Creative Newtech Limited · NSE:CNL
Creative Newtech — Creative Peripherals and Distribution — H1 FY19 Earnings Presentation
41 slides from Creative Newtech's earnings presentation, Nov 15, 2018
Slide 1: Creative Peripherals and Distribution Limited
Creative Peripherals and Distribution Limited Result Update Presentation – Q2 & H1 FY19 November 2018
Slide 2: Disclaimer
Click to edit Master title style Disclaimer This presentation has been prepared by Creative Peripherals and Distribution Limited (the “Company”) solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not
Slide 3: Table of Contents
Click to Table ofedit Contents Master title style 01 Chairman’s Message & Key Developments 02 Financial Highlights 03 Company Overview 04 Industry Overview 05 Way Forward 3
Slide 4: Financial Highlights
Click to edit Master title style Financial Highlights 4
Slide 5: Management Comment
Click to edit Master Management Comment title style “We are happy to share that our financial performance for the half year has been in line with our targets. We delivered over 45% revenue growth, more than 80% EBITDA growth and a 73% PAT growth. Our EBITDA and PAT margins have also expanded by 82 a
Slide 6: Key Developments During Q2 & H1 FY19
ClickDevelopments Key to edit MasterDuring title style Q2 & H1 FY19 ✓ Company entered into agreement with Future Tech Electronics Pvt. Ltd. to become authorized Distributor for selling and marketing of LED TV’s for DAEWOO, MEPL & INDICOOL brands in India ✓ Company expands Trademark Licensing agreeme
Slide 7: Quarterly Performance Highlights – Q2 FY19 (YoY)
Click to edit Quarterly Master title Performance style – Q2 FY19 (YoY) Highlights 28.69% 51.42% 53 bps Revenue Rs 79.00 Cr EBITDA Rs 2.81 Cr EBITDA Margin 3.55% 28.31% 28.37% PAT Rs 1.05 Cr EPS Rs 1.81 VS Rs. 1.41 (Q2 FY18) Robust growth across all category, particularly Imaging 7
Slide 8: Quarterly Key Financial Highlights
ClickQuarterly Key to edit Master Financial titleHighlights style Rs. Cr Q2 FY19 Q2 FY18 YoY% Q1 FY19 Income From Operations 79.00 61.18 77.44 Other Operating Income 0.08 0.27 0.02 Total Income from • Revenue increased on 79.08 61.45 28.69% 77.47 account of higher sales in Operations Raw material 71
Slide 9: Half Yearly Performance Highlights – H1 FY19 (YoY)
ClickYearly Half to edit Master title Performance style – H1 FY19 (YoY) Highlights 40.26% 83.15% 82 bps Revenue Rs 156.54 Cr EBITDA Rs 5.50 Cr EBITDA Margin 3.51% 73.51% 25 bps 72.14% PAT Rs 2.01 Cr PAT Margin 1.28% EPS Rs 3.46 VS Rs. 2.01 (H1 FY18) Robust growth across all category, particularly Im
Slide 10: Half Yearly Financial Highlights
ClickYearly Half to editFinancial Master title Highlights style Rs. Cr H1 FY19 H1 FY18 YoY% Income From Operations 156.45 111.07 Other Operating Income 0.10 0.54 156.54 111.61 40.26% • Revenue increased on Total Income from Operations Raw material 141.89 102.19 account of higher sales in Employee Co
Slide 11: Balance Sheet Highlights - As on 30th September
Click to edit Balance SheetMaster Highlights- As on 30th September title style As on 30th As on 31st As on 30th As on 31st Rs. Cr Rs. Cr Sept 2018 March 2018 Sept 2018 March 2018 Shareholder’s Funds 29.96 27.95 Non-current assets 9.93 9.64 Share capital 5.80 5.80 Tangible Assets 8.14 7.65 Reserves &
Slide 12: Annual Financial Highlights
Click to Financial Annual edit Master Highlights title style Revenue (Rs. Cr) EBITDA (Rs. Cr) 250.96 7.51 198.58 212.01 184.48 5.18 5.17 3.55 FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 PAT (Rs. Cr) 3.50 3.00 2.89 2.50 2.00 1.50 1.34 1.14 1.00 0.76 0.50 0.00 FY15 FY16 FY17 FY18 12
Slide 13: Revenue Contribution – Business category
Click to edit Revenue Contribution Master title – Business style category FY2018 FY2017 Security & Security & Lifestyle Survellience Survellience 8% 0% 1% Lifestyle 23% Imaging 23% Imaging 12% I.T. I.T. Peripherals Peripherals 65% 68% 13
Slide 14: Consolidated Key Return Ratios
Click to edit Master Consolidated Key Return title style Ratios RoE(%) RoA(%) 3.53% 11.60% 2.96% 11.10% 2.70% 10.30%* 8.40% 1.98% FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 Return on Assets reflects impact of new high-end product additions in existing and new Security business category during the finan
Slide 15: Annual Financial Highlights
Click to Financial Annual edit Master Highlights title style Rs. Cr FY18 FY17 YoY% Income from Operations 249.83 210.95 18.43% Other Operating Income 1.12 1.06 Total Income from Operations 250.96 212.01 18.37% Raw material 226.41 196.88 Employee Cost 5.76 4.99 Other Cost 11.28 4.98 Total Expenditure
Slide 16: Balance Sheet Highlights - As on 31st March
Click to edit Balance SheetMaster Highlights- As on 31st March title style As on 31st As on 31st As on 31st As on 31st Rs. Cr Rs. Cr March 2018 March 2017 March 2018 March 2017 Shareholder’s Funds 27.95 11.56 Non-current assets 9.64 0.56 Share capital 5.80 4.00 Tangible Assets 7.65 0.28 Reserves & S
Slide 17: Company Overview
Click to edit Master title style Company Overview 17
Slide 18: Who we are
Click to Who weedit are Master title style Specialists in Market Penetration & Distribution in IT, Imaging, Lifestyle and Security domains ❑ Industry leader specialising in market entry for global brands in India ❑ Specialist in leveraging partners’ market positioning and enhancing partners’ busines
Slide 19: Journey so far…
Click to edit Journey so far… Master title style 2013 ▪Change to Public Limited- Listing on NSE- SME Platform ▪Foray into Imaging business ▪Forayed into Security and Surveillance business ▪Exclusive Photo Distribution from Vitec Group of ▪Exclusive license for Honeywell ▪Started ‘Creative Italy for
Slide 20: Key Team
ClickTeam Key to edit Master title style Mr. Ketan Patel Mrs. Purvi Patel Chairman & Managing Director Whole Time Director ▪ IIM - B Alumnus with Engineering in Computer ▪ She holds a Diploma in Pharmacy with Technology from Mumbai University graduation in Computer Programming ▪ With over three deca
Slide 21: Awards & Recognitions
Click to edit Awards & Recognitions Master title style “Best Distributor in the “Microsoft Best Retailer Best Trade Show Execution – “Most Valuable Partner ” “Excellence Distributor” Consumer segment” - ADATA - AOC Asia Pacific Award” Vitec Group - Sennheiser “Partner of the Year 2017” - “Long Term
Slide 22: Industry Overview
Click to edit Master title style Industry Overview 22
Slide 23: How technology distributors have evolved, navigating challenges
Click to edit Technology Master have distributors title evolved, style navigating challenges Cycle I Cycle II Cycle III Cycle IV ‘Dawn of the PC era’ Internet Grows Globally MSPs, Mobility advance Digital disruption 1970s-1980s 1990s 2000s Current • “Pick, pack and ship” • Distributor financing • Sh
Slide 24: Digital Transformation: From Product to Experience
Click to Digital edit Master: title Transformation From style “Product” to “Experience” Price Scale and Access to Skills Products . partnerships Content What is needed? Information Customer network Services intimacy Customer Omni-channel experiences marketing Brand By 2020 . Strategy By 2020, CUSTOM
Slide 25: We are leading the Digital Disruption Cycle
Clickare We to leading edit Master the Digital title style Disruption Cycle Scale & Skills Integrated Distribution Model 5000+ Partners 3200+ Products 100+ Trained, professional sales staff State-of- Market Strategic the-art 26 Branches Pre-Sales Sales Research Planning Region-wise sales Processes t
Slide 26: Key trends – Business category: IT
Clicktrends Key to edit–Master Business title category style : IT India Storage Market PC & Components market growth Enterprise HDD Revenues Growth Workstation 1.3% Enterprise SSD Revenues 1.5% 38.4% 17.5% Consumer Notebook 36.8% 10.0% Consumer Desktop 8.9% 22.0% 2012 2013 2014 2015 2016 2017E 2018E
Slide 27: Key trends – Business category: Imaging
Clicktrends Key to edit–Master Business title category style : Imaging 10.1 Growth drivers 42.2 Billion Euros Mn units 2.5 Product Innovation Social Media Marketing 2.0 10.5 Innovations like Flash Facebook, Twitter, 1.3 8.4 0.1 0.4 0.7 higher storage, VR/AR, 360 Instagram, YouTube, other 6.1 0.9 1.8
Slide 28: Key trends – Business category: Lifestyle Gadgets
Clicktrends Key to edit Master title – Business styleLifestyle Gadgets category: Global wearables market size Device sales by 2020 Headphones & Earphones Market Opportunity Volume Value Eyewear Hearables 2016 97 million 9 million 334 312 33 3.8 285 123 6.3 $14 233 236 61 215 Million Billion 200 15 W
Slide 29: Business Overview
Click to edit Master title style Business Overview 29
Slide 30: Integrated Distribution Model
Click to editDistribution Integrated Master titleModel style • Relationships with channel • Generating Brand Interest partners : E-Commerce, large • Location-wise market format and specialized retailers demand • Corporate Sales team • Market demand Analysis • Reseller workshop & demos • Competition
Slide 31: Brands we work with
Click to we Brands editwork Master withtitle style • AOC, ASRock, DGFlick, Honeywell, NZXT, Net Protector, Philips Signage, Printronix, Rapoo, Samsung, Transcend, Viewsonic Information Technology • GoPro, GITZO, Manfrotto, National Geographic, Olympus Imaging • Daewoo, MEPL, Sharp, Sennheiser, Views
Slide 32: Brands we work with
Click to we Brands editwork Master withtitle style
Slide 33: Geographical Presence; Network
Click to edit Master Geographical Presence; titleNetwork style Current Presence Extensive Reach • Mumbai- Lamington Road, Kandivali • Ahmedabad • Aurangabad • Bangalore A network of 5,000+ • Bhopal • Chennai partners • Delhi • Goa • Hyderabad Opened new branch in • Haryana Hong Kong • Hubli • Indore
Slide 34: Operations Process – Improvements
Click to edit–Master Operations Processtitle Improvements style Training Events Events Promotions Promotions • 100+ Trained, professional sales staff • 1,200+ Trainings conducted at shop level annually • 150+ On-ground events conducted for brand promotion • Digital Catalogues • POP Displays 34
Slide 35: Infrastructure & warehousing
Click to edit Master Infrastructure & warehousing title style Mother Warehouse @ Bhiwandi, Maharashtra Dispatch all over India from Central warehouse • Services offered: Warehousing and Transportation • Area : 40,000 Sq. ft. • Transactions handled: 3,500 tonnes per annum • Safety measures: Camera an
Slide 36: Inventory and Receivables Management
Click to edit Inventory andMaster Receivables title style Management Inventory Management • Continuous monitoring of stock over-ageing • Physical verification by Branch A Vendor X internal and external audit team • Annual audit of each warehouse Provides demand Corporate Places orders Branch B proje
Slide 37: Key Achievements
ClickAchievements Key to edit Master title style 01 60% growth in number of partners year on year for Sennheiser, along with 42% growth in turnover for retail since partnering with CPDPL 02 40% growth in number of partners over the years, with 35% increase in turnover for retail for Beats (exclusive
Slide 38: Way Ahead
Need Images Click to edit Master title style Way Ahead 38
Slide 39: Expanding on Exclusive Partnership with Honeywell
Click to edit Expanding onMaster title Exclusive style with Honeywell Partnership Product Designing and Manufacturing • Contract manufacturing of Stock Keeping Units (SKUs) in Honeywell certified and approved factories. 01 • Designing and packing products as per Honeywell global packing guidelines •
Slide 40: Future-ready business growth
Click to edit Master Future-ready business title growth style Expansion in new markets • Domestic market: Smart Cities and Make in India boosting New demand from OEMs as well as service providers; Smart markets Homes, Vehicles; Big Data and Analytics, Intelligent technology & hardware to drive futur
Slide 41: Thank You
Click toYou Thank edit Master title style CREATIVE CREATIVE:IN For further information, please contact: Company : Investor Relations Advisors : Creative Peripherals and Distribution Ltd. Bridge Investor Relations Pvt. Ltd. Mr. Abhijit Kanvinde Ms. Savli Mangle/ Mr. Harshit Gandhi Chief Financial Off
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