Hinduja Global Solutions Limited · NSE:HGS
Hinduja Global Solutions — Motilal Oswal Institutional Investor Conference 2020
41 slides from Hinduja Global Solutions's conference presentation, Sep 28, 2020
Slide 1: Exchange filing cover letter for investor conference
September 28, 2020 BSE Limited National Stock Exchange of India Ltd. Corporate Relation Dept. “Exchange Plaza”, P. J. Towers, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai 400 001. Mumbai - 400 051. Scrip Code : 532859 Symbol : HGS Dear Sirs, Sub: Investor Conference - September 28, 2020 T
Slide 2: Motilal Oswal Investor Conference Sept 28th 2020
Motilal Oswal Investor Conference Sept 28th 2020 | 1
Slide 3: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties
Slide 4: Quick Overview
CHGS Quick Overview
Slide 5: About the Company
About the Company HISTORY ▪ Part of the Hinduja Group, in the BPM business since 2000 ▪ HGS is in the business of inbound Voice & Non Voice (Transaction processing+ Digital) ▪ 53% of revenues from Healthcare , balance from Telecom & Media, Consumer, BFS ▪ Miniscule exposure travel and hospitality. ▪
Slide 6: Work@Home(TM) Solution Overview
Work@Home(TM) Solution Overview | 5
Slide 7: HGS Work@Home: Coping with Covid Crisis
HGS Work@ Home : Coping with Covid Crisis 3. IT enablement 5 Overall 1. IT Assets Deployment ▪ IT Help Desk Scaled up ▪ Clients extremely . happy with HGS ▪ Over 30,000 IT assets transported to ▪ Better than peers and captive sites employee homes in 3 weeks ▪ IT tool kits provided to employees ▪ Hig
Slide 8: HGS Work@Home Journey
HGS Work@ Home Journey 5. Evolving long term Strategy 1. Launched in 2016 3. COVID Key Milestones ▪ Almost all employees are working from home ▪ ~50% of . HGS workforce to Move ▪ 1,200+ agents in North to Work@Home, subject to America and 200+ Shared ▪ 5771 agents hired globally during (Apr-Aug 2020
Slide 9: Key Tenets to enable Work@Home
Key Tenets to enable Work @ Home Type of Work Technology Talent Real Estate ▪ Extent of process ▪ Digital tool penetration for ▪ Evaluate Workforce maturity Managing current Infra Standardization coaching and engaging and Best fit for Work@Home (Specially in offshore location) associates ▪ Operate @
Slide 10: Recruiting: Challenges and HGS Solutions
Recruiting : Challenges and HGS Solutions Challenges HGS Solutions 1 Connect with talent as Lockdown restricts resource ▪ Programmatic Job advertising: movement ▪ Partner with pioneer platform providers to source talent faster and primarily target the passive applicant with right competency using pr
Slide 11: Training: Challenges and HGS Solutions
Training : Challenges and HGS Solutions Challenges HGS Solutions ▪ Playbook for Work@Home training: • Macro level standard practices like tailored trainer profile, their selection and certification, content design, training ratios, etc. for virtual training 1 Similar Training Engagement level as in
Slide 12: Operations: Challenges and HGS Solutions
Operations : Challenges and HGS Solutions Challenges HGS Solutions ▪ Schedule Flexibility - 1 Managing team productivity and performance ▪ Developed the flexibility of Work@Home scheduling, allows agents to arrange their own schedules. ▪ Develop Virtual community: Connect amongst the virtual workfor
Slide 13: IT Infrastructure & Data Security: Challenges & HGS Solutions
IT Infrastructure & Data Security : Challenges & HGS Solutions Challenges HGS Solutions ▪ Lockdown End point: 1 Securing Work@Home devices from cybersecurity ▪ Use VDI environment to Secure data connection with 2FA implemented. threats Encrypted data security and restricted access to official device
Slide 14: Employee Enablement: Challenges & HGS Solutions
Employee Enablement: Challenges & HGS Solutions Challenges HGS Solutions ▪ Enabling guidelines and Policies: Work@Home power & connectivity • Ergonomics 1 • InfoSec • Connectivity tools – dongles. hotspots … • Tech Assets repair Work@Home Health & Wellness 2 ▪ Employee Assistance Program: HGS provid
Slide 15: HGS Overview
CHGS HGS Overview
Slide 16: HGS Core Capabilities
HGS Core Capabilities Analytics Customer Experience Customer Marketing Digital Enablement Assessment Experience and Digital Strategy Enablement Customer Experience Services Services Social Media Strategy Engagement Digital Experience Digital Marketing Strategy Customer Interaction Transformation Voi
Slide 17: The Global BPM Market
The Global BPM Market… Global BPM Spending ($Bn) Traditional BPM market dominates the BPM market Global BPM Services Forecast ($Bn) 188.5 197.3 206.7 161.2 172.2 180.1 62.0 46.9 2017 2018 2019 2020 2021 2022 144.7 125.2 Source: Gartner Service line Forecast 2018 Q1 2018 2022 Traditional BPO BPaaS |
Slide 18: Healthcare Practice Overview
Healthcare Practice Overview | 17
Slide 19: HGS Healthcare Journey
HGS Healthcare Journey 2015-2018 Acquisitions Colibrium – Sales and Enrollment Platform 2003 2008-2011 Axis Point Health - Population Health Solutions Product Build Workers Comp Enrolment Element Solutions – Digital Solutions Payment Integrity Geo expansion (Philippines, Transformative US, Jamaica)
Slide 20: HGS Healthcare Vertical – Financial Performance
HGS Healthcare Vertical – Financial Performance Revenue (INR Mn) As at 31st March 2020 20+ Years Growth in Cost Shift to Customer Government Alpha Value Experience Programs Automation 5 Delivery Geos Wearables and 28,029 Remote 25,144 Healthcare Monitoring Blockchain 18,932 Business Model 46 Clients
Slide 21: HGS Recognized as a Leading Partner in Healthcare Payer
HGS Recognized as a Leading Partner in Healthcare Payer, Workers Compensation Gaining Credibility ▪ The prestigious NCQA Accreditation for Population ▪ NCQA Accreditation for Case Management assures Health and Disease Management Programs industry best practices implementation for clinical deployed f
Slide 22: CES - Innovating in Core Customer Service
CES - Innovating in Core Customer Service | 21
Slide 23: Offerings
Offerings E-Care Largest investment in innovation, Digi, Social, RPA, largest CAGR Bots, machine M learning a r Target existing users in Classic Care g champion-challenger sales Traditional voice, chat, email i n s Shortest sales cycle Brilliant at Basics (retain or more of NPS, KPIs, guarantees, wo
Slide 24: HGS Consumer Journey Framework Solves Client Problems
HGS Consumer Journey Framework Solves Client Problems Educate buyers to increase client revenue and improve share of buyer wallet CUSTOMER STAGES Returns/ Awareness Research Buy Use Service Retention Warranty Acquire Support Retain SOLUTION HGS Engage Buy Bill Care Repair Retain “Attract new “Increa
Slide 25: Differentiating Thought Leadership in Social Care
Differentiating Thought Leadership in Social Care “HGS has developed an industry-leading social media and employee recruitment model. The company has built a world-class talent profile for hiring the agents best suited for social media work. The profile and recruitment model are both clear competiti
Slide 26: Non voice revenues are growing, 38.8% of Total Revenues
Non voice revenues are growing , account of 38.8% of Total Revenues Channel Mix Digital CRM Transaction processing Voice CRM 73.7% 72.7% 72.7% 67.8% 63.6% 61.3% 28.1% 29.7% 23.4% 23.8% 23.8% 25.0% 7.2% 8.3% 9.1% 2.9% 3.5% 3.5% FY 16 FY 17 FY 18 FY 19 FY 20 Q1 FY 21 HGS Non-voice revenues have grown
Slide 27: Financial Overview
CHGS Financial Overview
Slide 28: Q1 FY21 Revenue Growth
Q1 FY 21 Revenue Growth Q1 FY 20 to Q1 FY 21 Growth (In Rs Mn) Revenue drop of (4.2)% : Forex Impact 7.4%, Organic Growth 0.3% , Inorganic De-Growth (5.6)%, Avis Backend (6.3)% Revenue Growth of 8.7% : Forex Impact 7.8%, Organic Growth 1.0% (6.3%) 7.8% 12,905 (5.6%) 0.9% 12,359 11,366 | 27
Slide 29: HGS Performance: Q1 FY 2020 vs Q1 FY 2021
HGS Performance: Q1 FY 2020 vs Q1 FY 2021 In INR (Mn) In INR (Mn) In INR (Mn) In INR (Mn) ₹ 492 ₹ ₹ ₹ 755 12,905 ₹ 1,496 ₹ ₹ 568 ₹ 405 12,359 1,458 Q1 FY 20 Q1 FY 21 Q1 FY 20 Q1 FY 21 Q1 FY 20 Q1 FY 21 Q1 FY 20 Q1 FY 21 REVENUES EBITDA PBT PAT | 28
Slide 30: Free Cash Flow to EBITDA Conversion: Sharp improvement
Free Cash Flow to EBITDA Conversion: Sharp improvement CAPEX (in INR Mn) DSO (In Days) 1,327 1,940 1,176 349 75 83 69 76 FY 18 FY 19 FY 20 Q1 FY 21* FY 18 FY 19 FY 20 Q1 FY 21 *Q1 FY 21 Capex includes Rs 43 mn Covid-19 related Capex Fig. in INR Mn EBITDA FCF/EBITDA (%) 112% 60% 47% 2% 4,061 4,411 7,
Slide 31: Debt & Cash Details
Debt & Cash Details Figs in INR Mn Gross Bank Debt Cash & Cash Equivalent Net Bank Debt/(Cash) 2,678 734 167 (629) 5,854 5,687 5,911 3,232 6,042 5,308 5,777 6,406 FY 18 FY 19 FY 20 Q1 FY 21 | 30
Slide 32: Debt of Rs 5,777 mn: 53% are Term Loans
Debt of Rs 5,777 mn: 53 % are Term Loans Consolidated Debt description by Type Consolidated Debt description by Categories Total MCLR Linked loans, 0.03% Total Fixed Interest Loans, 23% Total Term Total USD LIBOR Loans, 28% Linked loans, 48% External Total Working Commercial Loan Capital Loans, (Fix
Slide 33: Forward Cover
Forward Cover Forward Cover: USD-INR Forward Cover (In USD) FC Rate 84.84 81.37 77.25 73.80 96.0 75.0 38.5 7.5 FY 21 FY 22 FY 23 FY 24 | 32
Slide 34: Summary Financial Profile – As at 30th June 2020
Summary Financial Profile – As at 30th June 2020 ➢ P/E calculated as per CMP of Rs 700 (25th Sept 2020) ➢ USD/INR exchange rate od 75.52 ➢ Total Debt includes foreign currency debt taken at applicable exchange rates | 33
Slide 35: HGS Revenue Profile: FY16 to Q1 FY21
HGS Revenue Profile: FY 16 to Q1 FY 21 | 34
Slide 36: Revenue Composition
Revenue Composition Revenue by Verticals Offshore/Near-shore to Onshore Telecom & Technology Consumer Products Healthcare BFS Others 11.7% 9.9% 10.0% 9.5% 11.3% 9.9% 6.9% 7.3% 8.0% 8.0% 8.8% 8.4% 41.8% 45.9% 49.2% 52.2% 53.5% 56.1% 13.2% 13.7% 12.9% 12.1% 10.6% 11.0% 26.5% 23.2% 19.9% 18.2% 15.7% 14
Slide 37: Revenue Composition
Revenue Composition Revenue by Delivery Revenue by Currency India Philippines USA UK Canada Jamaica INR USD GBP CAD 4.7% 4.3% 4.9% 6.0% 12.7% 10.6% 10.2% 11.7% 11.0% 11.7% 12.2% 10.3% 9.9% 11.7% 11.0% 11.7% 8.6% 6.9% 5.9% 6.1% 9.5% 8.6% 6.9% 5.9% 5.6% 10.5% 10.5% 7.6% 25.2% 25.1% 26.8% 32.8% 32.9% 3
Slide 38: Other Key Metrics
Other Key Metrics OPEX seats & Owned Seats Revenue & EBITDA Per Employee Revenue Per Employee Per Quarter (INR EBITDA Per Employee Per Quarter Owned Seats Seat for Opex 000s) (INR 000s) 38.3% 37.8% 348 57 305 22.3% 23.4% 24.0% 247 9,443 10,238 10,726 35 13,479 13,209 17 32,968 33,577 33,973 21,738 2
Slide 39: Peer Analysis
CHGS Peer Analysis
Slide 40: Peer Analysis
Peer Analysis • Revenue, EBITDA & PAT based on latest data available • USD/INR exchange rate used – QE June 2019: 69.39 & QE June 2020: 75.42 | 39
Slide 41: Thank you
Thank you www.TeamHGS.com
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