Slide 1: Exchange filing cover letter for investor presentation
May 25, 2019 To, BSE Limited National Stock Exchange of India Limited Security Code - 517385 Symbol - SVMPHONV Sub.: Investor Presentation - Updates Dear Sir, This is in reference to the above mentioned subject line, we are enclosing herewith updated Investor Presentation. The same is also available
Slide 2: Corporate Presentation 2019
20 CORPORATE 19 PRESENTATION
Slide 3: Contents
2 19 CONTENTS PRODUCTS THE COMPANY MARKET SUBSIDIARIES FINANCIALS POTENTIAL
Slide 4: Products
\ \ ransom oS PRODUCTS
Slide 5: Air cooling simplified
4 19 Water distributor Cool filtered air Air cooling simplified Hot dry air Fan Evaporative media Water reservoir
Slide 6: Air cooling edge
5 19 Air cooling edge Runs at the Works on Use it outside, Delivers fresh, operating cost of inverter power use it inside filtered cool air a fan
Slide 7: Comparison between air-cooling appliances
6 19 Comparison between air-cooling appliances Parameters Fans Air coolers Air-conditioners Capital cost Low Low High Recurring cost Low 90% lower than ACs Very high Indoor air quality Circulates same air 100%-fresh filtered cool air Recirculates stale dry air Refrigerants No Water Ozone layer-deple
Slide 8: Widest product range
7 19 Widest product range Portable Air Cooler Range
Slide 9: Cloud and Touch air cooler range
8 19 Cloud – World’s First Wall Mounted Air Cooler Touch Air Cooler Range – with Touchscreen, and Voice Assist
Slide 10: IMPCO range
9 19 IMPCO range Industrial Air Coolers Window Air Cooler Range
Slide 11: GSK range
10 19 GSK range Industrial Air Coolers Mobile Commercial Air Coolers
Slide 12: Range of Household Coolers
11 19 Range of Household Coolers
Slide 13: Climate Technologies Pty Ltd range
12 19 Climate Technologies Pty Ltd range Residential cooler Commercial cooler Ducted Heating Unit Window air cooler Air conditioner Chilled Beam
Slide 14: Key Firsts
13 19 Key Firsts 1989 World’s first Plastic body air cooler
Slide 15: Key Firsts - Formats
14 19 Key Firsts - Formats 2009 2012 2016 2017 Introduced Introduced Introduced Introduced Tower Format Air Tower Format Desert Air Wall Mounted Air Cooler Touch range with 4-side Cooler Cooler removable pads and double blower
Slide 16: Key Firsts - Features
15 19 Key Firsts - Features 1994 2007 2016 Remote control Power Saver Technology i-Pure – Multistage Air Purification 2016 2016 2016 2017 Magic Fill for automatic Voice Assist Digital Touchscreen Gesture Control water filling
Slide 17: Company
“\ \ ransom oS COMPANY
Slide 18: Symphony HO - Ahmedabad
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Slide 19: Milestones
18 19 1988 1994 1995 – 2000 Pre-2000s Milestones Symphony established with one Listed on stock exchanges Diversified into ACs, washing machines Many products – One market air cooler model and other durables 2002 – 2007 Post-2005s 2009 – 2011 2011 2012 Introduced central air Recognition from the Fina
Slide 20: Business model
19 19 Business model Positioning 01 Design-driven 02 Brand-focused 03 • Focused on offering cutting-edge • Best-in-class design, a significant • World and India’s leading air- cooling technology advantage over competitors cooler brand • Progressively product-agnostic • Next generation coolers with •
Slide 21: Growth Drivers
20 19 Growth Drivers Short Term Medium Term Long Term Growth Driver Growth Driver Growth Driver Domestic Industrial Export Market market for Coolers (IC) and for Household Household Commercial Cooler Cooler (HC) Coolers (CC)
Slide 22: Growth Pillars
21 19 Growth Pillars Core Strengths Customer Centric Improving Efficiency • Continuous product • Understanding • Focus on single innovation consumer needs product (Air Cooler) • Quality • Path breaking cooler • Mantra across the Consciousness models company “Add value • Strong trade • Turning a comm
Slide 23: Sectoral entry barriers
22 19 Sectoral entry barriers Leader in Leader in brand Leader in terms Leader in distribution and and category of innovation management after sales status service Technology, design, Focused approach Entrenched Serving 150 K post quality, features and experience office locations performance (what t
Slide 24: Organogram
23 19 Organogram Board of Directors Chairman & Managing Director Executive Director - Corporate Affairs CEO - India CFO - Global CEO – International Subsidiaries President Sales & Marketing AVP – Sr VP - Sales & Sr GM - Accounts & Quality Assurance Service - India Trade Finance AVP – Central GM - Fi
Slide 25: Professional Management
24 19 Professional Management Competent board of directors consisting of industry veterans having global exposure and expertise Well qualified experienced professionals at all levels of management Middle and lower management team consists – Engineers (from IITs, renowned institutions), Charter
Slide 26: The People
25 19 The People Succession Planning • Identified key positions in all functions • Implemented succession planning / contingency planning for the key positions Investing in people of the company • Regular on-job / off-job training programs • Leadership development programs • Imbibing core cultural v
Slide 27: Corporate Governance & Beyond
26 19 Corporate Governance & Beyond Corporate philosophy is highest level of corporate governance, much beyond statutory compliances High level of transparency and accountability Investor friendly with adequate minority protection policies Dissemination of all relevant industry, company perf
Slide 28: The Digital Systems
27 19 The Digital Systems • Facilitating online buying • Easy access to product installation guide for customers • Adding more and more digital features in product ranges • Providing customer delight • Robust internal control systems supported by well developed IT enabled systems • Automated after s
Slide 29: At a glance
28 19 At a glance 9 5 50+ 23 50 Manufacturing Different Ranges Residential Cooler C&F Depots Branches facilities including Models + Wide SEZ range of Industrial and Commercial coolers Robust IT 275+ 1000+ 30000+ 1000+ infrastructure – SAP, Business Field Sales & Distributors Dealers Covering Authori
Slide 30: Advertising Campaigns
29 19 Advertising Campaigns Symphony - the hallmark of trust Using all forms of advertisement modes Below-the-line Internet Electronic Print Radio marketing (since 2010) activities The result: Symphony has cemented its identity as a generic name for air coolers Garmi ko karo Garmi ko karo Garmi ko k
Slide 31: Market Potential
\ \ ransom oS MARKET POTENTIAL
Slide 32: Central Air Cooling Solutions - facts and figures
31 19 Central Air Cooling Solutions - fact and figures “90% of American firms named cool air as the single biggest factor determining their productivity.” “Cooling raised productivity by a quarter. On factory floors it cut absenteeism and stoppages.” (Source: The Economist, Page 41, January 2013 iss
Slide 33: Central air cooling solutions - long runway
32 19 Central air cooling solutions - long runway Opportunity and size Factories Universities Warehouses Lecture halls The centralised air-conditioning market Shops and showrooms Service stations in India is estimated to be worth Rs. Religious institutions Offices 40,000 million Club houses Poultry
Slide 34: Central air cooling solutions - enterprise customers
33 19 Central air cooling solutions - enterprise customers Working with esteemed brands
Slide 35: Industrial Coolers - Installations
34 19 Industrial Coolers - Installations KENT RO, NOIDA VOLTAS AC, RUDRAPUR CHOKHI DHANI, JAIPUR BAJAJ AUTO SHOWROOM, SURAT
Slide 36: Central air cooling solutions - Global Installations
35 19 Central air cooling solutions - Global Installations JD.COM WAREHOUSE, CHINA AMPHITHEATRE, DUBAI GASPER MASS STADIUM, MEXICO TEXTILE FACTORY, VIETNAM
Slide 37: Central air cooling solutions - Ramtirth Mandir
36 19 Central air cooling solutions - Ramtirth Mandir
Slide 38: Air Cooling Solutions - our international presence
37 19 Air Cooling Solutions - our international presence Direct Presence
Slide 39: International markets - long runway
38 19 International markets - long runway AC global market Air cooler seen as a Global warming Air cooler market size expected to be Green Product – accelerating potential should 150 million by 2020 gaining popularity demand logically be greater (industry report)
Slide 40: Subsidiaries
CORPORATE 2\ \ sympHony LIMITED PRESENTATION \ SUBSIDIARIES
Slide 41: Impco S.de R.L. de C.V., Mexico
40 19 Impco S.de R.L. de C.V., Mexico
Slide 42: IMPCO - milestones
41 19 IMPCO - milestones 1930s 1930-Adam Goettl invented the air cooler 1939-Adam and Gustav Goettl founded International Metal Products Company (IMPCO) 1940s IMPCO became a market leader in evaporative air coolers in US 1950s 1955-International Metal Products Company de Mexico, S.A. de C.V.
Slide 43: IMPCO - milestones
42 19 IMPCO - milestones 1961 The first portable cooler was introduced 1970s 1997-International Metal Products de Mexico, S.A. de C.V., changes its name to IMPCO, S.A. de C.V. to be better positioned in the Mexican market 1990s 2007 Created Master Cool in USA, the IMPCO was selected to make
Slide 44: IMPCO - milestones
43 19 IMPCO - milestones 2009 Symphony Limited acquires IMPCO and starts restructuring the company in all aspect Following Symphony’s strategy to conquer new markets and leveraged by its global sales organization, IMPCO products are now present not only in Mexico and in the USA, but have been so
Slide 45: IMPCO Organogram
44 19 IMPCO Organogram Juan Bendeck General Director Patricio Mejia Javier Reza Hortencia Martinez Guadalupe Villa Arturo Silva Alvaro Trevino Industrial Sales Residential Sales Marketing Manager HR Manager Finance Manager Operations Director Director Director Supported by 75+ members strong team
Slide 46: Impco - distribution
45 19 Impco - distribution Strong distribution network in Mexico, USA, Central America and parts of South America. Strong presence in leading retail chains like Walmart, Sears, Home Depot, Costco etc. Presence
Slide 47: Impco - brands and installations
46 19 Impco - brands and installations Air-cooled entire Mecca Complex in Saudi
Slide 48: Impco - installations
47 19 Impco - installations Nissan Factory GE Lighting Zentralia Mall Walmart warehouse
Slide 49: Guangdong Symphony Keruilai Air Coolers Co. Ltd (GSK) - China
48 19 Guangdong Symphony Keruilai Air Coolers Co. Ltd (GSK) - China
Slide 50: GSK - milestones
49 19 GSK - milestones 2001 2002 Keruilal was established as China’s first The first evaporative air cooler brand in air cooler brand China to meet the technology evaluation requirement of “Green Star Products” 2014 Appointed leader of the technical 2011 committee to draft and publish three national
Slide 51: GSK Organogram
50 19 GSK Organogram Xin Junzhe General Manager Xu Yang Michael Gong Rongguan Chen Jack Wang Rose Xu Peter Zheng Operations Domestic Sales Deputy GM R&D Manager HR Manager Finance Manager Manager Director HC & CC Sales Supported by 100+ members strong team
Slide 52: GSK R&D
51 19 GSK R&D One of the most advanced laboratory in evaporative air cooling industry globally located in China Spread over 2,200 m2 with fixed assets investment over ¥ 10 million Recognized by National Commercial Refrigeration Equipment Quality Supervision and Inspection Center of China
Slide 53: GSK - opportunities
52 19 GSK - opportunities Only internationally- recognized Chinese air Cutting-edge R&D cooler brand Market access to expertise China China’s FTA with Inherent synergy Sourcing advantage ASEAN countries
Slide 54: Climate Technologies Pty Ltd, Australia
53 19 Climate Technologies Pty Ltd, Australia
Slide 55: Bonaire USA LLC, USA
54 19 Sympheny Bonaire USA LLC,
Slide 56: Climate Technologies Pty Ltd - milestones
55 19 Climate Technologies Pty Ltd - milestones 1972 – Ted Celi started Celair operation 1998 – Celair purchased Bonaire (established in 1954) and was renamed as Climate Technologies 2005 – Begins exporting to USA 2008 – Launched 5 star rated ducted gas heating range 2011 – Purchased Bradflo Commerc
Slide 57: Climate Technologies Pty Ltd Organogram
56 19 Climate Technologies Pty Ltd Organogram Tim O’leary Chief Executive Officer Corry Higgins Shane Austin David Aird Patrick Larven George Wallwork Jason Dorsey National Sales General Manager Chief Financial National GM Aftermarket & R&D Manager Manager Operations Officer HR Manager Refrigeration
Slide 58: Climate Technologies Pty Ltd – benefits of acquisition
57 19 Climate Technologies Pty Ltd – benefits of acquisition • Climate Technologies – a dynamic and profitable company • Access to new geography • Strong foothold in USA • Local manufacturing in USA • US presence through Home Depot relationship (2200 stores in America) • Product portfolio strengthen
Slide 59: Climate Technologies Pty Ltd - brands
58 19 Climate Technologies Pty Ltd - brands
Slide 60: Financials
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Slide 61: Revenue break-up 2018-19 (Consolidated)
60 19 Revenue break-up 2018-19 (Consolidated) Revenue break up Gross Revenue Rs. 883 cr India: 57% Rest of World: 43% Rs. 499 cr Rs. 384 cr Air cooler: 93% Others: 7% Rs. 465 cr Rs. 34 cr EBIT (Rs. Cr) (Standalone) Capital Employed# (Rs. Cr) (Standalone) ROCE (%) (Standalone) Air Coolers Corporate F
Slide 62: Accelerates performance
61 19 Accelerates performance Profit and Loss Statement Segmental Consolidated Standalone Segmental Consolidated Standalone Particulars (Rs. Cr.) Revenue (Rs. Cr.) FY16* FY17 FY18 FY19 FY18 FY19 FY16* FY17 FY18 FY19 FY18 FY19 India 471.1 596.9 622.2 466.8 621.3 466.6 Revenue from 594.0 764.8 798.3 8
Slide 63: Accelerates performance (Consolidated) - Profit & Loss
62 19 Accelerates performance (Consolidated) Financials - Statement of Profit & Loss Gross Revenue Profit after tax PBT % (Rs. crore) (Rs. crore) (of gross revenue) 31.5 31.1 28.8 29.1 883 26.9 852 808 25.1 193 166 625 158 18.7 560 503 116 106 364 91 60 2013 2014 2015 2016* 2017 2018 2019 2013 2014
Slide 64: Accelerates performance (Consolidated) - Balance Sheet
63 19 Accelerates performance (Consolidated) Financials - Balance Sheet Shareholders Fund Capital employed Capital employed Debt (Rs. crore) Air coolers (Rs. crore) Corporate funds (Rs. crore) (Rs. crore) 481 669 422 612 190 189 173 465 292 138 246 328 306 195 276 180 83 81 188 222 139 60 19 26 0 0
Slide 65: Financials - Shareholder value creation
64 19 Accelerates performance (Consolidated) Financials - Shareholder value creation EBIDTA margin Dividend payout Dividend payout Book value@ % (Rs. crore) % (Rs.) 32.1 31.0 29.7 29.9 105.3 88.9 27.7 26.2 95.7 87.4 20.2 66.5 58.9 50.3 50.8 53.2 44.3 41.5 46.9 43.8 39.4 37.9 38.0 31.6 31.8 26.6 19.0
Slide 66: Disclaimer
DISCLAIMER This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections abo
Slide 67: www.symphonylimited.com
www.symphonylimited.com AUSTRALIA MEXICO CHINA USA Climate Technologies Impco S de R L de C V Guangdong Symphony Bonaire USA LLC Pty Ltd Keruilai Air Coolers Co. Ltd 26 Nylex Avenue AYAX 611, Parque Taiying Industrial Area, 470 Mirror CT Suite 101 Salisubury South SA Industrial Kalos Hongmei Town, 5