Spencer's Retail Ltd. · NSE:SPENCERS
Spencer's Retail — Investor Presentation (February 2021)
46 slides from Spencer's Retail's investor presentation, February 2021
Slide 1: Spencer's Retail Limited Business Overview
Spencer's Retail Limited Business Overview
Slide 2: Disclaimer
Disclaimer This presentation is issued by Spencer's Retail Limited (the "Company") for general information purposes only, without regard to specific objectives, suitability, financial situations and needs of any particular person. This presentation does not constitute or form part of any offer or in
Slide 3: Organized Retail opportunity in India
Organized Retail opportunity in India #3
Slide 4: Organized Retail Share growing at CAGR ~18%
Organized Retail Share growing at CAGR ~18% Organised Retail growing faster than Moving Towards OMNI Channel Overall Retail Growth 6.3 8.7 5.5 0.2 7.4 4.8 0.2 6.4 4.1 3.5 0.1 5.2 3.1 0.1 4.3 3.8 0.1 2.2 0.1 1.7 1.4 1.1 0.6 0.8 42.9 48.6 52.7 58.8 64.0 70.6 FY16 FY17 FY18 FY19 FY20* FY21* FY16 FY17 F
Slide 5: Spencer's presence across segments in Organized Retail
Spencer’s presence across segments in Organized Retail Spencer’s Retail Limited is present across ~72% segment share of organised Retail Segment Share of Revenue Market Penetration Others ~26% Food & Grocery ~19% ~4% Books & Apparel ~23% ~25% Music ~1% ~72% Consumer Durables, Mobile & IT ~24% ~26% P
Slide 6: Contents
Contents Company Snapshot Key Differentiators Annexures #6
Slide 7: Contents
Contents Company Snapshot Key Differentiators Annexures #7
Slide 8: RP- Sanjiv Goenka Group
RP- Sanjiv Goenka Group Diversified Business House FY20 Operating Power utility company engaged in coal mining, Revenue in INR (Cr) generation and distribution of electricity 3243 Amongst top 3 BPO players in India 939 Largest Indian & 7th largest global carbon black manufacturer 2640 India's premie
Slide 9: Spencer's Retail: Evolution of the Business
Spencer's Retail: Evolution of the Business 2006-2009: Spencer's brand 2010 -2016: Consolidation by 2017 onwards: 1989-2005: Introduced Modern launch and rapid shutting down non-performing Focus on Retail to India expansion stores profitable growth RPG 1st hypermarket Change in brand Change
Slide 10: Spencer's Positioned as a Holistic grocery shopping environment
Spencer's Positioned as a Holistic grocery shopping environment though its wide & unique range of products Differentiated Fresh Section Unique Fish & Meat offerings One-stop destination for multi- cuisine cooking needs. Experiential Shopping & Preferred destination Wide range of assortments smooth c
Slide 11: Business Snapshot: Consolidated
Business Snapshot: Consolidated Scale Efficiency ₹ 1,836 Cr. ₹ 2,640 Cr. >30% >35% YTD FY21 YTD FY21 FY20 Revenue FY20 Operating Revenue from Operating from Non-Food Revenue Non-Food Revenue Categories* Categories* 7 ~ 0.76 lac sq. ft. 20.2% 21.5% # of New Stores Trading Area FY20 YTD FY21 opened du
Slide 12: Contents
Contents Company Snapshot Key Differentiators Annexures #12
Slide 13: Key Strategic Pillars
Key Strategic Pillars Profitable Growth in chosen Geographies Optimal Product Mix ~ Increasing share of High Margin Categories Differentiated and Diversified Private Brand Program Targeting a Well-Defined Customer-Base ~ Diverse and Differentiated Product Offerings & Superior Customer Experience Eff
Slide 14: Expanding in Chosen Profitable Geographies with Natures Basket acquisition
Expanding in Chosen Profitable Geographies with Natures Basket acquisition Acquired Natures Basket limited, which Spencer’s + Natures gave us access to the attractive western Profitable Growth India market. Basket Presence High potential region of Maharashtra with NORTH ~15% of India’s GDP Optim
Slide 15: Profitable Growth in Chosen Geographies
Profitable Growth in Chosen Geographies Spencer’s and Natures Basket Spencer’s + Natures Profitable Growth limited has strong presence in high Basket Presence growth territories NORTH 47 Stores Leveraging Stores of Spencer’s Optimal Mix with Natures Basket Store presence and vice versa Private B
Slide 16: Spencer's & Natures Basket – Optimal Mix
Spencer's & Natures Basket – Optimal Mix Profitable Growth # of # of Cities Average Revenue Typical Mix of Key Differentiators Stores Present in Store Area Share Assortment Optimal Mix 34 Destination & Convenience format % Spencer's Offers all categories including non-food 66 such as apparel, ge
Slide 17: Led by Large Format Stores to drive profitability and improve margins
Spencer's Retail Led by Large Format Stores to drive profitability and improve margins Profitable Growth # of # of Cities Average Revenue Typical Mix of Key Differentiators Stores Present in Store Area Share Assortment Optimal Mix Destination format Large Format 30% Offers all categories includi
Slide 18: Operational Model
Operational Model Profitable Growth Capex Cost Revenue ₹1500 to ₹2000 ₹1000 to ₹2000 per sq.ft. sq.ft. per month Optimal Mix Store Size 5000- 25000 Private Brand sq.ft. Customer Base Store EBITDA margins 5% to 6% Operations Payback period of 3 to 5 years Omni-Channel #18
Slide 19: Well Differentiated and Diversified Private Brands
Well Differentiated and Diversified Private Brands Delighting customers with wide range of quality products through our own brands Profitable Growth Apparel Cognitive Optimal Mix Private Brand FMCG Excremental Customer Base GM Operations Routine E&E Omni-Channel Private Brands products have 5-10% hi
Slide 20: Targeting a Well-Defined Customer-Base
Targeting a Well-Defined Customer-Base… 2017 Profitable Growth 14% Share of Working Age The proportion of nuclear Population 19% Optimal Mix households has reached 70% 16% and is projected to increase to 25% 74% by 2025 50-64 28% Nuclear families spend 20% to 30% more 26% Years Private Brand 36-
Slide 21: Increasing Customer Stickiness
…. Increasing Customer Stickiness… Profitable Growth Consistent increase in Customer centric communication & share of wallet by leveraging precision targeting & personalisation through Optimal Mix CRM, Online, Digital & Social Media, WhatsApp outreach Private Brand Activities ensuring high cross sel
Slide 22: Spencer's - preferred destination for big retail days
Spencer's - preferred destination for big retail days Profitable Growth Optimal Mix Private Brand Customer Base Spencer's positioned as Operations retailer for all occasion Omni-Channel gifting #22
Slide 23: Efficient Operations
…. Efficient Operations Efficient In-store Management along with Centralized Control Ensuring Lean Cost Structure Profitable Growth In-store Management Supply Chain Efficiency Defined store work plan to ensure Lean cost structure with centralized replenishment control standardization across stores
Slide 24: Providing Shopping experience for every stage of digital maturity
Providing Shopping experience for every stage of digital maturity Serving customers by becoming a true OMNI Channel player by Profitable Growth providing superior shopping experience through digital transformation with varied assortment, differentiated offerings, tie- ups with partners for last mile
Slide 25: Spencer's - becoming a true OMNI Channel
Spencer's - becoming a true OMNI Channel Profitable Growth Being Part of Moving towards Community via OMNI Channel hyper local Optimal Mix Major shift of gear in direct to Direct Customers customer Connect channel Private Brand Customer Base Store as Hub Online-road to Contactless delivery ‘Out of S
Slide 26: Natures Basket - Initiatives
Natures Basket - Initiatives Showcase Natures Basket as a Profitable Growth Gifting Destination • Launch of The Gift Studio (TGS) Optimal Mix • Leveraging digital platforms Private Brand Customer Engagements Superior Convenience Customer Base & Outreach to customers • Loyalty • Delivery of entire ca
Slide 27: Our response to COVID
Our response to COVID Business 1. Ensured safe and hygiene environment for employees and customers 2. No Mask No Entry, Social distancing, Thermal screening & frequent Continuity sanitization OMNI Channel 1. Leveraged E commerce channel for ease ordering & wider reach Ecommerce 2. Store as a platfor
Slide 28: Embracing the new normal at our stores
Embracing the new normal at our stores Mandatory Face Mask & Thermal screening Deep Social cleaning & distancing frequent marks on disinfection ground Sanitizing Virtual basket, meetings trollies & prescribed Cash tills Contactles Store as a s delivery platform #28
Slide 29: Environment, Social and Governance
Environment, Social and Governance #29
Slide 30: ESG Concerns & Need in India
ESG CONCERNS & NEED IN INDIA ENVIRONMENTAL ISSUES SOCIAL ISSUES CORPORATE ISSUES • 17% Of World’s • India is still lagging Population Resides In • Poverty Is Nearly Affecting behind its developed India 18% Of Population market peers • India shares 2.4% of the • Complex Labour Law issues • Overseas c
Slide 31: ESG – Synonymous with Sustainability
ESG – Synonymous with Sustainability ENVIRONMENT SOCIAL GOVERNANCE (E) (S) (G) Duty Relationship Functioning of Towards With External the Business & The & Internal Conduct of the Planet Stakeholders Management #31
Slide 32: ESG Focus
ESG Focus Spencer’s have made extensive qualitative investments with an objective to enhance value for all stakeholders Enabling Governance Centric: Energy Environment: The Company invested in Conservation: The Company created an Governance centric company made a enabling environment initiativ
Slide 33: Environmental Empathy
ENVIRONMENTAL EMPATHY Waste Management Ecological Impact Company has stopped using Company has significantly single-use plastic and increased the share of electronic formulated a policy under EPR transactions vs physical paper to comply with Plastic waste based transactions management rules Company
Slide 34: Social Responsibility
SOCIAL RESPONSIBILITY Gender Data Women Equality Security Empowerment Company ensures its has Company encourages Company believes Robust systems and women employment & it in providing equal conducts various security has ~24% women opportunity to any checks on regular basis workforce. Promoting indiv
Slide 35: Social Responsibility
SOCIAL RESPONSIBILITY Human Rights Customer Satisfaction Customer Privacy Customer satisfaction We ensure that all Company believes is the utmost priority compliances on in providing equal for the company and customer privacy are opportunity to any keep on measuring it been adhered and individual wi
Slide 36: People & Culture
People & Culture Employee Safe & Capability Engagement centric Hygienic work building & & practices environment Support Development Leadership Training: Deep Cleaning & Train and Build Training: Focus on WFH & Office : Work Disinfection: Leaders of Tomorrow Functional & from home & Office Fr
Slide 37: People & Culture
People & Culture…… Women Safety and Customer Empowerment Satisfaction Happy to serve the Nation during challenging times #37
Slide 38: People & Culture
People & Culture…… Celebrating the Retail Employee Day Best in class practices followed #38
Slide 39: Corporate Governance
CORPORATE GOVERNANCE Ethical Efficient Strong Internal Practices Management Controls The company has a The Company has efficient management The Audit committee code of conduct; it has and has strong Board comprises of 4 non- prescribed guidelines structure with executive directors out & processes fo
Slide 40: Corporate Governance
Corporate Governance Diverse Board Management Team Balanced mix of independent and professional directors Continuous review of performance of Board is guided by the following committees management team and guidance by Board to ─ Audit Committee with majority independent directors ensure improv
Slide 41: Management Team
Management Team Shashwat Goenka Non – Executive Director Alumni of The Wharton School of The University of Pennsylvania Heads Retail and FMCG business of RP-Sanjiv Goenka group comprising of Spencer's Retail Ltd, Natures Basket Limited, Omnipresent Retail India Pvt Ltd. & Guiltfree Industries Lt
Slide 42: Contents
Contents Company Snapshot Key Differentiators Annexures #42
Slide 43: Consolidated Financials
Consolidated Financials period ended Growth 9 months ended Consolidated (₹ Cr) 31-Dec-20 30-Sep-20 31-Dec-19 Y-o-Y Q-o-Q 31-Dec-20 31-Dec-19 672 617 700 -4% 9% Revenue from operations 1,836 2,000 538 491 549 Cost of Goods Sold 1,464 1,573 134 126 150 -11% 7% Gross Margin 371 427 19.9% 20.4% 21.5% -1
Slide 44: Standalone Financials: Spencer's Retail Limited
Standalone Financials: Spencer's Retail Limited 3 months ended Growth 9 months ended Standalone (₹ Cr) 31-Dec-20 30-Sep-20 31-Dec-19 Y-o-Y Q-o-Q 31-Dec-20 31-Dec-19 7 - 3 New Stores added 7 10 160 154 163 Total Store count 160 163 0.76 - 0.25 TA added (Lac sq.ft) 0.76 0.64 13.52 13.12 14.29 TA exit
Slide 45: Natures Basket Limited continues to be EBITDA positive
Natures Basket Limited continues to be EBITDA positive period ended Growth 9 months ended Standalone (₹ Cr) 31-Dec-20 30-Sep-20 31-Dec-19 Y-o-Y Q-o-Q 31-Dec-20 31-Dec-19 31 31 33 Total Store count 31 33 0.84 0.84 0.89 TA exit (Lac sq.ft) 0.84 0.89 87 91 94 -8% -5% Revenue from operations 286 182 65
Slide 46: Slide 46
Spencer's Retail — Investor Presentation (February 2021) on 6ix