Spencer's Retail Ltd. · NSE:SPENCERS
Spencer's Retail — Investor Presentation (September 2020)
36 slides from Spencer's Retail's investor presentation, Sep 18, 2020
Slide 1: Spencer's Retail Limited
SRL:SEC:SE:2020-21/47 18 September, 2020 The Manager The General Manager Listing Department, Department of Corporate Service, National Stock Exchange of India Limited BSE Limited (Symbol: SPENCERS) (Scrip Code: 542337) Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Tower Plot No. C/1, G-Block Dalal St
Slide 2: Business Overview
Spencer's Retail Limited Business Overview
Slide 3: Disclaimer
Disclaimer This presentation is issued by Spencer's Retail Limited (the "Company") for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offer or in
Slide 4: Contents
Contents Company Snapshot Key Differentiators Annexures #3
Slide 5: Contents
Contents Company Snapshot Key Differentiators Annexures #4
Slide 6: RP-Sanjiv Goenka Group
RP- Sanjiv Goenka Group Diversified Business House FY20 Operating Power utility company engaged in coal mining, Revenue in Cr generation and distribution of electricity 3243 One of top 3 BPO players in India 939 Largest Indian & 7th largest global carbon black manufacturer 2640 India's premier organ
Slide 7: Business Snapshot: Consolidated
Business Snapshot: Consolidated Scale Efficiency ₹ 547 Cr. ₹ 2,640 Cr. >34% >35% Q1 FY21 Q1 FY21 FY20 Revenue FY20 Operating Revenue from Operating from Non-Food Revenue Non-Food Revenue Categories Categories 10 ~ 0.66 lac sq. ft. 20.5% 21.5% # of New Stores Trading Area FY20 Q1 FY21 opened during a
Slide 8: Spencer's Retail: Evolution of the Business
Spencer's Retail: Evolution of the Business 2006-2009: Spencer's brand 2010 -2016: Consolidation by 2017 onwards: 1989-2005: Introduced Modern launch and rapid shutting down non-performing Focus on Retail to India expansion stores profitable growth RPG 1st hypermarket Change in brand Change
Slide 9: Spencer's Positioned as a Holistic grocery shopping environment
Spencer's Positioned as a Holistic grocery shopping environment though its wide & unique range of products Differentiated Fresh Section Unique Fish & Meat offerings One-stop destination for multi- cuisine cooking needs. Experiential Shopping & Preferred destination Wide range of assortments smooth c
Slide 10: Contents
Contents Company Snapshot Key Differentiators Annexures #9
Slide 11: Key Strategic Pillars
Key Strategic Pillars Profitable Growth in chosen Geographies Optimal Product Mix ~ Increasing share of High Margin Categories Differentiated and Diversified Private Brand Program Targeting a Well-Defined Customer-Base ~ Diverse and Differentiated Product Offerings & Superior Customer Experience Eff
Slide 12: Profitable Growth in Chosen Geographies
Spencer's Profitable Growth in Chosen Geographies Profitable Growth Trading Area & No. of Stores Trend 15.00 24% 2.00 13.00 11.00 Optimal Mix 1.00 9.00 NORTH 7.00 45 Stores 0.00 5.00 FY15 FY16 FY17 FY18 FY19 FY20 Opened Stores 0.76 1.63 1.21 0.59 2.09 0.66 Private Brand Closed Stores 0.90 1.32 0.09
Slide 13: Expanding in Chosen Profitable Geographies with Natures Basket acquisition
Expanding in Chosen Profitable Geographies with Natures Basket acquisition Spencer’s + Natures Acquired Natures Basket limited, Profitable Growth Basket Presence which gave us access to the attractive western India market. NORTH High potential region of Maharashtra Optimal Mix 45 Stores with ~15
Slide 14: Operational Model
Operational Model Profitable Growth Capex Cost Revenue ₹1500 to 2000 ₹1000 to 2000 sq.ft. sq.ft. Optimal Mix Store Size 5000- 25000 Private Brand sq.ft. Customer Base Store EBITDA margins 5 to 6% Operations Payback period of 3 to 5 years Omni-Channel #13
Slide 15: Spencer's & Natures Basket – Optimal Mix
Spencer's & Natures Basket – Optimal Mix Profitable Growth # of # of Cities Average Revenue Typical Mix of Key Differentiators Stores Present in Store Area Share Assortment Optimal Mix 34% Destination & Convenience format Spencer's Offers all categories including non-food such as apparel, genera
Slide 16: Led by Large Format Stores to drive profitability and improve margins
Spencer's Retail Led by Large Format Stores to drive profitability and improve margins Profitable Growth # of # of Cities Average Revenue Typical Mix of Key Differentiators Stores Present in Store Area Share Assortment Optimal Mix Destination format Large Format 30% Offers all categories includi
Slide 17: Well Differentiated and Diversified Private Brands
Well Differentiated and Diversified Private Brands Delighting customers with wide range of quality products through our own brands Profitable Growth Apparel Cognitive Optimal Mix Private Brand FMCG Excremental Customer Base GM Operations Routine E&E Omni-Channel Private Brands products have 5-10% hi
Slide 18: Targeting a Well-Defined Customer-Base
Targeting a Well-Defined Customer-Base… 2017 Profitable Growth 14% Share of Working Age The proportion of nuclear Population 19% Optimal Mix households has reached 70% 16% and is projected to increase to 25% 74% by 2025 50-64 28% Nuclear families spend 20% to 30% more 26% Years Private Brand 36-
Slide 19: Increasing Customer Stickiness
…. Increasing Customer Stickiness… Profitable Growth Consistent increase in Customer stickiness & share of wallet by leveraging precision targeting & personalisation through CRM, Online, Optimal Mix Digital & Social Media, Whatsapp outreach Private Brand Activities ensuring high cross sell to custom
Slide 20: Top States Expected to Grow at 11.3% CAGR
Top 10 States, Contributing ~64% to India's Retail, are Expected to Grow at 11.3% CAGR Profitable Growth Retail Spending in Select States Optimal Mix Punjab 18 | 27 Haryana Delhi & NCR^^ 27 | 43 30 | 48 Private Brand Rajasthan Uttar Pradesh 51 | 75 Bihar 30 | 44 18 | 35 Gujarat Madhya Pradesh West 4
Slide 21: Modern Trade Sees Growth in Shoppers Visit
Modern Trade Sees Growth in Shoppers Visit Driven by Increased Visits to Hypermarkets Profitable Growth 2013 2014 2015 2016 2017 Optimal Mix Hypermarket 14% +4 18% -6 12% +3 15% +16 31% Private Brand Supermarket 35% +5 40% -8 32% +13 45% +6 51% Customer Base Modern Trade (Any Hypermarket/ 44% +2 46%
Slide 22: Efficient Operations
…. Efficient Operations Efficient In-store Management along with Centralized Control Ensuring Lean Cost Structure Profitable Growth In-store Management Supply Chain Efficiency Defined store work plan to ensure Lean cost structure with centralized replenishment control standardization across stores
Slide 23: Spencer's - preferred destination for big retail days
Spencer's - preferred destination for big retail days Profitable Growth Optimal Mix Private Brand Customer Base Spencer's positioned as Operations retailer for all occasion gifting Omni-Channel #22
Slide 24: Spencer's - becoming a true OMNI Channel
Spencer's - becoming a true OMNI Channel Profitable Growth Being Part of Moving towards Community via OMNI Channel hyper local Optimal Mix Major shift of gear in direct to Direct Customers customer Connect channel Private Brand Customer Base Store as Hub Online-road to profitability Operations Conta
Slide 25: Providing Shopping experience for every stage of digital maturity
Providing Shopping experience for every stage of digital maturity Serving customers by providing them superior shopping experience Profitable Growth through digital transformation with varied assortment, differentiated offerings, tie-ups with partners for last mile deliveries, enhanced value proposi
Slide 26: Our response to COVID
Our response to COVID Business 1. Ensured safe and hygiene environment for employees and customers 2. No Mask No Entry, Social distancing, Thermal screening & frequent Continuity sanitization OMNI Channel 1. Leveraged E commerce channel for ease ordering & wider reach Ecommerce 2. Store as a platfor
Slide 27: Embracing the new normal at our stores
Embracing the new normal at our stores Mandatory Face Mask & Thermal screening Deep Social cleaning & distancing frequent marks on disinfection ground Sanitizing Virtual basket, meetings trollies & prescribed Cash tills Contactles Store as a s delivery platform #26
Slide 28: People & Culture
People & Culture Safe & Employee Capability Engagement Hygienic work centric building & & environment practices Support Development WFH: Work from Reward & Resources: Tie-up Mandatory Mask & Recognition home comprehensive with Dr. Lal Path labs Thermal screening: Program: Best Store guidelin
Slide 29: ESG Focus
ESG Focus Spencer’s have made extensive qualitative investments with an objective to enhance value for all stakeholders Enabling Governance Centric: Energy Environment: The Company invested in Conservation: The Company created an Governance centric company made a enabling environment initiativ
Slide 30: Corporate Governance
Corporate Governance Diverse Board Management Team Balanced mix of independent and professional directors Continuous review of performance of Board is guided by the following committees management team and guidance by Board to ─ Audit Committee with majority independent directors ensure improv
Slide 31: Management Team
Management Team Shashwat Goenka Non – Executive Director Alumni of The Wharton School of The University of Pennsylvania Heads Retail and FMCG business of RP-Sanjiv Goenka group comprising of Spencer's Retail Ltd, Natures Basket Limited, Omnipresent Retail India Pvt Ltd. & Guiltfree Industries Lt
Slide 32: Contents
Contents Company Snapshot Key Differentiators Annexures #31
Slide 33: Consolidated Financials
Consolidated Financials 12 months 3 months ended Growth Consolidated (₹ Cr) ended 30-Jun-20 31-Mar-20 30-Jun-19 Y-o-Y Q-o-Q 31-Mar-20 547 640 601 -9% -15% Revenue from operations 2,640 435 500 475 Cost of Goods Sold 2,073 112 140 126 -11% -20% Gross Margin 567 20.5% 21.9% 20.9% -46 bps -138 bps Gros
Slide 34: Standalone Financials: Spencer's Retail Limited
Standalone Financials: Spencer's Retail Limited 12 months 3 months ended Growth Standalone (₹ Cr) ended 30-Jun-20 31-Mar-20 30-Jun-19 Y-o-Y Q-o-Q 31-Mar-20 - 1 4 New Stores added 10 158 160 160 -1% -1% Total Store count 160 - 0.02 0.17 TA added (Lac sq.ft) 0.66 13.37 13.73 13.86 -4% -3% TA exit (Lac
Slide 35: Natures Basket Limited reported first-ever Positive EBITDA within 1 year of acquisition
Natures Basket Limited reported first-ever Positive EBITDA within 1 year of acquisition 3 months ended Growth For the period Standalone (₹ Cr) 5th Jul'19 - 30-Jun-20 31-Mar-20 Q-o-Q 31st Mar'20 - - New Stores added - 31 31 0% Total Store count 31 - - TA added (Lac sq.ft) - 0.84 0.84 0.0% TA exit (La
Slide 36: Business Overview
Business Overview
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