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    • 1. S.Kumars Nationwide Limited Management Presentation September 2008
    • 2. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Team Introduction Name Experience Nitin Kasliwal  Over 30 years of experience in textile industry Vice Chairman and MD  Chairman of Madhya Pradesh Textile Mills Association  Member of managing committee of Indian Cotton Mills Federation, Indian Woolen Mills Federation, World Trade Centre, India  MBA in International Management from Switzerland Anil Channa  Over 35 years of very senior level textile industry management experience Dy. Managing Director & COO  Over 20 years as business head of large textile operations  MBA from Delhi University, FMS and Engineer from IIT Delhi Anees Fazalbhoy  Managed own business with activities in India, Canada & Middle East for over Business Strategy, M&A and Investor 25 years Relations  MBA in International Management from Switzerland Jagadeesh Shetty  Over 20 years of senior level experience in finance and accounts primarily in CFO textile industry  Member of the Institute of Chartered Accountants of India Clothiers to the Nation Today 2 …the World Tomorrow
    • 3. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights Clothiers to the Nation Today 3 …the World Tomorrow
    • 4. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights 1 SKNL Overview 2 4 Pillars– Brands, Professional Management, Distribution, Manufacturing 3 Transaction Update 4 Future Growth – Building Scale Organically and Inorganically 5 Strong Financials 6 India – A Large Growing Market Opportunity 7 Brandhouse Retail – SKNL Group’s Initiative 8 Reid & Taylor – SKNL Group Initiative Clothiers to the Nation Today 4 …the World Tomorrow
    • 5. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Structure Structure SKNL Group Reid & Tay lo r Bra ndho use S KNL ( India) L imit ed Ret ail Lim ited Total Futu re Ho me Con sumer Luxur y Wa rdro be HVF C Garme nts E BU JV Value SBUs Textiles Text iles T xtile s e So lu tions Clothiers to the Nation Today Clothiers to the Nation Today 5 …the World Tomorrow …the World Tomorrow
    • 6. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Company Overview – Strength through Diversity  The only company in India to operate across all 3 segments of the industry – Fabrics - Apparels - Home Textiles  Branded presence in all socio-economic segments  Operates in all fibre segments 2007–2008 Market Cap: Sales US$413.9mm PBIDT US$95.0mm Luxury Textiles Consumer Textiles HVFC Home Textiles (THE) Ready to Wear (TWS)  Reid & Taylor  S.Kumars  100% Natural Fiber  Benetton*  Stephens Brothers Luxury Suitings Work Wear Shirtings Super Premium Super Premium  Reid & Taylor  Belmonte  Balmoral*  Carmichael House Premium Natural Daily Wear Premium Premium Fiber Suitings  Reid & Taylor  Michaelangelo  New Brand** Ready to wear Premium Wear Mid-Premium Premium  Uniformity  Belmonte Uniform fabrics Mid-Premium *Being launched shortly *Being launched by end of **To be launched 2008 Sales: US$95.3mm Sales: US$210.6mm Sales: US$68.5mm Sales: US$39.5mm PBIDT: US$38.2mm PBIDT: US$35.3mm PBIDT: US$13.4mm PBIDT: US$8.2mm Under PBIDT Margin: 40.0% PBIDT Margin: 16.8% PBIDT Margin: 19.5% PBIDT Margin: 20.7% implementation Contribution Contribution Contribution Contribution Sales: 23% Sales: 51% Sales: 17% Sales: 10% Clothiers to the Nation Today 6 …the World Tomorrow
    • 7. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Presence in all Socio-Economic Segments Present across all categories and in all socio-economic segments LUXURY (To be launched) PREMIUM PREMIUM PLUS Stephens Brothers Reid & Taylor PREMIUM Reid & Taylor MID PRICE MID PRICE World Player Belmonte Belmonte ECONOMY (To be launched) ECONOMY S.Kumars Un-branded Not Catered to by SKNL Un-branded Not Catered to by SKNL READY TO WEAR LUXURY FABRIC International brand (On the anvil) MID PRICE Carmichael House ECONOMY (To be launched) Not Catered to by SKNL Un-branded HOME TEXTILES Clothiers to the Nation Today 7 …the World Tomorrow
    • 8. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt … & has become a Clothier to the Nation Clothiers to the Nation Today 8 …the World Tomorrow
    • 9. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights 1 SKNL Overview 2 4 Pillars– Brands, Professional Management, Distribution, Manufacturing 3 Transaction Update 4 Future Growth – Building Scale Organically and Inorganically 5 Strong Financials 6 India – A Large Growing Market Opportunity 7 Brandhouse Retail – SKNL Group’s Initiative 8 Reid & Taylor – SKNL Group Initiative Clothiers to the Nation Today 9 …the World Tomorrow
    • 10. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Well Established Brands  Diversified portfolio of well recognised brands  Strength through Celebrity endorsements  Pan India advertising campaign using different media in different languages Brand Products Achievements - Worsted fabrics #2 in Luxury - Ready-to-wear Suitings(18% share) - Blended fabrics Market leader in - Workwear uniforms (30% share) - Ready-to-wear - School Uniform - Bed Linen & Bath Linen Pioneering Total Home - Table & Kitchen Linen Expressions in India - Ready-to-wear for men and Reinventing a brand womens with British heritage for India Clothiers to the Nation Today 10 …the World Tomorrow
    • 11. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Strong Brand Visibility • Contemporary in Design and customer friendly Stores Clothiers to the Nation Today 11 …the World Tomorrow
    • 12. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Professional Management Board of Directors Nitin Kasliwal Managing Director & CEO Anil Channa CORPORATE Dy. Managing Director & COO FUNCTIONS STRATEGIC BUSINESS UNITS (SBUs) D.D. Avari Corp. Affairs LUXURY CONSUMER HIGH VALUE TOTAL HOME READY-TO- INTERNATIONAL SUITINGS TEXTILES FINE COTTONS EXPRESSIONS WEAR (TWS) BUSINESS Anees Fazalbhoy Business Strategy Arvind Gupta Rajan K. Garg Martin Haemmerle Dinesh Sharma Janak Dave Vijay Bakshi COO COO CEO CEO COO President Anupam Dikshit Col. S. K. Raje COO Group Admin & HRD J. S.Shetty CFO Shrikant Hazare Head - Marcom Each SBU headed by a segment specialist Nimesh Shah Company Secretary Clothiers to the Nation Today 12 …the World Tomorrow
    • 13. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Distribution Strategy Luxury Textiles Consumer Textiles HVFC Home Textiles (THE) Ready to Wear (TWS)  Reid & Taylor  S.Kumars  100% Natural Fiber  Benetton*  Stephens Brothers Luxury Suitings Work Wear Shirtings Super Premium Super Premium  Reid & Taylor  Belmonte  Balmoral  Carmichael House Premium Natural Daily Wear Premium Premium Fiber Suitings  Reid & Taylor  Michaelangelo  New Brand** Ready to wear Premium Premium Wear Mid-Premium  Belmonte  Uniformity Mid-Premium Uniform fabrics Multi Brand Large Format Institutional Export Exclusive Brand Outlets Stores Sales Sales Outlets 66% 6% 15% 3% 10% 60 Agents Company owned stores for 400 SKNL Brands Wholesale Company Franchisee dealers Operated Model Master Franchisee for BRANDHOUSE SKNL Brands RETAILS LTD. 30,000 Retailers India Franchisee for International Brands Clothiers to the Nation Today 13 …the World Tomorrow
    • 14. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt State of the Art Manufacturing Facilities 5 state-of-the-art plants manufacturing products to the highest quality standards Plant Products Manufactured Reid & Taylor Worsted Suiting Unit, Worsted Suiting Mysore S.Kumars & Belmonte Fabric Unit, Fabrics (Polyester & Polyester Viscose) Dewas Polyester Blended Yarn, Grey Fabrics Home Textile and Medium Value Cotton (PV, PC, 100% Cotton), Medium Value Mills (Chamunda Standard) Dewas Cotton Home Textiles Unit, Dewas Damask Fabric Garments Unit, Bangalore Shirts, Trousers, Blazers & Suits New Facilities under Construction in Home Textiles and High Value Cotton Gujarat Shirting Clothiers to the Nation Today 14 …the World Tomorrow
    • 15. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights 1 SKNL Overview 2 4 Pillars– Brands, Professional Management, Distribution, Manufacturing 3 Transaction Update 4 Future Growth – Building Scale Organically and Inorganically 5 Strong Financials 6 India – A Large Growing Market Opportunity 7 Brandhouse Retail – SKNL Group’s Initiative 8 Reid & Taylor – SKNL Group Initiative Clothiers to the Nation Today 15 …the World Tomorrow
    • 16. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt GIC investment in R&T  GIC values R&T at US$840mm post money  GIC invests US$211mm in the form of shares and warrants for 25.4% stake  Post transaction, SKNL owns 74.6% in R&T  Pure Equity transaction with no conditions attached Clothiers to the Nation Today 16 …the World Tomorrow
    • 17. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt GIC investment in Reid & Taylor  Post transaction, SKNL & Reid & Taylor retire over $ 170 Mn debt  Company emerges stronger financially and has greater operating flexibility Structure Key Transaction Details Pre Transaction SKNL  100% subsidiary  Transfer of assets at book value as a going concern with effect from January 1, 2008 Reid & Taylor  Working capital facilities of US$25mm apportioned to Transfer Funds to R&T fabric & garments of Assets/ repay business spun-off as Liabilities lenders  Debts amounting to US$62.5mm relative to transferred 100% subsidiary assets moved to R&T for settlement Post Transaction  GIC values R&T at US$840mm post money R&T  GIC invests US$211mm in the form of shares and warrants for 25.4% stake  Post transaction, SKNL owns 74.6% in R&T US$ 210 mm 25.4% Source of Funds Use of Funds GIC US$211mm Loan to SKNL to repay debt US$110mm GIC Capacity Expansion US$37.5mm Payment of debt in R&T US$62.5mm Total US$211mm Total US$211mm Clothiers to the Nation Today 17 …the World Tomorrow
    • 18. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights 1 SKNL Overview 2 4 Pillars– Brands, Professional Management, Distribution, Manufacturing 3 Transaction Update 4 Future Growth – Building Scale Organically and Inorganically 5 Strong Financials 6 India – A Large Growing Market Opportunity 7 Brandhouse Retail – SKNL Group’s Initiative 8 Reid & Taylor – SKNL Group Initiative Clothiers to the Nation Today 18 …the World Tomorrow
    • 19. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Growth Initiatives - Organic Growth Initiatives Across Different Segments Segment Initiative Capacity expansion from 8.4mm meters to 13.2mm meters by FY10 to cater to expanding Luxury Textiles domestic and international markets Creating value addition in existing business by introducing premium blended suiting and adding Consumer Textiles capacities for weaving and processing of high value fabrics Ready-to-Wear (TWS) Adding manufacturing facilities to complement distribution as well as adding new brands Capacity expansion , modernization and technology upgradation to cater to high demand in the Home Textiles (THE) post quota regime Setting up capacity to cater to the high margin, high growth segment in the international as well High Value Fine Cottons (HVFC) as domestic markets Total Investment in Growth Initiatives Segment US$mm Luxury Textiles 37.7 Consumer Textiles 37.7 Total Wardrobe solutions 16.6 Home Textiles 52.5 HVFC Project 58.8 Total 203.1 Two new SBU’s are being added – Technical Textiles and Uniserve Clothiers to the Nation Today 19 …the World Tomorrow
    • 20. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Luxury Textiles Capacity expansion from 8.4mm meters and to 13.2mm meters by FY10 to cater to expanding domestic and international markets Sales Growth Strategy 140 128  Domestic: – Expanding market reach by using lower price range and 120 introducing V Fabrics 95 100 – Increase retail reach by opening exclusive stores and shop- US$ mm 80 66 in-shop programs 56  International 60 – Increasing export thrust in North America, Japan, West 40 Asia, Europe and Middle East 20 – Leverage global strength of R&T to access leading brand and latest technology - FY06A FY07A FY08A FY09E EBITDA Margins Investment Plan  Expansion from 8.4mm to 13.2mm meters by FY10 40% 40.0% 40.6%  Total investment is projected to be US$37.7mm 39.0% 35% 33.2% 30% FY06A FY07A FY08A FY09E Clothiers to the Nation Today 20 …the World Tomorrow
    • 21. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Total Wardrobe Solutions Adding manufacturing facilities to complement distribution as well as adding new brands Sales Growth Strategy 85  Domestic 80 – Expanding Reid & Taylor garments to multi brand outlets – Rejuvenating Tamarind through effective supply chain & 60 US$ mm 39 distribution 40 28 – Introducing International Labels in Luxury & Super Premium segments 20 5 – Introducing Balmoral - – Introducing Premium Casual Brand FY06A FY07A FY08A FY09E – Introducing Reid & Taylor Range for Women  Exports EBITDA margins – Catering to growing demand from Reid & Taylor Scotland customers – Export own brands to Middle East & South East Asia 25% – New manufacturing contracts with international brands 20% 20.7% 15% 16.2% 18.6% LUXURY 10% (To be launched) 7.5% SUPER PREMIUM 5% Stephens Brothers 0% PREMIUM Reid & Taylor; Balmoral (To be launched) FY06A FY07A FY08A FY09E MID PREMIUM Belmont Investment Plan ECONOMY S.Kumars and World Player Total Investment – US$mm 16.6 Clothiers to the Nation Today 21 …the World Tomorrow
    • 22. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Consumer Textiles Creating value addition in existing business by introducing premium blended suiting and adding capacities for weaving and processing of high value fabrics Sales Growth Investment Plan 304 300 250 211 US$mm Total 200 Total Investment US$mm 139 150 37.7 150 100 FY06A FY07A FY08A FY09E EBITDA margins Growth Strategy Increasing operating margins due to 18% 17.7%  Orientation towards Institutional, Medallion, Uniserve 16% 16.8% and Retail market segments 15% 14.8%  Considerable shift in the industry towards branded fabrics 13%  Shift in product mix in favour of high margin P/V designer 11.8% suitings and launch of Belmont brand 12% 10%  Improving Customer Serviceability by enhancing in-house finishing capacity FY06A FY07A FY08A FY09E  Upgradation of weaving capacity to cater for more innovative product. Clothiers to the Nation Today 22 …the World Tomorrow
    • 23. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Home Textiles Capacity expansion, modernization and technology upgradation to cater to high demand in the post quota regime Sales Growth Investment Plan 100 90 80 68 Total 60 47 US$mm Total Investment US$mm 52.5 40 20 11 - FY06A FY07A FY08A FY09E EBITDA Margins Growth Initiatives  Expanding capacities to 28mm meters 23% 21.6%  Increasing sales due to : 18% 19.5% – Exploring new markets (Domestic & Exports) 13% 13.1% – Launch of new brands catering to – Higher disposable incomes 8% – Growing consumerism 5.3% 3% – Introducing special finish fabrics – Diversifying product mix to “Top of Bed” decorative items FY06A FY07A FY08A FY09E Clothiers to the Nation Today 23 …the World Tomorrow
    • 24. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt High Value Cotton Fabric Set to enter High Value Cotton Fabrics to cater to large, high margin, high growth segment in the International as well as domestic markets Sales Growth Investment Plan 75 58 60 36 Total US$mm 45 Total Investment – US$ mm 58.8 30 15 - FY08A FY09E FY10E EBITDA Margin Growth Strategy  Setting up weaving & processing facilities of 12.75mm meters 40%  Domestic 37.7% – Fabricators making shirts for international brands 38% 36.7% – Indian brands offering premium shirts to Indian customers  International 37% – Global market for HVFC shirting approx 550 – 600mm meters – Primarily European manufacturers 35% – SKNL to offer quality & cost benefits – European Know-how & expertise FY09E FY10E – Indian manufacturing advantage – Access to global customers through – Reid & Taylor, Scotland & International labels coming to India through SKNL Clothiers to the Nation Today 24 …the World Tomorrow
    • 25. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Growth Summary Sales Growth Drivers 700 642 600 36  Reid & Taylor Scotland helps SKNL to access its clients - leading 414 90 international brands 500 85 US$ mm 292  Strategic initiatives, modernization and capacity expansion to 400 68 211 128 help capitalize on favorable international environment 300 47 39 11 28 95  Building Infrastructure to tap export opportunities in international 200 5 66 304 markets 56 211 100 139 150  Leveraging strong brand equity -  Focus on domestic high growth retail sector FY06A FY07A FY08A FY09E Consumer Textiles Luxury Textiles TWS  Launching new Garment brands to increase market share Home Textiles HVFC  Introducing new product lines  Diversifying into Technical Textiles Projected CAGR FY07-FY09E  Moving up the value chain to improve margins – Launching (HVFC) Shirting 75% 62% 60% 48% 49% 45% 30% 15% 0% Sales PBIDT EPS Clothiers to the Nation Today 25 …the World Tomorrow
    • 26. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Growth Initiatives - Inorganic Potential Overseas Acquisitions Business Target Segment Target Overview Synergy benefits  To Identify and acquire a leading shirt  SKNL gets access to leading international Brands, fabric manufacturer in the premium addressing the premium market segment supplying to leading shirt brands  Through supplying HVFC requirement for the Target 1 HVFC target  Move up the value chain therefore access to better brands leading to better realisations resulting in higher margins Though we got Shareholders approval to invest up to USD 500 Million for overseas acquisition, But we plan to invest USD 75 Million, as of now. This money will be raised through internal accruals Clothiers to the Nation Today 26 …the World Tomorrow
    • 27. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL in FY09 Sales US$641.9mm PBIDT US$154.1mm Luxury Textiles Consumer Textiles HVFC Home Textiles Ready-to-wear  Reid & Taylor  S.Kumars  Shirting  Benetton  Stephens Brothers Worsted Suitings  Belmonte  Carmichael House  Reid & Taylor  Reid & Taylor  Michelangelo  Mid-Premium Brand  Balmoral Premium Natural Fiber Suitings  Uniformity  Belmonte  S.Kumars  World Player Sales: US$127.8mm Sales: US$303.7mm Sales: US$36.1mm Sales: US$89.7mm Sales: US$84.7mm PBIDT: US$51.8mm PBIDT: US$53.8mm PBIDT: US$13.3mm PBIDT: US$19.4mm PBIDT: US$ 15.8mm PBIDT margin: 40.6% PBIDT margin: 17.7% PBIDT margin: 36.7% PBIDT margin: 21.6% PBIDT margin: 18.6% Contribution to Sales Contribution to Sales Contribution to Sales Contribution to Sales Contribution to Sales 19.9% 47.3% 5.6% 14.0% 13.2% Clothiers to the Nation Today 27 …the World Tomorrow
    • 28. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights 1 SKNL Overview 2 4 Pillars– Brands, Professional Management, Distribution, Manufacturing 3 Transaction Update 4 Future Growth – Building Scale Organically and Inorganically 5 Strong Financials 6 India – A Large Growing Market Opportunity 7 Brandhouse Retail – SKNL Group’s Initiative 8 Reid & Taylor – SKNL Group Initiative Clothiers to the Nation Today 28 …the World Tomorrow
    • 29. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt On a High Growth path Revenues EBITDA 700 642 175 154.1 600 CAGR: 44.9% 150 CAGR: 62.6% 500 414 125 US$ mm US$ mm 95.0 400 100 292 300 211 75 58.9 200 50 35.9 100 25 - - FY06A FY07A FY08A FY09E FY06A FY07A FY08A FY09E Net Income* Gross COGS/Revenue 74.7 100% 75 74.4% CAGR: 53.3% 80% 68.5% 67.1% 60 48.4 63.9% US$ mm 45 60% 25.3 40% 30 20.7 15 20% - 0% FY06A FY07A FY08A FY09E FY06A FY07A FY08A FY09E * Tax is not deferred tax Clothiers to the Nation Today 29 …the World Tomorrow
    • 30. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Increasing Profitability Profitability ROCE 30% 23.0% 24.0% 25% 25% 20.2% 17.0% 20% 20% 12.8% 15% 16.8% 18.8% 15% 11.7% 9.8% 8.7% 12.3% 10% 10% 9.0% 5% 5% FY06A FY07A FY08A FY09E 0% PBIDT Margins Net Margins FY06A FY07A FY08A FY09E EPS (Before Extraordinary Items) Debt - Equity Ratio 0.30 497 2.0 500 1.89 1.73 0.25 0.29 400 1.5 0.20 1.1 0.20 300 US$/Share 0.9 1.0 0.15 210 200 180 0.69 0.13 160 225 0.10 122 0.5 100 0.2 0.05 0.07 - - 0.00 FY07A FY08A FY09E FY06A FY07A FY08A FY09E Long term Debt Shareholder's Fund DER TOL/TONW Clothiers to the Nation Today 30 …the World Tomorrow
    • 31. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Shareholding Pattern Indian Institutions, Banks, Mutual Funds & Retail, 12.00% Promoters & Group Companies, 48.00% Foreign Institutional Investors, 40.00% Promoters acquired additional 10 mn shares through creeping acquisition (average price Rs 115 per share) – March 08 Clothiers to the Nation Today 31 …the World Tomorrow
    • 32. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights 1 SKNL Overview 2 4 Pillars– Brands, Professional Management, Distribution, Manufacturing 3 Transaction Update 4 Future Growth – Building Scale Organically and Inorganically 5 Strong Financials 6 India – A Large Growing Market Opportunity 7 Brandhouse Retail – SKNL Group’s Initiative 8 Reid & Taylor – SKNL Group Initiative Clothiers to the Nation Today 32 …the World Tomorrow
    • 33. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt India—A Growing Market Purchasing Power Explosion Favorable Demographic Individuals in Urban India with an MHI of US$235+ Working Age Population as % of Total Population (Age 15–60) 19 20 75 CAGR: 21.2% 15 70 15 13 11 65 (%) 10 60 6 55 5 50 2000 2005 2010 2015 2020 2025 2030 0 India Brazil China Russia G6 1997 2000 2001 2002 2003 Source: KPMG Source: Equity Research Indian Consumption Pattern Growing Middle Class Aggregate Consumption Across Income Brackets Household Income Brackets A Growing middle class whose size exceeds the US$ bn , 2000 US$ ‘000, 2000 population of the USA or the European Union 1,647 329 Globals (>23.5) Income class 1996 2002 2009(E) (US$' 000) HHs (Pop) HHs (Pop) HHs (Pop) CAGR 376 Strivers (11.8–23.5) >11.8 1.2 (7) 2.6 (15) 7.0 (40) 15% 800 Middle 94 Class 7.1-11.8 32.5 (185) 46.4 (265) 91 (425) 10% 71 612 400 Seekers (4.7–11.8) 282 212 24 24 2.4-7.1 54.1 (312.2) 74.4 (429) 85 (490) 2% 141 47 24 - 71 212 282 282 24- Aspirers (2.1–4.7) 118 118 94 71 47 <2.4 77 (444.3) 57.2 (332) 36 (177) -8% Deprived (<2.1) 1985 1995 2005E 2015F 2025F Source: McKinsey, NCAER Source: McKinsey Global Institute Note: Figures are rounded to the nearest integer and may not add up exactly to column totals Clothiers to the Nation Today 33 …the World Tomorrow
    • 34. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Indian Clothing Market Segmentation Industry Characteristics  The overall market can be divided into 3 segments – Fabric (the largest seller): is retailed over the counter as: Apparel – Custom tailoring is very inexpensive 22% – Garment industry is yet to reach maturity levels – Garments: Growth due to : – Growth in organized retailing (spreading beyond Metros) – Enhanced propensity towards fashion (international exposure) Fabric – Home Textiles –the next big growth area in India 78% – Rapid growth in disposable incomes –indulgence at home – Increased exposure –enhanced home décor etiquette Market Size: US$23.5bn – Few players in the organized segment –opportunity for growth  One of India’s most important sectors accounting for 4% of the country’s GDP  15-20% revenue growth overall for the textile industry Domestic Growth Potential  Branded apparel is the fastest growing segment domestically at 20% p.a., due to the growth in the modern retailing format 25 21  Worsted fabrics is currently a US$550mm market growing at 20-25% 20 18  Ready to wear market of US$2bn growing at 20% p.a. 15  Retail market for clothing, textile and fashion accessories has total 9 Global size US$28.5bn of which the organized sector accounts for US$5.5bn 10 6 Average: 6.8 (19%) 4 5 4 2.8 0 Developed USA Japan Developing China Pakistan India countries countries Source: KPMG Clothiers to the Nation Today 34 …the World Tomorrow
    • 35. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt International Market International Market Overview International Market Growth Opportunities  Quota restrictions & tariff barriers phased out India 3%  Significant production capacity shift to India due to China – High quality manpower, raw material and lower costs 22% – Inherent strengths in textile production  India, second largest producer of apparel and textiles after China – Only country with ability to compete with China in the ROW textile and apparel industry (USITC report) 75%  Major initiatives by Government of India (recognized as a high-growth area) – De-reservation of substantial portion of the industry – Fiscal reforms in the synthetic textiles business  India has a low contribution to a huge international underway market in the post-quota regime – Increase in investment ceilings  Developed markets looking at India as the alternative to – FDI freely allowed in the sector China for textiles & apparel imports – Technology Upgradation Fund Clothiers to the Nation Today 35 …the World Tomorrow
    • 36. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights 1 SKNL Overview 2 4 Pillars– Brands, Professional Management, Distribution, Manufacturing 3 Transaction Update 4 Future Growth – Building Scale Organically and Inorganically 5 Strong Financials 6 India – A Large Growing Market Opportunity 7 Brandhouse Retail – SKNL Group’s Initiative 8 Reid & Taylor – SKNL Group Initiative Clothiers to the Nation Today 36 …the World Tomorrow
    • 37. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Brandhouse Retail Limited - Overview  Launched as subsidiary of SKNL in 2006 History  Demerged in to a separate company in 2008  To be listed by Aug 2008 Vision and  Provide a distinct competitive edge to the brands by creating an International Retail Experience for Mission addressing the booming Indian consumerism Company  Involved in setting up and managing Mono Brand outlets for multiple brands across India with a special Activities focus on fashion and lifestyle Current  International luxury brands (Dunhill, Escada) Brand  International super-premium brand (Stephens Brothers) Portfolio  Indian Brands (Reid & Taylor, Carmichael House, Belmonte) Clothiers to the Nation Today 37 …the World Tomorrow
    • 38. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Brandhouse Retail – Organizational Chart Tarun Joshi Managing Director & CEO COO COO CFO Business Development Operations VP Scouting VP Projects GM GM Accounts Company GM VP VP GM VP (Real Estate) (Store IT Secretary & Commercial Operations Merch. HR Luxury Implementation) Legal Managers, Executives & Support Staff Regional managers and executives in 4 regions of India Clothiers to the Nation Today 38 …the World Tomorrow
    • 39. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Brandhouse Retail – Experiencing Rapid Growth No of Stores Revenues 900 859 254 3 250 3 CAGR: 85.5% 34 800 200 165 US$ mm 150 700 254 100 74 600 50 - No of Stores 500 398 FY08A FY09E FY10E 265 1 400 3 EBITDA Margin 19 114 15% 300 103 13% 200 12.8% 300 12.1% 10% 100 9.7% 158 8% - FY08A FY09E 5% Reid & Taylor Belmonte Carmichael House Stephens Brothers Escada Dunhill FY08A FY09E FY10E Clothiers to the Nation Today 39 …the World Tomorrow
    • 40. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Brandhouse Retails – At a glance 2007-08 2008-09 2009-10 Audited Projected Projected Nos of Stores 398 859 1207 Revenues (USD Mn.) 73.4 163.2 251.6 EBIDTA (USD Mn.) 7.1 19.9 32.5 EBIDTA % 9.7% 12.2% 12.9% PBT (USD Mn.) 5.3 11.9 19.1 PBT % 7.2% 7.3% 7.6% PAT (USD Mn.) 3.1 7.8 12.6 PAT % 4.2% 4.8% 5.0% EPS * (USD) 0.06 0.15 0.24 * Earning Per Share : EPS is computed based on existing nos of shares. Clothiers to the Nation Today …the World Tomorrow
    • 41. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights 1 SKNL Overview 2 4 Pillars– Brands, Professional Management, Distribution, Manufacturing 3 Transaction Update 4 Future Growth – Building Scale Organically and Inorganically 5 Strong Financials 6 India – A Large Growing Market Opportunity 7 Brandhouse Retail – SKNL Group’s Initiative 8 Reid & Taylor – SKNL Group Initiative Clothiers to the Nation Today 41 …the World Tomorrow
    • 42. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt Reid & Taylor (India) Company Overview Fabrics Ready-to-Wear garment FY08 Sales $95.5mm FY08 Sales $19.3mm FY08 EBITDA Margin 39.9% FY08 EBITDA Margin 25.9% x Pure wool, Poly wool, Poly viscose, pure linen, pure silk, and Ready to Wear — Formals superfine polyester x Suits (Pure wool, wool blended) Blazers, Tweed jackets, Shirts in x Wide collection of designs-500 designs with some varieties pure cotton and CVC, Trousers in Wool, Wool blended and Products having 40 shades Cotton Ready to Wear — Casuals x T-Shirts, Smart casual shirts, Polos, chinos and denims Accessories x Ties, belts, trousers, cufflinks and other accessories x Manufactured at the state-of-art mill at Mysore, Karnataka Facilities x Finished fabrics production capacity of 8.4mm mtrs p.a x Retailed through distribution channels with 110 wholesale x Retailed through 300 multi-brand outlets, 158 Reid & Taylor Distribution dealers and 11,000 retailers and 158 Reid & Taylor exclusive exclusive stores, several large format stores and retail chains stores x 7-8 players include Raymond, Reliance, Digjam, OCM, Dinesh, x Key players in the market include Madura Garments, Raymond, Competitors BSL Arvind brands, Zodiac x No.2 player with 18% market share Position Market Clothiers to the Nation Today 42 …the World Tomorrow
    • 43. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt SKNL Group Highlights Clothiers to the Nation Today 43 …the World Tomorrow
    • 44. [printed: June 30, 2008 8:03 PM] [saved: July 1, 2008 4:17 PM] S:NewDriveCompaniesIndiaS KumarsInvestor PresentationSKNL_Management Presentation_v8.ppt STRICTLY PRIVATE AND CONFIDENTIAL Important Notice By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by S.Kumars Nationwide Limited (“SKNLquot;) solely for use at a presentation. This document and its contents are confidential and may not be distributed, published, reproduced (in whole or in part) by any medium or in any form, or disclosed or made available by recipients, to any other person. Nothing in this presentation constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information, or opinions contained herein. Neither SKNL, its investment manager, nor any of SKNL's advisors or representatives shall have any responsibility or liability whatsoever (for negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The information set out herein may be subject to updating, completion, revision, verification and amendment and such information may change materially. This document does not constitute or form part of, and should not be construed as, an offer, invitation or inducement to purchase or subscribe for any securities nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. Any decision to purchase securities should not made on the basis of the information contained in this document. This document does not constitute a recommendation regarding the securities of SKNL. The information communicated in this document contains certain statements that are or may be forward looking. These statements typically contain words such as quot;expectsquot; and quot;anticipatesquot; and words of similar import. By their nature forward looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Clothiers to the Nation Today 44 …the World Tomorrow

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