Slide 1: Cover letter: Revised Investor Presentation
)' FUTU RE FUTURE CONSUMER LIMITED (Formerly Future Consumer Enterprise Limited) CONSUMER; Q; Corporate Office : 247 Park. Tower ”.0 3th floor, LBS Marg‘ Vikhron (W), Mumbai - 400 083 (T) +91 22 6119 0000 1 www.tutureconsumer.tn '5‘ Read. 011ch : Knowledge House, Shyam Nagar, 011 JVLR, Jogeshwari (Ea
Slide 2: Future Consumer Limited Investor Update Q2 FY20 / H1 FY20
NEW RECIPE OF CONSUMER DELIGHT FMCG 2.0 FUTURE CONSUMER LIMITED Investor Update | Q2 FY20 / H1 FY20
Slide 3: Safe Harbour Statement
Safe Harbour Statement This investor presentation has been prepared by Future Consumer Limited (“FCL”) and does not constitute a prospectus or placement memorandum or an offer to acquire any securities. This presentation or any other documentation or information (or any part thereof) delivered or su
Slide 4: Company brands
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Slide 5: Table of Contents
TABLE OF CONTENTS JOURNEY FROM GOOD TO GREAT 05 BUSINESS UPDATE 09 KEY JVs ARE NEARING THE INFLECTION POINT 13 FINANCIAL OVERVIEW 20
Slide 6: Journey from Good to Great
Journey from “Good to Great” Key Pillars for FMCG 2.0 Multiple Categories Data Science Integrated Value-chain Digital Distribution Network Brands span across food, Data that drives (almost) Ownership of the entire value Modern retail and digital home care, personal care, and every decision and strat
Slide 7: Key Levers Driving Profitability and Return Enhancement
Key Levers Driving Profitability and Return Enhancement Right Portfolio Sourcing Costs JV Scale Sizing of Correction Efficiencies Leadership Up Balance Sheet • Premiumization of • Consolidation of • Supply chain • Cautious Capital portfolio and mix vendor and • Key JVs viz. Fonterra reorganization t
Slide 8: How are we Building Efficiencies?
How are we Building Efficiencies ? Pillar Principles ▪ Strategizing on entering new categories, where we have a distinct FMCG 2.0 voice and a right to win ▪ Creation of New SKUs basis data driven algorithms driven by FCL, Channel and 1 Creation customer priorities ▪ Value Reengineering and Simpler p
Slide 9: Inculcating the Culture of FMCG 2.0
Inculcating the Culture of FMCG 2.0 On the journey of good to great, FCL is deploying focus, rigor and consistency to build : Ideation 1. Institution – Systems, Processes, People and Data 2. Efficiencies – Across the value chain of creation, operation and destruction Retire Concept 3. Cost Leadershi
Slide 10: Business Update
BUSINESS UPDATE Previous 9 Next
Slide 11: Voom Detergent Extends Portfolio to Special Clothes and Matic
Voom Detergent Extends Portfolio to Special Clothes and Matic Co-Branding with Bengal Warriors Fashion Integration FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q2 FY20 Previous 10 Next
Slide 12: Tasty Treat Continues Portfolio Expansion in Mainstream Categories
Tasty Treat Continues Portfolio Expansion in Mainstream Categories and Festive Association Growth: 42% FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q2 FY20 Note: Growth represents Q2FY20 revenue growth on YoY basis Previous 11 Next
Slide 13: Continued Festive Associations to Establish Strong Brand Connect
Continued Festive Associations to Establish Strong Brand Connect Witnessed Strong Growth in Catering to Festive Consumption Growth: Growth: 40% 51% Note: Growth represents Q2FY20 revenue growth on YoY basis FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q2 FY20 Previous 12 Next
Slide 14: Key JVs Are Nearing the Inflection Point
KEY JVs ARE NEARING THE INFLECTION POINT Previous 13 Next
Slide 15: Fonterra: Delivering Dairy 2.0 Promise
FONTERRA: Delivering “Dairy 2.0” Promise FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q2 FY20 Previous 14 Next
Slide 16: JV is Backed by Fonterra's Strong Dairy Manufacturing Expertise
JV is Backed by Fonterra’s Strong Dairy Manufacturing Expertise Across the Value Chain FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q2 FY20 Previous 15 Next
Slide 17: Assure Dairy Nutrition with Uncompromising Standards
Assure Dairy Nutrition with Uncompromising Standards for Safety & Quality FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q2 FY20 Previous 16 Next
Slide 18: Dreamery: Expanding Portfolio and Distribution Reach
DREAMERY: Expanding Portfolio and Distribution Reach Products Launched Recent Launches General Trade: Expanding the Distribution 1st TV / Digital Campaign 3,000 Stores across Mumbai, Pune, Reach Across Channels Bengaluru & Hyderabad FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q2 FY20 Previous 17 Nex
Slide 19: Future Fonterra: Launch of Anchor Food Services Portfolio in India
Future Fonterra: Launch of Anchor Food Services Portfolio in India − Recently Future Fonterra launched food service business of Anchor in India − Products are currently imported from New Zealand − Expansion of channel to Horeca via this business as it caters to food service players such as Pizza cha
Slide 20: Hain: Nearing the Full-Fledged India and Middle East Launch
Hain: Nearing the Full-Fledged India and Middle East Launch Sensible Portions Portfolio Portfolio of 5 Variants to be Manufactured in India, Planned for Manufactured in India Food Park Ship-Outs by Jan-20 for Indian Markets Terra Manufacturing Commences in October ‘19 Distribution Continues to Scale
Slide 21: Financial Overview
FINANCIAL OVERVIEW Previous 20 Next
Slide 22: Q2 FY20 / H1 FY20 – At A Glance (Standalone)
Q2 FY20 / H1 FY20 – At A Glance − FCL Standalone largely represents the Food & HPC portfolio − Continues to deliver growth along with consistent margin expansion − With Topline of ₹16,624mn, FCL Standalone represents ~77% of Consolidated Total Income from Operations Standalone H1 FY 20 Gross Margins
Slide 23: Path towards profitability in standalone and consolidated
WE HAVE SUCCESSFULLY WALKED THE PATH TOWARDS PROFITABILITY IN STANDALONE…… MANAGEMENT IS COMMITTED TO REPEAT THE SAME JOURNEY IN CONSOLIDATED……. Previous 22 Next
Slide 24: Q2 FY20 / H1 FY20 – At A Glance (Consolidated)
Q2 FY20 / H1 FY20 – At A Glance FOCUS ON SUSTAINABLE GROWTH AND PROFITABILITY FCL Consolidated Revenue Significant Expansion in 11% increase in Adjusted ROCE (₹ in Mn) (H1FY20 Growth 17%) Consolidated topline on YoY basis YoY Growth 130 bps 11% Expansion 5.3% 11,208 10,111 4.0% Strong secondary sale
Slide 25: Portfolio Continuously Growing at A Rapid Pace
Portfolio Continuously Growing at A Rapid Pace YoY Sales Revenue (₹ in Mn) Key Takeaways Growth Center of Plate − COP Foods cross ₹1bn quarterly 50% 6% run rate with 19% share of Center of Plate Category and 72% growth Processed Foods YoY 13% 1x − Strong secondary sales growth of Home & Personal Car
Slide 26: Continued Growth Across Key Brands in Q2 FY20
Continued Growth Across Key Brands in Q2 FY20 +₹650mn +₹740mn +₹3,500mn ↑82% ↑42% ↑7% Secondary growth 106% Secondary growth 53% Targeted to cross ₹15bn +₹250mn +₹60mn +₹110mn ↑6% ↑18% ↑26% Continues to dominate the Targeted to cross Targeted to cross ₹1bn ₹400mn category FUTURE CONSUMER LIMITED | I
Slide 27: Revenue Share across Distribution Channels
Revenue Share across Distribution Channels SALES IN SMALL STORES CHANNEL GROWING AT 29% YOY, CONTINUE TO GARNER LARGER SHARE IN THE REVENUE PIE Actual Blended Gross Margins (Illustration Category : Processed Food* and HPC) 20% Channel Gross Margin Channel Wise Sales Mix Q2 FY20 Large Stores and Smal
Slide 28: High Growth Delivered with Underlying Profitability Turnaround
High Growth Delivered with Underlying Profitability Turnaround (₹ in Mn, Unless specified otherwise ) Revenue CAGR of 26% EBITDA CAGR of 102% 450 3.8% 424 4.0 % 11,208 10,111 2.9% 400 3.5 % 350 3.0 % 2.0% 292 300 7,505 2.5 % 250 2.0 % 5,637 200 0.9% 150 1.5 % 150 1.0 % 100 0.5 % 50 0 0.0 % Q2 FY17 Q
Slide 29: Geared to Achieve Higher Returns
Geared to Achieve Higher Returns Net Working Capital (Days) Net Fixed Asset Turnover (x) 6 7 5 49 51 56 FY 18 FY19 Q2 FY20 FY 18 FY19 Q2 FY20 ROCE (%), Adjusted ROCE (%) Net Debt to Equity (x) 5.3% 0.75 4.1% 4.9% 3.8% 0.57 0.48 1.6% 1.4% FY 18 FY19 Q1 FY20 ROCE (%) Adjusted ROCE (%) FY 18 FY19 Q2FY2
Slide 30: Significant Improvement in Standalone Profitability Metrics
Significant Improvement in Standalone Profitability Metrices PROFIT & LOSS A/C (STANDALONE ) (₹ in Mn, Unless specified otherwise ) Q2 FY20 vs Q2 FY19: Particulars Q2 FY20 Q1 FY20 Q2 FY19 H1FY20 H1FY19 FY19 − Revenue growth of 9% on YoY basis Total Income from Operations 8,780 7,844 8,049 16,624 14,
Slide 31: Consistently Treading the Path towards Profitability
Consistently Trading the Path towards Profitability PROFIT & LOSS A/C (CONSOLIDATED ) (₹ in Mn, Unless specified otherwise ) Q2 FY20 vs Q2 FY19: Particulars Q2 FY20 Q1 FY20 Q2 FY19 H1FY20 H1FY19 FY19 − Total Income from Operations growth of 11% on YoY basis Total Income from Operations 11,208 10,484
Slide 32: PAT Bridge – Q2 FY20 Standalone to Consolidated
PAT Bridge – Q2 FY20 Standalone to Q2 FY20 Consolidated -52 -106 -124 -166 141 -193 -54 -19 -42 -166 Standalone PAT (-) Loss from (-) Loss from (-) Loss from Hain (-) Loss from Other Consolidated PAT Subsidiaries Fonterra JVs and Other Impacts FUTURE CONSUMER LIMITED | INVESTOR UPDATE | Q2 FY20 Prev
Slide 33: Impact of IND AS 116 Accounting
Impact of IND AS 116 Accounting (Blended Approach) Consolidated Standalone Particulars Q2 FY20 IND AS 116 Q2 FY20 Q2 FY20 IND AS 116 Q2 FY20 Comparable Adjustment Reported Comparable Adjustment Reported Revenue from Operations 11,208 - 11,208 8,780 - 8,780 Other Income 33 +1 34 33 - 33 COGS -9,672 -
Slide 34: Capitalization of Balance Sheet Leading to Improvement in Leverage Ratios
Capitalization of Balance Sheet Leading to Improvement in Leverage Ratios BALANCE SHEET (CONSOLIDATED ) (₹ in Mn, Unless specified otherwise ) − Capitalization of balance sheet leading to As on Particulars net debt reduction ₹1,462mn 30-Sep-19 31-Mar-19 − Overall cash flow inflow of ₹2,975mn on acco
Slide 35: Shareholder Information
Shareholder Information Stock Data (As on 11th Nov 2019) Shareholding Pattern (%) (As on 30th September 2019) Market Capitalization (₹) 48,411 Mn Shares Outstanding ~192 Mn Free Float 54% 34.62% 46.29% Symbol (NSE/ BSE) FCONSUMER / 533400 Particulars Aug-19 Sep-19 Oct-19 Volume in mn 15 13 10 19.09%
Slide 36: Thank You
Thank You Corporate Office: Future Consumer Limited Embassy 247, Tower ‘C’, LBS Marg, Vikhroli (West), Mumbai 400 083 Tel: +91 22 6119 0000 Registered Office: Future Consumer Limited Knowledge House, Shyam Nagar Off JVLR, Jogeshwari(East), Mumbai 400 060 Tel: +91 22 6644 2200 Web: www.futureconsumer