Aditya Birla Fashion And Retail Ltd · NSE:ABFRL
Aditya Birla Fashion And Retail — Q1 FY20 Earnings Presentation
30 slides from Aditya Birla Fashion And Retail's earnings presentation, Aug 6, 2019
Slide 1: Aditya Birla Fashion & Retail
ADITYA BIRLA FASHION & RETAIL August 6, 2019 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Dalal Street, Plot No. C-1, Block G, Bandra Kurla Complex, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Scrip Code: 535755 Symbol: ABFRL Sub.: O
Slide 2: Performance Highlights
Performance Highlights
Slide 3: Distribution Network
Distribution Network Distribution Market Q1 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 4: Footprint
17 3 13 1 23 82 11 49 126 102 7 13 13 3 3 1 106 274 1 9 31 6 1 31 81 4 1 7 5 4 52 19 88 59 88 3 24 10 5 34 24 69 319 6 6 42 99 11 7.7 8 63 Q1 FY20 1 302 12 26 224 6 7.1 Q1 FY19 7 25 149 Footprint (million sq. ft.)
Slide 5: Market Update
Market Update Distribution Market Q1 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 6: Market Update
Market Update Poor New trends E-commerce players Tier 2 – 4 towns Consumer emerging continue growth lead consumption Sentiments story Growing influence of E-commerce quickly Consumer adapted to the policy Smaller towns spending low; Indian design on continue to be contemporary fashion change and hav
Slide 7: Q1 Highlights
Q1 Highlights Distribution Market Q1 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 8: Q1 Highlights
Q1 Highlights 8% 28% Growth in tough market Key segments reported steady growth and positive LTL Revenue EBITDA growth growth Rapid channel expansion Aggressive retail expansion and E-commerce ramp up Continued brand investment Enhanced brand visibility Product stewardship Sustained improvement in p
Slide 9: ABFRL | Q1 Highlights
ABFRL | Q1 Highlights Q1 FY20 Q1 FY20 In Rs. Cr. Q1 FY19 Growth (Ind AS (Comp.) Adj.) Revenue 1914 2065 8% 2065 EBITDA 122 156 28% 332 EBITDA Margin 6.4% 7.6% 16.1% EBIT 50 97 93% 129 PAT 6 39 22 # Consistent improvement in EBITDA margins
Slide 10: Key segments | Q1 Highlights
Key segments | Q1 Highlights NSV EBITDA EBITDA % In Rs. Cr. Q1 FY20 Growth Q1 FY20 Q1 FY19 Q1 FY20 Growth Q1 FY19 Q1 FY19 (Comp.) (Comp.) (Comp.) Madura Lifestyle Brands 945 1006 6% 77 94 22% 8.2% 9.4% Fast Fashion 88 80 -10% (6) (9) -6.3% -11.3% Other Businesses 71 125 76% (25) (22) -35.2% -17.5% M
Slide 11: Performance of Key Portfolios
Performance of Key Portfolios Distribution Market Q1 Performance Way Company Network Update Highlights of Key Portfolios Forward Financials
Slide 12: Lifestyle Brands, Pantaloons, Fast Fashion, Other Businesses
Lifestyle Brands Pantaloons Fast Fashion Foc us Other Businesses Steady growth despite Improved merchandize Running a calibrated Innerwear and Global tough market conditions driving higher sales & business model brands driving rapid growth profitability
Slide 13: Lifestyle
1s rmance LW Valles Of Rey Portiglios aS . Y Allen Solly” —_— s Lifestyle
Slide 14: Lifestyle Brands: Steady growth
Lifestyle Brands Steady growth Retail Area Network (,000 sq.ft.) 2414 2628 Q1 FY19 Q1 FY20 Stores 1838 2057 — 48% growth in women’s wear — Sales up 6%; EBITDA grew by 22% — Added more than 100 stores in Q1 — Retail LTL @ 3.2% in a tough market — PE format for small town crossed — Ecommerce continues
Slide 15: Channel-wise Revenue
Channel-wise Revenue (in Rs. Cr.) Q1FY20 156 Q1 FY19 Q1 FY20 Q1FY19 118 Wholesale 356 349 Retail 410 450 Others 179 207 52% of revenues from loyal customers
Slide 16: Performance of Key Portfolios
Performance ~ of Key Portfolios.
Slide 17: Pantaloons: Strong Performance
Strong Performance Retail Network Area 3801 4066 (,000 sq.ft.) Q1 FY19 Q1 FY20 Stores 282 314 — Sales growth of 9.5%, LTL of +4.1% — Continued focus on product improvement yielding higher full price sales — Strong brand investments towards building a young and contemporary imagery — Share of private
Slide 18: Pantaloons category and brand mix
10% 13% 36% 32% Q1 Q1 FY19 FY19 19% 62% 6% 22% Men Women's Western Own Brands Women's Ethnic MFL Kids Others Non Apps 9% 13% 29% 35% Q1 Q1 FY20 FY20 21% 64% 7% 22%
Slide 19: Pantaloons regional sales mix
Q1 FY20 Q1 FY19 28% 31% 157 29% Q1 FY20 25% 24% 26% Q1 FY19 114 19% 18% ^Madhya Pradesh, comprising of 3% of total sales reclassified from North to West in FY20
Slide 20: Fast Fashion
performance of key & portfolios Fast Fashion
Slide 21: Fast Fashion: Calibration continues
Fast Fashion Calibration continues Operational Improvements — Downsizing of PEOPLE network underway — Forever 21 — Business transformation on track — E-Commerce performance noteworthy
Slide 22: Other Businesses: Aggressive Growth
Other Businesses Aggressive Growth Fastest growing premium Global brands recorded robust Innerwear innerwear brand – grew 67% YoY Global growth supported by all round performance across The Collective Strong consumer acceptance in Brands and mono brands recently launched women’s innerwear
Slide 23: Way Forward
Way Forward Distribution Market Q1 Performance Way Financials Network Update Highlights of Key Portfolios Forward
Slide 24: Way Forward
Way Forward Lifestyle Brands Pantaloons Fast Fashion Other Businesses Continued brand investment Product value & freshness Consistently refine Driving rapid scale-up enhancement & business model 500 stores to be added contemporizing brand Build future growth platform this year imagery through portfo
Slide 25: Ethnic Business
Ethnic Business Ethnic wear forms ~25% of the overall apparel market of which women’s ethnic wear is more than 80% Organized ethnic wear is one of the fastest growing segments
Slide 26: Acquisition of Indian craft based apparel brand
Acquisition of Indian craft based apparel and lifestyle brand — Foray into women’s ethnic — Plan to — Leverage strong online equity — Rapidly build offline distribution — Drive expansion across categories to build scale
Slide 27: Collaboration with Couture and Pret brands
Collaboration with Couture and Pret brands — Acquired 51% stake in the business — Plan to — grow the couture brand “Shantanu & Nikhil” — launch new brand – Pret line for wider expansion
Slide 28: Financials
Financials Distribution Market Q1 Performance Way Financials Network Update Highlights of Key Portfolios Forward
Slide 29: Financials
Financials In Rs. Cr. Q1 FY19 Q1 FY20 Revenue from Operations 1,914 2,065 Other Income 8 18 Total Income 1,922 2,083 EXPENSES Cost of Materials Consumed 144 183 Purchases of Stock-in-Trade 880 707 Changes in Inventories (103) 59 Employee Benefits Expense 218 260 Finance Costs 44 94 Depreciation & Am
Slide 30: 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
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