Teamlease Services Limited · NSE:TEAMLEASE
Teamlease Services — Q1 FY2017 Earnings Presentation
25 slides from Teamlease Services's earnings presentation, Aug 9, 2016
Slide 1: Investor Presentation on Financial Results for Q1FY17
“(Os A @ ™ Te am Lea se Putting India to Work August 09, 2016 BSE Limited, National Stock Exchange of India Limited, Phiroze Jeejeebhoy Towers, Exchange Plaza, 5" Floor, Dalal Street, Fort, Plot no. C/1, G Block, Mumbai 400 001 Bandra Kurla Complex, Bandra(E), Mumbai - 400 051 Scrip Code: 539658 Scr
Slide 2: TeamLease Services Limited Investor presentation August 2016
TeamLease Services Limited Investor presentation Putting India to work August 2016
Slide 3: Safe Harbor
Safe Harbor Certain statements in this release concerning our future growth prospects are forward-looking statements, which are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those contemplated in such forward-looking statement
Slide 4: Quarterly Performance
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Slide 5: Consolidated Year-on-Year Growth
Consolidated Year-on-Year Growth (all numbers in Rs. crore except Margins) For the quarter ended June 30, 2016 Q12017 Q12016 Growth % Gross Operating Revenue 787.19 635.26 24% Operating Revenue (net of Service Tax) 687.76 566.39 EBITDA 6.20 4.25 46% EBITDA margin (%) 0.9% 0.8% PBT 11.05 7.47 48% PBT
Slide 6: Financial Overview- Consolidated
Financial Overview- Consolidated (Rs. Crores) Jun-16 Jun-15 % growth Revenue from Operations (Gross) 787.19 635.26 24% Less: Service Tax 99.43 68.88 Revenue from Operations (Net of ST) 687.76 566.39 21% Associate employee cost 652.01 540.13 21% Core employee cost 16.19 12.60 28% Other operating expe
Slide 7: Consolidated Segment results
Consolidated Segment results Particulars (Rs. Crores) Jun-16 Jun-15 % growth Revenue (Net of ST): Staffing and Allied Services 678.20 560.45 21% Other HR Services 9.56 5.94 61% Total Income from operations 687.76 566.39 21% EBITDA Staffing and Allied Services 9.42 7.23 30% Staffing EBITDA % 1.4% 1.3
Slide 8: Key highlights of the quarter ended June 30, 2016
Key highlights of the quarter ended June 30, 2016 • Year-on-year growth of 24% in Gross Revenue and over 45% in EBITDA, PBT and PAT • Net increase in associate headcount by over 12,800 compared to June 30, 2015 and increase of over 4,800 compared to March 31, 2016 • Average mark-up per associate per
Slide 9: Productivity Ratio
Improvement in Core Employee Productivity Staffing No. of Associates/Trainess handled per Staffing Associate/ employee to employee Total Core core Trainee Associate 180 Year Employee employees count ratio 175 176 170 Mar'11 735 334 49,820 149 Productivity Ratio 166 165 165 Mar'12 813 404 61,021 151
Slide 10: About TeamLease
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Slide 11: About TeamLease
About TeamLease 1 One of India’s largest providers of human resource services in the organized segment Services span the entire supply chain of human resources, covering aspects of 2 employment, employability and education Hired someone for every 5 minutes in the last few years and provided employme
Slide 12: India's leading organized staffing company with significant brand value
1 India’s leading organized staffing company with significant brand value 115,000+ 14,000+ Trainees Employees 5% 1,400+ market share customers Domain agnostic operations Operate through nine offices in India, in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune 11
Slide 13: Corporate structure
Corporate structure TeamLease Services Limited TeamLease Education National Foundation India Tourism & (Section 8 Company- Employability IIJT Education Hospitality Not consolidated) TeamLease Apprenticeship Private Limited Services Private Staffing Services Limited Services Private Limited * (Sectio
Slide 14: Shareholding Pattern as of July 31, 2016
Shareholding Pattern as of July 31, 2016 1% 6% Promoter Group 7% Gaja 46% Anchor Investors 26% Non-Anchor + IVEN Employees + ESOP Trust 14% Retail/HNI
Slide 15: Our Industry
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Slide 16: Key topics of discussion
Key topics of discussion Labour Market Physical Geography of Work Transformation Sectoral Geography of Work Enterprise Geography of Work Education Geography of Work Legislative Geography of Work Staffing Industry Policy Context Transformation Customer Behavior Employee Behavior World of Work Changes
Slide 17: Multiple structural issues in the Indian labour market
Multiple structural issues in the Indian labour market 1 Physical geography of work 2 Sectoral geography of work Factories in operation across regions (2012-2013) Breakup of total employed workforce by sector (2011-12) Others 15% Services Tamil Nadu 17% Financial Services 2% Education Others 46% 5%
Slide 18: Multiple structural issues in the Indian labour market (Cont'd)
Multiple structural issues in the Indian labour market (Cont’d…) 3 Enterprise geography of work 4 Legislative geography of work Total: 58 mn Enterprises(2) Significant low number for PF subscribers(1) (in mn) 216 950K Registered Companies 42 2.3K companies with paid up Total workforce PF subscribers
Slide 19: Multiple structural issues in the Indian labour market (Cont'd)
Multiple structural issues in the Indian labour market (Cont’d…) 5 Education geography of work Level wise enrolment in school and higher education (2014) (in mn people) 23.5 3.4 22.2 37.0 65.8 High dropouts from the under-graduate pool - key 130.0 target segments for flexi staffing Primary (I-V) Upp
Slide 20: Massive growth potential for flexi-staffing in India
Massive growth potential for flexi-staffing in India India has the 2nd largest labor market in the world but the lowest penetration for flexi staffing (2012) #1 Ranking by size of The Indian labour market is largely unorganized with low #2 labor market level of flexi staffing penetration 11.9% Signi
Slide 21: Flexi staffing growth to come from a 3-phased industry transformation
Flexi staffing growth to come from a 3-phased industry transformation Flexi - staffing industry transformation Changes to World of Work Regulatory context Consumer behavior Change in employee mindset Change in regulatory regime Increased focus on Shift of employment from lifetime Complex regulatory
Slide 22: Company Strategy
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Slide 23: The 'match, repair and prepare' strategy
1 The ‘match, repair and prepare’ strategy TeamLease has expanded its service offerings to cover the entire human resources value chain Employment Employability Education All HR Services Match the requirements of Apprenticeship program TeamLease Skills University Consulting services for customers wi
Slide 24: Prudent growth strategy ahead…
Prudent growth strategy ahead… Contribute to accelerating Industry and labour market transformation Scaling operations in terms of people, process and technology Continue to grow through strategic acquisitions Build hiring capabilities Capital / asset light business model Expand service offerings to
Slide 25: Thank You
Thank You roan “Ce TeamLease™ 24 r)