Slide 1: Updated Investor Update cover letter to stock exchanges
Tanla Platforms Limited T: +91-40-40099999 (Formerly known as Tanla Solutions Limited) info@tanla.com Tanla Technology Center www.tanla.com Hi-tech city Road, Madhapur, Hyderabad, India - 500081 CIN: L72200TG1995PLC021262 May 7, 2022 To, BSE Limited National Stock Exchange of India Ltd. Phiroze Jeej
Slide 2: FY-2022 Investor Update
63 tanla FY-2022 Investor Update
Slide 3: Disclaimer
Disclaimer The CPaaS business is evolving at a fast pace in India with very little information available in the public domain on the overall market. The financial community has always sought a response on the total market size, key drivers of the industry and the competitive landscape in this space.
Slide 4: State of the business: leading innovation, growth and value creation
State of the business: leading innovation, growth and value creation High Growth Best in Class margins and Accelerated Innovation Enterprise segment market leader free cash flow profile in 6 years from FY2017-22 CPaaS Market leader in Choice of leaders Enterprise segment India across industry market
Slide 5: Product
21-22 Investor Update Product Processed critical transactions for leading banks in India Launched early access program for Wisely- Truecaller Business messaging with signups across leading retail, BFSI and ecommerce enterprises Vodafone Idea (Vi) is now live on Wisely Network to enhance performance
Slide 6: Product
21-22 Investor Update Product 32bn transactions processed in March 2022 Daily average of 1.06 bn 63% volume market share Impact of Trubloq 44% decrease in SPAM complaints 6858 entities, 23161 headers and 104473 content templates have been rejected so far providing safe and efficient communication 5
Slide 7: Experience breakthroughs in every industry
21-22 Investor Update Experience breakthroughs in every industry Increase in 21% App downloads and 29% Click- Through Rate 2.5x response rate in customer engagement 2x increase in customer engagement Improved App adoption by 30% in 2 months 6
Slide 8: Year results: year-over-year growth and margins
21-22 results [year-over-year growth & margins] Revenue Growth Gross profit growth EBITDA Growth Free Cash Flow 37% 57% 62% ₹ 4,248 Mn 28% Margin 22% Margin PAT Growth Earnings Per Share Operating Cash Flow 51% 39.77 ₹ 4,864 Mn 17% Margin 57% Growth 90% of PAT 7
Slide 9: Q4 results: year-over-year growth and margins
Q4 results [year-over-year growth & margins] Revenue Growth Gross profit growth EBITDA Growth Free Cash Flow 32% 38% 37% ₹ 444 Mn 29% Margin 22% Margin PAT Growth Earnings Per Share Operating Cash Flow 37% 10.36 ₹ 716 Mn 17% Margin 37% Growth 51% of PAT 8
Slide 10: Robust growth across customer segments
21-22 Investor Update Robust growth across customer segments 20-21 21-22 Growth year-over- year for > ₹10Mn+ customers No of customer 192 Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 28% 29% 19% 16% 149 139 ₹500Mn+ customers at 17, grew by 42% 105 ₹100Mn-₹500Mn customers at 36, grew by 13% 36 32 ₹10Mnr-₹100M
Slide 11: Increased wallet share across customer segments
21-22 Investor Update Increased wallet share across customer segments 20-21 21-22 Growth year-over- year for > ₹10Mn+ customers (₹ Million) 31,038 Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 22,287 42% 46% 36% 32% 17,906 ₹500Mn+ customers 11,879 grew by 51% 8,510 ₹100Mn-₹500Mn 7,018 customers grew by 21% 4,
Slide 12: Strong new customer additions
21-22 Investor Update Strong new customer additions New customer additions (₹ Million) 20-21 21-22 1,010 950 259 270 Revenue from new customers at ₹1,010 Mn 20-21 21-22 New customers include every unique contracting entity added during the year 11
Slide 13: Top 20 customer concentration going down
21-22 Investor Update Top 20 Customer concentration going down Revenue from top twenty customers (₹ Million) 20-21 21-22 14,784 19,401 63% Revenue from our top 20 customer grew by 31% 61% 20-21 21-22 Top 20 customers concentration 12
Slide 14: Lasting relationships driving growth over long periods
21-22 Investor Update Lasting relationships driving growth over long periods 16-17 17-18 CAGR 18-19 22% 19-20 20-21 142% 99% 118% 149% 16-17 17-18 18-19 19-20 20-21 21-22 Note: Represents revenue from our active customers grouped by cohorts based on the year when each customer account cohort origina
Slide 15: Operating significantly above Rule of 40
21-22 Investor Update Operating significantly above Rule of 40 Revenue growth EBITDA margin % Rule of 40 20-21 21-22 37% 40% 59% 22% SaaS companies target to operate 21% at Rule of 40 (revenue growth + 19% EBITDA%) 20-21 21-22 14
Slide 16: Revenue milestone of ₹3000 Crore
21-22 Investor Update Revenue milestone of ₹ 3000 Crore Growth year-over- year (₹ Million) Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 32,060 38% 44% 35% 32% 23,415 Revenue growth led by increased volumes, price change, Trubloq and growth in OTT channels Growth driven by BFSI, Retail & Government 20-21 21-2
Slide 17: Focus on platforms and products drive gross profit
21-22 Investor Update Focus on platforms and products drive gross profit Growth year-over-year (₹ Million) Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 9,080 65% 71% 62% 38% Gross profit growth of 5,777 57% Gross margin at 28%, improved by 365 bps Platform business gross margin contribution to total at 26% E
Slide 18: Gross margins
21-22 Investor Update Gross margins 29% 29% 27% 28% 27% Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 17
Slide 19: Gross margins mix
21-22 Investor Update Gross margins mix Platform business GM contribution Enterprise business GM contribution 25% 31% 25% 27% 23% 75% 75% 77% 69% 73% Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 18
Slide 20: Improving efficiency metrices
21-22 Investor Update Improving efficiency metrices Gross profit to EBITDA conversion Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 77% 78% 78% 78% 76% 75% Gross profit to EBITDA conversion at 77% Salary cost at 14% of gross profit in 21-22, as against 15% in 20-21 Other indirect cost at 9% of gross profit in
Slide 21: Strong EBITDA growth
21-22 Investor Update Strong EBITDA growth Growth year-over-year (₹ Million) Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 7,001 79% 83% 60% 37% 4,334 EBITDA margin at 22%, improved by 333 basis points ₹ Salary cost increased by ₹409 Mn ₹ ₹ driven by new hires and salary increments Other expenses remain const
Slide 22: Improving EBIT while investing in growth
21-22 Investor Update Improving EBIT while investing in growth Growth year-over-year (₹ Million) Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 6,593 97% 92% 62% 39% 3,939 EBIT grew by 67% EBIT margin at 21%, improved by 374 basis points Investments in Platforms resulting in higher depreciation of ₹13 Mn 20-21
Slide 23: Best-in-class Free cash flow profile
21-22 Investor Update Best-in-class Free cash flow profile Free Cash Flow as % of PAT (₹ Million) 20-21 21-22 5,293 149% 79% 4,248 Lower cash flow due to investments in Platforms and increase in tax payouts 20-21 21-22 22
Slide 24: Cash utilization towards return to shareholders
21-22 Investor Update Cash utilization towards return to shareholders (₹ Million) 107 11 (32) 4,864 (135) (617) (819) 9,222 5,841 Opening Operating Interest & Issue of Lease Dividend Capital Buyback Closing CCE cash flow other shares liabilities - paid expenditure CCE income net CCE - cash and cash
Slide 25: Cash & cash equivalents
21-22 Investor Update Cash & cash equivalents 20-21 21-22 CCE (₹ Million) 5,221 20-21 21-22 5,841 9,222 3,208 2,786 Restricted cash balance decreased due to revision in cash credit limits across various banks 2,139 597 470 196 446 Restricted Current Current Fixed cash account - INR account - USD dep
Slide 26: Cash & cash equivalents break up
21-22 Investor Update Cash & cash equivalents break up In Millions, unless Current Current accounts- otherwise stated accounts-INR USD Fixed Deposits Restricted cash Total 478 142 2,688 136 3,444 - - 1,600 - 1,600 - - 200 - 200 13 - 133 - 146 39 - 361 - 400 54 - 89 - 143 - 749 - - 749 - 2,317 - 27 2
Slide 27: Profit after tax
21-22 Investor Update Profit after tax Growth year-over-year (₹ Million) Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 5,393 33% 67% 69% 37% 3,561 Profit after tax after grew by 51% Profit after tax margin at 17%, improved by 162 basis points 20-21 21-22 26
Slide 28: Earnings per share
21-22 Investor Update Earnings per share Growth year-over-year (₹) Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 39.77 49% 72% 70% 37% 25.27 EPS grew by 57% EPS growth driven by combination of ₹ PAT growth and lower equity shares to buyback 20-21 21-22 27
Slide 29: ROCE at 141% excluding cash
21-22 Investor Update ROCE at 141% excluding cash ROCE Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 *ROCE *ROCE (excluding CCE) (excluding CCE) 50% 31% 51% 47% 141% 47% Reflects asset lite model 129% 46% 20-21 21-22 20-21 21-22 ROCE- Return on capital employed CCE- Cash & cash equivalents *CCE-Includes fixed
Slide 30: Track record of consistent dividend payouts
Track record of consistent dividend payouts 200% *200% 30% 35% 25% 20% 0% 15-16 16-17 17-18 18-19 19-20 20-21 21-22 Dividend rate % is on face value of equity share *Final dividend of 200% has been recommended by board for 21-22 subject to shareholders approval 29
Slide 31: Strong balance sheet, debt free
₹ 13,540 Mn Strong Equity and Reserves ₹ 9,222 Mn Strong Robust build up of cash & cash equivalents balance sheet 141% ROCE (excluding cash & cash equivalents) Debt free 30
Slide 32: ESG achievements in Q4 21-22
ESG achievements in Q4 21-22 Environmental Social Governance Steps towards creating a greener and Giving back to the society and developing Integrating ESG in our business and cleaner tomorrow our employees formally committing to ESG principles Towards Net-zero For the community Transparency & Good
Slide 33: Appendix
Appendix 32
Slide 34: Profit & Loss account: Fourth Quarter & 21-22
21-22 Investor Update Profit & Loss account: Fourth Quarter & 21-22 In Millions, unless otherwise stated Q4 21-22 Q4 20-21 ∆% 21-22 20-21 ∆% Revenue from operations 8,531 6,486 32 32,060 23,415 37 Cost of services (6,097) (4,717) 29 (22,980) (17,638) 30 Gross profit 2,434 1,769 38 9,080 5,777 57 Ope
Slide 35: Balance sheet - March 31, 2022
21-22 Investor Update Balance sheet- March 31,2022 In Millions, unless otherwise March 31, March 31, In crores, unless otherwise March 31, March 31, stated 2022 2021 stated 2022 2021 ASSETS EQUITY AND LIABILITIES Non-current assets Equity share capital 136 136 Property, plant and equipment 429 297 O
Slide 36: Condensed Cash flow
21-22 Investor Update In Millions, unless otherwise stated 21-22 20-21 Cash flow before changes in working capital 7,249 4,381 Changes in working capital (1,220) 1,790 Cash generated from operations 6,029 6,171 Taxes (1,165) (561) Cash flow from operating activities 4,864 5,610 Net investments in ta
Slide 37: Free Cash flow
21-22 Investor update Free Cash flow In Crores, unless otherwise stated Q4 21-22 Q4 20-21 ∆% 21-22 20-21 ∆% Operating cash flow 716 142 -50 487 561 -13 Capital expenditure (272) (6) 401 62 32 94 Free cash flow 444 136 -70 425 529 -20 Free cash flow in percent of total 5% 21% - 13% 23% - revenue Oper
Slide 38: Key metrics
21-22 Investor update Key metrics: 21-22 Gross Profit +365bps 28.3% EBITDA +333 bps 21.8% PAT +162 bps 16.8% 21-22 Gross Profit to EBITDA +207 bps 77.1% conversion ROCE (excluding CCE) +1734 bps 141% 37
Slide 39: Key metrics: Fourth Quarter
21-22 Investor update Key metrics: Fourth Quarter Gross Profit +126 bps 28.5% 21-22 EBITDA +91 bps 21.6% PAT +67 bps 16.5% Q4 21-22 Gross Profit to EBITDA -13 bps 75.7% conversion ROCE (excluding CCE) +1734 bps 141% 38
Slide 40: Trubloq
Trubloq Q4 21-22 growth in volumes by 31% year-over-year No of transactions (bn per quarter) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 - Q4 20-21 Q1 21-22 Q2 21-22 Q3 21-22 Q4 21-22 Number of transactions includes all the volumes processed across telcos on Trubloq 39