Shoppers Stop Ltd — Interim / Quarterly Report 2019

Apr 30, 2019

Q U A R T E R L Y P E R F O R M A N C E M A R C H 1 8 - 1 9

27 years of Customer Delight

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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.

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OUR GENESIS

• 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.

“ To be an inspirational & trusted brand, transforming customers' lives through fashion & delightful shopping experience every time.

• Our people are our greatest strength. All of us are highly engaged which makes us the best customer centric company in the country.

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OUR CUSTOMER

• Our core customers are Mid-High Income families & Young Professionals.

• We also target millennial consumers via Social Media and our Website.

• These young millennials are key Purchase Influencers for Parents and Family.

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OUR FORMATS

SHOPPERS STOP | 83 Department Stores

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

Beauty Formats |115 Stores

• M.A.C | 58 Clinique| 33 Estèe Lauder| 8 Bobbi Brown| 14 Smashbox| 2

• HOMESTOP| 12 Stand alone

• Premium home concept store.

Shoppersstop.com

• Our shopping website and mobile app have more than 120,000+ styles across different categories and sub-categories to choose from.

CROSSWORD| 83 Stores (39 Owned | 44 Franchisee)

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

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Omni Channel Symbiotic Relationship of Clicks & Bricks

+71 Million

+25,000

+5.5 Million

VISITS for YTD Mar 19 ON SITE & APP

PIN CODE COVERAGE

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(38 stores)

• Buy Online and Return at the Store

• Irresistible Style Hub disseminating Latest Fashion Tips

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• Cardless First Citizen Program

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First Citizen Loyalty Program

+ 6.0 Million

FIRST CITIZEN LOYALTY PROGRAMME MEMBERS

+ 76% CONTRIBUTION TO COMPANY’S SALES

Addition during Q4-8-19 : 1.34 lacs

• We listen closely to our customers and understand the way they think and buy.

• Our popular first citizen loyalty program is one of the longestrunning loyalty program in the country

• We have a dedicated analytics team to analyze the proprietary first citizen data.

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Jalandhar
Ludhiana
Amritsar
Chandigarh
Noida
Gurgaon
Ghaziabad
Delhi Meerut
Agra
Siliguri
Jaipur
Lucknow
Durgapur
Bhopal
Ahemdabad Raipur
Indore Ranchi
Vadodara Kolkata
Surat Aurangabad
Latur
Mumbai
Pune
Nashik
Kolhapur
Goa Hyderabad
Vijayawada
Mangalore Vizag
Bangalore
Chennai
Mysore Coimbatore
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Key Highlights Of Q4-2018-19

1044 +4.7% 64.0 +21.8% 16.4

Revenue EBIDTA Rs in Crs.

PBT

4.25

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Retail Space (Million Sq Ft) Cities

As on 31-03-2019

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New Store Additions during Q4-18-19

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SS Dept.: Nashik

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MAC Store : Aerocity, Delhi
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MAC Store : Shantiniketan, Bengaluru
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Operational Indicators - Q4-2018-19

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0.4%
(2.6%)
6.6%
1.2%
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Sales Growth– Q4-2018-19

Sales Growth Overall

Sales Growth : LTL

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Gross Margin %

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EBIDTA %

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Merchandise Mix – Q4-2018-19

Private & Total (Private & Exclusive Brand Mix)

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Revenue Mix – Q4-2018-19

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Financial Summary : Shoppers Stop Limited : Q4:2018-19

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Rs in Crs. Q4-2018-19 Q4-2017-18
Retail Sales 1,044 997 4.7%
Margin on Sales 350 326
Margin on Sales % 33.5% 32.7%
Other Retail Operating Income 16 14
Operating expenses 301 287
Operating expenses % 28.9% 28.8%
Operating Profit (EBIDTA) 64 53 21.8%
Operating Profit (EBIDTA) % 6.1% 5.3%
Finance Charges (Net) 2 3
Depreciation 46 27
PBT (Before Exceptional Item) 16 23
PBT% 1.6% 2.3%
Exceptional Items /OCI 24 (14) Exceptional Item includes
PBT (After Exceptional Item /OCI ) (8) 37 Mark to Market impact on Future
Retail Investments : (Rs 23.9 Crs) ;
PBT (After Exceptional Item) /OCI % -0.7% 3.7%
(LY : + Rs 13.1 Crs )
Tax 5 3
PAT / Total Comprehensive Income (12) 34
PAT / Total Comprehensive Income% -1.2% 3.4% 1 4 Note : Figures have been regrouped for Presentation purpose.
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Financial Summary : Shoppers Stop Limited : 2018-19

	Rs in Crs.	2018-19	2017-18	Exceptional Item includes Mark to Market impact on Future Retail Investments : (Rs 46.5 Crs ) (LY : + Rs 6.9 Crs) 6.0% 20.1% 55.4% Note : Figures have been regrouped for Presentation purpose.
	Retail Sales	4428	4179
	Margin on Sales	1470	1361
	Margin on Sales %	33.2%	32.6%
	Other Retail Operating Income	62	53
	Operating expenses	1267	1194
	Operating expenses %	28.6%	28.6%
	Operating Profit (EBIDTA)	264	220
	Operating Profit (EBIDTA) %	6.0%	5.3%
	Finance Charges (Net)	6	29
	Depreciation	135	112
	PBT (Before Exceptional Item)	124	80
	PBT%	2.8%	1.9%
	Exceptional Items /OCI	48	42
	PBT (After Exceptional Item /OCI )	75	37
	PBT (After Exceptional Item) /OCI %	1.7%	0.9%
	Tax	44	19
	PAT / Total Comprehensive Income	31	19
	PAT / Total Comprehensive Income%	0.7%	15 0.4%

Balance Sheet : Shoppers Stop Limited : Standalone

	Particular	Mar-19	Mar-18	Investment Includes : Rs 50.72 Crs. : Crossword Book Store Limited Rs 255.44 Crs. : Future Retail Limited ( MTM provn Rs.39.5 Crs.)
	Networth Loan Fund	977.6 40.0	953.4 87.4
	Total Liabilities	1,017.6	1,040.7
	Fixed Assets & Lease Deposit Investment Investment in Mutual Fund Inventory Debtors ,loans andAdvances	808.3 266.7 42.5 1,053.5 304.3	832.4 325.3 20.0 328.4 276.4
	Total Current Assets	1,357.9	604.8
	Trade Creditors Other liabilities and provisions	1,254.2 203.5	488.6 233.2
	Total Current Liability	1,457.7	721.8
	Net Current Assets	(99.8)	(116.9)
	Total Assets	1,017.6	1,060.7

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Note : Figures have been regrouped for Presentation purpose.

Cashflow: Shoppers Stop Limited : Standalone

	Particulars	Cash Flow
	Cash Profit from Operations (after tax)	221.1
	Increase in Creditors for Goods	39.7
	Increase in Other Creditors and Liabilities	49.1
	Increase in Inventories	(65.1)
	Increase in Loans & Advances & Sundry Debtors	(14.9)
	Cash generated from Operations	229.8
	Fixed Assets(including CWIP) & Deposit.	(113.6)
	Reduction in Creditors for Capex	(13.5)
	Cash generated from Operations	102.7
	Investment in Mutual Funds	(22.4)
	Crossword Book Store Limited - ICD's	(8.0)
	Cash generated post Investing Activities	72.3
	Cash generated from Financing Activities ( Dividend ,and loan repayment)	(61.9)
	Net Increase/(decrease) in Bank Balance	10.4

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Note : Figures have been regrouped for Presentation purpose.

Key Financial Ratio

Profitability andEfficienyRatios
Year ToMarch	FY19	FY18	FY17	FY16
ROAE(%)	12.6%	9.1%	6.4%	8.9%
ROACE(%)	12.8%	9.4%	6.3%	10.3%
Inventory Days	142	120	116	138
Debtors Days	4	4	3	2
Payable Days	44	50	45	51
Cash Conversion Ratio	98	70	71	87
Current Ratio	0.9	1	1	1
Gross Debt/EBIDTA	0.2	1.5	2.9	2.7
Gross Debt/Equity	0.0	0.1	0.8	0.8
Adjusted Debt/Equity	0.0	0.1	0.8	0.8
Interest CoverageRatio	22.6	3.9	2.3	3.1

Valuation Parameters
Year ToMarch	FY19	FY18	FY17	FY16
Adj. Diluted EPS	8.95	1.35	-2.39	3.02
Y-o-Y Growth (%)	563.0%	156.5%	-179.1%	-38.2%
Adjusted Cash EPS	24.3	15.5	11.5	14.6
Diluted P / E (x)	52.7	390.1	365.0	120.3
P / B (x)	4.2	4.7	4.0	3.9
EV / Sales (x)	0.9	1.1	0.8	0.8
EV / EBIDTA (x)	16	20	15	14
DividendYield (%)	0.16	0.14	0.21	0.21

OperatingRatios
Year To March	FY19	FY18	FY17	FY16
Total Asset Turnover Ratio	4.3	3.5	3.0	2.8
Fixed Asset Turnover Ratio	6.8	6.3	6.2	5.9
EquityTurnover Ratio	4.6	4.9	5.3	4.9

Note : Figures have been regrouped for Presentation purpose.

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Key Strategic Pillars

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1. First Citizen Program

• Key Growth Engine for Business

• Increase the share of First Citizen customers

2. Personal Shopper Program

• Exceed customer’s

expectation by providing delightful shopping experience in a personalized way

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3. Product Portfolio

• Fashion forward positioning

• Focus on Private Brands to bring differentiation

4. Beauty Segment

• Be a dominant player in Beauty segment across all channels

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Awards won in 2018

• Great Place to Work 2018 – Recognized among Top 10 Retail Companies in India

• Best Department Store Awards - Retail Leadership Summit 2019

• 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

• ABCI awarded our Annual Report as Silver Annual Report

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

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