Future Lifestyle Fashions Ltd. · NSE:FLFL
Future Lifestyle Fashions — Q3 FY20 Earnings Presentation
24 slides from Future Lifestyle Fashions's earnings presentation, Feb 12, 2020
Slide 1: Presentation to Analysts/Investors cover letter
FL F Y FUTURE LIFESTYLE FA SHIONS Ref: FLFL/SM/ 2019-20 12 February 2020 To To Dept. of Corporate Services (CRD) Listing Department SSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Sandra - Kurla Complex, Sandra (East), Mumbai - 400 00
Slide 2: Future Lifestyle Fashions Investor Update
Future Lifestyle Fashions Investor Update Mumbai 12th February, 2020
Slide 3: Disclaimer
Disclaimer This report contains forward-looking statements, which may be identified by their use of words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’, or other words of similar meaning. All statements that address expectations or projections about t
Slide 4: Key Macro indicators
Key Macro indicators GDP IIP Interest Rate Consumer Repo rate Confidence Q3 FY20 4.3% 1.8% 6.55%* 83.7 5.15% Consumer confidence in Current Situation Index Future Expectations Index January 2020 deteriorated 140.0 further vis-à-vis a year ago. 115.1 120.0 Households reported lower spending on non-es
Slide 5: Industry – what’s working and what’s not
Industry – what’s working and what’s not Formats providing curated experience and brands have been able to show steady performance amidst slowdown, while value formats have got affected the most Curated experience format Value formats • Channels that provide curated experience/ brands • Value segmen
Slide 6: What it means for FLF
What it means for FLF Central has been a leader in the full price formats, with YTD SSG of 6% • Overall format sales has grown by 12% in 9M FY20 • Overall format sales has grown by 16% in 9M FY20 • Maintained mid single digit SSG in a tough macro • Growth aided by significant volume at lower ASPs in
Slide 7: Update on Strategic planks
Update on Strategic planks Balance Sheet Core business Capital allocation Strengthening • Overall base business • Decision finalized to rationalize Lombard and • Net debt to EBITDA* ratio has grown by 12%, with two other sub brands. To be in effect from Q4 Central’s sales growth FY20 1.4 at 12% and
Slide 8: Update on Strategic planks
Update on Strategic planks Shareholder value Cost leadership creation • ~Rs. 10 cr saving in People cost aligned with • Zero sourcing from FEL effective Jan ‘20. Overall formats and HR. The full benefit of the savings to RPT % of sales to come down to 9% from the get realized from Q1 FY21 current 19
Slide 9: FLF Q3 FY20: Highlights
FLF Q3 FY20 : Highlights Business Update • Strong operating leverage led by cost efficiency and margin expansion resulted in ~90 bps expansion in EBITDA margin of base business in Q3 • 1 Central and 4 Brand Factory stores opened during Q3, taking the total count of Central to 49 and Brand Factory to
Slide 10: FLF – Journey from base business to current state 9MFY20
FLF – Journey from base business to current state 9MFY20 FLF Base business New FLF all business Accounting FLF reported Business and Result with Ind Revenue CT+ BF Retail + Brands CT+ BF + Brands Ind AS 116 Associates AS 116 impact 9MFY19 9MFY20 Gr% 9MFY20 9MFY20 Gr% 9MFY20 9MFY20 Gr% Revenue 4,347
Slide 11: FLF Q3 FY20 in Numbers
FLF Q3 FY20 in Numbers Central sales Brand Factory sales Revenue* ` 860 cr in Q3 FY20 ` 729 cr in Q3 FY20 ` 1,746 cr in Q3 FY20 9.3% ~0% 3.2% (` 787 in Q3 FY19) (` 727 in Q3 FY19) (` 1,692 cr in Q3 FY19) Gross profit* EBITDA* PAT* ` 612 cr in Q3 FY20 ` 194 cr in Q3 FY20 ` 59 cr in Q3 FY20 6.2% 7.7%
Slide 12: FLF 9M FY20 in Numbers
FLF 9M FY20 in Numbers Central sales Brand Factory sales FLF SSG%# ` 2,390 cr in 9M FY20 ` 1,953 cr in 9M FY20 11.6% 16.3% 2% (` 2,142 in 9M FY19) (` 1,679 in 9M FY19) (8.8% in 9M FY19) Revenue* Gross profit* EBITDA* ` 4,865 cr in 9M FY20 ` 1,731 cr in 9M FY20 ` 476 cr in 9M FY20 11.9% 13.8% 9.6% (`
Slide 13: New Store Launches
New Store Launches Opened 1 stores in Q3, Total Store Count is 49 Opened 4 stores in Q3, Total Store Count is 104 New Store Details New Store Details Ahmedabad: Vikhroli: Siliguri: Kollam: November December October November December FLF | Investor Update 12
Slide 14: Company store network
Company store network Store count Dec 18 Dec 19 44 49 89 104 EBOs 205 201 Total 338 354 Area (mn Sqft) 6.6 7.5 Store closure detail Dec 18 Dec 19 0 0 0 0 EBOs 15 5 Note:- Includes numbers of Lee Cooper business Stores. Map is not to scale. FLF | Investor Update 13
Slide 15: Latest Events at Central and Brand Factory
Latest Events at Central and Brand Factory Central Brand Factory Wedding tales Showoff Festive Showoff Festive Today's style is all about what is trending, liked, shareable, profiled etc To promote our Festive Show off collection, we will play on the insight and leave behind a message, ‘Let your clo
Slide 16: aLL & Lee Cooper key marketing initiatives
aLL & Lee Cooper key marketing initiatives Exclusive Green Card Launch of Lee Cooper’s Member Offer Lightest Shoe Ever • Offers for consumers were rolled out with focus on the 4X benefit on shopping + 1000 cashback • Social media promotions of the offer in the key markets + In Store Communication •
Slide 17: Events & updates – Brands
Events & updates – Brands Crew campaign: 7 bantaiz • For fall holiday 2019, converse collaborated with 7 bantaiz, a hiphop crew from Dharavi Jealous John Miller with a simple objective of ‘global brand speaking in local voice’ and further establish • Jealous 21 Trend Alert • Getting the 18-25 target
Slide 18: FLF Snapshot – Q3 and 9M FY20
FLF Snapshot – Q3 and 9M FY20 Total Income From Gross Profit EBITDA Margin PAT Gross Space Addition Operations (mn. sq. ft.) Q3 FY20 ₹1,746 Cr ₹612 Cr 11.1% ₹59 cr 0.19 9M FY20 ₹4,865 Cr ₹1,731 Cr 9.8% ₹111 cr 0.80 FLF Brands YTD Margins YTD SSGs Contributed ~35% of Revenue in Q3FY20. Delivered
Slide 19: Key brands portfolio performance
Key brands portfolio performance Power Brands 403 410 9MFY19 9MFY20 156 171 130 139 120 127 128 115 93 90 75 78 Emerging Brands 9MFY19 9MFY20 82 72 76 65 46 40 Retail Sales indicate Net Sales Before Tax FLF | Investor Update 18
Slide 20: Financial Overview – Q3 FY20 with Ind AS 116
Financial Overview – Q3 FY20 with Ind AS 116 With IND-AS 116 Income Statement (` Cr) Standalone Consolidated Gr% Gr% Particulars Q3'19 Q3'20 Q3'19 Q3'20 Revenue from Operations 1,616 1,667 3% 1,692 1,742 3% COGS 1,075 1,085 1% 1,116 1,134 2% Gross Profit 541 582 8% 576 608 6% Gross Margin % 33.5% 34
Slide 21: Financial Overview – 9M FY20 with Ind AS 116
Financial Overview – 9M FY20 with Ind AS 116 With IND-AS 116 Income Statement (` Cr) Standalone Consolidated Gr% Gr% Particulars 9M 19 9M 20 9M 19 9M 20 Revenue from Operations 4,106 4,620 13% 4,347 4,854 12% COGS 2,675 2,984 12% 2,826 3,134 11% Gross Profit 1,432 1,636 14% 1,521 1,721 13% Gross Mar
Slide 22: Financial Overview – Q3 FY20 without Ind AS 116
Financial Overview – Q3 FY20 without Ind AS 116 Without IND-AS 116 Income Statement (` Cr) Standalone Consolidated Gr% Gr% Particulars Q3'19 Q3'20 Q3'19 Q3'20 Revenue from Operations 1,616 1,670 3% 1,692 1,746 3.2% COGS 1,075 1,085 1% 1,116 1,134 2% Gross Profit 541 586 8% 576 612 6% Gross Margin %
Slide 23: Financial Overview – 9M FY20 without Ind AS 116
Financial Overview – 9M FY20 without Ind AS 116 Without IND-AS 116 Income Statement (` Cr) Standalone Consolidated Gr% Gr% Particulars 9M 19 9M 20 9M 19 9M 20 Revenue from Operations 4,106 4,631 13% 4,347 4,865 12% COGS 2,675 2,984 12% 2,826 3,134 11% Gross Profit 1,432 1,646 15% 1,521 1,731 14% Gro
Slide 24: Namaste!
Namaste ! Registered and Corporate Office: Knowledge House, Shyam Nagar, Off JVLR, Jogeshwari (East), Mumbai 400 060 +91 22 30842336 | investorrelations@futurelifestyle.in www.futurelifestyle.in
Future Lifestyle Fashions — Q3 FY20 Earnings Presentation on 6ix