Vakrangee Limited — Regulatory Filings 2021

Jul 26, 2021

Vakrangee Limited ~rgee Corp )rdte HI... se Pot N 113 pr .oj t _ - ^~DC ~t4dIO A -Iher {EJ't) Ml.Jmba 4OCJ9l Mal r \tv N Ikr ·~112 L£::'U jAL + l1 .. L 6T'6 5 .. 00 F '9 •• 2 ;fl<;O 2017 (IN L6' g90MH 1990PL'OS,,66<; a

July 26, 2021

To,

Department of Corporate Relationship	Corporate Relationship Department
BSE Ltd.	National Stock Exchange of India Ltd.
Phiroze Jeejeebhoy Towers,	Exchange Plaza, Bandra Kurla Complex,
Dalal Street, Fort,	Bandra (East), Mumbai - 400 051
Mumbai - 400001

Dear Sir/Madam,

Sub.: Result Update Presentation - 01 FY2021-22 Ref.: Scrip Code - 511431/VAKRANGEE

With reference to the captioned subject and pursuant to Regulation 30 of SEBI (listing Obligations and Disclosure Requirements) Regu lations, 2015, please find attached herewith Result Update Presentation 01 FY2021-22 considered in the Board Meeting of the Company held today on July 26, 2021.

Kindly take the above on your record.

Thanking you

Yours fa ithfully,

For Vakrangee Limited

Jay Bhansali Company Secretary (Mem. No.: A48251)

Encl.: A/ a

THE ASSISTED DIGITAL CONVENIENCE STORE

VAKRANGEE LIMITED RESULTS UPDATE PRESENTATION – Q1 FY2021-22

July 26, 2021

DISCLAIMER

This presentation has been prepared by Vakrangee Limited ("Vakrangee" or "VL" or the "Company") solely for your information and for your use and may not be taken away, reproduced, redistributed or passed on, directly or indirectly, to any other person (whether within or outside your organization or firm) or published in whole or in part, for any purpose. By attending this presentation, you are agreeing to be bound by the foregoing restrictions and to maintain absolute confidentiality regarding the information disclosed in these materials.

The information contained in this presentation does not constitute or form any part of any offer, invitation or recommendation to purchase or subscribe for any securities in any jurisdiction, and neither the issue of the information nor anything contained herein shall form the basis of, or be relied upon in connection with, any contract or commitment on the part of any person to proceed with any transaction. The information contained in these materials has not been independently verified. No representation or warranty, express or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented or contained in these materials.

Any forward-looking statements in this presentation are subject to risks and uncertainties that could cause actual results to differ materially from those that may be inferred to being expressed in, or implied by, such statements. Such forward-looking statements are not indicative or guarantees of future performance. Any forward-looking statements, projections and industry data made by third parties included in this presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

This presentation may not be all inclusive and may not contain all of the information that you may consider material. The information presented or contained in these materials is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives accepts liability whatsoever for any loss howsoever arising from any information presented or contained in these materials.

THIS PRESENTATION IS NOT AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ELSEWHERE.

TABLE OF CONTENTS
Results Performance Update	04
Strategy 2.0: Our next 5 year growth plan	10
Launch of Mobile Super App Update	16
Company Overview	20
Update on Awards & Recognition	28
Annexure : Kendra Evolution	30

RESULTS PERFORMANCE UPDATE

Key Highlights – Q1 FY2021-22 (Y-o-Y Basis)

RESULTS PERFORMANCE UPDATE

Returning to Pre-Covid Growth Path, Witnessing Strong Business Growth Momentum !!

We have Reached an Inflection Point, we are now well poised for strong Financial & Operational growth over the coming quarters and future years.

PERFORMANCE OUTLOOK UPDATE

Sale Revenue & Profitability Growth : Positive

• Well poised for strong Financial & Operational growth. Return to normalcy on the business front has been progressing well as E-commerce, Online Healthcare and other services have become operational
• Strong Operating Leverage to result into significant improvement in profitability.
• Quarterly Throughput crossed Rs. 107+ Billion. Quarterly No. of Transaction crossed 27.0 Million
• Implemented Process automation & Technology Initiatives resulting into enhanced profitability

Business Opportunity on Growth Side: Positive

• Substantial Increase in Trust & Awareness
• Enhanced visibility and Brand Awareness during Nationwide Lockdown
• More than 1,50,000+ Applications in place
• Company is empanelling Global consultants to understand the Online market landscape and evaluate the opportunity size for BharatEasy Super App and to strategize the best ways to unlock value for all the stakeholders.

Planned Target : Return to Normalcy & Strong Growth

• Outlet expansion to 25,000 NextGen outlets by FY2022 and to 75,000 NextGen outlets by FY2026

Dividend Recommendation : Dividend recommended of Rs.0.10 Per Equity Share having Face Value of Rs.1 each. Company is focusing on key growth initiatives of Strategy 2.0 scaling to 75,000 kendras as well as Digital strategy for enabling O2O platform through Bharat Easy Mobile Super App. Therefore the Board is of the view that the company has strong growth avenues in place and therefore its in best interest of its shareholders that the maximum amount of free cash flows is re-invested in the business for future growth

VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE

PERFORMANCE UPDATE FOR QUARTER ENDED JUNE, 2021

~Rs. 107.0 Bn

Quarterly Throughput on Vakrangee Platform – Q1 FY22 Transaction Value

~27.0 Mn

Quarterly No. of Transactions on Vakrangee Platform – Q1 FY22

11,900+

No. of NextGen Outlets currently operational

~US\$5.8 Bn

Annual Run Rate Throughput – Transaction Value - basis Current No. of operational Outlets

Our Aim to become India's Largest Rural Consumption Platform

• Banking and ATM services witnessed normalization as there was Government subsidy distribution during the Covid period.
• E-Commerce, Online Healthcare and Other services have now become operational and have witnessed QoQ growth and is improving.

CONSOLIDATED FINANCIAL STATEMENTS

Key Profit & Loss Statement Items
Particulars (Rs. Mn.)	Q1 FY2021-22	Q1 FY2020-21	YoY%	Q4 FY2020-21	QoQ%	FY2020-21
Revenue from Operations	1,540.2	678.5	127.0	1,018.5	51.2	3,142.9
Total Expenses	1,248.9	684.1	82.6	919.4	35.8	3,011.3
EBIDTA	340.8	204.1	67.0	296.6	14.9	976.2
Profit before Tax (PBT)	305.4	165.3	84.8	275.6	10.8	828.2
Tax Expenses	72.2	46.4	55.6	67.7	6.6	200.3
Profit after Tax (PAT)	233.3	118.9	96.2	207.9	12.2	627.9
Earnings per Share (EPS Basic)	0.22	0.11	100.0	0.20	10.0	0.59

Key Balance Sheet Items

Particulars (Rs. Mn.)	FY2020-21	FY2019-20	Particulars (Rs. Mn.)	FY2020-21	FY2019-20
Net Worth	26,640.8	26,373.0	Fixed Assets	1605.1	1,539.9
Share Capital	1,059.4	1,059.4	Other Non-Current Assets	6029.9	6,340.4
Other Equity	25,581.4	25,313.6	Inventory	49.7	78.1
			Trade Receivables	11203.1	13,688.4
Total Debt	0.0	0.0	Cash & Cash Equivalents	212.8	1,785.1
Long Term Debt	0.0	0.0	Other Current Assets	9655.7	4,757.4
Short Term Debt	0.0	0.0	Less: Trade Payables	341.4	690.8
			Less: Other Current Liabilities	1729.7	1,058.7
Other Non-Current Liabilities	44.4	66.8	Net Current Assets	19050.2	18,481.4
Total Sources of Funds	26,685.2	26,439.8	Total Application of Funds	26685.2	26,439.8

STRATEGY 2.0: VAKRANGEE'S PHYSICAL NETWORK PLATFORM –

OUR NEXT 5 YEAR GROWTH PLAN

	For Financial Year 2020-21 A	For Financial Year 2021-22 E	For Financial Year 2022-23 E
	Apr-20 - Mar-21	Apr-21-Mar-22	Apr-22 - Mar-23
No.of Exclusive Branded Outlets	11,730	25,000	35,000
GMV / Gross Transaction Value Throughout (US\$ BN)	5.15	10 18
No. of Transactions (mn)	126.8 300		400
No. of Active Customers (mn)	$20 - 25$	$25 - 35$	$35 - 45$
	For Financial Year 2023-24 E	For Financial Year 2024-25 E	For Financial Year 2025-26 E
	Apr-23 - Mar-24	Apr-24 - Mar-25	Apr-25 - Mar-26
No.of Exclusive Branded Outlets	50,000	65,000	75,000
GMV / Gross Transaction Value Throughout (US\$ BN)	28	40	50
No. of Transactions (mn)	600	800	1,000

VAKRANGEE KENDRA OUTLETS – PERFORMANCE UPDATE

VISIBILITY ON OPENING OF NEXTGEN OUTLETS

Total Number of Operational Outlets : 11,900+

Total Number of Formal Expression of Interest : 1,50,000+

CLEAR VISIBILITY OF 25,000 NEXTGEN OUTLETS BEFORE MARCH 2022

SUSTAINABILITY ESG PERFORMANCE UPDATE

Global recognition reflects company's commitment to further enhance its corporate governance and transparency standards. Company has achieved Global recognition across various platforms for its superior ESG performance and long term Business sustainability.

Company has been successful in benchmarking its performance on a wide range of industry specific economic, environmental, governance and social criteria that are relevant to the growing focus on Business sustainability and financially relevant to the corporate success.

Sr. No.	ESG Assessment & Rating platform	Vakrangee Ranking
1	Sustainalytics ESG Risk Assessment Rating	Globally ranked No.1 in the Sustainalytics ESG Risk rating rankings out of the 816 companies assessed in the Software and Services industry across worldwide
2	CDP Score - Climate Change 2020	Achieved "B" Score from CDP for Environmental Practices, Better than the Industry's Average (Asia regional average of D, Global Average of C)
3	CDP Score - Supplier Engagement Rating 2020	Achieved "A-" Score from CDP for Suppliers Engagement, Better than the Industry's Average (Asia regional average of B-, Global Average of C)
4	SAM Corporate Sustainability Assessment (CSA) – S&P Global	Globally ranked No. 13 Company in the global industry ranking and ranked No. 9 in the Corporate Governance global industry raking based on RobecoSAM – S&P Global ESG Score.
5	Bloomberg Gender Equality Index (BGEI)	Included in the Bloomberg's 2021 Gender-Equality Index (GEI). The 2021 Bloomberg GEI comprises of 380 companies across the world with a combined market capitalization of USD14 Trillion Headquartered in 44 countries and Regions across 11 sectors.	15

LAUNCH OF MOBILE SUPER APP UPDATE

LAUNCH OF MOBILE SUPER APP UPDATE

• Vakrangee has recently launched an online digital platform to enable seamless services for the consumer at the comfort of their homes. Through this, company has evolved into the unique O2O (Online to Offline) platform, whereby there is Assistance available through the Physical Kendra network along with Digital Online Services
• The company has Initiated this Unique Hybrid proposition with launch of first Digital service of Total Healthcare services The company plans to make many more existing Vakrangee services live through this platform.
• The Company is now launching an All in one : "BharatEasy" Mobile Super App based business platform. (Beta Trial Version has been launched )
• By downloading a single Vakrangee's BharatEasy Super App mobile application, our customers would get access to a wide array of Products and Services which would significantly reduce their requirement to switch between multiple apps. This would lead to superior customer experience and convenience for the customer.
• The Mobile super app platform would be offering various consumer products and services under one umbrella. Consumers would use it every day because our app would offer a seamless, multi-service, integrated, contextualized and efficient experience.

BUSINESS MODEL : OUR UNIQUE OFFERING

BUSINESS MODEL : UNIQUE COMPETITIVE ADVANTAGES

COMPANY OVERVIEW

NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES

Vakrangee Kendra offers a broad spectrum of services across different sectors to offer a "One Stop Shop" solution for its customers

NEXTGEN VAKRANGEE KENDRA – SCOPE OF SERVICES

BFSI & ATM SERVICES

FORMATS OF NEXTGEN VAKRANGEE KENDRA

NEXTGEN VAKRANGEE KENDRA: GOLD, SILVER AND BRONZE MODEL

Update on Nextgen Vakrangee Kendra Model:-

• As the Bouquet of services have increased over the last few years , the viability of the kendra has increased on a standalone basis resulting into an Exclusive store format.
• Key Mandatory features have been added in the Nextgen Model CCTV, Digital Signage & Pinpad device for all kind of payment mode.
• Nextgen Vakrangee model includes standardized Look & Feel and Branding as designed by renowned Store Brand consultants Lewis & Hickey.

KEY FEATURES – NEXTGEN VAKRANGEE KENDRA

KEY FEATURES

NEXTGEN VAKRANGEE KENDRA MODEL

CASE STUDIES : NEXTGEN TOP PERFORMERS

Franchisee -SHASHI JAIN from a Tier-3 location of Rajasthan have Earned `1,45,460 in just month from ATM Services

Franchisee -DEEPALI ANDHARE from a Tier-1 location of Maharashtra have Earned `41,262 in one month from BFSI-DMT Services

Franchisee -KANHAIYA LAL from a Tier-3 location of Rajasthan have Earned `27,300 from vHealth by Aetna Services

Number of Accounts Opened - 36

Total Transaction Value - `2,55,27,850

Number of Financial Transaction - 11,591

Total Transaction Value – `96,78,600

Number of Transactions - 2,491

Total Transaction Value - `66,30,608

Number of Plans Sold - 182

Total Transaction Value - `1,82,000

UPDATE ON AWARDS & RECOGNITION

AWARDS & RECOGNITION

• Vakrangee makes history by setting GUINNESS WORLD RECORDSTM title for the Most stores launched simultaneously on 14th January 2019
• Launches 1107 Nextgen Vakrangee kendra stores across the country at 11.07 Am on the same day

• This is the highest number of stores opened anywhere in the world

• Vakrangee has been awarded as the best 'FINANCIAL SERVICES RETAILER OF THE YEAR' at the Indian Retail Awards 2019.

• The objective of the Indian Retail Awards is to recognize the Retailers who are closing the gap between operational reality and consumer expectations with great retailing practices.
• Vakrangee has been ranked amongst Top 100 Franchise Opportunities for the year 2021 by the Franchisee India in the Franchising World's Annual Survey.
• Franchise 100 represents the Top-100 best performing franchise brands and opportunities by analyzing their brand strength, franchise growth, size of system, costs and fee as well as franchise friendliness.

ANNEXURE : KENDRA EVOLUTION

KENDRA EVOLUTION

PHASE 1: INITIALLY AN E-GOVERNANCE PLAYER

PHASE 1: CSC & E-MITRA MODEL

OUTLETS WERE TERMED AS "COMMON SERVICE CENTRE - CSC" OR "E-MITRA KENDRA" :-

• NON-EXCLUSIVE STORE MODEL
• SINGLE LINE OF SERVICE PRIMARILY
• NO STANDARDIZED DESIGN LAYOUT & BRANDING . KIRANA STORE MODEL

PHASE 2: EVOLVED TO A BANKING BC POINT MODEL

PHASE 2 : BANKING BC POINT MODEL

COMPANY RECEIVED THE BC BANKING MANDATE AND STARTED BANKING SERVICES –

• NON-EXCLUSIVE
• DUAL LINE OF SERVICE - E-GOVERNENCE & BANKING SERVICES
• NO STANDARDIZED DESIGN , INITIATED STANDARD BRANDING IN TERMS OF BASIC SIGNAGE & HOARDINGS

PHASE 3: EVOLVED TO MULTI SPECIALITY STORE MODEL

PHASE 3 : MULTI-SPECIALITY STORE MODEL

EVOLVED INTO A MULTI SPECIALITY STORE MODEL :–

• PLANNED AS AN EXCLUSIVE STORE MODEL
• MULTI-LINE OF SERVICES – BANKING, E-GOVERNENCE, INSURANCE, E-COMMERCE & OPTIONAL ATM SERVICES
• INITIATED STANDARD BRANDING IN STORE LAYOUT AS WELL AS SIGNAGE

PHASE 4: EXCLUSIVE NEXTGEN DIGITAL CONVENIENCE STORE

PHASE 4 : NEXTGEN KENDRA MODEL –DIGITAL CONVENIENCE STORE

EVOLUTION INTO AN EXCLUSIVE ASSISTED DIGITAL CONVENIENCE STORE MODEL –

• EXCLUSIVE STORE MODEL
• MULTI-LINE OF SERVICES – STANDARDIZED LAYOUT & DESIGN BY L&H (LEWIS & HICKEY)
• STANDARD BRANDING IN STORE DIGITAL SIGNAGE & CCTV MANDATORY

Thank You