Slide 1: Exchange filing cover letter for earnings presentation
Registered & Corporate Office Redington 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 28460390 October 29, 2024 The National
Slide 2: Earnings Presentation Q2FY25
EARNINGS PRESENTATION Q2FY25
Slide 3: 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 4: Financial Highlights
Financial Highlights Highest Ever Revenue in any Quarter • Q2FY25 – YoY growth • Global excl. Arena - Revenue grew by 17%, EBITDA de-grew by 3% and PAT grew by 2% • SISA – Revenue grew by 24%, EBITDA grew by 4% and PAT grew by 13% • ROW excl. Arena – Revenue grew by 9%, EBITDA de-grew by 14% and PAT
Slide 5: Financial Highlights
Financial Highlights Highest Ever Revenue in any Quarter • Key Metrics – Global • WC days for Q2FY25 is 25 days, improvement of 10 days on YoY basis • Q2FY25 - ROCE was 21% and ROE was 15% • Net positive cash balance of INR 137cr. • Q2FY25 – CSG grew by 53% on YoY basis and MSG grew by 16% SISA : Si
Slide 6: Financial Highlights: SISA Business
Financial Highlights SISA BUSINESS Q2FY25 YoY Revenue grew by 24%, EBITDA grew by 4% and PAT grew by 13% ROCE was at 28% and ROE at 22%. WC days stood at 22 days, reduced by 16 days on YoY basis. INDIA DISTRIBUTION • Q2FY25 YoY Revenue grew by 25%, EBITDA grew by 4% and PAT grew by 11% • YoY Strong
Slide 7: Financial Highlights: ROW Business (Excl. Arena)
Financial Highlights ROW BUSINESS (Excl. Arena) Q2FY25 Excl. Arena YoY Revenue grew by 9%, EBITDA de-grew by 14% and PAT de-grew by 12% WC days stood at 30 days, down by 1 day on YoY basis PROCONNECT GLOBAL • Q2FY25 YoY - Revenue grew by 12%, EBITDA grew by 30% and PAT grew by 409% • H1FY25 YoY - Re
Slide 8: Q2FY25 Performance
Redington Q2FY25 Performance
Slide 9: Q2FY25 Redington Global Excl. Arena Performance
Q2FY25 Redington Global Excl. Arena Performance REVENUE GM EBITDA PAT 17% 1% 3% 2% 22,638 493 19,423 479 1,157 1,147 296 303 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 ₹ in Cr
Slide 10: Q2FY25 Redington Global Performance
Q2FY25 Redington Global Performance REVENUE GM EBITDA PAT 12% 5% 8% 3% 1,371 1,305 24,952 558 515 22,297 303 293 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 ₹ in Cr
Slide 11: Q2FY25 Performance by Market
Q2FY25 Performance by Market REVENUE GM EBITDA PAT 24% 5% 4% 13% 12,660 566 595 10,235 302 315 194 SISA 173 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 2% 12% 22% 25% 12,292 ROW 12,061 805 710 256 200 131 98 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 ₹ in Cr
Slide 12: Q2FY25 Performance by Market (Excl. Arena)
Q2FY25 Performance by Market (Excl. Arena) REVENUE GM EBITDA PAT 24% 5% 4% 13% 12,660 566 595 10,235 302 315 194 SISA 173 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 ROW Excl. Arena 9% 7% 14% 12% 9,188 9,978 592 553 192 165 124 109 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25
Slide 13: Q2FY25 Contribution by Market
Q2FY25 Contribution by Market REVENUE GM EBITDA PAT 39% 34% 46% 43% 54% 49% 59% 54% 61% 66% 51% 54% 57% 46% 41% 46% Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25 Q2FY24 Q2FY25
Slide 14: Q2FY25 Working Capital Days
Q2FY25 Working Capital Days SISA ROW GLOBAL 16 1 10 14 13 15 43 38 40 36 35 31 30 25 22 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25 Q2FY24 Q1FY25 Q2FY25
Slide 15: Q2FY25 Top Vendors
Q2FY25 Top 5 Vendors REVENUE 41% 39% OTHERS SAMSUNG 7% DELL EMC 6% 6% 7% LENOVO 7% 8% HP Inc 12% 10% APPLE 28% 29% Q2FY24 Q2FY25
Slide 16: Q2FY25 Verticals Revenue
Q2FY25 Verticals Revenue SISA ROW GLOBAL Verticals Q2FY24 Q2FY25 YoY Q2FY24 Q2FY25 YoY Q2FY24 Q2FY25 YoY ESG 3,516 4,202 20% 4,409 4,279 -3% 7,925 8,481 7% TSG 3,354 3,682 10% 2,331 2,633 13% 5,685 6,314 11% MSG 2,795 4,170 49% 4,717 4,543 -4% 7,511 8,713 16% CSG 314 478 52% 320 494 54% 634 972 53%
Slide 17: Q2FY25 Free Cash Flow Statement
Q2FY25 Free Cash Flow Statement Particulars (₹ in Cr) Q2FY24 Q1FY25 Q2FY25 Profit Before Taxation 408 292 381 Non-cash items 52 41 44 Finance Cost 82 60 105 Changes in Working Capital 815 (641) 2,006 Direct Tax Paid (109) (116) (150) Net Cash Flow from Operations 1,249 (363) 2,386 Capex (46) (16) (1
Slide 18: H1FY25 Performance
Redington H1FY25 Performance
Slide 19: H1FY25 Redington Global Excl. Arena Performance
H1FY25 Redington Global Excl. Arena Performance REVENUE GM EBITDA PAT 9% 3% 2% 7% 41,966 2,265 577 931 2,207 916 38,473 539 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 ₹ in Cr
Slide 20: H1FY25 Redington Global Performance
H1FY25 Redington Global Performance REVENUE GM EBITDA PAT 6% 4% 10% 2% 46,287 1,041 2,619 552 43,547 539 2,514 939 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 ₹ in Cr
Slide 21: H1FY25 Performance by Market
H1FY25 Performance by Market REVENUE GM EBITDA PAT 15% 3% 6% 11% 23,244 600 1,147 357 SISA 321 1,118 566 20,176 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 1% 9% 29% 22% 23,371 ROW 1,501 475 232 339 181 23,044 1,367 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 ₹ in Cr
Slide 22: H1FY25 Performance by Market (Excl. Arena)
H1FY25 Performance by Market (Excl. Arena) REVENUE GM EBITDA PAT 15% 3% 6% 11% 23,244 600 1,147 357 SISA 321 1,118 566 20,176 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 ROW Excl. Arena 2% 8% 5% 1% 18,722 1,147 350 331 218 220 1,060 18,296 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24
Slide 23: H1FY25 Contribution by Market
H1FY25 Contribution by Market REVENUE GM EBITDA PAT 36% 42% 34% 50% 54% 46% 54% 57% 64% 58% 66% 50% 46% 54% 46% 43% H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25
Slide 24: H1FY25 Working Capital Days
H1FY25 Working Capital Days SISA ROW GLOBAL 15 2 7 38 35 33 31 28 23 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY24
Slide 25: H1FY25 Top Vendors
H1FY25 Top 5 Vendors REVENUE 40% 39% OTHERS DELL EMC SAMSUNG 7% 7% 5% 7% LENOVO 7% 8% HP Inc 11% 10% APPLE 30% 29% H1FY24 H1FY25
Slide 26: H1FY25 Verticals Revenue
H1FY25 Verticals Revenue SISA ROW GLOBAL Verticals H1FY24 H1FY25 YoY H1FY24 H1FY25 YoY H1FY24 H1FY25 YoY ESG 6,680 8,008 17% 8,175 7,783 -5% 15,035 15,791 5% TSG 6,518 6,703 3% 4,983 5,192 4% 11,502 11,895 3% MSG 5,717 7,328 28% 9,046 8,437 -7% 14,763 15,766 7% CSG 628 921 47% 674 949 41% 1,302 1,87
Slide 27: H1FY25 Free Cash Flow Statement
H1FY25 Free Cash Flow Statement Particulars (₹ in Cr) H1FY24 H1FY25 Profit Before Taxation 760 674 Non-cash items 80 85 Finance Cost 147 165 Changes in Working Capital (730) 1,366 Direct Tax Paid (226) (266) Net Cash Flow from Operations 31 2,023 Capex (44) (34) Outflow of Finance Cost (144) (165) F
Slide 28: Shareholding Pattern
Shareholding Pattern Others Others Synnex 26.5% Synnex 26.6% Technology Technology Internationa Internationa l l Corporation Corporation 24.1% 24.1% Insurance Insurance Companies Companies 3.6% 3.7% FPIs FPIs (Corporates) (Corporates) 33.7% 33.9% Mutual Mutual Funds Funds 12.0% 11.9% Jun-2024 Sep-20
Slide 29: Investor Contacts
Investor Contacts Vijayshyam Acharya K 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 Produc
Slide 30: Corporate Presentation
—— \ il me of CORPORATE a PRESENTATION * i @Redington
Slide 31: Contents
Contents 01 04 About Redington ESG & CSR 02 05 Shareholders, Board of Financials Directors & Leadership team 03 06 Our Strategy and Growth Vectors Recognitions
Slide 32: Disclaimer
This presentation contains “forward looking statements” including, but without limitation, statements relating to the Disclaimer implementation of strategic initiatives, and other statements relating to Redington Limited’s future business developments and economic performance. While these forward-lo
Slide 33: About Us
Redington 5,200+ Products , Service & Solutions Company Redingtonians creating a culture of inclusion, ABOUT US • An Emerging Markets Multinational with presence across 40 markets creativity, and innovation • Distributor entire gamut of IT products, Smartphones, Solar, etc. • Service & Solutions Man
Slide 34: Company history timeline
1993 - 98 2003 - 06 • Commenced IT distribution in • Strategic investment by India with HP Contract. Synnex with 36% equity. • Consolidated top 4 brands – • Investment by PE Fund HP, Epson, Seagate & Intel. Chrys Capital with 11% • Started Redington Services, equity. the backbone of Solutions • Fora
Slide 35: Company history timeline 2015-2023
2015 - 18 2023 - 24 • India’s No 1 Distributor by VAR India. • Launch of Cloud Portal, our first e- commerce platform for all cloud • ISO 27001 Certification. products. • Most Preferred Workplace 2023 • Evolved from a promoter led to a • Awarded LinkedIn Top Companies in board-governed and professio
Slide 36: Core Values
Core Values Uncompromising Results integrity through teamwork Being open, honest and Individual contribution key to direct in our dealings our success Being transparent with Ensure effective our communications collaboration and actions Respect and Trust Strive for excellence Fostering a culture High
Slide 37: Fundamental Drivers of Our Success
Fundamental Drivers of Our Success Most Trusted Distributor Complete Life Cycle Management Technology Solutions Supply Chain Solutions Operational Excellence Financial Solution Coverage & Reach Investor Risk Management • Leading-edge tech • Optimized stock levels • Consistent delivery • Technology i
Slide 38: Portfolio
Portfolio End Point Solutions Group Technology Solutions Group Mobility Solutions Group Cloud Solutions Group PCs, Laptops, Desktops, Networking, Software, Smartphones Cloud Resell, Managed All-in-Ones, Printers, Server & Storage, Licensing & Services Consumables & Accessories Subscription, Enterpri
Slide 39: Brand Collaboration Top Brands
Brand Collaboration Top Brands Enviable Partnerships with over 450+ brands The Brand Names and Logos mentioned are the property of their respective owners and are used here for identification purposes only.
Slide 40: Presence
Kazakhstan Presence Azerbaijan GLOBAL FOOTPRINT Morocco Turkey Jordan Kuwait Libya Qatar UAE Bangladesh Bahrain Senegal Egypt Oman Ghana Saudi Arabia India Malaysia Nigeria Côte d'Ivoire Sri Lanka Uganda Singapore #1 - #2 Kenya Across All Markets Rwanda 32 Tanzania In Country Presence 40 Markets Ser
Slide 41: Route to Market
Route to Market CHANNEL PARTNERS Commercial/Enterprise IT Consumer IT Mobility • System Integrators • Large Format Retailers • Large Format Retailers • Corporate Resellers • Hypermarkets • Exclusive Brand Stores • Cloud Partners & Providers • E-tailers • Hypermarkets • ISVs • Marketplace Players • E
Slide 42: Shareholders
Shareholders Others 26.5% Synnex Technology International Corporation 24.1% Insurance Companies 3.7% FPIs (Corporates) 33.9% Shareholding date: 30 Sep 2024 Mutual Funds 11.9%
Slide 43: Board of Directors
Board of Directors Professor J. Ramachandran B. Ramaratnam Tu, Shu-Chyuan Chairman, Non- Executive Non Independent Director Non Executive Non Independent Director Independent Director Anita P Belani Chen, Yi-Ju Independent Director Non Executive Non Independent Director Sudip Nandy S.V. Krishnan Ind
Slide 44: Leadership
Leadership Group Chief Executive Officer S V Krishnan V. S. Hariharan Finance Director (Whole-Time) Ramesh Natarajan Viswanath Pallasena Serkan Çelik Cem Borhan CEO, Singapore, India CEO, Middle East & Africa CEO, Arena CEO, Redington & South Asia Turkey Serkan Kutlu Soumitra Kumar Das Sriram Ganesh
Slide 45: Corporate Strategy
Corporate Strategy Sustainable Profitable Accelerate Business Route to market Power of Core Growth Transformation “One Redington” Maintaining leadership Faster adoption of Segmented approach that Engaging our ecosystem position across subscription and enables high-touch by co-creating distinctive ge
Slide 46: Key Technology Trend
Key Technology Trend Technology Trends What it means for Redington GROWTH CAGR % INDIA Building a diverse product Enhancing support for 16% (2022-28) portfolio catering to hybrid cloud migration and hybrid 2024 Hybrid Cloud MEA cloud requirements infrastructure management 19.7% (2024-32) Global IT s
Slide 47: Biz Model Trends
Biz Model Trends Business Model Trends What it means for Redington • Focusing on life-cycle management and expand service offerings for Subscription Model long-term customer success Product to Services • Leveraging on technology to embrace recurring revenue models: invest in new cloud platform, buil
Slide 48: Approach towards ESG
Approach Our Sustainability Strategy towards ESG Reimagined Responsible Redefined Value Resilient Business 01 Efficiencies 02 Business Practices 03 Chain Engagement 04 1+ GW 1% 29% 70% Solar Capacity created Renewable energy Women representation on Board Trade vendors ESG aligned in India (7X Y-o-Y
Slide 49: Approach towards CSR
Approach Aligned to Business Social Cause Leverage business processes, Solve specific problems within towards CSR key partnerships and business thematic areas such as education and livelihoods basis the most expertise to create maximum value in focus areas critical needs Key Stakeholder Anchors Geog
Slide 50: Performance Since Listing
FY 07 86,672 FY 08 1,03,699 ₹ in Mn FY 09 1,19,186 FY 10 1,31,622 Revenue FY 11 1,63,734 FY 12 2,07,799 FY 13 2,34,462 CAGR 15% FY 14 2,72,441 FY 15 3,07,361 FY 16 3,44,198 FY 17 3,97,362 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 FY 23 7,95,187 FY 24 8,96,095 Perform
Slide 51: Shareholder Value Creation
Shareholder Value Creation FY24 Revenue $10.8 Bn. EPS Book Value/Share Shareholder Payout* CAGR 20% CAGR 14% ~40% of profit earned 17.8 16.4 15.6 40% 95 88 73 40% 40% 40% 63 9.7 32% 55 50 25% 6.6 6.4 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 19* FY 20 FY 21 FY 22 FY
Slide 52: Q2 FY25 Performance Snapshot
Revenue EBITDA PAT Q2 FY25 12% 8% 3% Performance Q2 FY25 ₹2,49,522 Mn Q2 FY25 ₹5,149 Mn Q2 FY25 ₹ 2,929 Mn Snapshot Q2 FY24 ₹2,22,966 Mn Q2 FY24 ₹5,579 Mn Q2 FY24 ₹ 3,035 Mn Net Debt - Equity ROE ROCE (0.02)x 15.3% 21.4% Q2 FY24 0.26x Q2 FY24 17.4% Q2 FY24 21.6% WC Components Inventory Charge % of s
Slide 53: Awards
Certified MEA Linked i) hele ae ORGANIZATION - >» FOR WOMEN 2023 < CERTIFIED ate ributor Of The Year
Slide 54: Thank You
THANK YOU Redington