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Corporate

presentation
2016
Symphony Limited Corporate presentation 2016

Air cooling simplified


WATER
DISTRIBUTOR COOL
FILTERED AIR

HOT DRY AIR


FAN
EVAPORATIVE
MEDIA

WATER RESERVOIR

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Symphony Limited Corporate presentation 2016

Widest product range

Cloud – World’s First Wall Mounted Air Cooler

Window Air Cooler Range

Portable Air Cooler Range


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Symphony Limited Corporate presentation 2016

Widest product range

Central Air Cooling Solution

Range of Packaged Air Coolers

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Symphony Limited Corporate presentation 2016

Multi-stage Air Purification

i-Pure Range

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Symphony Limited Corporate presentation 2016

Air cooling edge

Runs at the operating Works on Use it outside, Delivers fresh,


cost of a fan inverter power use it inside. filtered cool air.

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Symphony Limited Corporate presentation 2016

Symphony
- milestones
Established in 1988 Pre-2000s, Ventured into the
Suffered financial
with a portfolio positioning: ‘Many manufacture of ACs,
stress and
comprising one air products – One washing machines
restructured
cooler model market’ and other durables

Post-2005 Started offering


Scaled up Acquired IMPCO
positioning is: ‘One central air cooling
international (North America) in
product – Many solutions in India in
presence in 2009 2009-11
markets’ 2011

Established foothold Unveiled the


Acquired Munters Launched world’s 1st
in all formats of world’s first
Keruilai (China) in wall mounted air
modern retail in packaged air cooler
2015 cooler in 2016
2013 in 2015

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Symphony Limited Corporate presentation 2016

Business model

Positioning Design-driven Brand-focused


Focused on offering cutting- Best-in-class design, a World and India’s leading
edge cooling technology significant advantage over air-cooler brand
competitors
Progressively product- 15 robust sub-brands
agnostic approach

An industry pioneer Asset and capital-light De-risked


Cash-and-carry Rs. 466 crore in revenues Well-diversified market
(9MFY2016) presence and customer base
Sales-to-subsidiary and
modern retail format on Rs. 77 crore in net fixed Widespread supplier base
credit assets (March 31, 2016)

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Symphony Limited Corporate presentation 2016

Innovations

1988 1994 2000 2004 2005 2007


Marketed the first Introduced an air Unveiled e-flow Equipped air Introduced Launched air coolers
branded plastic cooler with technology for coolers with four- humidity control with Power Saver
air cooler in India remote control enhanced cooling side cooling for Technology (PST)
that resembled an better
air-conditioner performance

2009 2012 2012 2014 2015 2016


Marketed Diet Unveiled the Received Marketed India’s Introduced the Introduced the world’s
coolers with world’s largest recognition from first branded world’s first 1st wall mounted cooler
ergonomic design portable tower the Government window coolers packaged air – ‘Cloud’ and
cooler – Storm of India for the with all-weather cooler range introduced air cooler
R&D centre composite plastic range with air
body purification – ‘i-Pure’.

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Symphony Limited Corporate presentation 2016

Sectoral entry barriers

Leader in terms Leader in brand Leader in Leader in


of innovation and category management customer-centric
status

• Technology, design, • Focused approach • Entrenched experience • Expanding portfolio


quality, features and (what to do and what
performance not to do) • New models

• Ahead of the curve (new • Innovative features


products, new designs)

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Symphony Limited Corporate presentation 2016

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

Revenue break up Aircooler revenue break up


Gross Revenue Air Cooler Sales
Rs.466 cr Rs.444 cr

India: 84% Rest of World: 16% Residential Air Cooler 93% Industrial & Ducted 7 %
Rs.389 cr Rs. 77 cr Rs.413 cr Rs.31 cr

Air cooler: 95% Others: 5%


Rs.368 cr Rs.21 cr

EBIT (Rs. in Cr) Capital Employed (Rs. in Cr) ROCE (%)


Air Coolers Corporate Funds Air Coolers Corporate Funds Air Coolers Corporate Funds

9MFY16
9MFY16
9MFY16

138.5 138.3 152.9


14.1 180.4 5.4

139.5 138.8

FY15
60.2
FY15
FY15

22.3 246.1 11.4

106.02

FY14
126.2 81.0
FY14

FY14

9.1 194.7 6.4

0 50 100 150 0.0 100.0 200.0 300.0 0 50 100 150 200

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Symphony Limited Corporate presentation 2016

Accelerates performance
Profit and Loss Statement Segmental
Consolidated Standalone Segmental Consolidated Standalone
Particulars ((Rs. Cr.)
FY14 FY15 9MFY15* 9MFY16 9MFY15* 9MFY16 Revenue (Rs. Cr.) FY14 FY15 9MFY15* 9MFY16 9MFY15* 9MFY16
India 349.7 411.2 310.0 368.4 307.7 367.9
Net Sales 487.5 525.5 375.0 444.4 351.8 413.7
Rest of the world 137.8 114.3 64.9 76.0 44.2 45.8
% growth 40.6 7.8 18.5 14.1 17.6
Net Sales from 413.7
487.5 525.5 374.9 444.4 351.8
Other Income 15.9 34.1 22.9 22.0 20.6 20.6 Operation

Total Income 503.4 559.6 397.9 466.4 372.4 434.3


EBIT (%)
EBITDA 139.2 166.0 126.0 156.9 134.8 171.8
India 32.8 34.9 38.1 41.0 38.3 40.9
% growth 45.8 19.2 24.6 27.4 Rest of the world 15.0 15.8 7.6 2.1 35.5 41.5
Depreciation 3.9 4.1 3.0 4.3 1.4 2.2 Total 27.8 30.8 32.8 34.3 37.9 41.0
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 Y-0-Y Analysis
Revenue Growth (%)
PAT 105.7 115.9 83.7 118.4 94.2 123.0
India 44.4 17.6 18.8 31.5 19.6
% growth 75.8 9.6 41.4 30.6
Rest of the world 31.7 (17.1) 17.0 19.2 3.7
PAT Margin (%) 21.0 20.7 21.0 24.7 25.3 28.3 Total 40.6 7.8 18.5 29.9 17.6

Segmental Standalone
Revenue (Rs. Cr.) FY14 FY15 9MFY15* 9MFY16 Break-up of sales
India 439.5 408.6 307.7 367.9 (%)
Rest of the world 56.6 53.7 44.1 45.8 Domestic 71.7 78.2 82.7 82.9 87.5 88.9
Net Sales from
496.1 462.3 351.8 413.7 Export 28.3 21.8 17.3 17.1 12.5 11.1
Operation

*Unaudited Financials

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Symphony Limited Corporate presentation 2016

Accelerates performance
Return on capital employed

EBIT Capital Employed ROCE


(Rs. Cr) (Rs. Cr) (%)
188.5
180.4 152.9
138.5

108.5 138.3
132.1 108.9

14.5 14.1
7.7 5.4

Air Coolers Corporate Funds Air Coolers Corporate Funds Air Coolers Corporate Funds

9MFY2015 9MFY2016 9MFY2015 9MFY2016 9MFY2015 9MFY2016

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Symphony Limited Corporate presentation 2016

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

(Rs. Cr) Margins Dividend Payout


(%) (Rs. Cr) 105.3
466.4 *
33.6
31.7 58.9
397.9

320.6 318.6 24.7


21.0
FY2015 9MFY2016

Dividend Payout
(%)
156.9
126.0 88.9#
118.4
83.7 91.6 91.1
50.8

Gross EBIDTA PAT Shareholders Book Value EBIDTA % PAT%


Revenue Fund
9MFY2015 9MFY2016 9MFY2015 9MFY2016 FY2015 9MFY2016
*Includes special dividend payout of Rs. 42.1 crore. #Includes special dividend payout percent of 35.6
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Symphony Limited Corporate presentation 2016

Accelerates performance
Financials - Statement of Profit & Loss

Gross Revenue# Profit after tax PBT %


(Rs. crore) (of gross revenue)
(Rs. crore)

23.47% CAGR* 560 25.01% CAGR* 31.4


32.7

116 118
503 28.8
106 27.5 26.9
466
24.7 25.1

364
9 months

9 months

9 months
296
276 60
51 53

175
37

2010 2011 2012 2013 2014 2015 9M2016 2010 2011 2012 2013 2014 2015 9M2016 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
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Symphony Limited Corporate presentation 2016

Accelerates performance
Financials - Balance Sheet

Shareholders Fund Capital employed Capital employed Debt


(Rs. crore) Air coolers (Rs. crore) Corporate funds (Rs. crore) (Rs. crore)

141.0 138.3
318.6
306.2 246.1

275.8
112.7
194.7
222.2 180.4
86.4 9 months
9 months

83.1 81.0
189.1
139.1
152.5

9 months
60.2

83.9
86.4
53.5

11.7
0.0 0.0 0.0 0.0 0.0 0.0 0.0

2010 2011 2012 2013 2014 2015 9M2016 2010 2011 2012 2013 2014 2015 9M2016 2010 2011 2012 2013 2014 2015 9M2016 2010 2011 2012 2013 2014 2015 9M2016

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Symphony Limited Corporate presentation 2016

Accelerates performance
Financials - Shareholder value creation

EBIDTA margin % Dividend payout Dividend payout % Book value


(Rs. crore) (Rs.)

88.9#
91.1
33.6 105.3* 87.5
32.4
29.7 78.8
27.9 27.7
26.6 26.2
63.5
9 months

9 months

9 months

9 months
50.3 50.8 54.1
58.9
44.3
53.2 42.1 43.6

24.8
26.6
22.4
15.9

8.1 4.7
1.8

2010 2011 2012 2013 2014 2015 9M2016 2010 2011 2012 2013 2014 2015 9M2016 2010 2011 2012 2013 2014 2015 9M2016 2010 2011 2012 2013 2014 2015 9M2016

*Includes special dividend payout of Rs. 42.1 crore. #Includes special dividend payout percent of 35.6
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Symphony Limited Corporate presentation 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
Ozone layer-depleting
Refrigerants No Water
CFCs
Maintenance Simple and cost-effective Simple and cost-effective Complex and expensive

Portability No Yes No

Usage Indoors Outdoors and indoors Indoors


Environmentally harmful
Emission No Eco-friendly
CFCs
Effectiveness in
Not applicable Less effective Effective
humid climates

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Symphony Limited Corporate presentation 2016

Residential air coolers


Symphony - the hallmark of trust
Using all forms of advertisement modes

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

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

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


campaign campaign campaign Mexico

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Symphony Limited Corporate presentation 2016

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)

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

Loss of work 3% 8% 18% 29% 45% 62% 79%


output

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

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Symphony Limited Corporate presentation 2016

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

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

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Symphony Limited Corporate presentation 2016

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)

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Symphony Limited Corporate presentation 2016

Centralised air cooling solutions


– long runway
Opportunity and size
Offices Universities
Residences Lecture halls
The centralised air-conditioning
Shops and showrooms Service stations market in India is estimated to
be worth Rs. 40,000 million
Religious institutions Factories
Club houses Poultry and dairy farms The value of the centralised air
cooling market size is undefined
Warehouses Departmental stores (potentially >Rs. 40,000
Lounges Diesel generator rooms million)

Canteens Laundry Symphony is the only branded


player in this segment
Guest houses Kitchens
Banquet halls Malls

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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

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Symphony Limited Corporate presentation 2016

Centralised air cooling solutions


– enterprise customers
Working with esteemed brands

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Symphony Limited Corporate presentation 2016

International markets – long


runway

Air cooler seen as a Green Product Global warming accelerating


– gaining popularity demand

AC global market size expected to


Air cooler market potential should
be 150 million by 2017 (industry
logically be greater
report)

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Symphony Limited Corporate presentation 2016

Global installations – Central Air Cooling

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Symphony Limited Corporate presentation 2016

World’s Largest Air Cooling Project


Air-cooled entire Mecca Complex in Saudi

100 Million CFM of air cooling done.


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Symphony Limited Corporate presentation 2016

Air Cooling Solutions


- our international presence

Direct Presence
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Symphony Limited Corporate presentation 2016

Guangdong Symphony Keruilai


Air Coolers Co. Ltd (GSK)
Symphony - foraying into a third geography
Inorganic presence in China Symphony’s opportunities
•Acquisition of 100% equity in Guangdong •Cutting-edge R&D expertise
Symphony Keruilai Air Coolers Co. Ltd., China
•Only internationally-recognized Chinese air
(GSK), erstwhile known as Munters Keruilai Air
cooler brand
Treatment Equipment (Guangdong) Co. Ltd
(MKE) •Market access to China
•Keruilai is a market leading brand in China in the •Inherent synergy
evaporative air cooler segment
•Sourcing advantage
•China’s FTA with ASEAN countries

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Symphony Limited Corporate presentation 2016

Rise in temperature
Temperature is rising globally and making global headlines

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Symphony Limited Corporate presentation 2016

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

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

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Symphony Limited Corporate presentation 2016

DISCLAIMER
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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Symphony Limited Corporate presentation 2016

www.symphonylimited.com

USA MEXICO CHINA


Symphony USA, Inc. Impco, S.de R.L. de C.V. Guangdong Symphony Keruilai
Air Coolers Co. Ltd
6520 N. 7th Street Suite #235 Avenida Miguel Aleman #6061,
Phoenix, AZ 85014 Col. America, Guadalupe N.L. Taiying Industrial Area,
Mexico, C.P. 67130 Hongmei Town,
523160 Dongguan,
Guangdong China

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

Aug 2016