Investor Presentation September 17

Table of content
1 Business Overview 03

2 Brands 11

3 Distribution Network and Channel Mix 24

4 Sourcing & Manufacturing 27

5 Board of Directors & Key Management 30

6 Financial Update 34

7 Value Creation for Stakeholders 42

BUSINESS OVERVIEW

3
Indian Consumer is Evolving….

Confident
Young, and
and
Experimental
Expressive

Globally Wedded to
Aware choice and
convenience

Investor Presentation 4
 More Value for their Time

 Indian house makers spend 13.2

hours within the kitchen,
compared to global peers who
spend just 6 hours

 Quality, consistency and value-

added basic food to make time
more productive

Source: GFK Research

Investor Presentation 5
 Premium and Value Ad FMCG Products

 Barely one-third of the US$185

billion FMCG market is branded,
dominated by home and personal
care and tobacco products.

 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

Source: Boston Consulting Group

Investor Presentation 6
 Safer and Holistic Home and Personal Care Options

 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

 Healthier options that take care of

body

Source: FMCG market details are as per Boston Consulting Group research

Investor Presentation 7
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 8
 Integrated Food & FMCG Company
Key Food & FMCG Brands

Two Strong Pillars

Supporting the Furtherance
of Business Purpose

Distribution Network Sourcing & Manufacturing

 Overall distribution footprint of ~67,000 stores  Strong presence in sourcing of agri commodities and fresh
 Access to a vast network of over 1,000 Future Group retail produces
outlets (including Heritage Stores)  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

Investor Presentation 9
JVs & Associations

 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

 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

 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

 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

 Tie-up for the distribution of New Age FCL products and increasing reach of General Trade outlets across India

Investor Presentation 10
BRANDS

11
 Portfolio: Key Brands and Categories

Food and Beverages (93%)

Staples, Dairy and Bakery, Fruits and Vegetables, Snacks, Juices, Frozen Foods, Ready to Cook Foods
among others

Home & Personal Care (7%)

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 12
 Revenue Split Across SBUs & Brands Thereof

(Numbers inside the SBU pie chart represent YoY Growth (%))
Tasty Kara
Aadhaar & Treat
FMCG
Others* 30% 9%
Nilgiris Brands
8% 6% 14%
CareMate
7% -3% Others Include:
Kosh
F&V 63% Pratha
11%
Brands Sunkist
20% 112% Veg Affaire
CleanMat 34% Sangi’s Kitchen
e Puretta
TS
16%

Golden Harvest Karmiq

Prime
2%
3%
35%
Centre of
Others
Plate
36%
52% Golden Others Include:
Natures Choice
Harvest
INR6,623 mn
59%
Desi Atta
Ektaa
Fresh&Pure
Total Revenue for Q1 FY18 Agri Pure
Kosh Atta

Investor Presentation *Adjusted for Intercompany 13

Portfolio of Brands under Centre of Plate

Investor Presentation 14
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 15
Broad Range of Value Added Offerings

Investor Presentation 16
Personal and Homecare

Investor Presentation 17
Kosh Advertisement Campaign

Ab khaana
yummy yummy,
pet healthy
healthy

Roti ke pet
mein kya hai?

Investor Presentation 18
Key Initiatives & Associations for Enhancing Brand Awareness

Investor Presentation 19
Innovative Products Catering to Indian Festive Habits

Investor Presentation 20
 Extending the Portfolio across Food & Beverages

Introducing Tasty Treat Launched FCL’s first Pooof! Potato Kettle All new range of Sunkist extending its
Twist – adding a spicy Organic, all natural, Chips Frozen Snacks by fusion drinks range
twist with a launch of 5 pesticide free Brand – Tasty Treat with the launch of
new Indian flavors: Mother Earth, Introduced new range peppy summer flavors
offering: of Kettle Chips with 2 1. Aloo Tikki
1. Spicy Pineapple new flavors: 1. Citrus Twist
1. Pulses 2. Barbeque
2. Chilli Guava 1. Spicy Peri-Peri 2. Kiwi Lemon
2. Spices
Potato Bites
3. Fruit Chaat 2. Tangy Tomato 3. Apple Ginger
3. Rice 3. Cheese Honey
4. Chatpata Kokum Poppers
4. Sugar and 4. Pinacolada
5. Litchi Rose more 4. Crinkle – Cut
Fries 5. Berry Punch

5. Hash Browns
Investor Presentation 21
Other New Product Launches & Brand Initiatives

Investor Presentation 22
Media Campaigns and Promotions

Click to watch the Video

Investor Presentation 23
DISTRIBUTION

24
Distribution Network Spanning across Channels
Aadhaar
2%
Nilgiris
8%
Other MT
& GT 26%

Channel Wise
Sales Mix
Q1 FY18
EasyDay,
11%
Big Bazaar
53%

Investor Presentation 25
SOURCING AND MANUFACTURING

26
Significant Value Addition Capabilities

Investor Presentation 27
Created Strong Backend Infrastructure

Sourcing Strengths Dairy & Bakery Facilities

 Created fully integrated agri-commodity sourcing  One manufacturing facility each for dairy and bakery near
capabilities Bangalore
− Sourcing capacity of 1.5 lakh tonnes agri-produce  Daily milk handling capacity of 1.8lac ltr per day
− 71 sourcing hubs across the country and APMC  Installed capacities for dairy for wide range of products like
licenses in 26 states milk, butter, different variants of cheese, curd etc
− ~50 Warehousing and Processing centers  “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

Other Facilities

− 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 28
Significant Value Addition Capabilities

Investor Presentation 29
BOARD OF DIRECTORS & KEY MANAGEMENT

30
 Effective Board with Vast Experience

Chairman CEO Future Group Director

Previously been the Chairman of Founder and Group CEO of Future Founded Verlinvest & has been its
SEBI, LIC, the Corporate Group. Has over 25 years managing director since then,
Governance Task Force of experience and is known as the serves as non-executive director of
International Organization of pioneer of modern retail industry in portfolio companies
Securities Commission and the India Acting as representative of DLF SA
Chairperson of the Insurance Previously served on the Board of
Institute of India and Served on the Directors of Interbrew and Spadeal
BOD of various institution

Director Director
Currently on the Board of Acting representative of Proterra
prestigious companies like Asian Investment Partners
Paints, Tata Chemicals, Indian Managing Director of the private
Hotels, Go Airlines, Taj SATS Air equity team in Proterra and serves
Catering, PNB Metlife India on Board of various investee
Insurance, Tata Teleservices companies

Investor Presentation 31
 Effective Board with Vast Experience

Director Director Independent Director Director

Been associated with Future Group Qualified Chartered Accountant and Member of the Bar Council of Instrumental in bringing in design-
since 2002 company secretary Maharashtra & Goa and has been led thinking within the group
Instrumental in successfully leading Previously served as CEO of Future practicing as an Associate at D.M. Led the conceptualization and
agri-sourcing business of the group Ventures and CFO with erstwhile Harish & Co., Advocates launch of a number of retail formats
Helped in building strong brands Pantaloon Retail India Limited Primary expertise in the area of real for Future Group
such as Golden Harvest, Fresh & estate laws & instrumental in
Pure, Premium Harvest, Ekta successful completion of numerous
real estate transactions

Investor Presentation 32
 Management Team Footprint Well in Place Now

Interim CEO Agri & Staples Brands Manufacturing Marketing

With over 20 years of experience in Been associated with Future Group ~20 years of manufacturing and Joined from Times Group, most
the industry and has been with since 2002 supply chain experience across recently served as Executive
Future Group for more than 12 Instrumental in successfully leading FMCG, printing and packaging President looking after brand and
years. Previously worked with agri-sourcing business of the group At HUL, looked after supply and business strategy for TOI, Mirrors
Hindustan Lever & Asian Paints Helped in building strong brands operations of 3 company owned and language brands
Holds a Post Graduate Diploma in such as Golden Harvest, Fresh & and 15 contract manufacturing Previous experience of leadership
Business Management from XLRI Pure, Premium Harvest, Ektaa plants of FMCG products positions at Leo Burnett, Mudra
Jamshedpur Communications, Ogilvy & Mather

Packaging CFO Food Park CTO

Recently appointed as CFO of FCL
26+ years of experience in FMCG 25 years of professional career in Recently joined FCL with over 26
Over 11 years experience at Marico
Packaging portfolio covering India & abroad with leading MNC, years of prior experience in the field
of working in various positions, last
Beauty, Homecare, Food and large corporate & start-ups in of Information Technology
held position being Head-Treasury,
healthcare etc. for both Indian as Finance, strategy, governance and Associated with Marico for over 24
IR, M&A
well as Global Markets general management years with last held position being
Experience across Corporate
Associated with Marico, Dabur & Associated with Sara Ltd (HK), Head - IT and Business Analytics
Finance, Cross Border M&A, post
Unilever India previously Cura Group, Alghanim Group Previously worked with Bristlecone
acquisition integration, treasury,
forex, fund raise etc. (Kuwait) and Mahindra Consulting

Investor Presentation 33
FINANCIAL UPDATE

34
 FY17 & Q1 FY18 - At a Glance

Consolidated Q1 FY18 Reported Q1 FY18 Net

42% EBITDA expansion
Reported Cash Profit at
Consolidated level in
Q1 FY18
Profit on Standalone basis

Q1 FY18 Topline Growth

(Consolidated) 3.3x ₹ 62 mn

39% ₹500 mn
Reported Consolidated Market Cap grew by
FY17 EBITDA

FY17 Topline Growth

(Consolidated)
₹207 mn Promoter Warrant Money
Received in August
120% XIRR
in last 3.5 years*

*Over 1st April 2014 to 18th Sep 2017 on fully diluted basis

Investor Presentation 35
Standalone Income Statement

FY 2017-18 FY 2016-17
FY 2016-17 FY 2015-16 Particulars (INR Mn)
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

42% 667 mn
Turnaround of INR

INR317 mn vs INR-51 mn INR78 mn vs INR-585 mn

Investor Presentation 36
Consolidated Income Statement

FY 2017-18 FY 2016-17
FY 2016-17 FY 2015-16 Particulars (INR Mn)
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

39% 467 mn
narrowed by INR

INR207 mn vs INR-74 mn of INR1 mn in Q1 FY18

Investor Presentation 37
 Evolution of Profitability Over the Last 3 Years

Strong
Consolidated INR 21,158 mn
13,122 mn
INR
17,021 mn
INR
Topline Growth

Standalone PAT INR 78 mn

Profit
Turnaround over
Last 3 Years
INR 938 mn INR 585 mn
Loss
Loss

INR207 mn
Profit

INR 463 mn
Loss
74 mn
INR
Loss

Investor Presentation 38
Evolution of Operating Profits

Network expansion and

increasing penetration

Expansion of General
Going Trade network
forward
New product launches
potential to
scale up Premiumization of
Prior to 2016 products
reported
Economies of scale
Operating Losses
Currently achieving
profitability at
operating level

Investor Presentation 39
Consolidated Balance Sheet

As on
Particulars (INR mn)
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

 While the Top Line witnessed a growth of 42% in Q1 FY18 the balance sheet grew only by 5% YoY

Investor Presentation 40
 Value Creation for Stakeholders

Stock Exchange Data (as on 18th September, 2017) Top Institutional Holders % Holding
Market Capital (INR mn) 103,906 Arisaig 8.1%
Shares Outstanding 1,882,839,795 Verlinvest 7.5%
Free Float (%) 56% Proterra 7.0%
Symbol (NSE/BSE) FCONSUMER / 533400 IFC 3.1%

1,800
Others
FCL CAGR of 120% 27.4%
1,600
1,400 FCL Index FMCG Index Sensex
1,200 Promoters
1,000 43.8%
800
600
400 FMCG CAGR of 11%
200
- Sensex CAGR of 11% Institutional
Investors
01-Apr-14

01-Apr-16
01-Aug-15

01-Aug-17
01-Dec-14

01-Dec-16

28.7%

Note: CAGR is calculated using XIRR | Shareholding & Market Capital on Fully
Investor Presentation Diluted Basis 41
 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 42
 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.

Investor Presentation 43
Thank Registered and Corporate Office:
Future Consumer Limited
You Knowledge House, Shyam Nagar, Off.
Jogeshwari- Vikhroli Link Road
www.futureconsumer.in Email:
investor.care@futureconsumer.in