ADSL

Date: May 30, 2023 The Listing Department Corporate Relationship Department TNoa,t i o nal Stock Exchange of India Limited BToS,E Limited SEYxcMhBaOngLe: APDlaSzLa , B a n d r a Kurla Complex, P SJc. rTiopw Ceordse, :D 5a3la2l8 S7tr5e et, Bandra (East), Mumbai – 400051 Mumbai - 400 001 DSuebar: ISnirv e/ sMtoard aPmre, sentation by the Company dated May 30, 2023 Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 We are pleased to enclose herewith the Investor Presentation; the press release enclosed is self – explanatory. The above information is also available on the website of the Company: https://www.allieddigital.net/in/ Request you to take note of the above. TFohra nAklilniegd y Douig, ital Services Limited _______________________ Nehal Shah Executive Director DIN: 02766841 39 Years 3,000+ Employees 70+ DIGITAL TRANSFORMATION ARCHITECT Countries GLOBAL MANAGED IT SERVICE PROVIDER Investor Presentation MASTER SYSTEMS INTEGRATOR May 2023 www.allieddigital.net 1 Safe Harbour Certain statements made in this document concerning our future growth prospects may be interpreted as forward-looking statements, which involve numerous risks and uncertainties that could cause the actual results to differ materially from those in such forward-looking statements. Investors are requested to use their discretion in relying on them. We do not undertake to update any forward-looking statements that may be made from time to time © 2023 Allied Digital. All rights reserved 2 TABLE OF CONTENTS Introduction 04 21 Success Stories Q4 & FY23 Performance Overview 27 Financial Overview 36 Corporate Overview 42 33 Introduction © 2023 Allied Digital. All rights reserved 4 Company At A Glance 39 70+ 3,000+ 20 Year History Countries Employees Offices Worldwide 187 12 10 Fortune 100 Smart / Safe Cities Numbers of Clients Net Debt Free Customers Delivered Rs. 660 36% Rs. 88 26% Cr Cr YoY Growth in YOY Growth in FY23 Revenue FY23 EBITDA Revenue EBITDA © 2023 Allied Digital. All rights reserved 5 Vision Mission Core Values To be the most admired IT To operate as a technology Ethics -Integrity, Honestly Services and Solutions driven global organization and Commitment provider by applying 3 obsessed with customer Attitude, Relationship and megaforces within the needs, devoted to building Trust - Customer Before organization continually lasting partnerships and Self by: acting with integrity, Capabilities and honesty and a spirit of co- Infrastructure - Core • Developing operation with customers, Pillars of Service Delivery Technological depth suppliers and employees. Transparent Transactions - • Enhancing Resources, Flexibility and Visibility Reach and Infrastructure • Using the best DIGITAL TRANSFORMATION ARCHITECT management practices for operational GLOBAL MANAGED IT SERVICE PROVIDER excellence MASTER SYSTEMS INTEGRATOR © 2023 Allied Digital. All rights reserved 6 Evolution of Allied Digital 1994-2001 2008-2013 2020 onwards ValueDriven Inorganic Growth Disruption Driven Driven Focused completely Qualified Pre-empted on intrinsic value institutional technology disruption creation participation (QIP). to leverage emerging technologies and Acquisition of retain prominence in NASDAQ listed US industrial Revolution Company. 4.0 1984-1993 2002-2007 2014-2019 Profit Driven Strategy Driven Transformation Driven Grew the company Maiden IPO in 2007 Major internal from a team of 3 to transformation at all 150 people Overcame dotcom levels and made bubble burst by company future retaining focus only ready on futuristic profit making technologies © 2023 Allied Digital. All rights reserved 7 Integrated Business Offerings Cloud Cyber Enablement Security Infrastructure Integrated Management Solutions Services Workplace Software Management Services Services © 2023 Allied Digital. All rights reserved 8 Service Capability Matrix Cloud Cyber Integrated Infrastructure Software Workplace Enablement Security Solutions Management Services Management Services Services • AWS, AZURE, GCP, • AIM 360°Cyber • Master Systems • ADiTaaS/ • Desk side Break- VMWARE Security Solutions Integration Projects • Proactive ServiceNow fix/IMAC Services • IAAS, PAAS, SAAS • Endpoint Security • Safe City / Smart Monitoring of Consulting, • Multi-lingual, Multi- • Public / Private / • Managed Security City / Campus Server, storage, Implementation and channel Service Hybrid Cloud Services and SIEM Solutions network, firewall etc Support Desk Services • Identity & Access • IBMS • Application support • FinoAllied • Endpoint • Cloud Engineering Management • IoT Solutions services, Office365, • Cloud DevOps management • Data Factory, Data • Threat Intelligence • Enterprise Physical Exchange, Services solutions Lakes, Big Data Solutions Security Automation Databases, SAP etc • RPA • WFA solutions • Micro Services, • Ransomware • Operational • Enterprise Services – • Generative AI / ML • End User Analytics Containers Prevention / Technology Backup, DR, Solutions • Global Logistics / • Cloud Migrations Network Security / Integration Patching, Voice etc • Multi-cloud Depot Services Cloud Security • Command / Control • Data Centre Applications • Security consulting Systems Operations • Blockchain and Compliance • Innovation • Infra Analytics • Metaverse • SOAR, SASE, Zero Automation & Trust Transformation • EDR, MDR, XDR • Governance, Risk & Compliances (GRC) © 2023 Allied Digital. All rights reserved 9 9 Allied Digital Integrated Tool-as-a-Service (ADiTaaS) 15+ years 100+ 75+ Certified: Offered across Cloud PinkVERIFY and on-premises of IT and Enterprise customers employees CMMi Level 3, SOC2 applications service management certified, ISO 9001, 27001 solutions expertise. & 20000 - Highest standard for IT Service Management Tools © 2023 Allied Digital. All rights reserved 10 ADiTaaS Desktop Interface © 2023 Allied Digital. All rights reserved 11 ADiTaaS Desktop Interface © 2023 Allied Digital. All rights reserved 12 ADiTaaS Mobile Interface © 2023 Allied Digital. All rights reserved 13 Industries We Serve OIL / ENERGY / UTILITIES FMCG PHARMA RETAIL AUTOMOBILE MANUFACTURING BFSI HEALTH CARE GOVERNMENT Client Names On Request © 2023 Allied Digital. All rights reserved 14 Geographical Presence CANADA CHINA UK BELGIUM GERMANY IRELAND JAPAN US MEXICO SPAIN ITALY SINGAPORE BRAZIL INDIA Subsidiaries AUSTRALIA Branches © 2023 Allied Digital. All rights reserved 15 Awards and Recognitions Inspiring Achievers Award, Istanbul 2022 to CMD Nitin Shah Best Digital Innovation of the Year 2022 by UBS Forums Mumbai © 2023 Allied Digital. All rights reserved And many more…. 16 Awards and Recognitions Award for Inspiring SME Empowering Talent Achievers India Awards, Management Award, 2023 by World Istanbul 2022 by Arrucus Media HRD Congress, to CMD Nitin Pvt. Ltd. 2023 Shah SME Inspire Best Digital ET Best Brands Awards Innovation of the 2022 2023 Year 2022 by Economic By NASSCOM by UBS Forums Times Mumbai Mumbai And many more…. © 2023 Allied Digital. All rights reserved 17 Board of Directors Nitin Shah Nehal Shah Sunil Bhatt Tejal Shah CMD Director Director Director • Heis a pioneer in India's IT revolution, with a • A member of the ExecutiveManagement Team • He has been with Allied Digital Group for 25 • She has 25+ years of experience in Finance, career spanning 45 years and leadsstrategic and operational years, with expertise in technology innovation, Operations, and Marketing. • He has successfully led the company through governanceprocesses of the business strategy, business development, product • She holds a bachelor's degree in commerce various challenges and is currently planning for • Hehas over 14 years of experience development, solution selling, go-to-market, from Mumbai University. "creative disruption" in Version 6.0. • Holds Bachelor's degree in Engineering from and customer success. • She actively participates in social activities, • Heholds a degree inElectrical Engineering and University of Mumbai and Diploma in Computer • He is a member of the core management group focusing on the betterment of the elderly, a PGDiploma in Computer Management Technology from Maharashtra State Board of at Allied Digital and currently serves as the Chief children's health and safety, and women's Technical Education Technology Officer at Allied Digital Services, empowerment. She is involved with various LLC, USA NGOs dedicated to these causes. Milind Kamat SwanubhutiJain Shakti Leekha Anup Kumar Mahapatra Shrikant Parikh Non-Executive - Non-Executive - Non-Executive - Non-Executive – Non-Executive - Independent Director Independent Director Independent Director Independent Director Independent Director • AB.E. in Electrical Engineering from • He is a Ph.D. candidate at University • Holds a Post Graduate Diploma in • Business Leader, Business Advisor, • B.Sc. in Agriculture from Odisha University of Mumbai, Ph.D. in of Bradford, UK, faculty in Sales and Marketing Management Author & Speaker who has expertise University of Agriculture and Computer Science from Southern Information Management and from NMIMS and MA from Mumbai in driving business transformation Technology in 1985 Methodist University, M.S. in Analytics, and Chairperson of the University through differentiated and market- • 34+ years of experience in the Computer Science and Engineering Global Management Program at • Worked in organizations such as leading strategies banking sector with strong from University of Texas, and PMP SPJIMR Accenture, ICICI Prudential, and Birla • 24 years of experience in business knowledge in business, operations, certified from Dallas. • 35 years of experience as a senior Sun Life Insurance with roles in development and management in credit, and international banking. • He has 25 years of IT experience with industry executive, including CEO of business development, client multinationals with expertise in 33 international patents in industrial Atos India and EVP of Atos Group. relationship management, marketing energy efficiency, security, life research. strategy, lead generation and sales, safety, renewables, smart cities/IoT, and quality operations and professional lighting products and illumination projects © 2023 Allied Digital. All rights reserved 18 Dynamic Leadership Team Paresh Shah Jawahar Ali Gopal Tiwari Kapil Mehta Global CEO CEO –Integrated CFO CFO & COO (USA) Solutions Group • He has 30 years of experience in IT • He is a qualified Chartered • He has25 years of diverse • He has over 40 years of experience Applications, Infrastructure, and Accountant and Company Secretary. experience in IT & Physical Security with well enterprise business processes, and • He has over 32 years of diverse • He leads the company's overall known corporate has won several large outsourcing experience in Finance, strategic operations, business partnering, • He has actively participated in and systems integration projects planning, secretarial, taxation, corporate finance and accounting, consultation and deployment of treasury &corporate development. reporting and analysis, governance, large-scale security solutions in • He advises customers, forms • He has worked with various international taxation, HR, talent sensitive environments and key strategic partnerships and provides corporates across industries and management, legal, M&A and risk threat areas worldwide. enterprise system integration possess extensive domain knowledge management. • He has traveled globally for thought solutions. leadership forums, conferences, and seminars on technology and security. Manoj Shah Jai Venkat Utpal Chakraborty Rohan Shah Chief Information Chief Growth Chief Digital Officer Vice President Officer Officer • He is a founding and core member of • He brings more than 32 years of • He is a data scientist, AI researcher, • He has a Bachelors of Science in the Allied Digital management team experience in Sales, Solutions strategist, and thought leader with Computer Science from the University of • He has over 33 years of experience in Development, Operations, Business over 20 years of industry experience. Illinois, Urbana-Champaign the IT industry and has been Transformation (leveraging emerging • He has held roles as a principal • He led Business Development and associated with the company since technologies) and Service Delivery architect in L&T Infotech, IBM, Solutioning efforts, driving growth its inception • He has held Senior Executive Capgemini and other MNCs and he through consultative sales for various • He is involved in business strategy Leadership rolesat Zones LLC, DXC was the head to Artificial enterprises and public sector initiatives planning and execution and has Technology, HP Enterprise, Intelligence division of YES Bank • He previously worked as a Software executed several large complex Cognizant, Capgemini, and Infosys. Developer at IBM and received the projects Outstanding Technical Achievement Award © 2023 Allied Digital. All rights reserved 19 Dynamic Leadership Team SairMuhammad Sunil Nair Ashish Raghute Fred Parlato EVP –Sales Business Head SVP -IT Client Solutions Director • Responsible for business in the • Over 20 years of IT sales experience • He leadsthe Cloud, Infrastructure, • He isan Atlanta-based Client Americas with a strong focus on relationship Cybersecurity, and Applications Solutions Director who joined Allied • Over 15 years of experience in client cultivation Practices and Delivery since 2009. Digital in 2010 relationship management for various • Senior sales leader with a successful • He has previous experience as CIO of • He has a proven track record in sales, IT service providers such as HCL, track record of creating multi-million- a multi-division Fortune 500 RV channel, and business development Infosys, and Microland dollar deals and securing long-term company and as a Principal at IBM focusing on infrastructure solutions, • Experience in IT Infrastructure contracts with top businesses and PwC. He has successfully applications management, asset Services in diverse domains including • Highly knowledgeable in technology delivered ERP, CRM, E-Commerce, management, cloud services, Service Provider Strategy, Service trends, driving revenue gains and and OSS projects at clients such as security, and end-user computing. Support, Service Delivery, Production cultivating relationships with AT&T, Sony, Verizon, among others He is known for his consistent ability Support, among others prospects and existing customers to close new business deals while maintaining strong partnerships with OEMs Hubert Wong Debbie Roa Bradley Moore Neha Bagla SVP, Service Ops Senior Delivery Senior Ops Manager Company Secretary Manager • Proven strategic thinker and leader • Manages the Delivery and Technical • Result-driven IT professional • She is a qualified CompanySecretary • Understands the value of customer and alsoholds Bachelor degree of with 20+ years of experience in IT teams for RIMM, EM, PS and GSD intimacy and the role of a trusted Law. • Efficiently aligns employees with lines of business organizational goals • Previously a Sr. Business Analyst at a advisor • She plays a significant role in Legal, • Successfully implements modernized Governance, Investor Relations, • Experience in private organizations, multi-division Fortune 500 RV and leading-edge Global Service ComplianceandCorporateAffairsof public entities, and higher education Company, Fleetwood Enterprises institutions • Global Business Analyst experience Desk solutions for partners and theCompany. customers • She has deep knowledge and at VeriFone and Hewlett Packard understanding of Corporate laws, statutory and regulatory Compliances © 2023 Allied Digital. All rights reserved 20 Success Stories © 2023 Allied Digital. All rights reserved 21 Auto Manufacturer Client Approach Scope • One of the Top 10 global auto maker, US$ 35 Bn Annual Revenue • Workplace Services • 82k+ employees • Deskside Support for HQ and field offices • 175 countries, 6,500+ touchpoints • Next-Gen Dedicated Service Desk Support Solution Challenges • Implemented ADiTaaSplatform 4.0 with ITIL processes • Integrated various sources for managing centralized alerting and • Nonexistent IT department for Infrastructure Services except the incident management for all units CIO and Director • Implemented custom SLA for various business units • Centralized control from overseas Corporate IT providing zero • Chatbot implementation flexibility • Proactive alert monitoring tool implementation for critical • Lack of Tools and Processes in client organization enterprise devices and SAP • Implementation of Martello IQ Analytics aggregation platform Enablers Benefits Automation and Elimination • Proactive State-of-the art Transformation Tools • Integrated across the globe • Customized for the organization • End User satisfaction improved • Good cost efficiencies 22 © 2023 Allied Digital. All rights reserved 22 Appliance Manufacturer Client Approach Scope • US$ 37 Bn Annual Revenue • 12k+ employees • Workplace Services • 31+ sites in 30 countries • Deskside Support for HQ and field offices • Next-Gen Dedicated Service Desk Support Solution Challenges • 22 dedicated FTEs for HQ and manufacturing plants • Factory & warehouse, Conference Room, and Tablet Support Cost & Quality • SLA-based support for HQ and separate SLA for manufacturing • Factory/Shop floor support required specialized knowledge on sites factory equipment • Servers, Scan-guns, label printers, VDI, CAD • No asset management process in place (Incorrect inventory • Support for: data) • 4 call and dispatch centers • Poorly configured ticketing system (SNOW) • 12 Area distribution centers • 4 parts distribution centers • 170 local delivery sites Enablers Benefits Dynamic Delivery Model • CSAT 4.5/5 • SD ASA from 48 to 22 seconds • First Contact Resolution –97% • ARC/RRC Pricing Model • Created instant ticketing & smart monitoring for factory floor working © 2023 Allied Digital. All rights reserved to automate reboot process 2233 Leading Logistics Player Client Solution • Allied Digital services set up a high end and skilled service desk to • GlobalIndustryleader providebetterFCR. • Reachingmorethan220countriesandterritories • Trained the resources on Application support and increased the total • Connectingmarketscomprisingover90%oftheworldGDP FCRto75% • Endtoendreachwithinonetothreebusinessdays • Mappedtrainedresourcesforalltheon-siteandon-demandlocations. • CreatedapooloftrainedBackupengineerstocatertoanysurgeinthe IMACactivitiesoranyattrition. • Created a well-documented SOP and training manuals to quickly Challenges onboardEngineers. • Achieved higher SLA of 99% at the end users by implementing ContinuousImprovementPlansandGovernance Seeking a Responsive & Reliable IT Partner • 24x7 Service desk support withStringent SLA & quick turnaround time Technology Enablers forIncident&ServiceRequest • MultiLocationsupport–220+Locations • Service Desk Ticket Automation. • Skilled Engineers availability onsite and on demand to manage • Application support training manuals 220+Locations within the SLA. • Driving Constant Service Improvement plans across skilled resources. • Implemented CSAT surveys and Genius bars for walk-in tech support. Scope Benefits • 24 x 7 Service Desk to support multi-Location and multi-Operation servicewindow. • Experienced and Multiskilled resources to manage both Infrastructure • Automation of eligible L1 Tickets and hence reduced ticket size. andapplicationtickets • Improved operating efficiencies which results in smooth functioning of • ManageIncidents,ServiceRequestandondemandsupportforIMAC Business. • Governanceandreporting • Improved CSAT score from 60 to 78 with improved customer support, minimizing wait times, offering multichannel support and personalized responses. • Awarded extension of managed services 24 © 2023 Allied Digital. All rights reserved 24 Pune City Surveillance Project Client Solution • Home Department, Government of Maharashtra in co-ordination with • System Design based on Best of Breed Products and Solutions from PunePoliceDepartment leadingOEMs • Stake holders: Government of Maharashtra, Pune City Police • High performance, High Availability & Resilient Design and Scalable Department headed by Commissioner of Police and Allied Digital – solution MasterSystemsIntegrator • Intelligent Network Cameras usedwhich provide Bandwidth& Storage • Bids submitted by the bidders were evaluated by acommittee headed Optimization by a Senior Faculty from IIT Mumbai, DIT Maharashtra and Project • VMware Virtualization (probably used first time Globally in a large- ConsultantPWC scaleVideorecordingsolutionin2015) Challenges • Optical Fibre based Fully Redundant N/W Backbone up to Camera Poles • 100%TerrestrialWiredNetwork •First of its kind project in the country hence no precedence or previous bench marks existed. •Digging and civil work on busy city roads having dense underground Benefits utilities. • Disruptions by impacted public, shop keepers and anti social elements in • Traffic Violations Fine exceeding INR 360Cr. Collected during the five- field work causing changes to planned work and delays. year period •Integration of various applications like ANPR, Video analytics, GIS and other • Centralized Control Technology with GIS and GPS capabilities for Real Pune Police applications with Verint SMC. time tracking and response • Detecting, alerting and recording traffic violations such as wrong lane Scope driving, ‘no entry’ violations through smart video analytics • Video clips with water marking presented in Court of Law as evidence • Installationof1300+IPcamerasAcrossPune/Pimpri-Chinchwad • Offender’s actions captured on the camera used for crime scene • CommandandControlCentreforreal-timesituationalawareness&response reconstruction • Automatic Number Plate Recognition System and Video analytics for • Integrated Command & Control Centre provides cockpit view of the automateddetectionandproactiveresponse. city with on demand virtual tour of all locations by the Police Force for • DigitalbackboneprovidedbyBSNL. real time situational awareness • 45+PoliceMonitoringStations. • 440+junctionmonitoring. • End-to-EndITinfrastructureSetupbyAlliedDigitalTeam © 2023 Allied Digital. All rights reserved 25 Key Differentiators Technical competency in providing cutting-edge solutions that meet the highest standards. Our company supports on Next Generation technologies and remains ahead on the technology curve. One Stop Shop - End-to-end support to our clients, from ideation to implementation, ensuring a seamless experience. Our company provides Multi-vendor, Multi-product, Multi-location, Multi technology services across the globe. Rich experience of nearly 4 decades, World Class service governance, best practices & maturity model on service delivery with several industry body certifications Direct support to clients without the use of any sub-contractors wherever possible. Focus on Continuous learning and skill development of the Large and diverse workforce driving low levels of attrition Cost-effective solutions without compromising on quality, allowing our clients to maximize their ROI. Flexible and Agile, Adaptable to changing circumstances with teams that are empowered to enable quick decision making. 2626 Q4 & FY23 Performance Overview © 2023 Allied Digital. All rights reserved 27 Performance Highlights (Consolidated) 36% 26% 44% Y-o-Y Growth in Y-o-Y Growth in YoY growth in Revenue EBITDA Adj. PAT* FY23 13% 10% 25% Highest ever Dividend FY23 ROCE FY23 RONW recommended Highest ever annual EBITDA, *PBT & *PAT in the Company’s history of 4 decades * Exclusive of exceptional items in FY22 and loss from discontinued operations in FY23 28 28 28 Financial Snapshot Revenue from Operations EBITDA EBITDA Margin (%) EBITDA Margin (%) 17% 14% 13% 166 660 156 11% 485 27 19 70 88 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 PBT* PAT* 73 PAT Margin (%) PAT Margin (%) 22 11% 8% 8% 50 13 6% 17 10 37 54 Q4 FY22 Q4 FY23 FY22 FY23 Q4 FY22 Q4 FY23 FY22 FY23 Note:Consolidated Figures Figures in Rs. crore unless specified otherwise © 2023 Allied Digital. All rights reserved * Exclusive of exceptional items in FY22 and loss from discontinued operations in FY23 29 29 Profit & Loss Statement Particulars (Rs. crore) Q4 FY22 Q4 FY23 % Shift FY22 FY23 % Shift Net Revenue from Operations 156 166 6% 485 660 36% Total Operating Expenditure 129 148 14% 415 572 38% EBITDA 27 19 -31% 70 88 26% EBITDA margin (%) 17% 11% (600) bps 14% 13% (100) bps Finance Costs 1 1 12% 3 4 53% Depreciation and Amortization 5 4 -12% 20 17 16% Other Income 1 0 -98% 3 6 121% Profit before Exceptional Items & Tax 22 13 -40% 50 73 47% Exceptional Items (Gains) 0 0 24 0 PBT 22 13 -40% 74 73 -1% Tax Expenses 5 4 -30% 13 19 54% PAT (Continuing Operations) 17 10 -43% 61 54 -12% PAT (Discontinued Operations) 0 -47 0 -47 Reported PAT 17 -37 -322% 61 7 -89% Adjusted PAT * 17 10 -43% 37 54 44% Adjusted PAT margin (%) 11% 6% (500) bps 8% 8% - EPS - Continuing Operations 0.54 0.13 1.02 9.56 EPS – Reported 0.54 (8.20) 1.02 1.23 Consolidated Figures © 2023 Allied Digital. All rights reserved 30 30 *Exclusive of exceptional income in FY22 & loss from discontinued operations in FY23 Balance Sheet Particulars (Rs. crore) As on March 2022 As on March 2023 Assets Non-Current Assets 300 311 Inventory 38 43 Receivables 199 160 Other Current Assets 157 181 Total Current Assets 393 384 Total Assets 693 695 Liabilities Shareholders’ Funds 556 571 Long term borrowings 5 3 Other Non-Current Liabilities 27 12 Total Non-Current Liabilities 32 15 Payables 51 37 Short Term Borrowings 38 32 Other Current Liabilities 16 40 Current Liabilities 105 109 Total Liabilities 693 695 © 2023 Allied Digital. All rights reserved Consolidated Figures 31 31 Key Business Developments During the quarter ADSL has booked orders of INR 325+ crores towards new wins and renewals for multi‐year contracts. A few key wins include: • A contract from a leading packaged food FMCG company in India, which is part of one of the largest business groups in India. The contract is valued at Rs. 25 Crore executable over 5 years covering enhanced infrastructure deployment and management of IT Systems • Signed a Master Services contract with a prominent retail group in North America to provide a ‘Global Service Desk’ based services to all retail chain stores owned and operated by it. The total contract value for this engagement is INR 25 Crore executable over 3 years. ADSL is in discussion to further expand the scope to offer Retail Store Support (RSS), Depot Services and Infrastructure Management Services to the customer • A multi-year services contract with one of the largest providers of child-care services in North America. The scope includes providing End User Service Desk and Enterprise Infrastructure Support to all their employees, franchises and partners across the USA • A services contract with the North American division of a prominent European Automotive OEM. The scope includes End User support, field support to dealers in the USA West Coast and LAN/WAN/Wirelesssupport fortheir USA offices • Signed multi-year renewals with customers across retail, healthcare and life-sciences industries 32 32 Discontinued Operations • During the transformation phase, in order to fully concentrate only on the services business, the company made a strategic decision to discontinue its business of selling only IT hardware and peripherals • Consequently, the company has completely ceased such business activities and has no intention to re-enter this line of activity in near future • Accordingly, the management has made the decision to create sufficient provision for non-recoverable receivables and advances related to the said discontinued business 33 33 Management Commentary “ Commenting on FY’23 Performance “We have ended FY23 on a strong note with Revenues of Rs. 660 crore, higher by 36% y-o-y. EBITDA for the year was Rs. 88.30 crore higher by 26% y-o-y. Profit after tax, from continuing business, was higher by 44% y-o-y to Rs. 53.73 crore (Excl. Discontinued Operations). In keeping with our transformation program, we are implementing more stringent policies and processes. In consultation with our auditors and with the support of the Board, we have made a sufficient provision against probable losses from our discontinued business of selling IT hardware and other peripherals. While this provisioning has impacted our Mr. Nitin D. Shah overall reported financial performance, there is no effect on the cash flows, operating and other performances of the continued business in fact our business engine has become more efficient. Additional benefits over the near and medium-term include a more Chairman & Managing focused enterprise, stronger financial profile and strengthened governance framework. Director Our performance momentum remains intact as we have reported the highest ever annual EBITDA, PBT (Adjusted) and PAT (Adjusted) in our history. The Board of Directors have recommended a dividend @25% on Equity shares as against 20% for FY22.” 34 34 34 Awards and Accolades • Allied Digital received the ‘Award for Talent Management’ from the World HRD Congress at the "Global HR Excellence Awards" held on 15th February 2023 • Allied Digital won the prestigious “Leadership in Innovation – Tech Services” award in the Medium Enterprises category at the Nasscom SME Inspire Awards 2023 on 28th March 2023 for it’s FinoAllied – Conversational AI Banking platform • Allied Digital won the coveted Jury award in the IT/IT Enabled Services category at the SME Empowering India Awards 2023 on 11th April 2023 • Allied Digital has won the award under the category- 'Best ESG Initiative to Improve Communities/Cities' at the ESG Summit and Awards 2023 held on 26th April, 2023 35 35 43 Financial Overview © 2023 Allied Digital. All rights reserved 36 Historical Profit & Loss Statement Particulars (Rs. crore) FY2019 FY2020 FY2021 FY2022 FY2023 Net Revenue from Operations 240 330 358 485 660 Total Operating Expenditure 201 282 313 415 572 EBITDA 39 48 45 70 88 EBITDA margin (%) 16% 14% 12% 14% 13% Finance Costs 10 7 4 3 4 Depreciation and Amortization 22 22 22 20 17 Other Income 4 6 4 3 6 Profit before Exceptional Items & Tax 11 24 24 50 73 Exceptional Items (Gains) 4 0 0 24 0 PBT 15 24 24 74 73 Tax Expenses 2 5 4 13 19 PAT (Continuing Operations) 12 19 19 61 54 PAT (Discontinued Operations) 0 0 0 0 -47 Reported PAT 12 19 19 61 7 Adjusted PAT* 12 19 19 37 54 Adjusted PAT margin (%) 5% 6% 5% 8% 8% EPS - Continuing Operations 2.47 3.83 3.56 10.94 9.56 EPS - Reported 2.47 3.83 3.56 10.94 1.23 Consolidated Figures © 2023 Allied Digital. All rights reserved 37 *Exclusive of exceptional income from FY22 & loss from discontinued operations from FY23 37 Key Financial Ratios Particulars (Rs. crore) FY2019 FY2020 FY2021 FY2022* FY2023# EBITDA margin (%) 16% 14% 12% 14% 13% PAT Margin (%) 4% 6% 5% 8% 8% Debt to Equity 0.15 0.11 0.11 0.08 0.06 Return on Net worth (%) 3% 4% 4% 7% 10% Return on Capital Employed (%) 3% 5% 4% 8% 13% Inventory Days 92 66 60 50 38 Debtor Days 264 221 187 137 98 Creditor Days 52 92 90 55 34 Note:Consolidated Figures * Exclusive of exceptional items # Exclusive of loss from discontinued operations © 2023 Allied Digital. All rights reserved 38 38 Historical Financial Trends Revenue from Operations EBITDA 660 16% 14% 14% 13% 485 12% 358 330 240 39 48 45 70 88 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 EBITDA Margin (%) PAT Return Ratios 8% 8% 13.0% 6% 5% 5% 8.0% 10.0% 5.0% 4.0% 3.0% 7.0% 12 19 19 37 54 4.0% 4.0% 3.0% FY19 FY20 FY21 FY22* FY23# FY19 FY20 FY21 FY22* FY23# PAT Margin (%) RoNW RoCE Note:Consolidated Figures Figures in INR crore unless specified otherwise * Exclusive of exceptional items © 2023 Allied Digital. All rights reserved 39 # Exclusive of loss from discontinued operations 39 Revenue Breakup Revenue by Services & Solutions Revenue by Geography FY22 FY23 FY22 FY23 13% 6% 9% 22% 78% 87% 94% 91% India Rest of World India Rest of World Services Solutions Services Solutions Revenue by Customer Profile FY22 FY23 5% 9% 95% 91% Government Customers Non-Government Customers Government Customers Non-Government Customers Note:Consolidated Figures © 2023 Allied Digital. All rights reserved 40 40 Client Base Particulars FY 2023 FY 2022 Total Active Clients 187 159 Top 5 33% 34% Top 10 48% 55% Top 25 75% 81% Clients with TCV > USD 1mn 51 45 TCV – Total Contract Value © 2023 Allied Digital. All rights reserved Note:Consolidated Figures 41 41 Corporate Overview © 2023 Allied Digital. All rights reserved 42 Empowerment, Responsibility and Accountability (ERA) for Employees • Total Transparency at the forefront • Our goal is to strengthen our core • We follow a Management by • Allied Digital Services believes in a • We are characterized by inclusive team and ensure we can achieve Participation business model culture of Empowerment, growth and collective decision- great success • We believe in decentralized Responsibility, and Accountability making practices • Our approach has shifted from decision-making -ERA -where these three • Our CMD believes in individual-driven to team- • The approach provides enough principles go hand in hand empowerment at all levels of the oriented delegation, following the bandwidth to top management for organization exemplary "Guru Shishya model" forward-thinking business growth Employee Life Cycle Employee Presence Attraction Onboarding Development Separation 5% 20% 75% INDIA USA ROW Recruitment Enablement Retention 43 43 Environment, Social and Governance (ESG) SOCIAL • ADSL has documented comprehensive HR policies and made them available online. Besides, GOVERNANCE HR frequently updates employees on pandemic. Also rewards and recognition programs are conducted. ADSL believes in “Employee nurturing • Internal controls at ADSL include as everyday’ s role of a manager” Whistle blower policy Employee • ADSL adheres to its policy of being gender grievance and support services neutral and support opportunity for disabled online and offline Open door • The company has been globally promoting equal policy Mandatory onboarding ENVIRONMENT opportunity and diversity. It has strong “Core procedures to communicate Value Pyramid” where Ethics and Integrity is at policies, code of conduct and • Several energy saving activities in premises top and believes in “walk the talk.” Company also “Core Value Pyramid” • ADSL is involved with Microsoft and Deloitte to work on Wildfire publishes periodic newsletters to employees Continuous communication prediction and situation management • Several CSR activities such as Padma Pragna during leadership town hall • ADSL plans to support tree plantation activities Private Trust Women empowerment initiatives sessions • ADSL globally adopts practices of filtered water and restricts use of Free Covid vaccination drives • Being a public listed company, all bottled water discouraging use of plastic • ADSL complies to statutory regulations and required statutory and regulatory • ADSL is engaging NGO agencies to drive e-waste management labour laws. compliances are in place • ADSL is proactively monitoring its resource usage including electricity bills, supply chain risks on various electronic goods with OEMs © 2023 Allied Digital. All rights reserved 4444 Corporate Social Responsibility We realize that besides growing our businesses it Our Trust helps the needy people by providing is also vital to build trustworthy and sustainable following support: relationships with the community at large. This is • Medical support to Cancer Patients one of the key drivers for all our CSR programs • Education • Society Upliftment The Allied Digital team join hands with Habitat for • Full filling necessity Humanity to reach out to the tribal population in • Dharamshala the Karjat area of Maharashtra India • Food 45 © 2023 Allied Digital. All rights reserved 45 Capital Market Statistics Price Data (as on 25th May 2023) Dividend Payout Face Value 5.0 Market Price 95.2 25% 52 Week H/L 142.3 / 72.9 20% Market Cap (INR Cr) 522.7 15% EPS (TTM)* 9.9 P/E Ratio 9.7 Equity Shares Outstanding (Cr) 5.5 1 Year Avg. Daily Trading Volume ('000) 185.0 1 Year Avg. Daily Net Turnover (Cr) 2.0 FY21 FY22 FY23 *From Continued Operations Market Cap. (in Rs. Crore) Shareholding Pattern Public, 523 47% May’23 Promoters, 99.7 53% Dec ’19 46 46 Takeaways Deep Technical Rich Experience – Marquee Growth Oriented Competence - Track record of Customer – Large and growing Providing cutting- nearly 4 decades Relationships – order book well edge solutions to a Successful, multi- diversified across global customer year relationships customers and base. spanning B2B and geographies B2G verticals Leadership – Financially Sound Recognised – Stakeholder Dynamic and – Adequate Honoured with Focused – competent resources for several awards and Favourable employee leadership guided growth, can make recognitions by policies, shareholder by an able Board necessary industry bodies, friendly, compliant investments clients and and well-governed towards large regulators projects 4477 About Us We are a BSE/NSE-listed Global leader in Information Technology consulting and services, since 1984. HQ in Mumbai, India, we are a Global managed service provider and Master Systems Integrator, offering infrastructure solutions and services to clients in 70-plus countries. The service portfolio ranges from cloud enablement, cyber security, integrated solutions, infrastructure management, software services, and workplace services. We were the first Indian company to have executed a Smart City Project with our Pune City Surveillance project delivery in 2015. The company has a global workforce of 3,000 plus professionals, local support functions, and governance frameworks, and offers its expertise and services to several Fortune 500 companies. Website- www.allieddigital.net For further information, please contact: Ms. Neha Bagla, Company Secretary Mayank Vaswani | Mit Shah Allied Digital Services Ltd CDR India +91 22 66816477 +91 98209 40953 | 99201 68314 Investors@allieddigital.net | CS@allieddigital.net mayank@cdr-india.com | mit@cdr-india.com 48 © 2023 Allied Digital. All rights reserved 48