V.I.P. Industries Ltd. — Investor Presentation 2022

Jul 27, 2022

==> picture [90 x 31] intentionally omitted <==

27[th] July, 2022

BSE Limited National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal St, Kala Ghoda, Fort, Plot No. C/1, G Block, Mumbai – 400001 Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Code No. 507880 and 959982 Code – VIPIND

Subject: Presentations made/being made to analysts / institutional investors

Dear Sir/Madam,

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith presentation being made by the Company to the analysts/ institutional investors.

Kindly take the same on record.

Thanking you, Yours faithfully, For V.I.P. Industries Limited

==> picture [74 x 49] intentionally omitted <==

Anand Daga Company Secretary & Head – Legal Encl. As above

==> picture [168 x 11] intentionally omitted <==

Registered Office: DGP House, 5[th] Floor, 88C, Old Prabhadevi Road, Mumbai 400 025. INDIA. TEL: +91 (22) 66539000 FAX: +91 (22) 66539089, EMAIL: corpcomm@vipbags.com WEB: www.vipbags.com CIN - L25200MH1968PLC013914

==> picture [632 x 540] intentionally omitted <==

INVESTOR PRESENTATION Q1 FY 2022-23

==> picture [316 x 131] intentionally omitted <==

==> picture [320 x 116] intentionally omitted <==

==> picture [320 x 90] intentionally omitted <==

==> picture [180 x 78] intentionally omitted <==

==> picture [141 x 77] intentionally omitted <==

Disclaimer

==> picture [47 x 27] intentionally omitted <==

Some of the statements in this communication be forward statements within the of may looking meaning laws and Actual results differ from those or applicable regulations. might substantially expressed implied. Important developments that could affect the Company’s operations include changes in the industry structure, significant changes in political and economic environment in India and overseas, tax laws, import duties, litigation and labour relations.

The information contained herein has been prepared to assist prospective investors in making their own evaluation of the Company and does not purport to be all-inclusive or to contain all of the information a prospective or existing investor may desire. In all cases, interested parties should conduct their own research/investigation and of the and the data set forth in this information. The makes no or analysis Company Company representation warranty as to the accuracy or completeness of this information and shall not have any liability for any representations (expressed or implied) regarding information contained in, or for any omissions from, this information or any other written or oral communications transmitted to the recipient in the course of its evaluation of the Company.

While we have made every attempt to ensure that the information contained in this presentation has been obtained from reliable source, the Company is not responsible for any errors or omissions, or for the results from the use of this information. All information in this presentation is provided on "as is" basis with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information and without warranty of of In any kind, express or implies including but not limited to warranties performance for a particular purpose. no event will the Company its Directors, legal representatives, agents or employees thereof be liable to anyone for any decision made or action taken by relying on data/information in this Presentation.

VIP Industries : Our Journey

==> picture [99 x 57] intentionally omitted <==

Building beyond a rich heritage & strong legacy !

==> picture [69 x 69] intentionally omitted <==

==> picture [69 x 70] intentionally omitted <==

==> picture [69 x 69] intentionally omitted <==

VIP Industries : Facts & Figures

==> picture [74 x 74] intentionally omitted <==

==> picture [69 x 69] intentionally omitted <==

==> picture [71 x 48] intentionally omitted <==

==> picture [46 x 85] intentionally omitted <==

==> picture [89 x 65] intentionally omitted <==

==> picture [126 x 70] intentionally omitted <==

==> picture [70 x 69] intentionally omitted <==

==> picture [69 x 69] intentionally omitted <==

==> picture [98 x 50] intentionally omitted <==

==> picture [99 x 57] intentionally omitted <==

==> picture [133 x 100] intentionally omitted <==

Mr. Dilip G. Piramal Chairman

==> picture [133 x 98] intentionally omitted <==

Mr. Amit Jatia Director

Our Board & Management

==> picture [130 x 99] intentionally omitted <==

==> picture [133 x 99] intentionally omitted <==

Ms. Radhika Piramal Executive Vice Chairperson

Mr. Anindya Dutta Managing Director

==> picture [131 x 100] intentionally omitted <==

==> picture [130 x 98] intentionally omitted <==

Mr. Ramesh Damani Director

Mr. Tushar Jani Director

==> picture [99 x 57] intentionally omitted <==

==> picture [130 x 98] intentionally omitted <==

Ms. Nisaba Godrej Director

==> picture [133 x 100] intentionally omitted <==

Ms. Neetu Kashiramka Chief Financial Officer

Renowned Brands Present Across Categories & Price Points

==> picture [99 x 57] intentionally omitted <==

==> picture [814 x 430] intentionally omitted <==

Present Across All Major Luggage Categories

==> picture [99 x 57] intentionally omitted <==

==> picture [756 x 456] intentionally omitted <==

We Have A Strong Pan India Distribution

==> picture [99 x 57] intentionally omitted <==

==> picture [937 x 405] intentionally omitted <==

----- Start of picture text -----

RETAIL TRADE VIP Geographical Coverage
Metro (50L+) 5
MODERN TRADE
Mini Metro (20L to 50L) 8
GENERAL TRADE
Urban (T2) (5L to 20L) 81
ECOM
Urban (T3) (1L to 5L) 368
CSD CPC
Semi Urban (50K to 1L) 362
INSTITUITIONAL Total Towns 824
Branch locations
4 regions
20 branches
----- End of picture text -----

Upstream Transformation

==> picture [99 x 57] intentionally omitted <==

Revenue Split by Source

Pre-pandemic Q1 FY20

==> picture [238 x 252] intentionally omitted <==

----- Start of picture text -----

Own
3P Sourcing,
Manufacturing ,
25%
35%
China, 40%
----- End of picture text -----

==> picture [365 x 165] intentionally omitted <==

Post-pandemic Q1 FY23

==> picture [237 x 237] intentionally omitted <==

----- Start of picture text -----

3P Sourcing,
25%
Own
China, 11% Manufacturing ,
64%
----- End of picture text -----

==> picture [632 x 540] intentionally omitted <==

Q1 FY23 PERFORMANCE

Q1 FY23 Business Context

==> picture [99 x 57] intentionally omitted <==

Travel industry trends encouraging, but not back to pre-covid levels

==> picture [944 x 396] intentionally omitted <==

Q1 FY23 Business Context

==> picture [99 x 57] intentionally omitted <==

Battling different headwinds as the pandemic disruption eases out

==> picture [174 x 174] intentionally omitted <==

Inflation

• Higher input material prices

• Overall Inflation a Demand Dampener – was visible in tertiary sales as the quarter progressed.

• Airfares in May & June increased up to 50% due to rising jet fuel prices

==> picture [155 x 160] intentionally omitted <==

Future Group Accounts non operational

• High dependence - Historically accounts for ~15% of our revenues

• Out of 430 stores across banners, only 44 were operational in Q1

New Launches During The Quarter

==> picture [99 x 57] intentionally omitted <==

Q1 FY23 Had 38 New Launches In Luggage And 127 In Backpacks New Launches Explored Themes Across Brands

==> picture [295 x 216] intentionally omitted <==

==> picture [295 x 125] intentionally omitted <==

----- Start of picture text -----

Stain & Water resistant
----- End of picture text -----

==> picture [347 x 347] intentionally omitted <==

Targeting Train Travelers

(2 W SL, Duffle wheels, Built - in cable lock for train travel)

==> picture [51 x 47] intentionally omitted <==

==> picture [69 x 36] intentionally omitted <==

New Categories launched - Biking, Anti- Viral, Daypacks & Anti - Theft

==> picture [202 x 149] intentionally omitted <==

High Decibel Campaigns During The Quarter

==> picture [99 x 57] intentionally omitted <==

==> picture [232 x 359] intentionally omitted <==

==> picture [668 x 408] intentionally omitted <==

Consolidated Financial Results

==> picture [99 x 57] intentionally omitted <==

	Quarter ended	Quarter ended	Quarter ended
Particulars	Jun-22	Mar-22	Jun-21
Revenue from Operations Other Income	591 7	356 6	206 14
Total Revenue	598	362	221
COGS	296	166	101
Gross Contribution	302	195	119
GC Margin(without Other Income)	50%	53%	51%
Employee Benefits expenses Other Expenses	60 132	56 101	39 53
Total Expenses	192	157	92
EBIDTA	110	38	27
EBIDTA Margin	18%	11%	12%
Depreciation	18	17	18
EBIT	92	21	9
Finance Cost	7	5	7
Profit before Exceptional items	85	16	2
Exceptional items(Expense) /Income	15	-	-
Profit before Tax	100	16	2
Tax	31	4	-1
Profit After Tax	69	12	3

Revenue Performance : Categories & Brands

==> picture [99 x 57] intentionally omitted <==

Brand Salience	Q1 FY20	Q4 FY22	Q1 FY23
VIP	26%	21%	23%
SKYBAGS	40%	33%	30%
CARLTON	3%	4%	4%
Premium & Mass Premium	69%	58%	57%
ARISTROCRAT+ ALFA	25%	36%	35%
CAPRESE	4%	2%	4%
INTERNATIONAL	2%	3%	5%

Category Salience	Q1 FY20	Q4 FY22	Q1 FY23
UPRIGHTS	64%	76%	71%
HARD LUGGAGE – UPRIGHT	42%	62%	64%
SOFT LUGGAGE - UPRIGHT	58%	38%	36%
DUFFEL BAGS	9%	9%	7%
BAGPACKS	19%	9%	12%
LADIES HAND BANGS	4%	2%	4%
EXPORT & ACCESSORIES	4%	4%	6%

Value Play

Shift from unbranded segment expanding organised market – Higher growth in value segment a must for overall share gain

Premium & Mass Premium

Premium portfolio mix under stress – corrective measures underway.

Backpack & LHB Revival

Both categories were identified as stressed in previous quarter; QoQ salience has improved for both; LHB is back to pre-covid salience

HL PP Strategy Success

VIP continues to lead the HL trend in uprights with its PP strategy at work. HL preference in uprights on the rise – in line with global trends

Financial Highlights

==> picture [99 x 57] intentionally omitted <==

• Q1 revenue growth at 66% over Q4 FY22 Mar quarter. Hard Luggage constitutes 46% of total revenue for this quarter.

• Q1 GM after netting of other income is 50% as compared to 53% in Q4 FY23 mainly on account of higher RM rate.

GPQ4 Mar-22	53.3%
Impact for higher RM rates	-4.9%
Avg. SellingPrice Increase	2.1%
Mix Variance	-0.6%
GPQ1 Jun-22	49.9%

• Q1 Overall Expense is at Rs. 192 cr as compared to Q4 FY22 was at Rs. 157 cr, increase is mainly on account of increase in advertisement spend, freight cost and exchange rate fluctuation.

EBDITA Mar-22	10.6%
Decrease in Gross Margin	-3.3%
Decrease in Employee cost	5.4%
Decrease in Overheads	6.1%
Decrease in Other Income	-0.5%
EBDITA Jun-22	18.3%

Key Financial Metrics

==> picture [99 x 57] intentionally omitted <==

==> picture [849 x 433] intentionally omitted <==

----- Start of picture text -----

Revenue Gross Margin
598 54.0% 54.1%
50.5%
362
221
Jun-22 Mar-22 Jun-21 Jun-22 Mar-22 Jun-21
EBITDA PBT
18% 100
12%
11%
16
2
Jun-22 Mar-22 Jun-21
Jun-22 Mar-22 Jun-21
----- End of picture text -----

Other Expenses

==> picture [99 x 57] intentionally omitted <==

	For theQuarter ended	For theQuarter ended	For theQuarter ended
Particulars	Jun-22	Mar-22	Jun-21
Job Work Charges Consumption of stores and spare parts Electricity, Power & Fuel Expenses Rent Repairs Insurance Rates and taxes Travelling expenses Payment to auditors CSR Expenditure Professional fees Communication expenses Advertisement and publicity expenses Freight, handling and octroi Provisions Human resource procurement Net loss on foreign currency transactions and translation MiscellaneousExpenses	7.5 2.1 4.8 2.2 3.3 2.1 0.9 3.5 0.2 0.0 2.0 0.7 31.9 37.0 0.3 13.8 8.7 10.8	7.4 2.4 4.7 1.3 3.8 1.9 0.4 3.1 0.1 0.8 1.4 0.7 11.7 32.8 9.0 12.0 1.1 6.8	3.1 1.0 3.2 0.5 2.5 1.1 0.5 0.7 0.2 0.7 1.2 0.4 5.6 15.3 4.5 9.1 -0.4 4.0
Total	131.5	101.4	53.3

Business Environment For Q2 FY23

==> picture [137 x 137] intentionally omitted <==

==> picture [136 x 136] intentionally omitted <==

==> picture [131 x 136] intentionally omitted <==

Higher input prices Overall inflation - Demand Dampener

Slow Pace of Store Re-opening

Pandemic Impact on demand drivers neutralized Volatility Risk diminishing

==> picture [99 x 57] intentionally omitted <==

Thank you