Redington Limited · NSE:REDINGTON
Redington — Q3 FY2022 Earnings Presentation
48 slides from Redington's earnings presentation, Feb 8, 2022
Slide 1: Exchange cover letter for investor presentation
Registered & Corporate Office Redington (India) limited Redington House, Centre Point, Plot. No.11 [SP). Thiru.Vi.Ka Industrial Estate, Guindy, Chennai- 600032. Tamil Nadu, INDIA Tel : +91 44 4224 3353 Fax : +91 44 2225 3799 CIN: L52599TN1961PLC028758 www.redingtongroup.com February 8, 2022 The Nati
Slide 2: Q3FY22 Earnings Presentation
REDINGTON (INDIA) LIMITED Q3FY22 Earnings Presentation Dec 2021
Slide 3: Disclaimer
Disclaimer This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Redington India Limited’s future business developments and economic performance. While these forw
Slide 4: Financial Highlights
Financial Highlights “Record quarter in the history of Redington – Highest PAT ever” • Q3FY22 – On a Global basis, Revenue# degrew by 2% while EBITDA grew by 22% and PAT grew by 103%* • India – Revenue# degrew by 7%, EBITDA grew by 10% and PAT grew by 261%* • Overseas – Revenue# grew by 2%, EBITDA g
Slide 5: Financial Highlights: India Business
Financial Highlights INDIA BUSINESS • During the quarter, • India Distribution – Revenue degrew by 7%, EBITDA grew by 12% and PAT grew by 307%* • Revenue performance largely led by IT segment • WC days stood at 8 days in Q3FY22 as against 11 days in Q3FY21 • ROCE is strong at 103.3% and ROE at 31.2%
Slide 6: Financial Highlights: Overseas Business
Financial Highlights OVERSEAS BUSINESS • During the quarter, • Revenue grew by 2% but grew strong double digit at EBITDA and PAT level • META revenue performance largely led by IT Enterprise segment • SSA revenues impacted by degrowth in SSA on account of shift of few biz (at vendor end) to India •
Slide 7: Q3FY22 Highlights
Q4FY18 Highlights Q3FY22 Highlights Connecting The Dots Transformation from ‘Product’ to ‘Utility of Product’ 6
Slide 8: Q3FY22 Redington Global Performance
Q3FY22 Redington Global Performance ₹ in mn REVENUE# EBITDA PAT* 2% 22% 103% 1,70,032 1,66,198 5,443 3,881 4,465 1,916 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Note: #Q3 Revenues growth as per Gross a/c – Global:2% Note: *Base qtr PAT contains one-off VSV tax provision of Rs 890mn (Mainly Gift of s
Slide 9: Q3FY22 Performance by Market
Q3FY22 Performance by Market ₹ in mn REVENUE# EBITDA PAT* 7% 10% 261% 77,295 71,565 INDIA 1,400 1,854 2,043 387 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 2% 62% OVERSEAS 30% 92,737 94,633 3,400 2,481 2,611 1,529 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Note: #Q3 Revenues growth as per Gross a/c – I
Slide 10: Q3FY22 Contribution by Market
Q3FY22 Contribution by Market REVENUE EBITDA PAT* 55% 57% 58% 62% 64% 80% 45% 43% 42% 38% 36% 20% Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 INDIA OVERSEAS INDIA OVERSEAS INDIA OVERSEAS Note: *Base qtr PAT in India contains one-off VSV tax provision of Rs 890mn (Mainly Gift of shares case) 9
Slide 11: Q3FY22 India Performance
Q3FY22 India Performance ₹ in mn REVENUE EBITDA PAT* 7% 12% DISTRIBUTION 307% 75,926 70,281 1,370 1,719 1,922 336 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 6% 10% 41% SERVICES 1,369 1,284 135 121 51 30 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Note: Services represents ProConnect India Note: *Base q
Slide 12: Q3FY22 Revenue Performance by Verticals
Q3FY22 Revenue Performance by Verticals INDIA OVERSEAS GLOBAL 2% 2% 1% 1% 1% 1% 28% 32% 41% 40% 36% 41% 70% 67% 57% 59% 63% 58% Q3FY21 Q3FY22 Q3FY21 Q3FY22 Q3FY21 Q3FY22 IT Mobility Services IT Mobility Services IT Mobility Services Note: Upon re-grouping, only smartphones are shown under Mobility 1
Slide 13: Q3FY22 Working Capital Days
Q3FY22 Working Capital Days INDIA OVERSEAS GLOBAL 3 0 3 5 4 5 15 11 12 11 12 12 3 8 7 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 Q3FY21 Q2FY22 Q3FY22 13 12
Slide 14: Q3FY22 Free Cash Flow Statement
Q3FY22 Free Cash Flow Statement ₹ in mn Particulars Q3FY21 Q2FY22 Q3FY22 Profit Before Taxation 3,716 3,908 4,867 Non-cash items 573 372 594 Outflow of Finance Cost 173 217 128 Changes in Working Capital (1,299) 12,563 (9,359) Direct Tax Paid (437) (857) (479) Net Cash Flow from Operations 2,726 16,
Slide 15: Q3FY22 Top Vendors
Q3FY22 Top 5 Vendors REVENUE 35% 33% OTHERS SAMSUNG 4% 5% 5% 6% LENOVO 7% 9% DELL EMC 9% 12% HP Inc APPLE 40% 35% Q3FY21 Q3FY22 14 15
Slide 16: 9MFY22 Performance
Q3FY18 Highlights 9MFY18 Highlights 9MFY22 Performance Connecting The Dots Transformation from ‘Product’ to ‘Utility of Product’ 15
Slide 17: 9MFY22 Redington Global Performance
9MFY22 Redington Global Performance ₹ in million REVENUE# EBITDA PAT* 9% 38% 104% 4,54,071 4,15,112 13,660 9,876 9,320 4,564 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 Note: #9M Revenues growth as per Gross a/c – Global:11% Note: *Base 9M PAT contains one-off VSV tax provision of Rs 890mn (Mainly Gif
Slide 18: 9MFY22 Performance by Market
9MFY22 Performance by Market ₹ in mn REVENUE# EBITDA PAT* 18% 44% 186% 1,94,416 1,64,564 5,500 3,677 INDIA 3,815 1,285 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 4% 72% OVERSEAS 35% 2,50,548 2,59,655 8,160 5,643 6,061 3,279 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 Note: #9M Revenues growth as per Gr
Slide 19: 9MFY22 Contribution by Market
9MFY22 Contribution by Market REVENUE EBITDA PAT* 60% 57% 61% 60% 61% 72% 40% 43% 39% 40% 39% 28% 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 INDIA OVERSEAS INDIA OVERSEAS INDIA OVERSEAS Note: *Base 9M PAT in India contains one-off VSV tax provision of Rs 890mn (Mainly Gift of shares case) 20
Slide 20: 9MFY22 India Performance
9MFY22 India Performance ₹ in mn REVENUE EBITDA PAT* 19% 50% DISTRIBUTION 199% 1,90,738 1,60,945 5,139 3,583 3,415 1,197 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 +12%# +12%# +138%# 2% 10% 6% SERVICES 3,619 3,678 400 361 88 94 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 Note: #Services excluding Ensur
Slide 21: 9MFY22 Revenue Performance by Verticals
9MFY22 Revenue Performance by Verticals INDIA OVERSEAS GLOBAL 2% 2% 1% 1% 1% 1% 21% 31% 37% 34% 35% 29% 77% 67% 65% 64% 70% 62% 9MFY21 9MFY22 9MFY21 9MFY22 9MFY21 9MFY22 IT Mobility Services IT Mobility Services IT Mobility Services Note: Upon re-grouping, only smartphones are shown under Mobility N
Slide 22: 9MFY22 Working Capital Days
9MFY22 Working Capital Days INDIA OVERSEAS GLOBAL 2 1 7 6 5 5 16 16 14 14 13 9 11 3 8 9MFY21 H1FY22 9MFY22 9MFY21 H1FY22 9MFY22 9MFY21 H1FY22 9MFY22 24 21
Slide 23: 9MFY22 Free Cash Flow Statement
9MFY22 Free Cash Flow Statement ₹ in mn Particulars 9MFY21 H1FY22 9MFY22 Profit Before Taxation 7,433 6,921 11,788 Non-cash items 1,463 883 1,476 Outflow of Finance Cost 768 400 528 Changes in Working Capital 20,535 6,662 (2,696) Direct Tax Paid (1,369) (1,524) (2,003) Net Cash Flow from Operations
Slide 24: 9MFY22 Top Vendors
9MFY22 Top 5 Vendors REVENUE 41% 36% OTHERS SAMSUNG 5% LENOVO 4% 7% 6% DELL EMC 7% 9% HP Inc 11% 13% APPLE 31% 30% 9MFY21 9MFY22 27 23
Slide 25: Shareholding Pattern
Shareholding Pattern Mutual Others Funds Others Mutual Funds 15.8% 11.3% 19.3% 10.9% Affirma Synnex Mauritius Capital Limited 14.2% 24.1% Synnex Mauritius Limited 24.1% FIIs & FPIs 45.3% FIIs & FPIs 35.0% Sep-2021 Dec-2021 2824
Slide 26: Investor Contacts
Investor Contacts M. Muthukumarasamy Compliance Officer Redington House, “Centre Point”, Plot No. 11 (SP), Thiru. Vi. Ka. Industrial Estate, Guindy, Chennai – 600032 https://www.redingtongroup.com Sowmiya M Senior Manager – Investor Relations Connecting The Dots sowmiya.manickam@redington.co.in Tran
Slide 27: Corporate Presentation
Corporate Presentation Dec 2021
Slide 28: Disclaimer
Disclaimer This presentation contains “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Redington India Limited’s future business developments and economic performance. While these forw
Slide 29: About Redington
About Redington We are a Services & Solutions company • An Emerging Markets Multinational with presence across 37 markets • Distributor → Entire gamut of IT products, Smartphones, Non-tech products, etc • Service & Solutions → Enterprise professional services, Cloud Managed Services, Logistics Servi
Slide 30: Our Business
Our Business PCs, Laptops, Tablets Printers & Print Supplies Smartphones A leading distributor of Rich experience in distributing Distributors of wide consumer & commercial PCs, printers & related consumables assortment of smartphones desktops, laptops, iPads and and accessories MacBooks Networking
Slide 31: Our Presence
Our Presence TURKEY 1 market Enviable “In country” presence in 37 markets No.1 or No.2 position across all markets MIDDLE EAST INDIA 8 markets 1 market “High potential” markets SSA 5 markets AFRICA 22 markets Presence across product categories Portfolio of Marquee brands 5
Slide 32: Our Brands & Channel Partners
Our Brands & Channel Partners CHANNEL PARTNERS ❑ Sub Distributors ❑ Retailers ❑ Large Format Retailers ❑ Multi Brand Retailers ❑ Branded Stores ❑ Resellers ❑ Corporate Resellers ❑ Value Added Resellers ❑ System Integrators ❑ Independent Software Vendors (ISVs) ❑ E-Commerce Players 11 Enviable Partne
Slide 33: Our Board Of Directors
Our Board Of Directors Independent Directors CHAIRMAN Prof. Ramachandran V. S. Hariharan Keith WF Bradley B Ramaratnam Anita P Belani Professor, Corporate Ex. Vice President, Ex.President, Professional Sr Business & Human Policy & Strategy Hewlett-Packard, Ingram Micro, Director Capital Leader IIM,
Slide 34: Our Shareholders
Our Shareholders HDFC Mutual Fund Fidelity Management & Research (FMR) Others, Synnex ICICIPru Life Insurance 19.3% Mauritius Ltd, 24.1% Affirma Capital Mutual Franklin Templeton Investments Funds, 11.3% Massachusetts Institute Of Technology Investment Management Company FIIs & FPIs, 45.3% The Vangu
Slide 35: Our Strategy
SEAMLESS PARTNERSHIPS Our Strategy
Slide 36: Technology Trends in the future
Technology Trends in the future Ranking of the technology trends in the future by Respondents Note: GTDC commissioned Vation Ventures who surveyed and interviewed key constituents from distributors and their OEM vendor partners. The majority of study participants – nearly 69% – possess greater than
Slide 37: Key Tech trends and Redington possibility
Key Tech trends and Redington possibility In 2022 : Global ICT spend growth at 5.5%, India $98Bn @ 6% and MENA $177Bn @ 4%. Technology Trends Hybrid Cloud 5G Cyber Security Digital economy Emerging Tech Tech Growth IND: 25.0% META: 10.4 M IND: 20.0% IND: 26.0% IND: 20.2% CAGR % (2021-26) META: 17.2%
Slide 38: Biz model trends and Redington opportunity
Biz model trends and Redington opportunity Consumption Omni-Channel Investment Diversification Work Location models Business Model Products to Services Physical to Online Emerging Tech M&A, Product, Geo Hybrid work Model Trends • Build capability to • Develop a strong • Innovate, invest on • Automat
Slide 39: Changing Distribution needs & our preparedness
Changing Distribution needs & our preparedness ✓ ✓ Redington’s preparedness ✓ ✓ Respondents ✓ ✓ ✓ ✓ ranked the need ✓ for the following ✓ ✓ ✓ distribution go-to- ✓ ✓ market services in the future Note: GTDC commissioned Vation Ventures who surveyed and interviewed key constituents from distributors
Slide 40: Our Strategy
Our Strategy Addressing the technology needs of the Emerging Markets • Continue being a key player in the existing tech practices Business model re-invention • From brick & mortar to omni channel play • From products to services play • Moving towards XaaS revolution • Consistent & continuous value a
Slide 41: Our growth vectors & objectives
Our growth vectors & objectives GROWTH VECTORS KEY OBJECTIVES Strengthening our Services & Solutions capabilities Being No.1 distributor across products, brands & markets Making Redington a digital organization Being a Great Place to Work Emerging as an ESG Leader 16
Slide 42: Financial Performance
Gg Redington SEAMLESS PARTNERSHIPS Financial Performance
Slide 43: Performance Since Listing
FY 07 86,672 FY 08* 1,03,699 FY 09 1,19,186 FY 10 1,31,622 FY 11* 1,63,734 CAGR 14% FY 12 2,07,799 FY 13 2,34,462 FY14^ 2,72,441 FY 15 3,07,361 FY 16 3,44,198 REVENUE FY 17 3,97,362 FY 18 4,16,417 FY 19 4,65,994 FY 20 5,15,138 FY21 5,70,416 ₹ in mn FY21 PAT has been restated to provide RCS merger ef
Slide 44: Performance Snapshot
Performance Snapshot Revenue 5,70,416 7,583 EBITDA 14,390 PAT ₹ in mn ₹ in mn ₹ in mn FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 WC days ROE 16.5% ROCE 36.5% 14 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Pr
Slide 45: Value Creation for our Shareholders
Value Creation for our Shareholders EPS BOOK VALUE/SHARE PAYOUT TO SHAREHOLDERS* In ₹ In ₹ Avg Payout @ ~39% CAGR 13% CAGR 13% 126 of profits earned 19.5 110 60% 100 *53% 88 13.2 12.8 79 12.0 11.6 37% 67 10.6 32% 20% 20% FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 16 F
Slide 46: 9MFY22 Performance Snapshot
9MFY22 Performance Snapshot REVENUE# EBITDA PAT* 9% 38% 104% 9MFY22: Rs.4,54,071 mn 9MFY22: Rs.13,660 mn 9MFY22: Rs.9,320 mn 9MFY21: Rs.4,15,112 mn 9MFY21: Rs.9,876 mn 9MFY21: Rs.4,564 mn WC DAYS ROE ROCE^ 13 days 24.1% 68.2% 9MFY21: 14 days 9MFY21: 13.6% 9MFY21: 31.6% INVENTORY CHARGE AR PROVISION
Slide 47: Contact Us
CONTACT US Compliance Officer M. Muthukumarasamy Redington (India) Limited Redington House, Centre Point, Plot No. 11 (SP), Thiru. Vi. Ka. Industrial Estate, Guindy, Chennai 600 032 https://www.redingtongroup.com CIN - L52599TN1961PLC028758 Investor Contact Sowmiya M Senior Manager – Investor Relati
Slide 48: Thank You
THANK YOU 22