presentation 2017 Symphony Limited Corporate presentation 2017 Air - - PowerPoint PPT Presentation

Corporate presentation 2017

Air cooling simplified

2 Symphony Limited Corporate presentation 2017 WATER DISTRIBUTOR HOT DRY AIR EVAPORATIVE MEDIA WATER RESERVOIR FAN COOL FILTERED AIR

Widest product range

3 Symphony Limited Corporate presentation 2017 Cloud – World’s First Wall Mounted Air Cooler Touch Range of Air Coolers

Widest product range

4 Symphony Limited Corporate presentation 2017 Window Air Cooler Range Portable Air Cooler Range

Widest product range

5 Symphony Limited Corporate presentation 2017 Central Air Cooling Solution Range of Packaged Air Coolers Range of Mobile Commercial Air Coolers

6 Symphony Limited Corporate presentation 2017 i-Pure Range

Multi-stage Air Purification

7

Air cooling edge

Symphony Limited Corporate presentation 2017

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 2017

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 2017 Design-driven Best-in-class design, a significant advantage over competitors Next generation coolers with high end features and aesthetics. 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.811 Crs in revenues(FY17) Rs.77 Crs in net fixed assets (March 31, 2017) De-risked Well-diversified market presence and customer base Widespread supplier base

Innovations

10 Symphony Limited Corporate presentation 2017

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

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

2016

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

2015

Introduced the world’s first packaged air cooler range

2017

Introduced Touch Range with cutting-edge features like Touchscreen, Voice Assist, Mosquito Repellent, etc.

Sectoral entry barriers

11 Symphony Limited Corporate presentation 2017

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 2016-17 (Consolidated)

12 Symphony Limited Corporate presentation 2017

Revenue break up Aircooler revenue break up

Air Cooler Revenue Rs.768 cr

Residential Air Cooler 88% Rs.678 cr Industrial & Ducted 12% Rs.90 cr Air cooler: 94% Rs.597 cr

Gross Revenue Rs.811 cr

India: 78% Rs.634 cr Rest of World: 22%

• Rs. 177 cr

Others: 6% Rs.37 cr

22.3 23.2 28.4 139.5 165.3 205.4 0.0 50.0 100.0 150.0 200.0 250.0 FY15 FY16* FY17

EBIT (Rs. in Cr)

Air Coolers Corporate Funds

246.1 180.4 284.8 60.2 138.2 174.2 0.0 100.0 200.0 300.0 FY15 FY16* FY17

Capital Employed (Rs. in Cr)

Air Coolers Corporate Funds

11.4 8.64 9.9 138.8 221.34 209.9 50 100 150 200 250 FY15 FY16* FY17

ROCE (%)

Air Coolers Corporate Funds

*FY16 was of 9 months. For better comparison, FY16 of 12 months (unaudited) are given.

Particulars (Rs. Cr.) Consolidated Standalone FY14 FY15 FY16 FY17 FY16* FY17 Revenue from

• perations

487.8 525.9 594.0 768.0 525.6 667.2 % growth 40.5 7.8 13.0 29.3 13.6 26.9 Other Income 15.6 33.7 30.7 43.2 28.6 36.6 Total Income 503.4 559.6 624.8 811.2 554.2 703.8 EBITDA 139.2 166.0 193.9 240.8 201.4 243.6 % growth 45.8 19.2 16.8 24.2 22.5 21.0 Depreciation 3.9 4.1 5.4 7.1 2.9 3.7 PBT 135.3 161.3 200.7 233.7 198.4 239.9 Tax 29.6 45.4 53.2 68.1 53.1 66.7 PAT 105.7 115.9 147.5 165.6 145.3 173.2 % growth 75.8 9.6 27.3 12.2 24.8 19.2 PAT Margin (%) 21.0 20.7 23.6 20.4 26.2 24.6 Segmental Consolidated Standalone Revenue (Rs. Cr.) FY14 FY15 FY16 FY17 FY16* FY17 India 349.8 411.4 471.1 596.9 468.9 595.1 Rest of the world 138.0 114.5 122.9 171.1 56.7 72.1 Revenue from Operation 487.8 525.9 594.0 768.0 525.6 667.2 EBIT (%) India 32.8 34.9 37.5 36.9 37.5 36.2 Rest of the world 15.0 15.8 9.6 8.0 40.3 34.1 Total 27.8 30.8 31.7 30.4 37.8 36.0 Y-0-Y Analysis Revenue Growth (%) India 44.2 17.6 14.5 26.7 14.7 26.9 Rest of the world 31.8 (17.0) 7.3 39.3 5.2 27.1 Total 40.5 7.8 12.9 29.3 13.6 26.9 Break-up of Revenue from operations (%) India 71.7 78.2 79.3 77.7 89.2 89.2 Rest of the world 28.3 21.8 20.7 22.3 10.8 10.8

Profit and Loss Statement Segmental

Accelerates performance

Symphony Limited Corporate presentation 2017 13

Segmental Standalone Revenue (Rs. Cr.) FY14 FY15 FY16* FY17 India 349.8 408.8 468.9 595.1 Rest of the world 56.8 53.9 56.7 72.1 Revenue from Operation 406.6 462.7 525.6 667.2

*FY16 was of 9 months. For better comparison, FY16 of 12 months (unaudited) are given.

Accelerates performance

14 Symphony Limited Corporate presentation 2017

Financials - Statement of Profit & Loss

276 296 364 503 560 625 811

Gross Revenue

(Rs. crore)

2011 2012 2013 2014 2015 2016* 2017 51 53 60 106 116 148 166

Profit after tax

(Rs. crore)

2011 2012 2013 2014 2015 2016* 2017 27.5 24.7 25.1 26.9 28.8 31.5 28.8

PBT %

(of gross revenue)

2011 2012 2013 2014 2015 2016* 2017

19.72% CAGR 21.69% CAGR

*FY16 was of 9 months. For better comparison, FY16 of 12 months (unaudited) are given.

Accelerates performance

15 Symphony Limited Corporate presentation 2017

Financials - Balance Sheet

152.5 189.1 222.2 275.8 306.2318.6 459.0

Shareholders Fund

(Rs. crore)

141.0 112.7 83.1 81.0 60.2 138.3 174.2

Capital employed

Air coolers (Rs. crore)

11.7 83.9 139.1 194.7 246.1 180.4 284.8

Capital employed

Corporate funds (Rs. crore)

0.0 0.0 0.0 0.0 0.0 0.0 19.3

Debt

(Rs. crore)

16

Accelerates performance

Symphony Limited Corporate presentation 2017

Financials - Shareholder value creation

27.9 26.6 26.2 27.7 29.7 31.0 29.7

EBITDA margin %

8.1 22.4 26.6 53.2 58.9 105.3# 31.6

Dividend payout

(Rs. crore)

15.9 42.1 44.3 50.3 50.8 88.9# 19.1

Dividend payout %

21.8 27.1 31.8 39.4 43.8 45.5 65.6

Book value@

(Rs.)

*FY16 was of 9 months. For better comparison, FY16 of 12 months (unaudited) are given. #Includes special dividend payout of Rs. 42.1 crore (35.6%) @Book value of all years are calculated on increased no. of shares after 1:1 equity bonus issued on 14th September 2016

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

17 Symphony Limited Corporate presentation 2017

Residential air coolers

Using all forms of advertisement modes

18 Symphony Limited Corporate presentation 2017

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 Garmi ko karo Symphony

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)

19 Symphony Limited Corporate presentation 2017

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

• 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

• IMPCO is a turnaround story
• IMPCO is en-route to implement Symphony’s asset-light and capital-

light business model

• IMPCO is now self-sufficient and debt-free company (even internally)

20 Symphony Limited Corporate presentation 2017

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)

21 Symphony Limited Corporate presentation 2017

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

22 Symphony Limited Corporate presentation 2017

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

23 Symphony Limited Corporate presentation 2017

Centralised air cooling solutions – enterprise customers

Working with esteemed brands

24 Symphony Limited Corporate presentation 2017

International markets – long runway

25 Symphony Limited Corporate presentation 2017

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 2020 (industry report)

Global installations – Central Air Cooling

26 Symphony Limited Corporate presentation 2017

World’s Largest Air Cooling Project

27 Symphony Limited Corporate presentation 2017

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

Air Cooling Solutions

• our international presence

28 Symphony Limited Corporate presentation 2017

Direct Presence

Symphony - foraying into a third geography

29 Symphony Limited Corporate presentation 2017

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

30 Symphony Limited Corporate presentation 2017

➢Temperature is rising globally and making global headlines

April 25, 2017 March 1, 2017 Feb 26 2017 March 21, 2017

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

31 Symphony Limited Corporate presentation 2017

Other factors

• Symphony possesses a complement of newly-launched models termed as next generation

coolers

• 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 further liquidity

32 Symphony Limited Corporate presentation 2017 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

MEXICO

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

• Col. America, Guadalupe N.L. Mexico, C.P.

67130

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 2017

May 2017