( viP ) V N'ovember08,2019 To, To, The Listing Department, The - PDF document

~ A ( viP ) V N'ovember08,2019 To, To, The Listing Department, The Listing Department National Stock Exchange of India Limited BSELimited Phiroze Jeejeebhoy Towers, Exc han ge Plaza, Plot N'o. C/1, G Block, Dalal Street, Bandra-Kurla Complex Bandra (East), Mumbai-400 051. Mumbai-400 001. Trading Symbol : VIPCLOTHNG Scrip Code : 532613 Subject: Investor Presentation - Q2- F.Y. 2019-20. Dear Sir/Madam, Pursuant to Regulation 30 and any other applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 please find enclosed Investor Presentation for Q2 F.Y. 2019-20, the same has been uploaded on the website of the Company www.vipclothing.in. Requested you to kindly take the same on yb ur record and disseminate the same on your website for the information of the public at large. Thanking you Yours faithfully, For VIP Clothing Limited Z1 N\ Cv\M~.Q,T- Chief Financial Officer & Company Secretary End : As above. VIP Clothing Ltd. ( ormt:rll~ k111 \ n 1s \1,1.X\\CJI lndustrit:s L 1d I Registered Office: C-6, Street No 22 MIDl f: +91 (22) 282'i7624 17 33 Andh.-:n (F), Mumb.11-400 09~ India f· 91 (22128371023 ExponD1~ r 91 (22l282567S8 Cl\: L18Hll:\IHl991PL< 'OS980 -t 9 ( ) 28171024

Investor Presentation November 2019 1

Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by VIP Clothing Limited. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be 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 no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. This presentation contains certain forward looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward looking statements become materially incorrect in future or update any forward looking statements made from time to time by or on behalf of the Company. 2

Table of Contents 04 Q2 & FY20 Financials 07 Company Overview 23 Key Strengths 25 Business Strategy 27 Industry Overview 30 Financials Highlights

Q2 & FY20 Financial Highlights

Q2 & FY20 Financials (₹ in Million) Particulars Q2 FY20 Q1 FY20 Q2 FY19 H1 FY20 H1 FY19 FY19 Revenue from operations 496.8 574.0 466.9 1,070.8 1,176.8 2,074.6 Gross Profit 88.8 223.1 200.1 377.4 476.2 863.0 GP Margin (%) 17.9% 38.9% 42.9% 35.2% 40.5% 41.6% EBDITA (125) 30 (17) (30) 11 36 EBDITA Margin (%) -25.2% 5.2% -3.7% -2.8% 0.9% 1.8% Other Income 14.5 6.4 11.6 20.9 13.8 19.7 Depreciation and amortization expense 8.2 8.1 8.3 16.4 16.8 33.1 Finance costs 24.5 23.3 21.9 47.8 43.0 88.1 PBT before Exceptional Item (77.9) 5.1 (36.1) (72.8) (35.5) (65.1) PBT Margin(%) -15.7% 0.9% -7.7% -6.8% -3.0% -3.1% Exceptional items 0.0 0.0 0.0 0.0 0.0 0.0 Profit / (Loss) from continuing operations 94.77 6.27 (34.82) 101.04 (33.93) (61.93) Profit / (Loss) from discontinuing operations 0.0 0.0 - 0.0 - 0.0 Profit / (Loss) for the year (Total) 94.8 6.3 (34.8) 101.0 (33.9) (61.9) (1.2) (0.4) (0.1) (1.6) (0.5) (2.2) Other Comprehensive Income 93.6 5.9 (34.9) 99.5 (34.4) (64.1) Total Comprehensive Income for the period The Company has computed the tax expenses of the current financial year based on option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019. Accordingly the Company has recognised provision for income tax for the six months ended September 30, 2019 and re-measured its deferred tax liability as per revised rate prescribed. The full impact of change has been recognised in Statement of Profit and Loss for the quarter ended on September 30, 2019 5

Balance Sheet (₹ in Million) Particulars H1 FY19 FY19 Particulars H1 FY19 FY19 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Property, plant and equipment 374.39 386.50 Equity Share capital 165.19 165.19 Intangible assets 1243.81 1246.07 Other equity 1,813.51 1,714.03 Financial assets Sub-total - Shareholders' funds 1,978.70 1,879.23 Investments 0.03 0.12 Non-current liabilities Other 9.73 10.01 Financial liabilities Other non-current assets 3.64 3.66 Borrowings 1.84 2.17 Sub-total - Non-Current Assets 1,631.59 1,646.34 Other financial liabilities 60.44 58.24 Current assets Provisions 10.62 11.68 Inventories 989.54 1,116.95 Deferred tax liabilities (net) 307.54 536.07 Financial assets Sub-total - Non-current liabilities 380.44 608.17 Trade receivables 679.74 604.42 Current liabilities Cash and cash equivalents 2.52 0.16 Financial liabilities Bank balances other than above 59.51 57.06 Borrowings 885.28 824.61 Loans 3.42 2.87 Trade payables 209.86 207.53 Other financial liabilities(other Other 0.08 0.08 27.04 25.64 than specified above) Current Tax Assets (Net) 1.45 1.34 Provisions 36.03 21.98 Other current assets 151.37 142.07 Other current liabilities 1.86 4.13 Sub-total - Current Assets 1,887.62 1,924.94 Sub-total - Current liabilities 1,160.06 1,083.89 TOTAL - ASSETS 3,519.20 3,571.29 TOTAL - EQUITY AND LIABILITIES 3,519.20 3,571.29 6

Company Overview

Company Overview VIP Clothing Limited was One of India’s leading intimate apparel 01 incorporated in the year company providing intimate wear to 1991 to satiate the consumers across various segments 04 discerning taste of Indian under different brands. VIP enrich and Consumer. expand fashion quotient in multiple trends and style from inner comfort to fashionable garments The Company possesses Engaged in Business of 02 one of the widest and 05 Manufacturing and selling largest sales and innerwear, the Company distribution network for went Public in year 1993. innerwear products The Company focus is to become an International Symbol of Excellence VIP has in-house manufacturing through continuous customer 06 facility located in Gujarat and Tamil satisfaction, innovation, manpower 03 Nadu. Accredited with TUV- ISO 9000 development, productivity certificate that reflects its emphasis improvement, quality improvement, on Quality Management System, cost reduction and time designing, manufacturing and management delivery. 8

Sales & Distribution Sales Mix Network VIP has Pan India Presence with one of the largest distribution network 85% 12% Warehouses – 2 Retailers – ~35,000 3% Brand Outlets – 2 Sales & Marketing Professionals - 215 Distributors & Wholesalers - ~400 The globe is our canvas today. We enjoy long- standing relationships with our customers. We enjoy leadership position in our chosen geographies. Leveraging years of experience, we have developed a keen perception of the markets we operate in. Consequently our varied product profile has always been bolstered by unique strategies that go a long way in forging an indelible market presence. 9

Milestone Sale of Listing on NSE Delisting of spinning Investment of ~ ₹ the Equity division IPO of our 451 millions by Golden Scale Shares from situated at Company. First Reliance Capital Trophy by Incorporated the OTC Kollapalur, company to get Partners CMAI- The as a Private Exchange of Tamil Nadu listed OTCEI Equity Shares brand of the Limited India were listed on year for men's Company BSE Limited innerwear 1991 1993 2005 2006 2007 2008 2011 2012 2014 2015 2016 2017 2018 Awarded the Brand Right Issue of ~ ₹ 430 million to Launch of Premium License agreement for Leadership for Marketing augment the working capital Segment – VIP Regal manufacturing, Excellence by Indira Group base of the Company and Frenchie Casuals marketing, distribution of Institutes, Pune and sale of Eminence Sale of Factory Land and Brand products Building situated at Daman Sale of the processing house situated at SIPCOT, Perun durai, Tamil Nadu. Sale of in-operative division situated at MIDC, Change of Company’s Navi Mumbai name from Maxwell Industries Limited to VIP Clothing Limited 10