Future Lifestyle Fashions Ltd. · NSE:FLFL
Future Lifestyle Fashions — Q2 FY2020 Earnings Presentation
30 slides from Future Lifestyle Fashions's earnings presentation, Nov 14, 2019
Slide 1: Cover letter to stock exchanges
FL F ),'F UTURE L IFESTYLE FASHIONS Ref: FLFL/SM/ 2019-20 14 November 2019 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
Slide 2: Future Lifestyle Fashions Investor Update
Future Lifestyle Fashions Investor Update 14th November 2019, Mumbai FUTURE LIFESTYLE FASHIONS
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 Q2 FY20 5.2% (4.3%) 6.67%* 89.4 5.15% Consumer confidence Current Situation Index Future Expectations Index weakened in September with 140 124.8 118.0 both the current situation 130 120 index (CSI) and the future 110 100 89.4 e
Slide 5: FLF's approach to sustainable value creation
FLF’s approach to sustainable value creation A differentiated Operating model sets FLF apart in a competitive landscape. Core business Capital Strengthening Shareholder – Portfolio Cost leadership allocation Balance sheet Value approach • Central - • Prudent capital • Organization • Debt to EBITDA*
Slide 6: Strategic investment by Blackstone to unlock value
Strategic investment by Blackstone to unlock value Funds managed by Blackstone have invested ₹1,750cr About Blackstone: Blackstone is one of the world’s leading investment firms. It seeks to create positive economic impact and long-term value for its investors, the companies in which it invests, and
Slide 7: FLF Q2 FY20: Highlights - Business Update
FLF Q2 FY20 : Highlights Business Update • Mr. Vishnu Prasad has been re-designated as Chief Executive Officer (KMP) of the Company by the Board • Going forward FLF would operate under two verticals as Physical and Digital • Physical retail constituted by Central, Brand Factory and Brands • Digital
Slide 8: FLF Q2 FY20: Highlights - Financial update
FLF Q2 FY20 : Highlights Financial update • FLF continues to deliver industry leading growth at 17.9% for Q2 and 17.5% for H1 FY20 • Strong same store growth led by Central at 10.3% % for Q2 and 8.7% for H1 FY20 defying slowdown • Robust performance by base business with top line growth of 17.2% and
Slide 9: FLF – Journey from base business to H1FY20
FLF – Journey from base business to H1FY20 Base business Total Accounting FLF reported Digital Central + Brand Factory Retail Business Result with Ind AS Revenue Base + Digital Ind AS 116 + Brands 116 impact H1FY19 H1FY20 Gr% H1FY20 H1FY20 Gr% H1FY20 H1FY20 Gr% Revenue 2,654 3,111 17.2% 9 3,119 17.5
Slide 10: FLF Q2 FY20 in Numbers
FLF Q2 FY20 in Numbers Central sales Brand Factory sales FLF SSG%# ` 819 cr in Q2 FY20 ` 573 cr in Q2 FY20 17.8% 40.7% 8.8% (` 695 in Q2 FY19) (` 408 in Q2 FY19) (1.4% in Q2 FY19) Revenue* Gross profit* EBITDA* ` 1,575 cr in Q2 FY20 ` 544 cr in Q2 FY20 ` 136 cr in Q2 FY20 17.9% 11.9% 2.9% (` 1,336 c
Slide 11: FLF H1 FY20 in Numbers
FLF H1 FY20 in Numbers Central sales Brand Factory sales FLF SSG%# ` 1,569 cr in H1 FY20 ` 1,224 cr in H1 FY20 15.8% 31.1% 6.9% (` 1,355 in H1 FY19) (` 934 in H1 FY19) (4.7% in H1 FY19) Revenue* Gross profit* EBITDA* ` 3,119 cr in H1 FY20 ` 1,119 cr in H1 FY20 ` 281 cr in H1 FY20 17.5% 18.4% 10.6% (
Slide 12: Same Store Retail Sales Performance
Same Store Retail Sales Performance 21% 15% 13% 11% 10% 9% 9% 7% 7% 6% 5% 3% 2% 1% 0.5% Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Like to Like volume growth for Brand Factory is 24% and 13% for Q2 and H1 respectively FLF | Investor Update 11
Slide 13: New Store Launches
New Store Launches Opened 1 stores in Q2, Total Store Count is 48 Opened 3 stores in Q2, Total Store Count is 100 New Store Details New Store Details Ranchi: September Tirupati: July Gangtok: August Ahmedabad: September FLF | Investor Update 12
Slide 14: Company store network
Company store network Store count Sept 18 Sept19 44 48 76 100 EBOs 209 201 Total 329 349 Area (mn Sqft) 6.2 7.3 Store closure detail Sept 18 Sept 19 1 0 0 0 EBOs 6 4 Note:- Includes numbers of Lee Cooper business Stores. 4 Central and 10 Brand Factory stores are in pipeline Map is not to scale. FLF
Slide 15: Digital Business update
Digital Business update FLF | Investor Update 14
Slide 16: Brand Factory online work track
Brand Factory online work track Area / Function Work in progress Upcoming (next 3 months) Assortment and • Options ramp up completed across • Expand assortment by extending to home and Category categories beauty Management for • Cost rationalized basis outsource • Bring all other FLFL brands on this
Slide 17: Integration of Online and Physical store campaign underway
Integration of Online and Physical store campaign underway FLF | Investor Update 16
Slide 18: Events and campaigns
Events and campaigns FLF | Investor Update 17
Slide 19: Latest Events at Central
Latest Events at Central Central Central Central Recycle Fashion week Instacast 2.0 Red Hot Saturday Central re-launched Recycle Launch of campaign was Red haute Saturday week was Fashion Week ,in done via Instacast 2.0, the biggest sale grossing week association with Goonj, where Central hosted a f
Slide 20: Campaigns and Promotions at Brand Factory
Campaigns and Promotions at Brand Factory Targeted towards student community with an Online to Offline element. Offer on Denim, Backpack and Sports shoes category. College Id used as an instrument to get add. Discounts Brand Stock Exchange • Objective: New Customer Acquisition • Campaign duration wa
Slide 21: Lee Cooper key marketing and strategic initiatives
Lee Cooper key marketing and strategic initiatives Print Ads Advertisement SS’20 Trade show • Print ads activated in shoes & accessories magazine • Monthly inserts of lee cooper campaign images Strategic Initiatives Influencing through Social Media • Create higher engagement rates on the content peg
Slide 22: aLL key initiatives
aLL key initiatives New store launch Parfait Launch on aLL Online Recycle Fashion • • Created cross category purchases and Created buzz about the store through • Reached out to a new audience a Dhol Nagada performance at store provide the aLL customers with the with a cause led communication option
Slide 23: Financial Performance – Q2 FY20 and H1 FY20
Financial Performance – Q2 FY20 and H1 FY20 FLF | Investor Update 22
Slide 24: FLF Snapshot – Q2 and H1 FY20
FLF Snapshot – Q2 and H1 FY20 Total Income From Gross Profit EBITDA Margin PAT Gross Space Addition Operations (mn. sq. ft.) Q2 FY20 ₹1,575 Cr ₹544 Cr 8.6% ₹22 cr 0.13 H1 FY20 ₹3,119 Cr ₹1,119 Cr 9.0% ₹51 cr 0.61 FLF Brands Q2 Margins Q2 SSGs Contributed ~43% of Revenue in Q2FY20. Delivered Gros
Slide 25: Financial Overview – Q2 FY20 with Ind AS 116
Financial Overview – Q2 FY20 with Ind AS 116 With IND-AS 116 Income Statement (` Cr) Standalone Consolidated Gr% Gr% Particulars Q2'19 Q2'20 Q2'19 Q2'20 Revenue from Operations 1,222 1,458 19% 1,336 1,572 18% COGS 771 950 23% 850 1,032 21% Gross Profit 451 508 13% 486 540 11% Gross Margin % 36.9% 34
Slide 26: Financial Overview – H1 FY20 with Ind AS 116
Financial Overview – H1 FY20 with Ind AS 116 With IND-AS 116 Income Statement (` Cr) Standalone Consolidated Gr% Gr% Particulars H1'19 H1'20 H1'19 H1'20 Revenue from Operations 2,490 2,954 19% 2,654 3,112 17% COGS 1,599 1,900 19% 1,709 2,000 17% Gross Profit 891 1,054 18% 945 1,112 18% Gross Margin
Slide 27: Financial Overview – Q2 FY20 without Ind AS 116
Financial Overview – Q2 FY20 without Ind AS 116 Without IND-AS 116 Income Statement (` Cr) Standalone Consolidated Gr% Gr% Particulars Q2'19 Q2'20 Q2'19 Q2'20 Revenue from Operations 1,222 1,461 20% 1,336 1,575 17.9% COGS 771 950 23% 850 1,032 21% Gross Profit 451 511 13% 486 544 12% Gross Margin %
Slide 28: Financial Overview – H1 FY20 without Ind AS 116
Financial Overview – H1 FY20 without Ind AS 116 Without IND-AS 116 Income Statement (` Cr) Standalone Consolidated Gr% Gr% Particulars H1'19 H1'20 H1'19 H1'20 Revenue from Operations 2,490 2,961 19% 2,654 3,119 18% COGS 1,599 1,900 19% 1,709 2,000 17% Gross Profit 891 1,061 19% 945 1,119 18% Gross M
Slide 29: Financial Overview – Balance Sheet and Cash Flow
Financial Overview – Balance Sheet and Cash Flow Capital Employed Statement As on ROCE% ` in Cr Mar-19 Sept-19 Shareholder's Funds 1,827 1,884 15.9% Debt 904 913 Less: Cash and cash equivalent 126 104 Net Debt 778 809 Less: Current Investment 44 44 13.9% Net Adj Capital Employed 2,561 2,648 Net Non
Slide 30: Thank You
Thank You Registered and Corporate Office: Knowledge House, Shyam Nagar, Off Jogeshwari - Vikhroli Link Road, Jogeshwari (East), Mumbai 400 060 +91 22 30842336 | investorrelations@futurelifestyle.in www.futurelifestyle.in
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