Redington Limited · NSE:REDINGTON
Redington — Investor Presentation (June 2019)
40 slides from Redington's investor presentation, June 2019
Slide 1: Corporate Presentation
Corporate Presentation June 2019
Slide 2: Who Are We? What We Do?
WHO ARE WE? WHAT WE DO? A prominent & leading We are ‘Business Enablers’, “Technology Distributor” Seamlessly partnering with evolving into a Brands and Channel partners “Services & Solutions company” in delivering value No.1 Technology Multi faceted Expanding the reach An Emerging Markets $6.7bn+ c
Slide 3: Industry Overview
SEAMLESS PARTNERSHIPS, Industry Overview
Slide 4: Distribution Food Chain
Distribution Food Chain IT CONSUMER & MOBILITY SUB DISTRIBUTOR RESELLER Earlier VENDOR DISTRIBUTOR RETAILER CUSTOMER RESELLER Present VENDOR DISTRIBUTOR RETAILER CUSTOMER ECOMMERCE PLAYER IT ENTERPRISE Earlier VENDOR DISTRIBUTOR SYSTEM INTEGRATOR CUSTOMER VALUE ADDED RESELLER SYSTEM INTEGRATOR Prese
Slide 5: Distributors: Value Creators
Distributors: Value Creators Market Knowledge & Access One stop shop Demand Generation Inventory Management Partner Recruitment & Enablement Bulk breaking BRANDS CHANNEL Sales & Marketing Expertise PARTNERS Credit financing Supply Fulfilment Logistics Pre & Post Sales Consulting Order consolidation
Slide 6: Product Lifecycle
Product Lifecycle Manufacture/ Distribute Logistics Support Develop Our presence across the product lifecycle 6
Slide 7: Company Overview
SEAMLESS PARTNERSHIPS, Company Overview
Slide 8: Mission Statement
Mission Statement “Our mission is to offer a robust technology-powered platform to enable a seamless flow of products and services” 8
Slide 9: Our Values
Our Values ADAPTABILITY COLLABORATION KNOW-HOW OBJECTIVITY SIMPLICITY TRUST TRANSPARENCY 9
Slide 10: Our Emergence
Our Emergence Present Presence across 37 markets, a leading Emerging Markets player 1993 10
Slide 11: Our Associations
Our Associations Present 1993 Enviable Partnerships with over 220+ brands 11
Slide 12: Our Expansion
Our Expansion CHANNEL SALES SERVICE BRANDS EMPLOYEES MARKETS WAREHOUSES CENTRES PARTNERS OFFICES Present 220+ 39,650+ 4,748 37 80+ 225+ 250+ 1993 1 25 5 1 3 1 1 From a ‘Home Grown Company’ to a ‘Leading Distributor’ 12
Slide 13: 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, Oper
Slide 14: Our Experienced Executive Team
Our Experienced Executive Team Raj Shankar Managing Director P S Neogi S V Krishnan Ramesh Natarajan J K Senapati, E H Kasturi Rangan Dr. R. Arunachalam S V Rao Chief Development CFO & Whole Time Joint COO & Chief Joint COO, India MD, ProConnect CEO, ProConnect CEO, Ensure & Strategy Officer Directo
Slide 15: Business Overview
SEAMLESS PARTNERSHIPS, Business Overview
Slide 16: Distribution Business
Distribution Business BUSINESS INDIA MIDDLE EAST AFRICA TURKEY SINGAPORE SOUTH ASIA DISTRIBUTION IT CONSUMER IT ENTERPRISE MOBILITY EMERGING PCs Laptops Networking Software Health & Medical Smartphones Equipment Print Supplies 3D Printers & Scanners Servers & Storage Security Printers Solar Consumer
Slide 17: Services Business
Services Business BUSINESS INDIA MIDDLE EAST AFRICA TURKEY SINGAPORE SOUTH ASIA SERVICES Supply Chain SERVICES & SOLUTIONS Transformative initiatives for Trader Distributor Consolidator COMPANY Seamless Success Logistics services Support services Cloud services Digital print services 3D Print Servic
Slide 18: ProConnect India
ProConnect India Wholly Owned Subsidiary of Redington Revenue Contribution from Services 17% Integrated Third Party Logistics partner Warehousing 50% Transportation 33% PAN India presence Others FY19 figures 180+ Warehouses Revenue Contribution from Industries IT 6.6 mn Sq.ft. in operation 18% Consu
Slide 19: ProConnect India: Growth Story
ProConnect India : Growth Story 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 CUSTOMERS 33 53 74 124 166 205 WAREHOUSES 74 74 80 150 173 181 WAREHOUSING SPACE (in sq. ft.) 0.9 mn 1.2 mn 2.5 mn 4.8 mn 6.3 mn 6.8 mn Revenue EBITDA PAT Revenue Mix Redington Outside Biz 4,035 581 295 24% 29% 49% 65% 7
Slide 20: Ensure India
Ensure India Wholly Owned Subsidiary of Redington Warranty Support Services PAN India presence with 35+ Owned Infrastructure Post Warranty Management service centres across India Services Services Preferred Service partner with 170+ service partners across India Managed Print Spare Parts Services Ma
Slide 21: Redington Cloud Solutions
Redington Cloud Solutions Our Cloud Practice Our business Digital Platform Partner Enablement Program Distribution Element Services Element Managed Our Cloud Business Practice Down-selling of Redington team Services Development Cloud products provides Managed Services, focussing on SME/Mid Market Cl
Slide 22: Printing Solutions
Printing Solutions DIGITAL PRINT SERVICES 3D PRINT SERVICES Exclusive Distributor of HP Indigo’s “Digital Set up 3D Printing Printing Press” in India Facility in Chennai REVENUE MODEL Ranked Grade “A” by HP Indigo (Second highest in the world) Distribution of Printing Press Annuity revenues from cli
Slide 23: Fueling Growth In a Challenging Business
Fueling Growth In a Challenging Business IT CONSUMER • Enabling better product mix with higher ASP • Market share gains PC Shipments decline • Establishing presence in Cloud IT ENTERPRISE • Increased value added services • Systematic approach devised to participate in Government Gradual pickup in Co
Slide 24: Financial Performance
SEAMLESS PARTNERSHIPS, Financial Performance
Slide 25: Performance Since Listing
86,672 1,03,699 1,19,186 1,31,622 CAGR 15% 1,63,734 2,07,799 2,34,462 2,72,441 REVENUE 3,07,361 3,44,198 3,97,362 4,16,417 4,65,994 1,985 Performance Since Listing 2,590 3,296 3,657 4,717 CAGR 14% 6,334 6,842 7,196 EBITDA 7,619 8,176 8,662 8,555 *Post acquisition of Easyaccess Financial Services in
Slide 26: Performance By Market
Performance By Market ₹ in million REVENUE EBIDTA PAT 1,101 14% 1,16,866 35% 24% 1,02,288 2,450 887 1,811 27% 25% 14% 697 1,304 75,462 65,992 559 1,025 14% 46% 23% 1,146 404 36,296 41,404 786 328 Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 India Overseas India Overseas India Overseas 26
Slide 27: Performance By Vertical
Performance By Vertical INDIA OVERSEAS CONSOLIDATED 7% 7% 2% 2% 4% 4% 18% 20% 36% 38% 30% 32% 75% 73% 62% 60% 66% 64% Q1FY19 Q1FY20 Q1FY19 Q1FY20 Q1FY19 Q1FY20 IT Mobility Services IT Mobility Services IT Mobility Services 27
Slide 28: Geographical Contribution
Geographical Contribution REVENUE PAT 47% 49% 51% 57% 59% 62% 61% 54% 64% 63% 65% 60% 63% 68% 53% 51% 49% 43% 41% 38% 39% 46% 36% 37% 35% 40% 37% 32% FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Q1FY20 FY 14 FY 15 FY 16 FY 17 FY18 FY19 Q1FY20 India Overseas India Overseas 28
Slide 29: Top Vendors
Top 5 Vendors 41% 40% 39% 48% 46% 46% 51% 4% 5% 5% 4% 5% 6% 9% 7% 7% 8% 8% 8% 4% 9% 9% 7% 6% 5% 4% 5% 4% 16% 15% 12% 15% 21% 20% 17% 27% 27% 29% 22% 11% 13% 15% FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Q1FY20 APPLE HP Inc DELL EMC SAMSUNG LENOVO OTHERS Note: Effect of Dell EMC merger is shown partly in F
Slide 30: Key Operating Metrics
Key Operating Metrics Inventory Days Debtor Days Creditor Days Working Capital Days 58 55 54 44 37 43 39 41 48 44 49 44 Working Capital Days 43 61 59 63 53 59 54 39 at sustainable levels 49 33 36 43 33 29 32 34 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Q1FY20 Rs in FY14 FY15 FY16 FY17 FY18 FY19 Q1FY20 mn
Slide 31: Consolidated Financials
Consolidated Financials Particulars Q1FY20 FY19 FY18 FY17 FY16 FY15 FY14 Total Revenue 1,168,66 4,65,994 4,16,417 3,93,762 3,44,198 3,07,361 2,72,441 EBITDA 2,450 9,619 8,555 8,662 8,176 7,619 7,196 PAT 1,101 5,078 4,816 4,642 4,235 3,865 3,367 Networth 40,029 39,060 35,306 31,479 29,494 23,742 20,2
Slide 32: Dividend Distribution
Dividend Distribution 215% Dividend Payout : 20% on profits earned 165% 120% 105% 115% 95% Buyback of shares 45% Issue size Rs.139 crs 20% % Equity 2.78% FY13 FY14 FY15 FY16 FY17 FY18 FY19 Dividend % on Face Value of shares Final dividend plus Special Interim Dividend declared 32
Slide 33: Shareholding Pattern (June 2019)
Shareholding Pattern (June 2019) HDFC Mutual Fund Others, 9.4% Fidelity Management & Research (FMR) Synnex Mauritius Ltd, 24.2% Franklin Templeton Investments Mutual Funds, 13.2% ICICIPru Life Insurance Standard Fidelity International Chartered Foreign Private Equity, Institutional 15.8% Dimensional
Slide 34: Our Growth Drivers
SEAMLESS PARTNERSHIPS, Our Growth Drivers
Slide 35: Revenue Growth Vectors
Revenue Growth Vectors Tapping incremental Continuous addition BRAND MARKET revenue from of brands across SHARE ACQUISITIONS available product categories opportunities GAINS TARGET 3 year Revenue CAGR of 10% yoy Acquiring MARKET NEW BUSINESS Foraying into newer distribution rights in product categor
Slide 36: Margin Growth Vectors
Margin Growth Vectors Enabling higher Product mix of Improved Mix HIGH MARGIN Margin Focus on products Trajectory INDIA Geography as a growth Mix TARGET market ROCE of Business Foray into 16-18% by Improved Mix SERVICES WC turns FY21 Optimization Driving of OPERATING Efficiency EXPENSES Improvement
Slide 37: Capital Allocation Priorities
Capital Allocation Priorities NO FPO Dividend payout @ 1 Returns to Shareholders 20% of Profits MADE Investments of Debt ~Rs.1,500 mn spread until FY21 Investments into the business Investments into business 2 Equity Ratio at 0.4 Investments of 3 Strategic M&As for ProConnect ~Rs.1,500 mn spread unt
Slide 38: Redington Foundation
Redington Foundation Foundation for CSR @ Redington (Redington Foundation), a trust formed by Redington (India) Limited to implement various CSR activities towards the betterment of the society 38
Slide 39: Contact Us
CONTACT US Compliance Officer M. Muthukumarasamy Redington (India) Limited SPL Guindy House, 95 Mount Road, Guindy, Chennai 600 032 https://www.redingtongroup.com CIN - L52599TN1961PLC028758 Investor Contact Sowmiya M Senior Manager – Investor Relations sowmiya.manickam@redington.co.in IR Materials
Slide 40: Thank You
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Redington (India) — Investor Presentation (June 2019) on 6ix