future consumer enterprise limited (fcel)

12 JULY 2014 FUTURE CONSUMER ENTERPRISE LIMITED

RS 9.79 Company Report: India-Consumer Listed

www.indiabusinessreports.com 1

Basic Stock Info

Market Cap Rs 1564 crore Listing BSE, NSE Face Value Rs 6 (was Rs 10 at IPO) IPO May 2011 IPO Price Rs 10 52 week high Rs 11.78 52 week high date 10-July-14 52 week low Rs 4.51 52 week low date 26-Nov-13 All time high Rs 11.88 All time high date 12-Nov-12 All time low Rs 4.51 All time low date 26-Nov-13

Shareholding Pattern

Mar-14 Mar-13 Promoters 41.1 39.1 FIIs 19.8 20.7 Public 39.1 40.2

% of Promoter Holding Pledged

31-Mar-14 71.1%

31-Dec-13 52.1%

31-Mar-13 52.1%

31-Mar-12 40.7%

Brief Financials

(Rs cr) FY10 FY11 FY12 FY13 FY14

Sales 157.8 547.2 858.3 959.3 822.6

EBITDA (excl OI) -23.6 14.9 19.4 -18.5 -85.6

PAT -21.0 -39.4 -65.4 -76.6 -15.3

EBITDA margin (%) -15.0% 2.7% 2.3% -1.9% -10.4%

Networth 504.5 726.9 1437.5 829.5 805.7

Debt 168.8 13 22.3 1.4 109.5

Net Fixed Assets

245.9 254.5 377.2

Investments

148.2 539.1 138.9

Net Current Assets 302.7 140.6 316.2

KEY POINTS

The best case valuation of Future Consumer

Enterprises (FCEL) should be around Rs 1100 crore,

or about 30% less than the current market cap.

This implies a share price of ~Rs7.

Aggregate EBITDA loss of Rs 140 crore over FY08-

14. No clarity on when would the company turn

EBITDA positive. Unsettled business model.

On the positive side, the company had zero net

debt as on 31 March’14 (short term debt of Rs 109

crore, current investment of Rs 123 crore).

However, it has announced 4 investments since,

the era of zero net debt could be over by now.

Sold Capital Food stake for Rs 180 crore in Dec’13.

While the sale gave positive returns, reason for

sale not clear.

The drop in FY14 revenue is a result of the FY13

demerger. While FCEL added new businesses (KB’s,

Express retail) in FY13, it wasn’t enough to recoup

the topline. The demerger also took away the

profitable businesses, leaving FCEL will all loss

making businesses.

Current business portfolio is around Rs 340 crore of

sales from standalone company, and Rs 480 crore

from subsidiaries.

Since Apr’13, the company has made 4 major new

investment decisions: 100% of Future Agrovet, 35%

in Sarjena Foods, 74% in a mega food park project

and 50% in a JV in Sri Lanka.

Not clear how an investment in an infrastructure

project like a food park is in synch with the

company’s business. More such parks planned.

ACK Media is loss making non-core business

requiring continual support. FCEL had invested Rs

82 cr till Mar’13; put in a further Rs 9 cr in Dec’13.

Acquisition of Express Retail appears another bad

investment. Closed almost half of its 65 stores.

Santosh Desai holds 2,52,56,619 shares amounting

to 1.58% stake, of value Rs 24.75 crore at current

price

India-Consumer-Listed Future Consumer Enterprise 12 Jul’14


BUSINESS AT IPO

Was an investment company at IPO in 2011

14 Business Ventures, six of which were subsidiaries

As on IPO date, FCEL (then called Future Ventures or FVL) was a NBFC registered with the RBI, and in the business of making investments, which it calls Business Ventures.

It had 14 Business Ventures, six of which were subsidiaries. Out of the 14 Business Ventures, FCEL had indirect shareholding in three of the Business Ventures and one of the Subsidiaries is a step-down subsidiary. FCEL intended to be a long-term owner, operator and/or partner of the Business Ventures.

Business Venture Segment Stake Date acquired

1 AND Designs India Limited Fashion 22.86% 21.10.2009

2 Biba Apparels Private Limited Fashion 17.30% 14.03.2011

3 Holii Accessories Private Limited Fashion 50.00% 02.11.2009

4 Indus-League Clothing Limited Fashion 85.70% 30.01.2010

5 Celio Future Fashion Limited* Fashion 49.99% 30.01.2010

6 Lee Cooper (India) Limited Fashion 100.00% 30.01.2010

7 Turtle Limited* Fashion 26.00% 30.01.2010

8 Indus Tree Crafts Private Limited Home Products 52.53% 01.03.2010

9 Capital Foods Exportts Private Limited Food 40.81% 15.02.2010

10 Future Consumer Enterprises Limited FMCG 100.00% 02.08.2010

11 Future Consumer Products Limited FMCG 90.00% 29.06.2010

12 Aadhaar Retailing Limited Rural Distribution 70.00% 27.03.2008

13 Amar Chitra Katha Private Limited Media 12.79% 30.06.2011

14 SSIPL Retail Limited Footwear Distributor 6.57%

FCEL had entered into a Mentoring Services Agreement with Pantaloon Retail (India) Limited to provide mentoring services to itself and/ or the Business Ventures.

Additionally, it had entered into a Consulting and Advisory Services Agreement with Future Capital Holdings Limited under which it would, amongst other things, support resource mobilisation in investee companies, advice on mergers and acquisitions and exit strategies and provide research services in relation to Treasury Assets.

25% of advisory fee goes to Future Corporate Resources, rest goes to Future Retail.

In addition to the above fee, FVL also pays Brand Royalty as per chart shown.

These appear to go to Future Ideas Company Limited and Future Brands Limited.



DEMERGER SCHEME IN NOV’12

Gave away fashion business to Future Fashion & Lifestyle

8 Business Ventures demerged out, effective 1 Jan’13

Future Ventures (FVL) demerged out: Indus League, Lee Cooper, Celio,

Holii, Indus Tree and strategic investments in AND, Biba and Turtle into

Future Fashion. This was effective 1 Jan 13, or after 9 months of FY13.

We have attempted a rough calculation of the impact of demerger on the

P&L of FVL/FCEL.

The profitable business moved out. It was also the larger business, contributing >60% of FY12 revenue

The key majority owned businesses demerged out Indus League Clothing,

and its subsidiary Lee Cooper. For FY12, the cumulative turnover of these

businesses was ~Rs 540 crore, and EBITDA was Rs 46 crore.

The business which has continued had revenue of ~Rs320 cr and EBITDA loss of ~26 crore in FY12. Since then, while revenue has expanded sharply, so has EBITDA loss

What the following table shows is – what would financials look like, if the

demerged business was excluded.

FY12 FY13

(Rs cr) Reported Less Demerged

Reported Less Demerged

Sales 858.3 328.3 959.3 535.3

EBITDA 19.4 -26.6 -18.5 -55.3

Some of the minority holdings like AND, and Biba were also demerged out;

however, these don’t impact the P&L.

The continuing revenue stream of the current FCEL shows a steady 8-10% EBITDA loss

The financials for FCEL’s business, if we strip out the demerged businesses

(certain approximations involved here), look like this:

(Rs cr) FY12 FY13 FY14

Sales 328.3 535.3 822.6

EBITDA -26.6 -55.3 -85.6

EBITDA Margin (%) -8.1% -10.3% -10.4%

This does give the impression that FCEL’s food and related businesses are

making a steady EBITDA loss of 8-10%. The sharp jump in revenue is not all

organic, new acquired businesses are a part of this, though we don’t know

by how much.

Statement at the time of demerger FVL will be a company focussed on the Food & FMCG sector with a

portfolio of FMCG brands --

Its own rural distribution chain, Aadhar and convenience store

chains, KB’s Fair Price & Big Apple.

The FMCG brands portfolio includes Fresh & Pure, Premium

Harvest, Tasty Treat, Clean Mate, Care Mate, Poonya, Ekta,

Sangi’s Kitchen along with Smith & Jones and Chings Secret that

are owned through a 43.7% stake in Capital Foods.

It also owns an upcoming Food Park being set up for sourcing and

processing of Food & FMCG products.

FVIL will also reorganise some of its businesses held in

subsidiaries to emerge as an operating company and will continue

to look for investment opportunities for its growth



BUSINESS PORTFOLIO POST DEMERGER

Operating business + subsidiaries

Retailing, Food and FMCG are the focus

areas, ACK is an oddball

At the time of the de-merger, there are about 6 key Business Ventures left:

Aadhar, Future Consumer Products, ACK, Star and Sitara Wellness, Express

Retail and Capital Foods.

Subsidiaries as on Mar’13 Investment Stake

(post de-merger) Mar-12 Mar-13 Mar-12 Mar-13

Aadhaar Retailing Limited 107 116 70.00% 70.00%

Future Consumer Enterprises Limited 160 2 100% 100%

Future Consumer Products Limited 20 20 90% 90%

Amar Chitra Katha Private Limited 82 82 68.12% 68.12%

Star and Sitara Wellness Private Limited - 18 100.00% 100.00%

Express Retail Services Private Limited - 62 100.00% 100.00%

Capital Foods Exportts Private Limited* 81 81 43.76% 43.50%

Capital Foods Exportts Private Limited 25# 25# Total (Rs Crore) 475 405 *Capital Foods was not a subsidiary #zero coupon convertible debenture

Stand alone revenues start from FY13 From the above lot, 2 companies - Future Consumer Enterprises Limited

and Future Consumer Products Limited – have moved up to figure in stand

along revenues. KB’s Fair Price was also acquired in FY13 and it appears is

part of the parent standalone numbers

(Rs crore)

The demerged businesses would have continued to 3 quarters of FY13,

which explains 70-80% of FY13’s ‘sale from subsidiaries’.

Express Retail added to FY13

consolidated numbers, Future Agrovet

partly came in FY14

Similarly consolidated revenue has grown through addition of Express

Retail in FY13 and Future Agrovet in Nov’13 (which should have

contributed to Q4 of FY14)

0 0

303.7 342.8

FY11 FY12 FY13 FY14

Net Sales - Standalone

547.2

858.3

655.6

479.8

FY11 FY12 FY13 FY14

Sales from Subsidiaries



INVESTMENT ACTIVITY SINCE MAR’13

FCEL has been quite active in FY14 and ytd, making 6 investment announcements

FCEL announced 6 investments since Mar’13. Of this, KFC Shoemaker was

supposed to be passed on to Future Fashion and Lifestyle.

FCEL continues to support loss making ACK.

Announced a tie up with Sunkist, a bevearages brand from USA in Dec’13.

Expects a revenue of Rs 200 crore in 2 years

Besides the above equity investments, FCEL signed a long-term licensing

agreement with Sunkist. Sunkist is a citrus marketing co-operative and a

leading licensor based in California with presence across 86 countries.

In India, the company is expected to launch a range of sparkling

beverages, fruit juices and drinks which would be priced at a premium

compared with existing brands such as Fanta, Miranda or Tropicana. “We

expect the Sunkist brand to record Rs 200 crore sales turnover by the

second year of launch. It would be based on a royalty payment,” added

Biyani. Sunskist will be sold through the general trade and Future Group-

owned outlets such as Food Bazaar and Aadhar.

SALE OF CAPITAL FOODS

Not clear why the sale was done, given that FCEL wanted to focus on foods

Given that FCEL’s focus was supposed to be foods, the sale of Capital

Foods comes as a surprise. One explanation could be that FCEL does not

want to hold minority stakes in companies, in line with its focus of being an

operating company. (However, 35% stake buy in Sarjena Foods belies this)

Oddly, in FY12, FVL invested Rs 36 crore in Capital Food or additional 2.95% stake, implying valuation of Rs 1220 crore!

FCEL’s total investment in CFL amounted to Rs 106 crore for its 44.5%

stake.

The initial investment was made in 2006, or about 7 years ago. In

2006, Future Ventures had pumped in Rs 13 crore for a minority

33% stake in Capital Foods. So the valuation at that time was Rs

39 crore.

The FY12 Annual report of FCEL says: During the year, your

Company has raised its stake in Capital Foods Exportts Private

Limited from 40.81% to 43.76% by additionally investing ` 36

crore. This suggests valuation of Rs 1220 crore!

FCEL exited Capital Foods in Dec’13 at valuation of Rs 400 crore

FCEL sold its 44.5 per cent stake for Rs 180 crore in Capital Foods in

Dec’13. The stake was sold to a European family office Artal Investments.

Amount Stake When

Integrated Food Park Private Limited 73.89% 19-May-14

Sarjena Foods Private Limited 35.00% 19-Jun-14

JV in Sri Lanka 50.01% 19-May-14

Amar Chitra Katha Private Limited 9.14 5.87% 10-Dec-13

Future Agrovet 100.00% 25-Nov-13

KFC Shoemaker Private Limited 33.30% 26-Apr-13

http://economictimes.indiatimes.com/topic/Investments



This suggests Capital Foods was valued at ~Rs 400 crore.

At 2.5x sales, did FCEL sell its stake cheap?

Capital Foods FY12 FY13

Sales 123.2 145.0

PBT 14.6 16.0

Equity Invested 106 106

For FY13, Capital Foods reported a consolidated turnover of Rs 145 crore

and an operating profit/EBITDA of Rs 16 crore, showing growth of 17% and

8% respectively over the previous year.

Given the above numbers, it seems Capital Foods was valued at around

2.5x sales, assuming 20% revenue growth and therefore revenue of ~Rs

160crore by the time the stake was sold.

Capital Foods, would continue to hold 26 per cent stake in the Future

Group-owned food park at Tumkur near Bangalore.



FCEL VALUATION

A very rough sum of parts calculation

Here we have tried to put together available financial information for various businesses, and then give a valuation number to it.

An upper end valuation of FCEL should be around Rs 1100 crore; lower end could be ~Rs 900 crore

Entity/Segment Value (Rs Cr) Rationale

Stand alone 680 2x sales

Aadhaar 70 0.5x sales

ERSPL 50 0.5x sales

ACK 55 1x sales

Others 250

Estimated Fair Value 1105

Market Cap 1564

Difference -29.3%

This we believe is the upper end valuation. A more conservative number could be Rs 200 crore less, the drop coming largely from the standalone entity.

The sections below give an explanation of the various segments.

Stand alone business

Standalone entity started showing operating revenue from FY13. These are revenues from FCEL, earlier a subsidiary of FVL. KB’ Fair Price also appears to be part of the parent company

Till FY12, the stand alone business was zero. In FY 13 and FY14, the standalone entity also shows operating revenue.

From what we can figure out, the stand alone revenue is the revenue of two subsidiaries of erstwhile FVL: Future Consumer Enterprises Limited and Future Consumer Products, which has rights to the Sach brand..

FCEL was earlier a 100% subsidiary of FVL, in which the investment stood at Rs 160 crore as on Mar’12. Since this business was amalgamated in the main entity in FY13, which was renamed FCEL itself, FY13 AR shows only a Rs 2 crore investment in FCEL. Moreover, the subsidiary FCEL was renamed Future Food and Products Limited, allowing the listed parent to carry the FCEL name.

FCEL owns exclusive right to sell and distribute various food and FMCG products under the various brands Tasty Treat, Fresh & Pure, Clean Mate, Care Mate, Premium Harvest, SACH, Disney, Ektaa.

50% of Big Apple stores closed down within 12 months

While it is not clearly mentioned anywhere, we think it also operates convenience stores under the brand KB's Fair Price. During FY13, the Company acquired convenience store chain KB’s Fair Price from Future Value Retail Limited. It had 100 stores in Sep’12, when ERPSL was acquired. ERPSL had 65 stores at that point.



As on Mar’13, the store count of KB’s Fair Price was 193. It is not clear if this included Big Apple stores, or this was just KB’s.

As on Dec’13, there were 176 KB’s Fair price stores. Kishore Biyani, in an interview in Dec’13 said “In the last six months, we have also closed down 30-35 unprofitable stores. These were mainly the stores that were acquired from Big Apple.”

This implies around 50% of Big Apple stores were closed down.

Valuing the stand alone business

Valuation benchmarks

EV/ Sales

EV/ EBITDA

Personal care 3-5x 25x

Food 2-3x 20x

Retail 0.5-1x 10x

Financials of the standalone entity not reported properly as part of quarterly result declaration. FCEL has reported only sales and EBITDA for FY14. Full stand alone results are not there.

Standalone FY13 FY14

Sales 303.7 342.8

EBITDA 6.7 30.0*

Capital Employed 421.5 n.a

The consolidated numbers have reported other income of Rs 114 crore. This should come in standalone also. If we exclude this, EBITDA could well be ~Rs -70 crore.

Valuing at Rs 680 crore based on 2x sales Looking at valuation of food companies, we believe the best case scenario can be 2x sales which lead to a EV (=Market cap, since debt is zero) of Rs 680 crore.

A hardnosed approach can mean lower valuation than this (1.5x sales = Rs 500 crore), based on:

o FY14 EBITDA (excl other income) is most likely a negative number (~Rs - 70 crore). So the operations may not be profitable. Where has this loss come from, given that FY13 EBITDA was positive? We think the contributor could be KB’s Fair Price.

o It is not clear how much of the revenue is brands, and how much is retail revenue from KB’s Fair Price.

o The brands are instore brands, there is zero customer recall of FCEL’s brands. For FY13, advertising and promotion expense was Rs 3.1crore, or just under 1% of sales. We suspect this may more free samples. To give valuations close to a branded food company like say a Britannia is a bit of a stretch.

Aadhaar Wholesale Trading and Distribution Limited

From a retailing business, to wholesale (cash and carry). CoCo retail outlets reduced from 35 in FY12 to 16 by Mar’13

This company was called Aadhaar Retailing till FY13, it was renamed on 4 April 2013. It was acquired from Godrej Agrovet in 2008 (which holds 30%), where it was a rural retailing business. As on Mar’12, it Aadhaar

operated 35 other retail outlets in Punjab, Haryana and Gujarat.

In FY12, Aadhaar changed focus to wholesale trading. The first wholesale market came up in Kalol, Gujarat in FY12.

Each CNC point to cater to up to 100 franchisee retail points. There were only 2 CNCs as on Mar’13, catering to 30 franchisee outlets

The FY13 annual report says: The Company is focusing on the two regions with high rural income, Gujarat and Punjab& Haryana, for the growth of this network. By March’13, there was addition of only one more CNC store, this was one in Barnala, Punjab. These 10,000 square feet stores offer around 1000 SKUs in staples, food and grocery, consumer goods and

100

193 176

Sep'12 Mar'13 Dec'13

KB+Big Apple Store Count



general merchandise and serve small rural retailers in the 50 kilometers radius. These 2 CNCs catered to 30 Aadhaar franchisee owners.

The company owned retail stores seemed to have reduced to 16 by March’13.

Valuing Aadhaar

Aadhaar’s best case value can be Rs 100 crore, at 0.5x sales. FCEL’s stake is 70%

After having been in the Future fold since 2008, Aadhaar continues to struggle.

Aadhaar FY12 FY13

Sales 94 138

PBT -25 -22


The business can at best get an EV/Sales of 0.5x. Assuming current revenue run rate of Rs 200cr/annum, that gives us a EV of Rs 100 crore. (this is also the market value, assuming zero debt). FCEL’s stake is 70%, hence value of its stake comes to Rs 70 crore.

Express Retail Service Pvt Ltd (Big Apple)

ERPSL was acquired 100% in Sep’12 for Rs 62 crore. ERSPL was selling groceries and food products through general convenience store under the brand 'Big Apple' in the National Capital Region for the last six years. Big Apple had 65 outlets in Sep’12.

According to an interview given by Kishore Biyani in Dec’13, around 50% of the stores of Big Apple were closed down. Its financials as on Mar’13 are as follows:

Valuing ERSPL

At 0.5x sales, value comes to Rs 50 crore

ERSPL FY12 FY13

Sales

113.8

PBT

-15.2

Equity Invested 62

Reserves and Surplus figure for ERSPL was Rs – 87 crore on Mar’13, indicating it has been making losses for several years.

We can give it a value of 0.5x sales. Taking FY14 sales as Rs 100 crore, the value comes to Rs 50 crore. (if half the stores were closed, actual sales could be down even more).

Amar Chitra Katha

FCEL has 74% stake in ACK. As on Mar’13, FCEL had an investment of Rs 82 crore for 68.12% stake. This implies an average valuation of Rs 122 crore for its stake. In Dec’13, FCEL put in another Rs 9.14 crore for a further 5.87% stake. This implies a post money valuation of Rs 155 crore.

Valuing ACK

We believe this is a lemon, it will continue to suck in money, and struggle to justify its valuation. The historical brands of ACK have little value, since



ACK will continue to lose money. 1x sales or Rs 75 crore is a generous valuation for ACK

the content is generic, and consumers have moved away. Its distribution business IBH has always lost money, and there is clear path to turnaround.

ACK FY12 FY13

Sales 69.7 76.8

PBT -8.6 -11.9


Giving it a value of 1x sales we get a valuation of Rs 75 crore for the company. Since FCEL owns 74% of ACK, the value of its stake becomes Rs 55 crore, implying value destruction here.

Other investments – at Cost

FCEL has several other investments. Of these, Star and Sitara Wellness was there in FY13. FCEL’s stake is 100% here for Rs 18 crore.

After Mar’13, the company has made several deals.

Valuing other businesses at cost, or around Rs 250 crore

These are

Amount Stake When

Integrated Food Park Pvt Ltd 73.89% 19-May-14

Sarjena Foods Pvt Ltd 35.00% 19-Jun-14

JV in Sri Lanka 50.01% 19-May-14

Amar Chitra Katha Pvt Ltd 9.14 5.87% 10-Dec-13

Future Agrovet 100.00% 25-Nov-13

KFC Shoemaker Pvt Ltd 33.30% 26-Apr-13

Deal values here were not revealed. We believe these can be at best valued at cost. As on 31 march 2013, cash and cash equivalent appeared to be ~Rs 250 crore. Assuming this was the cash deployed to make these investments, that’s the value we can place on these businesses.

INFO ON LATEST INVESTMENTS

Future Agrovet

FCEL acquired this company from Future Retail which held 96% in this company.

FAL is engaged in procuring, processing and supplying agricultural commodities in loose and packaged form under various private brands in addition to dealing to other branded/ non-branded products. It supplies to various formats such as Food Bazaar, KBs Fair Price, Big Apple, Aadhaar, etc., besides other institutional and general trade clientele. It has about 48 distribution centres at 32 locations across 16 states.

The sales turnover of FAL, for the financial year 2012-13 was Rs 1,014.67 crore with Ebidta of Rs 15.25 crore.

FAL comes with a revenue > Rs 1000 crore, but makes negligible profit on it.

FAL appears to be an internal servicing arm of Future Retail, now owned by FCEL. While it appears large in revenue size, its EBITDA margin is miniscule at 1.5%. This is typical of Future Group, where its service arms like Future Logistics, while made into independent companies, supply almost at cost to Future Group.



Integrated Food Park Pvt Ltd

Rs 144 crore project, Rs 50 crore government grant

This is over a 100 acre plot near Bangalore. The project cost appears to Rs 144 crore, according to a Mofpi document. Like other mega food park projects, there is a government grant of Rs 50 crore. Future Group thus needs to organise Rs 94 crore. In this park, Capital Foods will hold a stake of 26%, hence FCEL’s commitment will less to that extent.

A media article in July’14 quoted Biyani saying Future Group has invested Rs 300 crore in this project.

We are not clear why FCEL should be getting into this project, perhaps the government grant etc make it attractive as a supply chain base.

More food park investments coming? Reports of FCEL’s interest in a Rs 600 crore project in West Bengal

There are several media reports of Future Group’s food park plans in other states. For ex, an article of Jun’14 says: Future Group intends to set up a food processing park in Kharagpur, West Bengal, which will entail an investment of Rs 600 crore. The food park will be spread across 60 acre and will come up at Vidyasagar Industrial Park, in Kharagpur. About Rs 150 crore will be invested by the Future group and the company will mobilise the balance Rs 450 crore from other investors. The group will build collection points across the state to collect farm produce for its proposed unit.



FCEL’S POSITION WITHIN THE FUTURE GROUP

The group has 3 listed companies now, FCEL is the smallest

FCEL is the smallest of the 3, and the most unstable business model

After the last round of reorganisation in FY13, there are now 3 listed companies from Future Group

1. Future Retail 2. Future Lifestyle and Fashion 3. FCEL

(Rs crore)

FCEL had zero net debt till Mar’14. We think this will change in FY15

On the positive side, FCEL is zero debt, and with cash on the balance sheet of Rs 138 crore and debt of Rs 109 crore as on 31 Mar’14. However, given the aggressive investment streak to continue to show combined with cash losses, we think the period of zero net debt is behind FCEL.

(Rs cr) Sales EBITDA Dep Int Other Inc PBT PAT Networth Total Debt

Future Retail 13654.8 943.6 451.9 726.0 307.5 99.2 94.8 3261.1 4309.8

Future Lifestyle Fashion 2744.0 256.3 385.2 163.0 331.7 34.2 23.3 1291.3 1264

Future Consumer Enterprise 822.6 -85.6 39.3 5.2 114.2 -15.9 -15.3 805.7 109.5

Market Cap EV P/EEV/EBITDA EV/Sales D/E

Future Retail 3069 7378.8 32.4 7.8 0.5 1.3

Future Lifestyle Fashion 1619 2883.0 69.5 11.2 1.1 1.0

Future Consumer Enterprise 1566 1675.5 2.0 0.1



FINANCIAL DETAILS Consolidated P&L

FY10 FY11 FY12 FY13 FY14

Net Sales 157.8 547.2 858.3 959.3 822.6

Material Cost 116 357.7 588.7 675.2 720.1

Gross Profit 41.8 189.5 269.6 284.1 102.5

Gross Margin 26.5% 34.6% 31.4% 29.6% 12.5%

EBIDT (Excl OI) -23.6 14.9 19.4 -18.5 -85.6

EBIDT Margin -15.0% 2.7% 2.3% -1.9% -10.4%

Other Income 23.6 2.1 2.2 0.9 114.2

Operating Profit -0.1 17 21.6 -17.6 28.6

Interest 10.7 23.9 21.9 16.9 5.2

Depreciation 8.6 25.3 23 37.3 39.3 PBT before Exceptional Items -19.4 -32.2 -23.4 -71.7 -15.9 Exceptional Income / Expenses 0 -4.5 -33.2 0 0

Profit Before Tax -19.4 -36.7 -56.6 -71.7 -15.9

Provision for Tax 1.6 2.7 8.8 4.8 0

PAT -21 -39.4 -65.4 -76.6 -15.3

Consolidated Balance Sheet

FY11 FY12 FY13 FY14

Share Capital 826.2 1576.2 945.7 958.8

Total Reserve -99.4 -138.7 -129.3 -153.1

Shareholder's Funds 726.9 1437.5 829.5 805.7

Total Debts 13.0 22.3 1.4 109.5

Total Liabilities 774.6 1497.8 851.8 931.5

Tangible Assets

Gross 102.9 115.2 87.4 n.a

Net 72.5 76.5 66.1 n.a

Intangible Assets

Gross 201.2 222.7 351.6 n.a

Net 173.4 178.0 286.3 n.a

Investments 148.2 539.1 234.4 138.9

Inventories 121.3 158.5 58.9 104.5

Sundry Debtors (Debotrs) 186.8 209.0 28.5 109.5

Cash and Bank 7.3 25.4 9.0 11.0

Other Current Assets 0.4 6.7 3.3 7.5

Loans and Advances 69.2 236.4 159.4 207.5

Total Current Assets 384.9 636.0 259.1 440.0



Less : Current Liabilities and Provisions

Current Liabilities 319.4 327.3 115.3 110.0

Provisions 3.5 6.1 3.2 13.8

Total Current Liabilities 322.9 333.3 118.5 123.8

Net Current Assets 62.0 302.7 140.6 316.2

Total Assets 774.6 1497.8 851.8 931.5



KEY ANNOUNCEMENTS

19 Jun 14 Making investment in Sarjena Foods Private Limited, by way of

acquisition of 35% stake in the Company, Sarjena Foods Private Limited is

engaged in the business of manufacturing and distribution of branded

bakery products under the name and style ‘Baker Street’.

19 May 14 Future Consumer Enterprise Ltd has informed BSE that the Committee of

Directors of the Company has at their meeting held on May 19, 2014, inter

alia, considered/ approved acquiring 50.01% in a Joint Venture for setting

up facility to manufacture Oats and other breakfast cereals in Sri Lanka.

Investment in Integrated Food Park Private Limited for acquisition of

73.89% stake in the Company, which is setting up a Food Park admeasuring

about 110 acres at Tumkur, Karnataka.

9 Dec 13 Future Consumer Enterprise Ltd has informed BSE that the Company has

entered into definitive arrangement to sell its entire investment in Capital

Foods Private Limited (earlier known as Capital Foods Exportts Private

Limited) on terms and conditions mentioned thereunder.

24 Sep 13 Future Ventures India Ltd has informed BSE that the Members of the

Company have at the 17th Annual General Meeting held on September 23,

2013, subject to such compliances as may be required, approved with

requisite majority, change in name of the Company from "Future

Ventures India Limited" to "Future Consumer Enterprises Limited" or

such other name that may be allowed by the Registrar of Companies,

Maharashtra, Mumbai, in terms of the resolution passed thereat.

30 May 13 In view of the Composite Scheme of Arrangement and Amalgamation

coming into effect pursuant to the re-structuring of the business of the

Company, to intimate Reserve Bank of India about the same and

consequently to comply with the process of de-registration as a Non-

Banking Financial Company in the manner as may be required.

4 Apr 13 Future Ventures India Ltd has informed BSE that name of Company’s

subsidiary-Aadhaar Retailing Limited has been changed to 'Aadhaar

Wholesale Trading and Distribution Limited’ vide fresh certificate of

incorporation issued by the Registrar of Companies, Mumbai dated April

03, 2013.



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