Shoppers Stop Limited · NSE:SHOPERSTOP
Shoppers Stop — Q3 FY22 Earnings Presentation
44 slides from Shoppers Stop's earnings presentation, Jan 20, 2022
Slide 1: Outcome of Board Meeting cover letter
SH()PPERS STC)P SEC/77/2021-22 January 20, 2022 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra-Kurla Complex, Sandra (East), Mumbai 400 001. Mumbai 400 051. Stock Code : 532638 Stock Symbol : SHOPERSTOP Dear Sir / Madam, Sub
Slide 2: Statement of Unaudited Standalone and Consolidated Financial Results
I~ S~!~~ ~ START SOMETHING NEW Shoppers Stop Limited Registered Office: Umang Tower", 5th Floor, Mindspace, Off.Link Road, Malad (West), Mumbai 400 064. Tel: (+91 22) 42497000; Website :www shoppersslop.com E-mail: inveslor@shoppersstop.com. CIN : L51900MH1997PLC108798 PART I ; STATEMENT OF UNAUDITE
Slide 3: Notes to financial results
PART II: 1 The above financial results have been prepared in accordance with Indian Accounting Standards as precribed under section 133 of the Companies Act 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015, as amended. ' 2 The Company is primarily engaged in the busin
Slide 4: Extract of Unaudited Financial Results
STA~T SOM[THING N[W Shoppers Stop Limited Registered Office: Urnang 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 EXTRACT OF UNAUDITED STANDALONE AND CON
Slide 5: Independent Auditor's Review Report (Standalone)
12th Floor, The Ruby SR BC & CO LLP 29 s~rrdµdli Bdµcil Mdl lJ Dadar (West) Chartered Accountants Mumbai - 400 028, India Tel :-+9T2 2 b8l9 bOOU Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 o
Slide 6: Auditor's Review Report (Standalone) page 2
SR BC & CO LLP Ch.irtered Account.ints Shoppers Stop Limited Review Report on the Quarterly and Year to Date Unaudited Standalone Financial Results Page 2 of 2 b. Litigation We draw attention to Note 3 to the unaudited financial results regarding non provision of retrospective levy of service tax fo
Slide 7: Independent Auditor's Review Report (Consolidated)
12th Floor, The Ruby SR BC & CO LLP 2') ScnJpJti BJpJt MJrg Dadar ( West J Chartered Accountants Mumbai - 400 028, India Tel · +91 77 liR19 R000 Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33
Slide 8: Auditor's Review Report (Consolidated) page 2
SR BC & CO LLP Chartered Accountants Shoppers Stop Limited Review Report on the Quarterly and Year to Date Unaudited Consolidated Financidl Results Page 2 of 2 6. Emphasis of Matter paragraph a. COVID We draw attention to Note 8 of the statement which describes management's assessment of the impact
Slide 9: Q3 FY22 Performance Highlights
PERFORMANCE HIGHLIGHTS Q3 FY22 Brand - Altlife
Slide 10: Key Highlights, Growth, Strategic Pillars, Company Financials
1 KEY HIGHLIGHTS 2 GROWTH 3 STRATEGIC PILLARS 4 COMPANY FINANCIALS Brand – Stop and Life Kids
Slide 11: Market Outlook
MARKET OUTLOOK Customer Performance Customer Sentiments are extremely positive. Sustained demand during Festive Period and Double vaccination, relaxed restriction and Marriage Season in October and November. overall improvement in safety protocol Higher ATV, increased footfall and over-all increased
Slide 12: Q3 Highlights
Q3 HIGHLIGHTS ▪ Sales grew by +34%, close to pre-covid levels ▪ Non-GAAP EBITDA grew by 5 times ▪ Q3 EBITDA @ Rs.100 Crs vs Rs.21 Crs in FY21 ▪ EBITDA Margins by +610bps ▪ Investments continue ▪ New Stores and Renovations : Capex Rs 55 Cr, Deposits Rs. 11 Crs ▪ Omni Rs. 40 Crs as Opex ▪ New Stores o
Slide 13: Operational KPI's
OPERATIONAL KPI’S Customer Entry (Mn) ASP (Rs/-) ATV (Rs/-) 10.9 1,479 1,224 4,345 6.6 3,815 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22
Slide 14: Financial KPI's - GAAP and Non-GAAP
FINANCIAL KPI’S - GAAP Sales +35% Gross Margin +170 bps EBITDA +57% 200 1070 387 100 197 794 273 126 0 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 FINANCIAL KPI’S – NON GAAP Sales +34% Gross Margin +180 bps 200 EBITDA +380% 1190 392 100 885 275 100 21 0 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22
Slide 15: Capital Efficiency KPI's
CAPITAL EFFICIENCY KPI’S Working Capital Gross Liquidity Net Surplus 60 50 -192 40 -271 30 224 207 20 10 46 13 0 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3 FY21 liquidity and Net Cash are higher due to preceding Rights Issue
Slide 16: Investing for Growth
INVESTING FOR GROWTH Dept Beauty Stores Area Stores Area Store Count as on 31st Dec21 83 4.0 163 0.2 Additions Planned in Q4FY22(Net) 5 0.2 7 New Dept Store Opening Expected Store count by FY22 88 4.2 170 0.2 In Tier II Year Total and III Additions Planned in FY23(Net) 12 0.3 10 FY20 6 11 Expected S
Slide 17: Key Highlights, Growth, Strategic Pillars, Company Financials
1 KEY HIGHLIGHTS 2 GROWTH 3 STRATEGIC PILLARS 4 COMPANY FINANCIALS Brand – Elliza Donatein
Slide 18: Store Footprint
STORE FOOTPRINT 246 Stores X X 4.29M sq.ft. Format Store count X X X Department store 83 X X X X X Home Stop 11 X X X X X Beauty Stores 129 X X X X X X Airport Doors 23 X X X X X X X Year End Store count Area X X X X FY19 225 4.17 M sq. ft. X X X FY20 252 4.38 M sq. ft. X X FY21 245 4.42 M sq. ft. X
Slide 19: Lulu Mall, Thiruvanthapuram
LULU MALL, THIRUVANTHAPURAM 11
Slide 20: EDM, Ghaziabad
EDM, GHAZIABAD ~ 2 her Pez
Slide 21: Skymark, Noida
SKYMARK, NOIDA ~ ahaa ANS, mgERS Sto, Mller.
Slide 22: MAC Maker Maxity, Mumbai
MAC MAKER MAXITY, MUMBAI —$<—~ T pee a 1a a | ) 1 | | | ae i | = . F ] q
Slide 23: Clinique Maker Maxity, Mumbai
CLINIQUE MAKER MAXITY, MUMBAI 15
Slide 24: Key Highlights, Growth, Strategic Pillars, Company Financials
1 KEY HIGHLIGHTS 2 GROWTH 3 STRATEGIC PILLARS 4 COMPANY FINANCIALS Brand- Kashish and Haute Curry
Slide 25: Strategic Pillars Performance
STRATEGIC PILLARS PERFORMANCE Vs FY21 8.1M +32% +41% +39% FIRST CITIZENS PRIVATE BRANDS BEAUTY OMNI-CHANNEL 71% 14% 17% 6% Sales Contribution
Slide 26: First Citizen
FIRST CITIZEN 1. Sales contribution: • Offline 72% • Online 42% (+160 bps vs FY21) 2. ATV +15% 3. First Citizen Black Customers • +85% New Enrollments • 4.5 Cr Annual Membership Fees • Members Annual Spend is 4x of First Citizen customers Shoppers Stop Stylist with First Citizen Customer – Carol Pin
Slide 27: Personal Shoppers
PERSONAL SHOPPERS • Contribution 10% • Average Ticket Size 3.0X • 200+ trained Personal Shoppers to provide delightful customer experience • Styling festivals at stores and Online • Extensive Tele-calling generated 1% of Store sales Sarath City, Hyderabad
Slide 28: Private Brands
PRIVATE BRANDS Sales Growth +32% vs FY21 Improvement in Margins +160 bps Cash Margin +70% • PB Contribution • Overall 14% Sales and Contribution % • Apparels 18% (+185 bps) 14% • Online 17% 14% • Kids • Growth +98% 163 • Volume growth +70% 124 • Newly launched brands: • Men’s Indianwear Brand Bandey
Slide 29: Beauty
BEAUTY Beauty Sales and Contribution % • Beauty Sales Mix - 17% (+ 75 bps) 17% • 28 New brands launched in Q3; YTD 70 Brands • Arcelia (Private Brand) 16% • Launched 40+ SKUs of Perfumes, 202 Deodorants and Sheet Masks 144 • 75+ SKUs of Makeup and Nails to be launched in Q4 Q3FY21 Q3FY22 • Makeup: +
Slide 30: Omni Channel
OMNI CHANNEL Digital Sales and Contribution % 6% • Sales grew by +39% • Revamped UI/UX led to better user traction 70 6% • 130 Lac people downloaded App • Better Customer Experience reflecting in the 51 improved App Rating of 4.4 Vs 3.4 in FY21 • Rs. 40 Cr Invested in Digital as on date Q3FY21 Q3FY2
Slide 31: Key Highlights, Growth, Strategic Pillars, Company Financials
1 KEY HIGHLIGHTS 2 GROWTH 3 STRATEGIC PILLARS 4 COMPANY FINANCIALS Brand - Treasures
Slide 32: KPI Performance Q3 FY22 vs FY21
KPI PERFORMANCE Q3 FY22 Vs FY21 35% +170 bps +57% Sales Gross Margin EBITDA GAAP 1070 387 197 NON- GAAP 1,190 392 100 34% +180 bps +380% 24
Slide 33: Financials Q3 FY22
FINANCIALS Q3 FY22 Sales and EBITDA @ pre-covid Levels Particulars Non GAAP GAAP Rs. in Crs. FY22 FY21 Gr% FY22 FY21 Gr% Revenue 1190 885 34% 1070 794 35% Adjustment in Net Profit GAAP Adj Other Income 14 6 128% 15 31 -53% PBT (as per Non GAAP) 63 Total Revenue 1204 891 35% 1085 825 32% Lease Rent (
Slide 34: Balance Sheet
BALANCE SHEET Debt Free with continued focus on Negative Working Capital Particulars Dec'21 Mar'21 Dec’20 Net worth 637 767 807 Loan Fund 194 150 178 Total Liabilities 831 917 985 Fixed Assets + Lease Deposit 724 762 786 Net Cash Rs. in Crs Investments 186 154 138 Cash & Investments 207 Inventory* 1
Slide 35: Cash Flow
CASH FLOW Positive Cash generated from operations Particulars Dec'21 Mar'21 Dec’20 Cash Profit from Operations (after tax) -12 -186 -198 Changes in Working Capital 93 -59 -46 Cash generated from Operations 81 -245 -244 Fixed Assets /Reduction in Capex Creditors -66 -78 -61 Cash generated from Operat
Slide 36: Annexures
ANNEXURES 28
Slide 37: Financials Q3 FY22
FINANCIALS Q3 FY22 Particulars Non GAAP GAAP Rs. in Crs. FY22 FY21 Gr% FY22 FY21 Gr% Revenue 1190 885 34% 1070 794 35% Other Income 14 6 128% 15 31 -53% Adjustment in net profit GAAP adj Total Revenue 1204 891 35% 1085 825 31% PBT (as per Non – GAAP) 63 Margin 392 275 42% 387 273 42% Lease Rent (Non
Slide 38: Financials YTD FY22
FINANCIALS YTD FY22 Particulars Non GAAP GAAP Rs. in Crs. FY22 FY21 Gr% FY22 FY21 Gr% Revenue 2221 1317 69% 2005 1181 70% Other Income 25 12 105% 146 198 -26% Adjustment in net profit GAAP adj Total Revenue 2246 1329 69% 2151 1379 54% Margin 706 386 83% 705 385 83% PBT (as per Non – GAAP) -137 Margi
Slide 39: Facts at a glance
246 Stores 8.1M 800+ FIRST CITIZENS BRANDS 14% Mix 5% Mix PRIVATE BRANDS ECOM FACTS 4.3 M as on 31st Dec’21 45 SQUARE FEET CITIES AREA 40 M+ WALK-INS in Q3 (1) 15.1K TALENT POOL 1. including Brand staff 31
Slide 40: 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 41: Contact investor@shoppersstop.com
In case of any clarifications please contact on investor@shoppersstop.com 33
Slide 42: Press Release: Sales soar 35% YoY, returns to profitability
Press Release for Immediate Distribution Sales soar 35% YoY to Rs. 1070 Cr, returns to profitability and net debt to zero Q3FY22 Performance Highlights 1. Business recovery continues with easing of mobility restrictions and consumers returning to stores a) Strong sales rebound and revenue improves b
Slide 43: CEO commentary on strategic pillars
Mr. Venu Nair, MD & CEO at Shoppers Stop, said, "We are witnessing positive signs from a strategy that we initiated in the last 2 years. As the fashion and beauty retail is seeing encouraging early trends from the Wardrobe Reboot, we are rightly poised to capture the pent-up demand. Customer sentime
Slide 44: Way forward
Way forward Encouraged by the strong rebound, the Company expects an accelerated growth trajectory now, driven by a robust recovery from the lockdown blues, accelerated small size store expansion, growth in the private-label mix, and an increased focus on high growth beauty business. The third wave