Expleo Solutions Limited · NSE:EXPLEOSOL
Expleo Solutions — SQS India BFSI — Investor Presentation (September 2014)
30 slides from Expleo Solutions's investor presentation, September 2014
Slide 1: SQS India BFSI Investors Presentation
SQS – the world’s leading specialist in software quality sqs.com Please copy a slide with a suitable picture from the file „Title Slides_EN.pptx“ (change to presentation mode to download) and paste it here. If necessary, apply the correct formatting by right-clicking and choosing “Layout Title Sli
Slide 2: About SQS Group
About SQS Group SQS is the world’s leading specialist in independent software quality services. Founded more than 30 years ago, we have established ourselves as the leading specialist for smart quality solutions, serving North America, EMEA and APAC. The SQS mission is to shape and drive the most cr
Slide 3: About SQS India BFSI
About SQS India BFSI SQS India BFSI is the Global Specialist in Financial Services Testing. SQS India BFSI • 100% Financial Services focus • 16+ Years in Business • 200+ client base across 23 countries • 80+ Active Clients • Offices in key Financial Centers: New York, London, Frankfurt, Singapore, B
Slide 4: Our assets
Our assets Alignment to be a PARTNER of CHOICE for Business Assurance Testing. Cards & Treasury & Banking Insurance Payments Capital Markets • Repository • Repository • Repository • Repository Assets: 35,000+ Assets: 30,000+ Assets: 10,500 Assets: 10,000+ Test Cases Test Cases Test Cases Test Cases
Slide 5: Our Services
Our Services Our offerings cover the entire Application Development Life Cycle. Comprehensive Seamless Bridging Requirements End to End Quick Support Objective BR Documents translation Domain Gap, Led Testing Business Transition to ‘Business as of BR to FS Establish Func. Process Focus Productive Us
Slide 6: Key Highlights FY 2014
Key Highlights FY 2014 Net Revenue went up 20% YoY. Compared with FY 2013 Growth + 8% in $ terms (+ 20% in INR terms), revenues up in Cards & Payments PBT PBT increased by 59%, driven by revenues from Europe Net Cash Position Cash balance increased to INR 502 m from INR 387 m EPS Improved to INR 29.
Slide 7: Key Highlights Q1 2015
Key Highlights Q1 2015 Substantial progress in profitability by 190% achieved. Compared with Q4-14 Growth + 6% in $ terms (+3% in INR terms), revenues up in Cards PBT PBT increased by 190%, driven by revenues from Europe Net Cash Position Cash balance increased to INR 527 m from INR 502 m EPS Improv
Slide 8: Portfolio/Market trends
Portfolio/Market trends Meeting market trends through offering the leading services portfolio in software quality. Dev/Ops integration Digital Managed Services Transformation Vendor Customer Release Release Product Testing Integration Testing Operation Product Vendor Product Customer Product Custome
Slide 9: Achievements & Strategies
Achievements & Strategies Thinksoft was renamed as “SQS India BFSI limited”. Achievements FY 2015 • Thinksoft renamed as “SQS India BFSI Limited” and fully integrated. • Revenue growth driven by Cards and Payments vertical and healthy demand from North America and Europe Regions. • Investment in bil
Slide 10: Financial Details
To introduce a new chapter, please copy a slide with a suitable picture from the file „Dividing Slides.pptx“ (change to presentation mode to download) and paste it here. If necessary, apply the correct formatting by right-clicking and choosing “Layout Dividing Slide“. Financial Details SQS India B
Slide 11: Financial Highlights FY 2014
Financial Highlights FY 2014 Profitability, Cash Flow and Net Cash all improved. in INR m 2013-14 2012-13 Change Main developments Driven by Europe Region, and cards and Revenue 1944.4 1614.4 20.4 % Payments assignments Maintained due to better realization in Gross Margin (%) 48.3% 47.7% 0.6 % Europ
Slide 12: Financial Highlights Q1 2015
Financial Highlights Q1 2015 EBIT improved by 71 %. in INR m Q1-2015 Q4-2014 Change Main developments Driven by Europe Region, and cards and Revenue 513.3 500.3 2.6 % Payments assignments Reflecting investments in billable staff to Gross Margin (%) 44.8% 46.6% -1.8 % prepare for growth in future qua
Slide 13: Key Metrics
Key Metrics The deployment of our strategy is evidenced by our key metrics. Gross Margin (overall) (in % of revenue) FY 2014 48.3% FY 2013 47.7% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% Number of clients / Average revenue Net Book Debt 84 69 FY 2014 556m 23.5 m 23.1 m FY 2013 426m INR m 2014 2013 20
Slide 14: Revenue Split FY 2014
Revenue Split Europe Revenue contribution increased to 49 %. FY 2014 Revenue Revenue by practice Revenue by geographies ANZ ASIA (0% FY13) Insurance Banking (+3% FY13) Americas (-3% FY13) (-2% FY13) (-8% FY13) 3% 3% 9% 20% 46% Payments MENA (+9% FY13) 9% (-7% FY13) 13% 6% India (-1 % FY13) 27% 12% C
Slide 15: Revenue Split Q1 2015
Revenue Split Europe Revenue contribution increased to 50%. Q1 -2015 Revenue Revenue by practice Revenue by geographies ANZ ASIA (-1% Q4 FY14) Banking (-3% Q4 FY14) Insurance Americas (-3% Q4 FY14) 2% (+1% Q4 FY14) (+2% Q4 FY14) 7% MENA 4% 47% (+1% Q4 FY14) 22% Payments 12% (0% Q4 FY14) 9% India (-1
Slide 16: Markets and Outlook
To introduce a new chapter, please copy a slide with a suitable picture from the file „Dividing Slides.pptx“ (change to presentation mode to download) and paste it here. If necessary, apply the correct formatting by right-clicking and choosing “Layout Dividing Slide“. Markets and Outlook SQS India
Slide 17: Software Testing Services Market
Software Testing Services Market Testing Services market growth rates at c. 7 % in SQS’s largest regional markets. World market testing services Market split by services Specialist testing contracted stand alone North America Consultancy + Other Total: Non-functional 34,500 5,500 testing m$ 5% (49%)
Slide 18: Competitor Landscape
Competitor Landscape SQS is the world’s largest testing services specialist by revenue and no. 11 among system integrators. Pure Play Test Specialists System Integrators (testing part only) SQS + Thinksoft IBM 980 Qualitest 52 226 24 TACT 38 Cognizant 960 MTP 26 Plan IT 22 Accenture 750 Inspearit 22
Slide 19: Outlook 2015
Outlook 2015 BFSI has strong growth potential, resulting from being part of SQS group. Continue to focus on higher margin business and increased visibility • Strategy is for acquiring Core banking Testing and large migration in Cards • Focus on larger clients with higher revenue per client Extend ne
Slide 20: Appendix
To introduce a new chapter, please copy a slide with a suitable picture from the file „Dividing Slides.pptx“ (change to presentation mode to download) and paste it here. If necessary, apply the correct formatting by right-clicking and choosing “Layout Dividing Slide“. Appendix SQS India BFSI Limit
Slide 21: Profit & Loss Statement
Profit & Loss Statement PBT has grown by 60%. in INR m FY 2014 FY 2013 Change in % of sales in % of sales 2014/2013 Revenue 1944.44 1614.43 20.4% Adj. Gross Profit 939.81 48.3% 769.48 47.7% 22.1% G&A 341.43 17.6% 298.92 18.5% (14.2%) S&M 187.68 9.7% 168.69 10.4% (11.3%) R&D - - - - - EBITDA 410.70 2
Slide 22: Profit & Loss Statement
Profit & Loss Statement Revenue has grown by 19%. in INR m Q1/2015 Q1/2014 Change FY 2014 in % of in % of Q1 in % of sales sales 2015/2014 sales Revenue 513.26 430.37 19.3% 1944.44 Adj. Gross Profit 229.90 44.8% 216.30 50.3% 6.3% 939.81 48.3% G&A 78.24 15.2% 67.53 15.7% (15.9%) 341.43 17.6% S&M 50.5
Slide 23: Profit & Loss Statement
Profit & Loss Statement Adj. EBITDA went up by 53% YoY. in INR m Q1/2015 Q4/2014 Change FY 2014 in % of in % of Q1 2015 / in % of sales sales Q4 2014 sales Revenue 513.26 500.34 2.6% 1944.44 Adj. Gross Profit 229.90 44.8% 233.05 46.6% (1.4%) 939.81 48.3% G&A 78.24 15.2% 112.32 22.5% 30.3% 341.43 17.
Slide 24: Profit & Loss Statement
Profit & Loss Statement Adj. EBITDA went up by 53% YoY. in INR m Q1/2015 Q1/2014 Change Q4/2014 Change FY 2014 Q1 Q1 in % of in % of in % of 2015 / in % of 2015/ sales sales sales Q4 sales 2014 2014 Revenue 513.26 430.37 19.3% 500.34 2.6% 1944.44 Adj. Gross Profit 229.90 44.8% 216.30 50.3% 6.3% 233.
Slide 25: Balance Sheet SQS India BFSI
Balance Sheet SQS India BFSI Cash and Bank Balance increased by INR 52 m. in INR Mn Q1 FY 2015 Q1 FY 2014 FY 2014 Assets Non current assets 299.13 326.92 311.67 Tangible assets 258.01 281.39 257.79 Intangible assets 13.40 21.55 16.35 Intangible Assets under Development/ CWIP 9.61 0.62 6.64 Other Non
Slide 26: Cash Flow Statement SQS India BFSI
Cash Flow Statement SQS India BFSI Net increase in Cash/equivalents INR 26 m. In INR m Q1 FY 15 Q1 FY 14 FY 2013-14 Net cash flow from Operating Activities 63.24 88.58 237.24 Net profit/(loss) before taxation 93.74 143.35 422.32 Depreciation/amortisation 13.34 14.38 56.57 Loss/(profit) on sale of fi
Slide 27: Earnings per Share (EPS) SQS India BFSI
Earnings per Share (EPS) SQS India BFSI EPS Diluted at INR 5.91/share. Q1/2015 Q1/2014 Change FY 2014 FY 2013 Profit after taxes adjusted (in INR m) 62.7 102.5 (38.8%) 300.4 194.4 Weighted average number of shares 10,607,492 10,261,288 10,480,675 10,217,295 undiluted EPS Diluted in INR 5.91 9.99 (41
Slide 28: Balance Sheet
Balance Sheet Other short term liabilities & Provisions, 30 June 2014. In INR m 30-Jun-14 31-Mar-14 31-Mar-13 Other current liabilities Advance received from customers 1.70 1.32 1.06 Employee benefits payable 57.64 56.66 60.21 Liabilities for other expenses 57.86 44.75 43.64 Unearned Revenue 0.00 2.
Slide 29: Billable Staff
Billable Staff Employee strength increased marginally in Q1. Permanent Billable Employees (Period Average) Onshore/Offshore Split Consultants 1000 100% 900 90% 800 80% 700 70% 71% 70% 71% 600 60% 500 683 696 50% 400 570 40% 300 30% 200 20% 29% 30% 29% 100 10% 143 150 155 0 0% FY 13 FY 14 Q1 FY 15 FY
Slide 30: Thank you for your attention
To introduce a new chapter, please copy a slide with a suitable picture from the file „Dividing Slides.pptx“ (change to presentation mode to download) and paste it here. If necessary, apply the correct formatting by right-clicking and choosing “Layout Dividing Slide“. Thank you for your attention
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