EBITDA Growth Incentive

Scheme
Effective
1st April 2019

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Store Manager talking to his Associate

Dear Friend,
Did you know we
have got
something with us
which can improve
our earning
potential
I am
curious!!
what he is
talking
about…

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Here is the scheme

 The scheme is based on the

principle of continuous EBITDA
Which club you
growth measured on an LFL belong to…
basis for the Operating stores
and on a month on month
basis (current Vs previous) for
NSOs.
 The stores are categorised into
different Clubs basis EBITDA
growth range. Employees are
EBITDA Growth Monthly
eligible to earn an incentive as Range (in Lacs) Incentive Eligible
Club Role
per CSA Incentive
per the Club they qualify for. Fresh
Smart
(in Rs)
/SB
Platinum >2L >4L 1600 SM =2.5*CSA
Diamond 1 - 2L 2 - 4L 1200 ASM =2*CSA
Gold 0.5 - 1L 1 - 2L 900 Other Mgrl =1.5*CSA
Silver 0 - 0.5L 0 - 1L 500 Part Time =0.5*CSA
Let’s run through each club… 4
For LFL Stores

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EBITDA Growth Club

Let’s understand clubs with examples (all EBITDA values in lacs)

Platinum Club
Stores with >2L Growth Stores with >4L Growth
Fresh Smart/SB

Apr'19 Apr'19
Apr'18 EBITDA EBITDA Incentive for Apr'18 EBITDA EBITDA Incentive for
EBITDA EBITDA
Actual Growth CSA (in Rs) Actual Growth CSA (in Rs)
Actual Actual

2 5 3 1600 3 7.5 4.5 1600

Dimaond Club
Stores with: 1L to 2L Growth Stores with: 2L to 4L Growth
Fresh Smart/SB

Apr'19 Apr'19
Apr'18 EBITDA EBITDA Incentive for Apr'18 EBITDA EBITDA Incentive for
EBITDA EBITDA
Actual Growth CSA (in Rs) Actual Growth CSA (in Rs)
Actual Actual

2 3.5 1.5 1200 3 6.7 3.7 1200

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EBITDA Growth Club

Gold Club

Stores with: 0.5L to 1L Growth Stores with: 1L to 2L Growth

Fresh Smart/SB

Apr'18 EBITDA Apr'19 EBITDA EBITDA Incentive for Apr'18 EBITDA Apr'19 EBITDA EBITDA Incentive for
Actual Actual Growth CSA (in Rs) Actual Actual Growth CSA (in Rs)

2 2.8 0.8 900 5 6.75 1.75 900

Silver Club

Stores with: 0L to 0.5L Growth Stores with: 0L to 1L Growth

Fresh Smart/SB

Apr'18 EBITDA Apr'19 EBITDA EBITDA Incentive for Apr'18 EBITDA Apr'19 EBITDA EBITDA Incentive for
Actual Actual Growth CSA (in Rs) Actual Actual Growth CSA (in Rs)

4 4.2 0.2 500 3 3.85 0.85 500

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For NSO Stores

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• The scheme is based on a month on month EBITDA growth basis (current
Vs previous month)
• It will be applicable from 2nd month of its operation
• For the 2nd month incentive being calculated on the growth (EBITDA
achievement Vs Budget) for the month in line with the below pay-out
matrix and
• From 3rd month onwards basis month on month (current Vs previous)
EBITDA actual growth
EBITDA Growth Monthly
Range (in Lacs) Incentive Eligible
Club Role
Smart per CSA Incentive
Fresh (in Rs)
/SB
Platinum >2L >4L 1600 SM =2.5*CSA
Diamond 1 - 2L 2 - 4L 1200 ASM =2*CSA
Gold 0.5 - 1L 1 - 2L 900 Other Mgrl =1.5*CSA
Silver 0 - 0.5L 0 - 1L 500 Part Time =0.5*CSA

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EBITDA Growth Clubs

Let’s understand clubs with examples (all EBITDA values in lacs)

Platinum Club
Stores with >2L Growth Stores with >4L Growth
Fresh Smart/SB

Apr'19 EBITDA May'19 EBITDA EBITDA Incentive for Apr'19 EBITDA May'19 EBITDA EBITDA Incentive for
Actual (Previous Actual (Current Growth CSA (in Rs) Actual (Previous Actual (Current Growth CSA (in Rs)
Month) Month) Month) Month)

2 5 3 1600 3 7.5 4.5 1600

Dimaond Club

Stores with: 1L to 2L Growth Stores with: 2L to 4L Growth

Fresh Smart/SB

Apr'19 EBITDA May'19 EBITDA EBITDA Incentive for Apr'19 EBITDA May'19 EBITDA EBITDA Incentive for
Actual (Previous Actual (Current Growth CSA (in Rs) Actual (Previous Actual (Current Growth CSA (in Rs)
Month) Month) Month) Month)

2 3.5 1.5 1200 3 6.7 3.7 1200

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EBITDA Growth Clubs

Gold Club

Stores with: 0.5L to 1L Growth Stores with: 1L to 2L Growth

Fresh Smart/SB

Apr'19 EBITDA May'19 EBITDA EBITDA Incentive for Apr'19 EBITDA May'19 EBITDA EBITDA Incentive for
Actual (Previous Actual (Current Growth CSA (in Rs) Actual (Previous Actual (Current Growth CSA (in Rs)
Month) Month) Month) Month)

-2 0.8 0.8 900 -5 -3.25 1.75 900

Silver Club

Stores with: 0L to 0.5L Growth Stores with: 0L to 1L Growth

Fresh Smart/SB

Apr'19 EBITDA May'19 EBITDA EBITDA Incentive for Apr'19 EBITDA May'19 EBITDA EBITDA Incentive for
Actual (Previous Actual (Current Growth CSA (in Rs) Actual (Previous Actual (Current Growth CSA (in Rs)
Month) Month) Month) Month)

4 4.2 0.2 500 3 3.85 0.85 500

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Super Club

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EBITDA Growth Clubs: Super Club

To bring in sharper differentiation

amongst high performing stores Did you also
with continuous growth, a special qualify for
Super club…
incentive over and above EBITDA
growth incentive has been
introduced. Basis store area and
current month EBITDA, stores are
classified into the following Super
Clubs:
Format Fresh Smart/SB Super Club monthly
Area (in EBITDA (in EBITDA (in Incentive per Staff
Sqft) Lacs) Lacs) (in Rs)
- >3 - 500
<15000 - >6 800
>15000 - >10 1000

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Super Club

Let’s understand clubs with examples (all EBITDA values in lacs)

Fresh/Smart/SB

Store Code Apr'18 Apr'19 Super club

Area Area (in EBITDA EBITDA
Format (for EBITDA EBITDA Status Incentive for
Range sqft) Growth Growth
example) Actual Actual Staff (in Rs)

Fresh - A 5 3.1 -1.9 No Not Qualified 0

Fresh - - B 4 3.1 -0.9 No Not Qualified 0

Fresh - C 3 3.1 0.1 Yes Qualified 500

Smart 11000 D 10 6.1 -3.9 No Not Qualified 0

Smart <15000 12000 E 8 6.1 -1.9 No Not Qualified 0

Smart 14500 F 5 6.1 1.1 Yes Qualified 800

Smart 15500 G 12 10.1 -1.9 No Not Qualified 0

Smart >15000 20000 H 11 10.1 -0.9 No Not Qualified 0

Smart 30000 I 9 10.1 1.1 Yes Qualified 1000

*The same logic applies on NSO stores where the current month is compared with the previous month. 14
Wow!!That’s a great scheme.
And what about the existing
incentive schemes such as
Sales & EBITDA, Profitability,
F&V and MOPR?

Well, good
question. From
now on we will
have only 3
schemes.
They are:
1. Sales
2. EBITDA Growth
3. MOPR.
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Lets work together and
Grow

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