Redington Limited · NSE:REDINGTON
Redington — Investor Presentation (July 2016)
37 slides from Redington's investor presentation, July 2016
Slide 1: Redington (India) Limited Corporate Overview July 2016
REDINGTON (INDIA) LIMITED Corporate Overview July 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 SUPPORT 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 Clea
Slide 5: Long Lasting relationship with 210+ vendors
Long Lasting relationship with 210+ 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* 6 Subsidiaries 18 Subsidiaries 22 Subsidiaries 6 Subsidiaries
Slide 8: Our network
Our network META & CIS SOUTH ASIA Channel Partners 11,000 29,595 Sales Offices 27 52 Warehouses 26 93 Service Centres 25 51 Partner Service Centres 25 278 8
Slide 9: About Us, Subsidiaries, Board & Management, Performance, Competition
About Us Subsidiaries Board & Management Performance Competition 9
Slide 10: Snapshot - ProConnect
Snapshot About Management Infrastructure ProConnect Integrated Logistics Professionally managed 93 Warehouses across services provider Board India 2 ADCs – Chennai & Well poised to tap the Dedicated senior Kolkatta booming logistics market management team 1.8 Mio sq ft in India warehou
Slide 11: Automated Distribution Centres
Automated Distribution Centres CHENNAI Chennai Kolkata Dubai Land Area – 11.56 Acres Land Area – 13.76 Acres Land Area* – 5.17 Acres Operational since July ’09 Operational since Feb ’14 Operational since Sep ’10 Capacity – 3.35 lakhs sq ft Capacity – 1.50 lakhs sq ft Capacity – 94,723 sq ft * Long l
Slide 12: Business Performance – Q1FY17
Business Performance – Q1FY17 ` in million ^ ^ 47% 53% 38.4 ^ 36% 68.0 348.7 PAT EBITDA Revenue Redington Outside Biz 26% 30% 29% 32% 38% 48% 53% 53% 52% 74% 70% 71% 68% 62% ^ growth over previous year 52% 47% 47% 48% 12
Slide 13: Customers
80 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, Performance, Competition
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 E H Kasturi Rangan Chairman Ex. V.P Hewlett-Packard Ex.President Ingram Micro Director Managing Director Whole time Director Professor Corporate Policy Si
Slide 17: Our Experienced Execution Team
Our Experienced Execution Team Raj Shankar Managing Director P S Neogi Ramesh Natarajan Dr. R. Arunachalam Stephen Aranha Joint COO- IT S V Krishnan Senior President Senior Vice President, President Division, India CFO, India India ProConnect Logistics , India Ensure Service , India Ashish Bharti Al
Slide 18: About Us, Subsidiaries, Board & Management, Performance, Competition
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 17% 17% 17% 3,865 7,619 2,80,051 7,196 6,842 3,367 2,42,104 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 96,413 88,539 2,590 1,361 1,985 1,017 1,827 9
Slide 20: Consolidated Financials
Consolidated Financials ` in million Particulars Q1 FY17 FY16 FY15 FY14^ FY 13 FY 12 FY 11* FY 10 FY 09 FY 08* FY 07 Total Revenue 96,413 354,762 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 1,827 8,175 7,619 7,196 6,842 6,334 4,717 3,657 3,296 2,590 1,985 PA
Slide 21: Performance by Market
Performance by Market ` in million REVENUE PAT 27% 13% 930.7 96,412.8 822.1 75,794.5 444.2 32% 19% 373.9 58,571.2 44,518.9 21% 9% 486.5 448.2 31,275.6 37,841.6 Q1FY16 Q1FY17 Q1FY16 Q1FY17 India Overseas India Overseas 21
Slide 22: Revenue by Vertical
Revenue by Vertical 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 5% 8% 9% 14% 18% 16% 18% 19% 21% 23% 31% 93% 90% 89% 84% 80% 82% 80% 79% 77% 75% 67% FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY16 Q1FY17 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% 49% 51% 48% 53% 55% 57% 59% 56% 62% 61% 61% 63% 62% 52% 53% 55% 56% 53% 48% 48% 49% 52% 51% 49% 52% 47% 45% 43% 41% 44% 38% 39% India Overseas 23
Slide 24: Free Cash Flow Statement
Free Cash Flow Statement ` in million Particulars Q1 FY17 Q1 FY16 Profit Before Taxation 1,320.1 1,138.0 Non-cash items 224.7 247.2 Change in Working Capital 1,138.7 -3,328.6 Direct Tax Paid -446.8 -301.5 Outflow of Finance Cost 325.6 358.7 Net Cash Flow from Operations 2,562.2 -1,886.2 Capex -111.3
Slide 25: Working Capital Days
Working Capital Days 62 59 58 57 53 54 53 53 53 51 52 51 47 48 46 40 41 38 38 36 35 36 34 33 31 31 32 30 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 Q1FY17 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 26
Slide 27: Provisions
Provisions Particulars FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY15 FY16 Q1FY17 Provision for AR-% 0.07% 0.05% 0.11% 0.14% 0.11% 0.06% 0.11% 0.12% 0.10% 0.07% of Sales Provision for 0.04% 0.11% -0.01% 0.12% -0.06% 0.02% 0.04% 0.11% 0.05% 0.15% Inventory -% of Sales 0.20% 0.15% 0.15% 0.14% 0.12% 0.
Slide 28: Top 5 Vendors – Consolidated
Top 5 Vendors – Consolidated 42% 44% 40% 44% 56% 52% 59% 3% 4% 3% 4% 6% 7% 5% 3% 9% 7% 3% 7% 9% 8% 3% 3% 7% 3% 3% 5% 3% 21% 25% 24% 26% 27% 33% 30% 22% 13% 15% 11% 7% 1% 2% FY 11 FY 12 FY 13 FY 14 FY 15 FY16 Q1FY17 APPLE HP LENOVO SAMSUNG CISCO OTHERS 28
Slide 29: Shareholding Pattern
Shareholding Pattern Others 9.6% Others Synnex Mutual 9.6% Synnex Mauritius Funds, 18.9% Mauritius Limited 23.6% Mutual Limited, Funds 17.6% 23.6% Harrow Harrow Investment Investment Holding Holding Limited 8.2% Limited 13.3% Foreign Institutional Standard Standard Investors & Chartered Foreign Char
Slide 30: Prominent Shareholders as on 15 Jul 2016
Prominent Shareholders as on 15 Jul 2016 S. No Name of the Shareholder Shareholding % 1 Synnex (Mauritius) Limited 23.58 2 Standard Chartered Private Equity (Mauritius) Limited 11.93 3 Fidelity (FIL) 10.51 4 Harrow Investment Holding Limited 8.20 ICICI Prudential Life Insurance Company 7.12 Top 50 5
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, Performance, Competition
About Us Subsidiaries Board & Management Performance Competition 32
Slide 33: Competitive Landscape
Competitive Landscape Global Players India Middle East & Turkey Ingram has been acquired by Ingram Micro present in the Tianjin Tianhai, a Chinese Middle East Corporation Local distributors such as Ingram Micro and Avnet BDL, Metra, Global present among Global Distribution , Logicom are Play
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 Revenue in USD Mio Company Position 2015 2014 Redington Gulf FZE Same 2,840 2,620 BDL Group 722 903 Metra Computer FZCO 680 830 Global Distribution FZE 853 608 Logicom Group Middle East 710 575 Almasa IT Distribution Same 390 410 Mitsumi Distribution 475 390 Asbi
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
Redington (India) — Investor Presentation (July 2016) on 6ix