Redington Limited · NSE:REDINGTON
Redington — Q1 FY24 Earnings Presentation
43 slides from Redington's earnings presentation, Aug 1, 2023
Slide 1: Cover letter to stock exchanges
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@redingtongroup.com CIN: L52599TN1961PLC028758 www. redingtongroup.com Ph: 044 42
Slide 2: Corporate Presentation Q1FY24
CORPORATE PRESENTATION Q1FY24
Slide 3: Table Of Contents
Table Of Contents • About Redington • Board of Directors and Shareholders • Our Strategy and Growth Vectors • ESG & CSR • Financials • Recognitions
Slide 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: Our Shareholders
Our Shareholders HDFC Mutual Fund Synnex Others Technology Fidelity Management & Research (FMR) International 25.1% Corporation 24.1% ICICIPru Life Insurance Franklin Templeton Investments Insurance Companies 3.7% Massachusetts Institute Of Technology Investment Management Company FPIs Mutual Funds
Slide 11: 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 12: 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 13: 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 14: 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 15: 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 16: Changing Distribution Needs & our 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: Q1FY24 Performance Snapshot
Q1FY24 Performance Snapshot REVENUE EBITDA PAT 26% 1% 21% Q1FY24 : Rs. 2,12,507 Mn Q1FY24 : Rs. 4,827 Mn Q1FY24 : Rs. 2,488 Mn Q1FY23 : Rs. 1,68,283 Mn Q1FY23 : Rs. 4,870 Mn Q1FY23 : Rs. 3,158 Mn WC Days ROE ROCE^ 40 Days 14.4% 19.4% Q1FY23 : 28 days Q1FY23 : 21.3% Q1FY23 : 41.1% ^ROCE is calculated
Slide 23: Redington: Awards
Redington : 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 PaloAlto •
Slide 24: Redington: Accolades
QRedington Redington : Accolades GRedington BEST ~ DISTRIBUTOR nay ae MD, Redington = | L Redington ~» 2» os . BEST ORGANIZATION - ~~ % . _ » FOR WOMEN Certified 2023 MEA
Slide 25: Thank You
Thank You &Redington
Slide 26: Earnings Presentation Q1FY24
EARNINGS PRESENTATION Q1FY24
Slide 27: 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 28: Financial Highlights
Financial Highlights “Highest ever First Quarter Revenue & Gross Margin” • Q1FY24 – On a Global basis, Revenue grew by 26%, GM grew by 17%, EBITDA degrew by 1% and PAT degrew by 21% • SISA – Revenue grew by 24%, GM grew by 24%, EBITDA grew by 19% and PAT grew by 2% • ROW – Revenue grew by 29%, GM gr
Slide 29: Financial Highlights
Financial Highlights SISA BUSINESS ROCE was at 22% and ROE at 20% for Q1FY24 India Distribution • Revenue grew by 28%, GM grew by 32%, EBITDA grew by 19% and PAT grew by 1% • WC days stood at 41 days ProConnect India Revenue grew by 4% ROW BUSINESS ROCE was at 17% and ROE at 10% for Q1FY24 MEA • Rev
Slide 30: Change in Verticals reporting
Change in Verticals reporting In the past Revenue reporting was done under the verticals : IT, Mobility & Services Beginning this quarter; Revenue reporting shall be under the following verticals : Name Description Products / Services Consumer & Commercial PCs, Print ESG End Point Solutions Group &
Slide 31: Q1FY24 Performance
2] Redington Q1FY24 Performance
Slide 32: Q1FY24 Redington Global Performance
Q1FY24 Redington Global Performance REVENUE GM EBITDA PAT 26% 17% 1% 21% 21,251 1,248 487 483 1,070 316 16,828 249 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 ₹ in Cr
Slide 33: Q1FY24 Performance by Market
Q1FY24 Performance by Market REVENUE GM EBITDA PAT 24% 24% 19% 2% 9,952 563 266 8,052 454 SISA 224 147 149 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 29% 11% 17% 41% ROW 11,299 685 263 616 217 8,776 169 99 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 ₹ in Cr
Slide 34: Q1FY24 Contribution by Market
Q1FY24 Contribution by Market REVENUE GM EBITDA PAT 45% 40% 52% 53% 58% 55% 54% 53% 55% 60% 48% 47% 42% 45% 46% 47% Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Q1FY23 Q1FY24 SISA ROW SISA ROW SISA ROW SISA ROW
Slide 35: Q1FY24 Working Capital Days
Q1FY24 Working Capital Days SISA ROW GLOBAL 20 4 12 7 7 8 40 40 40 36 33 33 32 28 20 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24 Q1FY23 Q4FY23 Q1FY24
Slide 36: Q1FY24 Performance Factsheet
Q1FY24 Performance Factsheet SISA (₹ in Cr) Q1FY23 Q1FY24 GLOBAL (₹ in Cr) Q1FY23 Q1FY24 Revenue 8,052 9,952 Revenue 16,828 21,251 GM 454 563 GM 1,070 1,248 EBITDA 224 266 EBITDA 487 483 PAT 147 149 PAT 316 249 ROW (₹ in Cr) Q1FY23 Q1FY24 Working Capital Days Q1FY23 Q1FY24 Revenue 8,776 11,299 SISA
Slide 37: Q1FY24 Core Verticals Revenue
Q1FY24 Core Verticals Revenue SISA ROW GLOBAL Verticals Q1FY23 Q1FY24 YoY Q1FY23 Q1FY24 YoY Q1FY23 Q1FY24 YoY ESG 3,323 3,344 1% 3,057 3,765 23% 6,380 7,109 11% TSG 2,314 3,165 37% 1,829 2,647 45% 4,143 5,811 40% MSG 1,851 2,916 58% 3,402 4,327 27% 5,253 7,244 38% Amounts may not add due to rounding
Slide 38: Q1FY24 Other Verticals Revenue
Q1FY24 Other Verticals Revenue SISA ROW GLOBAL Verticals Q1FY23 Q1FY24 YoY Q1FY23 Q1FY24 YoY Q1FY23 Q1FY24 YoY CSG 213 320 50% 254 354 39% 467 674 44% Renewable energy 248 91 -63% 47 34 -29% 295 124 -58% Logistics* 130 135 4% 83 78 -6% 212 213 0% Other Services* 4 19 379% 103 129 25% 107 147 38% *Lo
Slide 39: Q2,Q3,Q4FY23 Verticals Revenue
Q2,Q3,Q4FY23 Verticals Revenue SISA ROW GLOBAL Verticals Q2FY23 Q3FY23 Q4FY23 Q2FY23 Q3FY23 Q4FY23 Q2FY23 Q3FY23 Q4FY23 ESG 4,218 3,316 3,053 3,616 3,851 3,775 7,834 7,167 6,828 TSG 2,794 3,422 3,313 1,926 2,916 2,710 4,720 6,338 6,024 MSG 1,663 2,696 3,047 3,895 4,550 4,741 5,558 7,245 7,788 SISA R
Slide 40: Q1FY24 Top Vendors
Q1FY24 Top 5 Vendors REVENUE 35% 39% OTHERS SAMSUNG 6% LENOVO 4% 7% 6% DELL EMC 8% 8% HP Inc 13% 11% APPLE 31% 32% Q1FY23 Q1FY24
Slide 41: Q1FY24 Free Cash Flow Statement
Q1FY24 Free Cash Flow Statement Particulars (₹ in Cr) Q1FY23 Q4FY23 Q1FY24 Profit Before Taxation 414 455 352 Non-cash items 50 61 28 Finance Cost 30 70 65 Changes in Working Capital (2,721) (537) (1,545) Direct Tax Paid (44) (106) (117) Net Cash Flow from Operations (2,271) (57) (1,217) Capex (9) (
Slide 42: Shareholding Pattern
Shareholding Pattern Others Others 23.9% 25.1% Synnex Synnex Technology Technology International International Corporation Corporation 24.1% 24.1% Insurance Companies Insurance 3.7% Companies 3.7% FPIs FPIs Mutual Funds (Corporates) (Corporates) 11.9% 36.4% Mutual Funds 35.1% 12.0% Mar-2023 Jun-2023
Slide 43: 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’