Slide 1: Exchange cover letter for Investor Presentation
FSN E-Commerce Ventures Limited (formerly ‘FSN E-Commerce Ventures Private Limited’) November 01, 2022 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Corporate Relationship Department, Plot No. C/1, G Block, 2nd Floor, New Trading Wing, Bandra – Kurla Complex, Rotund
Slide 2: Investor Presentation Quarter and Half Year ended September 30, 2022
Investor Presentation Quarter and Half Year ended September 30, 2022 FSN E-Commerce Ventures Limited
Slide 3: Disclaimer
Disclaimer By attending the presentation or by reading the presentation slides you agree to be bound as follows: This Presentation is prepared by FSN E-Commerce Ventures Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of
Slide 4: Table of Contents
Agenda Table of Contents 1. Quarterly Highlights 2. Business Highlights 3. Financial Performance 3
Slide 5: Q2 FY23 Highlights
NIA 1 Q2 FY23 Highlights
Slide 6: Q2 FY23: Strong Performance across financial metrics
Q2 FY23: Strong Performance across financial metrics GMV Revenue Gross Profit Rs. 23,457 MM Rs. 12,308 MM % Rs. 5,577 MM ₹ +45% YoY Growth +39% YoY Growth +47% YoY Growth Gross Margin 45.3% (259 bps YoY) EBITDA PBT PAT(2) Rs. 611 MM Rs. 88 MM Rs. 52 MM +112% YoY Growth +542% YoY Growth +344% YoY Gr
Slide 7: Q2 FY23: Maintaining GMV growth momentum
Q2 FY23: Maintaining GMV growth momentum All Values in Rs million % YoY Growth 47% 45% 39% 39% Consolidated GMV BPC GMV 23,457 21,558 16,229 16,301 14,696 14,888 10,699 11,698 Q1FY22 Q2FY22 Q1FY23 Q2FY23 Q1FY22 Q2FY22 Q1FY23 Q2FY23 59% 43% 153% 240% Others(1) GMV Fashion GMV 5,820 5,991 3,660 4,188
Slide 8: Strengthening the Senior Leadership Team
Strengthening the Senior Leadership Team Rajesh Uppalapati Vishal Gupta Vikas Gupta Executive Vice President, Chief Executive Officer, Chief Technology Officer Nykaa Beauty Owned Brands Nykaa Distribution & Nykaa International Rajesh brings over 2 decades of technology Vishal comes with a rich caree
Slide 9: Business Highlights
NIA 2 Business Highlights
Slide 10: eB2B and International
NIA 2a eB2B and International
Slide 11: Q2 FY23: Scaling the new initiative strategically and sustainably
Q2 FY23: Scaling the new initiative strategically and sustainably Transacting Retailers (#) Brands Listed (#) 73,412 182 165 134 45,030 18,806 31 4,153 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Cities (#) Orders (‘000) 659 172.7 516 103.7 302 39.3 88 8.8 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3F
Slide 12: Q2 FY23: Nykaa Partnered with the Apparel Group
Q2 FY23: Nykaa Partnered with the Apparel Group Strategic Alliance between FSN International (55% stake) and Apparel group (45% stake) to undertake X an omnichannel, multi branded beauty retail operation business in the countries which are part of Gulf Cooperation Council (GCC) through an entity to
Slide 13: Q2 FY23: Going International with Owned Brands
Q2 FY23: Going International with Owned Brands First Nykaa exclusive brand outlet Launch of Nykaa BPC owned brands Launch of Nykaa BPC owned brands on (EBO) opened in Mauritius. The store on four e-commerce marketplace in two e-commerce marketplace in USA retails Nykaa BPC owned brands the UAE 12
Slide 14: Beauty & Personal Care
2b Beauty & Personal Care 13
Slide 15: BPC: Omnichannel Business Highlights
BPC: Omnichannel Business Highlights Brand Partnerships Events Hot Pink Sale Nykaa, in partnership with Estee Lauder Group of Highest ever monthly unique Companies launched Beauty & You India, a first of visitors count of 25 Mn on the its kind partnership to identify and support the next platform le
Slide 16: BPC Owned Brands: Three Brands having Annualized Run Rate of Rs 1,000 Mn+
BPC Owned Brands: Three Brands having Annualized Run Rate of Rs 1,000 Mn+ % YoY Growth # Owned Brand Count Annual GMV Run Rate GMV of Owned Brands(1) (Rs million) Rs 1,000 Mn+ Rs 2,500 Mn+ Milestone achieved in Q2FY23 95% 64% 7 8 10 10 Highlights SKU Depth • As of September 30, 2022, active SKU coun
Slide 17: BPC Owned Brands: New launches across categories and price point (1/2)
BPC Owned Brands: New launches across categories and price point (1/2) All Day Matte Lipstick Gel Eye Pencils Roll-On Deodorants (MRP: Rs 349 each) (MRP: Rs 599 each) (MRP: Rs 229 each) Insta Like Nail Paints Hyaluronic Acid Day & Night Moisturizer Ethiopian Coffee Bath & Body range (MRP: Rs 238 – 3
Slide 18: BPC Owned Brands: New launches across categories and price point (2/2)
BPC Owned Brands: New launches across categories and price point (2/2) 10% Niacinamide + Cica Ultimate Gloss Boss SPF 30 Vitamin C Super Bright Spotless Glow Face Serum Lip Balm Foaming Face Wash 80ml (MRP: Rs 599) (MRP: Rs 249 each) (MRP: Rs 295) Phyto Ceramide Body Lotion Smooth Skin Body Lotion (
Slide 19: BPC: Growing our Retail footprint efficiently
BPC: Growing our Retail footprint efficiently Stores Count 75 83 112 121 60% YoY 1,225 230% YoY 1,187 766 360 GMV (Rs million) Q1FY22 Q2FY22 Q1FY23 Q2FY23 GMV Share (As % of Overall BPC) 3.4% 6.5% 8.0% 7.5% Cities Count 39 41 52 53 (1) (2) (2) 19% Rs. 3,639 ~1.2 Lacs sq. ft. Q2 FY23 SSSG GMV per sq.
Slide 20: BPC: Sustainable growth through customer acquisitions and repeat orders
BPC: Sustainable growth through customer acquisitions and repeat orders % YoY Growth TTM Customers (in million) Orders (in million) GMV (Rs million) 33% 31% 40% 39% 9.1 39% 39% 8.6 6.5 7.0 16,301 8.4 14,888 Q1FY22 Q2FY22 Q1FY23 Q2FY23 8.1 11,698 AOV@MRP (Rs) 10,699 1,910 1,872 1,832 1,780 6.0 5.8 Q1
Slide 21: Fashion
2c Fashion 20
Slide 22: Fashion: Business Highlights
Fashion: Business Highlights Fashion.com – Key Launches Events Nykaa Fashion REVOLVE Grand Festive Carnival Bringing Revolve’s hottest Highest ever monthly unique selling international brands to visitors count of 18 Mn on the the Indian consumers platform led by the Grand Carnival Festive event in S
Slide 23: Fashion: Continuing to craft a differentiated positioning
Fashion: Continuing to craft a differentiated positioning Global Store Hidden Gems New Season Collection 400+ Brands(1) 220+ Brands(1) ~1000 Brands(2) • Bringing the Hottest • Offering a curated • Focus on offering the Global Styles to the collection from Niche, latest season styles Indian Consumers
Slide 24: Fashion Owned Brands: Expanding depth and width of House of Brands
Fashion Owned Brands: Expanding depth and width of House of Brands % YoY Growth # Owned Brand Count SKUs added in Q2 FY23 GMV of Owned Brands (Rs million) 1,947 SKUs in western 2,417 SKUs in Indian 961 SKUs in footwear wear wear 237% 169% 903 SKUs in Jewellery 934 SKUs in Lingerie & 6 7 11 11 & Acce
Slide 25: Fashion Owned Brands: New launches across categories (1/2)
Fashion Owned Brands: New launches across categories (1/2) 24
Slide 26: Fashion Owned Brands: New launches across categories (2/2)
Fashion Owned Brands: New launches across categories (2/2) 25
Slide 27: Fashion: Driving growth with improvement in Conversion and AOV
Fashion: Driving growth with improvement in Conversion and AOV % YoY Growth for NykaaFashion.com % YoY Growth for Other Platforms TTM Customers(1) (in million) Orders(1) (in million) GMV(2) (Rs million) 99% 66% 58% 41% 74% 55% 2.0 2.1 5,991 1.3 5,820 1.0 1.2 1.1 Q1FY22 Q2FY22 Q1FY23 Q2FY23 4,188 3,6
Slide 28: Financial Performance
NIA Financial Performance 27
Slide 29: Q2 FY23: Consistent Revenue growth with improvement in EBITDA Margin
Q2 FY23: Consistent Revenue growth with improvement in EBITDA Margin All Values in Rs million % YoY Growth % Margin % to Revenue 183% 47% 36% 31% 41% 39% 40.6% 42.7% 46.3% 43.7% 44.4% 45.3% Gross Profit 12,308 Revenue 10,984 11,484 9,733 8,853 8,170 5,088 5,099 5,577 3,782 4,253 3,317 Q1FY22 Q2FY22
Slide 30: Accelerated investment in building capabilities
Accelerated investment in building capabilities Stores1 Physical Stores Area (Lacs Sq. ft.) Cities Warehouse Capacity (Lacs Sq. ft.) 37% 2-yr CAGR 22% 2-yr CAGR 1.2 11.5 1.0 8.2 0.6 0.7 6.7 0.5 5.5 5.8 FY20 FY21 FY22 H1FY22 H1FY23 FY20 FY21 FY22 H1FY22 H1FY23 67 73 105 84 124 6 6 11 8 14 Employees2
Slide 31: Q2 FY23: EBITDA Margin expansion while investing in future growth
Q2 FY23: EBITDA Margin expansion while investing in future growth ➢ Gross Profit margin improvement driven by owned brands mix, higher Ad Income, and favorable mix 313 bps -159 bps -207 bps ➢ Fulfilment cost improvement driven by regionalization strategy partly 73 bps offset by inflation 259 bps -10
Slide 32: Q2 FY23: PBT at Rs 88 million with 56 bps improvement YoY
Q2 FY23: PBT at Rs 88 million with 56 bps improvement YoY All Values in Rs million ➢ Depreciation increased YoY on denotes YoY Change account of incremental capex in (112%) (96%) retail stores, warehouses, and 611 -106 (75%) offices -279 ➢ Amortisation and Interest on leases (96%) increased Yo
Slide 33: Vertical Performance: Improving Contribution Margin, investment in new initiatives
Vertical Performance: Improving Contribution Margin, investment in new initiatives (All amounts in ₹ million, unless otherwise stated) Q2 FY23 Q2 FY22 Sr No Particulars BPC Fashion Others Total BPC Fashion Others Total 1 GMV 16,301 5,991 1,165 23,457 11,698 4,188 343 16,229 2 Growth 39% 43% 240% 45%
Slide 34: Q2 FY23: Continued Revenue growth with improved EBITDA margin
Q2 FY23: Continued Revenue growth with improved EBITDA margin (All amounts in ₹ million, unless otherwise stated) Sr Quarter Ended Half Year Ended Year Ended Particulars No Sep-22 Sep-21 YoY Growth Jun-22 QoQ Growth Sep-22 Sep-21 YoY Growth Mar-22 1 Revenue from Operations 12,308 8,853 39% 11,484 7%
Slide 35: Glossary
Glossary Term Description Unique customers identified by their email-id or mobile number who have placed at least one Order on our websites, mobile applications or physical stores during the last 12 months ended as on measurement date. Annual Transacting Customers, with respect to beauty and persona
Slide 36: Thank you
Thank you 35
Slide 37: Key Operational Metrics
Key Operational Metrics Quarter Ended Half Year Ended Metric Unit Sep-22 Sep-22 Sep-22 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Sep-21 Sep-22 YoY growth Seq. growth YoY growth Number of Visits Beauty and Personal Care Million 211 221 204 222 234 11% 6% 416 456 10% Fashion Million 115 115 113 118 122 6% 3%
Slide 38: BPC: Leveraging Content to Drive Commerce
BPC: Leveraging Content to Drive Commerce Total Reach: 45 Mn Total Views: ~5 Mn Launched Nykaa Beauty Basics Nykaa Wellness Week Nykaa launched Short Format beginner-led Campaign to provide audience with educational videos on YT, Insta and App roadmap to help achieve their Health & specifically cate
Slide 39: Fashion: Leveraging Content to drive Commerce
Fashion: Leveraging Content to drive Commerce ~31 Mn Reach Launch of Revolve Nykaa Fashion partnered with world-renowned fashion e- tailer “Revolve” ~3 Mn views Huda Beauty x NA-KD x Arushi Puma x CocaCola Nykaa Fashion Mehra Launch of New Puma- Makeup and Launch of NA-KD’s CocaCola collection Fashi
Slide 40: Little Black Book (LBB) strengthening Nykaa Fashion
Little Black Book (LBB) strengthening Nykaa Fashion Nykaa completed the acquisition 100% stake in Iluminar Media Private Limited, a digital content platform known as “Little Black Book (LBB)” with the focus to strengthen our content delivery, drive discovery for brands and make shopping experience m
Slide 41: Gross Profit Margin & Key Operating Expenses
Gross Profit Margin & Key Operating Expenses % of Revenue from operations Gross Margin 46.3% 45.3% 44.9% 44.4% 42.9% 43.6% 42.7% 43.7% 40.6% 38.9% 38.9% 13.7% 13.7% 11.8% 12.7% 11.4% 11.1% 12.0% 12.0% 11.4% 9.5% 10.5% 11.2% 10.3% 10.6% 10.5% 9.7% 10.0% 9.6% 9.9% 9.9% 9.2% 8.9% 9.4% 9.3% 9.1% 9.5% 7.