Slide 1: Firstsource Solutions Limited Investor Presentation
Firstsource Solutions Limited Investor Presentation April 27, 2007
Slide 2: Disclaimer
Disclaimer Certain statements in this presentation concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially form those in such forward-looking statements. The risks and uncertainties
Slide 3: Agenda
Agenda • Key Highlights • Positioning and Growth Opportunities • Financial Summary – FY 2007
Slide 4: Key Highlights (1/2)
Key Highlights (1/2) • Founded in 2001 – rebranded from ICICI Onesource to Firstsource in November 2006 Tier Tier 11 global global service service • Among the top 3 pure play Indian BPOs provider provider • 76 clients as of March 31, 2007 • 14,396 employees worldwide as of March 31, 2007 • 24 global
Slide 5: Key Highlights (2/2)
Key Highlights (2/2) 10,000 REVENUE 2% 8,399 8,000 C AGR: 8 -FY07 6,000 FY03 5,495 Rs.M n 4,000 3,235 1,808 2,000 772 0 2003 2004 2005 2006 2007 2,200 20.8% 25% EBITDA 16.5% 14.7% 1,800 20% Strong Strong revenue revenue growth growth 1,400 11.5% 15% Rs. Mn and and expanding expanding Margins Margins
Slide 6: Positioning and Growth Opportunities
Positioning and Growth Opportunities
Slide 7: Strategically Positioned for Growth
Strategically Positioned for Growth • Offshore BPO Industry is a Large and Rapidly Growing Market • Early Leadership Position in Offshore BPO : Top 3 Indian Pure Play • Strategically Positioned to Maintain and Grow Leadership Position - Focus on Verticals with Large Market Potential - Deep Domain Ex
Slide 8: Large and Rapidly Growing Industry
Large and Rapidly Growing Industry Large Addressable Global Offshore BPO market US$ 25 billion Indian BPO industry by 2010 (FY 2005)(1) 12x $120-150n $25.0 120.0 25.0 100.0 20.0 GR CA % (US$ in billion) 80.0 (US$ in billion) 37 15.0 60.0 10.0 40.0 $5.2 20.0 5.0 $11.2bn India 5.2 Others 6.2 0.0 0.0 2
Slide 9: Focus on Verticals with Large Market Potential
Focus on Verticals with Large Market Potential Addressing key verticals in a large addressable market $120-150 bn 100% $68-85 bn 55-61% 7% Telecom $8-10 Telecom $25-35 Insurance 21-23% Insurance $35-40 Banking 27-29% Banking Total addressable Firstsource's target Total addressable market Firstsource
Slide 10: Established Relationships with Large Global Companies
Established Relationships with Large Global Companies BFSI Telecom and Media Healthcare • 3 of the 5 largest US banks • 2 of the world’s Top 10 • 3 “Fortune 100” telecom companies Healthcare Companies • 5 of 10 largest credit card companies in the US No. of clients across revenue buckets 52 33 17 10
Slide 11: Strategic Partnership with Metavante
Strategic Partnership with Metavante Top 3 US bank technology and payments processor Differentiated service Access to proven delivery model technology platform •• End-to-end, End-to-end, platform platform •• Ability Ability to to leverage leverage based based global global BPO BPO Metavante’s Metava
Slide 12: Track-record of Strategic Acquisitions
Track-record of Strategic Acquisitions Target and year of acquisition Strategic Rationale CustomerAsset India, April 2002 Facilitated quick entry into BPO business with credible platform and high quality client base Acquisition strengthened presence in the US and added credit FirstRing Inc, July 200
Slide 13: Diversified Business Model
Diversified Business Model Declining client concentration Significant revenue from existing clients Revenue from largest client 100% 94.2% 87.1% 30% 26.9% 80% 73.7% 71.8% 21.2% 20% 16.0% 14.5% 60% 10% 40% 20% 0% FY04 FY05 FY06 FY07 0% ♦ Revenue from top 5 clients declined from 65% in FY04 to 54% in
Slide 14: Our Growth Strategy
Our Growth Strategy Strategic Mining Acquiring Achieve Growth and Acquisition Existing New Scale and Customers Customers Partnerships Maintain Invest in Build Delivery Platform / Invest in Focus on Proprietary Capabilities Middle Process Technology Management Excellence Platforms Firstsource © 2007
Slide 15: Financial Summary FY 2007
Financial Summary FY 2007 DPD firstsource
Slide 16: Financial Summary FY 2007
Financial Summary FY 2007 Rupees Million FY 2006 FY 2007 Q4 FY Q4 FY % Growth 2006 2007 % Growth Actual Actual Actual Actual Operating Income 5,487.5 8,297.6 1,610.6 2,747.0 Other Income 7.7 101.7 6.0 20.9 Total Income 5,495.2 8,399.3 52.8% 1,616.6 2,768.0 70.6% Expenditure 4,688.9 6,653.8 1,244.8 2
Slide 17: FY 2007 – Quarterly Summary
FY 2007 – Quarterly Summary Rupees Million FY 2006 FY 2007 Q4 Q1 Q2 Q3 Q4 Total Operating Income 1,610.6 1,608.7 1,793.6 2,148.3 2,747.0 8,297.6 Other Income 6.0 (26.1) 22.8 84.0 20.9 101.7 Total Income 1,616.6 1,582.6 1,816.4 2,232.3 2,768.0 8,399.3 Growth QnQ% -2% 15% 23% 24% EBIDTA 371.7 287.3 37
Slide 18: Other Key Highlights of FY 2007
Other Key Highlights of FY 2007 • Successful IPO and listed on Indian stock markets w.e.f Feb 22, 2007 • Acquired BPM in Dec 2006 • Strategic partnership with Metavante in April 2006. Relationship poised for acceleration • Total clients up from 54 in FY’06 to 76 in FY’07 • Employee strength grew fro
Slide 19: Balance Sheet as of March 31, 2007
Balance Sheet as of March 31, 2007 Rupees Million Particulars 31-Mar-07 31-Mar-06 Increase Actuals Actuals (Decrease) Sources of Funds Share Capital 4,250.8 3,996.7 254.2 Reserves & Surplus 6,414.7 327.5 6,087.2 Loan Funds 1,975.9 1,300.3 675.6 Minority Interest 43.0 49.2 (6.2) Deferred Tax Liabilit
Slide 20: Thank You
THANK YOU Firstsource (formerly ICICI OneSource) is among India’s top 3 pure-play BPO companies. It provides customized business process transformation to global leaders in the Banking & Financial Services, Telecom & Media and Healthcare sectors. Firstsource has over 74 leading organizations as cust