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RENAISSANCE GLOBAL LIMITED Investor Presentation 2021

Oct 7, 2021

62075_rns_2021-10-07_e96520a3-2400-4711-bc17-f7e99d32aa65.pdf

Investor Presentation

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Ref. No.: RGL/S&L/2021/166

October 07, 2021

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.: Investor Presentation.

Dear Sir

We are enclosing herewith Investor Presentation for the benefit of our investors.

Kindly upload the same under suitable section of your website.

Thanking you,

Yours faithfully,

For Renaissance Global Limited

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G. M. Walavalkar VP – Legal & Company Secretary

Encl.: As Above

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Investor Presentation October 2021

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Disclaimer

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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.

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Content

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Company Financial Summary ESG Annexure Overview Overview 4 21 26 28 31

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Company Overview

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Corporate Snapshot

Global Jewellery Company focused on designing, manufacturing and distribution of branded jewellery Strong presence in global markets of North America, Europe & Asia Licensing agreements with large globally-recognized brands Product portfolio across branded jewellery, customer brands & plain gold jewellery

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3 6 457 cr Licensing Direct-toBranded jewellery agreements with Consumer revenues (Rs.) in global brands websites Q1 FY22 (annualised) CRISIL BBB+/ Stable/ 15% 0.25 CRISIL A2 Branded jewellery Net debt to equity Ratings assigned to EBITDA margins in as on June 30, bank facilities Q1 FY22 2021 (long term / short term)

Building a Global Branded Jewellery Business

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Growing revenue contribution from Branded Jewellery segment

Association with globally-recognized brands Increased presence in high-potential key global markets Renaissance’s Branded Jewellery Better pricing on the back of branded products Segment: Key Attributes Low capital-intensive business segment Higher margins & superior return ratios

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22%
18%
13%
10%
2%
FY18 FY19 FY20 FY21 Q1 FY22
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Endeavour to achieve ~50% sales from Branded Jewellery segment over the next 3-4 years

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Branded Jewellery Business Model

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Brands
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Design &
Manufacturing
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Conceptualisation & Product Development

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State-of-the-Art Manufacturing Facilities

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Distribution
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Business-to-Business (B2B)

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Direct-to-Consumer (D2C)

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‘Win-Win’ Partnership with Global Iconic Brands

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Renaissance Global Global Brands
PUSH STRATEGY Licensing agreements PULL STRATEGY
 Conceptualisation  Long-term license contracts  Brand development
& design  Specific products license  IP rights of brands
 Manufacturing exclusivity  Marketing
 Product marketing  Brand management
 Distribution
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Strategic & mutually-synergistic partnerships with internationally-recognized brands

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Growing Portfolio of Brands

Licensed Brands

  • Partnership with Hallmark since 2015

  • Licensing arrangement with Disney since 2016 with the launch of Enchanted Disney Fine Jewelry

  • 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

Building a strong portfolio of licensed and owned brands

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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 jewelry collection launched in February 2020

    • Distributed through Amazon platform in addition to its own website
  • Made for You - Lab-grown diamond jewelry launched in

  • November 2020

    • Focused on North American markets

Building a strong portfolio of licensed and owned brands

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Conceptualisation & Design Capabilities

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Growing IP
base: 100,000+
designs
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~95% revenues
derived from in-
house designs
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Strong expertise in conceptualisation of globally-recognized and widely-adored brands

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State-of-the-Art Manufacturing Facilities

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  • Robust manufacturing setup: 166,000 sq. ft. across 8 manufacturing facilities with 2,900+ skilled employees

Global manufacturing technologies: Casting, CNC Machining and 3D Printing

  • High-productivity model: Efficient cost optimisation & inventory management

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Sites Mumbai
(all 6 units)
Gujarat
(Bhavnagar)
Dubai
Area (sq. ft.) 95,000 65,000 6,000
Workforce 1,312 1,512 92

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Preferred Partner to Marquee Retailers Globally

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50+ customers across 10+ year relationships Diversified customer USA, UK & Europe with top 10 customers base

Minimal credit risk due to stable clientele & disciplined credit terms

E-Commerce/ Television

Specialty Jewellers

Multi-Brand Retailers

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Establishing High-Potential D2C Division

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Launch Timeline

  • Successfully developed and launched 6 online stores in a span of 15 months

  • Monthly visitors on websites grown 10x since Feb 2020

  • Segment enjoys higher margins and healthy working capital cycle

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KINDLY CLICK ON THE LOGOS TO VISIT RENAISSANCE’S D2C WEBSITES

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D2C business expected to be a major growth driver

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Presence in Key Global Markets

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Western
Europe Hong Kong
USA Dubai
China
India
Key Markets
Design T eam
Manufacturing Units
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Geographic Mix – Q1 FY22
17%
17%
66%
N. America Middle East Others
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Emphasis on increasing footprint in key markets of North America, Europe & Asia

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Robust Management Team

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Niranjan Shah Chairman

Sumit Shah Executive Vice Chairman & Global

Associated with the Company since inception

CEO

23 years of industry experience

Over 40 years of experience in the gems & jewellery industry Provides guidance and mentorship to top management

Responsible for long term business plans & new business initiatives

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Hitesh Shah Managing Director

23 years of industry experience

Responsible for Finance, Accounting & Merchandising operations

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Suhel Kothari Director

President, RJNY Inc (Verigold)

Manages operations of the USA division

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Neville Tata Executive Director

22 years of industry experience

Responsible for Production & HRM

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Experienced Independent Board of Directors

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Veer Kumar Shah

Arun Sathe

Vishwas Mehendale Independent Director

Independent Director (ICAI, 1969)

Independent Director

Practicing Chartered Accountant in Taxation and appellate matters, including drafting and arguing appeals before Commissioners of I.Tax & Appellate Tribunal

Practicing Lawyer in High court & Supreme Court & Veteran Economist

Practicing Chartered Accountant with over 40 years of experience

Governing Council Member of Mah. Chamber of Commerce, Finance & Taxation Committee of the Chamber & FICCI; Part time member of SEBI

Expert in Accounting, Auditing, Taxation, Company Law matters, Arbitration matters and management consultancy in diverse sector

Expert in Direct & Indirect Tax Laws, Accounts & Audits, Finance & Corporate Laws

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Madhavi Pethe Independent Director

Former Independent Director of Bombay Commodity Exchange. Limited by Forward Markets Commission, Central Govt

Member of Board of Studies of Banking & Insurance University of Mumbai

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Strategic Advisory Board

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Bijou Kurien

Chairman of Retail Association of India, a veteran of Indian retail industry with over 37 years of experience. Strategy Board Member of a leading private equity player. Serves as an Independent Director on the Boards of several marquee Indian companies

Served on the advisory boards of leading management education institutions and leading Indian & global retail bodies

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Francesco Pesci

Senior executive with extensive experience in the jewellery, luxury, fashion & home decor businesses.

Successful track record of turning around businesses, implementing D2C & digital strategies, with a strong emphasis on bottom line and cash-flow

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John MacEntee

Experience of over 20+ years in leading start-ups, private companies, advising global corporations on innovation, market disruption & strategic transactions translating to robust value creation. Has strong expertise in eCommerce, DTC sales, multi-channel retail and Amazon marketplace management

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Competitive Edge

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Advanced Global Jewellery Industry Know-how Conceptualisation Manufacturing Distribution Partnership with Globally-recognized Brands Expertise in Conceptualization & Design Robust Distribution Channels in Key Global Markets Design Marketing Strong Balance Sheet

High-quality End-to-End Brand Partnership

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Growth Drivers

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Growing high-margin branded jewellery segment Extending licensing model to newer brands

Expanding presence in key global geographies

Widening Omni-channel distribution network Inorganic growth opportunities

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Financial Overview

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Financial Summary

Total Income (Rs. Mn)

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25,929
25,101
20,474
18,147
4,196
FY18 FY19 FY20 FY21 Q1 FY22
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EBITDA (Rs. Mn) & Margin (%)

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1,708 10.1%
1,249
1,156
1,006
6.8%
5.5% 5.6%
4.8% 413
FY18 FY19 FY20 FY21 Q1 FY22
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  • From FY18 to FY20, Renaissance has reported,

  • 18% CAGR in Total Income

  • 30% CAGR in EBITDA

Pat (Rs. Mn) & Margin (%)

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922
783 5.8%
643
463
3.7%
3.5%
3.0% 238
2.3%
FY18 FY19 FY20 FY21 Q1 FY212
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Return Ratios

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ROCE (%) ROE (%)
13.5%
12.9%
11.9% 12.6%
11.5% 7.9% 10.9%
9.9% 10.1%
6.0%
FY18 FY19 FY20 FY21 TTM
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  • 20% CAGR in PAT

  • Covid-19 pandemic affected performance in FY21

  • Target to report higher mid-teens return ratios

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Balance Sheet Discipline

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Leverage (Rs. Mn)

Net Debt Equity Net debt/Equity

  • Highly disciplined balance sheet approach

  • Sharp reduction in net debt over the years

  • Emphasis on prudent capital allocation & efficient working capital cycle

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0.76
0.51 0.52
0.29
6,647 0.25
6,992
5,495 8,429 8,603
5,033
2,857 3,612 2,416 2,176
FY18 FY19 FY20 FY21 Jun-21
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Working Capital Analysis (Days)

Payable Receivable Inventory NWC

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194 179
154 157
118 212
151
115 144 119
57 53 59 68 82
-54 -43 -21 -26 -56
FY18 FY19 FY20 FY21 Jun-21
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Working capital calculated with Total Income as denominator

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Robust Free Cash Flow Generation

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Free Cash Flow Generation (Rs. Mn.)

  • Strong FCF generation over the last 2 years

  • High-margin Branded Jewellery - a low capital-intensive business

  • Operating leverage & minimal capex spends to further improve FCF generation, going ahead

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1,128 1,157
1,941
-438 -3,512
FY18 FY19 FY20 FY21 Q1 FY22 TTM
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Cash, Cash Equivalents & Current Investments (Rs. Mn.)

  • Cash balances to be strategically utilised to create shareholder value

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2,563
2,449
935
649
391
FY18 FY19 FY20 FY21 June 30, 2021 TTM
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Operational Summary

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Revenue Mix (%)

Revenue Break-up
(Rs. Mn.)
FY18 FY19 FY20 FY21 Q1
FY22*
Branded Jewellery 326 2,653 3,215 3,736 915
- B2B 326 2,653 3,215 3,088 665
- D2C - - - 649 250
Customer brands 12,789 16,458 15,325 11,964 2,907
Plain Gold 4,994 6,795 3,901 4,612 273
Total Revenues 18,110 25,906 25,019 20,312 4,095

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Plain Gold Customer Brands Branded Jewellery
2 10 13 18 22
71
64 61
59
71
28 26 26 23 7
FY18 FY19 FY20 FY21 Q1 FY22
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EBITDA Margins Break-up(%)
FY21
Q1 FY22
Branded Jewellery
11.5%
15.0%
- B2B
10.3%
13.9%
- D2C
16.7%
18.1%
Customer brands
5.8%
8.9%
Plain Gold
0.7%
5.6%
Total EBITDA %
5.7%
10.1%
21
8
12
14
17
38
35
30
27
17
41
57
58
59
66
Geographical Mix (%)
Others
Middle East
N. America
FY18
FY19
FY20
FY21
Q1 FY22

*With effect from 1st Apr 2021, the Company has re-negotiated terms with most customers across its Plain gold division due to which, Renaissance is now recognizing only making charges as revenue for the Plain Gold business. This will meaningfully reduce the reported revenues of this division, without impacting EBITDA.

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Summary

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Conclusion

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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

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ESG Initiatives

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ESG Initiatives

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ENVIRONMENT

SOCIAL

  • To achieve safety, health and environmental excellence in all aspects of business activities

Renaissance’s CSR POLICY covers projects through NGOs under:

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  • Medical, Health Care and Social Welfare

  • Educational

  • Humanitarian

  • Environmental, Animal Welfare, Cultural and Religious

  • For FY2021-22, Renaissance spent Rs.1.16 crore towards CSR activities

GOVERNANCE

  • To achieve the highest levels of transparency, accountability and equity in all spheres of operations

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  • 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

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Corporate Social Responsibility

MEDICAL, HEALTH CARE AND EDUCATIONAL SOCIAL WELFARE

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  • Partnered with the  Under the Each One Teach One Initiative (EOTO), Bhaktivedanta Hospital by Renaissance adopted the Kamalaben Jogani High School establishing a mammography at Bhopoli in Palghar district of Maharashtra unit, providing five Dialysis Machines and a ‘Mobile Clinic  Employees visit regularly and teach students various nonfor Cancer Detection’ academic activities like football, self-defence, Tai-chi Yoga,

    • Employees visit regularly and teach students various nonacademic activities like football, self-defence, Tai-chi Yoga, chess, drawing and craft
  • In FY 2021-22, a donation of Rs. 90 Lakh was made towards this initiative

 Employees have coached over 250 students over a period of 4 years

  • Work with lsha Foundation to provide education facilities to the underprivileged children, helped build a classroom for students and donated a school bus to the foundation

  • Contributed towards building Shrimad Rajchandra Hospital in Dharampur, Gujarat under the Shrimad Rajchandra Mission

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ENVIRONMENTAL, ANIMAL WELFARE, CULTURAL & RELIGIOUS

HUMANITARIAN

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 Donated during natural  Actively contributes to disasters like floods, Shree Patan Panjrapole in famines, earthquakes, Patan, Gujarat which through the Sarnast works to enrich the life of Mahajan trust handicapped and weak animals  Donated to the Maharashtra Drought relief fund, Nepal Earthquake Relief and Uttarakhand Flood Relief

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Annexure

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Awards & Accolades

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2001 2005 2006 2008 2009
GJEPC Award for GJEPC Award for
2005 WM Int’l
SEEPZ-SEZ Star largest exporter of largest exporter of 2009 Emerging
Supplier of the
Award studded metal studded metal India Award
Year
jewellery jewellery
2017
2011 2012 2015 2016 2018
2019
GJEPC Award for GJEPC Award for GJEPC Award for GJEPC Award for GJEPC Award for
largest exporter of largest exporter of largest exporter of largest exporter of largest exporter of
studded metal studded metal studded metal studded metal studded metal
jewellery jewellery jewellery jewellery jewellery
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Market Snapshot

Shareholding Pattern Promoter & Promoter Group 70.8% Foreign Institutions (FPI, FII) & 1.6% NRI Individual - >1% 19.2% Others 8.4% As on Key Market Statistics 30-September-2021 BSE/NSE Ticker 532923/RGL CMP (Rs) 797.35 Market Cap (Rs Crore) 1,505.35 Number of outstanding shares (Crore) 1.89 Face Value 10.00 52-week High / Low (Rs)* 810.00/217.00

*Holding as on 30-June-21

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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 such as China and Japan. 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. 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:

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G. M. Walavalkar Compliance Officer Renaissance Global Limited

Email: [email protected]

Anoop Poojari / Jenny Rose CDR India Tel: +91 98330 90434 / 86899 72124 Email: [email protected] / [email protected]

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Thank You