Transcription
Digitally signed by SNEHASNEHA PRABHAKAR PRABHAKAR KADAMDate: 2022.04.21 11:34:48KADAM 05'30'
Payment Solutions (Cash & Digital) Banking Automation Solutions Other Automation SolutionsAGS TRANSACT TECHNOLOGIES LIMITEDINVESTOR PRESENTATION APRIL 2022
Safe HarborThis presentation and the accompanying slides (the “Presentation”), which have been prepared by AGS Transact Technologies Limited (the“Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchaseor subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitmentwhatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailedinformation about the Company.This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but theCompany makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy,completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may notcontain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, thisPresentation is expressly excluded.Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospectsthat are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performanceand are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertaintiesinclude, but are not limited to, the performance of the Indian economy and of the economies of various international markets, theperformance of the industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the Company’sfuture levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cashflows, the Company’s market preferences and its exposure to market risks, as well as other risks. The Company’s actual results, levels ofactivity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. TheCompany assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statementsand projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible forsuch third-party statements and projections.
COMPANY OVERVIEW
AGS Transact Technologies – OverviewOne of the largest integrated omni-channel payment solutions providers in India1catering to banks & corporate clients2 serving across diverse industries including retail,petroleum, ecommerce and fintech sectorsEstablished Leadership position in the Indian ATM Industry; second largest ATMmanaged service & cash management Company in India2 with presence across 2,200cities and townsBuilt digital payment solutions such as Ongo & Fastlane; One of the largest deployersof POS terminals at petroleum outlets in India2Operational and Financial Snapshot (As of December 2021 / FY21) 72,000227,940923 mn / 1,095 mnATMs & CRMsmanaged/Serviced3MerchantPOS installedSwitchingTransactionsc.450,000 228 bn. / 206 bn.TouchpointsMerchant GrossTransaction Value45,174Cash managementservices to ATMsthrough SVILDedicated in-house infrastructure & technology capabilities with ability to innovateand offer customized payment solutionsEstablished track record of delivering robust financial performance as well ascontinued growthStrong management team with significant industry experience and establishedrelationships with customers 13,923 Mn / 17,972 Mn25.4% /26.5%Total IncomeEBITDA margin 3,541 Mn / 4,768 MnEBITDA1. In terms of providing digital & cash-based solutions; 2. As of March’21 and Source: Ken Research Report3. Includes installed, maintained or managed ATMs3
Evolution of AGS Transact Technologies2014 – onwardsExpanded into payments solutionsoffering Digital & Cash payment solutions2009 – onwardsOffer ATM outsourcing & managedservices, cash management services2004 – onwardsStarted providing bankingautomation solutions inIndiaContinuously4
Integrated Omni-Channel Payment Solutions Provider (1/2)Preferred partner for cash and digital payment solutionsPrimaryIndustriesAGS offers end-to-end Cash & Digital Payment solutions across industries supported by inhouse service teams and technologyplatformPetroleumStrategic Business EnablersBankingAGSSolutionPOS &MerchantManagementAGSPaymentPlatformForm – Factor – Independent Omni – Channel Middleware [Digital ID, UPI,Card, Wallet, NFC, QR-Code, Kiosk, ATM,RFID etc.]AGS SupportFunctions &teamsControl Centre24/7 –365 daysSwitch &TransactionProcessingTransitRetailField Services &CashManagementPayment &SettlementOperations &ManufacturingValue AddedServicesSwitch &PaymentsFintechIntegratedSolutionsATMs Cashdispensers Mobile walletsChannel – Independent Fraud Prevention &AML – Tools & ServicesMerchant &POSDigital & AgileDevelopment5
Integrated Omni-Channel Payment Solutions Provider (2/2)Preferred partner for cash and digital payment solutionsEnd-to-end cash and digital payment solutions and technology provider with a dominant presence across India (As of December 2021 / FY21)1ATM & CRM Outsourcing /Management32,485 ATMs, including 4,022CRMs6Other AutomationSolutionsCash PaymentSolutions2 47k cash billing terminalsinstalled45,174 ATMs undermanagement3Banking AutomationSolutions24,484 ATMs and CRMsunder service in IndiaMerchant Acquiring227,940 POS terminals4Switching and Toll &TransitRevenue MixCash Management1. 18k petroleum outletsautomated5S.no.Payment Solutions% of sales9M FY2276%i. Cash Payment Solutions61%ii. Digital payment solutions15%2.Banking Automation Solutions10%3.Other Automation Solutions14%Total100%Digital PaymentSolutions923 mn / 1,095 Mnswitching transactions6
End-to-End Provider of Cash Payment SolutionsEstablished Leadership Position in the ATM Industry“Only” company in India to provide the full range of services in the ATM managed services market*Managed Services (MSP)1SiteSelection2Procurement,Installation3Daily OperationsManagementEnd to end ATMATMs Equipment Supplymanagement solutions4CashManagement5Monitoring, IncidentManagement6Second LineMaintenanceMaintenance of ATM First- &Second-Line ATM MaintenanceIndependent Deployment (IAD)7MIS, Dashboards& ReconciliationATM ManagedServices8ProfitabilityManagementATM Replenishmentand Cash in TransitBreakdown of ATMs & CRMs (as on 31-Dec-21)9Switching/Trnx. Processing10AssetOwnershipRetail Cash Managementor Cash Pickup andDeliveryCash Payment Solution Revenues Mn11,20832,485ATMs &CRMsManaged 57%Services43% OutsourcingBy Service Offering*As per Ken ,485ATMs &CRMsBy Fee Structure56%FixedMonthlyFeeFY19FY20FY219MFY227
End-to-End Provider of Cash Payment SolutionsIn-House Cash Management CapabilitiesSVIL Second largest cash management company in India, in terms of revenue from cash management and number of ATMs replenished1ATMATM replenishment, Completeline maintenancec.46,214ATMs cashreplenishedCash pickup, deposit andiCD servicec.4,210Cash pick-up anddoorstep bankingpointsCash transportation inarmored vehiclesCounting, sorting,reconciliation and vaultservices 20 bnc.1,860475Daily averageamount replenished1Cities and Towns inIndiaVaults and spokelocationsDedicated cash vans usedby banks and financialinstitutions2,513Cash vans Only cash management company that has followed Ministry of Home Affairs (“MHA”) guidelines dated August 8, 2018, and RBI guidelines dated April 6, 2018, ona pan-India basis11.2.Source: Ken Research ReportAs of August, 20218
End-to-end digital payment solutions providerComprehensive Suite of Merchant SolutionsPayment Acceptance(Device-based anddevice-less)Value Added ServicesIntegrated PaymentsSolution (IPS)Merchant Applicationand PortalLoans Against CardReceivablesBilling SoftwareCUG Prepaid &LoyaltyPetroleumFinancial and Operational Metrics for Merchant Services One of the largest deployersof POS terminals atpetroleum outlets in India1Number of PoS Terminals2,27,940GTV through POS Mn2,28,3342,07,335 Pioneered IPS with OMCs1Digital Payment Solution Revenues Mn2,4862,05,7182,140Banking 86 bank partnershipscatering to the POSRetail1,71,809 Team of 250 “feet on street”personnel and 393 ource: Ken Research FY219MFY229
End-to-end digital payments platformsOffering Value Added Services to Monetize POS NetworkContinue to monetise POS network to cross-sell VAS to merchantsMerchant AnalyticsapplicationAt the ForecourtVehicleInsuranceCash @ POS/ Micro-ATMLoans AgainstCard ReceivablesIn the Sales OfficeCouponsLoyaltyprogramsDomestic MoneyTransferBill PaymentBillingSoftwareContinue to expand Ongo ecosystem and provide a larger suite of VAS that rely on mobile payments &other digital-based services and application10
End-to-end digital payment solutions providerAbility to innovate and offer digital payment solutionsBuilt Omni Channel Payment Platform CapabilitiesCHANNELSATMs and KiosksINTERFACESPOS terminalsMastercard, Visa,American Express,Rupay networksPayment gatewayPayment gatewayportalsMobile walletRemote paymentAadhar EnabledPayment SystemImmediatePayment ServiceNFSUnified PaymentsInterface923 mn /1,095 mnPayment rchantmanagementCardManagementSERVICESAs of 9M FY22 / hip and PinAEPSRFIDQRPAYMENT MODES11
Board of Directors and Senior Management Team Ravi B. Goyal(Chairman &Managing Director) One of the Promoters of the CompanyResponsible for the management of the overall operations of our Company and our SubsidiariesPrior to establishing AGS, founded Advanced Graphic Systems, a proprietary concern, to market computer-aided textile designing software26 years of experience in the field of technologyBoard of DirectorsSudipBandyopadhyayIndependent, NonExecutive DirectorVijay ChughIndependent, NonExecutive Director Rahul Narain Bhagat Independent, NonExecutive DirectorSubrata Kumar MitraIndependent, NonExecutive DirectorAnupama R. GoyalNon-Independent,Non-ExecutiveDirectorOver 32 years of experience at RBIServes as a director on the boards ofITSL and SVILOver three decades of experience inconsumer banking Experienced in the fields ofmanagement and finance Director on the board of company’sSubsidiary, ITSL Stanley Johnson PExecutive Director Vinayak R. GoyalExecutive DirectorServes as a director on the boards ofthe company’s subsidiaries, ITSL andSVIL 26 years of experience in thepayment industry strengthened &expanded our banking outsourcingoperationsDrives strategic and businessinitiativesNon-executive director on board ofITSLManagement TeamSaurabh Lal CFO of AGS and ourSubsidiary, SVIL 15 years of experience inthe financial serviceIndustryP K RajnarayanHead –Retail SalesBusinessRicardos El Khoury CEO & Director ofNovus SGP(Subsidiary)28 years of experience ininformation technologysectorNikesh SamaiyaExecutive VicePresident –Technology 25 years of experience insales & businessdevelopmentAshish MehtaHead – IT andInfrastructure Sanjiv TewariHead – BankingService 23 years of experience insales & service ofconsumerelectronics/appliances &fintech companySudheerParappurathHead – Risk &Operations ofSubsidiary, ITSLShailesh S Shetty Managing Director ofSVIL (Subsidiary) 25 years of experience inthe fields of supply chainand after-sales serviceSatish ZopeHead - PetroleumBusiness 27 years of experience insales 18 years of experience inIT & software development 21 years of management& technical experience inbanking and paymentIndustry 26 years of experience inpayment industry12
WAY FORWARD
Fast Growing Digital Payments IndustryDigital Payments growth momentum expected to continueExtraordinary growth in Indian digital payment space in the last few yearsDigital Payment IndustryNumber of PoS TerminalsIn ‘000Debit Cards4,720Expected togrow at aCAGR of 11%in the next 8FY18FY19FY20FY21Growth 8.3%24.7%144FY16Source: Ken Research ReportFY18Number of Prepaid Cards Issued (Mn)Number of Transactionsin FY21 (Mn)BHIM AppExpected togrow at aCAGR of23.5% in thenext 5 Years6,3094,5901,591AePS443,284FY21Payment ModesTransaction Volume (Bn)Credit Cards7,3232,407FY18Payment Services MarketTransaction Value on POS ( Bn)333433465FY17FY18FY19FY20941FY2114
Strong Growth in the Cash Payments IndustryDespite the growth of cashless transactions, people in India rely heavily on cash transactions in their day-to-day lifeCash Payments IndustryCash Transactions account for 89%of all transactions (FY21)Cash withdrawal from ATMs back to PreCovid levelsCash in circulation as a % of GDPNon-Cash ModeIn Trillion2911%# of transactions (million)25211889%11%11%12%FY18FY19FY20Pre COVID-1970015%Post COVID-19Impact of Covid 19,Lockdown & Mar-20ATMs per 100k people35141 Japan10290RussiaIndiaBrazil80USAIndia15Source: Ken Research ReportBrazilRussia# CRMs in 0Nov-20Jan-21Mar-21Number of ATMs are expected togrow driven by CRMsATMs per 1000 sq. km.ATM Penetration (2020)Japan[VALUE]Mar-21[VALUE]Sep-21500200Cash ModeUSAEasing Restrictions &Unlock Phase26181114Increase in interchange fee pertransaction from 15 to 17 forfinancial transactions by RBI(effective from August 1, 2021) toenhance margins6548208FY17FY18FY19FY20FY21Cash deposit interoperability to give a boostto CRMs. CRMs are expected to grow at aCAGR of 23% to in the next 5 YearsWith additional scope of servicethere is an increase revenue perATM per month with implementationof RBI & MHA guidelines andCassette swap15
Building Blocks to Implement Future StrategyGrow and scale-up DigitalEnhance IntegratedTechnology Payments PlatformPivot from Payments-as-a-Service toPayments-as-a-Convenience throughOngo Card and EcosystemGrow Digital PaymentSolutions BusinessContinued focus on CashContinued focus on ATM & CRMOutsourcing& Managed ServicesFocus on CashManagement Services(Offer robust infrastructure & services incompliance with MHA & RBI guidelines)International Expansion(Solutions including POS, IPS and valueadded services)Be a leader in payment solutions by delivering secure, innovative products that engage a customer across the productvalue chain in a cost-effective manner16
KEY HIGHLIGHTS OF THEQUARTER
Performance Highlights: Q3 & 9M FY ‘22 MnTotal IncomeEBITDA25.9% 5.1%25.6%4,9304,693Quarterly12.1% 4.9%12.7%626567Q3FY22Q3FY21Total Income 0% 26.5%13,92312,3891,6768589MFY229MFY219MFY22 Healthy order book with all leading OMCs in India underDigital Payments; and with Banks under ATMoutsourcing and Banking Services Business Redeemed outstanding NCDs worth 5,500 Mn, whichwas part of the Objects of the Offer. The main objectiveof the OFS in the IPO was that the promoter of AGS, Mr.Ravi B. Goyal will sell shares, but the net proceeds ( 6,500 million) will be infused into the company by buyingthe CCPS from company. This has been fulfilled onJanuary 29, 2022, even before the listing. 95.3%3,5412,8009MFY21 59% YoY jump in 9MFY22 Digital Payment SolutionsRevenues 10.4%1,2761,216Q3FY219 MonthsEBIT9MFY219MFY22 In Q4FY22, the company’s finance cost is expected toremain elevated due to make-whole provision for theNCDs. However, the company will save around 1,000Mn in interest costs which will be reflective in FY2318
Consolidated Statement of Profit and Loss(In Mn)RevenueOther IncomeTotal IncomeQ3FY224,848824,930Q3FY214,630624,693Cost of Raw MaterialsPurchase of Traded GoodsDecrease/Increase in InventorySub-contracting ExpensesEmployee CostOther ExpensesTotal Expenses before Interest, Depreciation ,6543,477EBITDA1,2761,216Finance Costs609254DepreciationEBITAdd: Share of Associate Profit / (Loss)PBT650180186493130313Tax Expense:Current TaxAdjustment of TaxDeferred Tax (credit)/chargeTotal 0Earnings per equity shareBasic earnings per share ( )Diluted earnings per share ( tion of NCDsworth 5,500 Mn inJan-22, will savearound 1,000 Mn ininterest costs whichwill be reflective inFY2342%30%376%19
HISTORICAL FINANCIALS
Established track record of delivering robust financial performance as well as continued growthRevenue from operations Breakdown14.3%15.6%ServiceRevenue88.2%12.4% 229MFY22FY1914.8%12.6%75.7%Payment SolutionsBanking AutomationOther Automation18,335ATM & Management ServicesRevenue from ProductsDigital Payment ServicesCash Management ServicesAMC Services and upgradesTotal Income18,23647.1%12.9%17.2%70.8%12.6%EBITDA & EBITDA Margin17,9727624,9548304,76713,923 MnProfit after 219MFY22FY19FY20FY21Notes: 1. Amount in million; Certain figures have been rounded off to the nearest million (mn) with zero or one decimal2. FY19 figures have been reported as per applicable accounting standards in force in the corresponding accounting year9MFY22FY19FY20FY219MFY2221
Consolidated Summary Statement of Profit and Loss(In mn)Revenue from operationsOther incomeTotal .752800.767,837.8413,380.65Earnings before interest, tax, depreciation and amortisation (EBITDA)3,548.754,767.604,954.61Finance costsDepreciation and amortization 501,304.012,446.651,203.95Share of net profit (loss) of associateProfit before taxTax expense:Current taxAdjustment of tax relating to previous yearsDeferred tax (credit)/chargeTotal tax 2.00365.10Profit for the year attributable to equity 4.624.557.006.90ExpensesCost of raw materials and components consumedPurchase of traded goods(Increase)/ Decrease in inventories of finished goods and traded goodsEmployee benefit expensesOther expensesTotal expenses before Interest, depreciation and amortizationEarnings per equity shareBasic earnings per share ( )Diluted earnings per share ( )22
Consolidated Summary Statement of Assets and Liabilities(In mn)Non-current assetsProperty, plant and equipmentRight – of – use AssetCapital work-in-progressGoodwillOther intangible assetsIntangible assets under developmentFinancial assetsInvestmentsOther financial assetsDeferred tax assets (net)Other non-current assetsOther non-current tax assets (net)Total non-current 1339.4413,884.95Current assetsInventoriesFinancial assetsInvestmentTrade ReceivablesUnbilled ReceivablesCash and cash equivalentsBank balances other than aboveOther financial assetsOther current assetsOther current tax assets (net)Total current 7106.11652.69199.03708.36104.368,569.00Total assets29,138.3222,413.95(In mn)Equity and liabilitiesEquityEquity share capitalOther equityTotal EquityNon-current liabilitiesFinancial liabilitiesBorrowingsLease LiabilitiesOther financial liabilitiesProvisionsOther non-current liabilitiesTotal non-current ,668.201,305.873,300.071,519.4192.17138.10Current liabilitiesFinancial liabilitiesBorrowingsLease LiabilitiesTrade payablesTotal outstanding dues of micro enterprises and smallenterpriseTotal outstanding dues of creditors other than microenterprises & small EnterprisesOther financial liabilitiesOther current liabilitiesProvisionsTotal current 947.49800.78776.38231.2410,249.38Total equity and liabilities29,138.3222,413.9523
Consolidated Summary Statement of Cash Flows(In mn)FY21FY20(A) Cash flow from operating activitiesNet restated profit/(loss) before 74,852.24Changes in working capital :Decrease / (increase) in inventories(Increase) / decrease in trade receivables(80.82)279.68(1,925.14)(539.38)Decrease / (increase) in loans and other financial assets35.7714.73(Increase) / decrease in other current assets96.99(302.12)Decrease in other non-current assets98.7412.50Increase in trade payables644.13(77.09)Increase in other current liabilities946.09416.48(Decrease) / increase in other non-current liabilities(87.83)(13.41)Increase in provisionsCash generated from operationsDirect taxes paid (net)Net cash flow generated from operating activities 024,460.31(B) Cash flow from investing activitiesNet cash (used in) investing activities (B)(1,547.82)(2,906.62)(C) Cash flow from financing activitiesNet cash (used in) / generated from financing activities (C)3,204.92(1,717.57)Net increase / (decrease) in cash and cash equivalents (A B C)5,817.12(163.88)Cash and cash equivalents at the beginning of the yearCash and cash equivalents at the end of the year106.11269.995,923.23106.1124
ANNEXURE
Banking Automation, and Other Automation Solutions - Business OverviewBanking Automation Solutions ATMs and Cash Dispensers: Enable customers to access their bank accounts tomake cash withdrawals (or credit card cash advances), fund transfers, checkbalances etc. CRMs: Allow a bank’s customer to make deposits which are sorted into variousdenominations and are used for cash dispensing Banking Transaction Terminals: Includes a variety of self serving bankingplatforms like automated cheque deposit terminals and multifunction self-servicekiosks Note Sorters: Authenticate and classify banknotes, and can perform functionssuch as note counting, value counting and sorting notes by denomination etc. Annual Maintenance: Second line maintenance for ATMs and CRMs Upgrades and Software: Hardware and software upgrades services for ATMsand CRMs Spare Parts: Stocks spare parts of ATMs and other automated productsOther Automation SolutionsRetail rations Cash Billing Terminals: Offers cash billing terminals and solutions to retailestablishments, such as supermarkets, multiplexes, etc. Digital Signage Software: To mange customized marketing and informationmessages, scheduling, logs & alerts etc. Services: Provides maintenance services, software customization, hardwareupgrades and spare parts for repairs of POS terminals and other automationequipment Products: Offers “forecourt controller”, a device which interfaces with variousdispensers and tanks in the outlet Services: (1) Operational implementation & support services; (2) maintenancesupport; (3) helpdesk & remote support; (4) software upgrade & customization Colour Sector Operations2,461Offers automatic paint dispensers to deliver the right shade of colourManages the entire lifecycle of the machines including deployment,implementation and maintenance2,8182,4852,1092,1111,5981,372Revenues( Mn)FY19FY20FY219MFY221,960Revenues( Mn)FY19FY20FY219MFY2226
AGS Transact Technologies - Corporate Structure66.07%Promoters andPromoter Group100%AGS TransactTechnologies Ltd.100%100%Global Transact ServicesPte. Ltd90%Securevalue India Ltd.(Cash Management)India TransactServices Ltd.(Digital payment system)Novus Technologies Pte. Ltd.(Cash and Digital Payment)100%Novus Technologies(Cambodia) CompanyLtd.99.99%Novus TransactPhilippines Corp.100%Novustech TransactLanka (Pvt.) Ltd.45%PT. Nova DigitalPerkasaAssociateDomestic Operations AGS Community Foundation - Subsidiary of AGSTTLInternational Operations27
Use of IPO proceedsIPO – Offer ofSaleIPO Net Proceeds of 6,500 millionSale of CCPS ofVEPL Shares toPromoterPromoterConsideration amounting to 6,500 millionAGS TransactTechnologiesLimitedRepayment of NCDs of 5,500 millionplus accrued interestNCD HoldersThe Company has redeemed outstanding NCDs, which was part of the Objects of the Offer. The main objective of the OFS in the IPO was that the promoter ofAGS, Mr. Ravi B. Goyal will sell shares but the net proceeds ( 6,500 million) will be infused into the company by buying the CCPS from company. This has beenfulfilled on January 29, 2022, even before the listing. As a result, the company will save around 1,000 Mn in interest costs which will be reflective in FY2328
THANK YOUAGS Transact Technologies LimitedCIN: L72200MH2002PLC138213Strategic Growth Advisors Pvt Ltd.CIN: U74140MH2010PTC204285Ms. Sneha KadamCompany Secretary & Compliance OfficerEmail id: ipocompliance@agsindia.comTel No: 022 - 71818181Shikha Puri / Aakash MehtaEmail id: shikha.puri@sgapl.net / aakash.mehta@sgapl.netTel No: 91 98192 82743 / 91 98191 78243
Payment gateway Remote payment Mobile wallet Cards Chip and Pin RFID QR BHIM UPI AEPS ATMs and Kiosks POS terminals Built Omni Channel Payment Platform Capabilities Payment gateway portals Mastercard, Visa, American Express, Rupay networks NFS Unified Payments . Payment Services Market Digital Payment Industry 1,591 3,299 4,601 2,407 5,935 .
