Future Consumer Limited · NSE:FCONSUMER
Future Consumer — Future Consumer Enterprise — Investor Presentation (June 2016)
29 slides from Future Consumer's investor presentation, June 2016
Slide 1: Sharing the Joy of Food
Sharing the Joy of Food June 2016
Slide 2: Contents
Contents S No Particulars Slide No 1 Integrated Food & FMCG Company 03 2 FY 15-16 At a Glance 04-05 3 Brands 06 – 13 4 Distribution 14 -15 5 Sourcing & Manufacturing 16 – 17 6 Key Management & Board of Directors 18-21 7 Financial Snapshot 22 - 24 8 Fund Raise Underway 25 - 26 9 Shareholding Post Fun
Slide 3: Integrated Food & FMCG Company
Integrated Food & FMCG Company Food & FMCG Brands Two Strong Pillars Supporting the Furtherance of Business Purpose Distribution Network Sourcing & Manufacturing • Access to a vast network of over 800 retail outlets including • Strong presence in sourcing of agri commodities and fresh hypermarkets a
Slide 4: FY 15-16 At a Glance (1/2)
FY 15-16 At a Glance (1/2) 1 Achieved a robust top line growth of 34% 2 Gross Margins stood at 16%; Significant improvement of 265 bps YoY 3 EBITDA turned positive to ₹ 30 mn on an annual basis 4 Tied up ~US$ 75mn from marquee investors Proterra, IFC and Promoters Well poised to achieve high growth
Slide 5: FY 15-16 At a Glance (2/2)
FY 15-16 At a Glance (2/2) 1 Commissioned Oats manufacturing facility in Sri Lanka •Food Park witnessed good traction with a visible pipeline of customers 2 •Rice Mill, Wafer Mill & Packaging Unit construction progressing well Seasoned management team on board, highly experienced heads for Manufactu
Slide 6: Brands
BRANDS
Slide 7: Portfolio: Key Brands and Categories
Portfolio: Key Brands and Categories Brands Business Constituted ~78% of Our Top Line in FY16 Lentils, Dry Milk, Butter, Fruits, Oils, Cheese, Cream, Bread, Buns, Flour, Pulses, Paneer, Curd, Cookies, Rusk, Cereals, Spices, Butter Milk, Drops Oilseeds Yogurt, Spreads Staples (63%) Dairy & Bakery (15
Slide 8: Broad Portfolio of Branded Commodities
Broad Portfolio of Branded Commodities Entering into high margins products such as specialty flour, rice bran oil, olive oil among others 8
Slide 9: Expanding Dairy and Bakery Footprint / Portfolio
Expanding Dairy and Bakery Footprint / Portfolio • Nilgiris operates a wide & integrated portfolio of dairy & bakery products • Commenced Bangalore based milk procurement for ~2,000 litres per day, extending sourcing to Karnataka • Catering to Delhi market via strategic tie ups with leading dairy ma
Slide 10: Personal and Home Care
Personal and Home Care | ha | FUTURE” CONSUMER ENTERPRISE LIMITED Witly the onset Uve ew year, WM ‘ve “on th . beauby ew U e go! kara 10
Slide 11: Broad Range of Value Added Products
Broad Range of Value Added Products 11
Slide 12: International Tie-ups with Global Brands
International Tie-ups with Global Brands Sunkist, a $1.2 billion global brand with around 700 SKUs in 77 countries Exclusively licensed for distribution in India Mibelle is a division of Migros Group – the largest retailer in Switzerland with an interest in various retail / consumer related business
Slide 13: Co-Promotion Campaigns with leading FMCG Companies
Co-Promotion Campaigns with leading FMCG Companies 13
Slide 14: Distribution
(4) DISTRIBUTION
Slide 15: 3 Pronged Distribution Strategy
3 Pronged Distribution Strategy Expanding Modern Trade & Franchised Convenience Stores Access to Future Group’s Retail outlets General Trade Distribution • Network of franchised stores Strong network of big format and small Making in roads in Modern Trade focusing on urban and rural markets format s
Slide 16: Sourcing & Manufacturing
IMI souRCING & [FP MANUFACTURING
Slide 17: Created Strong Backend Infrastructure
Created Strong Backend Infrastructure Sourcing Strengths Dairy & Bakery Facilities Other Facilities • Created fully integrated agri- Dairy Oats Facility in Sri Lanka commodity sourcing capabilities • One manufacturing facility near • Recently launched an Oats • 51 sourcing hubs across the Bangalore
Slide 18: Key Management & Board of Directors
Key Management & Board of Directors
Slide 19: Business Backed by Strong Management Team
Business Backed by Strong Management Team Kishore Biyani – CEO Future Group, Vice Chairman FCEL • Kishore Biyani is the founder and Group CEO of Future Group • Widely credited as the pioneer of modern retail industry in India, he is a mentor and role model for many Indian entrepreneurs • Has over 25
Slide 20: Business Backed by Strong Management Team
Business Backed by Strong Management Team Devndra Chawla – Head Food & FMCG Brands Murali Krishan – Head Dairy & Bakery o Worked as VP & Head of Merchandising & Format at o Joined Future Group, post the acquisition of Nilgiris Reliance Fresh by FCEL in November 2014 Brands o Served at Coca Cola as G
Slide 21: Effective Board Members with Vast Experience
Effective Board Members with Vast Experience G. N. Bajpai, Chairman Deepak Malik Adhiraj Harish o Previously been the Chairman of SEBI, o Acting representative of Proterra o Member of the Bar Council of Maharashtra LIC, the Corporate Governance Task Investment Partners & Goa and has been practicing
Slide 22: Financial Snapshot
Financial Snapshot
Slide 23: Financial Performance Overview
Financial Performance Overview FY16 vs FY15 EBITDA Turnaround – FY16 Top Line Growth 34% EBITDA (₹ mn) 30 Gross Margin 16% (%) 265 bps (185) FY 15 FY 16 EBITDA ₹30mn Performance improvement on the back of revenue growth and gross margin expansion ₹215mn Note: Convenience stores have been franchised
Slide 24: Consolidated Financials
Consolidated Financials Income Statement Balance Sheet (1) 12M Ended As of Particulars (In ₹ mn) FY16 FY15 Particulars (In ₹ mn) 31-Mar-16 31-Mar-15 Total Operating Income 17,578 13,166 Shareholders' Funds 6,765 7,696 Y-o-Y Growth (%) 34% Minority Interest 215 338 Gross Margin 2,814 1,759 Net Debt (
Slide 25: Fund Raise Update
Fund Raise Update
Slide 26: Tied Up US $75mn from Marquee Investors & Promoters
Tied Up US $75mn from Marquee Investors & Promoters FCEL had proposed to raise US$75mn enabling the Company to meet the following objectives: • Enhance Balance Sheet profile by repayment of debt • Fund growth plans This US$75 mn fund raise has been successfully tied up as below: US$ 45mn (Completed)
Slide 27: Marquee Consumption Focused Funds Invested in FCEL
Marquee Consumption Focused Funds Invested in FCEL Shareholding Post Allotment to Proterra / Promoter and IFC # Post Proterra, Promoter and IFC Allotment* Shareholder Category Number of Shares % Promoters 75,16,88,794 40.03% Institutional Investors 49,34,12,827 26.28% Arisaig Partners 15,20,43,000 8
Slide 28: The Road Ahead..
The Road Ahead.. Strongly emerging as a leading integrated Food & FMCG Company Building a strong portfolio of brands in high margin categories Continue to build a strong distribution network across channels Pan India Roadmap to high growth with expansion of Gross Margins Leading to expansi
Slide 29: Thank You
Thank You Disclaimer This presentation may contain 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 p
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