Creative Newtech Limited · NSE:CNL
Creative Newtech — Q4 FY23 Earnings Presentation
39 slides from Creative Newtech's earnings presentation, May 2023
Slide 1: Result Update Presentation Q4 & FY23
Result Update Presentation Q4 & FY23 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+ 1992 1. Licensee of Honeywell Inc. Brands Products Started 2. 25+ Brands under said segments (FMSG+FMCT+FMEG+EB) Journey 3. 8000+ Trusted partners 536.76 Cr* 8000+ Market Happy Total 20+ branches in India Cap Channel Partners Over 300 sk
Slide 4: Business Overview
4 Business Overview Brand Licensing (like Jubilant food – Dominos Pizza & FMSG + FMCT + FMEG + EB CKart Page Industries – Jockey Comfort wear) • Online digital B2B • Currently Honeywell License Holder and offers a vast • FMSG: Niche Products that appeal to the younger eCommerce platform suite of pro
Slide 5: About Honeywell
ABOUT HONEYWELL 5 ~1,300 Sites, ~70 Countries ~$36 BILLION in sales for 2022 More Than 129,000 Employees Charlotte, N.C. Headquarters 53% of sales outside U.S. Fortune 100 NYSE: HON PERFORMANCE SAFETY AND BUILDING AEROSPACE MATERIALS AND PRODUCTIVITY SOLUTIONS TECHNOLOGIES TECHNOLOGIES
Slide 6: Who is Honeywell?
WHO IS HONEYWELL? 6 Business Overview Aerospace Building Performance Safety and technologies materials and productivity technologies solutions $11.8 Billion $6.0 Billion $10.7Billion $6.9 Billion Great Positions In Good Industries Honeywell developed the first Honeywell began the Smart Homes Honeywe
Slide 7: Great Positions in Diverse Industries
GREAT POSITIONS IN DIVERSE INDUSTRIES 7 Aviation Automotive & Buildings, Chemicals, Consumer Defence Efficiency, Transportation Construction Speciality Materials & Home & Space Energy & & Maintenance & Fertilizers Utilities Fire Protection Healthcare Industrial Natural Gas, Safety Scanning & First &
Slide 8: Honeywell
8 Honeywell Exclusive rights to sell across 38 countries
Slide 9: Honeywell: Tough Entry Barrier & Hyper Growth Ahead
9 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 10: Our Partners
10 Our Partners Fast Moving Social- FMSG Media Gadgets Fast Moving Consumer FMCT Technology Fast Moving FMEG Electronics Goods EB Enterprise Business
Slide 11: Target Addressable Market
11 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 multi-fold growth in personal-use, Internet connected devices Growing Social • Every millennial tends to follow multiple hobb
Slide 12: Q4 FY23 Financial Highlights – Standalone & Consolidated
12 Q4 FY23 Financial Highlights – Standalone & Consolidated Standalone Consolidated • Strong sales growth INR Crore Q4 FY23 Q4 FY22 YoY % Q4 FY23 Q4 FY22 YoY % driven by FMCT and EB Revenue from Operations 391.90 254.48 397.14 262.39 product segments Other Operation Income 5.84 5.97 5.84 5.97 Total
Slide 13: FY23 Financial Highlights – Standalone & Consolidated
13 FY23 Financial Highlights – Standalone & Consolidated Standalone Consolidated • Strong sales growth INR Crore FY23 FY22 YoY % FY23 FY22 YoY % driven by EB and FMCT segments Revenue from Operations 1,331.76 919.17 1,376.22 933.88 Other Operational Income 26.03 13.93 26.03 13.93 Total Income 1,357.
Slide 14: Consolidated Balance Sheet Highlights as on 31st March 23
14 Consolidated Balance Sheet Highlights as on 31st March 2023 As on As on As on As on INR Crore INR Crore 31st March 2023 31st March 2022 31st March 2023 31st March 2022 Equity 126.16 88.37 Non-Current Assets 9.97 10.73 Equity Share Capital 12.60 12.00 Property, Plant & Equipment 9.57 10.38 Other E
Slide 15: Segmental Revenue
15 Segmental Revenue *Sales in Crore FMSG FMEG 55.94 52.27 49.31 49.87 4.10 45.76 3.66 3.86 1.29 1.46 FMCT 69.44 66.00 EB 61.67 316.50 57.12 54.15 279.81 193.32 141.11 131.97 FMSG : Fast Moving Social-Media Gadgets FMCT: Fast Moving Consumer Technology FMEG: Fast Moving Electronics Goods EB: Enterpr
Slide 16: High Growth, High Margin and Small Working Capital cycle - the Criteria
16 High Growth, High Margin and Small Working Capital cycle - the Criteria Q4 FY22 Q4 FY23 12.56% 21.32% 53.78% 16.62% 70.46% 0.37% 23.50% 1.40% FMSG FMCT FMEG EB
Slide 17: Segmental Revenue FY22 vs FY23
17 Segmental Revenue FY22 vs FY23 FY22 FY23 14.33% 20.01% 58.05% 17.93% 66.97% 20.79% 0.78% 1.15% FMSG FMCT FMEG EB
Slide 18: Quarterly Segmental Revenue YOY
18 Quarterly Segmental Revenue YOY *Sales in Crore FMSG FMEG 3.66 55.94 1.46 49.87 FMCT EB 279.81 66.00 141.11 61.67 FMSG : Fast Moving Social-Media Gadgets FMCT: Fast Moving Consumer Technology FMEG: Fast Moving Electronics Goods EB: Enterprise Business
Slide 19: Annual Segmental Revenue YOY
19 Annual Segmental Revenue YOY *Sales in Crore FMSG FMEG 197.20 10.71 186.88 10.69 FMCT EB 921.60 246.71 194.15 542.16 FMSG : Fast Moving Social-Media Gadgets FMCT: Fast Moving Consumer Technology FMEG: Fast Moving Electronics Goods EB: Enterprise Business
Slide 20: Q4 FY23 Consolidated Financial Highlights in Charts
20 Q4 FY23 Consolidated Financial Highlights in Charts Sales in Crore Revenue from Operations (in Cr) PAT (in Cr) 421.24 9.10 397.14 7.69 319.14 6.45 262.39 238.71 5.18 4.03 EBITDA (in Cr) 13.27 12.69 11.49 9.28 7.66
Slide 21: Annual Consolidated Financial Highlights FY23
21 Annual Consolidated Financial Highlights FY23 Revenue (Rs. Cr.) EBITDA (Rs. Cr.) 80.08% 1402.25 45.12 74.15% 947.81 32.62 47.95% 18.73 526.32 16.82 38.31% 459.06 13.32 370.72 14.65% 26.28% 23.83% 11.36% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 ** FY23 ** PAT (Rs. Cr.) 27.25 105.17% 19.25 9.38
Slide 22: Consolidated Key Return Ratios
22 Consolidated Key Return Ratios RoE % RoCE % 22.15% 23.88% 20.38% 20.25% 23.21% 18.82% 16.93% 18.81% 17.55% 14.22% 16.00% 10.33% FY18 FY19 FY20 FY21 FY22 ** FY23 FY18 FY19 FY20 FY21 FY22 ** FY23 Focus on improving RoCE and long-term value creation *RoE = Net Profit/Net Worth | RoCE = EBIT/(Shareho
Slide 23: Future Ready Business Growth
23 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 24: Investment Rationale
24 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 25: Annexure
25 Annexure
Slide 26: Management Comment
Management Comment 26 “The last fiscal year witnessed several headwinds in the form of macro-economic volatility and geo-political tensions, impacting the overall markets. However, the shift towards digital technologies continues to drive demand. Our agile business model, selective strategies and ni
Slide 27: Management Team
27 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 28: Management Team
28 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 29: Our Business - Quadrant Segmentation
29 Our Business - Quadrant Segmentation We have ranked our products into Quadrants based on returns and working capital turns. QUADRANT 1 QUADRANT 2 HIGH MARGINS AND HIGH MARGINS AND QUICK CYCLE MEDIUM CYCLE QUADRANT 3 QUADRANT 4 LOW MARGINS AND LOW MARGINS AND MEDIUM CYCLE LONGER CYCLE We are focus
Slide 30: Primarily Focus - Quadrant 1
30 Primarily Focus - Quadrant 1 For Sustainability we have adopted this strategy that we will not disrupt our current business, at the same time we are focussing primarily on Quadrant 1 business with step- by-step diverting all our incremental resources towards the same The Quadrant1 business are pr
Slide 31: Key Focus and Strategy Ahead
31 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 32: Journey so far…
Journey so far… 32 Tie-up with ZEISS to distribute binoculars & monoculars Licensing agreement with Honeywell for air purifiers Agreement with Edelkrone for videography accessories Listed on NSE – SME stock exchange Tie-up with Reliance Retail for home appliance products 2012 - Foray int
Slide 33: Geographical Presence
Geographical Presence 33 Our Network We are present at following Locations Domestic Pune Vijayawada Varanasi Gurgaon • Pan India presence. Hong Kong Ludhiana Mumbai a Bangalore Ahmedabad • 31 branches across India. Kolkat • Over 320-strong highly skilled Delhi Ahmedabad workforce across India – mix
Slide 34: Driving Social Media Transformation through Digital Offerings
34 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 Experience Service Omni – Channel Strategy Marketing Customer experience Contract Customer Ma
Slide 35: Who we are
35 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 international brands under while expanding the business manufacturing designs/casts branded products in the licensing and also many
Slide 36: Who we are
36 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 37: Who we are
37 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 38: Key Developments
38 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 39: Thank You!
THANK YOU! www.creativenewtech.com