TCNS Clothing Co. Limited has informed the Exchange about Investor Presentation

Date: 24.06.2021

To

To

Corporate Relationship Department BSE Limited 1st Floor, Rotunda Building P.J Towers, Dalal Street, Mumbai-400 001.

National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (E) Mumbai- 400 051.

Dear Sir,

Subject: Disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Scrip Code: BSE- 541700/Stock Symbol: NSE- TCNSBRANDS

Pursuant to the above mentioned Regulations, we wish to inform you that the Company has participated in the investor conference as given below:

 Date of Meeting/ Event  Time of Meeting/ Event  Type of Meeting/ Event  Meeting/ Event mode

: Thursday, June 24, 2021 : 10:00 A.M. to 11:00 A.M. : B&K Conference : Virtual (Online)

With reference to the above, please find herewith, enclosed Investor Presentation. The aforesaid Investor Presentation is also being disseminated on Company's website at www.wforwoman.com/

This is for your information and records.

For and on behalf of TCNS Clothing Co. Limited

Piyush Asija Company Secretary and Compliance Officer. M. No. A 21328

Date: 24.06.2021 Place: New Delhi

TCNS Clothing Co. Ltd.

Q4 & FY21 Results June 21, 2021

1

Safe Harbor

This presentation and the accompanying slides (the “Presentation”), which have been prepared by TCNS Clothing Co. Limited (the “Company”), have been prepared solely for

information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in

connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document

containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty,

express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This

Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this

Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively

forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and

assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various

international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’s future

levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company’s market preferences and its

exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could differ materially and adversely from results

expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking

statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements

and projections.

2

Contents

Q4 & FY21 Highlights

Current Situation & Focus Areas for FY22

Business Update – Q4 & Full Year FY21

Company Financials – Q4 and Full Year FY21

3

Contents

Q4 & FY21 Highlights

Current Situation & Focus Areas for FY22

Business Update – Q4 & Full Year FY21

Company Financials – Q4 and Full Year FY21

4

Sequential improvement in recovery through FY21; Q4 impacted by lockdowns / disruptions starting mid-March

FY21 Overall Sales Recovery (% of respective quarter YoY)

Q1

Q2

Q3

Q4

12%

45%

72%

101%

5

Q4 Highlights  Offline:

consistent

sales recovery with many tier 2/3 geographies tracking near pre-covid levels

 Online:

sustained strong momentum with online sales more than doubling over last year. Own website grew ~2.5X over last year

 Kick-starting growth: Signed up 30 EBOs in Q4; slated to open in H1 FY22

Exceeded the primary FY21 objective of cash conservation; Ended the year with higher cash reserves of Rs.182 crores1 without any fundraise

Cash Reserves Rs. Crores

200

180

160

140

120

100

80

60

40

20

0

171

182

FY20

FY21

Note: (1) Excluding bank limits, includes one-time tax refund

6

Key initiatives undertaken for cash conservation:  Cost rationalization : 30%+ reduction in costs against FY20

 Working capital reduction on back of leveraging inventory- at-hand across seasons

Focus Areas for FY21: Key Highlights

Continue Consumer Engagement  Invested in and sharply scaled both D2C

channels: own website & marketplaces

Strengthen Balance Sheet  Achieved the objective of preserving strength, with

the balance sheet addition to net cash reserves

 Augmented partnerships with vendors by fulfilling all payment commitments and providing additional support

Optimize Cost Structure  Realized overall savings of 30%+

• Rental: ~45% • ERC: ~23% • Overheads: ~29%

 Institutionalized

hyperlocal shopping via chat / video, Society-sales.

sales

social and commerce capabilities: eg. Virtual

3

2

4

1

Focus Areas

5

7

Build Organization Resilience  Implemented phase 1 of best-in-class automated inventory management system

 Setup new integrated warehouse for more robust, efficient and scalable supply chain

 Institutionalized express production and

replenishment model

Seize Opportunities  Newly launched footwear category pilot showing traction. Scaling up in FY22. Running pilots for Aurelia Girls and Elleven

 Kick-starting Expansion : Signed up 30 EBOs in Q4; slated to open in H1 FY22

Contents

Q4 & FY21 Highlights

Current Situation & Focus Areas for FY22

Business Update – Q4 & Full Year FY21

Company Financials – Q4 and Full Year FY21

8

Current situation: near-term demand scenario continues to be disrupted with Covid 2nd wave impact

1

Stores Unlocking  Gradual unlocking for both high-

street and mall stores

 As on date, ~60% of offline network operational with stipulated restrictions

Current Situation

2

Online Sales  Online channels (both own website

& marketplaces) continued operations through lockdown  Impact of ban on non-essential

items delivery in multiple states in April and May

5

Supply Chain  Warehouse and transportation

operational through the lockdown with appropriate restrictions

 Production units disrupted in April /

May – now mostly functional

9

FY22 Key Priorities: Invest in building growth runways and key capabilities while preserving balance-sheet strength

01. Online Business Growth o Continue scale-up of own website through personalized

deeper marketing and technology upgradation

offerings,

omni

o Expand third-party marketplace with new business models, additional channels and online first product offering

04. Swifter Thought-to-Shelf o Enhance design, sampling and production capabilities to develop products closer to season launch

o Institutionalize next phase of Automated

inventory management

10

02. Calibrated Offline Expansion o Project Rise: upgrade and expand the flagship stores to tap into available real estate opportunity

o Project Bharat: expand store network across tier 3/4 markets through franchisee-led model

03. Cash Conservation o Reduce working capital through inventory optimization and lower-risk trade models

o Continue optimizing costs on all especially rentals and overheads

fronts,

Contents

Q4 & FY21 Highlights

Current Situation & Focus Areas for FY22

Business Update – Q4 & Full Year FY21

Company Financials – Q4 and Full Year FY21

11

Q4 & FY21 Highlights: Reported Ind-AS-116

Growth%

1%

854%

NA

NA

Amount Rs. Crores

Revenue

EBITDA

PBT

PAT

% to Revenue

EBITDA

PBT

PAT

Q4 FY21

221

41

5

4

Q4 FY21

18.6%

2.1%

1.8%

Q4 FY20

219

4

-36

-24

Q4 FY20

2.0%

-16.6%

-10.8%

Amount Rs. Crores

Revenue

EBITDA

PBT

PAT

% to Revenue

EBITDA

PBT

PAT

12

FY21

FY20

Growth%

635

51

-77

-56

1149

207

66

69

-45%

-75%

NA

NA

FY21

FY20

8.1%

-12.1%

-8.9%

18.1%

5.8%

-6.0%

Q4 Brand-wise performance

PREMIUM FUSION WEAR

CONTEMPORARY ETHNIC WEAR

PREMIUM OCCASION WEAR

13

Share of Brands (%) : Q4 FY21

6%

38%

56%

W Aurelia Wishful

Brand Wise Growth

Brands

W

Aurelia

Wishful

Q4 FY21

-2%

11%

-23%

Q4 Channel-wise performance

Channel Wise Revenue Split – Q4 FY21

3%

21%

35%

LFS

EBO's

42%

Online & Others

MBO

Pan India Multichannel Presence

3,674 561

2,065

1,048

Dec'20

3,685 551

2,123

1,011

Mar'21

MBOs

LFS

EBOs

# of EBOs

As of Mar’21

Q4 openings

W

Aurelia

Wishful

Elleven

Total

319

223

4

5

551

-8

-2

-1

1

-10

14

Working Capital

Rs. Million

Particulars

Debtors

Inventory

Payables

Total Working Capital

Mar’21

Sep’20

1648

2781

(912)

3517

1,637

3,335

(969)

4,003

Mar’20

1,756

3,302

(1,223)

3,835

Contents

Q4 & FY21 Highlights

Current Situation & Focus Areas for FY22

Business Update – Q4 & Full Year FY21

Company Financials – Q4 and Full Year FY21

16

March 31, 2021

For the Quarter Ended Dec 31, 2020

March 31, 2020

Financials : Q4 and FY21

Particulars (All amounts in Rs. Million)

Income (a) Revenue from operations (b) Other income

Total income

Expenses (a) Cost of materials consumed (b) Purchases of stock-in-trade (c) Changes in inventories of finished goods,work-in-progress and stock-in-trade (d) Employee benefits expense (e) Finance costs (f) Depreciation and amortisation expense (g) Rent expenses (h) Selling and distribution expenses (i) Other expenses

Total expenses

Profit/(loss) before tax (2 - 4)

Tax expense (a) Current tax (b) Adjustment for tax related to earlier years (c) Deferred tax (credit)/charge

Total tax expense

2211 181

2392

605 64

272 319 114 249 - 534 188

2345

47

0 0 8

8

2379 49

2428

706 3 217

258 70 194 17 548 246

2259

169

0 0 43

43

Profit/(loss) for the period / year (5 - 7)

39

127

For the Year Ended

March 31, 2021

March 31, 2020

6355 490

11487 211

6845

11698

2205 80

439 1214 365 919 17 1596 781

7615

-769

0 0 -206

-206

-564

4507 93 -577

1576 382 1032 226 2691 1108

11037

661

181 -244 29

-33

694

17

2192 91

2283

1199 26 -302

383 95 313 62 585 287

2648

-365

-94 0 -33

-127

-238

Balance-Sheet as on 31.03.2021

Particulars (All amounts in Rs. Million)

As at Mar 31, 2021

As at Mar 31, 2020

Particulars (All amounts in Rs. Million)

As at March 31, 2021

As at March 31, 2020

ASSETS Non-current assets (a) Property, plant and equipment (b) Capital work-in-progress (c) Right of use assets (d) Other Intangible assets (e) Financial assets - Other financial assets (f) Deferred tax assets (net) (g) Non-current tax assets (net) (h) Other non-current assets Total non-current assets

Current assets (a) Inventories (b) Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Other financial assets (c) Other current assets Total current assets

307 5 2686 21

444

550 103 30 4147

2781

1724 1648 146

3

4 289 6594

397 21 3084 36

480

350 455 29 4852

3302

1181 1756 529

3

37 316 7124

Total assets

10741

11976

EQUITY AND LIABILITIES Equity (a) Equity share capital (b) Other equity Total equity

Liabilities Non-current liabilities (a) Financial liabilities (i) Lease liabilities (ii) Other financial liabilities (b) Provisions (c) Other non-current liabilities Total non-current liabilities

Current liabilities (a) Financial liabilities (i) Borrowings (ii) Lease liabilities (iii) Trade payables (iv) Other financial liabilities (b) Provisions (c) Current tax liabilities (net) (d) Other current liabilities Total current liabilities Total liabilities Total equity and liabilities

18

123 5997 6120

2632 50 124 8 2814

54 619 912 72 4 43 105 1808 4622 10741

123 6477 6600

2995 67 122 5 3188

0 625 1223 77 3 57 202 2188 5376 11976

Cash-Flows for FY21

Particulars (All amounts in Rs. Million)

For the year ended 31.03.21

For the year ended 31.03.20

Particulars (All amounts in Rs. Million)

For the year ended 31.03.21

For the year ended 31.03.20

A. CASH FLOW FROM OPERATING ACTIVITIES

Profit/(Loss) before tax

Adjustments for

Depreciation and amortisation expense Re-measurement of defined benefit liability Interest and dividend income on financial assets Gain on sale of financial assets Finance costs Loss on plant and equipment sold / scrapped / written off Allowance for expected credit loss Lease liability written back Gain on fair valuation of financial assets Share based payments to employees Operating profit before working capital changes

Changes in working capital: Adjustments for (increase) / decrease in operating assets: Inventories Trade receivables Other financial assets Other assets

Adjustments for increase / (decrease) in operating liabilities:

Other financial liabilities Other liabilities Provisions Trade payables

Cash generated from operations Less: Income tax refunds/(paid) (including tax deducted at source) NET CASH FLOW FROM OPERATING ACTIVITIES (A)

-769

919 22

-15

-16 365

27

74 -49 -29 61

589

521 34 35 30

-11 -94 3 -311 796

337

1133

B. CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditure on property, plant and equipment (including capital work-in- progress and capital advances)

Capital expenditure on intangible assets

Proceeds from sale of property, plant and equipment

Purchase of current investments

Proceeds from sale of current investments

Proceeds from maturity of bank deposits

Interest and dividend received

NET CASH FLOW USED IN INVESTING ACTIVITIES (B)

C. CASH FLOW FROM FINANCING ACTIVITIES

Porceeds from current borrowings (net)

Repayment of non-current borrowings

Shares issued on exercise of employee stock options Payment on account of lease liabilities (including interest on lease liability)

Interest paid

NET CASH FLOW USED IN FINANCING ACTIVITIES (C)

-101

-324

-8

4

-1716

1202

0

64

-556

54

0

7

-996

-25

-961

-4

14

-4613

4811

12

80

-25

0

-2

46

-1007

-7

-971

19

Net increase/(decrease) in cash and cash equivalents (A+B+C)

-383

314

661

1032 -13

-106

-10 382

28

44 -53 0 87

2051

-561 7 29 -33

4 -40 46 73 1576

-266

1310

20