Datamatics Global Services Limited

January 28, 2021

To, Corporate Communication Department Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeeboy Towers, Exchange Plaza, Bandra Kurla Complex, Dalal street, Mumbai - 400 001. Bandra (East), Mumbai - 400 051. BSE Scrip Code : 532528 Symbol: DATAMATICS

Sub.: Investor Presentation on Unaudited Financial Results for Q3FY21.

Ref.: Regulation 30 (2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

With reference to the captioned regulation, please find attached presentation on the Unaudited Financial Results of the Company for the quarter ended December 31, 2020.

The presentation will also be hosted on website of the Company www.datamatics.com .

Kindly take the above on your record.

Thanking you,

For Datamatics Global Services Limited

DIVYA Digitally signed by DIVYA KUMAT Date: 2021.01.28 KUMAT 13:53:53 +05'30'

Divya Kumat EVP, Chief Legal Officer and Company Secretary (FCS: 4611) Encl. : As above.

DATAMATICS GLOBAL SERVICES LTD.

Investor Presentation

28[th] January 2021

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BSE: 532528 | NSE: DATAMATICS | ISIN: INE365B01017 | CIN: L72200MH1987PLC045205

Agenda

Company 01. Overview

Strategy & 02. Investment Rationale

Quarterly 04. Updates

Awards & 05. Recognition

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Financial 03. Overview

Agenda

Company 01. Overview

Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition

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Financial 03. Overview

Executive Summary

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Nature of Business

9MFY21 Highlights

Global Technology, BPM and Digital  Operating Revenue ₹ 8,657.6 Mn; Solutions company that builds Business Process IT Services & Engineering down 3.0% YoY Management Cloud Services
intelligent solutions for data-driven  EBITDA at ₹ 1,003.9 Mn; up 5.3% YoY
businesses to enhance their  EBITDA margin at 11.6% as compared
productivity and customer experience to 10.7% in 9MFY20
Headquartered in Mumbai, have Content Robotics & Digital & Mobility strong presence in USA, Europe, Asia Management Virtual Solutions  PAT (after minority interest) at ₹ 510.9 Pacific Assistants Mn; down 2.1% YoY
Global Delivery Centers in 4 regions Areas of Expertise  Total cash & cash equiv. plus liquid  200+ significant customers Multiple Industry Presence investments of ₹ 2,543.1 Mn  Debt free company  DSO was at 68 days
Banking , Manufacturing Transport  125+ Channel partners
Management Financial Services and Insurance  Company entered into a stock
Managed by strong, robust, redemption agreement with Cignex to experienced and stable management dispose off its entire stake team Media & Retail & International
Publishing eCommerce Organization(IO)

Key Milestones

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2016 Opened new delivery centre in USA 2003 Acquired Saztec USA Acquired TechJini, boutique mobile & 2017 web technology provider India Acquired Corpay for Accounts 2003 Payable solutions USA Acquired RJGlobus Solutions, voice & 1975 Datamatics incorporated 2003 BUPA on boarded as customer 2018 text based customer service provider 1983 India’s 1[st] offshore development 2004 IPO 2018 TruBot debut in Everest Group's PEAK centre for Wang Labs, USA Matrix for RPA 1989 1[st ] to develop & export S/W via 2006 JV with Cybercom 2019 Gartner Peer Insights Customer choice satellite to Bell Labs for TruBot 2007 Launch of iPM & iQ 2020 Launched TruBot 4.0 1975 - 1990 1991 - 2000 2001 - 2010 2011 - 2015 2016 -Present 1992 India’s 1[st] e-publishing co 2011 Launched DataLabs 1[st] in India & 2nd in the world to obtain 1998 2011 Acquired Cignex, open source ECM (USA) ISO 9002 certification in e-publishing 1999 Most innovative S/W product awarded 2013 Acquired PMG, publishing service provider (India) by the Prime Minister of India 2014 Launched own RPA product – TruBot 2015 Acquired TruBI from MAIA Intelligence (India)

Line of Business

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Business Process
Information
Artificial
Management 46% Intelligence 54% Technology (IT)
(BPM) (AI)
Smart Systems
Smart Processes
Products Products
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IT Solutions

Offerings

Application Management Services
Digital Solutions Products

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Robotic Process Automation (RPA)
Enterprise Mobility
Cloud Solutions
Automated Fare Collection (AFC)

Opportunity

Worldwide IT spending is expected to total US$ 3.8 trillion in 2021, a growth of 4% from 2020 mainly due to the acceleration of digitalization efforts by enterprises supporting a remote-workfirst environment and leveraging hyperautomation to ensure pandemic driven demands are met (Source: Gartner October 2020, Spending Forecast Release)
The pandemic has created a seismic shift in focus for enterprises towards minimizing disruption, getting to quick recovery and building resilience in operations going forward
Global Cloud computing industry is expected to grow from $371.4 billion in 2020 to $832.1 billion by 2025, at a CAGR of 17.5%. Increased automation and agility is expected to drive the cloud computing growth. (Source: Research and Markets Report)
Global AFC market is expected to grow from US$ 6,639.1 mn in 2019 to US$ 12,753.8 mn by 2027, at a CAGR of 11.6%. (Source: Allied Market Research Report)

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Metrics
54%
Revenue Contribution
7.5%
EBITDA Margin
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96%
Repeat Business
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Business Process Management (BPM)

Offerings

Financial Transaction Processing Products
Content Management & Publishing

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Customer Management

Opportunity

The global IT outsourcing market was valued at US$ 333.7 bn in 2019 and it is projected to reach US$ 397.6 bn by 2025, registering a CAGR of 4.5% (Source: ResearchAndMarkets Report)
Digitalization at scale and pandemic’s acceleration of Work-From-Anywhere has boosted technology demand across industry verticals and geographies
Industry experts believe that IT outsourcing industry is witnessing multi-year technology upgrade cycle in 3 key stages – (1) a large-scale shift to cloud; (2) the building of applications in the cloud native world; and (3) collaboration between IT service vendors and customers to build new technology solutions
United States continues to remain biggest market for BPM
Datamatics is seeing specific opportunities in the process automation and dynamic content management areas

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Metrics
46%
Revenue Contribution
16.4%
EBITDA Margin
98%
Repeat Business
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Robotics Process Automation (RPA)

Offerings

Provides RPA implementation, licensing, and support services for a range of repetitive and rulebased processes without any manual intervention
TruBot, a vertical-agnostic product is an off-the-shelf software bot that can automate repetitive process and can be deployed to mimic human activities in the virtual computing environment
TruBot also comes with an intelligent data capture solution, TruCap[+] . It has integrated artificial intelligence (AI) & fuzzy logic and captures meaningful data from unstructured documents with over 99% accuracy.

Opportunity

Robotic Process Automation (RPA) market size surpassed over US$ 2 bn in 2019 and is expected to witness 40% CAGR from 2020 to 2026 (Source: Global Market Insights Report)
Key driver for RPA projects is their ability to improve process quality, speed and productivity, each of which is increasingly important as organizations try to meet the demands of cost reduction during COVID-19
As per recent Gartner’s release, 90% of large organizations globally will have adopted RPA in some form by 2022 as they look to digitally empower critical business processes through resilience and scalability, while recalibrating human labor and manual effort
Datamatics is seeing robust opportunities in the robotics processes

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Client Metrics

4000+ Active TruBots 1000+ Process Automated

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100+ Customers Globally 300+ TruBot Experts

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300+ Mn Documents processed through TruCap+

125+ Partners & Growing

Agenda

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Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition

Financial 03. Overview

Strategy & Outlook for the Future

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Account Penetration & Focus on larger deals

Strengthen Partners & Reseller Channel

Invest in Automation to improve productivity

Digital Solutions

Focus on Products – Robotics & Advanced Analytics

AFC opportunity – Focus on India and US geographies

Investment Rationale: Business

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Delivers comprehensive suite of innovative services and solutions to customers including Fortune 500 companies for managing their end-to-end Application Life Cycle and Business Critical Processes Strong brand reputation in the market and a stable foothold in the IT & ITeS spectrum Developed own products to strengthen its offerings such as TruCap[+] in data capture, TruBot in RPA, iPM Workflow & TruBI in Analytics, TruAI for Artificial intelligence and TruFare in Automated Fare Collection (AFC) Has a strong presence in the AFC space and has executed over 25+ marquee projects across the globe including New York, London, Hong Kong and Dubai; strong pipeline in India & USA. Only company in India to have a highly evolved AFC, smart gates and contactless gates service offerings

Has a strong R&D centre - DataLabs focusing on the new age technology areas such as AI & Cognitive Science, RPA and Augmented & Virtual Reality Healthy financials with a positive outlook

Agenda

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Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition

Financial 03. Overview

Q3FY21 – Key Financial Highlights

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Revenue at ₹ 3,030.6 million; up 6.1% q-o-q and flat y-o-y; growth was driven by BPM business
EBITDA at ₹ 389.0 million; up 18.1% q-o-q and up 48.1% y-o-y
EBITDA margin was at 12.8%; up 130 bps q-o-q and up 425 bps y-o-y. Sustained double digit EBITDA margin aided by cost optimization efforts
PAT (after non-controlling interest) at ₹ 221.6 million; up 43.7% q-o-q and up 69.6% y-o-y
EPS (Diluted) at ₹ 3.76 for Q3FY21 as against ₹ 2.62 in Q2FY21 and ₹ 2.22 in Q3FY20

9MFY21 – Key Financial Highlights

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Revenue at ₹ 8,657.6 million; down 3.0% y-o-y; growth was mainly impacted due to Covid-19 pandemic in the initial quarters of the fiscal year
EBITDA at ₹ 1,003.9 million; up 5.3% y-o-y
EBITDA margin was at 11.6%; up 92 bps y-o-y
PAT (after non-controlling interest) at ₹ 510.9 million; down 2.1% y-o-y
EPS (Diluted) at ₹ 8.67 as against ₹ 8.85 in 9MFY20

Q3 & 9MFY21 – Consolidated Profit and Loss

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Particulars (₹ in Mn)	Q3 FY21	Q3 FY20	YoY %	Q2 FY21	QoQ %	9M FY21	9M FY20	YoY %
Revenue from Operations	3,030.6	3,060.5	-1.0%	2,856.2	6.1%	8,657.6	8,929.4	-3.0%
Purchase of Products and Licenses	9.7	32.2		54.9		93.8	91.3
Employee Benefits Expenses	2,029.9	1,987.2		1,950.3		5,919.1	5,713.9
Other Expenses	602.0	778.5		521.7		1640.8	2170.6
EBITDA	389.0	262.6	48.1%	329.3	18.1%	1,003.9	953.6	5.3%
EBITDA Margin%	12.8%	8.6%	425bps	11.5%	130bps	11.6%	10.7%	92bps
Depreciation/Amortization	110.9	94.4		96.2		301.3	277.8
Finance Costs	-11.6	12.4		15.1		25.0	36.2
Other Income	28.3	52.7		10.7		63.0	131.4
Share of Net Profits of Associates and JVs	2.9	1.8		2.6		7.2	7.7
PBT	320.9	210.3	52.6%	231.3	38.8%	747.9	778.6	-3.9%
PBT Margin %	10.6%	6.9%	372bps	8.1%	249bps	8.6%	8.7%	-8bps
Tax Expense	78.3	51.6		61.1		194.7	199.9
% Tax Rate	24.4%	24.5%		26.4%		26.0%	25.7%
PAT	242.6	158.7	52.9%	170.1	42.6%	553.2	578.7	-4.4%
PAT Margin%	8.0%	5.2%	282bps	6.0%	205bps	6.4%	6.5%	-9bps
Non-ControllingInterest	21.0	28.1		15.9		42.4	56.8
PAT(after Non-Controlling Interest)	221.6	130.6	69.6%	154.2	43.7%	510.9	521.9	-2.1%
EPS(Diluted) (Rs)	3.76	2.22	69.3%	2.62	43.7%	8.67	8.85	-2.1%

Agenda

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Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition

Financial 03. Overview

Q3 FY21 – Business Updates

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Added 10 new customers
Datamatics simplifies document processing with a new AI-enabled TruCap+ Intelligent Document Processing (IDP) solution
Divested its stake in Cignex
Helped UTI Mutual Fund to set-up a paperless Digital Workplace in record time amid pandemic
Datamatics TruCap+ recognized as a Leader in SPARK Matrix: Intelligent Document Processing (IDP), 2020
Leading global technology research and advisory firm ISG creates an exclusive briefing note on Datamatics' Digital Finance and Accounting (F&A) solutions titled "Datamatics: Re-envisioning Finance through Intelligent Solutions”
Won the Market Research Society of India (MRSI) Golden Key Awards 2020 for its exceptional initiative of transforming the BMC Helpline into an Emergency Response Center during the Lockdown period
Won the CRN Excellence Award 2020 for its innovative virtual reality gaming App for Alzheimer's patients

Q3 FY21 – Key Result Highlights

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Operating Revenues
3,060.5 3,030.6
2,856.2
6.1%
QoQ
1.0%
Q3 FY20 Q2 FY21 Q3 FY21 YoY
PBT & PBT Margin %
10.6%
8.1% 320.9
6.9% 38.8%
231.3
210.3 QoQ
52.6%
Q3 FY20 Q2 FY21 Q3 FY21 YoY
Mn)
₹
(In
Mn)
₹
(In
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EBITDA & EBITDA Margin %

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12.8%
11.5%
389.0
8.6% 18.1%
329.3
262.6 QoQ
48.1%
Q3 FY20 Q2 FY21 Q3 FY21 YoY
PAT before NCI & PAT before NCI Margin %
8.0%
6.0%
242.6
5.2% 42.6%
170.1 QoQ
158.7
52.9%
YoY
Q3 FY20 Q2 FY21 Q3 FY21
Mn)
₹
(In
Mn)
₹
(In
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Q3 FY21 – Revenue Segment Analysis

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IT Services Revenues – Q3 FY21

BPM Revenues – Q3 FY21

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1,816.8 1,448.7
1,313.3
1,542.9 1,581.8 1,243.7
2.5% 10.3%
QoQ QoQ
12.9% 16.5%
YoY YoY
Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21
₹ Mn)(In ₹ Mn)(In
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Healthy Balance Sheet Position

Leverage Analysis

Days Sales Outstanding (DSO)

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82 83
79
0.13
0.11
0.05
68
0.00
7,700
7,163
6,793
5,827
965
658
359
0
FY18 FY19 FY20 9MFY21 FY18 FY19 FY20 9MFY21
Debt Equity D/E
(In ₹ Mn)
Number of days
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Q3 FY21 – Revenue Segment Analysis

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Revenue by Industry Revenue by Geography
5% 5% 5%
3% 5% 4%
18%
21%
26%
19%
20% 21%
6%
6%
5%
5% 5%
5% 14%
12% 11%
20%
20% 26%
24%
17%
19%
59% 58% 59%
27% 27%
23%
Q3 FY20 Q2 FY21 Q3 FY21 Q3 FY20 Q2 FY21 Q3 FY21
BFSI Technology & Consulting
US UK India Europe ROW
Education & Publishers Manufacturing
Retail / E-Retail Others
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9M FY21 – Client Concentration

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Client concentration maintained at a comfortable level

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51%
47%
38%
34%
27%
23%
9MFY20 9MFY21 9MFY20 9MFY21
9MFY20 9MFY21
Top 5 Top 10 Top 20
© Copyright 2020 Datamatics Global Services Limited and its subsidiaries - All Rights Reserved
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Agenda

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Company Quarterly 01. Overview 04. Updates Strategy & Awards & 02. Investment Rationale 05. Recognition

Financial 03. Overview

Key Analyst Coverage

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Datamatics recognized in the Gartner Toolkit: Vendor Identification for AI and Data and Analytics Service Providers

Datamatics recognized in the Omdia Universe report on Selecting a Robotic Process Automation (RPA) Provider 2020-21

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Datamatics recognized in the Frost & Sullivan ‘Technology Advancements Transforming the Asia-Pacific Intelligent Automation Market, 2020– 2024’ report

Datamatics recognized by HFS Research in the Top 10 F&A Vendors 2020-21

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Datamatics TruCap+ featured as Major Contender in IDP – Technology Vendor Landscape with Products Everest PEAK Matrix® Assessment 2020

Datamatics leaps out of the Aspirants category to become a Major Contender in the Everest Group- Robotic Process Automation (RPA) Everest Peak Matrix 2020

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Datamatics recognized in the Gartner Peer Insights ‘Voice of the Customer’: Robotic Process Automation 2020

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Datamatics TruBot profiled in the Executive View: Datamatics TruBot Robotic Process Automation by KuppingerCole Analysts

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Datamatics recognized as a Star Performer in Finance and Accounting Outsourcing (FAO) – Service Provider Everest Peak Matrix 2020

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Datamatics recognized as an Aspirant in Next-generation Application Management Services Everest PEAK Matrix® Assessment 2021

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Datamatics acknowledged as a key player in RPA market in the report ‘Datamatics looks to broaden its footprint in the RPA market’ by 451 Research

Recognition: Awards

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Datamatics recognized at UN Global Compact Network India Innovative Practices Award “Women at Work” 2020	TruBot won Gold Stevie Award 2020 for ‘Sales & Customer Service’	TruCap+ won People’s Choice Stevie Award 2020 for ‘Favourite New Products’	Datamatics featured in the IAOP 2020 and 2019 Global Outsourcing 100 List of the world’s best outsourcing providers
Datamatics wins Rail Analysis India Award 2020 & 2019 for Automated Fare Collection technology	TruBot, TruCap+ won Silver and Bronze Awards at the Asia Pacific Stevie Awards 2020	Datamatics won the CRN Excellence Awards 2020 in the Enterprise Mobility & Virtual Reality category	TruAI won Gold Stevie Award at the American Business Awards® 2020
	Datamatics awarded as Best Diversity &Inclusion Award for Gender Diversity and Empowerment at Best Diversity and Inclusion Practices of Asia Seminar and Awards 2020	Datamatics won Market Research Society of India (MRSI) Golden Key Award 2020 for ‘BMC COVID-19 Helpline Initiative’

For further queries

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DISCLAIMER:

Mr. Sandeep Mantri

Chief Financial Officer
[email protected]

This presentation and the following discussion may contain “forward looking statements” by Datamatics Global Services (“DGS” or the Company) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operations, financial condition, business prospects, plans and objectives, are based on the current beliefs, assumptions, expectations, estimates, and projections of the management of DGS about the business, industry and markets in which DGS operates.

Diwakar Pingle / Asha Gupta

[email protected]
[email protected]
+91 9833904971
+91 7506685911

These statements are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond DGS’ control and difficult to predict, that could cause actual results, performance or achievements to differ materially from those in the forward looking statements. Such statements are not, and should not be construed, as a representation as to future performance or achievements of DGS.

In particular, such statements should not be regarded as a projection of future performance of DGS. It should be noted that the actual performance or achievements of DGS may vary significantly from such statements.

AI assistant

Datamatics Global Services Limited — Investor Presentation 2021

61141_rns_2021-01-28_8f92679f-2172-4775-bb90-48fa0cf545c8.pdf

Sub.: Investor Presentation on Unaudited Financial Results for Q3FY21.

For Datamatics Global Services Limited

DATAMATICS GLOBAL SERVICES LTD.

Investor Presentation