Future Retail — Investor Presentation (December 2019)
25 slides from Future Retail's investor presentation, Dec 12, 2019
Slide 1: Revised presentation cover letter to stock exchanges
Iii FUTURE RETAIUI Ill 12th December, 2019 To, Dept. of Corporate Services (CRD) Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Sandra Kurla Complex, Dalal Street, Sandra East, Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 540064 Symbol: FRETAIL Sc
Slide 2: Future Retail Limited (FRL) Investor Presentation
Future Retail Limited (FRL) Investor Presentation December 2019 FRL | Investor Presentation | 2019 1
Slide 3: Disclaimer
Disclaimer This presentation 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 a
Slide 4: Table of Contents
Table of Contents I. Future Group Overview 4 II. Key Highlights 9 III. Future Retail Strategy 17 III. Financial Overview 22 FRL | Investor Presentation | 2019 3
Slide 5: I. Future Group Overview
I. Future Group Overview FRL | Investor Presentation | 2019 4
Slide 6: Future Group: A Pioneer of Consumer Branded and Retail Business
Future Group: A Pioneer of Consumer Branded and Retail Business Full ecosystem across the consumption chain Driving Value Across the Supply Chain Retail Consumer Supply Chain Digital ~2,000 Stores 26mn+ sq. ft. Retail space 5,500+ Rural distribution 500mn+ centers Annual customer footfalls Life Insu
Slide 7: Overview of Future Group Companies
Overview of Future Group Companies One of the leading players in the Indian consumer products and retail industry with a prominent presence across food, FMCG, apparel, retail, logistics and financial services Leading Indian retail Focuses on integrated Engages in the Leading Indian third-par
Slide 8: Future Retail at a Glance
Future Retail at a Glance One of the largest organized retailer in India with a strong national presence FY2019 Revenue Mix1 – By format Scale Efficiency Depth 2% 14% 84% >67% 1,550 Revenue from non- >350 mn Retail stores food categories5 Customer footfalls5 Large Stores² Small Stores Others Value c
Slide 9: Retail Network Overview
Retail Network Overview Food, Fashion and Home # of Area Commenced Target Formats # of cities Description stores (mn sqft) Operations Consumer Largest hypermarket Low-to Mid Hypermarket 293 12.63 147 2001 chain in India income Large Stores Affordable fashion Low-to Mid Fashion 95 1.04 47 2008 destin
Slide 10: II. Key Highlights
II. Key Highlights FRL | Investor Presentation | 2019 9
Slide 11: Key Highlights
Key Highlights 1 Large and Growing Organized Retail Market 2 Entrenched Consumer-centric National Platform 3 Diversified Multi-format High Margin Business Model 4 Strong Portfolio of Private / Licensed Brands Within Group 5 Massive Network Effect Across The Group 6 Diverse & Strong Board of Director
Slide 12: Large and Growing Organized Retail Market
1 Large and Growing Organized Retail Market Overall Indian Retail Market (USD bn) Structure of Overall Indian Retail Market FY19 FY25E CAGR: 9.7% 1,464 Organized (excluding eCommerce eCommerce Organized eCommerce) 4% 7% (excluding CAGR: 10.2% 1,215 11% eCommerce) 16% CAGR: 12.1% 822 Traditional 85%
Slide 13: Entrenched Consumer-centric National Platform
2 Entrenched Consumer-centric National Platform India's leading multi format pan India retailer Unmatched scale 1,550 16.4 >350mm Retail stores mn sq. ft. Customer Retail space footfalls #1 Leading Leading Organized market position Retail Player position In food, grocery and general In fashion retai
Slide 14: Diversified Multi-format High Margin Business Model
3 Diversified Multi-format High Margin Business Model Large format Small format Others Marquee Affordable fashion Convenient Consumer durables Gourmet hypermarket brand for young neighbourhood store and electronics chain supermarket in customers offering daily premium locations essentials
Slide 15: Strong Portfolio of Private / Licensed Brands Within Group
4 Strong Portfolio of Private / Licensed Brands Within Group Deliver higher margins Better control over quality / pricing Better control of supply chain Efficient inventory management and a wider assortment Efficiently match demand with SKUs FRL | Investor Presentation | 2019 14
Slide 16: Massive Network Effect Across The Group
5 Massive Network Effect Across The Group A well-established comprehensive platform that encompasses end-to-end control of value chain Procurement Manufacturing Logistics Apparel unit at Tarapur Temperature Contract Express International Controlled Logistics Logistics Logistics Outsourcing and Procu
Slide 17: Diverse & Strong Board of Directors & Management
6 Diverse & Strong Board of Directors & Management Kishore Biyani Rahul Garg Managing Director Non-Executive Director Founder and Group CEO of Future Group. Partner and Co-Head of India based Private Has over 25 years experience and is known Equity of Premji Invest. He leads investments as the p
Slide 18: III. Future Retail Strategy
III. Future Retail Strategy FRL | Investor Presentation | 2019 17
Slide 19: Future Retail Strategy
Future Retail Strategy 1 Focus On Delivering High Cash Flows and Productivity 2 Reaping Benefits From Amazon and 7-Eleven Tie-ups FRL | Investor Presentation | 2019 18
Slide 20: Focus On Delivering High Cash Flows and Productivity
Focus On Delivering High Cash Flows and Productivity 1 Immediate execution targets “Lean and Significant cost-saving initiatives in progress across store rental renegotiations, store opex reduction, lower Nimble” : Driving employee costs, leaner & targeted marketing spends, process automation at c
Slide 21: Focus On Delivering High Cash Flows and Productivity
Focus On Delivering High Cash Flows and Productivity 1 Immediate execution targets No new net space addition across small format stores No acquisitions – only organic growth Minimal maintenance capex – store renovation journey now complete Revenue per sq. ft. Efficient inventory growth thr
Slide 22: Reaping Benefits From Amazon and 7-Eleven Tie-ups
Reaping Benefits From Amazon and 7-Eleven Tie-ups 2 Near-to-medium term targets In August 2019, FRL announced its partnership with Amazon that provides a first mover advantage to the Company as it takes the path to become truly omni-channel and positions itself strongly against its Amazon competit
Slide 23: IV. Financial Overview
IV. Financial Overview FRL | Investor Presentation | 2019 22
Slide 24: Financial Overview
Financial Overview Strong financial profile Total Revenue (INR bn) Gross Profit (INR bn) Gross Profit Margin 24.8% 25.6% 26.9% 27.0% 27.4% 203.3 184.8 54.7 170.8 47.4 42.4 105.4 28.9 94.7 25.6 1 1 1 1 FY17 FY18 FY19 1H FY19 1H FY20 FY17 FY18 FY19 1H FY19 1H FY20 EBITDA (INR bn) Net Debt (INR bn) Net
Slide 25: Thank You
Thank You FRL | Investor Presentation | 2019 24
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