Future Lifestyle Fashions Ltd. · NSE:FLFL
Future Lifestyle Fashions — Investor Presentation (March 2020)
20 slides from Future Lifestyle Fashions's investor presentation, Mar 5, 2020
Slide 1: Cover letter to stock exchanges
), FL F FUTURE LIFESTYLE FASHIONS Ref: FLFUBM/ 2019-20 05 March 2020 To To Dept. of Corporate Services (CRD) Listing Department SSE Limited The National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, · Exchange Plaza, Dalal Street, Sandra - Kurla Complex, Sandra (East), Mumbai - 400 001.
Slide 2: Future Lifestyle Fashions Investor update March 2020
Future Lifestyle Fashions Investor update March, 2020
Slide 3: Disclaimer
Disclaimer This report contains 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 projections about t
Slide 4: Index
Index 1. Blackstone Investment 04 2. Update on strategic planks 06 3. EPS accretion 10 4. Performance, fundraise & utilization in last few years 12 5. Coronavirus Impact 17
Slide 5: Blackstone Investment
Blackstone Investment VIEW MORE
Slide 6: Strategic investment by Blackstone to unlock value
Strategic investment by Blackstone to unlock value Funds managed by Blackstone have invested ₹1,750cr in September, 2019 About Blackstone: Blackstone is one of the world’s leading investment firms. It seeks to create positive economic impact and long-term value for its investors, the companies in wh
Slide 7: Update on Strategic Planks
Update on Strategic Planks VIEW MORE
Slide 8: Update on Strategic planks: Core business
Update on Strategic planks Core business – Core Business – Central and Brands Brand Factory • Overall base business has grown by 12%, with • Brand Factory physical achieved EBITDA margin of 7.5% Central’s sales growth at 12% and Brand in 9M FY20 Factory’s sales growth at 16% in 9M FY20 • EBITDA marg
Slide 9: Update on Strategic planks: cost leadership, capital allocation, balance sheet
Update on Strategic planks Balance Sheet Cost leadership Capital allocation Strengthening • ~Rs. 10 cr saving in People cost aligned • Net debt to EBITDA* ratio • 7 lac pieces of own brand inventory with formats and HR. The full benefit of 1.4 reduced since March ‘19, the focus is on the savings to
Slide 10: Update on Strategic planks: organization design, shareholder value creation
Update on Strategic planks Organization design update • Mr. Kishore Biyani has stepped down from the role of MD, he has been re-designated as Non-Executive Vice-Chairman of the Company by the board. Professional search firm has been appointed to identify candidate for MD position. Overall timeline t
Slide 11: EPS Accretion
EPS Accretion VIEW MORE
Slide 12: Buying back stake in subsidiaries – Accretive to EPS
Buying back stake in subsidiaries – Accretive to EPS Existing subsidiary Particulars structure FY19 FY19 Comment PAT 189 189 Less: Dividend to minority shareholder in FSRL (Lee -25 - Fixed dividend under Ind AS 116 is treated as interest. Cooper) Total outstanding shares (# cr.) 20 22 New shares iss
Slide 13: Performance, Fund raise and utilisation in last few years
Journey Performance, Fund raise and utilisation in last few years VIEW MORE
Slide 14: FLF historical performance – to continue on the similar track
FLF historical performance – to continue on the similar track Revenue GM/ sq ft 17% CAGR 4% CAGR 6,246 3,010 3,004 5,728 2,875 4,498 3,877 2,561 3,300 2,523 FY 16A FY 17A FY 18A FY 19A LTM Dec 19 FY 16A FY 17A FY 18A FY 19A LTM Dec 19 EBITDA PAT 17% CAGR 54% CAGR 608 189 564 127 167 448 364 46 325 2
Slide 15: FLF historical performance – to continue on the similar track
FLF historical performance – to continue on the similar track NWC days Debt/ EBITDA 69 3.5 61 52 50 45 1.9 1.6 1.6 1.6 FY 16A FY 17A FY 18A FY 19A H1 FY20 FY 16A FY 17A FY 18A FY 19A H1 FY20 RoCE Equity value creation 57% CAGR 15.9% 13.9% Rs. 6,450 cr. 11.7% Market cap Rs. 1,050 cr. 6.4% 7.2% Market
Slide 16: Primary capital raise update
Primary capital raise update ❖ FLF has raised Rs 470 cr. from L Catterton(FY 2019) and Apollo(FY 2019) subscribed at price range of Rs 435 – Rs 460 levels ❖ In FY 20 amidst tough macro market conditions, FLF board has approved* fund raise of Rs 600 cr. from IFC and promoters at Rs 414 per share ❖ Th
Slide 17: FSRL (Lee Cooper) and FLBL (Investee brands) transaction summary
FSRL (Lee Cooper) and FLBL (Investee brands) transaction summary 1800 1400 ❖ In 2017, FLF unlocked value by entering into a step down structure with 962 918 minority shareholders for Lee Cooper and Investee Brands respectively. ❖ This had helped the FLF to reduce the debt and lead to stock re rate F
Slide 18: Coronavirus Impact
Coronavirus Impact VIEW MORE
Slide 19: Coronavirus impact – India and FLF
Coronavirus impact – India and FLF First case reported on 7th Jan in Wuhan - China, since then the virus has spreaded COVID -19 to 60 countries with total 92, 000+ confirmed cases as on 3rd March, 2020 Global challenges and concerns Impact on India • China’s GDP is expected to decelerate by 1-1.25 p
Slide 20: Namaste !
Be Namaste !
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