Cms Info Systems Ltd. · NSE:CMSINFO
Cms Info Systems — Q2/H1 FY23 Earnings Presentation
33 slides from Cms Info Systems's earnings presentation, Nov 1, 2022
Slide 1: Exchange filing cover letter under Regulation 30
CMSINFO/2211/003 November 1, 2022 To, BSE Limited National Stock Exchange of India Limited Listing Department, Listing Department, 1st Floor, PJ Towers, Exchange Plaza, C-1, Block-G, Dalal Street, Bandra Kurla Complex, Bandra(East), Fort, Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 543441 Symbol:
Slide 2: Q2/H1-FY23 Earnings Presentation
Q2/H1-FY23 Earnings Presentation India’s Leading Banking Logistics & Technology Services Provider 1
Slide 3: Company Overview
COMPANY OVERVIEW CMS. conrcctna commerce”
Slide 4: Leading Business Services Company Catering To BFSI & Retail Sector
Leading Business Services Company Catering To BFSI & Retail Sector Logistics Services Product Solutions Tech Outsourcing Services ATM Cash Retail Cash Cash in Bank Automation ATM Managed Card Mgmt. Software Remote Management Management Transit (CIT) Solutions Services Solutions Solutions Monitoring
Slide 5: Offering End-to-end One Stop Solutions
Offering End-to-end One Stop Solutions Banking Automation/ Key Business Verticals Financial Highlights Product Deployment (INR Mn) Cash Management • End-to-end ATM replenishment – inclusive of cash withdrawal, ATM replenishment, cash 15,897 13,832 27.91% evacuation and deposition for BNA/recyclers,
Slide 6: CMS' Presence Across The Cash Value Chain
CMS’ Presence Across The Cash Value Chain Embedded into the clients' systems and process while offering a wide range of services at different stages of the cash cycle 1 ATM 2 3 Branch 1 Cash-in-transit services to the banks that run currency chests 1 2 ATM cash management services to banks (on behal
Slide 7: Our Journey: Transforming into a Business Services Platform
Our Journey: Transforming into a Business Services Platform 450 CMS Timeline EBITDA* (Crs) Revenue: ₹ 1,590 Cr 400 EBITDA: ₹ 408 Cr 350 7x Revenue growth 300 8x EBITDA growth 250 200 150 Revenue: ₹ 216 Cr 100 EBITDA: ₹ 50 Cr 50 Restructure Growth Resilience Accelerated expansion 0 2008-09 2011-12 20
Slide 8: Highly Qualified Management With A Diverse Board And Strong Governance
Highly Qualified Management With A Diverse Board And Strong Governance Shyamala Gopinath Tapan Ray Ms. Manju Agarwal Krzysztof Jamroz Ex-Deputy Governor of MD & Group CEO of Gift City Executive Chairman at Roadrunner Experienced RBI Directors Sayali Karanjkar Jimmy Mahtani Ashish Agrawal Non-Executi
Slide 9: Leader In Cash Management Services In India
Leader In Cash Management Services In India ATM Cash Retail Cash Management Cash-in-Transit (CIT) and Management (RCM) Emerging Businesses 46% market share(1) 36% market share(1) 26% market share(1) 36% market share(1) 26% market share(1) Cash Management Revenue Cash Management EBIT & EBIT Margin (I
Slide 10: Route Based Logistics With Extensive Distribution Across India
Route Based Logistics With Extensive Distribution Across India Deep entrenchment to India’s hinterland, Logistical planning and Route productivity are fundamental to CMS’ successful track record Cash Management Operations Cycle 97% coverage pan-India including remote areas(3) 3 Cash 16K+ withdrawal
Slide 11: One Of The Few Integrated Players In India With A Strong Technology Edge
One Of The Few Integrated Players In India With A Strong Technology Edge Banking Automation Brown Label ATMs and AI based Remote Software Solutions Solutions Managed Services (BLA + MS) Monitoring Managed Services Revenue Managed Services EBIT & EBIT Margin (INR Mn) (INR Mn) 810 4,896 20.3% 635 612
Slide 12: The CMS Edge
The CMS Edge An integrated, tech-led pan India business platform serving India's cash eco-system Leadership position across most segments, backed by operation excellence and robust financials Longstanding customer relationships leading to increased business opportunities Multi-year recurring predict
Slide 13: India Is The World's 3rd Largest ATM Market With Significant Under-penetration
India Is The World’s 3rd Largest ATM Market With Significant Under- penetration In SURU(1) And Low Cash Velocity # of ATMs deployed (2020) # of ATMs per 100K population (2020) Velocity of cash remains relatively low (In ‘000s) (2020) Cash Velocity = ATM Withdrawal / CIC State/UT Penetration 625 123
Slide 14: Cash Transactions in India to grow at higher CAGR than previous years
Cash Transactions in India to grow at higher CAGR than previous years Consistent growth in Cash in Circulation… ….Leading To higher cash withdrawal transactions (INR Tn) (INR Tn) 42 38 GR 34 CA 47 13 % 43 31 28 38 24 33 33 33 21 29 29 18 25 24 17 22 14 13 15% 15% 14% 14% 14% 12% 11% 12% 10% 10% 9% F
Slide 15: Growth Drivers: Formalization, Higher Outsourcing
Growth Drivers: Formalization, Higher Outsourcing 1 2 Economy formalization, Consumption Growth – Increase in advanced Increase in Cash Wdls. and Process Outsourcing RCM market by Banks Outsourced organized retail points are expected to grow at a Outsourced ATMs are expected to grow at a 10% CAGR 12
Slide 16: Growth Drivers: Regulation, Banking Expansion & Consolidation
Growth Drivers: Regulation, Banking Expansion & Consolidation 3 4 5 Regulatory focus on Banking Refresh Market Consolidation Access, Quality and and Expansion (Shift to High Quality Safety Cycle Players) India Added 15k ATMs in last 15 India Cash Management Increase in ATM Interchange (2021) months
Slide 17: FY27 TAM: Opportunity of ~₹22,000 Crore
FY27 TAM: Opportunity of ~₹ 22,000 Crore CMS has continuously expanded its TAM CAGR** INR Crs 2.6x 22,000 Remote Monitoring 3,000 25% Solutions 11,620 Brown Label ATM 17% Deployment 2.8x 8,500 Banking Automation & 4,600 19% Software Services 4,570 3,000 Cash Management 1,650 7,900 19% Solutions 1,00
Slide 18: Regulatory Tailwind And Contract Refresh Cycle To Drive Volume And Pricing Growth
Regulatory Tailwind And Contract Refresh Cycle To Drive Volume And Pricing Growth Large PSB Contract Regulatory focus on ATM Formalization of the Indian Refresh and Expansion Infra, Compliances, economy cycle Financial inclusion • Preferred Asset Light model • RBI’s stricter compliance • Growth in o
Slide 19: Our Playbook
Our Playbook Market Leadership in Core Business Invest in Adjacencies and Tech to Expand TAM Focus on large & Drive innovation at complex projects to scale and attract deepen customer best talent engagement Create Long-term Establish right-to-win World class quality Accelerate Growth through end-to-
Slide 20: Q2/H1-FY23 Financial Overview
Q2/H1-FY23 FINANCIAL OVERVIEW
Slide 21: Q2/H1-FY23 Financial Highlights
Q2/H1-FY23 Financial Highlights Revenue EBITDA PAT (INR Mn) (INR Mn) (INR Mn) 27% 42% 40% 37% 4,717 1,342 82 Q2-FY23 725 3,721 96 1,556 942 528 986 25.3% 28.5% 14.2% 15.4% 3,079 2,639 Q2-FY22 Q2-FY23 Q2-FY22 Q2-FY23 Q2-FY22 Q2-FY23 Cash Mgmt. Managed Others EBITDA EBITDA Margin (%) Services PAT PAT
Slide 22: Q2/H1-FY23 Operational Highlights: Cash Management Business
Q2/H1-FY23 Operational Highlights: Cash Management Business Revenue EBIT INR Mn INR Mn Cash Management: Operational Highlights 23% • Cash management activities up +6% QoQ in Q2 17% Q2-FY23 3,242 despite slowdown in consumption, particularly in 2,764 806 rural India 656 • Currency handled in the quar
Slide 23: Q2/H1-FY23 Operational Highlights: Managed Services Business
Q2/H1-FY23 Operational Highlights: Managed Services Business Revenue EBIT INR Mn INR Mn Managed Services: Operational Highlights • Total orderbook expands to INR 2,800 Crore+ with Q2-FY23 58% 119% INR 600 Crore+ new wins in H1 1,556 316 • AI-based remote monitoring base crosses 18,500 986 sites in S
Slide 24: Quarterly Consolidated Financial Performance
Quarterly Consolidated Financial Performance Particulars (All figures in INR Mn) Q2-FY23 Q1-FY23 Q-o-Q Q2-FY22 Y-o-Y Operating Income 4,717 4,533 4.1% 3,721 26.8% Expenses 3,375 3,294 2.5% 2,779 21.4% Operating EBITDA 1,342 1,239 8.3% 942 42.5% Operating EBITDA Margins (%) 28.45% 27.33% 112 bps 25.3
Slide 25: Half Yearly Consolidated Financial Performance
Half Yearly Consolidated Financial Performance Particulars (All figures in INR Mn) H1-FY23 H1-FY22 Y-o-Y Operating Income 9,250 7,419 24.7% Expenses 6,668 5,632 18.4% Operating EBITDA 2,582 1,787 44.5% Operating EBITDA Margins (%) 27.91% 24.09% 382 bps Finance costs 95 71 33.8% Depreciation and amor
Slide 26: Historical Financial Overview
HISTORICAL FINANCIAL OVERVIEW
Slide 27: Historical Consolidated Income Statement
Historical Consolidated Income Statement Particulars (All figures in INR Mn) FY19 FY20 FY21 FY22 H1-FY23 Operating Income 11,462 13,832 13,061 15,897 9,250 Expenses 9,482 11,293 10,125 11,900 6,668 Operating EBITDA 1,980 2,539 2,936 3,997 2,582 Operating EBITDA Margins (%) 17.27% 18.36% 22.48% 25.14
Slide 28: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet (All figures in INR Mn) FY21 FY22 H1-FY23 (All figures in INR Mn) FY21 FY22 H1-FY23 Assets Equity share capital 1,480 1,531 1541 Non-current assets Other equity 8,365 11,030 12,434 Property, plant and equipment 1,897 3,470 4,393 Total equity attributable to 9,84
Slide 29: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement (All figures in INR Mn) FY21 FY22 H1-FY23 (All figures in INR Mn) FY21 FY22 H1-FY23 Cash flow from operating activities: Cash flow from investing activities Profit before tax 2,378 3,014 1,900 Proceeds from sale of property, plant and Adjustments to reconc
Slide 30: Strong Growth Track Record And Resilience During Covid-19 Period
Strong Growth Track Record And Resilience During Covid-19 Period Revenue EBITDA PAT(1) (INR Mn) (INR Mn) (INR Mn) 19-22) GR (FY 15,987 12% CA 2) 413 Y19 -22) 19 -2 2,240 13,832 13,061 R (F 3,997 R (FY 434 CAG CAG 11,462 459 4,896 26% 33% 1,685 584 3,622 2,936 3,641 9,250 1,415 1,972 177 2,539 2,582
Slide 31: Capital Market Information
Capital Market Information (BSE - CMSINFO | 543441, NSE – CMSINFO) Share Price Movement (Up to 30th September, 2022) 35% 25% 15% 5% -5% -15% -25% 31-Dec-21 31-Jan-22 28-Feb-22 31-Mar-22 30-Apr-22 31-May-22 30-Jun-22 31-Jul-22 31-Aug-22 30-Sep-22 CMS BSE Sensex BSE Small Cap Share Price Data Sharehol
Slide 32: Disclaimer
Disclaimer CMS Info Systems Limited Disclaimer: No representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are i
Slide 33: Thank You
THANK YOU CMS. conrcctna commerce”