Sis Limited · NSE:SIS
Sis — Security and Intelligence Services (India) — Investor Presentation (November 2017)
49 slides from Sis's investor presentation, November 2017
Slide 1: Security and Intelligence Services (India) Ltd Investor Presentation
Security and Intelligence Services (India) Ltd INVESTOR PRESENTATION November 2017
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 11,500+ Locations 5,700+ Trained Guards Strategic Alliances with 15 Min Response Time #1 reputed OEM’s Fa
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 Exclusive license Cleaning and repair related agreement with Facility operation and maintenance services ServiceMaster since March 2008 Pest Control & Termite solutions + Industries Covered – Facility Management Industrial and manufacturing IT/ITeS Re
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 (ARK, PMP)
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 +75,631 162,423 162,423 10,210 112,653 100,421 86,792 Mar-14 Mar-15 Mar-16 Sep-17 40,457 Billing to Non-Billing Employee Ratio 105,117 6,639 37 30 25 26 Security Security
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 (Sept’17) Mutual Funds, 4.07% FPI, 5.33% Promoter Bodies Group, Corporate, 75.51% 1.96% Others, 13.13% Investors with Listing Ceremony of SIS ~2% Holding Successful listing on stock Provided exits to 2 private equity investors with multifold
Slide 36: Key Management Personnel
36 Key Management Personnel
Slide 37: Experienced Board
EXPERIENCED BOARD 37 MR. RK SINHA MS. RITA KISHORE SINHA MR. RITURAJ SINHA Chairman Director Group Managing Director Over 30 years of experience in the Company. At Associated with the Company since March 31, 1995 Associated with the Company since July 2002 as the present, he is a Member of Parliamen
Slide 38: Experienced Board
EXPERIENCED BOARD 38 DR. AJOY KUMAR MS. DEVDAS APTE MR. AP VERMA Independent Director Independent Director Independent Director Over 28 years of experience and is currently Holds a bachelor’s degree in arts from Nagpur University Holds a master’s degree in arts (political science) associated with JS
Slide 39: Management Committee
MANAGEMENT COMMITTEE 39 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 40: Financial Performance
ve. Financial alle), Performance
Slide 41: Performance Metrics
PERFORMANCE METRICS 41 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 42: Return Ratios
RETURN RATIOS 42 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 43: Annual Profit & Loss Statement
ANNUAL PROFIT & LOSS STATEMENT 43 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 44: Annual Balance Sheet Statement
ANNUAL BALANCE SHEET STATEMENT 44 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 45: Results Update - H1FY18
RESULTS UPDATE - H1FY18 45 Revenues EBITDA PAT ROCE EPS 2,703 cr 141 cr 81 cr 28.3% Rs 11.6 34.4% 52.7% 170.7% 136 bps 159 % YoY YoY YoY YoY YoY Strong increase in EBITDA Net debt down from FM business 2.5X 20.8% organic growth* margin* from 4.6% to 5.2% 221 cr to 91 cr bigger* *YoY growth Market le
Slide 46: Results by Business Line - H1FY18
RESULTS BY BUSINESS LINE - H1FY18 46 Strong organic growth across all segments with margin improvement REVENUES EBITDA REVENUES EBITDA +37.8% +65.9% +19% +14.7% 1012 73 1,373 SECURITY - INDIA 735 SECURITY - AUSTRALIA 44 54 1,152 47 6.0% 7.2% 4.1% 4.1% H1FY17 H1FY18 H1FY17 H1FY18 H1FY17 H1FY18 H1FY17
Slide 47: Financial Statements
FINANCIAL STATEMENTS 47 159% increase in EPS; Balance Sheet recapitalised for growth Income Statement Balance Sheet Particulars Q2FY18 Q2FY17 Y-o-Y H1FY18 H1FY17 Y-o-Y Particulars 30 Sep 2017 31 Mar 2017 Revenue from operations 1,460.0 1,076.1 35.7% 2,703.5 2,011.6 34.4% Non current assets 1,060.7 6
Slide 48: Net Debt Movement
NET DEBT MOVEMENT 48 Rs in crs 350.0 17.6 300.0 66.6 250.0 200.0 200.0 150.0 256.6 34.8 100.0 55.4 44.1 9.3 50.0 91.4 - Net debt - 31 Mar SXP - debt CCD conversion Loan repayment Loan repayment Increase in term Increase in Change in cash Net debt - 30 Sep 2017 out of IPO out of own funds loans worki
Slide 49: Contact Us
49 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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