SPENCERSNSE15 November 2019

Spencer's Retail Limited has informed the Exchange regarding Investor Presentation on Financial Results for the Quarter and Half-Year Ended on 30th September, 2019

Spencer's Retail Limited

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Spencer’s Retail Limited Earnings Presentation – Q2 FY20

Nov-19

| RP-Sanjiv Goenka Group Presentation

Key performance highlights

Scale

Efficiency

₹ 612 Cr.

₹ 1,213 Cr.

Q2 FY20 Operating Revenue

H1 FY20 Operating Revenue

>34%

Q2 FY20 Revenue from Non-Food Categories

~ 0.23 lac sq. ft.

~ 0.40 lac sq. ft.

21.3%

Trading Area added during the Q2 FY20

# of New Stores opened during Q2 FY20

Trading Area added during H1 FY20

# of New Stores opened during H1 FY20.

Q2 FY20 Gross Margin

Q2 FY20 Sales Growth

Financial numbers are of Standalone Business.

Nov-19

| RP-Sanjiv Goenka Group Presentation

>35%

H1 FY20 Revenue from Non-Food Categories

21.1%

H1 FY20 Gross Margin

11%

H1 FY20 Sales Growth

Key performance highlights

For Q2FY20

For H1FY20

• Revenue growth of 8% (YoY)

• Revenue growth of 11% (YoY)

• Gross Margin % stands at 21.3%

• Gross Margin % stands at 21.1%

• EBITDA of ₹ 23.06 Cr* and PAT of

• EBITDA of ₹ 58.08 Cr* and PAT of

₹ (-)15.62 Cr*

₹ (-)14.69 Cr*

• New 3 stores opened in Q2 FY20

• New 7 stores opened in Q2 FY20

*Excluding the impact of IND AS 116, Standalone EBITDA and PAT for the Quarter ended Sep 30, 2019 is ₹ (-)1.95 Cr and ₹(-) 12.70 Cr. *Excluding the impact of IND AS 116, Standalone EBITDA and PAT for the period ended Sep 30, 2019 is ₹ 8.86 Cr and ₹ (-) 9.41 Cr. Financial numbers are of Standalone Business.

Nov-19

| RP-Sanjiv Goenka Group Presentation

Financial Parameters FY20

Quarter

Revenue from Operation (₹ Cr)

601

612

566

1,213

1,090

Q2 FY19 Q1 FY20 Q2 FY20

H1 FY19

H1 FY20

Gross Margin (%)

21.0%

20.9%

21.3%

21.2%

21.1%

Q2 FY19 Q1 FY20 Q2 FY20

H1 FY19

H1 FY20

EBITDA and PAT numbers are on like to like basis i.e. without the impact of IND AS 116.

Financial numbers are of Standalone Business.

Nov-19

| RP-Sanjiv Goenka Group Presentation

Operational Parameters FY20

Quarter

Store Count (Nos)

160

161

Store Count (Nos)

161

137

Q2 FY19 Q1 FY20 Q2 FY20

Trading Area (Mn Sq ft)

1.39

1.41

H1 FY19

H1 FY20

Trading Area (Mn Sq ft)

1.41

1.24

Q2 FY19 Q1 FY20 Q2 FY20

Financial numbers are of Standalone business.

Nov-19

| RP-Sanjiv Goenka Group Presentation

H1 FY19

H1 FY20

Operational Parameters FY20

Quarter

Gross Sales per Sq ft (₹ Per month)

1632

1515

1528

1611

1522

Q2 FY19

Q1 FY20

Q2 FY20

H1 FY19

H1 FY20

Financial numbers are of Standalone business.

*Gross Sale includes Taxes

Nov-19

| RP-Sanjiv Goenka Group Presentation

Standalone Financials – Profit & Loss

1.8% Revenue from operations

1,212.6

1,090.2

3 months ended

Growth

Standalone (₹ Cr)

30-Sep-19 30-Jun-19 30-Sep-18

Y-o-Y

Q-o-Q

161

0.23

14.06

611.8

481.8

130.0

21.3% 41.3

68.1

2.3

23.06

3.8% 23.6

15.1

(15.62)

-2.6%

(15.62)

(0.4)

(15.97)

160

0.17

13.86

600.8

475.0

125.8

20.9% 38.5

61.6

9.3

35.02

5.8% 21.8

12.3

0.93

0.2%

0.93

(0.4)

0.57

137

0.54

12.42

566.3

447.4

118.8

13%

8.0%

9.4%

New Stores added

18%

1% Total Store count

TA added (Lac sq.ft)

1% TA exit (Lac sq.ft)

1% Cost of Goods Sold

3.4% Gross Margin

21.0% 27 bps

32 bps

Gross Margin %

38.8

76.9

6.5

9.60

-11%

-64%

7% Employee expenses

10% Other expenses

-75% Other income

EBITDA

1.7% 207 bps -206 bps

EBITDA %

5.6

2.1

Depreciation

Finance costs

1.93

-909% -1780% PBT

0.3% -289 bps -271 bps

PBT %

0.5

1.47

0.4

1.88

Tax Expenses

PAT

Other Comprehensive Income

Total Comprehensive Income

6 months ended

30-Sep-19

30-Sep-18

161

0.39

14.06

137

0.85

12.42

956.8

255.8

21.1% 79.7

129.7

11.7

58.08

4.8% 45.4

27.4

(14.69)

-1.2%

(14.69)

(0.7)

(15.40)

858.7

231.5

21.2% 74.4

149.2

13.1

21.02

1.9% 11.7

4.1

5.21

0.5%

1.5

3.69

(0.6)

3.08

Nov-19

| RP-Sanjiv Goenka Group Presentation

Standalone Financials – Balance Sheet

Standalone (₹ Cr)

As at

30-Sep-19 31-Mar-19

A) Assets

Assets

Inventories

Total Assets

B) Equity & Liabilities

Equity

Other Liabilities

Trade Payables (Net)

1,158

287

1,445

438

720

287

Total Equity & Liabilities

1,445

646

270

916

596

267

916

Nov-19

| RP-Sanjiv Goenka Group Presentation

Expanding and Growing in Chosen Profitable Geographies

Spencer’s + Nature’s Basket Presence

NORTH 48 Stores

EAST 46 Stores

~56% of India GDP

(+) ~15% of India GDP

WEST 28 Stores

SOUTH 75 Stores

 Acquired Nature’s Basket

limited, which gave us access to the attractive western India market.

 High potential region of

Maharashtra with ~15% of India’s GDP

 36 differentiated & premium stores added to Spencer’s portfolio

 Addition of Trading Area of

91k Sq. ft.

 Average Sales per Sq. ft.

~ ₹ 3,200

*On 4th July 2019, Spencer's Retail Limited (formerly known as RP-SG Retail Limited) ('SRL') has acquired 100% stake of Nature's Basket Limited (NBL) from Godrej lndustries Limited, as a wholly owned subsidiary company.

Standalone Financials – Profit & Loss

Standalone (₹ Cr)

New Stores added

Total Store count

TA added (Lac sq.ft)

TA exit (Lac sq.ft)

Revenue from operations

Cost of Goods Sold

Gross M argin

Gross Margin %

Employee expenses

Other expenses

Other income

EBITDA

EBITDA %

PBT %

Depreciation

Finance costs

PBT

Tax Expenses

PAT

Other Comprehensive Income

Total Comprehensive Income

For the period

5th Jul'19 - 30th Sep'19 -

0.91

87.9

72.5

15.5

17.6%

9.5

27.6

0.2

(21.38)

-24.3%

9.4

6.2

(36.92)

-42.0%

(36.92)

0.1

(36.80)

 On Acquisition adopted the Operation process and accounting

policy alignment based on the Spencer’s policy:

 Inventory - ₹6 cr.

 Account Receivables - ₹7 cr.

 Fixed Assets - ₹3.5 cr.

 Other expenses - ₹3.5 cr.

* Excluding the impact of INDAS 116, EBITDA and PAT for the period ended 30th Sep’19 is (-) ₹ 29.19 cr and (-) ₹36.04 cr.

Nov-19

| RP-Sanjiv Goenka Group Presentation

Consolidated Financials – Profit & Loss

3 months ended

Growth

Consolidated (₹ Cr)

30-Sep-19 30-Jun-19 30-Sep-18

Y-o-Y

Q-o-Q

6 months ended

30-Sep-19

30-Sep-18

699.5

600.8

566.3

23.5%

16.4% Revenue from operations

1,300.2

1,090.2

Expenses:

23%

15% Cost of Goods Sold

1,023.6

548.5

150.9

21.6%

52.5

84.3

2.5

16.66

2.4%

33.2

23.0

(39.56)

-5.7%

(39.56)

(0.2)

(39.80)

475.0

125.8

20.9%

39.9

63.3

9.3

31.86

5.3%

22.1

12.3

(2.46)

-0.4%

(2.46)

(0.4)

(2.82)

447.4

118.8

27.0%

20.0% Gross Margin

21.0% 59 bps

65 bps

Gross Margin %

40.1

77.1

6.7

8.41

31%

-63%

31% Employee expenses

33% Other expenses

-73% Other income

EBITDA

1.5% 90 bps

-292 bps

EBITDA %

5.8

2.1

0.51

Depreciation

Finance costs

PBT

0.1% -575 bps -525 bps

PBT %

0.5

0.05

0.4

0.49

Tax Expenses

PAT

Other Comprehensive Income

Total Comprehensive Income

276.7

21.3%

92.4

147.6

11.8

48.52

3.7%

55.3

35.3

(42.02)

-3.2%

(42.02)

(0.6)

(42.62)

858.7

231.5

21.2%

77.0

149.4

13.4

18.44

1.7%

12.1

4.1

2.19

0.2%

1.5

0.67

(0.6)

0.10

*Excluding the impact of IND AS 116, Consolidated EBITDA and PAT for the Quarter ended Sep 30, 2019 is ₹ (-) 16.17 Cr and ₹(-) 33.23 Cr. *Excluding the impact of IND AS 116, Consolidated EBITDA and PAT for the period ended Sep 30, 2019 is ₹ (-) 8.51 Cr and ₹ (-) 33.33 Cr.

Nov-19

| RP-Sanjiv Goenka Group Presentation

Consolidated Financials – Balance Sheet

Consolidated (₹ Cr)

As at

30-Sep-19 31-Mar-19

A) Assets

Assets

Inventories

Total Assets

B) Equity & Liabilities

Equity

Other Liabilities

Trade Payables (Net)

1,372

315

1,687

363

980

344

Total Equity & Liabilities

1,687

599

270

869

548

267

869

Nov-19

| RP-Sanjiv Goenka Group Presentation

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. The first ever hypermarket in India was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s (including Nature’s Basket) runs 197 stores with a total 14.97 Lacs Square Feet in over 42 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.

Nov-19

| RP-Sanjiv Goenka Group Presentation

Spencer’s Retail Limited

Q2 FY20 – Highlights: Revenue from Operations at ₹ 699 Crore (24% YoY growth); Gross Margin stands at 21.6% (20.9% in Q2FY19); Opened 3 new stores of Spencer’s. Standalone basis Spencer’s Revenue from Operations grew 8% YoY.

Kolkata: November 14, 2019: Spencer’s Retail Ltd reported turnover of ₹ 612 crore and Gross Margin of 21.3% for quarter ended September 30, 2019.

As on September 30, 2019 the total number of stores has increased to 161 from 137 stores as on 30 September, 2018. During the quarter the company has added 3 stores into its existing cluster. The company's total trading area has also increased to 14.06 Lacs Square Feet as on September 30, 2019, from 12.42 Lacs Square Feet as on September 30, 2018.

Nature’s Basket Ltd reported turnover of ₹ 88 crore with total 36 stores having trading area of 0.91 Lacs Square Feet as on September 30, 2019.

Unaudited Consolidated Financial Results for the quarter ended September 30, 2019:

 Revenue from Operations for the quarter ₹ 699 Cr  Gross Margin for the quarter ₹ 151 Cr at 21.6%  Positive EBITDA ₹ 16.66 Cr*  PAT (-)₹ 39.56 Cr*

*Excluding the impact of IND AS 116, EBITDA and PAT for the Quarter ended September 30, 2019 is (-) ₹ 16.17 Cr and (-) ₹ 33.23 Cr respectively.

Mr. Shashwat Goenka, Sector Head, said, “For the quarter we focused on building all major consumer events which connected us to many new customers and helped us sustain margins in this flagging economy. We continue to focus on competitiveness of our offerings and sharpen our communications.

We are investing significantly in new stores which have a temporary initial investment with a long term prospect. We are working on the integration process of Nature’s Basket acquisition, which compliments Spencer’s Brand and laying foundation for its future scalability.”

Completed the acquisition of Nature’s Basket Limited on July 4, 2019 from Godrej Industries Limited. Natures Basket Limited has 36 stores in the western part of India including prime locations in Mumbai, Pune and Bengaluru. This acquisition will help us unlock synergy and will give us access to the western India market.

About Spencer’s Retail Limited: Spencer’s Retail Limited (www.spencersretail.com | NSE: Spencers | BSE: 542337), 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. The first ever hypermarket in India was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s runs 197 stores (including Nature’s Basket) with a total 14.97 Lacs Square Feet in over 42 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.

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Spencer's Retail Limited has informed the Exchange regarding Investor Presentation on Financial Results for the Quarter and Half-Year Ended on 30th September, 2019

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