Slide 1: Redefining Business Services - Investor Presentation filing letter
Redefining Business Services Date: 21/05/2024 To: To: BSE Limited (BSE) National Stock Exchange of India Limited (NSE) Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, 25th Floor, Dalal Street, G Block, Bandra Kurla Complex, Ban
Slide 2: Updater Services Limited Investor Presentation May 2024
Updater Services Limited Leading Integrated Business Service Platform Investor Presentation May 2024
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Updater Services Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or i
Slide 4: Q4 & FY24 Financial Highlights
Q4 & FY24 Financial Highlights
Slide 5: Q4 & FY24 Key Performance Highlights
Q4 & FY24 Key Performance Highlights Q4 FY24 Highlights FY24 Highlights Rs. 6,321 Mn. Rs. 411 Mn. Rs. 383 Mn. Rs. 24,561 Mn. Rs. 1,459 Mn. Rs. 1,666 Mn. Total Revenue Reported EBITDA Adj. EBITDA Total Revenue Reported EBITDA Adj. EBITDA +10% +6% -23% +16% +41% +12% Rs. 242 Mn. Rs. 217 Mn. Logo’s Add
Slide 6: Awards & Recognition during FY24
Awards & Recognition during FY24 During FY24 the company received the “Great Place to Recognized as India's Best Contact Work” certification Top 100 Best Centre of the year Workplaces for from CMO Asia, Best Women during FY24 Inbound & Outbound for Denave - A Tele Sales Agency from subsidiary of UDS
Slide 7: From the MD's Desk
From the MD’s Desk “For the FY2024, Total Revenues grew by 16% to Rs. 24,561 Million. BSS Segment witnessed a strong growth of 32% during the year, Revenue stood at Rs. 8,022 Million. This can be primarily attributed to the strong growth we are witnessing in the Sales Enablement Business. Coming to
Slide 8: Q4 FY24 Financial Highlights
Q4 FY24 Financial Highlights Total Revenue Revenue (IFM) Revenue (BSS) Reported EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) 69.3% 66.3% % of 30.7% 33.7% Sales 6.7% 6.5% +10% +8% +24% 6,326 4,272 2,174 +6% 5,760 3,950 1,752 387 411 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Q4FY23 Q4FY24 Adj. EBI
Slide 9: FY24 Financial Highlights
FY24 Financial Highlights Total Revenue Revenue (IFM) Revenue (BSS) Reported EBITDA Adjusted EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) (Rs. Mn.) % of 71.5% 67.5% 28.5% 32.5% 4.9% 5.9% 7.0% 6.8% Sales +16% +9% +32% +41% +12% 24,561 15,288 16,658 8,022 1,459 1,666 21,095 1,485 6,089 1,032 FY23
Slide 10: Q4 & FY24 Consolidated Profit & Loss Statement
Q4 & FY24 Consolidated Profit & Loss Statement Particulars (Rs. Million) Q4 FY24 Q4 FY23 Y-o-Y FY24 FY23 Y-o-Y Particulars (Rs. Million) Q4 FY24 Q4 FY23 Y-o-Y FY24 FY23 Y-o-Y Reported EBITDA 411.0 386.9 6% 1,459.1 1,032.4 41% Total Revenue from Operations 6,326.1 5,760.5 10% 24,560.6 21,095.4 16% (+
Slide 11: Q4 & FY24 Consolidated Balance Sheet
Q4 & FY24 Consolidated Balance Sheet EQUITY & LIABILITIES (Rs. Million) Mar-24 Mar-23 ASSETS (Rs. Million) Mar-24 Mar-23 Equity Share Capital 669.5 529.5 Property, plant and equipment 602.7 607.9 Other Equity 7,734.2 3,279.4 Capital Work in Progress 103.6 0.0 Goodwill 1,947.9 1,947.9 Equity attribut
Slide 12: Q4 & FY24 Consolidated Cash Flow Statement
Q4 & FY24 Consolidated Cash Flow Statement Cash Flow Statement (Rs. Million) FY24 FY23 Net Profit Before Tax 845.8 541.9 Adjustments for: Non - Cash Items / Other Investment or Financial Items 813.8 908.0 Operating profit before working capital changes 1,659.6 1,449.9 Changes in working capital -218
Slide 13: Delivering Value to Stakeholders with IPO
Delivering Value to Stakeholders with IPO October 2023 Listing of Updater Services Limited on BSE & NSE IPO Price: Rs. 300 per share Gross Proceeds from the Fresh Issue: Rs. 400 crores Objects of the Fresh Issue: ✓ Repayment and /or prepayment of certain borrowings availed by our Company; ✓ Funding
Slide 14: Why UDS...
Why UDS...
Slide 15: About Us
About Us Leading Integrated Business Services Platform - Unique mix of businesses transforming from only IFM to integrated platform with BSS 1 2 Transformed into an integrated business services platform offering IFM services and BSS led through strategic acquisitions and Organic Growth 3 PAN-India p
Slide 16: Leading Integrated Business Services Platform
1. Leading Integrated Business Services Platform Integrated Updater Facility Business Support Services Limited Management Services (BSS) (IFM) & Other Services IFM | Integrated Facility 2 BSS | Audit & Assurance BSS | Sales Enablement 1 1 Management (Matrix Business Services) (Denave & Athena BPO) B
Slide 17: Integrated Facility Management (IFM) & Other Services
1. Integrated Facility Management (IFM) & Other Services Soft Services Production Support Engineering Services Institutional Catering Services Mechanical, electrical, and plumbing Housekeeping and cleaning Material handling, material Catering and food (MEP) services. Also referred to as services, di
Slide 18: Business Support Services (BSS)
1. Business Support Services (BSS) Sales Enablement Services Audit & Assurances Employee Background Serving global customers across multiple industries including Services such as supply chain audit including Verification Check Services information technology / information technology enabled services
Slide 19: Transformed into an integrated business services platform
2. Transformed into an integrated business services platform offering IFM services and BSS led through strategic acquisitions and Organic Growth IFM & Others BSS Feminine Hygiene Employee Sales Background Check Enablement FY2023 Soft Services Audit & Assurance Acquired majority FY2022 stake in Athen
Slide 20: PAN India presence with large and efficient workforce
3. PAN India presence with large and efficient workforce Customer Locations Wide spread network with 139 points of ...gives the company competitive advantage 5,102 presence… over its peers in several aspects (excluding staffing locations) Preferred Ability to provide services for companies Service U
Slide 21: Track record of successful acquisitions and seamless integration
4. Track record of successful acquisitions and seamless integration of high margin businesses… Selective Strategic acquisitions as means to expand the operations in value added business support services space ✓ Focus has been to acquire companies and businesses with offerings that are complementary
Slide 22: Selective Strategic Acquisitions in Margin Accretive Business Support Services
… Adhering to which UDS made Selective Strategic Acquisitions in Margin Accretive Business Support Services via multiple tranches Cumulative Association of promoters of acquired Subsidiary Year of acquisition & Stake EBITDA (Rs. Mn.)* Payout entities with UDS P. C. Balasubramanian, Jayashree, Sundar
Slide 23: Longstanding relationship with customers across diverse sectors
5. Longstanding relationship with customers across diverse sectors leading to recurring business IFM and Other Services Business Support Services Customer Base: 1,593 customers Customer Base: 1,026 customers 35.4% 35.3% 34.0% 66.0% 28.0% 47.9% 46.8% 55.0% Revenue from Revenue from Top 10 customers T
Slide 24: Customer and Sector Concentration Highlights
5. Customer and Sector Concentration Highlights IFM Customer Concentration (%) BSS Customer Concentration (%) Top 10 Top 10 Top 50 Top 50 28% 66% 87% 51% Long standing relationships with customers having a 95% Retention over a 5-year window 23
Slide 25: Technology at the forefront of current and future businesses
6. Technology at the forefront of current and future businesses Adopted technology to optimize productivity and Selectively investing in technology platforms to stay improve cost efficiencies ahead of the curve Enterprise Technology Made a minority investment in Aubotz Lab Private Implemented SAP fo
Slide 26: Experienced Board
7. Experienced Board… Strong standards of corporate governance with experienced directors on board ✓ One of the founding Directors of the Company ✓ B.Com from Sydenham College of Commerce and Economics, University of Bombay, and Diploma in Systems Management ✓ 30 years of experience in the service s
Slide 27: Industry Outlook
Industry Outlook
Slide 28: Outsourced IFM Market in India
Outsourced IFM Market in India | Growth momentum to aid UDS' leading position ... IFM: Well diversified market in terms of end customers… …a large portion of which is currently being served in-house… ResidentialEducation Others Overall IFM Market 5% 4% 2% Healthcare Outsourced Industrial 9% 39.3% FY
Slide 29: Move towards organized integrated players
... further aided by the move towards organized integrated players Increase in Share of Outsourced IFM Preference for Organized/Integrated Consolidation on the rise services Players IFM: IN-HOUSE VS OUTSOURCED SERVICES The market is now shifting from single IFM Un-Organized vs Organized service cont
Slide 30: BSS Industry: Emerging segment with increasing outsourcing potential
BSS Industry | Emerging segment with increasing outsourcing potential Driven by growth in these verticals the Key verticals comprising the ~ Rs. 7,115 Cr BSS Segment and their BSS segment is expected to grow at pie share ~15.3% CAGR during FY23-FY28P Sales Enablement Airport Ground BSS Market Size S
Slide 31: UDS well placed with wide service offerings, onboarded through acquisitions
UDS well placed with wide service offerings, onboarded through acquisitions Sales Enablement Employee Background Mailroom Business Process Airport Ground Services Verification Management Audits & Assurance Handling Growth Trend (Rs. Crs.) Growth Trend (Rs. Crs.) Growth Trend (Rs. Crs.) Growth Trend
Slide 32: Integrated Business Services Platform with wide-range of services offered
Integrated Business Services Platform with wide-range of services offered Retail/Trade/Channel Audits & Assurances Waste Management Emergency Services Mail Room Services Background Checks Feminine Hygiene Sales Enablement Food & Catering Capital Projects Airport Ground Hard Services Soft Services Em
Slide 33: Key Growth Strategies
Key Growth Strategies
Slide 34: Key Growth Strategies
Key Growth Strategies Retain, strengthen Introduce new Continue to Grow market share Pursue Inorganic and grow products and improve operating in key segments Growth customer base services margins ✓ Focus on deepening ✓ Existing customer ✓ Catering to existing ✓ Changing business ✓ Strategic acquisit
Slide 35: Unique Well Defined Inorganic Strategy
Unique Well Defined Inorganic Strategy… “PRASAD” - Company’s Acquisition Strategy ✓ Businesses run by experienced promoters who continue Intends to pursue inorganic growth P Promoter Fit to work with the company both to build their original businesses and add value to the overall organization opport
Slide 36: Why UDS
Why UDS… Unique Integrated Business Support Highly experienced IFM Services Platform with widest offerings in management team with + the Industry support from PE investors BSS Long standing presence in India Technology at the forefront of has helped us gain an our current and future understanding of
Slide 37: Historical Financials
uds Redefining Business Services Historical Financials
Slide 38: Demonstrated Record of Robust Financial Performance
Demonstrated Record of Robust Financial Performance Total Revenue Revenue (IFM) Revenue (BSS) Adj. EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) % of EBITDA 90% 80% 72% 67% 10% 20% 28% 33% 6.3% 7.7% 7.0% 6.8% Margins Sales +26% 24,561 +14% +89% +30% 21,095 14,979 15,288 16,658 8,022 1,485 1,666 1
Slide 39: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (Rs. Million) FY24 FY23 FY22 FY21 Total Revenue from Operations 24,560.6 21,095.4 14,979.4 12,163.5 Particulars (Rs. Million) FY24 FY23 FY22 FY21 Cost of Services and Other RM 1,019.6 3,469.3 393.5 316.1 Reported EBITDA 1,459.1 1,032.4 925.
Slide 40: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet EQUITY & LIABILITIES (Rs. Million) Mar-24 Mar-23 Mar-22 Mar-21 ASSETS (Rs. Million) Mar-24 Mar-23 Mar-22 Mar-21 Equity Share Capital 669.5 529.5 528.2 528.2 Property, plant and equipment 602.7 607.9 332.0 135.1 Other Equity 7,734.2 3,279.4 2,876.1 2,324.5 Capita
Slide 41: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement Cash Flow Statement (Rs. Million) FY24 FY23 FY22 FY21 Net Profit Before Tax 845.8 541.9 709.4 544.3 Adjustments for: Non - Cash Items / Other Investment or 813.8 908.0 385.3 236.0 Financial Items Operating profit before working capital changes 1,659.6 1,44
Slide 42: Thank You
THANK YOU Company: Updater Services Limited CIN: U74140TN2003PLC051955 Ms. Radha Ramanujan – CFO radha.ramanujan@uds.in Website : www.uds.in Investor Relations: Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Deven Dhruva / Mr. Varun Shivram deven.dhruva@sgapl.net / varun.shivram@