Slide 1: Exchange filing letter: Presentation of Investor/Analyst Meet
January 17, 2023 To, To, The Manager The Manager Listing Department Listing Department BSE Limited, National Stock Exchange of India Phiroze JeeJeeBhoy Towers, Ltd, Dalal Street, Mumbai – 400001 (E) Exchange Plaza, 5th Floor, Plot No. Maharashtra, India C/1, G Block, Bandra Kurla Complex, Scrip code
Slide 2: Metro Brands Limited Earnings Presentation – 9M FY23
METRO BRANDS LIMITED EARNINGS PRESENTATION – 9M FY23 17th January, 2023
Slide 3: Safe Harbor statement
Safe Harbor statement • The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set o
Slide 4: Brief Overview
BRIEF OVERVIEW Q3 & 9M FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 5: MBL stands tall with a presence across 5 formats, 720 stores
Our Journey Acquisition of Cravatex Brands Ltd Launch of Launch of • Exclusive license for Started first MOCHI ties up with • Owns sportswear Store MBO MBO Hits 200 stores METRO brand 1977 2010 2021 1955 2000 2009 2012 2015 2022 Incorporation of Launch of • Exclusive the Company E-commerce, tie up w
Slide 6: 65+ years of Market Presence
65+ years of Market Presence Key Enablers 1 2 3 4 5 Wide range of brands and One of the largest Indian Efficient operating model Strong promoter background Asset light business with an products – catering to all footwear specialty retailers1 through deep vendor with an experienced and efficient oper
Slide 7: Brief Overview
Brief Overview One Stop Shop for all Footwear Needs PAN India Presence with 720 Stores I 164 Cities I 30 States and UTs (As of Dec’22) West Tier III Metro High Street Dec’22 / South 29% 13% cities 54% (MBO) (MBO) (EBO) (MBO) (EBO) 32% 30% 9MFY23 Airports Target Value 1% Location Family Youth Premium
Slide 8: Q3 & 9M FY23 Business Highlights
BRIEF OVERVIEW Q3 & 9M FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 9: Q3 FY23 Business Highlights
Q3 FY23 Business Highlights Best quarter in Company’s History - Highest ever quarterly Revenue, EBITDA and PAT ! Standalone Consolidated In INR Crore Q3 FY23 Q3 FY22 YOY Growth% Q3 FY23 Q3 FY22 YOY Growth% Revenue 577 476 21.3% Revenue 599 484 23.8% EBITDA 204 167 21.9% EBITDA 205 169 21.8% EBITDA%
Slide 10: Q3 Business Highlights (Consolidated)
Q3 Business Highlights (Consolidated) Revenue from Operations and Revenue per sq.ft # Gross Profit and Gross Margins 5,900 4,700 5,700 4,900 5,750 59.1% 57.3% 59.7% 57.4% 59.2% 410 355 599 360 508 286 303 484 476 310 273 403 260 231 210 160 110 60 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Q3 FY22 Q4 F
Slide 11: 9M Business Highlights (Consolidated)
9M Business Highlights (Consolidated) Revenue from Operations and Revenue per sq.ft# Gross Profit and Gross Margins 1,550 3,900 5,900 11,050 5,700 4,900 5,750 15,350 55.7% 57.5% 59.1% 58.1% 59.7% 57.4% 59.2% 58.8% 1,583 931 940 546 599 303 355 484 508 476 286 273 325 187 131 73 FY22 FY23 FY22 FY23 #
Slide 12: Key business updates – Metro Brands Ltd
Key business updates – Metro Brands Ltd Robust growth in Ecommerce sales continues - pivoting successfully as an omni-channel footwear retailer ❑ Highest ever quarterly & nine months ended December 2022 Ecommerce sales (including omni-channel) of Rs 50 cr and Rs 129 cr respectively. ❑ Growth momentu
Slide 13: Key business updates – Cravatex Brands Limited
Key business updates – Cravatex Brands Limited Completed 100% acquisition of Cravatex Brands Limited (CBL) ❑ Cravatex Brands holds exclusive long-term license for the Italian sportswear brand FILA & owns the Indian sportwear brand Proline. ❑ This acquisition fits the strategic vision of Metro Brands
Slide 14: Key business updates – Cravatex Brands Limited
Key business updates – Cravatex Brands Limited Key priorities for next 6 months: ❑ Integration with MBL eco-system to leverage on cost & operations synergies. ❑ Focus on liquidation of current excess inventory and improving cash conversion cycle ❑ Evaluate means to improve sales through-put at all e
Slide 15: Year wise Store additions
Year wise Store additions Stores 504 +9% 551 +6% 586 +6% 624 624 +3% 644 +5% 672 +7% 720 9M : 96 Opened^ 95 57 59 87 25 37 54 Closed^ 10 10 24 49 5 9 6 Relocation^ 3 - 3 12 3 4 3 FY19 FY20 FY21 FY22 Jun’22 Sep’22 Dec’22 Metro 209 218 219 231 238 255 269 Mochi 136 145 145 162 168 173 190 Walkway 63 7
Slide 16: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) In INR Crore Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 FY22 Revenue from Operations 577 463 476 1,538 917 1,312 Other Income 15 12 12 36 45 58 Total Income 592 475 488 1,573 962 1,371 EXPENSES Purchases of stock-in-trade 275 286 244 818 482 684 Changes
Slide 17: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) In INR Crore Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 FY22 Revenue from Operations 599 476 484 1,583 940 1,343 Other Income 15 12 12 36 45 59 Total Income 613 488 496 1,619 985 1,402 EXPENSES Purchases of stock-in-trade 288 295 250 846 495 700 Change
Slide 18: Metro's Strengths
BRIEF OVERVIEW Q3 & 9M FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 19: Our Key Strengths
Our Key Strengths 1 One of India's largest pan India footwear retailers1 with a brand appeal among aspirational consumer segments 2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear & accessories retailer 3 Wide range of brands and products catering to all occasions across age
Slide 20: One of India's largest pan India footwear retailers
1 One of India's largest pan India footwear retailers1 with a brand appeal among aspirational consumer segments PAN India Network of Retail Outlets (as of Dec’22) …with diversified presence across regions2 551 586 624 720 13% 14% 13% 16% 13% 15% 14% 15% 23% 21% 24% 22% 25% 25% 23% 22% 31% 32% 31% 31
Slide 21: Pivoting from Offline to Omni-channel retailer
2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear and accessories retailer E-commerce – Online & Omnichannel “Highest number of Instagram Followers among key footwear ❖ Majority of online business comes through leading e-commerce retailers in India” (CRISIL) 2.5% 2.5% 8.4%7.3
Slide 22: Wide range of brands and products (1/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (1/3) Product presence across multiple categories through Own and Third party brands Own Brands Casual Formal Sports Accessories Third Party Brands Skechers Adidas
Slide 23: Wide range of brands and products (2/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (2/3) Own Brands contribute ~ 70-75% of total store product sales at MBOs Targeting Mid and Premium Segment through 5 different Brand Outlets 9M FY23 - Average Rea
Slide 24: Wide range of brands and products (3/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (3/3) Repeat Sales to Members of Loyalty programs Loyalty programs have been digitized and thus provide insights into Customer Preference % Total Product Sales 1 a
Slide 25: Asset light business with an efficient operating model
4 Asset light business with an efficient operating model leading to sustained profitable growth Outsourced ✓ One of the few footwear Retailers in India to source all products through outsourcing 1 Manufacturing arrangements without own manufacturing facility1 ✓ One of the highest gross margins among
Slide 26: Efficient operating model through vendor engagements and TOC supply chain
5 Efficient operating model through deep vendor engagements and TOC based supply chain Long Standing Relationships with Vendors ❖ 250+ vendors dealt with over last 3 fiscal years ❖ 20+ years of relationship with certain vendors Demand Driven Lean Inventory Norms New Designs and Styles ❖ Optimum capi
Slide 27: Platform of choice for third party brands
6 Platform of choice for third party brands looking to expand in India Why brands prefer Metro platform MARKET POSITION STORE ECONOMICS OMNI CHANNEL PRESENCE WIDE REACH • Long track record of • Healthy store economics by • Presence across EBO/MBOs, • PAN India Presence successfully incubating and op
Slide 28: Board of Directors
7 Board of Directors1 ARUNA BHAGWAN ADVANI, ARVIND KUMAR SINGHAL, MANOJ KUMAR MAHESHWARI, IQBAL HASANALLY DOSSANI, Independent Director Independent Director Independent Director Whole Time Director ❖ Holds bachelor’s degree in science ❖ Holds Bachelor of Engineering degree ❖ Holds bachelor’s degree
Slide 29: Strong promoter background and experienced management team
7 Strong promoter background and an experienced and entrepreneurial management team with a proven track record RAFIQUE A. MALIK, FARAH MALIK BHANJI, ALISHA RAFIQUE MALIK, Chairman Managing Director President – E-commerce and CRM ❖ Over 50 years of experience in the ❖ Over 20 years of experience in t
Slide 30: Strong track record of growth, profitability and financial discipline
8 Strong track record of growth, profitability and financial discipline Revenue from Operations Gross Profit and Gross Margins EBITDA and EBITDA Margins 17,500 16,800 57.9% 30.6% 15,450 55.6% 54.9% 54.9% 27.7% 27.5% 10,150 1,343 21.5% 410 1,217 1,285 354 337 714 777 800 668 440 172 FY19 FY20 FY21 FY
Slide 31: Levers of Growth
BRIEF OVERVIEW Q3 & 9M FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 32: Key Strategies
Key Strategies 1 3 5 2 4 Store Inorganic E-Commerce Expansion Plans Opportunities Expansion Leverage multi-channel Evaluation basis Target to open 260 Leverage existing Expand Portfolio of platform targeted returns, stores under various capabilities to increase Accessories and formats by end of FY25
Slide 33: To Summarize
To Summarize…. WIDE RANGE OF PRODUCTS SOURCING & VENDOR RELATIONS PAN INDIA PRESENCE PREFERRED PARTNER BRAND VINTAGE FOR THIRD PARTY BRANDS ALLIED PRODUCTS MULTI-CHANNEL (Accessories, Foot care, RETAIL PLATFORM Shoe care, etc.) ASSET LIGHT BUSINESS MODEL 32
Slide 34: Sustainability Initiatives & Others
BRIEF OVERVIEW Q3 & 9M FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 35: Sustainability Initiatives (1/7)
Sustainability Initiatives (1/7) Health & Well-being ❑ Partnered with The Social Lab (TSL) and launched project “Ek Kadam Aage” to empower 150 Mumbai Railway Station based Shoe Shiners covering the aspects of their livelihood, healthcare and financial literacy trainings ❑ Through Focus Humanitarian
Slide 36: Sustainability Initiatives (2/7)
Sustainability Initiatives (2/7) Environment Sustainable Footwear and Packaging • Launched vegan friendly footwear range – • Nature Pro Collection: 11 PET bottles • Our packaging boxes use filler paper made Tie-Dye Collection, made with modern, recycled to get 1 pair of shoes. of recycled & bio-degr
Slide 37: Sustainability Initiatives (3/7)
Sustainability Initiatives (3/7) Environment Solar rooftops at our warehouses Solar rooftops installed at both of our warehouses with a combined capacity of 240 KW. The solar rooftops generated 221 MWh of power. Distributed more than 18,000 footwear pairs to the less fortunate rural school children
Slide 38: Sustainability Initiatives (4/7)
Sustainability Initiatives (4/7) Environment Recycling of discarded footwear It is our long term goal to “recycle a pair for every pair we sell”. ❑ Through The Shakti Plastic Industries, we completed a pilot project for collection, sorting, transportation, processing (recycling & Pyrolysis) and co-p
Slide 39: Sustainability Initiatives (5/7)
Sustainability Initiatives (5/7) Education Through Project Nanhi Kali, we contributed towards providing access to quality education to 500 underprivileged girls from Bharuch, Gujarat and helped them complete schooling with dignity. 38
Slide 40: Sustainability Initiatives (6/7)
Sustainability Initiatives (6/7) Education Sponsored 230 underserved adolescents to develop Through UnLtd India, we supported 32 Social Entrepreneurs to leadership skills in them through football, with a focus on grow in their leadership skills through incubation support, breaking gender stereotypes
Slide 41: Sustainability Initiatives (7/7)
Sustainability Initiatives (7/7) Education Through Fidai Girls Educational Institute, we supported 72 Supported as a co-funder in Mission Vriddhi, a project children of under privileged families of Maharashtra and designed by Mantra to transform learning, teaching and Gujarat region by providing the
Slide 42: Awards & Recognition (1/2)
Awards & Recognition – (1/2) Forbes India Leadership Awards 2022 IMAGE Retail Awards IMAGE Fashion Awards Farah Malik Bhanji and Alisha Malik won the GenNext Most Admired Retailer – Footwear, 2022 India’s Most Admired Retailer, 2022 Entrepreneur award for a successful expansion and listing at the ma
Slide 43: Awards & Recognition (2/2)
Awards & Recognition – (2/2) Image Business Of Fashion PETA India – Vegan Fashion Awards DMA Asia Sparkies Awards Fashion Brand Icon – Nissan Joseph, CEO Best Vegan Shoe Line Best Conversion Campaign – SEO Recognition: Leadership Technology Excellence Awards MYNTRA – Tech Threads Award 42 Nissan Jos
Slide 44: Appendix: Industry Overview
BRIEF OVERVIEW Q3 & 9M FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 45: Industry Overview (1/2)
Industry Overview (1/2) Low per capita footwear consumption in India as compared to other countries Per Capita footwear consumption India Per Capita Consumption of Footwear (2019) Per capita consumption of footwear (pairs) 8.1 6.4 2.0 – 2.1 6.2 6.2 1.9 5.8 1.6 4.3 4.0 1.2 3.3 3.2 2.5 1.9 USA Japan U
Slide 46: Industry Overview (2/2)
Industry Overview (2/2) Organized Retail Penetration - Footwear Segment wise market composition Category wise market composition In Percentage (%) 10% 10% 10% 6% 7% 8% 38% 9% 11% 13% 35% 30% 32% 34% 31% 33% 23% 27% 28% 23% 62% 60% 58% 56% 56% 51% FY15 FY20 FY21 FY22P FY25P FY15 FY20 FY25P FY15 FY20
Slide 47: Metro Brands store formats: Metro, Mochi, Fitflop, Walkway, Crocs
Slide 48: Thank You
MAKERS (Or THANK YOU