RSYSTEMSNSE13 February 2025

R Systems International Limited has informed the Exchange about Investor Presentation

R Systems International Limited

R SYSTEMS INTERNATIONAL LIMITED Corporate Identity Number : L74899DL1993PLC053579 [CMMI Level 5, PCMM Level 5, ISO 9001:2015 & ISO 27001:2013 Company] C-40, Sector-59, NOIDA, Distt. Gautam Budh Nagar, U.P., India – 201 307

Phones: +91-120-4303500 Fax: +91-120-4082699

Email : rsil @rsystems.com www.rsystems.com

Regd. Off.: GF-1-A, 6, Devika Tower, Nehru Place, New Delhi- 110019

REF: SECT/02/2025/10

Date: February 13, 2025

To, The Managing Director National Stock Exchange of India Limited Exchange Plaza, Bandra Kurla Complex, Bandra – East, Mumbai – 400 051

To, The General Manager BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001

NSE Symbol – RSYSTEMS

BSE Scrip Code - 532735

Dear Sir/ Madam,

SUB: SUBMISSION OF PRESENTATION FOR ANALYSTS/ INVESTORS MEETING

This is with reference to our intimation dated February 10, 2025, regarding intimation of Investors/ Analysts call of R Systems International Limited (the “Company”) to be held on Friday, February 14, 2025, at 10:30 AM (IST).

In this regard, as per Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed presentation to be made to Analysts/ Investors on Friday, February 14, 2025 at 10:30 AM (IST) on the financial results for the quarter and year ended on December 31, 2024.

This is for your information and records.

Thanking you,

Yours faithfully,

For R Systems International Limited

Bhasker Dubey (Company Secretary & Compliance Officer)

Q4 & CY 2024 Investor Presentation THANK

By : Nitesh Bansal (CEO & MD)

Disclaimer

“Investors are cautioned that this presentation contains forward-looking statements that

involve risks and uncertainties. The Company undertakes no obligation publicly to update or revise any forward-looking statements, whether because of new information, future

events, or otherwise. Actual results, performance, or achievements could differ from

those expressed or implied in such forward-looking statements.”

Agenda We plan to discuss…

Key Highlights

Building for the Future

Financials Trend

Key Wins

Operations Metrics

Summing Up Looking Ahead

Key Highlights in CY 2024

REVENUE ₹ 17,417M

USD 208 M +

YoY Growth 3.4% (excl. BOT 4.6%)

Adj. EBITDA ₹ 2,910M

USD 34.8 M

Adj. EBITDA Margin 16.7%

YoY Growth 10.0% (excl. BOT 18.7%)

Awards & Recognition

“Strategic Supplier of the Year” Award from Chamberlain Group

Among Top 10 Leading AWS partners to watch in 2024

India’s Top 500 Value Creators 2024 by Dun & Bradstreet

One of the Best Tech Brands 2024 by Times Group

Partnership & Alliances

Financial Performance Q4 2024

Revenue

₹ 4,490M

(US$ 53.2M)

In %

Adj. EBITDA : ₹801M (US$ 9.5M)

Adj. EBITDA Bridge (₹ in M)

QoQ Revenue / Adj. EBITDA Growth

(INR) 1.1% / 0.6%

YoY Revenue / Adj. EBITDA Growth

(INR) 7.8% / 24.6%

15.4

)

M n

17.9

17.8

₹ ( A D T B E

. j

d A

Net Profit

₹ 390M

(US$ 4.6M)

Q4 2023

Q3 2024 *

Q4 2024 *

* Before

payment

considering

expense share-based amounting to Rs. 73 mn in Q4 2024 and 82 mn in Q3 2024, relating to restricted stock units (“RSUs”) granted to the employees. After such expenses, the EBITDA for Q4 2024 is Rs. 728 mn (US$ 8.6 mn) i.e. 16.2% of revenue and for Q3 2024 is Rs. 714 mn (US$ 8.5 mn) i.e. 16.1% of revenue.

Financial Performance CY 2024

Adj. EBITDA : ₹2,910M (US$ 34.8M)

Adj. EBITDA Bridge (₹ in M)

Revenue

₹ 17,417M

(US$ 208.2M)

YoY Revenue Growth

3.4%

(4.6% net of one-time fee#)

YoY Adj. EBITDA Growth

10.0%

(18.7% net of one-time fee#)

Net Profit

₹ 1,312M

(US$ 15.7M)

In %

16.7

15.7

1.0

14.7

Year 2023 #

Year 2024 *

• Before considering share-based payment expense amounting to Rs. 299 mn relating to restricted stock units (“RSUs”) granted to the employees. After such expenses, the EBITDA for Year 2024 is Rs. 2,611 mn (US$ 31.2 mn) i.e. 15.0% of revenue.

# In Year 2023, excluding onetime BOT Fee of ₹ 193 mn (US$ 2.3 mn) for a Knowledge Service Customer, Revenue would be ₹ 16,652 mn (US$ 201.7 mn) with EBITDA of ₹ 2,451mn (US$ 29.7 mn) i.e. 14.7% of revenue and Net Profit of ₹ 1,275 mn (US$ 15.4 mn).

)

M n

₹ ( A D T B E

. j

d A

Equity attributable to shareholders

₹ 6,241M

Key Balance Sheet Data

Cash and bank balance ₹ 1,961M

AR & Unbilled ₹ 3,396M

DSO 61 Days

Financials Trend - Revenue & Adj. EBITDA %age – 8 Qtr.

The 8 Quarter trend of Revenue build up in INR and corresponding Adj. EBITDA percentage

4,900

4,200

3,500

)

M n

₹ ( e u n e v e R

4,573

4,041

4,068

18.8

4,163

4,166

4,320

16.5

4,441

4,490

17.9

17.8

20.0

15.0

)

M n

14.7

15.4

14.4

13.5

2,100

2,800

* After considering share-based payment expense amounting to Rs. 65 mn relating to restricted stock units (“RSUs”) granted to the employees. Excluding such expenses, the EBITDA for Q1-24 is Rs. 600 mn (US$ 7.2 mn) i.e. 14.4% of revenue.

10.0

5.0

1,400

₹ ( A D T B E

. j

d A

Revenue The Company crossed quarterly run rate of ₹ 445 crores

Adj. EBITDA

The Company crossed quarterly run rate of ₹ 80 crores

₹ 4,490 M

₹ 4,041 M

₹ 801 M

₹ 543 M

700

Q1 23

Q2 23

Q3 23*

Q4 23

Q1 24

Q2 24

Q3 24

Q4 24

Revenue

Adj. EBITDA %

Quality of Revenue

Focused approach begins to bear fruits with green shoots in the form of winning deals focused on Cloud, Data & AI

* Excluding one time BOT Fee of ₹ 193 mn (US$ 2.3 mn) for a Knowledge Service Customer, Revenue would be ₹ 4,380 mn (US$ 53.0 mn) with 15.2% EBITDA

EBITDA Analysis

₹ in Mn

Revenue

EBITDA

EBITDA %

Non-Cash RSUs Charge

Adjusted EBITDA (Excluding RSUs charge)

Q4 FY 23

Q4 FY 24

4,163

643

15.4%

643

4,490

728

16.2%

801

FY23

16,845

2,645

15.7%

2,645

FY23*

16,652

2,452

14.7%

2,452

FY24

17,417

2,611

15.0%

299

2,910

Growth %

24.6%

18.7%

Adjusted EBITDA %

15.4%

17.8%

15.7%

14.7%

16.7%

Margin Expansion

240 bps

199 bps

* Excluding onetime BOT Fee of ₹ 193.07 M (US$ 2.3 M) for a Knowledge Service Customer in CY 2023

Operations Metrics

Revenue by Geography* (%)

Client Concentration* (%)

74.0%

74.2%

80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0%

10.1%

8.9%

12.8%

13.3%

3.2%

3.5%

25.0%

20.0%

15.0%

10.0%

5.0%

0.0%

23.7%

22.7%

16.9%

15.1%

12.7%

10.9%

6.6%

5.6%

North America

Europe

SEAC

ROW

Top Client

Top 3 Client

Top 5 Clients

Top 10 Clients

2023

2024

2023

2024

* CY 2023 numbers include one time BOT fees

Utilization (%)

DSO (Days)

86.0%

84.0%

82.0%

80.0%

78.0%

76.0%

74.0%

72.0%

Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024

Building for the future

Go to Market

Delivery Priorities

• GCC offering and playbook for mid size enterprises – to build and scale in partnership with R Systems

•

Joint GTM with some of our key clients creating 360 relationships from being Engineering partners to now also GTM and professional services partners

Offerings & Positioning

• Offerings introduced for

• Modernization Solutions - Transforming

•

Monoliths to Microservices Chaos Engineering Integrated DR Model to enhance business continuity and resilience

Anything to Power BI migrations

Significantly strengthening our partnership solutions positioning & status through certifications

•

• With Optima AI – increasing Gen AI adoption

across the engineering and managed services engagements

• Optima AI has now started building on agentic AI models for business operations with several ROI driven real life use cases where Agentic AI can be used

Leadership

•

Expanded leadership bandwidth with the induction of Ashok Chawla as SVP- Global Delivery, Neeraj Abhyankar to lead Data & Analytics practice and Suresh R K to lead Salesforce practice

This brings total leadership addition in 2024 to 9 key roles, including CCO, CMO, CHRO, CTO- cloud and security, SVP Global Delivery and RMG lead – who have been inducted during the year

Key Wins Q4 2024

 A leading ESG data management platform has engaged R Systems to enhance their existing platform by providing expertise in

full-stack development, data engineering, and digital operations to drive innovation and streamline ESG compliance.

 One of the leading financial services companies based in US having specialization in trading, risk management, and global

payments has onboarded R Systems for Salesforce managed services, system enhancements, strategic guidance, along with ensuring security and scalability.

 A leading bank of Caribbean Islands has mandated R Systems for its digital transformation by developing a mobile app and

integrated APIs, streamlining the forex request handling to drive operational efficiency.

 R Systems has been selected by a global leader in simulation and training software to accelerate their customer project deliveries and bolster the product roadmap of their flagship product. Our strategic collaboration will help them realise revenues quicker and fortify their competitive advantage

 R Systems has been engaged by a US based software product company, offering multiple products, to transform its drafting solution from legacy to SaaS based solution, offering operational efficiencies with improved document quality and accuracy.

Summing Up And Looking Ahead

Deal activity has picked up with sizeable deal RFP’s out in Q4 2024

Focused partnerships with customers and elevated partnership status with hyperscalers

is beginning to influence both stickiness in existing business and ability to win new deals

Trends shaping 2025

• Agentic AI promises to provide better line of sight to ROI and have better adoption curve as compared to more compute heavy and expensive Gen AI. Though DeepSeek kind of disruptive innovations may bend the cost curve to make Gen AI use-cases more viable

• GCC trend is catching up fast and mid-sized clients, specially those without prior

presence in India, will look for appropriate partners like R Systems to enable them take advantage of this opportunity

• Despite uncertainty faced by the US business’ due to policy announcements of the new

administration, we are optimistic of carrying the growth momentum in 2025

Annexure

Analyst Coverage & Recognition

Major Contender in Everest Group’s Software Product Engineering Services PEAK Matrix® Assessment 2024

Major Contender in Everest Group’s ISV and Internet-specific SPES PEAK Matrix® Assessment 2024

Major Contender in Everest Group’s Healthcare Provider Digital Services PEAK Matrix® Assessment 2024

Financial Performance - Contribution Analysis – Q4 2024

Particulars

Revenues

Cost of revenues

Gross margin

% of Revenue

SG&A Expenses

% of Revenue

Adj. EBITDA

% of Revenue

Cost of RSUs

EBITDA

% of Revenue

Depreciation and amortization

EBIT before non-recurring cost Non-recurring Cost #

EBIT

Interest expense

Other income (net)

Income before income tax and share of profit / (loss) in associates Share of net profit/ (loss) of associates accounted for using the equity method

Income before income tax

Tax expense ^

Net Earnings

₹ in M

4,489.55 2,786.29 1,703.26 37.94% 902.52 20.10% 800.74 17.84% 73.06 727.68 16.21% 155.01 572.67 11.29 561.38 (19.45) 24.52 566.45

566.45

176.46 389.99

Q4 2024

US$ in M

53.17 32.99 20.18

10.69

9.49

0.86 8.63

1.84 6.79 0.13 6.66 (0.23) 0.29 6.72

6.72

2.09 4.63

Q3 2024

Q4 2023

₹ in M

4,440.87 2,828.32 1,612.55 36.31% 816.51 18.39% 796.04 17.93% 81.82 714.22 16.08% 165.70 548.52 8.77 539.75 (16.05) (7.20) 516.50

516.50

118.38 398.12

US$ in M

53.03 33.77 19.26

9.75

9.51

0.98 8.53

1.98 6.55 0.10 6.45 (0.19) (0.09) 6.17

6.17

1.41 4.76

₹ in M

4,163.20 2,749.39 1,413.81 33.96% 771.08 18.52% 642.73 15.44% - 642.73 15.44% 169.20 473.53 11.93 461.60 (28.94) 15.29 447.95

(3.03)

444.92

(13.79) 458.71

US$ in M

50.00 33.03 16.97

9.25

7.72

- 7.72

2.04 5.68 0.14 5.54 (0.35) 0.18 5.37

(0.04)

5.33

(0.19) 5.52

# Q4 2024 consists of severance payment, Q3 2024 consists of professional fee incurred w.r.t. merger of the Company with Velotio and ScaleWorx and Q4 2023 consists of professional fee paid w.r.t. acquisition of ScaleWorx and charges paid to Noida Authority for change in constitution of the Company.

^ Q3 2024 includes Rs. 62.10 mn reversal of tax provisions related to dividend received from subsidiary pursuant to declaration of the interim dividend by the Company, which was provided in Q2 2024. Q4 2023 includes Rs. 114.46 million reversal of tax provisions related to dividend received from subsidiary, pursuant to declaration of the interim dividend by the Company.

Financial Performance - Contribution Analysis – FY 2024

2024

2023@

Particulars

Revenues

Cost of revenues

Gross margin

% of Revenue

SG&A Expenses

% of Revenue

Adj. EBITDA

% of Revenue

Cost of RSUs

EBITDA

% of Revenue

Depreciation and amortization*

EBIT before non-recurring cost Non-recurring Cost #

EBIT

Interest expense

Other income (net)

Income before income tax and share of profit / (loss) in associates

Share of net profit/ (loss) of associates accounted for using the equity method

Income before income tax

Tax expense ^

Net Earnings

₹ in M

17,417.27 11,162.67 6,254.60 35.91% 3,344.21 19.20% 2,910.39 16.71% 299.25 2,611.14 14.99% 653.73 1,957.41 20.06 1,937.35 (83.95) 61.62 1,915.02

1,915.02

603.20 1,311.82

US$ in M

208.17 133.42 74.75

39.97

34.78

3.58 31.20

7.81 23.39 0.24 23.15 (1.00) 0.74 22.89

22.89

7.21 15.68

₹ in M

16,845.18 10,904.40 5,940.78 35.27% 3,295.79 19.57% 2,644.99 15.70% - 2,644.99 15.70% 544.04 2,100.95 118.73 1,982.22 (89.50) 112.54 2,005.26

(5.04)

2,000.22

599.16 1,401.06

US$ in M

204.01 132.06 71.95

39.91

32.04

- 32.04

6.59 25.45 1.44 24.01 (1.08) 1.36 24.29

(0.06)

24.23

7.26 16.97

@ Excluding onetime BOT Fee of ₹ 193.07 mn (US$ 2.3 mn) for a Knowledge Service Customer in year 2023, Revenue would be ₹ 16,652.11 mn (US$ 201.67 mn) with EBITDA of ₹ 2,451.92 mn (US$ 29.70 mn) i.e. 14.7% of revenue and Net earnings of ₹ 1,275.46 mn (US$ 15.45 mn). * includes Rs. 249.32 mn in year 2024 and Rs. 123.68 mn in year 2023 with respect to the amortisation of intangibles such as customer contracts, non-compete capitalized under Velotio and ScaleWorx acquisitions. # Year 2024 consists of professional fee incurred w.r.t. merger of the Company with Velotio and ScaleWorx and severance payment. Year 2023 consists professional fee paid w.r.t. acquisition of Velotio, acquisition of Scaleworx, charges paid to Noida Authority for change in shareholding and constitution of the Company, recruitment fee paid for hiring of new CEO and one time joining fee paid to CEO. ^ includes Rs. 86.09 mn provisions for tax on dividend received from wholly owned subsidiary during the year 2023.

THANK

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R Systems International Limited has informed the Exchange about Investor Presentation

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