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Investor Presentation September 17
Table of contentBusiness Overview1
2
3
4
5
Brands
Distribution Network and Channel Mix
Sourcing & Manufacturing
Board of Directors & Key Management
11
24
27
30
03
6 Financial Update 34
7 Value Creation for Stakeholders 42
3
BUSINESS OVERVIEW
Investor Presentation 4
Indian Consumer is Evolving….
Young, and
Experimental
Globally
Aware
Confident
and
Expressive
Wedded to
choice and
convenience
Investor Presentation
Indian house makers spend 13.2
hours within the kitchen,
compared to global peers who
spend just 6 hours
5
More Value for their Time
Source: GFK Research
Quality, consistency and value-
added basic food to make time
more productive
Investor Presentation
Barely one-third of the US$185
billion FMCG market is branded,
dominated by home and personal
care and tobacco products.
6
Premium and Value Ad FMCG Products
Source: Boston Consulting Group
Demographic and income
changes are moving consumption
towards discretionary food
items such as snacks, savories,
juices, ready to cook packs
growing at 3-4X over next five
years.
Consumers are looking at
premium products and value ads
Investor Presentation
Over 80% of India’s home and
personal care market, estimated
to be around US$ 28 billion, is
branded
Yet existing brands face new
challenges with changes in
consumer preference towards
premium products
7
Safer and Holistic Home and Personal Care Options
Source: FMCG market details are as per Boston Consulting Group research
Healthier options that take care of
body
Investor Presentation 8
What do we Offer?
FCL is tapping into the unmet
needs and unexpressed desires
of this generation to create an
organization that is geared to
deliver...
Food and Fast Moving
Consumer Goods to the
Fast Moving Generation
Investor Presentation 9
Integrated Food & FMCG Company
Two Strong Pillars
of Business Purpose
Supporting the Furtherance
Sourcing & Manufacturing
Overall distribution footprint of ~67,000 stores
Access to a vast network of over 1,000 Future Group retail
outlets (including Heritage Stores)
Strong presence in sourcing of agri commodities and fresh
produces
Dairy & Bakery manufacturing facility in Southern India
Frozen Vegetables / Snacks, Chutney and Wafer Biscuit facilities
Oats facility in Sri Lanka
International tie-up with global brands
Ke
y F
oo
d &
FM
CG
Bra
nd
s
Distribution Network
Investor Presentation 10
JVs & Associations
Known for Tilda rice in India, Hain Celestial is a leading organic, natural, and better-for-you products company
JV, long with a manufacturing base at the Food Park, will introduce brands and products comprising of:
― Terra vegetable chips, Garden of Eatin Tortilla Chips, Dream rice and soya milk, Sensible Portions, health
snacks for toddlers
Leaders in packaged rice, led by basmati rice brand, “Dawaat”
Set up a Rice Mill and Processing plant at the Food Park
Currently operationalized for Sona Masoori rice with an aim of developing the first national brand in this space
Swiss-based Mibelle, one of the largest Consumer Goods company in
Central Europe
‘Swiss Tempelle’ has launched body wash and lotions and further
extending the range
Commissioned state of the art “oats-based” food manufacturing facility in Sri Lanka via a JV with SVA India
Launched ‘Kosh’ to make oats the third grain of the Country.
Offerings currently include instant oats, broken oats, wheat and oats flour and plans to launch variety of sweet and
savory oats categories
Tie-up for the distribution of New Age FCL products and increasing reach of General Trade outlets across India
11
BRANDS
Investor Presentation 12
Portfolio: Key Brands and Categories
Food and Beverages (93%)
Home & Personal Care (7%)
Staples, Dairy and Bakery, Fruits and Vegetables, Snacks, Juices, Frozen Foods, Ready to Cook Foods
among others
Wipes, Body Wash, Body Lotion, Toilet and Floor Cleaners, Kitchen Aides
Note:
1) Remaining 7% largely represents revenues from Food Park, Aadhaar and others.
Investor Presentation
INR6,623 mn
Total Revenue for Q1 FY18
Golden Harvest Prime
3%
Karmiq
2%
Others36%
Golden Harvest
59%
13
Revenue Split Across SBUs & Brands Thereof
CleanMate
16%
CareMate
11%
Tasty Treat30%
Kara
9%
34%
Aadhaar & Others*
6%
FMCG Brands
14%
Centre of Plate52%
F & V Brands
20%
Nilgiris8%
Others Include:
Kosh
Pratha
Sunkist
Veg Affaire
Sangi’s Kitchen
Puretta
TS
Others Include:
Natures Choice
Desi Atta
Ektaa
Fresh&Pure
Agri Pure
Kosh Atta
35%
112%
63%7% -3%
*Adjusted for Intercompany
(Numbers inside the SBU pie chart represent YoY Growth (%))
Investor Presentation 14
Portfolio of Brands under Centre of Plate
Investor Presentation 15
Expanding Dairy and Bakery Footprint / Portfolio
An iconic dairy and bakery brand with over 110 year heritage
operating an integrated portfolio of over 200 SKUs
Nilgiris enjoys a strong patronage in southern markets, the brand is
perceived as ‘Made, Not Manufactured’
Undertook mass advertising for the first time with newspaper
advertising in Chennai and Bengaluru
Building digital with presence on Facebook and Instagram
Exploring distribution opportunities outside the Group network with
launches in HyperCity, Spencers etc.
Recently launched 4 variants of flavoured Greek Yogurt
Investor Presentation 16
Broad Range of Value Added Offerings
Investor Presentation 17
Personal and Homecare
Investor Presentation
Ab khaana
yummy yummy,
pet healthy
healthy
18
Roti ke pet
mein kya hai?
Kosh Advertisement Campaign
Investor Presentation 19
Key Initiatives & Associations for Enhancing Brand Awareness
Investor Presentation 20
Innovative Products Catering to Indian Festive Habits
Investor Presentation 21
Extending the Portfolio across Food & Beverages
Pooof! Potato Kettle Chips
Introduced new range of Kettle Chips with 2
new flavors:
1. Spicy Peri-Peri
2. Tangy Tomato
Launched FCL’s first Organic, all natural,
pesticide free Brand –
Mother Earth, offering:
1. Pulses
2. Spices
3. Rice
4. Sugar and more
Introducing Tasty Treat Twist – adding a spicy
twist with a launch of 5 new Indian flavors:
1. Spicy Pineapple
2. Chilli Guava
3. Fruit Chaat
4. Chatpata Kokum
5. Litchi Rose
All new range of Frozen Snacks by
Tasty Treat
1. Aloo Tikki
2. Barbeque Potato Bites
3. Cheese Poppers
4. Crinkle – Cut Fries
5. Hash Browns
Sunkist extending its fusion drinks range with the launch of
peppy summer flavors
1. Citrus Twist
2. Kiwi Lemon
3. Apple Ginger Honey
4. Pinacolada
5. Berry Punch
Investor Presentation 22
Other New Product Launches & Brand Initiatives
Investor Presentation 23
Media Campaigns and Promotions
Click to watch the Video
24
DISTRIBUTION
Investor Presentation
Aadhaar2%
Nilgiris 8%
Big Bazaar53%
EasyDay, 11%
Other MT & GT 26%
25
Distribution Network Spanning across Channels
Channel Wise
Sales Mix
Q1 FY18
26
SOURCING AND MANUFACTURING
Investor Presentation 27
Significant Value Addition Capabilities
Investor Presentation
Created fully integrated agri-commodity sourcing
capabilities
− Sourcing capacity of 1.5 lakh tonnes agri-produce
− 71 sourcing hubs across the country and APMC
licenses in 26 states
− ~50 Warehousing and Processing centers
28
Created Strong Backend Infrastructure
Sourcing Strengths
Other Facilities
Dairy & Bakery Facilities
One manufacturing facility each for dairy and bakery near
Bangalore
Daily milk handling capacity of 1.8lac ltr per day
Installed capacities for dairy for wide range of products like
milk, butter, different variants of cheese, curd etc
“Dedicated” Chilling Center at Muthur
Planning strategic tie ups with other dairy players in
Northern & Western markets
Dairy business procures 54,000 litres of milk everyday from
a network of over 9,000 farmers and 200 milk traders in
Tamil Nadu and Karnataka
Monthly installed capacities of 450 tonnes of bread, 100
tonnes of cake among other products
− Launched an Oats manufacturing facility
− Enables to capture Oats segment in India with a wide variety of products
− F&V unit at the Food Park recently achieved ISO 22000 Food Safety Management System
certification
− Land leased to Hain Celestial – Organic Food Company
− Set up Rice and Combi Mills
− Working with leading Food & FMCG manufacturers across segments
Investor Presentation 29
Significant Value Addition Capabilities
30
BOARD OF DIRECTORS & KEY MANAGEMENT
Investor Presentation 31
Effective Board with Vast Experience
Director
Currently on the Board ofprestigious companies like AsianPaints, Tata Chemicals, IndianHotels, Go Airlines, Taj SATS AirCatering, PNB Metlife IndiaInsurance, Tata Teleservices
CEO Future Group
Founder and Group CEO of FutureGroup. Has over 25 yearsexperience and is known as thepioneer of modern retail industry inIndia
Chairman
Previously been the Chairman ofSEBI, LIC, the CorporateGovernance Task Force ofInternational Organization ofSecurities Commission and theChairperson of the InsuranceInstitute of India and Served on theBOD of various institution
Director
Founded Verlinvest & has been itsmanaging director since then,serves as non-executive director ofportfolio companiesActing as representative of DLF SAPreviously served on the Board ofDirectors of Interbrew and Spadeal
Director
Acting representative of ProterraInvestment PartnersManaging Director of the privateequity team in Proterra and serveson Board of various investeecompanies
Investor Presentation 32
Effective Board with Vast Experience
Director
Been associated with Future Groupsince 2002Instrumental in successfully leadingagri-sourcing business of the groupHelped in building strong brandssuch as Golden Harvest, Fresh &Pure, Premium Harvest, Ekta
Director
Qualified Chartered Accountant andcompany secretaryPreviously served as CEO of FutureVentures and CFO with erstwhilePantaloon Retail India Limited
Independent Director
Member of the Bar Council ofMaharashtra & Goa and has beenpracticing as an Associate at D.M.Harish & Co., AdvocatesPrimary expertise in the area of realestate laws & instrumental insuccessful completion of numerousreal estate transactions
Director
Instrumental in bringing in design-led thinking within the groupLed the conceptualization andlaunch of a number of retail formatsfor Future Group
Investor Presentation 33
Management Team Footprint Well in Place Now
Interim CEO
With over 20 years of experience inthe industry and has been withFuture Group for more than 12years. Previously worked withHindustan Lever & Asian PaintsHolds a Post Graduate Diploma inBusiness Management from XLRIJamshedpur
Agri & Staples Brands
Been associated with Future Groupsince 2002Instrumental in successfully leadingagri-sourcing business of the groupHelped in building strong brandssuch as Golden Harvest, Fresh &Pure, Premium Harvest, Ektaa
Manufacturing
~20 years of manufacturing andsupply chain experience acrossFMCG, printing and packagingAt HUL, looked after supply andoperations of 3 company ownedand 15 contract manufacturingplants of FMCG products
Food Park
25 years of professional career inIndia & abroad with leading MNC,large corporate & start-ups inFinance, strategy, governance andgeneral managementAssociated with Sara Ltd (HK),Cura Group, Alghanim Group(Kuwait)
Marketing
Joined from Times Group, mostrecently served as ExecutivePresident looking after brand andbusiness strategy for TOI, Mirrorsand language brandsPrevious experience of leadershippositions at Leo Burnett, MudraCommunications, Ogilvy & Mather
CFO
Recently appointed as CFO of FCLOver 11 years experience at Maricoof working in various positions, lastheld position being Head-Treasury,IR, M&AExperience across CorporateFinance, Cross Border M&A, postacquisition integration, treasury,forex, fund raise etc.
Packaging
26+ years of experience in FMCGPackaging portfolio coveringBeauty, Homecare, Food andhealthcare etc. for both Indian aswell as Global MarketsAssociated with Marico, Dabur &Unilever India previously
CTO
Recently joined FCL with over 26years of prior experience in the fieldof Information TechnologyAssociated with Marico for over 24years with last held position beingHead - IT and Business AnalyticsPreviously worked with Bristleconeand Mahindra Consulting
34
FINANCIAL UPDATE
Investor Presentation 35
FY17 & Q1 FY18 - At a Glance
Reported Cash Profit at
Consolidated level in
Q1 FY18
Consolidated Q1 FY18
EBITDA expansion
3.3x42%
Q1 FY18 Topline Growth
(Consolidated)
Reported Q1 FY18 Net
Profit on Standalone basis
₹62 mn
Reported Consolidated
FY17 EBITDA
₹207 mn
₹500 mn
Promoter Warrant Money
Received in August
39%FY17 Topline Growth
(Consolidated)
Market Cap grew by
120% XIRR
in last 3.5 years*
*Over 1st April 2014 to 18th Sep 2017 on fully diluted basis
Investor Presentation
FY 2017-18 FY 2016-17
Q1 Q1
16,450 13,380 Total Income from Operations 5,173 3,573
2,143 1,758 Gross Profit 680 482
317 -51 EBITDA 143 76
1.9% -0.4% EBITDA% 2.8% 2.1%
80 -588 PBT 62 -35
78 -585 PAT 62 -35
0.5% -4.4% PAT % 1.2% -1.0%
250 -433 Cash Profit 113 9
Particulars (INR Mn)FY 2016-17 FY 2015-16
36
Standalone Income Statement
42%
INR317 mn vs INR-51 mn
Turnaround of INR667 mn
INR78 mn vs INR-585 mn
Investor Presentation
FY 2017-18 FY 2016-17
Q1 Q1
21,158 17,021 Total Income from Operations 6,623 4,671
2,928 2,553 Gross Profit 924 662
207 -74 EBITDA 117 36
1.0% -0.4% EBITDA% 1.8% 0.8%
-427 -877 PBT -74 -151
-610 -1,077 Consolidated PAT -88 -207
-2.9% -6.3% PAT % -1.3% -4.4%
-284 -793 Cash Profit 1 -130
Particulars (INR Mn)FY 2015-16FY 2016-17
37
Consolidated Income Statement
39%
INR207 mn vs INR-74 mn
narrowed by INR467 mn
of INR1 mn in Q1 FY18
Investor Presentation 38
Evolution of Profitability Over the Last 3 Years
INR207 mn
Profit
INR463 mn
Loss
INR585 mn
Loss
INR78 mn
ProfitStandalone PAT
Turnaround over
Last 3 YearsINR938 mn
Loss
INR74 mn
Loss
INR17,021 mnINR21,158 mn
Strong
Consolidated
Topline Growth INR13,122 mn
Investor Presentation 39
Evolution of Operating Profits
Going
forward
potential to
scale upPrior to 2016
reported
Operating Losses
Network expansion and
increasing penetration
Expansion of General
Trade network
New product launches
Premiumization of
products
Economies of scale
Currently achieving
profitability at
operating level
Investor Presentation 40
Consolidated Balance Sheet
While the Top Line witnessed a growth of 42% in Q1 FY18 the balance sheet grew only by 5% YoY
31-Mar-17 30-Jun-17
Shareholder's Fund 8,885 8,848
Minority Interest 78 65
Gross Debt 4,714 5,117
Less: Cash and Cash Equivalents 475 121
Net Debt 4,239 4,996
Net Adjusted Capital Employed 13,202 13,908
Fixed Assets 5,173 5,341
Goodwill and Intangibles 4,163 4,176
Net Current Assets & Others 3,866 4,392
Total Net Assets 13,202 13,908
Particulars (INR mn)As on
Investor Presentation
Market Capital (INR mn) 103,906
Shares Outstanding 1,882,839,795
Free Float (%) 56%
Symbol (NSE/BSE) FCONSUMER / 533400
Stock Exchange Data (as on 18th September, 2017)
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
01-A
pr-
14
01-D
ec-1
4
01-A
ug-
15
01
-Ap
r-1
6
01-D
ec-1
6
01-A
ug-
17
FCL Index FMCG Index Sensex
41
Value Creation for Stakeholders
FCL CAGR of 120%
FMCG CAGR of 11%
Sensex CAGR of 11%
Note: CAGR is calculated using XIRR | Shareholding & Market Capital on Fully Diluted Basis
Top Institutional Holders % Holding
Arisaig 8.1%
Verlinvest 7.5%
Proterra 7.0%
IFC 3.1%
Promoters43.8%
Institutional Investors
28.7%
Others27.4%
Investor Presentation 42
The Road Ahead…
Leveraging the Group’s strong knowhow of Indian Consumer
Building a dynamic organization based on holacratic design to execute multiple ideas and
initiatives at a time
Building a strong portfolio of brands in high margin and value add categories
Tap the immense potential of Modern Retail as the urban consumption story grows
At the same time, building a strong multi-channel distribution across the country
Continue journey towards profitability with expansion of operating profit with each quarter
Further improving balance sheet position to improve stakeholder returns
Significant portion of capital employed has recently got into commercial activity and should now
gradually lead to value creation
Investor Presentation 43
Disclaimer
This report contains forward-looking statements, which may be identified by their use of words like ‘plans’, ‘expects’, ‘will’,
‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’, or other words of similar meaning. All statements that address
expectations or projections about the future, including but not limited to statements about the Company’s strategy for growth,
product development, market position, expenditures, and financial results are forward-looking statements. Forward-looking
statements are based on certain assumptions and expectations of future events. The Company cannot guarantee that these
assumptions and expectations are accurate or will be realized.
The Company’s actual results, performance or achievements could thus differ materially from those projected in any such
forward looking statements. The Company assumes no responsibility to publicly amend, modify or revise any forward looking
statements, on the basis of any subsequent developments, information or events.
Thank
You
Registered and Corporate Office:
Future Consumer Limited
Knowledge House, Shyam Nagar, Off.
Jogeshwari- Vikhroli Link Road
www.futureconsumer.in Email: