CMSINFO

CMSINFO/2305/008 May 25, 2023 To BSE Limited National Stock Exchange of India Limited Listing Department, Exchange Plaza, C-1, Block-G, Bandra Kurla 1st Floor, PJ Towers, Dalal Street, Complex, Bandra (East), Fort, Mumbai – 400 001 Mumbai – 400 051 Scrip Code: 543441 Symbol: CMSINFO Sub: Intimation under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”) Dear Sir/Madam, Pursuant to Regulation 30 of Listing Regulations, please find attached Investor Presentation on Audited Financial Results (Standalone and Consolidated) of the Company for the year ended March 31, 2023. You are requested to kindly take the same on record. Thanking You, For CMS Info Systems Limited CS Praveen Soni Company Secretary & Compliance Officer (Membership No. FCS 6495) Encl: a/a Regd. Office: T-151, 5th Floor, Tower No.10, Sector-11, railway station complex, CBD Belapur, Navi Mumbai- 400 614 | T: +91-22-4889 7400 | F: +91-22-4889 5177 CMS Info Systems Limited |CIN: L45200MH2008PLC180479 | www.cms.com | E: contact@cms.com Our Journey: Compounding growth through market cycles S Established a strong Grew TAM by expanding High growth M core in Cash Logistics into Managed Services Launched AIoT business C WAVE 1 WAVE 2 WAVE 3 2009 2015 2019 2023 y r • in Pvt. bank outsourcing • Demonetization • in PSU bank outsourcing t s u • 4x ATM market growth • NPA crisis; PSU bank mergers • COVID pandemic d n • Market players doubled • RBI standards • Industry consolidation I 9x 13x 13x Our Growth: Revenue, EBITDA and PAT Revenue: ₹ 1,915 Cr Adj. PAT margin: 15.9% Revenue & EBITDA CAGR* Revenue: ₹ 1,146 Cr Revenue: ₹ 1,128 Cr Adj. PAT margin: 8.8% Adj. PAT margin: 8.0% Revenue: ₹ 216 Cr Adj. PAT margin: 10.5% 2009 2015 2019 2023 *from continuing businesses (FY09 – FY23) Our Cash Logistics Business Bank Branches Currency RBI ATMs Chests Organised retail, e-commerce, NBFCs, Insurance, Utilities, etc. CMS Logistics Platform powers the Currency Cycle in India Growth in Currency Throughput Growth in monthly average at ₹ 13 Lakh Crore in FY23 cash replenishment at ATMs Increase in avg. cash collection per point in Transportation in FY23/FY22 Increase in avg. cash collection per point in e-commerce in FY23/FY22 and S&P Global India Growth in monthly cash Composite PMI show a strong correlation replenishments in Metros Data for FY23/As of Mar’23 Our Cash Logistics Network World class scale, quality and risk management • Revenue model linked to # of visits per ATM (<2% variance) ATM • Annuity revenue model, >90% fixed • 72,000+ ATMs, Replenished every alternate day, Avg. ₹ 1.4 Cr / ATM per month • Partner with Transaction banking to offer treasury solutions for corporates & retail (Cash-X) RETAIL • Annuity revenue model linked to volume & points; >70% fixed • 52,000+ business commerce points, Avg. ₹ 37 L collection & processing per month • Bulk currency transit across the banking network CIT • Revenue model: 80% fixed; 3-5 year contracts • 12,000+ bank branches served every day Last 5-years Financials: Cash Logistics business Revenue (₹ Crore) EBIT (₹ Crore) & EBIT Margin (%) 1,326 10% 25% 336 1,111 984 265 895 909 204 25.3% 167 23.9% 138 22.4% 17.0% 15.4% FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 EBIT EBIT Margin Informal economy today – growth in consumer spends formalizing rapidly by 2025 Business of Cash Cash Logistics annual growth rate – Rural population Organised retail contributing to 31% FMCG consumption today Our Managed Services and Tech Solutions Business Software and Remote Reconciliation Monitoring Banking ATM-as-a- Automation Service India is the worlds 3rd largest ATM market Banking ALGO • MVS – Unified & dynamic • ATMs, Currency recyclers, Self- Automation Software interface and management service kiosks 14% mkt share Market leader • ATM access security software • 1:2 branch to ATM ratio • SaaS-like business model • Product sale + 7-10 yr maintenance revenue • License sale + 7-10 yr maintenance rev. ATM-as-a- • 60% bank owned, 3-5 yrs fixed Service AIoT Remote revenue Monitoring • <40% ATMs and <30% branches • 40% BLA; 7-10 yrs, txn-based 6% mkt share #1 in Banking secured today revenue • CMS: 20-25% revenue fixed rate; • 100% fixed recurring ~30% of BLA at bank branches (high predictability) Deep Tech AI and IoT solution 21,000+ 10x growth at scale live sites 60,000 1,000 + RPA monitoring with zero alerts missed alerts processed by critical threats the software / day already prevented 40+ Customizable & flexible library modules Artificial Intelligence use cases developed #1 AIoT player in Banking sector Last 5-years financials: Managed Services & Tech Solutions business Revenue (₹ Crore) EBIT (₹ Crore) & EBIT Margin (%) >4x 3.7x Services Revenue growth EBIT growth 611 121 38% 57 490 33% 19.8% 17.5% 17.0% 81 364 116 362 63 55 16.5% 141 162 554 197 15.0% 33 374 68 221 202 129 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Services* Product* EBIT EBIT Margin *Services includes Sale of ATM Spares and Others; **Banking automation products (Sale of ATM and ATM sites) FY23 financials: CMS consolidated INR Crore Revenue Adj. EBITDA Adj. PAT 33% 350 20% 1,915 35% 28.8% 15.9% 600 30.0% 57 25.7% 300 14.4% 304 1,590 551 500 25.0% 250 116 400 20.0% 229 408 200 300 15.0% 1,858 150 1,474 200 10.0% 100 100 5.05%0 0 0.0%0 FY22 FY23 FY22 FY23 FY22 FY23 Services* Product** Adj. EBITDA % Adj. PAT % *Services includes Sale of ATM Spares and Others; **Banking automation products (Sale of ATM and ATM sites) EBITDA and PAT adjusted for ESOP/Share based payment to employees Last 8 quarters: Consistent and growing Consolidated INR Crore Adj. PAT Revenue 501 16.1% 16.1% 489 15.5% 15.6% 15.7% 471 90 14.4% 14.7% 453 13 444 20 80 12.8% 11 81 404 79 14 372 37 70 71 74 370 14 60 65 63 14 50 50 54 47 489 40 460 470 440 407 390 30 358 320 20 10 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 FY22 FY22 FY22 FY22 FY23 FY23 FY23 FY23 Services* Product** Adj. PAT % *Services includes Sale of ATM Spares and Others; **Banking automation products (Sale of ATM and ATM sites) EBITDA and PAT adjusted for ESOP/Share based payment to employees Last 5-years financials: ~3x growth in EBITDA and PAT Consolidated INR Crore Revenue Adj. EBITDA Adj. PAT 14% CAGR 31% CAGR 32% CAGR 15.9% 1,915 28.8% 600 30.0% 14.4% 57 25.7% 300 13.0% 304 1,590 23.3% 551 500 25.0% 250 1,383 116 10.4% 1,306 19.1% 1,146 141 400 16.3% 408 20 20 .0 0 % 8.8% 229 162 68 1,858 300 15 1 .0 5 % 0 170 304 144 264 1,474 200 10.0% 100 1,242 1,144 187 101 1,078 100 5.05%0 0 0.0%0 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Services* Product** Adj. EBITDA % Adj. PAT % *Services includes Sale of ATM Spares and Others; **Banking automation products (Sale of ATM and ATM sites) EBITDA and PAT adjusted for ESOP/Share based payment to employees and non-operating IPO related expenses written off in FY20 Strong OCF; Reinvested for growth Getting capital investment cycle right OCF (₹Crore) OCF/EBITDA % 84% 450 75% 90% Capex / year FY16-FY18 400 64% 80% 61% 350 407 70% Capex / year FY19-FY23 300 60% 43% OCF 250 50% 200 257 40% 214 150 185 30% 100 20% Consistent dividend payouts 50 78 10% 0 0% FY19 FY20 FY21 FY22 FY23 cumulative in 5 yrs average for 5 yrs* +720 bps 25.0% 21.0% 20.0% 18.4% 20.0% 16.9% Strong liquidity profile 13.8% 15.0% ROE 10.0% Cash balance (Mar’23) 5.0% Credit rating 0.0% FY19 FY20 FY21 FY22 FY23 *As % of dividend declared to PAT in the FY19 – FY23 Our Playbook: Accelerating growth & market expansion Lowest unit economics Establish right-to- Scale & productivity win Integrated offerings Strengthen Expand Strong cashflow Drive innovation Large & complex projects Core TAM Talent & Tech generation Customer engagement Invest in World class Quality benchmarks Adjacencies & Tech Favourable macro-economic and industry trends Fastest growing large economy: 6.1% avg. growth forecast next 5 years Growth in domestic consumption: drives 2/3rd of GDP Banks at the center of growing economy: in expansion mode Retail growth to fuel consumption Cash based payments have a large share in loans, insurance, retail, ecommerce Source: Bain & Co, BCG, WEF , World Economics' QIES & CLSA Mid-term growth drivers Cash • 100,000 ATMs yet to be outsourced for Cash Mgmt. Logistics • Growth in organised retail; Direct2Retail and Cash-X solutions • PSU banking refresh cycle: 80,000+ ATM refresh cycle ATM Managed • Pvt. Sector branch expansion: 20,000+ new ATMs Services • Total outsourcing deals: ~100,000 ATMs will shift from bank capex to BLA • >60% of ATMs & bank branches AIoT Remote • Expansion to NBFC, Insurance, Retail Monitoring • Legacy base refresh cycle • Track record of programmatic M&A: Rs. 250 Cr in 6 acquisitions with <3 year payback Inorganic • Industry consolidation • M&A areas: Business Services, Fintech Market Growth: Higher outsourcing create a large TAM Opportunity INR Crore 2.6x ₹ 22,000 Cr CAGR** BFSI Remote 3,000 25% Monitoring ATM-as-a- 11,620 17% Service ₹ 8,500 Cr Banking 4,600 19% Automation 6,200-6,500 4,570 Cash 1,800-2,000 7,900 19% 1,650 Logistics 3,500-3,700 2,730 FY21 FY27 Total TAM is lower than gross sum because of some overlap between Cash Management and BLA **CAGR between FY21 and FY27 FY21-FY25: 2x growth target FY23-FY27: Aspiration INR Crore 4,000 1.75-2x 3,400-3,800 3,500 3,000 ~2x 2,500-2,700 2,500 1,915 2,000 1,306 1,500 1,000 500 0 FY21 FY23 FY25 Target FY27 Aspiration Revenue Thank You Disclaimer: 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. Certain statements made in this presentation may not be based on historical information or facts and may be "forward looking statements" based on the currently held beliefs and assumptions of the management of CMS Info Systems Limited (CMS), which are expressed in good faith and in their opinion reasonable, including those relating to the Company’s general business plans and strategy, its future financial condition and growth prospects and future developments in its industry and its competitive and regulatoryenvironment. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance or achievements of the Company or industry results to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements, including future changes or developments in the Company’s business, its competitive environment and political, economic, legal and social conditions. Further, past performance is not necessarily indicative of future results. Given these risks, uncertainties and other factors, viewers of this presentation are cautioned not to place undue reliance on these forward-looking statements. The Company disclaims any obligationto update these forward-looking statements to reflect future eventsor developments. This presentation is for general information purposes only, without regard to any specific objectives, financial situations or informational needs of any particular person. This presentation does not constitute an offer or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States. No part of it should form the basis of or be relied upon in connection with any investment decision or any contract or commitment to purchase or subscribe for any securities. None of our securities may be offered or sold in the United States, without registration under the U.S. Securities Act of 1933, as amended, or pursuant to an exemption from registrationthere from. This presentationis confidentialand may notbe copied or disseminated, in wholeor in part, and in any manner.