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Future Retaiui FUTURE RETAIUI 09th March, 2020 To, Dept. of Corporate Services (CRD) Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Sandra Kurla Complex, Dalal Street, Sandra East, Mumbai - 400 001 Mumbai - 400 051 Scrip Code: 540064 Symbol: FRETAIL Scrip Code of Debt: 958809 & 958810 Dear Sir/ Madam, Sub.: Call/ Presentation to Investors/ Rating Agency related to USD denominated Notes With reference to above captioned subject, the schedule of call of Investor / Rating Agency related USO denominated Notes to be attended by the officials of the Company are as follows: Day/ Date Name of Investor Type of Meeting Tuesday, 10 March, 2020 Holders of US Dollar denominated Investor Call Notes and Rating Agency related to Notes Note: The schedule of the above Investor call is subject to change. The change may happen due to exigencies on the part of Investor and/or the Company. Please find enclosed herewith the presentation being forwarded to Investor and same is also to be made available on the website of the Company. This may also be treated as disclosure under Regulation 30 and other applicable provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Thanking you , Yours fa ithfully, For Future Retail Limited I ~ 1(]J..LJM.,"'~ ' ~ ,- Virendra Samani Company Secretary Encl. : as above. CC: Singapore Exchange Securities Trading Limited 2, Shenton Way, #02-02, SGX Centre 1. Singapore - 068 804 Future Retail Limited (Formerly known as Bharti Retail Limited) Registered Office: Knowledge House, Shyam Nagar, Off Jogeshwari Vikhroli Link Road, Jogeshwari ( East). Mumbai - 400 060 P +91 22 6644 2200, F + 91 22 6644 2201, www.futureretail.co.in CIN: L51909MH2007PLC268269 Investor Update March 2020 ),' FUTURE RETAIUIIII tn 1 Update on Operations »» » 03 I • C: Cl) 2 Impact of COVID-19 >»> » 12 I • C: 3 USD Notes Issuance & Key Updates »» » 14 0 0 4 Liquidity Profile and Principal Uses of Cash»» » 16 •• Promoter Company & Pledge Shares 0 5 »» » 21 Details Cl) Appendix .c 6 »» » 24 ~ FRL | Update | March 2020 --------------0 »» »» @2 Update on Operations ~~~~~~~~~~~~~~=,~~)))))o -- - o--------------- >>>>>------------ - ----· FRL | Update | March 2020 --------------0 »» »» 03 3 FRL: At a glance (1/2) FUTURE RETAIUl lf Delivering one of the highest margin profiles Strong scale and efficiency profile Unparalleled network strength… Scale Depth Efficiency 65% 24% of FRL stores in Tier-I cities of FRL stores in Tier-III and and above in FY19 below towns in FY19 ~11% Same Store • >350 mn Sales Growth 1,388 Retail stores Customer footfalls1 (SSSG)2 Well-placed to capture metros Grew by 50% in the last two and tier-I consumption story years Well positioned to capture 0 growth in relatively under- 16.1 penetrated market mn sq. ft. 414 28.7% …with customer retention as key focus Retail Space Cities Gross Margin Ensures m customer- retention while Revenue split almost ••• focusing on equally across North, ••• - _ . 1 111 - · , • .• growth South, West and East >67% Il l __ aw_ Revenue from non- Digital Wallet food categories3 Locks–in Mobile~25mn wallet, price customers Notes: All data as of Dec-19, unless mentioned otherwise Highmatch spenders’ and consumer member across formats 1 as of FY19 2 for Big Bazaar for FY19 engagementcustomers platform and categories 3 as of Sep-19, excludes other operating income FRL Update| Mar 2020 -------------®»» >»> 04 ), FRL: At a glance (2/2) FUTURE RETAIUIIII Entrenched Consumer-centric National Platform India's leading multi format pan India retailer 666 stores 164 stores ( Fashion 74 Big Bazar 75 Big Bazar #1 14.9% 565 Easyday/WHSmith 67 Easyday/WH Smith Leading 22 fbb player Market share2 destination 19 fbb market 04 Foodhall position 01 eZone 03 eZone in Food & Grocery and General for youth Merchandise organized retail in India population Market leading brands ,:, Established in 2001 ; One of the largest hypermarket chains in India BIG AZAAR: •:• Among the top 40 most valuable brands in lndia3 fbb •:• Value fashion chain ,:, Smaller format convenience stores ca zone· Foodhall •:• Specialty stores for electronics and gourmet retail •:• Convenience store chain operating primarily at 171 stores transit locations like airports, metro stations, etc . 70 Big Bazar 71 Big Bazar 81 Easyday/WHSmith 37 fbb 17 fbb 03 Foodhall 277 Easyday/Heritage/WHSmith 02 Foodhall 414 cities across 29 states1 Financial • 2014: Preferential issue of warrants • 2015: Rights issue of • 2019: Subscription to warrants of Rs. support from of c. Rs. 2,000 Mn to the promoters c. Rs. 16,000 Mn 20,000 Mn Future Group FRL U od~~~- or.. o. e,.c- 1.9, u•n!iiies.s o1h.,en. v..i s., e.m.,.e.. nt io..n ed _,;.1 ..1n. cl•ud•ing 4• u•n•io•n•te•r~.ito•~•ies;•2•1n. F•Y•1•9,..· 3• B•y•1n. 1e. ~.b~.an•d• l•nd. ia_________________ ~~1a~M~ 1111 111 1111111 11111 11111 111 FRL Update| Mar 2020 1111 11111 0 )))) )))) 05 ), FRL: Retail Network Overview FUTURE RETAIUIIII Fulfilling consumer needs across food, fashion & home # of Scale Category Brands # of cities Partner stores (FY19 Revenue (3)(3))) 290 148 BIG AZAAR: Large Stores Rs 163,276163,276 Mn amazon~ fbD 95 48 1 ., 1 Small Stores 990 315 Rs 27,72527,725 Mn ELEVED L • J \\'I - IS111itli Others Foodhall 9 4 Rs 2,9572,957 Mn amazon~ CumulativeCumulative((2)2) 1,388 414 Rs 193,958 Mn NoteNote:. All data as of Dec-19Dec-19 1: includes 98 WH Smith Stores owned by one of FRL's subsidiaries 22:. includes 4 consumer durable and electronic stores (eZone) 33:. FY19 Total Revenue from Operations (e(excludingxcluding other operating income of Rs 7,6887,688 Mn) Total Retail Area (mn sq. ft.) & No of Stores - Total Retail Area (Mn Sq Ft) - # of Stores 14.5 16.1 16.1 12.512 5 - -- - - - ~ 1,511 I 1,388 1,035 901 FY17 FY18 FY19 9M FY20FY20 FRL Update| Mar 2020 ----------------®»» >»> 06 ), Diverse and well-respected Board of Directors overseeing governance FUTURE RETAIUIIII Kishore Biyani Rahul Garg Executive Chairman Non-Executive Director • Has over 40 years experience in the field of • Partner and Co-Head of India based Private manufacturing, marketing of ready-made Equity of Premji Invest. He leads investments garments and retail. Known as the pioneer of in BFSI and Consumer/Retail sectors modern retail industry in India and has led the • Previously associated with ICICI Bank and Group's foray into organized retail and brands worked across the entire financial services across food, fashion and home spectrum covering private equity, corporate banking, structured and project finance Rakesh Biyani Ravindra Dhariwal Managing Director Independent Director • Associated with Future Group for over 20 years. • Senior Advisor to TPG India and brings with Leads the management and expansion of the him the experience of 39 years of building Group's flagship formats, including 'Big Bazaar' consumer business all over the World and 'fbb' • Previously associated with Bennett & Colemon & Co. Ltd. as CEO, Global President of International News Media Association and Pepsico Sridevi Badiga Gagan Singh Independent Director Independent Director • Currently runs a cross border advisory practice • Previously CEO- Business (India) and in the Middle East. Previously she worked in Chairperson Sri Lanka Operations of Jones Investment Banking and was part of GAP Inc's Lang LaSalle Corporate Finance Team • In past, has been associated with Benetton • She holds an MBA degree from Kellogg India, DCM International, Soaltee Group and School of Management Ranbaxy Laboratories Shailendra Bhandari Independent Director • Seasoned finance professional with -36 years of experience and an impressive track record FRL has 4 Independent Directors including of accomplishments • His areas of expertise include Banking, Private 2 lndependentWomen Directors Equity and Mutual Funds FRL Update| Mar 2020 ----------------®»» >»> 07 ), 9M Like for Like Operating Performance (Without Ind AS 116*) FUTURE RETAIUIIII Continuing to post robust growth in business Gross Margin Commentary Income from Operations (% / ₹ Mn) (₹ Mn) 1. In order to do a like for like 156,730 43,604 147,683 6.1% 39,393 10.7% comparison, the numbers depicted here are pre IND-AS adjustments. 27.8% 2. 9M overall revenue increased 26.7% by 6.1%. The growth was impacted by the loss of business due to political disturbances in a few large 9M FY19 9M FY20 9M FY19 9M FY20 centers, closure of stores and Operating Costs decline in de-prioritized EBITDA (% / ₹ Mn) (% of Sales / ₹ Mn) electronics business in Q2 and 22,724 Q3. 9,089 20,860 8.9% 7,606 19.5% 3. Quality of earnings on the new business continues to be strong. GM and EBITDA 14.1% 14.5% expanded by 11% and 20% 5.8% respectively. 5.1% 4. Operating costs, including one- time expenditures, grew by ~9%. The main impact of cost 9M FY19 9M FY20 9M FY19 9M FY20 optimizations shall accrue in the Note: Operating costs include all operating expenses except rentals. coming quarters. *9M Operating Performance with Ind AS 116 is part of Appendix FRL Update| Mar 2020 -------------0 »» »» @8 ), FRL Financial Overview FUTURE RETAIUIIII Consistent improvement in operating & financial metrics thereof Total Revenue (Rs. bn) Gross Margin (%) 27.8% 201.6 184.8 26.7% 26.7% 170.8 147.7 156.7 25.6% 24.8% 1 1 1 1 FY17 FY18 FY19 9M FY19 9M FY20 FY17 FY18 FY19 9M FY191 9M 1FY20 EBITDA (Rs. bn)/ EBITDA Margin (%) Total costs(2) (% of revenues) C)C)C)C)C)3.5% 4.6% 5.2% 5.1% 5.8% - 88.6% 87.9% 87.5% 87.5% 86.7% 10.6 8.4 9.1 7.6 6.1 1 1 1 1 FY17 FY18 FY19 9M FY19 9M FY20 FY17 FY18 FY19 9M FY19 9M FY20 Note: All the above financials are on standalone basis.
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