Slide 1: Sharing the Joy of Food: Investor Update – Q2 FY 2016
Sharing the Joy of Food Investor Update – Q2 FY 2016
Slide 2: 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 3: Contents
Contents S No Particulars Page No 1 Business Overview 4-6 Footprint Across Food Value Chain is Now in Place 05 Business Overview at a Glance: Q2 FY16 06-07 2 Key Development & Product Launches 08-14 Tasty Treat – Mass Media Campaign 09 Desi Atta – Fulfilling Nutritious Needs of Consumers 10 Partners
Slide 4: Business Overview
BUSINESS OVERVIEW 4
Slide 5: Footprint Across Food Value Chain is Now in Place
Footprint Across Food Value Chain is Now in Place Agri Sourcing Food Processing Brands Convenience Stores • Strong presence in • Operates India’s largest • Introduced various FMCG Connecting consumer in sourcing of all kinds of food processing facility in products. In processed urban and rural agri
Slide 6: Business Overview at a Glance: Q2 FY16
Business Overview at a Glance: Q2 FY16 Q2 FY15(1) Q2 FY16 Convenience Stores & Convenience Others Stores & 23% Others 37% Brands 63% Brands 77% Total Revenues: ₹2,949 mn Growth of 52% Total Revenues: ₹4,476 mn (1) Nilgiris was acquired by FCEL in November – end 2014 hence not included in Q2FY15 Note
Slide 7: Performance Overview Q2FY16 vs Q2 FY15
Performance Overview Q2FY16 vs Q2 FY15 Brands Convenience Stores Top Line Growth 52% 83% 10% Gross Margin (%) 16% 15.5% 461 bps 11.3% 120 bps 250 bps Note: Nilgiris was acquired by FCEL in November – end 2014 hence not included in Q2FY15 Brands & Convenience Gross Margins are unadjusted for inter co
Slide 8: Key Developments and Product Launches
KEY DEVELOPMENTS AND PRODUCT LAUNCHES 8
Slide 9: Tasty Treat – Mass Media Campaign
Tasty Treat – Mass Media Campaign A Transformation from Private Brand to FMCG Brand • Tasty Treat decided to take 3 of its key consumer categories; mango drink, tomato ketchup and wafer biscuits, to a larger audience • Launched a TV led mass media campaign on mix of Hindi / key regional channels to
Slide 10: Desi Atta – Fulfilling Nutritious Needs of Consumers
Desi Atta – Fulfilling Nutritious Needs of Consumers • Desi Atta offers a whole new range of instant mixes along with quality and nutritious atta range • Wide range includes instant mixes like dosa atta, dhokla mix, oats upma mix and grains, millets, pulses, upwas attas • In near future, FCEL aims t
Slide 11: Partnership with Patanjali Ayurved
Partnership with Patanjali Ayurved • Future Group entered into a partnership with Patanjali to promote, distribute & market Patanjali’s products • Products will be distributed through KB’s Conveniently Yours , Nilgiri’s and Aadhaar along with other Group formats • Patanjali, founded by Swami Ramdevj
Slide 12: New Product Launches & Brand Extensions
New Product Launches & Brand Extensions 12
Slide 13: Veg affaire - Rediscovering Love for Vegetarian Food
Veg affaire - Rediscovering Love for Vegetarian Food • Extended product range now includes sweet corn and mix veg • Launched on pan India basis at Big Bazaar while launch in- progress at KB’s Conveniently Yours and Nilgiri’s 13
Slide 14: Distribution Network Created by FCEL
Distribution Network Created by FCEL # of stores # of franchise Total Stores Presence * NCR 128 - 128 Mumbai 15 142 157 South India Punjab 21 35 56 Gujarat Total Stores 164 177 341 Expanding distribution network Pan India through acquisitions & associations • Modern Public Distribution System, Rajas
Slide 15: Highlights of Q2FY16
HIGHLIGHTS OF Q2FY16 15
Slide 16: Key Milestones Achieved in Q2 FY16 (1/3)
Key Milestones Achieved in Q2 FY16 (1/3) Improved performance at operating level EBITDA (₹ mn) • Total Operating Income increased from ₹2,949 mn 17 (Q2FY15) to ₹4,476 mn (Q2FY16) with a 52% growth ‒ Also witnessed growth of 25% sequentially compared to Q1 FY16 • Gross Margins witnessed 250bps improv
Slide 17: Key Milestones Achieved in Q2 FY16 (2/3)
Key Milestones Achieved in Q2 FY16 (2/3) Brands • Business reported 30% growth compared to Q1 FY16 • Tasty Treat with 56%, Fresh & Pure with 23%, and Sunkist were high growth brands during the quarter compared to last year ‒ Within Tasty Treat categories like sauces, wafers and namkeens reported dis
Slide 18: Key Milestones Achieved in Q2 FY16 (3/3)
Key Milestones Achieved in Q2 FY16 (3/3) Convenience Stores (Urban and Rural) • Reported top line growth of 10% and 13% on Y-o-Y and sequential basis respectively • Like to like growth was 19% in urban & rural convenience chains • Aadhaar (rural convenience stores) reported a strong top-line growth
Slide 19: Financial Overview
FINANCIAL OVERVIEW 19
Slide 20: Consolidation Footprint
Consolidation Footprint Q2 (FY15) Business Entity Q2 (FY16) Q1 (FY16) FCEL Consolidated FCEL Standalone Future Agrovet Aadhaar Amar Chitra Katha Nilgiri's Integrated Food Park Sublime Foods Aussee Oats 20
Slide 21: Consolidated Income Statement
Consolidated Income Statement Quarterly Income Statement Quarter Ended Year Ended • Total operating income grew by 52% Particulars (In ₹ mn) Q2 (FY16) Q1 (FY16) Q2 (FY 15) FY 15 and 25% as compared to Q2 FY15 and Total Operating Income 4,476 3,578 2,949 13,166 Q1 FY16 respectively Y-o-Y Growth (%) 5
Slide 22: Consolidated Income Statement
Consolidated Income Statement Half Yearly Income Statement Half Year Ended Year Ended Particulars (In ₹ mn) H1 (FY16) H1 (FY15) FY 15 • Total operating income growth of 37% as Total Operating Income 8,054 5,879 13,166 compared to same period last year Y-o-Y Growth (%) 37% • Gross margins improved by
Slide 23: Performance excluding Amar Chitra Katha
Performance excluding Amar Chitra Katha Consolidated as Reported Consolidated Excluding ACK FY 2015-16 FY 2015-16 Q2 Q1 H1 Particulars (₹ mn) Q2 Q1 H1 4,476 3,578 8,054 Revenue 4,339 3,463 7,802 17 (26) (9) EBITDA 35 2 37 141 160 302 Interest 136 157 293 146 137 283 Depreciation 122 118 239 47 - 47
Slide 24: Consolidated Balance Sheet
Consolidated Balance Sheet As of Date Particulars (In ₹mn) 30-Sep-15 31-Mar-15 Shareholders' Funds 7,060 7,696 Minority Interest 279 338 Gross Debt 5,656 6,735 Less: Cash & Cash Equivalents 1,200 1,433 Net Debt 4,456 5,302 Net Adjusted Capital Employed 11,794 13,336 Fixed Assets 6,130 5,702 Goodwill
Slide 25: NAMASTE!!
NAMASTE!! 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 projecti