Slide 1: Intimation of Analyst/Institutional Investor Call
5th May 2022 To: National Stock Exchange of BSE Limited (Scrip Code: India Limited (Scrip Code: FSL) 532809) Exchange Plaza, Phiroze Jeejeebhoy Towers, Plot no. C/1, G Block, Dalal Street, Bandra-Kurla Complex Mumbai - 400 001 Bandra (East), Mumbai - 400 051 Dear Madam/ Sir, Sub: Intimation of Analy
Slide 2: Q4 FY2022 Earnings Update
Q4FY2022 EARNINGS UPDATE Q4 FY2022 Earnings Update 1 © FIRSTSOURCE 2021 | 5 May 2022
Slide 3: Disclaimer
Q4FY2022 EARNINGS UPDATE 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 from those in such forward-looking statements. T
Slide 4: Summary of Performance for the Quarter ended 31st March 2022
Summary of Performance for the Quarter ended 31st March 2022 Q4FY2022 EARNINGS UPDATE REVENUES OPERATING MARGIN ₹ 15,439 Million ₹ 1,751 Million (US$ 205.5 Million) (Margin 11.3%) YoY growth of 5.5% YoY Margin contraction of 102 bps Constant Currency growth of 3.1% PROFIT AFTER TAX EARNINGS PER SHAR
Slide 5: Summary of Performance for the Full year ended 31st March 22
Summary of Performance for the Full year ended 31st March 2022 Q4FY2022 EARNINGS UPDATE REVENUES OPERATING MARGIN ₹ 59,212 Million ₹ 7,105 Million (US$ 795.2 Million) (Margin 12.0%) YoY growth of 16.6% YoY Margin expansion of 23 bps Constant Currency growth of 14.6% PROFIT AFTER TAX EARNINGS PER SHA
Slide 6: Revenue Split by Verticals and Service Lines
Q4FY2022 EARNINGS UPDATE REVENUE SPLIT BY VERTICALS REVENUE SPLIT BY SERVICE LINES Q4FY22 Q4 FY22 49.0% 30.3% 19.0% 1.7% Q4 FY22 Q4FY22 44.4% 36.5% 19.1% Q3 FY22 48.3% 30.3% 19.6% 1.8% Q3 FY22 45.9% 44.0% 10.1% Q2 FY22 48.9% 29.6% 19.5% 2.0% Q2 FY22 46.8% 45.6% 7.6% Q1 FY22 51.7% 26.7% 19.6% 2.0% Q1
Slide 7: Top 5 Clients
Q4FY2022 EARNINGS UPDATE Client Concentration 4 of Top 15 2 of Top 6 6 of Top 15 Mortgage servicers in Retail banks in the UK Mortgage Lenders in Top Client Q4 FY22 Q4FY22 14.8% the US the US 20.3 years Total Tenure Q3FY22 15.2% 1,000+ 7 of Top 10 1 of Top 3 Health insurance/ managed Utility compani
Slide 8: Context Setting: Mortgage Industry trends and impact on our business (1/2)
Q4FY2022 EARNINGS UPDATE Context Setting: Mortgage Industry trends and impact on our business (1/2) • Mortgage Originations market correcting sharply due to change in macro-environment • Refinance volumes expected to drop by almost 63% from $2.3 Tn in CY2021 to $861 Bn in CY2022 • Overall Originatio
Slide 9: Context Setting: Mortgage Industry trends and impact on our business (2/2)
Q4FY2022 EARNINGS UPDATE Context Setting: Mortgage Industry trends and impact on our business (2/2) • Firstsource Mortgage Revenues grew strongly from $48 Mn in FY2019 to $216 Mn in FY2022 • In tandem with the market movement and contractions in Originations volume, FSL’s Revenue to be impacted in F
Slide 10: Annexure
Q4FY2022 EARNINGS UPDATE Annexure 9 © FIRSTSOURCE 2021 | 5 May 2022
Slide 11: Financial Performance (Quarterly)
Financial Performance (Quarterly) Q4FY2022 EARNINGS UPDATE In ₹ million Q4 FY2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2022 Q3 FY 2022 Q4 FY 2022 Income from services 10,673 10,537 11,783 13,510 14,496 14,780 14,182 14,456 15,239 Other operating Income 132 85 94 142 132 68 10
Slide 12: Financial Performance (Yearly)
Financial Performance (Yearly) Q4FY2022 EARNINGS UPDATE In ₹ million FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY2021 FY2022 Income from services 31,617 34,569 34,315 37,867 40,502 50,327 58,657 Other operating Income 556 987 1,038 396 484 453 554 Revenue from operations 32,173 35,556 35,352 38,263 40
Slide 13: Balance Sheet and Cash Flow Statement
Q4FY2022 EARNINGS UPDATE Balance Sheet and Cash Flow Statement In ₹ million Quarter ended 31-Mar-22 Full year ended 31-Mar-22 In ₹ million As at 31-Mar-22 As at 31-Mar-21 Cash Flow from Operating Activities Equity And Liabilities EBIT 1,751 7,105 Adjustment: Non-Cash and Other Income / (Expense) 743
Slide 14: Key Performance Indicators
Q4FY2022 EARNINGS UPDATE Key Performance Indicators Return on Equity Return on Capital Employed 17.6% 17.6% 17.7% 13.8% 13.9% 13.9% 14.1% 12.9% 12.7% 13.0% 12.3% 12.3% FY17 FY18 FY19 FY20 FY21 FY22 FY17 FY18 FY19 FY20 FY21 FY22 Note: FY21 ROE will be 16.1% excluding for exceptional item Cash Flow De
Slide 15: Operating Metrices
Q4FY2022 EARNINGS UPDATE Operating Metrices Particulars Q4 FY2020 Q1 FY 2021 Q2 FY 2021 Q3 FY 2021 Q4 FY 2021 Q1 FY 2022 Q2 FY 2022 Q3 FY 2022 Q4 FY 2022 Banking & Financial Services 42.8% 51.2% 51.9% 52.0% 52.2% 51.7% 48.9% 48.3% 49.0% Healthcare 31.3% 29.9% 27.1% 25.3% 24.8% 26.7% 29.6% 30.3% 30.3
Slide 16: Forex Hedges
Q4FY2022 EARNINGS UPDATE Forex Hedges Outstanding FX hedges at $52.5 million for USD and £34.6 million for GBP GBP-INR USD INR Period Hedged Average Rate Hedged Average Rate 0-12 Months £34.6 Rs 114.0 /£ $ 52.5 Rs 79.0 /$ 15 © FIRSTSOURCE 2021 | 5 May 2022
Slide 17: Prior Period Reports
Q4FY2022 EARNINGS UPDATE Prior Period Reports (Hyperlinks) ANNUAL REPORT PUBLISHED RESULTS INVESTOR PRESENTATIONS PRESS RELEASE FY2022 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Q4 FY2022 Q1 Q2 Q3 Q4 FY2021 FY2021 Q1 Q2 Q3 Q4 FY2021 Q1 Q2 Q3 Q4 FY2021 Q1 Q2 Q3 Q4 FY2020 FY2020 Q1 Q2 Q3 Q4 FY2020 Q1 Q2 Q3 Q4 FY2020
Slide 18: Q4FY2022 E ARNINGS U PDATE
Leader in US non-bank lender Top 3 in the chosen Revenue Leading CX service Top 5 Consumer debt Q4FY2022 EARNINGS UPDATE market Cycle Management segments providers in the UK across collections agency in the in US Healthcare Media and BFS segments US Customer Service Mortgage Operations Voice | Chat
Slide 19: About Us
Q4FY2022 EARNINGS UPDATE US UK PHILIPPINES About Us 4,895 16 5,043 8 574 2 16,045 12 INDIA Established in 2001 Domain driven BPM services company Leveraging a ‘Digital First, Digital Now’ approach to solve key customer problems Revenues of INR 59.0 Billion (approximately $795 Million) in FY2022 150+
Slide 20: Part of RP-Sanjiv Goenka Group
Q4FY2022 EARNINGS UPDATE Part of RP-Sanjiv Goenka Group Power Carbon Black Consumer & Retail Media & Entertainment Combined Education & Infrastructure IT-Enabled Services Revenues of $3.6 Billion in Sports FY2021 19
Slide 21: Select Awards
Q4FY2022 EARNINGS UPDATE Select Awards “A-100” by Investors in People NelsonHall Everest Group ISG SecurityScorecard™ Firstsource re-accredited Positioned as a ‘Leader’ in Ranked as top Business Leader in ISG Provider with the Investors In NEAT Evaluation for ‘Overall Rated ‘A-100’ by Process Servic
Slide 22: Corporate Management
Q4FY2022 EARNINGS UPDATE Corporate Management Senior Leadership Dinesh Jain Prashanth Nandella Randall Shafer Venkatgiri Vandali Deb Biswas Finance Operations Healthcare Healthcare & Communications, Provider Lifesciences Media & Technology Vipul Khanna MD & Chief Executive Officer Arjun Mitra Steven
Slide 23: Q4FY2022 E ARNINGS U PDATE
Q4FY2022 EARNINGS UPDATE Helping customers stay ahead of the curve through transformational technologies and capabilities Firstsource Solutions Limited, an RP-Sanjiv Goenka Group company, is a leading provider of transformational solutions and services spanning the customer lifecycle across Healthca