presentation 2016 Symphony Limited Corporate presentation 2016 Air - - PowerPoint PPT Presentation

Corporate presentation 2016

Air cooling simplified

2 Symphony Limited Corporate presentation 2016 WATER DISTRIBUTOR HOT DRY AIR EVAPORATIVE MEDIA WATER RESERVOIR FAN COOL FILTERED AIR

Widest product range

3 Symphony Limited Corporate presentation 2016 Cloud – World’s First Wall Mounted Air Cooler Touch Range of Air Coolers

Widest product range

4 Symphony Limited Corporate presentation 2016 Window Air Cooler Range Portable Air Cooler Range

Widest product range

5 Symphony Limited Corporate presentation 2016 Central Air Cooling Solution Range of Packaged Air Coolers Range of Mobile Commercial Air Coolers

6 Symphony Limited Corporate presentation 2016 i-Pure Range

Multi-stage Air Purification

7

Air cooling edge

Symphony Limited Corporate presentation 2016

Runs at the operating cost of a fan Works on inverter power Use it outside, use it inside. Delivers fresh, filtered cool air.

Symphony

• milestones

8 Symphony Limited Corporate presentation 2016

Established in 1988 with a portfolio comprising one air cooler model Pre-2000s, positioning: ‘Many products – One market’ Ventured into the manufacture of ACs, washing machines and other durables Suffered financial stress and restructured Post-2005 positioning is: ‘One product – Many markets’ Scaled up international presence in 2009 Acquired IMPCO (North America) in 2009-11 Started offering central air cooling solutions in India in 2011 Established foothold in all formats of modern retail in 2013 Unveiled the world’s first packaged air cooler in 2015 Acquired Munters Keruilai (China) in 2015 Launched world’s 1st wall mounted air cooler in 2016

Business model

Positioning Focused on offering cutting- edge cooling technology Progressively product- agnostic approach 9 Symphony Limited Corporate presentation 2016 Design-driven Best-in-class design, a significant advantage over competitors Brand-focused World and India’s leading air-cooler brand 15 robust sub-brands An industry pioneer Cash-and-carry Sales-to-subsidiary and modern retail format on credit Asset and capital-light

• Rs. 466 crore in revenues

(9MFY2016)

• Rs. 77 crore in net fixed

assets (March 31, 2016) De-risked Well-diversified market presence and customer base Widespread supplier base

Innovations

10 Symphony Limited Corporate presentation 2016

1988

Marketed the first branded plastic air cooler in India that resembled an air-conditioner

1994

Introduced an air cooler with remote control

2000

Unveiled e-flow technology for enhanced cooling

2004

Equipped air coolers with four- side cooling for better performance

2005

Introduced humidity control

2007

Launched air coolers with Power Saver Technology (PST)

2009

Marketed Diet coolers with ergonomic design

2012

Unveiled the world’s largest portable tower cooler – Storm

2012

Received recognition from the Government

• f India for the

R&D centre

2014

Marketed India’s first branded window coolers with all-weather composite plastic body

2015

Introduced the world’s first packaged air cooler range

2016

Introduced the world’s 1st wall mounted cooler – ‘Cloud’ and introduced air cooler range with air purification – ‘i-Pure’.

Sectoral entry barriers

11 Symphony Limited Corporate presentation 2016

Leader in terms

• f innovation
• Technology, design,

quality, features and performance

Leader in management

• Entrenched experience

(what to do and what not to do)

• Ahead of the curve (new

products, new designs)

Leader in customer-centric

• Expanding portfolio
• New models
• Innovative features

Leader in brand and category status

• Focused approach

Revenue break-up 2015-16 (9M) (Consolidated)

12 Symphony Limited Corporate presentation 2016

Revenue break up Aircooler revenue break up

Air Cooler Sales Rs.444 cr

Residential Air Cooler 93% Rs.413 cr Industrial & Ducted 7 % Rs.31 cr Air cooler: 95% Rs.368 cr

Gross Revenue Rs.466 cr

India: 84% Rs.389 cr Rest of World: 16%

• Rs. 77 cr

Others: 5% Rs.21 cr

9.1 22.3 14.1 126.2 139.5 138.5 50 100 150 FY14 FY15 9MFY16

EBIT (Rs. in Cr)

Air Coolers Corporate Funds

194.7 246.1 180.4 81.0 60.2 138.3 0.0 100.0 200.0 300.0 FY14 FY15 9MFY16

Capital Employed (Rs. in Cr)

Air Coolers Corporate Funds

6.4 11.4 5.4 106.02 138.8 152.9 50 100 150 200 FY14 FY15 9MFY16

ROCE (%)

Air Coolers Corporate Funds

Particulars ((Rs. Cr.) Consolidated Standalone FY14 FY15 9MFY15* 9MFY16 9MFY15* 9MFY16 Net Sales 487.5 525.5 375.0 444.4 351.8 413.7 % growth 40.6 7.8 18.5 14.1 17.6 Other Income 15.9 34.1 22.9 22.0 20.6 20.6 Total Income 503.4 559.6 397.9 466.4 372.4 434.3 EBITDA 139.2 166.0 126.0 156.9 134.8 171.8 % growth 45.8 19.2 24.6 27.4 Depreciation 3.9 4.1 3.0 4.3 1.4 2.2 PBT 135.3 161.3 122.4 164.9 132.8 169.5 Tax 29.6 45.4 38.7 46.5 38.7 46.5 PAT 105.7 115.9 83.7 118.4 94.2 123.0 % growth 75.8 9.6 41.4 30.6 PAT Margin (%) 21.0 20.7 21.0 24.7 25.3 28.3 Segmental Consolidated Standalone Revenue (Rs. Cr.) FY14 FY15 9MFY15* 9MFY16 9MFY15* 9MFY16 India 349.7 411.2 310.0 368.4 307.7 367.9 Rest of the world 137.8 114.3 64.9 76.0 44.2 45.8 Net Sales from Operation 487.5 525.5 374.9 444.4 351.8 413.7 EBIT (%) India 32.8 34.9 38.1 41.0 38.3 40.9 Rest of the world 15.0 15.8 7.6 2.1 35.5 41.5 Total 27.8 30.8 32.8 34.3 37.9 41.0 Y-0-Y Analysis Revenue Growth (%) India 44.4 17.6 18.8 31.5 19.6 Rest of the world 31.7 (17.1) 17.0 19.2 3.7 Total 40.6 7.8 18.5 29.9 17.6 Break-up of sales (%) Domestic 71.7 78.2 82.7 82.9 87.5 88.9 Export 28.3 21.8 17.3 17.1 12.5 11.1

Profit and Loss Statement Segmental

Accelerates performance

Symphony Limited Corporate presentation 2016 13

Segmental Standalone Revenue (Rs. Cr.) FY14 FY15 9MFY15* 9MFY16 India 439.5 408.6 307.7 367.9 Rest of the world 56.6 53.7 44.1 45.8 Net Sales from Operation 496.1 462.3 351.8 413.7

*Unaudited Financials

Accelerates performance

14 Symphony Limited Corporate presentation 2016

Return on capital employed

108.5 14.5 138.5 14.1

Air Coolers Corporate Funds

EBIT

(Rs. Cr) 9MFY2015 9MFY2016 132.1 188.5 138.3 180.4

Air Coolers Corporate Funds

Capital Employed

(Rs. Cr) 9MFY2015 9MFY2016 108.9 7.7 152.9 5.4 Air Coolers Corporate Funds

ROCE

(%) 9MFY2015 9MFY2016

Accelerates performance

15 Symphony Limited Corporate presentation 2016

Financial Performance for 9M FY2015 V/s 9M FY2016

397.9 126.0 83.7 320.6 91.6 466.4 156.9 118.4 318.6 91.1 Gross Revenue EBIDTA PAT Shareholders Fund Book Value (Rs. Cr) 9MFY2015 9MFY2016 31.7 21.0 33.6 24.7 EBIDTA % PAT%

Margins

(%) 9MFY2015 9MFY2016 58.9 105.3 * FY2015 9MFY2016

Dividend Payout

(Rs. Cr) 50.8 88.9# FY2015 9MFY2016

Dividend Payout

(%)

*Includes special dividend payout of Rs. 42.1 crore. #Includes special dividend payout percent of 35.6

Accelerates performance

16 Symphony Limited Corporate presentation 2016

Financials - Statement of Profit & Loss

175 276 296 364 503 560 466

Gross Revenue#

(Rs. crore)

2010 2011 2012 2013 2014 2015 9M2016 37 51 53 60 106 116 118

Profit after tax

(Rs. crore)

2010 2011 2012 2013 2014 2015 9M2016 31.4 27.5 24.7 25.1 26.9 28.8 32.7

PBT %

(of gross revenue)

2010 2011 2012 2013 2014 2015 9M2016

*To calculate CAGR, 9M2016 figure is annualised #Gross revenue figures are net off VAT and CST amount. In past annual reports till FY2015, gross revenue figures includes VAT and CST amount

23.47% CAGR* 25.01% CAGR* 9 months 9 months 9 months

Accelerates performance

17 Symphony Limited Corporate presentation 2016

Financials - Balance Sheet

86.4 152.5 189.1 222.2 275.8 306.2 318.6

Shareholders Fund

(Rs. crore)

86.4 141.0 112.7 83.1 81.0 60.2 138.3

Capital employed

Air coolers (Rs. crore)

0.0 0.0 0.0 0.0 0.0 0.0 0.0

Debt

(Rs. crore)

53.5 11.7 83.9 139.1 194.7 246.1 180.4

Capital employed

Corporate funds (Rs. crore)

9 months 9 months 9 months

18

Accelerates performance

Symphony Limited Corporate presentation 2016

Financials - Shareholder value creation

32.4 27.9 26.6 26.2 27.7 29.7 33.6

EBIDTA margin %

1.8 8.1 22.4 26.6 53.2 58.9 105.3*

Dividend payout

(Rs. crore)

4.7 15.9 42.1 44.3 50.3 50.8 88.9#

Dividend payout %

24.8 43.6 54.1 63.5 78.8 87.5 91.1

Book value

(Rs.)

*Includes special dividend payout of Rs. 42.1 crore. #Includes special dividend payout percent of 35.6

9 months 9 months 9 months 9 months

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-depleting CFCs Maintenance Simple and cost-effective Simple and cost-effective Complex and expensive Portability No Yes No Usage Indoors Outdoors and indoors Indoors Emission No Eco-friendly Environmentally harmful CFCs Effectiveness in humid climates Not applicable Less effective Effective

19 Symphony Limited Corporate presentation 2016

Residential air coolers

Using all forms of advertisement modes

20 Symphony Limited Corporate presentation 2016

Symphony - the hallmark of trust

Electronic Print Radio Below-the-line marketing activities Internet (since 2010)

The result: Symphony has cemented its identity as a generic name for air coolers

Portable cooler campaign Central Air Cooler campaign TV campaign in Mexico i-Pure range campaign

Centralised 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)

21 Symphony Limited Corporate presentation 2016

Effective Temp (C ) 24 27 29 32 35 38 41

Loss of work

• utput

3% 8% 18% 29% 45% 62% 79% Loss of accuracy 0% 5% 40% 300% 700% > 700%

(Source: Study for NASA. “Comfort Conditioning the Plant with Evaporative Cooling” Plant Engineering July 8, 1976 Pg 76 Joseph Marg

Centralised air cooling solutions and Symphony

• Acquired IMPCO (2009-11) and entered the centralised air

cooling solutions business

• IMPCO possessed in-depth expertise in manufacturing large

metallic air coolers and providing customised centralised air cooling solutions

• Potent combination of IMPCO’s sectoral knowledge and

Symphony’s entrepreneurial approach

22 Symphony Limited Corporate presentation 2016

Impco, S.de R.L. de C.V., Mexico

The Symphony-IMPCO synergy

• Symphony leverages IMPCO’s relationships with large

format stores to market residential coolers

• Commercial and industrial coolers available for

Symphony to distribute in India and internationally (through dedicated distributors)

23 Symphony Limited Corporate presentation 2016

Centralised air cooling solutions – long runway

Opportunity and size Factories Universities The centralised air-conditioning market in India is estimated to be worth Rs. 40,000 million The value of the centralised air cooling market size is undefined (potentially >Rs. 40,000 million) Symphony is the only branded player in this segment Warehouses Lecture halls Shops and showrooms Service stations Religious institutions Offices Club houses Poultry and dairy farms Residences Departmental stores Lounges Diesel generator rooms Canteens Laundry Guest houses Kitchens Banquet halls Malls

24 Symphony Limited Corporate presentation 2016

Centralised air cooling solutions

• domestic presence
• IMPCO’s multi-decadal knowledge allowed Symphony to

execute multiple prestigious centralised air cooling solution projects in India

• These projects were undertaken across diverse spaces

including factories, religious institutions, warehouses and railway stations, among others

25 Symphony Limited Corporate presentation 2016

Centralised air cooling solutions – enterprise customers

Working with esteemed brands

26 Symphony Limited Corporate presentation 2016

International markets – long runway

27 Symphony Limited Corporate presentation 2016

Air cooler seen as a Green Product – gaining popularity Global warming accelerating demand Air cooler market potential should logically be greater AC global market size expected to be 150 million by 2017 (industry report)

Global installations – Central Air Cooling

28 Symphony Limited Corporate presentation 2016

World’s Largest Air Cooling Project

29 Symphony Limited Corporate presentation 2016

Air-cooled entire Mecca Complex in Saudi 100 Million CFM of air cooling done.

Air Cooling Solutions

• our international presence

30 Symphony Limited Corporate presentation 2016

Direct Presence

Symphony - foraying into a third geography

31 Symphony Limited Corporate presentation 2016

Inorganic presence in China

• Acquisition of 100% equity in Guangdong

Symphony Keruilai Air Coolers Co. Ltd., China (GSK), erstwhile known as Munters Keruilai Air Treatment Equipment (Guangdong) Co. Ltd (MKE)

• Keruilai is a market leading brand in China in the

evaporative air cooler segment

Symphony’s opportunities

• Cutting-edge R&D expertise
• Only internationally-recognized Chinese air

cooler brand

• Market access to China
• Inherent synergy
• Sourcing advantage
• China’s FTA with ASEAN countries

Guangdong Symphony Keruilai Air Coolers Co. Ltd (GSK)

Rise in temperature

32 Symphony Limited Corporate presentation 2016

• Temperature is rising globally and making global headlines

Looking forward to attractive growth rates

Multiple revenue streams

• Symphony earlier serviced only one customer group – the residential buyer; the Company

now services commercial and industrial customers as well

• Symphony was earlier simply an air-cooler company; the Company has since evolved into

a technologically proficient corporate with a progressively product-agnostic approach

• Symphony was earlier solely a one-product company; the company is progressively

evolving into a product-cum-solutions organisation

33 Symphony Limited Corporate presentation 2016

Other factors

• Symphony possesses a complement of mature and newly-launched models
• Sustained advertising will continue to reinforce Symphony’s ‘Share of Voice’ that could

translate into higher revenues

• Decision to move to an asset-light model at IMPCO will enhance liquidity

34 Symphony Limited Corporate presentation 2016 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 about the future, including, but not limited to,

statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.

DISCLAIMER

www.symphonylimited.com

USA

Symphony USA, Inc.

MEXICO

Impco, S.de R.L. de C.V. Avenida Miguel Aleman #6061,

• Col. America, Guadalupe N.L.

Mexico, C.P. 67130 6520 N. 7th Street Suite #235 Phoenix, AZ 85014

CHINA

Guangdong Symphony Keruilai Air Coolers Co. Ltd Taiying Industrial Area, Hongmei Town, 523160 Dongguan, Guangdong China

INDIA

Symphony Limited Symphony House, FP12-TP50 Bodakdev, Off SG Highway, Ahmedabad 380054.

Symphony Limited Corporate presentation 2016

Feb 2017