Slide 1: Metro Brands Limited Earnings Presentation – FY23
METRO BRANDS LIMITED EARNINGS PRESENTATION – FY23 23rd May, 2023
Slide 2: Safe Harbor statement
Safe Harbor statement • The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set o
Slide 3: Brief Overview
BRIEF OVERVIEW Q4 & FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 4: MBL stands tall with a presence across 5 formats, 739 stores
Our Journey Acquisition of Cravatex Brands Ltd Launch of Launch of • Exclusive license for Started first MOCHI ties up with • Owns sportswear Store MBO MBO Hits 200 stores METRO brand 1977 2010 2021 1955 2000 2009 2012 2015 2022 Incorporation of Launch of • Exclusive the Company E-commerce, tie up w
Slide 5: 65+ years of Market Presence
65+ years of Market Presence Key Enablers 1 2 3 4 5 Wide range of brands and One of the largest Indian Efficient operating model Strong promoter background Asset light business with an products – catering to all footwear specialty retailers1 through deep vendor with an experienced and efficient oper
Slide 6: Brief Overview
Brief Overview One Stop Shop for all Footwear Needs PAN India Presence with 739 Stores I 174 Cities I 31 States and UTs (As of Mar’23) West Tier III Metro High Street Mar’23 / South 30% 14% cities 54% (MBO) (MBO) (EBO) (MBO) (EBO) 31% 30% FY23 Airports Target Value 1% Location Family Youth Premium P
Slide 7: Q4 & FY23 Business Highlights
BRIEF OVERVIEW Q4 & FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 8: Q4 FY23 Business Highlights
Q4 FY23 Business Highlights Standalone Consolidated In INR Crore Q4 FY23 Q4 FY22 YOY Growth% Q4 FY23 Q4 FY22 YOY Growth% Revenue 514 396 29.8% Revenue 544 403 35.0% EBITDA 152 128 18.8% EBITDA 144 130 10.8% EBITDA% 29.7% 32.4% EBITDA% 26.5% 32.3% PAT 82 68 20.8% PAT 69 70 -1.1% PAT% 15.9% 17.1% PAT%
Slide 9: FY23 Business Highlights
FY23 Business Highlights Highest ever Revenue, EBITDA and PAT ! Standalone Consolidated In INR Crore FY23 FY22 YOY Growth% FY23 FY22 YOY Growth% Revenue 2,052 1,312 56.3% Revenue 2,127 1,343 58.4% EBITDA 680 403 68.7% EBITDA 681 410 65.9% EBITDA% 33.2% 30.7% EBITDA% 32.0% 30.6% PAT 373 208 79.7% PAT
Slide 10: Quarterly and Annual Business Highlights (Standalone)
Quarterly and Annual Business Highlights (Standalone) In INR Crore Revenue from Operations and Revenue per sq.ft# Gross Profit and Gross Margins 1,550 3,900 5,900 4.700 15,450 5,700 4,900 5,750 5,050 19,800 58.1% 57.1% 59.5% 57.3% 58.1% 60.0% 57.5% 59.7% 57.2% 58.6% 2,052 1,203 1,312 763 476 497 463
Slide 11: Quarterly and Annual Business Highlights (Consolidated)
Quarterly and Annual Business Highlights (Consolidated) In INR Crore Revenue from Operations Gross Profit and Gross Margins 55.7% 57.5% 59.1% 57.3% 57.9% 59.7% 57.4% 59.2% 55.9% 58.1% 2,127 1,235 1,343 777 484 508 599 544 403 476 286 303 273 355 304 325 187 231 131 73 FY22 FY23 FY22 FY23 Q1 Q2 Q3 Q4
Slide 12: Key business updates – Metro Brands Ltd
Key business updates – Metro Brands Ltd Robust growth in Ecommerce sales continues - pivoting successfully as an omni-channel footwear retailer Ecommerce sales (including omni-channel) for the quarter were Rs 33 cr and for the year were Rs 162 cr respectively. Growth momentum in online sales (in
Slide 13: Key business updates – Cravatex Brands Limited
Key business updates – Cravatex Brands Limited Key highlights As updated in Q3, MBL has completed 100% acquisition of Cravatex Brands Limited (CBL) In Q4, the Board of Directors in the meeting held on 23rd March 2023, approved Draft scheme of Arrangement between Cravatex Brands Limited and the c
Slide 14: Key business updates – Cravatex Brands Limited
Key business updates – Cravatex Brands Limited Key priorities for CY24 : Integration with MBL eco-system to leverage on cost & operations synergies. Focus on liquidation of current excess inventory and improving cash conversion cycle. Evaluate means to improve sales through-put at all existing
Slide 15: Year wise Store additions - Standalone
Year wise Store additions - Standalone Stores 504 +9% 551 +6% 586 +6% 624 +3% 644 +5% 672 +7% 720 +3% 739 Full Year : 115 Opened^ 95 57 59 87 25 37 54 28 144 Opened Closed^ 10 10 24 49 5 9 6 9 29 Closed Relocation^ 3 - 3 12 3 4 3 3 13 relocations FY19 FY20 FY21 FY22 Jun’22 Sep’22 Dec’22 Mar’23 Metro
Slide 16: Profit & Loss Statement (Standalone)
Profit & Loss Statement (Standalone) In INR Crore Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Revenue from Operations 514 577 396 2,052 1,312 Other Income 19 15 13 55 58 Total Income 533 592 409 2,107 1,371 EXPENSES Purchases of stock-in-trade 199 275 202 1,017 684 Changes in inventories of stock
Slide 17: Profit & Loss Statement (Consolidated)
Profit & Loss Statement (Consolidated) In INR Crore Particulars Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22 Revenue from Operations 544 599 403 2,127 1,343 Other Income 19 15 13 54 59 Total Income 563 613 417 2,182 1,402 EXPENSES Purchases of stock-in-trade 220 288 206 1,066 700 Changes in inventories of stoc
Slide 18: Balance Sheet (Consolidated)
Balance Sheet (Consolidated) Balance Sheet In INR Crore As at As at As at As at Particulars Particulars March 31, March 31, 2023 March 31, 2022 March 31, 2023 2022 Non-current assets Equity Property, plant and equipment 298 235 Equity share capital 136 136 Goodwill 41 - Other equity 1,412 1,129 Capi
Slide 19: Cash Flow statement (Consolidated)
Cash Flow statement (Consolidated) In INR Crore For the year ended For the year ended Particulars March 31, 2023 March 31, 2022 Cash flow from Operating Activities Profit before tax for the year 489 283 Add: Non-cash items/re-classification 205 134 Operating profit before working capital changes 695
Slide 20: Metro's Strengths
BRIEF OVERVIEW Q4 & FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 21: Our Key Strengths
Our Key Strengths 1 One of India's largest pan India footwear retailers1 with a brand appeal among aspirational consumer segments 2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear & accessories retailer 3 Wide range of brands and products catering to all occasions across age
Slide 22: One of India's largest pan India footwear retailers
1 One of India's largest pan India footwear retailers1 with a brand appeal among aspirational consumer segments PAN India Network of Retail Outlets (as of Mar’23) …with diversified presence across regions2 551 586 624 739 13% 14% 13% 16% 13% 15% 14% 15% 23% 21% 24% 22% 25% 25% 23% 22% 31% 31% 32% 31
Slide 23: Pivoting from Offline to an Omni-channel retailer
2 Pivoting from primarily "Offline" to an "Omni-channel" enabled footwear and accessories retailer E-commerce – Online & Omnichannel “Highest number of Instagram Followers among key footwear Majority of online business comes through leading e-commerce retailers in India” (CRISIL) 1.7% 2.5% 7.3% 8.
Slide 24: Wide range of brands and products (1/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (1/3) Product presence across multiple categories through Own and Third party brands Own Brands Casual Formal Sports Accessories Third Party Brands Puma Pro Crocs
Slide 25: Wide range of brands and products (2/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (2/3) Own Brands contribute ~ 70-75% of total store product sales at MBOs Targeting Mid and Premium Segment through 5 different Brand Outlets Average Realization P
Slide 26: Wide range of brands and products (3/3)
3 Wide range of brands and products catering to all occasions across age groups and market segments resulting in strong customer loyalty (3/3) Repeat Sales to Members of Loyalty programs Loyalty programs have been digitized and thus provide insights into Customer Preference % Total Product Sales 1 a
Slide 27: Asset light business with an efficient operating model
4 Asset light business with an efficient operating model leading to sustained profitable growth Outsourced One of the few footwear Retailers in India to source all products through outsourcing 1 Manufacturing arrangements without own manufacturing facility1 One of the highest gross margins among
Slide 28: Efficient operating model through vendor engagements and TOC supply chain
5 Efficient operating model through deep vendor engagements and TOC based supply chain Long Standing Relationships with Vendors 250+ vendors dealt with over last 3 fiscal years 20+ years of relationship with certain vendors Demand Driven Inventory Norms New Designs and Styles Optimum capital e
Slide 29: Platform of choice for third party brands looking to expand in India
6 Platform of choice for third party brands looking to expand in India Why brands prefer Metro platform MARKET POSITION STORE ECONOMICS OMNI CHANNEL PRESENCE WIDE REACH • Long track record of • Healthy store economics by • Presence across EBO/MBOs, • PAN India Presence successfully incubating and op
Slide 30: Board of Directors
7 Board of Directors1 ARUNA BHAGWAN ADVANI, ARVIND KUMAR SINGHAL, MANOJ KUMAR MAHESHWARI, IQBAL HASANALLY DOSSANI, Independent Director Independent Director Independent Director Whole Time Director Holds bachelor’s degree in science Holds Bachelor of Engineering degree Holds bachelor’s degree
Slide 31: Strong promoter background and experienced management team
7 Strong promoter background and an experienced and entrepreneurial management team with a proven track record RAFIQUE A. MALIK, FARAH MALIK BHANJI, ALISHA RAFIQUE MALIK, Chairman Managing Director President - Sports Division, E-Commerce and CRM Over 50 years of experience in the Over 20 years o
Slide 32: Strong track record of growth, profitability and financial discipline
8 Strong track record of growth, profitability and financial discipline Revenue from Operations Gross Profit and Gross Margins EBITDA and EBITDA Margins 17,500 16,800 10,150 15,450 19,800 54.9% 55.6% 54.9% 57.9% 58.1% 27.7% 27.5% 21.5% 30.6% 32.0% 2,127 1,235 681 1,217 1,285 1,343 410 714 777 337 35
Slide 33: Levers of Growth
BRIEF OVERVIEW Q4 & FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 34: Key Strategies
Key Strategies 1 3 5 2 4 Store Inorganic E-Commerce Expansion Plans Opportunities Expansion Leverage multi-channel Evaluation basis Target to open 200 Leverage existing Expand Portfolio of platform targeted returns, stores over next 2 years capabilities to increase Accessories and operational scale
Slide 35: To Summarize….
To Summarize…. WIDE RANGE OF PRODUCTS SOURCING & VENDOR RELATIONS PAN INDIA PRESENCE PREFERRED PARTNER BRAND VINTAGE FOR THIRD PARTY BRANDS ALLIED PRODUCTS MULTI-CHANNEL (Accessories, Foot care, RETAIL PLATFORM Shoe care, etc.) ASSET LIGHT BUSINESS MODEL 35
Slide 36: Sustainability Initiatives & Others
BRIEF OVERVIEW Q4 & FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 37: Sustainability Initiatives (1/7) Environment
Sustainability Initiatives (1/7) Environment Processing of Old & Discarded Footwear (ODF) in an eco-friendly manner It is our long term goal to “recycle a pair for every pair we sell”. In FY22, we started exploring this project and ran a pilot project for 100 tons. Under this project, ODF is col
Slide 38: Sustainability Initiatives (2/7) Environment
Sustainability Initiatives (2/7) Environment Sustainable Footwear and Packaging • Launched vegan friendly footwear range – • Nature Pro Collection: 11 PET bottles • Our packaging boxes use filler paper made Tie-Dye Collection, made with modern, recycled to get 1 pair of shoes. of recycled & bio-degr
Slide 39: Sustainability Initiatives (3/7) Environment
Sustainability Initiatives (3/7) Environment Solar rooftops at our warehouses Solar rooftops installed at both of our warehouses with a combined capacity of 240 KW. The solar rooftops generated 221 MWh of power. Distributed more than 18,000 footwear pairs to the less fortunate rural school children
Slide 40: Sustainability Initiatives (4/7) Health & Well-being
Sustainability Initiatives (4/7) Health & Well-being Launched project “Ek Kadam Aage” to empower 150 Mumbai Railway Station based Shoe Shiners covering the aspects of their livelihood, healthcare and financial literacy trainings Helped in providing medical treatment to 82 needy people Contribu
Slide 41: Sustainability Initiatives (5/7) Education
Sustainability Initiatives (5/7) Education We contributed towards providing access to quality education to 500 underprivileged girls from Bharuch, Gujarat and helped them complete schooling with dignity. 41
Slide 42: Sustainability Initiatives (6/7) Education
Sustainability Initiatives (6/7) Education Sponsored 230 underserved adolescents to develop We supported 32 Social Entrepreneurs to grow in their leadership skills in them through football, with a focus on leadership skills through incubation support, immersive residential breaking gender stereotype
Slide 43: Sustainability Initiatives (7/7) Education
Sustainability Initiatives (7/7) Education We supported 72 children of under privileged families of Supported as a co-funder to transform learning, teaching Maharashtra and Gujarat region by providing them an and leading school improvement in Bihar. environment to excel in their academic life. We
Slide 44: Awards & Recognition – (1/2)
Awards & Recognition – (1/2) Forbes India Leadership Awards 2022 IMAGE Retail Awards IMAGE Fashion Awards Farah Malik Bhanji and Alisha Malik won the GenNext Most Admired Retailer – Footwear, 2022 India’s Most Admired Retailer, 2022 Entrepreneur award for a successful expansion and listing at the ma
Slide 45: Awards & Recognition – (2/2)
Awards & Recognition – (2/2) PETA India – Vegan Fashion Awards DMA Asia Sparkies Awards Image Business Of Fashion Best Vegan Shoe Line,2022 Best Conversion Campaign – SEO,2022 Fashion Brand Icon,2022 – Nissan Joseph, CEO Recognition: Leadership Technology Excellence Awards MYNTRA – Tech Threads Awar
Slide 46: Appendix: Industry Overview
BRIEF OVERVIEW Q4 & FY23 BUSINESS HIGHLIGHTS METRO’S STRENGTHS LEVERS OF GROWTH SUSTAINABILITY INITIATIVES & OTHERS APPENDIX: INDUSTRY OVERVIEW
Slide 47: Industry Overview (1/2)
Industry Overview (1/2) Low per capita footwear consumption in India as compared to other countries Per Capita footwear consumption India Per Capita Consumption of Footwear (2019) Per capita consumption of footwear (pairs) 8.1 6.4 2.0 – 2.1 6.2 6.2 1.9 5.8 1.6 4.3 4.0 1.2 3.3 3.2 2.5 1.9 USA Japan U
Slide 48: Industry Overview (2/2)
Industry Overview (2/2) Organized Retail Penetration - Footwear Segment wise market composition Category wise market composition In Percentage (%) 10% 10% 10% 6% 7% 8% 38% 9% 11% 13% 35% 30% 32% 34% 31% 33% 23% 27% 28% 23% 62% 60% 58% 56% 56% 51% FY15 FY20 FY21 FY22P FY25P FY15 FY20 FY25P FY15 FY20
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Slide 50: Thank You
AKERS AWESOME 4 < >3 3 ru ge: