RENAISSANCE GLOBAL LIMITED INVESTOR PRESENTATION
Discussion Summary 1 Company Overview 2 Business Strategy & Outlook 3 Annexure
Our Brands 3
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‘Enchanted Disney Fine Jewelry’ is the perfect marriage of romance of Disney and the lasting beauty of fine jewelry. The timelessly elegant designs subtly evoke the love, adventure, happiness and magic of the fairy tales loved by millions. 5
Hallmark, founded in 1910 is a well known greeting card company. Its vision is to create a more emotionally connected world. Our Hallmark branded jewellery helps individuals celebrate the special moments in their lives. 6
We have launched our 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. 7
Largest Supplier of Branded Jewellery To Leading Global Retailers India’s Largest Exporter of Gem -Set Strong Design Capabilities Jewellery • GJPEC Award for “Largest Exporter of • ~95% of sales based on in-house designs Studded Metal Jewellery” for 7 th time in 2017 • ~12,000 new designs developed in FY 2019 • 2.9 Mn pieces of jewellery sold in FY19, • 151 member design team based in US, UK, • Robust manufacturing (166,000 sq. ft., 2,916 Hong Kong, Dubai & Mumbai employees) • Strong R&D to drive product innovation Acquisition Strategy Global Marketing Presence Robust Financials * • Dedicated in-house marketing across key • Track record of successful acquisitions • Total Revenues, EBITDA & PAT of Rs 26,022 markets in USA, UK & Middle East Mn, Rs 1,342 Mn & Rs 841 Mn in FY19, growing • Expansion of product portfolio and at 42%, 33% and 32% respectively • Incorporated a subsidiary in China. geographies via strategic acquisitions • Low leverage: Net Debt / Equity – 0.92 • Continued focus on geographical diversification • Opportunities continue to be available due to • Return Ratios: ROE: 12.7% market turmoil • Share of revenues from US reduced from 85% in FY11 to 57% in FY19 Focus on Licensed Brands India Brand Strategy Marquee Clientele • Licensing agreement to sell “Enchanted Disney • Strategic investment in joint venture(JV) with • Amazon, Argos, Helzberg, J.C Penney, Malabar Fine Jewellery” and “Heart of Hallmark Bennett, Coleman and Company Limited(BCCL) Gold, Signet, Wal-Mart Diamonds ” jewellery collections to promote brand ‘IRASVA’ owned by the JV • Diversified Customer Base • Branded jewellery sales to bring significant • BCCL has committed Rs. 3500 Mn of advertising value addition, higher margins & profitability spends in exchange of 49% equity in the joint venture * FY19 Financials
State-Of-The-Art Manufacturing Facilities With Highly Skilled Workforce Manufacturing Facilities in Maharashtra & Gujarat • Robust manufacturing setup in 166,000 sq. ft. across 8 manufacturing facilities with 2,916 skilled employees • Global standard manufacturing technologies including Casting, CNC Machining and 3D Printing • Each piece of jewellery is manufactured as per customer requirements, backed by strong internal processes • Right balance between full time and contractual manpower, resulting in cost savings during the off season • Customized ERP solution for effective monitoring and efficient inventory management Bhavnagar Mumbai (across all 6 units) Area: 65,000 sq ft Area: 95000 sq ft Manpower: 1512 Manpower: 1312 Dubai Area: 6000 sq ft Manpower: 92
Global Marketing Presence To Serve Key Jewellery Markets Western Europe DUBAI Acquired in 2016 Verigold Jewellery (UK) Limited (Founded in 2009) USA • Renaissance Jewellery NY Inc (Founded in 2007) • Jay Gems INC (Acquired in 2018) INDIA MIDDLE EAST SEEPZ (Mumbai) Verigold Jewellery Started in 2000 DMCC (Founded in 2014) Bhavnagar (Gujarat) Key Subsidiaries Started in 2005 Manufacturing Units
Preferred Partner to Marquee Global Retailers Across The World Minimal Credit Risk Due 50+ Customers 10+ Year Relationships with Diversified Customer Base to Stable Clientele & Across USA, UK & Top 10 Customers Disciplined Credit Terms Middle East E-Commerce/ Television Specialty Jewellers Multi-Brand Retailers
RENAISSANCE GLOBAL LIMITED BUSINESS STRATEGY & OUTLOOK
Business Strategy & Outlook Incr ncreasing Sales Of • Grow branded jewellery sales through Disney and Hallmark licensing agreements, leading to increased customer Lice censed Bran rands In n wallet share and market penetration Ex Existi ting Mar Markets • Develop new products under Disney license – Mickey, Minnie and Star Wars • Introduce wide range of Enchanted Disney Fine Jewelry in new markets where there is strong Disney brand Expanding Lice Ex censed recognition Bran rand Sales In n New • Launch Hallmark Diamonds in new markets Geographies Con ontinued Focu ocus on on New • Expand gold Jewellery portfolio in Middle East by introducing new technologies including 3D printing Prod Pr oduct De Development • Introduce new product categories including wedding bands in the US and then replicate across other and nd Inn nnovation geographies • Inor norganic Gro rowth To o Aggressively pursue suitable acquisitions, new brand licenses for product expansion and geographical expansion Ac Acce celerate te Gro rowth in n New opportunities Prod Pr oducts & New Ma Markets • Leverage strong balance sheet position for faster growth • Strategic investment in joint venture(JV) with Bennett, Coleman and Company Limited(BCCL) to promote brand Ind ndia Bran rand Strategy IRASVA owned by the JV • BCCL has committed Rs 3500 Mn of advertising spends in exchange of 49% equity in the joint venture
Playbook of Strong Strategies Increase the awareness of our Keep renewing and enhancing our Strengthen our competitive brands product offerings position in key markets We intend to increasingly invest in and RGL’s product development strategy is While we enjoy a strong reputation and evolve marketing programs through a to accelerate the introduction of new large customer base, it encounters variety of media designed to build design collections, and/or expand significant competition. By focusing on awareness of our brands certain existing collections annually, enhanced product development, the all of which are intended to appeal to Company’s objective is to become a existing and new customers. supplier of choice to its key customers. Cultivate an efficient operating Create an agile organization to Improve operating margins Model Succeed RGL’s long -term objective is to improve gross margins, realising greater The Company is focused on improving Ability to quickly respond to changing efficiencies in its product supply its business operations through new customer requirements is the key to chain and adjusting selling prices when systems, more effective processes success. The management strives to appropriate. These efforts are intended and cost restraint, to drive margin motivate and develop employees with to generate a higher rate of operating growth. core competencies needed to achieve earnings growth relative to sales growth its objectives. Improve inventory, other asset Strengthen employee engagement Acquisitions productivity and cash flow and building capabilities RGL plans to actively consider further Our team is key to accomplishing the acquisitions of brands or distribution RGL’s long-term objective is to maintain company’s transformation goals. RGL companies in areas where it believes inventory growth at a rate less than has hired and promoted several geographic, demographic and market sales growth, with greater focus on executives to fill key leadership roles, conditions are favourable for its core efficiencies in product sourcing and and is investing in building e-commerce, business and where the target business manufacturing while optimising store analytics and innovation capabilities. is complementary to existing business. inventory levels within India 14
Organic & Inorganic Growth Vogue DMCC • Renaissance Jewellery DMCC acquired Vogue DMCC in 2016. • Vogue DMCC specialises in manufacturing and wholesaling of plain gold jewellery in the Middle East. • Renaissance leveraged the Vogue DMCC distribution network to expand sales of Renaissance products in the GCC markets. IRASVA Jay Gems Inc • • Renaissance acquired Jay Gems Inc in 2018 for USD 25.62 million A subsidiary of Renaissance has made a strategic investment in a joint • Jay Gems has been in existence for 25 years, focused on diamond venture with Bennett, Coleman and jewellery, and generated revenues of USD 79.5 Mn in 2017 Company Limited to launch a • Jay Gems has the exclusive “Enchanted Disney Fine Jewelry” consumer jewellery brand “IRASVA” in license. India. • • The acquisition expands Renaissance global product offerings. The first IRASVA retail store opened in Mumbai in May 2019. • Licensed Jewelry will help improve margins of the Consolidated company. • ROE and ROCE for the license business is higher than the other businesses.
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