Avenuesai Ltd · NSE:CCAVENUE
Avenuesai — Infibeam Avenues — FY2019 Earnings Presentation
45 slides from Avenuesai's earnings presentation, May 31, 2019
Slide 1: Cover letter to stock exchanges
IN FI BEAM"' AVENUES May 31, 2019 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Dalal Street, Fort, Bandra Kurla Complex, Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Company Code No.: 539807 Company Symbol: INFIBEAM Dear Sir/ Madam, Sub: Investo
Slide 2: Financial Results for the year ended 31 March 2019
CAPITALISING ON THE E-COMMERCE REVOLUTION INTELLIGENTLY Financial Results For the year ended 31 March 20191
Slide 3: Disclaimer
Disclaimer This presentation contains certain words and statements concerning Infibeam Avenues Limited (“the Company”) and its prospects, and other statements relating to the Company’s expected financial position, business strategy, the future development of the Company’s operations and the general
Slide 4: Agenda
Agenda 1 Business Overview & Performance Snapshot 2 Strategic Updates 3 Financial Performance 4 Strategy & Outlook 5 Investment Thesis 3
Slide 5: Business Overview
BUSINESS OVERVIEW 4
Slide 6: Business Overview – Strong Business Model
Infibeam Avenues Limited Business Overview – Strong Business Model Company offers comprehensive digital technology for businesses and governments to execute e-commerce transactions safely and securely Payments Infrastructure Platforms • Online payment gateway • Tier III designed data (PG) with nearl
Slide 7: Business Overview – Strong Brands
Infibeam Avenues Limited Business Overview – Strong Brands Company offers comprehensive digital technology for businesses and governments to execute e-commerce transactions safely and securely Payments Infrastructure Target Segment / Platforms Brand Industry Target Segment / Brand Target Segment / I
Slide 8: Business Strengths – Key Differentiators
Infibeam Avenues Limited Business Strengths – Key Differentiators Company has successfully built its business over the years and significantly enhanced business and shareholder value 800,000+ c.INR 494 bn c.INR 173 bn Rank 2nd Active Merchants Payments Processed Procurement on GeM In India <100,000
Slide 9: Consolidated Performance Snapshot
Consolidated Performance Snapshot Strong performance with focus on improving margins and profitability Consistently strong financial performance by the company; improving shareholder value 18.6% 16.2% 1263 15.1% 1879 881 2x 1560 Payments Revenue 6.5% 11591 435 87 667 -0.8% 219 8393 3x 2882 3370 4413
Slide 10: Payments. Infrastructure. Platforms.
PAYMENTS. INFRASTRUCTURE. PLATFORMS. 9
Slide 11: Payments
PAYMENTS BUSINESS OVERVIEW & REVIEW 10
Slide 12: Payments Solutions
Payments Solutions Comprehensive Fintech Platform Broad Spectrum of Payment Solutions for Merchants Core Functionalities * Additional Features * Payment Gateway 240+ payment options Dynamic event notification Processing in 27 currencies Marketing tools CCAvenue Invoice Multi channel B2Biz
Slide 13: Payments Solutions – Key Strengths
Payments Solutions Key Strengths 70% 240+ >100 mn of India’s Payment Annual web merchants use Options Transactions CCAvenue PG 27 18 c.INR135 crore Currencies International Payments daily supported for Languages processed payment 12
Slide 14: Payments Solutions – Leading online payment provider
Payments Solutions We are among the leading online payment solutions provider in India and UAE As a pure-play online Payment Gateway service provider o 2nd in India in terms of net profit o 3rd in revenue market share o 2nd in UAE in payments processed Successful Payments Processed (INR crore) >US
Slide 15: Payments Solutions – Key Merchants
Payments Solutions Key Merchants We work with most of the top brands in India & UAE Key merchants added this quarter … and over 100,000 more 14
Slide 16: Infrastructure
INFRASTRUCTURE BUSINESS OVERVIEW 15
Slide 17: Infrastructure (Data Center)
Infrastructure (Data Center) Will host high compute mission critical applications Received the Tier 3 Design Certification from Uptime Institute for its Data Centre at GIFT City, Gandhinagar Data centre is built on highly resilient, high-speed processors, and designed to be the backbone of the i
Slide 18: Infrastructure (Data Center) – Building a unique data center
Infrastructure (Data Center) Building a unique data center What's different about Infibeam Data Center? First IBM LinuxONE in India to run public cloud services First production ready blockchain platform in India running on HyperLedger What will the data center be utilised for? The adoption of
Slide 19: Platforms
PLATFORMS BUSINESS OVERVIEW & REVIEW 18
Slide 20: E-Commerce Platform for the Government (GeM)
E-Commerce Platform for the Government [Government e Marketplace (GeM)] Slated to become India’s largest online marketplace About GeM Annual Procurements on GeM (INR crore) End-to-end online marketplace for products & services for (c. US$ 100 bn) * Central & State Govt. departments and PSUs 700,00
Slide 21: Bill Payments Platform – Industry and Opportunity
Bill Payments Platform Industry and Opportunity India has: Bill Payment by Value in INR Bill Payment by Volumes More than 3.61 million PNG connections More than 63 million active DTH connections More than 1200 mobile mobile connections (Including prepaid & postpaid) More than 324 million act
Slide 22: Bill Payments Platform
Bill Payments Platform Interoperable bill payment solution built on Bharat Bill Payment System (BBPS) infrastructure Significant opportunity to tap offline market, increasing the total addressable market size to entire Indian population Market share expansion in India by offering Digital Bill Paym
Slide 23: Bill Payments Platform – Agent Institutions and Billers
Bill Payments Platform Agent Institutions and Billers Live Consent Letters Received Sr. No Biller Names 1 Municipal Corporation of Gurgaon Agent Institutions 110 144 2 Joister Agents 500,000+ (FY18: 358,985) 650,000+ (FY 2020E) 3 Sabarmati Gas Limited 4 Unique Central Piped Gases Pvt Ltd 5 GAIL GAS
Slide 24: Hospitality Solution
Hospitality Solution Central Hub for Distribution of Hotel Inventory Channel Connect: Technologically Advanced Channel Direct Connect: Complete Central Reservation Solution (CRS) Management Solution Hotel Booking Rate/Inventory Bulk Updates Room Mapping Engine Management Packages Invoice Booking Eng
Slide 25: Hospitality Solution
Hospitality Solution Central Hub for Distribution of Hotel Inventory 24
Slide 26: Hospitality Solution – Strong brands
Hospitality Solution Strong brands driving strong online growth 1000+ Hotels Live with ResAvenue, integrated with major Online Travel Agents (OTAs) 25
Slide 27: Hospitality Solution – Digital adoption driving growth
Hospitality Solution Fragmented market and digital adoption driving strong growth Subscription + Transaction based revenue model Channel Manager Q4 & FY19 • Bookings generated for our hotel clients • Q4: INR 523 million • FY19: INR 2,563 million • Room nights sold for our hotels Integrated 1500+ •
Slide 28: Strategic Updates
STRATEGIC UPDATES KEY BUSINESS DEVELOPMENTS 27
Slide 29: FY 2019 – Key Business Developments
FY 2019 – Key Business Developments Company strengthened its business during the year and divested non-core businesses Digital Payments business Expansion in The Middle East through acquisition; We rank No. 2 in The UAE and are at a run-rate of AED 1.5 billion in FY20 vs. AED 1 billion in FY19 E
Slide 30: Expansion of Payments Business in the Middle East Region
Expansion of Payments Business in the Middle East Region International expansion gives tremendous growth opportunity Acquired online payment gateway provider, Vavian International, in the Key clients in the UAE Middle East, in June 2018, for AED 4.3 million (US$ 1.2 million) Vavian has a very st
Slide 31: Investment in Instant Global Paytech
Investment in Instant Global Paytech – Investee Company To tap and strengthen offline payments in smaller towns and cities including metros across India Deal details INR 60 million invested for 48% stake in Instant Global Paytech Private Limited (IGPL) Investment in IGPL will allow it, through t
Slide 32: Investment in Avenues Payments India Pvt. Ltd.
Investment in Avenues Payments India Pvt. Ltd. – Investee Company To tap rising opportunity in cross border payments About Avenues Payments Offers ready platform to banks for cross border payments (individual and trade transactions) 50x White labelled platform for banks with blockchain technolog
Slide 33: Collaboration with IBM India
Collaboration with IBM India for building blockchain applications on company’s upcoming cloud data center Details Entered into an agreement with IBM India which will enable Infibeam Avenues to develop, implement and promote blockchain capabilities on LinuxONE in India. This will be a first of it
Slide 34: Collaboration with Primechain Technologies
Collaboration with Primechain Technologies for cross-border blockchain invoicing Details Collaborated with Primechain Technologies to develop cross border blockchain invoicing platform; the Primechain API & technology stack for blockchain will exclusively run on the Company’s data center infrastru
Slide 35: Strategic Alliance with Suvidhaa Infoserve
Strategic Alliance with Suvidhaa Infoserve Creating an Omni-Channel Marketplace Deal Details Investment of INR 250 mn for acquisition of 5% of Equity Stake with control of NSI Infinium Global (NSI), a Wholly Owned Subsidiary of lnfibeam Avenues Limited (IAL), by Suvidhaa Infoserve Pvt. Ltd. (Suvid
Slide 36: Divestment of Infinium (India) Ltd.
Divestment of Infinium (India) Ltd. Focus on core business; platforms and payments Deal details Divestment of wholly-owned subsidiary, Infinium (India) Ltd (IIL), to Ingenius E-commerce Pvt Ltd for INR 600 million About Ingenious Ingenius E-commerce owns and operates B2B aggregator portal Tradoh
Slide 37: Financial Performance
FINANCIAL PERFORMANCE 36
Slide 38: Consolidated Performance Snapshot
Consolidated Performance Snapshot Strong performance with focus on improving margins and profitability Consistently strong financial performance by the company; improving shareholder value Revenue EBITDA Net Income INR 11,591 mn INR 1,879 mn INR 1,263 mn ( 38%) FY19 vs FY18 ( 0.1%) FY19 vs FY18 (
Slide 39: Financial & Operational Summary – Q4 & FY 2019
Financial & Operational Summary – Q4 & FY 2019 Strong revenue growth led by strong performance by payment solutions business Consolidated Q4 Q4 YoY Growth YoY Growth FY 2019 FY 2018 Particulars (INR mn) FY 2019 FY 2018 % % Revenue 2,992 2,395 25% 11,591 8,393 38% EBITDA 629 454 39% 1,879 1,881 -0.1%
Slide 40: Strategy & Outlook
STRATEGY & OUTLOOK 39
Slide 41: Growth Strategy
Growth Strategy Focus on core platforms and payments and scale through transaction based revenue model COMPANY GROWTH STRATEGY Transactional End-to-end Customised International Focus on revenue model solutions solutions expansion profitability Build Focus on Focus on customized Transaction Offer end
Slide 42: Outlook
Outlook Positive and Strong We expect to continue the growth momentum in FY 2020 on account of continuous growth of e-commerce & acceptance of digital payments in India, and growth in the International markets we operate in We expect to - BUILD o Digital Payments Sustainable long term value o gr
Slide 43: Investment Thesis
INVESTMENT THESIS 42
Slide 44: Investment Thesis
Investment Thesis Consistently strong financial performance by the Company Focus on profitability to create wealth for shareholders Strong e-commerce and digital growth in India in the long-term, supported by Government’s digital initiatives End-to-End offering to merchants will improve customer sti
Slide 45: Thank You
Investor Relations - Purvesh Parekh THANK YOU purvesh.parekh@ia.ooo +91 9930554588 Visit us at: www.ia.ooo | www.ccavenue.ooo 44