Redington Limited · NSE:REDINGTON
Redington — Investor Presentation (September 2022)
41 slides from Redington's investor presentation, Sep 14, 2022
Slide 1: Investor Presentation 14th Sep 2022
INVESTOR PRESENTATION 14th Sep 2022
Slide 2: Agenda
Agenda • About Redington • Our Financials • Trends and Redington Strategy • Building capabilities • Our approach to ESG • Recognitions
Slide 3: Our Global Leadership Team
Our Global Leadership Team Rajiv Srivastava S V Krishnan Sriram Ganeshan Serkan Kutlu Soumitra Kumar Das Ramesh Natarajan Managing Director Whole Time Director Global Chief Global Chief Global Chief HR Chief Executive Officer & Global Chief Commercial Officer Strategy Officer Officer - Redington Ind
Slide 4: About Redington
Products , Service & Solutions Company • An Emerging Markets Multinational with presence across 40 markets • Distributor → entire gamut of IT products, Smartphones, Solar • Service & Solutions → Managed, Cloud, Logistics, BPM, BPO, 3D Printing services Expansive Network & Strong Relationships • Over
Slide 5: Our Portfolio
Our Portfolio PCs, desktops, laptops, Printers, consumables Smartphones Networking – switching, Software - productivity Building the optimal data Licensing & iPads and MacBooks and accessories routing to SDN’s and Application strategy for customers Subscription services Enterprise security Cloud res
Slide 6: Our Presence
Our Presence Our Presence Enviable “In country” presence serving 40 markets No.1 position in MEA No.2 position in India & other markets “High potential” markets FY22 Revenue India : $3.7bn $1bn each in UAE and Saudi Presence across product categories Portfolio of Marquee brands
Slide 7: 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 Envia
Slide 8: 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 & Human Capital Policy & Strategy Hewlett-Packard, Ingram Micro, Director Leader IIM, B
Slide 9: Our Shareholders
Our Shareholders HDFC Mutual Fund Fidelity Management & Research (FMR) Others Synnex ICICI Pru Life Insurance 25.5% Mauritius Limited Franklin Templeton Investments 24.1% Massachusetts Institute Of Technology Investment Management Company The Vanguard Group Mutual Funds Tata MF 11.6% FIIs & FPIs Rua
Slide 10: Agenda
Agenda • About Redington • Our Financials • Trends and Redington Strategy • Building capabilities • Our approach to ESG • Recognitions
Slide 11: 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 CAGR : 14% 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 ₹ in Mn FY 22 6,27,316 FY 07 1,985 FY 08 2,590 FY 09 3,296
Slide 12: Shareholder Value Creation
Shareholder Value Creation EPS Book Value/Share Shareholder Payout* CAGR : 23% CAGR : 13% ~38% of profits earned In ₹ In ₹ 16.4 73 60% 63 55 50 40% 37% 9.7 44 32% 39 53% 6.6 6.4 6.0 20% 5.8 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 17 FY 18 FY 19* FY 20 FY 21 FY 22 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 *
Slide 13: Hygiene Parameters
Hygiene Parameters WC Days Free Cash Flow Provisions Six years Cumulative FCF: ₹ in Mn Six years Average : INR 62,273 Mn Provision for AR : 0.10% Inventory Charge : 0.04% 44 43 33,600 37 31 0.12% 0.08% 9,671 9,113 14 14 7,062 3,392 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 17 FY 18 FY 19 FY 20 FY 21 FY
Slide 14: Q1FY23 Performance Snapshot
Q1FY23 Performance Snapshot REVENUE EBITDA PAT 25% 34% 33% Q1FY23: Rs. 1,68,283 Mn Q1FY23 : Rs.4,870 Mn Q1FY23 : Rs.3,158 Mn Q1FY22: Rs. 1,34,740 Mn Q1FY22 : Rs.3,642 Mn Q1FY22 : Rs.2,367 Mn WC Days ROCE^ ROE 28 Days 41.1% 21.3% Q1FY22 : 18 days Q1FY22 : 52.2% Q1FY22 : 18.8% ^ROCE is calculated net
Slide 15: Agenda
Agenda • About Redington • Our Financials • Trends and Redington Strategy • Building capabilities • Our approach to ESG • Recognitions
Slide 16: Digital Will Impact Everyone, Everywhere
Digital Will Impact Everyone, Everywhere Consumers Acquiring Engage Deliver Innovate Customers Experience Evolving Customer Workforce Operational New Products Lifestyles Targeting and Efficiency Excellence Services and Engagement Business Models Business Growth, Efficiency Customer Experience
Slide 17: Key Technology Trends
Key Technology Trends In 2022 : Global ICT spend growth at 5%, India $111Bn @ 6% and MENA $170Bn @ 3%. HYBRID CYBER DIGITAL EMERGING TRENDS 5G 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% META: 15.3% M
Slide 18: Key Biz Model Trends
Key Biz Model Trends Consumption Omni channel Investment Diversification Work location models CONSUMPTION MODELS TRENDS Products to M&A, Product, Hybrid work Physical to Online Emerging Tech Services Geo Model FOR • Transition to XaaS • Digital Business Model • Invest on future tech • Strengthen hig
Slide 19: Our Objectives
Our Objectives Brand Market Acquisitions Share • Aggressive share gain across Products, Brands & Gains Markets • Customer choice, Omni-Channel presence • Increase Digital adoption, provide everything “As a Service” Market New • Lead in ESG Expansion Business Opportunities • Be the most admired organ
Slide 20: Objectives
Simple approach to business 1 2 3 4 Subscribe Digital Technology Everything as a One Redington Growth Focus 20 Distribution Service (XaaS) Globally consistent #1 Technology Provider in #1 Digital Technology Establishing subscription processes, best practices all geographies we serve, Distributor of
Slide 21: 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 22: Strategic Admiration: Framework
Strategic Admiration : Framework ▪ Visibility ▪ Market Leadership ▪ Authenticity ▪ Financial Performance ▪ Competitiveness ▪ Distinctiveness Communication Capability ▪ Innovation ▪ Thought Leadership C3 Culture ▪ Customer Citizenship ▪ Corporate Citizenship ▪ Employee Citizenship ▪ Corporate Governa
Slide 23: Agenda
Agenda • About Redington • Our Financials • Trends and Redington Strategy • Building capabilities • Our approach to ESG • Recognitions
Slide 24: Building a capable Redington: Business of people!
Building a capable Redington: Business of people! Theme Our actions • Diverse leadership team of deep domain experts Best in class leadership team • Structure a combination of Global function and Geo business leaders • Globally consistent, locally responsive – close to customers and partners • Best
Slide 25: Building a capable Redington: Tech initiatives
Building a capable Redington: Tech initiatives Category Initiatives Description Partner and Vendor CRM ▪ Sales Automation, lead management, marketing and partner analytics experience Data Analytics ▪ Visualization & data governance models for insights and recommendations Employee experience Self ser
Slide 26: Building a capable Redington: Digital Platform
Building a capable Redington: Digital Platform Digital Distribution Our Vision & • Be the #1 Digital Technology Distributor in the world Aspirations • Industry best in technology and innovation, full omni-channel experience Technology GTM Operations • Current: B2B platform • Current: Ecom stock & se
Slide 27: Building a capable Redington: Supply Chain Services
Building a capable Redington: Supply Chain Services Logistics Services Our Vision & • Be the most innovative and technology enabled supply chain company in our chosen markets Aspirations • Focused on gaining market share by leveraging capabilities and expertise Technology GTM Operations/Talent • Dig
Slide 28: Building a capable Redington: RedServ Overview
Building a capable Redington: RedServ Overview $7Bn Spend 500K PO’s 100K invoices 10+ years 1 2 managed 900K SO’s experience Deep Domain Customer First 60K parts Expertise Approach 10K+ Partners 600+ SCM professionals 3 Delivery Centers 3 4 Integrated Automation Platform driven by AI ~20% saving Rev
Slide 29: Building a capable Redington: Citrus Overview
Building a capable Redington: Citrus Overview CLOUD TRANSFORMATION SERVICES 1 We walk the journey to the cloud and create the IT infrastructure platform for the future that supports business transformation DATA AND ANALYTICS SERVICES 2 We help customers transform into analytics driven enterprises an
Slide 30: Building a capable Redington: Our approach in Cloud
Building a capable Redington: Our approach in Cloud Coverage India & SEA META Other markets • Leading Distributor and Technology Solution & Services provider with an integrated model Where we want to for its partners and customers be • Build on the current road map to add partners (2X) & customer (5
Slide 31: Why cloud is important
Why cloud is important … Global IT Spending revenue (USD Bn) 917 Growth in revenue (USD Bn) 868 838 805 744 775 779 +12% 140 138 124 655 +69% 120 110 544 100 94 451 80 Cloud Traditional 60 40 33 31 30 31 20 0 2021 2022 2023 2024 2025 2021-2022 2022-2023 2023-2024 2024-2025 Traditional Cloud Enterpri
Slide 32: Cloud Trends
Cloud Trends VERTICAL- BACKUP & CLOUD & HYBRID/MULTI- SERVERLESS SPECIFIC DISASTER EMERGING TECH CLOUD SOLUTIONS ARCHITECTURE SOLUTIONS RECOVERY TRENDS Infrastructure to Data Loss to Traditional to Standalone to Private to Hybrid Industry Verticals Backup/Recovery Serverless Integrated • Cloud solut
Slide 33: CloudQuarks
CloudQuarks Next gen platform for all cloud services • Onboard Cloud Services on One Digital Platform with Self- Easy Simple Service Capabilities. Onboarding Interface • Enhances experience with on demand reporting & analytics for cloud service consumption patterns. • Access to our Cloud experts ena
Slide 34: Licensing FY22: Annual Recurring Revenue ~$190 Mn
Licensing FY22: Annual Recurring Revenue ~$190 Mn By Licensing Category* By Brand By Customer Segment 84 106 0 63 121 0 6 6 71 113 120 140 120 100 120 100 100 58 80 80 28 77 80 87 60 60 60 18 47 40 40 56 40 55 45 20 29 20 34 20 24 0 6 6 0 0 0 IaaS SaaS PaaS AWS MS Google Other Very Large & Public La
Slide 35: Business Alliances
• Partner with 250+ leading technology brands across the world o Strategic partnerships with top 15 • Cloud providers: strategic relationships with AWS, MS, Google Business • GTM presence in 40 countries, 35000+ partners Alliances • Alliances with leading System Integration partners, Big 4 • Coverag
Slide 36: Agenda
Agenda • About Redington • Our Financials • Trends and Redington Strategy • Building capabilities • Our approach to ESG • Recognitions
Slide 37: Our approach towards ESG
Our approach towards ESG ‘BBB’ ESG Rating from MSCI* Way forward Creating a comprehensive ESG 1 framework for the group • Board Independence 1 Corporate • Committee driven oversight Governance • Fair disclosures • Tax transparency Aligning CSR efforts to 2 organisational ESG priorities • GPTW certif
Slide 38: Agenda
Agenda • About Redington • Our Financials • Trends and Redington Strategy • Building capabilities • Our approach to ESG • Recognitions
Slide 39: Redington Industry Recognitions
Redington Industry Recognitions 2021 2022 • IBM- Distribution- IBM Partner EcoSystem Summit • Palo Alto- Best Distributor in JAPAC for PA400 initiative Awards • Oracle- Linux & Virtualization Distributor of the year • PTC-Partner Network Award • Veeam- Distributor of the year • NetApp- Best National
Slide 40: Redington Trusted Company
\ Redington VARnn —= TRUSTED COMPANY
Slide 41: Thank You
Thank You Copyright 2022 Redington Limited - All rights Reserved