Spencer's Retail Limited — Earnings Release 2021

Jul 12, 2021

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SRL:SEC:SE:2021-22/25

July 12, 2021

The Manager Listing Department, National Stock Exchange of India Limited Exchange Plaza, 5[th] Floor Plot No. C/1, G-Block Bandra-Kurla Complex Bandra (East), Mumbai – 400 051

The General Manager Department of Corporate Service, BSE Limited Phiroze Jeejeebhoy Tower Dalal Street Mumbai – 400 001 (Scrip Code: 542337)

(Symbol: SPENCERS)

Dear Sir,

Sub: Investor updates/press release for the 4th quarter and year ended March 31, 2021

Pursuant to Regulation 30 of SEBI (LODR) Regulation, 2015, please find annexed herewith an updated copy of the Investor update / press release dated July 12, 2021 for the 4th quarter and year ended on March 31, 2021.

The above information is also available on the website of the Company at www.spencersretail.com

Thanking you,

For Spencer’s Retail Limited

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Rama Kant Company Secretary (FCS 4818) Encl: as above

Spencer's Retail Limited

Regd. Office: Duncan House, 31, Netaji Subhas Road, Kolkata-700 001 Corp. Office: RPSG House, 2/4 Judges Court Road, Kolkata-700 027 Tel: +91 33 2487 1091 Web: www.spencersretail.com CIN: L74999WB2017PLC219355

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Earnings Presentation – Q4 FY21

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Key Consolidated performance highlights

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• Improvement in Profitability despite 8% lower sales (Q4FY21 vs Q4 FY20)

• Despite restrictions on selling non essentials during part of the period, recovery of Sales

• from non-food categories reached ~89%

• Q4 FY21 vs 21.8% Q4 FY20

• Natures Basket reported full year positive EBITDA first time ever (EBITDA% 7.6% vs (-)8.1%)

• 4.5x Growth in E-commerce business during the year

• Improvement in EBITDA Margins % by 191bps from 3.3% to 5.2% (Q4FY21 vs Q4FY20)

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Jul-21 | RP-Sanjiv Goenka Group Presentation 2
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• Non financial data are of Standalone Business

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Consolidated Financial Parameters FY21

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Quarter Quarter
Revenue from Operation (₹ Cr) Gross Sales per Sq ft (₹)
4700
672
4400
592
Q3FY21 Q4FY21
Q3FY21 Q4FY21
Gross Margin (%) Trading Area (Mn Sq ft)
1.47
21.1% 1.44
5 Stores
19.9% added
during
the qtr
Q3FY21 Q4FY21 Q3FY21 Q4FY21
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Jul-21 | RP-Sanjiv Goenka Group Presentation 3
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Consolidated Financial Parameters FY21

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YTD
Revenue from Operation (₹ Cr)
2,645
2,428
FY20 FY21
Gross Margin (%)
21.4%
20.4%
FY20 FY21
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YTD
Gross Sales per Sq ft (₹)
18600
16700
FY20 FY21
Trading Area (Mn Sq ft)
1.46 1.47
12 Stores
added
during
the year
FY20 FY21
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Jul-21 | RP-Sanjiv Goenka Group Presentation 4
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92% Recovery Pre-COVID Levels

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period ended	period ended	period ended	Growth	Growth	Consolidated (₹ Cr)	12 months ended	12 months ended
31-Mar-21	31-Dec-20	31-Mar-20	Y-o-Y	Q-o-Q		31-Mar-21	31-Mar-20
592 672 641 467 538 501 125 134 140 21.1% 19.9% 21.8% 50 47 48 67 72 84 24 14 13 31 29 21 5.2% 4.3% 3.3% 38 34 48 27 24 23 (35) (30) (49) -5.9% -4.4% -7.7% (0.2) (0.1) (0.2) (35) (30) (49) 0.2 (0.3) 0.3 (34) (30) (49)			-8% -12% Revenue from operations Cost of Goods Sold -10% -7% Gross Margin -69 bps 118 bps Gross Margin % 6% 7% Employee expenses -19% -7% Other expenses 84% 65% Other income EBITDA 191 bps 94 bps EBITDA % Depreciation Finance costs PBT 186 bps -144 bps PBT % Tax Expenses PAT Other Comprehensive Income Total Comprehensive Income			2,428 2,645 1,932 2,079 496 566 20.4% 21.4% 193 191 295 317 53 32 61 89 2.5% 3.4% 134 138 91 82 (164) (131) -6.8% -5.0% (0.4) (0.2) (164) (131) (0.7) (0.6) (165) (131)

*Natures Basket Limited was acquired in July’2019 hence the Financials of 12 months ended Mar’21 are not comparable with previous year

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Jul-21 | RP-Sanjiv Goenka Group Presentation 5
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94% Recovery Pre-COVID Levels

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Trading Area of 1.01lacs Sq.ft added during the year

Saw sequential month on month recovery, later half of Qtr got impacted due to pandemic

Greater than ~89% of Recovery from Non-Food high margin Category

Sustaining EBITDA & PBT levels despite lower Sales

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3 months ended Growth 12 months ended
Standalone (₹ Cr)
31-Mar-21 31-Dec-20 31-Mar-20 Y-o-Y Q-o-Q 31-Mar-21 31-Mar-20
5 7 1 New Stores added 12 10
164 160 160 Total Store count 164 160
0.25 0.76 0.02 TA added (Lac sq.ft) 1.01 0.66
13.74 13.52 13.73 TA exit (Lac sq.ft) 13.74 13.73
518 586 554 -6% -12% Revenue from operations 2,069 2,373
416 474 436 -5% -12% Cost of Goods Sold 1,671 1,872
102 112 117 -13% -9% Gross Margin 398 501
19.6% 19.0% 21.2% -151 bps 60 bps Gross Margin % 19.3% 21.1%
41 39 40 4% 6% Employee expenses 158 161
55 59 62 -12% -8% Other expenses 240 261
21 13 11 93% 68% Other income 47 30
27 26 26 EBITDA 47 109
5.2% 4.4% 4.7% 52 bps 77 bps EBITDA % 2.3% 4.6%
31 28 34 Depreciation 106 105
20 19 17 Finance costs 69 61
(24) (21) (25) PBT (128) (57)
-4.7% -3.5% -4.6% -15 bps -117 bps PBT % -6.2% -2.4%
- - - - -
Tax Expenses
(24) (21) (25) PAT (128) (57)
0.4 (0.4) (0.4) Other Comprehensive Income (0.7) (1.4)
(24) (21) (26) Total Comprehensive Income (129) (58)
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Jul-21 | RP-Sanjiv Goenka Group Presentation 6
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Trading Area ~8k sqft added (2 stores) during the year

Successful business integration reflecting strong operational efficiency and improved profitability

Significant reduction in YoY Losses despite pandemic impact on Sales

EBITDA improvement 1.5X

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Gross Margin Improvement by 417bps

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3 months ended Growth 12 months ended
Standalone (₹ Cr)
31-Mar-21 31-Dec-20 31-Mar-20 Y-o-Y Q-o-Q 31-Mar-21 31-Mar-20
33 31 31 Total Store count 33 31
0.93 0.84 0.88 TA exit (Lac sq.ft) 0.93 0.88
77 87 87 -11% -11% Revenue from operations 363 273
54 65 65 -16% -17% Cost of Goods Sold 265 214
23 22 22 3% 4% Gross Margin 98 59
30.0% 25.6% 25.8% 417 bps 441 bps Gross Margin % 26.9% 21.7%
7 7 6 17% 8% Employee expenses 28 24
13 10 16 -17% 27% Other expenses 48 59
2 2 1 102% 31% Other income 6 2
5 7 2 EBITDA 28 (22)
6.4% 7.9% 1.9% 455 bps -145 bps EBITDA % 7.6% -8.1%
7 7 12 Depreciation 28 29
5 5 6 Finance costs 20 18
(7) (5) (16) PBT (21) (69)
-9.0% -5.6% -18.7% 971 bps -339 bps PBT % -5.7% -25.4%
- - - - -
Tax Expenses
(7) (5) (16) PAT (21) (69)
(0.2) 0.1 0.6 Other Comprehensive Income 0.0 0.8
(7) (5) (16) Total Comprehensive Income (21) (69)
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*Natures Basket Limited was acquired in July’2019 hence the Financials of 12 months ended Mar’21 are not comparable with previous year

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Jul-21 | RP-Sanjiv Goenka Group Presentation 7
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Consolidated Financials – Balance Sheet

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As at
Consolidated (₹ Cr)
31-Mar-21 31-Mar-20
A) Assets
Assets 1,262 1,279
Inventories 267 248
Total Assets 1,530 1,527
B) Equity & Liabilities
Equity 186 274
Other Liabilities 1,042 946
Trade Payables (Net) 301 308
Total Equity & Liabilities 1,530 1,527
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*Natures Basket Limited was acquired in July’2019 hence the Financials of 12 months ended Mar’21 are not comparable with previous year

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Jul-21 | RP-Sanjiv Goenka Group Presentation 8
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Business Highlights

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Gifting as a Service

Personalized gifting delivered at your doorstep

Celebrating Consumer Events

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• Republic Day

• Holi

• Makarsankranti

Moving towards OMNI Channel

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Major shift of gear in direct to customer channel

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Jul-21 | RP-Sanjiv Goenka Group Presentation 9
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Business Highlights

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Strengthening our Health Positioning

Superior Convenience to customers

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• Strengthening Health positioning of Stores

• Delivery of Fresh & Fast service in 90mins

• Offerings to communicate & strengthen our product offerings

• Convenience for both Online & Home Delivery

customers

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Jul-21 | RP-Sanjiv Goenka Group Presentation 10
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Online Business Growth >6.5X

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• ORIPL is an E-commerce company 100% owned Subsidiary of Spencer’s Retail Limited

• Online store for Food, Grocery, Fresh, Apparel and General Merchandise and Liquor

In India, Online penetration to reach 10.7% in FY24 vs 4.7% in FY19

183

• E-commerce market is expected to be $99bn by FY24

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• Indian Online grocery market is estimated to reach $18.2bn in FY24 vs $1.9mn in FY19 , CAGR of 57%

• Significant investments were made during the year in the online platform for enhancing consumer experience

• We have witnessed more than 6.5x growth from FY19 and 4.5x growth from last year

FY19

FY20 FY21

GMV (₹ in Cr)

• Ample scope of growth for every retailer offering best in class value to customers

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Jul-21 | RP-Sanjiv Goenka Group Presentation 11
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Thank You

About Spencer’s Retail Limited: Spencer’s Retail Limited, part of RP-Sanjiv Goenka Group, is a multi-format retailer providing a wide range of quality products across categories such as FMCG, fashion, food, staples, general merchandise, personal care, home essentials, electrical and electronics to its consumers. specialty sections such as Spencer’s Gourmet, Patisserie, Wine & Liquor and Epicuisine section are some of the key differentiators in our hypermarket stores and in Natures Basket Limited L’exclusif, healthy alternatives and Natures.

The first ever hypermarket in India was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s (including Natures Basket) runs 197 stores with a total 14.67 Lacs Square Feet in over 41 cities in India. Spencer’s brand positioning – MAKES FINE LIVING affordable – embodies its philosophy of delighting shoppers with the best products and services that enable a fine living at reasonable prices, while providing them with a warm, friendly and educational retail environment.

Disclaimer : Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like government actions, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Spencer’s Retail Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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Jul-21 | RP-Sanjiv Goenka Group Presentation 12
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