KDDL Limited · NSE:KDDL
KDDL — Investor Presentation (April 2014)
27 slides from KDDL's investor presentation, April 2014
Slide 1: KDDL Limited Investor Presentation April 2014
KDDL Limited Investor Presentation April 2014 India’s largest retailer of luxury watches
Slide 2: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Limited (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the b
Slide 3: Business Overview
Business Overview 73% KDDL Subsidiary Ethos Leading supplier of high quality India’s largest retail chain of luxury watch components for international watch studios brands in Switzerland & India Authorized retailer of over 60 luxury Manufacturing facilities watch brands through Watch Dial
Slide 4: Experienced Management Team
Experienced Management Team Mr. Yashovardhan Saboo – Chief Executive Officer • Set up KDDL in 1983 & led the company to attain market leadership in India, successfully exporting to Switzerland and Hong Kong • Founding Member of All India Federation of Horological Industries (AIFHI) • Alumnus of IIM-
Slide 5: Evolution
Evolution … 1983 Started production of Watch Dials Watch Component 1998 Began production of Watch Hands Manufacturer 2003 EIGEN – Precision stamping division established 2003 Ventured into retailing of luxury watches - Launch of “ETHOS” India’s Largest Retailer of 2003- Established strong network of
Slide 6: Retail... Growing Consistently at a faster pace
Retail… Growing Consistently at a faster pace Revenue FY 2009 Revenue FY 2013 Rs. 116 Crs Rs. 272 Crs Retail Retail 45 174 39% Other 64% 3 2% Other 3 1% Manufa Manufa cturing cturing 68 96 59% 35% 6
Slide 7: Ethos
India’s largest retailer of luxury watches Ethos 7
Slide 8: Luxury watch market growing rapidly in India
Luxury watch market growing rapidly in India… Rs.Crs 10,000 Indian watch market is expected 5,000 to grow from Rs. 5,000 crore in 2,700 2010 to Rs 10,000 crore in 2015 15% CAGR over five years 2005 2010 2015 Premium watch segment 50% expected to grow at 22-25% 30% Value share of premium watc
Slide 9: Ethos... well positioned to capture growth
Ethos … well positioned to capture growth India’s largest retail chain for luxury Swiss watches in organized sector Distinct retail formats targeting distinct customers in middle to high income group Wide product offerings range from Rs.5,000 to Rs.20,00,000 Pan India retail network spread a
Slide 10: With well spread market coverage
With well spread market coverage… Prestige Luxury “Showcasing Success” “The Rich & Famous” Professional, Entrepreneur HNIs, Industrialist, Professionals, Target Audience showcasing their early career Celebrities success Rs. 1,500 Crores expected to grow Rs. 600 Crores expected to grow @ Market Size
Slide 11: Airport Boutiques – Emerging Alternatives
Airport Boutiques – Emerging Alternatives 1st Watch retail store to foray into Airport Retail emerging as airport retail in 2009 “Alternative Destination” for luxury retail in India Established presence at Bengaluru, Mumbai, Delhi, Hyderabad & Growing demand on account of: Ahmedabad Airports
Slide 12: Through our specialized network
Through our specialized network… 45 Stores presence across India Presence in Metros, Tier I & Tier II cities Ludhiana Chandigarh New Delhi Store selection preference : Gurgaon Reputed /pedigree Mall with good facility management at Bhopal premium location with other Ahmedabad luxury brands bei
Slide 13: Wide range of brand offerings
Wide range of brand offerings 13
Slide 14: Achieved over 3x Revenue growth in last 5 years
Achieved over “3x” Revenue growth in last 5 years Rs.Crs No. of Stores (#) Revenue ~14% through E-Tailing 174 36 37 127 25 20 90 17 60 45 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Store presence increased to 45 stores as on Mar-2014 14
Slide 15: Mature stores growing profitably
Mature stores growing profitably... Average sales per store (Rs.Crs) EBITDA Margin% 10% 10% 10% 7 10% 6 8% 7% 5 6% 4 7 4% 6 3 4 2 2% 3 1 0% - 2010 2011 2012 2013 No. of Stores# 13 17 20 22 Average sales per store growing at CAGR of 35% over last 3 years, alongwith EBITDA margins being maintained as
Slide 16: E-Commerce: Click & Brick model
E-Commerce : “CLICK & BRICK” model… Established online presence with launch of web portal www.ethoswatches.com in April 2012 Amongst Asia’s most visited websites for multi brand retail Online / Internet presence enables better & larger accessibility to Monthly Online Lead Generation customer
Slide 17: E-Commerce: Gaining momentum
E-Commerce : … Gaining momentum 17
Slide 18: Ethos Growth Strategy
Ethos Growth Strategy Enhancing geographical reach through opening of new stores and strengthening of on-line presence Sustaining Addition of new brands in portfolio Growth in Improve revenue per store by Corporate tie-up, Revenue Offering loyalty program Setting up service vertical Higher
Slide 19: Watch Component Manufacturing
Watch Component Manufacturing 19
Slide 20: Dials
Dials Leading global supplier of Watch Dials serving many well-known brands all over the world Manufacturing facilities located at Parwanoo & Derabasi, near Chandigarh Manufacturing capacity of 4.5 mn pieces per annum More than 30 years of experience in dial manufacturing Capability to man
Slide 21: Hands
Hands Leading global supplier of high precision Watch Hands Only supplier in India and one of 5 independent manufacturers globally Manufacturing facilities located at Bengaluru Manufacturing capacity of 47 mn pieces per annum Capability to manufacture hands with strict dimensional control
Slide 22: EIGEN - Precision Engineering
EIGEN - Precision Engineering Manufacturer of high precision stamping parts &precision progressive tools Manufacturing facility located at Bangalore Offers total solution for production of stamp part from product concept to mass production, meeting quality demand of consistency & accuracy in m
Slide 23: Consistent performance
Consistent performance Rs.Crs Revenue EBITDA 101 22 96 77 81 13 14 52 12 2 2010 2011 2012 2013 9M 2010 2011 2012 2013 9M 2014 2014 23
Slide 24: Consolidated Financial Highlights
Consolidated Financial Highlights 24
Slide 25: Profitability Highlights
Profitability Highlights Rs.Crs FY13 FY12 FY11 Revenue 272 233 176 Raw Material 152 116 86 Employee Expenses 48 44 35 Other Expenses 54 45 34 EBITDA 18 28 21 EBITDA Margin 6.7% 12.1% 12.0% Other Income 1 2 1 Interest & Finance Charges 13 11 9 Depreciation 9 7 6 PBT (3) 12 7 Tax 0 5 2 PAT (3) 7 4 PAT
Slide 26: Balance Sheet
Balance Sheet Rs. Crs Mar-13 Mar-12 Mar-11 Shareholder’s fund 44 48 42 Share capital 9 9 8 Reserves & surplus 34 39 34 Minority interest 18 8 6 Non-current liabilities 50 45 28 Long term borrowings 39 35 21 Deferred tax liabilities 4 4 4 Long term provisions 6 6 3 Current liabilities 134 127 92 Shor
Slide 27: For further information, please contact
For further information, please contact: Company : Investor Relations Advisors : KDDL Limited Strategic Growth Advisors Pvt. Ltd. Mr. C. Raja Sekhar Ms. Sanjita Ghosh / Ms. Swapnil Misra [email protected] [email protected] / [email protected] www.kddl.com / www.ethoswtches.com www.sgapl.