Slide 1: Filing cover letter: Investor Presentation Q2 & H1 FY24
Rede ining Business Service 07TH November 2023 To To: To: BSE Limited (BSE) National Stock Exchange of India Limited (NSE) Corporate Relationship Department Listing Department Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, 25th Floor, Dalal Street, G Block, Bandra Kurla Complex,
Slide 2: Leading Integrated Business Service Platform
Updater Services Limited Leading Integrated Business Service Platform Investor Presentation November 2023
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by and is the sole responsibility of Updater Services Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or i
Slide 4: Q2 & H1 FY24 Financial Highlights
Q2 & H1 FY24 Financial Highlights
Slide 5: From the MD's Desk
From the MD’s Desk “During Q2 FY24, Total Revenues grew by 17% Y-o-Y to Rs. 6,019 million. Corporates are now pivoting towards outsourced Facility Management Solutions to free up resources and better align their cost structures. The IFM segment grew by 11% to Rs. 4,150 million and the BSS segment gr
Slide 6: Q2 FY24 Financial Highlights
Q2 FY24 Financial Highlights Total Revenue Revenue (IFM) Revenue (BSS) Reported EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) 72.1% 67.6% % of 27.9% 32.4% Sales 4.8% 5.2% +17% +11% +37% 6,019 4,150 1,985 +26% 5,142 3,740 1,450 314 248 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Q2FY23 Q2FY24 Adj. E
Slide 7: H1 FY24 Financial Highlights
H1 FY24 Financial Highlights Total Revenue Revenue (IFM) Revenue (BSS) Reported EBITDA Adjusted EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) (Rs. Mn.) % of 71.8% 68.8% 28.2% 31.2% 4.8% 5.6% 7.6% 6.8% Sales +19% +14% +31% +39% +7% 11,796 8,260 3,738 655 751 804 9,935 7,277 2,853 472 H1FY23 H1FY24
Slide 8: Q2 & H1 FY24 Consolidated Profit & Loss Statement
Q2 & H1 FY24 Consolidated Profit & Loss Statement Particulars (Rs. Million) Q2 FY24 Q2 FY23 Y-o-Y H1 FY24 H1 FY23 Y-o-Y Estimated ESOP Cost for FY24 is ~Rs. 110 Mn. Total Revenue from Operations 6,019.0 5,142.2 17% 11,795.8 9,935.2 19% Cost of Services and Other RM 1,121.0 797.4 2,065.3 1,590.9 Part
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet EQUITY AND LIABILITIES (In Rs. Million) Sep-23 Mar-23 ASSETS (In Rs. Million) Sep-23 Mar-23 Equity Share Capital 667.0 529.5 Property, Plant And Equipment 591.2 607.9 Other Equity 7,252.0 3,279.4 Capital Work In Progress 4.2 0.0 Equity Attributable To Equity Holder Of The
Slide 10: Delivering Value to Stakeholders with IPO
Delivering Value to Stakeholders with IPO October 2023 Listing of Updater Services Limited on BSE & NSE IPO Price: Rs. 300 per share Gross Proceeds from the Fresh Issue: Rs. 400 crores Objects of the Fresh Issue: ✓ Repayment and /or prepayment of certain borrowings availed by our Company; ✓ Funding
Slide 11: Why UDS…
Why UDS...
Slide 12: About Us
About Us Leading Integrated Business Services Platform - Unique mix of businesses transforming from only IFM to integrated platform with BSS 1 2 Transformed into an integrated business services platform offering IFM services and BSS led through strategic acquisitions and Organic Growth 3 PAN-India p
Slide 13: 1. Leading Integrated Business Services Platform
1. Leading Integrated Business Services Platform Integrated Updater Facility Business Support Services Limited Management Services (BSS) (IFM) & Other Services IFM | Integrated Facility 2 BSS | Audit & Assurance BSS | Sales Enablement 1 1 Management (Matrix Business Services) (Denave & Athena BPO) B
Slide 14: 1. Integrated Facility Management (IFM) & Other Services
1. Integrated Facility Management (IFM) & Other Services Soft Services Production Support Engineering Services Institutional Catering Services Mechanical, electrical, and plumbing Housekeeping and cleaning Material handling, material Catering and food (MEP) services. Also referred to as services, di
Slide 15: 1. Business Support Services (BSS)
1. Business Support Services (BSS) Sales Enablement Services Audit & Assurances Employee Background Serving global customers across multiple industries including Services such as supply chain audit including Verification Check Services information technology / information technology enabled services
Slide 16: 2. Transformed into an integrated business services platform
2. Transformed into an integrated business services platform offering IFM services and BSS led through strategic acquisitions and Organic Growth IFM & Others BSS Feminine Hygiene Employee Sales Background Check Enablement FY2023 Soft Services Audit & Assurance Acquired majority FY2022 stake in Athen
Slide 17: 3. PAN India presence with large and efficient workforce
3. PAN India presence with large and efficient workforce Customer Locations Wide spread network with 125 points of ...gives the company competitive advantage 5,087 presence… over its peers in several aspects (excluding staffing locations) Preferred Ability to provide services for companies Service U
Slide 18: 4. Track record of successful acquisitions and seamless integration
4. Track record of successful acquisitions and seamless integration of high margin businesses… Selective Strategic acquisitions as means to expand the operations in value added business support services space ✓ Focus has been to acquire companies and businesses with offerings that are complementary
Slide 19: Selective Strategic Acquisitions in Margin Accretive Business Support Services
… Adhering to which UDS made Selective Strategic Acquisitions in Margin Accretive Business Support Services via multiple tranches Cumulative Association of promoters of acquired Subsidiary Year of acquisition & Stake EBITDA (Rs. Mn.)* Payout entities with UDS Pondicherry Chidambaram Balasubramanian
Slide 20: 5. Longstanding relationship with customers across diverse sectors
5. Longstanding relationship with customers across diverse sectors leading to recurring business IFM and Other Services Business Support Services Customer Base: 1,572 customers Customer Base: 1,547 customers 35.39% 35.30% 33.96% 54.95% 47.91% 46.76% Revenue from Revenue from Top 10 customers Top 10
Slide 21: 6. Technology at the forefront of current and future businesses
6. Technology at the forefront of current and future businesses Adopted technology to optimize productivity and Selectively investing in technology platforms to stay improve cost efficiencies ahead of the curve Enterprise Technology Made a minority investment in Aubotz Lab Private Implemented SAP fo
Slide 22: 7. Experienced Board…
7. Experienced Board… Strong standards of corporate governance with experienced directors on board ✓ One of the founding Directors of the Company ✓ B.Com from Sydenham College of Commerce and Economics, University of Bombay, and Diploma in Systems Management ✓ 30 years of experience in the service s
Slide 23: …with a strong leadership team with support from PE Investors
…with a strong leadership team with support from PE Investors Mr. Raghunandana Tangirala - Promoter, Chairman of the Board & MD Mr. Pondicherry Chidambaram Balasubramanian – ED & WTD ✓ One of the founding Directors of the Company with 30 years of ✓ One of the founding directors and previously served
Slide 24: Industry Outlook
Industry Outlook
Slide 25: Outsourced IFM Market in India
Outsourced IFM Market in India | Growth momentum to aid UDS' leading position ... IFM: Well diversified market in terms of end customers… …a large portion of which is currently being served in-house… ResidentialEducation Others Overall IFM Market 5% 4% 2% Healthcare Outsourced Industrial 9% 39.3% FY
Slide 26: Move towards organized integrated players
... further aided by the move towards organized integrated players Increase in Share of Outsourced IFM Preference for Organized/Integrated Consolidation on the rise services Players IFM: IN-HOUSE VS OUTSOURCED SERVICES The market is now shifting from single IFM Un-Organized vs Organized service cont
Slide 27: BSS Industry | Emerging segment with increasing outsourcing potential
BSS Industry | Emerging segment with increasing outsourcing potential Driven by growth in these verticals the Key verticals comprising the ~ Rs. 7,115 Cr BSS Segment and their BSS segment is expected to grow at pie share ~15.3% CAGR during FY23-FY28P Sales Enablement Airport Ground BSS Market Size S
Slide 28: UDS well placed with wide service offerings, onboarded through acquisitions
UDS well placed with wide service offerings, onboarded through acquisitions Sales Enablement Employee Background Mailroom Business Process Airport Ground Services Verification Management Audits & Assurance Handling Growth Trend (Rs. Crs.) Growth Trend (Rs. Crs.) Growth Trend (Rs. Crs.) Growth Trend
Slide 29: Integrated Business Services Platform with wide-range of services offered
Integrated Business Services Platform with wide-range of services offered Retail/Trade/Channel Audits & Assurances Waste Management Emergency Services Mail Room Services Background Checks Feminine Hygiene Sales Enablement Food & Catering Capital Projects Airport Ground Hard Services Soft Services Em
Slide 30: Key Growth Strategies
Key Growth Strategies
Slide 31: Key Growth Strategies
Key Growth Strategies Retain, strengthen Introduce new Continue to Grow market share Pursue Inorganic and grow products and improve operating in key segments Growth customer base services margins ✓ Focus on deepening ✓ Existing customer ✓ Catering to existing ✓ Changing business ✓ Strategic acquisit
Slide 32: Unique Well Defined Inorganic Strategy…
Unique Well Defined Inorganic Strategy… “PRASAD” - Company’s Acquisition Strategy ✓ Businesses run by experienced promoters who continue Intends to pursue inorganic growth P Promoter Fit to work with the company both to build their original businesses and add value to the overall organization opport
Slide 33: Why UDS…
Why UDS… Unique Integrated Business Support Highly experienced IFM Services Platform with widest offerings in management team with + the Industry support from PE investors BSS Long standing presence in India Technology at the forefront of has helped us gain an our current and future understanding of
Slide 34: Historical Financials
uds Redefining Business Services Historical Financials
Slide 35: Demonstrated Record of Robust Financial Performance
Demonstrated Record of Robust Financial Performance Total Revenue Revenue (IFM) Revenue (BSS) Adj. EBITDA (Rs. Mn.) (Rs. Mn.)^ (Rs. Mn.)^ (Rs. Mn.) Adjusted % of EBITDA 90% 80% 72% 10% 20% 28% 6.1% 7.3% 6.9% Sales Margins +32% 21,061 +17% +40% 14,919 +127% 12,142 15,367 6,121 1,450 11,220 12,183 1,0
Slide 36: Historical Consolidated Profit & Loss Statement
Historical Consolidated Profit & Loss Statement Particulars (Rs. Million) FY23 FY22 FY21 Total Revenue from Operations 21,060.7 14,919.4 12,141.9 Particulars (Rs. Million) FY23 FY22 FY21 Cost of Services and Other RM 3,469.3 1,347.6 316.1 Reported EBITDA 997.7 865.9 702.2 Employee benefits expense (
Slide 37: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet EQUITY & LIABILITIES (Rs. Mn.) Mar-23 Mar-22 Mar-21 ASSETS (Rs. Mn.) Mar-23 Mar-22 Mar-21 Equity Share Capital 529.5 528.2 528.2 Property, plant and equipment 607.9 332.0 135.1 Other Equity 3,279.4 2,876.1 2,324.5 Capital Work in Progress 0.0 41.2 3.2 Equity att
Slide 38: Historical Consolidated Cash Flow Statement
Historical Consolidated Cash Flow Statement Cash Flow Statement (Rs. Million) FY23 FY22 FY21 Net Profit Before Tax 541.9 709.4 544.3 Adjustments for: Non - Cash Items / Other Investment or Financial Items 908.0 385.3 236.0 Operating profit before working capital changes 1,449.9 1,094.8 780.2 Changes
Slide 39: Thank You
THANK YOU Company: Updater Services Limited CIN: U74140TN2003PLC051955 Mr. Balaji Swaminathan – CFO balaji.s@uds.in Website : www.uds.in Investor Relations: Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285 Mr. Deven Dhruva / Mr. Varun Shivram deven.dhruva@sgapl.net / varun.shivram@sgap