Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q4 FY2020 Earnings Presentation
56 slides from Shoppers Stop's earnings presentation, Jun 15, 2020
Slide 1: Outcome of the Board meeting cover letter
SEC/12/2020-21 June 15, 2020 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra-Kurla Complex, Bandra (East), Mumbai 400 001. Mumbai 400 051. Stock Code : 532638 Stock Symbol : SHOPERSTOP Dear Sirs, Sub.: Outcome of the Board me
Slide 2: Statement of Standalone and Consolidated Financial Results
Shoppers Stop Limited Registered Office: Umang Tower”, 5th Floor, Mindspace, Off.Link Road, Malad (West), Mumbai 400 064. Tel: (+91 22) 42497000 ; Website : www.shoppersstop.com. E-mail : investor@shoppersstop.com. CIN: L51900MH1997PLC108798 PART I : STATEMENT OF STANDALONE AND CONSOLIDATED FINANCIA
Slide 3: Statement of Assets & Liabilities
Notes to results : 1 STATEMENT OF ASSETS & LIABILITIES (Rs.in Crs) Standalone Consolidated As at As at As at As at 31 March 2020 31 March 2019 31 March 2020 31 March 2019 Particulars (Audited) (Audited) (Audited) (Audited) A) ASSETS NON-CURRENT ASSETS Property, Plant and Equipement 501.71 535.51 506
Slide 4: Statements of Cash Flows
2 STATEMENTS OF CASH FLOWS (All amounts in Rs. Crs) Standalone Consolidated For the year For the year ended For the year For the year Particulars ended 31 March 31 March 2019 ended 31 March ended 31 March 2020 (Audited) (Audited) 2020 (Audited) 2019 (Audited) Cash flows from operating activities Net
Slide 5: Notes to financial results
Notes : 3 The above financial results have been prepared in accordance with Indian Accounting Standards as prescribed under section 133 of the Companies Act 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time. 4 The Company is primarily engag
Slide 6: Independent Auditor's Report on Consolidated Financial Results
Charted Accountants 12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Mumbai – 400 028, India Tel: +91 22 6819 8000 Independent Auditor’s Report on the Quarterly and Year to Date Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and D
Slide 7: Consolidated Review Report, page 2
Charted Accountants Shoppers Stop Limited Consolidated Limited Review Report Page 2 of 4 responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence obtained by us and other auditors in terms of their reports referred to in “Other Matter” paragra
Slide 8: Consolidated Review Report, page 3
Charted Accountants Shoppers Stop Limited Consolidated Limited Review Report Page 3 of 4 exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the b
Slide 9: Consolidated Review Report, page 4
Charted Accountants Shoppers Stop Limited Consolidated Limited Review Report Page 4 of 4 matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. We also performed procedures in accordance with the Circular No. CIR/CFD/CMD1/44/2019 dated March 29,
Slide 10: Independent Auditor's Report on Standalone Financial Results
Charted Accountants 12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Mumbai – 400 028, India Tel: +91 22 6819 8000 Independent Auditor’s Report on the Quarterly and Year to Date Audited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations
Slide 11: Standalone Review Report, page 2
Charted Accountants Shoppers Stop Limited Standalone Limited Review Report Page 2 of 3 Management’s Responsibilities for the Standalone Financial Results The Statement has been prepared on the basis of the standalone annual financial statements. The Board of Directors of the Company are responsible
Slide 12: Standalone Review Report, page 3
Charted Accountants Shoppers Stop Limited Standalone Limited Review Report Page 3 of 3 · Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors. · Conclude on the appropriateness of the Board of D
Slide 13: Income Statement Standalone Q4 and FY2020
INCOME STATEMENT - STANDALONE FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2020. (Rs.in Crores) Particulars Non - GAAP Financials GAAP Financials Particulars Non - GAAP Financials GAAP Financials Q4-20 Q4-19 Gr% Q4-20 Q4-19 Gr% 2019-20 2018-19 Gr% 2019-20 2018-19 Gr% Revenue 915.5 1,044.3 -12.3% 709.2
Slide 14: Shoppers Stop Reported Revenue of Rs. 916 Crs and EBITDA Loss of Rs.17 Crs
Press Release for Immediate Distribution Shoppers Stop Reported Revenue of Rs. 916 Crs And EBITDA Loss of Rs.17 Crs in Q4FY20 Mumbai, June 15, 2020: Shoppers Stop Ltd. (NSE: SHOPERSTOP | BSE: 532638) reported Sales of Rs.916 Crs and EBITDA Loss of Rs.17 Crs in the quarter (Non-GAAP). GAAP adjusted;
Slide 15: Press release: For the Quarter
For the Quarter Against a challenging Lockdown period, temporary store closures, strong base of Q4 FY19, and a subdued retail landscape, the Revenue growth was muted LTL (16%), though in January and February LTL growth was 2.4%. The company proactively increased its productivity and efficiencies by
Slide 16: About Shoppers Stop Limited
About Shoppers Stop Limited: Shoppers Stop Ltd. is the nation’s leading premier retailer of fashion and beauty brands established in 1991. Spread across 89 department stores in 44 Cities, the company also operates premium home concept stores (11 Stores), 132 Specialty Beauty stores of M.A.C, Estée L
Slide 17: Q4 | FY20 Quarterly Performance
Q4 | FY20 QUARTERLY PERFORMANCE
Slide 18: Table of Contents
Table of Contents 01. 02. 03. ABOUT US OUR COVID OUR STRATEGIC RESPONSE PILLARS 05. Q4 HIGHLIGHTS & COMPANY FINANCIALS 04. NEW STORE ADDITIONS
Slide 19: About Us: Company at a Glance
O01. ABOUT US Company at a Glance
Slide 20: Company at a Glance
1M 500+ Customer Fashion & Visits Beauty Brands 4.5M 293 Retail Space Stores Largest 7.5k Department Talent Pool Store Chain in + 14.9k Brand India Associates
Slide 21: Footprint in India
ad FootPrint in India 293 Stores (March 20) ; 4.5M sq.ft if y Stor “CROSSWORD - Additional 38 Franchisee Stores rt
Slide 22: Our Customers
Our Core customer is a young family where the woman is the primary influencer. These upwardly mobile, middle to high income families, shop across our Stores for the widest selection of brands. We have a fast growing young customer base of 18-25 years age. These customers are shopping premium product
Slide 23: Digital Footprint
Digital 67 Footprint VISITS ONLINE 9.7M+ MOBILE APP. DOWNLOADS, 25,000+ PIN CODE COVERAGE 68 STORES MOBILE ENABLED BILLING 18% OMNI CHANNEL FIRST CITIZEN MIX
Slide 24: ESG initiatives
5 S 6 PROMOTED GENDER EQUALITY, DIVERSITY & INCLUSIVENESS 40% Female Staff Structured Policies for Working Mothers ENVIRONMENT Sustainable Brands Sustainable Organisation REDUCED PLASTIC CONSUMPTION BY 40 TONS Paper Bags instead of Plastic SAVED 2000 TONS OF PAPER Re-using IM Carton Boxes SOCIAL (CS
Slide 25: 9
9
Slide 26: Our Covid Response
Our Covid : Response ©----:: BUSINESS CONTINUITY MANAGING COSTS AND CASH FLOW OMNI CHANNEL ECOMMERCE & AMAZON ACCELERATING TECHNOLOGY TRANSFORMING WORKPLACE AND TALENT 1. Customer Engagement during Lockdown 2. Introduction of PPE Kits 1. Re-negotiated Contracts including Leases 2. Liquidity Manageme
Slide 27: Safety measures: Aarogya Setu mandatory
Aarogya Setu Mandatory for Employees and Customers Aarogya Setu es i Health Check Up Contactless Billing WOW for all Staff members Merchandise is Displayed and Delivered under High Hygiene Standards Face Masks and Gloves Compulsory Deep Cleaning of Stores, Warehouses and Office at Regular Intervals
Slide 28: Our Strategic Pillars
03. OUR STRATEGIC PILLARS
Slide 29: Key Growth Engine: First Citizen
KEY GROWTH ENGINE = Revenue contribution : 79%, 5+% YoY - Repeat purchases : 69%, 4+% YoY - New enrollment in Q4 : 0.IM+ - New enrollment in FY20 : 0.9M+ 7M PROGRAM MEMBERS 79%+ CONTRIBUTION TO COMPANY SALES
Slide 30: Personal Shopper
13% - Exclusive PS Lounge, Trial Rooms and No-Queue Billings CONTRIBUTION - Personal Shopper @ Home TO TOTAL - 10,000+ hours of training every year SALES ee : :" si T Aye ) <Pefsonal te a = 2.7X AVERAGE PROVIDING A DELIGHTFUL SHOPPING EXPERIENCE TICKET SIZE THROUGH PERSONAL SHOPPERS - Consistent Cus
Slide 31: Contribution to Business
CONTRIBUTION TO BUSINESS Private & Exclusive
Slide 32: Continued Dominance in Beauty
CONTINUED DOMINANCE IN BEAUTY SEGMENT ACROSS ALL CHANNELS. 150+ 4 6 NEW STORES IN Q@4: BEAUTY BRANDS - 1 Standalone MAC store at Ranchi . - 4 Shop-in-Shops : 3 MAC stores at Varanasi, Kozhikode and 18% Hyderabad, 1 Clinique store at Hyderabad CONTRIBUTION - 1 Multi-Brand Beauty store Arcelia at Hyde
Slide 33: New Store Additions
04. = — NEW STORE ADDITIONS
Slide 34: Capex spend of Rs.200+ Crs through internal accruals
CAPEX SPEND OF Rs.200+ Crs. THROUGH OUR INTERNAL ACCRUALS During the quarter, we opened 3 department stores, 6 beauty stores and 5 airport doors FY20 STORE OPENINGS 11 DEPARTMENT STORES 22 BEAUTY STORES 05 B AIRPORT @ DOORS
Slide 35: Q4 Openings: Department Stores
Q@4 OPENINGS 03 DEPARTMENT STORES _ 19
Slide 36: Sarath
. ee Sarath 20
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23
Slide 38: HiLite Mall, Kozhikode
\ HiLite Mall, Kozhikode 22
Slide 39: Beauty Store Openings
1 Multi-Brand Beauty Store Arcelia at Hyderabad Airport 1 Standalone MAC, Ranchi 4 Shop in Shops - MAC at Varanasi, Kozhikode and Hyderabad and Clinique at Hyderabad 23 a4 OPENINGS 06 BEAUTY STORES i ’
Slide 40: Q4 Openings: Airport Doors
Q@4 OPENINGS os AIRPORT DOORS at H ad SS Studio SS Black Mithaas - Domestic & International Terminal Department Store - International Terminal 24
Slide 41: Financial Overview
05. FINANCIAL OVERVIEW @
Slide 42: Normalized Results
NORMALIZED RESULTS We are presenting both Actual and Normalized (For Covid-19 Impact) Income Statements for your reference. Normalized Financial Statements are based on our best estimates, which is based on immediate past trends and actual Operational Data for January, February and large part of Mar
Slide 43: Financial Overview: Financials Q4-20
FINANCIAL OVERVIEW –FINANCIALS Q4-20 Rs.in Crs PARTICULARS ACTUAL % NORMALIZED % LY % ACTUAL GR% NORMAL GR% Revenue 916 1,132 1,044 -12.3% 8.4% Other Income 15 1.6% 16 1.4% 16 1.5% -7.1% 4.3% Total Revenue 931 1,148 1,060 -12.3% 8.3% Margin 283 30.9% 370 32.7% 350 33.5% -19.3% 5.8% Total Cost 314 34
Slide 44: Financial Overview: Financials FY-20
FINANCIAL OVERVIEW –FINANCIALS FY-20 Rs.in Crs PARTICULAR ACTUAL % NORMALISED % LY % ACTUAL GR% NORMAL GR% Revenue 4,385 4,601 4,428 -1.0% 3.9% Other Income 62 1.4% 65 1.4% 62 1.4% 1.8% 4.8% Total Revenue 4,448 4,666 4,490 -0.9% 3.9% Margin 1,432 32.7% 1,520 33.0% 1,470 33.2% -2.6% 3.4% Total Cost 1
Slide 45: Actual: GAAP vs Non GAAP Results
ACTUAL GAAP VS NON GAAP RESULTS
Slide 46: Financial Overview: Financials Q4-20
FINANCIAL OVERVIEW –FINANCIALS Q4-20 Particulars Non GAAP Financials GAAP Financials Adjustment in Net Profit. GAAP Q4-20 Q4-19 Gr% Q4-20 Q4-19 Gr% changes Revenue 916 1,044 -12.3% 709 791 -10.4% PBT (as per Non – GAAP )- (A) -135 Other Income 15 16 -7.1% 6 5 6.8% Lease Rent ( AS 116 ) -94 TOTAL REV
Slide 47: Financial Overview: Financials FY-20
FINANCIAL OVERVIEW –FINANCIALS FY-20 Particulars Non GAAP Financials GAAP Financials Adjustment in Net Profit. GAAP changes FY20 FY19 Gr% FY20 FY19 Gr% PBT (as per Non – GAAP )- (A) -29 Revenue 4385 4428 -1.0% 3381 3481 -2.9% Lease Rent ( AS 116 ) -369 Other Income 63 62 1.8% 33 18 83.4% Finance cos
Slide 48: Financial Overview: Balance Sheet
FINANCIAL OVERVIEW –BALANCE SHEET PARTICULARS MAR,20 MAR,19 Net worth 774 978 Loan Fund 124 40 TOTAL LIABILITIES 898 1,018 Fixed Assets (WDV) 641 630 Lease Deposit 216 183 Investments in CBL & FRL 71 267 Investment in Mutual Fund 154 42 Investment Include : Inventory 470 392 Crossword Rs.35 Crs Futu
Slide 49: Financial Overview: Cash Flow
FINANCIAL OVERVIEW –CASH FLOW PARTICULARS MAR-20 MAR-19 194 221 Cash Profit from Operations (after tax) Increase in Creditors for Goods 110 43 61 -10 Increase in Other Creditors and Liabilities Increase in Inventories -78 -64 Increase in Loans & Advances & Sundry -53 39 Debtors CASH GENERATED FROM O
Slide 50: Financial Overview: Ratios
FINANCIAL OVERVIEW –RATIOS PROFITABILITY AND EFFICIENCY RATIOS YEAR TO MARCH FY20N FY20 FY19 FY18 FY17 FY16 ROE(%) 7.6% -0.4% 12.6% 9.1% 6.4% 8.9% ROCE(%) 8.6% -1.0% 12.6% 9.4% 6.3% 10.3% Inventory Days 121 142 120 116 138 Debtors Days 2 4 4 3 2 Creditors Days 57 44 50 45 51 Cash Conversion Ratio 64
Slide 51: Financial Overview: Ratios
FINANCIAL OVERVIEW –RATIOS OPERATING RATIOS YEAR TO MARCH FY20 FY19 FY18 FY17 FY16 Total Assets Turnover Ratio 4.5 4.3 3.5 3.0 2.8 Fixed Assets Turnover Ratio 6.6 6.8 6.3 6.2 5.9 Equity Turnover Ratio 5.0 4.6 4.9 5.3 4.9 VALUATIONS PARAMETER YEAR TO MARCH FY20 FY19 FY18 FY17 FY16 Adj. Diluted EPS -2
Slide 52: Way Forward
WAY FORWARD 36
Slide 53: A Perfect Storm Is Also a Perfect Opportunity
A PERFECT STORM IS ALSO A PERFECT OPPORTUNITY A pivot is essential for successfully transforming the core of our business to thrive in the new normal SCALE THE • EXPAND THE NEW CORE C NEW AT SCALE AND WITH PACE • TRANSFORMING THE B TRANSFORM ORGANIZATION INTO A TRULY THE CORE OMNICHANNEL ORGANIZATIO
Slide 54: New Normal
NEW NORMAL NOW NEXT NEW NORMAL A. Protect the “CORE” B. Transform the “CORE” C. Scale the “NEW” 1 3 RING FENCE FIRST CITIZENS 7 BUSINESS CONTINUITY • Develop improved offering and services to THE NEW NORMAL • Employee safety ensure we lock-in First Citizen into Shoppers • Trust in brand Shoppers Sto
Slide 55: Disclaimer
DISCLAIMER Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of applicable securities laws and regulations, and which involve number of risks and uncertainties, beyond the control of the Company, that could cause actual result
Slide 56: Contact investor relations