Vishal Retail Ltd. Meeting Update

Vishal Retail Positive outlook on organized retail sector in India No. of stores owned, 20 franchisee stores and remaining stores on lease 139 stores in Tier III cities Average store size – sqft. Total Retail space as on date – 2.55 mln sqft Number of employees as on date

Contd… Sales per sqft – Rs. 360 per month Private Label contribution in Revenue – 60-70% Average size of footfalls – 1.8 lakh per day Conversion Ratio – 45-48% Inventory on books – 650 crore Debt on books – 730 crore

Where Vishal Retail gone wrong? Faster than manageable store roll out High inventory and thereby high debt on books Inability to handle manufacturing

Measures taken to face challenging situation… Moving out of manufacturing Reducing warehouse space from 12 mln sqft to 3 mln sqft Plans to shutdown 20 unprofitable stores by FY10 and relocate them Deep discounting of slow moving inventory to reduce inventory level on books Expansion through franchisee route Renegotiated rentals by 25% Renegotiated interest cost from 15% to 9.75%

Contd… No expansion in retail space No capex plans 11% EBIDTA margin expected in FY11 Same store sales growth – 10% in FY11 Average size of footfalls expected to be 2.25 lakh per day by FY11 Conversion ratio is expected to be 53% by FY11

Financials (Rs Mn)FY09FY08Change Sales % EBITDA EBITDA Margin -13% Net Profit Net Profit Margin EPS