Creative Newtech Limited

(Formerly known as Creative Peripherals and Distribution Ltd.)

This presentation has been prepared by Creative Newtech Limited (the "Company"), formerly known as Creative Peripherals & Distribution Ltd., solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment what so ever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Chairman's Message & Key Developments

Financial Highlights

Who we are…

Brand Licensing

➢ Licensed by Honeywell to undertake contract manufacturing for wide range of consumer & enterprise products
➢ Rights on many product designs/casts, can manufacture and sell Honeywell branded products in many APAC countries, as well as govern product pricing to large extent
➢ Aim to expand this business line with Honeywell, and get more international brands under licensing model
➢ Maintain asset-light model while expanding licensed manufacturing business

Market Entry Specialist for Niche Brands

➢ Specialist for global brands to enter and penetrate Indian markets
➢ Well positioned to leverage established network and market reach
➢ Portfolio of over 20 world renowned brands including Honeywell, GoPro, Viewsonic and Samsung
➢ Most brands are market leaders in their respective categories and command niche value in market
➢ Continually enhance portfolio with high-margin, high growth-potential products
➢ Multi-channel network online, retail and general trade channels

Ckart

➢ Online digital B2B eCommerce platform
➢ One-stop-shop for all customers
➢ Hosts all customers and enables them to view, share and transact in each other's products
➢ Offers various useful features like drop shipment, invoicing and facility for customer to have their own site
➢ Expands Company's product domain
➢ Will help expand customer-base without additional manpower
➢ With growing digitization in industry, Ckart paves way for future-ready business model

Journey so far…

▪ Expanded agreement with Honeywell for Passive Cabling

Key Team

Vijay Advani Whole Time Director

Bachelor of Commerce from Mumbai University, with over 32 years of experience
Expertise lies in business planning, execution and key account management
Over three decades' experience in Value Added Distributors Industry, including companies like General Electronics

Chairman & Managing Director Mr. Ketan Patel Mrs. Purvi Patel

IIM B Alumnus with Engineering in Computer Technology from Mumbai University
Over three decades of experience has built expertise in business strategy, planning, product marketing and people management
Responsible for maintaining vendor relations & new product development

Abhijit Kanvinde Chief Financial Officer

Chartered Accountant with over 25 years of strong and multi-industry experience
Worked in companies like Garnier India, Novartis Consumer Health, Shringar Cinemas, etc
Was CFO of listed company for over 8 years, also successfully completed IPO 2x in his career

Whole Time Director

Holds Diploma in Pharmacy with rich experience in Computer Programming
Responsible for execution of business strategies and planning
In-charge of all key business functions

Upendra Singh National Sales Head

Bachelor of Commerce from Ranchi University, with nearly 30 years experience in Sales & Marketing
Expertise lies in vendor management, sales generation & market penetration With over 11 years' experience in IT hardware industry, he drives national channel & corporate sales

Amol Patil National Product Head

MBA in Marketing with Engineering in Electronics and Telecom, with over 20 years' experience in IT industry
Expertise lies in identifying latest market opportunities with excellent team management and execution skills. He is responsible for profitable management of products portfolio

Integrated Business Model

Pre-Sales Market Research Strategic Planning ▪ Executing marketing strategy ▪ Identification of ideal distribution channel ▪ Identify and acquire required skill sets / manpower ▪ Regional planning and strategy to market brand ▪ Resource allocation and strengthening of operations ▪ On-field research and in-house usage and checking ▪ Location-wise market demand analysis ▪ Price waterfall analysis ▪ Detailed product comparison ▪ Competition Analysis Differentiated Sales Processes Retailers
- Creating brand awareness
- Training and events
- Customer Engagement
- Digital Cataloguing
Point-of-sales (POS) activity
Relationships with channel partners : E-Commerce, Large Format and Specialized
Reseller workshop & demos
Online-to-Offline channel

Integrated Business Model contd…

Market Research

Product to product comparison with similar products from peer brands in industry for competitive benchmarking
On-field research & in-house usage & checking Checking product's usability, viability and features internally as well as in real-world scenario across markets. Conducting brainstorming sessions and Price Waterfall analysis.
Location-wise market demand Gaining insight on consumer trends & demand of various demographics for product
Market analysis Research to support ramp-up of brands in multiple countries with cost effective scalable process
Competition Analysis Ascertain products and strategy of peer brands, and vetting overall technology landscape
Identification of ideal distribution channel for specific product/brand, based on the target market Channels - mix of online & offline modes
Identify and acquire required skill sets / man power Conducting necessary training to equip personnel with required knowledge and skills to perform demo's etc. at POS
Regional planning and strategy including target-setting formulating strategy specific to region, product and channel
Strategy to market brand
Resource allocation and strengthening of operations

Integrated Business Model contd…

Executing marketing strategy
Creating brand awareness
Training and events
Customer Engagement
Digital Cataloguing
POP Displays
100+ Trained, professional sales staff
1,200+ Trainings conducted at shop level annually

Point -of -sales (POS) activity
Relationships with channel partners : E - Commerce, large format and specialized retailers
Reseller workshop & demos
Online-to-offline channel
20 branches across India

Brand Licensing & Contract manufacturing - Honeywell End to end services from factory to consumer

Honeywell : Fortune 50 multinational conglomerate offers various commercial and consumer products, engineering services and aerospace systems. Active across aerospace, automation & control systems and performance materials & technologies.

Our Involvement: Started association in September 2016 to capitalize opportunities seen in Indian market. Creative has been crucial support and channel for Honeywell to expand their product distribution in India, and eventually across other Asian markets, and recreate "Power of Connect" among consumers

Market specialists for Niche & Experiential Products

		BrandLicensee
		Region:India•
		APAC••Middle EastCategories:
		IT Peripherals•Audio•Enhancement
		Air Purifiers•

Case Study – Go Pro Market entry, Brand awareness, Consumer engagement

GoPro : Global brand offering broad range of imaging devices and accessories for professional as well as amateur users

Our Involvement: Started association in 2016-17 to enter Indian market. Creative has been a key enabler for brand to penetrate market and establish its presence here. GoPro has grown from barely-known foreign brand to a well-recognized premium imaging brand in urban India

Marketing Strategy

Market research & expertise to formulate customized, ideal marketing strategy
Launched 'GoPro Hero' two days prior to global release, to make it available in time for Diwali sales in 2016
Arrange and manage POP setups and kiosks for the brand at various malls
Specialized training to 1,200 on-ground staff (ISD In-Store-Demonstrators)

Exclusive Distribution

Exclusive distribution rights across India
Leverage strong nation-wide network
From introduction of 'GoPro Hero' in 2016-17, current portfolio spans several new variants of cameras, e.g. "GoPro Hero 9"

On-Field Activities

Brand awareness & promotion
Content creation & influencers
Over ~36 events and workshop per year e.g. 7th India HOG Rally by Harley Davidson at Goa, Times Green Wheels bike festival
Pre-sales activities

Scalability

Witnessed growing sales in India: Share of revenue grew from $1 mn in FY2016-17 to $14 mn in FY2018-19
India offers high growth potential among Asian markets, compared to mature markets like Japan and China

www.gopro.com

Geographical Presence

Domestic

Pan India presence
20 branches across India
Over 150-strong highly skilled workforce across India – mix of young and experienced talent

International

Strong distribution tie-up in Middle East
Expanding network across SAARC & Southeast Asia countries

Smart Sourcing Capabilities

Central Warehouse @ Bhiwandi, Maharashtra

Dispatch all over India from Central warehouse

Warehousing and Transportation services
40,000 Sq. ft. area
Semi-automatic warehousing
Advanced systems for inward & outward, packing and stock keeping (Bar Code system for outward)
Technology enabled supply chain
Transactions handled: 3,500 tonnes per annum

Key features

State-of-art inventory management and warehousing equipment
Fast and on-time delivery
Can arrange dispatch from single unit to container
Tie-ups with reputed logistics service providers
Trained and experienced staff

Chairman's Message & Key Developments

Management Comment

Commenting on the Company performance, Mr. Ketan Patel, Chairman & Managing Director of Creative Newtech said:

"The first quarter of this financial year witnessed continued headwinds from the COVID-19 pandemic. With partial lockdowns in several states across India, this quarter represents practically barely two months of operations for the Company. Despite this, we have performed well. Infact, June reported one of our highest ever monthly sales, followed by a strong July month.

In the quarter ended June 2021, on a standalone basis, we reported a 111.04% YoY growth in revenue, with EBITDA and net profit growing 221.23% and 481.09% YoY to Rs. 5.89 cr and Rs. 3.02 cr, respectively. While this is mainly since the first quarter of last year was severely impacted by the nationwide lockdown, growth was also supported by strong demand for brands like Samsung, Cooler Master and PNY. Operational efficiencies and benefits from export incentives helped profit margins.

Going into the second quarter, the markets are slowly opening up and demand is picking up pace. Some of the recent additions in our brands portfolio include agreements with Hyperice Inc., a US-based specialist in muscle recovery and massage products; MSi, a globally renowned name in computers; and Colorful Tech, a global brand specializing in SSDs etc. These associations are in line with our strategy to continually update and refresh our product portfolio to keep it relevant to the ongoing times and trends.

Our Honeywell portfolio is also strengthening with the addition of audio products and air purifiers which will be launching soon in the coming months. These developments, coupled with our progress in Ckart, gives an optimistic view for the coming quarter.

While the consumer sentiment is still cautious as there is speculation of a third wave of the pandemic, the overall market scenario is improving. 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."

Key Developments

➢ Fund Raise Activity: In July 2021, Creative undertook a preferential allotment of equity shares and warrants to raise Rs. 11 cr to fund future growth plans. Company issued 4,00,000 equity shares at Rs. 110 each and 6,00,000 fully convertible warrants at Rs. 110 each. The shares and warrants were allotted to Abhinav Capital Services Ltd and Shree Sumna Trade LLP.
➢ Recent Brand Agreements:
- Signed agreement with Hyperice Inc. to distribute massage & muscle recovery products
- Tied up with Colorful Technology to distribute SSDs
- Signed distribution agreement with MSi to supply mini-PCs and desktop range
- Signed agreement with Edelkrone to distribute range of videography and photography accessories
- Signed agreement with ZEISS to distribute range of nature observation products like binoculars & monoculars
➢ Tied up with Reliance Retail to distribute range of Disney and Marvel branded products in home appliances and audio product segments. Recently added bulbs, lights, fans and home appliances from BPL to this portfolio
➢ Honeywell:
- Signed licensing agreement for Honeywell air purifiers across 10 countries worldwide
- Expanded Honeywell distribution agreement to include 29 countries across APAC & Middle East
- Added range audio products to Honeywell product portfolio
➢ Company temporarily shut operations as per Government directives, due to outbreak of Covid-19 pandemic during March-April 2020. Partial operations resumed from April 2020 after due approvals from authorities

New Business Initiative: Launch of Ckart

➢ Launched Ckart new online digital B2B eCommerce platform for customers
➢ Ckart launched online on 5 th August 2020 in a grand event attended by more than 700 participants across India
➢ First order placed online during event, showcasing fast and user-friendly experience
➢ Royalty points for customers who order via Ckart
➢ Ckart hosts all existing and new customers integrated with Company's ERP system
➢ Value added services include drop-shipment and invoicing capabilities
➢ Adding seller module and partner-specific e-store option
➢ Developed in-house by dynamic and dedicated team

➢ Will increase ease of doing business and enhance customer experience

Launched B-Safe – Medical Products Portfolio

Launched range of personal medical products for consumers under own brand – B-Safe

➢ Personal health care product portfolio includes infrared thermometers, thermal scanners, pulse oximeters and masks
➢ Cater to growing demand during and after the COVID-19 pandemic
➢ High-precision instruments (thermometers and oximeter) for personal and organizational usage, as well as range of N-95 masks with and without respirators

Financial Highlights

Key Quarterly Financial Highlights – Standalone & Consolidated

	Standalone			Consolidated
Rs. Cr	Q1 FY22	Q1 FY21	YoY%	Q1 FY22	Q1 FY21	YoY%
Revenue from Operations	131.76	63.30		133.89	64.45
Other Income	1.99	0.08		1.99	0.08
Total Income	133.75	63.37	111.04%	135.88	64.53	110.57%
Raw material	119.68	56.69		121.82	57.69
Employee Cost	2.93	1.63		2.93	1.63
Operating Expenses	5.24	3.22		7.02	3.31
Total Expenditure	127.86	61.54		131.77	62.63
EBITDA	5.89	1.83	221.23%	4.11	1.90	116.91%
EBITDA Margin (%)	4.41%	2.89%	152 bps	3.03%	2.94%	9 bps
Interest	1.32	0.92		1.34	0.93
Depreciation	0.30	0.20		0.30	0.20
Exceptional Items	0.18	0.00		0.18	0.00
Profit Before Tax	4.09	0.71		2.30	0.77
Tax	1.07	0.19		1.07	0.19
PAT	3.02	0.52	481.09%	1.23	0.58	113.43%
Other ComprehensiveIncome	0.00	0.00		0.00	0.00
Net Profit	3.02	0.52	481.09%	1.23	0.58	113.43%
Net Profit Margin (%)	2.26%	0.82%	144 bps	0.90%	0.89%	1 bps
Basic EPS inRs.	2.60	0.45	477.78%	1.44	0.45	220.00%

• June 2021 reported one of the highest ever monthly sales, followed by strong performance in July

Continued recovery from COVID lockdown supported by demand for brands like Samsung, Cooler Master & PNY
Higher revenues and relatively lower other expenses boosted EBITDA margins

Consolidated Segmental Performance

Annual Financial Highlights – Consolidated

PAT (Rs. Cr)

Annual Financial Highlights – Standalone & Consolidated

Rs. Cr	FY21	FY20	YoY%	FY21 (Consol.)
Income from Operations	509.30	451.17		520.15
Other Operating Income	6.17	1.31		6.17
Total Income from Operations	515.47	452.48	13.92%	526.32
Raw material	467.52	401.61		475.01
Employee Cost	8.60	8.99		8.60
Operating Cost	19.30	23.83		23.98
Total Expenditure	495.42	434.43		507.59
EBITDA	20.06	18.06	11.08%	18.73
EBITDA Margin%	3.89%	3.99%	(10 bps)	3.56%
Interest	4.65	4.76		4.69
Depreciation	1.02	0.86		1.02
Profit Before Tax	14.39	12.43		13.02
Tax	3.64	3.39		3.64
PAT	10.75	9.04	18.86%	9.38
Other Comprehensive Income	0.03	(0.02)		0.03
Net Profit	10.78	9.03	19.41%	9.41
Net Profit Margin (%)	2.09%	2.00%	9 bps	1.79%
Basic EPS inRs.	9.29	7.78	19.41%	8.26

Consolidated Balance Sheet Highlights – as on 31st March

Rs. Cr	As on 31st March2021	As on 31st March2020
Equity	61.68	41.24
Equity Share capital	11.60	11.60
Other Equity	47.04	29.75
Minority Interest	3.04	(0.11)
Share Application MoneyPending Allotment	0.00	10.60
Non-current liabilities	4.22	5.49
Long term borrowings	3.43	4.81
Other Long term liabilities	0.00	0.00
Other Long term provisions	0.79	0.69
Current liabilities	125.87	97.54
Short Term Borrowings	39.50	27.07
Trade Payables	38.32	29.30
Other Financial liabilities	29.56	25.06
Other Current liabilities	16.98	15.35
Short-term provisions	0.14	0.12
Current Tax liabilities (Net)	1.36	0.63
Total Equities & Liabilities	191.78	154.88

Rs. Cr	As on 31st March2021	As on 31stMarch 2020
Non-current assets	10.16	10.07
Property, Plant and Equipment	9.85	8.89
Intangible Assets	0.22	0.00
Non-current Investments	0.00	1.06
Net Deferred Tax Asset	0.09	0.12
Long-term loans & advances	0.00	0.00
Other non-current assets	0.00	0.01
Current assets	181.61	144.80
Inventories	59.79	60.29
Trade receivables	55.95	38.58
Cash & Cash equivalents	2.25	0.52
Bank Balances other than above	3.99	3.36
Other Financial assets	0.04	0.02
Other Current Assets	59.59	42.03
Total Assets	191.78	154.88