ABOUT FUTURE GROUP

We shall deliver

Everything, Everywhere, Everytime for,Every Indian Consumer

in the most profitable manner.

FUTURE GROUP’S VISION

2007 :- Future Group crosses $1 billion turnover mark.

Specialized companies in retail media, logistics, IPR and brand development and retail-led technology services become operational.

Pantaloon Retail wins the International Retailer of the Year at US-based National Retail Federation convention in New York and Emerging Retailer of the Year award at the World Retail Congress held in Barcelona.

Futurebazaar.com becomes India’s most popular shopping portal.

2008 :- Future Capital Holdings becomes the second group company to make a successful Initial Public Offering in the Indian capital markets.

Big Bazaar crosses the 100-store mark, marking one of the fastest ever expansion of a hypermarket format anywhere in the world.

Total operational retail space crosses 10 million square feet mark.

Future Group acquires rural retail chain, Aadhar present in 65 rural locations.

LINE OF BUSINESS

ORG STRUCTURE – PANTALOON RETAIL INDIA LTD.

PANTALOONPANTALOONRETAILRETAIL

PANTALOONPANTALOONRETAILRETAIL

CENTRAL &BRAND FACTORY

CENTRAL &BRAND FACTORY

PANTALOONPANTALOON

ALLALL

BLUE SKYBLUE SKY

FASHIONSTATION

FASHIONSTATION

ORG STURCTURE - FUTURE VALUE RETAIL LIMITED

FUTURE VALUE RETAIL

FUTURE VALUE RETAIL

BIG BAZAAR

BIG BAZAAR

FOOD BAZAAR

FOOD BAZAAR

ORG STRUCTURE – HOME SOLUTIONS RETAIL LIMITED

THE DEAL

• Future Group firm Pantaloon Retail has merged its wholly-owned subsidiary Future Value Retail, which runs Big Bazaar and Food Bazaar stores, with itself.

• Pantaloon Retail, which will be renamed Future Retail, will operate as a single holding entity for all the retail businesses post merger.

• It is essentially a financial reorganization, as operating profits of Big Bazaar were wiped out serving debt of Rs 2,700 crore in Future Value Retail on which the interest outgo was as high as Rs 330 crore.

• The stock of Pantaloon Retail India Ltd (PRIL) fell 24% after Future Group's promoter, announced that PRIL's fashion business would be demerged and sold to the Aditya Birla Group.

• Some analysts have expressed concern disappointed that Future Group had lost its competitive edge in the fashion space. The transaction saw 65 Pantaloons stores and 25 Pantaloons Factory Outlets being transferred to Peter England Fashions, a unit of Aditya Birla Nuvo, a company that houses most consumer-facing businesses of the Kumar Mangalam Birla helmed conglomerate

• It was sold to PEFRL (Peter England Fashion & Retail) which is a part of ABNL at 1600 crore and also with a transfer of 1600 crore

• Pantaloon retail to Aditya With a Share Swap Ratio 1:5

How to Reduce the Debt ?• D/E Ratio 0.82 and wanted it to reduce it to 0.54.• FY11 Balance Sheet Standalone: 2,173.12 Cr Debt Consolidated:6000 Cr.• Post-demerger, the holding of ABNL in PRIL through its subsidiary PEFRL will be

50.09 per cent.• The group, laden with an estimated consolidated debt of Rs. 6,000 crore, • Have finalized plans to exit from stationery joint venture with US-based Staples by

selling its entire stake to the partner for up to Rs. 170 crore.

• It is also mulling stake sale in Future Generali Insurance, a JV with Italian insurer Generali Group.

• The group may hive off part of its 70% stake in Future Supply Chain (FSC), a supply management firm. The remaining 30% is held by Hong Kong-based Li & Fung, which is also interested in hiking its stake in the company.

• In June, the group had sold majority stake in Future Capital Holdings to private equity firm Warburg Pincus for Rs 560 crore.

Synergies

• Cost Reduction• Restore Investor Confidence (Share Prices

Rose to 153.50 ) (Currently trading at 144.50)• Reduce Debt