Ref. no.

: Ethos/Secretarial/2023-24/40

Dated: August 5, 2023

BSE Limited National Stock Exchange of India Limited

Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G,
Dalal Street, Mumbai – 400 001 Bandra Kurla Complex, Bandra,
Mumbai - 400 051

Scrip Code : 543532 Trading symbol : ETHOSLTD

ISIN : INE04TZ01018

Subject : Investor Presentation

Dear Sir/Ma’am

Greetings from Ethos.

We are enclosing herewith the Investor Presentation, to be used by the Company for the Earnings Call
scheduled on Monday, August 7, 2023 at 3:00 p.m. IST to discuss operational and financial performance
of the Company for the quarter ended June 30, 2023.
We would request you to please take the same in your records and oblige.

Thanking you

Yours truly
For Ethos Limited

Anil Digitally signed by

Anil Kumar

Kumar Date: 2023.08.05

16:01:37 +05'30'

Anil Kumar
Company Secretary & Compliance Officer
Membership no. F8023

Encl.: as above
Ethos Limited
Investor Presentation
Q1FY24 | August 2023

1
Safe Harbor 2

This presentation and the accompanying slides (the “Presentation”), which has been prepared by Ethos Limited, a material subsidiary of KDDL Limited, solely for
information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities and shall not form the basis or be relied on
in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering
document containing detailed information about the Company.
This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or
warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this
Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents
of, or any omission from, this Presentation is expressly excluded.
Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and
collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks,
uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the
economies of various international markets, the performance of the industry in India and world-wide, competition, the company’s ability to successfully implement its
strategy, the Company’s future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the
Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels of activity, performance or achievements could
differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information
contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and
the Company is not responsible for such third-party statements and projections.
Index 3

TOPICS PAGE NO

I Q1FY24 Performance 4

II About the Company & Industry 12

III Strategy Overview 28

IV Our Flagship Stores 36

Q1FY24 Performance

4
I Financial Summary | Consolidated Q1FY24 Performance Snapshot | Without IND AS 116 5

All Figures in Rs. Crs.

Revenue from operations EBITDA EBITDA Margin PBT

+32.5% +34.4% +42.1%

230.0 28.9 26.0
Q1FY24 12.2% 12.3%
173.6 21.5 18.3

Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24

Revenue from operations EBITDA EBITDA Margin PAT

+36.6% +100.4% +142.5%

788.5 96.7 85.6
12.0%
577.3
FY23 8.3%
48.3
35.3

FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23

I Financial Summary | Consolidated Q1FY24 Performance Snapshot 6

All Figures in Rs. Crs.

Revenue from operations EBITDA EBITDA Margin PAT

+32.5% +31.7% +42.2%

230.0 38.6 18.2
Q1FY24 16.6% 16.4%
173.6 29.3 12.8

Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24

Revenue from operations EBITDA EBITDA Margin PAT

+36.6% +61.7% +157.7%

788.5 128.9 60.3
16.1%
577.3 13.5%
FY23 79.7
23.4

FY22 FY23 FY22 FY23 FY22 FY23 FY22 FY23

I Financial Summary | Consolidated Q1FY24 Operational Highlights 7

All Figures in Rs. Crs. Except for

online visitor shown in ‘000

Total Billings Online Visitors

+33.0%
268.0 6,553
201.5 4,705
Q1FY24

Q1FY23 Q1FY24 Q1FY23 Q1FY24

Total Billings Online Visitors

+36.5%
917.5 22,770 23,643
FY23
672.2

FY22 FY23 FY22 FY23

I Financial Summary | Consolidated Q1FY24 Reported Profit & Loss Statement | Without IND AS 116 8

Profit and Loss (in Rs. Crs) Q1FY24 Q1FY23 YoY Q4FY23 QoQ FY23

Revenue from Operations 230.0 173.6 33% 207.6 11% 788.5

Other Income 4.7 2.2 5.0 14.3

Total Income 234.7 175.8 212.6 10% 802.8

Cost of Goods Sold 160.2 118.9 146.6 544.4

Gross Profit (Revenue - COGS) 69.8 54.7 27% 61.0 14% 244.1

Gross Profit Margin 30.3% 31.5% 29.4% 31.0%

Employee Cost 17.4 12.4 15.0 52.7

Other Expenses 28.2 23.0 29.0 109.0

Normalized EBITDA including other income 28.9 21.5 34% 22.0 32% 96.7

Normalized EBITDA Margin 12.3% 12.2% 10.4% 12.0%

Depreciation 2.9 2.0 2.8 9.1

EBIT 26.0 19.5 33% 19.2 35% 87.6

Finance Cost 0.2 1.4 0.3 2.6

Share in Profit/(loss) in JV and Associates 0.2 0.2 0.3 0.6

PBT 26.0 18.3 42% 19.2 36% 85.6

I Financial Summary | Consolidated Q1FY24 Reported Profit & Loss Statement 9

Profit and Loss (in Rs. Crs) Q1FY24 Q1FY23 YoY Q4FY23 QoQ FY23
Revenue from Operations 230.0 173.6 33% 207.6 11% 788.5
Other Income 4.7 2.2 5.0 14.6
Total Income 234.7 175.8 212.6 803.1
Cost of Goods Sold 160.2 118.9 146.6 544.4
Gross Profit (Revenue - COGS) 69.8 54.7 28% 61.0 14% 244.1
Gross Profit Margin 30.3% 31.5% 29.4% 31.0%
Employee Cost 17.4 12.4 15.0 52.7
Other Expenses 18.5 15.2 20.4 77.1
EBITDA 38.6 29.3 32% 30.6 27% 128.9
EBITDA Margin 16.4% 16.6% 14.4% 16.0%
Depreciation 10.7 8.1 9.5 34.6
EBIT 27.9 21.1 32% 21.1 32% 94.3
EBIT Margin 11.9% 12.0% 9.9% 11.7%
Finance Cost 3.8 4.2 3.5 14.1
Share in Profit/(loss) in JV and Associates 0.2 0.2 0.2 0.5
PBT 24.3 17.1 42% 17.8 37% 80.7
PBT Margin 10.4% 9.7% 8.3% 10.0%
Tax 6.1 4.3 4.5 20.4
PAT 18.2 12.8 42% 13.3 37% 60.3
PAT Margin 7.8% 7.3% 6.2% 7.5%
About The Company & Industry

10
II Ethos in a nutshell 11

Ethos is India’s largest luxury and Delivering a content-led luxury retail The company retails 60+ premium & luxury
premium watch retailer employing over experience to our customers through our watch brands in India. Customers can choose
545+ people online and physical presence from over 7,000 premium, bridge to luxury,
luxury and high luxury watches
Exclusive brands – 42+

In addition to premium and luxury watch In addition to our chain of 60* physical retail The first Boutique for Rimowa, for retailing
retail, company also undertake retail of stores in 23 cities in India in a multi store their range of luxury luggage will open soon
certified pre-owned luxury watches since format, we offer an Omnichannel and Messika for retailing their range of
Fiscal 2019 experience to our customers through our luxury Jewellery in India is slated for later
website and social media platforms this Financial year.

*As 5th August 2023

II One of the Largest Luxury and Premium watch retail player in India 12

K E Y S T R E N G T H S

Experienced and committed

Deep understanding of Digital and
management team with a proven track
Omnichannel commerce
record

Leadership position in an attractive luxury

Strategically located and well invested
watch market
store network with attractive in-store
Leadership position on certified pre-
experience
owned watch

Strong and long-standing relationships

with luxury watch brands and luxury group
Access to a large base of Luxury Customers
Brand: 60+ Premium and Luxury Brands
Exclusive Brand: 42+ Brands
II Unparalleled offering in our Brand portfolio on the back of our Long-standing relationship with marquee brands 13

Offering a sizeable portfolio of Premium and Luxury watches in India enabling us to retail over
60 Premium and Luxury watch brands

60+ Overall Brands Portfolio

Relationships with owners of Luxury watch brands typically take many
years to develop and are difficult to replicate

42+ Exclusive Brands Portfolio

Ethos has benefitted from its Promoter’s (KDDL Ltd.) long-standing

relationships with luxury watch brands. Since 1981, KDDL undertook
export of watch dials, thereby gaining valuable insights in the watch
industry, which has been instrumental in building strong relationships
with the brands Ethos retails Exclusive Brands Added
6
During the Quarter

Source: ‘Industry Report on Premium and Luxury Watch Retail in India dated April 26, 2022, prepared by Technopak Advisors Private Limited
II Ethos is in unique position to leverage its large base of Luxury Customers 14

Creating engaging shopping experience over the years has enabled us to build a large Luxury Customer base

Demand for our products is directly proportional to the number of HNIs

Factors leading to surge in the

demand for luxury goods, Share of Luxury & High Average Selling
including watches: luxury watch sales Price per watch (INR)

✓ Rise in the number of HNI’s in

fast growing economies, such
as China and India has led to
increase in the wealth of
people
1,76,953
✓ 65% 66% 67% 1,49,318 1,59,476
Awareness and availability of 58%
48% 1,09,864
luxury brands at Ethos with 84,240
International retail standard

FY20 FY21 FY22 FY23 Q1FY24 FY20 FY21 FY22 FY23 Q1FY24

Source: ‘Industry Report on Premium and Luxury Watch Retail in India dated April 26, 2022, prepared by Technopak Advisors Private Limited
II Ethos is in unique position to leverage its large base of Luxury Customers (Contd.) 15

“Club Echo“ - Our Loyalty program – subscribed by over 3,15,000+ registered HNI Customers

✓ Dynamic Incentive Scheme to ✓ Designing appropriate reward and communication New customer enrolment
our repeat customers strategies Repeat Customers

✓ Delightful & Rewarding ✓ Drive highly accurate social media and digital
shopping experience campaigns by targeting known watch customers
90% 91%
87%
✓ ✓
85%
Captures Key Customer Greater customer satisfaction & Commitment 80%

Information and Buying trends ✓ Helps us to generate profitability by:

✓ Outbound Customer Services – Reducing Servicing costs & Price sensitivity

unit at Mohali, Punjab – Increased Spending & Favourable recommendations
passed on to potential customers

34% 37% 41% 46% 45%

FY20 FY21 FY22 FY23 Q1FY24

Insights from our HNI customer database enables us to deliver value by Extending into other Premium & Luxury Product categories

Source: Ethos Ltd., RHP

Note(*): As of 31st December 2022
II Strategically located and well invested store network with attractive in-store experience 16

Only Indian player to offer Loyalty program + Social media presence led to over 35% of business
coming from repeat customers
Our Omnichannel Approach
60* retail stores offering over 7,000 varied premium and luxury watches and about 30,000
1 watches in stock at any given time ✓ Our in-store channel allows customers to order products online
and fulfilled by our store.
2 15 Ethos Summit Stores and 1 Airport store (that houses bridge to luxury, luxury and high
luxury brands), 1. Purchase Ethos online platform (Website/App) with home delivery
2. Book a viewing in-store or at Home/Office and
3 20 MBOs and 13 Ethos Boutiques both housing bridge to luxury and premium brands
3. Services to collect the product in-store

4 10 Luxury segment mono-brand boutiques offering a single luxury watch brand

5 1 CPO luxury watch lounge for Pre-Owned watches

Note: CPO stands for Certified Pre-Owned

*As on 5th August 2023
 II Ethos Store Locations 17

ETHOS WATCH BOUTIQUES

Chandigarh
Our Store Locations
Ludhiana

We have 60* stores across 23 cities in

Delhi
Gurugram Noida Siliguri India, including one duty free store at the
Jaipur Lucknow Guwahati Delhi international airport

Bhopal
Ahmedabad Spread across the major metros, our
Indore Kolkata
Surat Raipur Bhuvneshwar boutiques house the finest selection from
Nagpur over 60 of the world’s top luxury watch
Thane
Mumbai brands
Pune
Hyderabad
We have opened 6 new stores during
the quarter

Chennai
Bangalore Store Presence

Note – Maps not to scale. All data, information, and maps are provided “as is” without warranty or any representation of accuracy, timeliness or completeness *As on 5th August 2023
Strategy Overview

18
 Carefully knitted Growth strategy 19
III

Leveraging our luxury watch retail

business and access to luxury
1 4 Investing in our Brand
customers to expand into other luxury
verticals

Growing our certified pre-owned luxury Expanding our physical store network
2 5
watch retail business and increasing market share

Drive Sales and gather data through Increasing our watch brands portfolio
3 6
Technological Innovations Exclusive Retaionship
 Certified Pre-owned Watches 20
III

** Market Size of Pre-owned watches (Source Technopack Report FY20 & FY25, estimate for other years by prorating)
 Global Market Size — Certified Pre-owned Watches 21
III

Growth of the pre-owned watch market is expected to far outpace that of the first-hand market, with online sales leading the way

USD Billion; Share of sales by channel (%)

+1-3% PA +8-10% PA +4-5% PA

52-59 29-32 85-90

49

Offline Sales 67
55%
Online Sales

18
89% 77%
95%
88%
70%

45%

11% 30% 23%

5% 12%

2019 2025F 2019 2025F 2019 2025F

First-hand market Pre-owned market First-hand and Pre-

owned market
Note: All market valuation figures are approximates
Source: McKinsey analysis, expert interviews
 Advantage Ethos : Scale and Credibility 22
III

Source
First Mover Ethos is the only organised player in India with the capability of
Advantage certifying, buying and restoring pre-owned watches
Evaluators

Scale is The large digital reach and transaction points across 60* www.Secondmovement.com
boutiques in India allows us to transact with more customers and Website
critical
buy/sell the largest selection of pre-owned watches.

Service Centre
Existing Ethos Finance, Marketing, Sales, Digital, Loyalty base etc to be extended
infrastructure to Second Time Zone

Lounge
State-of-the-art
Allows us to service all watches and offer 2 years warranty.
service center

Internet Sales team

Special lounges dedicated for pre-owned products to add

Lounges
credibility and experience.
Ethos Stores

*As on 5th August 2023

New Stores

23
II Ethos at Ahmadabad – Opened May 27, 2023

24
II Ethos at Mumbai – Opened June 7, 2023

25
II Ethos at Raipur – Opened June 10, 2023

26
II Ethos at Chennai – Opened June 6, 2023

27
II Ethos at Bhubaneshwar – Opened April 26, 2023

28
II Ethos at Surat – Opened April 20, 2023

29
For further information, please contact:

Company : Investor Relation Advisors

ETHOS Limited Strategic Growth Advisors Pvt. Ltd.

CIN : U52300HP2007PLC030800 CIN : U74140MH2010PTC204285

Mr. Ritesh Agrawal, Chief Financial Officer Mr. Shogun Jain/ Mr. Mandar Chavan
[email protected] +91 77383 77756 / +91 96993 82195
www.ethoswatches.com [email protected] / [email protected]
www.sgapl.net

30