Spencer's Retail Ltd. · NSE:SPENCERS
Spencer's Retail — RPSG Virtual Investor Conference 2021
28 slides from Spencer's Retail's conference presentation, Nov 22, 2021
Slide 1: Intimation of Investor Presentation to stock exchanges
SRL:SEC:SE:2021-22/51 November 22, 2021 The Manager The General Manager Listing Department, Department of Corporate Service, National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Tower Plot No. C/1, G-Block Dalal Street Bandra-Kurla Complex Mumbai – 400 00
Slide 2: Investors Presentation
Investors Presentation Nov-21 | RP-Sanjiv Goenka Group Presentation 1
Slide 3: Disclaimer
Disclaimer This presentation has been prepared by Spencer's Retail Limited (the "Company") for general information purposes only, about the company activities without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not const
Slide 4: Contents
Contents Industry Overview Key highlights Growth Strategy Annexures Nov-21 | RP-Sanjiv Goenka Group Presentation 3
Slide 5: Industry Overview
Industry Overview Key highlights Growth Strategy Annexures Nov-21 | RP-Sanjiv Goenka Group Presentation 4
Slide 6: Diversified Business House
RP- Sanjiv Goenka Group Diversified Business House FY21 Operating Power utility company engaged in coal Revenue in INR (Cr) mining, generation and distribution of electricity 2660 Largest Indian & 7th largest global 1325 carbon black manufacturer India's premier organised multi-format retailer 2428
Slide 7: Organized Retail share growing at CAGR ~17%
Organized Retail share growing at CAGR ~17% Organised Retail growing faster than 11.4 • India will continue to see Overall Retail Growth exponential growth in the Modern retail business because 7.4 7.1 of the increasing consumerism 6.4 6.0 and increased market access 5.2 driven by technology & 4.3 3
Slide 8: The future of retail is OMNI Channel
The future of retail is “OMNI Channel” Combination of Physical & Online Platform Moving Towards OMNI Channel • E-commerce will be the fastest 5.5 0.2 growing channel for retail because of 4.8 4.8 the Ecosystem 0.2 0.2 • Growing consumerism of the 4.1 4.0 middle class 3.5 3.1 0.1 • Young population 0
Slide 9: Spencer's presence across segments in Organized Retail
Spencer’s presence across segments in Organized Retail Spencer’s Retail Limited is present across ~73% segment share of organised Retail Share of Market Segment Modern Trade Penetration Others ~24.5% Food & Grocery ~20% ~4.6% Books & Music ~1% Apparel ~23% ~26.6% ~73% Pharmacy ~1.5% Consumer Durable
Slide 10: Indian E-Commerce & Online Grocery Market
Indian E-Commerce & Online Grocery Market Indian E-commerce Market INR Trillion CAGR of 27% over 2019- Indian Online Grocery Market 7.4 24, with grocery and INR Trillion fashion/apparel likely to be the key drivers for 1.36 incremental growth 2.2 E-commerce sales in 1.5 India only increased by 7
Slide 11: Key highlights
Industry Overview Key highlights Growth Strategy Annexures Nov-21 | RP-Sanjiv Goenka Group Presentation 10
Slide 12: Business Journey So Far
Business Journey So Far 2021 Scaling of OMNI Channel by 6.5X & 2012-2019 2019 Cost Reset for Acquisition of Online Profitable growth Acquisition of platform MERAGROCER Natures Basket Trading Area touches 1mn sqft 2000-2005 Launch of 1st Large 2020 format store in Hyderabad Natures Basket limited rep
Slide 13: Business Portfolio
Business Portfolio India's premier organised multi- format retailer, Offering Makes Fine Living 155 stores in customers great choice, great price Affordable 38 cities and great experience Differentiated Business One-stop-destination for 35 stores Model of International foods multi-cuisine, organic i
Slide 14: Pioneer in Modern Retail
Pioneer in Modern Retail Spencer’s Retail offers experiential and Operating leverage affordable shopping Cluster based expansion, Operates multi format Spencer’s Retail operates a chain of stores in 4 clusters (East, South, North and West) experiential retail stores across 41 cities with 190 stores
Slide 15: Growth Strategy
Industry Overview Key highlights Growth Strategy Annexures Nov-21 | RP-Sanjiv Goenka Group Presentation 14
Slide 16: Building blocks for growth
Building blocks for growth OMNI Customer Format Size Non Food Channel Experience Continue to expand Out-of-Store Channel to in the existing city be key driver for growth Non Food share to touch 10km radius cluster for next 3-4 for Spencers and 25%+ in next 4 years neighbourhood delivery year
Slide 17: Cluster base profitable growth
Cluster base profitable growth NORTH 45 Stores Spencers + Natures Basket EAST 57 Stores Spencers WEST + Natures Basket 23 Stores Natures Basket SOUTH 65 Stores Spencers + Natures Basket Nov-21 | RP-Sanjiv Goenka Group Presentation 16
Slide 18: OMNI Channel Business Growth >6.5X
OMNI Channel Business Growth >6.5X • ORIPL is an E-commerce company 100% owned Subsidiary of Spencer’s Retail Limited • Online store for Food, Grocery, Fresh, Apparel, General Merchandise and Liquor Continuous investments are being made in In India, Online penetration to reach 183 the online platf
Slide 19: Well curated Private Brand
Well curated Private Brand Private Brand Share % Apparel Cognitive Spencer’s: Food Business 12.5% Staples & FMCG Excremental Non Food Business 19.1% GM Natures Basket Routine Food Business E&E 12.8% Private Brands products have 8-10% higher gross margins than the branded products Nov-21 | RP-Sanjiv
Slide 20: Strategy way forward
Strategy way forward 2.5 to 3 lac sqft in Spencer’s growth to be driven through large format ~15% new pipeline for next space YoY 2 years Natures Basket store expansion in existing cluster with new addition of NCR and Kolkata OMNI Channel OMNI Channel business growth via PAN India Non Food and
Slide 21: Consolidated Financials
Consolidated Financials No. of Stores Trading Area Lac sqft Revenue from Operations ₹ Cr Gross Margin % 197 2,640 193 14.6 14.7 2,428 2,187 21.2% 21.4% 156 20.4% 13.7 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY20 FY21 Total expenses ₹ Cr EBITDA % Inventory Days of Holding on Turnover 509 3.
Slide 22: Consolidated Financials H1
Consolidated Financials H1 No. of Stores Trading Area Lac sqft Gross Margin % Revenue from Operations ₹ Cr 1,164 190 14.7 1,134 20.8% 185 14.0 20.4% H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 EBITDA % Inventory Days of Holding Total expenses ₹ Cr on Turnover 251 4.9% 44 39 216 0.2% H1FY
Slide 23: Annexures
Industry Overview Key highlights Growth Strategy Annexures Nov-21 | RP-Sanjiv Goenka Group Presentation 22
Slide 24: Our response to COVID
Our response to COVID Business 1. Ensured safe and hygiene environment for employees and customers Continuity 2. No Mask No Entry, Social distancing, Thermal screening & frequent sanitization OMNI Channel 1. Leveraged E commerce channel for ease ordering & wider reach Ecommerce 2. Store as a platfor
Slide 25: Environment, Social and Governance
Environment, Social and Governance (E) Gender Equality (S) Ecological Impact Women Empowerment Waste Management Increased usage of Company believes in ~25% women Company has Electronic transactions vs workforce. Promoting providing equal significantly reduced physical paper based women safety causes
Slide 26: ESG – Synonymous with Sustainability
ESG – Synonymous with Sustainability Training Support in World Food Women Safety and Customer Feedback Energy Efficient Program for Kingdom of Bhutan Empowerment Best in class Say yes to cloth bags & Our Corporate Office RPSG Insider Trading practices followed #No To Plastic bags! House is certified
Slide 27: Leadership Team
Leadership Team Shashwat Goenka Devendra Chawla Non – Executive Director Managing Director & CEO Alumni of The Wharton School of The University of Pennsylvania BE, MBA and Alumni of Harvard Business School Heads Retail and FMCG business of RP-Sanjiv 23+ years of experience in Consumer industry G
Slide 28: Thank You
Thank You About Spencer’s Retail Limited: Spencer’s Retail Limited, part of RP-Sanjiv Goenka Group, is a multi-format retailer providing a wide range of quality products across categories such as FMCG, fashion, food, staples, general merchandise, personal care, home essentials, electrical and electr
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