Slide 1: Corporate Presentation
Corporate Presentation MPS Limited August 2014
Slide 2: Safe Harbor
Safe Harbor This presentation and the discussion that follows may contain certain words or phrases that are forward – looking statements, based on current expectations of the management of MPS Limited. These forward-looking statements are subject to risks and uncertainties that may change at any tim
Slide 3: Agenda
Agenda Business Overview 04-11 Business Units 12-20 Industry outlook & Growth Strategy 21-23 Operating and financial performance 24-27 Annexures 28-32 www.adi-mps.com 3
Slide 4: Global pre-publishing services provider
Global pre-publishing services provider In a profitable growth phase Established in 1971 by Macmillan as a back- Acquired from Macmillan by ADI in 2011 office, today emerged as leading Integrated Turned PAT positive in FY12 with FY14 PAT 4X of FY12 pre-publishing house FY14 ROCE and ROE at 68.5
Slide 5: Business transformation under new management
Business transformation under new management 2011 to 2013: Cost reduction measures and consolidation of 2000-03- Data conversion unit & facilities. Company turned software services unit set up positive at EBITDA and PAT 2004- MPS Technologies formed level 2005 & 06- Acquired Charon Tech Ac
Slide 6: Serving global publishers
Serving global publishers Major publishers are MPS clients www.adi-mps.com 6
Slide 7: Diverse publishing customer base
Diverse publishing customer base Early Learning, Pre-K, and • Education - Core vendor to multiple publishers and most-loved partner. K-12 School Renowned for domestic and offshore project management, and ability Higher Education to deliver on complex projects across a wide variety of disciplines. Sc
Slide 8: With integrated services
With integrated services Traditional Services Digital Services Support Services Journals Digital Services Fulfillment & BPO Services End-to-end print and digital Content conversion team for Customer support and fulfillment publishing services for STM and books, journals, directories, and
Slide 9: And unique technology platform
And unique technology platform Driven seamlessly by DigiCore • Online smart editing with • On-the-fly, automated page underlying XML proof • Rich editorial • Customized templates for functionalities layout • Intuitive context-based • Proof, POD, and eBook editing PDF generation • Smart navigation •
Slide 10: Well-diversified revenue mix
Well-diversified revenue mix Standalone financials Well diversified revenue mix Diversified across geographies Segmental Revenue Break-Up (FY14) North America Europe ROW 4% 4% 3% LNMS Ad Studio MPST4% 3% 10% Journals 45% 46% 47% Fulfilment 34% 9% Digital Services 51% 51% 50% 12% Books 27% FY12 (15 M
Slide 11: Locations
Locations Portland Facility Florida Facility 6 Facilities in India 6 production facilities 2 On-shore offices for editorial content development, design and domestic project management, sales & marketing ~ 2,737 People www.adi-mps.com 11
Slide 12: Business Units
Business Units www.adi-mps.com 12
Slide 13: Journals
Journals Largest contributor to revenue, 800+ people across facilities, 1mn pages of journals p.a. • End-to-End journal production management, including managing publishers CMS/PTS • Vast and experienced pool of offshore and onshore editorial resources across multiple disciplines • Automated and eff
Slide 14: Books
Books 2nd largest contributor to revenue, 650+ people across facilities, 1mn pages of books p.a. Over 30 years as a vendor for educational publishers Extensive experience in print and electronic media Composition (XML and non-XML workflows) Art Interior and cover design Editorial Service
Slide 15: MPS Technologies
MPS Technologies Custom and Plug-n-Play Technology Platforms for Publishers MPST Platforms Areas of Expertise: Workflow Management Solutions Title Management Solutions Business Rules Management Solutions Repository Consolidation Integration, API Development Analytics Content Hosting
Slide 16: Digital Services
Digital Services Third largest contributor to MPS revenue, 350+ people across facilities Convert from any input to multiple output formats High degree of automation to reduce manual Data Capture Web Production intervention. Automation tools: • XML Automation Tool • QC Tool that captures inconsis
Slide 17: Learning and New Media Services
Learning and New Media Services Powering engaging and interactive learning products for educational publishers Development Services Content & Design Related & Ancillary Services Services Web & Mobile ADA Compliance (508 Test / Assessment Standards, Closed Applications Design & Production Captioning,
Slide 18: Database and Directory Services
Database and Directory Services Design and composition services for database and directory publishers Yellow Pages Integrated solutions for data management, directory management, creative & content delivery services Smartphone & Tablets Ad designing services for Online Storefront mobile devices incl
Slide 19: MPS 360 Customer Services
MPS 360 Customer Services Leading in customer engagement for publishers Order Management & Customer Financial Management Data Research and Aggregation Support Credit control functions Scan and extract from large Subscription order management volumes of data available on the Banking fun
Slide 20: MPS North America
MPS North America MPS North America acquires business of Element LLC to enter school publishing market in August 2013 Foothold in full service editorial, design and production services to educational publishing – Pre K to Std XII Enhance MPS’s presence in US educational publishing MPSNA market
Slide 21: Publishing Industry Outlook & Growth Strategy
Publishing Industry Outlook & Growth Strategy www.adi-mps.com 21
Slide 22: Digital drives growth
Digital drives growth Robust growth ahead in Digital publishing • Share of digital revenues in global book publishing was 12.3% in 2013 and is expected to reach 25.8% in 2018. (PwC) Global Digital Book Publishing Spend ($bn) Next wave of outsourcing has begun • Publishers are consolidating suppl
Slide 23: Growth Strategy: Organic + Inorganic
Growth Strategy: Organic + Inorganic Organic Growth Inorganic Growth Strategy Strategy Prospective Market Expansion New client addition via • New geographies • New clients acquisitions Clients Existing Penetration • Cross selling Service Expansion • Increase volumes • Through acquisition Existing Ex
Slide 24: Operational & Financial Review
Operational & Financial Review www.adi-mps.com 24
Slide 25: On an upswing under new management
On an upswing under new management In Rs Million Robust growth in Net Revenues 54% YoY increase in FY14 EBITDA 2,500 EBITDA EBITDA % 800 40% 2,000 14% CAGR 33.5% 600 26.2% 30% 1,500 1,000 400 20% 1,973 661 1,528 1,640 12.1% 200 429 10% 500 186 - - 0% FY12* FY13 FY'14(C) FY12* FY13 FY'14(C) 32% YoY i
Slide 26: Turnaround led by cost rationalization
Turnaround led by cost rationalization In Rs Million Decline in costs under ADI ownership Healthy revenue per employee Employee cost/ Sales Other costs/ Sales Number of employees 55.9% Revenue per employee (Rs Mn) 47.0% 4,000 0.7 0.7 0.7 0.8 42.9% 30.9% 3,000 0.6 26.6% 2,737 23.0% 2,000 2,143 2,331
Slide 27: Stronger balance-sheet, increasing returns
Stronger balance-sheet, increasing returns Standalone financials, In Rs Million Increasing networth, controlled leverage Improving efficiencies (ratio) Networth D/E NFA Turnover 1,000 917 0.2 10.0 826 800 703 8.0 600 6.0 0.07 400 0.05 8.6 0.04 4.0 6.8 200 2.0 4.9 - 0.0 - FY12* FY13 FY'14(C) FY12* FY
Slide 28: Annexures
Annexures www.adi-mps.com 28
Slide 29: Profit & Loss A/c
Profit & Loss A/c Consolidated Particulars (Rs mn) FY12 (15 Months) FY13 FY'14 FY14 Net sales 1,910.1 1,640.0 1,882.9 1,972.8 Other Operating Income Total Income 1,910.1 1,640.0 1,882.9 1,972.8 Total Expenditure 1,678.1 1,210.8 1,203.9 1,311.4 (Increase) / Decrease In Stock In Trade & WIP 20.0 3.5 1
Slide 30: Balance Sheet
Balance Sheet Standalone Consolidated Particulars (INR mn) 15M 12M 12M 12M 31-Mar-12 31-Mar-13 31-Mar-14 31 March 2014 Equity & Liabilities Total shareholders funds 703.1 826.3 926.3 917.3 Long-term borrowings 5.1 1.2 0.2 0.2 Other long-term liabilities 13.3 0.9 0.7 0.7 Non-current liabilities 18.3
Slide 31: Shareholding & Organizational Structure
Shareholding & Organizational Structure As on March 31, 2014 Outstanding shares – 16.82 mn Pubic & Others 22% MPS Ltd Bodies, Corporate 3% 100% Ownership MPS North America LLC Promoter 75% www.adi-mps.com 31
Slide 32: About MPS Ltd
About MPS Ltd: Over the 42 years of its dominant presence, MPS has evolved to be a trusted partner for publishers at every stage of the publishing process. Our service portfolio includes print and digital publishing services, transformation of content for usability across multiple platforms, custom