Slide 1: An Integrated Supply Chain Solutions Provider: An Overview
` An Integrated Supply Chain Solutions Provider An Overview March 2016
Slide 2: Business & Management, Financial Summary, Risk Management
Business & Management Financial Summary Risk Management 2
Slide 3: Corporate Overview
Corporate Overview Commenced distribution operations in India in 1993 Evolved into Supply chain Solutions Provider (traditional cash and carry model to management of inventory) ~ Distribution Channel spans across India, South Asia, Middle East, Africa & Turkey ~ Distributes over 200 brands of Global
Slide 4: Redington's Supply Chain
Redington’s Supply Chain ¥REDINGTON Inventory risk | Market risk
Slide 5: Value in Supply Chain
Value in Supply Chain Supply Chain 5
Slide 6: Competitive landscape
Competitive landscape Indian Market ~ Ingram Micro and Avnet present among Global Players ~ Redington and Ingram Micro of similar size; ~ Other smaller regional players include: Savex, Compuage, Rashi Peripherals Global Players Middle East , Africa & Turkey ~ Ingram Micro and Arrow present in Middle
Slide 7: Peer comparison 9MCY15
9MCY15 [JAN - SEP] Particulars Redington Ingram Micro Synnex Tech Tech data Total revenue in US$ Mn 3,807 31,711 7,205 18,899 GM% 6.1% 6.1% 4.1% 5.0% SG&A% 3.8% 5.5% 2.2% 3.6% EBIT% 2.3% 0.6% 1.9% 1.4% PAT% 1.3% 0.2% 1.5% 0.9% Working capital days 53 25 56 21 7
Slide 8: Top IT companies – India
Top 20 IT companies – India RANK RANK RANK Revenue in Crore Growth COMPANY FY 13 FY 14 FY 15 FY15 FY 14 FY 13 FY 12 FY 15 FY 14 FY 13 1 1 1 Tata Consultancy Services 94,648 81,809 55,134 43,794 16% 48% 26% 2 2 2 Cognizant Technology Solutions 65,779 55,894 41,602 29,162 18% 34% 43% 3 3 3 Infosys Tec
Slide 9: Top IT distributors – India
Top 50 IT distributors – India Revenue in Crore REVENUE REVENUE REVENUE REVENUE REVENUE REVENUE RANK COMPANY RANK COMPANY FY15 FY14 FY13 FY15 FY14 FY13 1 Ingram Micro 15,823 14,128 12,024 26 Sakri IT Solutions 230 180 145 2 Redington 14,610 13,657 11,746 27 Datamation Services 228 228 225 3 HCL Info
Slide 10: Top IT distributor - Middle East
Top 15 IT distributor - MIDDLE EAST Company Position 2014 2013 Auditor Staff Redington Gulf FZE Same $2.62bn $ 2.32bn Deloitte & Touché 1,750 BDL Group Same $ 903m $ 770M Dr. Usaama Tabbara 322 Metra Computer FZCO Same $ 830m $ 723m Ernst & Young 800 Global Distribution FZE $ 607.99m $ 464m Moore St
Slide 11: Redington – Strong Brand Recall
Redington – Strong Brand Recall ~ Only company with ~ India distribution ~ Middle East & Africa (110+Warehouses) and Service Network (360+ Service centres) Customer Centric Sustained Differentiating Leadership Service Position REDINGTON Vendor Centric Strong & Loyal Business Management Relationships
Slide 12: 125 brands… Wide pan-India presence
Wide pan-India presence 125 brands… Brand Categories IT- Peripherals, PCs , PC components, UPS, Networking products, Packaged software, Storage products, High- end servers Non-IT- Telecom devices, Consumer durables, Digital printing press, Tablets & Gaming consoles. Distribution / Service Network 30
Slide 13: India - VAT Structure
India - VAT Structure ~ Multiple Tax structures across different provinces ~ Single / Uniform VAT (GST) will bring competitive advantage to Redington. LBT Mumbai VAT Import Duty 13
Slide 14: GST – Proposed framework
GST – Proposed framework • Excise duties / Service tax / CVD / SAD Coverage • VAT / Entry tax / Purchase tax / Entertainment tax / Luxury tax • Cesses & Surcharges on supply of goods & services • Dual GST for Centre and States, IGST on inter-state transactions • Additional 1% tax on inter-state supp
Slide 15: Benefits of GST
Benefits of GST GST Credit Simplified Uniformity Fungibility Compliance Focus on No Tax Simple Tax Business Cascading Structure GST is neutral to factors of production, business processes, business models, organizational structures and geographical locations 15
Slide 16: Benefits of GST to Redington
Benefits of GST to Redington • Ambiguity in classification as ‘goods’ or ‘service’ made irrelevant, being a common goods and services tax • Credit fungibility across the board reducing the cascading effect of taxes on inventory cost • Ease of administrative compliance thru’ simplified tax structure
Slide 17: 100+ Brands… META Presence
META Presence 100+ Brands…. Brand categories IT - Peripherals, PCs , PC components, UPS, Networking products, Packaged software, Storage products, High- end servers Non-IT- Mobile handsets, Tablets Distribution / Service Network 11,000 21 27 24* 26 22 Channel No of Sales Warehouses Service Partner P
Slide 18: Longstanding Vendor Relationships
Longstanding Vendor Relationships 18
Slide 19: Growth Strategy
Growth Strategy BY ADDING - : “- EXPANDED INTO NEW MARKETS” “- FORAYED INTO NEW BUSINESS” Turkey (2010) “ – PENETRATED NEW PRODUCT 3PL Logistics Kazakhstan (2011) CATEGORIES” (2008) Digital Printing Cloud services Press (2005) (2015) “ - BRANDS” Smartphones (2008) Apple, Samsung Tabl
Slide 20: Logistics Facilities – India
Logistics Facilities – India CHENNAI Acquired Land in ~ Chennai - 11.56 acres ~ Kolkata - 13.76 acres ~ New Delhi - 13.32 acres ~ Mumbai - in process KOLKATA • Chennai ADC operational since July 2009 • Kolkata ADC is Operational since Feb 2014. • Delhi ADC : Land approval in final stages. • Intentio
Slide 21: Logistics Facilities - Gulf
Logistics Facilities - Gulf Long Lease ~ Dubai - 5.16 acres Dubai ADC operational since Sep 2010 21
Slide 22: ProConnect Customers
ProConnect Customers REDINGTON a SONA. —-nComputmg? Lenovo. Q)D[DO hi ras <nemern 9" @BOSCH eommne UniverCell” We as: velocis 2 "ie" IT 8/S/H) Sy MEemr univers asocomec Preethi CybSGam Nook *secomec TATA TELESERVICES Teiumph CGOENSWORTH nt ene .) > wu TRANSITION | Suen re Bay vodafone BERSEAC atm Co
Slide 23: Ensure Support Services
Ensure Support Services End to End Support Capabilities - Single Point of Contact for all service needs Technical Call Center Bench & on-site support, Warehousing, forward & reverse logistics, Re-exports, No Fault Found (NFF) validations, Business specific CRM & SCM support and integrati
Slide 24: Ensure Support Services
Ensure Support Services – 90% of the customer locations can be reached in 1 business day. – 95+Owned Service centers and 260+ partner service centers • Brands supported : 24
Slide 25: Redington Value Chain
Redington Value Chain Inventory Risk Market Risk Warehousing Credit to After Sales Procurement Logistics & Resellers Service Procurement Logistics Services Company Company 25
Slide 26: Redington – India
Redington – India REDINGTON (INDIA) LIMITED Nook Micro Ensure Support Distribution Cadensworth ProConnect Supply Services (India) Redington (India) Limited (India) Limited Chain Solutions Ltd, Limited Investment Ltd 100% 100% 100% 100% 47.6% Currents Technology Retail India Ltd 100% 26
Slide 27: Redington - Overseas
Redington - Overseas Arena International FZE, Dubai Redington Distribution REDINGTON (INDIA) LIMITED Arena 100% Pvt Ltd, Singapore 100% Bilgisayar Redington Sanayi Ve Sensonet Teknoloji Elelektronık , Redington International Turkey Holdings Ticaret Turkey 99.8% Mauritius Ltd, S.A.R.L , Anonim Luxemb
Slide 28: Management
Management Ashish Bharti President – IT Volume Distribution ME M.Raghunandan Aloysius Fernandes Whole - time Director President – IT Volume Distribution Africa Ramkumar B P.S. Neogi President– IT Value Added Distribution Joint Chief Operating Officer– IT Division, India ME & A Board of Directors Jim
Slide 29: Board of Directors
Board of Directors NON EXECUTIVE DIRECTORS EXECUTIVE DIRECTORS INDEPENDENT DIRECTORS Mr.R.JAYACHANDRAN PROF.RAMACHANDRAN Mr. RAJ SHANKAR Ex.Chairman BOC Professor of Business Policies Managing Director Olam International, Singapore IIM, Bangalore Mr. V. S. HARIHARAN Mr. R. SRINIVASAN Mr. M. RAGHUNAN
Slide 30: Business & Management, Financial Summary, Risk Management
Business & Management Financial Summary Risk Management 30
Slide 31: Financial Snapshot
Financial Snapshot Total Revenue EBIDTA PAT Rs. in mn Rs. in mn 7,619 3,16,227 Rs. in mn 7,196 6,842 3,918 2,80,051 CAGR 17% CAGR 18% CAGR 18% 6,334 2,49,846 3,367 2,42,104 5,780 3,231 2,12,220 2,927 2,881 4,717 1,67,227 2,260 1,32,777 3,657 1,23,760 3,296 1,843 1,05,425 1,597 2,590 88,539 1,361 1,9
Slide 32: Financial Snapshot (cont'd)
Financial Snapshot (cont’d) Earnings Per Share^^ (Rs.) Book Value per share (Rs.) 70 66.4 12 60 57.6 9.8 10 48.8 8.1 8.4 50 8 7.4 7.2 39.5 40 5.7 31.7 33.2 6 4.7 30 25.7 27.4 4.1 4 3.5 20 18.5 3.1 16.1 2 10 0 0 *Post Acquisition of following entities - FY08*( (Easyaccess Financials Services Ltd.,) F
Slide 33: Financial Snapshot (cont'd)
Financial Snapshot (cont’d) ROCE (%) ROE (%) 20% 25% 23.9% 18.9% 18.5% 22.8% 18.2% 18.4% 17.7% 17.2% 17.2% 21.2% 21.7% 16.0% 20.0% 20% 19.0% 19.1% 14.6% 17.7% 18.2% 15% 14.2% 15.4% 15% 10% 10% 5% 5% 0% 0% *Post acquisition of following entities - FY08 (Easyaccess Financials Services Ltd.,), FY11(Are
Slide 34: Consolidated Financials
Consolidated Financials (Rupee in mn) FY 07 FY 08* FY 09 FY 10 FY 11 FY 12 FY 13 FY14^ FY 15^^* 9MFY16 Total Revenue 88,539 1,05,425 1,23,760 1,32,777 1,67,227 2,12,220 2,42,104 2,80,051 3,16,227 2,49,846 EBIDTA 1,985 2,590 3,296 3,657 4,717 6,334 6,842 7,196 7,619 5,780 PAT 1,017 1,361 1,597 1,843
Slide 35: Dividend Distribution
Dividend Distribution 95% On face value of Rs.2/- per share 55% 50% 45% 40% 35% 25% 20% 20% FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 35
Slide 36: Shareholding structure
Shareholding structure Others Others Mutual Funds Mutual Funds 8.1% 8.4% 15.7% 15.8% Harrow Harrow Investment Investment Standard Standard Holding Holding Chartered Chartered Limited Limited Private Equity Private Equity 13.3% 13.3% 11.9% 11.9% 31-DEC-15 30-SEP-2015 Synnex Synnex Mauritius Mauritius
Slide 37: REDIL Stock Performance Vs. Index
REDIL Stock Performance Vs. Index REDIL @BSE REBASED BSE MIDCAP REBASED 180 130 80 CNX NIFTY REBASED REDIL@ NSE REBASED 200 160 120 80 37
Slide 38: Business & Management, Financial Summary, Risk Management
Business & Management Financial Summary Risk Management 38
Slide 39: Prudent Risk Management
Prudent Risk Management Business Risks Risk Mitigation Strategy Gross Margins Increasing Value Portfolio, New Initiatives Vendor And Product Spread Concentration Broad basing Vendors, Depth in major Product lines Relationship with over 200 vendors, many of which are for more than 10 years Range
Slide 40: Revenue by Vertical
Revenue by Vertical 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 5% 8% 9% 14% 18% 19% 16% 18% 21% 22% 93% 90% 89% 84% 80% 79% 82% 80% 77% 76% IT Non –IT Services 40
Slide 41: In Closing
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Slide 42: Thank you
Thank you