Symphony Limited · NSE:SYMPHONY
Symphony — Investor Presentation (February 2019)
63 slides from Symphony's investor presentation, Feb 6, 2019
Slide 1: Exchange filing cover letter
Slmphonl February 6, 2019 To, To, BSE Limited National Stock Exchange of lndia Limited Security Code - 517385 Symbol - SYMPHONY Sub.: lnvestor Presentation - Updates Dear Sir, This is in reference with the above mentioned subject line, we are enclosing herewith updated lnvestor Presentation. The sam
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, Touch and Sense air cooler ranges
8 19 Cloud – World’s First Wall Mounted Air Cooler Touch Air Cooler Range Sense Range of Air Coolers
Slide 10: Impco range
9 19 Impco range Central Air Cooling Solution Range of Packaged Air Coolers Window Air Cooler Range
Slide 11: GSK range
10 19 GSK range Packaged / Central Air Cooling Solutions Range of 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 Mosquito Repellent Voice Assist Digital Touchscreen Gesture Control
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: Sectoral entry barriers
20 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 22: Organogram
21 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 23: Professional Management
22 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 24: Corporate Governance & Beyond
23 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 25: At a glance
24 19 At a glance 12 5 50+ 22 53 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 Author
Slide 26: Advertising Campaigns
25 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 Central Air Garmi ko karo i-Pure range
Slide 27: Market Potential
“\ \ ransom oS MARKET POTENTIAL
Slide 28: Central Air Cooling Solutions - fact and figures
27 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 29: Central air cooling solutions - long runway
28 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 30: Central air cooling solutions - enterprise customers
29 19 Central air cooling solutions - enterprise customers Working with esteemed brands
Slide 31: Central air cooling solutions - Installations
30 19 Central air cooling solutions - Installations NTF India Pvt Ltd, Ahmedabad Gurudwara, Ludhiana Rajasthan Liquor Ltd, Derabassi KM Memorial Hospital, Jharkhand
Slide 32: Central air cooling solutions - Global Installations
31 19 Central air cooling solutions - Global Installations Walmart, USA Whirlpool Factory, China TCPL Packaging, India Zoo, Dubai
Slide 33: Central air cooling solutions - Ramtirth Mandir
32 19 Central air cooling solutions - Ramtirth Mandir
Slide 34: Air Cooling Solutions - our international presence
33 19 Air Cooling Solutions - our international presence Direct Presence
Slide 35: International markets - long runway
34 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 36: Subsidiaries
CORPORATE \ \ sympHony LIMITED PRESENTATION \ SUBSIDIARIES
Slide 37: Impco S.de R.L. de C.V., Mexico
36 19 Impco S.de R.L. de C.V., Mexico
Slide 38: IMPCO - milestones
37 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 39: IMPCO - milestones
38 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 40: IMPCO - milestones
39 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 41: IMPCO Organogram
40 19 IMPCO Organogram General Director Industrial Sales Residential Sales Operations Engineering & HR Manager Finance Manager Director Director Manager Quality Manager Supported by 75+ members strong team
Slide 42: Impco - distribution
41 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 43: Impco - brands and installations
42 19 Impco - brands and installations Air-cooled entire Mecca Complex in Saudi
Slide 44: Impco - installations
43 19 Impco - installations Nissan Factory GE Lighting Zentralia Mall Walmart warehouse
Slide 45: Guangdong Symphony Keruilai Air Coolers Co. Ltd (GSK) - China
44 19 Guangdong Symphony Keruilai Air Coolers Co. Ltd (GSK) - China
Slide 46: GSK - milestones
45 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 47: GSK Organogram
46 19 GSK Organogram General Manager Operations Domestic Sales Export Sales R&D Manager HR Manager Finance Manager Manager Director Director Supported by 100+ members strong team
Slide 48: GSK R&D
47 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 49: GSK - opportunities
48 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 50: Climate Technologies Pty Ltd, Australia
49 19 Climate Technologies Pty Ltd, Australia
Slide 51: Climate Technologies Pty Ltd - milestones
50 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 52: Climate Technologies Pty Ltd Organogram
51 19 Climate Technologies Pty Ltd Organogram Chief Executive Officer Site General National Sales Chief Financial National GM Aftermarket & R&D Manager Manager Manager Officer HR Manager Refrigeration Supported by 80+ members strong team
Slide 53: Climate Technologies Pty Ltd – benefits of acquisition
52 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 54: Climate Technologies Pty Ltd - brands
53 19 Climate Technologies Pty Ltd - brands
Slide 55: Financials
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Slide 56: Revenue break-up 2017-18 (Consolidated)
55 19 Revenue break-up 2017-18 (Consolidated) Revenue break up Air cooler revenue break up Gross Revenue Air Cooler Revenue Rs. 852 cr Rs. 798 cr India: 78% Rest of World: 22% Residential Air Cooler 92% Industrial & Ducted 8% Rs. 662 cr Rs. 190 cr Rs. 736 cr Rs. 62 cr Air cooler: 94% Others: 6% Rs.
Slide 57: Exceptional ROCE
56 19 Exceptional ROCE Air Cooler Segment (Capital Employed) Highlights Huge focus on efficacy of Capital Employed Demand Pull leads to substantial advances even during off season Negative Capital Employed during September and December quarter [Rs. (131) Cr in Sep-17 quarter, Rs. (106) Cr in S
Slide 58: Accelerates performance
57 19 Accelerates performance Profit and Loss Statement Segmental Consolidated Standalone Segmental Consolidated Standalone Particulars (Rs. Cr.) Revenue (Rs. Cr.) FY15 FY16 FY17 FY18 FY17 FY18 FY15 FY16 FY17 FY18 FY17 FY18 Revenue from India 411.4 471.1 596.9 622.2 591.8 621.3 525.9 594.0 764.8 798
Slide 59: Financials - Statement of Profit & Loss
58 19 Accelerates performance Financials - Statement of Profit & Loss Gross Revenue Profit after tax PBT % (Rs. crore) (Rs. crore) (of gross revenue) 31.5 31.1 852 28.8 29.1 808 26.9 24.7 25.1 193 625 166 560 148 503 116 364 106 296 60 53 2012 2013 2014 2015 2016* 2017 2018 2012 2013 2014 2015 2016*
Slide 60: Financials - Balance Sheet
59 19 Accelerates performance Financials - Balance Sheet Shareholders Fund Capital employed Capital employed Debt (Rs. crore) Air coolers (Rs. crore) 189.6 Corporate funds (Rs. crore) (Rs. crore) 173.2 422.0 611.6 138.3 465.1 291.8 112.7 246.1 328.3 83.1 81.0 194.7 306.2 275.8 180.4 222.2 60.2 139.1
Slide 61: Financials - Shareholder value creation
60 19 Accelerates performance 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 87.4 27.7 26.6 26.2 66.5 58.9 50.3 50.8 46.9 53.2 44.3 43.8 42.1 39.4 37.9 31.8 27.1 31.6 26.6 22.4 19.0 19.7 2012 2013
Slide 62: 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 63: 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