Sis Limited · NSE:SIS
Sis — Security and Intelligence Services (India) — Investor Presentation (February 2018)
47 slides from Sis's investor presentation, February 2018
Slide 1: Security and Intelligence Services (India) Ltd Investor Presentation
Security and Intelligence Services (India) Ltd INVESTOR PRESENTATION February 2018
Slide 2: Safe Harbour
SAFE HARBOUR 2 This presentation and the accompanying slides (the “Presentation”), which have been prepared by Security and Intelligence Services (India) Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purch
Slide 3: Business Model, Business Verticals, Systems + Culture, Future Agenda
3 BUSINESS MODEL BUSINESS VERTICALS SYSTEMS + CULTURE FUTURE AGENDA
Slide 4: Leading Market Position in Diverse Services
LEADING MARKET POSITION IN DIVERSE SERVICES 4 Service Provided Rankings Brands Security Services Comprehensive Range: From general #2 Company in India guarding to specialized security roles Paramedic and allied health, mobile patrol Fastest growing and fire rescue services in Australia #1 in India E
Slide 5: Organic Growth Backed by Acquisitions, Joint Ventures & Partnerships
ORGANIC GROWTH BACKED BY ACQUISITIONS, JOINT VENTURES & PARTNERSHIPS 5 SECURITY SERVICES Started in 1985 - INDIA Business is completely organically grown Acquired manned guarding business of Chubb Security in Australia (Aug 2008) SECURITY SERVICES for AUD 45 Mn - AUSTRALIA Increased stake in Souther
Slide 6: Pan India Presence – Increasing Penetration
PAN INDIA PRESENCE – INCREASING PENETRATION 6 Smaller/Regional Customers Larger Customers Micro-Market approach: Need the ability to serve across BRANCH CREATION Branches are located close to the country with consistent STRATEGY the customer location leading systems, processes and SLAs to better sal
Slide 7: Diversified End User Segments
7 DIVERSIFIED END USER SEGMENTS BFSI IT/ITES Telecom Automobile Steel, Heavy Industries IT/ITES Healthcare Manufacturing BFSI Government Hospitality & RE Utilities Education Government Hotels & Restaurants Retail Commercial / Offices Healthcare FMCG Others Education Railways Others 14% 12% 26% 3% 30
Slide 8: Opportunities Across B2B, B2G and B2C
OPPORTUNITIES ACROSS B2B, B2G AND B2C 8 Transportation Aviation Ports & Logistics Real Estate & Educational Healthcare INFRASTRUCTURE Townships Institutions Steel & Heavy Food & Automobiles Construction Industries Beverages INDUSTRIES Engineering Chemical & Paper Cement Industrial Gases Banking Medi
Slide 9: Asset Light Business Model with Consistently High Returns
ASSET LIGHT BUSINESS MODEL WITH CONSISTENTLY HIGH RETURNS 9 Rs. in crs Net Revenues Tangible Fixed Assets Capital Employed EBIT RoACE% 2015 3,551 125 464 114 28.6% 2016 3,836 133 542 126 25.4% 4,567 160 854 176 25.4% 2017 Asset Light With Return on Capital Employed Business Model consistently over 2
Slide 10: Recession Resistant Nature Increases Revenue Visibility
RECESSION RESISTANT NATURE INCREASES REVENUE VISIBILITY 10 Strong Revenue growth of >30% despite Economic slowdown during FY09 & FY12-14 Revenue retention of more than 90% consistently over last decade Rs. in crs 1,800.0 12.0% 1,615 1,600.0 10.3% 10.0% 9.8% 1,400.0 7.5% 1,274 9.3% 8.5% 1,200.0 8.0%
Slide 11: Leading to De-risked Income Profile
LEADING TO DE-RISKED INCOME PROFILE 11 SECURITY SERVICES - INDIA SECURITY SERVICES - AUSTRALIA FACILITY MANAGEMENT CASH LOGISTICS +99.1% +41.0% +165.7% 95 111 14 3 79 Rs. in crs 48 1 FY13 FY17 FY13 FY17 -4 FY13 FY17 FY13 FY17 Share 2013 39% 64% -3% 1% of EBITDA 2017 43% 50% 6% 1% Diversified Busines
Slide 12: Business Model, Business Verticals, Systems + Culture, Future Agenda
12 BUSINESS MODEL BUSINESS VERTICALS SYSTEMS + CULTURE FUTURE AGENDA
Slide 13: Security Services
13 Security Services
Slide 14: Security Services & Electronic Security Business
SECURITY SERVICES & ELECTRONIC SECURITY BUSINESS 14 SECURITY SERVICE - SECURITY SERVICES ELECTRONIC ALARM, MONITORING, INDIA IN AUSTRALIA SECURITY SERVICES RESPONSE #2 Security Services in India 12,097 Locations 6,656+ Trained Guards Strategic Alliances with 15 Min Response Time #1 reputed OEM’s Fas
Slide 15: Industry Growth, Market Share & Growth Drivers
INDUSTRY GROWTH, MARKET SHARE & GROWTH DRIVERS 15 Growth Prospects in Securities services: In large industries (Rs. Bn, FY15) Security services: Security services market: India – Expected to grow from Rs. 390 Bn in FY15 to Rs. 970 Bn in Security Market Size CAGR SIS has grown services (Rs. Bn FY15)
Slide 16: Financials – Security Services
FINANCIALS – SECURITY SERVICES 16 Revenue (Rs. In Crs.) EBITDA (Rs. In Crs.) 207 3,989 176 3,293 3,462 157 2,939 146 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 # Employees # Customer Premises 9,044 1,02,192 89,174 6,934 7,252 80,371 6,681 74,076 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 * The above segme
Slide 17: Facility Management Services
17 Facility Management Services
Slide 18: Facility Management Services
FACILITY MANAGEMENT SERVICES 18 Services offered 41,833 Exclusive license Cleaning and repair related Employees agreement with Facility operation and maintenance services ServiceMaster since March 2008 Pest Control & Termite solutions + Industries Covered – Facility Management Industrial and manufac
Slide 19: Business Drivers
BUSINESS DRIVERS 19 Facilities management market in India (Rs. Bn) Hard Services Cleaning Services Pest Services Market Size (Rs Bn) Market Size (Rs Bn) Market Size (Rs Bn) 81 252 CAGR CAGR CAGR 21% 104 22% 12% 21 CAGR CAGR 30 CAGR 12 18% 40 19% 8 8% 20% 18 13 100 2010 2015 2020E 2010 2015 2020E 201
Slide 20: Financials - Facility Management Services
FINANCIALS - FACILITY MANAGEMENT SERVICES 20 Revenue (Rs. In Crs.) EBITDA (Rs. In Crs.) 14 413 88 48 56 FY14 FY15 FY16 FY17 -3 -4 -5 FY14 FY15 FY16 FY17 # Employees # Customer Premises 2,479 38,270 1,348 780 10,389 625 5,334 6,653 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 * The above segment financial
Slide 21: Cash Logistics
21 Cash Logistics
Slide 22: Cash Logistics Business – 2nd Largest in India
CASH LOGISTICS BUSINESS – 2ND LARGEST IN INDIA 22 May Dec Dec 2011 2014 2016 EMERGENCE OF THE CASH LOGISTICS Entered into JV with Acquired the cash and valuables Acquisition of specified BUSINESS affiliates of Prosegur Spain services division of ISS SDB in India business contracts, vendor contracts,
Slide 23: Business Drivers
BUSINESS DRIVERS 23 Currency Management services in India Break-up of Cash Logistics Currency with Public in India Cash Logistics industry in India (Rs. Bn) industry in India (FY15) 15.0% 12.3% 11.5% 10% 11.1% 9.1% 15.9 10% 13.9 66 12.5 CAGR 18% 11.4 10.3 9.1 CAGR 16% 29 25% 55% 16 ATM Replenishment
Slide 24: Financials - Cash Logistics
FINANCIALS - CASH LOGISTICS 24 Revenue (Rs. In Crs.) EBITDA (Rs. In Crs.) 7 287 6 202 165 # 3 110 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 -3 # Converted from Subsidiary to JV # Employees # Cash Vans 10,882 11,400 10,570 2,618 2,315 4,867 1,190 1,319 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17 * The abov
Slide 25: Business Model, Business Verticals, Systems + Culture, Future Agenda
25 BUSINESS MODEL BUSINESS VERTICALS SYSTEMS + CULTURE FUTURE AGENDA
Slide 26: Superior Technology Enabled Processes
SUPERIOR TECHNOLOGY ENABLED PROCESSES 26 Strong Technological linkages from… TRAINING & PERFORMANCE RECRUITMENT OPERATIONS DEVELOPMENT MEASUREMENT Technology initiatives are intended to increase productivity and operating efficiencies Investing in Technological upgrades to achieve our strategic obje
Slide 27: Leads to Accelerating Scale and Operating Leverage
LEADS TO ACCELERATING SCALE AND OPERATING LEVERAGE 27 Operational & Reporting Systems Tied in to the ERP System Automated Automated Recruitment Kiosk - Product Quality and Consistency Recruitment Kiosk ARK Enables enforcement of minimum quality standards and detailed product quality metrics Sales Ma
Slide 28: Superior Employee Culture Nurtured Over Decades
SUPERIOR EMPLOYEE CULTURE NURTURED OVER DECADES 28 Employee Welfare & Incentivization LISTEN TO EDUCATION REWARD, LOYALTY SECURE FUTURE HELP IN NEED EMPLOYEES SUPPORT & CONTRIBUTION Toll-free number for Group medical insurance SEWA Trust providing Reserved seats/ monetary ESOPs for security grievanc
Slide 29: Extensive Training Infrastructure Spread Across India
EXTENSIVE TRAINING INFRASTRUCTURE SPREAD ACROSS INDIA 29 Largest trained manpower supply chain in India with integrated capabilities in sourcing, training and deploying a large manpower base 18 training institutes in India, comprising state-of-the-art infrastructure providing upto-date courses that
Slide 30: Productivity and Operating Leverage on Back of Systems + Culture
PRODUCTIVITY AND OPERATING LEVERAGE ON BACK OF SYSTEMS + CULTURE 30 Businesswise – Break-up of Employees Total Employee Additions 169,163 1,69,163 1,51,917 9,453 1,12,653 1,00,421 86,792 41,833 110,928 6,949 Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Billing to Non-Billing Employee Ratio 39 36 30 25 26 Secu
Slide 31: Business Model, Business Verticals, Systems + Culture, Future Agenda
31 BUSINESS MODEL BUSINESS VERTICALS SYSTEMS + CULTURE FUTURE AGENDA
Slide 32: $25 bn Market Opportunity by 2020
$25 bn MARKET OPPORTUNITY BY 2020* 32 20.9% 5.4% 19.5% 17.8% Market Growth CAGR CAGR CAGR CAGR Rs. 1.16 lakh cr $ 2.46 Bn Rs. 27,200 cr Rs. 6,500 cr Market Size Security Security Facility Cash India Australia Management Logistics 1 • Lead industry with • Extensive use of • IFM program • ATM Portfoli
Slide 33: Improvement in Operating Margins
IMPROVEMENT IN OPERATING MARGINS 33 Change in Business Mix High Margin India Business is growing at a faster pace Increased contribution of Revenue from Facility Management Australia share of Revenues to come down over time Leverage Pan-India Footprint Branch expansion to be measured Leverage signif
Slide 34: Successful Acquisitions Strategy Will Continue
SUCCESSFUL ACQUISITIONS STRATEGY WILL CONTINUE 34 Rich Experience in Inorganic Growth Filtering Criteria for Inorganic Growth Benefits of Inorganic Growth Inorganic Growth by way of Filter Criteria to Target New Segments Inorganic Growth provides us with 1 5 Acquisitions 4 JV’s / Partnership 2 Large
Slide 35: Listing: Cash Currency for Growth
LISTING: CASH CURRENCY FOR GROWTH 35 Shareholding Pattern (Dec’17) Mutual Funds, 4.8% FPI, 5.7% Promoter Bodies Group, 75.5% Corporate, 1.4% Others, 12.6% Investors with Listing Ceremony of SIS ~2% Holding Successful listing on stock exchanges Provided exits to 2 private equity and IPO of investors
Slide 36: Ready for Inorganic Growth
READY FOR INORGANIC GROWTH 36 India Australia Revised Credit Rating • Discussions ongoing • AUD 120 Mn Credit rating enhanced by ICRA by two for NCD/ NBFC/ Senior revolving A+ notches from A- to A+ secured line of upto acquisition line Reduced cost of borrowing Rs400 cr • <6.5% all in cost Ability t
Slide 37: Key Management Personnel
37 Key Management Personnel
Slide 38: Management Committee
MANAGEMENT COMMITTEE 38 Mr. Rituraj Kishore Sinha Mr. Uday Singh Mr. Arvind Prasad Mr. Devesh Desai Mr. Vamshidhar Mr. Dhiraj Singh Mr. Mike McKinnon Mr. Brajesh Kumar Mr. Tapash Chaudhuri Guthikonda
Slide 39: Financial Performance
ve. Financial aalg), Performance
Slide 40: Performance Metrics
PERFORMANCE METRICS 40 REVENUE (Rs. in Crs.) EBITDA (Rs. In Crs.) PAT (Rs. In Crs.) 4,567 223 91 +12% +15% 3,836 +16% 74 3,551 171 160 65 3,098 149 54 49 2,644 126 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 * The above consolidated financial information is based on th
Slide 41: Return Ratios
RETURN RATIOS 41 NET DEBT/EQUITY (X) ROACE (%) CASH CONVERSION (%) 38 54 0.57 52 45 29 43 42 25 25 0.22 0.18 FY13 FY14 FY15 FY16 FY17 -0.13 -0.13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Strong Balance Sheet to Disciplined Capital Allocation with focus support future growth on better returns on
Slide 42: Annual Profit & Loss Statement
ANNUAL PROFIT & LOSS STATEMENT 42 Particulars (Rs. In crores) FY17 FY16 Y-o-Y Revenue from operations 4,567 3,837 19% Direct Expenses 16 11 Employee Expenses 3,788 3,116 Other expenses 540 539 EBITDA 223 171 31% EBITDA (%) 4.9% 4.4% Depreciation and amortisation expense 46 43 EBIT 177 128 39% EBIT (
Slide 43: Annual Balance Sheet Statement
ANNUAL BALANCE SHEET STATEMENT 43 Particulars (Rs. In crores) March 31, 2017 March 31, 2016 Particulars (Rs. In crores) March 31, 2017 March 31, 2016 Shareholders' funds 543 449 Non current assets 550 383 Fixed assets Share capital 69 6 Tangible assets 160 1,325 Reserves and surplus 474 443 Intangib
Slide 44: Results Highlights – 9M FY18
RESULTS HIGHLIGHTS – 9M FY18 44 4,241 cr 225 cr 127 cr Rs18.1 REVENUES EBITDA PAT EPS EPS 34.7% 48% 145% 132 % YoY YoY YoY YoY PAT margin increase from ROCE at 24.5% and RONW at Interim dividend of Rs2/ sh 1.6% to 3.0% 24.9% announced Market leader across three attractive business services segments
Slide 45: Results by Business Line – 9M FY18
RESULTS BY BUSINESS LINE – 9M FY18 45 +38.5% +59.2% +24.2% +19.8% 1574 91.2 111 2178 1137 1754 76 70 Security Security - India - Australia 9M FY17 9M FY18 9M FY17 9M FY18 9M FY17 9M FY18 9M FY17 9M FY18 Revenues EBITDA Revenues EBITDA +89.4% +244.4% +2% +504% 489 23.5 2.4 230 258 6.8 226 0.4 Facilit
Slide 46: Financial Statements
FINANCIAL STATEMENTS 46 Rs. In crs Income Statement Balance Sheet Income statement Particulars Balance sheet Particulars Q3 FY18 Q3 FY17 Y-o-Y 9M FY18 9M FY17 Y-o-Y 31 Dec 2017 31 Mar 2017 (Rs. In crores) (Rs. In crores) Revenue from operations 1,537.7 1,137.6 35.2% 4,241.2 3,149.1 34.7% Non current
Slide 47: Contact Us
47 CONTACT US CIN: L75230BR1985PLC002083 CIN: U74140MH2010PTC204285 Mr. Vamshidhar Guthikonda, Mr. Pankaj Chhaochharia / Mr. Pratik R. Shah President, M&A & IR Email : pankaj.c@sgapl.net / pratik.shah@sgapl.net Email : vamshidhar@sisindia.com +91 79770 90417/ +91 97692 60769 www.sisindia.com www.sga
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