KDDL Ltd — Interim / Quarterly Report 2020

Aug 25, 2020

KDDL Limited

Kamla Centre, SCO 88-89, Sector 8-C, Chandigarh - 160 009, INDIA. Tel: +91 172 2548223/24, 2544378/79 Fax: +91 172 2548302, Website:www.kddl.com CIN-L33302HP1981PLC008123

Date : 25[th] February, 2020

Ref : KDDL/CS/2020-21/39

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National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra, Mumbai - 400 051

BSE Limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400001

Trading Symbol : KDDL

Scrip Code : 532054

Subject: Result Update Presentation

Dear Sir/ Madam,

Please find enclosed Result Update Presentation for Q1FY21.

Kindly take the same on record.

Thanking you,

Yours truly

For KDDL Limited

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Brahm Prakash Kumar Company Secretary

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KDDL Limited & ETHOS Limited

Result Update Presentation August 2020

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Safe Harbor

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This presentation and the accompanying slides (the “Presentation”), which has been prepared by KDDL Ltd and Ethos Limited, a material subsidiary of KDDL Limited, (the “Company”), solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forwardlooking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

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Q1FY21 Performance Overview

Q1FY21 Performance

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Standalone Performance (Rs. Crs)

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Revenue Gross Profit
48.0 35.6
21.0 15.2
Q1FY20 Q1FY21 Q1FY20 Q1FY21
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Ethos Performance (Consolidated) (Rs. Crs.)

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Revenue Gross Profit
102.1 30.5
11.7
32.8
Q1FY20 Q1FY21 Q1FY20 Q1FY21
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Financials are with applicability of IND AS 116
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COVID-19 Impact on the Business (1/2)

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• Business • The outburst of Pandemic COVID-19 has disrupted businesses through out. KDDL was also Operations affected with COVID-19 from March onwards as all factories, retail stores and offices were closed due to strict lockdown and curfew across the country.

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• Most of the manufacturing operations are operational now, however at lower capacity utilization due to compliance of MHA guidelines related to social distancing, transportation, restrictions on permitted strength etc. We are witnessing gradual growth & recovery in revenue.

• About 34 of our total 47 Ethos retail Stores are now operational. Stores are being open for limited time and with limited staff ensuring strict social distancing measures. We are witnessing gradual improvement in visitor footfalls week on week and hope to be back to pre-COVID levels by Q4FY21.

• Financial • Q1FY21 was impacted as company could not operate for a significant part of Q1 due to strict Impact lockdown imposed. As a result, profitability of the company was affected due to decline in revenues however expenses which are fixed in nature continue to occur.

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• We expect business to stabilize and profitability to normalize going forward as lockdown is further eased.

Steps Taken For

• We have commenced the operations in all factories and offices after complete sanitisation of the

• Smooth operations facilities.

• We have also implemented strict guidelines and undertaken necessary precautionary measures for social distancing, limited manpower, staggered working, work from home, regular screening and sanitisation, preventive health check-ups and necessary guidance and advisory for providing a safe working environment to all employees.

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COVID-19 Impact on the Business (2/2)

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• Optimising Costs • We are taking all necessary actions and available options for reducing costs, overheads and deferring the long-term commitments of expenditures.

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• In addition, all avenues and efforts are being initiated for enhancing the revenue and income of the company to minimise the impact of COVID-19 on the profitability of the company.

Comfortable

• Liquidity Position • We will be able to meet all our liabilities and cater to the requirements of the customers as our financial position and balance sheet is strong. Our liquidity position is adequate to meet all our commitments. We remain committed to raising need based additional debt or equity for the business sustenance and development.

Demand

• Assessment • Based on the prevailing situation and assessment of the market, we expect the markets to approach some kind of normalcy by the second half of the financial year.

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• Chinese markets were the first to open up which is the biggest market for Swiss brands and now Swiss watch industry has also commenced operations which should improve demand further.

• We also foresee new opportunities for us in the field of precision engineering business as we are also witnessing increase in flow of enquires from very reputed overseas customers.

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Standalone Profit & Loss

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Profit & Loss (Rs. Crs.)	Q1FY21	Q1FY20
Revenue	21.0	48.0
Cost of Goods Sold	5.8	12.5
Gross Profit	15.2	35.6
Employee Expenses	10.8	14.1
Other Expenses	5.7	13.1
EBITDA	-1.3	8.3
Margin (%)	-6.3%	17.3%
Other Income	0.8	0.9
Interest	2.4	2.1
Depreciation	3.0	3.0
PBT	-5.9	4.1
Tax	-1.1	1.3
PAT	-4.8	2.9

Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with Q1FY20

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Financials are with applicability of IND AS 116

Consolidated Profit & Loss

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Profit & Loss (Rs. Crs.)	Q1FY21	Q1FY20
Revenue	53.0	152.9
Cost of Goods Sold	28.2	84.9
Gross Profit	24.8	68.0
Employee Expenses	19.5	25.8
Other Expenses	11.6	24.3
EBITDA	-6.3	17.9
Margin (%)	-11.9%	11.7%
Other Income	5.6	0.8
Interest	7.2	6.5
Depreciation	12.3	10.9
Share of Loss of equity accounted investees	0.2	0.0
PBT	-20.3	1.3
Tax	-4.7	1.5
PAT	-15.6	-0.1
Minority Interest	-0.1	-0.6
PAT After Minority Interest	-15.5	0.4

Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with Q1FY20

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Financials are with applicability of IND AS 116

Adjusted Consolidated Profit & Loss

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Profit & Loss (Rs. Crs.)	As Reported	As Reported	Adjusted for INDAS 116	Adjusted for INDAS 116
	Q1FY21	Q1FY20	Q1FY21	Q1FY20
Revenue	53.0	152.9	53.0	152.9
Cost of Goods Sold	28.2	84.9	28.2	84.9
Gross Profit	24.8	68.0	24.8	68.0
Employee Expenses	19.5	25.8	19.5	25.8
Other Expenses	11.6	24.3	19.8	32.1
Normalized EBITDA	-6.3	17.9	-14.6	10.2
Normalized Margin (%)	-11.9%	11.7%	-27.5%	6.7%
Other Income	5.6	0.8	5.6	0.8
Interest	4.2	4.1	4.2	4.1
INDAS 116 Interest	3.0	2.4	-	-
Depreciation	4.9	3.8	4.9	3.8
INDAS 116 Depreciation	7.4	7.0	-	-
Share of Loss of equity accounted investees	0.2	0.0	0.2	0.0
PBT	-20.3	1.3	-18.2	3.0

Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with Q1FY20

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Financials are with applicability of IND AS 116

Ind AS 116: Impact on Financials

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• The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 102.2 Crores and equivalent to the lease liability of Rs. 102.2 Crores as on 30[th] June 2020

• Overall balance sheet will increase by the amount of asset created for Leases. This will have an impact on Profitability as under:

Profit & Loss Impacts	Profit & Loss Impacts	For Q1FY21 (Rs. Cr.)	Financial impact
Other expenses (Rent)	Decrease in Rent expense	-8.3	This affects other expenses, depreciation and finance cost in the Profit & loss statement & consequently impacts EBITDA and PBT of the company
Finance costs	Increase in Finance cost	3.0
Depreciation	Increase in Depreciation	7.4
Profit before tax	Decrease in PBT	-2.1

There would be no change in the cash flow of the company due to applicability of INDAS 116

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Standalone Balance Sheet

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Assets(Rs. Crs.)	Mar-20	Mar-19	Liabilities(Rs. Crs.)	Mar-20	Mar-19
Non-current assets	216.0	185.2	Equity	169.5	167.1
Property,plant and equipment	93.8	94.1	Equityshare capital	11.7	11.7
Capital work-in-progress	2.2	2.4	Other equity	157.8	155.4
Right-of-use asset	12.7	-
Investment Property	0.5	-	Non-current liabilities	58.5	39.5
Other intangible assets	0.4	0.7	Financial Liabilities
Financial assets			(i)Borrowings	45.2	34.5
(i)Investments	100.7	79.7	(ii)Lease Liabilities	5.9	-
(ii)Loans	2.2	2.2	(iii)Other financial liabilities	1.2	0.7
Income Tax Asset	2.3	5.0	Provisions	1.1	0.1
Other Non Current Assets	1.3	1.0	Deferred tax liability (net)	5.1	4.2
Current assets	84.1	77.5	Current liabilities	72.1	56.1
Inventories	32.1	30.7	Financial Liabilities
Financial assets			(i)Borrowings	19.3	7.4
(i)Trade receivables	24.6	23.7	(ii)Lease Liabilities	2.0	-
(ii)Cash and cash equivalents	9.5	2.5	(iii)Tradepayables	13.5	15.7
(iii)Other bank balances	5.4	6.1	(iv)Other financial liabilities	31.1	26.3
(iv)Loans	1.9	1.8	Other current liabilities	3.2	2.8
(v)Other financial assets	2.1	5.7	Provisions	2.7	2.7
Other current assets	8.4	7.1	Current tax liabilities(net)	0.3	1.3
Total Assets	300.1	262.8	Total Liabilities	300.1	262.8

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Consolidated Balance Sheet

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Assets(Rs. Crs.)	Mar-20	Mar-19	Liabilities(Rs. Crs.)	Mar-20	Mar-19
Non-current assets	299.2	183.9	Equity	227.4	235.0
Property, plant and equipment	158.6	143.2	Equityshare capital	11.7	11.7
Capital work-in-progress	2.9	6.8	Other equity	174.0	179.1
Right-of-use asset	109.6	-	Non ControllingInterest	41.7	44.1
Other intangible assets	0.8	0.8
Intangible assets under development	0.1	0.4	Non-current liabilities	174.0	73.7
Equityaccounted investees	1.0	0.3	Financial Liabilities
Financial assets			(i)Borrowings	80.1	67.2
(i)Investments	0.5	0.5	(ii)Lease Liabilities	85.4	-
(ii)Loans	10.2	12.4	(iii)Other financial liabilities	2.1	1.1
(iii)Other financial assets	1.3	1.2	Provisions	1.3	1.2
Income Tax Asset	3.7	6.3	Deferred tax liability (net)	5.1	4.2
Deferred tax assets(net)	7.2	6.3
Other Non Current Assets	3.4	5.6
			Current liabilities	255.8	210.1
Current assets	358.0	335.0	Financial Liabilities
Inventories	252.7	239.9	(i)Borrowings	74.3	61.9
Financial assets			(ii)Lease Liabilities	20.9	-
(i)Trade receivables	28.5	31.1	(iii)Tradepayables	87.3	84.6
(ii)Cash and cash equivalents	22.8	16.0	(iv)Other financial liabilities	52.6	45.8
(iii)Other bank balances	5.7	6.4	Other current liabilities	13.8	9.4
(iv)Loans	8.0	4.8	Provisions	6.2	4.0
(v)Other financial assets	6.6	5.9	Current tax liabilities(net)	0.7	4.3
Other current assets	33.7	30.9
Total Assets	657.2	518.9	Total Liabilities	657.2	518.9

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Manufacturing Business Overview

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Introduction - Watch Dials and Hands Business

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Watch Dials
Watch Hands
Value
Proposition
▪ Commercial operations
began in 1983 ▪ Commercial operations
▪ Leading Global supplier of began in 1996 ▪ Deep Understanding of the
Global Watch Industry
Watch Dial serving many ▪ Only supplier in India and
well-known brands all
one of 5 independent ▪ Established relationships
over the world
manufacturers globally; with Swiss Watch makers
as well as Indian Watch
facilities located at
makers
▪ Manufacturing facilities Bengaluru
located at Parwanoo &
▪ Recently acquired Estima ▪ Consistent Manufacturing
Derabassi, near
AG in Switzerland; to on basis International
Chandigarh in India Quality norms
enhance presence in mid-
▪ Capability to manufacture priced segment European
dials with high & complex Brands
features
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About “Estima AG”

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Acquired in 2019

• Estima was established as a maker of watch hands in Switzerland in 1924

About

“Estima AG”

• It was a leading supplier to Swiss and other European watch brands in the mid-priced segment and enjoyed an excellent reputation

• However, over last 10 years, it was unable to keep up with market changes and lost market share leading to declining turnover and mounting losses

Strategic Rationale for Acquisition

▪ Estima was a competitor of the Company in the business of watch hands manufacturing ▪ Has a well established name, valuable production infrastructure and will be serve as a good platform to establish a foothold in Swiss watch component manufacturing

▪ Will help capture additional market share of customers in European market serviced by Estima

Estima AG’s 2020 Turnover – CHF 1.9 Million

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Introduction - Precision Engineering Business

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01
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Value Proposition

Eigen offers a full package of services, ranging from design and development to full scale production, providing customers with optimized supply chain solutions

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02
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Capabilities

We address various segments such as Electrical, Electronics, Automobile, Telecommunications, medical equipment, Aerospace, Consumer Durables etc

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03
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Customers

Enabling our customers to meet their design and production needs for over 12 years. We have some of the most wellknown names in their industry as our esteemed customers

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Stable Manufacturing Performance*

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Revenue (Rs. Crs.) EBITDA (Rs. Crs.)
+10%
+13% 181 32
176
29
27
146
125 22
FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
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*Excludes the Financial Performance of Estima AG, Switzerland

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Ethos Q1FY21 Snapshot

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Renewed Strategy for ETHOS

Stores Optimization

Uniquely Positioned to Grow

Post Pandemic, Swiss brands may focus more on developed markets and less on developing like India. Ethos is uniquely positioned to partner with them and grow these swiss brands with its network & reach without them having

In depth assessment of each store's performance across India . Accelerated Closure of Stores which fails our cost vs. benefits assessment. Focus towards Bigger Flagship Stores that attracts more footfalls. Already closed 5 stores recently

to deploy their own resources and has a proven

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track record for the same
Uniquely
Costs Stores Digital
Positioned
Leveraging Digital
Costs Optimization
Capabilities
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Ongoing Rental Negotiation with Mall Owners for rent reduction or part waiver of rentals or a combination of both to optimize rental costs. Deferment of all unproductive expenses & capex in the medium term to conserve cash while ensuring that spend on ‘good costs’ imperative for business recovery is not compromised

We have the most advanced digital communication and e-commerce capabilities in the country for any luxury product. With the change in customer behaviour, we will be best positioned to leverage these capabilities and increase market share substantially

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Fit & Lean ETHOS 2.0

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COVID-19 Impact on the Business

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Revenue Impact

ETHOS was severely impacted due to the lockdown imposed by Government to prevent the spread of COVID-19. All the stores were shutdown during the later part of March which adversely impacted the business. Stores started re-opening from April onwards and footfalls have been gradually improving as customers have started adjusting to new normal

Operational Stores

About 34 of our total 47 Ethos retail Stores are now operational. Stores are being open for limited time and with limited staff ensuring strict social distancing measures. We are witnessing gradual improvement in visitor footfalls week on week and hope to be back to pre-COVID levels by Q4FY21

Optimism

The optimism is based on similar experience in demand shocks witnessed by us due to series of decisions taken by the government with the intention to curb black money like requirement of Pan Card details for high value transactions, TCS requirements and prohibition of large cash transactions. We have always witnessed strong bounce back in sales post these demand shocks. While the severity of COVID-19 is much higher than those, but eventually we expect the business to recover

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Q1FY21 Performance

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Q1FY21 vs Q1FY20 (Consolidated*)

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Billings (Rs. Crs.) Revenue (Rs. Crs.) Gross Profit (Rs. Crs.)
118.1 102.1 30.5
11.7
32.8
32.2
Q1FY20 Q1FY21 Q1FY20 Q1FY21 Q1FY20 Q1FY21
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Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with Q1FY20

*Consolidated Financials include Watch Retailing Business and Digital Marketing business Financials are with applicability of IND AS 116

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Consolidated Profit & Loss

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Particulars (Rs. Crores)*	Q1FY21	Q1FY20
Revenue	32.8	102.1
Cost of Goods Sold	21.1	71.6
Gross Profit	11.7	30.5
Employee Expenses	7.1	8.7
Other Expenses	5.4	9.6
Reported EBITDA	-0.8	12.1
Margin (%)	-2.4%	11.9%
Interest	4.6	4.2
Depreciation	8.9	7.8
Profit before share of JV	-14.3	0.1
Share of loss of JV	-0.2	-0.0
PBT	-14.4	0.1
Tax	-3.6	0.1
PAT	-10.8	0.0

Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with Q1FY20

*Consolidated Financials include Watch Retailing Business and Digital Marketing business Financials are with applicability of IND AS 116

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Adjusted Consolidated Profit & Loss

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Particulars (Rs. Crores)*	As Reported	As Reported	Adjusted for INDAS 116 & other items	Adjusted for INDAS 116 & other items
	Q1FY21	Q1FY20	Q1FY21	Q1FY20
Revenue	32.8	102.1	28.1	102.1
Cost of Goods Sold	21.1	71.6	21.1	71.6
Gross Profit	11.7	30.5	7.0	30.5
Employee Expenses	7.1	8.7	7.1	8.7
Other Expenses	5.1	9.3	8.1	16.4
Normalized EBITDA	-0.4	12.5	-8.2	5.3
Normalized Margin (%)	-1.3%	12.2%	-29.3%	5.2%
Interest	1.8	2.1	1.8	2.1
INDAS 116 Interest	2.8	2.1	-	-
Depreciation	2.1	1.4	2.1	1.4
INDAS 116 Depreciation	6.8	6.4	-	-
Forex Items - Loss	0.4	0.4	0.4	0.4
Share of loss of JV	-0.2	-0.0	-0.2	-0.0
PBT	-14.4	0.1	-12.6	1.5

Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with Q1FY20

*Consolidated Financials include Watch Retailing Business and Digital Marketing business Financials are with applicability of IND AS 116

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Ind AS 116: Impact on Financials

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• The adoption of Ind AS 116 has resulted in recognizing a Right-of-Use Assets of Rs. 90.7 Crores and lease liability of Rs. 96.5 Crores , as on 30[th] June, 2020

• Overall balance sheet will increase by the amount of asset created for Leases. This will have an impact on Profitability as under:

Profit & Loss Impact	Profit & Loss Impact	For Q1FY21 (Rs. Cr.)	Financial impact
Other expenses (Rent)	Decrease in Rent expense	-3.0	This affects other expenses, other income, depreciation and finance cost in the Profit & loss statement & consequently impacts, Revenue, EBITDA and PBT of the company
Finance costs	Increase in Finance cost	2.8
Depreciation	Increase in Depreciation	6.8
Other Income	Increase in Other income	4.8
Profit before tax	Decrease in PBT	-1.8

There would be no change in the cash flow of the company due to applicability of INDAS 116

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Consolidated Balance Sheet

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Assets (Rs. Crores)*	Mar-20	Mar-19	Equity & Liabilities (Rs. Crores)*	Mar-20	Mar-19
Non-current assets	142.7	43.6	Shareholder’s Fund	152.2	133.9
Fixed Assets	32.2	26.6	Share Capital	18.2	16.9
Right of Use	96.9	-	Other Equity	134.0	117.0
Financial Assets	9.3	11.2
Other Non Current Assets	3.6	5.8	Non-current liabilities	97.8	17.8
Investment in Joint Venture	0.7	-	Borrowings	15.8	16.2
			Lease Liabilities	79.8	0.0
Deferred Tax asset	7.3	6.3	Others Financial Liabilities	0.9	0.5
			Other Liabilities	1.3	1.1
Current assets	274.7	251.4	Current liabilities	174.6	149.7
Inventories	218.6	205.6	Current Borrowings	53.6	53.0
Trade Receivables	9.4	8.9	Lease Liabilities	19.1	-
Cash and Bank Balances	10.0	7.8	Trade Payables	72.4	68.6
Other Financial Assets	12.7	6.7	Other Financial Liabilities	16.2	17.1
Other Current Assets	24.0	22.5	Current provisions	2.4	1.4
			Other Current liabilities	11.0	9.6
Total Assets	424.7	301.4	Total Equity & Liabilities	424.7	301.4

*Consolidated Financials include Watch Retailing Business and Digital Marketing business

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Largest Pan India retailer of Luxury Watches

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Stores as of
June-20
50 Multi Brand Mumbai, Maharashtra
Store 452 Sq. Ft.
Multi Brand Hyderabad, Andhra Pradesh
Store 1,141 Sq.Ft.
Multi Brand Navi Mumbai, Maharashtra
Store 782 Sq.Ft.
Closures
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Total Stores
47
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In line with our strategy, non-performing stores & stores with higher rental cost & lower sales will be closed down; Focus to be on profitability of stores rather than expansion

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New Initiatives

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Repair and Service

Pre-Owned Watches

Repair and services over 60 of the World’s top Luxury watch Brands Strap and Bracelet replacement Servicing of Movements Bracelet link removal and adjustment Ultrasonic Cleaning	Repair and services over 60 of the World’s top Luxury watch Brands Strap and Bracelet replacement Servicing of Movements Bracelet link removal and adjustment Ultrasonic Cleaning
Bracelet link removal and adjustment	Ultrasonic Cleaning

Pre-Owned Watches has the potential to expand the volume and customer base

Ethos has the expertise to check the authenticity and to ensure that each time piece is in great condition for its new owner to enjoy

The prices we quote for each pre-owned watch is based on a thorough assessment of its current market value, and its years of use. This makes it a fair price

Financial consultancy Kepler Cheuvreux estimates the current global market for pre-owned watches alone to be worth upward of USD $15 billion annually

Ethos Watches is the #1 destination for Luxury Watch shoppers in India

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Operational Snapshot

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Ethos - Performance Trend

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Revenue (Rs. Crs.)

Front-end Rent & Manpower Cost as % of Revenue

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99.1 100.8 102.1
71.1
32.8
Q1FY17 Q1FY18 Q1FY19 Q1FY20 Q1FY21
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27.2%
13.5%
11.3% 11.8%
9.4%
Q1FY17 Q1FY18 Q1FY19 Q1FY20 Q1FY21
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EBITDA (Rs. Crs.) EBITDA Margins
12.1 11.9%
5.3%
5.4
0.2%
0.2
-1.1 -0.8 -1.6% -2.4%
Q1FY17 Q1FY18 Q1FY19 Q1FY20 Q1FY21 Q1FY17 Q1FY18 Q1FY19 Q1FY20 Q1FY21
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Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with those of other periods

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FY20 & FY21 Financials are with applicability of IND AS 116

Ethos - Online Sales Trend

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Online Billings (Rs. Crs.)
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Online Billing as % of Total Billing
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39.5 52.8%
34.6
32.7
26.3 32.9% 31.2% 33.8%
27.7%
17.0
Q1FY17 Q1FY18 Q1FY19 Q1FY20 Q1FY21 Q1FY17 Q1FY18 Q1FY19 Q1FY20 Q1FY21
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Visitors (‘000)
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3,873
3,424 3,316
2,894
2,181
Q1FY17 Q1FY18 Q1FY19 Q1FY20 Q1FY21
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Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with those of other periods

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Ethos - Repeat Sales Trend

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Club ECHO Member Base
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Repeat Billings (Rs. Cr.)
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2,47,648 2,49,443 39.6 39.3
2,16,704
1,84,891 29.9
11.8
Mar’18 Mar’19 Mar’20 Jun’20 Q1FY18 Q1FY19 Q1FY20 Q1FY21
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Since the lockdown was in force for a significant part of Q1, the results for Q1FY21 were adversely affected by the COVID-19 pandemic and may not be strictly comparable with those of other periods

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Ethos is India’s Largest Luxury Watch Retailer

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Pan-India Presence with Offline Store Network

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India’s Largest retail chain of
Luxury Watches with 47 stores
Ludhiana Presence across Metros, Tier I, Tier
Chandigarh II cities
New Delhi
Gurugra m Noida
Jaipur Guwahati
Lucknow
1 Duty Paid Retail Outlet at
Domestic Terminals
Ahmedabad
Indore
Kolkata
Nagpur
Pune 1 Duty Free Retail Outlet at
Mumbai
International Terminals
Thane
Hyderabad
Store Selection Criteria :
Reputed /Pedigree Mall at Premium
Bengaluru Chennai location where other Premium brands
present and having better facility
management
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Maps not to scale. All data, information, and maps are provided "as is" without warranty or any representation of accuracy, timeliness or completeness

Pan-India Presence with Offline Store Network

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Exclusive Digital Right Mix Stores Brands Strategy ▪ ▪ Leverage on our Targeting to ▪ To go slower on Digital platform have a right mix new stores in to drive sales of Brands at all ▪ Higher share of near term. and customers price points Business from Focus on ▪ Digital strategy leading to faster Exclusive improving to lead to cost churn in Brands profitability of optimization Inventory and existing stores and margin increasing growth profitability

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Ethos is India’s Preferred Destination for Luxury Watches…

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Knowledge

One-stop shop

Mind Share

Ethos has well trained Knowledgeable staff to ensure highest customer satisfaction and increasing repeat buying.

Ethos’ access to Swiss Watch Brands will make it a ‘1 Stop Shop’ for Luxury Watches In India

Ethos to be synonymous with Luxury watches retailing in India thus gaining ‘Customer Mind Share ‘

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Online

Trust

Ethos makes Swiss Watches ‘Available Online’ in a confluence of Online-Offline model helping us to leverage the strength of Swiss Watch Brands and our wide Distribution Reach

Ethos DNA is all about Authenticity increasing the ‘Trust factor’ in a large Unorganized market.

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With an Asset Light Model…

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Improve Return On Capital Employed

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Operating Leverage Playing Out

Reduce Front-End Cost like Manpower and Rental expenses

Maximize Reach

Expand catchment area of offline store, leading to higher revenue

Minimize Investment

Focus on Online Presence & Rationalize Store Presence

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and Continued Investments in Advertising…

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Print Ads in leading news media…
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… with ETHOS co-branding
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Offering the best Watch Brands under one roof

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The Brand Names mentioned are the property of their respective owners and are used here for identification purposes only

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For further information, please contact:

Company : Investor Relations Advisors :

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Ethos Ltd. CIN : U52300HP2007PLC030800 CIN : U74140MH2010PTC204285 Mr. C. Raja Sekhar Mr. Shogun Jain/ Mr. Shrenik Shah +91 7738377756 / +91 9664764465 rajasekhar@ethoswatches.com shogun.jain@sgapl.net / Shrenik.shah@sgapl.net www.ethoswatches.com www.sgapl.net

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