Bosqar D.d. · ZSE:BSQR
Bosqar D.d — M+ Grupa — Investor Day (November 2019)
41 slides from Bosqar D.d's investor day presentation, Nov 15, 2019
Slide 1: M+ Grupa Investors Day
M+ Grupa INVESTORS DAY Date: 15.11.2019. www.mplusgrupa.com www.mplusgrupa.com
Slide 2: Agenda
AGENDA 1. ABOUT M+ GROUP 2. OUR SERVICES 3. RESULTS FOR PERIOD ENDING 30.09.2019. www.mplusgrupa.com
Slide 3: Agenda: About M+ Group
AGENDA 1. ABOUT M+ GROUP a) Company b) Ownership and Governance 2. OUR SERVICES 3. RESULTS FOR PERIOD ENDING 30.09.2019. www.mplusgrupa.com
Slide 4: M+ Group is a strong CEE regional BPO-CRM
M+ Group AS-IS is a strong CEE regional BPO-CRM, with comprehensive range of services ◼ Founded in 2007 and headquartered in Zagreb, M+ Group is the independent regional BPO leader, active also in employment and IT services, with contact center sites in Croatia, Slovenia, Bosnia and Herzegovina, Ser
Slide 5: Growth through organic expansion and strategic M&A
The growth is a combination of organic growth and development of complimentary services via strategic M&A Opening of the Signing of a first global Non-voice email and 2nd site in Zagreb Entered the nearshoring contract live chat become Entered Slovenian nearshoring with a blue-chip main contact cent
Slide 6: M+Grupa operating companies
Today, the M+Grupa has 10 operating companies and 7 of which in customer experience management segment SmartFlex Calyx CDE Meritus Group Linea Directa Trizma Group Group SmartFlex d.o.o. Calyx d.o.o. CDE Nove Tehnologije Meritus Plus d.o.o. Linea Directa d.o.o. Trizma d.o.o. SmartFlex Sourcing d.o.o
Slide 7: Over 180 renowned regional and global customers
We have a proven track record of supporting over 180 renowned regional and global customers www.mplusgrupa.com 7
Slide 8: Services from 6 locations in 4 regional countries
We are providing services from 6 locations in 4 regional countries Ljubljana Zagreb Slovenia Zagreb, Croatiia Croatia FTE 100 Occupation 75% FTE 450 Occupation 76% Koper Belgrade Slovenia Serbia FTE 100 Occupation 87% FTE 500 Occupation 88% Banja Luka Sarajevo Bosnia & Herzegovina Bosnia & Herzegovi
Slide 9: Agenda: Ownership and Governance
AGENDA 1. ABOUT M+ GROUP a) Company b) Ownership and Governance 2. OUR SERVICES 3. RESULTS FOR PERIOD ENDING 30.09.2019. www.mplusgrupa.com
Slide 10: Investors in M+ TopCo
Investors in M+ TopCo include renowned long-term investors Private Private PBZCO Allianz ERSTE NEK Raiffeisen OTP SQ capital investor investor Intesa 29.14% 29.14% 9.9% 9.56% 9.33% 6.2% 6.16% 0.43% 0.04% M+ Grupa www.mplusgrupa.com
Slide 11: Group Management Board
Group Management Board combines experienced professionals with relevant industry expertise Ivan Posavec Darko Horvat Tomislav Glavaš CEO CFO COO Over 8 years of management experience both Over 10 years of executive experience with Proven BPO and restructuring professional. from both private and publ
Slide 12: Supervisory Board
Experienced Supervisory Board shares the vision of M+ Group and is committed to its growth Hrvoje Prpić Tamara Sardelić Member Member Graduated medicine. Expert in legal and Has over 35 years of regulatory issues, experience in the health project financing, sector, companies and refinancing of credi
Slide 13: Agenda: Our Services
AGENDA 1. ABOUT M+ GROUP 2. OUR SERVICES a) What is Customer Experience Management? b) Why do Companies Outsource? 3. RESULTS FOR PERIOD ENDING 30.09.2019. www.mplusgrupa.com
Slide 14: Customer Experience Management is not just call center
Customer Experience Management is not just call center, and the industry itself is confused about the right term to use Business Process Call Center Contact Center Outsourcing (BPO) Call is just voice. Contact center as a term incorporates BPO is most factually correct as it the omni-channel essence
Slide 15: Two main splits of call center services
There are essentially two main splits of call center services Split by Call Origin Split by Service Type www.mplusgrupa.com
Slide 16: Services split by call origin
By Call Origin services are split on inbound and outbound INBOUND OUTBOUND which are calls that come into the center by which are calls that are originated by the contact clients that have a problem or want to ask a center staff either for sales, collections of money question. These calls should be
Slide 17: Services split by service type
By Service Type services are split on customer experience and sales CUSTOMER EXPERIENCE (CX) SALES which are calls aimed at improving which are calls that are originated by customer relationship either by the contact center staff for sales of solving customer complaints, goods and services either th
Slide 18: Inbound mistakenly equalized with CX, outbound with sales
In practice, inbound is mistakenly equalized with customer experience and outbound with sales INBOUND CUSTOMER EXPERIENCE (CX) OUTBOUND SALES www.mplusgrupa.com
Slide 19: Reality is more complex than call origin
Reality is more complex, with services being more indenpendent of the call origin Example: Example: INBOUND General customer inquiries Cross-sell and upsell of Complaints existing customers after Split by Call Origin resolving customer issue etc. OUTBOUND Example: Example: Welcome calls Subscription
Slide 20: Adding channels adds complexity
Adding channels of communication adds another layer of complexity INBOUND Split by Call Origin OUTBOUND VIDEO CHAT / EMAIL VOICE CUSTOMER EXPERIENCE SALES Split by Service Type www.mplusgrupa.com
Slide 21: Omni channel interaction across origin, service, channel
An interaction can be switched across call origin, service and channel types providing a customer with a true omni channel experience INBOUND Customer complaint about signal strength. Scheduled a call back Split by Call Origin with a technician OUTBOUND If needed technician switches to video VIDEO T
Slide 22: Omni channel interaction across origin, service, channel
An interaction can be switched across call origin, service and channel types providing a customer with a true omni channel experience INBOUND Customer complaint about signal strength. Scheduled a call back Split by Call Origin with a technician OUTBOUND If needed technician switches to video VIDEO T
Slide 23: Agenda: Why Do Companies Outsource?
AGENDA 1. ABOUT M+ GROUP 2. OUR SERVICES a) What is Customer Experience Management? b) Why do Companies Outsource? 3. RESULTS FOR PERIOD ENDING 30.09.2019. www.mplusgrupa.com
Slide 24: Numerous reasons why companies outsource
There are numerous reasons why companies outsource Labor Flexibility Service Quality • Better agent utilization • 24/7 service across all languages and channels at a right price • Flexibility with ramp-ups and ramp-downs • Enables client to focus on more strategic aspects of their business Trainings
Slide 25: Client staffing is never as flexible as volumes
LABOR FLEXIBILITY Client staffing is never as flexible to match volatility in interaction volumes Volumes are fluctuating, with max volumes on average Workforce is relatively stabile, with maximum peak deviating deviating 25% against the median and 37% against the min 5% against the median and 11.5%
Slide 26: Clients carry significant excess cost through the year
LABOR FLEXIBILITY This means that each client carries a significant excess cost through most of the year Volumes are fluctuating, with max volumes on average Workforce is relatively stabile, with maximum peak deviating deviating 25% against the median and 37% against the min 5% against the median an
Slide 27: Matching client needs and resources
LABOR FLEXIBILITY As an outsourcing partner it is our job to be better with matching client’s needs and resources Blended agent utilization across companies Peaks covered either with other 2.200 agents (blending or reassignment) or bonuses 2.000 1.800 Average workload 1.600 1.400 Potentail for utili
Slide 28: Four main pillars of service quality
SERVICE QUALITY There are 4 main pillars of our service quality, with KPIs being customized to each individual client Operational Model Agent Quality 1 Manager X&4-6 Team Leaders X 12-15 Agents Service level Average handle time Average talk time Quality Standards Key Performance Indicators Customer
Slide 29: KPIs managed on market or segment basis
SERVICE QUALITY Depending on client needs, KPIs are managed and monitored on market or segment basis Example: Single market client Example: Client with 6 markets served Sanitized Sanitized Sanitized Sanitized Sanitized Sanitized Sanitized www.mplusgrupa.com
Slide 30: More KPIs is better for a premium outsourcer
SERVICE QUALITY In most cases, more KPIs is better for a successful premium outsourcer More KPIs Less KPIs • Easier to manage • Usually a more complex project that is harder to • Easier blending of resources manage across projects • Project management can • Faster ramp-up require more overhead costs
Slide 31: Potential for improvement in seasonal ramp up and trainings
TRAININGS Additional potentail for improvement in more efficient seasonal ramp up and agent trainings # of agents 125 120 Clients often try to internally manage interaction volume fluctuations with temporary seasonal staffing. 115 110 What we often see in those cases is that selection and training p
Slide 32: Cost reduction through lower wages and nearshoring
LABOR COST Lastly, we provide clients with cost reduction through lower wages and we mostly do so through nearshoring 9.000 8.000 7.000 Average industry wage 6.000 5.000 4.000 3.000 2.000 1.000 - LEDO JAMNICA PIK I ROTO KONZUM TISAK VelPro Multiplus M+ M+ Major Zvjezda M+ telecoms nearshoring With o
Slide 33: Agenda: Results for period ending 30.09.2019
AGENDA 1. ABOUT M+ GROUP 2. OUR SERVICES 3. RESULTS FOR PERIOD ENDING 30.09.2019. www.mplusgrupa.com
Slide 34: Key Financial and Operational Facts & Figures
Key Financial and Operational Facts & Figures 243 million HRK 6.5 21 2.700+ revenue in first 9 months of million 2019 million employees calls of talks minutes 6 locations in 530.000 1 million 13 companies chat emails 4 countries interactions answered part of the M+ Group clients in Servicing 180+ 32
Slide 35: Financial highlights for the period ending 30 September 2019
Financial highlights for the period ending 30 September 2019 Income statement (in HRK thousand) 1-9 2019 1-9 2018 Delta % Revenues 243.154 158.278 84.875 54% EBITDA 27.397 16.640 10.757 65% EBITDA margin 11,27% 10,51% Adjusted EBITDA 35.193 19.760 15.433 78% Adjusted EBITDA margin 14,47% 12,48% Net
Slide 36: Revenues grew 54%, EBITDA grew 78%
Revenues grew to HRK 243 million or 54% compared to the same period last year. In the same period EBITDA grew by 78% Revenues and EBITDA 11.3% 10.5% 14.7% 12.5% 300.000 250.000 200.000 150.000 100.000 50.000 0 Revenues EBITDA Adjusted EBITDA 1-9 2019 1-9 2018 (in HRK thousand) 1-9 2019 1-9 2018 Delt
Slide 37: Net financial result decreased
Net financial result decreased for HRK 5 million ADP Item 1-9 2019 1-9 2018 Delta code In HRK III FINANCIAL INCOME (ADP 155 to 164) 154 426.680 6.267.868 -5.841.188 1 Other interest income 161 117.646 131.292 -13.646 2 Exchange rate differences and other financial income 162 241.785 1.092.321 -850.5
Slide 38: Equity increased for HRK 106 million
Equity increased for HRK 106 million Item 30 Sep 2019 31 Dec 2018 Delta In HRK A) CAPITAL AND RESERVES (ADP 068 to 070+076+077+081+084+087) 121.110.966 15.577.917 105.533.049 I INITIAL (SUBSCRIBED) CAPITAL 068 85.780.500 50.000.000 35.780.500 II CAPITAL RESERVES 069 57.248.800 0 57.248.800 III RESER
Slide 39: Working capital increased for HRK 7 million
Working capital increased for HRK 7 million Item 30 Sep 2019 31 Dec 2018 Delta In HRK II RECEIVABLES (ADP 047 to 052) 046 47.071.769 35.058.968 12.012.801 1 Receivables from undertakings within the group 047 0 0 0 2 Receivables from companies linked by virtue of participating interests 048 0 0 0 3 C
Slide 40: Net debt remained negative
Net debt remained negative 30 Sep 31 Dec (in HRK thousand) Delta % 2019 2018 Cash and cash equivalents 106.570 8.399 98.171 1169% Debt 66.598 60.988 5.610 9% Net Debt -39.972 52.589 -92.561 -176% NET Debt/EBITDA N/A 2,37 NET Debt/aEBITDA N/A 2,00 www.mplusgrupa.com
Slide 41: Contacts: Investor Relations
Contacts: Investor Relations investitori@mpluscc.com Heinzelova 62a, 10 000 Zagreb www.mplusgrupa.com www.mplusgrupa.com www.mplusgrupa.com