#1NYKAR кам NYKAA NYKAA SKINRX Juminate+ Investor Presentation Quarter ended December 31, 2023 FSN E-Commerce Ventures Limited#2Table of Contents 9:41 1 Performance Highlights 2 Beauty 3 Fashion 4 Nykaa's House of Brands 5 eB2B: Superstore by Nykaa 6 Financial Performance N all NYKAA#3Performance Highlights NYKAA 3#4Q3 FY24: Driving profitable growth GMV Rs. 36,194 MM +29% YoY Growth NSV Rs. 17,866 MM +24% YoY Growth Revenue from Operations Rs. 17,888 MM +22% YoY Growth Gross Profit Rs. 7,607 MM +20% YoY Growth Gross Margin 42.5% (86 bps YoY) EBITDA Rs. 988 MM +26% YoY Growth EBITDA Margin* 5.5% (+18 bps YoY) PBT Rs. 265 MM 109% YoY Growth PBT Margin* 1.5% (162 bps YoY) PAT** Rs. 175 MM 106% YoY Growth PAT Margin* 1.0% (140 bps YoY) * Margin % is on Revenue from Operations ** PAT is after considering share of loss of associate 4#5Delivering growth across all our verticals BPC GMV 25% 23,697 19,014 15,105 Q3FY22 2-Year CAGR Fashion Others* GMV 40% GMV 39% 10,125 7,244 4,841 483 SUPER STORE 68% 2,373 1,707 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 25% 2-Year CAGR 45% 2-Year CAGR 122% NSV 20% 13,805 11,513 9,102 Q3FY22 Q3FY23 Q3FY24 2-Year CAGR 23% NSV 31% 2,752 2,100 1,500 Q3FY22 Q3FY23 Q3FY24 2-Year CAGR 35% Others includes our new businesses NykaaMan, eB2B platform "SuperStore by Nykaa", International, LBB, and Nudge NSV 67% SUPER STORE 88% 1,309 787 127 Q3FY22 Q3FY23 2-Year CAGR Q3FY24 221% 200 5 % % YoY Growth All values in Rs MM#6Business diversification to serve a wider TAM NSV Opportunity [2027] Q3 FY22 Q3FY23 Others, 1% Others, 5% Fashion Others, 7% Fashion, 15% Q3FY24 ააა Fashion, 14% BPC, 85% , 15% BPC, 80% BPC, 78% Overall BPC - $ 31 Bn $ 10 Bn Online BPC N $ 9 Bn Organized Offline BPC $ 12 Bn Unorganized offline BPC NA KIOSK NYKAA NYKAA... ONTREND SUPER STORE BY NYKAA LUXE THE LUXURY STORE Rs 10,729 MM Rs 14,400 M M Rs 17,866 M M Overall Fashion - $ 147 Bn $ 49 Bn Online Fashion N FASHION 1. Others includes our new businesses NykaaMan, eB2B platform “SuperStore by Nykaa”, International, LBB, and Nudge 2. Market sizing data as per Redseer report 00#7Beauty N 7#8BPC: Strong growth across key metrics GMV (Rs MM) Existing Customers New Customers 25% CAGR 23,697 19,014 22% 15,105 24% 9,102 26% 78% 76% 74% NSV (Rs MM) 23% CAGR 13,805 11,513 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 7.5 AUTC (MM) 21% CAGR 11.1 9.6 7.5 Orders (MM) 21% CAGR 11.1 9.5 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 8#9Nykaaland 2023: India's Biggest Beauty Festival AVEDA NYKAALAND א Overwhelming response from brands and customers alike 80+ Global & local 15,000+ Attendees brands 12 Masterclasses 5,000 participants Packed Audience NYKAALAND Innovative 1st of its kind event to accelerate growth of beauty market Celebrity makeup artist Mario Dedivanovic in India 1st time Baltasar Gonzalez Pinel, Daniel Bauer, Namrata Soni among others Celebrities Attendee Katrina Kaif, Jahnvi Kapoor, Masaba, Kriti Sanon, Jim Sarbh, Nushrratt Bharuccha and more... 800+ Influencers & KOLS Significant online reach post event 5.5 BN + Impressions 5,000+ Content created 9#10Nykaa continues to lead the premiumization of BPC consumption in India New exclusive launches in premium category (Q3FY24) GlobalStore 12:20 ← NYKAA CeraVe all 74% CLINICALLY PROVEN ON INDIAN SKIN TO RESTORE SKIN'S NATURAL BARRIER CeraVe Moisturizing Cream Shop By Category CeraVe 12:21 ll 74% ← Urban Decay ud URBAN DECAY CRUEH allnighter allnighter THIS ONE'S HOT TOP RATED STURM STURM STURM T STURM STURN B STURM Dr. Barbara Strum - Germany based renowned Skincare brand Charlotte Tilbury HUDABEAUTY Murad elf NUDESTIX SOL DE JANEIRO COLOURPOP Marketing pix! Anomaly Cleansers Moisturizers AM CeraVe 20 products FEATURED BESTSELLER Sort by Popularity FEATURED BESTSELLER C Filter Apply Filters AWARD-WINNING SETTING SPRAY TO LOCK YOUR LOOK FOR UPTO 16 HOURS! ALL NIGHTER SETTING SPRAY SHOP NOW CeraVe US based Urban Decay - Iconic derma skincare 250+ Cosmetic brand from US 50% COLOURPOP Now in INDIA Colourpop - LA Based global makeup bestseller 1/3rd GTM Nykaa co-create brand's India strategy Distribution 35 premium brands 3-year GMV CAGR of Nykaa BPC GMV Global brands 1. Brand count as on December 31, 2023, rest other data for Q3FY24 Pricing Customer Service 47% YoY Global brands GMV 10#11Retail Stores: Critical for premium beauty omnichannel strategy Har NYKAA LUXE NeSEN BVLGARI GUERLAIN sis DAVIDOFF CALVINISEN 2 GUCC E HUDREAUTY HUDAE ec NYKAA KIOSK 33 NYKAALUKE THE LUXURY STORE Cate NYKAA 174 74 ON TREND stores 67 94 stores from Non-Metros/ 80 stores from Metros TAAM Store Count (#) 174 64 135 95 Q3FY22 Q3FY23 Q3FY24 cities ~1.7 lakh sq ft retail space Strong improvement in profitability 9% Contribution to overall BPC GMV 35% YoY EBITDA Nykaa stores a destination for premium beauty brands 85+ 65%+ Rs 4,109 Premium brands Offline GMV from premium brands GMV/sq.ft./month 1. Store count and cities as of December 31, 2023, and remaining data points for Q3FY24 11#12Nykaa "Pink Friday" Sale, getting bigger every year NYKAA UP TO PINK 50% FRIDAY Sale STARTS 23RD NOV, 4PM! #BIGGESTBEAUTYSALE N NYKAA NYKAA ONTREND KIOSK NYKAA LUXE THE LUXURY STORE ~10x GMV growth in 5 years N NYKAA KIOSK NYKAA NYKAA LUXE ONTREND THE LUXURY STORE N FASHION N FASHION 400 MM + Social and media reach 50 MM unique visitors 1/3rd GMV from premium brands 32% YoY Premium category GMV vs PF'22 2018 2023 67% YoY Offline sales growth vs PF'22 BOAUTY BOX ~5x GMV growth in 2 years 2021 2023 29% jump in order conversion during sale event 120%+ YoY Women western wear GMV vs PF'22 150%+ YoY Women's bag and footwear GMV vs PF'22 NYKAA FASHION OFF PINK 85% FRIDAY Sale LIVE NOW SMILES GUARANTEED! Stylish Gifts* with every order! 12#13Fashion N FASHION#14Fashion: Strong growth across all metrics GMV (Rs MM) Existing Customers New Customers 45% CAGR 10,125 7,244 51% 4,841 1,500 62% 81% 49% 38% 19% Q3FY22 Q3FY23 Q3FY24 Q3FY22 1.6 AUTC (MM) 36% CAGR 2.9 2.4 1.3 NSV (Rs MM) 35% CAGR 2,100 Q3FY23 Orders (MM) 25% CAGR 2,752 Q3FY24 2.0 1.7 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 14#15Consistent improvement in key metrics Order to Unique Visitor Conversion* 3.2% 2.9% 2.5% 2.3% 2.3% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Improved revenue share from existing customers GMV Contribution Marketing expenses (As % of NSV) 28.6% 27.3% 27.9% Contribution margin (As % of NSV) 2.6% 2.7% 24.9% 49% 46% 44% 23.9% 40% 38% Q3FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Platform strength and high retention * For NykaaFashion.com improvement in marketing 0.9% 6.0% 4.7% Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Delivering improvement in profitability 15#16Foot Locker Inc. – Originator and Leader in Sneaker Culture - Foot Locker Fortune 500 Company 2,600 Stores Foot Locker CREATE YOUR OWN PATH. Reebok REALFLEX RUN 2.0 26+ Countries 45,000+ Employees $ 8 Billion Revenue (2022) Popular multi-brand footwear specialty retailer from US Sneaker Culture Positioning, Purpose led & Community proposition Top brands include Nike, Jordan, adidas, Puma, New Balance, Converse amongst others didas 16#17Exploding Sneaker culture in India Google search trends for sneakers in India ~5x Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Jan-23 Apr-23 Jul-23 Oct-23 1.6 India Market Opportunity ($ Bn) 2022 2.6 -10% CAGR Athletic Sneaker 2.1 2027E 4.5 For young Indians across cities, sneakers are a way of self-expression Sneakers have a cultural connotation with street style, and >50% of audience chose sneakers as their most bought streetwear product Rise in fitness culture Increasing disposable income and premiumization Source: Google trend search, Forbes, Statista, India Retailer 17#18Big Win: Foot Locker x Nykaa Fashion - Exclusive Online Partnership R Footlocker.co.in SALE Foot Locker X N FASHION 1-16 Footlocker on NF X Foot Locker. NYKAA FASHION Nykaa Fashion will serve as the exclusive e-commerce partner Plan to launch Foot Locker's India website and Foot Locker Shop-in-Shop on Nykaa Offering will include Footwear, Apparel, and Accessories Strengthens Nykaa's position as a destination for premium curated assortment POTENTIAL TO BECOME THE #1 SPECIALTY ATHLETIC RETAILER IN INDIA Note: Above images are mockup for illustration purpose 18#19Nykaa's House of Brands NN FASHION 19#20House of Brands: Consumer brands portfolio 4,000+* 13 BPC owned brands NYKAA Cosmetics 2,000+* кам Beauty 27 1,000+* XX 14 Fashion owned brands TWENTY DRESSES 1,000+* Nykd BY NYKAA NYKAA NATURALS earthythm * 5,000+* DOT & KEY NYKAA NYVEDA™ SKINRX Wanderlust nudge Moi by NYKAA owned brands 5 brands crossed Rs 1,000 MM GMV* NYKAA Gentlemen's SKIN SECRETS- Annualized run rate based on Q3FY24 GMV Crew RSVP MIXT pipa.bella Twig & Twine Ꮳ GLOOT gajra gang ayai KICA likha iykyk IF YOU KNOW YOU KNOW nyri 20#21Beauty House of Brands: Strong growth across channels GMV* of BPC owned brands (Rs MM) 40% YoY NSV* of BPC owned brands (Rs MM) 36% YoY 1,746 -34% CAGR 2,247 3,152 Q3FY22 Q3FY23 Q3FY24 Contribution to BPC GMV 11.8% 11.5% 13.3% * 32% CAGR 1,425 1,115 1,943 Q3FY22 Q3FY23 Q3FY24 12.2% 12.4% 14.1% Contribution to BPC NSV Q3FY24 GMV Channel Mix 34% Rs 3,152 MM 53% ■ Nykaa Online Nykaa Physical Stores ■ Other 3P Channels I doesn't include GMV/NSV of Earth Rhythm, as company holds a minority stake in the brand 13% 21 24#22Fashion House of Brands: Expanding presence across multi channels GMV of Fashion owned brands (Rs MM) NSV of Fashion owned brands (Rs MM) 29% YoY 23% YoY 406 69% CAGR 1,165 901 187 57% CAGR 464 376 Q3FY22 Q3FY23 Q3FY24 Q3FY22 Q3FY23 Q3FY24 Contribution to Fashion GMV 8.4% 12.4% 11.5% 12.5% 17.9% 16.8% Contribution to Fashion NSV Q3 FY24 GMV Channel Mix 46% Rs 1,165 MM 54% Nykaa Fashion Other 3P Channels 22 22#23eB2B: Superstore by Nykaa SUPER STORE BY NYKAA#24eB2B: Scaled exponentially within 2 years of launch GMV (Rs MM) NSV (Rs MM) 31x >40x Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Transacting retailers ('000) Orders ('000) 337 35x 146 38x 280 129 264 120 109 236 96 216 75 173 45 104 19 4 40 9 Q3FY22 Q4FY23 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 24#25Scaling with improving profitability ☑ 68% YoY GMV Rs. 4,969 X Packaging 0.5X cost/ order 580 bps Improvement in Fulfilment expense 0.6X Pre-Delivery Leakages 13% YoY growth Q3FY23 Q3FY24 - improving AOV with increasing share from premium brands Q3FY23 Q3FY24 40 bps reduction in retailer margin 88% YoY NSV 42% Feature Brand share All these initiatives led to 766 bps contribution margin expansion + BDE productivity 1.2X Q3FY24 170 bps Improvement in Selling and Distribution expenses Q3FY23 25 25#26Driven by Better Service through Warehouses closer to the Customers Punjab Tauru Lucknow Regionalization of warehouse to get closer to customer and create better experience 13 Warehouses Ahmedabad Existing New in 9MFY24 Mumbai Nagpur Chennai Bangalore Assam Patna Kolkata Cuttack Hyderabad 2.5 Lacs sq.ft Warehouse capacity 950+ Cities served 26 26#27Financial Performance NYKAA 27#28Driving profitable growth All Values in Rs million Revenue from Operations 22% 17,888 14,628 Q3FY23 % YoY Growth Gross Profit 23% 43.4% 47,176 38,421 42.5% 20% 7,607 6,347 Q3FY24 9MFY23 9MFY24 Q3FY23 20 % Margin % to Revenue from Operations 44.3% 43.0% 19% 20,290 17,023 Q3FY24 9MFY23 9MFY24 EBITDA PBT 5.3% 5.5% 4.8% 5.4% 0.9% 26% 36% 1.5% 109% 0.8% 1.0% 66% 2,529 495 1,853 988 782 298 265 127 Q3FY23 Q3FY24 Note: PAT is after considering share of loss of associate 9MFY23 9MFY24 Q3FY23 Q3FY24 PAT of Rs 175 MM [106% YoY Growth] in Q3FY24 9MFY23 9MFY24 28 80#2929 29 Profit & Loss Statement (All amounts in million, unless otherwise stated) Quarter Ended Year Ended Particulars Dec-23 Dec-22 Sep-23 YoY Growth QoQ Grow th YTD Dec-23 YTD Dec-22 YoY Growth Revenue from Operations 17,888 14,628 15,070 22% 19% 47,176 38,421 23% Cost of goods Sold 10,280 8,282 8,574 24% 20% 26,886 21,398 26% Gross Profit 7,607 6,347 6,496 20% 17% 20,290 17,023 19% Gross Profit Margin % 42.5% 43.4% 43.1% -86 bps -58 bps 43.0% 44.3% -130 bps Fulfilment expense 1,718 1,572 1,459 9% 18% 4,534 4,320 5% Fulfilment cost % to Revenue 9.6% 10.7% 9.7% 114 bps 8 bps 9.6% 11.2% 163 bps Marketing & advertisement expense 2,175 1,710 1,690 27% 29% 5,461 4,475 22% Marketing & advertisement expense % to Revenue 12.2% 11.7% 11.2% -46 bps -94 bps 11.6% 11.6% 7 bps Selling and distribution expense 427 271 346 58% 24% 1,094 764 43% Selling & distribution expense % to Revenue 2.4% 1.8% 2.3% -54 bps -9 bps 2.3% 2.0% -33 bps Contribution Profit 3,288 2,794 3,001 18% 10% 9,200 7,464 23% Contribution Margin % 18.4% 19.1% 19.9% -72 bps -154 bps 19.5% 19.4% 7 bps Employee benefits expense 1,479 1,279 1,363 16% 9% 4,228 3,644 16% Employee expense % to Revenue 8.3% 8.7% 9.0% 48 bps 78 bps 9.0% 9.5% 52 bps Other expense 821 733 832 12% -1% 2,443 1,967 24% Others expense % to Revenue 4.6% 5.0% 5.5% 42 bps 93 bps 5.2% 5.1% -6 bps EBITDA 988 782 806 26% 23% 2,529 1,853 36% EBITDA Margin % 5.5% (1) 5.3% 5.4% 18 bps 17 bps 5.4% 4.8% 54 bps Depreciation & Amortisation (2) 580 507 546 14% 6% 1,646 1,202 37% Depreciation & Amortisation % to Revenue 3.2% 3.5% 3.6% 22 bps 38 bps 3.5% 3.1% -36 bps Finance Cost (Net of other income) (3) 143 148 127 -4% 12% 388 354 10% Profit before Tax 265 127 133 109% 100% 495 298 66% PBT Margin % 1.5% 0.9% 0.9% 62 bps 60 bps 1.0% 0.8% 27 bps Total tax expense 83 35 40 155 92 Profit before share of (loss) of associate 183 92 93 98% 96% 340 205 65% Share in loss of associate -8 -7 -15 -33 -19 Net Profit for the period 175 85 78 106% 124% 307 187 64% PAT Margin % 1.0% 0.6% 0.5% 40 bps 46 bps 0.7% 0.5% 16 bps 2. 1. Adjusted EBITDA margin of 6.1%, after adjusting for ESOP expenses of Rs 74 million and New business (GCC) expenses of Rs 34 million Amortization includes the depreciation on RoU (Right of Use Assets) 3. Finance cost includes the interest cost on lease liabilities (Net of Interest Income on Security Deposit & Gain on cancellation of lease)#30Vertical Performance: Business Wise (All amounts in million, unless otherwise stated) Particulars GMV Growth Q3 FY24 Q3 FY23 BPC Fashion Others Total BPC Fashion Others Total 23,697 10,125 2,373 36,194 19,014 7,244 1,707 27,965 25% 40% 39% 29% 26% 50% 254% 37% NSV Growth Revenue from Operations Growth 13,805 2,752 1,309 17,866 11,513 2,100 787 14,400 20% 31% 67% 24% 26% 40% 520% 34% 15,045 1,526 1,318 17,888 12,634 1,275 719 14,628 19% 20% 83% 22% 26% 43% 628% 33% Gross Profit 6,142 1,170 295 7,607 5,232 914 201 6,347 Fulfilment expenses 1,271 310 137 1,718 1,215 248 109 1,572 Marketing & advertisement expense 1,359 657 115 2,131 905 600 96 96 1,601 Selling and Distribution expenses 224 39 164 427 128 48 48 95 95 271 Contribution Profit Key Ratios as a % to NSV Gross Profit Margin % Fulfilment expenses % Marketing and Advertisement expense % Selling and Distribution expenses % Contribution Margin % Notes: 3,288 164 -120 3,331 2,984 18 -99 2,903 44.5% 42.5% 22.6% 42.6% 45.4% 43.5% 25.6% 44.1% 9.2% 11.3% 10.4% 9.6% 10.6% 11.8% 13.9% 10.9% 9.8% 23.9% 8.8% 11.9% 7.9% 28.6% 12.2% 11.1% 1.6% 1.4% 12.5% 2.4% 1.1% 2.3% 12.1% 1.9% 23.8% 6.0% -9.2% 18.6% 25.9% 0.9% -12.6% 20.2% 1. Branding Media & Production Cost is not considered for Contribution Profit as it is not allocatable, and its benefit accrue over long term 2. Fulfilment expenses include freight, payment gateway charges, warehouse off-roll manpower, warehouse operation expenses and packaging expenses 3. Selling and distribution expenses include BA/BDE cost, 3P channel commission, distributor expenses and customer care service charges 30 50#31Improving profitability across businesses *Margin % to NSV BPC Contribution Margin %* Fashion Contribution Margin %* Others Contribution Margin %* 26.5% 25.5% 21.7% FY22 FY23 9MFY24 Consolidated EBITDA Margin % As % to Net Revenue 4.3% FY22 5.4% 5.0% FY23 9M FY24 Adjusted EBITDA margin 9MFY24 2.8% 2.2% FY22 FY23 2% 15% Rs 37,117 MM 83% 5.7% FY22 4.6% 9MFY24 FY22 FY23 9MFY24 -31.8% -11.5% -19.9% NSV contribution business wise BPC Fashion Others 5% 7% 15% 15% Rs Rs 50,625 MM 47,056 MM 80% 78% FY23 9MFY24 31#32Q3 FY24: Operating leverage below contribution to drive profitability % As % of Net Revenue Q3FY24 Employee Expense (As % of Net Revenue) All Values in Rs million Ahead of the curve investment in fashion and new businesses 9.6% 18.4% -8.3% -4.6% 5.5% 0.4% 0.2% 6.1% Contribution Margin Employee Expenses Other Expenses EBITDA Margin ESOP Expenses New business (GCC) Adj. EBITDA Margin Other expenses improvement due to G&A optimization while we continue to invest in Web & Technology Other expenses breakup (Q3FY24) Other G&A, 62% Web & Technology, 38% 8.7% 48 bps YoY improvement 8.3% FY22 FY23 Q3FY24 Other Expense (As % of Net Revenue) Ahead of the curve Investment in tech expenses 5.3% 42 bps YoY improvement 4.6% 4.1% FY22 FY23 Q3FY24 32#33Q3 FY24: Margin expansion at PBT level EBITDA Margin expansion of 18 bps 144 bps YoY improvement Depreciation & Amortisation √22 bps YoY 1.2% Lease Cost 165 bps YoY 2.8% 1.4% 2.1% PBT Margin expansion of 62 bps 1.5% 5.3% 5.5% Q3FY23 Q3FY24 Q3FY23 Q3FY24 Rs 248 MM in Q3 FY24 (45% YoY) - on account of incremental capex investment in retail stores (+39) and warehouses capacity (+17% YoY) Q3FY23 Q3FY24 Lease cost: Rs 384 MM in Q3FY24 (-6% YoY) 0.9% The Cash lease cost in Q3FY24 was Rs 383 million Interest - Financing (net) 11 bps YoY 0.5% 0.5% Q3FY23 Q3FY24 Financing cost excluding lease interest increased in line with business growth Q3FY23 Q3FY24 1. All expenses and margin shown as % of revenue 2. Lease cost includes depreciation on RoU of Rs. 332 Mn and interest expense on lease liabilities of Rs. 52 Mn (Net of Interest income on security deposit and gain on cancellation of lease) 3. Interest - Financing (net) is post adjustment of other income 33 33#34Other Announcements ☐ Further investment by the Company in Nykaa Fashion Limited by way of rights issue: FSN E-Commerce Ventures Limited is infusing additional equity into Nykaa Fashion Limited to be utilised for repayment of loans given by the Company. Acquisition of Lingerie & Athleisure business by way of slump sale from Nykaa Fashion Limited to FSN E-Commerce Ventures Limited: The board has approved to consolidate the Athleisure and Lingerie business of Nykaa Fashion Limited, which is a wholly owned subsidiary of the Company, into FSN E-commerce Ventures Limited. This will help to streamline and consolidate owned brand business in a single entity in a phased manner, similar to beauty owned brands business which are already within FSN E-commerce Ventures Limited. ☐ Demerger of eB2B business from FSN Distribution to Nykaa E-Retail: The board has approved demerger of eB2B business "Superstore by Nykaa" from FSN Distribution Limited to Nykaa E- Retail Ltd. This will help consolidate our online beauty business in a single entity. The proposed demerger will drive synergies in two businesses which have common physical and technology infrastructure, common brand partners as well as are involved in the retail/distribution of common products. The scheme is subject to necessary regulatory and stakeholder approval. 34 =4#35Thank you#36Glossary 36 56 Term Annual Unique Transacting Customers (AUTC) Average Order Value (AOV) Contribution Profit Cost of Goods Sold EBITDA Adjusted EBITDA Gross Profit Gross Merchandise Value (GMV) Monthly Average Unique Visitors (MAUV) Revenue from operations Net Sales Value (NSV) Orders Visits Existing Customers Verticals Description Unique customers identified by their email-id or mobile number who have placed at least one Order on our websites, mobile applications or physical stores during the last 12 months ended as on measurement date. Annual Transacting Customers, with respect to beauty and personal care, denotes Annual Transacting customers on the Nykaa websites and mobile applications and physical stores. Annual Transacting customers, with respect to Fashion, denotes Annual Transacting customers on the Nykaa Fashion website and the mobile application, with respect to Others, denotes Annual Transacting customers on the Nykaa Man website and the mobile application, "SuperStore by Nykaa" website and mobile application GMV generated across our websites, mobile applications and physical stores divided by Orders considered for such GMV. Contribution Profit is a non-GAAP financial measure. Contribution Profit refers to Gross profit for the period, after the adjustment of Fulfillment Expenses, Marketing Expenses (Other than branding), Selling & Distribution Expenses. Cost of Goods Sold is a non-GAAP financial measure. cost of goods sold refers to cost of material consumed, purchase of traded goods, changes in finished goods and stock-in-trade. EBITDA is a non-GAAP financial measure. EBITDA refers to our profit/(loss) before Tax for the period, as adjusted to exclude (i) Other Income, (ii) Depreciation and Amortization Expenses, (iii) Finance Costs. EBITDA Margin refers to the percentage margin derived by dividing EBITDA by Revenue from Operations Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA refers to our profit/(loss) before Tax for the period, as adjusted to exclude (i) Other Income, (ii) Depreciation and Amortization Expenses, (iii) Finance Costs, (iv) ESOP expenses & (v) New business (GCC). Adjusted EBITDA Margin refers to the percentage margin derived by dividing Adjusted EBITDA by Revenue from Operations. Gross Profit is a non-GAAP financial measure. Gross Profit refers to Revenue from Operations less COGS. Gross Profit Margin refers to the percentage margin derived by dividing Gross Profit by Revenue from Operations. Monetary value of Orders inclusive of taxes and gross of discounts, if any, across our websites, mobile applications and physical stores prior to product returns or order cancellations and including sales to and through third party channels. GMV, with respect to BPC, denotes GMV of BPC vertical. GMV, with respect to Fashion, denotes GMV of Fashion vertical. GMV, with respect to Others, denotes GMV of Other Verticals Number of unique devices (laptops, mobile phones, etc.) which recorded at least one Visit to our websites or mobile applications during the month. Monthly Average Unique Visitors, with respect to BPC, denotes Monthly Average Unique Visitors on the Nykaa websites and mobile applications. Monthly Average Unique Visitors, with respect to Fashion, denotes Monthly Average Unique Visitors on the Nykaa Fashion website and the mobile application. Monthly Average Unique Visitors, with respect to Others, denotes Monthly Average Unique Visitors on the Nykaa Man website and the mobile application, "SuperStore by Nykaa" website and mobile application Revenue from operations includes sale of products, marketing support revenue, income from marketplace and logistics services NSV refer to Net Sales Value and calculated basis GMV minus Discounts, Cancellation & Returns, and Taxes. All orders placed on our websites, mobile applications and physical stores prior to any cancellations and returns. Orders, with respect to BPC Vertical, includes all Orders that placed on Nykaa websites & mobile applications and Physical Store, having at least one BPC product. Orders, with respect to Fashion Vertical, includes all Orders that placed on Nykaa website & mobile application, and Fashion.com website & mobile application having at least one fashion product. Orders, with respect to Others includes all Orders that placed on Nykaa Man website & application, and "SuperStore by Nykaa❞ website & mobile application. Number of visits to our websites and mobile applications. A visit is considered ended when no new request has been recorded in more than 30 minutes from the same device to the website or the mobile application. Visits, with respect to beauty and personal care, denotes Visits to the Nykaa websites and mobile applications. Visits, with respect to Fashion, denotes Visits to the Nykaa Fashion website and the mobile application. Visits with respect to Others, denotes Visits to Nykaa Man website and mobile application, "SuperStore by Nykaa" website and mobile application Existing Customers, identified by their email-id or mobile number, are Customers who placed at least one Order in any prior Financial Year on our websites or mobile applications. BPC refers to Beauty and Personal Care and includes Beauty business from Nykaa.com, Physical store and sale of Beauty Owned Brands through 3P online and offline channels. Fashion includes Fashion business from NykaaFashion.com, Nykaa.com, Physical Stores and sale of Fashion Owned Brands through 3P online and offline channels Others includes new businesses Nykaa Man, eB2B platform "SuperStore by Nykaa", International, LBB, and Nudge#37Disclaimer By attending the presentation or by reading the presentation slides you agree to be bound as follows: This Presentation is prepared by FSN E-Commerce Ventures Limited ("Company") and is for information purposes only without regards to specific objectives, financial situations or needs of any particular person and is not and nothing in it shall be construed as an invitation, offer, solicitation, recommendation or advertisement in respect of the purchase or sale of any securities of the Company or any affiliates in any jurisdiction or as an inducement to enter into investment activity and no part of it shall form the basis of or be relied upon in connection with any contract or commitment or investment decision whatsoever. 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This Presentation includes certain statements that are, or may be deemed to be, “forward-looking statements” and relate to the Company and its financial position, business strategy, events and courses of action. Forward-looking statements and financial projections are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements and financial projections. 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No rights or obligations of any nature are created or shall be deemed to be created by the contents of this Presentation. 37 37#38Key Operational Metrics Quarter Ended Quarter Ended Dec-23 Dec-23 Metric Unit Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 YOY QoQ grow th grow th Number of Visits Beauty and Personal Care Million 211 221 204 222 234 250 231 257 271 295 18% 9% Fashion Million 115 115 113 118 122 137 127 126 144 157 15% 10% Others Million 9 11 11 14 16 16 11 12 15 16 -1% 7% Monthly Average Unique Visitors Beauty and Personal Care Million 19.4 19.8 18.5 21.8 22.1 24.2 22.5 25.4 26.8 29.6 22% 10% Fashion Million 16.2 16.4 16.0 16.2 16.4 19.4 17.3 16.6 17.6 18.8 -3% 7% Others Million 1.7 2.2 2.3 2.8 3.2 3.0 1.8 2.0 2.4 2.7 -9% 13% Orders Beauty and Personal Care Million 6.0 7.5 7.2 8.1 8.4 9.5 8.8 9.5 10.0 11.1 16% 11% Fashion Million 1.3 1.3 1.3 1.5 1.4 1.7 1.4 1.5 1.7 2.0 19% 17% Others Million 0.1 0.2 0.2 0.3 0.3 0.4 0.4 0.4 0.5 0.6 43% 15% Average Order Value (AOV) Beauty and Personal Care ₹ 1,910 1,967 1,716 1,780 1,872 1,958 1,803 1,849 1,916 2,024 3% 6% Fashion ₹ 3,242 3,558 3,616 3,732 3,940 3,959 4,266 4,058 4,061 4,681 18% 15% Others ₹ 2,502 2,927 3,084 3,199 3,305 3,709 3,368 3,561 3,541 4,027 9% 14% Annual Unique Transacting Customers Beauty and Personal Care Million 7.0 7.5 8.0 8.6 9.1 9.6 10.0 10.3 10.7 11.1 16% 4% Fashion Million 1.3 1.6 1.8 2.0 2.1 2.4 2.5 2.6 2.8 2.9 23% 6% Others Million 0.3 0.3 0.4 0.4 0.5 0.5 0.5 0.5 0.6 0.6 28% 9% Gross Merchandise Value (GMV) Beauty and Personal Care in Million Fashion Others Total in Million in Million in Million 16,229 11,698 15,105 4,188 343 12,587 14,888 16,301 19,014 16,289 18,501 20,016 23,697 25% 18% 4,841 4,827 483 565 20,428 5,820 5,991 7,244 6,641 6,537 7,631 10,125 40% 32% 850 1,165 1,707 1,524 1,633 1,791 2,373 39% 32% 17,979 21,558 23,457 27,965 24,454 26,672 29,438 36,194 29% 23% 88 38#39Financials KPI Quarter Ended Quarter Ended Dec-23 Dec-23 Metric Unit Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 YOY QoQ grow th grow th NSV in Million Beauty and Personal Care in Million 8,668 10,729 7,115 9,102 Fashion in Million 1,464 1,500 Others in Million 108 127 9,650 11,272 12,049 14,400 12,904 14,206 7,918 9,199 9,815 11,513 10,238 11,298 1,506 1,733 1,753 2,100 1,859 1,978 226 340 482 787 807 930 14,983 17,836 24% 19% 11,675 13,805 20% 18% 2,321 2,752 31% 19% 986 1,309 66% 33% Revenue from Operations in Million 8,853 10,984 Beauty and Personal Care Million 7,993 9,996 8,636 9,733 11,484 10,161 Fashion Million 770 889 883 1,007 12,308 10,825 1,016 14,628 13,017 12,634 11,200 14,218 12,142 15,070 17,888 22% 19% 12,782 15,045 19% 18% 1,275 1,050 1,138 1,305 1,526 20% 17% Others Million 89 99 214 316 467 719 768 939 984 1,318 83% 34% Gross Margin (As % of NSV) % 43.5% 47.4% 44.1% 45.2% 46.3% 44.1% 44.6% 43.5% 43.4% 42.6% -150 bps -78 bps Beauty and Personal Care % 44.5% 47.5% 44.1% 45.8% 47.6% 45.4% 46.8% 45.2% 45.4% 44.5% -95 bps -90 bps Fashion % 39.1% 48.4% 47.1% 45.7% 44.6% 43.5% 43.2% 44.0% 43.1% 42.5% -102 bps -61 bps Others % 39.5% 31.7% 22.7% 27.9% 25.0% 25.6% 20.9% 22.0% 19.9% 22.6% -299 bps 271 bps Contribution Margin (As % of NSV) % Beauty and Personal Care % 20.0% 16.3% 20.2% 23.9% 18.1% 20.2% 22.5% 25.2% 20.6% 20.2% 21.7% 20.7% 20.3% 18.6% -151 bps -166 bps 26.6% 25.9% 28.1% Fashion % Others % 1.3% 2.7% 2.6% 3.2% 2.3% -25.2% -34.0% -34.8% -28.1% -33.4% 0.9% -12.6% 26.5% 26.4% 23.8% 2.6% 2.7% 4.7% -15.6% -11.4% -14.8% -210 bps -257 bps 6.0% 510 bps 129 bps -9.2% 344 bps 556 bps EBITDA Margin (As % of Revenue) % 3.3% 6.3% 4.0% 4.0% 5.0% 5.3% 5.4% 5.2% 5.4% 5.5% 18 bps 17 bps PBT Margin (As % of Revenue) % 0.2% 3.4% 0.6% 0.7% 0.7% 0.9% 0.7% 0.7% 0.9% 1.5% 62 bps 60 bps 39 PAT Margin (As % of Revenue) % 0.1% 2.6% 0.8% 0.4% 0.4% 0.6% 0.2% 0.4% 0.5% 1.0% 40 bps 46 bps#40Vertical Performance: Business Wise (All amounts in million, unless otherwise stated) 9M FY24 9M FY23 Particulars GMV BPC Fashion Others Total BPC Fashion Others Total 62,214 24,293 5,797 92,304 50,203 19,055 3,721 72,979 Growth 24% 27% 56% 26% 34% 50% 220% 42% NSV 36,778 7,052 3,226 47,056 30,527 5,585 1,609 37,721 Growth 20% 26% 100% 25% 33% 32% 373% 37% Revenue from Operations 39,968 3,968 3,241 47,176 33,620 3,297 1,503 38,421 Growth 19% 20% 116% 23% 33% 39% 450% 37% Gross Profit 16,554 3,041 696 20,290 14,120 2,486 416 17,023 Fulfilment expenses 3,364 817 353 4,534 3,368 687 265 4,320 Marketing & advertisement expense 3,266 1,787 293 5,346 2,454 1,577 235 4,267 Selling and Distribution expenses 562 111 421 1,094 382 109 272 764 Contribution Profit 9,362 325 -372 9,315 7,915 113 -356 7,672 Key Ratios as a % to NSV Gross Profit Margin % Fulfilment expenses % Marketing and Advertisement expense % 45.0% 43.1% 21.6% 43.1% 46.3% 44.5% 25.9% 45.1% 9.1% 11.6% 11.0% 9.6% 11.0% 12.3% 16.5% 11.5% 8.9% 25.3% 9.1% 11.4% 8.0% 28.2% 14.6% 11.3% Selling and Distribution expenses % Contribution Margin % Notes: 1.5% 1.6% 13.1% 2.3% 1.3% 2.0% 16.9% 2.0% 25.5% 4.6% -11.5% 19.8% 25.9% 2.0% -22.1% 20.3% 1. Branding Media & Production Cost is not considered for Contribution Profit as it is not allocatable, and its benefit accrue over long term 2. Fulfilment expenses include freight, payment gateway charges, warehouse off-roll manpower, warehouse operation expenses and packaging expenses 3. Selling and distribution expenses include BA/BDE cost, 3P channel commission, distributor expenses and customer care service charges 40 40#41Q3 FY24: Improvement across fulfilment and employee expenses Regionalization strategy (reduced air shipment ratio & freight cost per order) and improved warehouse productivity Scale efficiencies Optimization is G&A expenses Higher ESOP cost Launch of operation in GCC 19 bps 6.1% 41 bps 42 bps 5.5% 114 bps -46 bps -54 bps 48 bps -86 bps 5.3% *| Q3FY23 EBITDA Margin Gross margin * Fulfilment Expenses Marketing Expenses Selling & Distribution Expenses Employee Expenses Other Expenses Q3FY24 EBITDA Margin ESOP Expenses New business (GCC) Q3FY24 Adj. EBITDA Margin * Drop in service income for BPC vertical and increase in NSV mix of eB2B: Superstore (others vertical) Marketing investment in Nykaaland and brand campaigns BDE investment in eB2B: Superstore and BPC owned brands expansion on other 3P channels * As % of Revenue from Operations 41