Slide 1: Result Update Presentation Q2 & H1 FY23
Result Update Presentation Q2 & H1 FY23 Creative Newtech Limited (Formerly known as Creative Peripherals and Distribution Limited)
Slide 2: Disclaimer
2 Disclaimer This presentation has been prepared by Creative Newtech Limited (the “Company”), formerly known as Creative Peripherals & Distribution Ltd., solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and s
Slide 3: Company at a Glance
3 Company at a Glance Diversified Products Portfolio 25+ 3200+ 1992 1. Licensee of Honeywell Inc. Brands Products Started 2. 25+ Brands under said segments Journey (FMSG+FMCT+FMEG+EB) 564 Cr * 3. 8000+ Trusted partners 8000+ Market Happy Total 20+ branches in India Cap Channel Partners Over 300 skil
Slide 4: Business Overview
4 Business Overview Brand Licensing (like Jubilant food – Dominos Pizza & FMSG + FMCT + FMEG + EB CKart Page Industries – Jockey Comfort wear) • FMSG: Niche Products that appeal to the younger • Online digital B2B • Currently Honeywell License Holder and offers a vast demographics, driven by social
Slide 5: Honeywell
5 End to End Aerospace Building Performance Safety and Service Provider - $11.5 Bn Technologies $5.2 Bn Materials & Technologies Productivity Solutions Honeywell $9.4 Bn $6.5 Bn ~$33 in sales Bn for 2020 53% of sales outside U.S. Honeywell developed the first Honeywell began the Smart House autopilo
Slide 6: Honeywell
6 Honeywell Exclusive rights to sell across 38 countries
Slide 7: Honeywell: Tough Entry Barrier & Hyper Growth Ahead
7 Honeywell Tough Entry Barrier & Hyper Growth Ahead Entry Barrier The biggest entry barrier to breakthrough in Honeywell is the long-drawn compliance process and product approval including certifications. Approval Process The process of getting approval for each product is time consuming and expens
Slide 8: Our Partners
8 Our Partners Fast Moving Social- FMSG Media Gadgets Fast Moving FMCT Consumer Technology Fast Moving FMEG Electronics Goods EB Enterprise Business
Slide 9: Target addressable Market
9 Target addressable Market Growing Social Media Trend FMSG – Key Drivers for Growth 834 • The trend to capture every moment of social life and post live events has led to a multifold growth in personal-use, Internet connected devices Growing • Every millennial tends to follow multiple hobbies which
Slide 10: Q2 FY23 Financial Highlights – Standalone & Consolidated
10 Q2 FY23 Financial Highlights –Standalone & Consolidated Standalone Consolidated • Strong sales growth INR Crore Q2 FY23 Q2 FY22 YoY % Q2 FY23 Q2 FY22 YoY % driven by FMSG and FMCT segments Revenue from Operations 306.02 237.57 28..81% 319.14 238.56 33.78% Other Operation Income 7.14 2.65 169.28%
Slide 11: H1 FY23 Financial Highlights Standalone & Consolidated
11 H1 FY23 Financial Highlights Standalone & Consolidated Standalone Consolidated • Strong sales growth INR Crore H1 FY23 H1 FY22 YoY % H1 FY23 H1 FY22 YoY % driven by EB and others Revenue from Operations 533.97 369.33 44.58% 557.84 372.45 49.78% Other Operational Income 12.46 4.64 168.59% 12.47 4.
Slide 12: Consolidated Balance Sheet Highlights as on 30th September 2022
12 Consolidated Balance Sheet Highlights as on 30th September 2022 As on As on As on As on INR Crore INR Crore 30th Sept 2022 31st March 2022 30th Sept 2022 31st March 2022 Equity 107.61 88.37 Non-Current Assets 10.39 10.73 Equity Share Capital 12.60 12.00 Property, Plant & Equipment 9.99 10.38 Othe
Slide 13: Segmental Revenue
24 Segmental Revenue *Sales in Crore FMSG FMEG 53.77 55.94 52.27 4.24 4.10 44.50 45.76 3.66 3.86 2.51 FMCT EB 69.44 61.67 195.23 193.32 57.12 50.53 45.81 141.01 141.11 131.97 FMSG : Fast Moving Social-Media Gadgets FMCT: Fast Moving Consumer Technology FMEG: Fast Moving Electronics Goods EB: Enterpr
Slide 14: High Growth, High Margin and Small Working Capital cycle
High Growth, High Margin and Small Working Capital cycle 11 - the Criteria Q2 FY22 Q2 FY23 19% 16% 59% 22% 61% 21% 1% 1% FMSG FMCT FMEG EB
Slide 15: And it is working…
12 And it is working… *Sales in Crore FMSG FMEG 52.27 4.10 2.51 44.50 FMCT 69.44 EB 193.32 50.53 141.01 FMSG : Fast Moving Social-Media Gadgets FMCT: Fast Moving Consumer Technology FMEG: Fast Moving Electronics Goods EB: Enterprise Business
Slide 16: Annual Consolidated Financial Highlights FY22
16 Annual Consolidated Financial Highlights FY22 ** ** ** ** FY21 Covid Year
Slide 17: Financial Highlights in Charts
23 Financial Highlights in Charts Sales in Crore Revenue (in Cr) EBITDA (in Cr) PAT (in Cr) 13.27 9.10 319.14 Quarterly 299.04 262.39 9.21 238.56 238.71 9.01 5.56 7.66 5.00 6.72 4.03 3.90 Half Yearly 557.84 20.94 13.13 372.45 12.78 7.07 49.8 63.8% 85.7% %
Slide 18: Consolidated Key Return Ratios
15 Consolidated Key Return Ratios RoE % RoCE % 22.15% 23.88% 20.38% 18.82% 16.93% 18.81% 17.55% 14.22% 16.00% 10.33% FY18 FY19 FY20 FY21 ** FY22 FY18 FY19 FY20 FY21 ** FY22 Focus on improving RoCE and long-term value creation *RoE = Net Profit/Net Worth | RoCE = EBIT/(Shareholders Fund + Long-term B
Slide 19: Future Ready Business Growth
19 Future Ready Business Growth Brand #1 Brand Licensing & Geographical Expansion Licensing in • Growing brand licensing line of business with long-standing association with Honeywell with extensive product portfolio New • Expanding geographically in new countries across Middle East & APAC with requ
Slide 20: Investment Rationale
20 Investment Rationale Industry experience of ~30 years Addresses niche growing market across segments Exclusive licensee for Honeywell Strong return ratios Associated with well-known brands Expecting significant growth from increased volumes Creative Newtech has an ROCE of 20.38% and it Partner wi
Slide 21: Annexure
21 Annexure
Slide 22: Management Comment
Management Comment 22 “As we were about to overcome uncertainties related to COVID-19, the Russia- Ukraine crisis escalated. Despite the macro shocks, we believe that India’s economic fundamentals are strong and keeping aside these turbulences, the impact on the long-term outlook will be marginal. I
Slide 23: Management Team
23 Management Team Ketan Patel Purvi Patel Vijay Advani Mohit Anand A technologist with a humble A woman with exceptional Mr. Advani is a seasoned As the CEO of Secure background and an foresight, Purvi Patel Professional with 30+ years of Connection, he is responsible experience 30+ of years. With
Slide 24: Management Team
24 Management Team Abhijit Kanvinde Amol Patil Upendra Singh Chartered Accountant with over MBA in Marketing with Bachelor of Commerce from 25 years of strong and multi- Engineering in Electronics and Ranchi University, with nearly 30 industry experience. Worked in Telecom, with over 20 years of yea
Slide 25: Our Business - Quadrant Segmentation
25 Our Business - Quadrant Segmentation We have ranked our products into Quadrants based on returns and working capital turns. QUADRANT 1 QUADRANT 2 HIGH MARGINS AND HIGH MARGINS AND QUICK CYCLE MEDIUM CYCLE QUADRANT 3 QUADRANT 4 LOW MARGINS AND LOW MARGINS AND MEDIUM CYCLE LONGER CYCLE We are focus
Slide 26: Primarily Focus - Quadrant 1
26 Primarily Focus - Quadrant 1 For Sustainability we have adopted this strategy that we will not disrupt our current business, at the same time we are focussing primarily on Quadrant 1 business with step-by-step diverting all our incremental resources towards the same The Quadrant1 business are pri
Slide 27: Key Focus and Strategy Ahead
27 Key Focus and Strategy Ahead Our business model is primarily of optimizing working capital. The success of our business depends on achieving higher growth through higher margin products and quick working capital cycle In the last few quarters we have continuously shifted our resources towards hig
Slide 28: Growing at fast pace albeit at small base
28 Growing at fast pace albeit at small base
Slide 29: Journey so far…
Journey so far… 29 ▪ Launched B-Safe – own brand of medical products ▪ Launched Ckart – digital B2B platform for customers ▪ Expanded Honeywell mandate to 29 countries ▪ Tie-up with ZEISS to distribute binoculars & monoculars ▪ 2012 - Foray into Imaging business by ▪ Listed on NSE – SME stock exchan
Slide 30: Geographical Presence
Geographical Presence 30 Domestic International • Pan India presence. • Subsidiary in Hong Kong. • Over 300-strong highly skilled • Strong distribution tie-up in workforce across India – mix of Middle East. young and experienced talent. • Expanding network across SAARC countries. Our Network A Class
Slide 31: Driving Social Media Transformation through Digital Offerings
Driving Social Media Transformation through 31 Digital Offerings Our Value Edition Price Information Network Access to Product Partnership Scale Content & What is needed? and Skills Community Customer Brand Experience Service Omni – Channel Strategy Marketing Customer experience Contract Customer Ma
Slide 32: Who we are
32 Who we are Brand Licensing Licensed by Honeywell Rights on many Can manufacture and Aiming to get more Maintain Asset light model for contract product sell Honeywell international brands while expanding the manufacturing designs/casts branded products in under the licensing and business many APAC
Slide 33: Who we are
33 Who we are FMSG + FMCT + FMEG + EB Specialist in end- Well positioned in a fast Portfolio of 25+ world Command Continually Multi channel to-end solutions growing country like India renowned brands, niche value in enhancing portfolio network of FMSG for with an aspirational young most of which are
Slide 34: Who we are
34 Who we are www.ckartonline.com Ckart Online digital B2B Captive Expands the Boosts customer-base With growing digitization in eCommerce platform marketplace for Company’s product without additional industry, CKart paves the subscribed domain manpower way for a future-ready business partners growt
Slide 35: Key Developments
35 Key Developments Fund Raise Activity Recent Brand Agreements In July 2021, Creative undertook a preferential allotment of equity • Signed agreement with Hyperice Inc. to distribute massage & shares and warrants to raise Rs.11 Cr to fund future growth plans. muscle recovery products Company issued
Slide 36: THANK YOU!
THANK YOU! www.creativenewtech.com