quarter we have also been in discussion with retailers in other markets to place the brand.  Hallmark branded jewellery continues to do well. We have a significant roll out in Q3 FY20 with a major retailer in the US. We should see significant growth in the Hallmark brand.  The Company launched brand “IRASVA” in the Indian market through a joint venture with Bennett, Coleman and Company Limited. IRASVA’s gold and diamond jewellery is a confluence of two shared ideologies that the modern woman lives by, a love for self and a love for expression. The first store was launched in Mumbai in May 2019 and the company plans to open 25 more stores in the next 5 years. The IRASVA Essentials start at Rs. 15,000 while the Gifting Collection is priced at Rs. 8,000 upwards. Q1 FY20 Financial Highlights  Revenue share of studded jewellery was 67% and that of gold jewellery was 33% in Q1FY20. The share was 74% for studded jewellery and 26% for gold jewellery for full year FY2019  Healthy geographical distribution of sales across various markets for Q1FY20 – North America (55%), Middle East (39%) and Others (6%). For FY2019 it stood at – North America (57%), Middle East (35%) and Others (8%).  Successful launch of our first ‘IRASVA’ store in May 2019. About Renaissance Global Limited: Renaissance Global Limited is a highly differentiated luxury lifestyle products company. It is the largest exporter of branded jewellery and supplier of licensed branded jewellery through its licensing agreement to sell “Enchanted Disney Fine Jewellery” and “Heart of Hallmark” jewellery collections. The company has long‐ standing relationships with marquee global retailers like Amazon, Argos, Helzberg, J.C Penny, Malabar Gold, Signet, Wal‐Mart, Zales Corp. etc. The Company has successfully expanded its product portfolio, backed by strong design capabilities, to offer a wide range of studded jewellery namely Diamond Fashion, Diamond Bridal, Gemstone Jewellery in line with latest fashion trends. The company has diversified operations across key markets in USA, UK & Middle East with its global marketing presence through own subsidiaries and via strategic acquisitions over the years. For more information, visit www.renaissanceglobal.com For More Information, Please Contact: Renaissance Global Limited G. M. Walavalkar Compliance Officer investors@renaissanceglobal.com RENAISSANCE GLOBAL LIMITED Q1 FY20 FINANCIAL OVERVIEW 1 Q1 FY20 : Key Highlights Q1 FY20 vs. Q1 FY19 In Rs Mn Total Income EBITDA & EBITDA Margin PAT & PAT Margin 5.3% 2.7% 2.8% 5,997 4.5% 317 170 124 4,600 209 30% 52% 38% Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 FY19 vs. FY18 Total Income EBITDA & EBITDA Margin PAT & PAT Margin 5.5% 5.2% 3.5% 3.3% 26,022 853 1,342 643 18,147 1,005 43% 33 % 32% FY18 FY19 FY18 FY19 FY18 FY19 2 Q1 FY20 : Segment Analysis Q1 FY20 vs. Q1 FY19 Studded & Plain Gold Jewellery Geographical Mix Q1 FY19 Q1 FY20 Q1 FY19 Q1 FY20 6% 33% 33% 17% 39% 39% 55% 67% 67% 44% Studded Jewellery Plain Gold Jewellery N. America Middle East Others FY19 vs. FY18 FY18 FY19 FY18 FY19 8% 27% 26% 21% 41% 35% 57% 73% 38% 74% Studded Jewellery Plain Gold Jewellery N. America Middle East Others 3 Consolidated Profit & Loss Statement Particulars (In Rs Mn) Q1 FY20 Q1 FY19 YoY % FY19* FY18* YoY % Revenue From Operations 5,978.4 4,596.8 30.1% 25,906.3 18,109.6 43.1% Other Income 18.2 3.6 115.7 373.9 -69.1% Total Income 5,996.6 4,600.4 30.3% 26,022.0 18,147.0 43.4% COGS 4,940.4 3,852.7 28.2% 21,441.6 14,803.9 44.8% Gross Profit 1,056.2 747.7 41.2% 4,580.4 3,343.1 37.0% Gross Margin % 17.6% 16.3% 130 bps 17.6% 18.4% 130 bps Employee Expenses 234.4 187.0 25.3% 922.8 789.2 16.9% Other Expenses 504.5 351.5 43.5% 2,315.5 1548.3 49.5% EBITDA 317.3 209.2 51.7% 1,342.1 1,005.6 33.5% EBITDA Margin % 5.3% 4.5% 80 bps 5.2% 5.5% -30 bps Depreciation 54.8 25.3 181.0 110.6 63.7% Finance Cost 79.7 25.6 249.6 144.9 72.3% PBT 182.8 158.3 15.5% 911.5 750.1 21.5% Tax Expense 12.8 34.6 59.0 106.7 -44.7% PAT 170.0 123.7 37.4% 852.5 643.4 32.5% PAT Margin % 2.8% 2.7% 20 bps 3.3% 3.5% -17 bps Loss due to discontinued Operations 3.1 6.7 11.2 5.4 4 *P&L Excluding loss due to discontinued operations Consolidated Balance Sheet Particulars (In Rs Mn) Jun-19 Jun-18 Particulars (In Rs Mn) Jun-19 Jun-18 Shareholder's Funds 6,784.7 5,689.3 Non-Current Assets Equity Share Capital 186.8 186.8 Fixed Assets – Tangible & Intangible 810.2 587.7 Reserves & Surplus 6,598.1 5,502.5 CWIP & Intangibles under development 6.1 40.4 Minority Interest 3.2 -6.6 Other Non Current Assets 208.2 138.3 Deferred Tax Assets (Net) 329.1 265.2 Non-Current Liabilities Borrowings 8.8 11.2 Current Assets Long Term Provisions 20.2 20.7 Current Investments 154.6 163.1 Inventories 9,938.7 6,242.2 Current Liabilities Trade Receivables 3,101.6 2,993.0 Income Tax Liabilities (net) 58.7 - Cash & Bank Balances 598.1 822.2 Short Term Borrowings 5,747.5 3,184.0 Short Term Loans & Advances 5.5 10.6 Trade Payables 2,889.5 2,638.2 Other Current Liabilities 330.7 273.7 Other Current Assets 638.3 493.6 Short Term Provisions 19.5 15.5 Asset Classified for Sale 72.6 69.7 Total Equity & Liabilities 15,863.0 11,826.0 Total Assets 15,863.0 11,826.0 5 Financial Strength Driving Business Growth (Consolidated) Leverage (Rs Mn) Working Capital Analysis 154 0.92 0.74 137 0.51 0.51 129 128 0.41 6,648 118 6,785 5,109 5,578 141 135 115 144 133 4,615 6,147 1,882 2,629 2,857 4,995 69 59 57 53 41 -73 -65 -54 -43 -47 FY16 FY17 FY18 FY19 Q1 FY20 FY16 FY17 FY18 FY19 Q1 FY20 Receivable Days Inventory Days Payable Days NWC Days Net Debt Equity Net Debt/Equity Net Debt = Borrowings – Current Investments – Cash and Bank Balances Equity + Share capital + Reserves & Surplus Return on Equity 14.3% 12.7% 11.4% 10.3% 9.7% FY16 FY17 FY18 FY19 Q1 FY20* ROE 6 Working capital calculated with Total Income as denominator *Trailing 12 months Long term goal of the company is: 1. Less than 0.5 Net Debt\Equity ratio 2. Maximize Free Cash flow to the company and 3. Greater than 15% RoE consistently through cycles Our Debt levels are currently elevated due to the acquisition of Jay Gems and the Debt on the Balance Sheet of that company. Money due to the erstwhile owners of the company is also classified as Debt but carries no interest. Our company has always maintained a strong Balance Sheet and will work towards reducing the Net Debt/Equity ratio to our target range. 7 7 Disclaimer This presentation and the following discussion may contain “forward looking statements” by Renaissance Jewellery 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. 8 RENAISSANCE GLOBAL LIMITED THANK YOU For any investor queries, reach out to RENAISSANCE GLOBAL LTD. RENAISSANCE GLOBAL LTD. DICKENSON SEAGULL IR G. M. Walavalkar Aakash Mehta Abhijit S. Karandikar Compliance Officer Email: Aakash.Mehta@dickensonir.com Manager – Investor Relations Mob: 098706 79263 Investor Grievance Redressal Cell Email: investors@renaissanceglobal.com Email: investors@renaissanceglobal.com 9