Slide 1: Intimation of Investors' Presentation (exchange cover letter)
1st December 2023 To: National Stock Exchange of India Limited BSE Limited (Scrip Code: FSL) (Scrip Code: 532809) Exchange Plaza, Phiroze Jeejeebhoy Towers, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Dear Madam/ Sir, Sub: Intimation of
Slide 2: Investor Presentation Q2FY24
INVESTOR PRESENTATION Q2FY24 1 © FIRSTSOURCE
Slide 3: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties
Slide 4: Firstsource: Who we are?
Firstsource: Who we are? Established in 2001 Part of RP-Sanjiv Goenka Group Public listing in 2007 Since 2012 Domain driven BPM services company Leaders in chosen segments leveraging a ‘Digital First, Digital Now’ approach to solve key across Banking & Financial Services, Healthcare, customer proble
Slide 5: We work with the leading global enterprises
We work with the leading global enterprises… 7 of Top 15 Mortgage Servicers in the US Banking & Communications 5 of Top 15 Mortgage Lenders in the US Financial Services Media & Technology Asset Finance Streaming Services 5 of Top 10 Credit Cards Cable TV Credit card issuers in the US Mortgages Broad
Slide 6: And are market leaders in our focus domains
And are market leaders in our focus domains Market Leader Star Performer Customer Experience (CX) Collections Healthcare Payer Operations Omnichannel engagement White-labeled digital collections Peak Matrix Assessment | 2023 Active user personalization First-party & 3rd party collections Intelligent
Slide 7: We have realigned our strategic priorities
We have realigned our strategic priorities… Simplify the organization Cross-sell/up-sell into existing clients Expand capabilities Amplify the ‘Firstsource’ brand Tech in everything we do Elevate employee experience TOP-QUARTILE REVENUE GROWTH CONCURRENT Improve margins MARGIN EXPANSION © FIRSTSOURC
Slide 8: And are focused on execution
And are focused on execution Our recent deal wins Total headcount 10-year renewal of contract as the primary outsourcing partner by the Top client, one of Europe’s leading media and entertainment companies 23,953 23,932 23,627 Selection by Education Testing Services, one of the largest education ass
Slide 9: We expect Gen AI to open new revenue streams
We expect Gen AI to open new revenue streams… Enterprise GenAI adoption cycle* Most enterprises are still early in their adoption cycle Deployed • Cost to compute/cost to infer is still high GenAI for 5+ processes • Board mandates driving demand for advice and 17% Deployed guidance GenAI Planning in
Slide 10: And we are building capabilities to address the opportunity
And we are building capabilities to address the opportunity FirstSense.AI Partner FirstSense.AI Studio ecosystem Our proprietary Sandbox Initiative to Across Robotics, framework to ecosystem for proactively Process and Task accelerate experimentation, engage Mining, and client’s AI evaluation, and F
Slide 11: We are socially conscious
We are socially conscious Environment Social Governance 65% 46% 50% Increase in renewable energy of the total workforce comprise of the Board consist of consumption vs FY22 (India) of women Independent Directors 24% Recognized as a Level 3 10% Renewable energy Disability Confident Leader of the Inde
Slide 12: And focused on shareholder value creation
And focused on shareholder value creation 5 Years Stock Performance NSE: FSL | BSE: 532809 | Reuters: FISO.BO| Bloomberg: FSOL:IN Market Capitalisation: US$1.5bn | Average daily trading volume: US$ 5.0m Nov-18 May-19 Nov-19 May-20 Nov-20 May-21 Nov-21 May-22 Nov-22 May-23 Nov-23 FSL NIFTY IT Shareho
Slide 13: Leadership team
Leadership team Dinesh Jain Prashanth Nandella Venkatgiri Vandali Rajiv Malhotra Sameer Ahluwalia Chief Financial Officer Chief Operating Officer Head - Healthcare Head - Europe Head - BFS Ritesh Idnani MD & CEO Arjun Mitra Ashish Chawla Sundara Sukavanam Aftab Javed Head - Collections Head- IDEA, E
Slide 14: In summary
In summary… We see potential to grow at an accelerated pace over the medium term… Discontinuities caused by macro and technology shifts are creating market opportunities Our ‘market positioning’ gives us an advantage …Helped by our unique differentiators… Roster of long-standing relationships with q
Slide 15: Factsheet
firstsource’ Factsheet © FIRSTSOURCE | 14
Slide 16: Financial performance snapshot
Financial performance snapshot Revenue (in $ million) Revenue (in ₹ million) -0.1% 5.6% 18.5% 16.0% -5.7% -1.4% 8.2% 7.1% 23.9% 16.6% 1.7% 3.7% 2.0% 6.6% 17.9% 14.6% -1.1% -1.8% 60,223 59,212 795 50,780 750 685 40,986 38,263 578 35,352 548 548 30,692 372 FY18 FY19 FY20 FY21 FY22 FY23 H1FY24 FY18 FY1
Slide 17: Key performance indicators
Key performance indicators Return on Equity (%) Return on Capital Employed (%) 17.6% 17.6% 17.7% 15.3% 15.1% 14.1% 13.7% 13.9% 13.9% 13.4% 13.0% 12.9% 12.3% 12.3% FY18 FY19 FY20 FY21 FY22 FY23 H1FY24* FY18 FY19 FY20 FY21 FY22 FY23 H1FY24* Note: FY21 ROE was 16.1% excluding exceptional items Cash Flo
Slide 18: Summary of Performance for the Quarter ended September 30, 2023
Summary of Performance for the Quarter ended September 30, 2023 REVENUE EBIT ₹ 15,400 Million ₹ 1,634 Million (US$ 186 Million) (Margin 10.6%) YoY growth of 3.5% YoY growth of 30.3% Constant Currency YoY YoY Margin expansion of 220 bps decline of 1.9% (including one-time charges) PROFIT AFTER TAX EA
Slide 19: Summary of Performance for the Half year ended September 30, 2023
Summary of Performance for the Half year ended September 30, 2023 REVENUE EBIT ₹ 30,692 Million ₹ 3,424 Million (US$ 372 Million) (Margin 11.2%) YoY growth of 3.7% YoY growth of 41.2% Constant Currency YoY YoY Margin expansion of 300 bps decline of 1.8% (including one-time charges) PROFIT AFTER TAX
Slide 20: Revenue split | Q2FY24
Revenue split | Q2FY24 Revenue split by Revenue split by Revenue split by verticals geography service lines Diverse RoW 5.3% 0.1% PAA 21.9% CMT 21.2% US DECX UK 52.9% 34.8% 65.1% BFS 40.8% Healthcare IBO 32.7% 25.2% Banking & Financial Services (BFS) Healthcare United States (US) United Kingdom (UK)
Slide 21: FY24 business outlook
FY24 business outlook 0-2% 11-11.5% constant currency EBIT margin revenue growth © FIRSTSOURCE | 20
Slide 22: Profit & loss statement
Profit & loss statement In ₹ million Q1FY23 Q2FY23 Q3FY23 Q4FY23 FY23 Q1FY24 Q2FY24 QoQ YoY Income from services 14,524 14,735 15,033 15,566 59,859 15,267 15,417 1.0% 4.6% Other operating Income 199 147 16 2 364 25 (17) (169.1%) (111.9%) Revenue from operations 14,724 14,882 15,049 15,568 60,223 15,
Slide 23: Balance sheet
Balance sheet In ₹ million As on 30-Sep-23 As on 31-Mar-23 In ₹ million As on 30-Sep-23 As on 31-Mar-23 ASSETS EQUITY AND LIABILITIES Non-Current Assets Shareholder's Funds Fixed assets 2,454 2,789 Equity share capital 6,970 6,970 5,550 4,958 Reserve and surplus 29,727 26,699 Right-of-use assets Non
Slide 24: Cash flow statement
Cash flow statement Half-Year ended Half-Year ended In ₹ million Sept 30, 2023 Sept 30, 2022 Cash Flow from Operating Activities Net profit before taxation and non controlling interest 3,096 2,597 Depreciation and amortization 1,266 1,302 Finance costs (For borrowing & lease liabilities) 514 386 Adj
Slide 25: Operating metrics
Operating metrics Particulars Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Banking & Financial Services 48.9% 48.3% 49.0% 46.3% 43.4% 41.8% 40.3% 40.8% 40.8% Revenue by Healthcare 29.6% 30.3% 30.3% 32.1% 34.5% 34.2% 33.2% 32.6% 32.7% Vertical Communications Media & Tech 19.5% 19.6%
Slide 26: Thank you
THANK YOU Investor relations © Firstsource Solutions Limited | www.firstsource.com © FIRSTSOURCE | 25