Symphony Limited — Investor Presentation 2021

Aug 13, 2021

August 13, 2021

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To,

National Stock Exchange of India Limited Symbol – Symphony

BSE Limited Security Code – 517385

Sub.: Investor Presentation – Updates

Dear Sir,

This is in reference to the above-mentioned subject line; we are enclosing herewith updated Investor Presentation. The same is also available on the website of the Company.

Kindly consider this as due compliance of relevant provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Kindly take note of the same and oblige.

Thanking you,

Yours Truly,

For, Symphony Limited MAYUR C Digitally signed by MAYUR C BARVADIY BARVADIYA Date: 2021.08.13 A 10:59:37 +05'30' Mayur Barvadiya Company Secretary

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SLIDE 1

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Management Comments
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Management View on Performance & Outlook

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ActualPerformance:

• FY21 and Q1FY22 performance were impacted on account of the Covid-19.

• A second wave of Covid-19 struck during 2021 summer; coupled with lockdown in the summer of 2020 – both, the peak season for air cooler sales to customers.

• Until middle of April-21 very robust demand and sentiments. Complete focus on maximising production

• Our exports and overseas subsidiaries were not materially impacted (except GSK, China).

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Management View on Performance & Outlook Outlook :

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• We are confident to achieve better performance in FY22 vis-à-vis FY21 on account of:

• Variety of initiatives already undertaken by the management

• Estimated sharp increase in exports

• The Management expects gross margin on domestic sales for FY22 will be back to normal margin of around 50%

• Accelerated turnaround of Climate Technologies in Australia in FY22 despite until

Dec-20 it has been below expectation

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Symphony Ltd – Global Leader

Symphony India – Global Leader

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Sales through local subsidiaries

Direct exports

• Mexico

• 60+ countries

• Australia

• Dedicated international business team

• USA

  • Global distribution network

• Brazil

• China

• Symphony India up for global supplies and Make in India

• ATMA-NIRBHAR BHARAT (self-sustained India) in true sense

• Global markets de-risk the seasonality and business

• Air cooling across the formats (household, commercial and industrial coolers) de-risk the business

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Symphony India – Strengths as a Global Leader
Wide range of
coolers for all
Asset Light &
applications Management
working capital
with 3 decade of
light business
experience in air
model
cooler
Symphony India
Strong Global
Strong R&D team
Brand
Low cost of and facility
manufacturing in
India
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Portfolio of Global Brands

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Financials
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Financials (Yearly)

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₹ Cr

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Consolidated Standalone
Particulars FY2021 FY2020 FY2019 FY2021 FY2020 FY2019
Gross Revenue 931 1157 883 524 763 557
EBIDTA (excl. exceptional item) 170 266 171 152 248 168
PAT 107 182 91 112 186 101
Margins (%)
Gross margin 45 47 46 48 50 50
EBIDTA margin # 18 23 19 29 33 30
PAT margin 12 16 10 21 24 18
ROCE Core Business 41 104 57 237 Infinite 292
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# Excluding exceptional items * ROCE calculated on monthly average of capital employed

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Consolidated Financials (₹ Cr)

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Consolidated Revenues Consolidated EBITDA Consolidated PAT
1,157 273
266 193
242 182
166
852 883 209 158
808
171
621
91
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20
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* FY16 data is annualized for better comparison

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Capital Employed & ROCE

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Standalone Capital Employed # & ROCE Consolidated Capital Employed # & ROCE
(Core Business) (Core Business)
Infinite 50 300 282 180%
150000%
45
160%
250
226
100000% 140%
197
200 120%
50000% 104%
100%
150
80%
292% 237% 0%
100 60%
57%
41% 40%
-50000%
50
20%
-16
-100000% 0 0%
FY19 FY20 FY21 FY19 FY20 FY21
Air cooling and other appliances (₹ Cr) ROCE (%) Air cooling and other appliances (₹ Cr) ROCE (%)
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# Monthly Average

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Dividend Payout and Treasury

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Cumulative PAT and Dividend Payout Treasury #
(₹ Cr) (₹ Cr)
739
503
494
408
337
45.6%
Last 5 years Consolidated Last 5 years Dividend FY19 FY20 FY21
PAT Payout
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*Including Dividend Distribution Tax till FY20. # Excluding loans & investment in subsidiaries

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Symphony Ltd – India

Symphony India – Wide Household air cooler range

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New Launch

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New Launch

New

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New Launch

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New Launch

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New Launch

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Cooling Fan

S e r i e s

Currently available exclusively on e-commerce platforms, Symphony Duet is a personal cooling fan that boasts dual functionality of a fan and a cooler. It is available in two variants: Pedestal & Table.

• Detachable pedestal for

dual usage - on the table or floor-standing

• Touchscreen control

• Surround cooling with swing option

• Honeycomb cooling pads

• Easy to carry

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Business model

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01 02 03
Positioning Design-driven Brand-focused
Focused on offering cutting-edge Best-in-class design, a significant The world and India’s leading
cooling technology advantage over competitors air-cooler brand
Progressively product-agnostic Next generation coolers with 16 robust sub-brands
approach high-end features and aesthetics
04 05 06
An industry Asset and De-risked
pioneer capital-light
Cash-and-carry ₹ 931 Cr. gross revenue (FY21) Well-diversified market presence
and customer base
Sales-to-subsidiary and modern ₹ 105 Cr. tangible fixed assets
retail format on credit (March 31, 2021) Widespread supplier base
Round-the-year sales
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Household coolers: A long runway

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Air-cooler growth Unorganized volume
(2010-2020) market share
AC: 6 Industry Symphony Organized Unorganized
Air-coolers: 14 10 2 mn
25%
No fans: 11
15
6 mn
75%
Fans: 89
0 5 10 15 20 25 30 35 40 45
Cooling pyramid (HH in %) Shift to organized sector
Source: IRS Source: Company Research
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Industrial and
Commercial air coolers
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Industrial and commercial air coolers (Latest launches)

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Universal air Four-side high Powerful air throw Robust weathercooler – top and efficiency resistant body bottom discharge in honeycomb pads the same cooler

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Launcheda range of accessories For easy and quick installation of industrial air coolers

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Modular duct Front grill with auto
Elbow
louvers
Controller for PAC20 Wall mounting metal stand Metal Trolley
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Mouthpiece

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Variable Speed Controller Controller for PAC20

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Industrial air cooling: Enterprise customers

Working with esteemed brands

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Industrial air cooling: Installations

BOSCH, BENGALURU

HERO SHOWROOM, CHHATTISGARH

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RK MARBLES, RAJASTHAN
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KENT RO, NOIDA

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Industrial air cooling: Installations

RENAULT FACTORY, MOROCCO

F&B INDUSTRY, NIGERIA

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GASPER MASS STADIUM, MEXICO
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JD.COM WAREHOUSE, CHINA
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Overseas subsidiaries
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Climate Technologies Pty. Ltd. (CT), Australia

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Range of Products
Household cooler Commercial cooler Rooftop Cooler
Window air cooler Air conditioner Ducted heating unit
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New launches

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Roof mounted air coolers

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EAC

• 2 cabinet sizes, Reduce 10 SKUs of existing range.

• Low height, Sits snug on the roof.

• Installation compatible with all existing products.

• 3 different colours to match roof colours

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New launches

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Household air coolers

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Duke
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• All in one including, ventilation, humidification and purification.

• Full function remote with 7.5 hours timer

• Fully closeable horizontal louvers

• 3 wind speeds with auto vertical louver swing

• Two air delivery modes

• High Efficiency Cooling Pads

• Dust filters

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Australia : Market size and market share

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Australia -
~ ₹ 900 cr
28%
72%
CT Others
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• CT is being converted into asset light business model

• CT’s some products outsourcing commenced from India.

• CT will ultimately be a distribution arm for Symphony’s household products.

• Improvement in margins on account of outsource manufacturing, value engineering and revenue maximizing initiatives.

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• Other players in Australia:

• Seeley International

• Brivis – A Rinnai company

• Lennox

• Based on FY 2019-20

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USA: Market size and market share

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USA -
~ ₹ 2,100 cr
5%
• Bonaire USA (BUSA) is a popular
brand with presence in The Home
Depot, Lowe’s and Amazon
• Symphony India started exporting
household coolers ( ₹ 20 Cr. in FY
20-21) to USA
95%
CT & BUSA Others
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- Financials Symphony Australia*

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			₹ Cr
Particulars	FY2021	FY2020	FY2019 (9M)
Revenue EBITDA PBT #	337 14.6 2.2	287 18.6 7.7	206 (6.4) (9.4)
PAT	0.7	6.4	(14.4)
Cash Profit #	4.9	11.6	(4.3)
Margins (%)
Gross margin	36.2	41.7	37.4
EBITDA margin	4.3	6.5	(3.1)
PAT margin	0.2	2.2	(7.0)

Excluding interest and guarantee charges on acquisition loan

In FY 2021, Gross & EBITDA margins impacted due to (a) higher input costs, (b) local purchase instead of imports, (c) higher freight cost (air freight), and (d) higher labour cost on account of impact of Covid-19.

• Include Symphony Australia, Climate Technologies Pty. Ltd, and Bonaire USA

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Revenue Breakup

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FY 2020-21
1%
26%
73%
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Sales in Australia Sales in USA Other Exports

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FY 2019-20
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1% 17% 82% Sales in Australia Sales in USA Other Exports

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Impco S.De R.L. de C.V. (IMPCO), Mexico

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Last 12 years (cumulative)
~ ₹ 879 cr ~ ₹ 178 cr ~ ₹ 116 cr ₹ 3.5 cr Access to
Sales India export to PAT (India + Equity Industrial
IMPCO IMPCO) investment air coolers
Profit by Symphony India on exports of coolers to Impco (Approx. ₹ Cr)
FY2021 FY2020 FY2019
Profit 3 10 7
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Industrial aircoolers sourced from GSK, China

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New launches

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Window air coolers

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R28SW

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R38W

• New Control Panel Design

• Rust free plastic side panels

• Float valve for uninterrupted cooling

• High efficiency cooling pads

• Auto Vertical Swing

• Fully closeable horizontal louvres

• New Control Panel Design

• Rust free plastic side panels

• Float valve for uninterrupted cooling

• High efficiency cooling pads

• Auto Vertical Swing

• Fully closeable horizontal louvres

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New launches

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HT Series air coolers

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SHT Movil

• Weatherproof engineering plastic

• High efficiency cooling pads

• Easy cleanable water tank

• Free installation kit

• Fully closable louvers

SHTMovilXL

• Weatherproof engineering plastic

• High efficiency cooling pads

• Easy cleanable water tank

• Large water tank capacity

• Fully closable louvers

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Revenue break-up

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Market size ~ ₹ 350 cr
Revenue break-up
14% 19%
28%
3%
48% 11%
14%
12% 15%
21% 15%
Household portable coolers Household ducted coolers IMPCO Econoclima Frikko Aspix/Coppel Lenomex Others
Window coolers Industrial coolers
Based on FY 2019-20
Others
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• Symphony India exports large value of portable coolers every year to IMPCO

• Symphony India has exported coolers value of ₹ 178 Cr in last 12 years to IMPCO

• Potential to export industrial coolers from India

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Financials

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			₹ Cr
Particulars	FY2021	FY2020	FY2019
Revenue EBITDA after exceptional item PAT Cash Profit Margins (%) Gross margin EBITDA margin	75 (0.1)* 1.9 (2.5) 37.9 (0.1)	100 6.2 2.9 4.1 30.4 6.2	92 7.5 6.5 7.5 33.5 8.2
PAT margin	2.5	2.9	7.1

* After Provision for doubtful debt of ₹ 7.2 Cr

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Guangdong Symphony Keruilai Air-coolers Co. Ltd (GSK), China

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Household air coolers

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New Launches

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CROWN i

• All in one including, ventilation, humidification and purification.

• 3-side high efficiency cooling pads

• Full function remote with 7.5-hour timer

• Removable Tank (Partial)

• Chill trays for enhanced cooling

CROWN-M

• All in one including, ventilation, humidification and purification.

• 3-side high efficiency cooling pads

• Removable Tank (Partial)

• Chill trays for enhanced cooling

• Dust filters

• Dust filters

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Industrial air coolers

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Commercial air coolers

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Market size

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Domestic market size ~ ₹ 3,500 cr *

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15%
7%
77%
Household cooler Commercial cooler
Industrial cooler
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• Cooler market – highly fragmented

• Domestic market share ~ 1.2%

• Based on FY 2019-20

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Revenue break-up

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Revenue break-up (product segment) Revenue break-up (region segment)

10% 20% 70% Household and commercial cooler Industrial cooler Spares

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43%
57%
Domestic market Export market
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Financials

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₹ Cr
Particulars FY2021 FY2020 FY2019
Revenue 39 42 58
EBITDA (3.1) (3.1) 1.4
PAT (8.6) (7.7) (1.6)
Cash Profit (6.8) (6.2) 0.2
Margins (%)
Gross margin 35.4 35.7 36.3
EBITDA margin (7.8) (7.3) 2.4
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Disclaimer

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SafeHarbourStatement

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.

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www.symphonylimited.com

MEXICO CHINA AUSTRALIA USA Impco S de R L de C V Guangdong Symphony Climate Technologies Bonaire USA LLC Keruilai Air Coolers Co. Ltd. Pty. Ltd. AYAX 611, Parque Taiying Industrial Area, 26 Nylex Avenue 3774, West Cheyenne Industrial Kalos Hongmei Town, 523160 Salisubury South SA Avenue, North Las Vegas, Guadalupe, Guadalupe Dongguan, 5106 Nevada, 89032, USA N L, Mexico 67205 Guangdong, China Australia

INDIA

Symphony Limited

Symphony House, FP12-TP50 Bodakdev, off SG Highway,

Ahmedabad 380059

Contact

Phone: +91-79-66211111 Email: investor@symphonylimited.com