#1BLS INTERNATIONAL Investor Presentation Q4FY22 عليلي#2BLS Q4 & FY22 Highlights INTERNATIONAL#3Financial Highlights Full Year Highlights Quarterly Highlights 145 Revenue (Rs Cr) 76% 254 BLS INTERNATIONAL EBITDA (Rs Cr) & EBITDA Margin (%) PAT (Rs Cr) & PAT Margin (%) 7.0% 10 13.8% 15.9% 13.9% 35 35 53% 247% 23 Q4FY21 Q4FY22 Q4FY21 Q4FY22 Q4FY21 Q4FY22 478 78% 8.3% 850 40 12.6% 10.5% 169% 107 60 50 121% 13.1% 111 FY21 FY22 FY21 FY22 FY21 FY22 | 3#4Consolidated Profit and Loss Statement (Rs. in Cr) Revenue Q4 FY22 Q4 FY21 % Change FY22 FY21 % Change 253.8 144.6 75.5% 849.9 478.4 Gross Profit 83.3 40.1 107.7% 276.0 141.9 77.7% 94.5% (Gross Margin) 32.8% 27.7% 510 Bps 32.5% 29.7% 280 Bps Operating expenses 48.3 30.0 61.0% 169.1 102.1 65.6% EBITDA 35.0 10.1 246.5% 106.9 39.8 168.6% (EBITDA Margin) 13.8% 7.0% 680 Bps 12.6% 8.3% 430 Bps Finance Cost 0.4 0.2 100.0% 0.7 0.5 40.0% Depreciation 2.4 2.5 4.0% 7.2 9.5 -24.2% Other Income 5.1 8.2 -37.8% 15.0 18.6 -19.4% PBT 37.3 15.6 139.1% 114.0 48.4 135.5% (PBT Margin) 14.7% 10.8% 390 Bps 13.4% 10.1% 330 Bps Tax Expenses 2.1 -7.4 2.8 -1.9 PAT 35.2 23.0 53.0% 111.2 50.3 121.1% (PAT Margin) 13.9% 15.9% 13.1% 10.5% EPS (in Rs.) 3.44 2.29 10.86 4.90 BLS INTERNATIONAL ◉ Operational revenue up 77.7% YoY in FY22 and 75.5% YoY in Q4FY22 driven by bounce back of visa & consular business and outperformance in the citizen services business EBITDA for Q4FY22 up 246.5% YoY with EBITDA margin of 13.8% up from 7.0% in Q4FY21 EBITDA and Margin for FY22 has improved on the back of higher demand of travel and due to operational efficiencies Announced a bonus issue of 1:1, i.e. 1 bonus equity share for each 1 fully paid equity shares held. Board has considered and recommended a final dividend of 0.25 per share (on post bonus paid up share capital of 20.49 cr) 5.12 cr. This, together with aggregating interim dividend of 1.00 per share, aggregates to 15.4 cr of proposed dividend payout for FY22. 4#5Consolidated Balance Sheet BLS INTERNATIONAL (Rs. in Cr) Mar'21 Mar'22 (Rs. in Cr) Mar'21 Mar'22 Share Capital 10.3 10.3 Fixed Assets incl. CWIP 23.9 84.2 Shareholders' Funds 459.8 569.8 Intangible Assets 13.8 20.0 Non controlling Interest 0.1 0.0 Deferred Tax (Net) 6.7 8.7 Investments 24.1 70.1 Provisions 3.0 2.9 • Other Financial Assets 15.9 41.4 Total Non-Current Liabilities 3.3 9.2 Other Non Current Assets 0.8 0.2 Borrowings - 3.1 bonds and Total Non-Current Assets 85.2 232.6 Cash, bank & equivalents stood at an all time high of 407.2 cr. This Includes 324 cr of cash & ~ bank, 46 cr of investments in 37 cr of term deposits with maturity more than Trade Payables 9.6 18.3 12 months Sundry Debtors 100.2 22.3 Other Current Liabilities 7.5 9.3 Cash and Bank 277.4 324.2 Current Tax Liabilities 0.1 0.0 Other Financial Assets 27.0 38.8 Other Financial Liabilities 17.6 21.7 Other Current Assets 5.1 10.2 Provisions 0.1 0.1 Current Tax (Net) 3.2 ☐ 5.2 Total Current Liabilities 34.9 54.3 Total Current Assets 412.9 400.7 Total Liabilities 498.1 633.3 Total Assets 498.1 633.3 | 5#6Major Updates during FY 2021-22 Visa & Consular Business ☐ Signed renewal contract with Royal Thai Embassy for visa services ☐ Signs contract with the Republic of Philippines, Department of Foreign Affairs ☐ Won contract for Italy Visa Processing services in Russia ◉ ◉ ☐ ■ Signed contract with the Embassy of India in Kuwait for Consular, Passport & Visa services Launched Immigration Consultancy for Canada Starfin - National Business Correspondent Won contract with Bank of Baroda for Corporate Business Correspondent Selected as National Business Correspondent for India's largest bank, State Bank of India Empanelled by Punjab National Bank & Central Bank of India for National Business Correspondent business Other Businesses BLS INTERNATIONAL ☐ ☐ ■ Partnered with Knowledge Catalyst to issue Digital Health Certificates for passengers travelling to and from Singapore. Partnered with Flipkart to provide last mile services across the country Partnered with UTIITSL (UTI Infrastructure Technology & Services Ltd) to undertake verification, registration and e-card printing services across India Partnered with National Health Authority as service provider to process Ayushman Bharat Cards across India | °#7BLS Company overview INTERNATIONAL#8Our competitive edge BLS INTERNATIONAL Expanding global network Operating in 66 countries with a network of 15,500 application centers globally Existing network offers a platform to pitch for new contracts Ability to win marquee contracts 2016-21: Europe, GCC & ME, South American contracts Marquee wins to build credential for other global contracts (1.5B USD worth contracts under renewal in next 2 years) State-of-the-art digital infra Highly secure processes with capabilities to handle large quantities of complex data High entry barrier for any company Value added services Convenience services offered to the applicants is rapidly expanding Key driver for margin expansion and a potential differentiator to win contracts Diversified in other high growth tech-enabled services e-Gov for UP, Punjab, Rajasthan, Afghanistan, Estonia and Nigeria are key wins in addition to last mile connectivity for SBI Centers across states to facilitate citizen services and financial inclusion Net debt free and high FCF business Visa Application Centers are leased and Citizen service offices are developed by Govt. and operated by BLS Healthy balance sheet and return ratios BLS has become a leading global player in visa processing and one of the early movers in tech-enabled citizen services 00 8#9Corporate Structure BLS INTERNATIONAL Domestic Visa & Attestation 100% BLS E-Services Pvt Ltd (UP & Rajasthan citizen services biz) 100% Starfin India Pvt Ltd (BC Business) Auditor 100% BLS Kendra Pvt Ltd (Punjab citizen services biz) SS Kothari Mehta & Co. * Only key operational subsidiaries/partners have been included BLS INTERNATIONAL 100% BLS International FZE Visa, Consular & e-governance Business in other countries International Subsidiaries/Partners UK USA UAE Russia Ecuador Algeria Canada China Malaysia Singapore Hong Kong Saudi Arabia Turkey Morocco _ Auditor HLB HAMT Member firm of HLB International, a global advisory and accounting network firm that has presence in 150+ countries 9#10Business overview BLS INTERNATIONAL Visa processing 1 Visa & Consular Services Value added (VAS) 2 E-governance Services 3 Other Citizen Services Consular India BLS INTERNATIONAL Broad suite of services for visa processing and related services Holistic solutions for customer's delight and convenience Consular services on behalf of embassies/diplomatic missions Delivering front-end service to citizens at the grassroot level Other countries Tech enabled citizen services for governments worldwide Banking correspondent Assisted E-commerce Robust network to deliver last mile banking services to unserved remote population Last mile services for assisted buying and delivery across the country 10#111 Visa processing & consular services BLS INTERNATIONAL Visa Processing Leading global player in the visa outsourcing service industry, with over 16 years of experience and ~52 million applications processed; Winning contracts across the globe Services include: Outsourced visa processing ■ Verification of documents ■ ■ Attestation of documents Biometrics E-Visa Other allied services Value Added Additional holistic services rolled out with speed & agility and offered to applicants for convenience and better experience. Services include: Photocopy, courier & internet facility Premium lounge, form filling, insurance, SMS alert, translation services Mobile biometric Consular Services provided by the diplomatic mission of a country to citizens of that country who are living or traveling overseas - BLS has been working extensively with Indian mission and other missions globally Services include: ■ ■ ■ Passport renewal Authentication of travel documents Legalization of documents Renunciation of citizenship ■ Notary services 11#122 E-Governance services India G2C projects BLS INTERNATIONAL Punjab Project ■ ■ ■ Delivered front-end service (~254 G2Cs) to Indian citizens at the grassroot level and enhanced citizen's convenience Catered 1.84 crore population and covered 16 districts across the state Decentralized service helped decongest traffic flow into cities, moderate carbon footprint and reduce unproductive commuting Uttar Pradesh Project " Rolled out citizen services centres on behalf of Uttar Pradesh Government in India Citizen services of all Government departments of UP through 12,000 Customer Service Centres (CSCs) opened through partners ~360 G2C services provided through CSCs Rajasthan Project Ongoing ◉ ◉ Awarded the contract for e-Mitra Kiosks in Rajasthan in 5 districts including Jaipur, Alwar, Ajmer, Jodhpur and Nagaur Launched the online portal for e-Mitra Kiosk operators wherein a mix of G2C & B2C services are available Global experience Trained cadre (UAE) ☐ Working closely with UAE Ministry of External Affairs, providing customized solutions for its seven centers National Identification Card Programme Application centres for Identity Management for Afghanistan. Registration and identification of Afghan nationals in GCC countries Issuing digital ID to e-residents granted by the Estonian Police and Border Guard Board (PBGB) Initiative by National Identity Management Commission in Nigeria to enrol Nigerian citizens into the national identity database 12#133 Other citizen services ■ BLS INTERNATIONAL Starfin - National Business Correspondent BLS has established a robust network of centers to deliver last mile banking services to unserved and underserved rural and remote populations as part of Financial Inclusion Program of Govt. Of India. Offers various banking services like enrolment of customers, opening bank accounts, debit cards, balance enquiry, money transfer, etc. Starfin India has recently won a contract with Bank of Baroda; It is already empanelled as the National Business Correspondent (NBC) for State Bank of India; Corporate Business Correspondent for Uttarakhand Gramin Bank; and Microfinance Agency for Punjab National Bank Distinctively positioned to expand services, branches as well as our banking and non-banking collaborations Present in 12 states ~3,000 CSP's across the country INR 400 crores monthly average volume E-commerce & Other Services Providing help for e-commerce, insurance and travel assistance wherein people come to these centers for availing additional services along with the existing government services - helps in utilizing existing network and centers to cross sell more services Tying ups with e-commerce players for assisted buying and delivery ◉ Last mile delivery of products to centers or customer's place 13#14Huge opportunities across business segments Visa processing Growth in outsourcing of visa application worldwide 22% 31% 50% Citizen services BLS INTERNATIONAL Outsourced Global Most services offered by governments to consumers are still only semi-automated with a low penetration of cutting-edge technologies Outsourcing to a specialized partner reduces delivery time, increases efficiency. Win-win proposition for the government both from cost point and service quality point 78% ■In-house 69% 50% 2010 2018 2025e Majority of the market still managed in-house by embassies - growth opportunity is immense Niche industry with high entry barriers - established players like BLS at advantage to tap renewals Significant opportunities and high growth potential helping increase market share gains India Government is leveraging solutions & services from specialist providers to realize the vision of Digital India At both center and state levels, initiatives are being undertaken to promote the Digital India model for rendering public services effectively. 14#15Strong balance sheet to support for the next leg of growth BLS INTERNATIONAL T 01 02 Organic growth in the existing buinesses ■ Focus on large ticket size projects and establish own centers for such contracts More services to existing clients thereby increasing wallet share Tap new geographies and countries for all businesses visa, consular and e- governance services Invest in tech to further build robust systems and processes ☐ Invest in technologies to tap exciting possibilities related to digitalization, last mile penetration and enhanced service experience Tech like identity management, blockchain, facial recognition, Al, chat bots etc. to boost servicing capabilities Cash, bank and equivalent of over Rs 407 crores to be utilized to 03 Inorganic opportunities Scouting for a potential investment across the value chain which would provide synergy to existing business Businesses in existing areas such as government related or IT related processing (digitization etc) support the growth strategy 15#16BLS Historical Financial Highlights INTERNATIONAL#17Net cash positive, high FCF business model Cash, bank and equivalents (Rs. Crores) Cash flows from operations (Rs. Crores) BLS INTERNATIONAL 184 407 133 277 116 239 173 119 50 50 45 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 ROCE excl. cash (%) 22% 17% FY19 17% 7% FY20 FY21 FY22 -ROCE excl. cash 17#18Historical Consolidated P&L Highlights BLS INTERNATIONAL (Rs. in Cr) FY18 FY19 FY20 FY21 FY22 Revenue 789 804 786 478 850 Gross Profit 295 266 236 142 276 (Gross Margin) 37% 33% 30% 30% 33% Operating expenses 136 157 153 102 169 EBITDA 159 108 83 40 107 (EBITDA Margin) 20% 13% 11% 8% 13% Finance Cost 12 10 2 0.5 0.7 Depreciation 40 19 12 9.5 7.2 Other Income 4.1 43 13 18 15 One-time income/ (expense) 35 - (28) - - PBT (PBT Margin) 111 122 55 48 114 14% 15% 7% 10% 13% Tax Expenses 14 17 2 (2) 3 Reported PAT (PAT Margin) 97 105 52 50 111 12% 13% 7% 10% 13% 18#19Historical Consolidated Balance Sheet BLS INTERNATIONAL (Rs. in Cr) Share Capital Shareholders' Funds Mar 20 Mar'21 Mar'22 (Rs. in Cr) Mar'20 Mar'21 Mar'22 10.3 10.3 10.3 Fixed Assets incl. CWIP 23.0 23.9 84.2 428.5 459.8 569.8 Intangible Assets 18.2 13.8 20.0 Non controlling Interest (0.1) 0.1 0.0 Deferred Tax (Net) 5.5 6.7 8.7 Investments Provisions 2.8 3.0 2.9 28.5 24.1 70.1 Other Financial Assets 7.0 15.9 41.4 Total Non-Current Liabilities 2.8 3.3 9.2 Other Non Current Assets 0.0 0.8 0.2 Borrowings - 3.1 Total Non-Current Assets 82.2 85.2 232.6 Trade Payables 16.5 9.6 18.3 Sundry Debtors 112.8 100.2 22.3 Other Current Liabilities 5.0 7.5 9.3 Cash and Bank 239.3 277.4 324.2 Current Tax Liabilities 0.4 0.1 0.0 Other Financial Assets 25.9 27.0 38.8 Other Financial Liabilities 16.0 17.6 21.7 Other Current Assets 7.2 ☐ 5.1 10.2 Provisions 0.1 0.1 0.1 Current Tax (Net) 1.8 3.2 5.2 Total Current Liabilities 38.0 34.9 54.3 Total Current Assets 387.0 412.9 400.7 Total Liabilities 469.2 498.1 633.3 Total Assets 469.2 498.1 633.3 19#20Historical Consolidated Cash Flow FY21 48 % 30 (3) Operating profit before WC change Change in Working Capital Direct taxes Purchase of property, plant and equipment and intangibles Proceeds from sale / purchase of investment Gain on business acquisition Investments in term deposits Interest incomes Repayments of non-current borrowings Proceeds from non-current borrowings Repayment of current borrowing (Net) Repayment of lease liabilities Dividend paid (including dividend distribution tax) (Rs. Cr) FY22 144 C/F from operating activities 48 185 (7) (82) C/F from investing activities (45) $་ཅིག་ (48) (171) 3 C/F from financing activities (12) (2) (13) Net increase (decrease) in cash and cash equivalent Cash and cash equivalent at the beginning of the year Cash and cash equivalent acquired during the acquisition new subsidiary Cash and cash equivalent at the end of the year 2 35 . 32 37 Interest paid BLS INTERNATIONAL 45 (5) 3 (22) I (25) (1) 25.000 (10) (8) (1) 13 22 22 י 35 35 「 20#21Disclaimer This presentation and the accompanying slides (the "Presentation"), which have been prepared by BLS International Services Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded. Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guaranteeing of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third-party statements and projections. PARETO BLS INTERNATIONAL Mr. Amit Sudhakar CFO, BLS International [email protected] CAPITAL Ms. Pooja Dokania / Mr. Parth Hemani Pareto Capital (Investor Relations Advisor) [email protected] [email protected]