Redington Limited · NSE:REDINGTON
Redington — Investor Presentation (October 2016)
36 slides from Redington's investor presentation, October 2016
Slide 1: Redington (India) Limited Corporate Overview
REDINGTON (INDIA) LIMITED Corporate Overview October 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: Strong Partnerships
Strong Partnerships 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 PROCUREMENT CHANNELS CUSTOMER Manufacturers Online, Retail & Chain/LFRs, End User, SMB, Brand owners Dealer, VAR/ Corporate, Govt System Integrator Warehousing Credit to After Sales Distribution & Logistics Resellers Service
Slide 7: Glo-cal Presence
Glo- cal Presence SOUTH ASIA MIDDLE EAST AFRICA WESTERN ASIA 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 19 Subsidiaries 22 Subsidiaries 6 Subsid
Slide 8: Our network
Our network META & CIS SOUTH ASIA Channel Partners 11,000 36,257 Sales Offices 27 54 Warehouses 26 121 Service Centres 25 52 Partner Service Centres 25 241 8
Slide 9: Subsidiaries
About Us Subsidiaries Board & Management Performance Competition 9
Slide 10: ProConnect India - Snapshot
ProConnect India - Snapshot About Management Infrastructure ProConnect Integrated Logistics Professionally managed 121 Warehouses across services provider Board India 2 ADCs – Chennai & Offering 3PL services to Dedicated senior Kolkata 100+ Customers management team 2.3 Mio sq ft wareh
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 – H1FY17
Business Performance – H1FY17 ₹ in million ^ ^ 46% 63% 85 ^ 32% 148 739 PAT EBITDA Revenue Redington Outside Biz 26% 30% 29% 32% 38% 48% 53% 53% 52% 56% 74% 70% 71% 68% 62% 52% 47% 47% 48% 44% ^ growth over previous year 12
Slide 13: Snapshot - Turkey
Snapshot - Turkey About Arena Acquisitions Listed in the Istanbul Stock Exchange (Turkey) Provides training, consulting & other value added services Redington holds 49.4% stake Authorised technology product distributor for 43 global brands A leading Oracle Distributor Serves more than 7,500+
Slide 14: Board & Management
About Us Subsidiaries Board & Management Performance Competition 14
Slide 15: 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 16: Our Experienced Execution Team
Our Experienced Execution Team 16
Slide 17: Performance
About Us Subsidiaries Board & Management Performance Competition 17
Slide 18: Financial Snapshot
Financial Snapshot ₹ in million REVENUE EBIDTA PAT 4,257 3,54,762 8,176 CAGR CAGR CAGR 3,865 7,619 3,16,227 17% 17% 17% 7,196 6,842 2,80,051 3,367 3,231 6,334 2,42,104 2,927 2,12,220 1,93,729 4,717 2,260 1,67,227 1,933 3,793 1,843 3,657 1,32,777 3,296 1,23,760 1,597 1,05,425 1,361 2,590 88,539 1,017
Slide 19: Consolidated Financials
Consolidated Financials ₹ in million Particulars H1 FY17 FY16 FY15 FY14^ FY 13 FY 12 FY 11* FY 10 FY 09 FY 08* FY 07 Total Revenue 1,93,729 354,762 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 3,793 8,175 7,619 7,196 6,842 6,334 4,717 3,657 3,296 2,590 1,985
Slide 20: Performance by Market
Performance by Market ₹ in million REVENUE PAT 21% 8% 1,93,729 1,933 1,59,703 1,794 25% 11% 953 1,18,868 856 95,234 16% 4% 938 980 64,469 74,861 H1FY16 H1FY17 H1FY16 H1FY17 India Overseas India Overseas 20
Slide 21: 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% 30% 93% 90% 89% 84% 80% 82% 80% 79% 77% 75% 68% FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY16 H1FY17 IT Non IT Service 21
Slide 22: Geographical Contribution
Geographical Contribution REVENUE PAT 39% 37% 38% 48% 47% 45% 44% 47% 52% 52% 51% 48% 49% 51% 49% 53% 55% 57% 59% 56% 62% 61% 61% 63% 62% 52% 53% 55% 56% 53% 48% 48% 49% 52% 51% 49% 51% 47% 45% 43% 41% 44% 38% 39% India Overseas 22
Slide 23: Free Cash Flow Statement
Free Cash Flow Statement ₹ in million Particulars H1 FY17 H1 FY16 Profit Before Taxation 2,682 2,511 Non-cash items 582 605 Change in Working Capital 6,194 (7,171) Direct Tax Paid (706) (696) Outflow of Finance Cost 746 765 Net Cash Flow from Operations 9,498 (3,987) Capex (283) (186) Dividend (1,05
Slide 24: Working Capital Days
Working Capital Days 62 59 58 57 53 54 53 53 54 51 52 47 48 46 46 40 41 38 38 36 35 34 33 31 31 32 30 30 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 H1FY17 Inventory Days Debtor Days Creditor Days Working Capital Days 24
Slide 25: 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 25
Slide 26: Provisions
Provisions Particulars FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY15 FY16 H1FY17 Provision for AR-% 0.07% 0.05% 0.11% 0.14% 0.11% 0.06% 0.11% 0.12% 0.10% 0.01% of Sales Provision for 0.04% 0.11% -0.01% 0.12% -0.06% 0.02% 0.04% 0.11% 0.05% 0.14% Inventory -% of Sales 0.15% 0.14% 0.14% 0.12% 0.11% 0.
Slide 27: Top 5 Vendors – Consolidated
Top 5 Vendors – Consolidated 44% 42% 44% 42% 56% 52% 59% 3% 4% 4% 3% 7% 5% 5% 3% 9% 9% 8% 8% 3% 7% 3% 3% 7% 3% 3% 5% 3% 21% 25% 24% 26% 27% 33% 30% 20% 13% 15% 11% 7% 1% 2% FY 11 FY 12 FY 13 FY 14 FY 15 FY16 H1FY17 APPLE HP LENOVO SAMSUNG CISCO OTHERS 27
Slide 28: Shareholding Pattern
Shareholding Pattern Others Others 9.6% Synnex 12.1% Synnex Mutual Mauritius Mauritius Funds, 17.6% Limited Mutual Limited 23.6% Funds, 16.7% 23.6% Harrow Harrow Investment Investment Holding Holding Limited 8.2% Limited 8.2% Foreign Standard Foreign Standard Institutional Chartered Institutional Ch
Slide 29: Prominent Shareholders as on Sep 2016
Prominent Shareholders as on 30 Sep 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) 10.81 4 Harrow Investment Holding Limited 8.20 Top 50 5 ICICI Prudential Life Insurance Company 7.37
Slide 30: REDIL Stock Performance vs. Index
REDIL Stock Performance vs. Index 130 REDIL @ BSE REBASED BSE MIDCAP REBASED 120 110 100 90 80 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 130 120 REDIL @ NSE REBASED NIFTY 200 REBASED 110 100 90 80 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 30
Slide 31: Competition
About Us Subsidiaries Board & Management Performance Competition 31
Slide 32: 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 33: Top 20 IT Companies – India
Top 20 IT Companies – India Company Position Rank FY16 Rank FY15 TCS Same 1 1 Cognizant Technology Solutions Same 2 2 Infosys Technologies Same 3 3 Wipro Same 4 4 HCL Technologies 5 6 Tech Mahindra 6 7 IBM India 7 8 Ingram Micro India 8 9 HPE India New Entrant 9 - Dell India 10 11 Redington India 11
Slide 34: 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 35: 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 36: Thank you
Thank you ¥REDINGTON
Redington (India) — Investor Presentation (October 2016) on 6ix