Corporate Update. April 2018

Transcription

1 Corporate Update April 2018

2 Disclaimer This presentation has been prepared by Quess Corp Limited ( Company") solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distributed or disseminated, directly or indirectly, in any manner. Failure to comply with this directive may result in a violation of the applicable law in certain jurisdictions. By reviewing this presentation, you agree to be bound by the restrictions contained herein, and to maintain absolute confidentiality, regarding the information disclosed in these materials. This presentation does not constitute or form part of and should not be construed as, directly or indirectly, any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company by any person in any jurisdiction, including in India, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any investment decision or any contract or commitment therefor. This presentation contains statements that constitute forward looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates", "projects", or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in such forward-looking statements as a result of various factors and assumptions which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations, etc. The Company does not undertake any obligation to revise or update any forward looking statement that may be made from time to time by or on behalf of the Company including to reflect actual results, changes in assumptions or changes in factors affecting these statements. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward looking statements. This presentation may contain certain currency exchange rates and the same have been provided only for the convenience of readers. This presentation is not a complete description of the Company and may not be all inclusive and may not contain all of the information that you may consider material. The information contained in this presentation has not been independently verified. No representation, warranty, guarantee or undertaking, express or implied, is or will be made as to, and no reliance should be placed on, the accuracy, completeness, correctness or fairness of the information, estimates, projections and opinions contained in this presentation. Viewers of this presentation must make their own assessment of the relevance, accuracy and adequacy of the information contained in this presentation and must make such independent investigation as they may consider necessary or appropriate for such purpose. Such information and opinions are in all events not current after the date of this presentation. Further, past performance is not necessarily indicative of future results. Any opinions expressed in this presentation or the contents of this presentation are subject to change without notice. This presentation should not be construed as legal, tax, accounting, investment or other advice. Any person placing reliance on the information contained in this presentation or any other communication by the Company does so at his or her own risk and none of the Company nor any of its affiliates, advisers or representatives, any placement agent, promoters or any other persons that may participate in any offering of any securities of the Company shall have any responsibility or liability whatsoever, whether arising in tort, contract or otherwise, for any errors, omissions, insufficiencies or inaccuracies in such information or opinions or for any loss, cost or damage suffered or incurred howsoever arising, directly or indirectly, from any use of this presentation or its contents or otherwise in connection with this presentation. This presentation has not been and will not be registered as a prospectus with any Registrar of Companies in India. This presentation is not a prospectus, a statement in lieu of a prospectus, an offering circular, an advertisement, a private placement offer letter or an offer document under the Companies Act, 2013 and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended, or any other applicable law. 2

3 About Us

4 India s Leading Integrated Business Services Platform Founded September 2007 Promoters Ajit Isaac & FFH 67.61% (1) Present in Operations in N America, Middle East and SE Asia. Pan India presence with 65 offices (1) 22.65% held by AI 49.02% (1) Employees (2) Over 250,000 Key 9MFY18 Financials Revenue : USD 668 mn (+39%) EBITDA : USD 38 mn (+46%) Margin : 5.73% (+28 bps) PAT : USD 40 mn (+192%) Industrials Industrial Asset O&M & Managed Services Facility Management Facility Management & Security Services People Services Staffing, Recruitment & Skill Development Technology Solutions IT Solutions, Services & Products Internet Business Online Career and Recruitment Portal & Compliance Platform Current Market Cap USD 2.3 Bn (as on Mar 31, 2018) Acquisitions 22 acquisitions and investments across segments and geographies Credit Rating [ICRA]AA- (Positive) 4 (1) Data as of Feb 28, 2018; (2) As of Jan 31, 2018 and Including the headcount for Terrier

5 Quess Corp : Key Milestones 2007 Incorporation of the company 2018 Acquired Monster (India, APAC & Gulf business) Acquired HCL s Care business 2008 Raised Private Equity funds Acquisition of Avon 2017 Celebrated 10 years of Quess Completed first IPP & raised Rs. 874 Cr., Acquired Comtel, acquired a majority stakes in TBSS, now called ConneQt Business Solutions, Acquired Vedang & Greenpiece 2009 Acquired Coachieve, a human resource solutions company 2016 Listed on NSE and BSE Invested in Manipal Integrated Services, acquired Randstad Lanka Headcount crossed 150, Acquired Magna Infotech, an IT staffing company Acquired Hofincons, Brainhunter and Aravon Selected by Ministry of Rural Development, Government of India, to train 8,000 individuals 2013 Acquired MFX Became a step-down subsidiary of Fairfax Financial Holdings 5

6 The Way We Work Our Objectives Over the long term, our goal is to compound our Book Value by 20% p.a. Our focus is long term growth and not quarterly earnings. We will grow through organic growth as well as through friendly M&A We will never bet our company on any one project or acquisition We aim to keep our debt to EBITDA gearing around 2x On an asset light model, we will continue to develop innovative product and service lines We will always give back to society and engage with communities that we associate with Our businesses will be decentralized and run by Presidents Supported by Decentralised and Empowered Structure The Corporate Office will be involved only in capital allocation, performance goal setting and leadership planning. Complete and open communication between Corporate Office and all businesses, and co-operation between each businesses is an essential requirement at Quess. Culture built around Customer Centricity, Employee Engagement and Speed & Agility of Action 6

7 Services offered across segments Segment Services Industrials O&M of Industrial Assets Telecom and Utility Solutions Digital Infrastructure Solutions Technology and Consulting Facility Management Facility Maintenance Food Catering Security Services Landscaping People Services General Staffing Skill Development Payroll and compliance Logistics & Warehousing Technology Solutions IT Staffing IT Products and Solutions Customer Lifecycle Management IT Break-fix & Managed Services Internet Business Job Portal Online Compliance Management 7

8 Our scale of operations Force behind 1920 MW of power, 40 MTPA of metal and 4.5 MTPA of non-ferrous metals 10 Countries India s Largest Staffing Team with Associates 10,000+ Hospital beds; 40,000 student beds & 200 Mn+ Sqft under management Skill development of over 40,000 students across 66 training centers 50,000 shipments per day across 36 cities 22 Acquisitions 5 Verticals 1.50 lakhs Meals /Day 75,000 Telecom Towers 2.1 Mn Household Meter readings per month Clients Onboarding of more than 2,00,000+ employees through Paperless Onboarding Platform 250,000+ Employees 8 We positively impact and touch the lives of millions of Indians in a very unique manner!

9 How We Lead Ikya Excelus Magna Comtel Monster MFX Hofincons Maxeed and Vedang Conneqt Greenpiece Integrated Facilities Top general staffing provider in India with over 150,000 associates Among the largest PPP training and skill development partners with 66 centers across India Largest IT staff augmentation provider in India with over 10,000 associates Largest IT Staffing company in Singapore 2 nd largest job portal in India, providing recruitment solutions and services to ~65 Million registered users across India, South East Asia and the Gulf Two sophisticated data centers at Ridgefield Park, New Jersey and Roanoke, Virginia which are SSAE 16 S0C1 Type II compliant facility Leading the market in Industrial Asset Management with presence across power, energy, oil & gas refining, chemicals, ferrous & non-ferrous industry segments Amongst top 3 leading players in the Telecom Network Operations & Maintenance space in India Amongst leading customer lifecycle management company Leading end-to-end design and landscaping services firm Among the largest integrated facility management providers in India with over 30 Mn+ square feet under management, 4.5 Mn meals served per month and over 50,000 associates 9

10 Key Highlights

11 Strong Long Term Growth and Profitability INR 1,135 mn INR 2,228 mn INR 83 mn INR 41,574 mn INR 269 mn INR 6,370 mn 159K (1) 43K FY12 L a s t 5 Y e a r s FY17 PAT EBITDA Revenue Headcount 11 Note: FY12 figures are as per Indian GAAP while those of FY17 are prepared according to Ind AS. (1) Does not include Manipal Integrated Services and Terrier

12 With Leadership Position across Segments 9M FY18 Rev Share : 9M FY18 EBIT Margin : 9M FY18 EBIT Share (2) : ~ Headcount : 29.7% 7.0% 34.6% ~39,000 Technology Solutions Largest IT staff augmentation provider in India (1) Largest independent IT staffing company in Singapore (1) 5.6% Industrials People Services 47.7% 4.2% 4.0% ~6,500 Among the leading industrial services providers in India, for O&M and managed services (1) Market leading presence across segments Largest General Staffing company in India Among the largest training and skill development partners of Ministry of Rural Development (1) 4.8% 38.7% ~1,38, % Facility Management 7.9% 22.8% Leading Integrated Facility Management company in India (1) ~59,500 Unique Platform That Is Difficult To Replicate With Offerings Across Industries And Geographies 12 Data as on 31 st Dec ) Source: F&S report; (2) Represents respective segment s share of total allocated segmental EBITDA

13 Strong Organic Growth Across 5 Years 5 yr Revenue CAGR of 45%. Organic Growth CAGR of 33% Inorganic Growth of 12% 5 yr EBITDA CAGR of 50%. Organic Growth CAGR of 41%. Inorganic growth of 9% Revenues (INR mn.) 26,159 41,573 EBITDA (INR mn.) 1, 493 2,228 6,394 1,180 4,056 2, ( - ive) ( - ive) (1) Revenue and EBITDA shown above relates to the financials of respective year of acquisition.

14 Our Strategy Going Forward 1 Organically expand service portfolio and operations with primary focus on high growth markets 2 Improve margins through operating leverage, focus on higher value added services and continued shift in business mix in favor of higher margin segments 3 Leverage Digitization to transform business processes and improve customer experience, service delivery and cost efficiencies 4 Supplement service offerings through margin and return accretive M&A strategy 14

15 Community Outreach Careworks Foundation Creating a positive impact in the lives of people, especially in the areas of health and education. Reaching out to 250 teachers Reaching out to 7,900 children across 43 government schools through our flagship School Enhancement Programme Awarded Scholarship to over 210 students 15

16 Thank You! Quess Corp Limited 3/3/2, Bellandur Gate, Sarjapur Road, Bangalore , Karnataka, India