Slide 1: Exchange cover letter for investor presentation
October 19, 2022 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: Earnings Presentation – H1 FY23
METRO BRANDS LIMITED EARNINGS PRESENTATION – H1 FY23 19th October, 2022
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: Agenda
BRIEF OVERVIEW Q2 & H1 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
Our Journey • Launch of 1st EBO • Acquisition of Launch of Launch of Cravatex Brands Ltd Started first MOCHI ties up with (Exclusive license for Store MBO MBO Hits 200 stores METRO Fila & Proline) 1977 2010 2021 1955 2000 2009 2012 2015 2022 Incorporation of Launch of • Exclusive the Company E-comme
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 672 Stores I 158 Cities I 30 States and UTs (As of Sep’22) West Tier III Metro High Street Sep’22 / South 29% 13% cities 55% (MBO) (MBO) (EBO) (MBO) (EBO) 32% 30% H1FY23 Airports Target Value 1% Location Family Youth Premium
Slide 8: Agenda
BRIEF OVERVIEW Q2 & H1 FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 9: Q2 FY23 Business Highlights
Q2 FY23 Business Highlights Standalone Consolidated In INR Crore Q2 FY23 Q2 FY22 YOY Growth% Q2 FY23 Q2 FY22 YOY Growth% Revenue 463 314 47% Revenue 476 325 47% EBITDA 143 92 56% EBITDA 148 97 52% EBITDA% 30.9% 29.1% EBITDA% 31.0% 29.9% PAT 74 50 47% PAT 78 55 41% PAT% 15.9% 16.0% PAT% 16.4% 17.0% B
Slide 10: Q2 Business Highlights (Consolidated)
Q2 Business Highlights (Consolidated) Revenue from Operations and Revenue per sq.ft Gross Profit and Gross Margins 3,900 5,900 4,700 5,700 4,900 57.5% 59.1% 57.3% 59.7% 57.4% 410 484 508 476 360 286 303 403 310 273 325 260 231 210 187 160 110 60 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q2 FY22 Q3 FY2
Slide 11: H1 Business Highlights (Consolidated)
H1 Business Highlights (Consolidated) Revenue from Operations and Revenue per sq.ft Gross Profit and Gross Margins 1,550 3,900 5,400 5,700 4,900 10,300 55.7% 57.5% 57.0% 59.7% 57.4% 58.6% 984 577 508 303 273 456 476 260 325 187 131 73 FY22 FY23 FY22 FY23 Q1 Q2 H1 Q1 Q2 H1 EBITDA and EBITDA Margins P
Slide 12: Key business updates
Key business updates Signed a share purchase agreement for 100% acquisition of Cravatex Brands Limited 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 Ltd
Slide 13: Key business updates
Key business updates Inventory buying front loaded in view of upcoming festive & wedding season Adequate inventory to cater to upcoming festive / wedding season & new store openings to avoid any sale loss due to stock outs. We are cautiously tracking prices of raw material, and we continue to en
Slide 14: Year wise Store additions
Year wise Store additions Stores 504 +9% 551 +6% 586 +6% 624 +3% 644 +5% 672 H1 : 48 Opened^ 95 57 59 87 25 37 Closed^ 10 10 24 49 5 9 Relocation^ 3 - 3 12 3 4 FY19 FY20 FY21 FY22 Jun’22 Sep’22 Metro 209 218 219 231 238 255 Mochi 136 145 145 162 168 173 Walkway 63 70 73 53 56 58 Crocs 96 118 149 178
Slide 15: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) In INR Crore Particulars Q2 FY23 Q1 FY23 Q2 FY22 H1 FY23 H1 FY22 FY22 Revenue from Operations 463 497 314 961 440 1,312 Other Income 12 9 17 21 33 58 Total Income 475 506 332 981 474 1,371 EXPENSES Purchases of stock-in-trade 286 258 153 544 238 684 Changes in in
Slide 16: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) In INR Crore Particulars Q2 FY23 Q1 FY23 Q2 FY22 H1 FY23 H1 FY22 FY22 Revenue from Operations 476 508 325 984 456 1,343 Other Income 12 9 17 21 33 59 Total Income 488 517 342 1,005 489 1,402 EXPENSES Purchases of stock-in-trade 295 263 155 558 245 700 Changes i
Slide 17: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Balance Sheet In INR Crore As at As at As at As at Particulars September 30, Particulars March 31, 2022 September 30, 2022 March 31, 2022 2022 Non-current assets Equity Property, plant and equipment 252 235 Equity share capital 136 136 Capital work-in-progress 13 6 Other
Slide 18: Cash Flow statement (Consolidated)
Cash Flow statement (Consolidated) In INR Crore For the six month period For the six month period Particulars ended ended September 30, 2022 September 30, 2021 Cash flow from Operating Activities Profit/(loss) before tax for the year 242 56 Add: Non-cash items/re-classification 92 57 Operating profi
Slide 19: Agenda
BRIEF OVERVIEW Q2 & H1 FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 20: 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 21: 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 Sep’22) …with diversified presence across regions2 551 586 624 672 13% 14% 13% 16% 13% 15% 14% 15% 23% 21% 24% 22% 25% 25% 23% 21% 31% 32% 31% 31
Slide 22: 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) 2.7% 2.5% 11.6%7.
Slide 23: 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 Fitflop Skecher
Slide 24: 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 Average Realization P
Slide 25: 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 26: 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 27: 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 28: 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 29: 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 30: Promoters and Key Managerial Personnel
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 31: 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% 27.7% 54.9% 54.9% 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 32: Agenda
BRIEF OVERVIEW Q2 & H1 FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 33: 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 34: 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 33
Slide 35: Agenda
BRIEF OVERVIEW Q2 & H1 FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 36: Sustainability Initiatives (1/6)
Sustainability Initiatives (1/6) 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 Contributed towards Capex f
Slide 37: Sustainability Initiatives (2/6)
Sustainability Initiatives (2/6) 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 38: Sustainability Initiatives (3/6)
Sustainability Initiatives (3/6) 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. Recycling of discarded footwear We are running a project for collection, sorting, transp
Slide 39: Sustainability Initiatives (4/6)
Sustainability Initiatives (4/6) Environment Distributed more than 18,000 footwear pairs to the less fortunate rural school children of Maharashtra, Gujarat, Odisha and Telangana 38
Slide 40: Sustainability Initiatives (5/6)
Sustainability Initiatives (5/6) Education Through Project Nanhi Kali, we contributed towards Sponsored 230 underserved adolescents to Through UnLtd India, we supported 32 Social providing access to quality education to 500 develop leadership skills in them through Entrepreneurs to grow in their lea
Slide 41: Sustainability Initiatives (6/6)
Sustainability Initiatives (6/6) Education Through Fidai Girls Educational Institute, we supported 80 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) Economic Times Awards Forbes India Leadership Awards 2022 IMAGE Fashion Awards Iconic Brands of India Award, 2022 Farah Malik Bhanji and Alisha Malik won the GenNext India’s Most Admired Retailer, 2022 Entrepreneur award for a successful expansion and listing at the mark
Slide 43: Awards & Recognition (2/2)
Awards & Recognition – (2/2) Recognition Leadership MAPIC India Retail Awards India Retail Champions Award, Farah Malik Bhanji featured on the Forbes’ Most Admired Retailer of the year Retailers Association of India Asia’s Power Businesswomen 2021 Footwear Category, 2021 Footwear category,2021 IMAGE
Slide 44: Appendix: Industry Overview
BRIEF OVERVIEW Q2 & H1 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 collage
Slide 48: Thank You
“4 ll MAKERS ‘OF THANK YOU