Investor Presentation May 2018 1 FRL Overview 03

2 Our Large Stores 09

3 Loyalty 16

4 Small Stores Business 19

5 Financial Update 24

6 Consistent Customer Centricity 32

FRL | Investor Presentation | May 2018 2 FRL OVERVIEW

FRL | Investor Presentation | May 2018 3 India’ Consumption Opportunity is Well Distributed

Per Capita Income Below $1,300 $1,300 -$2,000 $2,000 – $2,500 More than $2,500

No of States / UT 8 7 8 8

Assam, Bihar, Arunachal Pradesh, Goa, Haryana, Kerala, AP, Chattisgarh, J&K, Jharkhand, MP, Gujarat, HP, Karnataka, Maharashtra, Sikkim, States Nagaland, Rajasthan, Manipur, Meghalaya, Mizoram, Punjab, TN, Uttarakhand, , Tripura, WB Odisha, UP Telangana Chandigarh

State GDP: FY17($bn) 500 460 752 674

Contribution to National GDP 21% 19% 32% 28%

Growth rate (5Y Historical) 12.0% 13.2% 12.7% 12.0%

India represents a well dispersed opportunity

No. of Districts 278 135 192 107

Urban Population (mn) 97 74 108 98

FRL points of connect 153 117 436 329

Deeper presence in high-income states with an incumbency advantage in rest of India

100+ new airports, 15 new metros and over 100 smart cities indicating better living

Source: Based on published government data States in orange represent FRL presence *GDP: Gross Domestic Product Exchange rate: $1=Rs 65

FRL | Investor Presentation | May 2018 4 FRL: A Quick Glance

1,035 14.5 mn sq.ft. >US$ 2.8 bn SCALE FY18 Revenue Retail stores Retail Space (* Exchange rate $1=₹65)

>67% 9.9% 25.6% EFFICIENCY Revenue from Same store Gross Margins non-food Sales Growth categories

>340 mn 26 DEPTH Customer 321 States footfalls in FY17 Cities

4.3% ₹ 12.5 20.3% VALUE CREATION EBIT% EPS (before one time ROCE exceptional item)

FRL | Investor Presentation | May 2018 5 Performance Benchmarking

What we set out for Addition of Big Bazaar Small Stores to About 800 small Strong case of “More out of the 20 - 25 large target SSG: achieve stores by margin Same” stores 12 - 15% breakeven Mar ‘18 improvement

50* new stores 13.4% Big On track to 756 small EBITDA margin Big Bazaar added during Bazaar SSG for deliver stores as on improved by sales per sqft What we the year FY18 breakeven at a 31 March 2018 100 basis points has increased delivered (*including much larger (including 90 WH on a y-o-y basis by 11.5% to Hypercity) scale in FY19 Smith stores ~₹14,500* w.e.f. 11 May 2018)

* For stores that were operational for the full year

FRL | Investor Presentation | May 2018 6 FRL’s Retail Network

As on 1 April 2017 As on 31 March 2018 Formats Store additions Area Area Stores Cities Stores Cities (mn sqft) (mn sqft) 235 124 10.2 50 2851 135 12.1 Large fbb 54 32 0.6 7 61 36 0.6 Stores 7 4 0.1 3 10 5 0.1 Small 538 11# 1.4 128* 6662 133 1.5 Stores Others 30 11 0.3 (17) 13 8 0.1

Cumulative 864 240 12.5 188 1,035 321 14.5

1. Including Hypercity stores 2. Excluding the acquisition of 90 stores of WH Smith. The transaction was closed on 11 May 2018 3. Clusters

Total Retail Area (mn sq.ft) 14.5

12.5 11.6 19 stores. Demerged. ‘Marquee 10.0 ‘Focus on core Locations‘ 9.1 large & small stores’

FY14* FY15* FY16* FY17* FY18 *Excluding HomeTown (Like for Like)

FRL | Investor Presentation | May 2018 7 Long-term Aspiration

(No. of Stores) (No. of Stores)

300 375

285

235 228 61 51 54

FY 16 FY 17 FY 18 2-4 years FY 16 FY 17 FY 18 Long term potential

Small Stores (No. of Stores)

10,000

538 666 320

FY 16 FY 17 FY 18 Long term potential

FRL | Investor Presentation | May 2018 8 OUR LARGE STORES

FRL | Investor Presentation | May 2018 9 Most Customer Centric & Operationally Efficient

Integrated Business Model Largest Consumption database

Strong technology framework

Truly Pan India Top Quality own brands

The Widest Assortment High Margin Model Customer

Leader in several Celebrating every Indian festival Categories

No loss making stores Industry leading loyalty base

FRL | Investor Presentation | May 2018 10 Big Bazaar: The National Retail Chain

One of the most loved brands North: 25%

Synonym of India’s Consumption

Well distributed East: 24% across ‘many Indias’ West: 26%

South: 25%

Note: % indicates FRL revenue share from the regions

FRL | Investor Presentation | May 2018 11 Structurally High Margin Model of Large Stores

Fashion Non-Food Food (General Merchandise + HPC)

Revenue share 34% - 36% 30% - 32% 32% - 35%

Gross Margin 40% - 42% 22% - 24% 15% - 17%

Own Brands share 94% - 96% 8% - 10% 18% - 20%

Blended Gross Margin: ~26 - 27%

FRL | Investor Presentation | May 2018 12 Prominent Market Share across select Fast Growing Categories

Note: Illustrative categories Fashion General Merchandise

Men's Tableware Casualwear 19% 15% 26% 16%

Kidswear 11% 30% Luggage 18% 17%

Women Ethnic 10% 12% Cookware 11% 21%

Food & Beverages FMCG

1 Colour Beverages 12% 15% cosmetics 17% 19%

Packaged Personal food 8% 18% Care 14% 15%

Staples 7% 10% Homecare 13% 19%

Estimated FRL Market share in Organised Retail Expected Category Growth rates for next 3 years Source: Various Industry Reports & Internal Estimates

Note: 1. Beverages refer to non alcoholic beverages excluding milk

FRL | Investor Presentation | May 2018 13 Many of our Private Brands & Segments are Category Leaders…

Women’s Wear 950 1,100 Men’s Wear (₹ cr.) 900 (₹ cr.) 950

440 500 375 250 220 300

Brand 2 Brand 3 Shyla Brand 5 DJ&C Brand 2 Brand 3 Brand 5

Cookware 750 Kids’ Wear (₹ cr.) (₹ cr.) 270 600 500

121 100

Brand 1* Brand 2* WB FBB Retailer 2 Retailer 3 *Estimated Revenue through Modern Retail

Note: Estimated revenue of other brands and retailers from publicly available sources. Kidswear category is compared with other retailers’

FRL | Investor Presentation | May 2018 14 … While new are being created and many extended.

Illustrative new categories & extensions’

Illustrations Only

FRL | Investor Presentation | May 2018 15 FRL | Investor Presentation | May 2018 15 One of the largest database of India’s consumption

And we know their consumption choices in Our Customers Their evolving income levels (est) great depth Age Customers Customer base mix (2018) (Years) Share Women’s Apparel >6.5mn customers 12%

48% Under 25 11% Babycare ~5mn customers 40%

26 to 35 29% Health products ~4.5 mn customers

Customer base mix (2024)

36 to 45 30% Travel related products ~0.9mn customers 26%

46% 46 to 60 22% Instant Noodles ~3.5mn customers 28%

Above 60 8% Annual income (in ₹) : Soaps ~3mn customers 0.3 - 0.5 mn 0.5 - 1 mn >1 mn

*Estimates based on internal data FRL | Investor Presentation | May 2018 17 Future Pay: Creating a unique platform with strong ecosystem synergies

Future Pay Users (in mn) 5.0

~ 5 million users

1.2 ~ 3 million price match transactions

Average spend per user has doubled in the last 12 months

Average top-up amount has increased by >50%

FRL | Investor Presentation | May 2018 18 SMALL STORES BUSINESS

FRL | Investor Presentation | May 2018 19 Member-Centric Model with Robust Enablers

Platform Strategy

Data-led & O2O ready platform Low cost operations blended with own brands’ strategy o Data: Key enabler for our new stores and operations’ alike o Scale-up within clusters to bring o Capabilities in-place for last mile the costs down delivery o Own brands’ implicitly have superior terms & faster execution

Firm Demand Execution

Membership model that Focused clusters & assortment captures high wallet share (4,000 SKUs in defined clusters) o Est 40 - 60% wallet share of over o Regional & local teams driving the 0.5mn members at present execution o Assortment predictability bringing o Model with limited SKUs, clusters in higher efficiencies & targeted customers

FRL | Investor Presentation | May 2018 20 Margin Model of Small Stores

Food Non - Food

Revenue share 73% - 75% 25% - 27%

Gross Margin 15% - 17% 18% - 20%

Own Brands share 25% - 28% 6% - 8%

Blended Gross Margin: ~16 - 17%

FRL | Investor Presentation | May 2018 21 Gateway to Our Small Stores: EasyDay Savings Club

Average Members visit Total Members ~910 over members ~3 times 5,00,000 enrolled per a month active store

Membership Annualized active in spend per member ~544 ~₹ 35,000 stores

Easyday Club Members (in mn) 10

0.5

0.1

Jun '17 Mar '18 Mar'21 E

FRL | Investor Presentation | May 2018 22 Going Deeper in Chosen Clusters

175

149 143 Increasing prominence in 118 large clusters

74 68

53

37 34 34 31 32 31 30 30 24 27 23 20 20 15 9 7 6 0 0

Ludhiana NCR Lucknow Chennai Haryana Haridwar Jammu Kolkata

FY17 FY18

FRL | Investor Presentation | May 2018 23 FINANCIAL UPDATE

2 FRL | Investor Presentation | May 2018 24 4 FY18 Performance Overview

Big Bazaar Sales per sq ft# (₹) Gross Margin (%) Income from Operations (₹ cr.)

25.6% 18,478 14,514

24.8% 17,075 13,018 4,737

4,241

FY17 FY18 FY17 FY18 FY17 FY18 #Sales per sqft for stores that were operational for the full year Same Store Sales Growth (%) EBIT (₹ cr.)

791 14.0% 13.4% 12.0% 9.9%

573 4.4%

3.4%

FY17 FY18 FY17 FY18

*Underlying Y-o-Y growth adjusting for eZone rationalization, HomeTown demerger and GST impact

FRL | Investor Presentation | May 2018 25 Returns and Working Capital

ROCE ROE 21.2% 20.9% 21.2% 20.3%

17.5% 15.5% 14.5% 13.7% 13.4%

9.1%

Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18

Debt/EBIT Inventory Days (Revenue)

3.3 85

81 2.3 80 80 * 79 1.6 1.2 1.3

Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 * Based on annualized revenue from Hypercity stores Note: The ratios pertaining to FY16 have been derived on a comparable basis • Net Debt / EBIT = (Borrowings – Cash & Bank Balances) / EBIT • ROCE = EBIT / Average (Equity + Optionally convertible debentures + Borrowings – Cash & Bank Balances) • ROE = PAT before exceptional items / Average (Equity + Optionally convertible debentures) • Inventory days = (Inventory / Income from Operations) * 365

FRL | Investor Presentation | May 2018 26 Full Year Like to Like Margins

EBITDA (FY18) (₹ cr.) EBITDA (Q4 FY18) (₹ cr.) 4.9%* 5.5%* (42) 4.6% 4.5% (38)

886 243 844 205

FRL Hypercity Rest of FRL FRL Hypercity Rest of FRL

PAT (FY18) (₹ cr.) o Hypercity stores were under upgradation and 3.3% renovation in FY18

o EBITDA at 5.5% on a like-to-like basis

o Hypercity business included for 4 months in FY18 604 615 o We believe Hypercity stores to be EBITDA accretive in first 12 - 18 months of operations 0.1% 11 o PAT (adjusted) for FY18 at 3.3% as compared to 2.2% PAT Non-cash PAT in FY17 (After exceptional item) Exceptional item (Adjusted)

Note: *Adjusting for Hypercity revenue of 188cr & 283 cr for 3 months and 4 months in the quarterly and annual revenues respectively

FRL | Investor Presentation | May 2018 27 Hypercity Retail: Transaction Structure (Closed w.e.f 1st Dec’ 2017)

Transaction Consideration Advantages of this 100% stake purchase by FRL in Hypercity structure Retail India (Pvt) Ltd (“HRIL”)

o Hypercity stores residing in FRL directly

o Significant cost synergies Equity Cash Debt on sourcing & operations ₹ 500cr ₹ 112cr ₹ 285cr Demerger of Retail Business o Historical losses of HRIL from HRIL to FRL amounting to ₹520cr to Write-off of the book value carry forward in FRL as per the Ind-AS

Retail Business o Non-cash & one-time Book Value of 100% ₹604cr adjustment to P&L holding in HRIL

o Realization of ₹8cr from ₹ 612cr Non-Retail the non-core business ₹8cr

Sale of Non-Retail operations for ₹8cr Consideration received at FRL

FRL | Investor Presentation | May 2018 28 Quarterly Performance Overview

Same Store Sales Growth (%)

15.9% 15.1% 15.3% 15.3% 13.1% 12.5% 13.3% 13.8% 13.1% 11.8% 10.2% 10.4% 11.0% 9.9% 8.8% 6.0%

Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18

Income from Operations (₹ cr.) Gross Margin (%) EBIT (₹ cr.) 187 27.0% 4,575

174

4,484 24.9% 4.1% 1,234

1,117 3.9%

Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 *Underlying Y-o-Y growth adjusting for eZone rationalization, HomeTown demerger and GST impact FRL SSSGs are on like-to-like basis FRL | Investor Presentation | May 2018 29 P&L Statement

3 months ended Growth Year ended Growth Particulars (₹ cr.) 31-Mar-18 31-Mar-17 Y-o-Y 31-Mar-18 31-Mar-17 Y-o-Y Total income from Operations 4,575 4,484 18.1%* 18,478 17,075 21.7%* Gross Profit 1,234 1,117 10% 4,737 4,241 12% Gross Margin % 27.0% 24.9% 25.6% 24.8% Employee benefits expense 245 211 16% 930 803 16% Rent including lease rentals 360 350 3% 1,405 1,360 3% Other Expenditures 429 376 14% 1,570 1,496 5% Total expenditure 1,033 937 10% 3,905 3,659 7% Other Income 3 3 23% 12 24 (51%) EBITDA 205 183 12% 844 605 39% Depreciation and amortisation 18 9 102% 53 33 64% EBIT 187 174 7% 791 573 38% EBIT % 4.1% 3.9% 4.3% 3.4% Finance Costs 46 51 (9%) 175 204 (14%) PBT 140 123 14% 615 368 67% PBT% 3.1% 2.7% 3.3% 2.2% Exceptional non-cash item (604) - (604) - PBT (after exceptional item) (464) - 11 368 Tax Expenses - - - - PAT (464) 123 11 368 *Underlying Y-o-Y growth adjusting for eZone rationalization, HomeTown demerger and GST impact FRL | Investor Presentation | May 2018 30 Balance Sheet

As at As at PARTICULARS (₹ cr.) 31 Mar 2018 31 Mar 2017 A) ASSETS Non-Current Assets 1,459 916 Inventories 4,417 3,735 Trade Receivables 270 228 Other Current Assets 1,865 1,902 TOTAL ASSETS 8,011 6,781

B) EQUITY AND LIABILIIES Equity 3,096 2,554 Non-Current Liabilities 171 190 Net Debt 1,042 922 Trade Payables 3,424 2,780 Other Current Liabilities 278 336 TOTAL EQUITY AND LIABILITIES 8,011 6,781

FRL | Investor Presentation | May 2018 31 CONSISTENT CUSTOMER CENTRICITY

3 FRL | Investor Presentation | May 2018 32 2 Big Bazaar: Evolving for Better Customer Service & Centricity

Differentiated Faster checkouts recall in the minds of customers

Sit-down lounges for checkouts Assortment upgradations driving the Productivity Endless aisles

Commenced deployment of latest Digital shelf talkers technologies for the Online2Offline convergence

Experience zones with multi- sensorial food products

Wider merchandise and assortments

Large digital screens

FRL | Investor Presentation | May 2018 33 FBB: Leading Fast Fashion Value Retailer

“Making India thoda aur Stylish”

In-house design teams ensure fastest design- to-store time

Provides style and quality at pocket friendly prices

FRL | Investor Presentation | May 2018 34 Neighbourhood Stores with a Unique Model

Re-imagined neighbourhood food and grocery stores Driven by local communities and consumption patters

Modern and personalized shopping experience

Unique Membership program with a strong and loyal customer base

FRL | Investor Presentation | May 2018 35 Foodhall: Bringing globally best to India’s best

Understanding Best of global and evolving food and local foods and consumption customer delight patterns

Offers unique Stores at the most experiences like premium locations in gourmet kitchens, Mumbai, Bangalore, world foods, spice Delhi and Gurgaon station etc.

FRL | Investor Presentation | May 2018 36 Innovative Digital Campaigns

FRL | Investor Presentation | May 2018 37 Creating the right wave with our Marketing Campaigns

FRL | Investor Presentation | May 2018 38 Celebrating every Festival with India

FRL | Investor Presentation | May 2018 39 FUTURE RETAIL: RIGHT NEXT TO YOU

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 the future, including but not limited to statements about the Company’s strategy for growth, product development, market position, expenditures, and financial results are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these assumptions and expectations are accurate or will be realized. The Company’s actual results, performance or achievements could thus differ materially from those projected in any such forward looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events. Corporate Office: Future Retail Office, 9th Floor, Tower C, 247 Park, LBS Marg, Vikhroli (West) Mumbai: 400083 , +91 22 30842336 | www.futureretail.in