Redington Limited · NSE:REDINGTON

Redington — Q2 FY23 Earnings Presentation

50 slides from Redington's earnings presentation, Nov 2, 2022

  1. Slide 1: Covering letter to stock exchanges

    Registered & Corporate Office Redington Limited (Formerly Redington (India) Limited) Block3, Plathin, Redington Tower, Inner Ring Road, Saraswathy Nagar West, 4th Street, Puzhuthivakkam, Chennai -600091 Email: investors@redington.co.in CIN: L52599TN1961PLC028758 www. redingtongroup.com November 2, 2

  2. Slide 2: Corporate Presentation Q2FY23

    CORPORATE PRESENTATION Q2FY23

  3. Slide 3: Table Of Contents

    Table Of Contents • About Redington • Board of Directors and Shareholders • Our Strategy and Growth Vectors • CSR • Financials • Recognitions

  4. Slide 4: 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 Limited’s future business developments and economic performance. While these forward-lo

  5. Slide 5: About Redington

    Products , Service & Solutions Company • An Emerging Markets Multinational with presence across 38 markets • Distributor → entire gamut of IT products, Smartphones, Solar, etc. • Service & Solutions → Managed, Cloud, Logistics, BPM, BPO, 3D Printing services Expansive Network & Strong Relationships

  6. Slide 6: Our Portfolio

    Our Portfolio PCs, desktops, laptops, Printers, consumables Smartphones Networking – switching, Software - productivity Server and Storage – Licensing & iPads and MacBooks and accessories routing to SDN’s and Application building optimal data Subscription services strategy Enterprise security Cloud

  7. Slide 7: Our Presence

    Our Our Presence Presence Enviable “In country” presence in 30 countries and serving 38 markets No.1 or No.2 position across all markets “High potential” markets Presence across product categories Portfolio of Marquee brands

  8. Slide 8: Our Brands & Channel Partners

    Our Brands & Channel Partners CHANNEL PARTNERS Sub Large Format Retailers Distributors Retailers Multi Brand Branded Resellers Retailers Stores Corporate Value Added System Resellers Resellers Integrators Independent E-Commerce Software Players Vendors (ISVs) Vendors Banks/ FIs Channel Partners Envi

  9. Slide 9: Our Board of Directors

    Our Board of Directors Independent Directors Prof. Ramachandran V. S. Hariharan Keith WF Bradley B Ramaratnam Anita P Belani Retd. Professor, Corporate Ex. Vice President, Ex. President, Professional Sr. Business & Policy & Strategy Hewlett-Packard, Ingram Micro, Director Human Capital IIM, Bengalur

  10. Slide 10: Our Shareholders

    Our Shareholders HDFC Mutual Fund Fidelity Management & Research (FMR) Others Synnex 26.3% Mauritius Limited ICICIPru Life Insurance 24.1% Franklin Templeton Investments Massachusetts Institute Of Technology Investment Management Company Mutual Funds 11.7% FIIs & FPIs 37.9% The Vanguard Group Tata M

  11. Slide 11: Our Strategy

    Bringing innovation faster to market Cloud, 3D printing, Metaverse, Quantum Computing, AR/VR, 5G, Borderless Network, Smart Analytics, Blockchain and cyber-security… Business Model Re-invention Our • From brick & mortar to Omni-channel • From Products to Services Strategy • • Moving towards XaaS rev

  12. Slide 12: Technology Trends in the Future

    9 8 Greater Importance 7 6 Technology 5 Weighted Score 4 Trends in the 3 Future 2 Lesser Importance 1 0 Security Cloud (SaaS, AI/Machine Big Internet of Data Center DevOps Collaboration Robotic Process Blockchain Solutions IaaS, PaaS) Learning Data/Analytics Things Solutions (Containers, Solutions A

  13. Slide 13: Key Technology Trends

    Key Technology Trends In 2022 : Global ICT spend growth at 5%, India $111Bn @ 6% and MENA $170Bn @ 3%. TECHNOLOGY HYBRID CYBER DIGITAL EMERGING 5G TRENDS CLOUD SECURITY ECONOMY TECH TECH GROWTH IND: 25.0% META: 10.4 M IND: 20.0% IND: 26.0% IND: 20.2% CAGR % META: 17.2% Subs (2021 Est.) META: 7.9% ME

  14. Slide 14: Biz Model Trends

    Biz Model Trends OMNI- WORK CONSUMPTION INVESTMENT DIVERSIFICATION CHANNEL LOCATION MODELS BUSINESS MODEL Products to Physical to Online Emerging Tech M&A, Product, Hybrid work Services Geo Model Trends •Build capability to •Develop a strong end- •Innovate, invest on •Strengthen presence in •Automat

  15. Slide 15: Cloud Trends

    Cloud Trends VERTICAL- HYBRID/MULTI- BACKUP & CLOUD & SERVERLESS EMERGING SPECIFIC CLOUD DISASTER ARCHITECTURE TECH SOLUTIONS SOLUTIONS RECOVERY CLOUD Infrastructure to Data Loss to Traditional to Standalone to Private to Hybrid Trends Industry Verticals Backup/Recovery Serverless Integrated •Build

  16. Slide 16: Changing Distribution Needs & our Preparedness

    12 10 Greater Importance Redington’s Preparedness 8 6 4 Changing Weighted Score 2 Distribution 0 Needs & our Preparedness Lesser Importance Note: GTDC commissioned Vation Ventures who surveyed and interviewed key constituents from distributors and their OEM vendor partners. The majority of study par

  17. Slide 17: Our Objectives

    Our Objectives • Aggressive share gain across Products, Brands & Market Markets Brand Share Acquisitions Gains • Customer choice, Omni-Channel presence • Increase Digital adoption, provide everything “As a Service” New • Lead in ESG Market Business Expansions Opportunities • Be the most admired orga

  18. Slide 18: Key CSR initiatives

    Key CSR initiatives Through its CSR initiatives, Redington played a role of catalyst for social development in the areas of Education, Health, Skill development, Environment, Disaster Response Theme Initiative Outcome • Increased water inflow and ground water Renovated & constructed: table • 4 villa

  19. Slide 19: 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 FY 12 2,07,799 FY 13 2,34,462 FY 14 2,72,441 FY 15 3,07,361 FY 16 3,44,198 Revenue CAGR : 14% FY 17 3,97,362 FY 18 4,16,417 FY 19 4,65,994 FY 20 5,15,138 FY 21 5,70,416 ₹ in Mn FY 22 6,27,316 FY 07 1,985 FY 08 2,590 FY 09 3,296

  20. Slide 20: Shareholder Value Creation

    Shareholder Value Creation EPS Book Value/Share Shareholder Payout* CAGR : 23% CAGR : 13% ~38% of profits earned In ₹ In ₹ 16.4 73 60% 63 55 50 40% 37% 9.7 44 32% 39 53% 6.6 6.4 6.0 20% 5.8 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 17 FY 18 FY 19* FY 20 FY 21 FY 22 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 *

  21. Slide 21: H1FY23 Performance Snapshot

    H1FY23 Performance Snapshot REVENUE EBITDA PAT 25% 28% 29% H1FY23: Rs. 3,59,091 Mn H1FY23 : Rs.10,494 Mn H1FY23 : Rs.7,028 Mn H1FY22: Rs. 2,87,873 Mn H1FY22 : Rs.8,217 Mn H1FY22 : Rs.5,439 Mn WC Days ROE ROCE^ 29 Days 23.6% 42.0% H1FY22 : 8 days H1FY22 : 21.8% H1FY22 : 76.7% ^ROCE is calculated net

  22. Slide 22: Redington Industry Recognitions

    Redington Industry Recognitions 2022 2021 • Palo Alto- Best Distributor in JAPAC for PA400 initiative • IBM- Distribution- IBM Partner • Oracle - Linux & Virtualization Distributor of the year EcoSystem Summit Awards • Veeam- Distributor of the year • PTC-Partner Network Award • Cisco- Scale distrib

  23. Slide 23: Several marquee awards across geos and functions

    Several marquee awards across geos and functions Redington – Most Trusted Redington – Employee Company 2022 by VARINDIA Excellence 2022 by ET Redington Gulf – Best Security Distributor of the Year by CPI Cloud Aggregator of the Year DigiGlass – Security by GEC Platform of the Year by CPI Sayantan De

  24. Slide 24: Thank You

    Thank You Copyright 2022 Redington Limited - All rights Reserved

  25. Slide 25: Q2FY23 Earnings Presentation

    Q2FY23 Earnings Presentation

  26. Slide 26: 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 Limited’s future business developments and economic performance. While these forward lo

  27. Slide 27: Financial Highlights

    Financial Highlights “Highest ever Half Year Revenue growth at 25%” • Q2FY23 – On a Global basis, Revenue# grew by 25% while EBITDA grew by 23% and PAT grew by 26% • SISA – Revenue# grew by 23%, EBITDA grew by 27% and PAT grew by 22% • ROW – Revenue# grew by 26%, EBITDA grew by 20% and PAT grew by 2

  28. Slide 28: Financial Highlights: SISA Business

    Financial Highlights SISA BUSINESS ROCE was strong at 49% and ROE at 26% for H1FY23 H1FY23 Revenue grew by 29%, EBITDA grew by 31% and PAT grew by 30% India Distribution • Strong double digit growth trend continues • Q2FY23: Revenue grew by 23%, EBITDA grew by 27% and PAT grew by 25% • WC days stood

  29. Slide 29: Financial Highlights: ROW Business

    Financial Highlights ROW BUSINESS ROCE was strong at 37% and ROE at 22% for H1FY23 H1FY23 Revenue grew by 21%, EBITDA grew by 25% and PAT grew by 29% During the quarter, • Revenue grew by 26%, EBITDA grew by 20% and PAT grew by 29% • WC days stood at 32 days • ROCE was at 30% and ROE at 24% • Arena

  30. Slide 30: Q2FY23 Performance

    g Redington Q2FY23 Performance

  31. Slide 31: Q2FY23 Redington Global Performance

    Q2FY23 Redington Global Performance REVENUE# EBITDA PAT 25% 23% 26% 1,90,808 5,624 1,53,133 3,870 4,575 3,072 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 # Revenue growth as per Gross a/c : 26% ₹ in mn

  32. Slide 32: Q2FY23 Performance by Market

    Q2FY23 Performance by Market REVENUE# EBITDA PAT 23% 27% 22% 90,937 2,668 74,163 2,104 1,735 SISA 1,418 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 26% 20% 29% 99,871 ROW 78,970 2,957 2,471 2,135 1,654 Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 # Revenue growth as per Gross a/c – SISA: 25% ; ROW: 28% ₹

  33. Slide 33: Q2FY23 Contribution by Market

    Q2FY23 Contribution by Market REVENUE EBITDA PAT 52% 52% 54% 53% 54% 55% 48% 48% 46% 47% 46% 45% Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 SISA ROW SISA ROW SISA ROW

  34. Slide 34: Q2FY23 Revenue Performance by Verticals

    Q2FY23 Revenue Performance by Verticals SISA ROW GLOBAL 1% 1% 1% 1% 1% 1% 18% 18% 23% 25% 27% 30% 81% 81% 76% 74% 72% 69% Q2FY22 Q2FY23 Q2FY22 Q2FY23 Q2FY22 Q2FY23 IT Mobility Services IT Mobility Services IT Mobility Services

  35. Slide 35: Q2FY23 Working Capital Days

    Q2FY23 Working Capital Days SISA ROW GLOBAL 18 20 20 1 4 1 36 32 28 27 20 21 12 7 3 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23 Q2FY22 Q1FY23 Q2FY23

  36. Slide 36: Q2FY23 Top Vendors

    Q2FY23 Top 5 Vendors REVENUE 38% 38% OTHERS SAMSUNG 5% 6% DELL EMC 10% 8% LENOVO 7% 8% HP Inc 13% 13% APPLE 27% 27% Q2FY22 Q2FY23

  37. Slide 37: Q2FY23 Free Cash Flow Statement

    Q2FY23 Free Cash Flow Statement Particulars (₹ in mn) Q2FY22 Q4FY22 Q2FY23 Profit Before Taxation 3,908 4,435 4,708 Non-cash items 372 468 532 Finance Cost 217 175 407 Changes in Working Capital 12,563 (3,540) (3,087) Direct Tax Paid (857) (761) (1,217) Net Cash Flow from Operations 16,203 778 1,343

  38. Slide 38: Q2FY23 Performance Factsheet

    Q2FY23 Performance Factsheet Global (₹ in mn) Q2FY22 Q2FY23 Working Capital Days Q2FY22 Q2FY23 Consolidated Revenue 1,53,133 1,90,808 Global 7 27 IT 76% 74% SISA 3 21 Mobility 23% 25% ROW 12 32 Services 1% 1% Consolidated EBITDA 4,575 5,624 Consolidated PAT 3,072 3,870 SISA (₹ in mn) Q2FY22 Q2FY23 R

  39. Slide 39: H1FY23 Performance

    g Redington H1FY23 Performance

  40. Slide 40: H1FY23 Redington Global Performance

    H1FY23 Redington Global Performance REVENUE# EBITDA PAT 25% 28% 29% 3,59,091 10,494 7,028 2,87,873 8,217 5,439 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 # Revenue growth as per Gross a/c : 27% ₹ in mn

  41. Slide 41: H1FY23 Performance by Market

    H1FY23 Performance by Market REVENUE# EBITDA PAT 29% 31% 30% 1,71,460 4,907 3,206 1,33,034 3,741 2,473 SISA H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 21% 25% 29% 1,87,631 1,54,840 ROW 5,587 3,822 4,476 2,966 H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 # Revenue growth as per Gross a/c – SISA: 32% ; RO

  42. Slide 42: H1FY23 Contribution by Market

    H1FY23 Contribution by Market REVENUE EBITDA PAT 54% 52% 54% 53% 55% 54% 46% 48% 46% 47% 45% 46% H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 SISA ROW SISA ROW SISA ROW

  43. Slide 43: H1FY23 Revenue Performance by Verticals

    H1FY23 Revenue Performance by Verticals SISA ROW GLOBAL 1% 1% 1% 1% 1% 1% 17% 20% 23% 28% 26% 31% 82% 79% 76% 71% 73% 68% H1FY22 H1FY23 H1FY22 H1FY23 H1FY22 H1FY23 IT Mobility Services IT Mobility Services IT Mobility Services

  44. Slide 44: H1FY23 Working Capital Days

    H1FY23 Working Capital Days SISA ROW GLOBAL 19 22 21 2 1 1 36 35 28 29 20 22 13 8 3 H1FY22 Q1FY23 H1FY23 H1FY22 Q1FY23 H1FY23 H1FY22 Q1FY23 H1FY23

  45. Slide 45: H1FY23 Top Vendors

    H1FY23 Top 5 Vendors REVENUE 38% 36% OTHERS SAMSUNG 5% 6% LENOVO 7% 8% DELL EMC 9% 8% HP Inc 13% 13% APPLE 28% 29% H1FY22 H1FY23

  46. Slide 46: H1FY23 Free Cash Flow Statement

    H1FY23 Free Cash Flow Statement Particulars (₹ in mn) H1FY22 FY22 H1FY23 Profit Before Taxation 6,921 16,224 8,845 Non-cash items 883 1,944 1,033 Finance Cost 400 725 710 Changes in Working Capital 6,662 (6,236) (30,301) Direct Tax Paid (1,524) (2,764) (1,655) Net Cash Flow from Operations 13,342 9,

  47. Slide 47: H1FY23 Balance Sheet

    H1FY23 Balance Sheet Particulars (₹ in mn) 30-Sep-21 30-Sep-22 Source: Networth 50,614 62,202 Net Debt (37,612) (2,304) Minority Interest 3,774 3,346 Total 16,775 63,245 Application: Fixed Assets 4,752 5,723 Goodwill 183 747 Right to use Assets 1,841 2,186 Net Assets 9,999 54,589 Total 16,775 63,245

  48. Slide 48: H1FY23 Performance Factsheet

    H1FY23 Performance Factsheet Global H1FY22 H1FY23 Working Capital Days H1FY22 H1FY23 Consolidated Revenue 2,87,873 3,59,091 Global 8 29 IT 76% 73% SISA 3 22 Mobility 23% 26% ROW 13 35 Services 1% 1% Consolidated EBITDA 8,217 10,494 Consolidated PAT 5,439 7,028 SISA H1FY22 H1FY23 ROW H1FY22 H1FY23 Re

  49. Slide 49: Shareholding Pattern

    Shareholding Pattern Others Others 26.3% 25.5% Synnex Synnex Mauritius Mauritius Limited Limited 24.1% 24.1% Mutual FIIs & FPIs Funds Mutual 37.9% 11.6% FIIs & FPIs Funds 38.7% 11.7% Sep-2022 Jun-2022

  50. Slide 50: Investor Contacts

    Investor Contacts M. Muthukumarasamy Compliance Officer Registered office: Block 3, Plathin, Redington Tower, Inner Ring Road, Saraswathy Nagar West, 4th Street, Puzhuthivakkam, Chennai - 600 091 Connecting The Dots https://www.redingtongroup.com Transformation from ‘Product’ to ‘Utility of Product’

Redington — Q2 FY23 Earnings Presentation on 6ix