Redington Limited · NSE:REDINGTON
Redington — Q4 FY2023 Earnings Presentation
51 slides from Redington's earnings presentation, May 16, 2023
Slide 1: Filing cover letter to NSE and BSE
Registered & Corporate Office Redington Limited (Formerly Redington (India) Limited) Block3, Plathin, Redington Tower, Inner Ring Road, Saraswathy Nagar West, 4th Street, Puzhuthivakkam, Chennai -600091 Email: investors@redington.co.in CIN: L52599TN1961PLC028758 www. redingtongroup.com Ph: 044 28460
Slide 2: Q4FY23 Earnings Presentation
Q4FY23 Earnings Presentation
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 Limited’s future business developments and economic performance. While these forward lo
Slide 4: Financial Highlights
Financial Highlights “Highest ever Full Year Revenue, EBITDA & PAT” • Q4FY23 – On a Global basis, Revenue# grew by 26% while EBITDA grew by 15% and PAT degrew by 11% • SISA – Revenue# grew by 19%, EBITDA grew by 16% and PAT degrew by 1% • ROW – Revenue# grew by 33%, EBITDA grew by 14% and PAT degrew
Slide 5: Financial Highlights: SISA Business
Financial Highlights SISA BUSINESS ROCE was strong at 36% and ROE at 23% for FY23 FY23 Revenue grew by 26%, EBITDA grew by 24% and PAT grew by 13% India Distribution • Strong double digit Revenue growth trend continues • Q4FY23: Revenue grew by 22%, EBITDA grew by 25% and PAT grew by 2% • WC days st
Slide 6: Financial Highlights: ROW Business
Financial Highlights ROW BUSINESS ROCE was strong at 38% and ROE at 22% for FY23 FY23 Revenue grew by 27%, EBITDA grew by 18% and PAT grew by 6% During the quarter, • Revenue grew by 33%, EBITDA grew by 14% and PAT degrew by 17% • WC days stood at 33 days • ROCE was at 32% and ROE at 18% • Arena Rev
Slide 7: Q4FY23 Performance
2] Redington Q4FY23 Performance
Slide 8: Q4FY23 Redington Global Performance
Q4FY23 Redington Global Performance REVENUE# EBITDA PAT 26% 15% 11% 2,18,950 5,895 5,132 1,73,244 3,480 3,101 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 # Revenue growth as per Gross a/c : 27% ₹ in mn
Slide 9: Q4FY23 Performance by Market
Q4FY23 Performance by Market REVENUE# EBITDA PAT 19% 16% 1% 99,809 83,961 2,458 2,124 SISA 1,347 1,337 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 33% 14% 17% 1,19,141 ROW 3,437 89,283 3,008 2,133 1,765 Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 # Revenue growth as per Gross a/c – SISA: 19% ; ROW: 34%
Slide 10: Q4FY23 Contribution by Market
Q4FY23 Contribution by Market REVENUE EBITDA PAT 52% 54% 59% 58% 61% 57% 48% 46% 42% 43% 41% 39% Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 SISA ROW SISA ROW SISA ROW
Slide 11: Q4FY23 Revenue Performance by Verticals
Q4FY23 Revenue Performance by Verticals SISA ROW GLOBAL 1% 1% 1% 1% 1% 1% 18% 31% 30% 36% 40% 40% 81% 68% 69% 63% 59% 59% Q4FY22 Q4FY23 Q4FY22 Q4FY23 Q4FY22 Q4FY23 IT Mobility Services IT Mobility Services IT Mobility Services
Slide 12: Q4FY23 Working Capital Days
Q4FY23 Working Capital Days SISA ROW GLOBAL 25 15 19 2 6 2 35 33 33 32 30 27 18 13 8 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23 Q4FY22 Q3FY23 Q4FY23
Slide 13: Q4FY23 Free Cash Flow Statement
Q4FY23 Free Cash Flow Statement Particulars (₹ in mn) Q4FY22 Q3FY23 Q4FY23 Profit Before Taxation 4,435 4,942 4,547 Non-cash items 468 287 606 Finance Cost 162 727 705 Changes in Working Capital (3,540) (15,763) (5,372) Direct Tax Paid (761) (637) (1,056) Net Cash Flow from Operations 764 (10,444) (
Slide 14: Q4FY23 Performance Factsheet
Q4FY23 Performance Factsheet Global (₹ in mn) Q4FY22 Q4FY23 Working Capital Days Q4FY22 Q4FY23 Revenue 1,73,244 2,18,950 Global 13 32 IT 69% 63% SISA 8 33 Mobility 30% 36% ROW 18 33 Services 1% 1% EBITDA 5,132 5,895 PAT 3,480 3,101 SISA (₹ in mn) Q4FY22 Q4FY23 ROW (₹ in mn) Q4FY22 Q4FY23 Revenue 83,
Slide 15: Q4FY23 Top Vendors
Q4FY23 Top 5 Vendors REVENUE 36% 39% OTHERS LENOVO 7% 5% SAMSUNG 5% 5% DELL EMC 8% 7% HP Inc 13% 12% APPLE 31% 32% Q4FY22 Q4FY23
Slide 16: FY23 Performance
2] Redington FY23 Performance
Slide 17: FY23 Redington Global Performance
FY23 Redington Global Performance REVENUE# EBITDA PAT 27% 20% 9% 7,95,187 13,926 22,607 12,799 18,792 6,27,316 FY22 FY23 FY22 FY23 FY22 FY23 # Revenue growth as per Gross a/c : 27% ₹ in mn
Slide 18: FY23 Performance by Market
FY23 Performance by Market REVENUE# EBITDA PAT 26% 24% 13% 3,69,597 9,904 6,004 2,93,255 8,014 5,295 SISA FY22 FY23 FY22 FY23 FY22 FY23 27% 18% 6% 4,25,590 7,504 7,922 12,703 ROW 3,34,061 10,778 FY22 FY23 FY22 FY23 FY22 FY23 # Revenue growth as per Gross a/c – SISA: 26% ; ROW: 27% ₹ in mn
Slide 19: FY23 Contribution by Market
FY23 Contribution by Market REVENUE EBITDA PAT 53% 54% 57% 56% 59% 57% 47% 46% 43% 44% 41% 43% FY22 FY23 FY22 FY23 FY22 FY23 SISA ROW SISA ROW SISA ROW
Slide 20: FY23 Revenue Performance by Verticals
FY23 Revenue Performance by Verticals SISA ROW GLOBAL 1% 1% 1% 1% 1% 1% 20% 25% 30% 32% 39% 38% 79% 74% 69% 67% 60% 61% FY22 FY23 FY22 FY23 FY22 FY23 IT Mobility Services IT Mobility Services IT Mobility Services
Slide 21: FY23 Working Capital Days
FY23 Working Capital Days SISA ROW GLOBAL 27 18 22 3 7 2 39 37 36 36 34 30 19 14 9 FY22 9MFY23 FY23 FY22 9MFY23 FY23 FY22 9MFY23 FY23
Slide 22: FY23 Free Cash Flow Statement
FY23 Free Cash Flow Statement Particulars (₹ in mn) FY22 9MFY23 FY23 Profit Before Taxation 16,224 13,788 18,335 Non-cash items 1,944 1,316 1,921 Finance Cost 712 1,441 2,146 Changes in Working Capital (6,236) (46,153) (51,525) Direct Tax Paid (2,764) (2,293) (3,349) Net Cash Flow from Operations 9,
Slide 23: FY23 Balance Sheet
FY23 Balance Sheet Particulars (₹ in mn) 31-Mar-22 31-Mar-23 Source: Networth 57,847 69,274 Net Debt (30,265) 11,767 Minority Interest 3,228 3,658 Total 30,809 84,699 Application: Fixed Assets 5,175 6,003 Goodwill 617 850 Right to use Assets 2,063 2,043 Net Assets 22,954 75,804 Total 30,809 84,699
Slide 24: FY23 Performance Factsheet
FY23 Performance Factsheet Global (₹ in mn) FY22 FY23 Working Capital Days FY22 FY23 Revenue 6,27,316 7,95,187 Global 14 36 IT 69% 67% SISA 9 36 Mobility 30% 32% ROW 19 37 Services 1% 1% Consolidated EBITDA 18,792 22,607 Consolidated PAT 12,799 13,926 SISA (₹ in mn) FY22 FY23 ROW (₹ in mn) FY22 FY23
Slide 25: FY23 Top Vendors
FY23 Top 5 Vendors REVENUE 36% 37% OTHERS SAMSUNG 5% 6% LENOVO 7% 7% DELL EMC 9% 8% HP Inc 13% 12% APPLE 30% 30% FY22 FY23
Slide 26: Shareholding Pattern
Shareholding Pattern Others Others 23.6% Synnex 23.9% Synnex Mauritius Technology Limited International 24.1% Corporation Insurance 24.1% Companies Insurance 3.8% Companies 3.7% FPIs Mutual Funds FPIs (Corporates) 11.8% Mutual Funds (Corporates) 36.7% 11.9% 36.4% Dec-2022 Mar-2023
Slide 27: Investor Contacts
Investor Contacts M. Muthukumarasamy Compliance Officer Registered office: Block 3, Plathin, Redington Tower, Inner Ring Road, Saraswathy Nagar West, 4th Street, Puzhuthivakkam, Chennai - 600 091 Connecting The Dots https://www.redingtongroup.com Transformation from ‘Product’ to ‘Utility of Product’
Slide 28: Corporate Presentation Q4FY23
CORPORATE PRESENTATION Q4FY23
Slide 29: Table Of Contents
Table Of Contents • About Redington • Board of Directors and Shareholders • Our Strategy and Growth Vectors • ESG & CSR • Financials • Recognitions
Slide 30: 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 Limited’s future business developments and economic performance. While these forward-lo
Slide 31: About Redington
Products , Service & Solutions Company • An Emerging Markets Multinational with presence across 38 markets • Distributor → entire gamut of IT products, Smartphones, Solar, etc. • Service & Solutions → Managed, Cloud, Logistics, BPM, BPO, 3D Printing services Expansive Network & Strong Relationships
Slide 32: Our Portfolio
Our Portfolio PCs, desktops, laptops, Printers, consumables Smartphones Networking – switching, Software - productivity Server and Storage – Licensing & iPads and MacBooks and accessories routing to SDN’s and Application building optimal data Subscription services strategy Enterprise security Cloud
Slide 33: Our Presence
Our Our Presence Presence Enviable “In country” presence in 30 countries and serving 38 markets No.1 or No.2 position across all markets “High potential” markets Presence across product categories Portfolio of Marquee brands
Slide 34: Our Brands & Channel Partners
Our Brands & Channel Partners CHANNEL PARTNERS Sub Large Format Retailers Distributors Retailers Multi Brand Branded Resellers Retailers Stores Corporate Value Added System Resellers Resellers Integrators Independent E-Commerce Software Players Vendors (ISVs) Vendors Banks/ FIs Channel Partners Envi
Slide 35: Our Board of Directors
Our Board of Directors Independent Directors Prof. Ramachandran V. S. Hariharan Keith WF Bradley B Ramaratnam Anita P Belani Retd. Professor, Corporate Ex. Vice President, Ex. President, Professional Sr. Business & Policy & Strategy Hewlett-Packard, Ingram Micro, Director Human Capital IIM, Bengalur
Slide 36: Our Shareholders
Our Shareholders HDFC Mutual Fund Synnex Others Technology 23.9% International Fidelity Management & Research (FMR) Corporation 24.1% ICICIPru Life Insurance Franklin Templeton Investments Insurance Companies Massachusetts Institute Of Technology 3.7% Investment Management Company The Vanguard Group
Slide 37: Our Strategy
Bringing innovation faster to market Cloud, 3D printing, Metaverse, Quantum Computing, AR/VR, 5G, Borderless Network, Smart Analytics, Blockchain and cyber-security… Business Model Re-invention Our • From brick & mortar to Omni-channel • From Products to Services Strategy • • Moving towards XaaS rev
Slide 38: Technology Trends in the Future
9 8 Greater Importance 7 6 Technology 5 Weighted Score 4 Trends in the 3 Future 2 Lesser Importance 1 0 Security Cloud (SaaS, AI/Machine Big Internet of Data Center DevOps Collaboration Robotic Process Blockchain Solutions IaaS, PaaS) Learning Data/Analytics Things Solutions (Containers, Solutions A
Slide 39: Key Technology Trends
Key Technology Trends In 2022 : Global ICT spend growth at 5%, India $111Bn @ 6% and MENA $170Bn @ 3%. TECHNOLOGY HYBRID CYBER DIGITAL EMERGING 5G TRENDS CLOUD SECURITY ECONOMY TECH TECH GROWTH IND: 25.0% META: 10.4 M IND: 20.0% IND: 26.0% IND: 20.2% CAGR % META: 17.2% Subs (2021 Est.) META: 7.9% ME
Slide 40: Biz Model Trends
Biz Model Trends OMNI- WORK CONSUMPTION INVESTMENT DIVERSIFICATION CHANNEL LOCATION MODELS BUSINESS MODEL Products to Physical to Online Emerging Tech M&A, Product, Hybrid work Services Geo Model Trends •Build capability to •Develop a strong end- •Innovate, invest on •Strengthen presence in •Automat
Slide 41: Cloud Trends
Cloud Trends VERTICAL- HYBRID/MULTI- BACKUP & CLOUD & SERVERLESS EMERGING SPECIFIC CLOUD DISASTER ARCHITECTURE TECH SOLUTIONS SOLUTIONS RECOVERY CLOUD Infrastructure to Data Loss to Traditional to Standalone to Private to Hybrid Trends Industry Verticals Backup/Recovery Serverless Integrated •Build
Slide 42: Changing Distribution Needs & Redington's Preparedness
12 10 Greater Importance Redington’s Preparedness 8 6 4 Changing Weighted Score 2 Distribution 0 Needs & our Preparedness Lesser Importance Note: GTDC commissioned Vation Ventures who surveyed and interviewed key constituents from distributors and their OEM vendor partners. The majority of study par
Slide 43: Our Objectives
Our Objectives • Aggressive share gain across Products, Brands & Market Markets Brand Share Acquisitions Gains • Customer choice, Omni-Channel presence • Increase Digital adoption, provide everything “As a Service” New • Lead in ESG Market Business Expansions Opportunities • Be the most admired orga
Slide 44: Our Journey so far… Progress in FY'23
Our Journey so far… Progress in FY’23… ▪ Relevance through Clean energy business ▪ Global baseline assessment for GHG ▪ Met EPR obligations for E-Waste disposal inventorization complete ▪ ESG integration in projects executed through ▪ LEED certification underway for the new Environment CSR including
Slide 45: Our approach toward CSR
Our approach toward CSR CSR aligned to business values & vision Project themes ➢ Logistics skills training provided Inclusive Skills Development Focus on skill development in related 1 to 1500+ unemployed Youth ➢ Well rounded focus across regions ; Pan India coverage programme – TamilNadu industries
Slide 46: 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 FY 12 2,07,799 FY 13 2,34,462 FY 14 2,72,441 FY 15 3,07,361 FY 16 3,44,198 Revenue FY 17 3,97,362 CAGR : 15% FY 18 4,16,417 FY 19 4,65,994 FY 20 5,15,138 FY 21 5,70,416 FY 22 6,27,316 ₹ in Mn FY 23 7,95,187 FY 07 1,985 FY 08 2,
Slide 47: Shareholder Value Creation
Shareholder Value Creation EPS Book Value/Share Shareholder Payout* CAGR : 24% CAGR : 15% ~36% of profits earned In ₹ In ₹ 17.8 60% 88 16.4 73 63 40% 40% 55 32% 9.7 50 44 25% 6.6 20% 6.4 6.0 FY 18 FY 19 FY 20 FY 21 FY 22 FY23 FY 18 FY 19* FY 20 FY 21 FY 22 FY23 FY 18 FY 19 FY 20 FY 21 FY 22 FY23 *In
Slide 48: FY23 Performance Snapshot
FY23 Performance Snapshot REVENUE EBITDA PAT 27% 20% 9% FY23: Rs. 7,95,187 Mn FY23 : Rs. 22,607 Mn FY23 : Rs. 13,926 Mn FY22: Rs. 6,27,316 Mn FY22 : Rs. 18,792 Mn FY22 : Rs. 12,799 Mn WC Days ROE ROCE^ 36 Days 22.2% 36.9% FY22 : 14 days FY22 : 24.1% FY22 : 66.0% ^ROCE is calculated net of cash and o
Slide 49: Redington: FY23 Awards
Redington : FY23 Awards MEA INDIA and SSA 39 Awards 36 Awards • Great Place To Work Award • Best Distributor Marketing of the Year- Huawei • Best Pre-Sales Distributor SE - West India - • APJC Award - Cisco • Gulf Distributor of the Year from HPE • Consumer Distributor of the Year-Gulf- Lenovo PaloA
Slide 50: Redington: FY23 Accolades
Redington : FY23 Accolades MEA
Slide 51: Thank You
Thank You &Redington