Slide 1: Sharing the Joy of Food: Investor Update Q4 FY2016 / FY2016
Sharing the Joy of Food Investor Update – Q4 FY 2016 / FY 2016
Slide 2: Contents
Contents S No Particulars Page No 1 Business Overview 04-10 2 Performance Overview - Q4 FY16 and FY16 11-12 3 Tied Up US $75mn from Marquee Investors & Promoters 13 4 Proposed IFC Fund Raising of up to US$ 20mn 14 5 Key Developments & Product Launches 15-21 FCEL Making In Roads into Modern Trade 16
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: Business Overview
BUSINESS OVERVIEW 4
Slide 5: Integrated Food & FMCG Company
Integrated Food & FMCG Company Food & FMCG Brands Two Strong Pillars Supporting the Furtherance of Business Purpose Distribution Network Sourcing & Manufacturing • Access to a vast network of over 750 Future Group retail • Strong presence in sourcing of agri commodities and fresh outlets including h
Slide 6: FY 15-16 At a Glance (1/2)
FY 15-16 At a Glance (1/2) 1 Achieved a robust top line growth of 34% 2 Gross Margins stood at 16%; Significant improvement of 265 bps YoY 3 EBITDA turned positive ₹ 30 mn on an annual basis 4 Tied up ~US$ 75mn from marquee investors Proterra, IFC and Promoters Well poised to achieve high growth and
Slide 7: FY 15-16 At a Glance (2/2)
FY 15-16 At a Glance (2/2) 1 Commissioned Oats manufacturing facility in Sri Lanka •Food Park witnessed good traction with a visible pipeline of customers 2 •Rice Mill, Wafer Mill & Packaging Unit construction progressing well Seasoned management team on board, highly experienced heads for Manufactu
Slide 8: Overview – Q4 FY16 vs Q4 FY15
Overview – Q4 FY16 vs Q4 FY15 Driven by 43% growth in Brand Top Line Growth 21% business Convenience stores franchised to 3rd party from Feb’16 Brands : 15.8% (↑183 bps) Gross Margin 16.3% (%) Convenience Stores : 13% 188 bps Brands 121 Convenience Stores & -83 38 Others EBITDA (₹ mn) (119) Q4 FY201
Slide 9: Overview – FY16 vs FY15
Overview – FY16 vs FY15 Driven by 45% growth in Brand Top Line Growth 34% business Convenience stores franchised to 3rd party from Feb’16 Brands : 15.4% (↑408 bps) Gross Margin 16% (%) Convenience Stores : 13.7% 265 bps Brands 383 30 Convenience Stores & -352 Others EBITDA (₹ mn) (185) FY2015-16 FY2
Slide 10: Business Overview at a Glance – FY15 vs FY16
Business Overview at a Glance – FY15 vs FY16 FY15 (1) FY16 Convenience Convenience Stores & Stores & Other 28% Other 22% (45% growth YoY) Brands 72% Brands 78% Total Revenues: ₹ 13,166 Mn Growth of 34% Total Revenues: ₹ 17,578 Mn Convenience Stores have been completely moved to a franchisee based mo
Slide 11: Performance Overview - Q4 FY16 and FY16
Performance Overview - Q4 FY16 and FY16 Q4 FY16 Performance EBITDA (₹ mn) • Total Operating Income increased from ₹3,588 mn (Q4FY15) Performance improvement on the 38 to ₹4,331 mn (Q4FY16) with 21% growth back of revenue growth and gross margin expansion ‒ Witnessed strong growth in spite of franchi
Slide 12: Performance Overview - Q4 FY16 Brands
Performance Overview - Q4 FY16 Brands • Business reported a robust 43% growth as compared to Q4 FY15 • Tasty Treat emerged as a key brand registering 139% growth on YoY basis • Brands in Staples category registered a strong growth of 27% on the back of high growth in dry fruits, staples, spices • Ni
Slide 13: Tied Up US $75mn from Marquee Investors & Promoters
Tied Up US $75mn from Marquee Investors & Promoters FCEL had proposed to raise US$75mn enabling the Company to meet the following objectives: • Enhance Balance Sheet profile by repayment of debt • Fund growth plans This US$75 mn fund raise has been successfully tied up as below: US$ 45mn (Completed)
Slide 14: Proposed IFC Fund Raising of up to US$ 20mn
Proposed IFC Fund Raising of up to US$ 20mn Transaction Overview • Board approved raise up to US$20 mn (approx ₹1,340 mn) through preferential allotment ‒ IFC to invest up to ₹1,340 mn (US$ 20 mn) @ ₹22.73 per share through CCDs convertible within 18 months post allotment date ‒ Along with CCDs, 100
Slide 15: Key Business Developments
KEY BUSINESS DEVELOPMENTS 15
Slide 16: FCEL Making In Roads into Modern Trade
FCEL Making In Roads into Modern Trade FCEL Enters into Partnership With Star Bazaar • Forged a strategic partnership to distribute FCEL brands in Star Bazaar stores, creating an additional channel • Ten brands have already started selling through more than 20 Star Bazaar stores and are seeing a goo
Slide 17: Building a Stronger Dairy Portfolio & Tie-Ups with Leading FMCG Brands
Building a Stronger Dairy Portfolio & Entering into Tie-Ups with Leading FMCG Brands Nilgiris – Enhanced Product Portfolio Sunkist Co-Promotion with Kellogg's • Further strengthened dairy portfolio • Joined hands with Kellogg's, for Co-Promotion of Sunkist by adding 2 Butter Milk variants • With pre
Slide 18: Desi Atta – Going Places!!
Desi Atta – Going Places!! Launch of Desi Atta in Newer Territories • Post launch of Desi Atta in Maharashtra, the specialty flour brand is now available in states of Rajasthan and Gujarat • Desi Atta has already made huge strides in changing the way atta and atta mixes are perceived ‒ With a wider
Slide 19: FCEL's Blockbuster Food Show!!!
FCEL’s Blockbuster Food Show!!! • FCEL organized a blockbuster food show in Mumbai • Great platform showcasing all brands under one roof • Brand entrepreneurs showcased their respective brands 19
Slide 20: Other Key Highlights
Other Key Highlights F&V • Identified new markets in Bangalore for wholesale • Go Bananas is now available in Chennai, Hyderabad, Pune and Mumbai Food Park • Signed a bakery manufacturer and also finalized a land deal with leading instant food manufacturer ‒ Good visibility of customer pipeline • Ri
Slide 21: Access to a Strong Distribution Network
Access to a Strong Distribution Network • Strong franchise based convenience store network of over 314 stores • Access to small stores of Easy Day offering an excellent incremental growth Convenience Stores opportunity • Vast network of hypermarkets of Big Bazaar stores • Forged strategic alliance w
Slide 22: Financial Overview
FINANCIAL OVERVIEW 22
Slide 23: Consolidation Footprint
Consolidation Footprint Q4 (FY15) (FY15) Business Entity Q4 (FY16) Q3 (FY16) (FY16) FCEL Consolidated (1) FCEL Standalone Future Agrovet Aadhaar (2) Nilgiri's (3) Integrated Food Park Sublime Foods (3) (4) Aussee Oats Amar Chi
Slide 24: Consolidated Income Statement – Quarterly
Consolidated Income Statement Quarterly Income Statement Quarter Ended Particulars (In ₹ mn) Q4 (FY16) Q4 (FY 15) Total Operating Income 4,331 3,588 • Total operating income grew by 21% on YoY basis in spite of franchising Y-o-Y Growth (%) 21% convenience stores after January’16 Gross Margin 705 516
Slide 25: Consolidated Income Statement – FY16 and FY15
Consolidated Income Statement FY16 and FY15 Income Statement 12M Ended Particulars (In ₹ mn) FY16 FY15 • Total operating income growth of 34% on Total Operating Income 17,578 13,166 YoY basis Y-o-Y Growth (%) 34% • Gross margins improved significantly by 265bps to 16% Gross Margin 2,814 1,759 Gross
Slide 26: Performance Excluding Amar Chitra Katha
Performance Excluding Amar Chitra Katha Consolidated as Reported Consolidated Excluding ACK FY15 FY16 Particulars (In ₹ mn) FY15 FY16 13,166 17,578 Revenue 12,554 17,085 (185) 30 EBITDA (152) 92 Trend of EBITDA excluding ACK (₹mn) Trend of EBITDA excluding ACK (₹mn) 110 92 (18) H1 FY16 H2 FY16 (152)
Slide 27: Consolidated Balance Sheet
Consolidated Balance Sheet As of Date Particulars (In ₹ mn) 31-Mar-16 31-Mar-15 Shareholders' Funds 6,765 7,696 Minority Interest 215 338 Gross Debt 6,080 6,734 Less: Cash & Cash Equivalents 500 1,433 Net Debt 5,580 5,301 • Secured equity tie-ups worth Net Adjusted Capital Employed 12,560 13,335 US
Slide 28: Namaste!!
NAMASTE!! 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 projecti