Redington Limited · NSE:REDINGTON
Redington — Investor Presentation (December 2018)
40 slides from Redington's investor presentation, December 2018
Slide 1: Corporate Presentation
Corporate Presentation December 2018
Slide 2: Who Are We? What We Do?
WHO ARE WE? WHAT WE DO? A prominent & leading We are ‘Business Enablers’, “Technology Distributor” Seamlessly partnering with evolving into a Brands and Channel partners “Services & Solutions company” in delivering value No.1 Technology Multi faceted Expanding the reach An Emerging Markets $6.6bn+ c
Slide 3: Industry Overview
SEAMLESS PARTNERSHIPS, Industry Overview
Slide 4: Distribution Food Chain
Distribution Food Chain IT CONSUMER & MOBILITY SUB DISTRIBUTOR RESELLER Earlier VENDOR DISTRIBUTOR RETAILER CUSTOMER RESELLER Present VENDOR DISTRIBUTOR RETAILER CUSTOMER ECOMMERCE PLAYER IT ENTERPRISE Earlier VENDOR DISTRIBUTOR SYSTEM INTEGRATOR CUSTOMER VALUE ADDED RESELLER SYSTEM INTEGRATOR Prese
Slide 5: Distributors: Value Creators
Distributors: Value Creators Market Knowledge & Access One stop shop Demand Generation Inventory Management Partner Recruitment & Enablement Bulk breaking BRANDS CHANNEL Sales & Marketing Expertise PARTNERS Credit financing Supply Fulfilment Logistics Pre & Post Sales Consulting Order consolidation
Slide 6: Product Lifecycle
Product Lifecycle Manufacture/ Sell Reach Maintain Develop Our presence across the product lifecycle 6
Slide 7: Company Overview
SEAMLESS PARTNERSHIPS, Company Overview
Slide 8: Mission Statement
Mission Statement “Our mission is to offer a robust technology-powered platform to enable a seamless flow of products and services” 8
Slide 9: Our Values
Our Values ADAPTABILITY COLLABORATION KNOW-HOW OBJECTIVITY SIMPLICITY TRUST TRANSPARENCY 9
Slide 10: Our Emergence
Our Emergence Present Presence across 30 markets, a leading Emerging Markets player 1993 10
Slide 11: Our Associations
Our Associations Present 1993 Enviable Partnerships with over 220+ brands 11
Slide 12: Our Expansion
Our Expansion CHANNEL SALES SERVICE BRANDS EMPLOYEES MARKETS WAREHOUSES CENTRES PARTNERS OFFICES Present 220+ 40,900+ 4,850+ 30 80 195+ 260+ 1993 1 25 5 1 3 1 1 From a ‘Home Grown Company’ to a ‘Leading Distributor’ 12
Slide 13: Our Board Of Directors
Our Board Of Directors Independent Directors Executive Directors CHAIRMAN Prof. Ramachandran V. S. Hariharan Keith WF Bradley B Ramaratnam Raj Shankar E H Kasturi Rangan Professor, Corporate Ex. Vice President, Ex.President, Professional Managing Director Whole time Director Policy & Strategy Hewlet
Slide 14: Our Experienced Executive Team
Our Experienced Executive Team Raj Shankar Managing Director P S Neogi E H Kasturi Ramesh Natarajan Dr. R. Arunachalam S V Krishnan S V Rao Joint COO, India Rangan Chief Sales Officer, CEO, ProConnect Chief Financial CEO, Ensure Joint COO, India India Logistics, India Officer Services, India Aloysiu
Slide 15: Business Overview
SEAMLESS PARTNERSHIPS, Business Overview
Slide 16: Distribution Business
Distribution Business BUSINESS INDIA MIDDLE EAST AFRICA TURKEY SINGAPORE SOUTH ASIA DISTRIBUTION IT CONSUMER IT ENTERPRISE MOBILITY EMERGING PCs Laptops Networking Software Health & Medical Smartphones Equipment Print Supplies 3D Printers & Scanners Servers & Storage Security Printers Solar Consumer
Slide 17: Services Business
Services Business BUSINESS INDIA MIDDLE EAST AFRICA TURKEY SINGAPORE SOUTH ASIA SERVICES Supply Chain SERVICES & SOLUTIONS Transformative initiatives for Trader Distributor Consolidator COMPANY Seamless Success Logistics services Support services Cloud services Digital print services 3D Print Servic
Slide 18: ProConnect India
ProConnect India Wholly Owned Subsidiary of Redington Revenue Contribution from Services 22% Warehousing Integrated Third Party Logistics partner 43% Transportation PAN India presence 35% Others 155+ Warehouses Revenue Contribution from Industries IT E Commerce 6.6 mn Sq.ft. in operation 24% 32% Foo
Slide 19: ProConnect India: Growth Story
ProConnect India : Growth Story 2013-14 2014-15 2015-16 2016-17 2017-18 CUSTOMERS 33 53 74 124 166 WAREHOUSES 74 74 80 150 173 WAREHOUSING SPACE (in sq. ft.) 0.9 mn 1.2 mn 2.5 mn 4.8 mn 6.3 mn Revenue EBITDA PAT Revenue Mix Redington Outside Biz 50 26 320 24% 29% 49% 65% 79% 76% 71% 51% 35% 21% FY14
Slide 20: Ensure India
Ensure India Wholly Owned Subsidiary of Redington Warranty Support Services PAN India presence with 35+ Owned Infrastructure Post Warranty Management services across India Services Services Preferred Service partner with 175+ service partners across India Managed Print Spare Parts Services Managemen
Slide 21: Redington Cloud Solutions
Redington Cloud Solutions Our Cloud Practice Our business Digital Platform Partner Enablement Program Distribution Element Services Element Managed Our Cloud Business Practice Down-selling of Redington team Services Development Cloud products provides Managed Services, focussing on SME/Mid Market Cl
Slide 22: Printing Solutions
Printing Solutions DIGITAL PRINT SERVICES 3D PRINT SERVICES Exclusive Distributor of HP Indigo’s “Digital Set up 3D Printing Printing Press” in India Facility in Chennai REVENUE MODEL Ranked Grade “AAA” by HP Indigo (Highest in Distribution of Printing Press the world) Annuity revenues from clicks (
Slide 23: Fueling Growth In a Challenging Business
Fueling Growth In a Challenging Business IT CONSUMER • Enabling better product mix with higher ASP • Market share gains PC Shipments decline • Establishing presence in Cloud IT ENTERPRISE • Increased value added services • Systematic approach devised to participate in Government Gradual pickup in Co
Slide 24: Financial Performance
SEAMLESS PARTNERSHIPS, Financial Performance
Slide 25: Performance Since Listing
88,539 1,05,425 1,23,760 1,32,776 CAGR 16% 1,67,227 2,12,220 2,42,104 2,80,051 REVENUE 3,16,227 3,54,762 4,11,560 4,34,985 1,985 Performance Since Listing 2,590 3,296 3,657 4,717 CAGR 14% 6,334 6,842 7,196 EBITDA 7,619 8,176 8,662 *Post acquisition of Easyaccess Financial Services in FY 08 and Arena
Slide 26: Performance By Market
Performance By Market ₹ in million REVENUE EBIDTA PAT 11% 3,39,897 11% 6,795 3,383 0.1% 3,388 3,07,480 6,098 36% 16% 11% 1,876 2,16,810 2,876 3,913 2,182 1,95,247 10% 11% 20% 3,222 2,882 1,508 1,12,233 1,23,087 1,206 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 India Overseas India Overseas India Overs
Slide 27: Performance By Vertical
Performance By Vertical INDIA OVERSEAS CONSOLIDATED 5% 6% 2% 2% 3% 3% 22% 20% 32% 34% 29% 29% 73% 74% 66% 68% 68% 64% 9MFY18 9MFY19 9MFY18 9MFY19 9MFY18 9MFY19 IT Mobility Services IT Mobility Services IT Mobility Services 27
Slide 28: Geographical Contribution
Geographical Contribution REVENUE PAT 44% 47% 49% 55% 57% 59% 51% 54% 62% 62% 64% 64% 60% 64% 56% 53% 45% 43% 51% 49% 46% 41% 38% 38% 36% 36% 40% 36% FY 13 FY 14 FY 15 FY 16 FY 17 FY18 9MFY19 FY 13 FY 14 FY 15 FY 16 FY 17 FY18 9MFY19 India Overseas India Overseas 28
Slide 29: Top Vendors
Top 5 Vendors 40% 38% 49% 46% 49% 46% 56% 4% 5% 6% 7% 4% 7% 9% 5% 7% 8% 9% 8% 7% 7% 8% 6% 5% 4% 5% 4% 15% 4% 15% 15% 20% 17% 21% 23% 25% 28% 22% 11% 13% 15% 7% FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 9MFY19 APPLE HP Inc DELL EMC LENOVO SAMSUNG OTHERS Note: Effect of Dell EMC merger is shown partly in FY
Slide 30: Key Operating Metrics
Key Operating Metrics Inventory Days Debtor Days Creditor Days Working Capital Days 57 52 53 53 46 33 40 46 41 43 47 Working Capital Days 38 42 42 54 59 58 62 51 57 55 at sustainable levels 31 32 35 41 32 28 38 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 9M FY19 Rs in mn FY13 FY14 FY15 FY16 FY17 FY18 9MFY19
Slide 31: Consolidated Financials
Consolidated Financials Particulars 9MFY19 FY18 FY17 FY16 FY15 FY14 FY 13 Total Revenue 3,39,897 4,34,985 4,11,560 3,54,762 3,16,227 2,80,051 2,42,104 EBITDA 6,795 8,555 8,662 8,176 7,619 7,196 6,842 PAT 3,388 4,816 4,642 4,235 3,865 3,367 3,231 Networth 37,617 35,306 31,479 29,494 23,742 20,213 16,
Slide 32: Dividend Distribution
Dividend Distribution 215% Dividend Payout : 20% on profits earned 120% 105% 115% 95% Buyback of shares 45% Issue size Rs.139 crs 20% % Equity 2.78% FY13 FY14 FY15 FY16 FY17 FY18 FY19 Dividend % on Face Value of shares Final dividend plus Special Interim Dividend declared 32
Slide 33: Shareholding Pattern (As of Dec 31st 2018)
Shareholding Pattern (As of Dec 31st 2018) HDFC Mutual Fund Fidelity Management & Research (FMR) Others, 13.2% Synnex Mauritius Ltd, 24.2% Franklin Templeton Investments Mutual Funds, 13.5% ICICIPru Life Insurance Standard Fidelity International Chartered Foreign Private Equity, Institutional 15.8%
Slide 34: Our Growth Drivers
SEAMLESS PARTNERSHIPS, Our Growth Drivers
Slide 35: Revenue Growth Vectors
Revenue Growth Vectors Tapping incremental Continuous addition BRAND MARKET revenue from of brands across SHARE ACQUISITIONS available product categories opportunities GAINS TARGET 3 year Revenue CAGR of 12% yoy Acquiring MARKET NEW BUSINESS Foraying into newer distribution rights in product categor
Slide 36: Margin Growth Vectors
Margin Growth Vectors Enabling higher Product mix of Improved Mix HIGH MARGIN Margin Focus on products Trajectory INDIA Geography as a growth Mix TARGET market ROCE of Business Foray into 16-18% by Improved Mix SERVICES WC turns FY21 Optimization Driving of OPERATING Efficiency EXPENSES Improvement
Slide 37: Capital Allocation Priorities
Capital Allocation Priorities NO FPO Dividend payout @ 1 Returns to Shareholders 20% of Profits MADE Investments of Debt ~Rs.150 crs spread until FY21 Investments into the business Investments into business 2 Equity Ratio at 0.4 Investments of 3 Strategic M&As for ProConnect ~Rs.150 crs spread until
Slide 38: Redington Foundation
Redington Foundation Foundation for CSR @ Redington (Redington Foundation), a trust formed by Redington (India) Limited to implement various CSR activities towards the betterment of the society 38
Slide 39: Contact Us
CONTACT US Compliance Officer M. Muthukumarasamy Redington (India) Limited SPL Guindy House, 95 Mount Road, Guindy, Chennai 600 032 https://www.redingtongroup.com CIN - L52599TN1961PLC028758 Investor Contact Sowmiya M Manager – Investor Relations sowmiya.manickam@redington.co.in IR Materials - https
Slide 40: Thank You
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Redington (India) — Investor Presentation (December 2018) on 6ix