Slide 1: FSN E-Commerce Ventures Limited
FSN E-Commerce Ventures Limited November 12, 2024 National Stock Exchange of India Limited BSE Limited Symbol: NYKAA Scrip Code: 543384 Dear Sirs, Subject: Investor Presentation We are enclosing the Investor Presentation for the quarter ended September 30, 2024, to be used by the Company for the ana
Slide 2: Investor Presentation Quarter and Half year ended September 30, 2024
Investor Presentation Quarter and Half year ended September 30, 2024 FSN E-Commerce Ventures Limited 1
Slide 3: Table of Contents
Table of Contents 1 Performance Highlights 2 Beauty Multi Brand Retail 3 Nykaa’s House of Brands 4 eB2B: Superstore by Nykaa 5 Fashion 6 Financial Performance 2
Slide 4: Performance Highlights
Performance Highlights NKAL
Slide 5: Q2FY25 Performance Summary
Q2FY25 Performance Summary GMV Revenue from Operations Gross Profit Rs. 36,525 mn Rs. 18,747 mn Rs. 8,210 mn +24% YoY Growth +24% YoY Growth +26% YoY Growth Margin* 43.8% (69 bps YoY) EBITDA PBT PAT** Rs. 1,037 mn Rs. 213 mn Rs. 130 mn +29% YoY Growth +60% YoY Growth +66% YoY Growth Margin* 5.5% (
Slide 6: Strong revenue performance across Beauty and Fashion
Strong revenue performance across Beauty and Fashion Beauty (Rs mn) Fashion (Rs mn) 29% YoY 28% YoY 10% YoY 12% YoY 53,263 16,374 14,630 41,467 GMV 27,833 8,633 21,559 7,872 Q2FY24 Q2FY25 H1FY24 H1FY25 Q2FY24 Q2FY25 H1FY24 H1FY25 24% YoY 24% YoY 22% YoY 22% YoY 32,964 3,147 26,679 2,590 Revenue 17,0
Slide 7: One Nykaa: Key Highlights
One Nykaa: Key Highlights Customers Beauty Stores Quicker Delivery 6,800+ brands Launched 170+ brands in Beauty 37 mn 210 70% of and 260+ brands in Fashion Cumulative Customer Stores Beauty orders delivered within Base Largest beauty retail same/next day in top 110 cities network in India [31% YoY]
Slide 8: Beauty Multi Brand Retail
Beauty Multi Brand Retail 7
Slide 9: Beauty witnessed strong GMV growth of 29% YoY
Beauty witnessed strong GMV growth of 29% YoY Investment in new customer acquisition paying GMV (Rs mn) off with healthy growth of 31% YoY Focus on premium fragrance playing out well 29% YoY with category growing ahead of platform 27,833 Executed flagship Hot Pink Sale with 23 mn unique visitors ove
Slide 10: Nykaaland 2024: 2nd edition of India's biggest beauty festival
Nykaaland 2024: 2nd edition of India’s biggest beauty festival, resounding success 25,000 1,000+ beauty enthusiasts’ content creators footfall [1.7x of last year] Masterclasses by Sofia Tilbury, Patrick Ta and more… 5,000+ participants 80+ iconic international and domestic brands participation New l
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Slide 12: New Brand Launches – Expanding our offerings for every beauty needs
New Brand Launches – Expanding our offerings for every beauty needs Snapshots from some marquee brand launches * * One of the most renowned luxury Premium skincare brand from Leading global luxury haircare brand Korean skincare brand from The Beiersdorf possessing the ‘Life colour cosmetics brands f
Slide 13: Nykaa Fragrance Collective: Driving discovery and engagement
Nykaa Fragrance Collective: Driving discovery and engagement Fragrance store on Nykaa Fragrance Collective Event (held in Jul’24) Exclusive Brand Displays 10 mn+ Online reach Homepage activations Luxe Store page Fragrance category growth ahead of 200+ KOL’s, Influencers, Brand Partners overall Beaut
Slide 14: India's largest specialized beauty store network
India’s largest specialized beauty store network Store Count (#) 210 165 2.0 lakh+ sq. ft. 121 retail space [~25% YoY] Q2FY23 Q2FY24 Q2FY25 53 61 72 Cities Contribution to 7.3% 7.5% 8.2% Omnichannel Beauty GMV* Strong growth in financial metrics KIOSK 91 73 46 stores stores stores ~40% ~60% GMV 3yr
Slide 15: Driving customer delight through faster delivery across the network
Driving customer delight through faster delivery across the network Same Day Delivery (SDD) Next Day Delivery (NDD) Applicable for orders placed by Applicable for orders placed by customers before 12 PM on the customers after 12 PM, order same day fulfilled by next day % of order volume covered Curr
Slide 16: Nykaa's House of Brands
Nykaa’s House of Brands FASHION 15
Slide 17: Beauty House of Brands: ~50% YoY growth
Beauty House of Brands: ~50% YoY growth GMV of Beauty owned brands (Rs mn) GMV Channel Mix 48% YoY 3,602 21% Rs Q2FY25 3,602 51% 2,438 16% mn 12% Nykaa Online Nykaa Stores GT/MT (including eB2B) 12% Others* Q2FY24 Q2FY25 19% Rs 2,438 56% Q2FY24 mn Driven by strong growth in Dot & Key and Kay Beauty
Slide 18: Fashion House of Brands: Healthy growth on Nykaa platforms
Fashion House of Brands: Healthy growth on Nykaa platforms GMV of Fashion owned brands (Rs mn) GMV Channel Mix 10% YoY 1,088 19% 991 Rs Q2FY25 1,088 20% mn 57% 4% Nykaa Online Nykaa Stores (Nykd EBOs) GT/MT 22% Q2FY24 Q2FY25 3P channels* Rs Q2FY24 991 53% GMV growth from 3P channels (-3% YoY) was mn
Slide 19: eB2B: Superstore by Nykaa
eB2B: Superstore by Nykaa 18 19
Slide 20: Driving GMV growth as Superstore continues to widen reach
Driving GMV growth as Superstore continues to widen reach GMV (Rs mn) Cumulative Transacting Retailers (‘000) 80% YoY 60% YoY 3x 235 3x 147 74 Q2FY23 Q2FY24 Q2FY25 Q2FY23 Q2FY24 Q2FY25 Cities 500+ 750+ 1,060+ 19
Slide 21: Strong order growth YoY with improvement in AOV
Strong order growth YoY with improvement in AOV Orders (‘000) AOV (Rs) 45% YoY 406 16% YoY 280 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Driven by retailer network expansion Increasing share of premium brands and featured brands 20
Slide 22: Contribution Margin improvement of 862 bps YoY
Sales mix, scale and efficiencies leading to unit economics improvement Gross Margin* Fulfilment Cost* Selling & Distribution Cost* 334 bps 205 bps 341 bps Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 • Higher Ad-Income • Moving from 3P to owned warehouses • Improving BDE Productivity • Increasing shar
Slide 23: Fashion
Fashion FASHION 23
Slide 24: Strong content revenue in LBB driving overall higher revenue growth
Strong content revenue in LBB driving overall higher revenue growth GMV (Rs mn) Revenue (Rs mn) Existing Customers New Customers 10% YoY 22% YoY 8,633 7,872 1,661 44% 54% 1,365 46% 56% Q2FY24 Q2FY25 Q2FY24 Q2FY25 Revenue growth higher than GMV growth, driven by strong performance by LBB (marketing i
Slide 25: Foot Locker: Globally renowned sneaker retailer now live on Nykaa platforms
Foot Locker: Globally renowned sneaker retailer now live on Nykaa platforms Nykaa Fashion launched Foot Locker live on Nykaa Foot Locker India Website Video_20241016_121103_347.mp4 India opportunity (2027) $6.5 bn (Athletic and Sneakers footwear) 24 Source: Forbes
Slide 26: New Brand Launches – Bringing in more curated offerings
New Brand Launches – Bringing in more curated offerings 260+ brands launched in Q2FY25 Key Collections Puma Palermo Collection Nykd X Jodi – Limited Collection Twenty Dress X Happi Space Collection 26
Slide 27: Platform of choice for all things new in fashion
Platform of choice for all things new in fashion First in Fashion 25% GMV YoY Delivering latest and curated fashion collections to the Indian customers from both global and domestic brands * Total brand count as on Sep’24 26 Data is for First in Fashion on NykaaFashion.com
Slide 28: Significant expansion of 300 bps YoY in profitability
Significant expansion of 300 bps YoY in profitability Q2FY25 Q2FY24 Fashion Vertical (as % of NSV) (as % of NSV) YoY Change Driving factors Marketing and services Gross Margin 49.7% 44.0% 567 bps related income Shift from air to land Fulfilment expenses 9.1% 11.8% 262 bps shipment, saving on packa
Slide 29: Financial Performance
Financial Performance NIA 28
Slide 30: Topline growth and profitability momentum continues
Topline growth and profitability momentum continues GMV (Rs mn) Revenue (Rs mn) 24% YoY 24% YoY 25% CAGR 36,525 23% CAGR 18,747 29,435 15,070 23,457 12,308 Q2FY23 Q2FY24 Q2FY25 Q2FY23 Q2FY24 Q2FY25 EBITDA (Rs mn) PAT (Rs mn) 29% YoY 66% YoY 30% CAGR 58% CAGR 1,037 130 806 611 78 52 Q2FY23 Q2FY24 Q2F
Slide 31: Profit and Loss Statement
Profit and Loss Statement All amounts in Rs mn, unless otherwise stated Particulars Q2FY25 Q2FY24 YoY H1FY25 H1FY24 YoY Revenue from Operations 18,747 15,070 24% 36,209 29,288 24% Gross Profit 8,210 6,496 26% 15,770 12,682 24% Gross Margin 43.8% 43.1% 69 bps 43.6% 43.3% 25 bps Fulfilment expenses 1,
Slide 32: Quarterly Vertical Performance: Business Wise
Quarterly Vertical Performance: Business Wise (All amounts in Rs mn, unless otherwise stated) Q2FY25 Q1FY25 Q2FY24 Particulars Beauty Fashion Total1 Beauty Fashion Total1 Beauty Fashion Total1 GMV 27,833 8,633 36,525 25,429 7,741 33,209 21,559 7,872 29,438 Growth 29% 10% 24% 28% 15% 25% 25% 27% 25%
Slide 33: Key movements in P&L
Key movements in P&L Cost line items Rationale • Beauty gross margin improvement with strong owned brands performance • Expansion of Fashion gross margin driven by LBB marketing income, services Gross margin expansion of 119 bps YoY related income • Superstore gross margin expansion led by higher sh
Slide 34: Cumulative customer base grew by 31% YoY
Cumulative customer base grew by 31% YoY One Nykaa AUTC (mn) One Nykaa Cumulative Customer Base (mn) Continued long-term investment in 37.1 marketing and category building 35.0 16.8 33.2 30.9 • Investment in new customer 16.2 acquisition 15.4 28.4 26.3 14.7 24.4 22.7 • Investment in brand awareness
Slide 35: Acceleration in Beauty new customer acquisition and improved retention
Acceleration in Beauty new customer acquisition and improved retention AUTC - Beauty (mn) New Customer YoY - Beauty (%) 15.0 35% 32% 14.0 31% 28% 30% 13.7 13.0 13.1 25% 12.0 12.4 11.7 20% 11.0 11.3 10.0 17% 15% 15% 9.0 10% 8.0 5% 7.0 6.0 0% Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 8.2% 9.5% 8.6% 8.6% 9.3%
Slide 36: Brand marketing investments driving strong owned brands performance
Brand marketing investments driving strong owned brands performance Hydra Creme Lipstick Stardust Chrome Eyeliner Get Cheeky Blush Stick 35
Slide 37: Stay Stylish Flagship Campaign: Positioning Nykaa Fashion
Stay Stylish Flagship Campaign: Positioning Nykaa Fashion as the ultimate style destination 4 Brand Films with 1 Celeb & 3 High Impact KOL’s 360 degree Amplification • Owned media assets • Influencers, • Events & Activations • Media Partnerships 36
Slide 38: Efficient capex utilization
Efficient capex utilization All amounts in Rs mn, unless otherwise stated Capex (Rs mn) Capex as % of Revenue 2,500 6% Capex Breakup – H1FY25 5% 2,235 2,050 5% 2% 2,000 13% 4% 4% 1,500 47% 3% Rs 539 mn 1,150 3% 1,000 38% 724 2% 2% 539 500 1% 1% Tech Store Warehouse Office 0 0% FY21 FY22 FY23 FY24 H1
Slide 39: Focus on capital efficiency, resulting in consistent ROCE improvement
Focus on capital efficiency, resulting in consistent ROCE improvement Fixed Asset Turnover (x) Working Capital Days (#) ROCE (%) 10.5 8.3% 44 9.1 7.5% 42 7.0 6.6% 39 FY23 FY24 Q2FY25 FY23 FY24 Q2FY25 FY23 FY24 Q2FY25 Working capital days is computed on Revenue from Operations 38 ROCE is calculated b
Slide 40: Thank you
Thank you 39
Slide 41: Glossary
Glossary Term Description Unique customers identified by their email-id or mobile number who have placed at least one Order on our websites, mobile applications or physical stores during the last 12 months ended as on measurement date. Annual Transacting Customers, with respect to beauty and persona
Slide 42: Disclaimer
Disclaimer By attending the presentation or by reading the presentation slides you agree to be bound as follows: This Presentation is prepared by FSN E-Commerce Ventures Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of
Slide 43: Profit & Loss Statement
Profit & Loss Statement (All amounts in Rs mn, unless otherwise stated) Quarter Ended Half Year Ended Particulars Sep-24 Sep-23 Jun-24 YoY Growth QoQ Growth Sep-24 Sep-23 YoY Growth Revenue from Operations 18,747 15,070 17,461 24% 7% 36,209 29,288 24% Cost of goods Sold 10,537 8,574 9,901 23% 6% 20,
Slide 44: Half Yearly Vertical Performance: Business Wise
Half Yearly Vertical Performance: Business Wise (All amounts in Rs mn, unless otherwise stated) H1 FY25 H1 FY24 Particulars Beauty Fashion Total4 Beauty Fashion Total4 GMV 53,263 16,374 69,734 41,467 14,630 56,110 Growth 28% 12% 24% 26% 20% 25% NSV 30,356 5,163 35,615 24,687 4,500 29,198 Growth 23%
Slide 45: Balance Sheet
Balance Sheet (All amounts in ₹ million, unless otherwise stated) As at As at As at As at Particulars Particulars 30 Sep’24 31 Mar’24 30 Sep’24 31 Mar’24 Assets Equity and liabilities Equity Non-Current Assets Equity share capital 2,858 2,856 Property, plant and equipment 2,352 2,358 Other equity 10
Slide 46: Cash Flow Statement
Cash Flow Statement (All amounts in ₹ million, unless otherwise stated) As at As at Particulars Particulars Sep-24 Mar-24 Sep-24 Mar-24 I] Operating activities II] Investing activities Profit/(loss) before tax as per Statement of profit & loss 433 690 Purchase of Property, Plant and Equipment and ot
Slide 47: Key Operational Metrics
Key Operational Metrics Particulars Unit Q2FY25 Q2FY24 YoY Visits Beauty mn 357 286 25% Fashion mn 147 144 3% MAUV Beauty mn 34.2 29.3 17% Fashion mn 18.1 17.6 2% Orders Beauty mn 12.9 10.4 24% Fashion mn 1.8 1.8 -4% AOV Beauty Rs 2,038 1,992 2% Fashion Rs 4,464 4,061 10% AUTC Beauty mn 13.7 11.3 22