KOOVS.

COM 2018

Introduction to Koovs plc

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 AGENDA

The Prize: A Billion Pound Company (Hardman & Co 1 March 2018)

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 HIGHLIGHTS

India is dynamic, attractive and investible

And the fastest growing fashion market in the world
Koovs has built authority in Western fashion in India
Affordable, aspirational and authentic

Koovs has increased brand awareness to 21%

Through engaging marketing content

Koovs has developed a state-of-the-art technology platform

Positioned for scale and rapid innovation

Koovs is led by a strong and entrepreneurial management team

With a proven track record in fashion and tech

Koovs has a strong 5-year plan

With robust growth assumptions

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 INDIA IS THE MOST EXCITING MARKET IN THE WORLD

 India is a market of young, aspirational and digitally savvy

241m users consumers.
(vs. US 240m)
 65% of its 1.3 billion population is under 35 years old.

Population:  India has the largest number of Facebook users in the world:
1.3bn 241m (vs. 240m in the US)
 7% - 8% annual GDP growth forecast for 2018-2022 (IMF)
 India is the largest democracy in the world.
 English is widely spoken, especially in a business or
65%
transactional context.
under 35
 The stability of its democratic government, the business
infrastructure in place and its solid fundamentals make India
an investible economy, which offers a significant upside to the
Western markets.
 The Indian government invested $3bn into fibre and $32bn
“Huge potential” Jeff Bezos into 4G mobile networks.

In June 2016 Amazon said it would  In 2017, there were 470m people using broadband and over
299m smartphone users in India. These numbers are predicted
increase its investment in India by
to rise by 40% and 60% respectively by 2020.
$3bn bringing the total amount
invested in India to more than $5bn.

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 KOOVS: THE EMERGING ASOS OF INDIA

We are the only online western fashion brand designed in London

specifically for India: Affordable, Aspirational & Authentic
NIKHIL CHINAPA X KOOVS

• We bring Fashion Authority and Credentials

Koovs Private Label & the Best of Brands curated by design and creative team based
in London for the young stylish Indian consumer. Brand awareness increased from 1% HATTIE X KOOVS
to 21%. Brand has emerged as the top decision making criteria (Redseer May-18)

• We lead in Customer Experience & Engagement

2.4m on social media and the highest Net Promoter Score in the online apparel
retailing sector

• We have the latest scalable technology, designed for the mobile generation

Always connected via social media and lifestyle content, driving 80% of Koovs’
transactions on mobile

We are an established business with an experienced team

- Established Brand, Customer Experience, Technology and Operations
- Senior team with track record of building ecommerce businesses
STEP INTO BRAND CAMPAIGN

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 KOOVS JOURNEY
Brand Brand
Awareness <1% Awareness 21%
MILESTONES

KOOVS Floats Koovs Launches

KOOVS.COM
on AIM Brand Campaign
Fashion
Launch KOOVS plc £10m Revenue Social Media
2m web followers NPS Score 56%
visitors a week reach 2m Redseer

2012 2013 2014 2015 2016 2017 2018

Launch
Launched Launch Awards
K Denim
Curated Brands K Active
& Knitwear

Favourite Fashion Portal

PRODUCT

Global Youth Marketing Forum

No.1 for Customer Experience

Forrester

Launch of Launch
Collaborations * Footwear

Launch Launch 1st Facebook Live

Womenswear Menswear Live streaming
Private Label Private Label Fashion Chat

* Henry Holland, Giles Deacon, Mawi, Manish Arora, Gauri & Nainika, Masaba, Hattie Stewart, Nikhil Chinapa, Daniella Helayel, Pankaj & Nidhi

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 WHY KOOVS: THE SECRET SAUCE

Private Label

Customer Experience

Management Team

EARINGS BY MAWI X KOOVS

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 PRIVATE LABEL: GREAT FASHION, GREAT PRICES, DESIGNED IN LONDON
Proven strategy: ASOS, Boohoo

BEST 20%
PRICE Collaborations &
International Brands
BEST
INR1999-4999
£24-59
($33-$82)
BETTER 30%
Private Label &
Curated Domestic Brands
New Look
BETTER
INR999-1999 GOOD 50%
£12-24
Mostly Private Label
($17-$33)
Gauri & Nainika
Femella Collaboration

GOOD
INR499-999
£6-12
($8-$17)
FASHION
ENTRY EVERYDAY PREMIUM

• 3,000 new Private Label options per season, 50% under INR999
• Highly desirable collaborations with International & high profile Indian designers
£/$ = 1.385

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 BEST FOR CUSTOMER EXPERIENCE & ENGAGEMENT
FASHION LIFESTYLE CHANNEL

Leaders in engagement through editorial lifestyle content & social media

- Facebook 1.9m + Instagram 500k – FB engagement 3x higher than nearest competitor
(Meltwater)
- Favourite Fashion Portal
(Global Youth Marketing Forum 2017)

LFW : > 27,000 views

Customers rating Koovs highly for product quality and customer experience CELEBRITY STYLE

- Consistently achieving highest NPS – 56% in January 2018

(Redseer Consulting January 2018)
- Ranked No. 1 for Best Customer Experience in Online Retailers
(Forrester November 2017)
CELEBRITY LONDON DIARIES
- 40% returning customers

Web, m-site and APP usability

- Website and app: rated top for “ease of use”
(Redseer Consulting January 2018)
RHEA CHAKRABORTY : Campaign Reach 31.4m

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MANAGEMENT TEAM WITH PROVEN TRACK RECORD IN INDIA & THE UK

DESIGN BUYING, MERCHANDISING

CHAIRMAN & PRODUCTION
SAMANTHA CHILTON
Previously at Primark, WAHEED ALLI GIRIJA GOSWAMI
Arcadia, Zara, River Island Chairman ASOS plc 2000-12 Previously at M&S India and Reliance
9 DESIGNERS Chairman Silvergate Media 49

TECHNOLOGY
CREATIVE & STUDIO
CHIEF EXECUTIVE MARY TURNER
LAUREN POOLE 25
Previously Little Mistress Group MARY TURNER
3 CREATIVE, 21 STUDIO 20 years CEO experience OPERATIONS
Elizabeth Arden, Avon, Tiscali
Non Exec ASOS plc 2009-13
SUDEEP GUHA
FINANCE & HR Previously at Danone, Amazon,
EXECUTIVE TEAM 6
27
ROBERT PURSELL
Previously at Eviivo Limited, AlertMe, MARKETING &
TalkTalk, Tiscali CUSTOMER CARE
14 FINANCE & HR
PUNIT CHAHAR
Head of Digital
Previously StalkBuyLove
POOJA LAL
Head of Customer Care
Previously at Fashion&You

UK SUTAPA CHATTERJEE
Head Of PR
INDIA
Previously at PR Pundit, TELiBrahma

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INDIAN ECOMMERCE DOMINATED BY HEAVY WEIGHT MARKETPLACES
Heavyweight marketplaces are not just competitors they are enablers
- Investments in infrastructure, payment systems develop and increase overall ecommerce market
“The California Grunge collection
is so Boho! Love the yellow fringe dress
and the Coachella festival vibe”
Mehernaaz Dhondy
Editor Grazia India
Feb 2018

APPAREL MARKETPLACES FASHION SPECIALISTS

e.g. Amazon, Flipkart e.g. KOOVS

• Commodity apparel • Fashion Brand

Broad Curated & Edited
Differentiators

• •
• Transactional • Customer Experience
• Catalogue • Lifestyle Editorial
• Practical • Aspirational
• Trust – Process • Trust - Fashion

• Discount • Affordable
Hygiene

• Reliable/Convenient • Reliable/Convenient
• Secure • Secure

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 HISTORIC PERFORMANCE

TRAFFIC CONVERSION
100m 1.8%
CAGR +26%
1.6%
81.0m 1.5%
1.6%
80m CAGR +97% 1.4%
1.2% 1.0%
60m
44.2m 1.0%
0.8%
40m
20.9m 0.6%
20m 0.4%
0.2%
0m 0.0%
FY15 FY16 FY17 FY15 FY16 FY17

GROSS ORDER VALUE ORDERS

20m 18.5m
1.4m 1.3m
CAGR +129% 1.2m CAGR +145%
15m
1.0m
10.2m
10m 0.8m 0.7m
0.6m
5m 3.5m 0.4m
0.2m
0.2m
0m
0.0m
FY15 FY16 FY17
FY15 FY16 FY17

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FY18 IMPACT OF DEMONETISATION, GST AND CASH CONSERVATION

• Demonetisation and Goods and Services • Requirement to conserve cash in H2 (Oct –

Tax (GST) reforms impacted market Mar 2017 v 2018) led to a 38% reduction
growth, resulting in flat sales in H1 (Apr – in brand and marketing spend, which
resulted in an equal decline of 38% in
Sep 2016 v 2017) in line with general
Gross Order Value, resulting in a YTD
market performance for the half year decline of 22%

H1 Impacted by Demonetisation & GST H2 Impacted by Cash Conserve

GOV (£m) GOV (£m)

0%
£9.0m £12.0m
£8.0m
£10.0m
£7.0m
£6.0m £8.0m
£5.0m
£6.0m
£4.0m £7.9m £7.9m £10.7m
£3.0m £4.0m
£6.6m
£2.0m
£2.0m
£1.0m
£0.0m £0.0m
2016/17 2017/18 2016/17 2017/18

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 USE OF FUNDS

FUNDING REQUIREMENT TO FY 20/21 • The total funding requirement to deliver our Koovs business plan is c.
£50m .
Marketing & £42m  Investment in brand
Content ($58m) marketing, social
engagement and market • The total funding would be split into three tranches of c.£22m in year 1,
development c.£15m in year 2 and c.£12m in year 3.

Working £4m  Investment in product

capital ($5m) options and stock
• The funds would be used for strategic investment in brand and
performance marketing to drive customer engagement and to expand
product options.
Capex £1m  Outsourced model
($1m) requires limited capex
• Marketing Spend 50% Brand, 40% Performance, 10% creative & PR

Operating £30m  Gross profit / cash to • Digital Performance

costs* ($41m) fund operating costs (net
£2m use of funds) • Google – Paid search + display advertising to drive traffic/orders

Net of internal (£27m)  Generated by the

• Facebook – engagement + awareness campaigns

cash resources ($37m) company’s gross profit • Targeted affiliate marketing

Funding £50m  Required to take the • Brand and Social Media to deliver brand awareness > 50%
requirement ($70m) company to positive
cash flow in FY 21/22

£/$ = 1.385

*Excluding marketing Koovs plc May 2018

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 PATH TO A BILLION-POUND COMPANY

• Leverage resurgence of ecommerce market growth

• Further build Brand and expand Private Label

• Engage & build customer loyalty with editorial content &

social media campaigns

• Continue to deliver market leading customer experience

“Love the shirt its super cool “Love the pink and green Pop
and Techno Jungle is such a colours and pairing in your
collection that can look great editorially!” Mi-Centricity capsule collection”
Tanya Vohra Anaita Shroff Adajani
Fashion Editor GQ Fashion Editor Vogue India
Feb 2018 Feb 2018

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