Strictly Private & Confidential
FINANCIAL YEAR 2015-16
M A R C H 2 0 1 6
Strictly Private & Confidential
Indian Retail – Huge Opportunity
2
Total Retail Market Size- USD~ 550 bn
Brick & Mortar Retail is here to stay and Grow!!!
2014 2020Figures in US$ bn
Total Retail Market Size- USD~ 1150* bn
Expected Growth of 2x Expected Growth of 3x Expected growth of 15x
2
Strictly Private & Confidential
Snapshot of Shoppers Stop Formats
SSL
No of stores: 77 (incld. 5 duty paid airport stores)
GFA: 39.47 lacs sq ft.
No of stores: 2
GFA: 0.05 lacs sq ft.
No of stores: 74
GFA: 0.44 lacs sq ft.
No of stores: 19
GFA: 2.88 lacs sq ft.
Department Stores Business
75% Sales Contribution
14 – 15 : 163.1 lacs visitors
14 – 15 : 197.3 lacs visitors
Shoppers Stop.Com
No of stores: 17
GFA: 12.63 lacs sq ft.
Sales for 31st Mar,2016: Rs. 934.6 Cr
No of stores: 2
GFA: 0.38 lacs sq ft.
No of stores:26
GFA: 2.01 lacs sq ft.
No of stores: 89
Own Stores : 48
GFA: 2.49 lacs sq ft.
Subsidiary Companies
23% Sales Contribution
50%
48.42%
Well diversified portfolio to capture the consumer’s wallet share
Note : Above figures as of 31th Mar ,2016.1 GFA: Gross Floor Area
JV Companies
2 % Sales Contribution
SSL Stake
51%
100%
SSL Stake
CONSOLIDATED WITH SSL
SSL Sales as of 31st March 2016 : Rs.3766.15 Cr
3
Strictly Private & Confidential
Pan India Presence with Dominance in the Large Cities
4
Note : Above figures as of 31st March 2016
239 stores in 36 cities with 5.88 million sq. ft. space
across 9 store formats
Kolkata
Delhi
Jaipur
Mumbai
Hyderabad
BangaloreChennai
GurgaonGhaziabad
Pune
Noida
Amritsar
Bhopal
Aurangabad
Siliguri
Durgapur
Lucknow
LudhianaChandigarh
Indore
VijayawadaVizag
Ahemdabad
Mysore
Latur
Jalandhar
Coimbatore
SuratVadodara
Agra
Raipur
Mangalore
Meerut
City SS Dept. CrosswordHome
Stop
Mother
Care
MAC/Estee/
Clinique/
Bobbi
Brown
Hypercity Total
Amritsar 1 3 1 5
Bangalore 10 8 4 12 4 38
Chennai 3 1 1 4 9
Delhi 5 2 1 12 1 21
Gurgaon 2 4 6
Hyderabad 5 7 2 1 4 2 21
Jaipur 3 3
Kolkata 5 1 6 12
Lucknow 1 1 1 3
Mumbai 8 21 3 1 16 2 51
Noida 1 2 1 4
Pune 5 2 5 1 13
Ghaziabad 2 2
Siliguri 1 1
Durgapur 1 1
Bhopal 1 2 1 4
Ludhiana 1 1 2
Aurangabad 1 1
Indore 1 1 2
Vijayawada 1 1 1 3
Mysore 1 1
Latur 1 1
Ahmedabad 2 1 1 4
Jalandhar 1 1
Coimbatore 1 1 2
Chandigarh 1 1 2 4
Surat 1 2 3
Kalyan 1 1
Thane 1 3 2 2 8
Agra 1 1
Vadodara 1 1 2
Raipur 2 1 3
Mangalore 2 1 3
Vizag 1 1
Meerut 1 1
Kolhapur 1 1
Total 77 50 18 2 75 17 239
4
Strictly Private & Confidential
Store Additions since 1991
1
5
1 1
22 2
3
2 2
3
1
5
34
6
13
4
12
5
1 1 1 1 2 2 2
77
35
79
12
1416
1920
25
28
32
38
51
55
67
72
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
0
5
10
15
20
25
30
35
40
45
50
55
60
65
70
75
80
Additions 1 1 1 2 2 2 3 2 2 3 1 5 3 4 6 13 4 12 5 5
Total 1 1 1 1 2 2 2 3 5 7 9 12 14 16 19 20 25 28 32 38 51 55 67 72 77
91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16
Store Status Since Inception – SS Department Format
2000-01 Sales -
Rs.214 Crore
2015-16 Sales -
Rs.3766 Crore
10 years - 5 Stores opened Next 10 years - 27 Stores opened Last 6 years - 44 Stores opened
5
Strictly Private & Confidential
Transitioned the Shoppers Stop Brand from Premium to Bridge-to-Luxury
6
Successfully introduced a number of international brands, the new Indian aspires to own
Jack & Jones, French Connection, CK Jeans, GAS, Tommy Hilfiger & Desigual in apparel segment.
Lancome, MAC, Clinique, Estee Lauder and Bobbi Brown in cosmetics
CK, Armani & Gucci in sun glasses
Burberry, Nina Ricci, Diesel & Boss in watches
Luxury
Bridge to Luxury
Contemporary
Popular
Mass
Premium
2009
SSL
2005
Our Transition
Consistent Improvement of Product Mix and Brands Profile to Attract ‘Aspirational’ Customers
6
Strictly Private & Confidential
LAUNCH OF EYE STOP in Q4 FY15
77
Strictly Private & Confidential
LAUNCH OF WROGN – A Shoppers Stop Exclusive Brand
8
Launched in Q4 FY15
8
Strictly Private & Confidential
LAUNCH OF DESIGUAL – A Shoppers Stop Exclusive Brand
9
Launched in Q1 FY16
9
Strictly Private & Confidential
LAUNCH OF RS BY ROCKY STAR – A Shoppers Stop Exclusive Brand
10
Launched in Q2 FY16
10
Strictly Private & Confidential
LAUNCH OF FEMINA FLAUNT – A Shoppers Stop Exclusive Brand
11
Launched in Q3 FY16
11
Strictly Private & Confidential
Product Strategy: Sales Mix
12
2015-16
36% Non
Apps.
64%
Apparels
Diversified portfolio
Private & Exclusive Brand Sales Mix %
16.8% 16.5%
17.4%16.7% 17.0%
12.0%
14.0%
16.0%
18.0%
20.0%
2011-12
2012-13
2013-14
2014-15
2015-16
12
Strictly Private & Confidential
Trading Model Strategy : Focus on Gross Margins Optimization while Containing Working Capital Risks
13
Trading Model SegmentationConcession 15%
Consignment &
SOR 27%Bought - Out 58%
Concession 2%
Consignment &
SOR 55%
Bought - Out 43%
2007-082015-16
Reduced bought-out segment from 58% earlier to 43% whilst sustaining and growing gross margins.
Trade Working Capital ( Rs.in lacs)
Particulars 2007-08 2015-16
Net Working Capital 7,637 15,220
Chargeable Area (Sq.ft.in lacs) 16 43
Working Capital Per sq.ft. 477 355
13
Strictly Private & Confidential
Sustainable Improvements in Costs
Rent per sq.ft & % to Sales ( SS Dept. Business )
Service tax & GST
• Service tax on rent & other expenses having impact of 1.8% of sales•GST is expected to provide set-off of Service Tax against VAT.
Inventory Control
•Stock unsold for two seasons written off – Conservative inventory policy•PICS (Perpetual Inventory Control System ) in place – shrinkage below 0.5% of sales•Inventory under control at all times coupled with stock de-risking through change of trading model.
Shrinkage ( SS Dept. Business )
6666
67
7071
12.1%
12.4%12.2%
10.5%
10.0%
-
10
20
30
40
50
60
70
80
90
100
2011-122012-13
2013-142014-15
2015-16
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0.30%0.35%
0.40% 0.38% 0.36%
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
FY12FY13
FY14FY15
FY16
14
Strictly Private & Confidential
Technology Architecture
Planned and Focused Investment in Technology
Merchandise Management System
BI / Analytics
B2B
Warehouse Management
Loyalty / CFS
Financials
Space planning
E-Commerce
POS SystemStores PICS
Assortment planning
Allocation
Hyperion
15
Strictly Private & Confidential
Better customer connect reflected in the growth of First Citizen members and their contribution
16
First Citizen Members (in ‘000)
First Citizen Contribution to Total Sales (%)
16
2,8883,296
4,126
2,503
3,736
-
1,000
2,000
3,000
4,000
5,000
FY12FY13
FY14FY15
FY16
72% 69%72% 72% 72%
0%
20%
40%
60%
80%
100%
FY12FY13
FY14FY15
FY16
16
Strictly Private & Confidential
2,1892,563
3,0533,405
3,766
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
FY12FY13
FY14FY15
FY16
Resulting Increase in Revenue
Sales (Rs. in Cr. ) Annual LTL Growth
LTL Sales Growth for SS Dept. Store for FY16Stores > 5 Years - 8.0%Stores < 5 Years - 9.8%
LTL Growth (Quarter wise FY16)
6.5%
7.4%
10.2%
5.0%8.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
FY12 FY13 FY14 FY15 FY16
12.7%
17.4%
5.90%
0.1%
-2.0%
3.0%
8.0%
13.0%
18.0%
23.0%
28.0%
Q1-FY16 Q2-FY16 Q3-FY16 Q4-FY16
17
Strictly Private & Confidential
975 1,031 1,083 1,118 1,136
-
500
1,000
1,500
2,000
2,500
FY12FY13
FY14FY15
FY16
2,313 2,481 2,667 2,615 2,791
-
1,000
2,000
3,000
4,000
5,000
6,000
FY12FY13
FY14FY15
FY16
23% 23% 22%23%
26%
10%
15%
20%
25%
30%
FY12FY13
FY14FY15
FY16
402468
365467 445
-100200300400500600700800
FY12FY13
FY14FY15
FY16
Resulting in greater customer loyalty, higher ticket size and ASPs
Footfalls (in lacs) Conversion rate (%)
Average Selling Price (Rs)Average Transaction Size (Rs.)
FY16-LTL Volume 7.2%
LTL storesdegrew by 7.3%
LTL storesgrew by 8.9%
LTL storesgrew by 7%
LTL ASP grew by 1.3%
18
Strictly Private & Confidential
….. and Better Returns
Asset turnover ratio ( Total Assets without Group Investment)
Operating Cash Flows ( Rs. in Cr.)
ROCE % ( Without Group Investment )
Consistent bottom-line coupled with superior resource management has resulted in steady returns
RONW % ( Without Group Investment )
Total Investment in the Business from FY11 – FY 15 : Rs. 511 Crs.
5.1
4.3
4.7 4.7 4.8
3.5
4
4.5
5
5.5
FY12FY13
FY14FY15
FY16
22.9%
14.0% 14.1% 14.6% 15.5%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
FY12FY13
FY14FY15
FY16
136.0
170.0
81.1 110.0140.9
-
50.0
100.0
150.0
200.0
FY12FY13
FY14FY15
FY16
17.5%
10.6% 10.5%
14.1% 15.70%
0.0%
5.0%
10.0%
15.0%
20.0%
FY12FY13
FY14FY15
FY16
19
Strictly Private & Confidential
OMNI CHANNEL STRATEGY
20
Strictly Private & Confidential
Key Factors Driving Digital Commerce Growth
• By 2020, India will have 40-50% internet penetration accessed from all kinds of devices viz. desktops, tablets, mobiles, TV.
• The penetration of online shopping amongst the internet users will grow from 20% (2014) to 40% (2020) thanks to improvements in
digital connectivity (3G / 4G) and smartphone growth.
• More than 80% of the online population will access the internet via smartphones & tablets. Mobiles will make internet accessible to the
rural masses driving online commerce.
Source: Motilal Oswal, Google
600 MN380
MN2012
2020
150 MN50 MN
2012
2020
Mobile Phone Users
PC/Laptop Users
Smartphone penetration will grow from 40M to 550M
0
100
200
300
400
500
600
700
800
2014 2015 2016 2017 2018 2019 2020
Internet Penetration In India (in Millions)
Internet Users Mobile Internet Users
2121
Strictly Private & Confidential
Global Benchmarks
Department
Store
National
eCom
Penetration %
Online
Sales %
John Lewis 15% 28%
Macys 12% 15%
Nordstrom 12% 14%
Neiman Marcus 12% 20%
Kohls 12% 20%
• Digital channels have led to a double digit growth while pure-play store sales have grown in single digit.
• Omni-Channel customer journeys such as Click N Collect having an online & offline touch-point account for 60-70% of digital sales.
• While digital sales account only for 10-20% of overall sales, customer journeys show a digital touch-point on 75% of the overall orders.
Source: Boston Consulting Group
22
Strictly Private & Confidential
Strategic Objective
2015
Departmental Store
+
Online
Store
2016
Multichannel Retailer
2017
Omnichannel Retailer
Phase I Phase II Phase III
• Invest 50-60 Crores in OmniChannel technology
• Phase I Launch on SAP Hybris technology platform targeted for End-of-Year 2015
• Strategic tie-up with Snapdeal to be the anchor Department Store on Snapdeal.com
• Generate 10% Revenue From Digital Channels In Next 3 Years
• Take HomeStop, HyperCity, Crossword OmniChannel
23
Strictly Private & Confidential
Provide a seamless personalized shopping experience
• EVERYWHERE
• EVERYTIME on
• EVERYTHING
with
• ONE Customer Identity
• ONE Inventory View
• ONE Order History
Customer Value Proposition
24
Strictly Private & Confidential
Brand Campaign - 2013
2525
Strictly Private & Confidential
Brand Campaign - 2013
2626
Strictly Private & Confidential
Private Brand Campaign - 2014
27
Strictly Private & Confidential
Private Brand Campaign - 2014
28
Strictly Private & Confidential
Private Brand Campaign - 2015
29
Strictly Private & Confidential
Private Brand Campaign - 2014
30
Strictly Private & Confidential
Private Brand Campaign - 2014
31
Strictly Private & Confidential
Shoppers Stop on Social Media
32
8.2 mns fans
1.30 mns views for April to
June-2014
134,649 followers
32
Strictly Private & Confidential
Luckiest Boy Happiest Boy Most Special Boy
Smartest Boyfriend Most Painful Questions
http://www.youtube.com/watch?v=RtmWLHCUR0Ihttp://www.youtube.com/watch?v=ziV1EsUSsXI
http://www.youtube.com/watch?v=uqp9G-LwBQc http://www.youtube.com/watch?v=4QnIkWEmmCs http://www.youtube.com/watch?v=2s2Rsx1RQXw
Our Viral Ads
33
Strictly Private & Confidential34
Customer Satisfaction Index (CSI) Associate Satisfaction Index (ASI) (on scale of 5)
Partner Satisfaction Index (PSI) (on scale of 5)
Shoppers Stop Ltd. – Satisfaction Index
80 79 80 80
81
102030405060708090
100
FY11 FY12 FY13 FY14 FY15
3.954.11 4.12 4.13
4.21
3.00
4.00
5.00
FY11 FY12 FY13 FY14 FY15
4.14 3.85 4.07
4.31
4.20
3.00
3.20
3.40
3.60
3.80
4.00
4.20
4.40
FY11 FY12 FY13 FY14 FY15
34
Strictly Private & Confidential
Best in Class Corporate Governance and Management Profile
35
• Independent Directors on the Board of the company
• Professionally managed with ownership and management clearly demarcated
• ESOPs issued to Associates.
• Internal Audit idone by KPMG and external audit by Deloitte Haskins & Sells
• Ranked as one of the TOP 20 MID CAP Companies in 2011. These 20
companies have been selected based on the weighted score on four
parameters : Sales, Net Profit, Market CAP & Dividend.
• Has Been Chosen as “India’s Most Respected Retail Company” by the
prestigious Business World Magazine for the fifth consecutive year.
Board of Directors & Key Executives
Mr. Deepak Ghaisas (10yrs)
Mr. Nitin Sanghavi (12yrs)
Mr.Nirvik Singh (7yrs)
Mr. C.L. Raheja
Mr. Neel Raheja
Mr. Ravi Raheja
Mr. B.S.Nagesh (24yrs)
Mr. Govind Shrikhande (15yrs)
MD
Note : Yrs represent length of association with the company
Ms. Abanti Sankaranarayanan (1yr)
Mr. Manish Chokani (1yr)
Mr.Gareth Thomas
35
Strictly Private & Confidential
Corporate Social Responsibility
36
Giving Back to Society
‘Shoppers Stop’ , over the years , has contributed in its own way to make the Planet a
better place .
In our continuing endeavor to contribute to society , one of the novel practices that we have
adapted across all stores, is to celebrate the ‘ Store Birthday ‘ with the ‘Underprivileged ‘
within the store catchment .
Birthday celebrations earlier was all about fun time at the stores . Now the celebration has
moved outside the store : at Old Age homes, at Homes for the abandoned Girl Child, Home
for Destitute’ s & so on .
The Store team does its own bit by spending the day with this cross-section: touching
their lives, celebrating with them & being a part of their life .
This engagement continues & is not a one day affair : the team is in continuous touch with
these institutes & keep contributing in its own way.
A glimpse into some of the initiatives .
36
Strictly Private & Confidential
Corporate Social Responsibility
37
At Store Level Visit Old age Home
Blood Donation Camp
Spending time with underprivileged children.
A day at the Orphanage.
At Company Level Retail education - building infrastructure and creating
teaching/learning facilities, especially for the under-privileged.
Skill development - Education for the Physically challenged
Contributions - To permitted governmental and private charities and foundations that are active in the CSR space.
Adoption of artisans: Support and promote the crafts, by giving inputs and designs, fair remuneration and foundation to market artisans’ skills.
Spend - 1.25 crs in FY16
37
Strictly Private & Confidential
Shoppers Stop Limited Financial Summary –Q4-2015-16
Rs in lacs
Note : Figures have been regrouped for Presentation purpose.
8%
6%
8%
2%
5%
(1)%
Particular Q4-2015-16 Q4-2014-15
Retail Turnover 100,528.9 92,850.1
Retail Sales 98,847.4 91,485.1
Margin on Sales 32,746.3 30,762.5
Margin on Sales % 33.1% 33.6%
Other Retail Operating Income 1,681.5 1,365.0
Operating expenses 29,196.9 27,023.6
Operating expenses % 29.5% 29.5%
Operating Profit (EBIDTA) 5,230.9 5,104.0
Operating Profit (EBIDTA) % 5.3% 5.6%
Finance Charges (Net) 911.1 788.7
Depreciation 2,580.4 2,661.0
PBT 1,739.4 1,654.3
PBT % 1.8% 1.8%
Tax 722.2 624.3
Profit After Tax 1,017.2 1,030.0
Profit After Tax % 1.0% 1.1%38
Strictly Private & Confidential
Consolidated Financial Summary –Q4-2015-16
Rs in lacs
Consolidation includes:
• Shoppers Stop Limited• HyperCITY Retail (India) Ltd..• Crossword Bookstores Ltd.• Timezone Entertainment Pvt. Ltd.• Nuance Group (India) Pvt. Ltd.
Note : Figures have been regrouped for Presentation purpose.
5%
(4)%
7%
9%
(129)%
(131)%
(129)%
Particular Q4-2015-16 Q4-2014-15
Retail Turnover 128,820.0 119,637.2
Retail Sales 126,053.6 117,871.5
Margin on Sales 40,200.6 38,219.4
Margin on Sales % 31.9% 32.4%
Other Retail Operating Income 2,766.4 1,765.7
Operating expenses 38,849.0 35,704.6
Operating expenses % 30.8% 30.3%
Operating Profit (EBIDTA) 4,118.1 4,280.5
Operating Profit (EBIDTA) % 3.3% 3.6%
Finance Charges (Net) 2,197.3 1,291.2
Depreciation 3,928.9 3,868.3
PBT (2,008.1) (879.0)
Profit Before Tax % -1.6% -0.7%
Profit/(Loss) from Property Option - 7,335.0
PBT (After Property Option Profit) (2,008.1) 6,456.0
PBT % -1.6% 5.5%
Tax 722.2 624.4
Minority Interest 1,733.1 (2,361.3)
Profit After Tax (997.2) 3,470.3
Profit After Tax % -0.8% 2.9%
39
Strictly Private & Confidential
Shoppers Stop Limited Financial Summary –2015-16
Rs in lacs
Note : Figures have been regrouped for Presentation purpose.
11%
9%
9%
15%
20%
Provision for diminution in value of investment in a
Joint Venture
Particular 2015-16 2014-15
Retail Turnover 383,299.8 345,876.8
Retail Sales 376,615.5 340,523.8
Margin on Sales 126,011.6 115,764.1
Margin on Sales % 33.5% 34.0%
Other Retail Operating Income 6,684.4 5,353.0
Operating expenses 110,665.2 101,970.2
Operating expenses % 29.4% 29.9%
Operating Profit (EBIDTA) 22,030.7 19,146.9
Operating Profit (EBIDTA) % 5.9% 5.6%
Finance Charges (Net) 3,817.8 3,610.2
Depreciation 9,856.4 8,580.5
PBT ( Before Exceptional Item) 8,356.5 6,956.3
PBT% 2.2% 2.0%
Exceptional Item 2,381.0 -
PBT 5,975.5 6,956.3
PBT % 1.6% 2.0%
Tax 3,457.9 2,882.7
Profit After Tax 2,517.6 4,073.5
Profit After Tax % 0.7% 1.2%
40
Strictly Private & Confidential
Consolidated Financial Summary –2015-16
Rs in lacs
Consolidation includes:
• Shoppers Stop Limited• HyperCITY Retail (India) Ltd..• Crossword Bookstores Ltd.• Timezone Entertainment Pvt. Ltd.• Nuance Group (India) Pvt. Ltd.
Note : Figures have been regrouped for Presentation purpose.
8%
10%
9%
9%
(95)%
(111)%
17%
Particular 2015-16 2014-15
Retail Turnover 507,198.2 463,993.7
Retail Sales 495,406.7 455,299.9
Margin on Sales 156,886.4 145,487.1
Margin on Sales % 31.7% 32.0%
Other Retail Operating Income 11,791.4 8,693.8
Operating expenses 148,860.8 136,231.7
Operating expenses % 30.0% 29.9%
Operating Profit (EBIDTA) 19,817.0 17,949.2
Operating Profit (EBIDTA) % 4.0% 3.9%
Finance Charges (Net) 7,053.8 6,487.0
Depreciation 13,652.6 12,530.6
PBT ( Before Exceptional Item) (889.5) (1,068.4)
PBT % ( Before Exceptional Item) -0.2% -0.2%
Profit/(Loss) from Property Option - 8,852.0
PBT (After Property Option Profit) (889.5) 7,783.6
PBT % -0.2% 1.7%
Tax 3,457.9 2,882.8
Minority Interest 4,552.1 (660.4)
Profit After Tax 204.7 4,240.4
Profit After Tax % 0.0% 0.9%
41
Strictly Private & Confidential
Shoppers Stop Ltd – Balance Sheet
42
Rs.in lacs
Note : Figures have been regrouped for Presentation purpose.
SSL Debt : 590 CrHypercity Debt : 229 Cr
Particulars 2015-16 2014-15
Debt Equity 0.75 0.67
Asset Turnover Ratio (Without Invt. In Group Co.) 4.80 4.69
Current Ratio 0.99 0.98
PARTICULARS Mar'16 March'15
EQUITY AND LIABILITIES
SHAREHOLDERS' FUNDS
Share capital 4,201.9 4,168.4
Reserves and surplus 74,340.8 72,360.4
Net Worth 78,542.6 76,528.8
NON CURRENT LIABILITIES
Long-term borrowings 32,321.4 22,535.7
Long-term provisions 167.9 955.8
Total Non Current Liabilites 32,489.3 23,491.5
CURRENT LIABILITIES
Short-term borrowings 14,448.9 23,255.3
Trade payables 37,064.0 33,135.4
Other current liabilities 27,804.2 21,443.7
Short-term provisions 468.1 1,175.4
Total Current Liabilites 79,785.1 79,009.8
Total 190,817.1 179,030.1
ASSETS
NON CURRENT ASSETS
Total Fixed assets 65,943.4 61,055.8
Non current investments 40,471.2 40,649.5
Long term loans and advances 36,664.0 34,229.2
Total Non Current Assets 143,078.5 135,934.4
CURRENT ASSETS
Inventories 38,587.1 32,961.3
Trade Receivables 2,319.7 2,233.5
Cash and cash equivalents 528.3 490.5
Short term Loans and advances 5,374.8 6,255.2
Other current assets 928.6 1,155.1
Total Current Assets 47,738.5 43,095.7
Total 190,817.1 179,030.1 42
Strictly Private & Confidential
70
91 97
130140
147161
178
0
20
40
60
80
100
120
140
160
180
FY11FY12
FY13FY14
FY15FY16
FY17 - Forecast
FY18 - Forecast
2,2873,094 3,394
3,918 4,165 4,329 4,404 4,615
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
FY11FY12
FY13FY14
FY15FY16
FY17 - Forecast
FY18 - Forecast
Targeting Higher Growth to Build on the Existing Platform
43
Total Gross Floor Area (in 000s) Stand Alone Stores
• Robust pipeline of new stores
43
Strictly Private & Confidential
1 1 37 9 12 12 15 16 19 22
0
10
20
30
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E 2017E
Proof of Concept Established, Business Model Refined & Roll Out Planned for Expansion
Focused store rollout strategy
• Total Retail space 1.3 Mn sqft. with 17 stores operation in 10 cities.
No of stores CHAIN EXPANSION
• Cluster based growth strategy, with Core, Mid sized and Compact stores
– Existing stores after right sizing to be of 75-100 K sq ft.
– New stores of 50-60 K sq ft to drive assortment, differentiation and profitability.
– New compact size format of 25-30 K sq ft for penetration & leveraging resources.
4444
Strictly Private & Confidential
Pan India Presence with Dominance in the Large Cities
• 17 stores in 10 cities with 1.3 million sq ft of
space.
• Plans to expand retail outlets based on cluster
approach.
• Average footfalls per month: 1.6 Mn, indicating
strong customer pull.
Janakpuri
Mumbai (4)
Hyderabad (2)
Bangalore (3)
Pune (2)
Ahmedabad
Amritsar
Hypercity
Bhopal
DC Location
Note : Above figures as of 31st Mar 2016
Baroda
Noida
City Hyp Stores
Mumbai 4
Pune 2
Ahmedabad 1
Bangalore 3
Hyderabad 2
Amritsar 1
Bhopal 1
Baroda 1
Noida 1
Janakpuri 1
Total 17
4545
Strictly Private & Confidential
Private Label 20%
Branded80%
Business Model
Department Mix % Key Driver
Food & Groceries 63-65% Footfall driver
General Merchandise
[Home, Furniture, CDIT]
19-21% Value & Margin
driver
Apparels & Accessories 15-17% Fashion, Value &
Margin driver
A strong own brand portfolio
Food General
Merchandise
Fashion
15% of Sales 6% of Sales 56% of Sales
Sales Contribution
4646
Strictly Private & Confidential
Positioning & Product Strategy
Target customers: 21-45 years with Income -
20,000+
► Discerning, Urban, Upscale with High
Disposable Income
Other In-store attractions – Café, Laundry,
Wine, Saloon, SPA
Widest product range on offer in a
hypermarket in India, 50k SKUs
Awarded the “100 Must Visit Retail
Destinations for year 2007-08 around the
world”
International Award for “ Corporate
Achievement to Recognize Quality &
Excellence”– April 2010.
“India’s Most Admired Hypermarket” at
Images Retail Awards 2012.
“Best promotional/Shopper Marketing
campaign” at Loyalty Summit Awards Feb’15.
“Best Use of Social Media &
Communication Strategy” at India Retail &
E-Retail Awards 2015.
“Images Most Admired DIGITAL
MARKETING CAMPAIGN” at Images Retail
Tech Awards 2015.
Positioning
Product Offering
FOOD
Grocery
Readyfood
InstantFood
Non -FOOD
Homecare
Personal
Perishable
Fruits & Vegetables
Just-in Non-
Veg Section
Milk Products
Freshly
Baked
Integrated CDIT
SmallApplicances
Personalcare
Home
Home Ware
Home Decor
Home Needs
Furniture
Dining
Bedroom
Living Room
Kitchens
Sports
Health & Fitness
Inddor Games
Outdoor Games
Cycles
Toys
Infants
Soft Toys
Action
Figures
Learning
Electronics
Ride Ons
Fashion
Clothing
Footwear
Accesories
Jewellery
4747
Strictly Private & Confidential
Back End Operations
Majority of product written
off on completion of 12/15
months
Quarterly count cycle ,
enabling reliable inventory
and Shrinkage monitoring
Supply Chain and Systems Back end operations and IT Best Practices and Policy
Operates multi channel
supply chain for various
product categories
Imports account for 2.5% of
General Merchandise
All DC operations on Scanner
based picking
Furniture and CDIT products
are home delivered
Reliable Inventory –
Merchandize Management
System
Dynamic Auto-replenishment
system, enabling consistent
high availability of stocks
E-Payment for 99%
transactions
4848
Strictly Private & Confidential
YTD – FY16
4949
Strictly Private & Confidential
Footfalls, ASP , Conversion and Average Ticket size
Footfalls (In Lacs)
Average Selling Price (Rs)Average Transaction size (Rs)
Conversion rate (%)
Hypercity Sales Growth YTD-2015-16:-Sales Growth - 3.4% LTL Sales Growth - 1.3%
Hypercity Sales P. Sq.ft. on Chargeable Area YTD-2015-16 :Sales per sq.ft. in Rs. * 8,089LTL Sales per Sq. ft. in Rs * 8,761
* LTL sales psf is after excluding major concessionaire/ sub-lease area.
198.23 188.12
40.00
80.00
120.00
160.00
200.00
YTD FY15 YTD FY16
44.5%46.8%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
YTD FY15 YTD FY16
1,106 1,142
600
700
800
900
1,000
1,100
1,200
YTD FY15 YTD FY16
86.5 89.1
-
15.0
30.0
45.0
60.0
75.0
90.0
105.0
YTD FY15 YTD FY16
5050
Strictly Private & Confidential
HyperCITY Financials – YTD - 2015-16
Rs.in lacs
• Numbers have been regrouped for analytical representation
• LTL sales PSF growth : 4.8%
• LTL Opex Growth : 1.2%
Particular YTD FY16 % Sales YTD FY15 % Sales Growth%
Retail Sales (Including VAT) 100,630 107.7% 97,593 108.0% 3.1%
Retail Sales (Net of VAT) 93,460 100.0% 90,391 100.0% 3.4%
Gross Margin 20,981 22.4% 20,350 22.5% 3.1%
DC Cost 889 1.0% 794 0.9% 12.0%
Shrinkage 829 0.9% 443 0.5% 87.0%
Margin on Sales 19,263 20.6% 19,113 21.1% 0.8%
Store Operating Expenses 20,130 21.5% 18,685 20.7% 7.7%
Other Retail Operating Income 2,939 3.1% 2,723 3.0% 7.9%
Store EBIDTA 2,072 2.2% 3,151 3.5% -34.2%
Service Office / Pre-ops Exp. 4,030 4.3% 3,925 4.3% 2.7%
Loss / (Profit) on sale of Property options - (8,852) -9.8%
COMPANY EBIDTA (1,958) -2.1% 8,078 8.9% -124.2%
Depreciation 2,909 3.1% 2,879 3.2% 1.1%
Finance Charges 4,423 4.7% 3,852 4.3% 14.8%
PAT (9,290) -9.9% 1,348 1.5% -789.3%
Sources of Funds 31st Mar 16
Net worth 313
Loans from Shareholders / Group Co's 14,500
Loans 22,811
Total 37,624
Application of Funds
Fixed Assets 16,753
Currents Assets , Loans and Advances 32,461
Less : Current Liabilities and Provisions 11,590
Net Current Assets 20,871
Total 37,624 5151
Strictly Private & Confidential
Our Stores
525252
Strictly Private & Confidential
SS Department Stores
5353
Strictly Private & Confidential
SS Department Stores
54
Strictly Private & Confidential
Home Stop
55
Strictly Private & Confidential
Crossword Book Stores
5656
Strictly Private & Confidential
Mother Care
57
Strictly Private & Confidential
MAC
5858
Strictly Private & Confidential
ESTEE LAUDER
59
Strictly Private & Confidential
CLINIQUE
6060
Strictly Private & Confidential
HyperCITY Stores
6161
Strictly Private & Confidential
New HyperCITY Compact Store – at Whitefield Bengaluru
6262
Strictly Private & Confidential
New HyperCITY Compact Store – at Whitefield Bengaluru
6363
Strictly Private & Confidential
T H A N K Y O U
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.
64