Slide 1: Corporate Presentation
Corporate Presentation March 2020
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 $7.3bn+ c
Slide 3: Our Mission and Values
Our Mission and Values “Our mission is to offer a robust technology-powered platform to enable a seamless flow of products and services” ADAPTABILITY COLLABORATION KNOW-HOW OBJECTIVITY SIMPLICITY TRUST TRANSPARENCY 9 3
Slide 4: Our Expansion
Our Expansion CHANNEL SALES SERVICE BRANDS EMPLOYEES MARKETS WAREHOUSES CENTRES PARTNERS OFFICES Present 200+ 38,350+ 4,697 37 80+ 235+ 270+ 1993 1 25 5 1 3 1 1 From a ‘Home Grown Company’ to an‘ Emerging Markets Multinational’ 12 4
Slide 5: 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, Oper
Slide 6: Our Experienced Executive Team
Our Experienced Executive Team Raj Shankar Managing Director P S Neogi S V Krishnan Ramesh Natarajan J K Senapati, E H Kasturi Rangan Dr. R. Arunachalam S V Rao Chief of Staff CFO & Whole CEO, India COO, India MD, ProConnect CEO, ProConnect CEO, Ensure Time Director Distribution Distribution Logisti
Slide 7: Our Shareholders
Our Shareholders HDFC Mutual Fund Others, Fidelity Management & Research (FMR) 10.8% Synnex Mauritius Franklin Templeton Investments Mutual Ltd, 24.2% Funds, 11.6% Fidelity International Affirma ICICIPru Life Insurance Foreign Capital, 15.8% Institutional Acacia Partners (Ruane Cunniff & Goldfarb) I
Slide 8: Business Overview
Gg Redington SEAMLESS PARTNERSHIPS Business Overview
Slide 9: Distribution Business Model
Distribution Business Model CHANNEL PARTNERS SUB DISTRIBUTORS RETAILERS RESELLERS BRANDS DISTRIBUTOR CUSTOMERS E-COMMERCE PLAYERS SYSTEM INTEGRATORS VALUE ADDED RESELLERS Market Knowledge & Access One stop shop Demand Generation Inventory Management BRANDS Partner Recruitment & Enablement CHANNEL Bu
Slide 10: 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 11: Our Brands/Vendors
Our Brands/Vendors 11 Enviable Partnerships with over 200+ brands 11
Slide 12: Services Business
Services Business BUSINESS INDIA MIDDLE EAST AFRICA TURKEY SINGAPORE SOUTH ASIA SERVICES Trader Distributor Supply Chain SERVICES & SOLUTIONS Transformative initiatives for Consolidator COMPANY Seamless Success Logistics services Support services Cloud services Digital print services 3D Print Servic
Slide 13: ProConnect India
ProConnect India Revenue Contribution from Services Wholly Owned Subsidiary of Redington 15% Warehousing 53% Integrated Third Party Logistics partner Transportation 32% Others PAN India presence Revenue Contribution from Industries Consumer Durables 25% IT 31% E-commerce 170+ Warehouses Telecom & In
Slide 14: Ensure India
Ensure India Wholly Owned Subsidiary of Redington Warranty Support Services Infrastructure PAN India presence with 50+ Owned Post Warranty Management service centres across India Services Services Preferred Service partner with 180+ service partners across India Managed Print Spare Parts Services Ma
Slide 15: Redington Cloud Solutions
Redington Cloud Solutions Our business Our Major Competencies Enabling channel partners to auto provision, Unified Digital consume, view consumption reports, subscription Cloud Platform management and monthly billing of Cloud services Distribution Team Strength : 84 Element Services Investments in C
Slide 16: Redington Cloud Managed Solutions (RCMS)
Redington Cloud Managed Solutions (RCMS) Assess Solution FEATURES OF REDINGTON CLOUD MANAGED SOLUTIONS Provision Assessment workshop Redington and Partner works with Customer IT team to do assessment workshop and validate customer readiness for cloud Migrate Architect Cloud Findings from application
Slide 17: Printing Solutions
Printing Solutions DIGITAL PRINT SERVICES 3D PRINT SERVICES Exclusive Distributor of Set up 3D Printing HP Indigo’s “Digital Facility in Chennai Printing Press” in India REVENUE MODEL Ranked Grade “A” by HP Indigo (Third in the ON DEMAND MFG PROTOTYPING SCANNING Distribution of Printing Press world)
Slide 18: Risk Management
SEAMLESS PARTNERSHIPS Risk Management
Slide 19: De-risking Strategy By Diversification
De-risking Strategy By Diversification Our rich product portfolio consists of diversified Brands and diversified product categories under the same brand New Turkey SSA Presence in multiple markets ensures diversification of MARKETS risk as well as ensuring Kaizen’s continuous Adjacent MEA improvemen
Slide 20: Inherent Risks & Mitigation Measures
Inherent Risks & Mitigation Measures Invoices in foreign currency; CHANNEL PARTNER 1 Currency risk VENDOR DISTRIBUTOR CHANNEL PARTNER 2 CUSTOMERS CHANNEL PARTNER 3 Purchases products; Sells products on Credit; Inventory risk Receivables risk Risk Measures Effect of Mitigated Risk Inventory Risk • St
Slide 21: Financial Performance
Gg Redington SEAMLESS PARTNERSHIPS Financial Performance
Slide 22: Performance track record
Performance track record
Slide 23: Performance Since Listing
FY 07 86,672 FY 08* 1,03,699 FY 09 1,19,186 FY 10 1,31,622 CAGR 15% FY 11* 1,63,734 FY 12 2,07,799 FY 13 2,34,462 FY14^ 2,72,441 FY 15 3,07,361 REVENUE FY 16 3,44,198 FY 17 3,97,362 FY 18 4,16,417 FY 19 4,65,994 FY 20 5,15,138 FY 07 1,985 FY 08* 2,590 FY 09 3,296 FY 10 3,657 FY 11* 4,717 Performance
Slide 24: Annual performance track record
Annual performance track record Particulars FY20 FY19 FY18 FY17 FY16 FY15 Total Revenue 5,15,138 4,65,994 4,16,417 3,97,362 3,44,198 3,07,361 Growth YoY 10.5% 11.9% 5.8% 15.4% 12.0% 12.8% EBITDA 1,072 9,706 8,555 8,662 8,176 7,619 Growth YoY 10.4% 13.5% -1.2% 5.9% 7.3% 5.9% PAT 5,152 5,078 4,816 4,6
Slide 25: ROCE vs Cost of Debt Capital
ROCE vs Cost of Debt Capital Consistent Focus on Capital efficiency INDIA OVERSEAS Return on Rupee capital Return on Dollar Capital Value Creation 8.9% Value Creation 14.4% 19.8% 18.1% 15.5% 15.5% 15.8% 14.5% 6.6% 7.4% 6.9% 4.9% 5.5% 5.4% FY18 FY19 FY20 FY18 FY19 FY20 ROCE Cost of Debt Capital ROCE
Slide 26: Quarterly performance track record
Quarterly performance track record Particulars Q4FY20 Q3FY20 Q2FY20 Q1FY20 Q4FY19 Total Revenue 1,26,773 1,47,956 1,23,543 1,16,866 1,26,097 Growth QoQ -14.3% 19.8% 5.7% -7.3% -0.2% EBITDA 2,545 3,094 2,627 2,450 2,824 Growth QoQ -17.7% 17.8% 7.2% -13.2% -1.8% PAT 1,192 1,559 1,301 1,100 1,690 Growt
Slide 27: Key Operating Metrics
Key Operating Metrics Inventory Days Debtor Days Creditor Days Working Capital Days 58 54 44 37 43 41 48 44 49 31 Working Capital Days 43 59 63 53 59 54 47 at sustainable levels 43 50 36 33 29 32 28 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Rs in mn FY15 FY16 FY17 FY18 FY19 FY20 Cumulative CFO 1,951 (1,92
Slide 28: Top Vendors
Top 5 Vendors 41% 39% 38% 46% 51% 46% 4% 5% 6% 4% 6% 6% 9% 7% 8% 4% 8% 8% 8% 7% 5% 6% 5% 4% 16% 15% 13% 15% 20% 17% 27% 27% 29% 22% 13% 15% FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 APPLE HP Inc DELL EMC SAMSUNG LENOVO OTHERS 29 Note: Effect of Dell EMC merger is shown partly in FY17 figures and fully in
Slide 29: Dividend Distribution
Dividend Distribution Dividend Payout : 25% on profits earned Second Interim 215% Dividend declared 140% 165% Interim 120% Dividend 115% declared 105% 75% 95% Buyback of shares 45% Issue size Rs.1390 mn % Equity 2.78% FY14 FY15 FY16 FY17 FY18 FY19 Dividend % on Face Value of shares 32 Final dividend
Slide 30: Current year performance
Current year performance
Slide 31: Performance By Market
Performance By Market ₹ in million REVENUE EBITDA PAT 11% 10% 10,718 1% 5,15,138 9,706 4,65,994 5,152 5,078 11% 17% 10% 6,531 3,26,942 5,587 2,95,306 3,433 3,763 10% 2% 16% 1,70,688 1,88,196 4,119 4,187 1,645 1,389 FY19 FY20 FY19 FY20 FY19 FY20 India Overseas India Overseas India Overseas 31
Slide 32: Performance By Market
Performance By Market ₹ in million REVENUE EBITDA PAT 11% 11%* 10% 17%* 1% 20%* 10,718 5,15,138 9,706 4,65,994 5,078 5,152 11% 17% 10% 6,531 3,26,942 5,587 2,95,306 3,433 3,763 10% 10%* 2% 17*% 16% 45%* 1,70,688 1,88,196 4,119 4,187 1,645 1,389 FY19 FY20 FY19 FY20 FY19 FY20 India Overseas India Over
Slide 33: Overseas Performance (in INR terms)
Overseas Performance (in INR terms) ₹ in million REVENUE EBITDA PAT 3,763 3,26,942 6,531 11% 17% 3,433 10% 2,95,306 5,587 13% 18% 11% 3,246 2,95,090 5,778 2,928 2,61,732 4,893 5% 9% 2% 33,574 31,852 694 753 505 517 FY19 FY20 FY19 FY20 FY19 FY20 SSA META SSA META SSA META 33
Slide 34: Overseas Performance (in USD terms)
Overseas Performance (in USD terms) USD in million REVENUE EBITDA PAT 9% 4,611 14% 92 7% 4,246 80 53 11% 16% 49 9% 4,162 81 3,763 70 42 46 7% 6% 0.5% 483 449 10 11 7 7 FY19 FY20 FY19 FY20 FY19 FY20 SSA META SSA META SSA META 34
Slide 35: Performance By Vertical
Performance By Vertical INDIA OVERSEAS GLOBAL 6% 6% 2% 2% 3% 3% 19% 33% 28% 27% 35% 32% 75% 69% 67% 65% 63% 65% FY19 FY20 FY19 FY20 FY19 FY20 IT Mobility Services IT Mobility Services IT Mobility Services 27 35
Slide 36: Redington Vis-à-vis Global Peers
Redington Vis-à-vis Global Peers Net Debt to Equity 1 2 4 3 5 yr Avg ROE 1 4 2 3 5 yr Avg ROCE 1 3 4 2 5 yr Avg WC days 3 2 4 1 5 yr PAT CAGR 3 1 4 2 5 yr Gross Profit CAGR 1 4 3 2 5 yr Rev CAGR 1 4 3 2 Redington Global Comp 1 Global Comp 2 Global Comp 3 36
Slide 37: Our Opportunities
Gg Redington SEAMLESS PARTNERSHIPS Our Opportunities
Slide 38: India: Govt spending opportunities
India: Govt spending opportunities India to attain a trillion dollar of economic value of digital economy by 2025 India’s digital economy could contribute 18–23% of overall economic activity by 2025, with more than half the potential coming from scaling up new and emerging digital ecosystems Source:
Slide 39: India Opportunities
India Opportunities • Covid 19 impact - CIOs to invest more in Security, Collaboration, Mobility & Cloud • Smartphone market in India is expected to expand at a CAGR of ~14.6% between FY 2018-23 • Enterprise Networking to become a $3.6 billion market by 2024 • India's public cloud market could reach
Slide 40: META Opportunities
META Opportunities • Government ICT spending in MEA to reach $15 billion by 2023 • Consumer IT spending in META will total $43 billion in 2021, with mobile phones contributing 80% of the value • Enterprise spending on AI in Middle East and Africa is expected to grow at a CAGR of 22.0% to reach $530
Slide 41: 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 41 41
Slide 42: 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 Senior Manager – Investor Relations sowmiya.manickam@redington.co.in IR Materials
Slide 43: Thank You
THANK YOU