Slide 1: FSN E-Commerce Ventures Limited
FSN E-Commerce Ventures Limited (formerly ‘FSN E-Commerce Ventures Private Limited’) February 13, 2023 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
Investor Presentation Quarter and nine month ended December 31, 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 2a. BPC 2b. Fashion 2c. eB2B 3. Financial Performance 3
Slide 5: Q3 FY23 Highlights
NIKAK ie Q3 FY23 Highlights
Slide 6: Q3 FY23: GMV momentum continues
Q3 FY23: GMV momentum continues GMV Revenue Gross Profit Rs. 27,965 MM Rs. 14,628 MM % Rs. 6,347 MM ₹ +37% YoY Growth +33% YoY Growth +25% YoY Growth Gross Margin 43.4%(1) (293 bps YoY) EBITDA PBT PAT(2) Rs. 782 MM Rs. 127 MM Rs. 85 MM +13% YoY Growth -66% YoY Growth -71% YoY Growth EBITDA Margin 5
Slide 7: 9M FY23: GMV momentum continues
9M FY23: GMV momentum continues GMV Revenue Gross Profit Rs. 72,980 MM Rs. 38,421 MM % Rs. 17,023 MM ₹ +42% YoY Growth +37% YoY Growth +40% YoY Growth Gross Margin 44.3%(1) (79 bps YoY) EBITDA PBT PAT(2) Rs. 1,853 MM Rs. 298 MM Rs. 187 MM +49% YoY Growth -28% YoY Growth -45% YoY Growth EBITDA Margi
Slide 8: Consolidated GMV
Maintaining our GMV growth momentum All Values in Rs million % YoY Growth 37% 42% 26% 34% Consolidated GMV 72,980 BPC GMV 50,203 51,353 37,502 27,965 20,428 19,014 15,105 Q3FY22 9MFY22 Q3FY23 9MFY23 Q3FY22 9MFY22 Q3FY23 9MFY23 50% 50% 254% 220% Others(1) GMV Fashion GMV 19,055 12,689 3,721 7,244 4,8
Slide 9: Q3 FY23: Diversification to address larger TAM
Q3 FY23: Diversification to address larger TAM GMV (Rs Mn) Annual Unique Transacting Customers (Mn) Q3FY22 Q3FY23 Q3FY22 Q3FY23 2.4% 6.1% 0.3 0.5 23.7% 1.6 2.4 25.9% 68.0% 73.9% 9.6 7.5 BPC Physical Stores – 0.3 Mn BPC Physical Stores – 0.5 Mn Fashion NSV Contribution Fashion NSV Contribution 14.0%
Slide 10: Business Highlights
NIKAK 2 Business Highlights
Slide 11: Beauty & Personal Care
NIKAK 2a Beauty & Personal Care 10
Slide 12: Formalization of BPC market from unorganized to organized
Formalization of BPC market from unorganized to organized CAGR % Growth Drivers 10% USD 31 Bn(1,2) Evolving Consumer Preference Emergence of new need spaces (or) proposition leading to significant evolution in the BPC Category Mix USD 10 Bn, 32% BPC spends among Millennials and GenZ USD 19 Bn(1,2) G
Slide 13: Key Growth Strategies
Key Growth Strategies Core Value Proposition driving our growth 1 2 3 4 5 Driving customer Deep relationships Penetrating across the Creating, acquiring, Developing new ways acquisition with value chain and and scaling a of selling and a holistic and retention across a diverse set channels to addres
Slide 14: Focus on order growth, driven by quality traffic
Focus on order growth, driven by quality traffic % YoY Growth (%) Visits (Mn) MAUV(1) (Mn) 13% 11% 22% 20% 706 637 24.2 22.7 250 19.8 221 18.9 Q3FY22 9MFY22 Q3FY23 9MFY23 Q3FY22 9MFY22 Q3FY23 9MFY23 1 AOV@MRP (Rs) Orders (Mn) Driving customer acquisition 26% 35% 1,967 1,958 and retention across 1,90
Slide 15: Strong base of repeat customers
Strong base of repeat customers % YoY Growth (%) TTM Customers (Mn) GMV (Rs Mn) 27% Existing Customers New Customers 9.6 26% 34% 7.5 50,203 25% Q3FY22 Q3FY23 1 37,502 Order Conversion(3) (%) 28% Driving customer acquisition 3.8% 3.7% and retention across 3.4% 3.0% 19,014 the funnel journey 75% 15,10
Slide 16: Strong connect with brands to offer differentiated curated collections
Strong connect with brands to offer a differentiated curated collections Brand Partners Marquee sale events & Festive sale 3,000+ Pink Friday continues to grow bigger Strong performance across Navratri & Diwali sale International & Domestic Brands(1) Of top 100 brands 22(2) International brands 40%
Slide 17: Building a Beauty Ecosystem through various events
Building a Beauty Ecosystem through various events Nykaa Femina Beauty Awards 2022 Anomaly launched live on Nykaa ~20 Mn Reach ~12 Mn Reach 2 NFBA - Nykaa’s flagship beauty awards. 400+ Brands participating with total reach of ~20 Mn Deep relationships Beauty & You with a diverse set Successfully co
Slide 18: Investing across value chain & channels to create better consumer experience
Investing across value chain & channels to create better consumer experience Physical Stores Distribution – House of Owned Brands GMV YoY Growth % 34% 72% Store YoY Growth % 49% Stores 95 95 135 135 2,554 4,068 1,717 GT & MT Stores (#) 2,362 Q3FY22 Q3FY23 1,656 1,236 Fulfilment Centres(4) 3 GMV (Rs
Slide 19: Growing distribution of our House of Brands
Growing distribution of our House of Brands % YoY GMV Growth # Owned Brand Count Annual GMV Run Rate(2) GMV of Owned Brands(1) (Rs million) Rs 2,500 Mn+ 29% 55% Rs 1,200 Mn+ each 9 9 10 10 Highlights 5,876 SKU Depth 4 3,799 • As on December 31, 2022, active SKU count for BPC Owned Brands was 2,000+
Slide 20: House of Brands: New launches across categories
House of Brands: New launches across categories Endless Night Fragrances Ceramide Moisturizer 4m Creating, acquiring, and scaling a portfolio of independent and new age consumer-first brands Vitamin C+E Super Bright Sunscreen Illuminating Primer Drops SPF 50 PA+++ 50gm 19
Slide 21: House of Brands: New launches across categories
House of Brands: New launches across categories Ceramides & Hyaluronic Skin Moringa & Argan Frizz Control Barrier Repair + Face Cream 100g Smoothing Hair Conditioner 120ml 4m Creating, acquiring, and scaling a portfolio of independent and new age consumer-first brands Body Oleos – 6 Variants Butter
Slide 22: Strong engagement with the customer
Strong engagement with the customer Prive 2.0 Nykaa on app stream Bridal Series on Nykaa TV ~15 Mn 5 Reach Developing new ways of selling and a holistic consumer connect Revamped our Nykaa’s Flagship Streaming various Beauty Content to Loyalty Programme incorporating multi drive awareness and educat
Slide 23: Fashion
2b Fashion 22
Slide 24: Fashion – The largest discretionary category - CAGR of 14%
Fashion – The largest discretionary category - CAGR of 14% CAGR % Growth Drivers 14% USD 147 Bn(1,2) Rapid emergence of new categories Fashion is rapidly evolving providing opportunities for new categories to emerge USD 49 Bn, 33% Industry transformation led by D2C disruption D2 More new age D2C bra
Slide 25: Key Growth Strategies
Key Growth Strategies Core Value Proposition driving our growth 1 2 3 4 5 Driving customer Deep relationships Scaling up multiple Creating, acquiring, Developing new ways acquisition with operating and scaling a of selling and improving and retention across a diverse set model to drive availability
Slide 26: Improved order conversion supported by strong AOV
Improved order conversion supported by strong AOV % YoY Growth (%) Visits(3) (Mn) MAUV(2,3) (Mn) 19% 15% 18% 13% 377 328 19.4 17.3 16.4 115 137 15.3 Q3FY22 9MFY22 Q3FY23 9MFY23 Q3FY22 9MFY22 Q3FY23 9MFY23 1 Driving customer AOV(3) (Rs) Order Conversion(1,3) % Orders(1,3) (%) acquisition 4,570 4,458
Slide 27: Growth rebounds with strong customer addition
Growth rebounds with strong customer addition % YoY Growth for NykaaFashion.com (%) % YoY Growth for Other Platforms (%) TTM Customers(1) (Mn) GMV (Rs Mn) NykaaFashion.com Others(3) 50% 20% 10% 2.4 57% 61% 1.6 19,055 1 Q3FY22 Q3FY23 12,689 GMV Contribution (Q3FY23) – Category Wise(1) Driving custome
Slide 28: Strong connect with brands to offer differentiated curated collections
Strong connect with brands to offer a differentiated curated collections Brand Partners Event New Launches(3) Nykaa Fashion Pink Friday Sale 2022 ~1,800 brands participated in the Pink Cider - Global Store Kalki – Unnati Friday 2022 Hidden Silks Globally minded, social Gems ~2,700(1) first fashion b
Slide 29: Strong Relationship with Global Brands - Revolve
Strong Relationship with Global Brands - Revolve 600+ International Brands 1. Access to an assortment of differentiated products 2. Hassle free consumer experience 3. Zero Inventory Risk 2 Built B2B2C platform Deep relationships Product Inward to Consolidation of Nykaa Fashion Order placed on Nykaa
Slide 30: Flexible fulfillment models supported by technology
Flexible fulfillment models supported by technology While majority of our business is driven by marketplace, we’ve built the tech and ops capabilities in-house to cater to our customers via inventory-led and other hybrid models Our Capabilities Marketplace B2B2C Inventory Led List Finds and Buys fro
Slide 31: Expanding our House of Brands portfolio
Expanding our House of Brands portfolio % YoY GMV Growth # Owned Brand Count Annual GMV Run Rate(1) GMV of Owned Brands (Rs million) Rs 1,900 Mn+ Rs 800 Mn+ 122% 163% 8 8 12 12 Offline Expansion • Twenty Dresses & RSVP: 62 MBOs as on December 31, 2022 2,387 (Added 24 MBOs in Q3 FY23) • Nykd by Nykaa
Slide 32: House of Brands: New Launches across categories
House of Brands: New Launches across categories 3,000+ SKU 700+ SKU 1,500+ SKU 550+ SKU 4 Creating, acquiring, and scaling a portfolio of independent and new age 250+ SKU 350+ SKU consumer-first brands 31 1. SKU count as on December 31, 2022
Slide 33: House of Brands: New launches across categories
House of Brands: New launches across categories 300+ SKU 600+ SKU 1,500+ SKU 600+ SKU 4 Creating, acquiring, and scaling a portfolio of independent and new age 140+ SKU 200+ SKU consumer-first brands 32 1. SKU count as on December 31, 2022
Slide 34: Continuous engagement with customers
Continuous engagement with customers Global Store Fiesta – Dec’22 First in Fashion Festival – Dec’22 5 Developing new ways of selling and improving consumer facing tech Nykaa Fashion celebrates the launch of Global Store, bringing the hottest styles and latest trends to India from around the Fashion
Slide 35: Consumer facing technology updates
Consumer facing technology updates Hyper Personalisation Similar Products Gender & Age Nudges Gamification 5 Developing new ways of selling and improving consumer facing tech Personalised navigation Improve product Recommend similar Nudging the users to select gender and discovery, increase user tou
Slide 36: eB2B
2c eB2B 35
Slide 37: eB2B: Deepening the BPC moat
eB2B: Deepening the BPC moat CAGR % 10% USD 31 Bn(1,2) USD 10 Bn, 32% USD 19 Bn(1,2) USD 3Bn, 15% USD 9 Bn, Value Proposition 30% USD 5 Bn, KIOSK 26% Your All-in-One Store Super Service USD 11 Bn, USD 12 Bn, 59% 38% Super Flexibility Super Earnings 2022 2027P Unorganized Offline Organized Offline On
Slide 38: eB2B: Strategic scale up to serve the unorganized market
eB2B: Strategic scale up to serve the unorganized market % Activation rate (As % of registered retailers) Transacting Retailers (#) Brands Listed (#) 36% 69% 185 92,415 31 4,153 Q3FY22 Q3FY23 Q3FY22 Q3FY23 Cities (#) Orders (‘000) 652 216.0 88 8.8 Q3FY22 Q3FY23 Q3FY22 Q3FY23 37
Slide 39: Financial Performance
NIKAK Financial Performance 38
Slide 40: Q3 FY23: Strong revenue growth
Q3 FY23: Strong revenue growth All Values in Rs million % YoY Growth % Margin % to Revenue 183% 47% 36% 31% 41% 39% 33% 40.6% 42.7% 46.3% 43.7% 44.4% 45.3% 43.4% 14,628 Gross Profit Revenue 12,308 10,984 11,484 9,733 8,853 8,170 6,347 5,088 5,099 5,577 3,782 4,253 3,317 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q
Slide 41: Scale efficiencies show through
Scale efficiencies show through bps YoY Change Total Operating Cost(1,2) Fulfilment Expense(1) 309 bps 88 bps -200 bps -230 bps -73 bps -177 bps 40.4% 40.4% 11.4% 40.0% 39.7% 39.5% 10.3% 10.6% 38.0% 9.7% 9.5% 37.3% 9.1% 8.8% Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q1FY22 Q2FY22 Q3FY22 Q4FY2
Slide 42: Q3 FY23: Strong delivery of EBITDA margin
Q3 FY23: Strong delivery of EBITDA margin 242 bps -109 bps -23 bps 6.3% -293 bps -86 bps Gross margin declined due to change in 178 bps 5.3% BPC category mix, higher brand funded discount during festive season, consumer downgrades Fulfilment expense improvement driven by regionalization strategy
Slide 43: Q3 FY23: Continue to invest in infrastructure building
Q3 FY23: Continue to invest in infrastructure building Depreciation increased YoY on account of incremental capex in retail stores, warehouses, and in offices Amortisation and Interest on leases increased YoY due to leases impact of additional retail stores, warehouses and offices Depreciation E
Slide 44: Vertical Performance: Business Wise
Vertical Performance: Business Wise (All amounts in ₹ million, unless otherwise stated) Q3 FY23 Q3 FY22 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 19,014 7,244 1,707 27,965 15,105 4,841 483 20,428 Growth 26% 50% 254% 37% 31% 129% 252% 49% NSV 11,513 2,100 788 14,401 9,102 1,50
Slide 45: Vertical Performance: Business Wise
Vertical Performance: Business Wise (All amounts in ₹ million, unless otherwise stated) 9M FY23 9M FY22 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 50,203 19,055 3,721 72,980 37,502 12,689 1,162 51,353 Growth 34% 50% 220% 42% NSV 30,527 5,585 1,610 37,722 22,904 4,222 340 27,46
Slide 46: Q3 FY23: Profit & Loss Statement
Q3 FY23: Profit & Loss Statement (All amounts in ₹ million, unless otherwise stated) Quarter Ended 9 Months Ended Particulars Dec-22 Dec-21 YoY Growth Sep-22 QoQ Growth Dec-22 Dec-21 YoY Growth Revenue from Operations 14,628 10,984 33% 12,308 19% 38,421 28,006 37% Cost of goods Sold 8,282 5,896 40%
Slide 47: 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 48: Thank you
Thank you 47
Slide 49: Key Operational Metrics
Key Operational Metrics Quarter Ended Metric Unit Dec-22 Dec-22 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 YoY growth Seq. growth Number of Visits Beauty and Personal Care Million 205 211 221 204 222 234 250 13% 7% Fashion Million 98 115 115 113 118 122 137 19% 12% Others Million 9 9 11 11 14
Slide 50: International Expansion: Presence across 3 markets
International Expansion: Presence across 3 markets Online Offline Presence across e-commerce Presence across an e-commerce 1 EBO in Mauritius marketplaces in USA marketplace in Mauritius Launched 2 new MT Stores at Centrepoint, UAE (one of the largest Presence across multiple e-commerce marketplaces