Redington Limited · NSE:REDINGTON
Redington — Q2 FY22 Earnings Presentation
53 slides from Redington's earnings presentation, Nov 9, 2021
Slide 1: Filing cover letter to National Stock Exchange
Registered & Corporate Office : Redington {India} Limited R 2 d | n g t O Nn Redington House, Centre Point, Plot. No.11 (SP), Thiru.Vi.Ka Industrial Estate, SEAMLESS PARTNERSHIPS Guindy, Chennai- 600032. Tamil Nadu, INDIA Tel: +91 44 4224 3353 Fax : +91 44 2225 3799 CIN : L52599TN1961PLC028758 www.r
Slide 2: Q2FY22 Earnings Presentation
REDINGTON (INDIA) LIMITED Q2FY22 Earnings Presentation Sep 2021
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 India Limited’s future business developments and economic performance. While these forw
Slide 4: Financial Highlights
Financial Highlights • Q2FY22 – On a Global basis, Revenue grew by 11% while EBITDA grew by 47% and PAT grew by 73% • India – Revenue grew by 30%, EBITDA grew by 65% and PAT grew by 85% • Overseas – Revenue degrew by 0.4%, EBITDA grew by 36% and PAT grew by 65% • H1FY22 – On a Global basis, Revenue
Slide 5: Financial Highlights - India Business
Financial Highlights INDIA BUSINESS • During the quarter, • India Distribution – Revenue grew by 30%, EBITDA grew by 82% and PAT grew by 107% • IT segment grew by 33% YoY led by growth in IT Consumer segment while Mobility segment grew by 21% Yoy • WC days stood at 3 days in Q2FY22 as against 14 day
Slide 6: Financial Highlights - Overseas Business
Financial Highlights OVERSEAS BUSINESS • During the quarter, • Overseas revenues degrew by 0.4% YoY but grew strong double digit at EBITDA and PAT level • SSA revenues impacted by degrowth in SSA on account of shift of few biz (at vendor end) to India • IT segment in META grew by 10% YoY • Arena rev
Slide 7: Q2FY22 Highlights
Q4FY18 Highlights Q2FY22 Highlights Connecting The Dots Transformation from ‘Product’ to ‘Utility of Product’ 6
Slide 8: Q2FY22 Redington Global Performance
Q2FY22 Redington Global Performance ₹ in mn REVENUE EBITDA PAT 11% 47% 73% 1,53,133 1,37,861 4,575 3,072 3,110 1,778 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 7
Slide 9: Q2FY22 Performance by Market
Q2FY22 Performance by Market ₹ in mn REVENUE EBITDA PAT 30% 65% 85% INDIA 68,357 1,306 52,755 1,940 1,179 704 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 -0.4% 65% OVERSEAS 36% 85,106 2,635 1,766 84,776 1,931 1,074 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 8
Slide 10: Q2FY22 Contribution by Market
Q2FY22 Contribution by Market REVENUE EBITDA PAT 62% 55% 62% 58% 60% 57% 38% 45% 38% 42% 40% 43% Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 INDIA OVERSEAS INDIA OVERSEAS INDIA OVERSEAS 9
Slide 11: Q2FY22 India Performance
Q2FY22 India Performance ₹ in mn REVENUE EBITDA PAT 30% 82% DISTRIBUTION 107% 67,059 51,500 1,261 1,801 988 609 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 16%# -1%# -13%# 4% 27% 53% SERVICES 1,255 1,299 191 139 95 45 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 #Services excluding Ensure (divested in Q1
Slide 12: Q2FY22 Overseas Performance
Q2FY22 Overseas Performance ₹ in mn REVENUE EBITDA PAT 2% 41% 75% 77,727 79,117 2,471 1,654 META 1,748 946 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 23% 10% 12% SSA 7,379 5,659 183 164 128 113 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Note: Overseas performance in c/c terms – Revenue 0.3%; EBITDA 38
Slide 13: Q2FY22 Revenue Performance by Verticals
Q2FY22 Revenue Performance by Verticals INDIA OVERSEAS GLOBAL 2% 2% 1% 1% 1% 1% 21% 19% 32% 31% 27% 36% 77% 79% 67% 68% 72% 63% Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 IT Mobility Services IT Mobility Services IT Mobility Services Note: Upon re-grouping, only smartphones are shown under Mobility N
Slide 14: Q2FY22 Working Capital Days
Q2FY22 Working Capital Days INDIA OVERSEAS GLOBAL 3 7 11 18 6 11 21 17 18 14 14 14 3 11 7 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 Q2FY21 Q1FY22 Q2FY22 13 13
Slide 15: Q2FY22 Free Cash Flow Statement
Q2FY22 Free Cash Flow Statement ₹ in mn Particulars Q2FY21 Q1FY22 Q2FY22 Profit Before Taxation 2,412 3,014 3,908 Non-cash items 465 511 372 Outflow of Finance Cost 171 183 217 Changes in Working Capital (224) (5,901) 12,563 Direct Tax Paid (645) (667) (857) Net Cash Flow from Operations 2,179 (2,86
Slide 16: Q2FY22 Top Vendors
Q2FY22 Top 5 Vendors REVENUE 34% OTHERS 43% SAMSUNG 6% LENOVO 5% 8% 7% DELL EMC 9% 8% HP Inc 14% 11% APPLE 26% 29% Q2FY21 Q2FY22 15 15
Slide 17: Q2FY22 ProConnect India
Q2FY22 ProConnect India • PCS registered growth across all metrics with revenue growth of 16% YoY • PCS registered EBITDA margin of 11% for the quarter REVENUE EBITDA PAT 16% 1% 13% 1,299 1,119 140 139 51 45 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Q2FY21 Q2FY22 ₹ in mn ₹ in mn ₹ in mn Above figures include Miss
Slide 18: H1FY22 Performance
Q3FY18 Highlights 9MFY18 Highlights H1FY22 Performance Connecting The Dots Transformation from ‘Product’ to ‘Utility of Product’ 17
Slide 19: H1FY22 Redington Global Performance
H1FY22 Redington Global Performance ₹ in million REVENUE EBITDA PAT 17% 52% 105% 2,87,873 8,217 2,45,080 5,439 5,411 2,648 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 18 18
Slide 20: H1FY22 Performance by Market
H1FY22 Performance by Market ₹ in mn REVENUE EBITDA PAT 41% 76% 154% 1,22,708 3,457 INDIA 87,269 1,961 2,277 898 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 5% 81% OVERSEAS 38% 1,57,811 1,65,165 4,760 3,450 3,162 1,750 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 19
Slide 21: H1FY22 Contribution by Market
H1FY22 Contribution by Market REVENUE EBITDA PAT 57% 64% 58% 66% 58% 64% 36% 43% 36% 42% 34% 42% H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 INDIA OVERSEAS INDIA OVERSEAS INDIA OVERSEAS 20
Slide 22: H1FY22 India Performance
H1FY22 India Performance ₹ in mn REVENUE EBITDA PAT 42% 90% DISTRIBUTION 157% 1,20,313 3,217 85,019 2,213 1,696 861 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 25%# 28%# -ve to +ve 6% 9% 72% SERVICES 2,250 2,395 265 240 37 64 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 #Services excluding Ensure (divest
Slide 23: H1FY22 Overseas Performance
H1FY22 Overseas Performance ₹ in mn REVENUE EBITDA PAT 8% 44% 95% 1,43,165 1,54,986 META 4,476 3,118 2,966 1,518 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 31% 14% 16% SSA 14,646 332 284 10,179 232 196 H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 Note: Overseas performance in c/c terms – Revenue 6%; EBI
Slide 24: H1FY22 Revenue Performance by Verticals
H1FY22 Revenue Performance by Verticals INDIA OVERSEAS GLOBAL 3% 2% 1% 1% 1% 1% 21% 18% 33% 31% 27% 35% 76% 80% 66% 68% 72% 64% H1FY21 H1FY22 H1FY21 H1FY22 H1FY21 H1FY22 IT Mobility Services IT Mobility Services IT Mobility Services Note: Upon re-grouping, only smartphones are shown under Mobility N
Slide 25: H1FY22 Working Capital Days
H1FY22 Working Capital Days INDIA OVERSEAS GLOBAL 4 7 13 18 6 10 21 16 17 18 15 15 3 11 8 H1FY21 Q1FY21 H1FY22 H1FY21 Q1FY22 H1FY22 H1FY21 Q1FY22 H1FY22 24 24
Slide 26: H1FY22 Free Cash Flow Statement
H1FY22 Free Cash Flow Statement ₹ in mn Particulars H1FY21 Q1FY22 H1FY22 Profit Before Taxation 3,717 3,014 6,921 Non-cash items 891 511 883 Outflow of Finance Cost 595 183 400 Changes in Working Capital 21,834 (5,901) 6,662 Direct Tax Paid (932) (667) (1,524) Net Cash Flow from Operations 26,105 (2
Slide 27: H1FY22 Balance Sheet
H1FY22 Balance Sheet ₹ in million Particulars 30-SEP-20 30-SEP-21 Source: Networth 44,904 50,616 Net Debt (22,912) (37,612) Minority Interest 3,727 3,774 Total 25,719 16,778 Application: Fixed Assets 4,610 4,752 Goodwill 183 183 Right to Use Assets 1,856 1,841 Net Assets 19,070 10,002 Total 25,719 1
Slide 28: H1FY22 Top Vendors
H1FY22 Top 5 Vendors REVENUE 38% OTHERS 42% SAMSUNG 5% LENOVO 5% 7% DELL EMC 7% 9% 8% HP Inc 12% 13% APPLE 26% 28% H1FY21 H1FY22 27 27
Slide 29: Shareholding Pattern
Shareholding Pattern Others Others Mutual Funds 12.5% Mutual Funds 15.8% 11.2% 10.9% Synnex Mauritius Limited 24.2% Affirma Synnex Mauritius Affirma Capital Limited Capital 14.2% 24.1% 15.2% Foreign Foreign Institutional Institutional Investors & FPIs Investors & FPIs 35.0% 36.9% Jun-2021 Sep-2021 2
Slide 30: Investor Contacts
Investor Contacts M. Muthukumarasamy Compliance Officer Redington (India) Limited SPL Guindy House, 95 Mount Road, Guindy, Chennai 600 032 https://www.redingtongroup.com Sowmiya M Senior Manager – Investor Relations Connecting The Dots sowmiya.manickam@redington.co.in Transformation from ‘Product’ t
Slide 31: Corporate Presentation
Corporate Presentation Sep 2021
Slide 32: 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 India Limited’s future business developments and economic performance. While these forw
Slide 33: About Redington
About Redington We are a Services & Solutions company • An Emerging Markets Multinational with presence across 37 markets • Distributor → Entire gamut of IT products, Smartphones, Non-tech products, etc • Service & Solutions → Enterprise professional services, Cloud Managed Services, Logistics Servi
Slide 34: Our Business
Our Business PCs, Laptops, Tablets Printers & Print Supplies Smartphones A leading distributor of Rich experience in distributing Distributors of wide consumer & commercial PCs, printers & related consumables assortment of smartphones desktops, laptops, iPads and and accessories MacBooks Networking
Slide 35: Our Presence
Our Presence TURKEY 1 market Enviable “In country” presence in 37 markets No.1 or No.2 position across all markets MIDDLE EAST INDIA 8 markets 1 market “High potential” markets SSA 5 markets AFRICA 22 markets Presence across product categories Portfolio of Marquee brands 5
Slide 36: Our Brands & Channel Partners
Our Brands & Channel Partners CHANNEL PARTNERS ❑ Sub Distributors ❑ Retailers ❑ Large Format Retailers ❑ Multi Brand Retailers ❑ Branded Stores ❑ Resellers ❑ Corporate Resellers ❑ Value Added Resellers ❑ System Integrators ❑ Independent Software Vendors (ISVs) ❑ E-Commerce Players 11 Enviable Partne
Slide 37: Our Board Of Directors
Our Board Of Directors Independent Directors CHAIRMAN Prof. Ramachandran V. S. Hariharan Keith WF Bradley B Ramaratnam Anita P Belani Professor, Corporate Ex. Vice President, Ex.President, Professional Sr Business & Human Policy & Strategy Hewlett-Packard, Ingram Micro, Director Capital Leader IIM,
Slide 38: Our Experienced Executive Team
Our Experienced Executive Team Raj Shankar Rajiv Srivastava Vice Chairman & Managing Director Joint Managing Director P S Neogi S V Krishnan Ramesh Natarajan J K Senapati, Gautam Hukku, R Venkatesh E H Kasturi Rangan Dilip Sharma Chief of Staff Whole Time CEO, India COO, India President, Apple Presi
Slide 39: Our Shareholders
Our Shareholders HDFC Mutual Fund Others, Fidelity Management & Research (FMR) 15.8% Synnex Mauritius Ltd, 24.1% ICICIPru Life Insurance Mutual Massachusetts Institute Of Technology Funds, 10.9% Investment Management Company Affirma Franklin Templeton Investments Foreign Capital, 14.2% Institutional
Slide 40: Our Strategy
SEAMLESS PARTNERSHIPS Our Strategy
Slide 41: Technology Trends in the future
Technology Trends in the future Ranking of the technology trends in the future by Respondents Note: GTDC commissioned Vation Ventures who surveyed and interviewed key constituents from distributors and their OEM vendor partners. The majority of study participants – nearly 69% – possess greater than
Slide 42: Key Tech trends and Redington possibility
Key Tech trends and Redington possibility In 2022 : Global ICT spend growth at 5.5%, India $98Bn @ 6% and MENA $177Bn @ 4%. Technology Trends Hybrid Cloud 5G Cyber Security Digital economy Emerging Tech Tech Growth IND: 25.0% META: 10.4 M IND: 20.0% IND: 26.0% IND: 20.2% CAGR % (2021-26) META: 17.2%
Slide 43: Biz model trends and Redington opportunity
Biz model trends and Redington opportunity Consumption Omni-Channel Investment Diversification Work Location models Business Model Products to Services Physical to Online Emerging Tech M&A, Product, Geo Hybrid work Model Trends • Build capability to • Develop a strong • Innovate, invest on • Automat
Slide 44: Changing Distribution needs & our preparedness
Changing Distribution needs & our preparedness ✓ ✓ Redington’s preparedness ✓ ✓ Respondents ✓ ✓ ✓ ✓ ranked the need ✓ for the following ✓ ✓ ✓ distribution go-to- ✓ ✓ market services in the future Note: GTDC commissioned Vation Ventures who surveyed and interviewed key constituents from distributors
Slide 45: Our Strategy
Our Strategy Addressing the technology needs of the Emerging Markets • Continue being a key player in the existing tech practices Business model re-invention • From brick & mortar to omni channel play • From products to services play • Moving towards XaaS revolution • Consistent & continuous value a
Slide 46: Our growth vectors & objectives
Our growth vectors & objectives GROWTH VECTORS KEY OBJECTIVES Strengthening our Services & Solutions capabilities Being No.1 distributor across products, brands & markets Making Redington a digital organization Being a Great Place to Work Emerging as an ESG Leader 16
Slide 47: Financial Performance
Gg Redington SEAMLESS PARTNERSHIPS Financial Performance
Slide 48: 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 CAGR 14% FY 12 2,07,799 FY 13 2,34,462 FY14^ 2,72,441 FY 15 3,07,361 FY 16 3,44,198 REVENUE FY 17 3,97,362 FY 18 4,16,417 FY 19 4,65,994 FY 20 5,15,138 FY21 5,70,416 ₹ in mn FY21 PAT has been restated to provide RCS merger ef
Slide 49: Performance Snapshot
Performance Snapshot Revenue 5,70,416 7,583 EBITDA 14,390 PAT ₹ in mn ₹ in mn ₹ in mn FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 WC days ROE 16.5% ROCE 36.5% 14 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 FY16 FY17 FY18 FY19 FY20 FY21 Pr
Slide 50: Value Creation for our Shareholders
Value Creation for our Shareholders EPS BOOK VALUE/SHARE PAYOUT TO SHAREHOLDERS* In ₹ In ₹ Avg Payout @ ~39% CAGR 13% CAGR 13% 126 of profits earned 19.5 110 60% 100 *53% 88 13.2 12.8 79 12.0 11.6 37% 67 10.6 32% 20% 20% FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 16 F
Slide 51: H1FY22 Performance Snapshot
H1FY22 Performance Snapshot REVENUE EBITDA PAT 17% 52% 105% H1FY22: Rs.2,87,873 mn H1FY22: Rs.8,217 mn H1FY22: Rs.5,439 mn H1FY21: Rs.2,45,080 mn H1FY21: Rs.5,411 mn H1FY21: Rs.2,648 mn WC DAYS ROE ROCE# 8 days 21.8% 76.7% H1FY21: 15 days H1FY21: 12.1% H1FY21: 25.2% INVENTORY CHARGE AR PROVISION FRE
Slide 52: Contact Us
CONTACT US Compliance Officer M. Muthukumarasamy Redington (India) Limited Redington House, Centre Point, Plot No. 11 (SP), Thiru. Vi. Ka. Industrial Estate, Guindy, Chennai 600 032 https://www.redingtongroup.com CIN - L52599TN1961PLC028758 Investor Contact Sowmiya M Senior Manager – Investor Relati
Slide 53: Thank You
THANK YOU 23