Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q2 FY20 Earnings Presentation
32 slides from Aditya Birla Fashion And Retail's earnings presentation, Nov 12, 2019
Slide 1: Outcome of Board Meeting cover letter
ADITYA a;,JRLA FASHION & RETAIL November 12, 2019 BSE Limited National Stock Exchange of India Limited Scrip Code: 535755 Symbol: ABFRL Sub.: Outcome of the Meeting of the Board of Directors of Aditya Birla Fashion and Retail Limited ("the Company") held on November 12, 2019 Ref.: 1. Regulation 30 (
Slide 2: Highlights
ADITYA BIRLA
Slide 3: Distribution Network
Distribution Network Market Update Q2 FY20 Distribution Highlights Network Performance of Key Portfolios Way Forward Company Financials
Slide 4: India's widest distribution network
2,544 India’s widest distribution network Brand Stores 17 331 1 3 82 12 14 45 22 124 Pantaloons Stores 100 7 15 14 3 97 249 13 9 29 8 34 5 88 22,000 83 25 62 10 5 5 56 80 36 4 1 71 1 4 7 3 Multi-brand Outlets 26 66 334 6 7 43 90 7.9 5,403 9 305 12 68 Q2 FY20 SIS across 13 Departmental stores 1 28 4
Slide 5: Market Update
Distribution Network Market Update Q2 – FY20 Market Highlights Performance Update of Key Portfolios Way Forward Company Financials
Slide 6: Market Update
Market Update Tough Market Promotions’ driven New Categories Network Conditions Festive sales driving growth Expansion Poor customer Due to poor market ‘Newer’ categories Expansion of sentiments had an conditions, most brands like kids wear, Organized Retail adverse impact on the ran heavy promotion
Slide 7: Q2 – FY20 Highlights
Distribution Network Market Update Q2 – FY20 Q2 FY20 Highlights Performance Highlights of Key Portfolios Way Forward Company Financials
Slide 8: ABFRL Q2 Highlights
ABFRL Robust growth in tough Q2 Highlights market Impressive overall growth with strong LTLs across businesses Reaching newer markets Aggressive expansion in untapped markets New initiatives driving 14% portfolio expansion Strong growth across women’s western, kids wear, non apparels and ethnic wear
Slide 9: ABFRL | Q2 Highlights
ABFRL | Q2 Highlights Standalone Financials Q2 FY20 Q2 FY20 Q2 FY19 Growth (Ind AS (In Rs. Cr.) (Comp.) Adj.) Revenue 2007 2297 14% 2297 EBITDA 162 177 10% 362 EBITDA Margin 8.0% 7.7% 15.8% EBIT 92 111 20% 141 PBT 43 59 39% 36 PAT 43 30 7
Slide 10: ABFRL | H1 Highlights
ABFRL | H1 Highlights H1 FY20 Standalone Financials H1 FY20 H1 FY19 Growth (Ind AS (In Rs. Cr.) (Comp.) Adj.) Revenue 3921 4363 11% 4363 EBITDA 284 334 18% 694 EBITDA Margin 7.2% 7.6% 15.9% EBIT 142 208 46% 270 PBT 48 112 132% 71 PAT 48 70 28
Slide 11: Key segments | Q2 Highlights
Key segments | Q2 Highlights Standalone Financials NSV EBITDA EBITDA % Q2 FY20 Growth Q2 FY20 ( In Rs. Cr.) Q2 FY19 Q2 FY20 Growth Q2 FY19 Q2 FY19 (Comp.) (Comp.) (Comp.) Madura Lifestyle Brands 1090 1254 15% 140 158 12% 12.9% 12.6% Fast Fashion 88 75 -15% -10 0 -11.1% -0.3% Other Businesses * 84 13
Slide 12: Key segments | H1 Highlights
Key segments | H1 Highlights Standalone Financials NSV EBITDA EBITDA % H1 FY20 Growth H1 FY20 ( In Rs. Cr.) H1 FY19 H1 FY20 Growth H1 FY19 H1 FY19 (Comp.) (Comp.) (Comp.) Madura Lifestyle Brands 2035 2259 11% 218 252 16% 10.7% 11.1% Fast Fashion 177 155 -12% -15 -9 -8.7% -5.8% Other Businesses * 155
Slide 13: Performance of Key Portfolios
Distribution Network Market Update Performance Q2 FY20 Highlights of Key Performance of Key Portfolios Portfolios Way Forward Company Financials
Slide 14: Lifestyle Brands, Pantaloons, Fast Fashion
Strong growth in a tough Lifestyle Brands market riding on network expansion and strong LTL Robust performance backed by product enrichment and impactful marketing campaigns Pantaloons Profitability improvement Fast Fashion measures driving turnaround Rapid growth through portfolio expansion Other B
Slide 15: Lifestyle Brands
Lifestyle Brands
Slide 16: Lifestyle Brands
Lifestyle Brands Resilient growth story — 15% growth in sales in tough market; EBITDA grew by 12% — Continued strong LTL trajectory; @ 7% this quarter Retail Network — Digital Trade Show (DTS) successfully launched Area — all geared up for 12 season cycle (,000 sq. ft.) 2476 2666 Q2 FY19 Q2 FY20 — N
Slide 17: Channel-wise Revenue (in Rs. Cr.)
Channel-wise Revenue (in Rs. Cr.) Channel-wise Revenue (in Rs. Cr.) Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 Wholesale 518 595 Wholesale 872 944 Retail 354 404 Retail 764 854 Others 218 255 Others 399 462 Q2 FY20 170 Q2 FY19 137 50% of revenues from loyal customers
Slide 18: Performance of Key Portfolios
Performance Key Portioliosg
Slide 19: Defying slowdown
Defying slowdown — Strong double digit sales growth (16%) with robust LTL of +10.4% — Best ever season sell through riding on superior products and improved freshness – instils confidence in our merchandise Retail Network strategy — 23% growth in EBITDA despite 34% higher marketing spends Area 3854
Slide 20: Q2 FY19 Q2
10% 12% 33% 37% Q2 Q2 FY19 FY19 20% 62% 5% 21% Men Women's Western Own Brands Women's Ethnic MFL Kids External Brands Non Apps 9% 13% 31% 36% Q2 Q2 20% FY20 FY20 62% 7% 22%
Slide 21: Q2 FY20 Q2 FY19 Q2 FY20
23% 27% Q2 FY20 166 24% 35% 32% Q2 FY19 126 23% Q2 FY20 Q2 FY19 *Pujo shifted to Q2 this year vs Q3 last year 17% 18% Madhya Pradesh (3% of sales) reclassified from North to West in FY20
Slide 22: Fast Fashion and Other Businesses
Fast Fashion and Other Businesses
Slide 23: Fast Fashion
Fast Fashion Turnaround efforts bearing fruits Operational Improvements — F21 Indian operations unaffected by their US restructuring — Local sourcing initiated — People transition into Pantaloons on track
Slide 24: Other Businesses
Other Businesses Portfolio expansion Innerwear Global Brands Continue to scale up rapidly - 67% growth in Q2 YoY Collective consistently posts very strong LTL (15% in Q2) Aggressive expansion continues, reaches 18000 doors Premium services (personalized selling, customized tailoring - M2M) giving pr
Slide 25: Ethnic Business
Ethnic Business Foray into new segment New Growth Platform set up for accelerating play in branded ethnic wear space
Slide 26: Way Forward
Distribution Network Market Update Q2 FY20 Way Highlights Performance Forward of Key Portfolios Way Forward Company Financials
Slide 27: Way Forward by business
Lifestyle Brands Pantaloons Fast Fashion Other Continue to drive growth Modernized brand imagery Turnaround on track Businesses through product innovation Growth led by portfolio and network expansion Accelerated network expansion expansion Drive margin improvement through enriched products
Slide 28: Company Financials
Distribution Network Market Update Q2 FY20 Company Highlights Performance Financials of Key Portfolios Way Forward Company Financials
Slide 29: Financials
Financials In Rs. Cr. Q2 FY19 Q2 FY20 H1 FY19 H1 FY20 In Rs. Cr. FY19 H1 FY20 Revenue from Operations 2,007 2,308 3,921 4,373 Networth 1,429 1,358 Other Income 19 17 27 34 Debt 1,703 2,324 Total Income 2,026 2,324 3,948 4,407 Lease Liability - 2,297 EXPENSES Capital Employed 3,132 5,979 Cost of Mate
Slide 30: Intimation of Schedule of Conference Call
Intimation of Schedule of Conference Call This is to inform that a conference call i.e. “Q2 FY 19-20 Earnings Call” with the Analysts/ Institutional Investors is scheduled to be held on Wednesday, November 13, 2019 at 15:30 HRS (IST) Date Wednesday, November 13, 2019 Time 15:30 HRS (IST) LOCATION AC
Slide 31: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements” including, but not limited to, those relating to general business plans & strategy of Aditya Birla Fashion and Retail Limited (“ABFRL"), its future outl
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