Creative Newtech Limited · NSE:CNL
Creative Newtech — Creative Peripherals and Distribution — H1 FY21 Earnings Presentation
37 slides from Creative Newtech's earnings presentation, Nov 12, 2020
Slide 1: Creative Peripherals and Distribution Limited
Creative Peripherals and Distribution Limited Result Update Presentation Q2 & H1 FY21
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Creative Peripherals and Distribution Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in
Slide 3: Table of Contents
Table of Contents Company Overview Business Overview Chairman’s Message & Key Developments Consolidated Financial Highlights Way Forward 3
Slide 4: Company Overview
Company Overview
Slide 5: Who we are…
Who we are… Brand Licensing Market Entry Specialist for Niche Brands Ckart ➢ Specialist for global brands to enter ➢ Licensed by Honeywell to undertake ➢ Online digital B2B eCommerce platform and penetrate Indian markets contract manufacturing for wide range ➢ One-stop-shop for all customers ➢ Well
Slide 6: Journey so far…
Journey so far… ▪ Migrated to NSE Main Board ▪ Expanded IT, Gaming & Lifestyle segments with PNY, ▪ 2012 - Foray into Imaging business by Cooler Master & BaByliss signing Olympus ▪ Signed distribution agreement with Panasonic for ▪ 2013 - Exclusive Photo Distribution premium audio products from Vite
Slide 7: Key Team
Key Team Mr. Ketan Patel Mrs. Purvi Patel Chairman & Managing Director Whole Time Director ▪ IIM - B Alumnus with Engineering in Computer ▪ Holds Diploma in Pharmacy with rich Technology from Mumbai University experience in Computer Programming ▪ Over three decades of experience - has built ▪ Respon
Slide 8: Business Overview
Business Overview
Slide 9: Driving digital transformation…
Driving digital transformation… Our Value Addition Information Price Access to Network Partnership Product Scale and Content & What is needed? Skills Community Service Brand Customer Strategy Experience Customer experience Omni- Channel Marketing 2000 2022 Contract manufacturing Customer By 2022, Cu
Slide 10: Integrated Business Model
Integrated Business Model ▪ Identification of ideal distribution channel ▪ Identify and acquire required skill sets / man power ▪ Regional planning and strategy to market brand Strategic ▪ Resource allocation and strengthening of Planning ▪ Executing marketing strategy operations ▪ Creating brand aw
Slide 11: Integrated Business Model contd…
Integrated Business Model contd… ▪ Product to product comparison with similar products from peer brands in industry – for competitive benchmarking ▪ On-field research & in-house usage & checking – Checking product’s usability, viability and features internally as well Market as in real-world scenari
Slide 12: Integrated Business Model contd…
Integrated Business Model contd… ▪ Executing marketing strategy ▪ Creating brand awareness ▪ Training and events Pre- ▪ Customer Engagement Sales ▪ Digital Cataloguing ▪ POP Displays ▪ 100+ Trained, professional sales staff ▪ 1,200+ Trainings conducted at shop level annually ▪ Point-of-sales (POS) a
Slide 13: Brand Licensing & Contract manufacturing - Honeywell
Brand Licensing & Contract manufacturing - Honeywell End to end services from factory to consumer Honeywell : Fortune 50 multinational conglomerate offers various commercial and consumer products, engineering services and aerospace systems. Active across aerospace, automation & control systems and p
Slide 14: Market specialists for Niche & Experiential Products
Market specialists for Niche & Experiential Products Information Technology Imaging Lifestyle & Security Thermaltake 14
Slide 15: Case Study – Go Pro
Case Study – Go Pro Market entry, Brand awareness, Consumer engagement GoPro : Global brand offering broad range of imaging devices and accessories for professional as well as amateur users Our Involvement: Started association in 2016-17 to enter Indian market. Creative has been a key enabler for br
Slide 16: Digital Platform: Ckart
Digital Platform: Ckart Ckart is Creative Peripherals’ own online digital B2B eCommerce platform Salient Features Key Benefits ▪ Ckart hosts all existing and new customers and is integrated with Company’s ERP system ▪ Ckart is a one-stop-shop for all customers’ ▪ Platform enables customers to discov
Slide 17: Geographical Presence
Geographical Presence Domestic ▪ Pan India presence ▪ 20 branches across India ▪ Over 150-strong highly Kuwait skilled workforce across Bahrain Qatar India – mix of young and Saudi Arabia India experienced talent UAE Oman International ▪ Strong distribution tie-up in Middle East ▪ Expanding network
Slide 18: Smart Sourcing Capabilities
Smart Sourcing Capabilities Central Warehouse @ Bhiwandi, Maharashtra Dispatch all over India from Central warehouse ▪ Warehousing and Transportation services ▪ 40,000 Sq. ft. area ▪ Semi-automatic warehousing ▪ Advanced systems for inward & outward, packing and stock keeping (Bar Code system for ou
Slide 19: Chairman’s Message & Key Developments
Chairman’s Message & Key Developments
Slide 20: Management Comment
Management Comment Despite the overall economic headwinds, we reported an 18.54% year-on-year growth in topline, while our EBITDA and net profit grew 10.37% and 3.51% year-on-year to Rs. 4.11 cr and Rs. 2.06 cr, respectively, in Q2 FY21. This reflects our Company’s resilience and operational agility
Slide 21: Recent Key Developments
Recent Key Developments ➢ Honeywell: • Signed licensing agreement for Honeywell air purifiers across 10 countries worldwide • Expanded Honeywell distribution agreement to include 29 countries across APAC & Middle East • Added range audio products to Honeywell product portfolio • Expanded distributio
Slide 22: Launch of Ckart
Launch of Ckart ➢ Launched Ckart – new online digital B2B eCommerce platform for customers ➢ Ckart launched online on 5th August 2020 in a grand event attended by 712 participants across India ➢ First order placed online during event, showcasing fast and user-friendly experience ➢ Royalty points for
Slide 23: Launched B-Safe – Medical Products Portfolio
Launched B-Safe – Medical Products Portfolio Launched range of personal medical products for consumers under own brand – B-Safe ➢ Personal health care product portfolio includes infrared thermometers, thermal scanners, pulse oximeters and masks ➢ Cater to growing demand during and after the COVID-19
Slide 24: Consolidated Financial Highlights
Consolidated Financial Highlights
Slide 25: Quarterly Performance Highlights – Q2 FY21
Quarterly Performance Highlights – Q2 FY21 18.54% 10.37% Total Income Rs 114.45 Cr EBITDA Rs 4.11 Cr 3.51% 4.07% Net Profit Rs 2.06 Cr Basic EPS Rs 1.79 25
Slide 26: Key Quarterly Financial Highlights
Key Quarterly Financial Highlights Rs. Cr Q2 FY21 Q2 FY20 YoY% Q1 FY21 Revenue from Operations 113.79 95.73 64.45 • Strong demand uptake Other Income 0.66 0.81 0.08 for brands like Samsung, Total Income 114.45 96.54 18.54% 64.53 Cooler Master, PNY & Raw material 102.75 84.83 57.69 GoPro spurred reve
Slide 27: Half Yearly Financial Highlights
Half Yearly Financial Highlights Rs. Cr H1 FY21 H1 FY20 YoY% Revenue from Operations 178.24 200.19 • Revenue impacted by Other Income 0.74 1.15 nationwide lockdown, Total Income 178.98 201.34 (11.11%) offsetting demand for Raw material 160.45 179.33 Imaging and IT/gaming Employee Cost 3.40 4.25 bran
Slide 28: Balance Sheet Highlights – As on 30th September
Balance Sheet Highlights – As on 30th September As on 30th As on 31st March As on 30th As on 31st Rs. Cr Rs. Cr September 2020 2020 September 2020 March 2020 Equity 54.93 41.24 Non-current assets 10.18 10.07 Equity Share capital 11.60 11.60 Property, Plant and Equipment 9.01 8.89 Other Equity 43.55
Slide 29: Annual Performance Highlights – FY20
Annual Performance Highlights – FY20 23.83% 26.28% Total Income Rs 459.06 Cr EBITDA Rs 16.82 Cr 33.49% 35.33% Net Profit Rs 7.76 Cr Basic EPS Rs 6.78 Dividend declared at 5% 29
Slide 30: Annual Financial Highlights
Annual Financial Highlights Revenue (Rs. Cr) EBITDA (Rs. Cr) 459.06 16.82 370.72 13.32 250.96 198.58 212.01 7.51 5.17 5.17 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 PAT (Rs. Cr) 7.78 5.85 2.89 1.13 1.34 FY16 FY17 FY18 FY19 FY20 30
Slide 31: Annual Financial Highlights
Annual Financial Highlights Rs. Cr FY20 FY19 YoY% Income from Operations 457.72 367.65 Other Operating Income 1.34 3.06 Total Income from Operations 459.06 370.72 23.83% Raw material 407.03 335.66 Employee Cost 8.99 6.96 Operating Cost 26.22 14.77 Total Expenditure 442.24 357.40 EBITDA 16.82 13.32 2
Slide 32: Revenue Contribution – Business category
Revenue Contribution – Business category FY2019 FY2020 Lifestyle & Security Lifestyle & 4% Security 15% Imaging 43% I.T. Peripherals I.T. 42% Peripherals Imaging 53% 43% 32
Slide 33: Consolidated Key Return Ratios
Consolidated Key Return Ratios RoE(%) RoCE(%) 18.81% 17.55% 18.82% 19.31% 17.82% 11.59% 14.40% 14.22% 11.03% 10.33% FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Focus on improving RoCE and long term value creation *RoE = Net Profit/Net Worth | RoCE = EBIT/(Shareholders Fund+Long-term Borrowing+
Slide 34: Way Forward
Way Forward
Slide 35: Future-ready business growth
Future-ready business growth 01 ▪ Domestic market: Smart Cities and Make in India boosting demand from OEMs & service New providers; Smart Homes, Vehicles; Big Data and Analytics, Intelligent technology & markets Expansion in new markets hardware to drive future growth ▪ International market: Expand
Slide 36: Thank You
Thank You CREATIVE CREATIVE:IN For further information, please contact: Company : Investor Relations Advisors : Creative Peripherals and Distribution Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Abhijit Kanvinde Mr. Rahul Trivedi Chief Financial Officer Ms. Anviksha Konnure Abhijit@ecreativeindia.co
Slide 37: Thank you!
Thank you!
Creative Peripherals and Distribution — H1 FY21 Earnings Presentation on 6ix