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Safe HarborThis presentation and the accompanying slides (the “Presentation”), which have been prepared by Relaxo Footwears Limited (the “Company”), have beenprepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, andshall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company willbe made except by means of a statutory offering document containing detailed information about the Company.This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes norepresentation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness andreasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you mayconsider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that areindividually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject toknown and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, theperformance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide,competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technologicalimplementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to marketrisks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from resultsexpressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in thisPresentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and theCompany is not responsible for such third party statements and projections.2
Q4 FY20 and FY20 PerformanceQ4FY20 PerformanceRevenue from Operations (in crs)636541600EBITDA (in crs) and EBITDA 00%0Q4FY19Q4FY208.6%549.6%Q4FY2010%52 Revenue up by 5% to Rs. 2,410crore Y-o-Y. Due to the impact ofnationwide5%40200Q4FY19FY20PAT (in crs) and PAT %lockdowntherevenue growth dropped to 5%from 12.89% till Dec 190%Q4FY19Q4FY20 EBITDA up by 26% to Rs. 409crore Y-o-Y. EBITDA marginsincreased by 282 basis Y-o-Y toFY20 PerformanceRevenue from Operations (in 20FY1921%17%17.0%1005003409300150017.0%. EBITDA margins adjustedEBITDA (in crs) and EBITDA %FY2013%PAT (in crs) and PAT %2262502009%505%015% Profit after Tax up by 29% to Rs.10%226 crore Y-o-Y. PAT Margins175150100to IND AS 116, stand at 15.1%.7.6%increased by 174 basis Y-o-Y to9.4%5%0%FY19FY209.4% due to adoption of new taxregime.
Company Overview
Highlights FY20 Largest footwear manufacturer in India. ‘Value for Money’ products. Portfolio of mass appeal brands.2410 Cr.Revenue fromoperations5409 Cr.EBITDA226 Cr.PAT17.9 Cr.910000 Pair soldBrandsSKUs850000 State of the artmanufacturingplantsRetailers servedthrough distributors390Exclusive brandoutlet (EBO)
Moving Forward, Gaining Momentum.2018-208Revenue: 2,41,048 lacs6
Key investment highlightsFavorable dynamics of Indian footwear industryLeading player in the ‘value’ segment withan array of strong brandsManufacturing excellencePan-India distribution networkRobust financial performanceFuture ready7
Attractive dynamics of the Indian footwear industryStrong growth potential of the Indian footwear industry India is the second largest footwear producer of the world after China, accounting for 9% of the world market with 22bn pair. Currently India exports only 10% of the footwear produced with the domestic market being the major contributor of around 90%. The Indian Footwear industry has potential to grow near to 1.00 Lac Crore by 2021. India is still an underpenetrated market – a per capita consumption of only 1.66 pair p.a against a global average of 3 pair. Developed countriesaverage 6-7 pair p.a. India’s share in global exports is just 2% compared to China’s share of 40%, thus presenting room for growth opportunities.With changing consumer demands . Footwear has evolved from being a mere necessity to an importantfashion accessory. Footwear industry recognized by GoI as a focus sector in the ‘Make InIndia’ mission. Buying behaviour of the Indian consumer is changing rapidly withgrowing urbanisation and ever-increasing penetration of internet. A 2,600 Crore special package over the next 3 years for developmentof footwear sector. Growing awareness about latest trends and consciousness amongconsumers. GST is propelling the shift from unorganized to organized segment.Organized segment today caters to 45% of the market. Consumers becoming more brand-centric in tier II, tier III cities andrural markets as well. Uniform tax rates pan-India for all footwear ensuring a level playingfield. Aspirations for latest global trends has increased the frequency ofshopping.Source: BusinessWire8 backed by a strong operating environment
Relaxo is a leading player in the ‘Value’ segment Market leader in the ‘Value’ segment. Robust product portfolio. High Brand EquityAligning our product portfolio with evolving consumer needs and trendsStructured Market ResearchRegular market sensing forconsumer insights acrossdifferent regional, economicand demographic strata.9Product innovationIn-house design capabilityenables continuousproduct innovation as perconsumer needs.Portfolio rationalizationIn-season launches withoptimal product portfolio. 20% of the portfolio isrestyled every year.Brand EquityCarefully crafted andsteadily built brands overtime.
Our portfolio of brands, with strong identities10Premium range of sports& canvas shoes, sandals &slippersFormal shoes formenFashionable and lightweight footwearTrendy footwear forwomenMost popular iconicbrand of Hawai slippersHousehold namesynonymous withquality, comfort & valueTrendy and fashionableflip-flopsQuality, Comfortableshoes for menRange of school shoesfor boys and girlsRange of cool, colourfulfootwear for next-genkids
Sustained manufacturing excellenceStrong in-house manufacturing capabilities 8 manufacturing facilities with a capacity to produce 7.5 Lac pair/day. Continuous focus on optimising operations– Dedicated line for manufacturing fast moving SKUs– Lean manufacturing (waste minimisation without compromising onproductivity)– Maynard Operation Sequence Technique (MOST)– Yield improvement– Focus on cost optimisation in manufacturing allows competitive pricing.Committed to Quality Own manufacturing helps maintainquality end-end. Monitor every stage of manufacturingprocess– Designing– Raw Materials– Production Process– Packaging– Final Products11RFL I & II- BahadurgarhRFL III - BhiwadiRFL IV - BahadurgarhRFL V - HaridwarRFL VI - BahadurgarhRFL VII - BahadurgarhCertifications ISO 9001:2015 ISO 14001:2015 ISO 45001:2018 ISO 27001:2013 BIS/SATRA ManufacturingStandards CLE (Council for LeatherExport)RFL VIII - BahadurgarhRFL IX - Bhiwadi
Strong distribution network; one of the largest in theIndian footwear industryRetailers/ MBOsJammu & KashmirHaryanaPunjabDelhiHimachal PradeshDistributors 700Countries exported toEBO390Overseas office in DubaiUttarakhandRajasthanUttar PradeshBiharGujaratMaharashtraWest BengalMadhya PradeshEBO (Exclusive brand outlet)DistributorsMap not to scale. All data, information and maps are provided “as is” without warranty or anyrepresentation of accuracy, timeliness or completeness.1250,000 401
With a growing online presencewww.shopatrelaxo.comPartnerships with major ecommerce companies13
Robust financial performance. in CroreRevenue from 050040030020010000FY16FY17FY18FY19FY20Volume (in 7413.5513.46FY16FY17100500FY16 is based on IGAAP. FY17 onwards is Ind-AS.14FY20FY18
with operational efficienciesEBITDA %14.0%14.0%FY16FY1715.5%FY18PAT %17.0%14.1%FY19FY207.0%7.3%FY16FY17RoCE %31.8%FY1627.2%FY1731.0%FY18FY16 is based on IGAAP. FY17 onwards is 0RoE %26.4%FY1928.4%24.8%FY20FY1622.1%23.6%FY17FY18
Debt ratings and profileDebt/ Equity (X)Interest coverage ratio FY19FY20FY16FY17FY18FY19Credit Ratings16AgencyInstrumentsRatingsICRAShort Term FundsA1 ICRALong Term FundsAA with stableoutlookCommentsIndicates very strong degree of safety for short term debt instruments.Instruments rated in this category carry the lowest credit riskIndicates high degree of safety for long term debt instruments.Instruments rated in this category carry low credit riskFY20
Consistent dividend payoutDividend in croreDividend as a % of Face value180%125%150%100%60%* Pre Bonus177.212.018.022.331.0FY16FY17FY18FY19FY20
EPS and Net WorthNet Worth in croreEPS in 13.4010.029.999.127.07* Post Bonus1848060676111051272FY16FY17FY18FY19FY20
Advancing towards Tomorrow, TodayStreamline thedistribution network– especially inunderpenetratedmarkets1Continuedinvestment in ourbrands to sustaindemand pull2Increase thepresence and reachof retail network(EBO).193Increase exports byexpanding ourpresence ininternational markets4Continuedmanufacturingexcellence across allproduction units56Innovation andProcess improvementby leveraging ITTransformation
Highly experienced Board of DirectorsRamesh Kumar Dua, Managing DirectorMukand Lal Dua, Whole Time Director Over 44 years of experience in sales and marketing, production and new productdevelopment in Footwear Industry Director in Relaxo Rubber Private Limited & Marvel Polymers Private Limited Commerce Graduate & Rubber Technologist (LPRI, London) Over 47 years of experience in new product development and quality control inFootwear Industry Director in Relaxo Rubber Private Limited & Marvel Polymers Private Limited Science GraduateNikhil Dua, Whole Time DirectorDeval Ganguly, Whole Time Director Over 24 years of experience in production and new product development and hasrich knowledge of product mix in Footwear Industry Commerce graduate and has studied from International School of Modern Shoemaking, Czech Republic Over 39 years of experience in areas of manufacturing, project and plantmanagement in various reputed organisations Joined Company in 2011 as President, Manufacturing and was elevated to Boardw.e.f 5.11.2012. He is B.Tech from IIT KanpurPankaj Shrimali, Independent DirectorDeepa Verma, Independent Director Over 36 years of experience in areas of finance, accounts, secretarial, corporatemanagement, legal & corporate consultancy services, strategic management andinvestment banking for reputed corporate houses Fellow member of ICAI, ICSI, and Institute of Cost Accountants of IndiaVivek Kumar, Independent Director Over 21 years experience as Operational Head in leading Indian companies and isalso a management consultant to many corporates in the areas of quality,productivity, environment and safety MBA from Faculty of Management Studies, Delhi University and ElectricalEngineer from the University of Roorkee (now IIT Roorkee)20 Over 32 years of experience in academic administration. Associated with University of Petroleum & Energy Studies since inception and hasheld various positions such as Director (NCR) region, VP (Academic Affairs) &presently in charge of Institutional Affairs & HR B.Sc, LL.B, M.A (Psychology), Diploma in Educational Guidance & CounsellingRajeev Bhadauria, Independent Director Over 33 years of experience in Human Resource. Past association with JSPL, Reliance ADA group & NTPC at various positions inHuman Resource. B.A. & LLB from Allahabad University and management diploma from PowerManagement Institute, New Delhi
And a strong management team21Mr. Gaurav Dua,Executive VP MarketingMr. Ritesh Dua,Executive VP - FinanceMr. Nitin Dua,Executive VP - RetailMr. Ashish Srivastava ,VP – Human ResourcesMBA having over 19 yearsof experience in Sales &Marketing.MBA having over 20 yearsof experience in Finance, HR& ITMBA having over 16 yearsof experience in RetailBusiness.MBA having over 22 yearsof experience in HR,IndustrialRelations&Administration.Mr. Vinay Kumar Bajaj,VP - SalesMr. Sushil Batra,Chief Financial OfficerMr. HR Sapra,Senior VP - MaterialsMr. Rahul Dua,Assistant Executive VP ManufacturingGraduate having over 29years of experience in Sales& MarketingFCA having over 29 years ofexperience in Finance,Taxation andStrategicPlanningBE having over 47 years ofexperience in Materials &ProcurementGraduate having over 10years of experience inManufacturing
Shareholding pattern as of 31st March, 2020Total Shareholders -6857368467 *(19.67%)Promoter & Promoter GroupMutual Funds16* (6.40%)12* (70.98%)Foreign Portfolio InvestorsOthers* No. of Shareholders with Shareholding Percentage22
Thank You24
Revenue from Operations (in crs) EBITDA (in crs) and EBITDA % PAT (in crs) and PAT % Q4FY20 Performance FY20 Performance FY20 Revenue up by 5% to Rs. 2,410 crore Y-o-Y. Due to the impact of nationwide lockdown the revenue growth dropped to 5% from 12.89% till Dec 19 EBITDA up by 26% to Rs. 409 crore Y-o-Y. EBITDA margins
