Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q4 FY19 Earnings Presentation
36 slides from Aditya Birla Fashion And Retail's earnings presentation, May 15, 2019
Slide 1: Outcome of Board Meeting cover letter
ADITYA BIRLA FASHION & RETAIL May 15, 2019 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal Street, Plot No. C-1, Block G, Bandra Kurla Complex, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Sub.: Outcome of the Meeting of the Board
Slide 2: /t� ��and pG
ADITYA BIRLA FASHION & RETAIL The same is available on the Company's website i.e. www.abfrl.com. Thanking you. Yours faithfully, Fo Fashion and Retail Limited /t� ��and pG Asst. Vice President & Company Secretary Encl.: As above Central Depository Services {India) National Securities Depository Limi
Slide 3: Performance Highlights Q4 FY19
Performance Highlights Q4 FY19
Slide 4: Distribution Network
Distribution Network Market Update Q4 Highlights Distribution Performance of Key Network Portfolios Way Forward Financials
Slide 5: Extensive distribution network
Extensive distribution network BRANDS 17 2,406 Stores 3 13 1 23 82 PANTALOONS 11 96 46 7 125 17 3 2 13 308 Stores 101 263 1 1 28 6 9 26 75 4 1 7 1 5 4 18,000* Multi-Brand Outlets ~ 85 24 55 10 49 5 79 34 7 3 1 24 67 6 5 5,077 SIS across all Dept. Stores 318 41 94 11 Available on all leading 7 1 306
Slide 6: Market Update
Distribution Network Market Update Q4 Highlights Market Performance of Key Update Portfolios Way Forward Financials
Slide 7: Market Update
MarketMarket UpdateUpdate Tepid market Challenging Automation E-com regains& Deeper Expansion conditions Newer market Digital Land categories Data analytics momentum post penetration into smaller conditions Slowdown in gaininggrab policy Enablingchange a novel way – way to go cities domestic economi
Slide 8: Q4 Highlights
Distribution Network Market Update Q4 Highlights Q4 Performance of Key Highlights Portfolios Way Forward Financials
Slide 9: ABFRL
Robust performance ABFRL Strong sales growth despite weaker market conditions Product innovation Growth driven by launch of new innovative products across brand portfolio Higher brand investment Intensified marketing investments, Rs. 54 Cr higher spends vs Q4 last year Newer segments scaling up Inne
Slide 10: ABFRL | Q4 Highlights
ABFRL | Q4 Highlights In Rs. Cr Q4 FY18 Q4 FY19 Growth Revenue 1754 1915 +9%^ Aggressive marketing led to EBITDA 174 149 -14% Rs. 54 Cr higher ad spend vs Q4 last year EBITDA Margin 9.9% 7.8% EBIT 87 76 -13% PBT 44 31 -31% PAT 113* 203* +79% *Includes deferred tax asset recognized – Rs. 194 Cr in FY
Slide 11: Key segments | Q4 Highlights
Key segments | Q4 Highlights NSV EBITDA EBITDA % In Rs. Cr Q4 FY18 Q4 FY19 Growth Q4 FY18 Q4 FY19 Growth Q4 FY18 Q4 FY19 Madura 1015 1132 12% 166 169 2% 16.3% 14.9% Lifestyle Brands Fast Fashion 81 80 -1% -5 -5 -5.8% -6.4% Other Businesses 65 107 65% -12 -24 -18.2% -22.2% Madura Segment 1161 1320 14
Slide 12: ABFRL | FY Highlights
ABFRL | FY Highlights Stellar Performance In Rs. Cr FY18 FY19 Growth Revenue 7181 8118 +13%^ Strong EBITDA growth EBITDA 501 619 +24% despite Rs. 112 Cr higher EBITDA Margin 7.0% 7.6% ad spend over last year EBIT 221 337 +53% PBT 49 149 +204% PAT 118* 321* +173% *Includes deferred tax asset recogniz
Slide 13: Key segments | FY Highlights
Key segments | FY Highlights NSV EBITDA EBITDA % In Rs.Cr FY18 FY19 Growth FY18 FY19 Growth FY18 FY19 Madura 3866 4304 11% 450 519 15% 11.7% 12.0% Lifestyle Brands Fast Fashion 398 358 -10% -53 -32 -13.4% -9.1% Other Businesses 205 369 80% -53 -85 -25.9% -23.0% Madura Segment 4469 5032 13%* 344 401
Slide 14: Performance of Key Portfolios
Distribution Network Market Update Q4 Highlights Performance of Performance of Key Key Portfolios Portfolios Way Forward Financials
Slide 15: Key portfolios | Highlights
Lifestyle Brands Pantaloons Strong growth and deeper Advanced EOSS brand investments impacted Q4 Key portfolios | Highlights Other Fast Fashion Businesses Persistent focus on improving business Continuing to Build scale model
Slide 16: Lifestyle Brands
Lifestyle Brands
Slide 17: Lifestyle Brands Q4 FY19: Robust growth
Lifestyle Brands Q4 FY19: Robust growth Revenue grew 12% from Rs. 1015 Cr in Q4 FY18 to Rs. 1132 Cr in Q4 FY19 — Highest ever Q4 sales driven by L2L of 6%; growth across channels with continued E-commerce growth (53% YoY) — Differentiated products propelled wedding range sales Retail Network Area (,
Slide 18: Lifestyle Brands FY19: Outstanding Performance
Lifestyle Brands FY19 : Outstanding Performance 11% growth in revenue from Rs. 3866 Cr in FY18 to Rs. 4304 Cr in FY19; full year LTL of 5.3% Growth fueled by — New store additions and ecommerce (up +44%) — Product innovation and expansion in newer categories EBITDA grew 15% (Rs.450 Cr in FY18 to Rs.
Slide 19: Lifestyle Brands channel-wise revenue
Lifestyle Brands Q4 FY Channel-wise Revenue (in Rs. Cr) Channel-wise Revenue (in Rs. Cr) Q4 FY18 Q4 FY19 FY18 FY19 Wholesale 458 493 Wholesale 1618 1782 Retail 392 430 Retail 1577 1690 Others 166 209 Others 671 832 Loyalty Base (lakhs) Q4FY19 150 Q4 FY18 118 53% of revenues from loyal customers
Slide 20: Slide 20
Slide 21: Pantaloons Q4 performance
Q4 performance Revenue growth of 4% (Ind AS adj.) ,LTL of -4.4% Sales growth impacted by — EOSS advancement to Q3 — Disruption in winter wear supply Retail Network EBITDA of Rs. 13 Cr (Rs. 27 Cr Q4FY18), declined due to Area 3764 4016 (,000 sq.ft.) — Higher marketing spends (~Rs. 5 Cr.) Q4 FY18 Q4 F
Slide 22: Pantaloons Strong FY19
Strong FY 19 Sales grew from Rs. 2862 Cr to Rs. 3194 Cr. (Up 15% (GST and Ind AS adj.), LTL of 1.4%) — Growth driven by significant improvement in product design and quality, improved assortment and better freshness — Added 40 new stores and launched pantaloons.com — Strong focus on contemporizing t
Slide 23: Category Mix Ownership Mix
Category Mix Ownership Mix 10% 12% 35% 36% Q4 Q4 FY18 FY18 58% 20% 23% 6% Men Women's Western Own Brands Women's Ethnic MFL Kids Others Non Apps 10% 13% 33% 36% Q4 Q4 FY19 FY19 61% 20% 6% 21%
Slide 24: Regional Mix
Regional Mix 31% Loyalty Base (lakhs) 33% 146 25% Q4 FY19 24% 24% 25% Q4 FY18 102 Q4 FY19 Q4 FY18 20% 18%
Slide 25: Fast Fashion & Others
Performance of key portfolios AMERICAN EAGLE
Slide 26: Fast Fashion: Consolidating play
Fast Fashion Consolidating play Business — Q4 Revenue and EBITDA remained flat on YoY basis Highlights — Continued calibration of Forever 21 business model — Course correcting merchandising strategy for Forever 21
Slide 27: Other Businesses: Aggressive Growth
Other Businesses Aggressive Growth Innerwear — Continued to scale up in Q4, Number of MBOs reached ~14000 — Revenue doubled in FY19 — Forayed successfully into women’s innerwear
Slide 28: Other Businesses: Portfolio of select global brands
Other Businesses Portfolio of select global brands — Steady growth in Q4, First Ralph Lauren store launched in Delhi Global Brands — Significant milestones crossed in FY19 – added PRL & RL to the portfolio — Ted Baker, American Eagle ramped up store additions — The Collective continued to post stron
Slide 29: Way Forward
Distribution Network Market Update Q4 Highlights Performance Way Forward of Key Portfolios Way Forward Financials
Slide 30: Lifestyle Brands
LIFESTYLE Continue to strengthen brand visibility through BRANDS strong campaigns Accelerate growth – expansion of retail network Agile & digital supply chain
Slide 31: Pantaloons
Further strengthen product design PANTALOONS Strengthen assortment and availability Accelerated growth – newer markets & franchisee led expansion Invest in contemporarizing the brand, new store identity Drive higher share of private label
Slide 32: Fast Fashion & Others
Innerwear : Further expand distribution network; roll-out Fast Fashion & Others Women's wear at pan-India level; launch EBOs Global brands : Strengthen portfolio for evolving Indian consumers F21 : Improve profitability by local sourcing PEOPLE brand to be transitioned as private label within Pantal
Slide 33: Financials
Distribution Network Market Update Q4 Highlights Performance Financials of Key Portfolios Way Forward Financials
Slide 34: Financials
Financials In Rs. Cr Q4 FY18 Q4 FY19 FY18 FY19 In Rs. Cr FY 18 FY19 Revenue from 1,754 1,915 7,181 8,118 Net Worth 1093 1429 Operations Debt 1861 1703 Other Income 11 24 33 65 Interest accrued but not due 164 239 Total Income 1,764 1,940 7,214 8,183 Capital Employed 3119 3371 EXPENSES Cost of Materi
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Slide 36: 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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