Kaya Ltd

It gives me great pleasure to address you as we celebrate Kaya's delightful journey of 20 years. I hope that this note finds you well. It is indeed an honour to reflect on the tremendous growth and resilience that our Company has demonstrated throughout the years. We embarked on a visionary quest to redefine the aesthetic dermatology industry and pledged to shine as an unwavering beacon of elegance, innovation, and excellence. Here's to Kaya, a guardian of grace and ingenuity, as we maintain our legacy in the next chapter of our journey, overcoming all hurdles that might come in our way.

As we navigate through the recovery from the global pandemic, I am pleased to announce that Kaya has not only regained its momentum but also achieved robust growth in the Indian market. We experienced a Y-o-Y growth of 24% making our overall collections from the Indian and Middle East markets sum up to Rs 44,243 Lakh for FY23. We have witnessed strong demand in our anti-ageing, laser hair removal, brightening and pigmentation segments, driven by pent-up consumer demand.

Embracing digital transformation has been a crucial part of our journey. We are proud to have successfully completed a comprehensive overhaul of our core tech stack for operations with the launch of Microsoft Dynamics 365 CRM and POS. This milestone has empowered us with a robust analytics backbone, providing real-time reports and dashboards to enhance operational efficiency and gain deeper insights into consumer buying behaviour.

Our AI app has continued to revolutionise our doctor consultations, enabling a more interactive approach with our clients, and enhancing the quality of our consultations. Additionally, we remain at the cutting edge of dermatology technology in India, with continued investments in technologies such as CoolSculpting, HIFU, and the Original HydraFacial. We have successfully launched an omni-channel initiative, allowing our clinics to fulfil online product orders from neighbourhood Kaya clinics on the same day. This integration of our online and offline channels further enhances the convenience and accessibility we provide to our customers.

In our pursuit of holistic wellness, we have expanded our product offerings to include nutraceuticals with a range of anti ageing, haircare ingestibles and brightening products including collagen peptide powders and capsules. This addition complements our existing range of skincare and haircare products, allowing us to offer comprehensive solutions that nourish both the inside and outside.

We are proud to see consumer confidence reflected in higher average transaction values across our product categories. This not only highlights the trust our customers place in our brand but also serves as a testament to the quality and effectiveness of our offerings.

At Kaya, we are committed to driving sustainable and profitable growth. To achieve this goal, we are diligently focusing on key growth strategies which are in implementation stage.

Fortifying existing clinics: We have embarked on a Brand refresh program which includes investing in cutting-edge technology (machines), clinic infrastructure upgrades and branding. The Brand refresh also includes actions to turnaround low-performing clinics, including cost optimisation, relocation of clinics where necessary to be more relevant to our consumers.

mproving customer acquisition and footfall: The Company is investing in marketing automation to improve its customer acquisition strategy. In addition to improve communication with our customers, the Company will improvise its CRM tools, Loyalty Programme and introduce analytical tools to drive footfall and improve customer engagement. launch of new Body vertical: In line with our commitment to innovation and growth, we have launched a new Body vertical. The initial response from customers has been very positive. We foresee this vertical becoming a key engine of growth for Kaya in the future. We are further strengthening our presence in the Hair care category. We believe the addition of these will establish Kaya as a market leader in Skin, Hair and Body

Driving product innovation: In addition to the successful launch of Nutraceuticals, we have further invested in new product development and have been continuously launching new highly efficacious products for skin, hair and body during the course of the year. expansion: To take advantage of the increasing consumption and demand in tier 2 cities, we have strategically started opening new clinics these cities. This has allowed us to reach a broader customer base and capitalise on untapped markets for further growth. All the above initiatives, I believe will help us move the Company to a sustainable path of profitability. We are confident and will continue to support the Company in achieving these goals.

I am delighted to share that Kaya has once again been recognised as a ‘Great Place to Work', as well as one of the Avtar Top 100 Best Companies for women in India and the ‘Superbrand' status for the year 2023 in the Middle East. These accolades are a testament to our commitment to fostering a positive and inclusive work environment.

Looking ahead, as our growth levers mature and new ones are introduced we are filled with optimism and enthusiasm for the future Our dedication towards innovation, technology, and customer-centricity will continue to drive our success. We remain dedicated to delivering exceptional experiences, leveraging our deep expertise in dermatology and wellness.

At the core of our success are our people, who serve as our most valuable asset. Their deep domain knowledge and extensive experience gives us a significant competitive edge as we expand within our current markets and venture into new geographies. Moreover, we are committed to continuously enhancing the skills and capabilities of our workforce to ensure their preparedness for the future. I extend my heartfelt gratitude to you, our esteemed shareholders, for your continuous support and partnership in our growth journey. Together, we have achieved significant milestones, and I assure you that we will continue to strive for excellence, creating long-term value for all stakeholders.

Thank you for your trust and confidence. Warm Regards,

Chairman and Managing Director, Kaya