Arvind Fashions Ltd. · NSE:ARVINDFASN

Arvind Fashions — Q3 FY22 Earnings Presentation

17 slides from Arvind Fashions's earnings presentation, February 2022

1. Slide 1: Arvind Fashions Limited Q3 FY22 Results Presentation

   Arvind Fashions Limited Q3 FY22 Results Presentation February 2022

2. Slide 2: Agenda

   Q3 FY22 Performance Highlights Agenda Q3 FY22 Results with IndAS Way Forward 2

3. Slide 3: Q3 FY22 Highlights – PAT positive quarter

   Q3 FY22 Highlights – PAT positive quarter Strong financial Power Brands Robust profitability performance • 30% sales growth Y-o-Y; 20% growth • 25% revenue growth leading to • 62% growth in EBITDA to Rs. 106 (vs. pre-COVID) EBITDA margin expansion of 150 bps crores; margin expansion of 200 bps • 340

4. Slide 4: Q3 FY22 revenue was AFL's highest in last 11 quarters journey

   Q3 FY22 revenue was AFL’s highest in last 11 quarters journey Sales (Rs. Crs) 1,008 895 837 812 773 685 658 577 5% 7% 382 41% 319 4% 72 12% Q1FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 4 * Continuing business

5. Slide 5: Sharper execution during festival season resulting in robust profitability metrics

   Sharper execution during festival season resulting in robust profitability metrics Sales (Rs. Crs) EBITDA (Rs. Crs) 1008 106 +30% +62% 773 65 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 5 Sales growth of 20%+ over pre-COVID (Q3 FY20)

6. Slide 6: Launched new retail identity of US Polo Assn.

   Launched new retail identity of US Polo Assn. 6

7. Slide 7: EBOs witnessed strong growth while department stores continue to stay muted

   EBOs witnessed strong growth while department stores continue to stay muted (vs pre-COVID) Stores Dept. Stores 159% FY21 FY22 FY21 FY22 96% 121% 107% 66% 84% 57% 54% 50% 63% 44% 22% Oct Nov Dec Oct Nov Dec Current year & last year sales as % of same months in FY20 (pre-COVID) 7

8. Slide 8: Continue to strengthen leadership position in online channel

   Continue to strengthen leadership position in online channel Online revenue over same Key Drivers period  Omni-channel Q3 FY20 x • Omni-linkage of 50+ stores in Q3 taking total count to 800+  Fulfilment capacity • 1.3 Mn+ orders processed from own D2C warehouse  Channel contribution Q3 FY21 1.8x

9. Slide 9: Q3 FY22 - Groupwise Performance

   Q3 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) Q3 FY22 Q3 FY21 % Growth Q3 FY22 Q3 FY21 Power Brands 806 645 25% 93 65 Specialty Emerging Retail Brands 202 128 58% 13 0 Total 1008 773 30% 106 65 Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying Machine and Arrow Emerging B

10. Slide 10: YTD FY22 - Groupwise Performance

    YTD FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) YTD FY22 YTD FY21 % Growth YTD FY22 YTD FY21 Power Brands 1743 974 79% 148 30 Specialty Emerging Retail Brands 397 253 57% 5 (12) Total 2139 1227 74% 153 18 Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying Machine and Arrow

11. Slide 11: Efficient working capital leading to positive cash flow generation

    Efficient working capital leading to positive cash flow generation Figures in Rs Crs. Dec’21 Dec’20 Change Sep’21 Inventory 985 931 54 948 • Strong process controls around inventory & debtors yielding Receivables 522 658 (136) 622 results, thereby leading to efficient working capital cycle GWC 1507

12. Slide 12: Agenda

    Q3 FY22 Performance Highlights Agenda Q3 FY22 Results with IndAS Way Forward 12

13. Slide 13: Q3 FY22 - Performance Snapshot

    Q3 FY22 - Performance Snapshot Reported (Rs Crs.) Q3 FY22 Q3 FY21 % growth Revenue from Operations 1008 773 30% Other Income 9 6 53% Total Income 1017 779 31% • Deleveraging helped drive lower interest costs EBITDA 106 65 62% • Achieved significant Finance Costs 27 41 (35%) milestone of becoming PAT

14. Slide 14: YTD FY22 - Performance Snapshot

    YTD FY22 - Performance Snapshot Reported (Rs Crs.) YTD FY22 YTD FY21 % growth Revenue from Operations 2139 1227 74% Other Income 46 87 (47%) Total Income 2185 1315 66% EBITDA 153 18 741% Finance Costs 101 139 (27%) Depreciation and amortisation 172 176 (2%) Exceptional items - (45) - PBT from contin

15. Slide 15: Agenda

    Q3 FY22 Performance Highlights Agenda Q3 FY22 Results with IndAS Way Forward 15

16. Slide 16: Way forward

    Way forward Short term • Q4 to be impacted (Y-o-Y) on account of COVID wave 3 related lockdowns; encouraging recovery post lifting of restrictions. Expect full recovery by March • Growth through retail & online channel to help strengthen leadership position • On track to open 150+ stores in FY22 • C

17. Slide 17: Thank You

    Thank You

Arvind Fashions — Q3 FY22 Earnings Presentation on 6ix