Symphony Limited · NSE:SYMPHONY
Symphony — Investor Presentation (May 2018)
56 slides from Symphony's investor presentation, May 2018
Slide 1: Corporate Presentation
20 CORPORATE 18 PRESENTATION
Slide 2: Contents
2 CONTENTS PRODUCTS THE COMPANY MARKET SUBSIDIARIES FINANCIALS POTENTIAL
Slide 3: Products
2) CORPORATE \ \ snesonr ono PRODUCTS
Slide 4: Air cooling simplified
4 Water distributor Cool filtered air Air cooling simplified Hot dry air Fan Evaporative media Water reservoir
Slide 5: Air cooling edge
5 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 6: Comparison between air-cooling appliances
6 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-depletin
Slide 7: Widest product range
7 Widest product range Portable Air Cooler Range
Slide 8: Cloud, Touch and Sense air cooler ranges
8 Cloud – World’s First Wall Mounted Air Cooler Touch Air Cooler Range Sense Range of Air Coolers
Slide 9: Impco range
9 Impco range Central Air Cooling Solution Range of Packaged Air Coolers Window Air Cooler Range
Slide 10: GSK range
10 GSK range Packaged / Central Air Cooling Solutions Range of Mobile Commercial Air Coolers
Slide 11: Range of Household Coolers
11 Range of Household Coolers
Slide 12: Key Firsts
12 Key Firsts 1989 World’s first Plastic body air cooler
Slide 13: Key Firsts - Formats
13 Key Firsts - Formats 2009 2012 2016 Introduced Tower Format Air Cooler Introduced Tower Format Desert Air Introduced Wall Mounted Air Cooler Cooler
Slide 14: Key Firsts - Features
14 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 15: Company
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Slide 16: Symphony HO - Ahmedabad
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Slide 17: Milestones
17 1995 – 2000 Pre-2000s 1988 1994 Ventured into the Milestones Symphony born with one air cooler model Got listed on stock exchanges manufacture of ACs, washing machines positioning: ‘Many products – One market’ and other durables 2002 – 2007 Post-2005s 2009 2009 – 2011 2011 Suffered financial posi
Slide 18: Business model
18 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 • 16
Slide 19: Sectoral entry barriers
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 to d
Slide 20: Organogram
20 Organogram Board of Directors Chairman & Managing Director Executive Director - Corporate Affair Director Chief Chief Innovation COO AVP – HRD Sales & Marketing Financial Officer Officer AVP – VP - Sales & Sr GM - Accounts & Quality Assurance Service India Trade AVP – R&D AGM – HRD Finance VP - I
Slide 21: Professional Management
21 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), Chartered
Slide 22: Corporate Governance & Beyond
22 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 perform
Slide 23: At a glance
23 At a glance 13 7 50+ 24 53 Manufacturing Different Ranges Residential Cooler C&F Depots Branches Plants including Models + Wide SEZ range of Industrial and Commercial coolers Robust IT 275+ 1000+ 30000+ 1000+ infrastructure – SAP, Business Field Sales & Distributors Dealers Covering Authorised Se
Slide 24: Advertising Campaigns
24 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 Po
Slide 25: Market Potential
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Slide 26: Central Air Cooling Solutions - fact and figures
26 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 issue)
Slide 27: Central air cooling solutions - long runway
27 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 and
Slide 28: Central air cooling solutions - enterprise customers
28 Central air cooling solutions - enterprise customers Working with esteemed brands
Slide 29: Central air cooling solutions - Global installations
29 Central air cooling solutions - Global installations Walmart, USA Factory, China L&T, Gujarat Zoo, Dubai
Slide 30: Central air cooling solutions - Ramtirth Mandir
30 Central air cooling solutions - Ramtirth Mandir
Slide 31: World's Largest Air Cooling Project
31 World’s Largest Air Cooling Project Air-cooled entire Mecca Complex in Saudi 100 Million CFM of air cooling done
Slide 32: Air Cooling Solutions - our international presence
32 Air Cooling Solutions - our international presence Direct Presence
Slide 33: International markets - long runway
33 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 34: Subsidiaries
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Slide 35: Impco S.de R.L. de C.V., Mexico
35 Impco S.de R.L. de C.V., Mexico
Slide 36: IMPCO - milestones
36 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., w
Slide 37: IMPCO - milestones
37 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 the
Slide 38: IMPCO - milestones
38 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 sold
Slide 39: IMPCO Organogram
39 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 40: Impco - distribution
40 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 41: Impco - brands and installations
41 Impco - brands and installations Air-cooled entire Mecca Complex in Saudi
Slide 42: Impco - installations
42 Impco - installations GE Lighting Soriana Retail Ethan Allen Walmart warehouse
Slide 43: Guangdong Symphony Keruilai Air Coolers Co. Ltd (GSK) - China
43 Guangdong Symphony Keruilai Air Coolers Co. Ltd (GSK) - China
Slide 44: GSK - milestones
44 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 st
Slide 45: GSK Organogram
45 GSK Organogram General Manager Operations Domestic Sales Export Sales R&D Head HR Manager Finance Manager Manager Director Director Supported by 100+ members strong team
Slide 46: GSK R&D
46 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 47: GSK - opportunities
47 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 48: Financials
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Slide 49: Revenue break-up 2017-18 (Consolidated)
49 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. 620
Slide 50: Exceptional ROCE
50 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 Sep-
Slide 51: Accelerates performance
51 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 411.4 471.1 596.9 622.2 591.8 621.3 525.9 594.0 764.8 798.3
Slide 52: Financials - Statement of Profit & Loss
52 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* 20
Slide 53: Financials - Balance Sheet
53 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 18
Slide 54: Financials - Shareholder value creation
54 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 20
Slide 55: 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 56: www.symphonylimited.com
www.symphonylimited.com MEXICO CHINA Impco S de R L de C V Guangdong Symphony Keruilai Air Coolers Co. Ltd AYAX 611, Parque Industrial Kalos Guadalupe, Taiying Industrial Area, Guadalupe N L, Mexico 67205 Hongmei Town, 523160 Dongguan, Guangdong China INDIA Symphony Limited Symphony House, FP12-TP50