Slide 1: Cover letter to stock exchanges: Investor Presentation
)' FUTU RE FUTU HE CONSUM ER Ll M ITED (Fannerfy Future Consumer Enterprise Limited) c0NSUMER 5 Corporate flflice : 247 Park. Tower ““,0 Bth Floor, LBS Marg, Uikhroli (W), Mumbai - 400 083 6:? (T) +91 22 5119 0000 | www.futurecnnsumer.in " Regfl. Office: Knowledge House. Shyam Nagar, Off JVLR, Jogeshwa
Slide 2: New Recipe of Consumer Delight - FMCG 2.0
NEW RECIPE OF CONSUMER DELIGHT FMCG 2.0 FUTURE CONSUMER LIMITED Investor Update | Q3 FY20 / 9M FY20
Slide 3: Safe Harbour Statement
Safe Harbour Statement This investor presentation has been prepared by Future Consumer Limited (“FCL”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or su
Slide 4: : . DESI ATTA ]
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Slide 5: Table of Contents
TABLE OF CONTENTS JOURNEY FROM GOOD TO GREAT 05 BUSINESS UPDATE 09 FINANCIAL OVERVIEW 16
Slide 6: Journey from Good to Great Continues
JOURNEY FROM GOOD TO GREAT CONTINUES…. FOCUS IS ON GOOD GROWTH, ✓ “PROFITABLE” AND “SUSTAINABLE” QUALITY GROWTH ✓ FREE CASH FLOW GENERATION ✓ RETURN ENHANCEMENT Previous 5 Next
Slide 7: Journey from Good to Great
Journey from “Good to Great” Key Pillars for FMCG 2.0 Multiple Categories Data Science Integrated Value-chain Digital Distribution Network Brands span across food, Data that drives (almost) Ownership of the entire value Modern retail and digital home care, personal care, and every decision and strat
Slide 8: Key Levers Driving Profitability and Return Enhancement
Key Levers Driving Profitability and Return Enhancement Right Portfolio Sourcing Costs JV Scale Sizing of Correction Efficiencies Leadership Up Balance Sheet • Premiumization of • Consolidation of • Supply chain • Cautious Capital portfolio and mix vendor and • Key JVs viz. Fonterra reorganization t
Slide 9: How are we Building Efficiencies?
How are we Building Efficiencies ? Pillar Principles ▪ Strategizing on entering new categories, where we have a distinct FMCG 2.0 voice and a right to win ▪ Creation of New SKUs basis data driven algorithms driven by FCL, Channel and 1 Creation customer priorities ▪ Value Reengineering and Simpler p
Slide 10: Q3 FY20 and 9M FY20: Key Highlights
Q3 FY20 and 9M FY20: Key Highlights Debt - Achieved gross debt reduction of ₹696mn Reduction - Generated positive cash flow post operations and investment of Free ₹654mn Cash Flow - Achieved release of ₹315mn working capital during the quarter - Crossed ₹1bn EBITDA during 9M FY20 EBITDA - Achieved E
Slide 11: 9M FY20: Key Brands Continue to Gain Scale
9M FY20: Key Brands Continue to Gain Scale ₹1,697mn ₹1,773mn ₹9,444mn ↑57% ↑21% ₹617mn ₹ 137mn ₹280mn ↑14% FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q3 FY20 Previous 10 Next
Slide 12: Business Update
BUSINESS UPDATE Previous 11 Next
Slide 13: Continue to Focus on Mainstream Categories
Continue to Focus on Mainstream Categories FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q3 FY20 Previous 12 Next
Slide 14: Announcement of Online Distribution Tie-up with Amazon
Announcement of Online Distribution Tie-up with Amazon 1st phase of collaboration • Understanding the language of online distribution • Optimizing presence and organizing the supply chain • Preparing for full scale roll-out across key brands leveraging the platform Leading Brands Sold FUTURE CONSUME
Slide 15: Developing the Online Distribution with Amazon
Developing the Online Distribution with Amazon • Initiated implementation of online distribution tie-up with Amazon for FCL’s portfolio of brands • Largely offline presence of FCL will now extend to millions of customers of Amazon India’s marketplace • Both the teams to work closely to develop marke
Slide 16: Visibility across Brands on Prime Now Platform
Visibility across Brands on Prime Now Platform with 2 Hours Delivery FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q3 FY20 Previous 15 Next
Slide 17: Financial Overview
FINANCIAL OVERVIEW Previous 16 Next
Slide 18: 9M FY20 – Revenue Mix
9M FY20 – Revenue Mix Particulars Revenue (₹ in Mn) Growth Key Takeaways Center of Plate 14,913 3% − COP Foods with ₹2.7bn revenues continues to exhibit strong traction with 48% growth YoY Processed Foods 3,779 0.9x − Strong secondary sales growth of 19% on YoY basis Home & Personal Care 1,979 0% −
Slide 19: Base Effect and Portfolio Rationalization Impacting Sales
Base Effect and Portfolio Rationalization Initiatives Impacting Sales, Underlying Secondary Sales Growth Continues to Remain Strong Base Effect: >400mn - Q3 FY19 included a base of ₹395mn in revenues due to 203 SKU launches Portfolio Rationalization: - Focus on core brands and categories ~ 649 mn -
Slide 20: Revenue Share across Distribution Channels
Revenue Share across Distribution Channels LARGE FORMAT CONTINUES TO DOMINATE THE SALES MIX 23% Channel Wise Sales Mix 9M FY20 Large Format Stores 48% 7% Small Format Stores Rural Distribution GT/Institutional/Others 22% FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q3 FY20 Previous 19 Next
Slide 21: Focus on Sustainable Growth and Profitability Turnaround
Focus on Sustainable Growth and Profitability Turnaround Revenue CAGR of 19% EBITDA CAGR of 82% 400 4.0% 373 4.5 % 4.0 % 350 300 2.9% 3.5 % 9,912 9,240 250 2.3% 3.0 % 7,847 200 291 2.5 % 5,516 1.1% 2.0 % 150 178 1.5 % 100 1.0 % 50 62 0.5 % 0 0.0 % Q3 FY17 Q3 FY18 Q3 FY19 Q3 FY20 Q3 FY17 Q3 FY18 Q3 F
Slide 22: Geared to Achieve Higher Returns
Geared to Achieve Higher Returns (₹ in Mn, Unless specified otherwise ) Net Working Capital (Days) Net Fixed Asset Turnover (x) 6 6 5 49 51 58 FY 18 FY19 Q3 FY20 FY 18 FY19 Q3 FY20 ROCE (%), Adjusted ROCE (%) Net Debt to Equity (x) 5.1% 0.75 4.1% 5.0% 3.8% 0.57 0.47 1.6% 1.4% FY 18 FY19 Q3 FY20 ROCE
Slide 23: Significant Improvement in Standalone Profitability Metrics
Significant Improvement in Standalone Profitability Metrices Profit & Loss A/C (Standalone ) (₹ in Mn, Unless specified otherwise ) Q3 FY20 vs Q3 FY19: Particulars Q3 FY20 Q2 FY20 Q3 FY19 9MFY20 9MFY19 FY19 − ~150bps expansion in gross margins Total Income from Operations 6,753 8,780 7,554 23,377 22
Slide 24: Consistently Trading the Path towards Profitability
Consistently Trading the Path towards Profitability Profit & Loss A/C (Consolidated ) (₹ in Mn, Unless specified otherwise ) Particulars Q3 FY20 Q2 FY20 Q3 FY19 9MFY20 9MFY19 FY19 Q3 FY20 vs Q3 FY19: − EBITDA jumps 28% as margins cross 4% Total Income from Operations 9,240 11,208 9,912 30,933 28,433
Slide 25: PAT Bridge – Q3 FY20 Standalone to Consolidated
PAT Bridge – Q3 FY20 Standalone to Q3 FY20 Consolidated (₹ in Mn, Unless specified otherwise ) -29 -92 -112 -90 148 -176 -63 -20 20 -90 Standalone PAT (-) Loss from (-) Loss from (-) Loss from Hain (-) Other JVs and Consolidated PAT Subsidiaries Fonterra Other Impacts FUTURE CONSUMER LIMITED | INVES
Slide 26: Impact of IND AS 116 Accounting (Blended Approach)
Impact of IND AS 116 Accounting (Blended Approach) Consolidated Standalone Particulars Q3 FY20 IND AS 116 Q3 FY20 Q3 FY20 IND AS 116 Q3 FY20 Comparable Adjustment Reported Comparable Adjustment Reported Revenue from Operations 9,240 - 9,240 6,753 - 6,753 Other Income 27 +1 28 30 - 30 COGS -8,008 - -
Slide 27: Capitalization of Balance Sheet Leading to Improvement in Leverage Ratios
Capitalization of Balance Sheet Leading to Improvement in Leverage Ratios Balance Sheet (Consolidated ) (₹ in Mn, Unless specified otherwise ) As on − During Q3 FY20, achieved net Particulars working capital release of ₹315mn 31-Dec-19 30-Sep-19 31-Mar-19 − Net Debt Reduction in Q3 ₹415mn Shareholde
Slide 28: Shareholder Information
Shareholder Information Stock Data (As on 30tTH JAN 2020) Shareholding Pattern (%) (As on 31st December 2019) Market Capitalization (₹) 44,858 Mn Shares Outstanding ~192 Mn Free Float 55% 35.64% 45.27% Symbol (NSE/ BSE) FCONSUMER / 533400 Particulars Oct-19 Nov-19 Dec-19 Volume in mn 11 15 12 19.09%
Slide 29: Thank You
Thank You Corporate Office: Future Consumer Limited Embassy 247, Tower ‘C’, LBS Marg, Vikhroli (West), Mumbai 400 083 Tel: +91 22 6119 0000 Registered Office: Future Consumer Limited Knowledge House, Shyam Nagar Off JVLR, Jogeshwari(East), Mumbai 400 060 Tel: +91 22 6644 2200 Web: www.futureconsumer