Bls International Services Ltd. · NSE:BLS
Bls International Services — Investor Presentation (November 2018)
48 slides from Bls International Services's investor presentation, November 2018
Slide 1: To touch the lives of one billion people by 2023
20 PRESENTATION NOVEMBER 18 To touch the lives of one billion people by 2023
Slide 2: This presentation is segregated into five parts
BLS International Service Limited THIS PRESENTATION IS SEGREGATED INTO FIVE PARTS Part A Part B Part C Part D Part E Overview of The drivers of Industry Where do we Our financial what we have our success dynamics go from here? track record achieved 2
Slide 3: Part A: Overview of what we have achieved
BLS International Service Limited PART A Overview of what we have achieved 3
Slide 4: Truly global company
BLS International Service Limited TRULY GLOBAL COMPANY 36 62 2325 Client Countries of Global governments presence centres 9,000 60+ Employees and Nationalities of associates our employees 4
Slide 5: Vision, mission and values
BLS International Service Limited VISION, MISSION AND VALUES VALUES VISION Passion Touch the lives of a billion MISSION Customer Orientation people globally by creating Provide easy, innovative Entrepreneurship a differentiated and agile solutions to service experience Result Orientation citizens ac
Slide 6: Our business is dependent on two eventualities
BLS International Service Limited OUR BUSINESS IS DEPENDENT ON TWO EVENTUALITIES Increasingly demanding citizens More people seeking responsive needing to travel government more than ever services OUR BUSINESS IS CENTRED ROUND BOTH REALITIES We entered the We have scaled broad multi- our consular se
Slide 7: This has been the result
BLS International Service Limited THIS HAS BEEN THE RESULT Applications processed across the years 10,000 20 mn 31 mn until 2005 until 2017 until 2018 >5 million applications processed Applications In H1 of processed in FY2018-19 the last 3 financial 1.5 mn 4.1 mn 10.7 mn years 2015-16 2016-17 2017-
Slide 8: This is how we expect to touch a billion lives
BLS International Service Limited THIS IS HOW WE EXPECT ● Examine how the large range of legacy customer-facing services can be modernized to TO TOUCH A BILLION LIVES deliver services efficiently using technology ● Widen our presence across a larger number of existing customers ● Explore a large num
Slide 9: Early mover's advantage
BLS International Service Limited EARLY MOVER’S ADVANTAGE Fastest-growing in the global Winning a large Top 3 in global consular share of global G2C space services contracts segment 9
Slide 10: Our approach
BLS International Service Limited OUR APPROACH Carve Create market Grow the Enhance disproportionate Retain lead spaces market value market share 12 22 62 Our growth in Countries of Countries of Countries of Consular Services presence, presence, presence, 2012-13 2014-15 2017-18 10
Slide 11: Our global footprint
BLS International Service Limited OUR GLOBAL FOOTPRINT VISA AND CONSULAR SERVICES 1 Abu Dhabi 8 Bahrain 15 Dominican Republic 22 Hong Kong 29 Jordan 36 Mauritania 43 Palestine Territory 50 Senegal 57 Ukraine 2 Afghanistan 9 Banglades 16 Dubai 23 India 30 Kazakhstan 37 Morocc 44 Philippines 51 Sharja
Slide 12: The big picture
BLS International Service Limited Citizens demanding THE BIG PICTURE better service from their Governments Governments More need to Governments outsource (cut outsourcing, costs / liberate moving from bandwidth / vendor to increase brand ‘customer’ More than just image) another business space – it i
Slide 13: Government2Customers: the next big opportunity
BLS International Service Limited THE NEXT BIG OPPORTUNITY Government2Customer s 13
Slide 14: Public services outsourcing universe
BLS International Service Limited PUBLIC SERVICES OUTSOURCING UNIVERSE 1. Consular services 2. Front-end citizen services 3. Municipal services 4. Health services 5. Public transportation services 6. Education 7. National security 14
Slide 15: BLS International preferred G2C service company
BLS International Service Limited BLS INTERNATIONAL PREFERRED G2C SERVICE COMPANY • Amongst top 3 players in the visa outsourcing industry • 13 years of experience • 4 global training platforms – creating skilled teams that successfully face diverse requirements • Only Indian G2C provider listed on
Slide 16: Integrated G2C service model
BLS International Service Limited INTEGRATED G2C SERVICE MODEL Visa Citizen and Consular Processing Front End Services services Services Biometrics Verification Electronic and Identity and Visa Service Management Attestation (E-Visa) Services Services Value-Added Passport B2C Services Services Servi
Slide 17: Part B: The drivers of our success
BLS International Service Limited PART B The drivers of our success 17
Slide 18: The moat: unique business model
BLS International Service Limited THE MOAT: UNIQUE BUSINESS MODEL Focus Contract Cash flow Presence Market Profitability nature management across expansion • Profitable and • Specialised • Low input - high • Direct revenue geographies • Focus on entering scalable business focus on the output – long
Slide 19: The value we bring to the opportunity: agility
BLS International Service Limited THE VALUE WE BRING TO THE OPPORTUNITY: AGILITY Rollout with speed Enhance Ramp-up delivery capability standard AGILITY Customize Move into solutions new with regions speed 19
Slide 20: Agility: how we have transformed in the last few years
BLS International Service Limited AGILITY: HOW WE HAVE TRANSFORMED IN THE LAST FEW YEARS 80% of revenues 50-employee Majority of Non-biometric from Indian organisation in 2005 engagements from engagement in the government (pre- Indian missions past 2016) 9000-employee earlier organisation, 2017- Lar
Slide 21: Balance sheet strengths
BLS International Service Limited BALANCE SHEET STRENGTHS • The G2C outsourcing business is cash-accretive: generates more cash than it consumes 1188.7 20.53% 41% Cash on books (Rs Reported EBIDTA • The Balance Sheet is liquid with ROCE, 2017-18 mn), 31 March 2018 margin, 2017-18 attractive cash on
Slide 22: The technology edge
BLS International Service Limited THE TECHNOLOGY EDGE • The company possesses proprietary capability in designing G2C solutions • Proactive investment in technology-enabled protection of client data (pre-GDPR) • Focus on asset-lightness: open source + cloud + centralised server • Enhancing systemic
Slide 23: Board of directors
BLS International Service Limited BOARD OF DIRECTORS Mr. Nikhil Gupta Mr. Shikhar Aggarwal Mr. Karan Aggarwal Managing Director Joint Managing Director Executive Director Mr. Sarthak Behuria Mr. Surinder Singh Kohli Mr. Ram Prakash Bajpai Ms. Shivani Mishra Independent Director Independent Director
Slide 24: What BLS is doing for various governments
BLS International Service Limited WHAT BLS IS DOING FOR VARIOUS GOVERNMENTS Indian Punjab Sewa Spain Afghanistan UKVI Governments Kendra • Addressing major share • Awarded largest G2C • Commenced new • Awarded a Citizen • Strategic partnership of consular services contract for Spain, contract of cit
Slide 25: What we are doing in Dubai
BLS International Service Limited Addressing WHAT WE ARE the needs of Free financial Spain, UAE, policy DOING IN DUBAI Afghanistan enabling fast Financial hub and Indian flow of funds Governments Multi- Easy access to Europe cultural Low Opex and Asia-Pacific community First Global 250+ Canada, Sing
Slide 26: The testimonials and awards we have won
BLS International Service Limited THE TESTIMONIALS AND AWARDS WE HAVE WON • Best Visa Service Provider Award 2017, by Today’s Traveller Award • Best Workplace Practice Award 2017 and Excellence in the Travel Sector Award 2018, by CMO Asia Best CSR Practices Award in Singapore • Best Visa Service Pro
Slide 27: Our people
BLS International Service Limited OUR PEOPLE • The energy and enthusiasm of a young team that is complimented by the maturity of the Leadership Team with an extensive experience in the domain of service • Sound qualifications along with strong management proficiencies • Local hiring and deployment w
Slide 28: Part C: Industry dynamics
BLS International Service Limited PART C Industry dynamics 28
Slide 29: Divergence noticeable in the market
BLS International Service Limited DIVERGENCE NOTICEABLE IN THE MARKET Total market growing 2- 3% per annum Outsourcing market growing at 5% per annum Source: The World Bank & WTTC G20 report 29
Slide 30: Global travel and tourism market
BLS International Service Limited GLOBAL TRAVEL AND TOURISM MARKET • In 2017, Travel & Tourism growth outpaced that Annual Growth of the global economy at a rate of 4.6% 6.0% compared to 3% in 2016 4.9% 4.9% 5.0% 4.6% 4.7% • The number of international visitors crossing global borders rose from 1.25
Slide 31: Visa industry dynamics
BLS International Service Limited VISA INDUSTRY DYNAMICS • Significant growth with over 40 million visa applications Outsourcing mix being currently outsourced to specialized service 100%=128 million visa applications providers globally 120% • Market growth driven by increased people mobility, digit
Slide 32: Significant driving factors of consular outsourcing
BLS International Service Limited SIGNIFICANT DRIVING FACTORS OF CONSULAR OUTSOURCING • Growth in the number of embassies and consulates worldwide • Government budget cuts • Heavy administrative nature of visa processing • Growth of visa applications with increasing number of travellers • Policy pro
Slide 33: Attractive global outsourcing market
BLS International Service Limited ATTRACTIVE GLOBAL OUTSOURCING MARKET World visa application management market • 31% translates to 40 million visa applications outsourcing rate in 2016 – in % being outsourced currently of the 128 million total visa market Outsourcing, 31% • Remaining 69% yet to be
Slide 34: Part D: Where do we go from here?
BLS International Service Limited PART D Where do we go from here? 34
Slide 35: Growing addressable opportunity
BLS International Service Limited GROWING ADDRESSABLE OPPORTUNITY $ 100 bn space Source: Company estimate 35
Slide 36: Indication of market size
BLS International Service Limited INDICATION OF MARKET SIZE 500-1000 150 7 bn Outsourcable services in each Potential Global country countries population 36
Slide 37: Global scenario
BLS International Service Limited GLOBAL SCENARIO Governments engaging Governments Governments e-governance vendors on the moving from seeking a large portion basis of service insourcing to sectoral of the global and quality outsourcing specialists opportunity (over L-1 approach) 37
Slide 38: Opportunity summary
BLS International Service Limited OPPORTUNITY SUMMARY World at the bottom-end of a long J-curve in G2C services 38
Slide 39: Enablers of effective capital allocation
BLS International Service Limited ENABLERS OF EFFECTIVE CAPITAL ALLOCATION Distinctive Low one-time Capability in experience and investment, high knowledge ramp-up long-term returns Investing in Opex-driven Asset-lightness futuristic business business model selection 39
Slide 40: Part E: Our financial track record
BLS International Service Limited PART E Our financial track record 40
Slide 41: Six year review
BLS International Service Limited SIX YEAR REVIEW Adjusted EBITDA Total Income EBITDA PAT EPS (in Rs.) Net Cash of Rs. 1675 Mn. (Rs. Mn.) (Rs. Mn.) (Rs. Mn.) (Rs. Mn.) in FY18, up 98% from Rs. 848 Mn. in FY17 1628 7931 1188.70 9.42 6374 Adjusted PAT of Rs. 1012 Mn. in 965 5055 FY18, up 102% 4504 fro
Slide 42: Consolidated annual results FY18 vs FY17
BLS International Service Limited CONSOLIDATED ANNUAL RESULTS FY18 VIZ FY17 24% 92% 93% 7.23% 93% 57% 9.4% 9.42 1628 7931 41 2605 0.51 20.53 965 6374 31.6 0.36 1656 13.3 4.89 848 501 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-18 2016-17 2017-
Slide 43: PAT growth of 23% in the second quarter of FY19
BLS International Service Limited BLS INTERNATIONAL REGISTERS REMARKABLE PAT GROWTH OF 23% IN THE SECOND QUARTER OF FY19 The Net Profit stood at Rs. 329.9 Mn in Q2 FY19 Consolidated results Net Profit EPS for For the EBITDA of Q2FY19 quarter stood at Rs. Total Income Rs. 454.3 329.9 Mn; stood at end
Slide 44: Q2 FY19 results charts
BLS International Service Limited BLS INTERNATIONAL REGISTERS REMARKABLE PAT GROWTH OF 23% IN THE SECOND QUARTER OF FY19 2% 8% 3% 1% 23% 21% 23% 3.22 17.25 329.90 454.3 1912.3 441.8 23.76 23.58 2.62 781.6 14.30 267.90 1873.9 722.0 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY19 Q2 FY18 Q2 FY
Slide 45: PAT growth of 20% in the half year of FY19
BLS International Service Limited BLS INTERNATIONAL REGISTERS A REMARKABLE PAT GROWTH OF 20% IN THE HALF YEAR OF FY19 3% 13% 9% 6% 20% 16% 20% 6.54 958.8 670.20 1656.2 3934.5 17.00 24.40 881.5 3831.5 5.45 1462.0 558.50 14.60 23.00 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY19 H1 FY18 H1 FY
Slide 46: Q2 FY19 management commentary
BLS International Service Limited BLS INTERNATIONAL REGISTERS REMARKABLE PAT GROWTH OF 23% IN THE SECOND QUARTER OF FY19 continued… Commenting on the financial performance of the company for the quarter Mr. Nikhil Gupta, Managing Director, BLS International Services Limited, said, “The second quarte
Slide 47: Last word
BLS International Service Limited LAST WORD “At BLS International, we believe that our deep experience in consular services provides us with a foundation to extend into the adjacent business spaces of a range of G2C services. We believe that our outperformance in the consular services niche provides
Slide 48: For more information, please contact
For more information, please contact: Corporate Office: 912, Indra Prakash Building, 21, Barakhamba Road, New Delhi –110001 (India) Phone: +91-11-43750006, 43760006 Fax: +91-11-23755264 Email: investors@blsinternational.net compliance@blsinternational.net
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