CREATIVE NEWTECH LIMITED — Earnings Release 2021

Jun 19, 2021

Date: 19th June 2021

To, The Manager Listing Department National Securities Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra (East) Mumbai- 400051

Sub: Creative Peripherals and Distribution Limited announces the audited standalone financial results for Q4 & FY21

Dear Sir,

Please find attached Media Release regarding announcement of audited standalone financial results for Q4 & FY21.

Thanking you,

Yours Faithfully For Creative Peripherals & Distribution Limited

Tejas Doshi Company Secretary and Compliance Officer ICSI Membership No. – A 30828

Date: 19th June 2021 Place: Mumbai

Creative Peripherals and Distribution Limited

Media Release – Standalone

Full year results reflect effectively nine months of operations due to lockdown in the initial months of the past year

13.92% YoY growth in FY21 Total income at Rs. 515.47 Cr. – driven by demand for IT & other products mainly Samsung, GoPro, Cooler Master

FY21 EBIDTA at Rs. 20.06 Cr., YoY growth of 11.08%, on account of operational efficiencies and lower other expenses

FY21 Net Profit at Rs. 10.78 Cr., YoY growth of 19.41%

Basic EPS at Rs. 9.18

Mumbai, 19th June 2021: Creative Peripherals and Distribution Limited (NSE: CREATIVE), market specialists for experiential products in IT, Imaging, Lifestyle, and Security domains with a pan-India presence, announced its audited Standalone financial results for the fourth quarter and year ended March 31st, 2021.

Key Standalone Financials (Rs. Cr.):

Particulars	Q4FY21	Q4FY20	YoY%	FY21	FY20	YoY%
Total Income	177.15	128.35	38.02%	515.47	452.48	13.92%
EBIDTA	7.24	3.13	130.98%	20.06	18.06	11.08%
EBITDA Margin	4.09%	2.44%	165 bps	3.89%	3.99%	(10 bps)
Net Profit	4.09	0.94	337.68%	10.78	9.03	19.41%
Net Profit Margin	2.31%	0.73%	158 bps	2.09%	2.00%	9 bps
Basic EPS (in Rs.)	3.42	0.81	322.22%	9.18	7.78	17.99%

Creative Peripherals and Distribution Limited

Performance Highlights for the quarter ended March 31st ,2021:

• Total Income for the quarter was Rs. 177.15 crore in Q4 FY21, a YoY increase of 38.02%, mainly due to robust demand for brands such as Samsung, GoPro, Cooler Master and expansion of Honeywell product portfolio.
• EBITDA is at Rs. 7.24 crore in Q4 FY21, YoY growth of 130.98%. Higher revenue coupled with lower other expenses led to improvement in EBITDA.
• EBITDA Margin is 4.09%, vis-à-vis 2.44% in Q4 FY20
• Net Profit is Rs. 4.09 crore in Q4 FY21, YoY increase of 337.68%. Net Profit Margin stood at 2.31**%**
• Basic EPS is Rs. 3.42

Performance Highlights for the year ended March 31st ,2021:

• The full year performance practically represents operations for nine months, since there were almost no operations in the first quarter due to COVID-related lockdowns in the past year
• Total Income for the year was Rs. 515.47 crore in FY21, a YoY growth of 13.92%. Recovering demand for existing and new products, led by Samsung and Cooler Master, offset the impact of the lockdown during the initial months.
• EBITDA is at Rs. 20.06 crore in FY21, YoY growth of 11.08%. Higher sales and lower other expenses led to increase in EBITDA. However, higher raw material expense due to changing product mix, led to contraction in EBITDA margins
• EBITDA Margin is 3.89%, vis-à-vis 3.99% in FY20
• Net Profit is Rs 10.78 crore in FY21, YoY increase of 19.41%. Net Profit Margin stood at 2.09%
• Basic EPS is Rs. 9.18

Creative Peripherals and Distribution Limited

Recent Key Developments:

• The Company launched Ckart – an online digital B2B eCommerce platform that enables to expand both customer and product-base
• Ckart is fast gaining strong momentum and acceptance among new and existing partners
• Creative Peripherals tied up with Reliance Retail to distribute a range of audio and home appliance products branded under Disney and Marvel labels, as well as lights, bulbs, fans and small domestic appliances by BPL
• The Company signed an agreement with Edelkrone to distribute videography/photography accessories in India
• The Company signed a distribution agreement with ZEISS to distribute binoculars and monoculars across India
• Creative Peripherals expanded its licensing agreement with Honeywell to include air purifiers for 10 countries across the world
• The Company renewed its licensing agreement with Honeywell for another five years, and expanded distribution reach to 29 countries across APAC and the Middle East

Management Comment:

Commenting on performance, Mr. Ketan Patel, Chairman & Managing Director of Creative Peripherals & Distribution Limited said:

"The past fiscal year was troubled with COVID-19 hampering personal lives and business operations across industries in India and globally. After starting on a slow note, businesses recovered gradually as lockdowns in several regions eased up. However, there are still logistics and other impediments in some regions where there are partial lockdowns in India, as the second wave wreaks havoc.

Despite this, the Company has sustained well through these headwinds and registered a growth in topline for the year. In FY21, we reported a 13.92% YoY rise in revenue at Rs. 515.47 cr. EBITDA and net profit for the year stood at Rs. 20.06 cr and Rs. 10.78 cr, having grown 11.08% and 19.41%, respectively. Growth was driven by more demand for brands such as Samsung, Cooler Master and GoPro, among others. Our full year performance practically represents nine months of business, since there were almost no operations in the first quarter due to the COVID-related lockdowns. Overall, the

Creative Peripherals and Distribution Limited

Company has shown strong resilience in surpassing last year's performance, despite the unprecedented market scenario during the year.

On a more positive note, Ckart is making good strides in the market, with many existing and new customers joining the platform. The benefits that the platform offers encourages many new partners to do business via Ckart, thereby generating more volume of transactions. We are adding more functionality to the platform, with the 'seller module' and facility to host a partner's self-branded store on our platform. Based on the ongoing momentum, we expect our partner-base to grow significantly through Ckart.

We also expanded our tie-up with Reliance to include lights, bulbs, fans and other home appliances by BPL. The addition of such an established household brand to our portfolio will give us access to a huge new target market, and boost top line.

While the consumer sentiment is still cautious as the second wave of the pandemic continues, the Company is well positioned to cater to the domestic as well as international markets while keeping a lean and efficient business model, thereby ensuring long-term, sustainable growth for all stakeholders.

I would like to thank the entire team for their dedication and for coming together during such uncertain times."

Company Overview

Established in 1992, Creative Peripherals and Distribution Limited is a well-established company in India's Information and Communication Technology distribution market. Through a robust network of partners and distribution channels, the Company has made a strong foothold in the IT distribution market in the country. The Company has an omni-channel network across all three channels of online, offline and retail trade.

Creative Peripherals specializes in market entry and penetration for global brands. The Company offers demographic intelligence, and enables the formulation and execution of marketing strategies for its clients. In addition to such services, Creative continues to focus on timely

Creative Peripherals and Distribution Limited

delivery, diversification of its product portfolio, sustained long-term relationships with its channel partners, and extending value-added services over and above distribution.

These efforts have enabled the Company to win long running contracts as well as garner accolades in the Industry as amongst the best distributors in India by leading brands. Creative Peripherals is associated with over 20 renowned brands globally. These brands encompass a wide range of applications and help the Company to cater to a broad array of customers, both in the consumer and industrial businesses. Moreover, the Company is well-positioned to leverage the changing trends in the technology industry and be a part of the paradigm shift towards digitization in India.

Creative Peripherals has a unique value-added business model. They provide end-to-end solutions, from market research and competition analysis for brands, to import, distribution, sales and servicing for the brand. Additionally, the Company suggests and executes marketing strategies and recommends viability in specific regions across India for their clients. This is enabled by specialized skill sets, local insights and experience, along with relevant market intelligence. Creative Peripherals also prepares strategic plans for market entry for foreign brands and their target category.

Furthermore, the Company conducts pre-sales and marketing activities for the success of the brand as well as to enable the channel partners to leverage their expertise and bottom line. Creative Peripherals works closely with partners across channels including Large Format Retail (LFR), e-commerce and specialized retailers. The Company is one of the few large distributors who conduct specialized training modules, events and promotional activities at the ground level with channel partners. They also conduct workshops and demos for resellers. This is possible due to the dedication and experience of the corporate and sales teams which constantly track latest market developments to build a closer market connect.

The Company's wide reach and superior logistics capabilities helps it provide end-to-end services including warranty and post-warranty, high-level repair services, and response centres, among others. Such expertise and superior quality of service has led to increased confidence of brands, many of which have chosen Creative Peripherals as exclusive partners and have been with the Company since over five years. The Company focuses on higher operational efficiencies and

Creative Peripherals and Distribution Limited

adding higher-margin and value-added products to its existing product portfolio and such brand associations are a concrete step in that direction.

For more details please visit: www.ecreativeindia.com

For further information please contact:

Company:	Investor Relations:
Abhijit Kanvinde	Rahul Trivedi/ Anviksha Konnure
Chief Financial Officer	Bridge Investor Relations Pvt. Ltd.
Creative Peripherals and Distribution Ltd.	Email:rahul@bridge-ir.com/
E-mail: abhijit@ecreativeindia.com	anviksha@bridge-ir.com

Note: Certain statements in this document may be forward-looking statements. Such forwardlooking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other risk factors, viewers are cautioned not to place undue reliance on these forward-looking statements. The Company will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Creative Peripherals and Distribution Limited