Investor Update Q4 FY16 / FY16

(Jan 16 Mar 16) / (Apr 15 Mar 16)

Launched various multi channel promotional initiatives during the year

Current presence in 82 cities across the country

Reduced finance cost by 23 cr as compared to FY15

Mr. Kaleeswaran Arunachalam appointed as the new CFO

*Subject to shareholder approval

(40 paisa per share)*

v Board of Directors have approved a dividend of 20%

Mr. Bijou Kurien, a retail sector veteran joins FLFs Board of

Directors*

v Key Appointments

v Reported first year of positive Free Cash Flow of 85 cr

v Debt repayment of 104 cr largely achieved from internal accruals

v Reported a robust top line of 3,300 cr with a Gross Margin of 38%

v Expanded geographic presence in 12 new cities during the year

v Launched new, redesigned and sophisticated Central with new and exciting features

v Leveraging design ideas from Future Style Lab, launched Cover Story, Indias first fast fashion brand for women

trends

v Opened the first International Design Studio, Future Style Lab in London to stay ahead of ever evolving fashion

v Focus continues on growing and expanding the Brands business and distribution network

Key Highlights

FY 15-16 At a Glance

On YoY basis, EBITDA

improvement of 161 bps

margins

exhibited

Gross space addition during Q4 FY16 was ~0.28

million sq ft

fashion formats (including EBOs)

v Operates 4.97 million square feet of retail space across

v Reported EBITDA margins of 10.2% for Q4 FY16

respectively

v Reported SSGs of 9% and 8.2% in Retail & Central

in MRP Sales as compared to Q3 FY16

v Jealous 21 also reported a strong double digit growth

MRP Sales

v Scullers reported a robust 63% sequential growth in

FLF Brands in FY16

v Top six brands contributed ~60% of Total Retail Sales of

38% in Q3 FY16

v FLF brands contributed 40% of Total Sales compared to

Q4 FY16 compared to 801 cr for Q4 FY15

921

Total Sales

90
63
32

29

Scullers

51

24

Indigo
Nation
Nati
Na
tion
ti
on

47

23

Jealous

40

Retail Sales 3

834

48

2:

Includes SIS & consignment sales

Third party brands represent non FLF brands and includes SIS sales and consignment sales
3: Retail Sales indicate Net Sales Before Tax

1:

Lee Cooper
Coop
Co
oper John Miller

180

MRP Sales

Top Brand Performance Q4 FY16 ( cr)

Net Sales after Tax

Less: Taxes

40

556

Third Party Brands2

Less: Consignment / SIS

236

- Licensed Brands

365

20
Bare

36

Q4 FY16
129

Total Sales1 Summary ( cr)

- Owned Brands

FLF Brands

v Reported Total Income from Operations of 850 cr for Particulars

Snapshot Q4 FY16

Resulting in finance costs of decreased by 23 cr

for the year

ft

v Gross space addition during FY16 was ~ 0.66 million sq

internal accruals

v Total debt reduction of 104 cr mainly through

v Reported EBITDA margin of 9.9%

respectively

243
136

94

Indigo
Nation
Nati
Na
tion
ti
on

165

98

Scullers

161

98

Bare

158

2:

Includes SIS & consignment sales

Third party brands represent non FLF brands and includes SIS sales and consignment sales
3: Retail Sales indicate Net Sales Before Tax

1:

Lee Cooper
Coop
Co
oper John Miller

297

MRP Sales

Retail Sales 3

567

86

Jealous

145

3,229

Net Sales after Tax

v Reported SSGs of 8.6% & 10.3% in Retail & Central

184

Less: Taxes

Top Brand Performance FY16 ( cr)

179

3,592

2,216

916

460

Less: Consignment / SIS

Total Sales

Third Party Brands2

- Licensed Brands

double digit growth in MRP Sales as compared to FY15

v John Miller, BARE and Indigo Nation reported strong

registering a robust growth of 19% on MRP Sales on

YoY basis

v Lee Cooper continues to remain our leading brand

v Increased from 55% in FY15

FLF Brands in FY16

v Top six brands contributed ~59% of Total Retail Sales of

v FLF Brands contributed 38% of Total Sales in FY16

- Owned Brands

1,376

FLF Brands

for FY16 as compared to 3,134 cr for FY15

FY16

Total Sales1 Summary ( cr)

v Reported Total Income from Operations of 3,300 cr Particulars

Snapshot FY16

May16

v First Exclusive Outlet to open at Infinity 2 Malad, Mumbai in end of

stores across India

v Launched at Gurgoan Central, followed by launches at various Central

of modern and traditional clothing

v Designed at Future Style Lab in London, Cover Story is perfect blend

offering the latest fashion trends

v Launched Cover Story, Indias first fast fashion brand for women

FLF Presents Cover Story, a Fast Fashion Brand for

Women

fabrications

Click Here
To watch the ad

v The collection focuses on the distressed worn-out look with unique

Spring Summer 16 collection

v Lee Cooper launched an exciting new TV commercial to promote its

TV Commercial for Spring Summer 2016 Collection

Lee Cooper Media Campaigns & New Collections

amongst the independent fashion conscious women of Mumbai

v Mumbai Metro branding provides a reach of over 7 lac commuters per day and is an effective channel to position the brand

v Campaign is targeted at young college girls and women, which are core customers of the brand

v Jealous 21 recently rolled out an Out-Of-Home media campaign at Mumbai Metro and Stations

Brand Business Media Campaigns

#StartUpNation campaign has built up a powerful

connect with todays youth

v Over the past few months, Indigo Nation through its

biggest start up conference Unplugged 2016

v Indigo Nation was the style partner for the Indias

Indigo Nation Styles Up India's Startup Superheroes

to

its

core

consumers,

Music

image surrounding music and build a strong connect

with its consumer

v The event helps Converse further boost its strong brand

stay relevant
Aficionados

v A perfect platform to enhance the brands appeal and

Converse Rubber Tracks, a platform to showcase talent

for unsigned bands

v Converse hosted the second season of Road to

Road to Converse Rubber Tracks

Brand Business Promotions

aLL Spring-Summer Collection Brings to the Table Perfect Recipe to

Beat the Heat!

Presenting
the
Collection from Ceriz!

Spring Summer Collection Launches

Summer

up tips will be shared

10

v Beauty expert sessions will be held for customers where celebrity look make-

sure about the purchase instantly

v Merchandise can be reserved for up to 48 hours in store, if customers are not

merchandise delivered at their home

v Customers can WhatsApp their requirements, receive options and get the

appointment to revamp their entire wardrobe

Key Exciting Features

v Fashion stylists advise on latest fashion trends, customers can also book an

v Redesigned Central offers hassle free shopping, more space, minimalistic fixtures and a classy fashion boutique feel!

v Since its launch 12 years ago, the very 1st Central is back in a new, exciting avatar!

All New, Redesigned and Sophisticated, Bangalore

Central Opens Doors!!

v Central will also connect and attract new customers via this TVC

v Showcasing Centrals core strength a complete and unique shopping experience for latest fashion

channels, music channels and news channels etc.

Click Here
To watch the ad

11

v Effectively targeting urban, up market consumer, the TVC is being telecasted on 33 channels including leading English movie

v Central makes its debut on the small screen

Centrals First TV Commercial

campaigns leading to significant customers stickiness

v With a loyalty customer base of ~1.8mn customers, launched targeted

Leveraging Loyal Customer Base

v Emerged as a strong channel, with exclusive lines designed for the format

Strong Channel for FLF

layouts

v Bringing new buyers to the format with new communication and new store

Attracting New Customers

now present in 6 locations across the city

v In April 2016, Brand Factory doubled its reach in Mumbai with the format

Network Expansion

v Reiterated its dominance in both quality and price

promotions

v Campaign kick started by 3 full-page ads in leading national dailies &in store

commerce players head on

v Brand Factory launched innovative promotional campaigns taking the e-

Promotional Campaigns

Brand Factory Media Campaigns and Network

Expansion

12

Gross space addition during Q4 FY16 was ~0.28 mn sq ft

Central

Format

aLL

EBOs and Others

region, Jaipur,
Aurangabad

Ahmadabad,

Mumbai

and

Strengthened presence in Hyderabad, NCR

with its 1st store in the city

Opened 10 EBOs & other small format stores:

Created presence in Ongole (Andhra Pradesh)

Also opened 1 store in NCR region

its 1st store in the city

Opened 2 aLL stores in NCR region and Mumbai

Lee Cooper established its presence in Palai (Kerala) with

and Bangalore

369

188

55

Retail

9.0%

8.2%

Central

SSGs (%) for Q4 FY16

4.97

0.27

0.15

13

42

0.07

1.29

31

53

3.19

# of stores

Planet Sports and Other includes Converse

EBO and Others includes franchise, I am In and Lee Cooper brand stores

Opened 3 Brand Factory stores in Mumbai, Hyderabad Grand Total

Lucknow

Established Centrals presence in Bhubaneswar and Planet Sports & Other

and small store formats

Retail space
(mn sq ft)

Store Network as of 31st March 2016

New Store Openings

Brand Factory
v Q4 FY16 witnessed store opening in both large store formats

formats (including EBOs)

Retail Presence
v Operates 4.97 million square feet of retail space across fashion

Growth and Expansion in Distribution Network (1/2)

Ujjain

Guwahati
Guwa
Guwa

Disclaimer: The map used is only for visual representation purpose and is not to scale.

During the fiscal year, FLF expanded its

presence to network into 12 new cities

14

4 Central, 9 Brand Factory, 12 aLL

stores, along with Planet Stores and other
brand outlets

During FY16 85 new stores were added

across formats

formats and small store formats

New Store Openings

v FY16 witnessed store opening in both large store

cities

v Central is currently present in 24 cities

v Brand Factory has expanded its network to 19

v FLF is now present in 82 cities across the country,

million sq ft

Note: The above map represents current store network of FLF excluding EBOs and other specialty formats.

Thiruvananthapuram

Mysore
My
Calicut
Coimbatore
Kochi
Kottayam

Kolkat
Kolkata
Kolk
Ko

Asansol

Siliguri
Siligu
Sili
liligu
gu

Bhubaneswar
Bhub
Bh
uban
ub

Ranchi

Patna

Visakhapatnam
Hyderabad
Hubli
Vijayawada

Secunderabad

Panaj
i
Mangalor
alor Bengaluru
ngal
Chennai
e

Thane

Nagpur
gp

Raipur
Ra

Lucknow
Kanpur
npur

Bhopal

Na Mumbai
Navi
Pune
Pu

Indore
Surat Nasik

Mumbai

Vadodara
ra

Ahmedabad

Jaipur

Delhi & NCR

De

Chandigarh
Chandi

Mohali

Retail Presence
v Gross space addition during FY16 was ~0.66

Growth and Expansion in Distribution Network (2/2)

Q4 FY16
834
16
850
529
322
37.8%
48
94
93
235
87
10.2%
1
1
0
45
42
33
9
4
5

Quarter ended
Q3 FY16
857
20
878
533
344
39.2%
48
96
99
243
101
11.5%
1
1
0
40
62
33
29
9
20

Note: Standalone results do not include investee companies.

Income Statement (` cr.)

Particulars
Net Sales
Other Operating Income
Total Income from Operations
COGS
Gross Profit
Gross Margin %
Employee Benefits Expense
Rent including Lease Rental
Other Expenditures
Total Expenditure
EBITDA
EBITDA Margin %
Other Income
Other Income
Profit from sale of investment
Depreciation
EBIT
Finance Costs
PBT
Tax expense
Net profit
Q4 FY15
783
18
801
502
299
37.4%
44
92
95
231
69
8.6%
8
3
5
35
41
37
5
-1
6

Largely driven by optimization of

total operating expenses

profit from sale of stake in Celio

v Q4 FY15 other income mainly includes

compared to Q4 FY15

v Finance costs decreased by 3 cr

Q4 FY15 to 10.2% in Q4 FY16

v EBITDA margins expanded from 8.6% in

basis to 37.8% in Q4 FY16

v Gross margins grew by 40bps on YoY

15

Financial Performance Quarterly Income Statement

Twelve Months ended

FY16
FY 15
3,229
3,064
71
70
3,300
3,134
2,046
1,919
1,255
1,215
38.0%
38.8%
189
169
373
346
368
369
929
885
325
330
9.9%
10.5%
16
22
6
8
11
14
161
170
180
182
135
158
45
23
16
5
29
19

Note: Standalone results do not include investee companies.

Income Statement (` cr.)

Particulars
Net Sales
Other Operating Income
Total Income from Operations
COGS
Gross Profit
Gross Margin %
Employee Benefits Expense
Rent including Lease Rental
Other Expenditures
Total Expenditure
EBITDA
EBITDA Margin %
Other Income
Other Income
Profit from sale of investment
Depreciation
EBIT
Finance Costs
PBT
Tax expense
Net profit

FY15 other income mainly includes profit

from sale of stake in Celio

v Reported a PAT of 29 cr for FY16

to FY15

v Finance costs decreased by 23 cr compared

FY16 other income includes profit from

sale of residual stake in BIBA

v Other Income

16

Financial Performance Full Year Income Statement

-211

Note: Standalone results do not include investee companies.

80cr during the period

v Total Capital Employed witnessed a reduction of

0.69x in FY16

Style Lab

v Investments were also made in setting up Future

Holii, Mineral, Tresmode, Giovani

-8

48

302

v During the year, the Company further invested in

-45

-9

Dividend Paid (Including DDT)

Net Increase in Cash & Cash Equivalents

-21

Net Investment in Subsidiaries / Associates

Interest & Dividend Income

Proceeds from Issue of Shares / CCD

-311

-249

158

321

FY 15
231

v Debt/Equity improved from 0.74x in FY15 to

1,474
306
1,766
138
967
2,441

85

Free Cash Flow

-104

135

Interest Paid
Repayment of Loan

138

Net Capex

Less:-

FY16
358

v Reported Free Cash Flow of 85 cr

1,429
344
1,818
141
1,077
2,374

Fixed Assets
Non-Current Assets
Current Assets
Less: Non-Current Liabilities
Less: Current Liabilities
Total Net Assets

31-Mar-15
1,600
1,244
2,844
344
60
2,441

Cash Flow (` cr.)

Net Cash From Operating Activities

v Total debt reduced by 104 cr in FY16

31-Mar-16
1,623
1,141
2,764
375
15
2,374

Balance Sheet ( cr.)

Particulars
Shareholders Funds
Total Debt
Total Capital Employed
Less: Current Investments
Less: Cash & Bank Balances
Net Adjusted Capital Employed

As of

Balance Sheet and Cash Flow

17

*Subject to shareholder approval

Management Education institutions, the World

Retail Congress, and Mentor to the FICCI Retail
Committee

v He is also on the Advisory Board of leading

advises several consumer product

companies and mentors a few start-ups

v Also

member of the Strategic Advisory Board of L

Capital, Asia (sponsored by the LVMH Group)

v Currently, he is an independent consultant and

Limited, Titan industries Limited and Hindustan

Unilever Limited

v His previous assignments include Reliance Retail

associated with marquee brands in the fast

moving consumer products, consumer durables
and retail industry in India for over 34 years

v Mr. Kurien, a retail sector veteran has been

(Independent) Director

v Mr. Bijou Kurien appointed as an Additional

Bijou Kurien - Independent Director*

Key Appointments

ICAI, Master of Business Administration

(Finance), Singapore and Bachelor of Commerce

v He is a qualified Chartered Accountant from

including Change Management, expertise in

Financial Planning and Business Analytics with
experience in working at India and abroad

v He led Finance and Business Transformation

International (Cadbury), Aditya Birla Nuvo

Limited (Madura Garments) and TVS Motor
Company Limited

v Previously, he has worked with Mondelez

years experience in Food & Fashion Industry

v Mr. Kaleeswaran Arunachalam has about 15

Kaleeswaran Arunachalam - CFO

18

Future Lifestyle Fashions Ltd

Knowledge House, Shyam Nagar, Off Jogeshwari - Vikhroli Link Road,Jogeshwari (East), Mumbai 400 060 (: +91 22 308423368: www.futurelifestyle.in
Incase if any queries please contact: investorrelations@futurelifestyle.in

Registered and Corporate Office:

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 Companys 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 Companys 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.

Disclaimer:

Thank You