64 slides from Fsn E-commerce Ventures's shareholder meeting presentation, Sep 18, 2024
Slide 1: FSN E-Commerce Ventures Limited
FSN E-Commerce Ventures Limited September 18, 2024 National Stock Exchange of India Limited BSE Limited Symbol: NYKAA Scrip Code: 543384 Dear Sirs, Sub: Presentation made at 12th Annual General Meeting (AGM) of the Company With reference to the captioned subject, please find attached herewith copy o
Slide 2: Welcome to the 12th Annual General Meeting
NIKA WELCOME TO THE 12™ ANNUAL GENERAL MEETING FSN E-Commerce Ventures Limited September 18, 2024, 3.30 PM
Slide 3: Table of Contents
Table of Contents 1 Overview 2 Beauty Multi Brand Retail 3 Nykaa’s House of Brands 4 eB2B: Superstore by Nykaa 5 Fashion 6 ESG 7 Industry Outlook 2
Slide 4: FY2024: Strong growth with improved profitability
FY2024: Strong growth with improved profitability Rs 12,446 Crs Rs 6,386 Crs 5.4% GMV Revenue EBITDA Margin 28% 50% 24% 42% 44 bps 330 bps YoY 5-yr CAGR YoY 5-yr CAGR YoY 5-yr 3
Slide 5: Nykaa: India's preferred beauty and fashion retailer
Nykaa: India’s preferred beauty and fashion retailer 30%+ Online Market Share In Beauty 1.7 bn+ 33 mn 15 mn+ Annual Visits Cumulative Annual Transacting Customer Base Customers 15-18% Online Premium Market Share In ~17 mn 200 6,700+ Fashion Social Followers Beauty Stores Brands $ 1.6 bn Consolidated
Slide 6: Nykaa has been at the heart of millions of beauty journeys
Nykaa has been at the heart of millions of beauty journeys
Slide 7: Diversification to address larger TAM in India
Diversification to address larger TAM in India FY2018 FY2021 FY2024 Consolidated GMV mix Beauty Fashion 27% 16% 73% 84% 100% TAM $12 bn $60 bn $114 bn $13 bn $47 bn $21 bn $93 bn [Beauty] [Fashion] [Beauty] [Fashion] Total addressable market (TAM) reaching over $200 bn+ by 2028 Beauty includes Nykaa
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Slide 9: Beauty crosses $1 bn GMV
Beauty crosses $1 bn GMV % YoY growth GMV (Rs Crs) 1.1 bn+ Visits in the year** 54% 36% 51% 38% 28% 9,054 5-year GMV CAGR 7,058 25 mn Cumulative customer base* 41% 5,100 3,380 12 mn+ Annual unique transacting customers ** 2,490 1,621 FY19 FY20 FY21 Nykaa’s IPO FY22 FY23 FY24 ~44 mn Omnichannel order
Slide 10: Key Exclusive Global brand Launches in the year
Key Exclusive Global brand Launches in the year… Fenty Beauty Urban Decay Colourpop #1 Global Celebrity brand Iconic Cosmetic brand from US LA Based global makeup bestseller Elemis Redken Uriage CeraVe International dermat UK’s #1 skincare brand Global Hair care US based derma skincare bestseller 9
Slide 11: More key launches in the year
… more key launches in the year Lancome Novology Foxtale Virtue Natasha Moor Formula 10.0.6 Lamel 10
Slide 12: Achieved 200 stores milestone in Jul'24
India’s largest specialized beauty retail network Achieved 200 stores milestone in Jul’24 Store Count 187 145 104 67 72 First physical store launch in Delhi FY15 FY20 FY21 FY22 FY23 FY24 Strong presence across 72 cities 1.9 L sq. ft Total Area (as on Jul’24) (as on Jul’24) [doubled in last 2 years]
Slide 13: Many more to come
Launch of new flagship luxury format Destination store for immersive beauty experience Launched in Linking road and Breach Candy, Mumbai Many more to come… 12
Slide 14: Nykaa Luxe: Delivering a truly luxury omnichannel retail experience
Nykaa Luxe: Delivering a truly luxury omnichannel retail experience Online Luxe Store 200 beauty retail in 72 cities 160 brands serviced 13
Slide 15: Paving the way for the future of beauty retail in India
Paving the way for the future of beauty retail in India Education through Elevated Brand Expression Experiential zones Events • Shop-in-shops and personalized spaces • Services-in-store: Skin Analyzer Tool, Aveda Dry Bar and • Beauty Bars and for brands to curate and display their Dyson Hairstyling,
Slide 16: Nykaaland 2023: India's Biggest Beauty Festival
Nykaaland 2023: India’s Biggest Beauty Festival Overwhelming response from brands and customers alike 80+ 15,000+ Global & local Attendees brands 12 Masterclasses 5,000 Packed participants Audience Celebrities Attendee Katrina Kaif, Jahnvi Kapoor, Masaba, Kriti Sanon, Jim Sarbh, Nushrratt Bharuccha
Slide 17: Getting closer to the customers to drive delight in delivery
Getting closer to the customers to drive delight in delivery Warehouses* (#) 44 Orders (mn) Order to delivery (days) 18 44 FY21 FY24 4.0 Increased to 2.4x in 3 years 2.3 17 Capacity (mn sq. ft.) 1.5 FY21 FY24 FY21 FY24 0.6 Increased to 2.6x in 3 years Reduced by 45% in 3 years FY21 FY24 Increased to
Slide 18: Introducing Same day/Next day delivery proposition
Introducing Same day/Next day delivery proposition Same Day Delivery (SDD) Next Day Delivery (NDD) Applicable for orders placed by Applicable for orders placed by customers before 12 PM on the customers after 12 PM, order same day fulfilled by next day % of order volume covered Current Coverage thro
Slide 19: House of Brands
*'S House of Brands
Slide 20: Consumer brands portfolio – across categories and scale
Consumer brands portfolio – across categories and scale BEAUTY FASHION ** ~Rs 600 Crs* Rs 300 Crs+* ** Rs 150 Crs+* ** ** Rs 20 Crs+* Nascent brands ** * Annualized GMV run rate 19 ** Acquired brands
Slide 21: House of Brands
NC PLACEHOLDER House of Brands 20
Slide 22: Beauty Owned Brands: Nykaa cosmetics
Beauty Owned Brands: Nykaa cosmetics Functionality meets Trend leading innovations playfulness High quality makeup curated for the Indian consumer SOLD OUT in 1 week – big hype on trendy products Award winning makeup – voted #1 by consumers High performance makeup that lives Innovative formats – PH
Slide 23: House of Brands
House of Brands 22
Slide 24: Beauty Owned Brands: Kay Beauty
Beauty Owned Brands: Kay Beauty Trends that change the High performance makeup beauty landscape Long-wear makeup that is premiumising the Indian beauty buyers Liquid Luminizer Hydra Crème lipstick Record breaking launch Makeup that Cares: Skincare infused makeup with high performance Plumping gloss
Slide 25: Beauty Owned Brands: Wanderlust
Beauty Owned Brands: Wanderlust Premiumising body care Travel inspired launches High quality bath & body care range Scents that transport you to luxurious vacation Transforming the positioning with revamped packaging and offerings 24
Slide 26: House of Brands
House of Brands 25
Slide 27: Nykaa expands its stake in Dot & Key to 90%
Nykaa expands its stake in Dot & key to 90% Brand Overview Investment Update Differentiated skincare solutions that are • FSN E-commerce Ventures Limited acquired 51% effective, safe, and fun to use stake in Dot & Key in September 2021 • FSN E-commerce Ventures Limited is acquiring an additional 39%
Slide 28: House of Brands
House of Brands 27
Slide 29: Nykaa to acquire majority stake in Earth Rhythm
Nykaa to acquire majority stake in Earth Rhythm Brand Overview Investment Update D2C new age brand specializing in skincare, makeup, haircare and bath and body products • Acquired 18.57% stake in Earth Rhythm in April 2022 • FSN E-commerce Ventures Limited is now making further investment in Earth R
Slide 30: Strengthening our lingerie and activewear positioning
Strengthening our lingerie and activewear positioning 29
Slide 31: National brand Nykd, with strong consumer connect and innovation
National brand “Nykd”, with strong consumer connect and innovation GMV (Rs Crs) Simplifying lingerie for Indian women 166 5x 147 85 30 FY22 FY23 FY24 Q4FY24 Annualized Achieved the scale of Rs 100 Crs+ in less than 3 years, which took other national brands 7 -10 years Profitable since #1 Top 3 17 1,
Slide 32: Owned brands offering across categories - Indianwear
Owned brands offering across categories - Indianwear 31
Slide 33: Owned brands offering across categories – Western wear and Accessories
Owned brands offering across categories – Western wear and Accessories 32
Slide 34: Serving the Underserved via Technology
Brand/ Retailer Manufacturer Focus on BPC & Focus on Underserved Wellness Retailers i.e. Beauty centre, pharmacy Serving the Underserved via Technology 33
Slide 35: Helping grow the entire Beauty ecosystem
Helping grow the entire Beauty ecosystem Brand Partners Retailers Democratize access to distribution for Access to wider D2C/independent brands assortment and premium/D2C brands Ability to distribute premium and evolved products Help build high margin beauty business for retailers Nykaa can provide
Slide 36: Proven product market fit with rapid scale
Proven product market fit with rapid scale Transacting Retailers (‘000) 79% 2 yr CAGR: 222% 195 GMV (Rs Crs) 109 84% 19 2 yr CAGR: 366% 597 FY22 FY23 FY24 + 325 Orders (‘000) 71% 2 yr CAGR: 406% 1,244 28 729 FY22 FY23 FY24 49 FY22 FY23 FY24 % YoY growth 35
Slide 37: EBITDA Margin improvement of 2,200 bps YoY
Sales mix, scale and efficiencies leading to margin and unit economics improvement Fulfilment expense* S&D expense* Other expenses** 566 bps 676 bps 1,291 bps FY23 FY24 FY23 FY24 FY23 FY24 Driven by scale-based efficiency, Driven by higher BDE productivity Driven by scale efficiencies regionalizatio
Slide 38: Fashion
NIA FASHION 37
Slide 39: Fashion business has scaled rapidly in the last years
Fashion business has scaled rapidly in the last 5 years % YoY growth GMV (Rs Crs) 570 mn+ Visits in the year** 563% 256% 175% 46% 26% 3,385 5-year GMV CAGR 6 mn Cumulative customer base* 161% 2,681 1,832 3 mn Annual unique transacting customers** 666 28 187 Rs 4,300+ FY19 FY20 FY21 FY22 FY23 FY24 AO
Slide 40: Nykaa Fashion - 2nd platform of choice among India consumers
Nykaa Fashion - 2nd platform of choice among India consumer within 4 yrs of launch 2nd platform of choice among consumer for online fashion #1 platform of choice for latest trends/style 47% 36% 30% 22% 23% 20% 12% 10% Competition A Nykaa Fashion Competition B Others Competition A Nykaa Fashion Compe
Slide 41: Strengthening assortment across key propositions
Strengthening assortment across key propositions Global Store Hidden Gems First in Fashion Latest and the hottest trend in western wear 51% GMV YoY [FY24] 31% GMV YoY [FY24] 24% GMV contribution [FY24] 650+ Brands* 54% GMV YoY [FY24] 300+ 1,200+ Brands* Brands* Latest and Niche curated homegrown fas
Slide 42: Foot Locker x Nykaa Fashion - Exclusive Online Partnership
Big Win: Foot Locker x Nykaa Fashion - Exclusive Online Partnership Nykaa Fashion will serve as the exclusive e-commerce partner Plan to launch Foot Locker's India website and Foot Locker Shop-in-Shop on Nykaa Offering will include Footwear, Apparel, and Accessories x Strengthens Nykaa’s position as
Slide 43: EBITDA Margin improvement of 646 bps YoY
Operating leverage driving significant expansion of ~650 bps in profitability Fulfilment expenses* Marketing expenses* Other expenses** 11.9% 28.1% 19.2% 11.1% 25.8% 16.6% FY23 FY24 FY23 FY24 FY23 FY24 Reduction in leakages Better mix of repeat customers, and Scale efficiencies improved order to vis
Slide 44: Technology
Technology 43
Slide 45: Ad-tech service for every Brand objective
Ad-tech service for every Brand objective Awareness Consideration Conversion Homepage Category Display Product Listing Display Ads Ads Ads • Maximize Visibility • Target “In Market” • Drive & Frequency Customers Consideration to Conversion • Build Brand • Enhance Category Recall, Launch Share For Br
Slide 46: Machine Learning driven Ad selection capabilities
Machine Learning driven developed Ad selection capabilities Self Service for Retina Brand Partners Using Real time data such as - User Persona, Intent Engagement, Click Behaviour, Ad Setup Revenue Data and more Content Management serums Audience & Keyword Ad Optimization ML Models AD Targeting Budge
Slide 47: Improving power of discovery through Generative AI
Improving power of discovery through Generative AI Latest Trend Reviews & Ratings Pair it With Identification Leveraging Generative AI (text Analyse latest trends from and image) to identify products to Instagram, vlogs, magazines go with an anchor product etc to extract fashion trends Pairing Sugge
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Slide 49: Nykaa Values
Nykaa Values 48
Slide 50: Strong relationship with the lifestyle ecosystem
Strong relationship with the lifestyle ecosystem Deep relationship with 6,700+ global and domestic brands Widespread supply chain with 17,500+ suppliers Direct employment generation of 11,500+ Network of 6,000+ influencers Fostering symbiotic alliance with 3,800+ MSME vendors Supporting 93K+ beauty
Slide 51: Nykaa 10x10 initiatives
Nykaa 10x10 initiatives Zero Paper 85% Sustainable 100% Reuse of 407 tonnes Utilization packaging Corrugated boxes Plastic waste recycled [Shift to paper packaging, corrugated for order processing across all PL - Warehouses [Achieved our EPR target for boxes, recyclable plastic] the year] Nykaa rece
Slide 52: 1 Mn+ brand boxes reused
Nykaa 10x10 Initiatives Sustainable Packaging Practices ➢ Reuse of Brand Boxes for packing orders Reuse of Brand Boxes Conversion into Hexcush 1 Mn+ brand boxes reused in FY24 ➢ Reuse of delivery materials received in RTO ➢ Conversion of damaged boxes into Hexcush 51
Slide 53: Promoting a Diverse and Inclusive Workforce
Promoting a Diverse and Inclusive Workforce Young Organization Gender Balanced 78% employee 43% Below age 35 yrs Women employee 60% Nykaa leadership 32% Nykaa leadership Under age 40 are women Gender Pay Parity across functions and levels RECOGNITION Recognized by The Ranked among Top 15 Economic Ti
Slide 54: Nykaa Foundation: Our CSR arm focused on empowerment
Nykaa Foundation: Our CSR arm focused on empowerment Transforming Education Transforming Lives ~20,000 800 Students benefitted Women trained Partnered with Sambhav Partnered with Foundation for Rangeet, to launch Labournet program, an app-based helping marginalized learning program young women becom
Slide 55: Nykaa Foundation: Our CSR arm focused on empowerment
Nykaa Foundation: Our CSR arm focused on empowerment Focus on children’s health Uplifting women Kay Beauty partnered Collaborated with with Daniel Bauer Anushkaa Academy to provide Foundation, to young women training enable the skilling of to become professional doctors in treating makeup artists an
Slide 56: Industry Outlook
Industry Outlook 55
Slide 57: Significant headroom for E-commerce penetration in comparison to China
Significant headroom for E-commerce penetration in comparison to China 800 mn Active internet users 350 mn+ Digital payment users 230 mn Online shoppers E-commerce penetration headroom (2023) Online shoppers (2023) – as % of internet users as % of total retail 35% - 37% 70%+ 15-19% 30% India China I
Slide 58: India BPC, a $90 bn opportunity in the next decade
Nykaa leading with market creation - India BPC, a $90 bn opportunity in the next decade India BPC Market Size ($ bn) India Consumer consumption shift 11% CAGR from personal care to Beauty 90 2022 – 2037 CAGR (%) 5x 19 - 20% $40 bn online Online 15 yr CAGR Skincare 20% Color Cosmetics 16% Beauty 9% C
Slide 59: India is headed on China's trajectory
Key drivers of premiumization & ecommerce to transform the BPC industry BPC e-commerce penetration - India India is headed on China’s trajectory – India today resembles China from 2007 8% 17% 45% 44% 2020 2022 2037 2023 Year 2007 2023 2023 China Country China India China GDP per capita ($) 2,700 2,7
Slide 60: India online fashion is a $50 bn opportunity
India online fashion is a $50 bn opportunity India Fashion Market Size ($ bn) India online premium fashion market ($ bn) ~11% CAGR 200 10.0 50 4.6 93 14 ~20% CAGR of Online 150 2.9 20 - 25% CAGR 5.4 79 1.3 1.6 2023 2030 2023 2030 Offline Online Men Women Premium fashion market in India is expected t
Slide 61: KIOSK
Beauty Boot MARAED By NYKAA THE LUXURY STORE NWikAfontreno LUXE EDIT Eelobalstore FASHION [ain oe pre Ni RES oe SIBLE privé collection
Slide 62: Thank You
NiIKA THANK YOU
Slide 63: Glossary
Glossary Term Description EBITDA is a non-GAAP financial measure. EBITDA refers to our profit/(loss) before Tax for the period, as adjusted to exclude (i) Other Income, (ii) Depreciation and EBITDA Amortization Expenses, (iii) Finance Costs. EBITDA Margin refers to the percentage margin derived by d
Slide 64: Disclaimer
Disclaimer By attending the presentation or by reading the presentation slides you agree to be bound as follows: This Presentation is prepared by FSN E-Commerce Ventures Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of