Redington Limited · NSE:REDINGTON
Redington — Investor Presentation (May 2016)
37 slides from Redington's investor presentation, May 2016
Slide 1: Redington (India) Limited Corporate Overview
REDINGTON (INDIA) LIMITED Corporate Overview May 2016
Slide 2: About Us, Subsidiaries, Board & Management, Performance, Competition
About Us Subsidiaries Board & Management Performance Competition 2
Slide 3: Our Vision and Mission
Our Vision To become the leading supply chain services provider in emerging markets To grow through Our Mission innovation nimble adaptation to change prudent risk management 3
Slide 4: Our Business
Our Business DISTRIBUTION LOGISTICS SUPORT SERVICES IT – Consumer IT - Enterprise Telco Verticals Offerings PCs & Accessories Commercial PCs, Smartphones Warehousing Hardware & Printers Software support Transportation Tablets Feature phones Services Storage & Servers Import Clear
Slide 5: Long Lasting relationship with 200+ vendors
Long Lasting relationship with 200+ vendors IT BRANDS TELCO BRANDS PERIPHERALS COMPONENTS MOBILE NETWORKING ENTERPRISE SYSTEMS SOFTWARE 5
Slide 6: End to end supply chain solutions
End to end supply chain solutions 15 % Margin 4 ~ 6 % Margin 9 ~ 11% Margin CHANNELS CUSTOMER PROCUREMENT Online, Retail Manufacturers Chain/LFRs, End User, SMB, & Dealer, VAR/ Corporate, Govt Brand owners System Integrator Warehousing Credit to After Sales Distribution & Logistics Resellers Service
Slide 7: Glo-cal Presence
Glo- cal Presence SOUTH ASIA MIDDLE EAST AFRICA TURKEY Bahrain Egypt Nigeria Turkey India Oman Ghana Rwanda Srilanka Qatar Senegal Singapore Kazakshtan S.Africa Saudi Arabia Kenya Bangladesh Tanzania UAE Libya Morocco Uganda Iraq* Angola* 7 Subsidiaries 18 Subsidiaries 23 Subsidiaries 5 Subsidiaries
Slide 8: Our network
Our network META & CIS SOUTH ASIA Channel Partners 11,000 30,676 Sales Offices 27 60 Warehouses 24 84 Service Centres 26 70 Partner Service Centres 22 252 8
Slide 9: About Us, Subsidiaries, Board & Management
About Us Subsidiaries Board & Management Performance Competition 9
Slide 10: Snapshot – ProConnect
Snapshot About Management Infrastructure ProConnect Integrated Logistics Professionally managed 84 Warehouses across services provider Board India 2 ADCs – Chennai & Well poised to tap the Dedicated senior Kolkatta booming logistics market management team 1.7 Mio sq ft in India warehou
Slide 11: Automated Distribution Centres
Automated Distribution Centres CHENNAI Kolkata Dubai Chennai Land Area – 13.76 Acres Land Area* – 5.17 Acres Land Area – 11.56 Acres Operational since Feb ’14 Operational since Sep ’10 Operational since July ’09 Capacity – 1.50 lakhs sq ft Capacity – 94,723 sq ft Capacity – 3.35 lakhs sq ft * Long l
Slide 12: Business Performance – FY16
Business Performance – FY16 ₹ in million 59%^ ^ 66% 95.5 ^ 81% 147.0 ^ 45% 176.7 PAT 1,121.5 PBT EBITDA Redington Outside Biz Revenue 26% 30% 29% 32% 38% 48% 53% 53% 74% 70% 71% 68% 62% ^ growth over previous year 52% 47% 47% 12
Slide 13: 75+ Customers…
75+ Customers… IT Telecom & Consumer Electrical & Chemicals Engineering e commerce Infrastructure Durables Electronics Office Automation Pharmaceutical FMCG 4PL Garments Retail 13
Slide 14: Snapshot - Turkey
Snapshot - Turkey About Arena Acquisition Listed in the Istanbul Stock Exchange (Turkey); Redington holds 49.4% stake provides training, consulting Authorised technology product distributor & other value added services for 43 global brands Serves more than 7,500+ resellers through provides p
Slide 15: About Us, Subsidiaries, Board & Management
About Us Subsidiaries Board & Management Performance Competition 15
Slide 16: Board of Directors
Board of Directors Independent Directors Executive Directors Prof. Ramachandran V. S. Hariharan Keith WF Bradley Suchitra Rajagopalan Raj Shankar M Raghunandan Chairman Ex. V.P Hewlett-Packard Ex.President Ingram Micro Director Managing Director Whole Time Director Professor Corporate Policy Singapo
Slide 17: Our Experienced Execution Team
Our Experienced Execution Team Raj Shankar Managing Director P S Neogi E H Kasturi Rangan Ramesh Natarajan Dr. R. Arunachalam S V Krishnan Stephen Aranha Joint COO- IT Joint COO- Non -IT Senior President Senior Vice President, CFO, India President Division, India Division, India India ProConnect Log
Slide 18: About Us, Subsidiaries, Board & Management
About Us Subsidiaries Board & Management Performance Competition 18
Slide 19: Financial Snapshot
Financial Snapshot ₹ in million REVENUE EBIDTA PAT 3,54,762 4,257 CAGR CAGR 3,16,227 CAGR 8,176 16% 17% 17% 3,918 7,619 2,80,051 7,196 2,42,104 6,842 3,367 6,334 3,231 2,12,220 2,927 1,67,227 4,717 2,260 1,32,777 1,23,760 3,657 1,843 1,05,425 3,296 1,597 88,539 2,590 1,361 1,985 1,017 *Post acquisit
Slide 20: Consolidated Financials
Consolidated Financials ₹ in million Particulars FY16 FY15^^* FY14^ FY 13 FY 12 FY 11* FY 10 FY 09 FY 08* FY 07 Total Revenue 354,762 3,16,227 2,80,051 2,42,104 2,12,220 1,67,227 1,32,777 1,23,760 1,05,425 88,539 EBIDTA 8,175 7,619 7,196 6,842 6,334 4,717 3,657 3,296 2,590 1,985 PAT 4,257 3,918 3,36
Slide 21: Performance by Market
Performance by Market ₹ in million REVENUE PAT 12.2% 10.1% 354,762 4,257 316,226 3,865 2,177 18.7% 1,901 14.4% 2,20,784 1,86,079 2.9% 5.9% 2,080 1,964 1,30,147 1,33,978 FY15 FY16 FY15 FY16 India Overseas India Overseas 21
Slide 22: Revenue by Vertical
Revenue by Vertical 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 5% 8% 9% 14% 18% 16% 18% 19% 21% 23% 93% 90% 89% 84% 80% 82% 80% 79% 77% 75% FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY16 IT Non IT Service 22
Slide 23: Geographical Contribution
Geographical Contribution REVENUE PAT 39% 37% 38% 48% 47% 45% 44% 47% 52% 52% 51% 48% 48% 51% 53% 55% 57% 59% 56% 62% 61% 63% 62% 52% 53% 55% 56% 53% 48% 48% 49% 52% 52% 49% 47% 45% 43% 41% 44% 38% India Overseas 23
Slide 24: Free Cash Flow Statement
Free Cash Flow Statement ₹ in million Particulars FY16 FY15 Profit Before Taxation 5,940 5,555 Non-cash items 822 806 Change in Working Capital (8,394) (3,790) Direct Tax Paid (1,814) (1,054) Outflow of Finance Cost 1,55.9 1,353 Net Cash Flow from Operations (1,886) 2,868 Capex (573) (506) Dividend
Slide 25: Working Capital Days
Working Capital Days 59 60 58 57 58 57 58 56 53 54 53 53 51 52 52 47 48 48 40 39 40 39 38 38 38 36 35 35 34 33 31 31 32 32 31 30 FY 11 FY 12 FY 13 FY 14 FY 15 Q1FY16 Q2FY16 Q3FY16 Q4FY16 Inventory Days Debtor Days Creditor Days Working Capital Days 25
Slide 26: Dividend Distribution
Dividend Distribution “Dividend Policy: 20% payout on profits earned” 105% 95% On face value of ` 2 per share 55% 50% 45% 40% 35% 20% 20% FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16^ ^ Subjected to approval of shareholders in the ensuing AGM 26
Slide 27: Provisions
Provisions Particulars FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY15 FY16 Provision for AR-% of 0.07% 0.05% 0.11% 0.14% 0.11% 0.06% 0.11% 0.12% 0.10% Sales Provision for Inventory -% 0.04% 0.11% -0.01% 0.12% -0.06% 0.02% 0.04% 0.11% 0.05% of Sales 0.15% 0.14% 0.12% 0.11% 0.11% 0.12% 0.11% 0.11% 0.1
Slide 28: Top 5 Vendors – Consolidated
Top 5 Vendors – Consolidated 43% 41% 44% 50% 55% 58% 4% 4% 4% 7% 5% 5% 9% 4% 7% 9% 8% 3% 4% 7% 3% 3% 5% 1% 3% 2% 7% 11% 13% 15% 34% 30% 28% 26% 25% 24% FY 11 FY 12 FY 13 FY 14 FY 15 FY16 HP Apple Lenovo Samsung Microsoft Others 28
Slide 29: Shareholding Pattern
Shareholding Pattern Others Others Mutual Funds 8.1% Mutual Funds 7.6% 15.7% 18.9% Harrow Investment Harrow Investment Holding Limited Holding Limited 13.3% 13.3% Standard Chartered Standard Chartered Private Equity Private Equity 11.9% 11.9% Synnex Mauritius Synnex Mauritius Limited Limited 23.6% 2
Slide 30: Prominent Shareholders as on 13 May 2016
Prominent Shareholders as on 13 May 2016 S. No Name of the Shareholder Shareholding % 1 Synnex (Mauritius) Limited 23.6% 2 Harrow Investment Holding Limited 13.3% 3 Standard Chartered Private Equity (Mauritius) Limited 11.9% 4 Fidelity (FIL) 7.2% Morgan Stanley 6.5% Top 50 5 6 Reliance Capital Trust
Slide 31: REDIL Stock Performance vs. Index
REDIL Stock Performance vs. Index REDIL @ BSE REBASED BSE MIDCAP REBASED 110 100 90 80 70 110 REDIL @ NSE REBASED NIFTY 200 REBASED 100 90 80 70 31
Slide 32: About Us, Subsidiaries, Board & Management
About Us Subsidiaries Board & Management Performance Competition 32
Slide 33: Competitive Landscape
Competitive Landscape Global Players India Dubai Ingram has been acquired by Middle East, Africa & Turkey Tianjin Tianhai, a Chinese Corporation Ingram Micro and Arrow present in the Middle East Ingram Micro and Avnet present among Global Local distributors such as Players BDL, Metra, Logi
Slide 34: Top 50 IT Distributors – India
Top 50 IT Distributors – India Revenue Rs. in Cr Revenue Rs. In Crore Rank Company Rank Company FY15 FY14 FY13 FY15 FY14 FY13 1 Ingram Micro 15,823 14,128 12,024 26 Sakri IT Solutions 230 180 145 2 Redington 14,610 13,657 11,746 27 Datamation Services 228 228 225 3 HCL Infosystems 6,239 7,267 9,885
Slide 35: Top 15 IT Distributors – Middle East
Top 15 IT Distributors – Middle East Company Position 2014 2013 Auditor Staff Redington Gulf FZE Same $2.62bn $ 2.32bn Deloitte & Touché 1,750 BDL Group Same $ 903m $ 770m Dr. Usaama Tabbara 322 Metra Computer FZCO Same $ 830m $ 723m Ernst & Young 800 Global Distribution FZE $ 607.99m $ 464m Moore S
Slide 36: In Closing
In Closing New business verticals Robust credit Strong brand management management Process and workflow Wider reach and superior driven logistics capabilities Market share gain Brand acquisition Long standing vendor Scalable business model relationship Great team – Ability and experience to stabilit
Slide 37: Thank you
Thank you ¥REDINGTON