Shoppers Stop Ltd — Interim / Quarterly Report 2019

Oct 26, 2018

27 YEARS OF CUSTOMER DELIGHT 1

Disclaimer

Certain statements in this release concerning our future growth prospects are forward-looking statements within the meaning of applicable securities laws and regulations , and which involve a number of risks and uncertainties, beyond the control of the Company, that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorized use of our intellectual property and general economic conditions affecting our industry. Shopper's Stop Ltd. may, from time to time, make additional written and oral forward looking statements, including our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company. The Company also expects the media to have access to all or parts of this release and the management's commentaries and opinions thereon, based on which the media may wish to comment and/or report on the same. Such comments and/or reporting maybe made only after taking due clearance and approval from the Company's authorized personnel. The Company does not take any responsibility for any interpretations/ views/commentaries/reports which may be published or expressed by any media agency, without the prior authorization of the Company's authorized personnel.

Our Genesis

• To be an inspirational and trusted brand, transforming customers' lives through fashion & delightful shopping experience every time.
• Customers come through our doors for our superior product assortment, but we want them to stay for the moments of personal transformation they experience in our aisles.
• Customers click onto our shopping site for convenience, but we want them to come back for the sheer joy and promise of adding to their shopping carts.
• Our people are our greatest strength. All of us are highly engaged which makes us the best customer centric company in the country.

Our Customers

• Our core customers are Mid-High Income families and Young Professionals.
• We also target millennial consumers via Social Media and our Website.
• These young millennials are key Purchase Influencers for Parents and Family.

Our Formats

SHOPPERS STOP | 83 Department Stores

• India's foremost fashion & beauty retailer offering 400+ brands.

Beauty Formats |108 Stores

• M.A.C |54 Clinique| 32 Estèe Lauder| 8 Bobbi Brown|12 Smashbox| 2

HOMESTOP| 12 Stand alone

• Premium home concept store.

Shoppersstop.com

• Our shopping website and mobile app have more than 100,000+ styles across different categories and sub-categories to choose from.

CROSSWORD| 84 Stores (42 Owned | 42 Franchisee)

• The definitive place for seeking information, knowledge or simply the pleasure of reading

Omni Channel Symbiotic Relationship of Clicks & Bricks

+34 Million**s**

VISITS for H1-18-19 ON SITE & APP

+25,000

PIN CODE COVERAGE

+4.6 Million

MOBILE APP DOWNLOADS

• Platform frequently used by Millennials and Young Professionals to converse with us
• Buy Online and Collect from the Store(50 stores)
• Ship from Store for fulfillment of Online Orders(37 stores)
• Buy Online and Return at the Store
• Irresistible Style Hub disseminating Latest Fashion Tips
• Cardless First Citizen Program

First Citizen Loyalty Program

**+**5.7Million **+**75%

FIRST CITIZEN LOYALTY PROGRAMME MEMBERS

Addition during Q2-8-19 :1.56 lacs

CONTRIBUTION TO COMPANY'S SALES

• We listen closely to our customers and understand the way they think and buy.
• Our popular first citizen loyalty program is one of the longest-running loyalty program in the country
• We have a dedicated analytics team to analyze the proprietary first citizen data.

Key Highlights Of Q2-2018-19

1076+7.4%	56.5+5.1%	22.9+17.2%
RevenueRsin Crs.	EBIDTA	PBT
	4.27	38
	Retail Space (Million SqFt)	Cities

8

New Store Additions during Q2-18-19

MAC Store : T3 Delhi Airport CLINIQUE Store : VR Mall Chennai

BOBBI BROWN Store : Phoenix Market City Chennai

Operational Indicators - Q2-2018-19

Merchandise Mix – Q2-2018-19

Private & Total (Private & Exclusive Brand Mix)

Financial Summary : Shoppers Stop Limited : Q2:2018-19

Rsin Crs.	Q2-2018-19	Q2-2017-18
Retail Sales	1,076	1,002	7%
Margin on Sales	360	330
Margin on Sales %	33.5%	33.0%
Other Retail Operating Income	15	11
Operating expenses	318	288
Operating expenses %	29.6%	28.7%
Operating Profit (EBIDTA)	56	54	5%
Operating Profit (EBIDTA) %	5.2%	5.4%
Finance Charges (Net)	3	8
Depreciation	31	27
PBT (Before Exceptional Item)	23	19	17%
PBT%	2.1%	1.9%
Exceptional Items / OCI	52	34
PBT (After Exceptional Item / OCI )	(29)	(15)
PBT (After Exceptional Item) %	-2.7%	-1.5%
Tax	8	7
PAT / Total Comprehensive Income	(37)	(22)
PAT / Total Comprehensive Income%	-3.5%	-2.2%

Exceptional Item includes Mark to Market impact on Future Retail Investments : Rs 51.66 Crs

Financial Summary : Shoppers Stop Limited : H1:2018-19

Rsin Crs.	H1-2018-19	H1-2017-18
Retail Sales	2,124	2,036	4%
Margin on Sales	703	667
Margin on Sales %	33.1%	32.8%
Other Retail Operating Income	29	25
Operating expenses	631	606
Operating expenses %	29.7%	29.8%
Operating Profit (EBIDTA)	100	86	16%
Operating Profit (EBIDTA) %	4.7%	4.2%
Finance Charges (Net)	0	18
Depreciation	62	55
PBT ( Before Exceptional Item)	38	13	185%
PBT%	1.8%	0.7%
Exceptional Item	42	34
PBT (After Exceptional Item )	(4)	(21)
PBT (After Exceptional Item) %	-0.2%	-1.0%
Tax	15	5
PAT / Total Comprehensive Income	(18)	(26)
PAT / Total Comprehensive Income%	-0.9%	-1.3%

Exceptional Item includes Mark to Market impact on Future Retail Investments : Rs 40.67 Crs

Balance Sheet : Shoppers Stop Limited : Standalone

Rsin Crs.	UnAuditedSep 18	Audited Mar 18
Share capital	44	44
Reserves and surplus	884	909
Net Worth	928	953
Loan Funds	94	87
Total Liabilities	1,022	1,041
Total Fixed Assets	658	666
Investments	332	325
Lease Deposit	173	166
Current Assets, Loans & Advances
Stock in Trade	1,036	328
Sundry Debtors	52	44
Loans & Advances	43	43
Cash & Bank Balance	9	5
Other Current Assets	145	165
Total Current Assets	1,284	585
Current Liabilities and Provisions
Trade Creditors	1,221	489
Other liabilities and provisions	225	233
Total Current Liabilities	1,446	722
Net Current Assets	(162)	(137)
Deferred Tax	21	20
Total Assets	1,022	1,041

Particulars	Q2-2018-19	2017-18
Debt Equity	0.10	0.09
Asset Turnover Ratio (Without Investments)	2.17	4.58
Current Ratio	0.89	0.81

Investment Includes : Rs 51 Crs. : Crossword Book Store Limited Rs 255 Crs. : Future Retail Limited (Original Price) Rs 59 Crs. : Mutual Funds

Cashflow: Shoppers Stop Limited : Standalone

Rsin Crs.	For the periodended 30th Sep
	18
Operating Profit	85.5
Changes in Working Capital	34.7
Cash Generated from Operating Activities	120.2
Investment in SSL Fixed Assets & Deposit for stores	(67.8)
Other Investments	(47.1)
Net Cash Used for Investing Activities	(114.9)
Proceeds from issuance of share capital	1.1
Interest & Finance Cost (Net off)	(1.3)
Increase / (Decrease) in Loans	6.2
Cash generated from Financing Activities	(2.0)
Net Increase/(decrease) in Bank Balance	3.3

Key Strategic Pillars

First Citizen Program

• Key Growth Engine for Business
• Increase the share of First Citizen customers

Product Portfolio

• Fashion forward positioning
• Focus on Private Brands to bring differentiation

Personal Shopper Program

• Exceed customer's expectation by providing delightful shopping experience in a personalized way

Beauty Segment

• Be a dominant player in Beauty segment across all channels

Awards won in 2018

• Great Place to Work 2018 Recognized among Top 10 Retail Companies in India
• Best Customer Experience in Retail Sector in Large/Multi Brand Format
• Best Loyalty Program in Retail Sector in Large/Multi Brand Format
• Best use of Innovation in Loyalty Marketing
• Best use of Customer and Data Analytics in Loyalty Program
• Best use of Direct Marketing in Loyalty Program
• Industry Excellence in Supply Chain Retail Award for the 3rd

Consecutive year at 12th ELSC Leadership Awards

• IMAGES Most Admired Retailer of the year Store Design & Visual Merchandise
• Best Technology in HR at Manning Modern Retail 2018
• DMA Asia ECHO Awards 2018 for Best Recommender System

In case of any clarifications please contact on investor@shoppersstop.com