Slide 1: Result Update Presentation Q4 & FY22
Result Update Presentation Q4 & FY22 Creative Newtech Limited (Formerly known as Creative Peripherals and Distribution Limited)
Slide 2: Disclaimer
2 Disclaimer This presentation has been prepared by Creative Newtech Limited (the “Company”), formerly known as Creative Peripherals & Distribution Ltd., solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and s
Slide 3: Company at a Glance
3 Company at a Glance Diversified Products Portfolio 25+ 3200+ 8000+ 1992 1. Licensee of Honeywell Inc. Brands Products Happy Started 2. 25+ Brands under said segments Channel Journey (FMSG+FMCT+FMEG+EB) Partners 3. 8000+ Trusted partners ** 683.9 Cr 947.8 cr 32.6 cr 19.3 cr Total 20+ branches Marke
Slide 4: Business Overview
4 Business Overview Brand Licensing FMSG + FMCT + FMEG + EB CKart • FMSG: Niche Products that appeal to the younger • Online digital B2B • Currently Honeywell License Holder and offers a vast suite of demographics, driven by social media penetration eCommerce platform products spanning consumer to e
Slide 5: Honeywell
5 End to End Aerospace $11.5 Bn Building Technologies Performance Materials & Safety and Productivity Service Provider - $5.2 Bn Technologies Solutions Honeywell $9.4 Bn $6.5 Bn ~$33 in sales for Bn 2020 53% of sales outside U.S. Honeywell developed the first autopilot Honeywell began the Smart Hous
Slide 6: Honeywell
6 Honeywell Exclusive rights to sell across 29 countries
Slide 7: Honeywell: Tough Entry Barrier & Hyper Growth Ahead
7 Honeywell Tough Entry Barrier & Hyper Growth Ahead Entry Barrier The biggest entry barrier to breakthrough in Honeywell is the long-drawn compliance process and product approval including certifications. Approval Process The process of getting approval for each product is time consuming and expens
Slide 8: Our Partners
8 Our Partners Fast Moving Social- FMSG Media Gadgets Fast Moving Consumer FMCT Technology Fast Moving Electronics FMEG Goods EB Enterprise Business
Slide 9: Target addressable Market
9 Target addressable Market Growing Social Media Trend FMSG – Key Drivers for Growth 834 • The trend to capture every moment of social life and post live events has led to a multifold growth in personal-use, Internet connected devices Growing Social • Every millennial tends to follow multiple hobbie
Slide 10: Financial Highlights in Charts
10 Financial Highlights in Charts Sales in Crore Revenue EBITDA & EBITDA Margin PAT & PAT Margin 9.21 9.01 5.56 299.04 5.00 262.39 238.56 6.72 3.90 Quarterly 5.71 3.02 133.89 947.81 32.62 19.25 526.32 18.73 Annual 80.1% 74.2% 105.2% 9.38
Slide 11: Q4 FY22 Financial Highlights – Standalone & Consolidated
11 Q4 FY22 Financial Highlights –Standalone & Consolidated Standalone Consolidated • Strong sales growth INR Crore Q4 FY22 Q4 FY21 YoY % Q4 FY22 Q4 FY21 YoY % driven by EB and FMCT segments Revenue from Operations 254.5 175.5 45.0% 262.4 520.1 -49.6% Other Income 6.0 1.7 255.8% 6.0 6.2 -3.2% • High
Slide 12: FY22 Financial Highlights – Standalone & Consolidated
12 FY22 Financial Highlights –Standalone & • Continued recovery in Consolidated market post COVID impact Standalone Consolidated • Sales growth supported by new and existing INR Crore FY22 FY21 YoY % FY22 FY21 YoY % brands including Revenue from Operations 919.2 509.3 80.5% 933.9 520.1 79.5% Samsung
Slide 13: Consolidated Balance Sheet Highlights – as on 31st March 2022
13 Consolidated Balance Sheet Highlights – as on 31st March 2022 As on As on As on As on INR Crore INR Crore 31st March 2022 31st March 2021 31st March 2022 31st March 2021 Equity 88.37 61.68 Non-Current Assets 10.73 10.16 Equity Share Capital 12.00 11.60 Property, Plant & Equipment 10.38 9.85 Other
Slide 14: Consolidated Key Return Ratios
14 Consolidated Key Return Ratios RoE % RoCE % 22.15% 23.88% 20.38% 18.82% 16.93% 18.81% 17.55% 14.22% 16.00% 10.33% FY18 FY19 FY20 FY21 ** FY22 FY18 FY19 FY20 FY21 ** FY22 Focus on improving RoCE and long-term value creation *RoE = Net Profit/Net Worth | RoCE = EBIT/(Shareholders Fund + Long-term B
Slide 15: Business in Charts
15 Business in Charts Sales in Crore FMSG FMEG 53.77 55.94 4.24 44.50 3.66 32.66 2.51 0.28 FMCT EB 152.11 195.23 141.01 141.11 50.53 61.67 64.81 36.14
Slide 16: Annual Consolidated Financial Highlights
16 Annual Consolidated Financial Highlights Revenue (in Cr) EBIDTA (in Cr) 947.81 32.62 526.32 18.73 459.06 16.82 370.72 13.32 250.96 7.51 PAT (in Cr) 19.25 9.38 7.78 5.85 2.89
Slide 17: Shift to High Growth Business
17 Shift to High Growth Business Q1 FY22 Q2 FY22 19% 24% 48% 59% 21% 27% 0% 1% Q3 FY22 Q4 FY22 18% 21.3% 53.8% 65% 15% 23.5% 1% 1.4% FMSG FMCT FMEG EB
Slide 18: Key Focus and Strategy Ahead
18 Key Focus and Strategy Ahead Our business model is primarily of optimizing working capital. The success of our business depends on achieving higher growth through higher margin products and quick working capital cycle In the last few quarters we have continuously shifted our resources towards hig
Slide 19: Consolidated Financial Highlights
Consolidated Financial Highlights 19 Revenue Growth 400 111.1% 112.7% 150.0% 260.5 298.7 300 177.2 240.2 100.0% 162.0 200 25.7% 38.0% 50.0% Total Income 25.1% 133.8 84.4% 113.0 47.0% 63.4 Y-o-Y Growth 100 0.0% 0 -39.5% -50.0% Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 EBITDA Gro
Slide 20: Future-ready business growth
20 Future-ready business growth Brand #1 Brand Licensing & Geographical Expansion Licensing in • Growing brand licensing line of business with long-standing association with Honeywell with extensive product portfolio New • Expanding geographically in new countries across Middle East & APAC with requ
Slide 21: Investment Rationale
21 Investment Rationale Industry experience of ~30 years Addresses niche growing market across segments Exclusive licensee for Honeywell Strong return ratios Associated with well-known brands Expecting significant growth from increased volumes in Creative Newtech has an ROCE of 20.38% and it Partner
Slide 22: Annexure
22 Annexure
Slide 23: Management Comment
Management Comment 23 “The markets have continued to recover during Q4, as luckily the third wave of the pandemic was not as strong as the previous ones. Increase in online activities has also spurred demand for IT and lifestyle consumer products. In the quarter ended March 2022, we reported a 50.03
Slide 24: Journey so far…
Journey so far… 24 ▪ Launched B-Safe – own brand of medical products ▪ Launched Ckart – digital B2B platform for customers ▪ 2012 - Foray into Imaging business by ▪ Listed on NSE – SME stock exchange ▪ Expanded Honeywell mandate to 29 countries signing Olympus ▪ Forayed into gaming products under ▪
Slide 25: Management Team
25 Management Team Ketan Patel Purvi Patel Vijay Advani Mohit Anand A technologist with a humble A woman with exceptional Mr. Advani is a seasoned As the CEO of Secure background and an experience foresight, Purvi Patel manages Professional with 30+ years of Connection, he is responsible 30+ of year
Slide 26: Management Team
26 Management Team Abhijit Kanvinde Amol Patil Upendra Singh Chartered Accountant with over MBA in Marketing with Bachelor of Commerce from 25 years of strong and multi- Engineering in Electronics and Ranchi University, with nearly 30 industry experience. Worked in Telecom, with over 20 years of yea
Slide 27: Geographical Presence
27 Geographical Presence Domestic International • Pan India presence. • Subsidiary in Hong Kong. • Over 300-strong highly skilled • Strong distribution tie-up in workforce across India – mix of Middle East. young and experienced talent. • Expanding network across SAARC countries. Our Network A Class
Slide 28: Driving Social Media Transformation through Digital Offerings
28 Driving Social Media Transformation through Digital Offerings Our Value Edition Price Information Network Access to Product Partnership Scale Content & What is needed? and Skills Community Customer Brand Strategy Experience Service Omni – Channel Marketing Customer experience Contract Customer Ma
Slide 29: Who we are
29 Who we are Brand Licensing Licensed by Honeywell Rights on many Can manufacture and Aiming to get more Maintain Asset light model for contract product sell Honeywell branded international brands under while expanding the business manufacturing designs/casts products in many the licensing and also
Slide 30: Who we are
30 Who we are FMSG + FMCT + FMEG + EB Specialist in end- Well positioned in a fast Portfolio of 25+ world Command niche Continually Multi channel to-end solutions growing country like India with renowned brands, most value in market enhancing portfolio network of FMSG for an aspirational young of wh
Slide 31: Who we are
31 Who we are www.ckartonline.com Ckart Online digital B2B Captive marketplace Expands the Boosts customer-base With growing digitization in eCommerce platform for subscribed Company’s product without additional industry, CKart paves the way business partners domain manpower for a future-ready growt
Slide 32: Key Developments
32 Key Developments Fund Raise Activity Recent Brand Agreements In July 2021, Creative undertook a preferential allotment of equity shares • Signed agreement with Hyperice Inc. to distribute massage & muscle and warrants to raise Rs.11 Cr to fund future growth plans. Company recovery products issued
Slide 33: THANK YOU!
THANK YOU! www.creativenewtech.com