Avenuesai Ltd · NSE:CCAVENUE
Avenuesai — Infibeam Avenues — Q1 FY2020 Earnings Presentation
34 slides from Avenuesai's earnings presentation, Aug 9, 2019
Slide 1: Cover letter to stock exchanges
FIBE ENUES August 09, 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: Investors Pres
Slide 2: 1Q FY20 – Earnings
Payments | Infrastructure | Platforms 1Q FY20 – Earnings 9 – August – 2019
Slide 3: Disclaimer
INFIBEAM AVENUES LIMITED 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 op
Slide 4: Agenda
INFIBEAM AVENUES LIMITED Agenda 1 Business Overview & Review 2 Financial Performance 3 Outlook 4 Value & Investment Thesis 3
Slide 5: Business Overview & Review
BUSINESS OVERVIEW & REVIEW Payments | Infrastructure | Platforms
Slide 6: Business Overview – Strong Business Model
INFIBEAM AVENUES LIMITED Business Overview – Strong Business Model Company offers digital technology platforms for businesses and governments to execute e-commerce transactions safely and securely Payments Infrastructure Platforms • Online payment gateway (PG) • Tier III designed data centers • Clou
Slide 7: 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 c.1,000,000 c.`494 bn c.`173 bn Rank 2nd Merchants Payments Processed Procurement on In India vs. in FY19 GeM in FY19
Slide 8: Awards and Recognition
INFIBEAM AVENUES LIMITED Awards and Recognition Ranked 418 in FT1000 High Growth Companies Asia-Pac 2018 Most Innovative Online Payment Service Provider Financial Times and Statista Awards 2018 Global Business Outlook Payments Entrepreneur of the Year Best Digital Payment Facilitator 7th Payments &
Slide 9: Opportunity and Outlook
PAYMENT INDUSTRY Opportunity and Outlook Digital usage in India : All set for exponential growth (Source: McKinsey Report, March 2019) $500 bn1 → $1 tn4 Projected digital payments market size from 2020 to 2023 37% $224 bn 220 300 mn 2x 700 mn 475 mn `50 cr Digital P2M market Cashless Active monthly
Slide 10: Opportunity and Outlook
PAYMENT INDUSTRY Opportunity and Outlook Projected P2M sub-segments share in 2020 (Source: BCG Google study, Digital Payments India 2020) We believe, the P2M $224 segment has the billon potential to more than double by FY 2025 to $500 bn due to strong tailwinds Source: BCG analysis 9
Slide 11: Opportunity and Outlook – Mobile Banking
PAYMENT INDUSTRY Opportunity and Outlook Mobile banking has increased exponentially in India and we expect high growth momentum to continue until 2025 Mobile Banking – RBI Payment System Indicators Volume mn Value INR bn Val / txn INR At the current run-rate 28x growth since 2015 28,745 mobile banki
Slide 12: Comprehensive Online Payment Solution
PAYMENT SOLUTION Comprehensive Online Payment Solution This business operates through our flagship brand—CCAvenue—a PCI DSS 3.2.1 compliant payment gateway platform We offer merchants nearly 250 payment options connecting 57 Indian banks on a real-time basis to accept payments online Payment W
Slide 13: Payment Solution Key Strengths
PAYMENT SOLUTION Key Strengths 70% 240+ of India’s Payment >100 mn web merchants use Annual Transactions Options CCAvenue PG 27 18 c.`1.6 bn Currencies International and Domestic Payments daily supported for Languages processed payment 12
Slide 14: Among leading online payment solution providers in India
PAYMENT SOLUTION Among leading online payment solution providers in India As a pure-play online Payment Gateway provider we rank, Successful Payments Processed (` crore) o 2nd in India in terms of net profit >US$ 7 billion Payments Processed: o 3rd in revenue market share FY16-19 CAGR: c.100% 49,4
Slide 15: International expansion gives tremendous growth opportunity
1 million AED 1.2 bn 2nd* FY19 Annual FY19 Payments in the UAE transactions processed c.75% YoY growth in payments processed in Q1 FY20 International expansion gives tremendous growth opportunity
Slide 16: Strong portfolio of marquee brands in India and UAE
PAYMENT SOLUTION – KEY MERCHANTS Strong portfolio of marquee brands in India and UAE We work with most of the top brands in India & the UAE India UAE Podar Education … and over 100,000 more … and over 500 more Education sector – 30% QoQ growth 15
Slide 17: Interoperable bill payment solution built on BBPS infrastructure
BILL PAYMENTS PLATFORM Interoperable bill payment solution built on BBPS infrastructure India has: Bill Payment by Value in INR Bill Payment by Volumes o More than 3.61 million PNG connections o More than 63 million active DTH connections o More than 1200 mobile mobile connections (Including prepa
Slide 18: Interoperable bill payment solution built on BBPS infrastructure
BILL PAYMENTS PLATFORM Interoperable bill payment solution built on 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 Payments services – online and of
Slide 19: Fragmented market and digital adoption driving strong growth
HOSPITALITY SOLUTION Fragmented market and digital adoption driving strong growth ResAvenue is an integrated platform & payment solution for hotel industry offers a complete Central Reservation System (CRS) for hotel reservation and hotel inventory distribution across various online sales channe
Slide 20: Strong brands driving strong online growth
HOSPITALITY SOLUTION Strong brands driving strong online growth 1000+ Hotels Live with ResAvenue, integrated with major Online Travel Agents (OTAs) 19
Slide 21: High Growth Opportunities in Digital Payments
INVESTMENTS High Growth Opportunities in Digital Payments Avenues Payments India Private Limited Ready platforms to banks for cross-border payments through its two main brands, namely remitguru and remitonline White labelled platform for banks with blockchain technology to launch cross-border pa
Slide 22: High Growth Opportunities in Digital Payments – Q1 updates
INVESTMENTS High Growth Opportunities in Digital Payments – Q1 updates Avenues Payments Go Payments • Revenue on track to double in FY20 • 5000 agents on-board from 2500 in Mar’19 • US$1 bn remittance flow in 1Q • Monthly GTV increased 3x in the month of • 12 financial institutions on-board Jun’19 c
Slide 23: A hosted e-commerce platform built for large scale
E-COMMERCE PLATFORM, FOR LARGE ENTERPRISES A hosted e-commerce platform built for large scale Through this business, we provide cloud-based, end-to-end software as a service (SaaS) platforms that allow our corporate clients to transact online, manage the back-end (orders, Logo inventory and logist
Slide 24: GeM slated to become India's largest online marketplace
E-COMMERCE PLATFORM, FOR THE GOVERNMENT GeM slated to become India’s largest online marketplace End-to-end online marketplace for products & services for Annual Procurements on GeM (` crore) Central & State Govt. departments, UTs and PSUs (c. $100 bn) * 7,00,000 Provides tools of e-bidding, reve
Slide 25: GeM slated to become India's largest online marketplace
E-COMMERCE PLATFORM, FOR THE GOVERNMENT GeM slated to become India’s largest online marketplace GeM Quality Report – Apr-Jun 2019 2nd >25% c.55% c.1.5 days >83% 92.7% highest number of payments made savings generated average time for average product seller profiles sellers on the portal; within 10 d
Slide 26: Will host high compute mission critical applications
INFRASTRUCTURE (DATA CENTER) Will host high compute mission critical applications Tier 3 Design Certification from Uptime Institute Received the Tier 3 Design Certification from Uptime Institute for Data Center at GIFT City, Gandhinagar The Company will be able to host high compute mission criti
Slide 27: Financial Performance
FINANCIAL PERFORMANCE
Slide 28: Strong financial performance
CONSOLIDATED PERFORMANCE SNAPSHOT Strong financial performance Consistently strong financial performance by the company; improving shareholder value 22.3% 29.8% 1263 126 18.8% 1949 307 288 881 1874 553 16.8% 2551 435 8.1% 11591 830 87 8393 12.0% 1855 * 274 46 4413 2882 3370 -101 1.6% FY15 FY16 FY17
Slide 29: Outlook
OUTLOOK
Slide 30: Strong & Positive
OUTLOOK Strong & Positive We expect the growth momentum to continue in FY 2020 on account of continuous growth of digital payments in India, and growth in our International markets We expect to; BUILD Digital Payments Sustainable long term o grow merchant base, grow payments processed to `750-10
Slide 31: Value & Investment Thesis
VALUE & INVESTMENT THESIS
Slide 32: Competitors in India and Valuation Comparison
PAYMENT INDUSTRY Competitors in India and Valuation Comparison Infibeam Avenues Peer 1 * Peer 2 * International Peer # Ltd. $ Payment processed ` 494 bn c.` 1000 bn c.` 300 bn >US$ 175 bn Valuation (EV) ` 25541 mn ` 175000 mn ` 30000 mn US$ 21 bn EV / Revenue (x) 2.2 30 39 12 ✓ IAL generated strong
Slide 33: Investment Thesis
INVESTMENT THESIS Consistently strong financial performance by the Company Focus on profitability and generation of free cash flow to create wealth for shareholders Strong digital payments growth in India with strong tailwinds Integrated portfolio offerings to merchants Strong Business Model; transa
Slide 34: Thank You
Thank You Investor Relations Purvesh Parekh purvesh.parekh@ia.ooo +91 9930554588 Visit us at: www.ia.ooo | www.ccavenue.ooo