Fiscal 2019 11 th June,19 Corporate Presentation Safe Harbor - - PDF document

SLIDE 1

A venue Supermarts limited zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

Plot No. B-72 & B-72A, Wagle Industrial Estate, Thane (West) , Maharashtra, India - 400 604 Tel.: 91 22 33400500

• Fax: 91 22 33400599
• e-mail: info@dmartlndia.com
• Website: www.dmartindia.com

Date: zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA

n" June, 2019

To,

SSE Limited

Corporate Services Department Phiroze Jeejeebhoy Towers Dalal Street, Mumbai - 400 001

BSE Scrip Code:

540376 The National Stock Exchange of India Ltd. Corporate Communications Department "Exchange Plaza", s" Floor, Bandra - Kurla Complex, Bandra (East), Mumbai - 400051

NSE Scrip Symbol: DMART

Sub: Analyst/ Investor Meet 2019 Dear Sir/Madam, We refer to our letter dated 6th June, 2019 in respect of intimation of an Analyst! Investor Meet

• 2019. Enclosed please find herewith presentation for the said meeting. The same is also uploaded on

the website of the Company. Kindly take the same on record. Thanking You, For Avenue Supermarts Limited

A:]:'; ~~

Company Secretary & Compliance Officer Encl: as above

CIN: L51900MH2000PLC126473

REGISTERED ADDI'!ESS: Anjaneya,

• Opp. Hiranandani

Foundation School,

Powai, Mumbai,

Maharashtra, lndla- 400076

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Corporate Presentation Fiscal 2019

11th June,19

SLIDE 3

Corporate Presentation

Safe Harbor Statement

 The information contained in this Presentation should be considered in the context of the circumstances prevailing at the time and has not been, and will not be, updated to reflect material developments which may occur after the date of the Presentation. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This presentation is based on the economic, regulatory, market and other conditions as in effect on the date hereof. It should be understood that subsequent developments may affect the information contained in this presentation, which neither the Company nor its affiliates, or representatives are under an obligation to update, revise or affirm. You acknowledge and agree that the Company and/or its affiliated companies and/or their respective employees and/or agents have no responsibility or liability (express or implied) whatsoever and howsoever arising (including, without limitation for any claim, proceedings, action, suits, losses, expenses, damages or costs) which may be brought against or suffered by any person as a result of acting in reliance upon the whole or any part of the contents of this Presentation and neither the Company, its affiliated companies nor their respective employees or agents accepts any liability for any error, omission or misstatement, negligent or

• therwise, in this Presentation and any liability in respect of the Presentation or any inaccuracy therein or omission therefrom which might otherwise arise is

hereby expressly disclaimed.  Certain statements contained in this Presentation may be statements relating to the Company’s beliefs, plans and expectations about the future and other forward looking statements that are based on management’s current expectations or beliefs as well as a number of assumptions about the Company’s

• perations and factors beyond the Company’s control or third party sources and involve known and unknown risks and uncertainties that could cause actual

results to differ materially from those contemplated by the relevant forward looking statements. Forward looking statements contained in this Presentation regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. There is no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on forward looking statements, which speak only as of the date of this Presentation.  Certain data contained in this Presentation was obtained from various external data sources, and neither the Company nor any of its affiliates, advisers or representatives has verified this data with independent sources. Accordingly, the Company and its affiliates, advisers and representatives make no representation as to the fairness, accuracy, correctness or completeness of that data, and this data involves risks and uncertainties and is subject to change based on various factors.  The information contained in this Presentation is not to be taken as any recommendation made by the Company or any other person to enter into any agreement with regard to any investment. You will be solely responsible for your own assessment of the market and the market position of the Company and you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. This document has not been and will not be reviewed or approved by a regulatory authority in India or by any stock exchange in India. This document and its contents should not be forwarded or transmitted in any manner to any person other than its intended recipient and should not be reproduced in any manner whatsoever.

SLIDE 4

Corporate Presentation

Table of Contents

1 2 3

Business Overview Operating & Financial Summary Key Financials

SLIDE 5

Business Overview

1

SLIDE 6

Corporate Presentation

Key Product Categories

5

Non-Foods (FMCG) Foods General Merchandise & Apparel

Dairy Fruits & Vegetables Plastic Goods Bed & Bath Crockery Toys & Games Home Care Garments Home Appliances Footwear Personal Care Toiletries Other over the counter products Staples Frozen Products Groceries Processed Foods Beverages and Confectionery Snacks

FY18 Share of Revenue FY19 FY18 Share of Revenue FY19 FY18 Share of Revenue FY19

51.25% 51.55 % 20.46 % 20.03 %

28.29 %

28.42 %

SLIDE 7

Corporate Presentation

Cluster Based Expansion Strategy Continues

6

2002-03

Maharashtra (1)

Maharashtra (70) Karnataka (16) Gujarat (34) Madhya Pradesh & Chhattisgarh (9)

Maharashtra (40) Gujarat (14)

2012-13 2018-19

1 Store 62 Stores 176 Stores

Andhra Pradesh & Telangana (5) Karnataka (3)

Andhra Pradesh (11) Rajasthan (5) NCR (1) Daman (1) Tamilnadu (4) Punjab (4) Telangana (21)

Numbers in bracket represent stores in that particular state

Maharashtra (62) Karnataka (12) Gujarat (30) Madhya Pradesh & Chhattisgarh (9) Andhra Pradesh (10) Rajasthan (5) NCR (1) Daman (1) Tamilnadu (3) Punjab (3) Telangana (19)

2017-18

155 Stores

SLIDE 8

Corporate Presentation

Year Wise Store Additions

7

SLIDE 9

Operating & Financial Summary

2

SLIDE 10

Corporate Presentation

Operating & Financial Summary

9

Like For Like Growth (24 Months)* Revenue from Sales per Retail Business Area sq ft# Total Bills Cuts (in Crs) Retail Business Area at Fiscal End

*: LFL growth means the growth in revenue from sales of same stores which have been operational for at least 24 months at the end of a Fiscal #: Annualized revenue from sales calculated on the basis of 365 days in a year (on standalone basis) divided by Retail Business Area at the end of fiscal

22.4% 21.5% 21.2% 14.2% 17.8%

0% 10% 20% 30% 40% FY15 FY16 FY17 FY18 FY19

2.7 3.3 4.1 4.9 5.9

0.0 1.0 2.0 3.0 4.0 5.0 6.0 FY15 FY16 FY17 FY18 FY19 (mn sq ft)

26,388 28,136 31,120 32,719 35,647

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 FY15 FY16 FY17 FY18 FY19 (INR)

6.7 8.5 10.9 13.4 17.2

1 3.5 6 8.5 11 13.5 16 18.5 FY15 FY16 FY17 FY18 FY19

SLIDE 11

Corporate Presentation

Operating & Financial Summary (Cont’d.)

10

PAT & PAT margin EBITDA^ & EBITDA Margin Net Cash flow from Operations Revenue from Operations

^ EBITDA = Profit / (Loss) before Taxation + Depreciation and amortisation + Finance Costs - Other Income * Revenue from operations is including other operating income and excluding other income

211 318 483 785 936 3.3% 3.7% 4.1% 5.2% 4.7%

0.5% 1.5% 2.5% 3.5% 4.5% 5.5% 150 300 450 600 750 900 1,050 FY15 FY16 FY17 FY18 FY19

(INR Crs

PAT PAT margin (as % of Total Income)

297 424 620 934 1,153

200 400 600 800 1,000 1,200 FY15 FY16 FY17 FY18 FY19

(INR Crs) 454 657 964 1,337 1,642

7.1% 7.7% 8.1% 8.9% 8.2%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 300 600 900 1,200 1,500 1,800 FY15 FY16 FY17 FY18 FY19

INR Crs

EBITDA EBITDA margin (as % of Revenue from Operations)

6,434 8,575 11,881 15,009 19,916

FY15 FY16 FY17 FY18 FY19

(INR Crs)

SLIDE 12

Corporate Presentation

Operating & Financial Summary (Cont’d.)

11

Days Inventory & Days Payables Fixed Asset and Inventory Turnover Ratio

* Fixed Asset Turnover = Revenue from Operations/Total Fixed Assets ^ Inventory Turnover Ratio = Revenue from Operations/Average Inventory Days Inventory = (Average Inventory / COGS)*365 ; Days Payables = (Average Payables / COGS)*365 Debt = Short term borrowings + Long term borrowings + Current portion of Long Term Debt Return on Net Worth = Net profit after tax / Average Net Worth , (Return on Capital Employed = EBIT / (Avg Debt + Avg Equity – Avg Cash – Avg Current Investment) * Proceeds from IPO received on 18 March 2017 has not been considered for calculation purpose for FY17

Debt and Equity Return on Net Worth and Return on Capital Employed

887 1,177 1,481 439 695 1,194 1,512

3,837 4,643 5,594 0.74 0.78 0.39 0.09 0.12 0.0 0.2 0.4 0.6 0.8 1.0

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 FY15 FY16 FY17 FY18 FY19 (INR Crs) Total Debt Equity Debt/ Equity

4.0 4.0 4.4 4.4 4.3 14.4 14.4 14.9 14.4 14.6

0x 3x 5x 8x 10x 13x 15x FY15 FY16 FY17 FY18 FY19 Fixed Asset Turnover Inventory Turnover Ratio

29.7 29.7 28.8 30.0 29.3 8.8 8.4 8.4 8.4 8.3 10 20 30 40 FY15 FY16 FY17 FY18 FY19 Days Inventory Days Payables 19.7% 23.5% 27.7% 18.5% 18.3% 21.0% 23.8% 27.6% 23.2% 25.9% 0% 5% 10% 15% 20% 25% 30% FY15 FY16 FY17 FY18 FY19 (%) Return on Net Worth Return on Capital Employed

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Key Financials

3

SLIDE 14

Corporate Presentation

Key Financials

Standalone and Consolidated Abridged Profit & Loss Account for YE 31 March 2019

13

₹ crs YE Mar 2019 YE Mar 2018

YTD19/ YTD18

YE Mar 2019 YE Mar 2018

YTD19/ YTD18

Sales 19916.3 15008.9

32.7%

20004.5 15033.2

33.1%

Tot Income 19967.7 15081.5

32.4%

20052.9 15102.5

32.8%

COGS 16979.9 12648.9

34.2%

17000.8 12635.6

34.5% Gross Contr 14.7% 15.7%

• 98 bps

15.0% 15.9%

• 93 bps

Empl Exp 335.0 276.6

21.1%

355.4 282.6

25.8% % of Tot Inc 1.7% 1.8%

• 16 bps

1.8% 1.9%

• 10 bps

Other Exp 959.1 746.1

28.5%

1015.0 762.2

33.2% % of Tot Inc 4.8% 4.9%

• 14 bps

5.1% 5.1% 0 bps

EBITDA 1642.2 1337.3

22.8%

1633.3 1352.8

20.7% EBITDA % 8.2% 8.9%

• 64 bps

8.1% 9.0%

• 81 bps

Fin Costs 47.2 59.4

• 20.6%

47.2 59.5

• 20.7%

Dep & Amort 198.8 154.7

28.5%

212.5 159.0

33.6%

PBT 1447.6 1195.9

21.0%

1421.9 1203.6

18.1% PBT % 7.2% 7.9%

• 68 bps

7.1% 8.0%

• 88 bps

Acq Gain 0.0

18.5

• 100.0%

Tax 511.3 411.2

24.3%

519.5

415.8

24.9%

PAT

936.4 784.7

19.3%

902.5

806.3

11.9% PAT % 4.7% 5.2%

• 51 bps

4.5% 5.3%

• 84 bps

Avenue Supermarts Ltd STANDALONE Avenue Supermarts Ltd CONSOLIDATED

SLIDE 15

Corporate Presentation

Key Financials

Subsidiaries

14

₹ crs YE Mar 2019 YE Mar 2018

YTD19/ YTD18

YE Mar 2019 YE Mar 2018

YTD19/ YTD18

YE Mar 2019 YE Mar 2018

YTD19/ YTD18

YE Mar 2019 YE Mar 2018

YTD19/ YTD18

YE Mar 2019 YE Mar 2018

YTD19/ YTD18

Sales 920.1 701.9

31.1%

143.6 44.1

225.3%

23.6 17.8

32.4%

0.8 0.8

0.0%

0.0 0.0

0.0%

Tot Inc 920.1 701.9

31.1%

144.2 44.6

223.5%

24.4 18.3

33.7%

0.8 0.8

1.9%

0.0 0.0

0.0%

COGS 882.6 675.2

30.7%

127.8 40.9

212.7%

10.6 8.2

28.5%

0.0 0.0

0.0%

0.0 0.0

0.0% GC 4.1% 3.8% 28 bps 11.0% 7.5% 358 bps 55.2% 53.8% 137 bps 100.0% 100.0% 0 bps 0.0% 0.0% 0 bps

Empl Exp 4.3 3.1

36.5%

16.1 12.8

25.4%

0.0 0.0

466.7% % of Tot Inc 0.5% 0.4% 2 bps 11.2% 29.0% -1785 bps 0.0% 0.0% 2 bps

Other Exp 14.1 10.4

35.7%

40.1 28.3

41.6%

5.2 3.8

38.5%

0.0 0.0

77.8%

0.0 0.0

0.0% % of Tot Inc 1.5% 1.5% 5 bps 27.9% 64.2% -3624 bps 22.1% 21.1% 97 bps 1.3% 0.7% 56 bps 0.0% 0.0% 0 bps

EBITDA 19.1 13.1

46.1%

• 40.4
• 37.9

6.6%

7.8 5.8

34.0%

0.7 0.7

• 0.6%

0.0 0.0

0.0% EBITDA % 2.1% 1.9% 21 bps

• 28.0%
• 84.9%

5695 bps 32.0% 31.9% 6 bps 96.7% 99.1%

• 240 bps

0.0% 0.0% 0 bps

Fin Costs 1.8 2.9

• 40.0%

0.0 0.0

• 100.0%

0.0 0.0

33.6%

Dep & Amort 1.8 1.6

14.5%

11.1 10.6

3.8%

0.7 0.6

18.4%

0.1 0.1

0.0%

0.0 0.0

0.0%

PBT

15.6 8.6

80.9%

• 50.8
• 48.1

5.7%

7.9 5.6

39.7%

0.6 0.6

1.6%

0.0 0.0

0.0% PBT % 1.7% 1.2% 47 bps

• 35.2%
• 107.9%

7263 bps 32.3% 30.9% 139 bps 81.6% 81.8%

• 21 bps

0.0% 0.0% 0 bps

Tax 5.5 2.9

87.1%

0.0 0.0 2.2 1.5

51.4%

0.1 0.1

8.4%

0.0 0.0

0.0%

PAT

10.1 5.7

77.7%

• 50.8
• 48.1

5.7%

5.7 4.2

35.6%

0.5 0.5

• 0.2%

0.0 0.0

0.0% PAT % 1.1% 0.8% 29 bps

• 35.2%
• 107.9%

7263 bps 23.2% 22.9% 33 bps 62.6% 64.0%

• 135 bps

0.0% 0.0% 0 bps

Align Retail Trades Pvt Ltd Avenue E-Commerce Ltd Avenue Food Plaza Pvt Ltd Nahar Seth and Jogani Developers Pvt Ltd Reflect Wholesale and Retail Pvt Ltd

SLIDE 16

Corporate Presentation

Thank you!