Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — FY2020 Earnings Presentation
74 slides from Aditya Birla Fashion And Retail's earnings presentation, May 27, 2020
Slide 1: Outcome of Board Meeting - Audited Financial Results
May 27, 2020 BSE Limited National Stock Exchange of India Limited Scrip code: 535755 Symbol: ABFRL Sub.: Outcome [2 of 2] of the Board Meeting of Aditya Birla Fashion and Retail Limited [“the Company”] Ref.: 1. Regulation 30 and 33 of the Securities and Exchange Board of India (Listing Obligations a
Slide 2: Audited Standalone Financial Results Q4 and FY2020
Aditya Birla Fashion and Retail Limited STATEMENT OF AUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED MARCH 31, 2020 1':inCrore Quarter ended Vear ended Sr. Particulars Milrch 31, 2020 December 31, 2019�· March 31, 2019 March 31, zoz'o- - March 31, 2019 No. (Audited] (Um1udited) (
Slide 3: Standalone Balance Sheet
Notes: Standalone Balance Sheet =tin Crore Asat Asat Particulars March 31, 2020 March 31, 2019 (Audited) (Audited) A 'ASSETS · Non-current assets {a) Property, plant and equipme,t 538.10 635.37 (bl C.:..,:>itai 1,vork-:n-prngre�s 40.06 :.!2.39 (c) Rght-of-use assets 2,174.43 (d) GoodwJ' 1,859,60 1,S
Slide 4: Standalone Statement of Cash Flows
Standalone Statement of Cash Flows � In Crore Year ended Year ended Particulars March 31, 2020 March 31, 2019 (Audited) (Audited) Cash flows from operating activities Profit/ (loss) before tax (9.09 ) 14 9.10 Adjustments for-: Oepreciatio:l and amortisation expense 876.82 282.33 Finance costs 419.98
Slide 5: Notes to Standalone Results
The above standalone financial results, as reviewed and recommended by the Audit Committee, have been approved by the Board of Direc tots at its meeting held on May 27, 2020. 4 The figures for tl1e quarter ended March 31, 2020 and March 31, 2019 are the balancing fip,ures between the audited figures
Slide 6: Additional Disclosures under Regulation 52(4)
14 Ad=it:cnal disclosures as per Regula.:ion 63 read w,th Reg1;·at1on 52 (.CJ of Securities and E'<change Board c: India (listing Obligauo,s and Disclosure Req01rements) Regulations, 2015: Particulars March 31, 2020 · March 31, 2oig"_' Deb! !!QUity ratio (times�' 2.31 1.15 Deb: service coverage rati
Slide 7: Independent Auditor's Report - Standalone
SR BC & CO LLP 12th Floor, The Ruby 29 Senapati Bapat Marg Dadar (West) Chartered Accountants 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 and 52 of the
Slide 8: Independent Auditor's Report - Standalone (continued)
SR BC & CO LLP Chartered Accountants application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and c
Slide 9: Independent Auditor's Report - Standalone (continued)
SR BC & CO LLP Chartered Accountants We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independ
Slide 10: Audited Consolidated Financial Results Q4 and FY2020
A.ditya Birla Fashion and Retail Limited STATEMENT OF AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER AND VEAR ENDED MARCH 31, 20ZO � In Crore Quarter ended Year ended Sr. March 31, 2070 December 11, 2019 March 31. 2019 Marth 31.1020 March 31, 2019 Particulars No. (Auditi=dJ (Unaudited) (Audi
Slide 11: Consolidated Segment Revenue, Results, Assets and Liabilities
AUDITED CONSOLIDATED SEGMENW,ISE REVENUE, RESULTS, ASSETS ANO LIABILITIES FOR THE QUARTER AND YEAR morn MARCH 31, 2020 1'/nCtC?re Quarter ended Year ended Sr. March 31, ]020 Ote�mber :31, 1019 M:i.rdi3l.201� M.;ir(h 31. 2020 March 31. 2019 Particulars No. (Audited) (Unaudited) (Audited) (Audited) {A
Slide 12: Consolidated Balance Sheet
Notes: 1 Consolidated Balance She�t � in Crore Asat A!.,'\t March Jt, 2020 March 31, 1019 Particul;us (/\udited) (Audited) !Refer note 15) {Refer ncte 15) A ASSETS I Non-current assets (a) Property, plant anC equi�me,,t 542.89 636 37 !bi Capita. work-in-progress 4<.c8 2139 (ci �ight-vf-L.se 2ssel> 2
Slide 13: Consolidated Statement of Cash Flows
2 Consolidated Statement of C;i;sh Flows "'In Crore Year ended Year ended March 31, 2020 March 31, 2019 Particulars (Audited) (Audited) Refer note 15) _ •Refer note 1S• Cash flows from operatiiig activities Profit/ (loss) before tax (32.69) 149.10 Adjustments for: Depreciation a,d amortisation e11:p
Slide 14: Notes to Consolidated Results
The above consolldated financial results, as reviewed and recommerdec oy tr'le Audit Committee, have been approved by the Soard of Cirectcrs at its rreeting held on May 27, 202:. 4 The fieu�es for the quarter ended :v1::m:h 31, 2020 a 'ld March 31, 2019 are the balancing figures bet'..veen t--ie auc
Slide 15: Independent Auditor's Report - Consolidated
SR BC & CO LLP 12th Floor, The Rul:Jy 29 Senapati Bapat Marg Dadar ( West) Chartered Accountants Mumbai - 400 028, India Tel :+912268198000 Independent Auditor's Report on the Quarterly and Year to Date Consolidated Financial Results of the Company Pursuant to the Regulation 33 and 52 of the SEBI (L
Slide 16: Independent Auditor's Report - Emphasis of Matter
SR BC & CO LLP Chartered Accountants Emphasis of Matter We draw attention to Note 13 of the Statement which describes management's assessment of the impact of the COVID 19 pandemic on the financial results of the Group. Our opinion is not modified in respect of this matter. Management's Responsibili
Slide 17: Independent Auditor's Report (continued)
SR BC & CO LLP Chartered Accountants • 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 Directors' use of the going concern basis of accoun
Slide 18: Independent Auditor's Report - Signature
SR BC & CO LLP Chartered Accountants The Statement includes the results for the quarter ended March 31, 2020 being the balancing figures between the audited figures in respect of the full financial year ended March 31, 2020 and the published unaudited year-to-date figures up to the end of the third
Slide 19: Key Highlights of Q4 and FY20 Performance
Key Highlights of Q4 and FY20 Performance - Full year revenue records 8% growth at Rs.8743 Cr.; EBITDA (Ind AS Adj.) at Rs.1290 Cr. - Company expands retail footprint; adds close to 400 retail stores through FY20. - Strong growth momentum seen across business segments pre-COVID. - COVID-19 induced e
Slide 20: COVID-19 Impact and Business Update
ABFRL had a strong Financial Year 19-20 as it crossed some key growth milestones. For the first 9 months of the fiscal, the business grew its revenue by 12% and EBITDA by 19% basis strong performance in the festive season. The business continued to grow strongly in the months of January and February
Slide 21: Business Segment Highlights
For the financial year 2020, the Company recorded sales growth of 8% at Rs. 8743 Cr. The comparable EBITDA for the period dropped by 16% to Rs. 518 Cr. During the period, the Company posted comparable PBT of Rs. 57 Cr. vs Rs. 149 Cr. last year. The Company also aggressively expanded its retail footp
Slide 22: Pantaloons and Rights Issue Corporate Action
In line with the strong growth momentum seen in the first 9 months of this fiscal year, Pantaloons posted an outstanding growth of 13% in the first two months of the fourth quarter. However, due to impact of COVID in the month of march, the reported revenue for the quarter fell by 1% to Rs. 626 Cr.
Slide 23: Disclaimer
Disclaimer : Certain statements in this “Press Release” may not be based on historical information or facts and may be “forward looking statements” within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of
Slide 24: Performance Highlights Q4 FY20
Performance Highlights Q4 FY20 1
Slide 25: COVID-19 Response
COVID-19 1 Response Distribution Network Market Update Q4 & FY Highlights COVID-19 Response Performance of Key Portfolios Way Forward Company Financials 2
Slide 26: Our response to COVID-19
Collaboration Digital Coordinated efforts with Leveraged technology to government authorities, allow remote working, NGOs, peers to support the community Our response employee training and digital marketing to COVID-19 Our People Innovation Safeguarded employees Displayed tremendous through regular
Slide 27: Distribution Network
COVID-19 Response Distribution 2 Network Market Update Q4 & FY Highlights Distribution Network Performance of Key Portfolios Way Forward Company Financials 4
Slide 28: India's widest distribution network
India’s 3 16 13 2 83 12 48 7 23 112 128 widest 14 21 14 3 110 1 286 10 33 61 36 5 96 8 7 3 4 distribution 95 68 62 93 1 1 25 10 5 37 4 25 8 76 6 365 8 network 10 306 1 43 125 14 73 31 13 6 252 6 27 158 8.1 Q4 FY20 Footprint (million sq. ft.) 2,699 342 25,000 6,514 Brand Stores Pantaloons Multi-brand
Slide 29: Market Update
COVID-19 Response Distribution Network Market 3 Update Q4 & FY Highlights Market Update Performance of Key Portfolios Way Forward Company Financials 6
Slide 30: Market Update
Market Update Strong early momentum Renewed Safety Outlook The year 2020 started with a Response to pandemic required bang; strong EOSS recorded, disproportionate focus on with positive start to fresh season employee and customer safety COVID-19 Mayhem Nation First Muted sales through March as Appar
Slide 31: Q4 & FY Highlights
COVID-19 Response Distribution Network Market Update 4 Q4 & FY Highlights Q4 & FY Highlights Performance of Key Portfolios Way Forward Company Financials 8
Slide 32: Q4 Highlights
Q4 Highlights Sustained Growth On-track expansion Comprehensive Pandemic Response Cash Focus Geared up Digitization 9
Slide 33: Strong Performance Trajectory
Strong Performance Trajectory Trends of the nine month results over the last three years testament to a consistent performance Period Revenue EBITDA EBITDA% Rev EBITDA YTD DEC Growth Growth • Revenues grew by CAGR of 13% FY18 5428 327 6.0% 8.4% -5%* • EBITDA grew from Rs. 327 Cr. to Rs. 560 Cr. FY19
Slide 34: ABFRL | Q4 Performance in two parts
ABFRL | Q4 Performance in two parts • Growth momentum continued in January & February • With this trajectory, under a normalized scenario, ABFRL would have posted a 13% growth in Q4 FY20 Period Revenue EBITDA EBITDA% Revenue EBITDA Normalized financials are based on Growth Growth management estimate
Slide 35: ABFRL | Q4 Financials
ABFRL | Q4 Financials Q4 FY20 Q4 FY20 In Rs. Cr. Q4 FY19 Actual Normalised Revenue from Operations 1,915 1,817 2,157 Other Income 24 14 14 Total Income 1,940 1,831 2,170 COGS 900 886 1,025 Unabsorbed factory costs Employee Benefits Expense 235 275 275 Rent Expense 279 319 326 ‘Fixed’ Cost in short t
Slide 36: ABFRL | Q4 Highlights
ABFRL | Q4 Highlights Standalone Financials Q4 FY20 Q4 FY20 Growth Growth Q4 FY20 Q4 FY19 (Ind AS (In Rs. Cr.) Actual Normalised Actual Normalised Adj.) Revenue 1915 1817 2157 -5% 13% 1817 EBITDA 149 -43 151 -129% 1% 173 EBITDA Margin 7.8% -2.4% 7.0% 9.5% EBIT 76 -102 92 -235% 21% -60 PBT 31 -167 27
Slide 37: Key Segments | Q4 Highlights - Revenue
Key Segments | Q4 Highlights Standalone Financials NSV Q4 FY19 Q4 FY20 Q4 FY20 Growth Growth ( In Rs. Cr.) Actual Normalised Actual Normalised Madura Lifestyle Brands 1132 1072 1267 -5% 12% Fast Fashion 80 41 51 -49% -36% Other Businesses * 107 116 140 8% 30% Madura Segment 1320 1229 1458 -7% 10% Pa
Slide 38: Key Segments | Q4 Highlights - EBITDA
Key Segments | Q4 Highlights Standalone Financials EBITDA EBITDA % Q4 FY19 Q4 FY20 Q4 FY20 Growth Growth Q4 FY19 Q4 FY20 Q4 FY20 ( In Rs. Cr.) Actual Normalised Actual Normalised Actual Normalised Madura Lifestyle Brands 169 66 161 -61% -5% 14.9% 6.2% 12.7% Fast Fashion -5 -34 -23 -6.4% -83.4% -45.6
Slide 39: ABFRL | FY20 Highlights
ABFRL | FY20 Highlights A near perfect year…….. • Lifestyle brands Aggressively expanded network; opened 400+ stores Moved to 12 month design to market cycle Doubled Women’s wear and Junior’s business Peter England’s small town format piloted successfully with over 200 stores in its first ye
Slide 40: ABFRL | FY20 Highlights - Financials
ABFRL | FY20 Highlights Standalone Financials FY20 FY20 Growth Growth FY20 FY19 (Ind AS (In Rs. Cr.) Actual Normalised Actual Normalised Adj.) Revenue 8118 8743 9082 8% 12% 8743 EBITDA 619 518 711 -16% 15% 1290 EBITDA Margin 7.6% 5.9% 7.8% 14.8% EBIT 337 269 463 -20% 37% 414 PBT 149 57 250 -62% 68%
Slide 41: Key Segments | FY20 Highlights - Revenue
Key Segments | FY20 Highlights Standalone Financials NSV FY20 FY20 Growth Growth ( In Rs. Cr.) FY19 Actual Normalised Actual Normalised Madura Lifestyle Brands 4304 4626 4821 7% 12% Fast Fashion 358 285 295 -20% -18% Other Businesses * 369 523 547 42% 48% Madura Segment 5032 5434 5663 8% 13% Pantalo
Slide 42: Key Segments | FY20 Highlights - EBITDA
Key Segments | FY20 Highlights Standalone Financials EBITDA EBITDA % FY20 FY20 Growth Growth FY20 FY20 ( In Rs. Cr.) FY19 FY19 Actual Normalised Actual Normalised Actual Normalised Madura Lifestyle Brands 519 456 551 -12% 6% 12.0% 9.9% 11.4% Fast Fashion -32 -47 -36 -9.1% -16.6% -12.2% Other Busines
Slide 43: Performance of Key Portfolios
COVID-19 Response Distribution Network Market Update Q4 & FY Highlights Performance of Key Portfolios Performance 5 of Key Portfolios Way Forward Company Financials 20
Slide 44: Lifestyle, Pantaloons, Fast Fashion, Other
Lifestyle Pantaloons Fast Fashion Other Sustained growth as Consistent growth Profitability focus Portfolio expansion the new initiatives on the back of innovative driving business model continued through scale continue to fire; products and revamped alignment up across brands exhibited exemplary br
Slide 45: Lifestyle Brands
Performance of Key Portfolios LIFESTYLE BRANDS 22
Slide 46: Lifestyle Brands Q4 Update
LIFESTYLE BRANDS Q4 Update — Continued with its strong growth momentum in Jan & Feb — Posted 10% LTL and 7% total growth, 60+ stores added Retail Network — Women’s wear grew 23% — New initiatives lived up to their promises – PE Red crossed 200 Q4 FY19 Q4 FY20 store milestone, LP Maharaja launch rece
Slide 47: Lifestyle Brands FY20 Update
LIFESTYLE BRANDS FY20 Update — Despite a tough market, Lifestyle Brands was poised to deliver a remarkable performance — Till Feb, Lifestyle brands was growing at double digit (11%) on revenue, with comparable EBITDA growth of 8% — Aggressive retail expansion saw addition of over 400 new retail stor
Slide 48: Channel-wise Revenue
Q4 FY Channel-wise Revenue (in Rs. crore) Channel-wise Revenue (in Rs. crore) Q4 FY19 Q4 FY20 FY19 FY20 Wholesale 493 411 Wholesale 1782 1749 Retail 430 458 Retail 1690 1953 Others 209 203 Others 832 924 Loyalty Base (lakhs) Q4 FY20 183 Q4 FY19 150 49% of revenues from loyal customers 25
Slide 49: Pantaloons
Performance of Key Portfolios PANTALOONS 26
Slide 50: Pantaloons Q4 Update
PANTALOONS Q4 Update — Posted exceptional performance during Jan & Feb — 19% overall growth in sales with 9.5% LTL Retail Network — Strong EOSS performance led by clear pricing architecture Q4 FY19 Q4 FY20 — Excellent response to SS20 merchandise — Encouraging acceptance to new launches – PEOPLE & S
Slide 51: Pantaloons FY20 Update
PANTALOONS FY20 Update — Posted sales of Rs. 3514 Cr. up 10% vs LY; LTL growth at 2.7% — YTD Feb sales grew at 14.6% with LTL of 6.8% — Improved product aesthetics across all apparel categories — Strengthened private label proposition in Young Fast Fashion (PEOPLE, Candies), Ethnic (Saris) and Non A
Slide 52: Category Mix and Ownership Mix
Category Mix Ownership Mix 10% 13% 36% 33% Q4 Q4 FY19 FY19 61% 20% 6% 21% Men Women's Western Own Brands Women's Ethnic MFL Kids Others Non Apps 11% 31% 14% 36% Q4 Q4 FY20 FY20 61% 17% 8% 22% 29
Slide 53: Regional Mix
Regional Mix Loyalty Base (lakhs) 27% 31% Q4 FY20 169 27% Q4 FY19 146 25% 24% 24% Q4 FY20 Q4 FY19 22% 20% *Madhya Pradesh comprising of 2% of sales has been reclassified from North to West 30
Slide 54: Other Business Segments
Performance of Key Portfolios OTHER BUSINESS SEGMENTS —Fast Fashion —Innerwear/Athleisure —Global Brands —Ethnic 31
Slide 55: Fast Fashion Q4 Update
FAST FASHION Q4 Update — Commercial renegotiation with new owners on track Restructuring — Expected to get significantly more model for favorable deal profitability — Optimistic outlook towards business profitability 32
Slide 56: Innerwear & Athleisure Q4 Update
INNERWEARINNERWEAR & ATHLEISURE Aggressive Growth Q4 Update — Innerwear business grew by ~40% for full year; now selling across 20,000 outlets — Men’s innerwear continues to expand distribution, though Q4 was impacted by March — Women’s innerwear business finding greater acceptance and customer trac
Slide 57: Global Brands Q4 Update
— The Collective format continues to post strong LTL numbers — Mono brand portfolio (Hackett, Fred Perry, Ted Baker, PRL) delivered consistent performance GLOBAL BRANDS — American Eagle on the path to be a formidable denim Q4 Update wear brand on salience and product excellence; ending the year with
Slide 58: Ethnic
Ethnic — Strengthened the organizations — Laid out long term strategy — Store launches postponed due to COVID pandemic 35
Slide 59: Way Forward
Distribution Network Market Update Q4 & FY Highlights Way Forward Performance of Key Portfolios Way 5 Forward Company Financials 36
Slide 60: Reopening: Immediate Priorities
Immediate Priorities Reopening Restoration of operations ensuring: 1. Safe shopping destination for our customers 2. Secured environment for our people to work in 37
Slide 61: Safe Shopping Destination
Deep Cleaning and Disinfection Exchanged/Returned Frequently disinfection garments to be quarantined of common surfaces Safe Mandatory Sanitized Shopping Thermal Shopping Bags Destination Screening Ground markers for Contactless billing social distancing Face masks mandatory 38
Slide 62: Secure Working Environment
Frequently disinfection of common surfaces Mandatory No Visitors Allowed Thermal Screening Cafeteria/Office Secure Virtual Meetings Transport restricted Working prescribed Environment Flexi seating/Regulated aisle Face masks mandatory usage for social distancing Shop floor restructuring for social d
Slide 63: Immediate Focus
Safety & Health Cost reduction — Safe shopping — Work with Landlords on aligning • Sanitization, rigorous social occupancy costs with business reality distancing norms, masks, — Optimization of Overheads contactless shopping and — Curtail all discretionary spends payment — Tighter material vendor ne
Slide 64: Emerging imperatives
Agile Mind-to-market — Shorter & more frequent design cycles — Analytics based merchandising — Redesigned Planning process — Automated planning & allocation Digital Commerce system — Collaborate deeper with leading 3rd party — Increased supplier coordination Emerging E Com players — Accelerate growt
Slide 65: Long term Advantages
Diversified play in all key Rich Brand Portfolio market segments — Owner of Four largest apparel fashion — Business Models: Brand and Retail brands – Louis Philippe, Van Heusen, — Price Points: Super Premium to Value Allen Solly, Peter England — Consumers: Men, women, Kids — Leading Fashion retailer
Slide 66: Consistent track record of strong financial performance
We have a consistent track record of strong financial performance FY 16 FY 17 FY 18 FY 19 FY 20N FY20A Revenue 6035 6633 7181 8118 9082 8743 Growth 10% 8% 13% 12% 8% EBITDA 405 476 501 619 711 518 EBITDA% 6.7% 7.2% 7.0% 7.6% 7.8% 5.9% ROCE 3% 7% 7% 10% 12% 7% Well placed to emerge even stronger post
Slide 67: Strengthening the Balance Sheet
Corporate action – Proposed Rights Issue Key Contours Issue Size INR 1,000 Crs Strengthening Type of Instrument, Issue Price & other terms To be decided at subsequent stage the Balance Sheet Usage of Funds Largely towards repayment of existing debt and interest cost, optimizing capital structu
Slide 68: Company Financials
Distribution Network Market Update Q4 & FY Highlights Company Performance Financials of Key Portfolios Way Forward Company 6 Financials 45
Slide 69: Reported Financials
Reported Financials Q4 FY20 Q4 FY20 FY20 FY20 In Rs. Cr. FY19 FY20 In Rs. Cr. Q4 FY19 FY19 (Comp.) (Reported) (Comp.) (Reported) Networth 1,429 1,088 Revenue from Operations 1,915 1,832 1,832 8,118 8,788 8,788 Net Debt 1,646 2,509 Other Income 24 14 17 65 52 65 Lease Liability - 2,502 Total Income 1
Slide 70: Disclaimer
Disclaimer Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements” including, but not limited to, those relating to general business plans & strategy of Aditya Birla Fashion and Retail Limited (“ABFRL"), its future outl
Slide 71: Welcome back to your safe shopping destination
Welcome back to your safe shopping destination Click on the logos to watch videos 48
Slide 72: COVID Update
COVID Update Aditya Birla Fashion and Retail Limited is India’s largest pure-play fashion and lifestyle company with a strong bouquet of leading fashion brands and retail formats. The Company has a network of 3,041 stores, presence across approximately 25,000 multi-brand outlets with 6,500+ point of
Slide 73: COVID Update - Outlook
Comprehensive training was imparted to our managerial and leadership staff in areas of functional expertise and leadership. We also leveraged Aditya Birla Group’s online resources for running programs around competency building and capability enhancement for our people Understanding the economic
Slide 74: Disclaimer
Disclaimer : Certain statements in this “Press Release” may not be based on historical information or facts and may be “forward looking statements” within the meaning of applicable securities laws and regulations, including, but not limited to, those relating to general business plans & strategy of
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