Metro Brands Ltd

Dear Shareholders,

I am pleased to present the 46th Annual Report for Metro Brands Limited for the financial year 2022-23, marking the first full year of operations as a listed entity. The transition from private to public ownership has been seamless, and with appropriate governance frameworks and effective organisational structures in place, your Company is now firmly positioned to continue its journey of long-term value creation for all stakeholders.

MBL has a long history of stability and profitable growth, built on the foundation of strong brands, exceptional products, a robust physical presence and excellent service. Throughout FY 2022-23, your Company made significant strides in advancing its strategic priorities, resulting in a solid performance across both financial and non financial indicators. With the threat of Covid-19 finally behind, your Company's stores saw normalised operations for the entirety of the year, enabling customers to fully benefit from its total retail network.

Further, the record addition of new stores during the year and foray into emerging cities, along with consolidation of presence in existing markets, puts your Company in a stronger position to reach out to more customers across the country.

Consistent investments in developing digital capabilities have enabled your Company to respond to the growing preference for online purchases. One of the most notable achievements of your Company as a listed entity is the successful transformation of its business model, offering customers a choice of easy and convenient, digital-led shopping channels, in addition to the enjoyable experience of shopping in its widespread physical stores, served by friendly and knowledgeable staff.

Your Company's e-commerce business continues to go from strength to strength, a testament to the underlying appeal of its . product offering, as well as the successful adoption of the latest digital tools for delivering a personalised experience.

With a legacy spanning over six decades, your Company has carved a rich heritage as a trusted family footwear store. Over time, new brands, both in-house and from third parties, have been strategically introduced to cater to an ever-expanding customer base and enhance their shopping experience. The past year was particularly eventful, with the addition of renowned sportswear brands Fila and Proline to the brand portfolio, following the successful acquisition of Cravatex Brands Limited.

To advance its high-growth ambition, your Company has been strengthening its leadership team and organisational structure. With the successful integration of sportswear brands into its portfolio, your Company's Board appointed Ms. Alisha Malik as the President of the Sports Division. This appointment adds to her existing role as the President of E-commerce and Customer Relationship Management, where her expertise in digital and data has been instrumental in driving positive transformation. The Board has full confidence that under her capable leadership, the Sports Division will play a pivotal role in contributing to the overall business performance.

Moving forward, the outlook for India's retail industry is promising. The dynamic consumption landscape, bolstered by favourable demographics, a burgeoning middle class, rising disposable incomes, urbanisation, and growing aspirations, sets a strong foundation for the growth of India's retail sector. Moreover, the increasing preference for branded products, synonymous with the organised segment, is reshaping the industry dynamics. The expanding digital connectivity in India is also propelling the e-commerce sector to new heights. As India's leading footwear retailer, catering to diverse customer segments across platforms, your Company is poised to capitalise on these unfolding opportunities.

Your Company is deeply committed to maintaining a delicate balance between the interests of its customers, employees, suppliers, shareholders, society and the environment. Fostering sustainable lifestyles is a key focus, and your Company's long-term vision is to recycle a pair of shoes for every pair sold. I am delighted to share that significant progress was made in this regard during the year. Building on a successful pilot project in FY 2021-22, where 100 tonnes of footwear were recycled, your Company processed approximately 900 tonnes (equivalent to about 2 million pairs) of old and discarded footwear in an eco-friendly manner in FY 2022-23. Your Company is also working with trusted suppliers to expand its range of sustainable footwear products. Other areas of focus include harnessing solar energy at the warehouses, empowering weaker sections of the community and supporting the cause of education among underprivileged children.

Moving forward, the outlook for India's retail industry is promising. The dynamic consumption landscape, bolstered by favourable demographics, a burgeoning middle class, rising disposable incomes, urbanisation, and growing aspirations, sets a strong foundation for the growth of India's retail sector.

In conclusion, FY 2022-23 marks an immensely satisfying year for your Company. Through well-thought-through strategic steps, your Company is committed to maintaining this momentum. Backed by a strong balance sheet, your Company possesses the resources and agility to invest in opportunities for growth while ensuring disciplined, long-term returns. The business focus remains on footwear retailing, as your Company works towards realising its vision of becoming India's largest specialty footwear and accessories retailer.

Personally, and on behalf of the Board, I would like to thank all the employees and supplier partners of your Company for their hard work and dedication. I extend my heartfelt appreciation to the customers for their continued patronage. I am also grateful to all the investors for their belief in MBL's story and potential. Your Company looks to the future with ambition and remains determined to growing the business for the long-term benefit of all stakeholders.