UDSNSE27 January 2025

Updater Services Limited has informed the Exchange about Investor Presentation

Updater Services Limited

27.01.2025

To: BSE Limited (BSE) Corporate Relationship Department Phiroze Jeejeebhoy Towers, 25th Floor, Dalal Street, Mumbai- 400001

BSE Scrip Code: 543996

Dear Sir / Madam,

Redefining Business Services

To: National Stock Exchange of India Limited (NSE) Listing Department Exchange Plaza, 5th Floor, Plot No. C/1, G Block, Bandra Kurla Complex, Bandra (East), Mumbai — 400051

NSE Code: UDS

Sub:

Investor Presentation – Q3 & Nine Months - Financial Highlights FY 2024-25

Please find enclosed a copy of Investor Presentation on Q3

and Nine Months - Financial

Highlights FY 2024-25. The Copy of Investor Presentation will also be available on the website of the

company at www.uds.in

Kindly take the above information on your records.

Thanking you,

Yours faithfully For Updater Services Limited

Sandhya Saravanan

Company Secretary and Compliance Officer

Updater Services Limited +91 44 2446 3234 I 0333 I sales@uds.in I facility@uds.in I www.uds.in I CIN L74140TN2003PLC051955 Corp.& Regd. Office: 1st Floor, No.42, Gandhi Mandapam Road, Kotturpuram, Chennai - 600085

Our Values: happy people I clear purpose I better everyday I do good I balance all

Updater Services Limited

Leading Integrated Business Service Platform

Investor Presentation January 2025

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 inducement to sell or issue, or any solicitation of any offer or recommendation to purchase or subscribe

for, any securities of the Company, nor shall it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment thereof. In

particular, this presentation is not intended to be a prospectus or offer document under the applicable laws of any jurisdiction, including India. No representation or warranty, express or

implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such

information and opinions are in all events not current after the date of this presentation. There is no obligation to update, modify or amend this communication or to otherwise notify

the recipient if the information, opinion, projection, forecast or estimate set forth herein, changes or subsequently becomes inaccurate.

Certain statements contained in this presentation that are not statements of historical fact constitute “forward-looking statements.” You can generally identify forward looking

statements by terminology such as “aim”, “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “objective”, “goal”, “plan”, “potential”, “project”, “pursue”,

“shall”, “should”, “will”, “would”, or other words or phrases of similar import. These forward-looking statements involve known and unknown risks, uncertainties, assumptions and other

factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied

by such forward-looking statements or other projections. Important factors that could cause actual results, performance or achievements to differ materially include, among others: (a)

our ability to successfully implement our strategy, (b) our growth and expansion plans, (c) changes in regulatory norms applicable to the Company, (d) technological changes, (e)

investment income, (f) cash flow projections, and (g) other risks.

This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. The Company

may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such change or changes.

Contents

1 Q3 & 9M FY25 Financial Highlights

Segment Highlights

3 Why UDS

Key Growth Strategies

Industry Outlook

6 Historical Financials

Q3 & 9M FY25 Financial Highlights

Q3 & 9M FY25 Key Performance Highlights

Strong Operating Performance and Key Highlights during the Quarter

9M FY25 Financial & Other Highlights

BSS Segment continued its record revenue growth performance with 19% growth YoY while overall revenue continued its growth momentum with 12% growth YoY

YTD FY’25 EBITDA Margin at 7.3% with absolute EBITDA growth of 34% on a YoY basis

Return of Equity (RoE) as of Dec’24 is 14.6%, significant increase from March’24 base highlighting value maximization to shareholders

Since listing the company has demonstrated QoQ PAT improvement both by means of revenue increase and operational efficiency improvement

Denave has opened an office in Korea with more focus on client across APAC region. Won the Great place to work for the 4th time consecutively and was recognized as most preferred workplaces in IT/ITES for 2024/5 by Marksmen Daily

95+ new logos added mainly in sectors like - technology, financial services, e-commerce and telecommunications

New clients added includes prestigious ones like India International Convention & Exhibition Centre, TP Solar, Tata EV, Meta, SIFY & Schneider etc.

Approval of Merger of Wynwy & ITSS two of our subsidiaries in Q3 will further optimize our cost of operations

Total Revenue ₹ 20,461Mn.

EBITDA ₹ 1,499 Mn.

PAT ₹ 848 Mn.

Head Count 68,815

12%

34%

101%

Secured Air India Express Contracts for 7 airports in Q3

*New Logo Addition 95

*New logos having value addition more than INR 5 Lakhs

Q3 FY25 Financial Highlights

Total Revenue (₹ Mn.)

+9%

6,454

7,006

Total Revenue (IFM) (₹ Mn.)

65%

4,166

+9%

65%

4,554

Total Revenue (BSS) (₹ Mn.)

35%

2,288

+7%

35%

2,451

Q3FY24

Q3FY25

Q3FY24

Q3FY25

Q3FY24

Q3FY25

EBITDA (₹ Mn.)

+18%

6.8%

441

220

221

Q3FY24

IFM BSS

7.4%

519

305

214

Q3FY25

Profit After Tax (PAT) (₹ Mn.)

3.2%

205

+52%

4.4%

312

Earnings Per Share (₹)

+48%

4.61

3.12

Q3FY24

Q3FY25

Q3FY24

Q3FY25

EBITDA without finance income for Q3’25 is 486 (₹ Mn.) and Q3’24 is 392 (₹ Mn.). EBITDA w/o finance income increase by 24% on QoQ.

% of Sales

Margin (%)

9M FY25 Financial Highlights

Total Revenue (₹ Mn.)

Revenue (IFM) (₹ Mn.)^

Revenue (BSS) (₹ Mn.)^

+12%

18,306

20,461

67%

65%

33%

35%

6.1%

+8%

+19%

12,259

13,287

6,048

7,175

9MFY24

9MFY25

9MFY24

9MFY25

9MFY24

9MFY25

^EBITDA (₹ Mn.)

+34%

7.3%

1,499

816

684

9MFY25

IFM BSS

1,120 557 563

9MFY24

Profit After Tax (PAT) (₹ Mn.)

2.3%

4.2%

+101%

421

Earnings Per Share (₹)

+71%

12.60

RoCE (%) & RoE (%)

Net Debt / Equity

23.4%

ROE

ROCE 22.3%

14.6%

UDS is a Net Cash Company

848

7.39

8.8%

9MFY24

Mar-24 EBITDA without finance income for YTD FY’25 is 1362 (₹ Mn.) and YTD FY’24 is 1047 (₹ Mn.). EBITDA w/o finance income increase by 30% on YoY RoE = Annualised PAT / Avg. Equity RoCE = Annualized EBIT / Average Capital Employed For calculation of Net Debt, Cash & Cash equivalents(incl. bank balances) and bank deposits for more than 12 months is considered

9MFY25

9MFY24

Dec-24

-0.4 Mar-24

-0.2

Dec-24

% of Sales

Margin (%)

Segment Wise Highlights - IFM

Segment Wise Split

Sector Wise Revenue Contribution

Customer Concentration

1.1%

8.1%

1.9%

88.9%

IFMS Hospitality

F&B Others

5.6%

5.0%

1.6%

2.9%

9.3%

13.0%

25.3%

Industrial Others BFSI Real Estate

Health Care IT/ITES Education Hospitality

37.3%

38.4%

33.6%

28.0%

Top 10

Next 40

Others

Long standing relationships with customers having a 95% Retention over a 5-year window

*Note all data are as on 9M FY25

Segment Wise Highlights - BSS

Segment Wise Split

Sector Wise Revenue Contribution

Customer Concentration

4.8%

10.6%

5.8%

7.7%

2.8%

9.5%

14.4%

39.2%

27.0%

71.1%

Sales Enablement Services Audit & Assurances Employee Background Verification Check Services Warehouse Management and Niche Logistics Solutions Airport Ground Handling Services

34.0%

IT/ITES RETAIL BFSI

Real Estate Others

11.5%

61.5%

Top 10

Next 40

Others

Long standing relationships with customers having a 93% Retention over a 5-year window

*Note all data are as on 9M FY25

Q3 & 9M FY25 Financial Highlights

Particulars (₹ Mn.)

Q3 FY25

Q3 FY24

Total revenue from operations

Cost of services and other raw material

Employee benefits expense (incl. ESOP)

Impairment losses on financial instrument and contract assets

Other expenses

Fair value changes in liability payable/paid to promoters of acquired subsidiary

Reported EBITDA

Reported EBITDA margin (%)

Depreciation & Amortization (excl. Amortization related to acquisition)

Amortization related to acquisition

EBIT

Finance Cost

Profit before tax

Tax

Reported profit after tax

EPS – Basic ₹

7,005.6

264.0

5,184.3

18.0

1,020.5

0.0

518.9

7.4%

101.4

19.4

398.2

19.9

378.3

66.8

311.5

4.6

6,454.0

275.9

4,709.2

0.1

995.7

31.8

441.2

6.8%

128.0

21.2

292.0

42.5

249.5

44.1

205.4

3.1

Y-o-Y

18%

36%

52%

6,869.2

239.3

5,072.9

34.3

1,016.3

0.0

506.4

7.4%

106.2

17.0

383.2

29.5

353.7

73.7

280.0

4.2

Q2 FY25

Q-o-Q

9M FY25

9M FY24

Y-o-Y

12%

20,461.3

18,306.4

711.5

790.0

15,126.7

13,939.8

52.6

28.5

3,071.1

2,274.8

0.0

153.3

1,499.4

1,120.0

34%

7.3%

300.6

57.9

1,140.9

83.3

1,057.6

209.7

847.9

12.6

6.1%

344.9

71.8

703.2

162.0

541.2

120.2

421.0

7.4

11%

62%

95%

101%

Consolidated Balance Sheet

EQUITY & LIABILITIES (₹ Mn.)

Equity Share Capital

Other Equity

Equity attributable to equity holder of the parent

Non-Controlling Interest

Total Equity

Financial liabilities

(ii) Lease liabilities

(iii)Other Financial Liabilities

Provisions

Deferred Tax Liabilities (Net)

Total Non-Current Liabilities

Financial liabilities

(i) Borrowings

(ii) Lease liabilities

(iii) Trade payables

Sep-24

669.5

8,266.4

8,935.9

60.9

Mar-24

669.5

7,731.9

8,401.3

59.5

8,996.8

8,460.8

409.8

311.6

501.6

109.3

325.2

311.6

496.9

117.0

1,332.4

1,250.7

992.4

178.7

758.2

528.7

192.7

792.6

(iv) Other current financial liabilities

2,063.3

2,828.0

Short Term Provision

Current Tax Liabilities

Other current liabilities

Total Current Liabilities

Total Liabilities

Total Equity and Liabilities

499.6

88.3

876.3

5,456.7

6,789.2

401.3

79.8

813.1

5,636.1

6,886.8

15,786.0

15,348.0

ASSETS ((₹ Mn.) Property, plant and equipment Capital Work in Progress Goodwill Other Intangible assets Intangible asset under development Right-of-use assets Contract Assets Financial Assets (i) Investments (ii)Loans (iii) Other Financial Assets Deferred tax assets (net) Non-current tax assets Other non-current assets Total Non-Current Assets Inventories Contract Assets Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v) Loans (v) Other financial assets Other current assets Total Current Assets Total Assets

Sep-24

690.0 0.5 1,947.9 511.4 9.8 533.3 269.9 0.0 48.1 0.2 309.7 519.3 823.1 56.4 5,719.6 82.5 587.1

10.1 5,465.3 1,156.8 473.7 4.7 1,977.5 308.7 10,066.4 15,786.0

Mar-24

602.7 103.6 1,947.9 555.4 5.2 460.3 226.9

48.1 0.6 232.7 474.5 773.3 54.7 5,485.7 69.9 490.1

16.3 5,039.0 836.2 671.2 6.8 2,476.5 256.3 9,862.3 15,348.0

Consolidated Cash Flow Statement

Cash Flow Statement (₹ Mn.)

Net Profit Before Tax

Adjustments for: Non - Cash Items / Other Investment or Financial Items

Operating profit before working capital changes

Changes in working capital

Cash generated from Operations

Direct taxes paid (net of refund)

Net Cash from Operating Activities

Net Cash from Investing Activities

Net Cash from Financing Activities

Net Decrease in Cash and Cash equivalents

Add: Cash & Cash equivalents at the beginning of the period

Cash & Cash equivalents at the end of the period

Sep-24

679.3

239.0

918.3

-328.4

589.9

236.6

353.3

-344.4

311.7

320.6

836.1

1,156.7

Sep-23

291.7

518.5

810.3

-482.0

328.3

174.3

154.0

-4,494.4

3,926.8

-413.6

1,146.7

733.1

Why UDS…

About Us

Leading Integrated Business Services Platform - Unique mix of businesses transforming from only IFM to integrated platform with BSS

Awards and Certifications

Transformed into an integrated business services platform offering IFM services and BSS led through strategic acquisitions and Organic Growth

PAN-India presence with large and efficient workforce coupled with strong recruitment capabilities

Track record of successful acquisitions funded through internal accruals and successful integration

Longstanding relationship with customers across diverse sectors leading to recurring business

Technology at the forefront of current and future business

Highly experienced professionally managed team

2023-24

Journey so far

IFM & Others

BSS

Soft Services

Staffing

Maintenance Contracts

Other Allied Services

1990

100% IFM

Mailroom Management

FY2007

Entered mail room management with acquisition of majority stake in Avon Solutions and Logistics

Airport Ground Handling

FY2019

Entered the business with acquisition of majority stake in Global Flight Handling Services in 2018

Catering

FY2018

Entered Catering with acquisition of majority stake in Fusion Foods in 2017

Feminine Hygiene

Employee Background Check , Audit & Assurance

FY2020

Entered hygiene segment with acquisition of majority stake in Washroom Hygiene Concepts in 2019

Entered Audit and Employee Background Checks with acquisition of majority stake in Matrix Business Services

BPO-tele calling

FY2023

Acquired majority stake in Athena BPO (Sales Enablement)

Sales Enablement

FY2022

Entered Sales Enablement segment with acquisition of majority stake in Denave

FY2024

Took the company into IPO and raised INR 640 cr

66% IFM

34% BSS

Note: The years mentioned are Financial Years Above mentioned years reflect the date of the agreements to acquire and actual investment was made plus additional stakes were acquired in subsequent years All the highlighted blocks are the businesses added through acquisitions

Integrated Facility Management (IFM) & Other Services

Soft Services

Housekeeping and cleaning services, disinfecting, and sanitizing services, pest control, horticulture, and facade cleaning

Production Support Services

Material handling, material movement, on-site warehouse management, stores and inventory management, production support activities, and equipment maintenance

Engineering Services

Institutional Catering

Mechanical, electrical, and plumbing (MEP) services. Also referred to as hard services, include maintenance, repair, overhaul and performance management of heating, ventilation, and air conditioning (HVAC)

Catering and food services to corporates, educational institutions, and industrial facilities

Washroom and Feminine Hygiene Care Solutions

Feminine hygiene care solutions and products and services such as LFCB, SPVM, sanitizers and washroom solutions

Warehouse Management

General Staffing

Manage customer warehouses and operations within them, which could include material handling, stock keeping, grading, and sorting, breaking bulk, repacking, inward and outward dispatches, return logistics

Services where field staff are provided to customers for deployment in various roles and who operate under the customer’s supervision. Integrated Technical Staffing and Solutions, generally comprise recruitment, payroll and human resource services

Others

Technology Services & Procurement Services

Integrated Facility Management (IFM) & Other Services – 65% of Revenues in 9M FY25

Business Support Services (BSS)

Sales Enablement Services

Audit & Assurances

Serving global customers across multiple industries including information technology / information technology enabled services, telecom and other industries, through global delivery centres located in India, Singapore, Malaysia, UK & South Korea and also through partners in other parts of the world. BPO service includes in-bound and outbound telecalling focusing on Chatbots and Virtual assistant support

9M FY25 – 71.1% of Revenues

Services such as supply chain audit including warehouse depot audit, distributer audit, and retail point audit, among others. Provide back-office services related to marketing programs and channel partner claim processing to global customers

Employee Background Verification Check Services

Services comprise address verification, identity verification, educational qualifications verification, employment history verification, legal case history, among others

9M FY25 – 7.7% of Revenues

9M FY25 – 5.8% of Revenues

Mailroom Management and Niche Logistics and Transport Solutions

Leading service provider in India and a pioneer in the mailroom and asset movement business. Leverage this presence to also offer services such as office supplies management, courier and transport including handling warehouse among others

9M FY25 – 10.6% of Revenues

Airport Ground Handling Services

Services include baggage and cargo handling, passenger movement, and aircraft turnaround, among others. Also provide meet and greet services at various airports around the country. We are currently operational in 22 Airports

9M FY25 – 4.8% of Revenues

Business Support Services (BSS) – 35% of Revenues in 9M FY25

*All Percentages are in terms of BSS Segment Revenue – 35% includes other BSS service as well

Leading Integrated Business Services Platform

Updater Services Limited

Integrated Facility Management (IFM) & Other Services

Business Support Services (BSS)

IFM | Integrated Facility Management

BSS | Employee Background Verification (Matrix Business Services)

BSS | Audit & Assurance

(Matrix Business Services)

BSS | Mailroom Management & Niche Logistics and Transport

(Avon Solutions & Logistics)

BSS | Sales Enablement

(Denave & Athena BPO)

BSS | Airport Ground Handling

(Global Flight Handling Services)

UDS’s / Subsidiary’s Position in the Industry

Note: The rankings are based on market share for the financial year ended Mar 31, 2023 as per Frost & Sullivan report

PAN INDIA presence with large and efficient workforce

Customer Locations 5,102

(excluding staffing locations)

Managed Space 201.12 mn sq. ft.

Points of Presence 121

In India

Overseas points of presence 18

1) Data as of March 31, 2024| 2) Map is not to scale

Widespread network with 139 points of presence…

...gives the company competitive advantage over its peers in several aspects

UDS State wise presence in India

Preferred Service Provider

Ability to provide services for companies with presence across multiple locations

Quick Recruitment Capabilities

Ability to recruit, train and deploy resources at various locations in a short span of time

UDS also has presence in South- East Asia, South Korea and Europe

Efficient Monitoring

Ease of monitoring employees at different customer locations and administer to the clients’ needs

Easy Repositioning

In-house recruitment model coupled with wide presence enables the company to ramp up/down the activities effectively and helps in easy repositioning of resources across different locations

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 and supplementary to the company’s existing services portfolio ✓ All acquisitions are selectively picked and have added either New Customer Segment | New Service Line | New Geography

Service Portfolio Before 2019

Current Service Portfolio

Integrated Facility Management

Engineering Services

Staffing and Soft Services

Engineering Services

Staffing and Soft Services

Feminine Hygiene

Production Support Services

Catering

Production Support Services

Catering

Business Support Services

Mailroom Management

Airport Ground Handling

Mailroom Management

Airport Ground Handling

Audit & Assurance

Sales Enablement

Employee Background Checks

Field Marketing & Marketing Services

Note: Shaded boxes represent the business segments which UDS entered through acquisitions

Matrix

Year of acquisition & Stake

Matrix is a market leader in providing assurance services to employers, such as residence checks, education and documentation verifications, character reference verifications, and ID proofs, among other things. Matrix is a strong partner for HR functions, allowing them to quickly provide ready to onboard candidates for their businesses. The entire service offering is built on an in-house technology platform called 'MatEx,' which enables and ensures digitized end-to-end monitoring of the entire process

• Mr. P. C. Balasubramanian, one of the founding directors of Matrix, is now an advisor focusing on group integration at

UDS)

75.00% FY 2020

100.00% June’ 23

•

EBITDA (~3% CAGR) +3%

138.6

124.3

Key Segments in which Matrix Operates includes Employee Background Verification and Supply Chain Auditing and Assurance

Key Customers include Reliance Industries, P&G, TVS Motors amongst others

Matrix at a Glance

SERVICES PROVIDED

Audit and Assurance

Employee Background Verification

FY20

FY24

Denave

Year of acquisition & Stake

Denave is the pioneer of B2B sales enablement strategy. Today, the Company works closely with industry- leading clients to implement a transformational approach aimed at enabling enterprises to grow sustainably, build a competitive edge, and drive positive impacts across the value chain

Mr. Snehashish Bhattacharjee is the Global CEO & Co-founder of Denave

54.07%

FY 2022

100.00%

Sept’24

EBITDA (~32% CAGR)

293.8

+32%

168.0

SCAN To discover the growth of Denave

• Revenue Development: Sales Intelligence, Intelligent Data Services, Digital

Marketing, Tele sales, Webinar Marketing, Field Sales

Services

• Brand Activation: Digital Marketing, Merchandising & Audit, BTL Marketing & Events

• Revenue Enablement: Sales Training, Business Analytics, Tech & Platforms

FY22

FY24

Artificial Intelligence

Demand Generation

Market Expansion

Revenue Maximization

Sales Ecosystem Development

Solutions Offered by Denave

Athena

Year of acquisition & Stake

57.00%

FY 2023

73.5%

Jun’24

EBITDA (~10% CAGR)

+10%

335.0

304.0

One of the oldest domestic BPOs in India and has grown rapidly over last 16 years with the current footprint spanning 2 cities – Mumbai and Bangalore with 3 operational centres. The company has over 3,000 billable seats in these locations and serves a galaxy of reputed clients in diverse sectors like Banking, Telecom, Insurance and FMCG

Mrs. Elizabeth Jacob is the Co-founder of Athena with the remaining 26.5% stake

SERVICES PROVIDED

Inbound Call Center Services

Outbound Call Center Services

Back Office Support Services

BPO Data Processing Services

Contact Center Setup Consulting Services

✓ These 3 acquisitions have added new service lines, given access to new set of customers and have

FY23

FY24

added to margin profile

✓ Value accretive acquisitions at reasonable valuations ✓ No external equity financing for acquisitions

Experienced Board…

Strong standards of corporate governance with experienced directors on board

✓ One of the founding Directors of the Company

✓ 30 years of experience in the service sector as an

entrepreneur

Raghunandana Tangirala Promoter, Chairman of the Board & MD

✓ Focuses primarily on corporate governance, organizational development, capital allocation and strategic growth

Sunil Rewachand Chandiramani Independent Director

✓ Previously been associated with Ziqitza Healthcare, First

Meridian Business Services, Reliance Jio, AGS Transact, Monsanto India, PepsiCo India, Quess Corp, GE Lighting and Blow Past

Amitabh Jaipuria Non Executive Director

✓ Handles corporate affairs, investor relations and key

strategic initiatives at UDS

Amit Choudhary Independent Director

✓ B.Com from Sydenham College of Commerce and Economics, University of Bombay, and Diploma in Systems Management (Honours) from National Institute of Information Technology

✓ Associate member of ICAI

✓ Previously served as a partner at Ernst & Young India

✓ B.Com (Calcutta University) and passed the final examination held by the ICAI and was awarded a proficiency certificate

✓ Previously associated with Procter & Gamble as the group

manager – finance & accounting.

✓ Brings a wealth of experience in economics and policy, having worked with C-suite officials in Asia and the US

✓ Holds a Master’s degree in Applied Economics from the National University of Singapore and Technology Policy from the prestigious University of California, Berkeley

✓ Served as an executive director and a CFO with Dun &

Bradstreet Technologies

✓ Associate member of ICAI

Sangeeta Sumesh Independent Director

✓ Was previously associated with Lovelock & Lewes, Lebara

Foundation, Thales Software India, Tupperware India, Alstom Limited and PWC (Price Waterhouse Coopers)

Jigyasa Sharma Executive Director

Why UDS…

Unique Integrated Business Support Services Platform with widest offerings in the Industry

IFM + BSS

Highly experienced management team with support from PE investors

Long standing presence in India has helped us gain an understanding of the market

Track record of successful acquisition and integration of high margin business segments

Robust and loyal customer base is a significant strategic advantage

Technology at the forefront of our current and future business

Pan India presence with large and efficient workforce coupled with strong recruitment capabilities

Consistently growing business

•

Revenues : 27% CAGR (FY21-24) EBITDA : 30% CAGR (FY21-24) PAT : 12% CAGR (FY21-24)

•

India's Largest one-stop Solution for IFM and Business Services

Unique growth strategy – Organic + Inorganic

Key Growth Strategies

Retain, strengthen and grow customer base

✓ Focus on deepening relationships with existing customers

✓ Increasing wallet share through cross selling

✓ Leveraging technology to improve service delivery

Grow market share in key segments

✓ Existing customer

mining

✓ Business development using strong marketing skills and technology

Introduce new products and services

✓ Catering to existing and new customer segments

✓ Entering segments that are potentially large and margin accretive

Continue to improve operating margins

✓ Changing business

mix

✓ Improving Operating

leverage

✓ Using technology to improve service delivery

Pursue Inorganic Growth

✓ Strategic acquisitions

of high margin businesses supplemental to the company’s operations

Industry Outlook

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…

Education 4%

Residential 5%

Healthcare 9%

Government Infrastructure 10%

Retail 10%

Hospitality 11%

Others 2%

Industrial 34%

Commercial Offices 15%

Overall IFM Market

Outsourced 37.7%

FY24 ~ ₹1L crore

In-housed 62.3%

…with a continued trend and preference for outsourcing…

..potentially leading to ~10.2% CAGR for Outsourced IFM during 2023-2029P

#IFM In-house vs Outsourced Services

*Outsourced IFM Market Size (INR Crs)

In-house

Outsourced

36.2%

63.8%

37.7%

62.3%

45.3%

54.7%

FY18

FY 24

FY28P

37,700

2024

#Source: All the graphical representations in this slide are sourced from Industry report by Frost & Sullivan

*Source: IFM Market Size as per Report by Mordor Intelligence

2029P

10%

67,111

... further aided by the move towards organized integrated players

Increase in Share of Outsourced IFM services

Preference for Organized/Integrated Players

IFM: IN-HOUSE VS OUTSOURCED SERVICES

F Y 1 8

F Y 2 4

63.8%

36.2%

62.3%

37.7%

In-House

Outsourced

F Y 2 8 ( P )

54.7%

45.3%

UDS is 2nd Largest in Outsourced IFM

Comp. 1, 4.1% Comp. 2, 2.8%

Others, 80.4%

UDS, 2.8%

Comp. 3, 2.7%

Comp. 4, 2.2%

Comp. 5, 1.8%

Comp. 7, 1.5%

Comp. 6, 1.7%

The market is now shifting from single service contract model to Integrated Services Model

Key Drivers for preference towards organized players

✓ Preference for Organized IFM companies

offering a basket of services

✓ Gaining Cost Efficiencies*

✓ Accelerated use of technology

implementation*

Consolidation on the rise

IFM Un-Organized vs Organized Services

49%

51%

FY23

58%

42%

FY28P

Un-Organized

Organized

Key Drivers for industry consolidation

✓ Addition of more service activities

through mergers or tie-ups with regional

✓ Need for stringent quality standards and

players

Compliance

✓ Regulatory and Capability challenges for

✓ Increased need for mechanized cleaning

smaller companies to scale up

Source: All the graphical representations in this slide are sourced from Industry report by Frost & Sullivan *Source: Industry Report by Frost and Sullivan: https://www.uds.in/webroot/media/relatedlinkfiles/industry-report23-file-5691.pdf

BSS Industry | Emerging Segment with increasing outsourcing potential

Key verticals comprising the ~ ₹ 7,115 Cr BSS Segment and their

Sales Enablement Services (~₹ 2,000 Crs.)

✓ Demand generation ✓ Lead management ✓ Database management services ✓ Digital marketing ✓ Sales and retail analytics ✓ Field force management ✓ Field marketing services and ✓ Outbound tele-sales

pie share

Business Process Audits & Assurance (~₹ 270 Crs.)

✓ Supply Chain Audits ✓ Warehouse Audits ✓ Distributor Audits ✓ Retail Point Audits ✓ Scheme Audits and Processing for Distributors/Retailers

Airport Ground Handling (~₹ 2,900 Crs.)

✓ Aircraft turnaround services ✓ Baggage and Cargo Loading / Unloading

✓ Terminal Service ✓ Ramp Handling ✓ ancillary support services to aircrafts (ground power units, ground air conditioning units)

Employee Background Verification (~₹ 1,350 Crs.)

✓ Document Verification ✓ Criminal Background Check ✓ Education & Employment Verification ✓ Credit checks

Mailroom Management / Logistics & Warehousing (~₹ 550 Crs.) ✓ Facilitating and coordinating inbound and outbound mail, letters, packages ✓ Niche cargo and logistics solutions ✓ Warehousing is currently experiencing unprecedented demand

Note: Only the 5 abovementioned services are considered for arriving at the market size Industry Report: https://www.uds.in/webroot/media/relatedlinkfiles/industry-report23-file-5691.pdf

Source: Frost & Sullivan report

Driven by growth in these verticals the BSS segment is expected to grow at ~15.3% CAGR during FY23-FY28P

BSS Market Size (₹ Crs.)

+15.3%

14,478

+8.1%

7,115

4,814

2018

2023

2028P

UDS well placed with wide service offerings, onboarded through acquisitions

Sales Enablement Services

Employee Background Verification

Mailroom and Warehouse Management

Business Process Audits & Assurance

Airport Ground Handling

Growth Trend (₹ Crs.)

4,517

3,152

895

560

5,355

2,010

1,095

1,350

898

545

400

270

184

2,267

2,940

2018

2023

2028P

2018

2023

2028P

2018

2023

2028P

2018

2023

2028P

2018

2023

2028P

CAGR FY18-23: 12.9% | FY23-28: 17.6%

CAGR FY18-23: 8.5% | FY23-28: 18.5%

CAGR FY18-23: 6.4% | FY23-28: 10.4%

CAGR FY18-23: 8.0% | FY23-28: 15.7%

CAGR FY18-23: 5.3%* | FY23-28: 12.7%

Growth Drivers

✓ Digital communication | Cloud | Digitalization ✓ Analytics and content

intelligence

✓ Technology driven

Database generation ✓ Localization of voice activated instructions

✓ Demand for employee

background screening and data intelligence

✓ Avoiding Discrepancies ✓ Growth in gig economy ✓ New age business models

✓ Demand for end-to-end asset movement services

✓ Need for data security ✓ Cost reductions

*Segment witnessed a negative impact in 2020 due to COVID as airport operations were shut down

✓ Increasing integration

✓ Growth in passenger traffic

with 3rd party companies (suppliers, distributors and outsourced service providers)

✓ Retail industry growth

and tourism

✓ Growth in Meetings,

Conferences and Exhibitions

✓ Focus on airport

infrastructure in India ✓ Regional Connectivity

scheme

Integrated Business Services Platform with wide-range of services offered

FM Company Name

UDS

Competitor 1

Competitor 2

Competitor 3

Competitor 4

Competitor 5

Competitor 6

Competitor 7

Competitor 8

Competitor 9

s e c i v r e S t f o S

✓

s e c i v r e S d r a H

✓

s e c i v r e S m o o R

l i

a M

✓

t r o p p u S n o i t c u d o r P

✓

g n i r e t a C & d o o F

s e c i v r e S

✓

e e y o p m E

s k c e h C d n u o r g k c a B

e n n a h C / e d a r T / l i

a t e R

s e c n a r u s s A & s t i d u A

e n e i g y H e n n m e F

t n e m e b a n E s e a S

✓

d n u o r G t r o p r i A

g n

i l

d n a H

✓

t n e m e g a n a M e t s a W

s e c i v r e S y c n e g r e m E

✓

y t i r u c e S

✓

s t c e j o r P

a t i p a C

✓

g n i f f a t S

✓

Note: The colors show relative strength of the company in a business segment For Soft Services, Hard Services, PSS, and Food & Catering Services the relative strength is based on market shares and for the rest of the business segment, the strength of a company is based on qualitative insights gathered during the research.

Source: The tabular form with services mapping in this slide are sourced from Industry report by Frost & Sullivan

High

Medium

Low

Historical Financials

Demonstrated Record of Robust Financial Performance

Total Revenue (₹ Mn.)

Revenue (IFM) (₹ Mn.)^

Revenue (BSS) (₹ Mn.)^

EBITDA (₹ Mn.)

+27%

21,121

24,680

12,164

14,979

90%

80%

72%

66%

% of Sales

+14%

11,220

12,183

15,288

16,658

10%

20%

28%

34%

6.0%

6.2%

5.0%

6.4%

+89%

8,022

6,089

3,113

1,186

+30%

724

926

1,058

1,578

FY21

FY22

FY23

FY24

FY21

FY22

FY23

FY24

FY21

FY22

FY23

FY24

FY21

FY22

FY23

FY24

Profit After Tax (PAT) (₹ Mn.)

3.9%

3.8%

1.6%

2.7%

+12%

476

574

346

663

666

Cash PAT (₹ Mn.)

+28%

961

1,169

RoCE (%)

Net Debt / Equity

1,409

21.4%

27.2%

24.1%

23.4%

UDS is a Net Cash Company

0.00

-0.09

-0.20

FY21

FY22

FY23

FY24

FY21

FY22

FY23

FY24

FY21

FY22

FY23

FY24

FY21

FY22

FY23

^ Before Adjustments & Eliminations Cash PAT = Reported PAT + Depreciation & Amortization + ESOP Cost + Fair value changes in Liability payable/paid to promoters of acquired subsidiary For calculation of Net Debt, Cash & Cash equivalents(incl. bank balances) and bank deposits for more than 12 months is considered

% of Sales

Margin (%)

-0.39

FY24

Historical Consolidated Profit & Loss Statement

Particulars (₹ Mn.)

Total Revenue from Operations

Cost of Services and Other RM

Employee benefits expense (incl. ESOP)

Impairment losses on financial instrument and contract assets

Other Expenses

Fair value changes in Liability payable/paid to promoters of acquired subsidiary

Reported EBITDA

Reported EBITDA Margin (%)

Depreciation & Amortization (excl. Amortization related to acquisition)

Amortization related to acquisition

EBIT

Finance Cost

Profit before Tax

Tax

Reported Profit After Tax

FY24

24,679.7

1,019.6

18,156.5

69.6

3,749.8

105.9

1,578.3

6.4%

458.9

80.7

1,038.6

192.8

845.8

183.2

662.6

FY23

21,120.9

3,469.3

13,840.6

36.3

2,303.1

413.6

1,058.0

5.0%

308.4

62.1

687.5

145.7

541.9

195.8

346.0

FY22

14,979.4

393.5

11,387.8

60.0

1,998.7

213.5

925.9

6.2%

131.1

34.3

760.6

50.7

709.9

135.7

574.2

FY21

12,163.5

316.1

9,816.6

55.5

1,212.8

38.8

723.8

6.0%

128.0

21.9

574.0

29.7

544.3

68.7

475.6

Historical Consolidated Balance Sheet

EQUITY & LIABILITIES (₹ Mn.)

Equity Share Capital

Other Equity

Equity attributable to equity holder of the parent

Non Controlling Interest

Total Equity

Financial liabilities

(i)

Borrowings

(ii) Lease liabilities

(iii)Other Financial Liabilities

Net Employee Defined benefit liabilities

Deferred Tax Liabilities (Net)

Total Non-Current Liabilities

Financial liabilities

(i) Borrowings

(ii) Lease liabilities

(iii) Trade payables

(iv) Other current financial liabilities

Short Term Provision

Net Employee Defined benefit liabilities

Current Tax Liabilities

Other current liabilities

Total Current Liabilities

Total Liabilities

Mar-24

669.5

7,734.2

8,401.5

59.5

Mar-23

529.5

3,279.4

3,808.9

69.2

Mar-22

528.2

2,876.1

3,404.3

53.1

Mar-21

528.2

2,324.5

2,852.6

69.3

8,460.1

3,878.1

3,457.4

2,921.9

0.0

325.2

311.6

496.9

117.0

179.3

284.2

1,138.7

539.5

157.5

0.0

78.7

804.1

488.0

108.5

1,251.8

2,299.2

1,479.3

528.7

192.7

790.3

2,828.0

401.3

79.77

813.10

5,636.8

6,887.6

1,586.1

149.0

793.4 2,321.9

107.5

222.6

57.3

754.4

586.8

47.7

456.8 1,780.6

99.9

192.5

37.1

607.7

5,992.2

8,291.4

3,809.0

5,288.3

0.0

23.2

84.5

339.6

25.6

472.9

116.1

21.8

318.6 1,174.3

104.9

173.8

38.4

452.4

2,400.2

2,873.0

5,794.9

ASSETS (₹ Mn.) Property, plant and equipment Capital Work in Progress Goodwill Other Intangible assets Intangible asset under development Right-of-use assets Contract Assets Financial Assets (i) Investments (ii)Loans (iii) Other Financial Assets Deferred tax assets (net) Non-current tax assets Other non-current assets Total Non-Current Assets Inventories Contract Assets Financial assets (i) Investments (ii) Trade receivables (iii) Cash and cash equivalents (iv) Bank balances other than (iii) above (v)Loans (v) Other financial assets Other current assets Total Current Assets Total Assets

Total Equity and Liabilities

15,348.0

12,169.5

8,745.7

Mar-23 Mar-22 Mar-21 135.1 332.0 607.9 3.2 41.2 0.0 457.0 1,280.3 1,947.9 120.2 311.3 636.1 0.0 0.0 2.3 36.7 120.4 402.1 108.3 184.8 221.6

Mar-24 602.7 103.6 1,947.9 555.4 5.2 460.3 226.9

48.1 0.6 232.7 475.9 771.8 54.7 5,485.7 69.9 490.1

38.1 1.3 273.9 488.1 547.2 23.7 5,190.0 69.9 668.2

16.3 5,039.0 836.2 671.2 6.8 2,476.5 256.3 9,862.3 15,348.0

0.0 4,277.3 1,146.7 504.3 7.4 66.8 239.1 6,979.5 12,169.5

0.1 1.6 307.3 473.8 519.4 120.8 3,692.9 63.3 560.9

0.0 3,474.9 572.9 137.3 6.3 89.4 147.9 5,052.8 8,745.7

0.1 0.0 139.1 381.1 489.5 8.9 1,879.3 50.1 331.7

40.3 2,689.4 445.8 192.3 4.6 58.2 103.2 3,915.6 36 5,794.9

Historical Consolidated Cash Flow Statement

Cash Flow Statement (₹ Mn.)

Net Profit Before Tax

Adjustments for: Non - Cash Items / Other Investment or Financial Items

Operating profit before working capital changes

Changes in working capital

Cash generated from Operations

Direct taxes paid (net of refund)

Net Cash from Operating Activities

Net Cash from Investing Activities

Net Cash from Financing Activities

Net Decrease in Cash and Cash equivalents

Add: Cash & Cash equivalents at the beginning of the period

Cash & Cash equivalents at the end of the period

FY24

845.8

813.8

1,659.6

-218.2

1,441.4

415.0

1026.4

-3,564.1

2227.2

-310.5

1,146.7

836.1

FY23

541.9

908.0

1,449.9

-98.2

1,351.7

203.9

1,147.8

-1,529.8

955.8

573.8

572.9

1,146.7

FY22

709.4

385.3

1,094.8

-570.4

524.4

213.7

310.7

-471.6

287.9

127.0

445.8

572.9

FY21

544.3

236.0

780.2

629.9

1,410.1

125.1

1,285.0

-165.5

-846.6

272.8

173.0

445.8

THANK YOU

Company: Updater Services Limited

CIN: U74140TN2003PLC051955 Ms. Radha Ramanujan – CFO

radha.ramanujan@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@sgapl.net +91 98333 73300 / +91 91378 91895 Website : www.sgapl.net

← All Transcripts UDS Stock Page →

Updater Services Limited has informed the Exchange about Investor Presentation

Market Movers