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Future Lifestyle Fashions Ltd.

BSE: 536507 Sector: Industrials
NSE: FLFL ISIN Code: INE452O01016
BSE LIVE 13:52 | 11 Dec 345.00 -5.85
(-1.67%)
OPEN

352.50

HIGH

352.90

LOW

340.00

NSE 14:12 | 11 Dec 346.50 -4.45
(-1.27%)
OPEN

353.95

HIGH

354.00

LOW

343.95

OPEN 352.50
PREVIOUS CLOSE 350.85
VOLUME 2868
52-Week high 410.55
52-Week low 117.35
P/E 80.05
Mkt Cap.(Rs cr) 6,569
Buy Price 345.00
Buy Qty 54.00
Sell Price 346.95
Sell Qty 1.00
OPEN 352.50
CLOSE 350.85
VOLUME 2868
52-Week high 410.55
52-Week low 117.35
P/E 80.05
Mkt Cap.(Rs cr) 6,569
Buy Price 345.00
Buy Qty 54.00
Sell Price 346.95
Sell Qty 1.00

Future Lifestyle Fashions Ltd. (FLFL) - Chairman Speech

Company chairman speech

Experience Fashion in High Definition

Dear Stakeholders

We are pleased to share with you the Annual Report of your Company for the financialyear 2016-17. This marks the completion of the fourth year of operation and we are happyto share that your Company has posted a net profit of Rs46 Crore a growth of almost 55%over the last year. The standalone turnover for this financial year was Rs3877 Crore. Aswe move ahead we are fairly confident to build upon our strengths of operating one of themost unique fashion companies created to capture consumption in an emerging market.

Future Lifestyle Fashions is a consumer goods company with a strong portfolio offashion brands that also has its own retail network. This portfolio of fashion andfootwear brands is diverse - they cover almost every consumer need occasion and segmentwithin the space. While some of them are foreign brands many of them are home grownbrands built through years of experience and investments. Each of the brands are atdifferent stages of growth and evolution. While some like Lee Copper with gross sales off 651 Crore are large and attract a diverse consumer segment there are others that caterto particular niche areas like aLL a plus size fashion brand or Urban Yoga that cater toyoga enthusiasts. We have an optimum mix of company-owned brands and exclusive licensees.The Company through its subsidiaries also owns substantial stakes in a number of fastgrowing brands in the fashion and footwear space.

Our retail network covering around 5.4 million square feet through 372 stores in morethan 90 cities and towns also cover most segments of consumption. Most of the brands havetheir own exclusive stores and many of them are available across various multi-brandoutlets and modern trade networks. The Company also operates its own retail chains. Theflagship department chain Central now has 35 stores at landmark locations and malls inmetros in the country. The company also operates the country's only national off-priceretailer Brand Factory. Brand Factory which is now slated for a rapid expansion acts asa bridge for customers aspiring for buy branded fashion.

Collectively the entire gamut of brands and retail networks allows your Company toact respond and cater to almost every facet of consumption in the fashion space. Itallows us to compete at favourable terms with almost every fashion brand retail chain ande-commerce networks. As we move ahead our focus will be to strengthen this uniqueecosystem that we have built for capturing fashion consumption in India and also use nextgeneration technology loyalty platforms and benefit from newer advances in Big Data andartificial intelligence to engage more effectively with customers and drive higherefficiencies across the value chain.

Through the year we took a number of steps towards more pervasive use of data andtechnology across the value chain that we have created. While our marketing team nowengages customers across multiple social media channels and loyalty platforms our designteams now have access to virtual mock rooms to experiment and visualize different customerexperiences for products and brands. Business managers have access to visually richer datasets to take faster and more accurate decisions. These steps are now yielding results thatare now showing up across various operational and financial parameters. Despite stiffcompetition Central posted a same store sales growth of 19% as compared to 7% in previousyear. The free reported free cash flows of f146 Crore while reducing its overall capitalemployed byf91 Crore and Net debt by Rs473 Crore.

The growth in the business is also an outcome of the significant upgradation andimprovements in the customer journey. Our next generation Central stores built around theidea of showcasing fashion in high definition has earned the attention of both customersas well as industry stakeholders. While the oldest store in Bangalore was re-launched withthis new design and enhanced customer engagement a new flagship store in Delhi's Aerocityto capture the city's imagination. In the first quarter of the forthcoming financial yearwe are opening a similar 100000 square feet landmark store to mark our entry intoKolkata. Brand Factory too is being re-imagined to cater to a much wider range ofcustomers.

During the year we also took a few steps to bring in more focus into our investeebrands. Investee companies posted a combined turnover of around Rs600 Crore. The largestamongst them Turtle posted a turnover of Rs174 Crore. The Company holds a 26% stake inthe Turtle. In order to enhance the overall performance and improve the valuation ofinvestee brands we transferred all investee brands portfolio into an associate entityFLFL Lifestyle Brands Limited (FLBL). The Company's leading brand Lee Cooper was carvedinto an independent subsidiary Future Specialty Retail Limited (FSRL) that will help bringin more management focus and enhance the overall brand value.

Fashion incorporates multiple influences and much like our customers we are anorganization that is multi-faceted young and agile. We have begun the journey of creatinga unique fashion organization and we thankful for your continued support faith andencouragement.

Regards

Kishore Biyani